No Debt Finance

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US Student Loans Saw A 17% Growth In Debt Value Since 2013

The burden on the average American student and soon-to-be-graduate is heavy. Generations before them are still carrying the huge burden of college education. According to a report, about 1.1 million student loan borrowers defaulted on their loans and last year, the value had increased by 17% in just three years.

According to Consumer Federal of America Senior Fellow Rohit Chopra's analysis of publicly available government student loan data, the number of borrowers remaining "in the red" was plenty. However, the report is seen as an understatement as Direct Loans is only one type of Federal loan available for college students.

Chopra indicates the federal student loan had grown 16.5% since 2013, an amount from $26,300 on average growing to $30,650. He said despite the economic improvements exhibited by the US stock market and lower unemployment, borrowers are still struggling to repay their debts.

It is likely due to the United States' "part-time" economy -- a growing trend in the West. Companies are hiring freelancers and part-time, contract workers without benefits to cut on losses in employment. The pay is likely insufficient for most students to successfully repay their student loans.

According to Chopra, the US government has yet to announce any plans to address student loan issues. He said that the US government could have helped prevent the number of skyrocketing loans by easing payment program requirements and other aspects to reduce the annual debt interest rates.

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Scottish Mortgage Sees Half Often Switching Mortgages

"Mortgage hopping" is fairly common amongst Scottish borrowers according to a YouGov stody sponsored by Mortgage Company Trussle. The data revealed that West Midland borrowers risk themselves paying a higher amount on expensive standard variable rates (SVRs) in exchange for brand loyalty with only 41% of the Scottish population switching mortgages when it guarantees more advantage.

According to Trussel Founder and CEO Ishaan Malhi, with only half the population switching their mortgage, the small number of mortgage switches is concerning as Scotland's own spending is limited by homeowners. Malhi added that better interest rates had helped spark interest to switch mortgage -- but only to a degree.

However, he estimates that technological improvements in applying for new mortgage switching could make it easier for consumers and increase the numbers. Malhi is further concerned by the higher Bank of England interest rates, which could upset the number of applicants for mortgage switches.

Still, Scotland remains the most proactive of the entire country. Malhi said consumers should take advantage of the simpler switching process about to come to switch to viable and lower-interest mortage rates.

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UK Pound Sterling Drops In Value Before Prime Minister's Speech

Before UK Prime Minister Theresa May has a chance to lay down her plans for the United Kingdom post-Brexit, the UK pound sterling found itself almost at par with the US dollar at $1.20. Analysts believe rumours circulating regarding the government preparing for a "hard" Brexit had played immense roles in weakening the pound further.

Confidence returned to the UK after US President-Elect Donald Trump wanted to ensure that post-Brexit, the UK would immediately develop a US-UK trade deal. The Pound Sterling's value had dropped by 20% since the EU referendum results were announced.

it was rumoured that UK Prime Minister Theresa May is to announce that the United Kingdom is ready to leave the single market of the EU including the customs union and the European Court of Justice during her Lancaster House Speech on Tuesday. According to the government, these were all speculation.

Chancellor Philip Hammond's statement offers clues regarding the possibility of a hard Brexit. In an interview in Germany, Mr Hammond said if the UK is denied access to the European market, the UK can suffer economic damage only for the short term, change its business model and "will do whatever we have to do." He stressed the UK will not "lie down and say 'too bad, we've been wounded.'" He said the UK will change its model and regain its competence quickly.

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The US Fed Plans To Raise Its Interest Rates; How Will It Affect You?

The US Fed has been threatening -- no, trying -- to raise its interest rates in the last few years. Only with the White House and the outlook of different departments and their statistics appealing that they still be patient to help the economy recover did they not push to raise the almost-zero percentage. That has happened in the last 9 years.

With the American economy doing better than what analysts expect and employment continuing to boom despite the US election's results, the Federal Reserve has confirmed it would push the interest rates from 0.5 to 0.75 per cent today. We can't feel it yet but it will directly affect your personal finances.

