Mortgages, Short Term Loan, Payday Loans, A boon or bane for the economy?

by ExpertBlogger 2. October 2018 15:00

The attractive option of getting the loan on same day and repaying it back the next payday without suffering a huge debt or credit check is the major advantage of payday loans. A small provisional loan taken to conduit the borrower's cash flow gap between paydays, is referred to as a payday loan. They are loose, but have high-interest and for a short-term and can be aptly referred as micro loans. These loans are usually settled in cash, and the lender processes the cheque or takes out from the borrower's active account on the date of maturity of the loan. 

As evident from the name, the loans are usually taken and repaid within a period as long as of 30 days. Also, the payday loans are usually repaid on next payday, therefore one can see that they are always in control of their payday loans irrespective of what others would say. Giving each one of us a viewpoint that we are our own masters of our payday loans is the most fruitful strategy charted by the providers of these loans. This is because the payday loans have highest rate of interest as they are repaid in less than a span of 30 days. 

So with this the banks and the lenders will definitely opt for Payday loans because even if a bank has or bad loans and stuff. For the lender it is low hanging fruit and as it is an easy money. However, according to a research survey it has been recorded that after subtracting the fixed operational cost and the default losses, the payday loans company does not make considerable profit. There have been cases of fake cheques presented by borrowers as security, and as a result, such cheques bounce when being en-cashed by the bank.

In developing economies like India payday loans are not very popular because of the gravest reasons like a pile-up of bad loans, Indian Banks seem to be pursuing the wrong race. The non-performing assets (NPA) accumulated by Indian lenders are higher than those of Indian banks as contrast to many of the major economies of the world, including USA, UK, China and Japan. Indian banks' gross non-performing assets (NPAs), or bad loans, stand at INR 10.25 lakh crore reported on 31 March 2018. This pie of the cake now accounts for 11.8 percent of the total loans given by the banking industry. For financial year 2018, the total bad loans of these banks rose by a whopping amount of INR 3.13 lakh crores.  It will take years before these banks can get rid of NPAs, accumulated over the years on account of multiple factors.

 Also even the lenders are not easy-going on their customers. Quite often these payday lenders are criticized. They are called the merciless loan sharks attacking the poorer section, low income areas, which are unable to realize the time value of money. Many people find the interest rate on the payday loan puts the weaker section in difficulties, whereas the richer community can afford to pay even up to 25% interest or so on their credit cards.

Pay-day loan is a benefit for customers because they can save you in times of distress. Had it been possible to know or predict financial emergencies, then payday loans would not have happened! Many at times you may find yourself caught in unexpected situations and you may not be well equipped to deal with the situation. Like when you fall sick, or your car breaks down, you would have to bear on your planning budget for the month. So for these kinds of short-term money crunch situations, payday loans are of great help as one can get instant cash right when needed. Pay-day loans can be applied for online as well and the money gets deposited into lender’s account directly and instantly.

To conclude, in the long run if the bad loans increased due to pay day loans then it would be because of the lenders who do not do a thorough check of the credit history of the customers or burrowers. However the things go smoothly and if proper background checks are conducted on both sides then they are very beneficial for the middle income strata and also the banks or financial institutes that give these micro loans on short-term basis.

Is Social Media is a threat to privacy?

by ExpertBlogger 8. September 2018 14:51

Facebook is the largest social media website for bringing people on the same platform and help them share their lives with each other. Facebook is not just a platform but it has turned into a global phenomenon that has turned the world of networking by 360 degrees. The users of Facebook connect with each other socially, share their moments and events of life, their favorite things in life, their pictures etc. The users who subscribe for Facebook have been given privacy rights to secure their profiles and data from other users of Facebook not known to them and also if there is any information they want to share among the selected group of people and not with an entire list of friends. A user can safeguard his/her images to be downloaded or saved by others and also there is a block setting provided to each user in order to screen any other user that has been a trouble to an individual.

