MORE than Finances

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Is Debt Consolidation Right for You?

Working Overtime - A Blessing Or A Curse3 reasons to refinance before you are caught in the debt cycle

A vast number of Americans live in a the debt cycle of spending more money than they have coming in while financing their existing debt. There are many reasons that people fall into the debt trap, yet only a precious few ways to break out of it.

The current sluggish economy has made it difficult to break out of the debt cycle. Cost of living continues to rise at historic rates, but income has remained relatively stagnant for the last few years.

What is the debt cycle?

Although not all debt is bad, having debts that you are unable to pay or debts that take away from your standard of living is not a good thing. Many of us rack up a lot of debt going through college, buying a house or after a severe illness or accident.

Paying off that debt can lead to an unsustainable lifestyle as we are forced to choose between paying our living expenses or paying off our debt. Since the immediate effects of not paying rent or a mortgage, skipping car payments or not buying groceries are apparent, the bills that most often don’t get paid are the ones that have no immediate effect other than on our credit rating.

The importance of credit

Generally, concern for our credit rating is well down on the list of needs. Food, shelter, work all come above it, but the health of our credit rating can have major effect on our standard of living, especially as we get older.

In addition to making it more difficult to buy large ticket items like a home or vehicle, a poor credit rating can cause unexpected problems when trying to get a job, getting auto or home insurance or renting an apartment or a house. Keeping your credit rating in decent shape should be a top priority.

Fixing your credit once it is damaged

If your credit rating isn’t in decent shape, there are steps you can take to repair it. However, the first thing you must do is to correct the underlying problems. Paying off your bills only to immediately begin accumulating them again only reinforces the debt cycle. To break free, you must fix the behavior that causes the problem in the first place.

Identify your financial problems, create a budget and reduce your spending, especially your use of credit cards that cause more debt. If that doesn’t solve the problem then there are things you can do to repair your credit rating.

  • Get copies and review your credit reports. In 2013 the Federal Trade Commission found that 25 percent of credit reports had errors in them. These can range from incorrect billing to outdated information. Fixing your credit might be as simple as discovering and disputing an error.
  • Raise your credit limit. Although this might seem counterintuitive, raising your credit limit on your credit cards but not utilizing them can improve your credit utilization ratio. This ratio is the percentage of credit you use compared to the credit you have. The lower the percentage, the better your credit is. Raising your limit while paying off your credit cards and not using them will improve the score.
  • Get a debt consolidation loan. Refinancing existing debt and consolidating payments can have multiple benefits. Your payments are lowered, there is less of a chance for a mistake to damage your credit and you only make one payment per month as opposed to multiple. Merging debts is not for everyone, but to see if debt consolidation is right for you, you should speak to a professional who is familiar with it.

Fixing your credit can be a lengthy process, so don’t expect overnight improvements in your rating. Patience and persistence will carry you through until your credit score is decent again.

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Creditpoor.Co.Uk – A 5 Star Service Making Impact In The UK

checkfica is a thriving credit broker in the United Kingdom. The company was established with a focus on borrowers with bad credit, who have a hard time accessing loans from other lenders. By streamlining their focus, they have been able to ensure their service is fair, transparent and their loan products are easy to understand. The company is approved by the FCA and has a reputation of being ethical and responsible in handling loan applications. As a result of staying as true as possible to their corporate focus and as a consequence of a solid reputation among the lenders, the company has grown to claim a reasonable and ever increasing market share.

By providing loans to a considerable number of borrowers across the UK, this company is helping people in a very real way to meet their personal goals, avert inevitable disaster, save lives in some cases, start businesses and more. By making credit available to people at the point when they need it most, CreditPoor. co.uk is changing lives and making  a valuable impact in the lives of their clients, and by extension, the whole country. There’s no way to measure this impact, but it is easy to identify that it is massive. As a result of the expert advice the company offers to its customers, thousands of loans have been taken and repaid, and thousands of more people have been affected by these loans. Indeed, many clients have a warm feeling whenever they come across visuals or a conversation that brings the name CreditPoor. co.uk to mind. There is no greater impact than this.

