loans

How to Deal with Paying for Expensive Repairs to your Car

How do you deal with paying for expensive repairs to your car? Of course prevention, maintenance and safe driving are key. Damage from an accident, even a dent or some other type of damage, that it can cost a lot. A lot of people don’t have the money to pay for repairs on their own, and don’t have the skills needed to fix their car themselves. It can feel like there are no options.

Loans

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If you want to be able to pay for your own emergency car repairs, then you should look into getting a personal loan. A good way to do this is to get a personal loan and use it to pay for the repairs you need. You will have to take care of making sure you pay off the loan within the time frame that the loan is for. Cash advances usually do not have the most friendly loan terms, so be wary of this option.

The most important thing you should do is make sure you can afford the loan. If you can’t afford the loan, then don’t take it. If you have bad credit, you most likely don’t even have this option. Bad credit? Then you have to have enough in your bank account to pay the loan back before they will even think about approving you.

What makes a good loan? Usually a good personal loan is one with a very low interest rate. Look carefully at the loan terms, and make sure that you are looking at the APR, which is the Annual Percentage Rate. A good loan should also come with very flexible repayment terms. If you can get a loan like that like that, then a loan can help you a lot.

The thing to remember about these loans is that you can get one and they actually let you get away with getting more than what you need. Just keep in mind that you could end up paying even more money. Instead, get a loan for the smallest amount possible – not the amount that they approve you for! Don’t take the first thing that comes your way, you may find that there is something better out there for you.

Extended Auto Warranties

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If you don’t qualify for a loan, then you may want to check into getting a vehicle service contract. This will help you to repair your car while saving you money at the same time. These are called “Extended Auto Warranties” in most states, and called “Mechanical Breakdown Insurance” in California.

When thinking about getting an extended warranty on a used car, you might have different options – depending on the state that you live in. The criteria for a good extended warranty company are reputation, monthly payment options, and no waiting period. Gogetolive.com is an option that you’ll want to check out.

If you get regular maintenance done on your vehicle, you will end up saving quite a bit of money over time. Safe driving is also important! The warranty companies will charge you a higher amount if your car is involved in an accident. They may also increase the amount for repairs you need to get done.

Insurance

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Of course also do make sure you have car insurance on your vehicle. It may seem obvious, but it can help you a lot when you get an accident, if you are insured properly. Most states allow two kinds of insurance coverage: Comprehensive and Liability. Comprehensive coverage is the Gold Standard, with everything covered: Damage to any vehicles or persons comes with some sort of coverage. But don’t forget that you likely have a deductible. Paying that deductible means a large expense in itself sometimes. So read through your policy carefully and avoid running into a big surprise down the road.

With Liability coverage, you are covered for damage to other vehicles – and typically for bodily injury – but not covered at all for your own vehicle. This means you will be entirely responsible for the potentially VERY expensive repairs on your own vehicle. These could exceed the value of your vehicle, or not even be possible.

Even if the other party in the accident is not injured, he can sue you. So as mentioned before, always drive carefully and make sure that your vehicle is properly maintained!

Credit

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Have a clean driving record and keep your credit in great shape. You might find that some of the companies will charge you more for auto insurance because of bad credit. Poor credit can cause you to have to pay for some of the repairs that you have to get done. If you have fewer credit options, you are very likely to pay more.

Most repair shops have credit options available, but none are what most would call a good rate. Even if you were able to pay in full for your auto repair, you are likely to be offered their house brand of credit card – with the cashier getting a bonus based on your signup! So beware of this type of credit to keep expenses down.

Make sure that your credit report is checked periodically. Your lenders certainly will! Most lenders will run a credit report once a year. This will let them know if you are still able to make all of your payments and keep up to date with your bills. It will also let them know if any outstanding accounts you have are current. Make sure that you also check your credit report every year. You will want to note any mistakes in reporting, and dispute anything you have a valid reason to dispute. The longer an error is on your credit report, the more difficult it will be to remove.

If you keep in mind a few simple tips, you will be able to save a ton of money on repairs to your car. Car repairs tend to be expensive financial emergencies, but you can get through them with personal loans, insurance, an extended auto warranty, or other credit options.

Ways to Negotiate with a Licensed Money Lender

Negotiation may sometimes create a hectic situation. However, it is essential at times in order to make a good deal of the money that you are offering and the amount that you would be receiving it in return. But, sometimes there is a certain situation that may arise leading to a bitter experience while doing away with a hard negotiation, especially when the money lender is not ready.

