Finding The Right Debt Consolidation Loan

Payday loans, credit card debts, mortgages, and auto loans can put you under lots of pressure, and make your finances unmanageable, but a good debt consolidation loan can be your savior in reducing the huge financial burden and giving you relief. A debt consolidation loan helps you manage our finances efficiently and easily. One thing though that you should keep in mind is that while it isn’t rocket science really, choosing a loan will need some concerted efforts on your side.

First and foremost, you need to conduct a thorough market research. Remember there are so many options available in the market hence a thorough research will come in handy to get the most appropriate alternative. The first place to check would definitely be the convenient World Wide Web that will help you zero out the best services available. Remember there are so many fake companies that would want to take advantage of your financial situation to rip you off your hard earned money, hence the reason why you need to research some more to find a reputable and genuine debt consolidation loan service provider.

The more vulnerable amongst us are the elderly & they are now experiencing difficult financial times. They more than others, should always ensure they receive advice on money management programs that meet with the regulated trade bodies such as the FSA. Reaching retirement in the UK can lead to financial issues not experienced by previous generations as attitudes have changed towards the ‘live for today’ mentality which brings with it the debts & woes scenario.

Remember that only a reliable and reputed debt consolidation service provider will give you efficient services that will actually get you out of debt. By the end of the day, you have to keep in mind that it isn’t only about repaying your existing debts but also about better financial management for the sake of your future.

The second thing that you need to do once you single out several debt consolidation service providers is to request for quotes from the companies so you can do your comparison. Be informed that a genuine debt consolidation company will never charge you for quotes, they are free. If any company therefore requests you to pay in order to get access of its quotes, that is a deceitful gesture indeed and the company should be avoided like plague. A genuine company will benefit more from your creditors and not you; they never charge for the services, worst of all quotes, so you should be very cautious and make an informed decision when you come across companies that make tall claims.

With that having been said, when you get your debt consolidation loan, it doesn’t mean you should go back into your old habits of defaulting to make payments. Ensure you always pay on time lest you get into serious deep shit again. Remember that under such tough financial burden times, even debt consolidation wouldn’t be any easy. Once you get financial relief, you are bound to faithfully pay the newly set monthly payments on time. Of course this will also reflect positively on your credit report.

A debt consolidation loan is a great alternative to get you out of debt as it helps you consolidate all your finances and helps you offset the existing debt. Just assume the right approach and select a lender who offers quality and reliable debt consolidation services at reasonable costs so you can be able to actually get out of debt and not sink deeper.

What you need to know about APRs and payday loans

If you have a mortgage, credit card or personal loan, you will be familiar with the term APR. APR stands for annual percentage rate and as the name suggests, it is the rate of interest you will pay for a whole year.

What many are unaware of is that the APR quoted by a lender or mortgage provider also includes associated costs. Another common misconception is that the headline APR is what all applicants will receive if their application is approved. This is not the case.

The advertised APR is what the majority of people receive. However, that majority could be as slight as 51-49, so you need to do more than simply look at the number quoted. Where the APR causes the most confusion is with regards to loans by text.

Payday loans are routinely vilified in the media, with trade groups, consumer groups, politicians and the like lambasting them for being expensive and trapping people into debt spirals.

There are some strong arguments against these complaints, which are supported by data showing that millions of people use payday loans every year to help them through difficult times.

Critics immediately point to the APRs advertised by text loan providers, claiming that it is foolish to borrow money at rates of several thousands.

What these critics fail to point out is that text loans are not meant to be borrowed over a 12-month period. Payday loans are meant to help people deal with immediate, short-term financial difficulties.

If payday loans were designed to be long-term sources of finance, the providers would very quickly go out of business – why would anyone borrow at a rate of 4,000 per cent over five years when they can borrow at a rate of 17 per cent from a high street lender?

What you need to do as a potential borrower is to work out the interest over the period you intend to borrow for.

So, if you take out a £300 loan over a period of 30 days at an APR of 2,120 per cent, the total you would repay would be £387. That means you pay £87 in interest overall.

As you can see, this is a lot less terrifying than critics would have you believe. Herein lies the problem with APRs with regards to payday loans.

Yes, the APRs are high but the loans are short-term facilities, not long-term financing options, so the APR – while not irrelevant – does not paint a clear picture at all about how much a text loan will ultimately cost you.

Take one out over a year and the APR will take your debt to astronomical levels. However, if you use text loans correctly – which is infrequently and only over a month at the most – then they can make a lot of sense.

Most providers will have the cash in your account within a few hours and the lending criteria – while not easy – is a lot less stringent than those set by banks.

So you get speed and convenience at a cost of £87 in the example above, which most people would deem a fair price in today’s market. Those who get into difficulties with payday loans are the people who do not use them properly. It is when you do this that the APR becomes a real problem.

Use them as they were intended, however, and you could benefit like so many other people in the UK have over the last few years.

How to get cash with bad credit

Like most people, your credit score may not be perfect. The economy is tough right now and can cause many people to feel like they are stuck in debt. If an unexpected bill or emergency pops up, you may find yourself wondering what to do next. Banks and most other financial institutions will not give you a loan if you have bad credit, but you can relax because there are other alternatives out there. You can get the money you need even if your credit score is poor.

