Eliminate Debt in Six Steps and Plan for Your Future

Many Americans are in debt. Car loans, credit cards and student loans are the three most common offenders that linger in many family budgets. If you find yourself in this situation, you are not alone. Many American households are currently living paycheck to paycheck with no end in sight. This amount of debt is unacceptable in the world’s richest country. Something has to change as people continue to slip further in debt and their children watch and learn these bad behaviors.

Good spending habits are easy to explain. Do not spend more money than you earn. This allows you to keep debt at bay and out of your life. Many people probably would not own a car if there were no such process as a car loan. We have taught ourselves that borrowing money is the only way to survive. When we discuss loans, many people say that they have no problem with taking on multiple loans to fund their lifestyle. This contradicts the idea of spending less than you earn. Just because you can incrementally pay for an item along with the interest does not mean you can afford the item. You are essentially renting the item from the lender and you paying them for assuming the risk of loaning you money. This makes them rich while you continue to stay in debt.

People with good spending habits do not borrow money, they save what they earn, then make decisions to write checks for things that fit into their budget. This philosophy allows even the most modest earner to save for a long retirement. Think how much money you could save if you had no loans to repay to a lender, even including your mortgage. Once you achieve financial freedom, you can begin saving for retirement very quickly because the portion of your budget previously reserved for loan repayments can now go towards investment accounts, which helps you get ahead.

Over the past 20 years, I have developed a simple but effective plan that eliminates debt in a six-step approach that allows you to take over your spending habits and focus on debt elimination. If followed correctly, you should be able to eliminate the majority of your debt excluding your mortgage well within 30 months. This is not a very long time considering the average car loan is for over 48 months.

Step 1 is to build a budget. This sounds easy but many people have not sat down and built a budget to explain where every dollar they make is spent. In fact, if you were to ask a few people what their total monthly expenses amount to, they would probably have to begin by writing it on paper. Every household needs to follow a strict budget that is transparent and enforced. I bet the company you work for has a budget. I also bet your employer knows how much their monthly expenses are. This is because they do not want to default on any payments and your household should be ran the same way. Take the 30 minutes and write out an itemized budget.

Building your budget achieves three main goals. First, it enables you to see where you are spending money, which makes it easy to make some sound financial decisions. Next, it allows you and your spouse, if you have one, to be on the same page so you understand each other’s spending habits. This is important, you and your partner must financially unite or none of the other steps will work. Lastly, it tells you exactly how much money you have leaving your household. This information is very important leading into step 2.

Part of putting together your budget also includes eliminating extra expenses or at least putting some on hold. One that many may find difficult is the retirement accounts contribution elimination. Do not worry; this is only a temporary situation. Once everything but your home loan is paid, you will continue to contribute to your retirement accounts. It may seem risky especially if you have only a small nest egg but overall stopping these contributions allows you to throw more money at your debt, which ends the debt faster so you can contribute more to retirement later. If you were previously contributing $300 to an IRA with $30,000 in debt, after you pay off the debt, you can bump up the IRA contribution and max it out.

There are many ways to distribute the money in a monthly budget, which I will talk about later but here are a couple quick notes. Some rely on the 50, 30, 20 rule. This means to allot 50% of your budget to fixed payments such as car and home loans. The 30% goes to variable payments such as electricity and groceries and the last 20% would go to savings and investments. This strategy does not meet every household’s goals, especially when trying to pay down debt so I recommend that the numbers not be addressed until you are out of debt, excluding your mortgage. This allows you to set realistic expectations for your debt reduction timeline. Only after you have paid all the debt except the mortgage, should you use any percentage rules.

Step 2a is to create a small starter savings fund that is only for emergencies such as the car breaking down or you missing a day of work because you are sick. Different financial advisors recommend different standard amounts but I believe one set amount is not safe for every situation as some have more people in their household, which equals more liability. The numbers I recommend are $1,000 for singles, $1,500 for married and no children, then $2,000 for married with children. Again, this fund is only for unplanned events and anything outside of this small fund will have to come from the monthly budget. For many households, this alone might take a few months to build but stick with it because it is important to establish a financial buffer prior to step 3.

Step 2b is to grow and expand your income, if possible. Services like Uber and Lyft allow people to earn additional money with very little additional effort. You could also deliver pizzas, walk dogs, mow lawns or babysit in your spare time. Regardless of what you decide to do, the math tells us the more income you create, the more you can attack your debt. Filling your spare time with additional jobs makes it easier to disconnect the cable television service and lose that $150 a month bill.

Step 2c tells people that if any bills have gone to a collection agency, it is your responsibility to settle those debts and put them into your step 3, if not they will continue to haunt you and your credit score. While calling these agencies, you should know exactly what the debt was prior to any late fees. This will be your advantage when negotiating a payoff. I have seen an original $400 bill go over $900 after additional fees were added. The collection agencies buy those default accounts and try to collect whatever they can to earn a profit. If you give them $900, they will be ecstatic but you would have wasted your money. Begin the conversation by asking them the best offer to settle the bill. They will probably drop to what you originally owed but that is not their best offer. Kindly tell them you do not have that much and offer them one quarter of what you owe them. They may or may not accept it but just realize you can definitely negotiate the payoff. Also, ensure you request a signed letter stating the amount negotiated will clear the debt before you send any money. If possible, send by money order so they do not have access to your bank accounts.