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Money lending can really be a simple circumstance when the borrower is demanding money from a licensed moneylender. This is because there are many quacks who do not have any value in their words and they say some different versions while you go to return them with the amount. This is seriously an unhealthy occurrence. In order to avoid any kind of bitter experiences at a later time, it is always better to go for a licensed money lender.

For the sake of convenience, it is also important to sign contract papers before you accept the specified terms and conditions. Make a proper research before consulting any of the money lenders. Check out the market trend and be a little choosy while selecting. In order to receive the latest updates, you can personally talk with your family and friends along with the relatives to get acquainted with the facts. Talk with people whom you know and discuss the matters with them thoroughly.

Experience matters and you can only get the latest reviews from the occurrences that occurred with the individuals who have received the latest updates about the loans. This would also help you to overcome with positive feedback. Being a borrower, it is also important to learn regarding the potential issues during the process of application. If all these things are not taken into proper consideration, it is quite common for an individual to meet with several unexpected situations.

If you are choosing a licensed money lender, you can also look for the detailed information regarding the individual. These are essential to progress with a healthy relation and faith as well. After taking out all the information in your hand including the proper address of the money lending company and the detailed information about the owner, you can shift to make a call to the money lending company. The borrower may face several types of issues at the time of refund, in that case there are several sideways options which can be utilized like that of foreclosure and mortgage loan.

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Your request shall be taken under consideration after the verification of the genuinely of the process. The money lending company may also help you to pave the best possible solutions in this regard. In a case of foreclosure, there is an option that can be downloaded and you can fill the necessary details within it and proceed with the further dealings. The lending company shall also ask you to submit a few necessary documents and you must do that to meet the specifications of the company.

How to get the “negotiation advantage”

You’re probably wondering whether negotiating in such a scenario is possible, and we would like to assure you that it indeed is. But, in order to make it happen, you need to gain the so-called Negotiation Advantage. One of the ways to do this is by letting the licensed money lender know that you’re a trustworthy individual with a clear goal. The money you’re asking from them will be invested in something that’s promised to make a return, so if this is true, let them know.

According to 1AP Capital, the important thing to understand is that licensed money lenders have a lot of customers on a daily basis. But, as easy as they can replace you, it’s also in their benefit to find someone reliable to use their service. By providing transparency and the feeling of being a legitimate customer, they’ll find you to be a better fit than some of their previous customers. If you manage to achieve this, you can then start negotiating more easily. It’s not in the money lender’s interest to lose a high-value customer.

Another important thing is to remember that everything that’s a part of the deal needs to be written as an evidence in some of the paperwork. If you negotiate and it all ends up being just by words, you’ve achieved nothing. Make sure to have proof in the paperwork that the terms you’ve negotiated are actually modified, whether this be the interest rate, the amount of time in which you have to return the money, or anything else really.

Work together with your lender

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You see, money lenders are constantly exposed to risk, but, that’s just the price you have to pay when you’re working such a high-reward job. However, they don’t like being at risk at all time, and they would do anything to minimize or completely prevent their losses. One of the things that you can do is to work closely together with your lender. What we mean by this is discussing about certain dates and times where the payment can be issued to benefit both parties at once. The closer and “more personal” you get with the lender, as well as the easier you make it for them to understand your project, the higher the chances of being able to negotiate properly.

For example, if you need the money to renovate a house and quickly sell it in less than a week, you can do the following things.

Start by contacting your contractors and ask for the price. Then, discuss it with your money lender. Afterwards, tell your contractors to get ready and prepare all the materials that need to be purchased for the project. Once again, talk with your lender and let them know that everything is ready. When everything is prepared, get the lend issued and start the project immediately. This way both parties will save time, the lender will have a lower risk and lower wait-time, as well as a richer portfolio in just a few days.

You can use these preparation steps as a possible negotiation technique as well. Tell your lender to give you a larger payment and use the project readiness and your preparations as a tool for negotiating and transparency. Remember, keep everything on paper, words don’t mean a thing when money is involved.

How To Effectively Manage and Pay Off Your Home Mortgage

Getting your own house is a personal, daring, and bold move, especially when you start thinking of the expenses that you will incur during the entire process.

