How to make your family and friends your investors - minimizing the risks of personal loans

Most people don’t realize that over half the businesses in America are financed by money from family and friends. The truth is everyone relies on their circles when they have nowhere else to go. Someone with mediocre credit may have a difficult time getting a start-up loan from a bank, but Mom and Dad will always help out if they can.

Weighing the Pros and Cons

There are inherent risks and advantages to getting a private loan over a bank loan:

Risks:

• Not clarifying both parties’ expectations. If you don’t have a clear repayment plan and stick to it, it’s very easy to get behind or to never set the money aside to pay off the lump sum.

• Relationships can be damaged when money gets involved. Your lender can resent feeling used or taken advantage of if you default. And either party can get hurt if they feel the money is being valued over the relationship.

Advantages:

• Flexible terms—typically the repayment doesn’t start immediately, and you can create a payment schedule that works for both you and your lender.

• Better interest rates—This is particularly true if your alternative is credit card financing. And with most start-up businesses, banks are probably going to steer you in that direction.

Show Them You Mean Business—Getting Outside Help

Loan administration companies minimize the risks involved in private loans by creating legal documents and administering repayments. By approaching your friends or family with a legal agreement for you both to sign, you can help allay some of their fears. Says Asheesh Advani, president and CEO of http://CircleLending. com, “The more you do to reassure them you have a plan in case you can’t make a payment, the more they feel that you’ve thought this through and that the relationship will survive the transaction.”

If something should come up, and you know you’re going to be unable to make a payment, you can go to your loan administrator ahead of time. With the permission of your private lender, they’ll spread your missed payment over the life of the loan. Or they’ll restructure the loan and lower your payments. But they’ll help work out an arrangement where you both feel comfortable.

A major benefit of having a loan administrator is the security it gives your investors that your loan will stay on track. Each month, the loan servicing company moves the money from your account to your lender’s account by direct debit and direct deposit. This way, there’s no chance you’ll be out of town and forget, or be late with, a payment. Says Advani, “It’s a great way to not find yourself in a hole.”

Secured loans overview

: One of the most popular ways of borrowing money is through a secured loan. What ‘secured’ means is that some property, such as a house, is used to guarantee the loan. If you fail to meet repayments, this security is taken by the lender. Although any property can be used to secure a loan, the most common types for personal loans are houses or automobiles. Most of the lending occurring right now in Britain will be on a secured basis. It appears that consumer lending in 2005 will be slightly less than 2004. Borrowing is still high, but it appears as if consumers are making an effort to keep borrowing more under control. Mortgage loans are constitute the bulk of lending. Home equity loans are also very common. The difference between a mortgage and a home equity loan is that a mortgage is borrowed to buy a house, and it is also secured over the house. A home equity loan is when you already own a house, so you borrow for another purpose but still secure the loan over your house. Secured loans are so popular for a number of reasons. While there are risks high risks to secured loans there are also great benefits. Benefits of a secured loan
  • It is easier to be approved for the loan.
  • The amount borrowed can be much higher.
  • The interest rate will be a lot lower.
  • The terms will be less onerous as for unsecured borrowing. However the major risk is that if you fail to keep up with repayments, the security, which will usually be your home, is at risk. The lender can sell your home to get the value of their loan back. Such a risk needs to be considered very seriously. Losing ones home is the ultimate financial penalty. While there are safeguards, and your home will not be repossessed without a court order, the end of the line is repossession. Likewise, auto finance is typically secured over the vehicle you are seeking to buy. If you fail to make your car payments, the vehicle, which may be the only form of transportation you have, will be repossessed. There are also a number of long term consequences to defaulting on a loan. While borrowing on a secured basis will give you access to more credit at better rates, all borrowing does ultimately depend on your credit report. The better your past behavior and credit rating, the more willing banks and other lenders will be to taking you on as a creditor. If you have a poor credit rating, you should consider borrowing a small amount and paying it off properly to improve your rating. This will put you in a better position when it comes to the really big purchases of life such as a new house.
  • Keeping your payday loans secure

    A person who obtains a payday loan for the first time need not have butterflies in his stomach. Getting a payday loan is relatively simple and fast, especially if a person submits an application online. Completing an online application takes between two to six minutes, depending on how fast a person reads and types... Online payday loan companies require loan applicants to complete an online application form. Based on the information disclosed in the application form, the lender will determine whether the applicant is qualified for a payday loan or not. Most lenders collect information about potential clients from four sources:

    1. The information provided by the application on the online form, such as years or months of employment and the monthly wage.

    2. The data regarding the client’s transactions with the lender such as the amounts previously loaned and payments made.

    3. The record of the client’s transactions with other companies or lenders, such as whether the client has applied for other payday loans or not.

    4. The report from a consumer agency, but this report is not about the client’s credit history.

    Some people, however, are dubious about the privacy and confidentiality of submitting their information online. This is because there are unscrupulous hackers who steal information for their own selfish purposes.

    To prevent any violation of privacy, online lenders have installed comprehensive and tight security measures. Such measures are meant to keep the confidentiality and integrity of the information provided by an applicant. One of these security measures is called the 128-bit SSL encryption technology. SSL stands for Secure Socket Layer. The SSL ensures that any data transmitted from one computer to another cannot be viewed publicly by anyone.

    Another security measure is, of course, the client’s username and password. With such, no other person will have access to the client’s personal account. This means that no one else can use and exploit the personal account. But with this security measure, the client must also do his part. That is, he must not divulge such information to anyone or make a public computer remember his username and password.

    For the part of the lenders, they usually do not pass on information about you to other entities or people, except when the law requires them to do so. This is when lenders report their financial status to authorized government agencies. The lenders will certainly not show that Mr. X borrowed more money than Mr. Y.

    Lenders also install electronic safeguards to prevent other online companies from obtaining the client’s contact information, and to hinder such companies from sending you proposals and advertisements about their products and services.

    And lastly, when a person no longer utilizes the loan services of the lender, the information about this former customer will remain confidential, unless again, when the lender is required by law to disclose such information.

    A person who wants to take a payday loan for the first time need not worry about his credit history because the payday loan lender will no longer conduct any credit investigation. This means that if the applicant has issued bouncing checks or declared bankruptcy in the past, he will still be eligible for a payday loan. The few requirements are these:

    1. Must be 18 years old and above

    2. Must have a current job or receive a regular income

    3. Must have a minimum wage of $1,000

    4. Must maintain a checking account

    Once a person meets the requirements listed above, the next he will need to find out is the amount that he is qualified to borrow. Such amount will depend on his income. This implies that a person usually cannot borrow more than his income. This is the lender’s way of ensuring that the borrower is able to pay the loan.

    Once the loan application is approved, a representative of the lending company will contact the borrower either by phone or by email. The representative or customer service personnel will confirm several loan details and will answer any other questions that the borrower may have. The borrower is now considered a client. And this usually happens within a day.

    A few lenders will require the client to submit via fax or email attachment some documents (such as driver’s license) so that the client may show proof of his employment. But most lenders have other more convenient ways. That is, they do not ask the client to fax anything.

    The client usually receives the amount he loaned during the next business day. That is, if the application was submitted Wednesday, the client’s bank account usually gets a deposit overnight or early Thursday. If the application was submitted on Friday, the deposit is received on Monday.

    The payment for the loan is often deducted from the client’s bank account on the day of his payday. This payment will consist of the loan and of the interest. The amount charged for the interest will vary from one lender to another. As a first time borrower, one of the best courses to take is to research which lender will offer the least interest and the best deal.

    For more information or more questions, the first time borrower may contact the lender’s toll-free customer service hotlines.

    End your financial worries with bad credit history tenant loan

    Bad credit history - a word with lot of negativity in it for a desiring loan borrower. A tenant with bad credit is one, to whom most of the lenders avoid to lend their money. The reason is simple. i.e. lack of collateral in absence of a good credit score. Bad credit history tenant loans are such unsecured loans which offer you appropriate finances for your wishes.

