How to Protect Your Investments

How to Protect Your Investments

The financial market in the United Kingdom has hit a hurricane after the recent geo-political alterations. Even if that is disregarded, there are several things that threaten the investments of people throughout the year.

Such threats include political uncertainty, fragility of the financial markets, cyber risks and many more. In order to help you protect your investments from such threats, we have summoned up a list of strategies.

Release the unsystematic risks

There are two main categories of risk, the systematic and the unsystematic. Unfortunately, there is not much you can do to erase the systematic risk but you can surely eliminate the latter with a few tricks. To start off, it is better to go for a portfolio that includes a large number of stocks. This will help in reducing the amount of unsystematic risks in your investment.

Return on Capital

A great way to protect your investment is to opt for ‘safe investments’. Whether it is income annuities or cash, both will help provide safety for your investment. However, the protection of your investment in this case will be short-term.

Diversification

A very simple and expert way to protect your investments is through the concept of diversification. This has long been used by investors to make sure they don’t lose their money if a certain investment fails to perform. Basically, you are not supposed to put all your eggs in one basket.

By owning a broader and diversified portfolio in a particular asset class, the investors consequently protect their investments and reduce the otherwise growing unsystematic risk.

Stop losses

Stop losses is one of the best ways to secure your investment. It provides protection against the rapid changes that might occur in the financial market. Although it helps in this regard, there is ample need to plan out the stop losses before you go through with your investment strategy. It must be noted that the key point here is to stop the small temporary losses from turning into big permanent ones.

Principal-Protected Notes

One of the several ways to have your principal amount protected is to go for Equity Participation or Principal Protection Notes. These notes are similar to bonds because they secure your principal, provided that you hold the notes to their maturity. Investors that are reluctant to taking risks are bound to find the Principal Protected Notes quite attractive. However, you must not jump into it right away. It is better if you first find out the financial position of the bank you are buying these from, to further secure your investment in them.

Limit the Exposure

It is sometimes wise to limit your exposure in the financial market and step back on the level of risk you are taking. If you have invested somewhere, that does not mean you are bound to stick to it, provided it binds you legally. Whenever there is a lot of instability in the market, you should consider repositioning some part of your investments towards a lesser risky area, and lessen your exposure to the volatility of the market.

There are a lot of ways you can protect you investments in the market. The key here is to educate yourself with the possibilities of what can be done with those investments.

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The Best Bad Credit Mortgages

The Best Bad Credit Mortgages

Bad credit is no longer stopping people from taking out mortgages. Strictly speaking, there is no such thing as bad credit. If one lender does not offer a mortgage loan to a person, there is always another lender right around the corner.

Though a bad credit mortgage does not stop lenders to give out loans but they do so with a higher interest rate and fees. Usually after a time, the bad credit slowly repairs and the person can apply for a lower rate mortgage.

Following are some of the companies that offer mortgage loans even on bad credit history:

Yorkshire Building Society

Founded in 1864, Yorkshire Building Society is a bank based in Bradford. It is known as the second largest bank in UK. The company is best known for its award winning mortgages.

The company offers three types of mortgages:

  • Fixed Rate – 1.25%
  • Tracker – Interest is set according to the base rate of Bank of England
  • Offset – Using savings to pay mortgage and lowering interest rate

In order to apply for a mortgage, a person must be:

  • 18 years old
  • A resident of UK for 2 years
  • Minimum loan time period 5 years
  • Maximum loan time period 35 years

Nationwide

Founded in 1846, Nationwide is the largest building society that houses the bank Nationwide. A financial institution based in London, Nationwide won the best savings and mortgage provider in January 2016.

The company offers two types of mortgages:

  • Fixed Rate – 1.49%
  • Tracker – 1.34%

Nationwide has the following three steps on entering mortgage process:

  1. Processing the application: Once the mortgage form and other documents are submitted by a person, nationwide takes 48 hours to process it
  2. Property Valuation: The property of the person is then valued, which usually takes 2 weeks
  3. Receiving Offer: The bank gives the person a mortgage offer, which the person can either reject or accept

Platform

Founded in 1872, Platform is the trading name of UK’s biggest lending trader: The Co-operative Bank. The company has a motto that they lend mortgage money to nine out of ten fist time buyers.

