Money: Build, Don't Blow, Your Annual Bonus!
By Kevein Smith
Consolidation loans merge all your debts and bills into a single payment.
This means, that if you have several monthly payments or a number of
different loans, you can make things easier by consolidating them and
taking one single loan to pay off the total debt.
Human desires are unlimited but the finance that one acquires always
seems to be scarce.
The paycheque serves as the collateral for the purpose. Borrowers may
get an extension in the term of repayment of payday loans.
In the first case, the loan is approved quickly because of a special
requirement of borrower. Borrowers, in a few cases require loan urgently.
Car loans, student loans, credit card debt and other types of personal
loans can often be included in the consolidation loans. These loans will in
effect pay off your old loans and you will have one, larger loan to pay off.
Build, Don't Blow, Your Annual Bonus
More and more companies are incorporating a bonus structure into
compensation programs. Bonuses are generally based on performance and
are tax advantageous for companies. If you're one of the fortunate ones
who will receive a bonus this year, what will you do with it?
"The key to using your bonus wisely is to find the right balance for you,"
says Linda Put, a CIBC Imperial Service financial adviser based in Surrey,
B.C. "Because everyone's situation is different, water cooler advice won't
help you to maximize your financial potential."
In making important financial decisions, the most powerful information you
can have is to understand where you are and where you want to be
financially. "Having a financial plan, whether formal or informal, can help
you prioritize your overall goals and allow you to see more clearly how your
bonus fits into that picture," says Put. "Seek the advice of a professional
who understands the whole picture, not just investments." To help you
understand how to make the most of your bonus, Put offers the
+ Get professional advice: Every person is unique, with different financial
situations, comfort levels and timelines. A financial adviser can help you
understand your financial situation and work with you to help you achieve
your goals. For example, you may choose to use your bonus to pay down
debt, to contribute to your RRSP, or a combination of the two.
For the purpose of ease in recognition, we will refer to the first case of
instant loans as fast loans and the second class of instant loans as instant
An individual who is caught in the midst of debt trap can take a debt
consolidation loan, to reduce the debt burden and become debt free in
the future by paying the existing debts.
Consolidation loans have loan terms ranging from 10 - 30 years. A good
consolidation loan would be that which fits beautifully in your financial
situation. Consolidation loans are advantageous to almost anyone because
of the ease with which you can customize them to your financial stability
and your choice.
The reason is that personal loans are all purpose loans and impart a
freedom that is unlikely in any other loan type. A secured personal loan
would be a loan taken for any peculiar reason and is secured on your
assets or home.
Unsecured loans, on the other hand, require no collateral but almost
always have a higher interest rate than secured loans.
+ Look at the whole picture: It's important to look at your current
financial picture ¨C the money you owe today and the money you want to
put away for your future. If paying off a debt, like your mortgage, will
prevent you from capitalizing on an investment opportunity, you need to
determine which will pay you the most in the end. Again, it's important to
work with a qualified financial adviser who will look at your specific
situation and plan accordingly.
+ Pay yourself first: If you get RRSP loans every year, why not use this
bonus to invest in your future and break the loan cycle? Then set up a
pre-authorized payment plan so you can invest in your RRSP monthly and
avoid the cash scramble in February. When the bonus comes in, you'll
have the financial freedom to make the financial choice that's right for
+ Go on, treat yourself: The best part about advance planning and
factoring your bonus into your overall financial plan, says Put, is the
opportunity you will have to treat yourself with some of the funds. With
the help of your financial adviser and your financial plan, you will stay in
control of your financial affairs and can look forward to reaping the
rewards of the plan, and your bonus. So go ahead and treat yourself to
something special. After all, you've earned it!
This article is intended to provide general information and should not be
construed as specific advice. This article is not applicable in Quebec. The
loan can be repaid over any term between 5 and 25 years, depending on
your available income and the amount of equity in the property that is to
provide the security for the loan.
A special type of instant loan is payday loan, which are characteristically
fast in approval. Borrowers who have emptied their monthly paycheque
and need money to disburse an occasional or regular expense will use a
And with secured personal loan browsing can land you with the perfect
deal that synchronizes with your financial conditions.
Learn more ways to reduce debts today. There are lenders in the UK who
can arrange loan for you and that too at a lower rate of interest.
Direct loans are convenient, flexible and simple. A Direct loan is a loan by a
lender to a customer without the use of a third party. This type of loan
enables the lender to have greater discretion in the distribution of loans.
About the Author
Learn more ways to reduce debts today.
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