Step 3 is what many people refer to as the debt snowball or sometimes the debt avalanche. You take all the debts, put them in order of lowest to highest total amount owed, and pay them off in that fashion. While doing this step, you pay only the minimums on the other higher debts and throw all additional money beyond your monthly budget at the smallest debt. I do recommend this method but I also want to save you as much money as possible so I throw a twist into this typical strategy. I also recommend mixing in what is called the laddering method. For any high interest loans, such as credit cards, payday loans or anything above the 10% range, I pay those off by highest interest rate first. This saves additional money because you avoid letting the high interest rates to linger. If you let them stay while only paying minimums it could cost you hundreds of dollars in interest. Take this example; you have a $25,000 student loan at 3% interest, a $8,000 personal loan at 9%, a $9,300 credit card loan at 28% and a $6,000 car loan at 5%. The snowball method tells you to do the car, the personal loan, the credit card and then the student loan. This will work just fine however; you will continue to pay a very high interest credit card payment, which will cost you more money because your minimum payment is probably not covering the interest that is gaining on the principal. I would recommend you attack the highest interest in this situation then revert to the snowball method. Remember; only attack the high interest items, typically credit cards and payday loans in this fashion, then continue the debt snowball method. Therefore, this example will have you pay the credit card first then the car, the personal loan, and finally the student loan.

Remember, this step only works if you are all-in and fully devoted to the outcome. For some it might only be 6 months while others take 36 months to eliminate their debt. You cannot continue to use credit cards, eat at restaurants or purchase items not on your monthly budget. Use your step 2 starter savings fund sparingly. It is only for real emergencies, if you have knowledge that you will need money in the future, it should be part of your monthly budget.

Step 4 is to finish building your emergency savings fund. At this point in your journey, you have paid off everything but the house so you have much more available income to set aside for a rainy day. Some financial advisors have a set amount they feel comfortable advising their clients but I really base it on your total situation. A single person has more risk because there is only one income to rely on, if the job goes away, then all of their income goes away too. Married people share the risks however, not all jobs are stable, and some people have commission-based jobs that do not provide steady income. Then there are people with children. In these scenarios, a household with children but only one income has some serious risks to evaluate. I typically tell clients to look at a span of 6 to 12 months. If you believe you have a low risk factor then you can have an emergency fund of about 6 months of your household expenses. This is if you are single, your job is stable, maybe your mortgage is paid and you have mutual funds available if you need to liquidate additional money. Not many people fit this billet so just remember if you lost your job, you must factor in how long it might take to find another one. For many families this may fall in-between $12,000 and $24,000, depending on your situation and lifestyle. This is not some large slush fund. Save what you need and move on to the next step because at this point, if you have an emergency, you will have this fund and you should have retirement money through mutual funds.

Step 5 is to focus your money on your investments. Your investments, for this step include your children, your home and yourself but not necessarily in that order. You can prioritize the investments in any order you choose and reconstruct your budget with percentages. Before you begin, you should take into consideration a few factors. The age of your children could drastically affect the way you will invest for their college budget. If you have teenagers and no college funds at all, you will have to develop a strategy to not only catch-up but you will also have to include a school and job option because your investments will not be able to gain much traction in that short time. If you have young children that have not entered kindergarten, you might want to invest in a 529 Plan or Coverdell Education Savings Account. As always, research your options and decide which one works best for your situation and be aware the federal government may change contribution and income limit rules for these investments annually. Generally, if you have the money, you might want a 529 Plan because you can contribute large sums of cash, depending on the plan and just leave it to grow. The Coverdell Education Savings Account currently only allows $2,000 a year in contributions but if you invest that much for just 10 years, you will still have a hefty fund based on the growth potential when loaded in decent mutual funds. You should also consider the age you would like to retire. Again, this is relative to time and your situation. You may decide you would like to have a job well into your 70s whereas others may want to retire at age 50. If you began saving for retirement at age 20, your percentage of your budget dedicated towards retirement could be lower and more money could go toward your kid’s college fund. Your home is your largest tangible investment you will probably own. When throwing additional money at this loan it is important to focus these funds towards the principle. This is how to pay it off faster. Consider this step complete when you have fully funded the college budget and paid off the mortgage.

As stated earlier, a financial advisor could advise different percentages based on your particular circumstances but you should understand it is your money so you can do whatever you want. I have a couple scenarios that might help you decide. If you have not saved for college or retirement, you might want to structure your budget as 45% for mortgage, 20% for retirement, 15% for college and 20% for the rest of your expenses. In this scenario, a household bringing home $77,000 a year after taxes gives $34,650 a year to the mortgage, $15,400 to retirement, $11,550 for college and $15,400 to daily expenses including escrow but not the mortgage. If this is too tight, you can reduce the amount paid on the mortgage but this scenario pays off a $300,000 mortgage in about 8 years. You can adjust the percentages by considering the mortgage as connected to daily expenses and retirement as connected to college funds. To make a modification, just pull from the connected fund to keep them balanced. If you have some college money already saved and no retirement, maybe you send 45% to mortgage, 25% to retirement, 10% to college and 20% to daily expenses.

Step 6 is to continue funding your retirement accounts and enjoy life. Making it to this step is difficult but because you have done everything right, you deserve to enjoy the lifestyle you created. At this point, your budget might even have 50% invested in retirement accounts. You may be over 50 years old, which allows you to contribute even more to your 401K and Individual Retirement Account (IRA) by using the catch-up provision. Again, do your research because the federal government adjusts the income and contribution limits for these retirement plans.