The process of looking for a suitable property is already a tough job, add on top of it is the financial management that you need to handle, especially when we start talking about the home mortgage that you need to pay for ten years or more.

Home mortgages are a helpful tool when you want to purchase a house of your own. The loan amount you will receive can be used as a downpayment for your new home, and that instantly takes off a financial burden on your shoulders. However, managing and paying it off is another story to tell.

The question is, is there a way that an individual can effectively manage and pay off their home mortgage quickly? To help enlighten you, here are some helpful tips on how you can manage your home mortgage and eventually pay it off sooner.

Manage your home mortgage

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Remember that your home mortgage is a full responsibility that you decided to take on the moment you filed for it. Home mortgages are payable within 15 or 30 years, depending on the term loans you have selected. But thinking of paying off a debt for 30 years is like paying it for your whole life.

Well, technically, it is true. However, there are some managing tips for a home mortgage that can lower the years of you paying it. We have these so-called Refinancing your home mortgage and Recasting.

Let us learn how these two can help you to effectively manage your home mortgage and lower down the years of paying it.

Refinancing

Refinancing allows you to enjoy two things, such as getting a shorter term and lower interest rate. Shorter terms mean you’ll be paying an increased monthly payment. But, it shortens your mortgage years and allows you to save a thousand dollars in the long run.

On the other hand, refinancing to get a lower interest rate is also possible. If your broker allows you to refinance at a lower interest rate and paying the same monthly payment, this means you are paying more on your principal amount, which leads you to be debt-free earlier than anticipated. Remember, shorter-term loans are paired with lower interest rates.

You can check PerthBroker if you need assistance in applying for refinancing for your home mortgage. This platform can assist you with your inquiries and might even lead you to pay it off successfully.

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Recasting

Recasting, when simplified, is getting your loan recalculated with a new amortization schedule. But before this is done, you need to pay off a large sum to the principal amount to have your loan recast. If you have a low-interest rate already, recasting your loan is your best option.

The significant advantage of recasting your loan is that you get to enjoy the low-interest rate you already have. You just need to secure a lump sum to pay off your principal amount and get to pay it in a shorter period with a low-interest rate as well.

Tips In Paying Off Your Home Mortgage FAST

Having debt is a financial struggle for anyone, but if you have methods and techniques on how to get through it, paying it off will come quickly. Check out these few tips we have that might help you to be debt-free immediately.

1. Pay extra

Paying extra for about $100 to your monthly repayments can slowly help you carrying the long term payment burden. Rounding up your monthly payment is one thing, so instead of paying $1105, try sending out $1200, and the remaining change goes to your principal amount. But before you do this, check with your lender if they allow paying extra amount without any charges.

2. Prioritize your home

Focus on paying your debt early, and this means that everything extra you receive from different resources you have must go with full intention in paying your mortgage. Do not think of other avenues your money should fall into.

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Prioritizing your home is a dedication you should practice on a daily basis. Make it an every decision that every penny you save and earn goes to repaying your loan.

3. Bi-weekly payments

If you have adequate financial resources, opt-out to pay twice in a month instead once in a month method, when you can handle bi-weekly payments. It is highly beneficial for you as it speeds up the entire repayment process.

4. Save more. Spend less

That new entertainment set you have your eyes glued on might be a great addition to your upcoming new house but you think it is necessary to spend more? This method looks so typical yet it will help you big time in saving your money.

Instead of spending more on things that you don’t actually need as of now, save it and add it in paying your principal loan amount. It is wise to be responsible on your expenses and reasonable in saving your hard-earned money.

5. Look for a loan that has features that require no extra charges

It is essential to look for a loan that has more flexible payment terms. If you are the kind of a buyer that has flexible and steady resources, you might find yourself one day dedicating in doing extra repayments instead of following the schedule. And this might be a problem if your lender doesn’t allow you or charge you with extra fees.

That extra fee charges they apply can already be used in paying your loan amount. So don’t hesitate to ask questions and do your research.

6. Investigate Reverse Mortgages.

More seniors are looking to take it vantage of lower interest rates and that also applies to reverse mortgage loans, a special loan for homeowners age 62 and older that allow for you to borrow money from your homes equity without having to make a monthly mortgage payment. To get an idea of how much money you may qualify for try the free Calculator at reversemortgagereviews.org.