The company offers two types of mortgages:

  • Fixed Rate – 1.24%
  • Tracker – 2.49%

Following are the steps to apply for a mortgage loan at Platform:

  • The company provides an advisor to asses a person’s situation and gives him/her mortgage payment options
  • Personal circumstances, income and expenditure are taken in to account
  • Property is evaluated
  • An amount is fixed according to the condition of the property
  • Final application with documents is processed
  • The company advisor gives you details on how to maintain your repayment schedule

Even though a bad credit rate does not matter in order to apply for a mortgage loan, a good credit history will go a far way in getting you an even better deal. You can visit Quiddicompare and compare the different interest rates offered by banks in UK.

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Who can be a Guarantor and What Are Their Obligations?

Who can be a Guarantor and What Are Their Obligations?

People who are thinking of obtaining a guarantor loan must first find someone who will be willing to take on the responsibilities and the risks associated with becoming a guarantor. The person who is taking out a guarantor loan places a huge burden on the shoulders of a guarantor.

In the event they default on their payments and flee, the guarantor will become responsible for their actions and will have to repay their debt in full. If you are seriously thinking of taking this step, you need to select someone who you know trusts you not to default or flee.

Who Can Become Your Guarantor?

The following people can qualify as your guarantor, given they are 18 and older:

  • Parent
  • Sibling
  • Friend
  • Partner
  • Co-worker
  • Relative
  • Homeowner
  • Tenant

Some lenders give special preferences to guarantors who own their homes, as that cements their ability to pay the loan if you bail. They tend to give you a loan up to £7500 of the guarantor owns a home and up to £5000 if the guarantor stays in a rented home.

Before you ask anyone to become your guarantor, you need to inform them of their responsibilities and obligations so nothing is left hidden, but is all out in the open for them to make a well informed decision on whether they want to become your guarantor  or not.

The Guarantor‘s Responsibilities

When someone agrees to financially support a relative or friend in need, it is considered a thoughtful act. By agreeing to become a guarantor, they are agreeing to repay the lender in the event you default on your repayments.

The lender will come after the guarantor to make them repay the entire amount owed in full. It is unlikely for the lender to take legal action, as most of time; the guarantor has the money to repay the lender. In the event they sue the guarantor, they can take legal action of their own by filing a lawsuit against you, the borrower.

The Guarantor’s Obligations

The guarantor is obligated to repay the loan repayments if the borrower defaults. They will have to repay the entire amount with interest.

Can the Guarantor Avoid Paying the Lender?

The guarantor can make the claim of not understanding the terms of the agreement, but success in winning the case in court is unlikely. Since the guarantor has signed an agreement, they will have no choice, but to repay the lender.

What Can the Guarantor Do?

Guarantors should consult with their lawyers about the terms and conditions of the agreement and on whether they should go forward with becoming a guarantor for their friend or family member.

Both the borrower and the guarantor should have a mutual understanding based on trust. If their trust between both parties and the guarantor knows the borrower will not break their trust, they should have no qualms of signing the contract to become their guarantor.

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Benefits Of Having A Credit Card

Benefits Of Having A Credit Card

Credit cards usually have bad reputation, but it’s not because credit cards are bad for you, it’s because people have a bad habit of overspending and being irresponsible. Credit cards can be either a gift or a curse, but it all depends on the person who is using them. By having a credit card, you may feel like you can buy anything, but in reality, you can’t. A good thing about credit card is that you have your money secured and in a way, have it with you at all times, you can even go into minus and spend more than you’ve earned this month, but when you’re doing so, you’re getting a credit card debt.


The reason why some people hate credit cards is because they got way too deep into a credit card debt and they didn’t know how to get out. They felt like they were using someone else’s money, and just like that they’ve gotten into a huge trouble. The interest will pile on, the same as if you’ve taken a loan from a bank, so if you can’t pay what you spent in the upcoming month, you will have a problem.But if you are responsible and spend responsibly, you won’t have any problems, furthermore, you will have a lot of benefits.

