8Oct2021

How to Pay Off Loans Faster

October 8, 2021

how to pay off loans faster, how to pay off loans quickly, pay off loans faster Budgeting, Quick Loans, Short Term Loans

Is one of your financial goals for this year to pay off your loans faster? Here are some ways to do it effectively.

Getting rid of your debt sooner is vital because the longer you put off repayments, the more you’ll end up paying as interest continues to accrue on your outstanding loan balance. Also, if you get rid of your debt faster, there’s a chance to improve your credit score.

Tips to Paying Off Loans Quickly

When it comes to loan repayments, there are a few easy ways you may be able to deal with it sooner. In turn, it can reduce the overall amount you’ll have to pay.

Tackle how to pay off your loans quickly and start to live a debt-free life by trying these best practices.

Making Additional Payments

First, ask your lender about their repayment flexibility to avoid winding up being penalised for making additional payments. Check with your lender if they allow increased repayment at all and if it’s applicable to your loan type.

Usually, with variable-rate loans, you’ll be allowed to do so. Upping the amount you repay with a variable interest rate can lessen the interest you’ll be charged, which saves you money.

While most fixed-rate loans don’t allow making additional payments, there may be some that do. However, the amount that can be repaid early may be limited. Early repayment fees and early exit fees may also be included.

Changing Payment Frequency

For a bigger impact on your loan, increase the frequency of your payments. Generally, the more often you repay, the less interest you’ll have to pay off as interest is calculated daily.

Instead of monthly, you can switch to making fortnightly repayments, which make you pay your loan off quickly. In a year, there are 26 fortnights. You may pay off an extra two weeks without noticing a huge difference compared to monthly repayments.

Refinancing Current Loans

It’s good to always look out for better loan interest rates. With refinancing to a lower interest rate, you’ll have less monthly repayments. This can save you money over the course of the loan term.

Given you are in a healthy financial standing, you may be able to negotiate a better interest rate on your loan. In this event, keep doing the same repayments you were required so you can pay off your loan faster.

Paying Off Loans Faster Can Improve Credit Score

It’s good to improve your credit score. A trick to do this is to avoid late repayments at all costs. Or better yet, pay off your loans faster.

We know that payment history has a huge effect on anyone’s credit score. It’s better to have paid-off debts like old student loans on your record. This shows you were responsible in handling your debts.

This may take several weeks or months for the impact to show on your score. The sooner you start working on improving your credit, the sooner you’ll see results.

Talk to your lender to know your options. But, make sure it won’t increase your loan term and cost you extra fees.

For more general financial advice, visit the Cigno Loans blog, or contact us today about an easy and fuss-free loan.

9Dec2019

How Fast Can You Get a Loan?

December 9, 2019

Dean Olave

Quick Loans

When you need money, you often need it quickly. Whether it’s an unexpectedly high power bill, unforeseen medical costs or an important purchase, some expenses just can’t wait for your next pay day.

So, the question is: Just how fast can you get a loan?

The short answer is very fast. The long answer is below.

How fast can you get a loan with Cigno?

Our team specialises in quick and small cash loans up to $1,000. We can often get your application approved and your funds transferred on the same day that you apply. If you apply after 5.00pm AEST, you’ll usually receive your money the next morning. And yes, this includes weekends.

Cigno’s online application platform is open 24/7, which means you can apply anytime from anywhere and get your money in less than 24 hours.

How fast can you get a loan with a bank?

Getting Loan at the Bank | Cigno Loans

Banks and credit unions are great for getting larger loans, but they’re not particularly helpful when it comes to quick, small loans. It can take several days or even weeks for a bank to review your application. Many institutions rely on staff to manually review loan applications, which takes longer and makes it difficult to predict when your application will be approved.

Then you have to wait for the money to transfer. If you’re getting a loan from your regular bank, this may only take 1 business day. However, if you’re borrowing from a different bank, it could take several days or weeks for the cash to come through.

How fast can you get a loan with a peer-to-peer lender?

A third alternative you may not have considered is peer-to-peer lending. A P2P lender matches you with an investor who provides the cash.

On the plus side, getting approved by a P2P lender can be almost as quick as getting approved for a payday loan. But getting the actual money can take up to a week, as the company will need to find an appropriate investor and make the arrangements with them.

How do I get a fast loan?