Credit Cards

The usual credit card debt any American has is about $5,437. With the Federal funds increase it is likely rates on credit cards could become higher. Rates on home equity lines of credit, adjustable-rate mortgages and personal loans can follow suit.

Mortgages

Banks typically wait about eight months to increase savings rates after a Federal reserve increase. Bank will raise rates quicker on their borrowers -- leaving your mortgage at the mercy of your lender. You might see a little notch higher in your annual repayments to banks, which makes it a bit of a bummer but it does come slowly to help you cope with it.

[nodebtfinance]

The Direct Effects Of the US Elections On Your Finances

If you're investing in the stock market, we're going to have a short problem

You see, with Donald Trump now as president of the United States, UK investors in the United States could find themselves in a bit of a bind.

Just like Brexit, new rules, new games and new outcomes. Should Hillary Clinton have won, things would stay almost status quo with an increased probability of like, say 10%.

But now we've gone 100%

The dollar is likely to fall as the stock market plunged immensely with the Dow Jones in tow opening at 750 points on Wednesday. If you have some dollars in your pocket, now will be the time to sell before everything falls apart.

But if your portfolio is nicely diversified, you have not much in terms of problems at all. You might see some areas fall and some improve effectively in the next few days. It's a matter of playing the long waiting game at this point.

For US pensioners though, this will be a big pain. US bonds would have its interest rates stay lower for longer. Bonds and dividend stocks will continue to weaken.

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A Quick Guide To The UK's Pound Devastation

The sterling was almost done for. After Brexit, our country's currency has been fluctuating nearer like Bitcoin values.

The currency had currently sunk itself to a very low level in 30 years -- the date before we signed up to be part of the European Union.

During the Brexit, the pound was suffering against the dollar at $1.48. Soon after, it had sunk to $1.23, the lowest it had gone before the UK joined the EU.

According to Jordan Hiscott -- a senior analyst at Ayondo Markets, the sterling was driven lower because of the BoE's decision to cut interest rates further into negative territory.

Another was UK neophyte Prime Minister Theresa May stating that she would trigger Article 50 by the end of March.

Analysts fear inflation can increase daily commodity prices quicker than expected. Senior Currency Analysts for Hargreaves London Chris saint said:

“Commodities such as food and energy are usually priced in US dollars, which makes the cost of importing them to the UK more expensive.

“If inflation starts to increase as a result, this could squeeze living standards.”

However, most analysts are positive that this situation has yet to materialise. British Retail Consortium Chief Executive Helen Dickinson said “We are now in the fourth year of falling shop prices, which is great news for consumers.”

The only ones rejoicing and may probably balance the situation would be British Exporters as weaker pounds mean better chances of higher sales abroad.

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Three Great Personal Finance Tactics For Better Business Growth

It's possible everyone knows this. It's possible that you've been practicing this all your life. But it's not really bad if we talk about a reminder now and again, right?

Here are three tips for awesome personal finance that could help build better business gains.

Set Budgets

Money management on a personal scale reflects much of one's fiscal handling of a business. If you can figure out your personal expenses, taxes and budget your income for your personal and business use, then you could set a budget for your business with effective implementation.

TL;DR: If you can quickly figure out the money you owe banks and your personal expenses, you could set enough money for your business and figure out the expenses for your business.

Manage Those Debts

If your debt-to-income ratio is more than 100% of your income, that's obviously a trouble spot. But if you have a DTI lower than 50%, then you're almost at bay for incurring further expenses.

Make sure to work on reducing your monthly recurring debt, find ways to increase your gross monthly income and make sure to lower your unnecessary expenses as well.

Lay off that iPhone 7 and make your business work first.

Improve Your Credit Score

Get a financing for anything. Remember, financing and loan applications is like the college, only post graduation. If teachers wanted to grade you, they'd look at your scores.