Part of enjoying life may include traveling, giving or some new hobby; that is okay. You now have the money to do anything that reasonably fits into your budget. You do not have to be as restrictive as you were in the beginning steps but do not let that be an excuse to get out of control. Continue to manage your money with your spouse and share your experience. Pass on your story as motivation to others and teach them how to manage their money and to eliminate debt.

Some people need a jump-start when they begin the debt elimination journey. I have compiled some tips that will help you speed to the finish line a little faster. Just remember, you have to be committed if you want to succeed. For this reason, I challenge you to adopt some if not all these additional ideas because in the end, they will get your debt eliminated much quicker.

Is your cable bill over $100 a month? I bet you could give up cable television for at least one year and not miss a thing. If $1,200 a year is not enough motivation then I would also tell you that after one month without cable you will notice you and your kids have a lot more free time than you realized. Use the free time to earn additional money doing something else. If you absolutely need the entertainment, consider alternatives such as Hulu, Netflix or Amazon Prime. These are very cheap when compared to cable and you still get many good viewing options. Additionally, do not forget to purchase a digital antenna for your television. If you live in a populated area, you will probably be able to get a least a few local channels free.

Do you have a self-storage unit costing you monthly for stuff you literally forgot that you still own? Does your garage at your house have everything in it but your car? If you answered yes to these questions then you probably need to have a garage sale. People will pay you to haul away stuff that you do not need. How can you go wrong there? If you are paying $50 a month for your storage unit, you will save $600 over the next year.

If you have not shopped around for new home, renter or auto insurance in the last 3-5 years, you might be missing some savings. Each year when your policy comes back for renewal, get a couple quotes from other providers just to see if the price you are paying is still the best option. You might be surprised because your carrier is not necessarily just going to lower your price, even if they have lowered their rates. You must be proactive, ask the question and shop around.

If you have a cell phone contract with one of the major carriers such AT&T, Verizon and Sprint, you might want to shop around other alternative carriers like Cricket, Straight Talk or even a pre-pay phone. I know this might seem overboard but if you have a contract that is costing you over $100 a month for one phone, realize there are cheaper plans that could bring your bill down to around $50 or less a month. Of course, this does not mean to pay $300 in fees to get out of the contract and only save $10 a month. You must make sure if you break your contract, the fees are worth the return on investment.

Another expense that could probably be temporary dropped is your gym membership. If you have time to go to a gym and workout, then you probably have time to work a second job and increase your wages. Your health is very important but it is a long-term goal just like your retirement, which you can stop temporarily while you work your way out of debt. Try jogging outside at a park or going on YouTube and working an exercise video at home, both of which are free. If you pay $30 a month, you just saved $360 over one year.

Do you know anyone that stops at a coffee shop every morning and drops $10 on coffee and another $5 on a pastry? That equals $75 a week or $300 a month for some morning pick-me-up. If it is that important to have caffeine and sugar every morning, and for many it is, then may I suggest you brew it at home and save $3,600 a year. Another offender that falls into the same category is your lunchtime routine. If you are dropping another $10 everyday on lunch instead of bringing your leftovers then you can add another $50 a week and $200 a month. Please do not throw away another $2,400 a year.

Moving down in vehicle might be another money saving idea that could potentially save you thousands but many times the math does not add up. If you are making $40,000 a year and have $75,000 in debt, a $300-$500 car payment is killing your ability to pay down your debt. Even more upsetting is the fact that your vehicle depreciated so now you owe $18,000 on a car that is only worth $10,000. You must now decide if moving down makes sense in your situation. If you save up $3,000 to buy a used car and sell your current car through a private sell for $10,000, you have technically traded an $18,000 debt for an $8,000 debt with it costing you $3,000. In the end, you really only saved $5,000, so you must decide if it is worth the trouble.

The last recommendation might require some outside assistance or at least a partner to help share in the experience. I do not smoke cigarettes however; I know it is an expensive habit. If you are able to kick it, you could easily save $30 a week or $1,440 a year.

Beginning your journey to financial freedom can overwhelm the best of us. You have to stare directly at debt even it is two to three times your annual household income. Do not let it defeat you, attack the debt as if your financial future depends on it because, it actually does. Math will tells us if you have more money going out than you have coming in, you will have a deficit which could lead to using a credit card to fill in the gap. Sell your stuff, work extra jobs, do whatever it takes to rid yourself of debt. Eventually it will be gone and at that point, you have won. You have stop paying for your past and can begin saving for your future.

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SuperCharged Secret 4, Credit Card Utopia

YOU SCRATCH MY BACK, AND I’LL BUY SOME MORE BEER!

Let’s just take a brief moment to recap:

If you’ve been following along on this journey with me, learning the 5 Super-Charged secrets to Credit Card Utopia, then you now know 3 very important things:

  1. You now know how to take advantage of zero to low interest credit card offers.
  2. You now know that there is safety in numbers, and you know the magic “Who’s Who” of the major credit card companies. You know that one of them, in my opinion, stands out for consumers.
  3. You now know how to take a low interest credit card with a rewards program, and convert it into a money making technology that could seriously improve your financial house.

With me? Good. These are all essential foundations that you need to follow in order to live in Credit-Card Utopia with me.

In fact, you would think that there’s not much more that can be done.

Side note: I hope you are realizing the power of this information.

It may seem simple, but are you doing it? No. So, be smart. Study this information, reflect on these insights, and move forward with them so you can truly benefit from this secret knowledge.

On to Secret, #4:

1) It’s very important that Utopians cover all bases, and leave no one behind.

The 3 secrets we’ve covered, really deal with those of us who have fairly good credit.