    Bad credit history tenant loans are for people with bad credit history which occurred due to defaults made by them in the past. Defaults include non-payment or late payments of debts, unpaid credit card bills, large number of debts, CCJ’s and IVA’s taken, bankruptcy etc. So now you are much aware about how easy it is to get a bad credit history. But the troubles begin when you need to recover from it. It needs lot of effort and commitment as you have to clear off your debts by make timely payments for a good amount of time.

    Bad credit history tenant loans gives relief from financial trouble to tenants, PG’s, students, non-homeowners, people living with the parents or those who don’t want to put their asset at stake. These loans being unsecured carry a slightly higher rate of interest but this single negative trait is nothing against the benefit it offers. These loans are approved faster as compared to secured form of loans as the valuation of the collateral is not involved. There is very less paperwork involved in applying for such loans.

    Bad credit history tenant loans are loans with multi-usage as there is no restriction on how you use the loan amount. Besides buying property, car or boat, funding educational and health expenses, holidaying purpose these loans can also be used for debt consolidation which is am effective tool for improving credit score. As far as the loan amount is concerned you can borrow from ₤1000 to ₤25000 for a period of 12 months to few years depending upon the policies of the loan lender and the amount taken.

    Online option is the best way to apply for bad credit history tenant loans. There are dozens of websites to search from. However it is not the only option, you can also personally visit lenders for loan quotes but online searching can save lot of your valuable time and energy. With the help of tools such as loan calculators and comparison tools you can easily find a loan package of your choice. The final step is to apply for the loan by filling an application with the requisite details such as name, address and contact information, date of birth, loan amount required, purpose of the loan. Once the lender is satisfied he will process your request for approval.

    Bad credit history tenant loans is the most convenient way of getting financed while not letting your bad credit score trouble you.

    Used car loans - a luxury you can afford

    You dream of owning a car but find impossible to purchase it. If that is the state you find yourself in then used car loans can help you own a car. Having a car is now not the privilege of the elitist any more. With the help of used car loans it has become an option that everyone can avail.

    Used car loans as the name suggests are loans offered to people who want to buy second hand or used cars but cannot afford it. The reason may vary from person to person but the prime reason being that people find it too expensive and financially unaffordable.

    Getting used car loans now days is no longer a difficult task. All you need to do is to go online and search for a lender or organization that provide used car loans. Before applying for a loan, you should know where you stand as far as your finances are concerned because you have to be prepared for repayment of the loan after a certain time period. Find out answers to the following questions:-

    • Which car do you want to buy?

    • What is the cost of that car?

    • How will it affect you financially?

    After you have got answers to all your questions all you need to do is go online and fill in loan application form with your details. After that, the lenders or the organization will refer back to you with a loan decision. An important factor that the borrowers are always concerned about is the price of the car. If you are also the one who looks out for the price then you should know what blue book is? Formally, it is known as Kelly blue book and it is an industry guide to calculate the wholesale and retail prices of used and new cars. It can help you in calculating a correct price for the car that you want to purchase. For the convenience of customers, these are available online too.

    Used car loans are available in both secured and unsecured loan forms. If you want secured loans all you need is to provide collateral to the creditor which may be your car, your home or any other asset. This method of taking used car loans allows the borrowers many benefits like low interest rates and easy repayment schedules. The second alternative to the borrowers is that of unsecured loans where you do not provide any collateral to the creditors. This can result in paying of higher interest rates than usual.

    Used car loans are now available to everybody, even to people who have had a history of bad credit i. e. people with defaults, arrears, who have previously filed for bankruptcy or have been adjudged bankrupt, and with IVA’s. Lending organizations have now opened the doors for those people who were earlier refused loans. So if you are a person with bad credit history you can also get used car loans. All lending organizations just need is a credit score of yours, which would be based on how you managed your previous debt repayments. An advantage of applying for used car loans for people with bad credit history is that they can now improve their credit score if they follow the terms of agreement thoroughly.

    Cars are fantasies of many people but not everyone can afford them. Nowadays, with the advent of car loans everyone can get a car, or at least a used car. Used car loans are available in both secured and unsecured forms; hence, they can serve every class of people. Therefore, even if you have financial problems you can get used car loans tailor made to your requirements.

    Tenants end your hunt for loan unsecured tenant loan

    Being a tenant, I was facing a problem in availing the loan. I have always been refused loans by various lenders only for a reason that I didn’t have my own property. Unsecured tenant loan showed a faith on me. It is a kind of blessing for me, other tenants and the people who are facing problem in availing loan just because of the reason for not owing a property.

    Now taking a loan is no longer a dream. Unsecured tenant loan enables us to get loan though we are not a property owner. Unsecured tenant loan is just a form of unsecured personal loan. Nowadays the market is full of lenders who provide unsecured tenant loan at your convenience and that suits your budget.

    Unsecured tenant loan are sanctioned and approved quickly as they do not involve any asset valuation. The person to avail unsecured tenant loan has to furnish some details such as his identification, proof of residency and his source of income to the lender.

    Apart from all banks and building institution, the online lenders also provide this loan. Online lenders just ask you for certain details in the application form and if they find you eligible for the loan, they get back to you within few hours. In addition to speedy applications of online tenant loans, one of the benefits is that the borrower can apply for loan from the home itself and at anytime. Now almost every lender uses electronic fund transfer, so the borrower can receive the money within few hours of getting loan approved.

    Unsecured tenant loan are much safer than any other loan as your property is not involved. The person can use the unsecured tenant loan for consolidation of his debts, for his home improvements, financing his car and paying off its previous debts or any purpose.

    The people with bad credit history, such as with arrears, bankruptcy can also apply for such loans without any hassle. But the person should always remember that the good credit history is always a positive score in availing a loan. The good credit score helps the person to borrow on easy terms.

    One of the shortcomings of such loans is that the interest rate is charged higher than any other secured loan. As the borrower is borrowing money without collateral, to compensate the risk, he charges higher rate of interest. As no property is involved, the borrower should not think that the lender could not liquidate his asset when he misses any of his payments. It is correct that he cannot liquidate the asset but he has the right to take the borrower to the court in case of any miss payment. Therefore, the person should consider his ability to pay back before going for a loan.

    How to use a payday loan

    If you are a week or two away from payday and need cash urgently, then a payday loan might be the answer. Payday loans are short-term loans that give you the money you need until you get, at which time you have to pay the money back. Payday loans are also known as cash advance loans or cheque loans. If you are in need of cash before payday, then this guide can help you to decide if payday loans are right for you.

    How much can I borrow?

    The amount of money that you can borrow is usually quite low, because the loan is for the short term and you can get it quickly. Somewhere between Ј50 and Ј400 is the usual amount. The way you get a loan is that you write a personal cheque for a certain amount of money plus the fees, and then the lender will give you that money in cash. The lender will hold the check until your next payday, and then if your situation is better the lender will cash it in. If you still cannot pay, you can pay more fees to keep the cheque held for a few more weeks.

    What are the advantages and disadvantages?

    The advantages of payday loans is that you can get hold of urgently needed money very quickly, which can get you out of a tight financial situation. The loans are also useful for people who have poor credit and so find it hard to get other types of loans or credit cards. The loans are good if you know you can pay back the amount in a few weeks when you get paid.

    The biggest disadvantage of payday loans is that the fees are very high. Normally you will have to pay around 10% or more of the cost of what you borrow. So borrowing Ј100 is going to cost you Ј110, or even more if you keep extending the borrowing time. You can also end up in a vicious cycle where each month you run out of money too early because of having to pay the original loan back. Payday loans should be used as a last option, or if you know that this month is an exceptional month and you will be back on track afterwards.

    What are the alternatives?

    There are a number of alternatives to payday loans, especially if you have good credit. You could use a credit card to pay for the things you need and then pay this amount off at the next payday. Although credit cards have fairly high interest rates, if you know you need more than a few weeks to pay back the amount then this interest is cheaper than a payday loan. If you need more long-term help with debts or lack of money, then a personal loan might be a better option, as long as you can afford the repayments. If you have poor credit, then a payday loan is often the best option because there is no credit check. The only information that needs to be verified is your current employer.