 

 

First of all, having a credit card is great because you will be able to monitor all your spending. All you will have to go is go to a website and download for free every purchase you’ve made for the desired month. Like this you will be able to see where to cut off and how to actually save money by knowing what not to buy next time. Impulsive purchases usually cost the most, so make sure you don’t do that.

 

 

But what other benefits, like we’ve mentioned above?

Well, with credit cards, you will be able to earn money as well. There are these hidden benefits a small number of people know about which will in fact save you a lot of money.

First of all, you will get an extended

warranty automatically of up to 1 year. This means that you won’t need to buy extra warranties at Best Buy.

The next feature you might be looking forward to is that for every rental car you’re getting a free insurance and also collision insurance. If you’re frequently renting a car don’t buy extra insurance because you already have one through your credit card, this way you will be able to save a lot of money. And lastly, but certainly not the least, whenever you cancel your holiday, you will get reimbursed by your credit card company, which means you will have a trip-cancellation insurance.

Imagine how much money you would have lost if you paid everything for a holiday and haven’t gone. Thousands of dollars. Now, you can simply call your credit card company, explain the situation and you will save all the money you almost got left without.

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Credit Cards

Credit Cards

There are three types of credit cards, revolving cards, installment cards and those for delayed payment ( usually one month).
Revolving credit cards are those which allows the owner to pay some percent of total debt monthly. All credit cards are usually based on some sort of revolving credit. The client pays minimal monthly debt percentage, and the remaining debt is subjected to bank interest. Revolving card often offers the possibility of paying shopping bill in several monthly installments, without the interest and only in some specified retail stores that has the contract with client’s bank. There are also revolving cards that are included in some purchases, which means that you get it if you buy, for instance, TV set, and the seller offers you to pay with revolving credit card provided by the bank that have the contract with the retail store. In that case, the amount on revolving card would be the price of TV set, and it is your credit limit since. This way, you will get the revolving card without much formalities, and there won’t be any instruments of securing needed.

Usual minimal percentage of monthly payment is 5%, but if you demand, in some banks you can determine higher minimal of 10%, 20% or 30% for your monthly payment. Thereby, monthly installment can not be less than a certain fixed amount. Monthly charge is always calculated on the same date of month, depending on the contract you have made with the bank.There is no restrictions about paying, so if you want you can pay more than calculated amount, or even to repay all debt at once. In such case, you will even get more favorable interest.

There are two ways of paying the debit, and it depends on the card type and the bank code. First way of payment includes commission, fee and interest, and of course the payment of things you have bought using installment model of payment. So when you make the shopping of 300$ spitted on three installments, you will be ought to pay three months the amount of 100$, including three commissions, fees and interests for each month. Another model of payment includes all that debts in one, so you need to pay only 5% ( or other minimal, depends on contract) of all debt, and all remaining debt is next amount that counts in next month interest.

Some credit cards includes payments using installments only. Those are so called installment cards. This time the bank divides the amount you have spent in agreed number of installments, usually 3-60. First installment must be payed on the day of shopping, and all other installments must be payed same date on upcoming months, plus interest of the bank. Some banks restricts number of transactions that can be done using this type of card. If the bank has the contract with retail object, there is also possibility of baying goods using installment payment, even without interest.  Installment cards offers same conditions for early payment and credit limits as the revolving cards, that is explained before in this article.

 

There are also credit cards that made the entire debt in one month paid in a certain date in the next month, with appropriate interest. The period between the two methods may be longer than one month, for instance, on every 45 days.

 

 

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Cash Advance Payday Loans

Cash Advance Payday Loans

Finance is one very delicate subject – especially when it’s about the paying rent, buying a house or buying a boat for example. You need money but you don’t have it! That is why people invented payday loans, which can be very helpful. On your following payday, the business cashes the check you have written and your loan is paid in full. This seems like a great idea – helping people get to their next paycheck by lending them a few dollars in the meantime. What is the problem? The problem is that few people realize just how expensive it can be to borrow money in this manner. The interest rates offered by the payday lenders can be very high, so be aware!

