Bits Finance

Let’s take a look at the facts: Housing prices are rising at a clip of 10-15% per year, tuition costs are rising by an average of 10% each fall, and energy costs – well, the average rise in prices depends on the week you happen to be looking at, but double-digit increases have been the norm for the past few years. And now, the really depressing fact: Average wage increases have hovered between a measly 3 and 4 percent for the past three years. Now what, you ask, does any of this have to do with car financing?

Hey, as simple as can be stated, it boils down to numbers. Interest rates: These are the hidden little killers that can destroy retirement plans and lifestyles over the course of a lifetime. Car financing is the second most important credit-related decision you will ever make, the first being the mortgage on your home. So, just as an example, let’s say that you make $30,000 per year and are looking to finance a $25,000 car over five years. The difference between attaining approved car financing at 6% interest and 16% interest equals $130 per month if you take the loan out over 5 years! And here’s the clincher – a 3% annual increase in salary will net you an extra $900 per year (and that’s before taxes), while saving $130 per month on your car financing puts nearly $1600 more dollars in your pocket. (And hey, that’s after taxes!) Even a few percentage points difference on your car financing can actually equal or exceed the raise you got from work this year!

I had no idea those tiny numbers could add up to so much money! What is my best option for getting an approved car finance plan – with the lowest interest rates?

In the end, your credit rating, and the interest rates it commands, can make or break you over the course of your life. Car financing is not rocket science, but you really have to be careful with the numbers – or you can end up paying thousands of dollars more than you have to. Your best approved car finance option is probably going to be obtained through a bank or credit union. The great things about getting your car financing through a bank is that you tend to get the best rates, personalized service, and you don’t have to worry about some pushy car salesman trying to shove useless add-ons down your throat every five minutes! However, banks and credit unions have higher car-financing standards, so you need decent credit to consider this as an option.

But wait a minute – the banks always take forever to process a loan, and the salesperson at the dealership can get me approved in minutes!

This is very true. But there is a price for that convenience, isn’t there? The dealer almost always offers you a higher rate on car financing – and be prepared for them to try and sell you every single add-on you never wanted in the hour it takes them to fill out the paperwork! That approved car finance arranged through the dealership may save you a week over financing through a bank – but just a few percentage points difference in interest rates can easily cost you $1,000 more each year for the entire length of your loan. So in the end…how much is that week worth to you?

All right…the dealer can be a bad option for car financing – but what about those online places that can approve me in minutes?

In all honesty, the Internet can be a great place to secure approved car finance. With the ability to hop around and shop the different sites, you can definitely get some decent interest rates, sometimes comparable to those offered by a bank – plus you can get approved in minutes, and be driving your new car in a day or so. So what’s the catch? Well, the Internet has more than its fair share of scammers just looking to get your social security number and other vital information. If that car financing information ends up in the wrong hands…well, you can do the math! Plus, the ‘Net can be terribly impersonal at times – but it is still a viable option for approved car finance at competitive interest rates.

Impulsive and poorly made car financing options can literally cost you the price of an entire new car over the course of your life. Approved car finance is available through a number of outlets, and each has its own benefits and disadvantages. However, if you want to be able to afford actually driving your new car someplace other than home and work for the next few years, you may want to avoid the inflated car financing, AND those useless add-ons, offered by dealerships.

With over £1 billion loaned between 2006 and 2009 through an instant payday loan, also known as cash advance loans, it is clear that a growing number of people are choosing this loan option over the many other traditional options available for high street lenders.

There are several reasons why instant pay day loans are becoming popular, in particular they are easy to obtain and provide individuals with the specific amount of money they need. And they are ideal for people who need additional money when they have already spent their monthly salary on basic essentials.

However, while it is easy to understand why a growing number of people choose instant pay day loans over other loan types, it is also possible to identify the many uses of pay day loans.

The most common use of this type of loan is to fund any unexpected bills or repairs. In today’s economy more people are being careful with their money, yet despite how careful many people are sometimes an individual’s financial plans are thrown askew by an unanticipated financial problem that requires instantly funding. In particular, this may be repairing essential appliances, such as cookers, washing machines and fridge-freezers. Also, a number of people use these financial boosts for mechanical repairs that are urgently required.

But while these are often the main reasons why many individuals obtain these short term loans, a growing number of people also acquire these loans for financial help during the year, especially during birthdays and Christmas which can place a financial strain on individuals and families.

Another popular use of instant pay day loans is to provide additional cash for holidays or short breaks, either to fund the initial cost of booking a holiday or paying for a holiday in advance. This is a good way of ensuring individuals and families obtain a great holiday deal which may be on a special offer.

Clearly, there are a number of fantastic uses of these short term loans. Whichever reason you obtain an instant pay day loan it is essential to assess whether you will be able to repay the loan within the required amount of time, otherwise you could create a detrimental amount of debt that you cannot afford to settle.

Jobs in the finance industry are diverse and far reaching. Banking jobs have long been viewed as dull and uninteresting but this could not be further from the truth. With roles in financial planning, investment banking and real estate to name but a few, career paths in the finance industry are plentiful.

Commercial banking jobs are wide ranging, they offer great entry level positions and good career progression. The many large organisations in commercial banking also offer good employment security. Commercial banks provide employ more people than any other sector of the finance industry, they offer good opportunities to understand the world of business and interact with customers.

The world of corporate finance is wholly different as it usually entails working ‘in house’ using your technical knowledge to plan for a businesses future, the work is driven towards the growth of the business. Fundamentally jobs in this sector of the banking industry create value for their company, they are predominantly performance related so subsequently can be high pressure, although this pressure is elongated and based upon long term goals.

Financial planners carry out similar tasks to those in the corporate sphere; these jobs however are focussed upon helping individuals plan for their future. The work requires outstanding interpersonal skills while it can be ultimately rewarding; both financially and personally. For this role understanding of estate planning issues, investments and taxes is a prerequisite.

The field of insurance also offers a variety of finance jobs; insurance is increasingly becoming a lucrative field as more and more people become dependent upon it. Jobs in this sector include calculating risk and anticipating future problems. Job roles include underwriter, customer and sales representative, as well as asset manager. Today the insurance industry is trying to leave its negative image in the past and promote the idea that their industry is there to help people in times of need.

Investment banking has long been seen as the most lucrative sector in the financial industry. The job includes purchasing assets, trade securities and offering financial assistance. As well as large multinational investment banking firms there are smaller companies that operate on a more regional level. These jobs are important to world finance as the work larger companies undertake is often for governments.

Being a money manager is one of the most rewarding jobs in banking. It fundamentally involves the investment side of the stock market. Dealing in stocks and bonds makes up the majority of the work although freedom to work how you like is a large constituent of these jobs.

Unfortunately starting in money management is difficult, top companies only hire experienced individuals, although experience can be gained with local pension fund companies and insurance companies. Understanding portfolio theory, fixed income investments and gaining official qualifications will assist in getting this type of finance job.

Finally there is the financial field of real estate, jobs in this sector are diverse and vary from construction to mortgage brokering and leasing. With over a third of the world’s wealth tied up in real estate this is a financially rewarding sector to enter. The close ties real estate has with society in terms of infrastructure development gives these jobs a sense of social responsibility, while the work offers different challenges on a daily basis. Of all the jobs in banking this is often the most interesting field to enter.

As previously stated, jobs within the banking and financial industries vary greatly; with so many disparate fields there is much to offer prospective financiers. The skills needed in the banking industries are considerably unique to each field. However, if you feel you are shrewd with funds and in most cases great with people, working in the finance industry could be the career path for you.