Tag Archives: loans

4 Money Lessons You Must Teach Your Kids

4 Money Lessons You Must Teach Your Kids

We all have money regrets. You’ve probably made a financial decision you regret to date. It could be anything really from a missed investment opportunity to bad spending habits. Such decisions may have had a major implication on your life to the extent you wish you had known better and wouldn’t imagine your kids repeating those mistakes. Given the importance of financial literacy in life and the fact that schools don’t teach kids about money, it’s your duty as a parent to pass this important knowledge. In case you are wondering which money lessons are the most important for your kid, you are in the right place.

Here are four money lessons you must teach your kids.

1. Saving is cool, It takes money to make money!

Your kids must understand this first for them to know the importance of saving. You can start by getting your kids piggy banks, if you haven’t already, to encourage them to become avid savers. You can also incentivize saving using monetary rewards when your kids reach certain milestones. You should encourage your kid to save pocket money as well as monetary gifts they get from relatives. Saving is a crucial money lesson that should be taught from an early age since you need to accumulate money to invest if you don’t want to take out loans. Furthermore, you need assets to secure loans so you must have some savings first to start your financial journey.

2. You need to wait sometimes to buy what you want

This is a difficult money lesson for most kids, yet it is one of the most important for financial success. A person’s ability to delay gratification plays a crucial role in their future success. Kids who are able to resist from buying things or asking for things they want immediately have an easier time succeeding financially given most important money lessons like saving are a form of delayed gratification. Most parents have a problem teaching this lesson because they want the best for their kids. Parents love giving their children things they desire like toys and gadgets. However, you should make your kid wait sometimes before they get what they want. This lesson will encourage your kid to manage their money better when they grow older. It will also help them appreciate the fact that money is scarce and you need to make smart choices like waiting before you spend.

3. Income counts

Your kids also need to appreciate the importance of having an income. To teach this lesson effectively, encourage your kids to earn income doing jobs like; selling lemonade, pet walking and raking leaves. Making your kids work for money is important because it teaches a valuable lesson money’s scarcity. When you teach this lesson effectively, it will be easier to teach other lessons like savings and spending money wisely since your kids will already appreciate the effort it takes to get money. Unless you are already wealthy and planning to leave your kids a fortune, it’s crucial for them to understand it takes a job to earn money.

4. Sharing is good

Kids should also learn to share from a young age. They should learn that money isn’t just for fulfilling one’s needs but also helping people who are in need. This money lesson is important for teaching responsibility and compassion for others. It’s also important for eliminating bad habits like materialism and selfishness. It’s unfortunate that kids don’t learn much about money in school yet it is a very crucial subject. Teaching your kids the above money lessons is a great way to prepare them for future success. The above lessons equip kids with important traits like self-control which are crucial for financial success in the future. Kids who learn how to save, earn and delay gratification at an early age are less likely to get into financial problems in the future according to numerous research studies. One such study done by researchers led by psychologist Terrie Moffitt from Duke University links self-control with debt problems. According to the study (which tracked 1000 kids in New Zealand from birth to 32 years), kids who had high self-control are more likely to succeed in life. In a nutshell, instilling financial self-control using the above lessons will help your kid avoid financial problems like debt in the future.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Financial Planning Tips For You and Your Family

Financial Planning Tips For You and Your Family

Most couples face serious challenges when it comes to dealing with finances. In fact, many research studies have shown that finances are among the top reasons why couples argue. It gets more challenging when children get into the picture. Couples argue over how to spend money, how to save, invest, share bills, etc. This is usually the case since most marital decisions revolve around money. For instance, you need to consider your finances as a family when deciding where to live, the type of car/s to buy, where to take your children to school, whether you should take a loan, etc.

Furthermore, most people are uncomfortable discussing finances even with their spouses, yet it’s one of the most crucial subjects for couples keen on staying together in peace. This is why family finance is so important. To be able to avoid most family problems, here are the most important family finance tips to consider.

1. Develop mutual finance goals:

This is by far one of the most important family finance tips to consider. As a couple, you must develop finance goals that are acceptable to both of you and your family as a whole otherwise you will end up having endless arguments about money. You must agree from the onset who does what as well as what you intend to do with your money to avoid avenues for arguments. In a nutshell, family finance goals should be developed and accomplished jointly. The finance roles of each spouse should be clear from the onset.

