In the lending arena, salary loans are practical choices for employees. They have variable amounts and offered on regular basis. Some people think that payday loans are better than salary loans, but this is not always the case. It’s true that you can get a payday loan within few hours and the approval rate is high, but you need to suffer the high interest rate and weekly repayment terms.
Tolerable Interest Rates
Salary loans have better interest rates than payday loans. If you pay your dues on time, you only need to shell out 5-10% monthly interest. This is a common rate, though some lenders change the percent according to their needs. Payday loans, on the other hand, have weekly interest that can reach as high as 60%. If you can’t pay back properly, you need to cover stressful penalty fees and other charges.
Due to high interest and suspicious processing, payday loans had a bad rap in the past years. Many payday lenders charged their borrowers with monumental fees, leaving most of them trapped. With properly regulated salary loans, you don’t have to worry about predatory lending. Salary loans have positive feedback and recommendations from many financial experts. You can use these recommendations to find a salary loan lender who can give you the best deals. If you want to take the safest route, you should get the salary loans offered by banks.
Better Lender Support
Lenders, particularly banks, have great support for salary loans. Occasionally, you’d encounter salary loan lenders who offer privileges along with their loan options. These privileges can be discounts, interest leeway, freebies, perks, rebates, and other useful bonuses. Banks are even adding more support options in order to attract more borrowers far and wide. Payday loan lenders don’t have frequent support. They just offer the loans to borrowers and go about their business. But things are changing now – some online licensed money lenders in singapore are offering new options for their borrowers.
The best salary loan is the one that combines all three reasons or can even go beyond. While there are hundreds of salary loan lenders today, only few can really give the best deals. So, keep your choices open. Better yet, simply create a small list of salary loan lenders and take your pick from there.
Borrowing a loan is a common activity but not all people are taking this seriously. The main consequence of this is the fact that many loan borrowers are trapped in serious financial dilemmas. They usually drift from one loan to another, not thinking about their financial situation. To avoid this situation, you must be a responsible borrower. While it’s easy to declare that you’re borrowing responsibly, your mindset and actions will speak up for you.
Below are some of the right mindsets that every borrower must have:
Loans are Emergency Solutions
All types of loans must be used as emergency solutions – not as crutches. Unfortunately, many borrowers are guilty of this and they’re even unaware of such habit. They believe that loans are means of income, discounting the fact that it will accrue interest and other relative fees. As a responsible borrower, your goal is to treat loans as last cards in your sleeve. In this way, you can avoid getting trapped.
Loans Should Be Invested
Loans should not be used for buying luxuries or spending them for something that won’t bring back any value. If you have a sense of responsibility, you would invest the loan into something useful and profitable. Micro-investments are great choices because the entry barrier is not high and you can sell the items for great values someday.
Loans Must Be Repaid Quickly
Loan repayment is a big issue among thousands of borrowers. Many of them can’t take their loans seriously, so they miss out on repayment. If you’re guilty of this, it’s time to change. Leaving a loan unpaid will give way to frustration and deeper financial troubles. On top of that, your credit score will be affected if you can’t repay on time. To carefully manage your loan, you must have a loan repayment plan. This plan will cover all of your financial aspects and help you make the right decisions.
Do you follow these mindsets before borrowing a loan? If not, then you should embrace these mindsets right away! Once you do, every loan that you borrow can be turned into a proper source of leverage. Just be patient – adopting these mindsets doesn’t happen overnight.
With dozens of loans available for the average person, finding the best option can be tricky. There are many factors at hand – such as interest, leniency, requirements, and application process. If you’re looking for a loan, you can create a list of the available options and make your decision afterwards.
You can draw up your list using these popular, easy-to-manage loan options:
Low-Interest Personal Loans
Nowadays, low-interest personal loans are considered as the best options for employees and non-employees alike. Since they have low interest, personal loans can give you financial leverage and greater chance for quick repayment. Also, the competition in the personal lending arena is tough, so you can get attractive options far and wide. Low-interest personal loans are also great for people with startup credit rating. Once you managed to repay the personal loan without hassle, your credit rating will go up.