Banks need to see if you could manage your finances on credit to give you easier access to better loans that could work for your business.

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A Quick Need-To-Know About State Pensions

A new parliamentary government means new perspectives when it comes to different things including pensions. Unfortunately, the UK's elderly won't be safe when new guidelines arrive.

Experts speculate the "triple-lock" protecting pensioners' regular monthly rates may be scrapped to aid the UK's economy and "make sense of the system."

Here's a quick guide to everything that could possibly happen.

Lower Pensions

The triple lock would rise in line with either earnings, inflation or a 2.5 per cent rate, whichever is higher, for UK pensioners.

Former Pensions Minister Ros Altmann said the 2.5% rate increase for pensions does not make logical sense given that the economy could not adjust for the increase without taking into consideration other factors.

So anyone receiving about £570 this year would not get the same amount.

Not Everyone Is Happy About It

Mrs Altmann is against everything pertaining to the support for the triple-lock. According to The Institute of Economic Affairs, the idea is "utterly absurd", pertaining to the 2.5 per cent increase.

IEA Head of Public Policy Ryan Bourne said:

"In essence, this guarantees ever-increasing spending and, over long periods, de-links this from the health of the economy and the ability of working-age taxpayers to finance it.”

Bourne adds that to offer this guarantee at a time when the country is struggling to fund an ageing population is “insanity”.

Many contrast against the idea. Aegon Head of Pensions Kate Smith said that “To give pensioners certainty, the Government should not make mid-term changes to commitments such as the triple lock.”

Steve Webb, another former Pensions Minister, also offered his views. He said the incomes of the elderly are still "trailed" and the pensions lock is a guarantee of such.

[nodebtfinance]

Why the UK Brexit Isn’t The World’s Economic Sinkhole

Given the economic reviews of experts worldwide regarding Britain's exit from the European Union, Britain is the cusp of all the world's financial troubles.

Or at least given that it gets the most media attention.

The Telegraph's Liam Halligan believes that government bonds, slow growth and the spread of negative interest rates (including the United Kingdom) are happening not just because of Britain's exit.

Halligan pointed out that Europe and the Western World's economic situation had been sinking for the worse since the end of 2012. For the past ten months even before the Brexit vote, economies had already found trouble.

Halligan pointed out that the Brexit didn't make anything worse. Instead, it just highlighted the wrongs in the Western world's economics.

He added that the UK will likely exit the EU formally after two years and possibly longer given all the legislative procedures required. He added that trade agreements and commercial regulations will not change.

While financial developments due to the Brexit are likely to happen, Halligan said that these are only 'emphasised and trumpeted' while the positives are ignored.

And most likely you can guess: no one reads good news as much as bad news.

Former Senior IMF Economist Ashoka Mody also pointed out that 'lengthy' negotiations had been downvalued in exchange for the stability and security of a few in light of the Brexit.

[nodebtfinance]

If The UK Stays We Get Bigger Bills - Johnson

Former London Mayor Boris Johnson is set to say later in his speech that the UK will face bigger debts if it chooses to remain in the United Kingdom.

As part of the party that endorses the United Kingdom should leave the European Union, Johnson said the UK's bigger bill is due to the possible budget increases Brussels could impose co-members. The country may also need to support future Eurozone bailouts, which could mean a £20 billion black hole in the EU finances and billions of losses in the United Kingdom.

"The risks of remain are massive. Not only do we hand over more than £350m a week to the EU, but if we vote to stay the British people will be on the hook for even more cash," Mr Johnson will say.

"It is a triple whammy of woe: the eurozone is being strangled by stagnation, unemployment and a lack of growth, it could explode at any time and we will be forced to bail it out. The botched bureaucratic response to the migration crisis means the Eurocrats are demanding even more of our money. And now we find that there is £20bn billion black hole in the EU's finances."

Meanwhile, pro-EU campaigners called Johnson's perspective as "nonsense" given the agreement between the UK and EU is that the UK will not participate with budget on any future bailouts. The UK also has a veto on Brussels' budget increases if any.

