Potential Risks of Unsecured Personal Loans (Forbrukslån)

It is vital to understand that in some situations when you have an emergency expense, and you do not know where to turn, the best course of action is to consider borrowing money. That way, you can handle payments you cannot abide by yourself.

We are talking about financing large appliances, consolidating high-interest debts, medical expenses, and other expensive endeavors.

After checking here, you will understand everything about government grants that will help you throughout the process.

You should borrow money by checking out various online and in-person lenders in these situations. Generally, the market features a wide array of options meaning you should conduct comprehensive research before making up your mind.

Besides, you can choose a wide array of loan products such as home equity, credit cards, and personal loan. The first two are problematic because you are putting too much at risk. For instance, credit cards come with a significant interest rate that will affect your future payments and credit score.

On the other hand, home equity loans will put your home in danger. Therefore, you must use your household as collateral, which is the worst thing you can do. Finally, you can choose unsecured personal loans that will provide you peace of mind.

The best thing about it is the ability to use it for anything you want, meaning it does not come with limitations like other options you can choose. For instance, you can fund an adoption, pay credit card minuses, and other expenses you cannot handle right now.

Still, it comes with certain risks. We recommend you consider these risks before you sign anything, which will help you prevent significant issues in the future. You should learn about the potential ramifications of an unsecured personal loan, which will help you determine whether you should take it or not.

1.The Interest Rate

Although you have an excellent credit score and trustworthiness, it does not mean you should take an unsecured personal loan. Some of them feature low rates that go below ten percent. At the same time, they can be significantly higher, which you should avoid altogether.

Remember that interest rates depend on your credit score. Still, they may charge you additional fees based on laws and regulations. Therefore, you should check out everything about lenders within your vicinity, which will provide you peace of mind.

As you compare APR or annual percentage rates, you should be as careful as possible. Remember, they can manipulate the APR. Instead, check out the overall amount you must pay, including principal, interest, fees, and other expenses throughout the loan’s lifetime. It is a better measure than other options because you can easily calculate overall costs.

2.Penalties for Paying Off Earlier than Expected

Before you sign anything, it is vital to ask a lender whether you can repay everything early or get penalties for doing so. Everything depends on a lending institution, including P2P lending, bank, or credit union.

Some lenders will favor paying off your loan faster than stated, while others will add penalties to an equation. In both cases, you should be ready for each step along the way, which is why you should read the contract with a financial expert before signing anything.

3.Significant Upfront Fees

You should know that loading money into your bank account is not free. Before getting everything, you want, it is vital to pay upfront fees depending on the overall amount. For instance, mortgages come with variable origination fees ranging between one and ten percent.

You can choose numerous providers available on the market, meaning you do not have to select the first one that approves you. Therefore, you should ensure you are paying fair upfront fees based on the market levels. That is why you should compare different lenders and their terms before making up your mind.

4.Privacy Regulations

It depends on the lending institution you choose. Both credit unions and banks come with privacy rules, while you can select additional options that come with less formality. Although they should respect your privacy, some may not do it, which can concern you.


Some lenders will try to sell you insurance coverage combined with personal loans. They will urge you to protect yourself if something wrong happens and you cannot repay.

Suppose you wish to get insurance to deal with this problem. We recommend you find an agent and compare various disability insurances. It is the best coverage and is more affordable than other options you can choose.

6.Precomputed Interest

It would be best if you remembered that precomputed interest would take advantage of the payment schedule to calculate the interest without determining whether you paid a loan or not. It will state that you owe something, meaning the interest will compute to a particular amount.

