Categories
Property

Should I get a Mortgage or is it too risky?

There are many people that have mortgages but there will be some people that are reluctant to do so because of the risk. All borrowing does carry risks and so it is not an unjustified fear, but it is good to see whether you can rationalise it. There are a few risks and it is good to address them all.

What if I cannot make the repayments?

Covering the repayments on the mortgage is really important. If you miss a repayment then you will face extra charges. If you miss a lot of repayments you will end up having the property repossessed and you will be left with nowhere to live. Obviously, this is not a good situation to be in. The best thing that you can do to address this is to find out how much the repayments will be and work out whether you can afford them. Make sure that you really carefully study your income and what you normally spend to ensure that there will be enough left. Also consider whether you will be able to stick to a budget so that you can make sure that you will always have enough money. It is also a good idea to make sure that you will have enough money in the future. You will need to repay the mortgage over a long time, probably at least 20 years and so think about whether you think that this will be something that you will be able to afford.

What if the property devalues?

If the property goes down in value then it is possible that you will end up paying more money for it than it is worth and you may even make less when you sell it. This would be really bad if it was an investment. However, we buy a home to live in so it is not just the value that is important. We need to consider the amount of money we have saved in paying rent and the pleasure that we get from owning a property. It is also likely that if we keep the house for long enough the value will go up again as long as we keep it in good repair. It is also wise to think about the area that the house is in and how sought after it is. If you feel that it is in a good area, then it is probably more likely to hold its value than one that is not in such a good area. Of course, areas will go in and out of favour, so think about the location to such as how close it is to schools, shops and nature as this will not change and will impact the value as well.

What if I need to move?

If you need to move and you are renting then you just give notice and move out. If you own a home then you will have to sell it before you move, if you want to buy a new home to the place that you are moving to. This is tricky and expensive, but lots of people do it and some people even enjoy it or do it frequently. There is always the option of not selling the house and making it available for rental instead. This will allow you to keep it and not worry about selling it but still get some money from it which you can use towards paying the mortgage and the upkeep. However, if you think it is likely that you will move around a lot, perhaps because of the work that you do, then it is probably wiser not to buy until you know you can settle in one place.

Categories
Loans

How do I Choose the Best Loan?

If you are looking to borrow some money, then it is a good idea to make sure that you choose the best loan for you. However, there are so many options that it can almost seem impossible to know which one to choose. There are some things that you can do to make the choice much easier though.

Get financial help

The easiest thing to do is to speak to an independent financial advisor and find out what you should do with the money. It is a good idea to make sure that they are independent as otherwise they may be affiliated with a certain lender and therefore only be able to recommend products that they have. You will have to pay them and so you need to consider whether you feel this would be worth it. If you are taking out a really big loan, then their advice could potentially save you a lot of money as otherwise you may end up paying a lot more than necessary. If the item is only a small loan, then they may not be able to save you enough money to cover the cost of their fees, so it may not be worth using one. If this is the case then you will need to do the research for yourself.

Research loan types

It is important to find out about all of the different types of loans that are available. Then you will be able to choose the best one for your need. Some loans are designed for specific purposes, like mortgages which can only be used for buying houses but many can be used for any purpose. So, it will partly depend on the thing you are buying as to which loan will work for you. You will also find that certain loans only give you small amounts of money and others give you higher amounts, so you would need to choose one that would suit what you need. It is also very important to find out how much the repayments will be. This is something that will change with lenders, but it is good to get a general idea for each loan type. This is because it is really important that you are able to repay the loan or else you will have to pay extra charges for it.

Research lenders

Once you have chosen the loan type that you want then you will need to look at all the lenders that provide this type of loan. You will find that they will vary in how much they charge, how much they expect to repay and how many repayments you need to make as well as their customer service. It is a good idea to think about what features you want in a lender so that you can make sure that you pick one that will give you good value for money. It can be tempting just to go for the cheapest one but you will want to make sure that you are not sacrificing manageable repayments and good customer service just to get a low cost. Of course, you may be prepared to sacrifice these things in order to pay less. Make sure that you consider any other features in lenders that might be important to you as well. Things such as their reputation, if you have heard of them, whether you can deal online or over the phone, whether they have a branch, if people you know have used them etc. There are all sorts of possibilities and you need to find the one that you think will suit you the best.

Categories
Savings

Should I Buy now and Pay Later?

There are many different ways that we can buy now and pay later. We might do this using a credit card, store card, shop credit or any other type of loan. This has advantages and disadvantages and it is good to be aware of both so that you can then decide whether it is a good idea for you.

Advantages

If you can buy something now and not pay for it right away it means that you can have things that you would not otherwise be able to afford. People will tend to almost always use this method when they buy a home, for example. They will usually use a mortgage to pay for it, so they live in the home right away but take 25 years or so to pay for it. This might also be used to pay for furniture, cars, white goods and other expensive items. If we want or need things and do not have the money to pay for them, then it means that we can have them right away. Some people may also use this if they need to buy something in an emergency. For example, if their fridge breaks down they might not have the money to pay for it right away and so they will buy it and borrow the money and repay it later so that they can still get one but not have to pay for it all in one go. It can help to spread the cost across a series of months or years.