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Takeaway

Purchasing a home is a great endeavor every individual wants to take in. The accomplishment of owning your own house is something you can brag about. However, getting through the gruesome process of purchasing to paying it off is not as easy as everyone thinks about. It requires dedication, focus, and diligence as you don’t want to be forever burdened with debt because of mismanagement and negligence.

Honest Tips on How to Afford Study Abroad

Studying in a new country, you have never been to before is amazing, and once in a lifetime opportunity that you should grab with both hands. Not only do you get to travel, but you can also study at a new college or university and make new friends. It is an experience that you will never forget. Plus, it contributes to the degree you are studying for.

But the reason not everyone studies abroad is because of the price. It can be very expensive to go overseas when you are already a student and paying tuition fees. Though, do not give up on your dream yet. There is away. We know how to afford to study abroad and have some good tips to help you from applying for scholarships to writing papers for money online.

Apply for Study Abroad Scholarships

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Studying abroad is a fantastic opportunity for learning and broadening your horizons. But not everybody can afford to do it on their own. This is why scholarships exist. Their goal is to help talented students get where they want to go with some extra cash for funds. Some of these awards are based on your own personal circumstances, whereas other awards have to be earned through your grades. Do some research on the scholarships that can apply to your situation. There may be one that you can get that will help fund your trip overseas.

Do not forget that most financial aid received from college and universities still applies when you are studying in another country. Every school will be different. But if they have recommended the exchange trip, then it is likely they will still offer you the financial aid that is assigned to you. Make sure you check this so you receive the right amount and it can make your life easier.

Apply for Jobs

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When you are in your new country, you can always apply for jobs and earn some money. This is a good way to fund your new living experience. There should be lots of part-time jobs around the city or even at the college or university you are studying at. So, have a look and apply for some when you are out there. Of course, you are a student and it can be difficult to balance your part-time job and studies. Since a job is very important, you may not have a lot of time for your homework and writing. Though, you can choose writing papers for money instead. You can click here to find out how you can do this. When you write papers for money, you can combine the two together and make the most of your time.

Choose an Affordable Country

Some countries have higher living costs than others. This may make your time studying there more difficult. For example, going to school in the UK or Switzerland can be costly when you think about living expenses. The currency exchange rates will not do you any favors. The best way to make your trip more affordable is to choose a bit of cheaper destinations around the world. This could include places such as China and Mexico. There are still some excellent schools that you can enjoy.

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Fundraise Some Cash

Instead of asking family and friends for money and not offering anything in return, you can consider fundraising and earning the cash. This can help to go to college abroad, whether the money goes toward your plane tickets or a couple of months of rent. There are lots of fundraising ideas you can consider. This includes having a dinner party, completing a marathon, selling your art, creating an online funding page or taking part in charity work. You will be surprised how supportive loved ones can be when they see that the money will be used for good.

Create a Budget When You Are There

It is easy to get carried away when you are living and studying in a new country. But if you do not have the money in the first place, then you have got to be careful about how you spend it once you are there. You are going to have tuition and book fees to pay for, as well as rent and plane tickets. Groceries will also become a significant expense. These are going to be the essentials you have to pay for when you are in another country. So, you have got to travel smart. Create a budget that you can follow when you are away. This can include the amount of money you will spend on food each week and how much you want to have left at the end of the month. It is time to plan the budget to ensure you are able to live comfortably.

Look Out for Study Abroad Loans

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It is possible to get a loan for your educational trip. There are lenders who can offer you a loan if you can give them reassurance. Taking out a loan can be a good way to have money in your account for emergencies. Of course, you have got to budget to ensure you do not waste the loan. You need to be able to pay it back or you could face bad consequences. Only choose this as an option if you are going to have a source of income when you are in a new country.

Enter Competitions

Students can take part in different types of competitions to earn some extra money. For example, this could be an essay writing competition or a sports challenge. Either way, if you think that you have the skills to succeed, you have got nothing to lose by entering. You could end up winning and this can fund your trip abroad. There is always the possibility of winning so keep trying in the runup to going away and see what happens!

Church Fights Against Title Loans With Political Pressure

Secured short-term loans from private lenders are often the only option for millions of Americans who live paycheck to paycheck. The majority of these Americans have little or no savings and do not have the credit score required by the banks. The private lenders of payday and title loans charge high rates of interest. Many lenders also levy fees initially and subsequently fines when the borrower fails to repay on time.

