Short Term Finance

Short-term finance also known as short term lending has many benefits,Such as helping you pay your bills on time or an unforseen medical expense. Short term finance can also help with things such as car or house repairs as most people do not always have a emergency fund of when things go wrong. This type of finance needs to be paid usually within in 4 weeks and sometimes up to 12 months, although 3months is usually the norm this type of finance. Longer term short term finance is usually needed if your looking to buy a house before your house actually sells or a business that needs to be funded quickly etc.
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Property finance

Now is one the best times to buy investment properties while interest rates are the lowest they have been n the last 60 years. When considering buying an investment property you should use an interest only finance, so you can keep more money in your pocket. One of the biggest mistake new property investors make is they think they need to pay down there mortgage as quick as possible, which is not the case as you need to keep your serviceability available. By using an interest only finance you can buy more properties quicker, as you use your equity from your first home to buy home number 2 and so on. If you use principle and interest finance then you will not be able to service investment property 2 without it coming out of your pocket. Using interest only finance means you can simply have the interest paid out by the house for you.

Remember property investing is a long term investment so there is no need to pay out your mortgage as fast as possible as you accumulate more properties you will soon learn that interest only finance is the way to go when buying an investment property.

There are also other types of finance such as capitalizing the interest, which is good to use in a booming market, but considering we are in a global financial crisis it would not be wise to use this type of finance and is mostly used by experienced developers.

Personal finance Guide and Tips

Personal finance can be a great way to buy things you want now and only pay in small weekly or monthly instalments. One of the most widely used personal finance is finance to buy a car or motorbike, as we need to upgrade our transport every couple of years. However be careful of spruikers at car yards offering in house finance, as these are often above the normal interest rate that you can most likely get at your bank or elsewhere. Just because they say they will give you easy finance doesn’t mean you should take it. remember to research all of your options and if there interest rate and establishment fees stack up against the majority of other sources then use this finance option.

When choosing your personal finance lender make sure to read the fine print there are plenty of tricks for example there is a car yard that advertises no interest finance, however the cars are over priced it will say something like no interest finance buy this car for x amount a week usually around $100 over 4yrs this means for that car worth around $2000 you would of paid $20800 sure no interest why would there be when your giving them more money legally then any bank or general lender would make off the deal? For instance if you went and bought the same car for $2000 but used bank finance currently around 10% at $2000 you would only pay $10 a year in interest as opposed to $5200 see the difference?
Personal finance can be a great way to buy things you want now and only pay in small weekly or monthly instalments. One of the most widely used personal finance is finance to buy a car or motorbike, as we need to upgrade our transport every couple of years. However be careful of spruikers at car yards offering in house finance, as these are often above the normal interest rate that you can most likely get at your bank or elsewhere. Just because they say they will give you easy finance doesn’t mean you should take it. remember to research all of your options and if there interest rate and establishment fees stack up against the majority of other sources then use this finance option.

When choosing your personal finance lender make sure to read the fine print there are plenty of tricks for example there is a car yard that advertises no interest finance, however the cars are over priced it will say something like no interest finance buy this car for x amount a week usually around $100 over 4yrs this means for that car worth around $2000 you would of paid $20800 sure no interest why would there be when your giving them more money legally then any bank or general lender would make off the deal? For instance if you went and bought the same car for $2000 but used bank finance currently around 10% at $2000 you would only pay $10 a year in interest as opposed to $5200 see the difference?

Credit Cards

Credit cards are another form of finance that can lead to financial disaster if used improperly and with so many offers for credit cards it’s quite frustrating and you often signup for a credit card with things you don’t need or want and a higher interest rate then another credit card offer you have gotten in your mailbox or seen advertised on tvs many people have several credit cards and don’t seem to realize this is not free money this is finance wrapped in a pretty piece of plastic usually you take up the offer for this type of credit card finance because it offers low interest for x amount of months only to find out after that period has expired your paying well over what you would of paid for credit card finance offered by your local bank.

Credit cards are not all bad though as they are quite useful especially debit/credit cards that work just like a credit card so you can purchase stuff off the internet safely however these type of cards have no finance attached and you can only spend what is on the card which makes more sense because why would you pay 18% interest on some items you bought off Ebay to save money in the first place defeats the purpose doesn’t it?

There are also great ways to utilize a credit card such as getting a credit with 0% interest for 6months which there are plenty around at the moment use the money from that card to find a profitable business venture pay the money back once you have achieved the goal this is also quite risky and requires lot’s of research to use it to it’s full potential as you will want the card paid back before the 0% interest finance term expires in effect the credit card company has unknowingly lent you money to make some extra money as you close the card down and put the money you made in your pocket this is one hell of a way to get back at the credit card companies and can be done several times over but remember be careful and make 150% sure that what your going to invest the money in will actually pay off otherwise you will be left with a huge credit card debt on your hands.