    If you are struggling for money before you reach the end of the month, then you should look at payday loans as an option to help ease your short-term financial pressures. However, you should make sure that you only borrow as much as you can afford to pay back next month whilst still having enough to make it to the next payday.

    Should you borrow from your 401 k or tsp

    Conventional wisdom says that you should never, ever borrow from your 401(K). Financial gurus tell us that we should not take money out of our 410(K) for tax reasons and that many people do not have the self-control to pay back the loan.

    With a Thrift Savings Plan (TSP), the government's version of a 401(K) it is a little bit different. Like the 401(K), you can take out a loan for 50% of your balance. The differences are that you have 2 different types of loans to choose from and you are forced to pay it back.

    The two different types of loans are either personal or for a primary residence. The personal loan has to be paid back within 5 years and the loan for your primary residence has to be paid within 15 years. It must be the primary residence.

    There are a couple of things I like about this. I can take out the personal loan and still use it for a residence that is not my primary. And, all I have to do is fill out a one-page form and send it online or fax it, and I will have a check in 10-14 days. I looked into taking out a home equity line of credit (HELOC) and the amount of forms was ridiculous, credit checks, and about $8,000 in fees.

    I also like the low interest rate. It is currently at 4% (30 Jan, 2008) which was 2 percentage points lower than the HELOC. I will be borrowing the money from myself and paying myself back with a 4% premium.

    The key to this type of loan with the government retirement program is that, once I take the loan, the payments will automatically be deducted from my paycheck the next pay period. This will be the forced self-control. I have to pay it back, it is a payroll deduction.

    I do have to pay a $50 fee for processing the paperwork. That is minor compared to $8,000 for the HELOC.

    Granted, you want to look at other ways of borrowing money and compare the present and future costs of all plans. As of June 2006, there were 750,000 outstanding loans totaling more than 5 billion dollars.

    So, I am not the only one borrowing money for a house, college, or some other major project. I may lose a little in tax advantages, my TSP fund will be cut in half for a while, and it will take a few years to get my retirement fund back to "normal".

    Borrowing from a 401(K), without being forced to pay it back, is the reason that most financial planners say that borrowing from your retirement fund is a loan of last resort.

    The automatic payroll deduction to my retirement account was the key that convinced me that I would borrow from my TSP. The low interest rate and simple application helped too.

    Debt management improve your credit now

    If you are a borrower who is overburdened with innumerable debts, you may be having a very tough time. Constant debt burden can weigh heavy on the financial status of the borrower. Therefore, it is very important that you carefully plan out your course of action.

    It is important for you to manage your debts properly if you want to get over the debt burden.

    A debt management plan enables you to consolidate the existing debts into one single loan and make a payment for the same. Any borrower who is indebted to more than two creditors can avail debt management plan.

    Following these simple steps will help you get out of debt easily.

    • Spend only on the essential items – Ensure that you don’t spend money recklessly on things you don’t need. Spend only on the basic necessities. Also, always pay only by cash and not through credit cards.

    • Prepare a budget – Follow a budget which takes into account your earnings and spending. This will help you keep an account of your spending.

    • Pay On Time – If you always make payments on time for all your debts, you will never fall in the debt trap. This can also help you keep your financial situation intact.

    • Switch over to a cheaper debt plan – This will help you to reduce your debt burden and get a loan at a lower rate of interest too.

    Alternately, you can also opt for a debt consolidation plan. A debt consolidation plan will help you consolidate all your debts into one single loan and make a single payment for the same. It goes a long way in reducing your debt burden.

    Debt consolidation is the easiest solution for all your debt problems. Debt problems occur when one borrows money for some personal expenses and is unable to payback the amount to the creditors on time. This problem if not handled at the right time can lead to serious financial complications. Almost everyone finds themselves suffering from debt problems at on point or the other.

    Therefore, debt consolidation comes across as the easiest solution for all the debt problems. Under this scheme, a debtor can consolidate his debts, negotiate with the creditors, reduce his debts by up to 40 per cent – 60 per cent and also restructure the payments in easy monthly installments. Moreover, the borrower can also eliminate late fees and taxes too.

    What’s more? You can also get over the bad credit problems with the help of debt consolidation. A borrower can easily improve his credit and improve his financial situation. You can even apply online for a debt consolidation plan and save your precious time.

    Secured loans an assurance to a carefree tomorrow

    Secured Loans facilitate borrowers to avail of capital against the value of the asset placed as security with the creditor. The creditor now has the ownership rights to the asset, which acts as guarantee against the loan. Although the asset is normally in the form of a home, security can also be offered by placing any concrete property, a vehicle or a valuable asset as collateral. This is why; secured loans are often referred to as “Homeowner Loans”, “Home Loans”, “Secured Personal Loans” or “Second Charge Loans”. For secured loans, the loan amount ranges from Ј5,000 to Ј75,000 and the repayment period extends from 5 to 25 years. The purpose of taking a secured loan could be consolidation of your existing loans, to clear out unpaid bills, making home improvements or for taking that much needed holiday!

    The interest charged on loans is known as APR (Annual Percentage Rate). For secured loans, it varies, depending on personal details of the borrower (like credit history), the loan amount, the loan term, etc. Although lenders are legally obliged to familiarize borrowers with the effective APR and other costs involved in taking up the loan, many of them, to fill up their coffers involve hidden costs that increase the loan cost tremendously. Sufficient collateral with good financial conditions will get you the best interest rates and a more relaxing repayment option. Converse will be the case if a borrower invokes insecurity with the lender. A creditor will then respond with relatively high interest rates, scrutinize the borrower’s case more minutely and decide on repayment options, which he feels - will bring back his money safely. When one applies for a secured loan, he signs an agreement that is called a security agreement. This agreement reduces interest, because the lender now has security against which he is lending his money.

    As secured loans are backed by collateral, most lenders approve loans even in cases of CCJs, defaults, county court judgements and arrears. This make secured loans very attractive to people who would otherwise not qualify for a loan from their local bank. If a borrower has exceptional credit history and good financial standing he can expect amounts ranging up to 125% of his property value. All this depends on how comfortable a lender feels with the borrower’s collateral and credit history. People who have bad credit and disorderly financial conditions might find it difficult to get even a sum of 70% of the total value of their collateral. Thus, you can avail of a secured loan even if you have bad credit history, what you need to have is concrete property that can act as collateral or security.

    Benefits of Secured Loans:

    • The interest rate charged on secured loans is the lowest because the risk borne by lenders is very minimal.

    • Repayment of secured personal loans is spread over a greater time frame.

    • The Repayment period can vary from 3 - 25 years.

    • The interest for secured loans varies, depending on personal details of the borrower (like credit history), the loan amount, the loan term, etc.

    • Secured Loans offer flexible repayment options that should be chosen carefully after shopping around and comparing quotes.

    The hassles associated with the process of getting a secured loan, dissuade many borrowers from getting one. They find, filling up applications, answering endless questions, incising enquiries on their credit history and bank balances, too time consuming and obstructive. The solution to these impending problems is to look for a lender who offers online applications or completes the process with minimum documentation and a minimum encroachment on time and privacy. It usually takes around 14 days for a secured personal loan to be completed and you can cancel any time within this period, with no penalties.

    The common denominator in all definitions is that borrowers want the amount desired with minimum interest rates, minimum hassles, maximum flexibility in repayments and zero overhead costs. Shopping around and involving yourself in the loan selection will reap these benefits. Hard work bears fruit, so get going today!!!

    Home equity loans after bankruptcy choosing a low rate lender

    After a recent bankruptcy, your loan options are limited. Those needing quick cash for home improvements, wedding expenses, or college tuition may be unable to secure the necessary funds. However, if you own a home, getting approved for a home equity loan following a bankruptcy is a realistic option.

    Understandably, banks and credit unions are reluctant to approve an unsecured loan or credit card application. Because home equity loans are secured by your property, lenders are more equipped to take a gamble. However, if the loan cannot be repaid, you will lose your home.