Disadvantages

When we use a scheme like this, we will normally have to pay extra money. We will need to pay for the borrowing that we are doing and so this will cost us money. It is normal to get charged interest and possibly and admin fee and perhaps extras as well. We will normally be expected to make regular repayments and this could be tricky for some people to afford. If we already have a tight budget, then paying extra out each month could be a real squeeze. If we cannot make a repayment, then there will be extra charges to pay on top of what we are paying already and this could make the loan last longer and it will be even more expensive.

It can be quite difficult to decide whether doing this will be a good idea for us or not. It is a good idea to work out how much it will cost us to do this and then we will be able to work out whether we think that will give us good value for money. It is always worth asking ourselves whether we would still have paid that much money for the item had it cost that much extra when we bought it. It is also good to find out how much you will be expected to repay and work out whether that is an amount that you will be able to afford. Think about the amount of income that you normally have and the amount that you normally have to pay out and whether you will have enough money left to pay for it. If you are happy with the cost and the repayment amount then it means that you will be able to buy the item and then repay it later. You will get the benefits of having it before you actually get around to paying for it. This might be something that you really like the idea of. However, if the item does not last that long and you are still paying for it once you have finished with it, then this can seem unfair.

Categories
Budgeting

Do I Need to Stop Giving to Charity if I want more Money?

Many people give to charity, either regularly or at particular times. However, if we are in the situation where we want more money, then cutting back in this area could be something that might help us financially. However, it might be something that you do not want to do. There are different approaches though, that you can consider, which might help you to work out the best solution to this problem.

Reduce spending elsewhere

It might be possible that there are other ways that you can reduce the amount that you are spending. You might buy luxury items that you can cut down on or you might be able to compare the prices on the items that you are buying so that you spend less on those. It is well worth thinking about all of the things that you buy and whether there are any areas where you can cut down. Think about what you are paying for items and whether there is any way that you can reduce the amount you pay, perhaps by buying cheaper brands or by buying things less often.

Find ways to earn more

It might be that you will be able to find some ways to earn some extra money which will enable you to still spend the same amount on charity donations. This will be easier for some people than others. However, there are lots of different things you could consider. You might be able to do more hours in your job, get a second job, do some freelance work, sell some things you won or other things. It is good to think about what skills you have and what sort of work you might like to do. You might be prepared to do anything or maybe only certain things. You may also need to work from home because you are caring for your family or need something easy so it is relaxing. There are likely to be jobs that fit your requirement if you look hard enough.

Give a lower amount

It might be possible that you could still afford to make a smaller donation but not just the amount that you are making now. This means that you will still be able to help out but not as much as usual. This could be enough to provide them with some of the help that they need and you could always give them a bit extra to make up for it once you have more funds available to you. If you pay by direct debit you should be able to reduce this to an amount that you can afford. If you do not pay this way then you should easily be able to reduce the amount that you give them.

Give your time instead of money

There may be things that you can do to help with raising money for the charity or to help out with the charity that will not cost you money. You could help to promote them and fundraise for them, perhaps doing a birthday fundraiser, sponsored event or something like this. You could just let your friends and family know about them and they might be able to give some money in place of your doing so. Another thing that you could do is to do some voluntary work for them. Helping out with things can be as usual or even more useful than giving them money. Of course, this will very much depend on the specific charity and whether you are near enough to them to be able to help out.

It can be hard giving up something like this, especially if you are really used to being able to afford to give money regularly. However, think about whether the charity would want you to struggle and suffer because you were giving to them.

Categories
Make Money

Can I Make Money from Home?

There are lots of people that like the idea of working from home. This could be because they have had to do some work form home and enjoyed it, they want to avoid a commute or they have children or family at home that they are caring for. It can seem difficult to do though as a majority of employers like their employees to be at their workplace, not at home. However, there are some ways that you can make money form home so it is worth trying.

Online surveys

There are a lot of people that make some extra money by doing online surveys and other small tasks. These can be very easy to do. It is worth noting that you will have accumulate a certain amount of money before you will get paid for them. So, you may have to get £20 or even up to £50 before you get a pay-out. This can take a year or more so you will have to be patient, but it is nice when you get the money that you have earned. It can be a fun way to earn money and does not really feel like work either. This means that you can earn with very little effort. You will find that they do not pay loads though and there are some companies that will send you lots of surveys but only pay you if you qualify and you may have to spend quite a bit of time answering screening questions before you know if you qualify. However, some companies will only send you ones that you qualify for or pay you even if you get screened out.

Cashback

This is not earning, but if you spend a lot of money online, it is well worth signing up to a cashback site. These work by giving you back a percentage of what you spend or a lump sum. You will need to go to the retailer’s website using a link on the cashback site so that they can track your purchase and then they will pay you cashback if you qualify. This can be a good way to spend a bit less, but you need to be careful that you do not end up spending more money just because they offer cashback, even if you get a discount you will still be spending money. So only use it for things that you would have been buying anyway.

Freelance work

There are lots of freelance jobs that you can find online including through some large websites. These jobs can be extremely useful. There can be small and large jobs in all sorts of different professions. You will not be paid massive amounts because you are competing for work with people form all over the world, but the convenience of being able to work form home can be worth it. Also, as you build up a reputation and get recommended to others, you may be able to start putting your rates up. Just make sure that you use a site that is genuine – never pay out money to get a job and check out reviews on trusted websites first.

Ask employer if you can

It might just be worth asking your current employer if they can give you some work to do at home. Some people are able to work form home for one or more days a week. They may still have to go into the office for certain things but it could be possible to do some at home. It is worth asking if you do a job that can be done from home.