3 Things You Need to Know Before Taking a Payday Loan

As inflation continues to rise across the UK, the disposable income levels of British citizens have come under sharp focus.

The most recent studies have been carried out by the Resolution Foundation, who have revealed that only the top 1% of households in the UK have fully recovered from the financial crisis.

As citizens continue to struggle with real wage stagnation and the rising cost of living, there may be a growing temptation to seek out unsecured, short-term loans. While this can provide relief, however, it is important to consider the following before taking out a payday loan.

  1. Payday Loans Still Carry Fixed Interest Rates

While the days of excessive interest rates on payday loans may have come to an end, it is still important to understand the nature of short-term lending and calculate the precise amount you will be required to pay back.

Regulations introduced in 2015 by the Financial Conduct Authority (FCA) capped all payday loan interest rates at 0.8% a day, minimising the cost of borrowing nationwide. This is still slightly higher than secured loans, however, so you must factor this when determining whether or not you can make a full repayment according to the terms of the agreement.

So, do your own calculations when determining how much you can actually afford to borrow, before reading through the necessary small print to highlight any other factors that may affect your repayment.

  1. Not All Lenders Are Created Equal

While all payday loan firms offer a similar service, they are not all created equal. There are even some that have forged their own unique niche within the marketplace, to the point where they would even classify themselves as payday loan firms.

Take Smart Pig, for example, which delivers a loan service aimed at students and positioned itself as a viable alternative to a classic payday loan. Not only does it cap interest rates at 0.8% per day as stipulated, but it has also placed further restrictions and eliminated hidden fees to create a fair pricing structure.

It is important to keep this in mind, as ideally you should seek out specialist short-term loans that are designed to meet your specific circumstances.

  1. Payday Loans Are There for Emergencies, Not Cash-flow Shortages

While payday loans have historically been demonized, they do serve a viable purpose in the modern age so long as they are used responsibly.

More specifically, they should only ever be used to cover an unexpected payment or emergency, so long as the value can be comfortably repaid from your next pay-packet. Conversely, they should not be used to fund a lifestyle or plug gaps in your cash-flow, as this becomes unsustainable due to the mounting interest and late payment charges associated by some operators.

Best Ways to Obtain Payday Loans

Personal loans can be started at any point in time, by selecting one of the vendors that can offer you a good rate of interest. You can apply with an application form and simple formalities for the submission of the address and your Id proofs.  These documents can be submitted securely online through websites and can be accepted by vendors on time.  So, you can start with the application ASAP, and you can check the status online through their websites as well.  It will help you in letting you know where your application has reached now.

The interest rates on the payday loans Fresno Ca can vary from bank to bank, and you will have access to them very quickly. Their interest rates can be fixed or can be on a variable model.  They can range from 5.49% – 14.24% APR (with Autopay) and 4.990% – 11.090% APR.

Let’s have a look on some of the advantages of Payday loans:

  1. A Boon for Tenants and non-homeowners: Tenants and renters do not have to think that they can’t take a loan as they do not have real estate collateral.  There are many unsecured lenders that can help them in getting it done easily.
  2. Increasing trend: The trend for the unsecured personal loans in the Fresno Ca and all across the country is increasing with every day.  Borrowers have accepted these types of loans.  They are for the person who is earning income but may need access to quick funds without having any collateral in their name.  Undoubtedly, they are a big escape in difficult times.
  3. Application of Interest: The interest rate on any loan is typically not applicable if you don’t use the funds within a stated period of time, and quickly pay off the loan.

The repayment period can range from weeks to months to even years, based upon your income level, credit score, the lender’s policy and the terms and conditions.  Credit cards can also be a kind of payday loans Fresno Ca.  So, try to get the duration of the repayment as per your suitability, don’t make it too short or long, and just try to justify and meet it on time so that you will be eligible for the another loan.  Once you think of using payday loans Fresno Ca or any kind of loans, do take care of every aspect of the same and the company too, through which you are withdrawing the funds, and then go forward with the application so that you will have the best service with a fast processing time.

So, in any case shop around for loans that you are eligible for to fulfill your daily means and secure your future longer term, but before taking the Payday loan, it is advisable to take a comparison quote from all possible Payday loan companies!

Short Term Loans CAN Help You Out of a Jam

Whether you’ve fallen behind on credit card bills, want to fund a trip, or simply need some extra cash to tide you over until your next pay, there’s nothing like having a financial “lifeline” to assist you. While some might have an emergency stash they can tap into, many need to look outside for a little financial support. It is quite common in this instance to apply for a loan.