Local Cash Loans
Aside from personal loans, you can also get local cash loans from selected lenders. These loans are known for their low interest and easy application process. They are somehow similar to payday loans, but they are more considerate. Also, local cash loans are offered by well-off people in a community. Rural banks can also offer these loans on a regular basis.
Home Equity Loans
Home equity loans are the best options if you have your own home. When you’re borrowing for equity, you’re staking out the value of your home. Before getting this loan, you can employ the services of home inspectors. These professionals will assess the full value of your home so that you’d get an estimate regarding the amount that you can get. But still, the bank or the lender has the final say when it comes to the amount. Home equity loans are also flexible because of advanced refinancing options.
Even if these loans can be managed easily, you can still have a hard time without proper financial discipline. Make sure that your loan schedule is on track so that you can repay all of your loans without fail. If possible, do not apply for a new loan once you still have a pending loan obligation. This will make your repayment process easier.
Rich people got into their positions because of their habits and proper mindsets. While some are born with silver spoons in their mouths, others are self-made and they struggled against the challenges thrown by life. Rich people also have different ways of dealing with loans, unlike the methods of most borrowers.
Do you want to know how the rich manage their loans? Here are some viewpoints:
Build Something With Your Loan
Rich people are always thinking of ways to build something out of scratch. Even if you’re not yet rich, you must have the same mindset. Once you get your loan, you should start a project like an online business or a side hustle. At first, this business will earn a little but the profits will come sooner or later. Before you start building something, you must explore all angles of your idea. View the finished product first before you even lay down the foundations.
Seek Investments While Covering Loan Interest
Investments are more important than savings accounts. Every year, inflation swells by a marginal percentage. The amount of money you saved last year will have lesser value this year. Investments can counter this because they have lower depreciation. Before choosing an investment, you must do your research. Understand the market first so you’d know the opportunities and pitfalls. While investing, make sure that your finances can still cover loan interest.
Use the Loan to Refine Yourself
Refining yourself is one of the greatest endeavors that you should take. In order to do this, you must purchase books and courses that will widen your knowledge. You should also attend conventions and events so you can market yourself effectively and build long-term connections. Your loan can help you with this, and with the amount of materials available in the Web today, you don’t need a high amount.
It’s very unlikely that a loan will make you rich. Rather, loans can serve as instruments that will help you achieve your goals. Before applying for a desired loan, do a financial health check. Ask yourself if you really need the loan or you have the means to repay it. Don’t be swayed by the promise of low interests and fees. A low interest is still money down the drain.
The world of freelancing is greatly accepted nowadays. Many freelancers are entering the frame, taking on one project after another. Thousands of clients also posted jobs in freelancing platforms in order to accomplish their tasks without spending too much. Aside from regular income, freelancing can help you pay off a significant loan. You just need to find the right jobs or projects.
Listed below are some of the best freelance jobs that you can try:
Being a VA is a profitable journey, especially now that many entrepreneurs are competing in the market. As a virtual assistant, you have a multitude of responsibilities such as social media marketing, translating or creating files, appointment setting, sales calls, follow-ups, and basically anything the client can think of. The VA industry may be competitive, but you will get a chance due to great online demand for services.
If you have skills in coding and a penchant for creating stuff, web design is for you. Many clients need to have websites to represent their businesses and initiatives. This is a good time to flaunt your skills or portfolio. If you’re just new in learning web design, you will encounter a difficulty curve. Hence, you need to bide your time. Take alternate jobs to fund your learning journey and cover the interest of your loan. Later on, once you can take projects, the profits will start rolling in.
Project management is considered as a higher level of virtual assistance because it involves multiple skills and mastery of various tools. As a project manager, your duty is to ensure that the assigned project becomes successful. You’d be presented with a certain goal and you need to do your best to reach it. Skilled and experienced project managers earn six figures – so just imagine the profits you can earn.
Paying off your loan with the help of a freelance job can be rewarding indeed. If you hit it big, you can even have more money for your savings or luxuries. But remember – you must keep on improving yourself to gain more out of your freelancing career.