Payday loans are a smart choice for people who are in need of money in an instant, but do not have excellent credit. A payday loan is a short-term loan that allows you to get the cash that you need right away. You can then pay it back on your next payday. This is a great option because you will not be adding another bill to your life. You will basically just be getting an advance on your pay cheque.

You can do anything that you want with the money you are getting. You can get a payday loan to pay for an unexpected bill that you forgot was due. In many cases, it is cheaper to get this type of loan than to pay for late fees, reconnection fees, and other penalties that may come from being late with a payment.

Payday loans are also good choices when you have an emergency. If your car breaks down, you will need it to be repaired fast. If you cannot get it repaired, how will you get to work? You need transportation to be able to make money, take your children to school, run errands, and everything else that you do daily. It is a smart choice to get this type of loan instead of missing work and losing your job or a day’s salary. Payday loans can really help in many scenarios. 

[Continue Reading…]

Looking at Payday Loans Logically

There are a lot of articles out there about payday loans, and the truth is that most of the articles take sides. Payday loans are either the best thing since sliced bread, or they’re the most evil thing that ever came to the world. The reality is that payday loans are just another way to solve a problem. In other words, payday loans are tools. Tools are neutral devices. They are neither good nor bad. It’s what we do with payday loans that make a difference.

A lot of guides say that you should avoid them if you can help it. However, when you step back and realize that the majority of payday loans are taken out because of a financial crisis, and then the advice becomes quite hollow, doesn’t it? After all, who can really plan an emergency? The very nature of the word means that it’s something that comes out of nowhere. There will be a point in time where you need money quickly, and there aren’t any other sources that can accommodate you. You will just need to look at your options.

Sure, you can go to your friends and family, but this creates resentment over time. People are very defensive about their money and for good reason — they’ve worked for it. Even if they happen to have savings, that represents money that’s earmarked for their own needs. They’ve probably got their own plan for the money, and then you come along needing a loan. Once or twice might be okay, but if you constantly have emergencies coming up, you’re going to have to find another source to get the money from. You don’t want to find yourself being stuck between a rock and a hard place.

In the past, most people had to go to a check cashing place offline in order to get considered for a payday loan. Thankfully, those days are over. Given the attitude that many people report having experienced in those places, the online payday loan world is a lot better.

The point is that you have to look at all of these things from a logic-oriented perspective. Sure, you are probably in a position where a payday loan is necessary, but it doesn’t have to be an unpleasant experience. These days, if you don’t want to interact with people you definitely don’t have to. You can just stay to yourself and not even bother with anyone. If that’s what you want, then the Internet is the best place to go for your payday loan. No longer do you have to worry about whether or not you’re going to get approved. Usually if you have a steady income — even if it’s from a government source like SSI — and a checking account, you’re going to get approved. The checking account is to make sure that the payday loan company actually gets their money. You don’t want to find yourself being unable to pay back the loan if you can help it — that’s where a lot of the fees and penalties really start kicking in.

Why is the interest on such a short term loan so unbelievably high? That’s because of the nature of the loan. Because virtually anyone can be approved and the average applicant has substandard credit, there is some risk on the payday loan company’s behalf. They have to make sure that they are going to get a return on their investment and services, hence why the interest rate is so high.

If you’re in the position where you have to get a payday loan, it’s very important that you pay it back as soon as possible. Then, once the emergency is over, you need to start thinking about a plan to save up some money so that you do not constantly have to take out money.

You also want to make sure that you’re taking out payday loans for the right reasons. It can be tempting to get a payday loan to cover the gaps so you can shop for nice things, or buy something unnecessary. Just remember — it is indeed a loan that you will need to pay back, so make sure that you plan accordingly — good luck!

Understanding Online Payday Loans

Unlike other loans, there are just a few requirements that applicants must accomplish when applying for online payday loans, which include the following:

1. An applicant must have an active checking account.
2. An applicant must have a job within the same company for a minimum of 3 months.
3. An applicant must have a net income salary of $800 per month.

There are some loan providers that would also ask for payslips and bank statements while others check if an applicant has other payday loans or has any record of NSF (or non-sufficient fund charges) within the last 30 days.

Payday loans that can be derived online are very appealing to borrowers, especially to people who have no loan records yet, to those that have low credit scores, or to those who have filed bankruptcy in the past.  Not like traditional loan providers, loan companies that offer payday loans online do not check the credit records of loan applicants from credit bureaus, such as Equifax and Experian.  They instead use Tele-track.  Tele-track is not used to check credit records, but just to verify the banking records of applicants.

If you want your loan application to be approved, make sure that all the information you’ve written down on your application is true and correct.  It is also very important to apply for only a single payday loan at a time as applying for numerous loans may mean rejection of all your applications.

Once you’ve accomplished a loan application form, submit it to the loan provider for evaluation.  If you have successfully met all the requirements, the provider will inform you through email.  You may be given an amount that ranges from $100 to $500 and it usually depends on your monthly salary, bank records, number of outstanding loans, etc.  An individual, who has borrowed more than once from a similar company, will most likely be granted a bigger payday loan.

When your loan application gets approved, you’ll be asked to make a printed copy of the contract and sign it.  Before signing, see to it that you have read and fully understood the terms.  Once the contract is signed, send it through fax together with your recent payslip, back statements and personal check.  After which, the loan provider will then verify all information and release your loan.  Online payday loans are usually wire transferred into the checking account of borrowers within 24 hours, except during weekends and holidays.