2. Maintain 100% honesty:

This goes without saying. You should be 100% honest with your spouse on every issue including finances from the onset. Most spouses argue about money because they feel shortchanged. This is why it’s advisable to be open about how much money you earn so that your spouse doesn’t have unreasonable expectations about what you can afford to contribute. You should also be open about the loans you have, your credit history, credit cards, etc. from the onset since such things have an effect on your access to credit as a couple/family.

3. Have a budget and follow it:

To avoid overspending and running out of money, you must prepare a family budget and follow it. Running out of money prematurely always causes a lot of tension in families. Preparing a family budget will help to keep your spending in check. You will be able to avoid living beyond your means. You will also be able to know exactly where your money goes which will in turn help in cutting down on expenses if you need to. It doesn’t matter how much money you and your spouse earn. If you don’t have a budget, you won’t be able to move forward financially.

4. Consult each other when making “major” purchases:

Since everyone has different ideas on how they should spend their own money and you seize having your own money when you start a family, it’s important to consult especially on major purchases like cars, homes, expensive jewellery, etc. Consulting your spouse is important because it makes them feel valued as an equal partner in the marriage. Furthermore, there may be a better way to spend the money in question, and you wouldn’t know this if you don’t consult. Furthermore, you would want to be consulted by your spouse when he/she is making a major purchase so, do the same.

5. Set financial goals:

Budgeting isn’t enough since it focuses on how you should spend whatever you make. You need to think of growing your income as a couple so that you can afford the things you want in the future. Financial goals are critical for growth. They help couples avoid the stress associated with being stuck in the same social class for years. If you set solid investment goals now, you should be able to afford a house or new car in the future which eliminates financial stress in the future.

6. Review your financial progress periodically:

Having a budget and following it isn’t enough. You need to review your financial progress often to ensure you are on track. Furthermore, money discussions shouldn’t be confined to budgeting. You should also review the progress of your long-term financial goals. For instance, you should discuss progress on your savings and investment accounts. Reviewing your finances periodically helps to identify and solve potential problems. It also helps families focus on achieving their goals.

Summary

Most family problems revolve around finances. Most couples argue because of lack of enough money, misappropriation of money, dishonesty when dealing with money, name it! The above information highlights the basics of family finance every family should follow to avoid common family finance problems.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Seven Signs of Financial Instability

Seven Signs of Financial Instability

Are you keen on knowing if you are financially stable? People worry about their finances all the time for obvious reasons. You can’t be able to live a comfortable life if you don’t have money. It also takes money to elevate your lifestyle. It’s important to understand the difference between lacking access to money and being broke. You should also appreciate the fact that money is scarce. However, how do you tell when things are seriously going wrong?

1. Your expenses are more than your income:

If you spend more than you earn, you are already in serious trouble. Your income should be more than your expenses otherwise you are living beyond your means. You need to cut down on your expenses immediately to avoid serious financial trouble in the future. You should consider downgrading your lifestyle immediately. For instance, move to a cheaper house, take a bus/train to work, shop for discounts, etc. Your expenses should never exceed your income.

2. You borrow to fund recurrent expenses:

If you take out payday loans among any other types of loans to fund recurrent expenses such as; food, rent and transport expenses every month, you are already financially unstable. Loans such as payday loans are meant for funding emergency expenses. Using them to fund your lifestyle is a scary sign of financial instability.

3. You don’t have savings/an emergency fund:

You can never be financial stable if you don’t have savings. An emergency fund is highly recommended for taking care of unexpected expenses. You can lose your job or get into an accident that affects your ability to work. Without an emergency fund, you can’t be able to survive without taking up loans from friends/family members. If you don’t save/have an emergency fund, start setting up one today.

4. Your debts are greater than your assets:

You can take loans as long as you are in a position to repay them. Loans become a problem when you can’t afford them when the worst happens. If you lose your job for instance, can you be able to pay for all your loans with your assets and still have some money for subsistence? If not, you are not financially stable. This highlights the importance of investing the money you get from loans wisely. If you use loans to buy assets, instead of liabilities, your assets will always be greater than your debt.

