Archive for Debt

Online Lenders Can Offer The Right Bridge Between Paydays

Every now and then, unforeseen expenses crop up and leave us on unsure ground. Luckily, online lenders can help you. Using advanced technology, these companies successfully match customers with suitable loans, helping you bridge the gap between paydays. However, there are a few benchmarks you need to keep in mind before you make any final selections about the company you’ll be dealing with.

The online application process is designed to be quick and straightforward, and a lender’s decision can be delivered within minutes of receiving the loan request and verifying the application information. In many cases, funds can be deposited into your account on the same day, or the next business day, so you can deal with your financial situation without delay.

Short-term online loans can be the right type of bridge when you need to pay for an urgent car repair, a medical emergency, or some other type of personal expenses that just can’t wait until next payday. There are many reasons to consider a loan to help with immediate expenses. For example, applying for an online loan to pay for an overdue utility bill can help avoid having to pay late fees, penalties, or the risk of disconnection. Meeting your financial obligations on time can also help improve your credit score. Usually, repayment of the loan in full is automatically deducted from your bank account on your next regular payday so that the entire process is completed promptly and efficiently. People who need to borrow funds that come with a longer repayment schedule may be better suited to the online lenders that offer lines of credit.

When you investigate the website of reputable lenders, you’ll find they’re very direct about the services they provide and strive to make it easy to access information about how the procedure works, how the loan is repaid, and the way interest and other charges are calculated on the amount borrowed.

In addition to offering the option of convenient online loans, ethical lending companies like MoneyKey exercise responsible lending practices so there are no hidden costs, and customers are not encouraged to take out loans they can’t afford to repay on time. Making sure the application and loan sourcing methods are explained in simple language allows the borrower to clearly understand the lender’s requirements so there’s less risk of getting into financial trouble. Repaying the loan on time establishes a good relationship with the lender so you’ll feel comfortable using their services again.

The best of these companies will explain how much money you can borrow, the cost of borrowing, and the time frame for receiving and repaying the borrowed amount. Because you probably need the money as soon as possible, a firm that offers a simple online application, a speedy approval process and a same-day deposit is a sign you’ve found a company committed to providing customers with transparent and reliable lending services.

When you need a loan for a short period of time, or even a line of credit, it’s important to find a place that allows for flexible repayment options and great customer service. Taking the time to research the characteristics of a professional lender will make the process run more smoothly, and get your slippery financial situation back on solid ground!

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Which online lenders do you use?

Credit Card Convenience Has a Catch

ccI remember nearly 25 years ago a friend dropped me at a car rental at Orlando Airport. I wanted a car to go down to Miami; I was flying to Cancun in Mexico later in the day. I was asked for a credit card. I said I had plenty of money and would pay cash. I didn’t have a credit card even though I had been working for many years by then. Cash was not acceptable initially until I showed them my airline ticket. I got the car with a warning that if it was not returned to their Miami office by a certain time the FBI would be on my tail.

The reason seems obvious now. A credit card was a combination of identity card and the company’s insurance that I was not going to drive off over the USA a bit like Thelma and Louise did in the film of the same name. There are many questions relating to how people use credit cards and what benefits they have brought to their users and the companies that accept them for payment. The answer to the question pre-recession is certainly different from the one that many would give today. Credit Card Companies were throwing credit around before the recession came, and lots of people were happy to take it.

Things have changed. Cards are still very convenient, but used irresponsibly can still create all kinds of problems for their users. Many people use to have a number of credit cards and spent up to their limits on each; they simply got another and paid the minimum monthly amount on those where their credit was finished. The minimum rarely knocked anything off the outstanding balance when interest was added.

While a consolidation loan could sometimes pay off the balances often, they merely added to the amount of money people were spending each month to keep afloat.

Financial institutions often looked at students as their future customers and offered incentives for them to sign up for a credit card. Suddenly they had something on their hands that they could use to spend on anything they wanted up to the approved limit. The problem was not confined to young students; everyone was tempted and generally everyone was accepted and given a card.

Things have changed, but there is still a level of temptation with that little piece of plastic. There are some rules that everyone should follow for getting the convenience of not having to carry cash. Most are obvious but often forgotten. A credit card is not free money; interest will be charged on outstanding balances making that bargain purchase more expensive than it seemed.

Anyone signing up for a credit card needs to use it sensibly and know exactly the terms and conditions under which the card has been issued. It is essential that the card is used in such a way that the convenience is a definite advantage, and there are no downsides. It is important that users are never late with their monthly payments and that the expenditure that is going on to the card is included in any personal budget that the user is supposed to be following.

Budgets that are artificially supported by a credit card are quite dangerous. Everyone can meet their monthly bills while building up an increasingly large balance on a credit card. The day of reckoning will come in the end, and it will not be pleasant.

I got a credit card shortly after my Orlando experience; it is convenient, but it demands discipline.

Steve Smith is a retired financial director living on the wonderful Turquoise Coast of Turkey. He has seen many wonderful places in every Continent of the World.  He is a Graduate with Honors and since retirement has been writing professionally for a range of business clients either side of the Atlantic for four years.

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6 Signs That You Are Living Above Your Means

People have given up that good old habit of putting money aside just in case. They buy things that they do not need and houses that they cannot pay for. They are behind on their bills and have a record level high of debt on their credit cards and loans. I don’t know what it is, but some people are no longer financially responsible. They have forgotten how to live within their means. Here are six signs that you are living above your means:

1. No Savings

If you have no savings, you are probably spending more than you can afford. With no money set aside for emergencies or retirement, you may be setting yourself up for a disaster, unless of course you win the lottery or get some kind of inheritance. Imagine if someone gets sick, your roof needs to be replaced, your house burns to the ground, or you need to take in a parent or a family member. It would be extremely hard with no savings. 