The company provides an impressive selection of loan packages most of which can be accessed from their easy to use website. Payday loans, for instance, target salary earners, who need quick money before their next paycheck. Because these people can assess these loans without necessarily having an excellent credit score, this type of service is very appealing to the target clients. It also offers logbook loans for car owners who need a larger amount spread over a longer time. This facility allows them to acquire the needed funds without hassles and affords them enough time to repay slowly. Other types of loans on offer are personal loans, with a repayment period of up to 36 months. This loan does not require a collateral, and little else is required aside from the fact that you have to earn a monthly salary.
This is a company which also offers guarantor loans where a guarantor vouches for the borrower, and he is allowed to repay the loan for up to 36 months. These packages are very friendly regarding interest rates and concerning ease and speed of access, two of the most important things to consider when applying for a loan. The flexibility of the loans themselves and the comfortable repayment plans make the services offered by the company more attractive. Having been in the business for a good number of years, they have gained reliability over time. But what is more interesting is that most of these loans can be assessed online and have an incredibly fast response time. According to their website, you can apply for a loan and get a response in as little as ten minutes. It takes more time to apply for and get a loan than it would take some to have a shower! This unbelievably short processing time is the reason many people are drawn to this lender when they need a quick loan.
The services offered by this lender are not only rare and handy especially for people with bad credit, but they are also valuable for people who have a short time to access a loan, as well as people who need to have a longer repayment period because of the size of their monthly income.

The impact can be defined differently by different people, but the important detail in the definitions would be the prospect of making a difference in people’s lives, the people being impacted. The services of bad credit site as a lender not only impact the lives of its clients positively, they also make an important contribution to the mini economies of these individuals and the aggregate of such contributions will most definitely affect the economy, w ell-being, and prosperity of the United Kingdom.

 

 

 

 

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Great Used Car Loans with Bad Credit: Possible?

key-949094_640While more and more Americans are relying on public transportation to get around, owning a reliable vehicle is still a necessity for the vast majority of us. Statistics show that 91% of US households own at least one car, with the majority stating that they require a car to drive to and from their place of employment. Out of all of those vehicles, 85% of them are financed through either a loan or a lease.

The price of a new car can be astronomical, causing many to seek out a decent used car instead, but financing your next ride can be a real nightmare when you have bad credit. Is it even possible to secure a good loan with reasonable interest rates when your credit is less than perfect? After sifting through a sea of lenders, it turns out that it is not only possible, but a lot easier than you might think.

A Few Stats

Those with bad credit know just how complicated borrowing money can be, especially in an auto loan. Based on a 4 year $20,000 loan, a credit score in the 590-619 range comes with a 13.656% interest rate, while a score in the 500-589 range comes with a 14.776% rate, both costing the buyer an over $6,000 extra over the course of the term. That’s just for a new car, it’s no secret that lenders are notorious for charging higher rates on used cars.

Those higher rates also come with higher monthly payments, easily an extra hundred a month based on the above example. However, there are lenders out there who have your best interest in mind, and are willing to help you secure a favorable loan.

Credit Unions

When it comes to getting used car loans with bad credit, becoming a member of a credit union is a great way to secure low rates while boosting your FICO score. Their members’ rates are already low to begin with, but most offer additional savings for members to knock the rates down even further. They are also well known for working with their members to help them boost their credit scores, and are far more lenient than a bank or dealership.

Capital One

You’ve probably seen their credit card commercials with Samuel L. Jackson, but did you know that this company is also a number one name in offering loans for used vehicles? Those with not so great credit will find that this company can offer them real financing options, and even provide loans for cars up to 10 years old with under 125,000 miles. They’ll help you to get pre-approved, and even offer account management tools, helpful FAQ’s to assist you with your purchase, incredibly useful loan calculators, and tools to help compare payments on specific cars.

The only drawbacks to this company are that they do not offer loans when buying from a private seller, and that the price range must be between $4,000 and $40,000. The latter shouldn’t be much of a problem since you will have to buy from a dealership anyway.

Auto Credit Express

This company specializes in helping those with bad credit finance vehicles, even if they have declared bankruptcy. They are capable of offering you lower interest rates and more options than most would even dare. You will not be restricted from applying based on the same criteria other companies use, and they even have an A+ rating from the Better Business Bureau.
Once again, you will not be able to purchase a car from a private seller, but that’s a fairly even trade off for how much lower their rates will be.