The Problem with Title Loans

These are usually come with a very limited repayment term. These types of loans typically have a repayment term of thirty days. There is a one-time repayment of the amount with the accrued interest. According to this resource page by Titlelo, title loans also have a similar repayment term but in some cases, the period may be extended to ninety days. A few lenders offer title loans with possible renewal terms of up to a hundred and eighty days.

While such loans are usually around a few hundred dollars, the immediate repayment in a few weeks becomes overwhelming and practically impossible for many borrowers. This leads them to a debt trap. The borrowers have to keep renewing the credit at higher rates of interest while paying the fines for late payment.

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The Initiative for Change and Regulation

There have been innumerable instances around the country where different groups of activists and experts have lobbied for the states and the federal government to legislate on title and payday loans. Now churches have joined the fight against title loans and they are creating political pressure for the legislators to act and protect borrowers from predatory practices of private lenders.

Case in Point

Pastors Carlos at Iglesia Bautista Victoria en Cristo in Fort Worth, Texas, recently helped a woman who had got into default on a payday credit. The woman had borrowed three hundred dollars initially from a money store. The credit was not paid and the accumulated interest inflated the outstanding due. She was compelled to renew the credit and this brought on extra fees and more interest.

The family of the woman also had to take a title loan. They pledged the title of the car and failed to repay it. They were at risk of losing the car and some of their loans would have remained unpaid for their total debt owed to different lenders had skyrocketed to over ten thousand dollars.

The Valencia family managed to help the woman. Fortunately, she did not lose her vehicle. The woman is not alone as there are millions of Americans, most of them earning less than forty thousand dollars a year with little or no savings, who have got into a cycle of debt owing to the easily available title loans that carry enormous interest, additional fees, and possible fines. Many borrowers lose their cars and some even have to sell their homes when the outstanding debt balloons to tens of thousands of dollars.

Lobbying Against Title Loans

Various churches across many states are lobbying the local government and senators to bring in stricter laws to regulate the private lending industry. The availability of small credits at exorbitant interests is making ordinary Americans vulnerable to debt that becomes unmanageable sooner than later. Presently, most states have laws pertaining to these credits. However, some laws are more lax than others. Payday credits have rates of interest as high as 900%. The rates are rarely 300% per year or even close. Most payday credits will have a rate higher than 400% per year in every state where they are legal. Title loans do not have identical rates but they are still as high as 400% with many lenders.

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While many churches are fighting against title loans with political pressure, there are some cases where such bodies are advocating for expansion of the availability of such credits. Some pastors in the state of Florida lobbied and pushed the lawmakers to permit Amscot, a payday loan company, to expand its operations. The company is understood to have been helping many people in need and this group of pastors wants more citizens to have access to easy funds in trying circumstances.

An Inconvenient Conclusion

The premise of title loans has its share of pros and cons. It is true that these present a real risk for borrowers and one may lose their car if they fail to repay. Yet, they are often the only option for borrowers to get some money when they need it the most. Had there been better options or the borrowers would have had impeccable credit histories, any kind of loan with a substantially high or exploitative interest would have been a nonstarter. The states that have extensive laws regulating title and payday loans have loopholes that need to be plugged to prevent lenders from exploiting borrowers that are in need of financial assistance.

Bad credit loans can do a lot of good for people with poor credit score

A good credit score is a prerequisite for availing loans easily because lenders consider it as in index of the reliability of borrowers.  People with high scores have a good track record in managing them and hence more dependable to lenders while those with a poor score are risky borrowers about whom lenders have strong reservations.

Different lenders have different methods of considering what constitutes good score, but generally, a score above 700 is good, and anything below it up to 599 is the average score. Going down further can strictly debar people from availing it as lenders consider it high risk to lend them any sum of money no matter how small it might be. 

According to creditninja personal loans are mostly unsecured in nature, the score assumes the highest importance in gauging the reliability of borrowers. Low scores can not only limit borrowing options but can even result in denial. However, all is not lost for people with the poor score because many lending companies provide a lifeline to them by providing bad credit loans. It is the same personal payment but with some special consideration. 

Bad credits are alternative to traditional loans

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They are an alternative to traditional loans because banks and credit unions have strict requirements of good score to approve it of any kind. When someone with poor scores faces any financial emergencies like making payments for medical bills or need cash for meeting the high cost of car repair they would simply not qualify for it from the traditional lenders who use score a yardstick to determine its eligibility.  Instead, some other companies that specialize in the personal loan would be willing to give it to them despite bad credit and name it like bad credit loan. The approach is similar to repacking a product to make it look different, whereas all the characteristics of them are the same as any other. 