Though it is true that a loan is considered a debt, when used correctly it can prove beneficial. Here’s a look two major benefits in applying for a short term personal loan:

  • Loans can be good debt – As long as you’re not in default on the loan, it is actually good debt to have. As the loan amount and frequency of pay will be displayed on your credit history, this shows creditors that you can be trusted with a considerable amount of money.
  • They get you out of a jam – Short term loans are great for getting you out of a financial jam. Because the stipulations are not as strict as a traditional bank loan, you can typically receive approval along with the funds deposited into your account within 1-2 business days.

Choosing the Best Lender

Now in order to capitalize on these benefits of taking out a short term personal loan, you must first choose the best lender. There are a ton of companies out there to choose from, so it can get a bit tricky. Keep these tips in mind as you search for the right lender:

  1. Legitimacy – Unfortunately, there are a lot of scams out there and fake sites in which thieves are simply trying to collect your personal information for their own use. Therefore, the first thing you want to do is determine whether or not the lender is legit.  Some ways to do this would include:
  • Search the Better Business Bureau – The Better Business Bureau allows you to search for companies across the US. Simply type in the name, URL, or information you have on the lender to determine if they’re legit.
  • Check social media – Another avenue for determining if a company is legit would be to check social media outlets. For example, if you were interested in a company like MaxLend loans, you can find MaxLend Information on LinkedIn. Review their contact information to see if it is a legitimate address and phone number.
  1. Reputation – Once you’ve determined that a company is legit, the next thing would be to determine whether or not they’re a good company to receive a loan from. Consumer reviews will be your best bet when determining the reputation of a company. While you could always check out review sites, you can also look to social media, such as the Twitter account of lenders like Max Lend Loans, to see what real people have to say about the business.

Being a Responsible Borrower

The final component to reaping the above mentioned benefits of obtaining a short term loan is to be a responsible borrower. It is quite common for individuals to simply click agree to get the cash, but in order to keep this debt from becoming negative or a burden on you financially you’ll need to do the following:

  • Read the contract entirely. In order to understand the amount of interest, number of payments, and other stipulations, you must read the contract entirely.
  • Only take out what you can afford. You might be tempted to take out the maximum amount allowed but if you can’t afford to pay it back in the time you agreed to, it is best to take out a smaller loan.
  • Pay timely. It is important to pay as you agreed so that you don’t accrue late fees and higher interest rates.
  • Communicate when trouble arises. If you cannot stick to your arrangement, be sure to communicate this to the loan company instead of ignoring them and the payments. If you’re in a serious bind, you may want to look into getting help with your bad credit so that you can start to clean up your credit history.

Short term loans sometimes get a bad rap, but the truth is they can be a great help. If you’re in a jam, be sure that you keep all the above factors in mind. Search for a reputable service provider and be a responsible borrower. In doing so, you create a lasting relationship with a lender – just in case you need their services in the future.

 

Personal Loans Are Making a Comeback

Following years of strict lending, several lenders and banks around the world have begun to open up their wallets and make it simpler for consumers to get approved for unsecured personal loans. One great source to check out for personal loans is norskelån.com/smalan .

In addition to introducing less rigid credit requirements that will enable individuals with poor credit and high debt amounts to achieve approval, banks are also trying to entice applicants with good-excellent credit by offering lower interest rates. For example, a few years ago, US Bank introduced unsecured personal loans with interest rates beginning @ around 9%, lowered from the previous starting point of 13%. The amount of loans serviced since have more than tripled.

Proof of income is still a requirement for all applicants of good and bad credit looking for an instant payday loan. And those with higher credit scores/rating in conjunction with minimal debt amounts are still considered ideal candidates with approval being likely, accompanied with favorable rates and terms. If you are able to receive an approval, the interest rates you receive will heavily depend on your ability of being able to pay the loan back timely. Interest rates are fixed, but if you fall behind on payments, you are going to incur late fees.  If you neglect to make your payments, your account will be handed over to a collection agency which can equate to being sued in court. You don’t want to go this route. Therefore, don’t apply for a personal loan if you do not think you will be able to satisfy payment obligations.

It is very important to note that being able to obtain easy credit also has its downside. For instance, many consumer advocates contend that these types of loans invite consumers to spend money that they should be saving. Choice has reported that many of their clients utilize their loans for buying large-ticket merchandise like flat-screen televisions, stereos, etc.. These types of purchases are not satisfying life’s necessities and should be carefully evaluated before proceeding. It is also common for borrowers to use the funding they receive for paying off high-interest credit card debt.