5. Your credit score is dropping:

Your credit score tracks all your credit activity. If your credit score is increasing, it simply means you are using your debt wisely. If your credit score is dropping, this is a sure sign that you are engaging in dangerous credit activity such as; misusing your credit cards, defaulting on debt, etc. The ratio of the amount of money you owe over your available credit (i.e. credit utilisation ratio) should not exceed 30% otherwise you will start hurting your credit score even if you make all payments on time. Overusing credit is a scary sign of financial instability even if the credit is available to you.

6. You lose sleep over your finances:

Financial problems are bound to cause stress. However, you should be overly concerned if you lose sleep thinking about your finances. It is advisable to seek financial help if you find yourself worrying too much about money. A financial expert can help you identify your financial problems as well as craft ways of dealing with them effectively. If you are already losing sleep over your finances, seek help immediately to avoid worsening your finances as well as physical health.

7. You have considered debt management/bankruptcy:

Debt management and bankruptcy are measures taken as a last resort when debt spirals out of control. If you have thought about debt management or filing for bankruptcy, you are already financially unstable. People usually contemplate these measures before taking them, so it’s a sure sign of financial instability. You can avoid these measures by seeking financial help immediately.

Summary

People don’t find themselves in financial problems overnight. There are common signs to look out for if you want to know the status of your finances. Discovering the scariest signs of financial instability is important because you have the opportunity to take the necessary measures and change your fortune.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Here Are The Top Debt Myths Debunked

Here Are The Top Debt Myths Debunked

There are many debt myths today that stop people from getting the best out of loans. It’s important to discover what is true about debt to avoid being part of the problem. The 1st step to getting the best out of debt is debunking the most common myths. Below are the top 5 debt myths debunked.

1. Debt is bad

There is this general notion globally that debt is bad so, it must be avoided. This is far from the truth. Many people have been led to think debt is bad because of the consequences faced by people who are unable to service debt. Debt isn’t bad if you can meet your repayment obligations. If you can take and repay a payday loan in time, there is nothing wrong with that. In fact, debt is a good thing in such an instance because you get access to money for taking care of emergency expenses. Debt is also useful when you have a solid plan. You shouldn’t take a loan just because it is available to you. Have a good reason first as well as a solid plan for repaying the loan. You should also understand the type of debt you are taking. Many people don’t pay attention to the terms and conditions of loans, so they end up branding loans negatively. Debt is good as long as you have good reasons for taking up debt and a solid repayment plan.

2. Debt is for the poor

People also associate debt with the poor although many rich people have made a fortune because of taking up debt. Loans are for everyone regardless of your social class. The only difference is the type of loans the rich take. Most rich people take up long term loans for investment purposes. The poor tend to take short term loans for subsistence purposes. You can take a payday loan or any other type of short-term loan to cater for unexpected expenses. So, applying for a loan doesn’t mean you are poor. In fact, your chances of succeeding using your own savings are very slim. Everyone, including the rich, take up loans. The difference is in the type of loans they take as well as what they do with the money.

3. Your credit history/score is better off when you avoid debt

Many people also believe that they can keep their credit score and overall history intact by avoiding debt. This is far from the truth. In fact, you hurt your credit history by avoiding debt since there is nothing to report about. As the name suggests, credit reports record your credit history. If you don’t take up loans, such as credit card debt, payday loans etc., your credit report won’t have any entries. A person’s credit score improves when they show they are capable of meeting their debt obligations. This simply means you have to take up debt. Otherwise, your credit score won’t change for the better.

4. Debt terms and conditions are set in stone

Most people are also of the notion that debt terms and conditions can’t change. This is far from the truth. Lending institutions are usually flexible. However, you have to put in work to get better terms. For instance, you need to be a regular customer to be able to negotiate for better terms. You also require a good credit score and solid assets. Being knowledgeable also helps. Your chances of getting the best possible debt terms and conditions are slim if you have basic borrower information. You need to invest in financial education to be able to negotiate on the next level. Most people believe loan terms and conditions don’t change because they don’t push their lenders hard enough. Lenders also tend to be less flexible on short term loans. Considering most people take short term loans, it’s easy to understand why people believe this myth.

5. Debt settlement is unethical

Lenders love portraying debt settlement as an unethical practice that portrays lack of character. This isn’t the case. Of course, there are people who take up loans and use them irresponsibly. However, most of the people who turn to debt resettlement do so because of circumstances beyond their control such as unemployment, emergency bills, family problems, etc. For this reason, there is no problem with seeking this alternative when you don’t have any other option.

