What determines the interest rates on loan

Interest ratesEver wondered why the interest rates are not constant? Well here is the answer. A few factors influence the interest rates. The most important among them are the inflation and liquidity.

Inflation is one of the important factors for the interest rates to go up. When inflation rises, bank has no other option to counter them, but to hike the interest rates. If there is a decrease in inflation, the interest rates go down. They operate almost as a directly proportional relationship.

Market liquidity is a business, economics and investment related term. It measures an asset’s ability to buy or sell itself with least fuss or most ease. Market liquidity directly influences the interest rates, as more the liquidity, lesser the interest rates, and a decrease in liquidity brings an increase in the interest rates.

There are some simple reasons too: your location, amount you are taking as loan, the tenure of the loan, the bank from where you took the loan and time of the year also.

Tips to Deal with Foreclosures – How to Avoid Foreclosures?

ForeclosuresNormally for secured loans, you have to place some collateral. If you miss two months of payment, foreclosure would be in the offering from the lender. Foreclosures mean procuring your property to get back the amount they gave you as loan.
However, to your relief, lenders do not really want your home. They always want to garner some interest out of their money. Moreover, when everybody is facing foreclosure, you have an option if you want to stop it from happening.

If you can show them that you can pay 50-75%, more than likely, they will give you a chance. You should work harder, and save a lot, to do that. Nevertheless, once you save your property, things really ease out for you.

You can also go for loan modification and loan mitigation. In loan modification, you have to pay a lesser amount for a few months until you gain control of things.

In loan mitigation, arrangements are made, so nobody loses out completely.

Trading in Stocks – Things you Should Have (Part 5)

Share, Trading, Risk & VolatilityPeople trading in highly volatile stocks need to keep a constant eye on the value of the stocks. There are people who are dependent on the fluctuations of these volatile stocks for their daily income. These people are called day traders. Once you identify the volatile stocks, you need to invest in them. You can ask your stockbroker to buy them for you.

You can log on to the websites of online stock traders to get the latest values of the stocks. But you cannot keep the webpage open on top of the other applications on which you need to work. Neither is it feasible to buy a computer just to keep a stock value website open. Plus the website may or may not refresh itself. You may need to press F5 to refresh it every now and then.

The best way is to use a stock ticker. A stock ticker is a software that can be downloaded to your computer. When installed and started, it looks like a small strip, which you can place on the uppermost position of your screen. This ticker connects directly to the stock exchange and constantly shows the values of your stocks by way of scrolling them in the strip. You can also set alarms, which go off in case the value of a particular stock reaches the level you specify. This way you can use your computer and do other jobs without worrying about checking the stock values.

Trading in Stocks – Things you Should Have (Part 4)

Shares & RiskThe more you are involved in the stock trade, the more are your chances of making more profits. There are some people who are satisfied with the nominal returns per month. There are other people who want every cent of their investment in the stocks to return as much as it can. These people trade in stocks that are highly volatile.

You can find the volatility of a stock using the simulator as well as observing the stock for certain period of time. But simulators may not give you detailed information. They are meant to provide you with the performance of stocks across last few years. They cannot provide you with the daily performance reports.

If you opt to observe the stock movement, you will have to wait for long before you begin. And then, how many stocks can you observe at a time. Being a human, your calculations are prone to errors too.
You can alternatively use the volatility charts. These charts are available online on the websites of the online stock-brokers. You can choose a period and get the data from these charts, which will help you in determining the volatility of the stocks.

Trading in Stocks – Things you Should Have (Part 3)

Shares, Stock & TradingAs mentioned in the earlier article in this series, you can use a simulator to determine which company performs best in shares and at which exchange. There are more than 250 stock exchanges all over the world. But as you may not be able to keep yourself updated on the laws related to trading and transfer of money if you trade in some foreign stock exchange, you should try to trade in your own country’s stock exchange.

Once you know which company to trade in, you should know when to invest. For this purpose, you should have the trend chart. These are the charts that show the performance of a stock over a period of time. This helps you in determining the future of the stock. In short, you study the last few years and see when the stocks are up and when down. Once you trace the pattern, you will buy the stocks when they are lowest and sell them when they are highest. However, it is not recommended to wait until the stock reaches its maximum value, as it can backfire anytime. You can sell the shares as soon as you think you are getting enough profit.

Many online stock brokers offer the trend chart services, some of which are free too. You can use them by visiting their websites. It may take some time before you can fully understand the charts and start understanding the stock behavior pattern.

Trading in Stocks – Things you Should Have (Part 2)

Stock & TradingThe first and foremost thing you should know is where to put your money in. You cannot just pick up a company and put your hard-earned money into it. You should do a little research. You may of course leave this part to your broker. But it is better to study the companies, which offer you better chances of making profits.

To study the companies, you can go through a number of websites studying their performances. This will take very long time and cause a lot of stress as well. Plus you need to record and do calculations to achieve the company whose shares you can buy.

There is a better alternative to it. Try using simulation software. This simulation software connects to many stock exchanges all over the world. It fetches data from the stock exchanges you select. The data it fetches includes the financial as well as stock performance averages of different companies. It also allows you to select a company and view further details of the company.

Thus, the simulator is the first thing you should have in order to select the shares that offer more returns. These simulators can be ordered online too.

Trading in Stocks – Things you Should Have (Part 1)

Stock & TradingTrading in stocks is almost like gambling. But the factor of luck is smaller in this case. If you trade with care, you make more profits. If you know what and how to use, you minimize your loss. First of all, you should know why you are trading in stocks.

In case you want to invest for your future, you should never go for the shares. Instead opt for debentures and banking solutions. The returns are less but the chances you losing your investment are minimal.

Most of the people trade in stocks to make quick money. Many depend on the stock-trade only for their income. Such people may or may not use stock brokers for counseling. Even if you have a broker, there are things that you should know so that you can make instant decisions and implement them quickly. The stock market is highly volatile and delay can cause a profit-in-being to a bitter loss.
In the next few articles, we will look at the things you should possess in order to successfully trade in the stocks.

What to do in Case of Unmanageable Credit Card Debts – Part Two

Credit Card CrisisMany a times, the method discussed in the first article in this series does not work. The first article asked you to avail a personal loan and clear as well as close all the credit cards except one, which you will use only in case of emergencies. But sometimes it is too late. Your credit rankings fall thereby making it difficult for you to avail a personal loan of the required amount. Let us look for alternatives then.

One of the best alternatives is to make use of the competition among the online moneylenders. These moneylenders are currently competing against each other fiercely. You can make good use of this to turn the competition into your favor.

These moneylenders offer personal loans even if you have a bad credit. This solves your problem. You can also repair your lost credit by way of this loan, which you take to pay off the credit cards and close them. If you pay off this loan in time, you can see your credit ranking going up.

Of course, you will have to pay a heavy rate of interest, but as you now know, the unsecured credit cards carry a rate of interest, which is many times higher than the bad credit unsecured personal loan.

All the Best!

What to do in Case of Unmanageable Credit Card Debts – Part One

Credit Card CrunchAs mentioned in the second part of this series, availing a credit card is very easy. The more credit cards you hold, the more purchasing power you hold. Many people do not think much about the interest and all until they have exhausted the credit limit. Then they go for another credit card and the same routine repeats until the person finds that almost all of his income is going towards the payment of the interest of the cards.

Most of the people also find themselves unable to pay the monthly interests. They desperately need help. What would you do under such conditions? My advice is to take a personal loan, pay off the credit dues, and cancel the credit cards with an oath that you will not use another card until it is absolutely necessary. It is essential to keep a credit card however, as it serves in times of emergencies but do not again misuse it.