Cryptocurrency? Say what?
Cryptocurrencies, especially Bitcoin, have been in the news and media for quite some time now.
In general, there are 6,700 types of cryptocurrencies that are in circulation, with bitcoin being the most popular amongst the cryptocurrencies with a current market value of $421.7 billion.
Cryptocurrencies are not regulated by any existing authority (yet) and their inherent value is based on speculation. Since they are majorly traded for-profits, most players bank on an upward trajectory to cash in when the graph is favorable.
But other institutations are also getting into the game. Crypto payment options have recently hit the market, with several companies developing their currencies known as tokens to use in trading for goods and services the company produces.
It’s only a matter of time, until cryptocurrencies become a mainstream payment and saving options.
Advantages of using Cryptocurrency
- Autonomy; Using Cryptocurrency allows the complete user control over their expenditure and funds. This mode of payment eliminates the aspect of dealing with the banking systems and government. This is the most appealing advantage of using Cryptocurrency as you are not explainable to anyone the number of funds you have stored or using.
- End to end encryption; the payment system is strictly user to user. This means that only users are able to transact with each other without approval from an external authority. There are also sites that can mix your bitcoins to further improve privacy. These are called crypto tumblers and they work to hide your identity when sending bitcoins to someone else. These are good if you want to stay 100% anonymous.
- Banking fees; this mode of payment does not have any form charges similar to banking charges like overdrafts and account maintenance fees. Only minor transactional fees are applied if you send bitcoin to a friend etc.
- Mobility and Accessibility; being an online payment system, the user can make payments from any location with internet access. With the increased use of the mobile smart device, users can easily access their bitcoin wallets from any of their devices.
Disadvantage of Cryptocurrency
- Cybersecurity; is the major concern with online modes of payment. They are located on a digital platform, and cryptocurrencies are susceptible to hackers who could cause a loss of funds.
- Lack of inherent value; Cryptocurrency lacks the ability to directly link its value to a given asset, causing price volatility. This makes its value solely based on speculation.
- Regulations; Lack of regulations from existing authorities has rendered this mode of payment a high-risk investment for stakeholders.
- Scalability; use of Cryptocurrency has been on the rise. However, this means it still faces stiff competition from global payment companies like MasterCard and VISA.
The term investment may appear to make the concept easy but the investment is an art and science on its own. Good investments made smartly are always bound to make beneficial returns. However, if the investment is not managed properly, there are not going to be any benefits. Several factors play an important role while managing an investment like what to invest in and when to invest. Only if you are able to understand then you will be able to maximize your profits through your investments. If you are looking to make an investment for the first time, then there are a few things you have to keep in mind and following these principles is going to set up a strong foundation for your investments, which is going to be beneficial for you.
One of the very first rules you have to keep in mind while managing your investments is that never to invest all of your money in one place. Always diversify, make small investments in various sources instead of just investing in one. This approach may seem like a hectic agenda but is regarded as a safe approach. Because if you have all your eggs in one basket and something goes wrong, there is no chance of recovery. However, if you have your investments spread out, there are always other options available. One of the easiest investments to consider if you are looking to diversify is mutual funds or exchange traded funds.
Another concept of managing your investments is to buy at a lower rate and sell at a higher one. This concept may seem easy to understand but there are genuinely good reasons, you might not be able to follow it all the time. It depends upon your abilities to read the market conditions. You can always interpret them right and be benefited from it but there is always the possibility that you read the conditions wrong and sold early, or at a lower rate than you should have. Volatile markets like forex trading or stock trading can be confusing for people and they might end up taking the wrong decisions based on their interpretation of the market conditions. However, results can be guaranteed if you are able to follow the guidelines, you have devised for your own self and if you stick to them, you are not bound to lose money.
There is another option for consideration when you have to manage your investments properly. You can always look to invest in an age fund. There are mutual funds that you can invest in and the allocation of your investment may change depending upon your age or how close you are to retiring. When you have a considerable amount of time left until your retirement age, the money may be invested in stocks, forex trade, and similar options. However, as you get older, the money may be invested in much safer options like, bonds, cash – to make it clear, in the market that is less volatile and there is a less chance of losing your money.