Summary

There’s a lot of misinformation surrounding debt today. To get the best out of loans, you need to understand the myths surrounding debt. Although there are countless myths about debt, the above myths offer valuable basic information.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

What Does Low Inflation Actually Mean For A Countries Economy?

What Does Low Inflation Actually Mean For A Countries Economy?

Before assessing the effect of low inflation on a country’s economy, it’s important to define the term inflation.

What is inflation?

Inflation is a term commonly used to refer to the general increase in prices of goods and services. Inflation is measured as an annual % increase. As inflation increases, the purchasing power of every pound decreases. For example, if the inflation rate is 3%, then a £1 loaf of bread will cost £1.03 in one year.
Ideally, the price of goods and services is bound to increase over time. The rise should, however, be gradual otherwise, the economy will suffer. Let’s shift our focus to the effects of inflation on the economy for us to understand the effects of low inflation.

Inflation effects

When prices of goods/services increase, the cost of living also increases. It also becomes more expensive to conduct business in a country with high inflation. The cost of borrowing increases. There is also a corresponding increase in corporate as well as government bond yields. As a result, inflation can have negative as well as positive effects.

If inflation is controlled i.e. kept at low or at reasonable levels, the economy of the country in question prospers. The opposite happens when inflation is too high. Low inflation boosts employment. When people are employed, they have more money to spend. When people are buying more goods and services, the economy grows.

The full impact of low inflation in regards to economic recovery can’t, however, be assessed with unmatched accuracy. To understand this in-depth, it’s important to assess the effects of low inflation on economic metrics such as; the GDP, cost of borrowing and the consumer price index.

Effects of low inflation on GDP

The GDP (Gross domestic product) of a country is simply the value of all goods/services produced by that country. GDP is expressed as a percentage and adjusted for inflation. For instance, if the growth was 8%, but the inflation was 3%, the GDP would be 5%. Low inflation is, therefore, good for the GDP or overall growth of the economy.

Effects of low inflation on cost of borrowing

Theoretically, low inflation can help a country’s economy to recover from depression or recession. The interest rates must, however, be low for this to happen. Low inflation and low interest rates decrease the cost of borrowing encouraging people to take loans and invest or spend. Low-interest rates may, however, make banks reluctant to issue loans since the returns on loans are equally low. A low inflation and low-interest rate environment may, therefore, have a negative effect on consumption.

Low interest rates over a prolonged period of time coupled with low inflation assure the business community of fixed costs. Business owners are able to plan better i.e. when to borrow, market, hiring as well as expand in low interest/low inflation environments. Investors are also in a better place to calculate returns on investments on corporate and government bonds. It’s, however, worth noting that that the effects of low inflation may vary in regards to borrowing.

Effects of low inflation on the consumer price index

Inflation is usually measured by considering the price of essential goods and services as opposed to all goods and services. Inflation focuses on consumables (in the consumer price index) like food prices as well as the price of clothing, housing, energy, education, medical care, communication, and recreation. If the price of all goods/services in the consumer price index increases by say 4%, the rate of inflation is pegged at 4% and the purchasing power decreases by 4%. Low inflation is good since it ensures the cost of essential goods and services remains stable.

Summary

Low inflation is beneficial to the economy on almost every level from the GDP to the cost of borrowing and price of essential goods and services. Low inflation is particularly beneficial to a struggling economy since it helps to keep a check on the price of essentials and also encourages people to borrow and spend. Low inflation must, however, be supplemented by low-interest rates for it to encourage borrowing and spending.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Borrowing for a holiday: Is It A Good Idea?

Borrowing for a holiday: Is It A Good Idea?

Let’s face it! It doesn’t sound too smart taking out a loan to finance a holiday right? Well, yes but there’s a twist to it. You’ve probably heard that it’s a bad idea to borrow to finance a liability. Well, a holiday can be an asset or a liability depending on who you ask. So, should you really borrow to pay for a holiday? If you want to take out a personal loan or any other kind of short term or long term loan to finance your holiday, here’s what you need to know first.

