Monthly Archives: February 2018

Is It A Good Idea To Take Out A Short Term Loan To Buy Crypto Currency

The value of the cryptocurrency, especially Bitcoin has increased dramatically recently. The value of bitcoin is surging at a rate of 40% which is over $2,000 in a day recently. With the value of cryptocurrency rising, people start to talk about it on TV, radio, and news site.

We Do Not Recommend People Borrow Money To Purchase Bitcoin or Other Cryptocurrencies

As people start to talk about it, many others will also follow up to invest because they don’t want to miss out the opportunity to make big money. Some people have reportedly taken out short term loans with a high hope to make a big gain while investing in the cryptocurrency.

It is risky to take out a loan to invest in cryptocurrency as its value is volatile. The volatility is so much higher than other investment classes. At the moment, cryptocurrency has an average volatility of 85% per year. If the value suddenly drop, you will have lost your capital investment and left with a debt to pay. Besides, being an unregulated currency, it can be easily taken advantage by hackers and scam companies.

Despite that, if you know how to invest in cryptocurrency to your advantage, you will be able to make some fast money. Before taking out a loan, you must ask yourself how it is going to put problems in your finance if you lose the investment. You can invest more from your savings as you make money over time. If you really want to take out a loan to buy cryptocurrency, you should only take out a loan for as much as you can afford based on your income. It should not interfere with your income when you take out the loan.

Borrowing means that you will sacrifice part of the profit that you earn because you have to pay back the lender. For this reason, you should try to borrow only a small amount for the first time. When you make profit, you can reinvest it by purchasing more coins and make more money.

If you want to take out a loan to buy cryptocurrency, make sure you first do research on the market and find out the best coin to invest in. When doing research, you should check the ROI so that you know how much roughly you can get back by investing in the currency. There are a few types of good cryptocurrencies that you can invest apart from Bitcoin such as Dash and Ethereum.

To increase the chance of making a profit, you should invest in more than one cryptocurrencies. In this way, if one cryptocurrency didn’t make money, you can still count on other cryptocurrencies. As a rule of thumb, you should hold your investment for at least one year. This will ensure that you earn a significant amount of returns than the original amount that you invest in.

Installment Loans for Debt Consolidation, When is This Considered a Bad Idea?

If you want to get a loan to consolidate your debt, you should get a personal signature loan. You get a debt consolidation signature loan because you can’t pay for the high interest of your current debt. So, the personal loan that apply to consolidate your existing debts must have a lower interest fee. Not only must you make sure the interest fee is lower but you also must make sure you can afford to make the monthly payment.

You should try to find a debt consolidation personal loan that has the least fees. Ideally, the loan should waive fees such as the penalty and late fees. Most online loans will charge 3% – 5% of origination fee but there are a few that would waive the origination fee. When you sign up for the loan online, they will let you know whether you get approved by email. In the email, if you get approved, they will present you with a few options including interest rate and loan term.

Usually, a longer loan term has cheaper monthly payment but it will cost more in interest fees in the long term. Shorter loan term has more expensive monthly payment but you save a lot in the interest fees. You should choose the one that best fits your needs depending on your capability to pay back. Nowadays, it is easy to qualify for a debt consolidation signature loan online. Online lenders has a more simple loan approval process than bank and they usually release the funds in less than 2 weeks.

Using a personal loan to consolidate your debt is better than borrowing against your home equity, for example, taking out a HELOC loan. In a HELOC loan or a home equity mortgage loan, with some lenders you can borrow up to 85% of your home equity if you have a good credit profile. It is a form of secured loan as you use your house as a security for the loan.

You can lose your home to the bank when you fail to keep up with the payment. Therefore, it ca e risky especially for those who are in a difficult financial circumstances and late behind many bills. You also face the risk of owing more money to the bank if the value of your house drops in the market.

Debt consolidation only helps you to get out of the debt problem on the surface. It is up to you to make the decision to control yourself in spending money if you want to get out of the debt cycle. It is recommended that you stop spending money on your credit card while paying back the debt consolidation loan. Doing so can prevent you from wrecking further more debts while you are trying to settle your existing debts.