How to Choose a Personal Loan

By • October 5, 2011 • Loan • Leave a comment

There are times in our lives when it becomes necessary to secure a personal loan to take care of expenses. Whether you find yourself faced with unexpected expenses or you are searching for a personal loan as a way to combine debts, there are factors that you must take into consideration. Choosing the best personal loan means doing diligent research on the companies that offer the loans along with interest rates, payoff periods and hidden fees; being aware of these factors when choosing a personal loan is the key to ensuring that you do not get any unexpected surprises.

What to Look for in a Personal Loan

  • Interest Rates – interest rates on personal loans tend to be higher than most other types of loans. However, this is also dependent on your credit worthiness so be sure to check your credit report before applying for any personal loan. If an interest rate is high it means that your credit worthiness is not up to par with the requirements of the agency issuing your personal loan.
  • Loan Schedule – In terms of loan payoffs, the sooner you pay off your loan the less interest you will pay – a personal loan is no different. Of course, it matters how much you have borrowed and how much you can afford to pay each month. If you find that you are only able to make the minimum payment each month, you may want to look into another option rather than securing a personal loan. Loans with longer payment terms will also cost you more money in interest while shorter loans may have a higher payment but you will be paying more of the principal and less in interest.
  • Hidden Fees – Make sure you read the contract for your personal loan thoroughly. You want to make sure there are no hidden fees like you may find with a credit card. Origination fees and late payment fees should be stated clearly on the loan contract as well as any prepayment penalties. Some companies charge a prepayment penalty in order to gain the interest that they would otherwise lose out on. Ask your loan officer for any clarification and for best results consult an independent attorney to review your personal loan contract for you.

When it comes to securing a personal loan, knowledge is power. Ensure that you have educated yourself on the loan process before applying for one by using the above tips.

Important Information About The Chinese Stock Market Indices

By • August 26, 2011 • Investing • Leave a comment

There are two main Chinese stock market indices: the Shanghai Composite Index, which trades on the Shanghai Stock Exchange (SSE) and the Hang Seng Index, which trades on the Hong Kong Stock Exchange.

Stock indices are designed to measure the overall performance of a stock market as measured by market capitalization (the price of an individual share times the number of public shares outstanding). They include a select group of stocks, chosen by the exchange in this case, as a proxy for the general market.

Stock market indices can be used as investments. They can capture the growth available in a stock market without the added risk of picking individual stocks. It is very possible to buy a stock that goes down due to bad news affecting that company even when the overall stock market performance is positive. This has happened to many stockholders over the years.

They are also used by analysts and news organizations as a quick way of portraying the overall market performance.

The SSE started out in 1990 at a price of 100. It traded as high as 6100 in the second half of 2007 – before the financial crisis hit the United States and Western Europe – and then moved back down to its recently traded price of 2450.

There are also other, less popular SSE indexes including SSE 180 Index, SSE 50 Index, SSE Dividend Index, SSE New Composite Index, SSE Composite Index, Sector Indices, SSE Fund Index, SSE Government Bond Index, and SSE Corporate Bond Index. Among them, the earliest one compiled was SSE Composite Index. It is the one commonly quoted when discussing the performance of the Chinese stock market. The SSE Composite Index contains all listed A shares and B shares. A shares can only be owned by Chinese nationals and selected foreign institutions. B shares can be owned by foreigners.

The Hong Kong Stock Exchange began trading in 1891. Since then, it has grown to the second largest stock market in China and the sixth largest overall.

The Hang Seng Index trades on the Hong Kong exchange. It is a market capitalization weighted index which tracks the performance of the overall Hong Kong market.

The Hang Seng index started at 100 on July 31, 1964. In October of 2007, it reached its all time high of 31,638. It recently closed at 19,399. It has four sub-indices that were created in 1985. These include the Finance, Utilities, Properties and Commerce & Industry sectors.

Some experts predict that China can continue its growth rate of 7 -8 % for the next decade. The best way to participate in this growth is investing in one of the indices based upon the Chinese stock market such as the Shanghai or Heng Seng index. Over the long term, both of these are expected to grow with the Chinese economy.

Just about all portfolios can benefit from exposure to the Chinese stock market, even with just a minor allocation of the assets available for investment. China is the fastest growing large economy in the world and Chinese stock market indices track that fast growth.

Military PayDay Loans

By • August 25, 2011 • Loan • Leave a comment

If you are a member of the military who needs a payday loan, be sure to read this entire article.

A payday loan is a short-term loan, based on a borrower’s pay check stub or future deposit, such as a direct deposit from an employer. In your case , this is the federal government. Payday loans range from $100 to about $1,500 and last for only about two weeks. Typically, the amount is limited to about half of your paycheck. They can sometimes be extended for an additional fee.

The payday lender will charge a high interest rate when computed as the Annual Percentage Rate (APR). A payday loan is a way to get quick cash in an emergency. It should be used after you have tried other ways of borrowing or getting cash such as asking friends or relatives, or selling some possessions.

People in the military form a distinct demographic category for payday loan lenders. They are, by definition, employed and receiving a regular, guaranteed biweekly paycheck deposited directly into their bank account. Most members of the military, if they live on a military base or serve over seas – have most of their basic living expenses paid for them. This gives them good free cash flow.

These characteristics make them very attractive to payday lenders. The loans are much more likely to be paid back on time. The military justice code also provides for penalties for members of the armed services that do not meet their financial obligations.

It pays to shop around for rates on a payday loan. Most sources will have special military rates. Ask your buddies in your unit about who has the best deal. It’s a good bet that you are not the first one to run out of money before the next paycheck.

You will, of course, have to show proof of service, and provide checking or savings account information.

Due to the high rates and heavy fees imposed by payday lenders on customers, the federal government, in 2007, imposed strict limits on military payday loans. The new laws imposed a limit of 36% as calculated by the Annual Percentage Rate (A.P.R.) for all loans to the military. In addition, payday lenders cannot require a post dated check nor access to the borrower’s checking account.

Military pay day loans are also offered online. Some lenders only require only that you are at least 18 years old, are currently on active duty, and have a checking account. The same cautions apply to getting your military pay day loan online.