There seems to be a misconception that investments can only be made with more money in hand in order to reap good benefits from it. However, that is not the case and small investments done smartly over a course of time are bound to be very beneficial for you. Even small amounts as $50 dollars put away into an investment can yield the results for you. It is also not right to think that investments can only be made in stocks; there are other ways to make an investment with each of them having their own risks and benefits. The return is only dependent upon how aware you are of your investment and how smartly you are doing it.
Firstly, it is not wise to have all of your money invested. There needs to be a separate amount dedicated to investments and a certain amount dedicated for your use which you can use in any case of emergency. Some of the safest investments to consider have been listed below.
Real Estate market these days is considered the safest investment. It is considered safe because of it being a tangible investment. There are many ways to go about investing in real estate. You can purchase houses or invest in an apartment and then rent it out to any looking party. You can always continue to buy and sell property with a profit margin that is always going to be beneficial for you.
The second safe investment is Gold. The safe thing about investing in gold is that it is never going to lose its value. Global economic conditions may affect the rate of the dollar or different currencies, however, gold will always hold its value. It is also expected that the rate of gold is bound to only increase in the future. Therefore, if you have your money invested, it is going to be yielding very good results.
The third option to consider when making investments is Peer-to-Peer Lending. By using a peer-to-peer investment, you are lending your money to different borrowers. When these borrowers return the money, they pay it back with an added interest rate, which keeps turning, into profit for you.
Another option to consider for investing money is in Bonds. However, it has to be kept in mind that money invested in bonds is a debt investment. The return has a variable or fixed interest rate. The higher the interest rate, the higher the risk is.
What is a payday loan?
This is a short-term loan meant to sort you up in case of emergency, requiring immediate settlement. It is almost charged at a high rate as opposed to annual facilities. This is because it takes less time to be processed and is due within two weeks or next payday whichever comes first. They are attractive as other loans and are difficult to repay since they are spread within a short period.
How Payday Loans Works
Payday loans are entirely diverse, unlike other personal and consumer loans. They can be applied online, using the Mobi-loan app or visiting personal to the nearest branch. The amount of money that you can borrow will be dependent on different factors like the state you belong to, your account history, and other deliberations like loan creditworthiness. After loan approval upon examination your eligibility, the money will be deposited in your bank account, or you can receive a check or cash in case you went to the branch physically. It is required that the amount need to be paid in full plus interest charged in the next 14 days on the next payday. The interest may escalate as high as 400% due short repayment period on what we call steep APR. Most of American despite its high cost, this can be argued out that many people take payday loan since they have no other financing options. Another reason could be the fear of borrowing from other sources like family members or friends due to intimidation or low self-esteem. For those who have good credit, standing will get fast approval.
Rules Regulating Loans Approval
Most payday lenders will have a checklist for approval, though short term lending rules are rapidly changing due to technology. Online information is available for consumers who would need to access crucial details. It is advisable to take a loan if you have exhausted other options.
Payday loans will prevent you from being overwhelmed with high debts or miss your paycheck.
Most of these loans may tend to stick you in a cycle of paying loans every other payday. Most of the payday lenders will never perform a credit check, as can be seen here. Payday loans make it easier to get instant response upon application which takes at most four minutes. A payday loan is available in most Americans states like Maryland, Colorado, Arizona e.t.c Opploans is a payday credit moneylender who provides direct loans between $500 to $ 4000. Nearly five minutes is the amount of time needed for the loan to be approved depending on your credit score. Their loans are paid within a month of payoff. It most available in Alabama, Arizona, Florida, and others.
While you consider payday loans, you are assured that this will give you some few benefits.
What is a payday loan?