2. You Are Addicted To Buying On Credit

Another sign that you cannot afford your lifestyle is when you start buying everything on credit. That is the worst sign of all. If you pay your living expenses and other things with the credit card or your checking account overdraft, you are definitely in over your head. Buying on credit is not a solution when you do not make enough money to cover your costs. You need to change your lifestyle to your income and not buy your lifestyle on credit.  

3. Your Bills Keep Piling Up Out of Control

Make an inventory of your monthly bills. Check to see just how much you have to pay every month, but also check how much of what you pay you really need. The latest smart phone, state-of-the art laptop, premium TV package when you are barely at home, and many other luxuries that generate countless monthly bills that add up to an amount that you can’t afford to pay. If your bills are spiraling out of control, you are definitely living above your means.

4. You Are Not Able To Pay Off Your Credit Card Balance

You are not supposed to buy anything with your credit card that you would not be able to repay entirely at the end of the month. The fact that you pay only the minimum due amount on the credit card balance is a clear sign that your lifestyle does not match your income. The same is true when you are sending only a small contribution toward the principal balance and not towards the outstanding balance, which only increases your credit card debt.

5. Your House Eats Up More Than 35% Of Your Income

House related costs, such as property taxes, mortgage, and insurance, account for a large part of your expenses. Banks have calculated that when these costs eat up more than 35%% of your gross income, you are  simply living above your means. When banks loosened their credit requirements, many people rushed into buying the home of their dreams ignoring the fact that they might not be able to afford it. When your home takes up over 35% of your gross income, it’s hard to enjoy life when such a huge portion is going towards your home.

6. You Try To Cover Outstanding Debt With New Credit Cards

When you get a new credit card with a lower interest rate to pay off an older credit card you are without a doubt in over your head in a lifestyle that drains you of money you do not have. Using a new credit card to pay for another only increases your outstanding debt in time. If you cannot pay your existing credit card from what you earn, you cannot afford your lifestyle.

Do you know anyone that is living above their needs? If so, what are doing to assist them?

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Lend Me Finance

loan approvesResearching different companies to determine what loan options are available is the best way to find the best loans available on the market. Lend Me Finance offers a comparison rate tool, so you can compare two different loans simultaneously.

A comparison rate tool is determined by the following factors:

  • Loan amount
  • The term of the loan
  • Interest rate
  • Costs and charges regarding the loan
  • Payment frequency

Some tips to improve your chance of getting a loan are:

  • Ensure that your credit score is good

Your credit score is one of the most important factors when it comes to qualifying for a loan. The better your credit score is the lower the risk is to the lender. This is why interest rates are typically higher for people with bad credit. Bad credit will also cause the lender to decline your application.

  • Determine the loan amount needed

Knowing how much you qualify for will help you budget all of your expenses to ensure affordability. Only borrow what you need.

  • Compare interest rates & repayment options

Knowing what your interest will be, will give you a good idea of how much your payments will be. Repayment terms are important as well when it comes to obtaining a loan. The more frequent your payments are, the faster you’ll pay it off, so know your options.

  • Affordability

Often times the amount needed and the affordable amount do not correspond. There are many loan calculators to help you out. Check out the calculator on the Lend Me Finance website to see how much you qualify for.

  • Read the fine print

Keep in mind that a personal loan is a contract between two parties, which has terms and conditions and a PDS (Product Disclosure Statement). All documents must be read carefully.

  • Know your options

Consider the secured and unsecured personal loan options, if they are both being offered to you. Both options have their advantages and disadvantages. Ask questions to determine which one is best for you.

Choosing the right company to get a loan can be challenging, especially since there are so many options available. Take your time and never get pressured into taking something you are not comfortable with.  Ask lots of questions until you have enough information to make the best decision based on your needs.

Do you use calculators before applying for a loan?

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Getting A Car Loan

car loansMost people now a days have a car loan, simply because it can be quite difficult to purchase a car without one. Of course the best way to purchase a car is to save the money and buy it cash so you don’t have to pay any interest on the loan. But that is easier said than done. Car loans allow you to drive the car you have always dreamt of buying, simply by applying for a loan. With the large amount of competitive lenders out there, you can take your pick on which lender you want to choose.

Comparing car loans are important so you can choose the best interest rates, repayment options as well as finding out if there are extra fees associated with your loan. Different lenders offer different terms and interest rates depending on your income and credit score. You can check out this car loan rates calculator to see how much you can afford.

The easiest way to apply for a car loan is online after you have figured out how much you can afford Applying online is easy quick and convenient. You can apply any time of the day, any day of the week.

There are different car loans available, which include secured loans or unsecured loans. The secured loan option is  least expensive since the lender has the security of the car that they can take if the payments are missed. This minimizes the risk of the loan. At the end of the day, the best loan is what’s best for you and your situation.

When considering a car loan, look out for the following:

  • Interest rates
  • Payment frequency options
  • Penalties for early repayment
  • Fees
  • Flexible terms
  • Secured or unsecured
  • Fixed payment or revolving

The more equipped you are with the right information when it comes to getting a car loan, the better deal you are likely to get, which will save you money in the long term.

Choosing the right company can make all of the difference in the world, so it’s important to take your time and research different companies to get the best deal possible. Not just the best interest rate, but the best overall experience.

Your lender should be transparent and very knowledgeable to ensure you are offered the best product based on your unique situation.

What do you wish you knew before getting a car loan?

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