When Life Hands You Lemons, Get a Line of Credit

A recent study has found that the majority of Americans find themselves spending money they don’t have on essential car repairs or utility bills. For some low-income families, the cash shortage can be significant enough that they spend more than 182% of what they make in a year. Even the middle and upper classes aren’t without their difficulties, as each rung spends 89% and 61% more than their respective incomes. When you look at the numbers, borrowing money in order to cover basic needs seems inevitable.

Line-Of-Credit

For those financially green individuals, the thought of debt can induce heart palpitations, but there’s no reason to stress. Debt is a fact of life. According to a report conducted by the Pew Charitable Trusts, as much as 80% of Americans are in debt. Between mortgages, student loans, credit cards, and car loans, debt is unavoidable. Looking for a line of credit to help pay for sudden, on-going charges like home repairs or utility bills isn’t a sign of failure. In fact, if you do it right, it’s the best way to support you and your household.

Not all personal lines of credit are created equal;however, so it’s important that you do your homework before you check out these options. You need to confirm the lender you choose for your line of credit can provide security and responsibility through fast-acting, convenient loans. When time is of the essence, traditional lenders can’t offer all of these features, which is why so many Americans choose to investigate MoneyKey as their source for lines of credit.

Direct online lenders have an incredibly quick application process that requires very little time or effort on your part. As long as you have access to the Internet and can provide proof of your income, a valid bank account, and a working email address, you can apply. You’ll know if you qualify instantly. From there, your application will be reviewed and any of the information you provide is verified. Should everything check out and your application is approved, your limit (typically $1,000) will be available within one business day.

In order to apply to any lender, regardless of the quality of your loan, you will have to release information. To ensure your contact and financial data is protected online, your direct online lender must employ a minimum amount of digital security. Things like updated firewalls and Secure Socket Layer (SSL) should protect their website and their digital storage spaces.

To ensure your line of credit can provide a responsible solution to your financial situation, look for their license and online precautions. Your direct online lender must be licensed to issue loans in your state. Without this accreditation, there’s no way to guarantee the credit they provide abides by your state’s laws and regulations regarding money lending. This means they can raise the rates and change the terms of their loans with impunity, purposefully inflating and confusing their products so they’re harder to pay back.

While earning debt shouldn’t arouse fear or suspicion, you do want to be able to pay it back one day, so it’s critical for your financial health to ensure your direct online lender provides responsible lending opportunities. Take the time to research personal lines of credit in your state, and make the right choice about your finances.

5 Tips to Sustainable Passive Forex Growth

Also known as passive management, passive investing is a means to limit your exposure to the sometimes sudden changes associated with a discrete position. Lower transaction fees and more stable profit margins are two additional goals associated with this approach. Although passive investing is normally associated with following a market-weighted index, it is still possible in reference to Forex trading. Let us look at some general concepts to appreciate as well as why this strategy can prove to be worthwhile from a longitudinal perspective.

1. Psychology

The first tip is to have the correct psychological mindset. By its very nature, passive trading is a much less proactive approach when compared to other strategies such as day trading. The passive trader is more interested in long-term goals as opposed to short-term positions. This can also help to limit the amount of emotion involved with a given trade; essential for making objective choices.

2. Percentages

It would be a mistake to assume that passive Forex investing is a “hands-off” methodology. On the contrary, it is just as important to follow interest rates, economic data and other major indicators. However, the percentages placed within any given position can be somewhat less than those associated with short-term day trades. The theory is that once a profit goal is reached, these funds can then be withdrawn and used as a means of sustainable wealth.

3. Prudence Through Automation

Many passive traders take advantage of the tools and instruments offered at CMC Markets. Stop-loss, OCO and limit orders are three examples. Automated trading methods offer some very unique benefits. First, unpredictable losses can be curtailed. This is obviously important for those who are on a limited budget. However, this approach will not dampen any profits to be realised. Passive and prudence should always be used within the same sentence in this fashion.

4. Long-Term Market Trends

Many passive Forex traders tend to minimize the impacts of any knee-jerk reactions which often occur within the currency sector. Instead, they focus on the big picture. This is often simply referred to as “big picture” trading. Spotting long-term trends and factoring in potential impactors (a recent example could be the potential Brexit) are both methods that are employed here.

