A Little Lesson on Loans
The opportunity to spend money is everywhere. There is no shortage of places that will take your cash. In fact, to keep the money flowing out of your wallet, banks and merchants continually come up with easier ways for you to spend it.
But when it comes to borrowing money, suddenly the cash pipeline doesn't operate so smoothly. Money becomes a more complex issue with documents and terminology that practically require you to have both an MBA and Law degree to fully understand.
Before you get dazed by the paperwork and lost in the legalese of loan products, here is a quick lesson on loans.
1) The Basics
Example: If you borrow $100 with an interest rate of 10%, you will pay back $110. That consists of the $100 principal plus $10 interest.
2) Loan Categories
a) Installment loan: The installment loan is probably what most people think of when talking about a loan. Money is borrowed from the bank in one lump sum and normally paid back in installments, or increments, over a set period of time. The sum paid back can include both the principal plus interest or the payments may contain interest only with the principal being paid all at once in the last loan installment, known as a balloon payment.
Loans that fall under this category include mortgages, personal loans, and auto loans.
b) Revolving Credit loan: Revolving Credit (also called Revolving Line of Credit or Credit Line) is a loan where a lender allows someone to borrow money up to a specific limit, called the credit limit, whenever money is needed. The borrower draws down the credit limit every time an amount is borrowed. The borrower can use as much of the credit as he or she wants. When a repayment is made, the available credit rises by the paid amount.
Example: Borrower gets a credit limit of $1000. $100 of the credit is used to buy merchandise. The credit limit now decreases by $100 to $900. A day later, the borrower decides to borrow another $100 decreasing the credit limit to $800. Next month, borrower pays back the $200 plus interest and the credit limit goes back to the full $1000.
Loans that fall under this category include credit cards, home equity line of credit (HELOC), and business lines of credit.
A loan with a fixed interest rate means that the interest you pay stays the same throughout the life of the loan.
The adjustable rate loan, on the other hand, has an interest rate that can fluctuate from period to period. That means a borrower can expect to pay more or less interest as the rate fluctuates. The rate's movement is tied to indexes that track a basket of interest bearing investments. As the interest rates of the index moves up or down, the interest rate on your loan is adjusted accordingly.
There you have it. You just completed your lesson on loans. Now that you have a grasp of the basics of loans, you will be better prepared to understand the minute details of the loan that you need.
Jon Galanty is a financial writer for eMoneyCentral.com. Visit http://www.emoneycentral.com to find out more about loans and to get other great money tips.
Marriott workers' lawsuit says inconsistent schedules and credit union loans are a predatory mix - Philly.com
Marriott workers' lawsuit says inconsistent schedules and credit union loans are a predatory mix Philly.com
Hourly Marriott workers in Philadelphia are in the midst of a lawsuit against the Marriott Employees Federal Credit Union, saying that the credit union's $500 ...
All the Ways You Can Get Your Student Loans Forgiven Lifehacker
With the average student loan balance hitting $29800 for the Class of 2018, you're probably looking for any help you can get paying off your debt. And if you ...
Quick Tip: Payday loans can cost more than expected WLS-TV
Payday loans may sound like an easy fix but they could leave you swimming in debt. Here are some reasons why you need to be more careful than ever:.
Car Loan Delinquencies Reach New High NPR
Economic pessimists seized on new data indicating an increase in car loan delinquencies as evidence of a looming recession, but a downturn is likely simply ...
Croatia central bank warns about risks of rising cash loans Reuters
Croatia's central bank is concerned about a recent sharp increase in cash loans and may introduce measures to limit those risks, it said on Monday.
SBA Loans: December 2018 BizTimes.com (Milwaukee)
The U.S. Small Business Administration approved the following loan guarantees in December: Kenosha County D & A Fleming Properties LLC, 6127 Green Bay ...