Now, if you don’t have “good” credit, please don’t discard these prior ideas.

I didn’t have “good credit” once. Who cares? How many people, small businesses, corporations, and large industrial countries, have said the exact same thing?

2) So, don’t feel left out.

Move towards Credit Card Utopia as a goal to move you into action.

Our website (and many other fine websites around the internet) can provide you with many, many resources to work on your debt issues, or your credit score issues, or whatever.

You might be surprised how FAST you can go from point A to point B.

(Here’s a tip: Don’t waste time. Find assistance. Don’t go at it alone.)

3) Getting back on track: Want a zero interest credit offer? Want a low-interest, no annual fee, incentive-based offer?

Well, if you’re struggling with credit or debt, then the first step is to tackle this issue from a different point of view.

Give up on Visa®, MasterCard®, and AMEX®…At least the “unsecured” kind, and at least for now.

There’s nothing wrong with applying, and trying, but if you’ve been turned down, there are other ways to go.

4) Secret #4, revealed in an analogy:

Do you live in a small town? If you do, you might have a small-town pub. Does everybody know your name? Does the bartender know you, and know the drink you like? Do you go into your pub after work, and down a stiff one, after a long day of working in the coal mines? Maybe it isn’t payday yet. Do you think the bartender cares? Of course not! He wants you coming in so he can move his inventory of fine beers and spirits. He knows you. So, what does he do? Let’s say this is the 1800s, and there’s no such thing as “credit cards” amongst our meager coal-working small town clan. What does he do?

Right! He runs you a tab.

No interest rates, no worries, no big deal. He runs a tab. Why? Because he knows you’re good for it, and he’s moving inventory. He doesn’t care about the interest, because he’s making a profit off the sale of his beer. He knows where you live, and he knows you’ll pay him back in a few days when you come in for a drink after you get paid. It’s a virtual certainty.

Now YOU, the small-town beer drinking coal worker, you’re perfectly fine with this. The drink costs you the same whether you had cash now or later, and the bartender runs you a tab, in exchange for selling you more inventory. Everyone works together.

You scratch my back, and I’ll buy some more beer.

5) This concept of free “credit” provided to purchase inventory, is not a new concept.

As you can see, it’s been around for a long, long time. However, in modern times, it has tremendous application for folks with “poor” credit issues.

The secret is that you buy merchandise (On stuff you already need, or are already buying) almost exclusively from merchants willing to give you credit at low to no interest.

So, while you think you are in a tough position with credit issues, you actually turn it around, and allow it to become consumer buying power.

Only shop with merchants that scratch your back.

With me?

6) Now, where do you find these merchants?

Well, in the real brick and mortar world, it’s not that hard.

You can start with department stores, gas cards, furniture outlets, electronics stores, jewelers, and a variety of other stores that you may do business with.

I can’t guarantee, of course, that they’ll approve you. But many of these merchants run their credit departments in-house, and like our bartender, they’re interested in moving inventory.

So, I wouldn’t take one “no” to mean that everyone will say “no”. Not true.

Many of the larger corporate chains do not offer low to no interest rates. But almost ALL of them offer huge discounts on initial purchases as incentives to get started.

As of the writing of this article, for example, JCPenney® and Target® both offer 10% discounts on “new accounts”. In addition, most of them do offer zero interest when balances are paid off each month, and some of them offer different plans to meet different customer’s credit situations.

Also, look to no-interest incentive specials that are going on for many larger-ticket items. Televisions, Furniture, etc.

You’ll also find many deferred-payment incentives that you can use to your advantage, or that you can utilize as a no-interest situation.

You just have to shop around. They are out there.

7) Now, what about cyber-space? Is there a place to take advantage of this back-scratching secret in Silicon? Actually, YES! There is. Check this out:

Many shopping portals online have realized the advantage of working with “poor” credit customers, and tailor-making a shopping experience that fits these specialized needs. We’ve listed several at our website, but of course, you can find them at any search-engine or at other reputable websites around the internet.

In a nutshell, the shopping website offers a membership card for making purchases on credit. You go to the online mall, make your purchases for things you would already buy anyway, and build or rebuild your credit score. The shopping portal helps you out by reporting your credit activity to the major credit reporting bureaus, which in turn, improves your credit history.

In addition, the membership benefits often times include such things as travel discounts, rental car discounts, and FREE credit reports.

They almost always advertise guaranteed credit lines of up to $7500, and incentives for joining can include free merchandise (such as a free DVD player), or a merchandise voucher.

Look for 30 day money-back guarantees, and look for no annual fees, and yes, look for “NO INTEREST” on the credit.

Most of these sites will require an upfront membership fee, but then they immediately turn around and provide a merchandise voucher. For example, one portal charges $150 for the upfront membership fee, but then immediately provides a voucher of $200 for merchandise at their site.

Because their customers generally have a history of poor credit, they do sometimes require an initial payment, or “down payment” on purchases until a relationship is established, but hey listen. So what? If you have credit issues, then you have to start rebuilding credit relationships somewhere. It sure beats Layaway!

What a creative way to solve this problem. Everybody wins.

You scratch my back, and I’ll buy some more beer!

Meanwhile, you’re moving closer and closer to the pearly gates of Credit Card Utopia!

We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

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Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

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How to Avail 12-Month Loans in London?

WHAT ARE 12-MONTH LOANS?