You should ask a …

Read more

How to Make Money Shopping For Seniors

Many individuals just don’t find it cost effective to go outside of the home to work especially when the purpose is to make money to supplement the primary income. For a start the cost of transportation is getting out of control. Then there are baby sitting costs, even a work wardrobe and a lunch budget to consider. So let’s figure out how to make money by working from home.
Chances are if you are a stay at home parent you don’t want to be taking on extra kids to mind as a means to make money. What you may want to consider is services for seniors. Now the problem is that many seniors are on a fixed income and they can’t afford extra services. It is hard enough for them just to be able to afford food.
This is where you make money. No, you don’t have to feel guilty because you are not going to be ripping the seniors off; in fact, you are going to be doing them a great service. As the budget for most seniors is very tight their shopping budget has to be scrutinized carefully to get them through until their next pension payment arrives. As a result, many times they don’t get proper food especially fresh fruit and vegetables.
For them to buy these cheaper in bulk the quantity is just too much and they end up wasting it instead of saving themselves money. So here is where you come in by making up “senior fruit and vegetable packs”.
For example, you buy a bunch of bananas, a bag of apples, a bag of oranges, a pineapple, some apricots, some grapes and some blueberries, that’s seven types of fruit. Let’s say you paid $3 for each of these so you looking at a total cost of $21.
Now if you were to divide these into 6 portions and charged each senior $5 for their package, you would be making $9 and the senior would be getting a whole week’s worth of assorted fruit for $5. That would equal $20 per month on average for each senior and make you $45 every 4 weeks.
Do the same with vegetables. The senior would be paying about $20 per month for vegetables. Finally, you could do the same with the meat for approx the same price. You have now allowed the senior to feed themselves a good wholesome meal every night of the week for the entire month at a cost of about $60.
This means they only need to buy light foods for breakfast and lunch. Everyone has been able to make money here. You with your sales and the senior with what they have been able to save.…

Read more

Don’t Risk Taking a Nosedive – Factors to Consider When Plunging Into the Home Based Business Market

So, you’re ready to join the ranks of the self-employed and start your own business. You’re tired of corporate instability and employment uncertainty, and you’re ready to control your own financial destiny. Terrific. But wait just a minute, have you really considered some of the critical factors before taking the plunge into the home based business market?
Many eager entrepreneurs, especially those unfortunate souls who have recently (or even not so recently) joined the unemployed, drive into the home based business industry without truly considering whether the decision to start up a new business is a wise decision.
As a result, much time, money and eventually heartache is spent trying to launch and build a business that, with a little preparation and research could have been avoided. So, let’s get started with some basic factors to consider when determining whether should start your own home based business.
First, determine whether the home based business you are considering is legitimate. Home based business scams abound and unfortunately in today’s climate, many individuals fall prey to unscrupulous operators looking to make a quick dollar on the unsuspecting potential business owner.
When evaluating work from home opportunities, try a quick Google search by entering the business type and the word “scam” in the search bar. Generally, reviews for that business or product will appear, which will provide you with a good indication of whether your business opportunity is legitimate. Additionally, perusing online forums are a great way to see what others are saying about various home based business offerings.
Second, make sure that you can truly afford any start-up costs associated with launching your new business. It’s important to understand the start up costs associated with launching and maintaining the business for the first year, and to ensure that you have the funding necessary to weather any slow cycles or seasons. Trying to scrimp and squeeze out the funding to launch, especially if you’re taking from other critical expenses such as your household budget, can place a strain on you both financially and emotionally.
And finally, ask yourself whether you have the basic experience, knowledge and passion necessary for that particular business. It’s oftentimes much more difficult to start a business in an area in which you have little or no experience, knowledge or expertise. And, while it can be done, the most successful home based businesses are those where the owner has some level of understanding about the business opportunity or product offering. Thus, it’s best to try and ensure that your skills match the prospective business.
Remember, regardless of the type of business you ultimately choose, any successful operation will require many hours of your time to manage and work the overall business. Initially, there will likely even be a period of hard work for very little results, as is the case with any new business venture. Therefore, the more passion you have for the business, the more willing you will be to put in the long hours required to build and maintain a successful home based business. For more information about home based businesses, visit…

Read more

The Layman’s Guide to Choosing Between Being a Sole Trader Or Setting Up a Company

For some people starting a business in Australia, deciding whether to set up as a sole trader or establish a company can be pretty daunting. How do you really know which option is best for you? It can be confusing. Between the labyrinth of government websites, lawyer’s legalese and accountants Excel spreadsheets… deciding the best structure can be incredibly tough.

Making the right decisions when starting a business can be hard. Hopefully this simple layman’s guide to deciding whether to sole trade or start a company will help.