No-interest loans help individuals, small businesses succeed in Cleveland News 5 Cleveland
It wouldn't have been possible without a no-interest loan from HFLA of Northeast Ohio. Younger already owed a lot of money and other lenders likely wouldn't ...
NY Fed says auto loan delinquencies at highest point since 2010 WPTV.com
DETROIT (AP/WPTV) — Borrowers are behind in their auto loan payments in numbers not seen since delinquencies peaked at the end of 2010, according to the ...
Burden of student loans cause depression, problems for young adults KCTV Kansas City
American student loan debt totals more than $1.53 trillion, according to the Federal Reserve.
Expensive loans to desperate people built this $90 billion industry GazetteNET
NEW YORK — During the recent government shutdown, U.S. Secretary of Commerce Wilbur Ross wondered aloud why financially stressed federal workers ...
Senator: Let's Take Student Loan Payments From Your Paycheck Forbes
This U.S. Senator wants to deduct student loan payments from your paycheck.
More Americans are behind on their car loans than ever before CNN
More than 7 million car loans were past due by at least 90 days in the fourth quarter, according to data released this week from the New York Federal Reserve.
Fight Substance Abuse, Get Your Student Loans Paid Forbes
A federal agency will help pay down your loans if you commit to fighting substance abuse.
Why did your mortgage lender sell your loan? Las Cruces Sun-News
If you've ever taken out a mortgage, there's a good chance the lender who made the loan to you sold it to another bank or investor. Why?
A GOP proposal could snatch your student loan payment right from your paycheck MyTwinTiers.com
Student loan borrowers would have their monthly bills automatically deducted from their paychecks if a Republican-backed proposal becomes law.
Morgan Lewis Principal Weighs In On Payday Loan Debate pymnts.com
As the CFPB has released an overhaul of payday loan regulations, Morgan Lewis Principal Nicholas Gess weighs in on the payday lending debate.
Elections Coming, Greece Will Subsidize Bad Mortgage Loan Payments The National Herald
With Prime Minister and Radical Left SYRIZA leader Alexis Tsipras reneging on promises to help beleaguered homeowners during a more than 8 ½-year long ...
Trade War Update: China Exports Up, Loans Up And U.S. Investments In China Up Forbes
Meanwhile, trade negotiations continue as China hopes to outlast Trump's tariff push.
This start-up is bringing fast home equity loans to your smartphone bank app CNBC
Blend's *service* is the latest example of a tech start-up working with banks, rather than competing against them, to bring easier-to-use digital services to the ...
ECB Moves Closer to Global Dovish Shift as Coeure Mulls Loans Bloomberg
The European Central Bank took a step closer to injecting *fresh* stimulus into the weakening euro-area economy as one of its top policy makers said discussions ...
China stocks jump on trade talk hopes, strong loan data CNBC
SHANGHAI, Feb 18- China stocks jumped on Monday after trade talks between the United States and Beijing saw progress ahead of a March 1 deadline, and ...
US secured bond sales jump as red-hot loans cool Financial Times
Corporate borrowers are following the flow of money away from leveraged loan funds.
FSA audit: Oversight of U.S. student loans lacking UPI.com
The U.S. Department of Education's student loans unit failed to oversee and hold accountable the companies it pays to manage the nation's student loan debt.
Ex-Workers Get More Time to Repay 401(k) Loans Kiplinger's Personal Finance
If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it thanks to the new tax law.
DBS forecasts stable loan growth this year after record 2018 profit Yahoo Finance
DBS Group Holdings Ltd, Southeast Asia's biggest lender, forecast stable loans growth for 2019 after a robust increase in net interest margin drove an 8 percent ...
Payday Loans Are No Worse Than Avocado Toast Forbes
The CFPB is proposing es to rescind key provisions of its 2017 payday lending rule. Good. The old rule threatens to starve millions of hard working Americans ...
India’s Sleepwalking to Trouble on Builder Debt Bloomberg
Generous loan terms, indolent construction and a lack of market discipline have shielded the nation's developers. That's changing.
