Panic Over Your Personal Finances

My finances had been taking a hit over the last year or so and I was constantly worried about how much money was in the bank, what my future was going to be like and whether I would have enough money if anything unexpected came up. It was a really really stressful period in my life.panicfinances

I was losing countless hours of sleep because I would start panicking about my future, my life and what happens to my credit when I don’t pay off my credit card on time. I don’t know if you’ve ever felt this way, but its not fun- I wouldn’t want anyone to feel the way I did.

Part of my problem was my spending habits, I did spend money on a lot of unnecessary things but the bigger issue was really the amount of money it cost to live, work and have a car. I tried moving back to my parents place, tried going without a car but that started to put other stressors on me that I found to be far worse than simply being better at managing my money.

Above and beyond my money management and financial situation my biggest concern was the severe panic attacks that I was having. They got so bad that I literally felt like I was going to have a heart attack. I would FREAK out for no reason, and the anxiety and panic attacks started to spiral into every little thing that had to do with my future, spending money, saving money or what I needed to feel ‘free’ again.

It was at that point that I knew I needed a change. My girlfriend was pretty much going through the exact same thing (although her panic attacks weren’t from her financial situation). She decided to try a product called ‘Panic Away’ that was designed as a self-help way to go about controlling your panic attacks and anxiety issues. It actually looked pretty cool but the looming question over my head before deciding whether or not I was going to try it was ‘does panic away really work’. You know how a friend tells you, but you’re unsure if it works for everyone (or just for them), if their symptoms were different then would the process be as effective for you, etc. etc. There’s a million questions that go through your head before heading down the route of self help (it was the exact same situation for my finances too). But after doing a decent amount of research and participating in a whack of forums I thought hey- what on earth do I have to lose? I think there was even a money back guarantee (I think).

savemoneyThe only other program I wanted to look at was the Linden Method. But it wasn’t for me, looked like a good program, really great reviews but I needed something that wasn’t so serious and involved. I knew I had control over my panic if I could just figure out how to control myself when my brain started to go crazy. Plus, I figured that when my finances got a little more in order, I would also stop panicking so much. The choice between panic away or linden method was one of simply urgency and severity.

Thank god, I decided that it was time to make a change. If you’re reading this post, and you feel the same way I did trust me when I say that you are NOT alone on this. There are many people out there that stress, freak out, have panic attacks about so many different topics.

Your finances is a huge part of your life. Take control. :)

Everything You Need To Know About Getting A Loan To Start-Up Your Business

Everyone’s doing it, so why can’t you? Getting a loan these days seem to be a financial norm. This is specifically useful in starting out a new business venture, especially if your are not that ready with the capital, yet. However, majority of the business downfall happened because of mismanagement of loans. With this, it is crucial to know your options well, to make sure that loan you are getting into is something you can manage both in the short-term and long term.

Loaning for business

What are the types of loan I can avail?

If you are looking into starting your own business, there are different types of loan you can get. The most common loan for start-up business is the long-term loan. This loan is paid monthly, and it gives a bigger amount with lower interest. It is perfect for stable business or businesses with a strong growth plan. If you are not yet comfortable to commit to a long-term financing, there is also a short-term loan. Unlike the long-term loan, this is to be paid at the end of the agreed term. It is usually used in short term plan like building up the inventory of a business.

Alternative financing is a type of loan that can be used to start your own small business. The downside with this is it has a much higher interest rate. Lastly, there is the Line of Credit. Here, instead of receiving a big amount of money, the borrower can receive a certain amount little by little. This can be used if there is a slight need of money in the business. The problem with this kind of loan is the high interest rate and fees. Business Loan Application

Other options are the open-ended and close-ended loans. Open-ended loans is the type of loan that can be borrowed over and over again. The common example of this is the credit card, wherein you only need to pay a certain amount in order to borrow money again. On the other hand, the close-ended loans can only be used once. Student loan, mortgage loan and car loan are major example if this type of loan. You need to apply for another loan once you have completed the payment for the previous one.

There is also the secured and unsecured loan. In secured loan, the borrower needs to have a collateral. But this kind of loan has a lower interest rate. While the unsecured loan doesn’t demand any collateral. Lenders would only rely on the credit history of the borrower, but this type of loan has a much higher interest rate than the secured loan.

New Years Resolutions: Financial Health

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debtprisonA current survey on New Year’s resolution revealed that the top items on the people’s list include financial and health resolutions. If you are one of the millions of people who are committed to be more financially responsible this year, are you also getting ready to get rid of all those debts? A similar survey from Credit.com suggests that more than 50% of those people who are determined to have some financial resolutions put more importance on paying off their credit card debts at the soonest possible time.

Credit cards are undoubtedly efficient and convenient partners when it comes to our major expenses. However, credit card related debts have been identified as one of the main reasons why a person could get a low credit rating. Credit card spending can get out of hand quickly, and yet most, if not all of the credit card companies offer more lenient payment terms. As a result, interests easily compound until it reaches an amount that a debtor can hardly afford. Paying for credit card debts could eventually mean spending for things you never had, due to the bloated interest on your original debt. With this, it only makes perfect sense why majority of the Americans want to put their credit card debts on their priority list for this year.

Like any financial decision, paying debts in bulk will not come easy. Some people may even need financial counseling in order to take that leap. But, if you are truly determined to scrap a huge bulk of your credit card debts this year, here are some practical things that you can do.

1. Re-align your budget

Coming fresh from the holidays with some bucks to spare, it’s relatively easy to think of paying all the debts. This is always easier said than done. While it is completely right to stay off-debt for the new year, it is also crucial to make sure that you have sufficient budget to get you through the year. Paying off credit card debts faster than usual will certainly compromise your usual budget, thus the need for re-alignment. Determine which expenses you are willing to compromise, or if possible eliminate. Remember to include in your budgeting the other outstanding debts that are not necessarily urgent.

2. Negotiate with your credit card companyexhausted

You do not have to bear the burdens of debts on you own. By negotiating with the credit card company, you may still be able to reduce payments for other fees, especially the extremely bloated interest rates. Most of these companies have generous offers for clients who commit to paying more than their monthly payment fees.

3. Have a fixed timeline

Be clear with how long you really want to accomplish your goals of being free from credit card debts. Realistically, you can give yourself three to six months to accomplish this. With a good negotiation, you can pay everything in a span of six months without worrying about the interest rates.

As they always say, a credit card is both the friend and enemy of your finances. With responsible handling, it can definitely be a friend. But, when things start to go out of hand, it’s important to start committing to a reform right away.