Things To Remember When Borrowing Money

Whether you're starting a small business, remodeling your home or just paying some bills, from time to time you'll need to borrow money. Whether you choose to use your line of credit or take advantage of some equity in your home, you'll want to know what you're getting yourself into before you sign the deal. Here are some things to consider.

1- Shop for the best interest rate
The main thing that you'll be comparing when you're looking for a loan is the best interest rate, which is essentially the price of the money. It's easy to fall for a good sales pitch, but a prudent borrower does his homework. Ask several banks for quotes and then do the same with brokers. You'll get an idea of the price range, but don't be afraid to tell the lowest-priced broker that you think he can do better, especially if other quotes are close. Of course, you need to make sure that you're comparing apples to apples, so be certain that your loan quotes reflect the same amount and time period, and be sure to account for fees.

2- Consolidate your loan
Loan consolidation can have two advantages:
A- It's easier to manage one bill at the end of the month instead of three or more.
B- You can lock in a low interest rate.

Of course, you take a risk; if interest rates continue to drop, you may not be able to reconsolidate, which means you'll be paying more for your money. But if they rise, you'll be sitting pretty.
3- Use equity
Your home equity is actually your money, and sometimes it pays to use it. You can take equity out (essentially, get a check from the bank equal to some or all of your equity), or you can open a line of credit against your equity (essentially using your home as security for the loan). Because this is a secured loan, you should get a better interest rate than a credit card, but on the downside, if you default, you could lose your home. If you take out a home equity loan, make sure you do so to finance a worthwhile project.

Use that line of credit and whatever you do, avoid payday loans..

4- Utilize your line of credit
If you don't own a home or don't want to use your home equity, you can use your line of credit. Essentially we're talking about a credit card. While charging it is almost never the foundation of solid financial planning, a credit card has its merits. First, they're great in an emergency. Second, you won't have to justify your plan to anyone before you charge, which means that you have ample flexibility. On the downside, you're going to pay higher rates. However, you should always try to negotiate a lower rate with your credit card company. Remember; credit cards are a competitive business and it never hurts to ask for a deal.

5- Check the fine print
Whenever you sign a loan document, you'll need to check the details. Two big issues to keep in mind are default and early repayment. Default means that you did not pay on time, and you'll want to know when you're technically in default (30, 60, or 90 days), and what that means (does the whole balance become due; can they seize your assets?). On the other hand, you'll want to know about early repayment. It may sound odd, but some lenders charge a penalty for repaying early. After all, the sooner you pay, the less interest they make. So you'll want to know if you can do that without a penalty.

6- Avoid payday loans
Companies that advertise cash loans with no credit check and no collateral make their money by doing volume business and charging outrageously high rates (upwards of 300%) and penalties. Those companies prey on the desperate guys out there, and they should be avoided at all costs.

7- Maximize your credit score before you borrow
The price you pay for the loan will depend greatly on your credit, so if you're planning to borrow in the immediate future (six months out), check your score and see what you can do to improve it. If you've missed payments on credit cards and utilities, make sure that you make timely payments for the next six months. And take that time to clear up any mistakes or outstanding issues on your credit report.
Borrowing money
Shopping for a loan can seem like a daunting task, especially if you've never done it before. But in a lot of ways, a loan is just like buying a car or a major appliance; they all come with different features and prices. Once you get beyond the intimidation factor, you'll see that with multiple sources, you'll be able to compare apples to apples. So do your homework.

Source: Askmen.com

A call-girl's story

The world of the high-class escort is back in the news again. Lara, 29, charges clients £6,000 a day

Interview by Katy Guest, Published: 18 June 2006

Sex is too easy to get today. We live in a society where everything is easy, and that can be a turn-off. That's not what the men who contact me want. These are very wealthy and successful men, some from well-known companies, and they can get sex anywhere. They like to be challenged and want something more subtle, and the successful women in this business offer them that.

