Earlier today, I asked visitors to let us know what kind of loan person they are. The five categories I included are listed below:

Are you the type that is …

• a. always borrowing money?
• b. occasionally borrowing money?
• c. seldom borrowing money, except for big ticket items?
• d. you only borrow money to increase your wealth?
• e. you never borrow?

I didn’t offer an explanation of each type, as each type of person varies in their attitudes to loans, money and wealth. So here goes…

“I’m always borrowing money: from the first day of the month to the last, and repayments are frequent, expensive and frustrating.”

Attitude: If you are always borrowing money, then perhaps you are facing cashflow problems. You are using regular loans or even an occasional cash advance to finance your daily life, such as shopping, leisure, bill paying, etc, perhaps through short term financing options.

Challenge: Obviously, you need to start somewhere and control the amount you are spending on loans, by cutting some costs, paying off the most expensive cards/loans, and using more of the leftover cash to finance regular bills.

“I usually borrow money to pay for things like Christmas, vacations, car repairs, luxury items, and so on. It’s convenient to borrow, and I usually repay on time.”

Attitude:If you are occasionally borrowing money, then perhaps you aren’t always being the most careful in your shopping habits. When you see something that is a little more expensive than you can afford right now, you are splurging on a short term loan or store finance to take the item home.

Challenge: You may find that you can refinance your current mortgage (as we did) and save a great deal on your payments every month.

“I only borrow for really big items or services that I can’t budget for from my regular income or savings: typically, new cars, houses, house renovations, weddings, and so on. I repay as quickly as possible to cut the interest payments and I always shop for the best loans.”

Attitude: You tend to shop for loans, like Mortgage Loans or Car Loans, and will probably spend as much time shopping for the loan as well as the item or service itself.

Challenge: Your challenge is that your savings amount isn’t really keeping up the with the changes in your life situation. Perhaps you’re not budgeting properly, or your budgets aren’t based on realistic expectations about your current situation.

“I only borrow money to increase my wealth. So I borrow money to invest in my business, or to invest in my real estate.”

Attitude: Likely you see using other people’s money (OPM) as a tool for you to get ahead personally without risking your own wealth. This act of leveraging your assets will also allow you to make extra returns on any money you do invest in any project.

Challenge: You really need to understand the kind of people who are lending to you, what drives them to lend, what risks they are taking, and how they will react if things do go wrong. And sometimes, they do!

“I simply never borrow money. I never have. I don’t now. I never will.”

Attitude: You are missing out on one of the greatest inventions of mankind: the ability to borrow or lend. Are you afraid that borrowing money will in some way diminish your power or freedom?

Challenge: Borrowing money appropriately isn’t a curse, it’s a privilege and a huge benefit allowing us to own things that previous generations couldn’t even dream about.

So what is your attitude? What kind of person are you? How would you define yourself in relation to borrowing?

Posted courtesy of Rebuild.org.

Ed. notes – This article was trimmed for style reasons from the original posting. It works better like this.

So you are thinking about cheap mortgages? Haven’t you heard that interest rates are rising? Property prices, too, in the UK, are sky high, and it’s getting difficult, if not impossible for people to purchase their first property. What ways can you use to get yourself on the property ladder less expensively, with less pressure, and less hassle?

1. Save for your deposit. When prices are as high as they are, you should be saving for your deposit. You may be lucky that one day prices start to fall, and suddenly, you’ll be eager and ready to pay up for your house, and include a nice hefty downpayment.

2. When you pay that downpayment, you’ll notice that your equity portion is much larger than the typical 0% on most mortgages (as they are 100% mortgages). Your interest rates should be a little cheaper, AND your monthly payments will be lower, too.

3. Don’t rush into any deals. It’s often more in the interests of the seller to rush a deal through, not in the interests of the buyer. So, dilly dally until you find the perfect house.

4. Deals may be about property, but they always involve people. If you don’t like the people on the other end of the deal, don’t be afraid to drop the deal, providing of course you haven’t signed any paperwork. It’s your money after all.

5. Do look around to compare mortgages. As you buy a property, so you should sign a mortgage, slowly, carefully and thoughtfully. Get the facts, think them over, then focus on the important points. And READ the agreement BEFORE you sign.

6. And, one of the great things about mortgages and inflation, you’ll find that in 20 years when you’re still paying your mortgage that you’ll likely be paying a much smaller portion of your salary than right now towards it. This long term view will help you to realize that the burden will be constant, but in this case inflation is your friend as it increases your salary but eats away at your debt!

So, relax, clear your mind, and think long term. Then you’ll find that mortgage hunting isn’t so stressful when you look at the big picture.

Is travel your dream? Do you fall asleep thinking of distant lands, and faraway places? Do you wish that you could close your business for a few extra weeks or months a year?

I know I do. Last night, my wife and I were enjoying a progam on Discovery that introduced the wines of Southern France. Every time we see that kind of program we feel very wistful and we wonder how we could take a little time out to enjoy the finer things in life; to reflect on where we’re going; and be thankful for all the good things we have.

Have money, but no time?

Of course, one of the biggest problems when you are an entrepreneur, whether or not you made it into the millionaire or billionaire categories, is that you rarely have the time to travel. You just have to be running your business. It’s an obsession for many entrepreneurs, indeed. When you’re at work, you’re busy; and when you’re away, your brain’s still busy.

So, if you find a quality bank that understands the pressures you face in your business, your career, or your wealth building activities, perhaps you’ll find it easier to explain to yourself in the mirror that taking that vacation trip might be just the thing. And you might find yourself successfully persuading yourself, too, knowing that your bank will take care of the finances while you are away. Wouldn’t that be good?

As if to encourage you, one of the perks of being a client of Coutts bank credit card services through Courtesy of Coutts is that you’ll find that you can earn extra reward points on your credit cards for bookings for hotels, car hire, flights, etc., and on easyJet tickets to 74 European destinations.

Additional services may also appeal, too, when you travel: including Insurance, European car breakdown cover, Sentinel Card Protection, Priority Pass cards for executive lounges, Concierge and Assistance Service, Purchase Protection, and Currency Delivery Services. As if that’s not enough, you can always travel to distant places that also have branches of Coutts.

Post reviewed by Courtesy of Coutts.