Bank Statements | Cigno Loans

Whether you choose a bank, peer-to-peer lender or short-term finance specialist like Cigno, there are a few general tips that can help you get approved and receive your money sooner.

Be prepared. Gather all the necessary documents and information before beginning your application. The files you need will vary depending on your lender, but they will typically ask for recent bank statements and photo ID as a minimum. Having all your information ready to go will save you from rummaging through desk drawers or clicking through your computer files during the application.
Check your credit rating. Finding a lender who will approve your application can be a time-consuming process, so it helps to know from the get-go if your credit history might be an obstacle. If you see in advance that your credit rating is low, you can avoid wasting time with any institutions that are notoriously reluctant to consider loans for people with bad credit.
Complete the forms carefully. A simple mistake on your application could cost you an extra day while the lender waits for you to correct the error and resend. Double-check that all the details are correct and accurate before you submit.

Feel free to contact our friendly team if you’d like more advice for making sure your loan gets approved as quickly as possible.

2Dec2019

Christmas Gifts Or Boxing Day Sales

December 2, 2019

Henry Mabana

quick loans, quick loans australia, quick loans online Quick Loans

In ecommerce, retailers get their pre-Christmas run in until the cut off. Before Christmas even happens, they will kick off their post-Christmas / Boxing Day sales.

For retailers, Christmas is effectively over once the pre-Christmas delivery cut off past.

“We always try to err on the side of being a bit conservative and once we are no longer confident gifts will get there by Christmas, we start our sale.” — Kate Morris, founder of Adore Beauty

Boxing Day sales

With more than $25 million turn over annually, many expect trade at the retailer to be strong during the sale.

As Australia’s biggest retail body predict, shoppers will show up around the country for Boxing Day sales. With pretty good deals and offers, people do spend more money at this time.

Although sales will start before Christmas, expects Boxing Day to be busy for online trade.

There’s been a shift towards online and mobile shopping as Australia’s changing Boxing Day shopping habits. Some people still like to run through the doors on Boxing Day morning though.

To avoid stress, Australians look for the best deals before Boxing Day, so expect to see sales appear even before the day itself.

With major retail chains, sales are not limited to online. Although, the big retailers are holding out until Boxing Day.

Christmas Gifts Or Boxing Day Sales

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Holding firm

The Australian Retailers Association (ARA) expects the Boxing Day sales and the post-Christmas period to be strong.

“Boxing Day is still a very important point in the retail calendar and I suppose some try and get the competitive advantage by going earlier but the majority try and keep their margin as long as they can,” — Russell Zimmerman, ARA head

Although, also consider a chance of retail fatigue as most customers are already done with their Christmas shopping.

Quick loans in Australia

In case you find your cash won’t suffice to the upcoming sales, you can apply for quick loans online in Australia.

Cigno Loans can help you apply for quick loans — which can be repaid over a lesser time period.

The online application makes the process fast and simple. Hence, fast turnaround time and approval for borrowers with urgent needs.

With Cigno, get up to $1,000 paid directly into your account.

Apply now!

29Oct2019

Ways To Micro Invest Your Tax Return

October 29, 2019

Henry Mabana

quick loans, quick loans australia, quick loans online Quick Loans

What is micro-investing?

With micro-investing, you invest small amounts of money to build an investment balance. If you constantly make small contributions over time, you can earn more — more than if your money is in a savings account.

Say, with your debit card, you purchase something for $4.70. The total purchase amount is $5 as it’s rounded up. The 30 cents goes into your investment fund — small amounts that add up to a considerable investment balance over time.

What you can also do is to set up a regular recurring investment or deposit lump sums into your investment fund. These are then invested into a portfolio of shares or low-cost exchange traded funds (ETFs).

You can monitor your account balance through apps or online.

There are fees involved in micro-investment namely brokerage fees, subscription or management fees, cancellation fees, withdraw fees, transaction fees, and account opening fees, among others.

Micro-investing in Australia?

Micro-investing is still quite new in Australia. There are some spare change apps now for Aussies, which let them invest small amounts at a time into the stock market. Check these apps below.

Raiz Invest

Raiz Invest helps you save & invest starting with virtual spare change from your everyday purchases and invest this into a diversified portfolio of stocks and bonds. You can easily get started in minutes: anytime, anywhere.

Raiz Invest app

FirstStep

Need help saving? FirstStep helps you automatically save and invest your loose change.

