Apr 25, 2014

Top 4 Factors to Consider Before Having a Loan


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With the enormous rise of lending institutions and banking industries, taking a loan is just a matter of seconds. Financial institutions are luring customers for a big purchase with a guarantee of 1 year to pay, no collateral, zero interest or other hype.

But you must take into account these 4 factors to consider before having a loan or you will blame yourself in the end.


1. The purpose must be a need or has a future value (FV) appreciation


Needs: house, car, education
FV: business, investment

iPhone is not a need, communication is. But you can simply have a cheaper phone to provide your communication needs. Likewise, BMW is not a need, travel is. And you can opt for a reliable Toyota without having any trouble. In any way, it will depreciate and are not worth for a loan.



Meanwhile, loans for business and investment are different. It doesn't guarantee a return but the payback outweighs the loan undertaken. Best example is business loan. How about having a $5,000 loan, payable in one year with monthly installments of $480 but the potential income is $1,000 a month?

That would be $520 pure profit every month! That is considered an unlimited ROI since there is no cash outlay or No Money Down!

2. Monthly payments are affordable

If the above condition is met, make sure you are capable of repaying it. The source of paying off the loan must be decided. Else, your credit rating will suffer. Bear in mind that the loan must not affect your savings, short-term plans and other monthly expenses/bills/loans.

3. Annual Percentage Rate (APR) is industry average

Most of us don't really mind how one loan could ruin us financially. Some loans would take 10 years and it really sucks.

By default, APR should not be more than 16%, else seek another lender. In most cases, banks' annual rate ranges from 12% - 16%. Choose the lowest.

If a loan really matters to you and can't afford to miss that opportunity, try to negotiate the APR and/or increase your monthly payments to shorten the term. Take note, the latter may sacrifice savings or plans so evaluate wisely.

4. Commit yourself to pay off the loan

Acquiring is bliss but repaying is painful. Self-conviction is very important as it will make or break your credit standing. Bad credit standing will result to lesser chances of future loans from creditors. Handle debts carefully. The purpose of the loan is reward; paying off the loan is the offering. So take it positively. 


Apr 14, 2014

You will love these HOT offers from Groupon! (Ended)

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Spice up your week as the Lenten Season is approaching. Saw some great offers and thought I should share it to you. I handpicked these Groupon items with big discounts. You can only find this here exclusively in JuanInvestor. Shop more, sae more! Enjoy and thank me later.

Apr 6, 2014

Start Your FREE Blog in 10 minutes

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I must admit that having a blog is complicated as it may seem, but simple once you take the plunge. Most people complain about the cost and intricacy involved in blogging. Fortunately though, simplifying solves the issues. Now think of a blog like driving a car - simple but not easy. Check the Benefits of Blogging.

3 Reasons Why You Should Have A Blog

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A couple of friends and acquaintances have asked me why I have a blog. Most of them were serious about the question so I answered with modesty, "It's my outlet to express myself and to release my emotions." Surprisingly, the last thing I would hear from them is a silent "Aah."

ABOUT THE AUTHOR

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JuanInvestor shares my tough journey to financial independence. My curiosity on wealth led me to books and actual practice. Here I share my experiences for you to learn and not to repeat the same mistakes. When I don't write, I like traveling to places I've never been. More about JuanInvestor.
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