1. There are situations that warrant borrowing for a holiday

First and foremost, it’s important to note that it’s not always a bad idea to take out a loan to finance a holiday. Having quality time during the holidays with your family is very important so there’s no problem borrowing some money especially if you can afford it. Furthermore, you don’t need to be broke to take out a loan. You may be taking out a loan because you don’t have access to your money at the moment. For instance, you may have some investments that you don’t want to liquidate because the returns aren’t favorable at the moment. In such a case, a loan is justified. The consequences of failing to spend quality time with your family is worse than having to borrow a small loan to fund your holiday expenses. If you can pay for the loan comfortably, go ahead.

2. You need to plan in advance (know how much you need to borrow)

When taking a loan to fund your holiday expenses, you need to plan in advance otherwise, you will end up having problems later. You should never take out a holiday loan before you determine the amount of money you need. Borrowing using estimates is a recipe for disaster. Planning in advance ensures you borrow exactly what you need which is a great way of controlling your expenditure. It doesn’t really matter if you are taking out a payday loan or personal loan to finance your holiday, you must know how much you need in advance.

3. Look for holiday loan offers

Retail stores aren’t the only businesses offering great deals during the holiday season so, if you have to borrow, make sure you are getting the best deal possible. Banks among other financial institutions offer great loan deals for the holidays. It’s therefore up to you to source for the perfect holiday loan deals. There are plenty of great holiday loan deals available currently in the UK. You just need to shop and choose the best deal for you.

4. Plan to spend wisely

Most people have problems on holidays because of overspending. It’s very easy to overspend during a holiday if you don’t have a budget/plan in place. This is precisely why many people end up taking more than one loan to fund holiday expenditures. To avoid taking in an extra loan and incurring unnecessary expenses, spend wisely. Avoid impulse buying at all costs. You should also capitalise off the numerous discounts offered during the holiday season. Always remember that there is life after the holidays. Have a budget and don’t get carried away!

5. Borrow to fund basic holiday celebrations

Sometimes you may feel the urge to borrow to fund an overseas trip. In such a case, it’s better to consider less expensive holiday celebrations unless you lack money temporarily. It’s never a good idea to borrow to fund a lavish holiday especially if you will have trouble repaying the loan.

Summary

The holiday season has many surprises. You may not get your finances in order in time because of many reasons i.e. late/delayed payments etc. In such instances, you may be forced to borrow to fund your holiday expenses. As long as you plan in advance, look for the best holiday loan offers and spend wisely, you shouldn’t have any problems repaying your loan after the holidays. Furthermore, there is much more to holidays than spending money. If you can stick to a loan amount that is manageable, then there is no problem with taking out a loan for a holiday.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

The Process Of Taking Online Payday Loans Explained

The Process Of Taking Online Payday Loans Explained

As the name suggests, online payday loans are payday loans which are applied for and taken online. Some lenders even offer online loan management. If you’ve ever wondered how all this works, look no further. Most online loan applications are the same. Everything takes place online from the application process to loan management. This makes online payday loans the most convenient types of short term loans today.

Application

All online payday loan lenders have online application pages where borrowers complete application forms. The best lenders have online application forms that are straight forward/easy to understand. Such lenders require basic information that is easy to obtain so you shouldn’t expect a complicated application process if you choose to apply with a reputable online payday loan broker like Swift Money.

A typical online loan application requires personal and financial information like;

• Your full names
• Date of birth
• Address
• City/Location
• Postcode
• Email
• Mobile phone number
• Loan amount
• UK bank account details
• If you have considered bankruptcy etc.

You may also need to consent to a disclosure document, state the purpose of the loan, state your marital status, source of income or employment details such as your employment status, monthly income, length of employment, name of employer, work phone number, next pay date, among other information like existing loans, other expenses etc.

Processing

Online payday loans processing takes place faster than typical loan processing. It may take a few minutes to a few hours depending on the lender you choose among other variables i.e. the number of pending applications. If you have filled in everything accurately and selected a lender that caters to the needs of borrowers like yourself, it shouldn’t take long before you receive an email confirming that your loan application has been approved.
Reputable lenders offer no obligation online loans with very high approval rates so you shouldn’t worry if you meet the basic criteria for application.

The confirmation email you receive should come with a loan agreement that is automatically generated once an application is approved. You should take your time and read the loan agreement to make sure it matches your expectations. If you’re happy with the loan agreement, you can proceed and finalise the application process by signing the application electronically. Reputable online loan lenders have user-friendly loan online loan application tools that enable you to do everything online so you shouldn’t worry about finalising your application.