    Benefits of a Home Equity Loan

    Homeowners obtain home equity loans for various reasons. In fact, some apply for these loans in an attempt to avoid bankruptcy. Home equity loans are perfect for debt consolidation and paying past due utility bills. The interest rates are typically lower than credit cards and most consumer loans. Thus, homebuyers are able to payoff debts, improve credit, and save money at the same time.

    Some prefer home equity loans because they do not involve closing costs. Refinancing an existing mortgage is great for obtaining a lower rate and receiving cash. However, because a new mortgage is created, homeowners are required to pay closing fees, which could amount to thousands of dollars.

    Home Equity Loan Lenders

    Getting a low rate on a home equity loan following a bankruptcy will require work. Homeowners must be prepared to research various lenders and negotiate a good finance package. To begin, submit a loan application through your existing mortgage lender. If your payment history is acceptable, the lender may consider this when approving your application. Thus, you may avoid paying a higher rate.

    If your lender offers you a seemingly unbeatable rate, do not stop here. Continue to obtain quotes from other money sources. Shopping around for home equity loans online is popular. Mortgage websites make it very convenient to get approved for a loan without leaving your home. Simply submit your loan application and wait for a reply. Within a few hours, lenders will contact your with their best offer.

    After obtaining at least four offers from home equity loan lender, compare each offer. What are the terms? Interest rate? Monthly payments? Subsequently, pick the lender that offers the most desirable mortgage package.

    The easy payday loan - why payday loans are easier to get than credit cards or personal loans

    Payday loans are easier to get than credit cards or personal loans since there is no credit check involved. And because payday loans are meant for a short period, usually 30 days or less, payday companies don’t require an extensive background check.

    No Credit Checks

    Credit checks take time – several days in fact. And when you borrow large amounts, like with a car or home loan, it makes sense for a lender to make sure you aren’t too high a credit risk.

    Cash advance companies deal with much smaller loan amounts, between $50 and $1500, so they can afford to lend to anyone with a regular source of income. Not only do you not have to worry about your credit score with a payday loan, but you also reduce time spent processing your loan application.

    Quicker Turnaround Time

    Getting a cash advance is also quicker than applying for other forms of credit. By submitting your contact and checking account information, you can be approved within minutes. After a quick verification of your information, your lender can wire your cash into your checking account within a few hours. A credit card or personal loan can take weeks to process as lenders check your financial background.

    Flexible Hours

    By using an online payday loan company, you can apply anytime. Most applications are processed over the internet, so you can get a response even in the middle of the night. And with most lenders, you can contact a representative outside of typical business hours.

    Easy Comparisons

    Besides the ease of the process, you also can compare lenders much easier than with credit card companies or banks. Most cash advance companies will post their fees or APR on their website in the FAQ section. By checking out several lenders, you can be sure you are getting the lowest fees.

    No Credit Affect

    Payday loans stay off your credit record as long as you pay them on time. With credit cards or personal loans, using credit or having several open accounts will lower your credit score. Payday loans don’t have that affect, and they make sense for short-term financial emergencies.

    Finding the best california home loan

    California is one of the best areas in the United States to live and people often want to buy property there. Hence, to meet the needs of homebuyers California home loans are always available.

    California mortgage rates are becoming popular with time, so it is very important to know more about California home loans.

    The ambition of “California home loan” is to provide you low mortgage rates and home loans at a lower interest.

    If you are going to apply for a home loan, you should consult with a financial advisor. Your financial adviser will explain you about the interest rates and the different loan packages. Often, financial officers will suggest you a home loan for which they earn high commission. So you must be careful of that and depend on a reliable advisor. Again in some cases your advisors might think that you know enough about rates and loans, hence they do not take time to explain you more about the loan package. So it is very important for you to ask questions about different home loan packages.

    Before applying for any loan package you should ask the following questions:

    1. What is the interest rate of respected home loan?

    2. How much money you will have to pay per month as EMI?

    3. What are the risk factors of specific home loan package?

    4. Whether it is fixed rate home loan?

    Educate yourself about financial terms, which are mostly used by financial officer or brokers such as ARM (adjustable rate mortgage loans), FIRM (Fixed interim-rate mortgage) and many more. This will give you chance to discuss your problem with financial officer and understand his explanations without much effort.

    After your research you will find that California home loans are the best among all as it provides you with all modern facilities like online loan, no doc home loan and many more.

    Erasing financial troubles bad credit secured personal loans

    Finance is very much an important source of living just as oxygen or water. You can’t do without any of them for a long time. But getting oxygen and water is easy as compared to finance. You need to put lot of efforts to earn money, still you face shortfall of money sometimes. This happens when you think of something big, something which you desired for a long…..something that can give you the inner happiness and something which you can’t have due to financial incompetence and bad credit. To cover up this shortage of money, bad credit secured personal loans are here.

    A bad credit secured personal loans are meant for people who are denied from getting other form of loans due to their bad credit. There are two things you need to know to understand the concept of bad credit secured personal loans. That is ‘What is a credit score and what is your credit score’. Credit score is the measured form of your bad credit history. It helps a lender to find out your debt status easily without going through your credit report. Credit rating agencies calculate your credit score and maintain your credit report. You can easily get this report at some charge to study and compare your debts according to it.

    Bad credit secured personal loans are basically secured by some collateral which can be your home, real estate, car, boat or any other valuable asset. These loans are at low rate of interest combined with flexible repayment terms. You can borrow larger amounts for longer term under such loans. This ensures you smaller monthly installments, so that your budget remains unaffected. Being secured, this loan act as the right financial partner for people with bad credit score, defaulters, arrears, CCJ’s and IVA’s, people with large number of debts with them.

    You can use the bad credit secured personal loan for buying property, financing your existing business or starting a new one, home improvement, wedding or health expenditures etc. Besides catering to personal needs you can also use the loan amount for debt consolidation which is an effective tool to recover your bad credit. You can pay off all your debts with the loan amount so that there remains only a single debt. This removes the hassle of calculating and paying each debt separately.

    Applying for such loans is easier through online option. It also gives you a platform for comparing the loan quotes on the basis of interest rates and repayment terms. Application form should be filled with apt information such as name, address and other contact information, loan amount required, value or equity in the collateral, residential status, some lenders may ask you about the purpose of the loan depending upon their policies. Once the lender is satisfies with your application he will process your loan request. It takes hardly 12 to 15 days to get the loan approval. With a bad credit secured personal loan you can surely secure your dreams with proper financial support.

    Faxless payday loans source of cash

    Cash is the solution of all the financial problems that can occur in unexpected hours. But if you have no ready cash and you need it badly then you have to ask your friends and relatives. Moreover, you do not want to apply for the loan as loans have high interest rates. Your friends or family members also refuse you for the cash. In that situation, faxless payday loans are the best source of cash in the time of unexpected financial problems. With faxless payday loans, there is no requirement of faxing the documents and any other boring formalities. The advantage of the faxless payday loans is that the cash will transfer into your account within few hours after the verification. If you have no fax, machine and you also do not want to fulfill documental formalities then faxless payday loans are the best option for you. For faxless payday loans, you are to apply online and fill up an online application from and the cash will be in your account. As you know, all the payday loans are short-term loans and have a high interest rate. Faxless payday loans are also the member of payday loans.

    You can apply hassle free. You are to fill up an online application form and few details about yourself. For faxless payday loans, you must be an active checking account at least 6 months old, your income must be more than 1000 monthly, and your age should be more than 18 years. You have various options to use the faxless payday loans. If you are planning for the Christmas, holidays or dream vacation or you are to fill pay the medical treatment bill, school or tuition fee then faxless payday loans will be suitable for you. If you want to arrange a small party at your home or in hotel then Faxless payday loans are the best option. If your credit record is not good and you want to improve your credit record, faxless payday loans can assist you. Your credit record does not matter for the lenders. You can get 1500 easily.