Eyota council OKs EDA loans to help grocery store buyers PostBulletin.com
EYOTA — No deal is done, but this one is inching closer to the finish line.
Son of Mozambique ex-president arrested in loans scandal Financial Times
Loans financed tuna fishing fleet but funds diverted to kickback, say US prosecutors.
Americans getting behind on car payments: What it could mean Detroit Free Press
Experts are raising concerns, especially for the Motor City, about the rising cost of cars and a weakening economy.
Bad loan manager Fire to boost assets as it considers IPO: CEO Reuters
Italian bad loan investor Fire is looking to add 1 billion euros ($1.1 billion) in assets under management this year as it works towards an eventual stock market ...
Personal loans 101: How they work and who can qualify for them INSIDER
Unlike credit cards, personal loans offer a fixed interest rate, fixed repayment term, and fixed monthly payment. Read on to learn more.
Federal government not forgiving student loans for Americans working in public service for a decade - KSHB
Federal government not forgiving student loans for Americans working in public service for a decade KSHB
The federal government is not forgiving student loans for thousands of Americans working in public *service*.
Student loan debt in 'serious delinquency' hits $166 billion New York Daily News
Student-loan delinquency rates accelerated last year, topping out at $166.4 billion in the fourth quarter.
BoG chief convenes meeting over loan to gov't official | Kathimerini www.ekathimerini.com
Bank of Greece Governor Yannis Stournaras has called an emergency meeting with officials from Attica Bank to discuss a controversial loan that was issued by ...
How to Manage Student Loans When Returning to School U.S. News & World Report
Consider enrolling in or remaining on an income-driven repayment plan when returning to college after a break.
Club Loans Tommy McCabe to North Carolina FC FC Cincinnati
CINCINNATI – FC Cincinnati have loaned midfielder Tommy McCabe to North Carolina FC. FC Cincinnati announced the signing of McCabe – along with four ...
Should You Refinance Your Federal Student Loans? Forbes
It's a popular question on Google: "Should you refinance your federal student loans?" Here's what you need to know. Student Loan Refinancing. Student loan ...
How To Never Get Rejected For Student Loan Forgiveness Forbes
You've read the headlines: 99.5% of people were rejected for student loan forgiveness. Here's what to do about it so you never get rejected for student loan ...
IRS Says Loans Aren't Taxed, But Audits When Loans Are Income Forbes
Can the IRS tax a loan? Say your uncle loans you $10,000 to tide you over, is it taxable income? No, it shouldn't be. What about when the bank loans you ...
Want a loan? Better not mention you’re a vegan The Guardian
NatWest has apologised and paid compensation after a woman seeking a loan for a vegan nutrition course was told 'all vegans should be punched in the face'
Wall Street Sees No Evil as Junky Loans Surpass $1.3 Trillion TheStreet.com
The Federal Reserve is sounding alarms on the growing risks from loans to companies with poor credit ratings. So are the International Monetary Fund, ...
Report takes aim at Texas auto loans, which top the nation Houston Chronicle
It's a trope, but true: Everything is bigger in Texas, including the car loans. Texans borrow a nation-leading $6,520 per capita for automobile purchases, ...
Over 60, and Crushed by Student Loan Debt The Wall Street Journal
Older Americans are struggling under the burden of student loans—their children's and their own.
SBI to waive loans taken by slain CRPF personnel; to expedite insurance payments Economic Times
NEW DELHI: State Bank of India Monday said it would waive all outstanding loans taken by 23 CRPF personnel who were killed in the Pulwama terror attack.
What Credit Score Do I Need for a Home Loan? Yahoo Finance
You can get a home loan with a surprisingly low credit score, but there's good reason to aim higher.Image source: Getty Images.