What is good or bad credit score?

Scores reflect the dependability of borrowers to lenders and the good or bad about it depends on the way lenders analyze the score to assess the risk of borrowers.  The score that some lending companies consider as a risk for their businesses might not be as much risk to some other companies. However, there are some guidelines to understand the broad distinction between good, fair, and poor score. The score scale ranges from 300 to 850 scores between 700 and 759 is good, and from 760-850 is excellent. The mid-range from 600-699 is fair, and anything below this range can be bad for borrowers as it diminishes the chances of availing it greatly.

Giving a lifeline to borrowers

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People with poor credit score must work hard to get it because the closer they are to the 600 marks, there is still some chance of getting it, but the interest rate will be much higher. They must pay the cost of higher interest in case they manage to get any of it approved. The high-interest rate helps to cover the risks perceived by lenders, and it can even be a lesson for borrowers who would be careful to ensure that they improve their score for better borrowing options next time. In fact, bad credit loans give borrowers an opportunity to correct their score and build a positive image that paves the way for better borrowing rates in the future.

Impact of bad credit score on borrowing

Shopping becomes extremely difficult for people with a bad score, but the silver lining is that still, they can hope to get it if they are willing to bear high interest. The options are, of course, much less because only a few companies would be willing to provide bad credit loans, but still, there is some hope that it would be available. Some lending companies offer both secured and unsecured loans to people with bad credit, but unsecured of it is more costly as it carries very high interest.  Yet, some types of it can come in handy when people are in dire need of money that should be available quickly.

Types of bad credit loans

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 Secured and unsecured are the two broad categories of it that have some sub-categories like Bad credit installment, PayDay, Cash advances, and title 

Bad credit installment loans As the name implies, its payment comprises of fixed monthly installments, which is a great relief for borrowers as they do not have to pay it at one go nor immediately. It is a great opportunity to rebuild your score. Since the payment spreads over a long period, you can include it as a part of other monthly bills you pay. Making timely payments can qualify you for rewards too.  

Payday loans – When you are in urgent need of cash, it can save your day. The application process of it is simple and fast as the money reaches your bank within 24 hours. However, you must pay back it as soon as you receive the next paycheck. The APR on it is usually about 400%, and you need to plan well before taking it or else it can become difficult to manage.

Cash advances – This is a variant of a payday payment, and consists of issuing a check to the lender for its amount together with lenders fee and interest (annual APR is 400%) and the lender will take the full amount as soon as you receive the next paycheck.   

Title loans – You can avail it online or at storefronts, but it is a secured loan with an annual APR of 300%, and you must furnish collaterals. You must pay it back in a few weeks.  

While the opportunity of getting it’s despite poor credit is good news, be careful to evaluate the offers with a focus on the payment terms and interest rates so that you can manage it smartly.

Lacking a Traditional Mortgage Loan? Purchase Your Home with These 5 Methods

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The dream and the ambition to own your home, often surpasses most other life goals a human being might have. However, there are many roadblocks on the way to home ownership chief amongst them being low credit scores.

Other times it is often a lack of a down payment. If you are caught up in this quagmire, there are alternative home credit lines besides traditional mortgage loans that can help you purchase your new house with much ease. Some of them include;

An online mortgage lender

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Buying a house, especially the first time around can be an unnerving venture. The young especially are leaving school shackled with hefty student loans making it much more challenging to pursue traditional financing.  Your first visit to your loan officer might be downright intimidating if you have no idea how far your finance can be stretched to afford a new home.

But as the growth of online mortgage increase, more people who are in not in a position to find mortgage from traditional sources, are finding their way out of this quagmire. Anyone now can compare the terms and rates of different mortgage lenders to find one that is more compatible with their needs. As more and more traditional lenders take up more space on the internet, it is becoming much easier to crunch your numbers in the privacy of your own house.

Before going house shopping, it is essential to know your numbers.  Have a minimum of three quotes from three different lenders to help you zone in on what is affordable. After that approach an online lender of choice who will help you out with your home’s financing, even in situations where you might have a low income, credit problems or are in self-employment.