    Search online you will find many lenders who are ready to provide you the cash. You are to select the suitable lender and complete few formalities. Different lenders have different interest rate, you are to read the terms and conditions of the lenders carefully. Because the loans which you are going to get, have to repay only you. Rate of interest depend on your credit score and on the amount, which you are going to get. Faxless payday loans have high interest rate, the repayment process of faxless payday loans are short-term. Faxless payday loans are to repay within 20 days. Therefore do not hesitate apply online and make your life hassle free.

    Logbook loans - money against vehicle logbook

    Logbook in simple terms means a vehicle registration certificate issued by Driving and Vehicle Licensing Agency (DVLA) in the UK. I hope you are aware of the fact that registration document V5 popularly known as logbook has become invalid from July 2005 and is replaced by a new style vehicle registration certificate (V5C). A logbook is valid up to 5 years and contains entries regarding owner of the vehicle, registered keeper of logbook, chassis number, current registration mark, engine number, model and color of the car. You know various means of borrowing. But, do you know you can borrow a loan by using a logbook. Yes, it is true, now you can borrow a logbook loan.

    A logbook loan is a kind of personal loan secured against a car. A UK resident who has a logbook registered in their name is eligible for logbook loans. Lenders in exchange keep the logbook of the borrowers with them against the loan. Borrowers can enjoy the complete freedom to drive their car without any restrictions from the lender.

    Amount that a borrower can borrow with a logbook loan ranges from Ј500 to Ј50,000. The loan amount is determined on the basis of value of the car minus any outstanding payments due to be made on the car.

    Following criteria are to be met to become eligible for a logbook loan:-

     To be eligible for a logbook loan, the logbook should be in the name of the borrower.

     The vehicle against which logbook loans are taken should be less than 8 years old.

     A borrower of the loan should be in full time employment. He or she should have some regular source of income; you have to give proof of your income.

     Vehicle should be clear of any finance. There should not be any due payments on the vehicle.

     Vehicle should must be insured and taxed. Vehicle against which the loan is taken should be insured as the lender wants to be on the safer side.

    Credit score is considered to be an important element by lenders in UK while lending money to the borrowers. The best thing about logbook loans is that it does not involve credit check. So, whatever may be your credit rating you need not worry, you are eligible for a logbook loan if you meet the above criteria. Problem cases such as people who have faced CCJs, bankruptcy can also apply for this loan.

    Logbook loans can be borrowed from banks or financial institutions. But, if you are looking to get a fast and best logbook loan, you can apply for it from online lenders. Online loans offer the convenience of applying for the loan and saves time and money. A borrower can access infinite number of online lenders by using the internet from home or office.

    The process of applying for an online loan is swift. Lending websites usually offer an online application form on their websites, which a borrower is required to fill. A borrower just needs to fill up this form with some personal details such as borrower’s name, loan amount required and many other details. These details help a lender to find the most appropriate loan for the borrowers.

    When you will search for the logbook loans online, you will find a number of lenders who will be ready to offer you the loan. But, don’t get fascinated by the offers you get. Do a bit of search and you will definitely find a better option. Collect loan quotes from several lenders which are available free of cost or for nominal charges and compare them to find the best and cheap logbook loan.

    It is amazing to find that besides enjoying a long drive in your car, you can also get a loan against your car. Thanks to logbook loans, now it has become pretty easier to turn your car into cash by keeping your car logbook as a security.

    Termination of employment

    : Has your employment been or about to be terminated? Under the amendments to the Workplace Relations Act 1996 in effect since 27 March 2006, employees employed in businesses with fewer than 101 employees are no longer eligible to claim unfair dismissal. This means that if you are employed by a business that employs fewer than 101 employees, you will not even meet the threshold requirements for being able to claim that your employment was terminated in circumstances that were harsh, unjust or unreasonable. However this does NOT necessarily mean that you are left with no legal avenues by which to challenge your dismissal or to at least make sure that you are adequately compensated by your employer. Regardless of the number of employees in the business from which you have been terminated, you may still have several options available to you including claims for: • > unlawful dismissal (as opposed to unfair dismissal) – and you may even be eligible to receive a government subsidy up to the amount of $4,000 to run your claim • > wages and conditions arising from Award non-compliance • > breach of the Trade Practices Act 1974 • > breach of contract including breach of implied contractual terms • > breach of workplace policies • > defamation • > bullying and sexual harassment • > breach of the Independent Contractors Act 1996 • > notice payments • > redundancy entitlements As a firm with extensive employment law expertise, Rosendorff Lawyers will be able to assess your termination situation and comprehensively advise you of your options – which may turn out to be far greater than you had imagined.

    Unsecured consolidation loans a master key unlocking several doors to freedom

    Unsecured Consolidation Loans are primarily offered to individuals who find it difficult to manage their umpteen monthly payments and other debts. It is also ideal for those who find themselves in a position where they are incapable of repaying all that they borrowed. With this loan, a borrower receives an unsecured debt consolidation loan that he uses to pay all his pending dues, by planning a payment schedule with his creditor. The loan amount is usually restricted to Ј25,000 because of the absence of any security for the lender. All debts till date are thereby clustered or consolidated for an easy debt settlement; thus the name.

    The main attraction of Unsecured consolidation loans is that they help you overcome outstanding debts, when you do not have collateral to place, thus, doing away with the need for collateral. These loans are usually applied for by tenants, who do not have a home to offer as security, however, this does not stop homeowners from applying for them. Homeowners are also major clients, since most people refrain from placing their most treasured possession, “their home”, at risk. Sometimes, borrowers do not have the required security to ensure guarantee for the loan amount. Therefore, Unsecured Consolidation Loans can prove advantageous to almost anyone!

    For Unsecured Consolidation Loans, the creditor gets no security for the loan amount he is lending. This, therefore, justifies the fact that unsecured loans come with a higher rate of interest. However, it is unfair to generalize the high rate of interest in such cases because there is a lot of competition for finding lower rates in the market, today. Also, with a good credit score, there is a good chance that the creditor will negotiate the interest rate to a certain extent. Thus, by shopping around, borrowers can find themselves with an unsecured consolidation loan, at a lower interest rate. Ideally, you must find a loan with lower interest rates than what you are currently paying on your individual bills. However, if you do not lower your rates, you can lower your monthly payments by choosing a long term loan. The drawback of course, is paying more in interest charges. A low interest unsecured consolidation loan serves the purpose of debt settlement in the best possible manner because a loan with low interest rates is the chief demand of borrowers.

    Unsecured Consolidation Loans are surely a better option because they take your worries away and are definitely more convenient. Instead of many creditors you have just one creditor to deal with. The loan lender henceforth communicates with your previous lenders. The role of the debt consolidation loan provider commences after the debts have been consolidated. The creditor is paid one final payment in lieu of the amount due on the borrower. He is then requested to lower or freeze the rate of interest.

    Key Points or Benefits of Unsecured Consolidation Loans:

     Unsecured consolidation loans must have lower interest rates than the combine interest rates you are paying for all unpaid debts. Since the interest rate is lowered, so are the monthly bills.

     With smaller monthly payments for longer term, you are paying more interest rate. Try to repay unsecured consolidation loans in less than 10 years. Paying more means paying faster!

     It is easier to repay the debts in small and affordable installments.

     Your home or any property is never in jeopardy and your life id definitely more relaxed!

     By opening a loan account, your credit score is lowered, temporarily, for the credit activity and amount borrowed. You can offset this in part by closing accounts that you pay off.

    Although someone else schedules your payments for you, you have to take an active part in the entire procedure. The responsibility still rests in your own hands. It is absolutely essential to survey all possible options and creditors before taking a loan. Always shop around and get several quotations before finalizing the interest rates. Always do the math yourself, no matter how relieving it may be to get your debts “off your back”. It pays to do the groundwork yourself; after all, you do want to pave the way for a better and free tomorrow, don’t you???