DBS profit driven by loans as turmoil hurts wealth, trading - Business News The Star Online
SINGAPORE: DBS Group Holdings Ltd. relied on lending to boost fourth-quarter profit as financial-market turbulence hit its trading, wealth and investment ...
Boston Tech Watch: Student Loans, Google in Kendall Square & More Xconomy
General Electric may have backed off its plans for Boston, but at least it's not leaving town. A student loan startup in Boston eyes help from Capitol.
Consumer Protection Bureau Cripples New Rules for Payday Loans The New York Times
Payday lenders won a major victory on Wednesday after the Consumer Financial Protection Bureau moved to gut tougher restrictions that were to take effect ...
Seven Million Americans Delinquent on Auto Loans Could Be a Bad Sign MSN Autos
Think about the impressive number that is $1.3 trillion. That's the total amount of auto-loan debt in the United States today, representing a $584 billion increase ...
Historic black church pays off loans of Howard University students | TheHill The Hill
A historic black church in Virginia made a $100000 donation to help cover the student debt owed by 34 students at Howard University,
Young People Are Doomed by Student Loans, Not the National Debt VICE
Rich old people love to freak out about the budget deficit. They are ignoring a much bigger issue.
Wilbur Ross says government employees should just get loans, but it's not that easy CNBC
Here's the help major banks are offering to government workers affected by the shutdown.
Norway Sets Credit Limits for Booming Consumer Loan Market Bloomberg
Norway stepped in to limit the growth of high interest rate consumer loans and credit card debt to protect the economy from ballooning household leverage amid ...
Witness: Mangano played key role in Singh's loans Newsday
Edward Mangano played a key role as Nassau county executive in securing Oyster Bay's backing for millions in loans for Harendra Singh that prosecutors ...
For desperate Americans considering a payday loan, here are other options MarketWatch
Consumers have many alternatives when it comes to payday loans — many of which offer lower interest and other benefits.
Consumer crunch: Banks set to crack down on credit cards, car loans Sydney Morning Herald
Banks may make it harder for consumers to get car loans, credit cards and personal loans under proposed rules from the corporate regulator.
Witness: Singh loans were a 'sham and not legal' Newsday
Jonathan Sinnreich, who served as Oyster Bay's outside counsel, said he objected in 2010 to helping the deputy town attorney draft amendments to two of ...
Government loans helping north Simcoe businesses get started Simcoe.com
Group of local businesses can thank North Simcoe Community Futures Development Corp. for helping them get off the ground.
China’s private firms going bankrupt after guaranteeing others’ loans South China Morning Post
Banks reluctant to lend to non-state sector without a guarantor, so cross-guaranteeing is common and one bad loan can trigger multiple defaults.
TSP will allow participants to take loans during next shutdown Federal News Network
The Thrift Savings Plan will allow its participants to request a loan during future government shutdowns, giving federal employees a potential option to alleviate ...
Why You Shouldn't Take A 401(k) Loan Forbes
It's awfully tempting. You see that money in your 401(k) plan account just sitting there. And you think of all the possible uses for it. Why not take a loan? You will ...
Prominent Republican wants to take student-loan payments out of your paycheck MarketWatch
Senator Lamar Alexander of Tennessee floated the proposal as part of a speech outlining reforms to the student-loan system.
Go into debt to pay rent? California startup finances your rent with high-interest loans - The Mercury News
Go into debt to pay rent? California startup finances your rent with high-interest loans The Mercury News
Domuso offers loans to tenants struggling to pay move-in costs or monthly rent, with an average interest rate of 27 percent.
Revealed: How insiders' loans fraud sank Chase Bank The Star, Kenya
Former Chase Bank Kenya chairman Zafrullah Khan awarded himself a three-year consultancy contract for unspecified projects in the bank, 16 months before it ...
Costly loans eat up Sh69 billion in six months The Standard
Interest repayments on Kenyan debt to China and several commercial banks alone gobbled up Sh40.6 billion in six months last year, new data shows.