Online home credit lenders are more accommodating for anyone with a low credit score or other borrowers that traditional mortgage lenders view as a source of risk. These lenders will give you options and affordable interest charges. However, if you have credit problems, these alternative sources of home financing will provide you with higher rates of interest.

Go to hard money lenders

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Hard money? Really? Probably the last thing you want to get involved in if you are in a difficult financial situation is a shady, shadowy lender located down a dirty alley. This is probably someone who will make you sleep with the proverbial fishes at a whim. It is an open secret that traditionally there have been many bad apples when it comes to hard money lenders.

These sky-high interest rate lenders didn’t do much good for the industry because they were mostly predatory; ‘loaning to own’ property through risky loans that expedite foreclosure. Thank you progress, the era of these mafia-like lenders has passed and what’s left is stigma from the past and a fantastic opportunity for a short-term loan.

Through hard money borrowing, you can partake of the housing market if you cannot pursue traditional home loans. This line of financing is given by private investors or funded by a group of investors who will, for example, use your property as collateral.

It is an alternative source of a fast loan, and its terms are usually one year, but it can be extended to two or five-year terms. It is repaid back in a monthly fashion of either interest only or principal and interest and a balloon payment as the loan term ends.

These lenders will give you an amount based on your property’s value. And you do not need to have real estate to acquire hard money funds. You could use the house you intend to buy with the funds borrowed as collateral. If you have a property in your pocket already, well and good, you can easily use that too.

If the value of your property is fantastic, you will get excellent rates from a hard money lender. These quick approval lenders which can be found right here are less interested in your credit health and more interested in property values. However, your overall credit health will still impact your rates so it does help to keep it as clean as you possibly can.

If for instance, traditional lenders have turned their back on you due to a short sale or a foreclosure, hard money lenders will welcome you with open arms if you have equity in property form to show them.

Rent to own

source: gfgproperty.com

In the 80s and 90s, it was trendy for home buyers to test drive home before purchase. The trend lured in hordes of prospective home buyers, endearing itself to those with low credit scores or without down payments from traditional brick and mortal mortgage lenders.

What’s more? The process gave those wishing for a house but unsure if they need to purchase a chance to dip their toes into the home-ownership pool and decide if they are for the plunge or not. In the earthly 2000s, the system began to fall apart as such prospects became harder to find.

Now as banks tighten their lending processes the rent to own system is back with a bang. Rent to own or lease options homes helps you to fully purchase your house at a later date after the signing of a contract between you and the property owner. The process may take anything from two to five years, which when complete you the renter, will be allowed to purchase the home you have been renting for an agreed amount.

The signed contract ensures that the property’s seller will not place your rented home back on the market during the time stipulated by the agreement.  Rent to own properties have unique advantages to them. First of all, they are much easier to sell off in a slow market. Since they are classified as a rental property, they will give tax and income deductions too.  

With them, you can rebuild a credit score that’s in the dumps without wasting away money renting the property you cannot buy in the end. The option deposit coupled with the rent credits will, in the end, make up for a tidy sum that can be used as part of the home’s purchase costs. As per a survey by the Federal Trade Commission, 2.3% of American households have been part of the rent to own process of home-ownership, and 4.9% of this segment has done so in the last decade. The statistics also show that over 58% of these renters do end up purchasing their homes at the contract’s maturity.

VA loans

The VA loan is a 100% financed, no money down home-ownership program guaranteed by the Department for Veteran Affairs for the U.S military and their spouses.  Any of its members, honorably discharged or on active duty can partake of the VA loan. If you or your spouse has spent a minimum of six years serving in the National Guard or Reserves, you are also qualified for the loan. A VA loan can give you up to $726,525 in areas like Honolulu, California, San Francisco and Hawaii where home purchase are high but are based for the military.

USDA and FHA loans

source: realtor.com

The USDA loan once known as Section 502 mortgage or Rural Housing Loan is a 100% mortgage available to both rural and suburban areas. The investment is directed to moderate and low-income households in need of a home purchasing loan.

The FHA is a loan insurer, and it ensures loans for people with low FICO scores as long as you have a good explanation (if there is one) for your low points. The FHA is very liberal in its approach to home financing, and it can allow a down payment of 3.5%.

Conclusion

There are few things as comforting as leaving a hard day’s work and finding comfort in your own home. Children and adults alike are better off both socially and emotionally in the stability of a home. Now you too can own a piece of this comfort from these sources perchance the traditional lenders have turned their backs on you.