Receiving payment

Once you have finalised your application, it takes a few minutes for you to get your money. If you filled your bank account details accurately, you shouldn’t expect any delays. Upon approval, Swift Money sends money to your bank account within 10 minutes. It can take less time. The best lenders offer options for faster payment to borrowers who don’t have the luxury of time. Charges may however apply. It’s important to note that payments may take some time to be available for withdrawal depending on your bank. It is advisable to choose a bank which processes payments fast since online loans are short term loans taken to cater for emergencies.

Paying back online payday loans

Some payday lenders offer automatic loan repayment options whereby the loan amount or repayment amount is automatically deducted during the next payday. It is up to you to choose the repayment option that is most convenient for you. If you prefer sending the payment yourself, well and good. The electronic repayment option is, however, the best if you don’t want to forget and miss a repayment and attract charges as well as damage your credit score.

Loan management

Some lenders may also have loan management tools that help you manage your loan online i.e. calculate your remaining balance, interest, modify repayment patterns, etc. Such tools are useful for online loans that require more than one repayment.

Summary

Taking online payday loans is easy if you are dealing with a reputable lender with a user-friendly and secure online platform. Reputable lenders also process applications and deposit funds to your account fast. The process of taking online payday loans is similar to that of taking conventional loans. The only difference is everything is done online thus it is more convenient and fast.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Loan Secrets of the Rich: What You Need to Know

Loan Secrets of the Rich: What You Need to Know

Getting into debt isn’t a bad thing if you purpose to use the debt wisely. It’s important to note that most of the wealthiest people today got to where they are by using other people’s money (or debt if you like). It’s not a secret. Many wealthy people have been on record attesting to this fact. Large companies also get ahead by taking on debt so what is it about debt that tends to work for the rich? Here’s what you need to know

Borrow to buy assets 

Rich people follow this debt rule religiously. You should never borrow to fund a liability. Liabilities are things which take money out of our pockets. A good example is a personal car. Your personal car will never put money into your pocket unless you hire it out or use it in your business. Personal cars need insurance, maintenance, fuel, etc. but they only seem to offer convenience, and in most cases, public transport is more convenient. So, taking out a personal loan to buy a personal car isn’t smart. Rich people don’t do it. You shouldn’t do it either. You should instead take out loans to buy assets i.e. things that will put money in your pocket like a rental apartment. 

Borrow to start a business

Many rich people also seem to have gotten their big breaks when they took out loans to start businesses. Taking a loan to start a business is by far the smartest way of using a loan. It’s hard to regret if you take a business loan provided you have a solid business plan. Furthermore, it is very hard to become rich when you are working for someone else. This is precisely why you should think of taking a loan to start a business before you think of anything else. 

Borrow when the projected returns are greater than the cost of the loan

Sometimes you may be borrowing to take advantage of a money making opportunity that may not necessarily be a business. For instance, you be looking to buy a cheap house, stock, etc. that you can later sell a high price. Before you take a personal loan to take advantage of such opportunities, make sure the cost of the loan is lower than the projected returns. The rich never take on expensive debt. Everything has to make business sense. If they won’t make some money out of debt, you can rest assured they won’t take it.

Borrow if you can afford to lose the collateral/security

This is another loan secret rich people adhere to. Have you ever asked yourself why rich people never suffer even when they claim to be unable to repay their debts? Well, it’s because they never secure debt with assets they can’t afford to lose. If you can’t afford to lose your house, don’t secure your loan using your house. Taking debt is usually a risk regardless of how solid your plans are so you should always ensure you are protected in case the worst happens. Everyone faces credit risks. However, the rich are usually better prepared for the worst which is why they are able to bounce back faster than everyone else.

The more money you have, the easier it is for you borrow

You should also know that the rich have easier access to loans than everyone else so boost your net worth and have unlimited access to loans. It’s easier to borrow when you are rich because you have more assets which translates to lower risks for lenders. This is the main reasons the rich keep getting richer and the poor have a hard time getting rich. This point alone should motivate you enough to seek loans and spend those loans wisely i.e. buying assets or starting businesses.

Summary

Debt can make you rich. Many rich people who start out poor become rich because of taking up debt and using it wisely. First and foremost, understand that it takes money to make money. You also need to know when to borrow and how to borrow. If you’re smart about loans and money in general, you won’t have any problem taking and repaying your loans. You’ll also get rich in the process.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.