12-month loans are a type of short-term loan that has become increasingly popular in recent times. These are designed so as to last for only a year or 12 months to be precise. They are extremely helpful as they help one to accurately budget for the concerned money that they have borrowed as it is known that it must be fully repaid within a year or 12 months. This is the main difference that makes it stand out from other types of short-term loans offered by various direct lenders.

These types of loans allow one to borrow a wide range of different sums of money and these types of loans help break up the borrower’s loan into 12 manageable repayments that must be repaid on a monthly basis. Small loans are a good way of allowing one to budget for anything unexpected.

DESCRIPTION OF 12-MONTH LOANS

The approximate calculated interest for borrowing 100 pounds under such a scheme comes around 13 pounds per month. There are many people who may suffer from bad credit history and there are many lenders available who are willing to provide loans to people who have a bad credit rating and who may have been denied loans elsewhere. Most lenders have eligibility checkers that help check the individual’s likelihood of being fully approved for a 12-month loan for bad credit before applying.

One can improve his or her credit score by being accepted for a 12-month loan and keeping up to date with the necessary repayments for the concerned loan. This makes it easier for the individual to be accepted for any sort of credit in the near future. Missing out on payments has the opposite effect and can damage the borrower’s credit profile making it difficult for him or her to be accepted in the future for bad credit loans.

There are many UK lenders offering 12-month loans with no guarantor as not everyone may have access to that facility. These 12-month loans have become extremely popular in recent years as direct lenders have started offering these types of loans which do not require a guarantor.

GETTING APPROVED FOR A 12 MONTH LOAN

One is eligible for such loans only if he or she is above 18 years of age and is a citizen of the UK. Having a good income source is advantageous but not necessary. One also needs to have a good credit score to increase approval chances for the borrower. Lenders always prefer people with a good credit score as they can be trustworthy and reliable and are more likely to repay back the loan amount in the stipulated 12 months or 1 year.

If the borrower’s credit score is not enough for gaining approval for a 12-month loan, then the borrower can obtain loans by getting into a joint agreement which can be done by convincing a friend or family member to become your guarantor for the 12-month loan. In this case, if the borrower fails to make a repayment to the lender then the guarantor can pay in place of the borrower.

Asset pawning is also a good solution for the concerned individual or borrower. In case he or she is unable to find a guarantor then he or she can pawn any asset which may be a land, property or even a vehicle. This asset should have a value equivalent to the value of the loan.

BENEFITS OF 12 MONTH LOAN

Many lenders often provide people with 12-month loans even though they do not have a guarantor to furnish. This type of loan also helps those who are in need of emergency money. These loans are hassle-free and usually, do not carry any extra hidden charges and are also comparatively easier to repay when compared to personal loans or payday loans which have higher interest rates.

Most lenders nowadays have an easy loan process that allows them to assess the financial situation of the borrower within a short period of time and since most of the systems are now online, this has reduced a lot of paperwork involved. These lenders offer personalized loans to the borrower depending on their financial situation and state of living.

These lenders offering 12-month loans also provide competitive rates of interest to the borrower for people with a poor credit score and this helps a person from any strata of society with any economic background opt for a loan without being financially distressed due to the various competitive rates of interest offered to the borrower by the lender.

One can opt for a 12-month loan in case of any financial emergency or an unexpected expense that may be necessary to be cleared immediately. They provide quick loan approval processes and also credit the concerned loan amount directly into the borrower’s bank account making the loan obtaining process smooth and hassle-free. The borrower can easily repay the loan to the lender in simple instalments every month for the 12 months time period of the loan.

Even if the borrower has a poor history of credit and is in need of emergency money at the earliest, many lenders exist offering a wide variety of instalment loans for all types of credit score borrowers.

CHOOSING A 12 MONTH LOAN

One of the top reasons for more and more people opting for 12-month loans is the fact that it offers competitive APR, hassle-free and reliable loans with options for bad credit too, the lack of the need for a guarantor, availability of small and big loans as required, repayment of loans in easy instalments, ensuring that people from all economic backgrounds have a fair chance at securing a loan and many other reasons.

Carefully compare and choose the best suited 12-month loan option for your needs.

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Small Personal Loans – Considering Cash Advance

If you are in dire and immediate need for money and the need could not wait until the day of your salary, you are left with one good option – take a cash advance loan. Cash advance has been designed to provide borrowers money at the soonest possible time. It is now one of the popular small personal loans available to borrowers.

Why People Need Such Loan

Many people search for small personal loans especially when they need cash abruptly. Some need such products on a regular basis especially if their needs could not wait until the next payday at work. Cash advance is one good available option, especially for employees whose companies or employers are offering such minor credit facilities as among employee perks. The payments are automatically debited from the paychecks of the employee/borrower.

Things That You Should Know

Statistics show that the number of people taking cash advance loans are constantly rising through the years. It is an indication that peoples’ salaries are often not sufficient to cover the spending needs of many employees. Before you consider taking a cash advance loan, you must be equipped with the necessary knowledge. Here is the basic information you should know about such small personal loans.

Ease Of Processing

Processing a cash advance loan is easier compared to processing other small personal loans from major financial institutions and banks. Step one would be finding a cash advance loan provider. Your office could be offering such facilities to employees or there might be a loan provider in your community.

Fill out the application forms, state the amount of loan and submit the required documents. Usually, for documentation purposes, you would be asked to furnish copies of your employment certificates, residency documents and identification papers.

Knowing The Terms And Conditions

Read or know the borrowing terms and conditions, which would be discussed to you by the lender’s personnel. Take note of the following data such as interest rates, maturity and penalties if ever the repayment is delayed.