Unsecured personal loans are an excellent financing option, if used properly. They not only help satisfy unexpected financial crisis, like paying for doctor bills or home repairs, but can help you save money by paying off balances on high-interest credit cards. In addition, eliminating credit card debt will also help improve your credit score and rating since the carry on an unsecured loan is not as much of an impact on your credit.

What Can You Do If You Can’t Keep Up With The Rent?

I am single occupant in rented accommodation and this month I seem to have fallen short by a few hundred on the rent. Is there any way I am able to take out a tenant loan or put my rent back until payday?’

Losing track of what’s in our bank accounts can happen to the best of us and more often than not, bills will come in thick and fast. It seems that both the household energy bills and rent are often due in the same week. If, up until now, you have always paid your rent on time then coming up with a solution shouldn’t be too much of a problem:

Ask your landlord for an extension

If you have been in your housing contract for many months and this is the first time you have been short on your rent, then it is more than likely that your landlord will understand. Paying an estate agent to look for a new tenant will only cost them both time and money.

A little is better than nothing

Paying your landlord as much as you possibly can is better than paying nothing. He or she will appreciate your effort and as such, they will likely give you the extension you desire. You may only be £100 short and expecting a wage in the next few days; if this is the case try to warn your landlord in advance.

New tenants

If you are a new tenant and have only been renting for a few months, your landlord may not be so lenient. In this case you may have to come up with the goods another way. Borrowing money in the form of an unsecured tenant loan is certainly one way to cover your rent without getting the homeowner involved. When opting for this option you must make sure that you are able to pay the lender back, otherwise you risk racking more debts and getting into financial difficulty.

Ask for an advance on your wage

If you have been in your job longer than you have in your housing contract, it may be wise to ask your employer for an advance on your wage as opposed to asking your landlord for an extension. Arrange a meeting with your boss and explain the situation clearly; if you are a good employee, both parties may be able to come to some sort of solution.

Tips on Gambling Responsibly

Gambling is a ubiquitous activity. You can gamble in a casino, at home with your friends, and even by yourself on a phone or computer. No matter where you choose to indulge in a game of chance, the keys to gambling responsibly remain the same. Following this etiquette will keep you safe from debt and will find you enjoying gambling rather than craving it.

The overall goal should be to keep it light and fun. Do not treat it as a job or another means of making money, because you most likely will not win much, if anything. The best way to keep the mood light is bringing your friends along when you gamble, as long as those friends are not heavy gamblers too. Still, close friends will keep an eye on each other better then other gamblers looking to steal your money.

If it is easy for you to get sucked into gambling on online casinos for hours it is best to keep any credit cards out of the picture. Especially in casinos, ATMs are everywhere and it would be too tempting to withdraw more money. Bring a safe amount of cash that in no way infringes upon money that should be going to you and your families necessities. This way you know you should leave when you are out of money and you will have no way of trying to win back your losses. If it is hard to keep track of your money, find a money management tool online that will aid you in determining how much money should be set aside for gambling activities.

It would also be wise not to mix alcohol with gambling on online casinos. Mixing the two will cause you to make irresponsible decisions. Other tips include keeping track of time and not borrowing money. As with any activity a person partakes in, it is best to keep it from becoming an addiction. Anything can become an addiction, but a gambling addiction will see you and your family paying a heavy price. Keep it fun and always have alternative hobbies and activities that you can spend time with.

So, at the end of the day, gambling responsibly is achievable, you just need to be smart about it and plan ahead!  One such resource is  http://www.jackpotcity.co.uk/mobile-casino/.  They are a full fledged gambling resource you could try out and see if you can gamble responsibly!

How To Responsibly Pay Others Back

paying backWe’ve all done it before.   At some point or another, we’ve had to borrow money from someone. Whether it was a forgotten wallet and a spotted $10 or a more serious situation, it isn’t always the best feeling to have to ask a friend if they can spare a few bucks. However, we all need help every once in a while, and there’s no shame in asking if you’re responsible in how you pay them back. Check out the tips below for ways to pay others back respectfully and maintain your relationship with them in the process.

Be timely.

Did you borrow $20 from a friend when a restaurant only accepted cash? Go out of your way to withdraw $20 from the closest ATM, write them a check, or make an electronic funds transfer as soon as you can.   Did you have to borrow a large sum of money from your parents during an emergency?   As soon as you’re able, sit down and take a look at your finances.   What can you afford as the first payment and when can you give it to them?   Do you owe someone, but you’ve forgotten the money the last couple times you saw them?   Rather than not mentioning it, make it a point to say you still remember and that you will get the money to them as soon as possible.   Showing that you want to pay someone back as quickly as you can instills confidence that no one is going to go unpaid.