How to Break Out of the Debt Cycle – A Simple Guide

Loaning money to get out of a difficult financial situation can sometimes be the best option, but it can easily set the pace to a continuous debt cycle, especially if you end up borrowing more than you can pay back. Having a credit card and even a small loan can seem like no problem, but when you end up borrowing from one party to pay the other, you may want to consider some lifestyle changes to get you out of this continuous borrowing loop. The following guide was put together to help you get out of financial trouble, avoid bankruptcy and stay on the right track to financial success.

What Is A Debt Cycle?

A debt cycle can be translated into continuously borrowing money from one or multiple sources to pay off other debts or keep up with monthly payments. This can lead to bigger debts, bigger interest rates and financial failure. By continuing to borrow money, you will end up spending more than you produce and this will lead to financial struggle and eventually bankruptcy. Many people choose to take out loans to pay off other existing loans, as it can seem like the last resort but end up paying more interest costs than their monthly income. Taking out a loan to invest in your educational or business future can be a good idea, but taking out money just to support an unhealthy spending habit may not be the right decision.

Getting Out of the Loop

Admitting you are experiencing some financial trouble is the first step to recovery. Don’t be too hard on yourself, by spending too much time questioning your past financial decisions. What’s done is done and, instead of losing more time overthinking, it might be best to start thinking about solutions to get you out of the current situation:

  • Review your budget

In order to begin solving your financial issues, you will first have to understand where do all your money go. You will need to sit down with a pen and paper and start writing down your income and spending. Take some time to make sure you don’t miss anything, as you will need to have a realistic view of the situation. On a column, write down all your reliable income and add up the amounts. On another column, write down all your mandatory monthly expenses, like rent, groceries, utilities and bank payments. After adding up the amounts here as well, subtract it from your income and write down the number. Your expenses should never exceed your income and if this happens, you will have to cut down on some expenses. Take a look at the list and see where you can adjust it. You may have to cut down on something you want, but don’t actually need, in order to even out the numbers.

  • Make changes in your lifestyle

In order to pay out of debt, you may have to make some drastic changes in your lifestyle and cut down all unnecessary spending. If you usually eat out in your lunch break, preparing your meal from home might save you some money. Consider walking, taking the bike or using public transportation to get around town and use your car only when extremely necessary. Don’t expect this to be easy and avoid doing it all at once, as you may feel a bit overwhelmed by the changes.

  • Avoid other loans

Sure, taking out more money to cover up your existing debts can seem like a good option, but it will get you right back where you started and possibly set you up for more trouble. Don’t get into more debt before you can afford to pay off what you already owe.

  • Consider financial advice

If, even after making some drastic changes in your lifestyle, you still can’t seem to manage your finances, it may be time to consider seeking some financial advice. A financial counsellor might offer you some option you didn’t think of before, like getting an individual voluntary agreement (IVA). If you are struggling with council tax debt, this might be the best option for you. Besides bankruptcy, an IVA is the only way to write off council tax debt. IVAs allow you to pay back a chunk of your debts, over a period of five years. At the end of this period, the rest of your debt will be written off. Although it sounds easy in theory, there are more things to keep in mind, before considering IVA. For example, IVA can not be used to pay off student loans, child support or court fines. Your loans need to exceed a particular amount in order to apply for an IVA and you will have to prove you have a stable income to sustain the plan built up by the Insolvency Practitioner.

Out of Debt- Now What?

Getting out of debt was surely not an easy process. Once you’re finally out, make sure you remain on this path and don’t fall back into old habits. It’s important to maintain a financial plan that will help you reach your goals and start saving some money. Don’t stop budgeting, even though you might feel it doesn’t have to be that strict now. Allow yourself to spend a bit more on some categories now, but make sure your expenses don’t exceed your income.

After finally paying off your debt, it’s time to start saving some money and build an emergency fund. This fund will help you in extreme situations, where you would normally start thinking about borrowing money, like job loss or medical emergencies.

Now that you are financially stable, you may want to consider setting up bigger goals. Maybe you want to buy a car or a house or open a business.  Now it’s time to start moving towards these goals and plan ahead for your future. When paying off your debts, you got used to spending a lot less money and maybe even realized there are some things you don’t actually need, but were just whims and you can live without them. Use the money you typically spent on these things and direct them towards a savings account. Talking out to a financial advisor and considering investing money into some mutual funds might also be a good idea.