Pro-EU campaigner and British Prime Minister David Cameron would accuse Vote Leave of "an economic con-trick."

[nodebtfinance]

The Farmers Convenient Guide To Bank Financing Farms

Maybe it's time for your to settle down and live the great family life. You'd want to set up your own farm and the newest farming technology would enable you to create a living without much trouble.

Food will never be out of season, maybe except for some kinds of food. But sometimes, dreams take time to fulfil. But banks can help you, somewhat.

Here is a checklist of all the things you need to get a farm loan, from the Irish Examiner:

You will need a description of your farm business:

Land: acres farmed, owned and/or leased

Livestock: numbers and value for each of dairy herd, suckler cows, replacements; livestock saleable in the next 3-6 months and likely proceeds.

Milk Quota: total litres owned, volume supplied in most recent quota years, expected monthly milk cheque.

Buildings: describe milking parlour, dairy/suckler cow housing, slurry housing, grain store.

Farm Machinery: owned, existing financial commitments, details for work for which contractor is hired.

Feedstuffs: type, tonnes and value.

Tillage: Acres, crop(s).

Farm Compliance: would farm business pass a cross-compliance inspection, REPS, nitrates inspections?

Financial Information

 You will need to give info on income and costs generated by the farm business as well as non-trading and non-farm income. 

Audited accounts for most recent years and farm budgets for the current year.

Cashflow forecast for the relevant period.

Non-trading income: SFP, REPS, area aid, State aid, suckler cow premium, welfare payment, waste management grant.

Non-farm income: that generated by the farmer or spouse, contracting income.

Costs/Expenses: farm business costs incl. annual hired labour, land

Current assets: savings, shares, life policies, off-farm investments, pensions.

Liabilities: bank debts, credit facilities, machinery hire purchase and leasing, co-op / merchant debt, farm contractors veterinary.

Bank Statements: covering recent months, possibly longer if accounts with other financial institution.

Tax compliance: Revenue Commissioners confirmation tax affairs in order.

The Purpose

 An explanation of why the credit is needed and how it is to be used. Proposed repayment schedule, total costs of project,and outline of how it is to be funded.

 The Risks

 An outline of the involved and steps being taken to deal with these, such as capacity to deal with overruns.

 Assessing applications

Banks assess any application for finance from a business under the following: 

(1) Character of borrower: As to your farm business, you must demonstrate that you are an effective manager with a good reputation.

(2) Capacity to repay: For credit, financial forecasts must show how repayments will be generated, your skills and off-farm income.

(3) Capital in the business: This is split between equity (the money that the owners and investors have put into the business) and the debt (money borrowed from banks or other sources).

(4) Collateral: This is the security given to a lender for protection in case the business cannot repay the loan; any one of a range of business and personal assets, such as buildings, vehicles, machinery and land title. If the farm cannot generate enough cash to repay the credit facility, the lender may have recourse to the collateral.

But for banks generally, recourse to collateral is always the last resort.

The farm is viewed as a key source of repayment, however, other sources of income may be taken into account — eg income from off-farm employment — when assessing an application for credit.

It is always advisable to seek independent legal advice before providing collateral against credit facilities.

(5) Market conditions: The trends in the agri-food sector and the overall economy are crucial factors in determining the success of your farm business.

 Working with your bank

Your bank is there to help you achieve your business goals. Here are some useful tips to help develop a good working relationship.

Update your bank on how your business is performing and be open and upfront. Be proactive and contact your Bank to address any pressing issues at an early stage.

Present up-to-date financials on a regular basis and ensure figures are accurate. Avoid delays in submitting information if it is requested.

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Having A Choice About Your Financial Decisions Puts You In A Place Of Power

It's hard to start a diet. Moreover, it's more difficult to start saving money.

But the virtue of saving money for me hasn't been easy.