Despite all the privacy control that a user has been given by Facebook, the data that is stored at Facebook servers are the biggest threat to a user’s privacy. Facebook stores and harvest this data about people for various marketing searches. According to a legislation passed by US government on 23rd March 2018 all over the world the governments can use the “private online data” of the subscribers of Facebook for prosecution and investigation purposes, hence making data harvesting a legal act which can use by governments.

Using data from unconnected people and mapping the common factors from them for friend’s suggestion, a feature that has been added and it works based on the personal information that a user provides about himself through Facebook, makes the information provided by the user vulnerable for hackers. A person who has a Facebook account can be searched all over the applications like Google, Truecaller etc. Google search can be restricted now upon changing the privacy settings however the linkage of old data at Facebook servers still persists on Google. Facebook constantly asks you to provide your phone number for account retrieval process in case the user forgets his/her password. 

Then come the sales and marketing strategies that are now focused on those sets of people that have Facebook account and their activities through their online accounts may give myriads patterns of consumer behavioral statistics which are gathered from each user’s account without his/her information and used in market research by the businesses. Every click a user does is being captured by Facebook’s intuitive algorithms and are used by various organizations including the government agencies to keep a tap on everyone in the world who has the social network. The pictures, the statuses, and the various activities in the form of check-ins are prone to misuse by strangers and hackers. In the past before Facebook has given full access to the user to protect the account from everyone in the world the material posted by the users online was very much hackable and had led to crimes in the society. 

There are thousands of advertisements from all over the world that are posted on the Facebook and they keep flashing every now and then, if the user clicks on any one of the e-commerce websites and browse through few items listed there, however, don’t buy any, then those products would keep lingering onto your Facebook wall until you buy them. There is no transparency provided by Facebook to the use or misuse of an end user’s data. The ethical use of a person’s data is allowed but not selling of the information that he/she does not wants to share. A user’s personal data and the searches that are made by him/her are sold to various parties for growing their businesses and also to flourish Facebook’s business of creating virtual social networks and making the public believe that in the era of world wide web anything that is not online is something which not technologically savvy. So, people, in order to gain social acceptance in the society and to fall prey to this game of virtual networks, to create online accounts and then get addicted to the ways of it and gradually becoming the reason of the huge empire formed on the use of online data. 

Rise & Fall of Crypto, someone’s gain is someone’s loos

by ExpertBlogger 6. February 2018 17:42

It is not that long when I was shopping for holidays and cash counter the cashier were just having general conversation and he asked me that did you see bitcoin it is going to touch 20k, I said yes but “Isn’t that imaginary and very volatile” I said he said “yes” but he was looking happy, “Do you have any?” I asked, he said yes I have and I am going to buy more, I was imagining that he Is cashier and who earn his money working hard and he is putting that money into something probably he don’t understand. May be some has told him that this is good investment to grow your money. Now after 2 months when I saw bitcoin rate, it reminded me of that cashier and I was thinking that what would have happen to his hard earned money, does he sold in time or he was waiting for price to go up and now his investment is cut into half.

I was reading about cryptocurrency and I was bit skeptical that should go for it or not, one of my friend suggested that you should buy some but again I said I don’t have strong heart that I can stand if I lose all my money in just couple of hours. There might been some different point of view looking at it but if you apply fundamental of investment that if you are taking highest possible risk to make highest money in small time then you should be strong enough to handle any situation which you have to face may be this could be good or bad. But again when we look at crypto this not regulated if you have lot of money and you lose there is no one who can take responsibility of that. 

 

According to many analysts this is something driving by the speculation and interest of people in something new and everyone is looking for making quick bucks and run out of this , they still think that our economy is not mature enough to handle this type of alternative currency and trade in day todays activities , when someone say it is currency then it should have some fixed value which someone cash in but rather that everyone use it as some kind of equity stock where there is not actual value for buying but we are just investing on the speculated value.

We don’t know that in the long term this might pick up or stables but at this point analysts only saying that some people made lot of money overnight and some people lost lot of money those who earn they are happy they are keeping their profits and again betting for good time to come.