Proposed change to federal student loan program could make payments automatically withheld - KEYE TV CBS Austin
Proposed change to federal student loan program could make payments automatically withheld KEYE TV CBS Austin
The tuition freshman Cameron Pierrotti pays at the University of Texas is about $40000 a year. "I'm from Louisiana, so I came here out of state," he explained.
Student Loan Interest Rates Are Increasing Forbes
But student loan borrowers may have some options.
The Curse of Student Loan Debt Flathead Beacon
I graduated college in 1998, and law school in 2001. Both degrees are from the University of Montana. It was the result of assistance from Pell Grants; the money ...
'It's A Dog Fight': Banks See Increased Competition For Construction Loans Bisnow
Lenders say the construction financing landscape has become increasingly competitive, leading some questionable projects to receive loans.
How One Woman Paid Off $110000 In Student Debt Before She Turned 30—Without Sacrificing Her Social Life - Cosmopolitan.com
How One Woman Paid Off $110000 In Student Debt Before She Turned 30—Without Sacrificing Her Social Life Cosmopolitan.com
The totally doable way one woman crushed her student debt—and still had a life.
Purdue offering income-share agreements as way to pay off student loans WGN TV Chicago
Purdue University has a creative new way for its graduates to repay their student loans. It's called an income-sharing agreement. Graduates will make payments ...
Student Loans Becoming a Retirement Issue Wall Street Journal
Parents are better off dealing with the temporary tears of a teenager unable to attend a high-cost dream college.
Low-Interest Loan Options for Furloughed Federal Employees U.S News & World Report Money
When you're living paycheck to paycheck, missing one pay period because of a work furlough can derail plans for your budget and overall financial health.
Slippery slope? Unconventional home mortgages are on the rise The Real Deal
Unconventional mortgages — the likes of which were criticized for their role in the financial crisis — are making a comeback. These loans are aimed at buyers ...
Biglari Sells 402,427 Shares of Cracker Barrel; Loans Fat Brands $20 million - Restaurant Industry Insight and Analysis - February 2019 - Restaurant Finance Monitor
Biglari Sells 402,427 Shares of Cracker Barrel; Loans Fat Brands $20 million - Restaurant Industry Insight and Analysis - February 2019 Restaurant Finance Monitor
Fat Brands (FAT-NASDAQCM), the franchisor that owns Fatburger, Hurricane Grill and Wings, Buffalo's Café and Buffalo's Express, Ponderosa and Bonanza ...
Quicken Loans launches new Rocket Mortgage logo Crain's Detroit Business
Quicken Loans Inc. has a new logo for its Rocket Mortgage product, and there are no rocket ships involved. The Detroit-based mortgage lender, which debuted ...
How does the government shutdown impact mortgage loans? WEAR
ESCAMBIA COUNTY, Fla. (WEAR) — The local housing market is being impacted by the partial government shutdown. Several types of mortgages are ...
China wants to boost loans to small businesses. Tech companies may be the answer CNBC
Beijing's push to encourage lending to smaller companies creates a business opportunity for the largest financial technology companies.
These were the 10 largest Manhattan real estate loans in January The Real Deal
The top 10 Manhattan loans recorded in January totaled just over $2.9 billion, staying more or less flat for the third straight month.
Fast Money: A Guide to Fast Secured Loans
Here is a useful guide to fast secured loans. Here is a useful guide to fast secured loans.
Military Loans - Serving Financial Need of Those who Serve the Country
Military loans are overcoming financial difficulties for army personnel who have served the country with a dedication which can't be put in words. Military loans are offered to both serving army persons and those who have retired from the service.
Business Credit Scoring: Is It a Killer Application or Application Killer?
In his 1968 seminal novel, 2001: A Space Odyssey, Arthur Clark introduced HAL, a spaceship computer with artificial intelligence. Mission engineers designed HAL to carry out an array of technical orders to safeguard the ship's mission.