I've always been a person who spends much more than anyone should. Whenever I see sales, I go grab the best opportunities to get more for less.

This attitude is great. But sometimes, I purchase things I don't really need.

It's important to change your mindset about money to avoid being like me, hard to liquidate and insolvent with all the debt I accrued.

I always thought I had no choice. I always told myself I should've done this or that.

Saying should've and "I have to (insert something to do here)" never really fared well for anybody. It puts pressure on you.

Pressure is great to further level-up your person. But sometimes you need a relaxed mind to see the bigger picture of the things you're currently accomplishing.

When you know you have a choice, you see where your choice can take you. Slowly but surely, you know and understand that if anything should happen, it's all part of the plan.

Always make decisions that help you improve as a person. Even if it's hard, even if it means losing a great deal of money for doing something right, make that decision.

Yes, I know you lost money making that decision. But you have grown as a person and your mindset about money is that you can get it and you chose to choose the right thing over money. This makes you un-enslaved with money, which would allow you to get your money.

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Three Things To Change Your Perspective About Money

Money makes the world spin. Well, at least you need it to see the world spin on a daily basis. Earning money is difficult. Tell me about it, I've been there and I'm probably still there.

Personal finance is easier to manage today compared to 10 years ago though. We've got smartphones and applications that help us manage our finances just like in video games.

But if we're not aware of how we look at our money, technology and everything else intended to be helpful becomes useless.

Make More, Not Just Save

I admit; it's essential to save for that new smartphone I've wanted for so long. I have to adjust my personal finances to keep myself afloat along with my other liabilities, to buy that smartphone or any kind of thing I want.

The right attitude would be to create plans to earn more money.

Budgeting would never help you when you need a five-digit sum for a crucial life-saving surgery. However, improvising and finding for more ways to get more cash, as well as looking for more ways to earn more money before budgeting is a better attitude.

You Imitate Your Friends' Attitude Towards Money

Your friends affect your spending habits. Yes, I know it's not you who treats them to a bucket of beer fiesta every day. But the way they spend their money affects you. It's a 1 to 100 ratio that a person is unaffected by their friends' outlook towards money and their spending attitude.

If your friends are enterprising, managing businesses and discussing issues regarding wealth and brushing off setbacks, you've got great friends. I can't say for certain about the counterpart, though.

Potential Is Fallacy. Probability Is King.

People tell you you've got potential. It's a marketing term coaches use to encourage those they deem who have talent to join their team. Of course, for the coach it's a fact. But for the player, it's yet to be real.

Treat all potentials as possible fallacies. When investing in stock, your potential returns are just what they are, potentials. They just give you an idea of the amount you're bound to receive. But, by looking at the stock history of others relative to what you're holding, you avoid potential and you see probability.

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Five Ways For Millenials To Cope With Troubling Debt Troubles

Millenials are superior in intelligence than their parents because of their education supplied to them by their parents. However, with Baby Boomers delaying their retirement and the unstable jobs market in the world today, millenials are fiscally-challenged for every move and aspiration they make. Here's how to maintain one's self during the stressful appearance of financial troubles

Healthy Relationships

A solid support system can help any person get over a situation in the best manner possible. Without a resilient support system that can help improve your mood. This can also help you think better, about money whenever possible.

Meditate Every Day

Meditation allows an expanded awareness of your surroundings. Relaxing is the furthest thing from your mind right now, but you need it, and on a daily basis. Stop working for 15 minutes and close your eyes without sleeping.

The Bigger Picture

While meditating, look at the big picture you're painting. You took out that student loan to further your education. Furthering your education means more opportunities or observations that would help you penetrate the market to create a livelihood for yourself. Never lose sight as this will help you meet what you need.

Health Itself

Always take care of your health. By doing daily exercises, you preserve your health and you lower your insurance premiums. One's health is the biggest investment anybody can have. With better health comes more chances to go for opportunities.