Features

Open an account in minutes
Set a goal and track your progress
A professional investment account
Build a personalised and invest in Tech, Ethical, Asia and Health trends
Automatically invest loose change from everyday purchases
Set recurring deposits as low as $5
Check your account value from anywhere in the world
Withdraw to your bank account at any time
Automatic spend categorisation (Beta)
Timely investment notifications
Fast and friendly support via chat
Tips and tricks to help you become a pro with money

FirstStep app

Ways To Micro Invest Your Tax Return

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CommSec Pocket

CommSec Pocket lets you invest anytime, anywhere, with as little as $50. Choose from seven themes to easily invest in something that appeals to you — like tech, sustainability leaders, or the biggest 200 companies on the Australian market.

CommSec Pocket app

Spaceship Voyager

Spaceship Voyager is an investment product designed to help you to invest and build wealth. There is no minimum investment and no fees on your first $5,000 invested. Spaceship Voyager makes investing simple, accessible and affordable for everyone.

Spaceship Voyager app

Quick loans in Australia

In case you find your cash won’t suffice to cover the bills, you can apply for quick loans online in Australia.

With Cigno Loans, get up to $1,000 paid directly into your account.

The online application makes the process fast and simple. Hence, fast turnaround time and approval for borrowers with urgent needs.

Cigno can help you to apply for quick loans, which can be repaid over a lesser time period.

Apply now!

23Jun2019

Salary Sacrifice: What Is It And How Does It Work?

June 23, 2019

Henry Mabana

quick loans, quick loans australia, quick loans online Quick Loans

A salary sacrifice arrangement (salary packaging or total remuneration packaging) is an arrangement between employer and employee — the employee agrees to forgo part of his future entitlement to salary or wages. In return, the employer provides the employee with benefits of the same value.

Salary sacrifice reduces your taxable income and the amount of tax you pay.

Seek financial advice before entering into this arrangement as it’s effectiveness depends on your financial situation.

Note: Before you start the work, set up the arrangement with your employer. It may be ineffective if it’s not put into place until after you have performed the work.

Employer and employee’s agreement

You can renegotiate a salary sacrifice arrangement. Employees can renegotiate amounts of wages or salary to be sacrificed before the start of their renewable contract — subject to the terms of any employment contract or industrial agreement.

Your employment contract may vary depending on the agreement between you and your employer. Although it can be verbal, it’s better to have an agreement in writing. It’s hard to establish the facts of your salary sacrifice arrangement if it’s undocumented.

Salary sacrifice contributions are considered to be from the employer, who’s only required to meet 9.5% super guarantee obligation.

If you choose to salary sacrifice 5% into your super, your employer would only have to contribute 4.5%. Although, if you choose 9.5% or more into your super, your employer would not be required to make any additional contributions.

The terms of the agreement should be in place to ensure your employer still pays you the 9.5% super guarantee.

Salary Sacrifice: What Is It And How Does It Work?

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Benefits provided in salary sacrifice arrangements

Generally, the types of benefits provided in salary sacrifice arrangements by employers include:

Fringe benefits — cars, property, expense payments
Exempt benefits — a briefcase, a portable electronic device, a tool of trade, and other work-related items
Super — salary sacrificed super contributions (taxed at 15%) are considered as employer super contributions. This reduces the superannuation to be paid by your employer when meeting their super obligations.

Implications of a salary sacrifice arrangement

Be mindful of the implications of the salary sacrifice arrangement on you and your employer. This may affect the following:

Super guarantee — your employer is required to only meet their 9.5% super guarantee obligation.
Assessable income — less income tax liability for you
Fringe benefits tax — your employer should pay the fringe benefits tax.
Deductible expense — your employer will not have to pay fringe benefits tax (FBT) if they pay for an expense, which you would normally get a tax deduction for.
Super — your earnings base may be reduced.
Reportable fringe benefits — you will need to show this amount on your tax return.

Quick loans from Cigno

If you’re under a salary sacrifice arrangement, your income may not suffice for now. You may find your cash won’t suffice to cover the bills.

You can apply for quick loans online in Australia.

With Cigno Loans, you can get up to $1000 paid directly into your account. The online application makes the process fast and simple. Hence, fast turnaround time and approval for borrowers with urgent needs.

Compared with competitors, Cigno can help you to apply for quick loans, which can be repaid over a lesser time period.