Holiday season is round the corner. Christmas comes but once a year; when it comes it brings the season of cheer. Your finance constraints should not stand between you and your enjoying the holidays. Here are few tips for you to follow through:
1. First and foremost decide where you are going to be during this season; be with the family at home or take them to a faraway land by the beach or under the shadow of peach trees
2. Assess how much is the budget for this round of holidays. Once you have worked out a figure find out how much you can marshal from your own source and how much is left to be topped-up
3. Now you must find out how to fill the shortfall; at this juncture two issues come to the fore. One relates to your personal status and the other relates to your finance sources
4. Check your personal status: you can be a business person; fully-employed in a company; part-time employee somewhere; or self-employed
5. Check your credit status: if you have excellent or good credit score then it sounds fine; any average or poor score is still redeemable. If you have bad or miserable credit score your chance of getting finance is dim
6. Now check your sources of finance spanning in consumer divisions of major banks, credit unions, building societies or savings and loans associations
7. Either choose temporary enhancement of your credit card limit to tie over the holiday season or go for a personal loan to finance holiday season
8. If you choose credit card enhancement negotiate with the banks on the amount you require, their willingness to extend the period of payment, the relaxation of minimum payment for the season without incurring any interest over-charge
9. If you tick personal loan you have to do much more ground work. The lender would look at your credit status, past performance and affordability before making a commitment. Furthermore, they would also look at the terms and conditions to decide upon the rate of interest that is charged for this personal loan. Primarily, the period of repayment matters. Depending on the market movement short and long term lending is priced lower or higher. If you tie for a long period say five years it will be tagged to bond market rate and interest will be charged accordingly. If you are eying a short term say one year loan then the rate would correspond to money market rates and interest will be charged accordingly. Interest rate you pay is also governed by the fact whether your loan is secured over collateral or remains un-secured. There is another side of the coin: you can also book in for fixed or floating interest rates
10. Before signing on the dotted line do a search to find out personal loan terms and conditions from at-least 3 sources and do what we call as “comparative terms”. You must also get the precise amount the lender would charge as commitment or engagement fees
11. It is advisable that you clear out the option of early payment with the lender. Generally, personal loan is granted for a fixed term of X number of years. In case you wish to make a lump sum payment during the pendency of the loan, the lender is not amused. This is because he has to find ways to park the excess funds. Ordinarily, lenders insert a clause that such early payment attracts a penalty. When you go for a personal loan negotiate for the removal of this penalty clause
Even though you are borrowing to enjoy your season of merry be rest assured that it comes with a big plus point. You are relaxed; more than that your cosmics are fine-tuned. Cosmics are aspects residing within you shaping and influencing you and your business or career though these are un-seen and un-noticed by you. After giving a chance for your cosmics to work you return to your office desk as a new-born guy with zest and zing.
Season’s Greetings
2 comments:
These are so very useful tips that you have shared. I will use some of them.
Thanks a lot for sharing!
Thanks Saru; much appreciated
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