Business founders who decide to start up business as a Pty Ltd company are often on the right track. The benefits of a Pty Ltd company structure make setting one up the wisest option. This is especially the case if you are:

starting up with business partners, be they Directors or shareholders

seeking fast growth

plan to supply to major corporations

intend to hire staff

seeking to maximise the benefits of a tax effective business structure

considering equity investment

want ‘street cred’ as an Australian company

already considering exiting the business at some stage

If one or more apply to you, you should seriously consider forming a Pty Ltd company. That’s not to say setting up as a ‘sole trader’ is not a suitable option. However, people who set up to ‘sole trader’ usually fall into one of the following categories:

starting up a hobby business to supplement income

starting a part-time businesses

planning to work as a one man/woman band for the foreseeable future

testing the waters in business for the first time

looking to run a business that fits an existing lifestyle

generally not seeking significant growth.

Every person’s circumstance is different so exceptions to the guidelines above do occur. The decision is not always simple or clear cut. Age, industry sector, start up capital, family status, asset base and a range of variables should be taken into consideration.

For this reason, input from a professional, such as a lawyer, accountant or a specialist start up firm is very much worth considering.

What else determines the decision to choose between sole trader and Pty Ltd?

In a word, liability. And it is so important a point it deserves a section of its own. As a sole trader your liability is unlimited. That means if you are sued your personal assets (house, car, money in bank, valuables etc.) are 100% exposed. A Pty Ltd company structure offers a better level of asset protection, as the business is its own legal entity (and therefore separate from you).

Regardless, for all new businesses we highly recommend business insurance. It’s like going out for a walk on a cold Winter’s night with a really warm jacket on. However, for sole traders with 100% liability risk, insurance cover is doubly important.

What about the cost?

Setting up a Pty Ltd company in Australia is a little more expensive that setting up as a sole trader. However, for the sheer value it delivers, we believe that in many cases it is worth the extra few dollars.…

Read more

Starting a Business When All You Have Left is a Credit Card

Ralph was tired of his work as an engineer. The work was steady, but the income, though adequate, was limited. Like most, he was living month to month. So he quit his job and invested $20,000 on a credit card to open his consulting firm. He earned over $500,000 in his fourth year.
Jim had a dream, a couple of friends and a credit card with $300 left on it. Rather than despair, he decided to go into business for himself. He took his mother’s old green coat, a ping pong ball, a couple of sticks and made a hybrid cross between a hand puppet and a marionette. He called it a Muppet and named the lizard Kermit. (He later changed it into a frog.) The rest, as the saying goes, is history.
Several people are facing the same issue Jim Henson did years ago. Faced with job loss and doubts, what will you do with your life? You can search for that elusive perfect job, and once again, but your future in someone else’s hands, or you can take control of your life and create your own future.
I don’t believe any small business consultant would ever recommend a client start a new business with only a credit card and no reserve of operating capital. I surely would not. However, history has shown that there is more to start up capital than money. Individuals with creative ideas, strong drive and a refusal to fail have proven that some can succeed on pure chutzpah.
For those leaving the corporate world, there is often some 401k money that can be rolled over into a new business. If set up correctly, you can fund your new business with retirement funds without paying taxes or penalties. Others may find funding difficult. I always recommend an individual’s first business be a franchise. The proven system, training and support often make the difference between success and failure for the new entrepreneur. But franchise fees alone can keep those with limited startup capital from opening a business. I often help those with limited funds find franchises that offer in house financing so new businesses can be launched on the proverbial shoe string. There are also national trademarked brands that can be joined without franchise fees or royalties and still receive the training and support usually reserved for franchises.
Whether you are considering a low cost franchise or a trademarked brand, entrepreneurism is not for the faint of heart. But with a solid system and strong support, even the shoe string business can thrive. Just add indomitable spirit.
“Life is meant to be fun, and joyous, and fulfilling. May each of yours be that – having each of you as a child of mine has certainly been one of the good things in my life. Know that I’ve always loved each of you with an eternal, bottomless love. A love that has nothing to do with each other, for I feel my love for each of you is total and all-encompassing. Please watch out for each other and love and forgive everybody. It’s a good life, enjoy it.” Jim Henson…