    Quicker solution to financial troubles with quick secured loan

    Life can sometimes be easy sometimes difficult. Easy moments are to cherish and difficult ones are what everyone wants to avoid. But you can’t do that you have to face bad times also when you need quick finances but you don’t have. A quick secured loan can help you get the apt support when you really need it.

    Quick secured loans are secured loans with faster approval for your urgent needs. Such loans are secured by your property mostly your home as collateral. The title of the collateral is transferred to the lender at the time of agreement for a quick secured loan is signed. However, the possession remains with the borrower. Presence of security ensures low rate of interest along with smaller installments spread over a longer period. Quick secured loans allow a borrower to get amounts from ₤5000 to ₤75000 for a period of 3 to 25 years depending upon the loan amount and the repayment capacity.

    People often are troubled with their bad credit while looking for loans, but with a quick secured loan people lying under the following heads can easily apply for loan:

    •Defaulters and arrears

    •CCJ’s and IVA’s taken in the past

    •People with lot of debts or unpaid credit card bills

    •People with bad credit history and poor credit score

    •Bankruptcy

    Quick secured loan amount can be used to cater any of your personal purpose. These purposes can be debt consolidation, wedding or health expenditure, financing business needs, funding children’s education, buying property, home or real estate or for purchase of car and boat or any of your personal financial requirement.

    Applying for a quick secured loan is easier with the online option. It gives you opportunity to compare among large variety of loan quotes from numerous loan lenders. There are tools such as debts and repayment calculators to help you out in comparison. The application form is quite simple to fill. You need to fill information such as your name, address and contact information, loan amount required, residential status, some lender may ask about the purpose of the loan depending upon their policies. Always go through terms and conditions before signing any agreement. You ignorance can lead you to pay more in form of hidden charges so beware.

    Quick secured loans hardly take 7-8 days for their approval depending upon the circumstances. Always consider your repayment capacity while applying for a particular amount. Applying for larger amounts can cost you in form of your collateral. So with little care you can fulfill all your wishes with quick secured loans.

    Confronting emergency financial crisis

    In today’s society, there really isn’t much a person can do that does not involve the spending of money. Money is needed for food, for travel, for communication, for house rents or mortgages, and even for meeting new friends. Many people live on tight budgets. This is why in times of an emergency, accident, or problem, a person is always faced with a financial crisis.

    Such financial crisis may lead to more complicated problems such as depression and rocky relationships with loved ones. This crisis may also drive anyone to escape to drinking, drugs, and gambling. But a person need not resort to these self-destructive means when a viable option is available. This option is called the payday loan.

    Payday loans are cash advances or short-term loans specifically created to confront such emergency financial crisis. Since the crisis is often urgent, payday lenders, especially the online ones, offer speed and convenience.

    Most payday lenders grant the loan during the next business day after the application or loan request has been approved. Applications are often approved during the same day and the loaned amount is deposited overnight into the borrower’s bank account. This fast processing is due to the Internet technology and the fact that lenders demand very little requirements. A potential borrower or client needs only to have a job which provides him a minimum monthly wage of about $1000 and to have a checking account which is at least three months old.

    Interests for payday loans vary from one lender to another. Such interest is usually stated for every $100 loaned. For example, a $20 interest means that for every $100 borrowed, the client will need to pay $20. Thus, for a $400 loan, the client needs to pay $480 on his due date. The due date is usually the date of the payday. This assures that the client has funds to meet his financial obligation with the lender. The lender usually debits the amount loaned plus the service fees from the client’s checking account.

    In cases when the full amount cannot be paid, the client has the option to renew or extend his loan by informing the customer service representative by phone or email. Or the client may access his personal online account in the lender’s website and click on the link for a loan extension. Of course, the client still needs to pay a certain amount on the original due date, the service fee.

    When a person meets his financial obligation and pays the loaned amount in full, he becomes entitled to borrow a higher amount from the lender whenever he needs a payday loan again.

    How to remove bad credit home equity loan

    The number one reason why some homeowners have difficulty getting a home equity loan is because of bad credit. In my company, we called it bad credit home equity loan.

    If you have bad credit and is trying to repair your credit score, it helps to understand how credit score is tabulated and the factors going into credit score.

    Credit score or FICO is created by Fair Isaac Corporation. It is a value that is used widely by many lenders to determine the interest rate that you will be charged as the homeowner. The credit score value range from 300 to 850. The lower your credit score, the higher your interest payment will be. Bad credit home equity loan applicants usually have a credit score lower than 600.

    Your credit score is really like your financial score sheet detailing every major transaction you have with the lenders. So who keep tracks of your credit score? In the united states, it is done by the three major financial institutions namely Transunion, Equifax and Experian.

    The factors that they take into consideration when determining your credit score are the amount of money you owed to banks, lenders etc. The length and type of loan. For example, your credit card loan. Your history of whether you have paid your monthly loan or interest on time. The assets under your name. Examples are houses and cars. If you have a job, it also factors in your monthly salary.

    Do note that your credit score may not be accurate from time to time. In fact, according to a recent survey, up to eighty percent of all credit scores are incorrect. I personally think it is not that high but there are cases where a person’s credit score is unusually low even when they have a pretty good credit record and no outstanding loan owed.

    If you think this is happening to you, you can question the credit score with the three major financial institutions I mentioned earlier.

    What about for married couples applying for a home equity loan? The credit score is determined from the person with the most sizable income.

    So in general, if you know you are going to apply for a home equity loan and has a bad credit, try to clear your current loans first. This will help to improve your credit rating. Another method you can use is to get a loan consolidation plan. By doing so, you are effectively paying up the previous loans and getting a new loan, therefore usually your credit score will increase.

    Obtain loans with extra profit

    Secured Loans can be an efficient short or long term funding solution for UK homeowners. If you are in need of money and have equity in your property, you are eligible to apply for a Secured Loans. Secured Loans are sometimes called second credit as they rank after your advance as security to the lender. Secured Loans must be registered as a charge on your property title at the land registry. In Secured Loans you find different lenders, those are very confident that the loan will be repaid. Another advantage is that Secured Loans offer more flexible terms of repayment than unsecured Loans. For example, the loan term can be for a longer time period enabling your monthly repayments to be kept down. Secured Loans can be used for any purpose. A secured debt consolidation loan can help you refinance expensive debt, such as credit cards or bank overdrafts, on to a mush lower interest rate. Secured Loans can be used to finance substantial home improvements to add value to your property, such as an extension or a new kitchen.

    In Secured Loans you get all the benefits on a tension free method but you must survive with some rules and regulations. Although there are many remuneration of a Secured Loans, there are some drawbacks that should be mentioned. In cases where a borrower fails to repay a loan, the property could be taken into possession and sold. Borrowers can also be tempted to borrow large sums for long periods without appreciating the commitment to repay a significant amount of interest, even when interest rates are low.

    Cheap unsecured personal loans serves multipurpose needs

    Cheap unsecured personal loans as the name suggests are for those who are looking for loans at a favourable rate of interest. A borrower can avail these loans without pledging any collateral against the loan amount. These loans are available for small to medium amounts, and are intended for people with good credit ratings, a steady source of income which would be enough to cover repayments.

    Even a non home owner can apply for a cheap unsecured personal loan. Compared to other kinds of loans, these loans carry favourable rates of interest. These loans are also approved faster. This is mainly due to the fact that lenders do not waste much time on property valuation and other legal formalities. Herein, the onus of risk lies with the lender. Therefore, the lender charges a higher rate of interest and covers up the risk. The lender covers the risk involved in the deal by charging high interest rate.

    Cheap unsecured personal loans are the best option to meet various financial requirements like debt consolidation, purchase of vehicle, home improvements etc. These loans can also be used for wedding arrangements, educational purpose and other short term requirements.

    A borrower can expect an amount up to ₤5, 000 as the loan amount. On personal request of the borrower, the amount can be raised up to ₤25, 000. The loan amount is sanctioned for a period of 5-10 years.

    Low Interest Unsecured Personal Loans – Know More About It!