5. New Versus Existing Capital

Staying true to the mantra of mitigating risks, passive traders will always strive to reinvest profits from previous positions as opposed to depositing additional capital. To put this another way, such a strategy is seen as “leapfrogging” from one position to another. Should losses occur, these will not ablate funds that cannot afford to be spent.

These are five excellent tips for those who may be looking to adopt a more passive trading approach. Like any strategy, passive trading takes a certain amount of skill and success will not occur overnight. Be sure to use the informative tools within CMC Markets to appreciate the further intricacies of such a methodology.

To Rent or Not to Rent, That is the Question

As the housing market continues to fluctuate, you have to wonder if it’s better to rent or buy your home. On one end, rising apartment rates in cities across the U.S. are making homeownership look more appealing to the once precautious buyer. However, there’s no longer a guarantee that the money invested in a home will net a similar, or higher return. Before deciding to rent or buy your next home, there are some important differences between renting and homeownership that you need to think about.

Let’s take a look at some of the pros and cons of renting versus owning a home.

Pros of Renting

For those afraid of commitment, (maybe you plan on leaving your job in the next couple of months or don’t see yourself living in the city for the long haul) renting offers you autonomy. Signing a year or month-to-month lease gives you the opportunity to change your plans on a whim. Let’s look at some of the other pros of renting:

You Can Pick Up and Move: Unlike with the ownership of a home, you’re not locked in to your apartment. If your job should require that you move to another state or town, you can. If you’re the extra-squirmy type, a month-to-month lease offers you the freedom you need if you don’t see yourself settling down in one place for too long.

Maintenance Included: As a homeowner, if the dishwasher leaks or the air conditioning unit breaks down, you are responsible for the repairs. This isn’t the case as a renter. All you have to do is call up your landlord or superintendent, and they will send their maintenance team to fix it free of charge.

Lower Insurance Premium: Apartment complexes are beginning to require that their prospective tenants have a renters insurance policy. Much more affordable than homeowners insurance, renters insurance covers the cost of all of your damaged, lost or stolen personal possessions. And thankfully these days, it’s not even hard shopping for insurance packages. Sites like CoverHound help you compare renters insurance from several reputable companies so you can find a policy that fits your needs and still saves you money.

Dodge a Depreciating Asset: Because the housing market is in a constant state of flux, owning one’s own home isn’t a guaranteed positive investment anymore. If you bought your home for $700,000 and the market took a downturn, putting its value at $400,000, you have now lost $300,000. While renting an apartment is a guaranteed draining of funds, you need to be wise in the home you end up purchasing and hope for a little luck to stay in the green.

Cons of Renting

All things come at a price; unfortunately, that’s just the way life goes. While renting has plenty of positives, it also has a few drawbacks:

Pet Ownership: If you own a dog, finding an apartment with an open pet policy can be a tough. Many landlords are wary to rent to tenants with pets for fear of damage to the unit caused by a rambunctious chewer. And if your pup’s a barker, you’ll have angry neighbors whom will more than likely complain to the landlord. It’s also worthy to note that some apartments simply aren’t big enough for your fur baby to run around in, leaving for a complacent-at-best, depressed-at-worst pet.

Payment Increases: With homeownership, you always know what your mortgage payments are going to be. As a renter, your monthly rent payment is subject to change, especially with a month-to-month lease. Because rents are on the rise in the urban areas, landlords are looking to lease to the highest bidder.

No Tax Breaks: Come tax season, homeowners can deduct home repairs, property taxes and mortgage interest payments from their federal income tax. Renters do not receive any tax breaks for renting.

No Equity: Homeowners (when the housing market is stable) build equity. Over a certain amount of time, real estate (when the economy is running smoothly) appreciates. This can make the house you purchased for $700,000 worth $1 million. Renters do not their unit and thus do not enjoy any property value fluctuations.

What is most important to think about of course is how you want to spend your money and where you see yourself in the next five years. These answers will help you to determine whether it is better to rent, or not to rent.