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Buy Me Something Big: Making up Your Mind When You Get a Cash Windfall

6551534889_9c8ae52997With potentially the highest housing prices and living costs in the world, many Canadians seriously struggle to afford steep mortgage and utility payments. Because of this, millions of people find it almost impossible to save any money, leaving them with a huge problem if a sudden expensive payment was due.

So, when a cash windfall comes through from something like inheritance or a tax refund, the temptation to go crazy and mindlessly spend can be overwhelming, simply because you may have never had that luxury before. But despite temptation, it’s important to get the balance right between being sensible and treating yourself. After all, regret is one of the worst feelings to experience and, if you look back and seriously regret how you spent the money, you’ll be left feeling very miserable. So, if you’ve just received a sudden cash windfall or are soon-to-be expecting one and want to ensure you make the right decisions, here are a few pointers to get you started!

Pay any outstanding debts or bills

Whilst it may be tempting to head straight to your favorite store and buy everything you like, taking care of the important stuff first is crucial. Establishing exactly how much you owe and paying it all off will not only give you a great sense of satisfaction but will likely reduce how much you would have owed as many debts gain interest the longer you leave them.

If you’re in the fortunate position of not having any debts or outstanding bills to take care of, brilliant news! But it’s always good to remember that anything can happen at any moment, so try to keep some saved just in case you end up having to take out a loan in the future.

Make lists of what you’d like to buy

Once all your debts are cleared, now is the time to start treating yourself and your family. But before rushing ahead and mindlessly spending, try making a list of everything you’d like to buy. Then, once you have your final list, identify the pros and cons of each one and establish which is most worthwhile.

If you’re choosing between an expensive vacation or luxury car like the Chrysler 300, which one is likely to benefit you the most in the long-run? Probably the car. Making decisions based on this principle is a great way to ensure you spend wisely whilst still buying what you want.

Don’t buy for the sake of it

If after clearing your debts and buying all worthwhile luxury items you still have a substantial amount of money left over, don’t just spend for the sake of it! Keep it safe in a deposit account to ensure you don’t mindlessly waste it.

Whilst receiving a sudden windfall of money is hugely exciting, it’s important not to go off the rails with it. Remaining sensible and getting the spending balance right will ensure you use your money in the most worthwhile, beneficial way possible!

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Give Yourself Some Credit: Good Ways To Use Personal Loans

Working Overtime - A Blessing Or A CurseWhat is always important to remember is that not all borrowing is bad and personal loans are a prime example of an effective and sensible form of lending that can prove to be the right option, as long as you use the money in the right way.

Here are some insights into a number of different scenarios where taking out a personal loan could be a viable and sensible option.

There is a look at how to define what a personal loan is and what you can do with the money, plus some tips on good ways to use the credit you are applying for, including how to get a better deal on your borrowing and when a loan could help improve your circumstances.

Before you apply

There are plenty of loan options available, as you will see when you visit a site like PersonalLoan.Co, but before you make any sort of application for finance it is a good idea to review what you want to borrow the money and whether borrowing money in this way is the right solution.

A personal loan can be used for just about any purpose and although lenders will often want to know what you intend to use the loan for, there are very few restrictions on what you use the money for, provided it is viewed as being borrowed for a responsible and legitimate reason.

Reducing your loan costs

A good example of when a personal loan could be a good borrowing option would be when you are taking out a loan to pay off other debts.

If you are paying off credit card debts that are attracting an annual interest rate of more than 20% and you can get a personal loan at a much lower rate of interest that allows you to clear those more expensive debts, you will be reducing your overall loan costs.

Consolidating your borrowing with one personal loan is a good strategy and will reduce your total borrowing costs.

You won’t be reducing your debt levels at that point and you have to be disciplined to ditch the credit card afterward so that you don’t build up a balance again, but debt consolidation using a personal loan can help reduce your loan costs, and it’s easier to manage just the one payment each month.

Appreciating assets

As a general rule, try to use a personal loan in circumstances where you the money is going to be used to enhance your own prospects or improve the value of something like a property.

Investing in educational expenses could open the door to a better-paid job in the future and that would be a good justification for borrowing money to gain better qualifications.

It can also be argued that if you spend money on home improvements this could increase the value of your home and this at least give yourself a chance of recouping the money you borrowed.

Always think about what you need the money for and how it will improve your situation. Taking out a personal loan for a vacation is a bad idea, for example, but borrowing to take better control of your finances overall, is just one scenario where applying for a loan could be a smart move.