    As a borrower, you may wonder if you can get a personal loan at a lower rate of interest in spite of your bad credit. We will make this happen for you by offering low interest unsecured personal loan. Personal loan for tenant are also known as unsecured personal loan. These are specifically designed to meet the personal needs of the tenants. Any borrower can avail this type of loan be it a home owner unwilling to put aside his property as collateral.

    Low interest personal unsecured loans are available to all kinds of borrowers at favourable rate of interest. The rate of interest depends on the credit score, loan size, past financial history of the borrower. Low interest personal unsecured loans are available online too. Applying online not only saves the borrowers time but also his money and efforts.

    These loans can be used for any of the purposes like – financing a car, meet wedding expenditures, debt consolidation, home improvements or planning of holiday etc. You can meet most of your urgent needs at one go with these kinds of loans.

    Interest rate and the loan

    The interest rate of the loan that you purchase is a very important number. This number will tell you just how much you will be paying for your purchase in the long run. See, it is not just that you are borrowing $5000. You are borrowing $5000 with an interest rate figured in. This is a much higher number than originally thought, then. Yet, this is the cost of borrowing money. One thing is for sure, though, you can find the right choice for your needs by comparing the interest rates that are offered to you.

    To do this, take some time to get rate quotes for the type of loan that you are looking for. If you are looking for secured financing such as financing for a home or a vehicle, this rate is generally lower than that of unsecured financing of a credit card or some personal loans. In any case, you will find that many lenders will provide you with an online quote of how much the financing will actually cost you. They will provide you with a quote as to how much of an interest rate you can qualify for. Do this with several lenders to find the lowest rate options for your needs.

    From here, use a loan calculator to help you to determine which the best is for you. You will want to enter such things as a the interest rate that was offered, the term of the financing which is the length of time it will take you to pay the money back as well as the amount of money that you will be borrowing. The calculator will then tell you just what you can expect from the financing at this point. It will include what you will pay in total in both interest as well as principle for the financing as well as telling you how much you can expect to pay for the financing monthly.

    Of course, finding the lowest rates of interest on a loan is essential to affording the financing both monthly as well as in the long run. You can change the criteria of the financing as well. For example, if you need to lower the amount of money that you pay per month on the borrowed funds, you may want to extend the terms of the financing to make them longer. If you would rather pay less, then shortening them will help. By far the best way to cut your costs in the financing, though, is to use a lower rate of interest. For that reasons you should always shop around for the right choice.

    With so many options offered to you right on the web, there are many benefits that can come from you purchasing financing here. By simply taking the time to find the options that are available to use, using one of the calculators to help you to figure them all out in plain English you can actually find yourself saving money in the long run. The right loan is the one that you can afford to own.

    Student loan consolidation rates set to increase on july 1

    Congress voted on and passed Feb. 1 the Deficit Reduction Act of 2005 that included massive cuts to federal student loan programs. The $11.9 billion in student loan cuts, including changes in laws regarding student loan consolidation, will negatively impact those students seeking a college education and others seeking to consolidate their higher interest loans. The industry expects a rush of students seeking to consolidate at the current low rates that are set to increase on July 1.

    The Deficit Reduction Act of 2005, S. 1932, was narrowly approved Feb. 1 by the House of Representatives. Passing by a two-vote margin of 216-214, S. 1932 was signed into public law Feb. 8 by President Bush, thereby approving the $11.9 billion in student loan cuts over the next five years.

    Students and graduates now are in jeopardy. With college costs increasing every year and the forthcoming higher interest rates on student loan consolidation, college students are rushing to consolidate before the July 1 rate increase.

    Student Loans Take the Hardest Hit

    The cuts to federal student loans are the worst among cuts to other federal programs including Medicaid, Medicare and food stamps.

    A majority of the legislation's provisions to student loans will take effect on July 1 and others will be implemented over time. Some provisions include an increase to 6.8 percent for federal Stafford Loans, from rates as low as 4.7 percent. PLUS fixed interest rates will jump to 8.5 percent, from 7.9 percent. The legislation leaves consolidation loans current fixed rate in place.

    Consolidate Student Loans Before July 1 Rate Increase

    With student loan consolidation rates set to skyrocket on July 1, now is the time for students and graduates to consolidate, according to NextStudent, the Phoenix-based education funding company. Students and graduates now are urged to consolidate as current consolidation rates can be as low as 2.75 percent with benefits applied. Other incentives to consolidate include a longer payment term, one monthly payment and no prepayment penalties.

    The following are other provisions affecting student loan consolidation that take effect July 1, 2006. Students and graduates should be aware of the new regulations so that they now can take action:

    Consolidation Loan Changes

    - Single holder rule is not changed

    - Eliminates in-school and spousal consolidation options.

    - A subsequent consolidation loan may be made in the DL Program only if the FFELP borrower wishes to obtain an income contingent repayment plan and, the borrower is trying to avoid default, but that is conditioned by the requirement that such a loan has been submitted to a guaranty agency for what used to be called "preclaims assistance" but is now labeled as "default aversion."

    - Also, in the Conf. Rpt. is a provision providing that only if a FFELP borrower has an application for a consolidation loan rejected by a lender or the application is rejected because the borrower wanted income-sensitive repayment terms, then the borrower can receive a direct consolidation loan.

    - A borrower with a defaulted loan can receive a DL consolidation loan to resolve the default.

    - Unless otherwise specified the terms of DL consolidation loans are the same as FFELP consolidation loans.

    Approval of the Deficit Reduction Act brings major cuts to student loans and a change in regulations regarding student loan consolidation. Although the legislation has changed to the detriment of those seeking a higher education, students and graduates still have the option to consolidate before the interest rate is set to increase on July 1.

    Student loans in the uk

    For many students in the UK their only option is to fund their studies with student loans. A company has been set up specifically for this reason and is logically called the Student Loan Company.

    Now that students do not get grants and have to pay their own tuition fees, a change which has only happened in the past few years, most students end up in a significant amount of debt by the time they graduate.

    The interest rates on these loans are very high and are not set to make a huge profit but purely to cover the interest rate on the open market. In addition to this, the repayments are not due until the borrower is earning a set salary. Once a year the Student Loan Company contact all of their borrowers and inform them of the minimum salary requirement in order to be eligible to start making loan repayments. The borrower then states their income and has to provide proof of it by way of wage slips covering the previous three months. The Student Loan Company then assess whether they are required to make repayments or not and if they aren’t the loan is deferred for another year and the cycle repeats itself. The beauty of this system is that all of the loans held by the borrower, which can be up to four in most cases as that works out to one per year of study, are held in the same place. The interest rates are calculated on each loan individually as the first one has been held longer than the fourth and the loans would be for different amounts, but the repayment would be calculated to cover all four. This would mean that only one sum would be paid per month rather than four separate ones.

    Should a borrower fail to reach the minimum salary requirement within a set number of years, the loans are cleared and the debt written off. This is done because the majority of university graduates will go on to earn higher than average salaries and so will pay off their loans. It also gives a safety net to those who fail to earn high wages as repayments can be quite high given the total sum many students borrow.

    What are bridging loans

    If you are in the middle of moving house, and you have found the perfect new home but you cannot sell your current home, then you should think about getting a bridging loan to pay for the shortfall.

    A bridging loan is a loan that you take out when there is a temporary shortfall in cash when you are moving property or business. You may also need a bridging loan when buying property at auction in order to pay for the property within the 28-day time frame. These loans are more risky for lenders, and so are more expensive. Therefore you should only get out a bridging loan if you know that you can repay the loan within 6 months.

    Who can get a bridging loan?

    A bridging loan is often easier to obtain that a normal loan or mortgage, with the self employed and people with poor credit history being eligible for such loans. Obviously this depends on the lender, but generally speaking you should be able to secure a bridging loan as long as you can make the repayments.

    How do bridging loans work?

    Bridging loans in the case of property work by allowing you to take a mortgage out on the new property, and then take a second mortgage out on the property that you are selling. You can usually borrow up to 65% of the value of the properties, minus any existing mortgages that you have. Depending on the property valuation this means you can borrow between Ј25,000 and Ј500,000 as a standard figure.