At some point in the life of average America, one cannot cater to their daily expenses for several reasons. Emergencies, unexpected costs such as car and house repairs, and mortgage costs, among others, maybe a contributing factor to ruining your budget so that you have no or less money to run you throughout the week or month. What happens next? Will you borrow from family, co-workers or friends? That can be embarrassing, right? Don’t worry. That is where payday loans come in. Payday loans are short term loans picked by individuals from lending organizations so that they can sort their weekly or monthly bills and pay them up in their best payment cheque. The loans come in very handy to most people who need to pay up a certain amount of money before receiving their income. For example, if you are required to pay your mortgage fee in the next four days and your salary is due in two weeks, what do you do? Taking a payday loan would save the day.
Do people receiving social security benefits get payday loans?
In the past, people who received supplemental security income had a hard time getting a loan. Today is different. The SSI recipients and other people employed by the government have financial services open to them. Different lenders have different terms and conditions for people under the SSI who seek to secure SSI payday loans. Even then, all the lenders require that the applicants of the loan need to provide the following;
- An identity card, passport or a driving license as proof of identity. You qualify if you are a US citizen or permanent resident.
- A pay slip or any document that shows you have an income.
- A bank account. The bank should have proof of activity. If the recipient does not have an active bank account, they can produce their social security benefit entitlement.
If your credit to debt ratio is above what is termed normal, it will be deplorable for you since the lender will be less willing to grant you a loan. The lenders also check whether you have a good credit score. Nobody wants to risk their money to a person who might not pay it back.
Payday loans take less time to process. Within three working days, the recipient can get the loan if they qualify. It is also crucial for all SSI beneficiaries to know that payday loans tend to accrue more interest when they rollover. If you said that you would pay in two weeks at the application, stick to the agreement or else you will either pay a huge interest or accrue bad debts. Each state in the US has its laws governing the lending of payday loans, and some have been banned from lending due to high loan rates.
Short term payday loans can serve as a temporary solution for an unexpected financial expense. This solution can be quite helpful, but only when done responsibly. In any financial emergency, it is crucial to think long-term, and be realistic about your current situation. Payday loans should always be your very last option.
Often, there are cheaper solutions.
Avoid these three common payday loan mistakes and get your finances back on track.
- Never Take Out More Than One Payday Loan
Having more than one payday loan is illegal in most states, yet some borrowers resort to doing this in desperate times. Once you factor in the principal and interest along with your usual expenses, you will have more debt to pay back than you earn monthly.
Not only is it illegal to sign for multiple payday loans, it is also totally irresponsible. This additional debt leaves you owing more than the amount you earn each month. Try to avoid this scenario at all costs.
- Never Borrow More Than You Can Pay Back
It might be tempting to take out a larger loan in a time of need. Be mindful, however, and exercise caution in this area. To protect your credit and reputation, you do not want to fall into this default trap of borrowing more funds than necessary. Only borrow enough money to cover your immediate expenses. If possible, borrow less than the amount required and seek out alternative options. This will enable you to successfully pay back your short-term loan plus interest. Focus on repaying in a timely fashion. You will need to take an extensive look at your budget and determine what you can comfortably afford to repay. Payments may be weekly, biweekly, or monthly, so consider your pay schedule and try to time it appropriately. This will cut down on excessive interest fees and save you unnecessary headaches in the future.
- Use A Licensed Lender-Avoid a Middleman
When taking out a short-term loan online, many borrowers will assume that a particular lender has credibility. However, there are many unlicensed lenders on the web. Their website may look legitimate, but the company might actually be run by illegal entities. Many borrowers get caught in the trap of receiving a loan from a questionable lender. Loan sharks or unlicensed lenders will often follow unscrupulous practices. Many of these lenders will extend a loan to you under false pretenses. Some lenders will resort to harsh practices to recover debt, or will have excessively high interest rates. Interest rates on short-term payday loans are usually quite high already- the last thing you need is rates that are even more outrageous. Be sure to research the lender’s credibility thoroughly before entering into a contractual agreement with them. This can be performed by doing a simple Google search about the company. Also, read through your agreement with the lender in its entirety. Choose a credible lender that is licensed by the state. This will protect you legally in the event of any mishaps with your loan.