The interest rates that payday loan stores are permitted to charge can be different in different states, but a typical rate for a two-week loan would be 15-17%. That doesn’t seem like much if you are borrowing $100 and writing a check for $115; but the annual interest rate on such a loan is actually 390%, which makes it perhaps the most expensive way to borrow money. The joke in the industry is that it would actually be cheaper to borrow from a loan shark than from one of these legitimate businesses.

The lenders defend these rates, pointing out that such costs are necessary to protect their business overhead and high default rate. That may be true, but many borrowers are blue collar workers who live from paycheck to paycheck. It is easy to fall into the trap of repeatedly using such loans, and the interest adds up in a hurry, turning a convenience into a nightmare. Someone who is short this week may also be short in two weeks, and a loan of a few hundred dollars can quickly turn into a debt of a few thousand dollars, especially when late fees and bounced check fees are added to the total. More than a few borrowers at such businesses have had to resort to personal bankruptcy in order to get out from under their mountain of payday loan debt.

 

Even more egregious is the fact that such loan stores are frequently located near military bases. Our military personnel aren’t well paid and several members of Congress are not pleased that these predatory businesses are setting up shop for the purpose of exploiting our men and women in uniform. Several states have already passed laws that place limits on the interest rates that such businesses may charge and others will undoubtedly follow. A better alternative for anyone with a short term cash shortage would be to take out a credit card loan or a home equity line of credit instead. There is usually a small fee associated with such a loan, but the interest rates, which are probably no more than 30%, are far more reasonable than the 400% per year charged by the payday lender.

Anyone considering a payday loan should read the terms of the agreement carefully. Otherwise, that short term loan could haunt you for years.

 

 

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Chase Account – Solution For Your Doubts

Chase Account – Solution For Your Doubts

In the times of crisis, everybody should start thinking on a long term bases. A savings account give us that kind of protection. Savings account is there to provide you a buffer against different kinds of catastrophes, and give you a chance to prepare for big planed expenses. Searching for the right savings account, could make you searching for the best yield and features that you can find, probably along with highest interest rate that you can get.  And, above all, the best bonuses that goes with opening saving account.

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One of the solutions is a chase savings. Chase savings is not some revolutionary tip of saving accounts, like many others saving accounts, chase savings also needs a hard initial deposit. But, in another hand, chase savings will give you welcome gift if you, for example, deposit ten thousand dollars on your account, and manage to keep up that money for 93 or more days, you will receive a gift – one hundred dollars. If you decide to go few more steps further and open a Chase Total Checking account and directly set up deposit, you will get hundred and fifty dollars more. In case you decide to open both of those accounts, you will get two hundred and fifty dollars.

Chase saving account

If you decide to use Chase saving account, there are few more advantages that you can get with this kind of saving account, like benefit from all-around available ATMs. It’s starting to be well known fact that their platform for mobile devices and customer service have a quite big fun auditorium. If you want to avoid five dollar monthly fee, all you should do is to keep your minimum balance of, at least, three hundred dollars. When it comes about fees and savings at Chase savings, you should take a look into some possibilities and responsibilities.

For Service fee, at Chase Total Checking, they do not have monthly service fee, but only when you do one of the both statement periods. You’ll have 3 options for that. One is to have every month the direct deposits in the amount of 500 dollars or more on this account. Second option is to be able to keep at least 1500 dollars on a daily balance. And third options – the toughest one, is to be able to have the balance on the daily basis up to $5000, or more on any combination which can ensure  eligibility for chase checking, balances or savings.

When it comes about Chase Savings there is also no monthly service fee in by next 3 options.  First option is when you are able to keep daily minimum balance of 300 dollars. Second option is when you are able to provide in the worst case just one repeating transfer from the Chase personal checking account. And the third option is to have a linked Chase Premier Plus Checking for example.


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