Seduction is an endangered skill, and that's my favourite part of the process. When I interact with someone, even from the first email, what we are trying to do is seduce each other. It's like a dance. I use the term " companionship" for what I do, because there is a spectrum. On one side you have straightforward sex for money, and on the other you have full-blown relationships. I see myself as being somewhere along that continuum.

I charge £6,000 a day, and spend no less than two days with a client. I do it no more than once a month. I always take time to get to know the person first - we email, have lunch and talk on the phone - so I have never been in a situation where I have felt scared. We might go to a social or business event - they introduce me as their friend from wherever- or it might be more personal and romantic. They know that we're going to get some private time afterwards, but the sex is just the icing on the cake.

Most men find me through my website, and I also have a social network of wealthy friends. I don't have a full-time job but I have things that I'm doing. The men prefer it that way, and it's important psychologically: you don't get too immersed in their world.

So much today is not clear. If you go on a date is the guy supposed to open the door for you or not? Are you supposed to offer to pay? In this sort of relationship, each party's responsibilities are clearer. I enjoy that. Men I go out with are very intelligent people, and it is a mutually stimulating environment.

I think it is a common female fantasy to be in this business. I get a lot of emails saying: "It's so exciting, I've always wanted to do it." Anyone can do it but the numbers are against it: it's like wanting to be a ballet dancer. I always wanted to do it, since I was little. It was mysterious, and I like intelligent and influential men. The women in this business are quite influential, too. I've helped people close business deals. There is that free consultation component.

I had to learn myself. About two years ago, I saw the blogging phenomenon and thought, what can I do that's novel? I thought the business was sleazy, and I wanted to make it less so. My first time I was nervous, but we had fun and still keep in touch.

An escort needs a combination of talents. You don't need to be a supermodel - I'm a tall, slim brunette, but there are more beautiful women out there. It can be intimidating for men if you are incredibly stunning. They want someone subtle, intelligent and well versed in life. They have to feel comfortable talking to you about anything, whether business or their family.

About 50 per cent are married. I've heard that sometimes their wives know. In a lot of cases they no longer have sex. Surprisingly, some women feel less threatened if a man hires someone like me than if he had an affair with his secretary. I don't see what I do as wrong. If he's married then something is dysfunctional or some part of the relationship must be broken. Maybe he can't get divorced because he's worth half a billion pounds.

I do have relationships, with clients and others. It can be tricky. I think jealousy is a human trait, and a healthy one, so I treat it on a case-by-case basis. You have to judge at what stage to tell them. Fundamentally I am a romantic person, and I don't feel that's a contradiction. I want to share as much of my life as I can with my partner, and eventually all of my life. I do want to get married. There is a strong romantic component to what I do: it's all about mystery and seduction. If we have a good time for a weekend then sometimes it is quite sad to leave.

I'm not worried that my future husband might be appalled by what I do. The men I get along with are typically very moral people but they have their own internal compass. It means they are a little unconventional, and that's why we have that fit. My past doesn't change who I am: it just makes me a little more colourful. Recently, the majority of my [non-paying] partners have known what I do - or part of it. You don't have to tell everything.

My family don't know what I do, and I would prefer them not to. My close friends know. My ability to pull it off doesn't surprise them - they know I'm good at multi-tasking - and I don't think anyone has been shocked.

For me, this is a temporary thing, although I cannot put an exact date on when I will stop. It's a very good way to learn about people - what makes them happy and sad.

I have also changed my approach to wealth: I get to see extremely wealthy people and they face the same challenges as everyone else. It makes me more philosophical. It doesn't mean anything to have an apartment in New York and a house in London and a private jet: you may be locked into an unhappy marriage or not able to find a woman to share your life with. It actually becomes harder to date - you don't know who's genuinely looking for love and who's looking at your money. For lots of young, successful men, wealth above a certain level can be a barrier to a good relationship.

The reality is that the market for this is very small. It's kind of like a bell curve. Most of the market is in the middle - straightforward sex for money. The higher end requires not just more money but more time. And in our society time is the most precious thing of all.

Source: http://news.independent.co.uk/people/profiles/article1090133.ece

Lara's blog: http://www.jetsetblog.com/