Make a plan.

In most situations, the best way to pay someone back is by making a plan.   You may find it helpful to make a payment schedule if you do owe larger sums of money.   Perhaps you can take a little from each paycheck without depriving yourself of your basic needs.   Maybe you can sacrifice going out to eat with friends every weekend until you’ve paid your debt.   Look at your income versus your necessary expenses and see where you might be able to temporarily cut back.   Whatever you work out, be sure to communicate that with the person who lent you the money to let them know you’re getting back on track.

Write it down.

When you’ve committed to a payment schedule that you’ve thought out and written down, you’re more likely to stick to it.   Put your payment due dates on your calendar or set up a reminder in your smart phone. If you go the paper route, post it in your office or on your fridge. You can even give a copy to the person you’ll be paying.   For some people this may be overkill, but for others it lays everything out on the table so there are no questions left unanswered.

Don’t feel bad.

Like I said before, we’ve all been there at some point in our lives.   So, don’t let your guilt keep you from asking for assistance if you truly need it.   Likewise, don’t allow your guilt to keep you up at night if you can’t repay someone as quickly as you want.   Be open and honest with them about your situation.   They’re likely to understand if they were willing to spot you in the first place.

Occasionally, your quality time or willingness to help may be repayment enough or at least make a later payment acceptable.   Offer to help them move next weekend or watch the dog while they’re out of town as a gesture of good will.

Have you ever borrowed money from someone? How did you go about paying it back? Are you still friends with them to this day? I’d love to hear about it!

photo by 42Dreams

Top Tips for Finding a Bankruptcy Lawyer

bankruptcyIf you are faced with a large accumulation of debt, it may seem next to impossible to tackle each dollar one by one and find a light at the end of the tunnel. There are countless reasons why people fall on hard times and fall behind on their bills, when you can’t pay your debt back or paying back your debt would place a tremendous financial burden on you and your family, it may be time to consider bankruptcy. Because there are so many different laws and provisions when it comes to bankruptcy, the first thing you need to do is look to hire a bankruptcy attorney who specializes in debt consolidation as well as any special concerns you may have related to your case in your specific state.

Free consultation

One of the best ways to find a bankruptcy lawyer is to select one who offers a free consultation. You can typically find a lawyer offering a free consultation through advertisements on the television or radio, as well as at some debt consolidation firms. This is especially beneficial when you are facing extreme financial woes and can’t afford to pay for any type of consultation fee. Some attorneys do charge consultation fees and they can run anywhere from $50 to $300 depending on your location and their fees. A free consultation allows you to speak one on one with a lawyer either in person or over the phone. Make sure the lawyer answers all of your questions regarding a bankruptcy including what type you qualify for, any type of provisions that need to be followed, how the process works and how much the entire bankruptcy will cost.

Yellow pages

Finding a good lawyer may be as simple as opening up your local phone book’s yellow pages. While some lawyers may have websites or blogs, most generally local lawyers still advertise in the yellow pages to attract customers who many not have access to the internet. Within the yellow pages you can easily see what lawyers specialize in, especially the types of bankruptcy including chapters 7 and 13 as well as various types of debt consolidation. This is a great time saver so you prevent contacting lawyers who have specialties other than bankruptcy.

Lawyers you know

If you have seen a particular lawyer in the past for a personal matter such as probate or divorce and you trust that lawyer, it may be beneficial to contact him. If he has handled a lot of your legal issues in the past, he is familiar with the best options for you and your situation. If he can’t help he can refer you or put you in touch with a lawyer who specializes in bankruptcy court.

Contact local and state organizations

If you are researching lawyers in your area or who might be best qualified to take on your case, you may want to do some investigating as well. Contacting your state bar association is a place to start. They will be able to tell you if a particular lawyer has had any disciplinary action against them as well as how long they have been practicing.  For example, I live in San Diego so to contact  bankruptcy  lawyers in San Diego, I would contact local organizations in my community.  And once I do find a bankruptcy attorney in San Diego, I would call up other people who had experience with them to make sure I’m getting someone qualified.

Taking all things into consideration, you should shop around for a good lawyer before hiring him to take on your case.

photo by ralphandjenny

Best Alternatives to Credit Cards

credit card alternativeCredit cards are often considered essential for many people, especially those who love to go out shopping often or don’t want to carry around cash. However, credit cards are also the leading cause of debt and can be dangerous to use if you really don’t have the money to pay it off. Luckily, there are many other options that can replace a credit card and work just as a well including low interest rate credit cards. Besides that, it might help you control your spending and keep you from owning a lot of money later. Here are the best alternatives to credit cards:

1.Charge cards:
If you want to make easy purchases with a card but not use credit, try charge cards. They are very similar to credit cards. However, you have to pay the money you spent with the card within that month period. This is a smart way of making sure you don’t end up in debt, and if you can’t pay one month your card will stop working. This is a good option for those who want to control money spending and keep track of how much they owe.

