Personal Finance Advice

As online banking has grown in use over the last few years what has surprisingly become popular recently have been so called cash advance or payday loans over the internet.  While relatively expensive compared to normal long term loans, at times they do come in handy and more and more people are turning to them in an emergency.

A case may arise where you need money immediately and it’s just not feasible to get a loan from a regular bank or borrow from friends and family.  This is when the emergency personal loan comes into play.  These are pretty much unsecured short term loans with a high annual interest rate.  The main reason it has become so popular is because they don’t perform a credit check so even people with bad credit can get these types of loans.

Most institutions will only have few basic requirements though, usually that you are employed with a minimum salary requirement and that you have a checking account in good standing.  Loan amounts can range between $250-$2500, just enough to get you by a rough spot.

But there are drawbacks, because these are unsecured loans, they are considered high risk from the lender’s point of view. So they charge a relatively high interest rate.  It’s pretty much only worth getting if you absolutely need money now and know that you will be able to pay it back within a short time frame.

Why would someone get this type of loan?  Let’s say you were short of cash and had a very important bill to pay and that if you were late it would negatively affect your credit score.  So while these loans aren’t cheap, it would be well worth it if it could save you money over the long run from not having to pay higher interest rates for years to come on anything from credit cards to financing the future purchase of a car or home.

Although the price of oil has stabilized recently, due to forecasts of decreased worldwide demand and the possibility of OPEC countries increasing their production, Americans haven’t really felt the effects so far from it’s sharp climb this year.  That could all change soon.

Many analysts agree that the current price of oil is abnormally high.  While some of it can be attributed to the falling value of the dollar, many different factors have conspired to produce these record price levels.  Though oil prices have risen by more than 50% over the past few months, the price of gasoline hasn’t kept pace.

If you ask any American on the street, they’ll tell you the price of gas is already too high, but signs are already pointing to higher gas prices this winter.  Normally this is  a period when prices typically fall before rising again in the spring in anticipation of the summer driving season.  Unless oil prices begin to fall to more reasonable levels soon, some analysts predict the price of a gallon of gas could hit $4 by next summer.

Passengers who haven’t already booked flights for the holiday season could also see a sharp increase soon, as seasonal demand and higher jet fuel prices will force airliners to raise ticket prices.  Homeowners will also see higher heating bills this winter.

Many Americans have been sheltered from the full blow of the higher prices so far, due to the fact that the U.S. has been using it’s large crude oil reserves rather than purchasing oil at these high current prices.  However as our existing inventory begins to shrink, we won’t be able to avoid the hit much longer. 

With the price of oil inching closer to $100 a barrel everyday, home heating bills will rise again this winter.  Those that use home heating oil will be hit the hardest but even those who use natural gas and electric heating systems won’t be spared a hit to the wallet.

While only a minority of the country still uses oil to heat their homes, estimated at around 7%, they are predominantly located in the northeast, where temperatures have been unseasonably warm the past 2 years.  If the weather returns to its normal pattern in the region, consumers there could see their bills rise higher than even what most analysts are anticipating.

But it’s not too late to get ready.  While it can be expensive to convert heating systems, natural gas is substantially cheaper than oil heating and will save you money over the long run.  Utility companies may offer discounts for new customers and your local government will often offer tax credits for the installation of a natural gas heating system as well as for the disposal of your old oil tank.

If you live in an old house, getting new triple paned windows can save you a significant amount of money.  Installing new insulation is another popular method to help conserve heat. 

If the above things are out of your price range then there are still many little things you can do as well, as there are many web sites out there that offer tips on how to “winterize” your home.  If your from a qualified low income family, many local governments will offer programs that provide a subsidy to help assist your heating needs.