Read more

4 Benefits of a Kickstarter Campaign

So you own a business… or maybe you are just starting out. Whatever phase of business you are at, most of us have in common one thing- we must have financing. I am sure you have been exploring your options: financing it yourself, Angel Investing, bank lending options, charge cards, borrowing from a friend or loved ones member… you’ll find methods to get it done.
But have you investigated Kickstarter or crowdfunding in general? It may or may not be for you (depending on your organization, etc) but it is worth investigating. Kickstarter is a financing platform for people with project ideas. An individual puts together a page about their project- what it is, what they are aiming to fulfill, how much cash they will need to raise, etc. If the project is authorized, it goes live and others are able to see it.
Consumers view the project and if they decide to “invest” in it is creation they are able to make a donation. Funding is all or nothing- so if the amount needed is raised, the individual that created the project will get the funds. If support comes up short, money does not exchange hands. This creates security for both the project owner and the investors. You do not have to attempt to build a product without enough money; and purchasers do not put money into a venture that may 0r may not be completed.
So why would I propose this style of fundraising?
1.) The all or nothing concept – there is an ability to fundraise the money you must have and possibly more. If you do not, no damage done. You do not owe anyone anything
2.) The visibility – having possibly 100s of people knowledgeable of your project before it is even built and having “pre-orders”
3.) Control – compared borrowing money, you don’t pay back the funding you receive. The backers through Kickstarter traditionally are given “rewards” for a variety of monetary contributions. So the finances are yours to develop your project. However, understand that money earned through “crowdfunding” can be subjected to taxes
4.) Input – once you fund-raise and build this community around your project, you now have people with a authentic concern in seeing your project succeed- and possibly are already thinking about acquiring it. Go to them for suggestions, with your options, etc. Discover what they would like to see included!
Of course there are many other crowdfunding site out there besides Kickstarter. Take a look at the different outlets, compare them and get going! What do you have to lose?…

Read more

Is Working For Yourself Worth It?

Starting and running your own business is one of the most exciting and potentially rewarding activities anyone can undertake. The possible rewards are boundless as is the opportunity for fulfilling personal ambitions. However, there are certain questions you should ask yourself, before you decide to take the plunge and invest your time and money in trying to start a new business venture.
You will also need to make plans, because that old saying: ‘Those who fail to plan, plan to fail’ is true, especially in business. For without plans, a business is subject to the random outcomes of chance rather than sound judgment. you can even get to the stage where instead of running the business, the business runs you. In order to avoid that sad state of affairs, you need to make sound plans before you start; decide which skills your business will need and accurately assess whether you possess those skills.
The first question you should be asking yourself is, ‘What am I going to get out of it?’. After all, you are giving up most of your rights as an employee. Rights such as job tenure, regular wages, paid holidays, sick leave, insurance and the right to forget your job when you leave it at the end of the day. In exchange you get the right to invest lots of time, energy and money. So, you have every right to know or at least to ask yourself, what you will get in return.
The rate that the number of new business being opened every year rises most years, although perhaps it won’t this year due to the banks’ reluctance to lend us our money. However, usually the rate does rise, so there must be a positive perception among the population that owning one’s own business is an advantage. The most common advantages cited are:
Control: as the boss, the authority and indeed the responsibility to make decisions rests squarely on your shoulders. You will direct all the activities of your business for better or for worse.
Creative Freedom: you are at total liberty to express your talents and ideas without seeking permission, having them approved by superiors or going through channels.
Profits: the more successful your business becomes, the more money you will make, whereas, in general, an employee’s salary is dependent on corporate or even national agreements, policy and regulations. Yours will be directly related to the performance of your business.
Job Security: if your business is viable, no one can sack you, lay you off, make you redundant or force you to retire.
Satisfaction: most people derive a great deal of satisfaction from knowing that they have built a successful business from nothing.
The most common disadvantages of being the boss cited are:
Risk to Capital: if you business fails, you could lose everything you put in and more.
Long Hours: your hours will not be ‘9 to 5’, especially in the beginning, when they are more likely to be ‘8 till late’.
Income Variation: you may not receive the same amount of wages every week, depending on the takings.
Responsibility: the buck stops with you and you can’t blame anyone else, if things go wrong.
Pressure: the pressure is on you the whole time to keep your customers happy and pay your suppliers and employees on time.
Regulations: you are responsible for complying with government and union regulations and ignorance of those regulations is never taken as an excuse.…

Read more