Bad Credit Business Loans - to Exchange Bad Credit for Monetary Benefaction
You want to raise a business on your own or you want to expand it further. You have a plan and the vigour to make your mark in this field.
Car Loans - Shop Around, Compare Offers, and Watch The Small Print
Getting a loan to buy your new car is, you would probably think, straightforward. However, there are a few apparently small variations which can be actually cost you a lot of money.
All About Bad Credit Secured Loans
Bad credit secured loans are a relatively recent addition to most brokers' portfolios. Just a few years ago a less-than-perfect credit history usually meant the end of the financial road.
Online Car Loans - Getting a Good Quote Online
Online car loans enable you to get a good quote and ultimately the best deal. With dealerships and local banks, you are at the mercy of their rates.
Why Choose an Unsecured Loan?
Why choose an unsecured loan? An unsecured loan can be used for almost anything - a relaxing holiday, a new car, a wedding, debt consolidation or home improvements. These are just some of the reasons why people choose an unsecured loan.
Fast Cash Advance Payday Loans - Convenient to Use Online
Online cash advance companies offer a convenient and speedy application process. Within 24 hours you can have your cash advance loan deposited into your checking account allowing you to pay those unexpected bills.
Benefits of an Unsecured Loan
Listed below are some of the benefits of an unsecured loan. An unsecured loan is a loan which does not require you to have any collateral to secure the loan against.
Personal Loan 101- What You Absolutely Need to Know
Daughter's marriage or her studies? Son's Ambition? Want a House makeover?Stop worrying about 'money' to fulfill your cherished dreams now?Avail the opportunity of 'Personal Loans'.Personal Loan is perhaps a man's best friend in today's world.
Short Term Loans...are they right for you?
With less than a week before she was to receive her next paycheck, Roni was faced with a problem that millions of Americans experience at some point in their lives: bills that are due and not enough cash available to pay them. Faced with a dilemma of late fees and a lower credit rating, many consumers with no options left turn to credit card advances as a stop-gap resolution for their problems.
Poor Credit Car Loan - Get Approved Online
Poor credit doesn't have to stop you from getting a car loan. In fact, car loans are one way of rebuilding your credit history.
Financial Openings Without Warranty Alias Unsecured Personal Loans
Isn't it the trillionth article on unsecured loans? All are filled with details - extended, exhausting. It looks like that the flood gates have opened and innumerable loan providers are ready to offer you unsecured personal loans.
What is Credit Scoring?
Have you ever wondered what is credit scoring? Credit scoring is a system creditors use to help determine whether or not to give you credit.How does a creditor decide whether or not to grant you credit? Creditors use credit scoring systems to determine if you'd be a good risk for credit cards and auto loans.
Poor Credit Mortgage - Overcoming Financial Slumber
There is a huge market for homeowners who have credit issues like - poor credit, sub prime loan borrowers. Some years ago what was seen as a sure sign of frustrated mortgage attempt is now opening a new variety of mortgage called poor credit mortgage.
What is an Auto Loan?
An Auto loan is basically another name for a car loan. An auto loan is an agreement between a lender and a borrower in which the lender gives the borrower money and the borrower promised to pay back the amount of the loan and the interest.
Car Loans for People With Bad Credit
Car loans for people with bad credit are readily available online. After completing an online car loan application, you can expect an approval within a few minutes.
What To Consider Before Applying For A Loan
Here are some useful tips on what to consider before applying for a loan. If you need money to pay bills or make home improvements, and think the answer is in refinancing, a second mortgage, or a home equity loan, consider your options carefully.
If You Consider To Get a Quick Cash Loan Then Reconsider It
A quick cash loan also called payday loan, cash advance loan or a deferred deposit service is a small, short-term loan typically ranging from $ 100 to $ 500. These quick cash loans are issued against paychecks.
|home | site map|
|TIGER MEDIA© 2006|