Crypto can go in any direction it not even advice that be away from that because you might lose something which will be great down the line after 5 years but analysts fair advice it don’t do over of anything and just like alternative word to this currency, your investment should be like yet another alternative. 

"Any Investment is good till you know what you are doing"

New Year, What's Next!!

by ExpertBlogger 2. January 2018 17:41

New Year is already here and everyone has welcomed New Year with joy and fresh resolution for coming year, it is always amazing to welcome New Year with fresh attitude and new perspective, looking at what we have done wrong in past year and correcting those mistake and doing better in coming days.

We always take a resolution for yourself and at this new year when we entering into 2018 we wish that people should consider and take up things which are generally overlooked we should take resolution to take make this world a better place and think that how we can make our contribution to the society in term of helping those who are in need and giving them level field to compete in this competitive world.

So this New Year talk take up resolution to do some social work or community work. Spend you valuable time with people who do not have anybody around , visit places where humanity still exists and finally to some charity which will help those next generation for better tomorrow , and when you are doing this have you kids with you because that is most important thing because you need to pass these values to next generation and your kids will learn this great thing you are doing and encourage them to care about society and increase their social awareness which is most important thing to have.

We have seen that these days people are connected through digital media but in really they are socially so much apart that it is very difficult to do social interaction as everybody feels like it is the last thing they need to consider and believe me this gap is just going to increase in coming days and we have huge responsibility in our hand to teach our kids that , this is not just you matters , this is us , people around us makes us social and responsible. If we could not do this then we will be living in isolated world in crowded city.

This New Year let look around and try to do thing which we are missing in this digital world, give time to real people rather than phone calls and video call. Feel the real touch and hold the hand who need you hand because at the end you take nothing with you it is your memories and how people see you when you are gone.

And lastly have Great Year ahead!!

Thinking about Investments? time to be serious!!

by ExpertBlogger 20. March 2017 12:16

It was normal day as usual and I read something on social media it was kind of funny but stuck in my mind somebody has wrote that, education, carrier, kids , progress, big house big dreams , who the hell discovered this , weren’t we happy in caves eating roots and staying happily with family , I laughed and told my wife , these people are crazy their thinking is beyond our imagination this was one side of thinking for that day but later somebody came to me and started discussing about the investments and securing your future when you grow older and suddenly  I started feeling that I am already old.

Oh my god, I am getting older and I have not planned my future yet. Is it too late, what should I do? Where should I invest? Who should I see? These question ghosted me as lighting strike the tree. I started running like chicken without head and asking bunch of question to everyone. Then I realize that nothing going to change overnight and there is never too late for anything, first I just have to relax and take a good finance advice. Now I don’t have that kind of money that I need any professional financial adviser but researching about knowing that where can I grow my money without risking my future is worth a try.

I am not always good at managing my money, I know fitty percentage of people are like me, oh my look I started talking about percentage and stuff. No , but on serious node everybody should be aware of some sort of investments that could be anything which will encourage you to save and use that money for some good purpose like kids college education or marriage and may be your long waited dream to have world tour.

Many people want to see their money every day because they feel that what if I need that money tomorrow, that means they always want money to be liquid but liquid money is dead money it does not generate any return, you can do CD’s but again those percentage and not that big you are just sitting on money which value is getting deprecated day by day. You need to understand that people are multiplying their money and on other hand you have holding your money for yourself.

You can choose any path of investing but any little investment you do it do is going to grow much bigger in future , it could be stock market, mutual funds, housing market, land or even in any startup company. Easiest way to put your money in mutual funds because you have low risk low income but your investments will always has the touch of market, instead we always wait for right time.

Believe me there are some people who are doing trading and stock investment for living but off Course you will not able to do it because it needs lots of research and it’s a full time job, but what you can do it have your money as Systematic investment plan which will invest your money over the long period and you get opportunity to invest in every tread of market up down.

So have you invested yet?? But waiting for good time.