EMVERTEX

​ As a financial planner, this is a question I am asked frequently. Often people consider getting a Home Equity Line of Credit (HELOC) or a personal loan to consolidate their credit card debt. Debt management is one of the biggest causes of stress for many people, so it’s understandable that those drowning in debt are looking for a solution. But...is this the right one? People seem to think this is an easy solution to their credit card problems, but there is no silver bullet. You still have your debt, you are just paying it off differently. Here are three things to consider before making this move. Will you continue to rack up credit card debt? This is number one for a reason. The most important thing to consider is whether or not you will actually change your debt behavior and habits. If you have high credit card debt because of a one time home improvement project, or a year where you were building a business - then your debt may be circumstantial and not due to a habit of over...

Be careful before helping someone out by cosigning a loan — you could wind up hurting your finances in the process.  There may come a point when someone in your life needs your help getting a loan. Maybe that person is a sibling, child, or long-term friend. And if your credit is great, you’re certainly a viable candidate to be a cosigner. But before you agree to take on that role, you must understand the potential repercussions involved. What does cosigning a loan mean? When you cosign a loan, you become legally responsible for paying it back, even if you’re not the person who needed that loan in the first place. As long as your name is on the loan agreement, the lender in question can come after you if the primary borrower — the person you’re helping out — doesn’t keep up with his or her payments. At that point, you risk having to pay back money you didn’t actually borrow yourself, or having your wages garnished if you can’t make those payments. Furthermore...

Are you finally ready to treat yourself to the popular Turkish ice-cream vendors or just devour the famous Pho in Vietnam, watching the sunset in the backdrop? Dreams are bliss, and thankfully these days, you can actually live them. The new generation today, is aware of how easy it is to manifest their travel dreams in reality whether they have saved or not! The internet and technologies have also made all the processes right from planning to finances simple and accessible. If expectations are not met at the speed of their thoughts by one organization, it is easy for them to move onto the next option. No one understands this better than e-commerce platforms, which offer multiple customized products to them. Even digital NBFCs have tailor-made loan products to meet their growing demands. Travel is no longer a trend, It’s a necessity for millennials. It provides them with enriching experiences, transforming their outlook towards their lives and careers. Families and managers,...

Consumers have the world at their fingertips today and loans are no different – an online loan application can be done in a matter of minutes, from anywhere at any time. However, as simple and convenient as the process is, a personal loan will only be granted when the applicant has satisfied the bank that they meet all necessary criteria, said Neil Thompson, head of product and customer value proposition at African Bank. “If you meet the requirements the money could be in your bank account within 24 hours or less. But consumers must be realistic about their personal circumstances and credit history when seeking to borrow money from a bank if they want the application to be successful.” He said that when applying for a personal loan you do not have to tell the bank what you want to use the money for, unlike borrowing money to finance a car, for example. Banks always consider risk when borrowing money to customers. There are high risk and low risk scenarios when it comes to...

The utility of credit cards is no longer restricted to making payments and accessing quick credit. They also come with attractive offers and benefits on card transactions, which if used smartly, can significantly reduce your transaction costs. However, these very benefits and instant credit access entice those without the financial discipline to spend beyond their means. This leads them to delay or default their bill repayments. If not tended sooner, the outstanding grows rapidly due to steep finance charge and late payment fee. One of the best ways to come out of such a debt trap is to avail a personal loan. Benefits of availing a personal loan to get rid of the credit card debt trap: Lower interest rate The rate of interest charged on unpaid credit card bills are higher than most of the loan options. Also known as finance charges, it can be as high as 49.36 % p.a. Additionally, you will incur late payment charges of up to Rs 1,000 if the minimum amount due also remains un...