Volunteer

When you volunteer and help those who are more in need than you, you give yourself a chance to reflect. When you realise that you're in a better position than other people, you see the opportunities ahead for you. This thought can help you relax, definitely.

[nodebtfinance]

Ever Made That Biggest Investment Decision In Your Life?

No, it's not college. It's not even about getting that expensive dream house or even mansion you've always wanted.

It's not about how much money you could make per year.

The biggest investment decision is easier when you have enough money to see the number of options you have.

Your biggest investment decision, therefore, is knowing how much you should save rather than deciding on the amount you should pull out on the banks.

It's easy to see it in this way:

           We have limited things we can control and not control.

           One of those things is our money and saving is an Occam's Razor that has actual fact, which is the total amount of money we had saved so far.

A small increase in your savings cuts out huge numbers of years from your retirement. Or maybe that makes it faster for you to get that dream house or business.

Investment isn't always the answer. Investments increase your savings by increments but if you can increase your savings, you increase the amounts you could earn from both your job and your investments.

For example, adding just £50 to £70 to your retirement account monthly is only a 2.5 to 5% savings rate if you have a £40,000 monthly salary. Now, if you increase it by 10%, you save more than about £6000 from your monthly salary. This is bigger than the 8% you earn from your £10,000 worth of investments you've focused on in the last few years.

But don't fret, your investments will "create trees" i.e. begin to outplace your contributions over time its values grow.

[nodebtfinance]

Maybe It's Better Not To Trust Banks?

Businesses, including banks, use the Internet to make it easy for consumers to check their balance, create transactions and even transfer their funds from one bank account to the other. However, it is appalling to see that most bank employees, especially those in the higher parts of the organisation, are utterly disregarding their cybersecurity measures by circumventing it.

The UK's finance industry, and this might be true for many countries' finance industries, are the hardest-hit by most cyberattacks. Banks promise the beefing-up of security measures. However, employees, including consumers, are often likely to disregard cybersecurity measures.

This is a sad reality. Maybe it's time we let off the banks now?

The Opposite Happens Upwards

Accoring to a survey published in City AM, higher officials of certain banks and finance companies admitted to have knowingly exposed their company to potential threats by circumventing the securities intended to protect such sensitive information in the first place.

According to Palo Alto Networks Vice President and Regional Chief Officer Greg Day:

With two-thirds of people not yet on board with the reality of everyone having a role to play in preventing cyber attacks, it is clear there is an opportunity for organisations to put cybersecurity education front and centre in 2016.

This comes after Chancellor George Osborne's promise of doubling the cybersecurity spending for the entire United Kingdom.

It seems that couldn't be trusted too?

[nodebtfinance]

The Pros and Cons of Owning a Credit Card

You've been granted a credit card? Awesome news, aye? But now is the start of an eventful phase in your life where you'll be handling bigger financial responsibilities because you could get yourself in danger. Maybe you ought to read whether the card is best for you or not.

Pros:

Credit Score

Credit cards are like cameras attached to your wallet. Each time you use them, banks have an insight about your spending and budgeting habits. The best you pay per month, banks will see you as a responsible budgeter. Have a high debt, and banks won't grant you further opportunities to finance yourself in the future.

Instant Cash

Credit cards give you instant cash when needed. There comes a time when you need to make a purchase and you couldn't reach the ATM on time. Plus, credit cards are useful assets for online transactions, which mostly need your credit card number and security code. Paypal and other online payment couriers use credit cards to verify your account.

Cons:

Risk of High Debt

Again, the risk of high debt is obvious at this point. Budget efficiently. Use your credit card only and when you absolutely need to. Don't use it for binge shopping. Instead, manage your credit wisely by noting down each purchase you've made using it.

Lax Budgeting Skills

The problem with owning a credit card and not growing up with cash is people tend to grow dependent on financing and do not develop their own budgeting and saving skills. Yes, these two are considered skills nowadays given most individuals couldn't handle their money efficiently and require the services of a financial adviser to assess their finances.