You would be asked to issue a check, so before processing a cash advance loan, the lender might require borrowers to open a checking account in a reputable bank. You would be asked to issue a check bearing the principal amount and the incurred interest of the loan over an agreed upon period.

What Lender Would Expect From You

Usually, the lender would ask you to put a date that is a day after your salary to give you a day to make the repayments. For example, if you are borrowing $100 from a cash advance facility for a 10-day period, you may be asked to make a $115 check, bearing a 15% interest within 10 days.

If you fail to fund the check or make the repayment on the specified date, you are required to see the lender and renew the loan for another couple of days. Thus, the principal would be $115, and at a 15% interest rate for another 10-day period, you would be asked to write a new check worth $132.25.

As the maturity lengthens, so does the interest rate. That is one setback about cash advance transactions. That is also the reason why many people, no matter how immediate the need is, opt to stay away from such small personal loans.

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The Monster Called Debt And How To Slay the Debt Monster

In all scary movies the monster is only terrifying as long as he is lurking in the shadows, sneaking up from behind and not showing his face. When the monster finally steps into the light and we can get a good look at him – yes, he is one ugly piece of work, but there he is and now we know what he looks like. He can’t frighten us so badly any more.

The biggest scary, sneaky monster that tends to lurk in the dark and get completely unmanageable because we don’t pull it out into the light of day and take a good long and level-headed look at it is actually a three-headed hydra called Debt. Each head of the Debt Monster has “credit cards”, “mortgages” and “loan”s stamped on their respective foreheads.

Read the fine print!

It seems that every time anybody advertises anything these days, they throw that phrase “terms and conditions apply” into the mix and this could not be more vitally important than when it comes to credit cards. People rarely read the fine print and the service providers indirectly rely on this. Read the “terms and conditions” every time when it comes to credit cards! There are just so many snags and little catches that will feed that hydra head. For example you may find you are offered an unbeatable, low-interest deal of an annual percentage interest rate of 11%, but when you go down to the little words at the bottom of the contract you will find that if you have impaired credit rating this will not apply to you.

Also the fine print will tell you the rate pertains to purchases only and all other transactions, like cash withdrawals, will cost you 34% instead. Miss a few payments and your debt can end up becoming an ever-growing and accelerating snowball. Oprah Winfrey, on one of her shows, gave some sound advice. Always pay more that the required monthly installment on your credit card to make sure that you don’t end up in the monster’s den. Wise advice indeed to keep you on top of your payments and out of debt.

Get reliable advice when looking for a mortgage loan package

Finding the right mortgage loan package is like being stuck in the labyrinth with the Minator. There is only one thing for it. You must seek sound advice from someone who really knows how to navigate the maze. Happily rates have dropped and requirements on deposits are pretty reasonable again. As rentals have become more expensive, buying property is becoming an interesting option once again in the UK. But if you find yourself in the position where you have over extended and you are sitting with a mortgage you can’t pay, don’t dawdle. Contact your lender at once to discuss reworking your payment plan. Lenders can only turn to repossession as a last resort. There are also several organizations that exist to help people in this kind of situation, such as the Mortgage Rescue Scheme or Citizens Advice. You are not all alone trying to fight this demon called Debt.

Chopping off the head of the beast called Debt

How to chop the last head off of our beast? Addressing loans. It will surprise you how many people owe money to the bank and can’t pay it back in the form of overdraft, small loans, and student loans. Most of the problems have to do with unemployment, low-income, or mismanagement and overspending.

There are some very basic options here. First, open another bank account so that your income does not go into the same account as the loan and then you can make a plan with the bank to pay into the loan each month. Start keeping track of your money, keep receipts and a record of what you are spending – budget, budget, budget. Talk to the people you owe money to. Let them know your situation and agree to pay them a token amount each month no matter how small. There are also several charities like the CCCS that can probably help you deal with your debts.

In the ancient story of the Hydra, as she loomed over the warrior and he began to chop her heads off, she just kept growing more of them. The trick was to stab her in the heart. Get to the heart of the matter and don’t ignore your bills. Don’t let your debt pile up in the shadows and get scary. Deal with your debts and the sooner the better.

To sum up:

  • Read the fine print every time
  • Speak to the people you owe money to if you fall behind with payments
  • Face your debts, don’t try to ignore them because this will lead to bigger problems

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Getting Instant Personal Loans With Bad Credit To Clear Your Financial Headache

Financial emergencies are rather unforgiving when it comes to the time granted to get them sorted out. Whether it is a final notice on a mortgage payment or an unexpected medical situation, payments are expected as close to immediately as possible. Thankfully, it is possible to secure instant personal loans with bad credit.

Why thankfully? Well, more often than not, it is a poor credit history that holds up the chances of getting vital funds quickly. So, having the opportunity to receive loan approval with no credit checks is welcome. However, there are some compromises that must be made in order to get the green light, and these need to be considered carefully.

The trick to negotiating the difficulties involved and securing the best possible terms is knowing the key factors in the application process. So, the chances of getting the personal loan instantly are greatly improved.

Is Instant Approval Real?

In truth, getting a loan approved instantly is not quite accurate, and a very quickly approved loan is perhaps more like it. What really matters is that even bad credit borrowers can get the thumbs up from a lender within a matter of minutes and have the funds in their own bank account within 4 hours, so getting instant personal loans with bad credit is no marketing ploy.

The reason lenders can offer such a fast decision on an application is down to a special process where they grant approval with no credit check. This basically means that the mistakes and troubles of the past are ignored, thus saving time.