    How to get a bridging loan

    Getting a bridging loan is much like getting any other loan, and involves shopping around various online lenders and mortgage providers. However, the main difference is that for the bridging loan a valuation will be carried out by the lenders to ensure property value. The process usually takes around 7-10 days, in which time you can sort out the rest of the legal processes involved when buying a house.

    Costs

    Bridging loans vary in cost, with specialist lenders who specialise in giving loans for auctions having the lowest rates, as it is assumed you can afford the property as you have already legally bought it at auction. If you have bad credit then you will obviously pay more. Interest rates on bridging loans are usually worked out on a monthly basis, with an average rate being about 1.5% a month. Often, the interest rates for bridging loans is less important because you are going to pay back the loan quickly and the most important factor is getting the loan on time for you to purchase the new property.

    Any alternatives?

    If you cannot sell your house in time to finance the new property, then there are not many options open to you apart from bridging loans. Of course you could get a traditional loan, but this can take longer and the loan terms might be too long or the amount offered too low. If you know that you will have the money back from a property sale soon, then a bridging loan might be the right choice for you.

    Bad debt loans ensures that debts no longer trouble bad credit borrowers

    Borrowers with a bad credit history have little credibility among the loan providers. The debt burden further tatters the faith that the individuals would have enjoyed. In fact, debts are considered a prelude to the bad credit history. Debts become unmanageable and when not paid in full result into County Court Judgements and bankruptcy. These further result into bad credit history.

    The chain of events leading up to bad credit history can be given a break through a bad debt loan. Bad debt loan is a debt consolidation loan designed particularly for borrowers who have suffered or continue suffering from bad credit history.

    As in any debt consolidation loan, the ultimate aim would be to find a solution to the immediate problem of debts. Bad debt loans function in a manner similar to the debt consolidation loans offered to the regular borrowers. The borrower lists the total debts that are remaining unpaid, and the loan provider renders an amount equivalent to the debts, sometimes even lesser. This is when the unsecured debts form a majority of the debts. Such debtors are easily lured into lowering the amount repayable. The borrower is assisted, since he has to take a lesser value of bad debt loan.

    Gaining faith of the loan provider has ceased to be as uphill a task as it used to be in the yesteryears. Loan providers have accepted bad credit as a regular phenomenon. The large number of people who have contracted bad credit history has contributed largely to this acceptance.

    Loan providers employ other innovative means to safeguard the amount lent as bad debt loans. Principal among these is demanding a collateral from borrowers. Such loans are termed as secured bad debt loans. Though the borrower is obliged to repay in full the bad debt loan, both secured and unsecured, only the secured bad debt loan gives loan provider the right to directly claim repossession in cases of non-payment. This clause lessens the risk involved in a bad debt loan. The excessive interest that borrowers have to shell out on account of the bad credit history also gets toned.

    The amount offered under bad debt loans may not be equivalent to the amount desired. Borrowers will have to do with a lesser amount. Cautious lenders try to play safe by lending up to 60% of the collateral pledged. The amount ranges from Ј1000 and Ј100,000 for between 1-25 years. The repayment term is enough to allow borrowers to plan well for the repayment.

    Online Bad debt loans were launched to benefit borrowers who found it difficult to visit loan providers while their own work was getting hampered because of non-attendance. This has now become common with a majority of the borrowers preferring to apply online. Loan providers have other reasons to favour online loan processing. The regular rush of borrowers and personnel to deal with the rush can be safely eliminated if the applications are made online. Duplication of work relating to documentation is minimised. Faster approval of the bad debt loans is thus facilitated.

    Bad debt loans result in substantial improvement in the credit status. Regular repayments made on bad debt loan shows the borrower’s commitment to the credit process. These are positively reported in the credit file. Improvement in credit status will be beneficial both on the current loan and any other loan that the borrower plans to draw in the future. The borrower has better chances of the repayment schedule being made less strict in the event of financial depression. Borrower gets a better deal when the current loan is sought to be refinanced. When the borrower approaches for a new loan, he need not be penalized for a bad credit history.

    Guide to cheap boat loans

    If braving a river or an ocean aboard a boat thrills you steeply down to the bottom of your heart, you should think to own a boat. Alas however! Only a few of us can dream of owning such a delight. But not to worry, cheap boat loans enable you to tame one.

    Cheap boat loans are nowadays available for various purposes. You can take cheap boat loans for commercial fishing etc. However, they can also be used for recreation purposes.

    Cheap boat loans are of two types: secured and unsecured. Secured boat loans need you to offer collateral. On the contrary, unsecured collateral loans do not. A collateral can be a property like, an automobile, a house etc.

    The size of such a cheap boat loan ranges from Ј1,000 and Ј15,000. And, the amount of the loan you are wishing for depends upon three factors: credit history, repayment capacity and indeed collateral if you have one to offer. The better they are, the more handsome a loan, a term, and a rate of interest you can secure.

    Even if you are not a favourite with credit reporting agencies, you can get a cheap boat loan though the rate of interest may be higher and the term may be shorter than the prevalent ones. A down payment can further improve your chances of getting a cheap boat loan. Cutting down the loan apart, it will be a cut-down on overall interest and monthly instalment. The term of the loan will also recede.

    Though today’s finance market is competitive enough, and many brokers and commercial organisations are on their toes to extend their help to you. However, better will be the idea if you first consult those who have already acquired such a loan. You may find such people among your relatives and friends. The Internet is also a great help. It will not only provide you with the necessary information just on a click of mouse, but also save you time and money and energy.

    As known to all however, every good thing carries a bad aspect too. So does a boat loan. Since this is also a loan like others, you need repay it properly. Should you fail to do so, it may cause you discomfort in the form of missed payment fees, which adversely affect your credit history. Therefore, utmost care should be practised in repayment.

    Getting a boat loan financed does not only boost your social status, but also saves you the money you spend on hiring a boat. Even if it is taken for commercial purposes, it will save you shipping charges and bring timeliness to your business.

    Students consolidate loans now to save thousands in interest

    Going to college is about to get even more expensive.

    At a time when rising tuition costs already weigh heavily on future college graduates and their families, Congress recently passed a Bill raising interest rates on student loans and cutting $13 billion from the federal student loan program. These higher rates promise to have a significant impact on the cost of repaying student loan debt for years to come.

    The Bill impacts Stafford loans - popular because they require no credit check or test to qualify-and PLUS loans, available to parents of dependent undergraduate students, regardless of financial need.

    Under the new legislation, the interest rate on new Stafford loans will jump to 6.8% from the current rate of 5.3%, while the rate on new PLUS loans will jump to 8.5% from the current rate of 6.1%. Both rates will be fixed.

    The average cost of tuition, room and board has climbed at more than double the rate of inflation over the last eight years. Such hikes have also meant skyrocketing student loan debt, which rose more than 70% from $11,400 in 1997 to more than $20,000 in 2005.

    The good news for recent grads or students who will graduate this spring is that they CAN still lock in a low fixed rate. But there's not much time. With rate hikes expected to take effect on July 1st of this year, loans must be consolidated by June 30, 2006.

    "Time is absolutely of the essence-particularly for this year's graduates," said Frank Ballmann, student loan expert and an executive vice president at consolidation leader Educational Direct. "They'll need to act quickly after graduation to get the pre-July 1 rates, which would rise by over 1.5% on July 1 based on today's interest rates."

    Ballmann offers the following tips for students and their parents:

    • Students with $20,000 in student loan debt would pay an extra $300 in interest next year, based on the recent rise in interest rates, if they don't lock in the current loan consolidation rate.

    • The interest rate for consolidation loans can be locked in at a fixed rate for as long as it takes you to repay your loan.

    • Consolidation saves money and time-lowering monthly payments with a single fixed interest rate and simplifying the loan repayment process with one monthly payment.

    • There are no fees or credit checks to consolidate student loans; it is free and is a right given to borrowers under the federal loan programs, authorized in the Higher Education Act.

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