Sachin Gupta
The word finance has a wide array of meaning. In fact every person must know them by heart owing that it plays a very integral part to our very own survival. There are different aspects of finance that each man goes through the stages of adulthood. Thus, it is important to understand these and handle them based on its classification.
Searching for Financing
A person seeks financial help on different types of needs to different types of financial institutions. For example, one may seek financial help because they lack the funds for something like capital for business, a major purchase or payment to a debt. The reasons are different but all these can be solved with what we commonly call as Loans or the act of borrowing money with the promise of repayment at a definite timeframe. The most common loan categories are personal loans (medical/emergency loans, educational loans), car and home loans. These loans are classified under Financial Assistance.
Professional Financial Assistance
Why do people fall into debt? Whether it’s a good debt or a bad debt, the fact remains that some people most often incur debt because they fall trapped in an unfavorable circumstances which is commonly by their own making. For example, one can fall trap due to excessive credit card spending which they can’t afford to pay. However, there is no reason to be dismayed over a debt situation since you can easily resolve this with the help of professionals. The banking and lending institutions are assisted by professional loan brokers who can assist them in catering to the thousands of borrowers who want a loan.
Basics of a Loan
It’s important to know the basics of a loan to determine what type of financial assistance you will need. Professional loan brokers or advisors will want to know more about your need such as what is the purpose of the loan, how much you can afford to pay and how long you are willing to repay them. Always remember that each loan has different loan terms, interest rates and loan policies. One popular loan is credit card consolidation loans. As previously mentioned, most debt are due to excessive spending via credit card/s. Consolidating credit card loans is a way for borrowers to pay off all these credit dues with just a single loan that is incurring interest.
Credit Card Debt Versus Bank Loans
Most professional financial advisors will advise for a person to prefer getting a loan than using your credit card for emergency especially in a country where medical institutions don’t accept credit cards as mode of payment. Loan is also preferable when you want additional cash on hand because credit card withdrawals incur much higher interests than loans and requires immediate repayment or not later than 30 days. Whereas loans can be paid off in 3 months up to 3 years.
Loan Negotiations
A loan is not a one-size fits all kind of deal. Each loan policy is different depending on the need and your loan advisors negotiation power. Most loan advisors ‘haggle’ with lending institutions to give you a better loan offer. When getting a loan, it is best handled with loan professionals since they can (1) help you make sure your loan forms are filled out well with the correct information (2) give you advice on your documents so you don’t get rejected outright (3) provide you with updates on the status of your loan and lastly (4) negotiate for a lower interest rate for your loan.