And of course, the instant approval promise is available from online lenders because the online application form is electronically processed in just seconds. Key information like income, employment status and monthly expenditure are assessed, so the personal loan may be approved very quickly.

Instant Loans Have Limitations

So, what are the compromises that applicants need to accept? Crucially, there is a limit to the size of the loan that can be secured. Getting instant personal loans with bad credit is great, but the lenders face a higher risk of lending to a serial defaulter to make that happen.

In most cases, these loans are limited to around $2,000, but in some cases a lender may be willing to grant more. This protects them against major losses. Another move designed to protect themselves is to charge a higher interest rate. Granting approval with no credit check the normal interest bracket structure is ignored too. Instead, all applicants pay the same interest.

For most, that means paying more (perhaps 2% more) than usual, but some very poor credit borrowers will actually be paying less on the personal loan.

What Deal To Expect

It is important to be realistic when applying for any loan, but especially when reviewing the range of terms and conditions lenders set for those applying for an instant personal loan with bad credit. As well as the normal qualifying criteria, there is the need to have a working bank account. This is to accommodate the electronic transfer of funds.

The most common loan option when seeking approval with no credit check is a payday loan. The terms make it the most expensive loan available, and comes with the pressure of a repayment term of just 14 to 30 days. This is because the loan is repaid in full from the next paycheck.

The APR is typically huge (500%) so it is only manageable if the loan is small ($100 to $1,500), and it leave little over to pay for your normal monthly outgoings. However, with a reliable income source, approval is only a seconds away, and personal loan funds can be available in 3 or 4 hours. So, the emergency can be dealt with almost instantly.

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An Overview of The Fast Cash Personal Loans

What are they?

The lending and borrowing business has evolved into need-specific debt instruments available for various categories of expenditure e.g. car loans, student loans, mortgages etc. Personal loans has emerged as a distinct category that covers relatively less expensive ventures like family trips, renovating your home, planning your wedding or auto repairs. Personal loans are always:

  • Multi-purpose small loans – lowest minimum amount available compared to other categories
  • Short-term – span between one to five years
  • Unsecured – do not require collateral
  • Fixed rate – the amount you have to pay back per installment is pre-determined so it is easier to budget
  • Easier to transact – their application form and internal processing is comparatively hassle-free

Who can apply?

Personal loans are available to all working adults with a good credit history. Before submitting your application you should be aware of your credit score and asset portfolio. Since personal loans are taken out without pledging any collateral, the lender has to safeguard their interests by charging comparatively higher markup rates than other debt instruments. However, a strong credit history and steady income stream allows you to negotiate a better deal for yourself. If you do not know your score, sign up for a credit monitoring service and cancel in the grace period once you have received the initial, charge-free result.

Why apply for them?

A huge benefit of such a loan is that it allows debt settlement. You can merge all your various credit streams into a singular payment and if you make your payments responsibly, this creates a new line in your credit report and helps you boost your credit worthiness as you pay down your loan.

Compared to other short-term lending schemes like bank overdrafts, payday loans and pawnshops, personal loans are much more secure. Especially if your credit score is not as favourable as you were expecting, a high markup personal loan is still a safer bet than no-credit-check offers which seem attractive at first but can brew a financial storm for you and cause all your assets to be repossessed.

Where can you find them?

Personal loans are available at different institutions like:

  • Banks (commercial)
  • Peer-to-peer lenders (for profit enterprises e.g. Prosper and Lending Club)
  • Payday lenders (commercial)
  • Credit unions (not for profit)
  • Credit building groups (not for profit)

Depending on where you go, your chances of qualifying, markup rates and terms & regulations vary accordingly. At commercial institutions the rates are higher but easier for you to qualify. However, if you really need to sort out your financial situation, unions and credit building groups are local bodies that have a price cap on the rates they are allowed to charge and can rescue you from your credit quandaries.

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All You Need To Know About Personal Loans

Loans are of several types. It can be classified according to the needs of the person. Suppose, if one wants a loan for his/her home, he/she should take a home loan. If the person needs money to fulfill the educational needs he/she shall be allowed the educational loan. Other types of loans are personal loan, payday loan, etc. However, when one is considering to take a loan he /she should keep in mind that the interest rates for all the types of loans do differ. In this article we shall be dealing with the personal loan and will try to find out how one can get a loan.

A personal loan is something that you might need at any moment for buying anything of your choice. This can be a television, a fridge or even a designer dress that you have come across in the shop. This can be the medical expenses that crops up immediately without any notice. Anything and everything can fit into the personal loan bill.

To apply for a loan one needs to have a good credit. This will make the loan approval process quicker. If one is having a bad credit score then the chances of getting a loan are much less. So, when you apply for a loan make sure you have a clean credit report.

A bank would take time to approve for a loan as they check all details before finally saying you “Yes”. If you want a loan fast you can apply to those financing institutions that offer loans quickly. The crucial point of choosing these organizations over the banks is that they might charge high interest rates, although all the some are an exception in this case. And of course it is better as the process is fast and hassle free when you are really in need of money.

If you are applying for the loans please be sure to go through the terms and conditions of the loans. This will make sure that you are aware of what you are agreeing to pay.

What are the things you need to be careful about?

Be careful about the repayment terms. We advise you not to go for long term loans. There are certain companies which charge hidden amounts and you will never know what you are paying for. So, make sure that you do not fall into their trap. Always take a bill when you pay them so that you have a proof of the money you have paid.