2.Prepaid cards:
Another newer method of spending money with a card is a prepaid card. With the card, you can put in your own money and be allowed to spend that limit when out shopping. It works at all ATM stations and ensures you don’t go into debt simply because you can’t go over your balance. Prepaid cards are very easily to handle and put money on, and also work to track you spending in a way that will not have you owning anything. It is a lot like a credit card except you actually are spending money you put in before you use it.

3.Debit cards:
A debit card is similar to a credit card, but it should be put after prepaid cards and charge cards because they can also cause problems. When you make a purchase bigger than what you have on your account, it will grab money from different accounts instead of sending you a bill and keeping you in debt. This can be dangerous, but is a good option for those who have a lot of money on their account and know how to spend safely.

Use these top three alternatives when out shopping and see a major difference in how much you spend, how you spend and how your money is tracked and stored. You’ll find that it’s easier to stay organized with your accounts and money, and also will help you prevent from going into debt that will cause later money issues and lots of stress in anyone’s life.   If you decide to stay with credit cards, tread carefully and always use a credit card comparison site.

photo by tax credits

The Coming Student Loan Bubble â“ and what You can do about it!

financial bubbleA bubble❠starts to develop when the majority of people pour their money into a financial endeavor to such a degree that no one ever challenges the wisdom of what’s happening. It’s presumed to be right on the strength that everyone’s doing it.

In recent years, we’ve seen bubbles develop in the stock market and in the real estate market. Everyone plowed their money into both until there was no one left to invest, then gravity took it’s course and a lot of people lost a lot of money.

Could the same thing happen with student loans? It’s sure starting to look that way. Most people can no longer afford the cost of college, at least not if they have to pay cash to attend. They’re relying increasingly on borrowed money to get their education, and the numbers are starting to look threatening.

The facts on student loans

A recent report came out indicating that about one in every five households is carrying student loan debt. That statistic is even more disturbing when you consider that only about 50% of the college age population actually ever enrolls in college. Only about half of those ever finish. Put another way, 25% of the population have college degrees and something close to 80% of them are carrying student loans.

What this tells us is that the majority of college graduates are using student loans to pay for at least part of the cost of attending school.

The same report indicated that the average debt load being carried was $26,682. That number is from 2010â”we can assume that it’s even higher now. In fact, the average amount of student loan debt has doubled since 1989.

What’s driving the debt and creating the bubble

College costs are rising relentlessly, and this is forcing students to rely more heavily on debt as a way to pay. This is where the bubble factor enters the picture. Loans are the reason why college costs have been able to rise despite the recession and the toll it’s taken on many middle class families. What students lack in ability to pay is being covered by loans.

In a classic bubble, prices rise past the ability of the average consumer to buy. Loan programs enable prices to rise past this point, setting up a collapseâ”the bursting of the bubble.

The eerie parallels to the mortgage business

With the mortgage meltdown still in recent memory, we should consider the parallels to student debt.

It was the goal of the government that everyone who wanted to own a home should be able to do so. That opens the question however, what do we do about those who can’t afford a home?

Answer: financing.

The mortgage industry responded to the challenge of getting a home for everyone who wanted to own a one with non-qualifier loans. This included no-income verification loans, no down/100% financing loans, and loans for people with poor credit.

How does that relate to student loans? There are no required qualifications for student loans either! Any one who wants one can get one. A student can wrack up six figures in student loan debt without ever having to prove the ability to repay them.

That’s sending young people flocking to college in record numbers. Home ownership rates reached record highs (near 70%) just before housing tanked.

On the strength of student loans, many college careers are becoming saturated. That’s putting downward pressure on both salaries and jobs, affecting the ability to repay. Whether it’s a house or a college degree, once too many people have them, they’re of less value.

That’s when the bubble bursts.

Don’t be one of the victims of this bubble

If you’re making the college decision for yourself or your children, you can avoid this bubble. Look for less expensive schools, work/study programs, or ways to pay for college without having to rely on student loans.

If you’re out of school and your student loans are already a problem, look into the Income-Based Repayment plan, or IBR. Under the program, your student loan repayments can either be reduced to a percentage of your income, or even partially forgiven. There is a calculator that can tell you if you qualify.

Do you see a bubble developing with student loans?

photo by Justin D Miller