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$5,000 Personal Loans For Bad Credit: Three Avenues to Take

Getting a personal loan of any size when a low credit score hangs over your head can be difficult, especially when approaching a traditional lending institution. But it is worth noting that securing even a $5,000 personal loan for bad credit is not impossible. Simply by taking alternative routes, the necessary cash can be secured.

It might seem illogical that a personal loan of several thousand dollars can be approved when a low credit score suggests repayments cannot be guaranteed. But the fact is that a credit score is not considered the basis on which to reject a loan application. This is because a variety of things, like losing a job, can affect the most honest of borrowers.

Anyway, getting approval for $5,000 loans is not a simple matter of giving the thumbs up. There is criteria that needs to be met and, as such, an application needs to be in proper order if it is to succeed. Still, the route chosen is telling, and there are three alternatives to traditional banks that a borrower can take.

Online Bad Credit Specialists

The internet is filled with lenders that specialize in loan products designed for people with low credit scores, so a $5,000 personal loan for bad credit applicants can be accommodated. There are some points that need to be taken into account, but in general this route is considered superior to traditional lenders anyway.

The first point is that the interest rate charged is higher than for those with a good credit rating, but it is still less than most banks will charge. For that reason, the online lender is regarded a very competitive option, especially given the fact that approval on a personal loan is more likely.

However, that is not to say that all applications are approved. In fact, the concentration on income means that it is essential an applicant for a $5,000 loan can prove they have a regular source of income, and has been working full time for at least a period of 6 months.

Payday Loans

When bad credit is an issue then seeking a loan that requires no credit check for approval is a good solution. To this end, a payday loan (or cash advance loan) is ideal. A $5,000 personal loan for bad credit is typically too large to get approval for, however.

Payday loans are small, ranging from $100 to $1,500 because they are issued against a forthcoming paycheck. For this reason, the sum available to borrow is strictly controlled. It also means that in order to get the correct personal loan sum it may be necessary to take out a series of payday loans – perhaps 4 x $1,250.

But remember that repayment is also very short term, usually within 1 month. So, your paycheck would need to be able to cover the total sum borrowed. Although, it may be possible to negotiate a 4-5 month deal in order to secure one $5,000 loan.

Loan Bidding

A final possibility is the modern method of loan bidding, which could see a $5,000 personal loan for bad credit secured. Basically, a loan proposal is posted on a website and site members bid to provide the loan. As a form of securing a personal loan this can work to your credit, as the bidding systems means the interest rate falls until it matches your preference.

However, a $5,000 loan from this source is not guaranteed because the lenders are individuals. So, the borrower has to accept the accompanying degree of risk.

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Unsecured Personal Loans for Bad Credit Borrowers: Perfect Solutions for Small Sums

A cash injection is always welcome, whether through the State Lottery or by securing a small loan, because it eases the financial burden. But sourcing a small loan is not so simple when bad credit ratings are involved. Thankfully, there are unsecured personal loans for bad credit borrowers, making it possible to secure that vital extra cash.

These cash injections are very welcome when an unexpected expense is received, one that is impossible to pay with whatever excess income there is. It could be a medical bill, or a warning of late mortgage payment, but having access to extra cash is essential. In such circumstance, having fast loan approval is also important.

So, where can these loans be gotten? And can the cash be accessed when bad credit is a factor? Well, when the sum required is around $2,000, getting an unsecured personal loan is of little trouble, once the necessary criteria are met.

Understand What Can Be Afforded

Half the battle to securing a loan is to know how much to seek. So, before submitting an application, be sure to calculate a budget. Lenders that provide unsecured personal loans for bad credit borrowers accept the risks involved, and by providing a realistic budget, it tells them the applicant has their feet firmly on the ground.

Many applicants seek a little extra than is actually needed, but this is of little advantage when it comes to repaying the loan. In orthodox loan repayment schedules, this can mean hundreds of dollars in extra interest being paid over the loan term. But to guarantee fast loan approval, a payday loan is the best option, and this is generally repaid in one go within 30 days.

Also, when calculating the sum to seek, make sure the small print on any unsecured personal loan deal is carefully studied. It may reveal hidden charges and strict penalties.

Consider a Longer Loan Terms

In emergency circumstances, it can be difficult to choose the perfect loan. Payday loans, for example, can be granted within minutes of the application, and funds secured in the bank account within 2 or 3 hours. As unsecured personal loans for bad credit borrowers go, financial emergencies can be dealt with very quickly.

But there is a price to such convenience, with interest as high as 30%, turning a $2,000 loan into a $2,600 debt requiring full paying within 30 days. But, while securing fast loan approval has its definite advantages, a longer-term loan relieves the pressure. The issue for lenders is that repayments are made with no problems, while for borrowers, is that the size of the repayments is low; a long term serves both interests.

For example, a $2,000 unsecured personal loan could be repaid over 12 months, at $170 per month, but over 24 months, the repayments fall to $85. With the chances of defaulting much less, approval is more likely.

Search On The Internet

It is common knowledge that the best loans deals are found online, especially when seeking unsecured personal loans for bad credit borrowers. Online lenders are recognized as specialists in bad credit lending, so have loan packages that cater to the needs of that niche market. Typically, interest rates are lower and the term is longer, so that the monthly repayments are more affordable.

Also, because of technology, it is possible to get fast loan approval too (in fact, most lenders offer it as standard). Besides, when it comes to small sums like $2,000, most loans are approved with no credit checks, and with unsecured personal loans, this is very useful.

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