How To Get A Loan With Poor Credit Or Low Credit?

bad credit score, and wish to avail a loan but can’ t because they have a bad credit history. Many lenders and banks consider it for loan approval. Sometimes they do not allow taking a loan from them, because they consider them as high-risk customers. And think that they will not be able to repay the loan payments. Now, under these circumstances. People need to find the best sources of money. Where they can get urgent cash, and their bad credit score does not matter, and they can make some money in a fast and easy way. Here you will find the solutions to your financial issues, which helps to cover your unexpected emergencies. Because unexpected emergencies can arise at any time, and people need money to solve them. Unexpected emergencies can be any type to pay bills, or people may plan for their vacations urgently. Its depends on people that why they need money urgently.

What is a credit score?

A credit score is a measuring stick on which an applicant’s creditworthiness is judged. It is a numerical computation because of which moneylenders decide the qualification of endorsing an advance to the person. It is a very terrible and irritating thing for people who are suffering from bad credit score because lenders ask the first question regarding credit score. Good credit score influences the loan to process simply because the loan approval is based on the credit score of the people.

Where To Get A Loan With Bad Credit

Many lenders allow a borrower to take a loan even if they are suffering from bad credit or low credit score. The applicant does not need to worry about a loss to property/asset. You can get bad credit loans without selling any property and can take cash. You need to pick the right alternative to get money which is suitable for your situation, and it is convenient for you to borrow without bearing any risk.

Few Ways Where You Get Money With Your Low Credit Or No Credit!

Loans On Your Property/Mortgage Loans:

You can take a mortgage loan when you need long term money to cover your expenses. Banks allow you to take cash on your property. And you can get your property title back, only after you have repaid the complete loan payments. Some lenders allow you to take a second mortgage loan. Here you can take a loan against the same property. But the thing is not so easy as they seem to be. There are many rules and regulations, and you should agree with these terms before taking cash from them and make a contract with them. While this can be a conceivable approach to borrow credit in return of the values in your home, reimbursement, if not done on time, can put your home at risk. Anyway, if you have enough values, the financing cost might be somewhat less. The mortgage that is right for you will depend on your tolerance for risk, your financial situation, and economic conditions.

Pros

  • Investments:
It gives investment potential to the borrowers to pay far less for your property than its ultimate financial worth in the future. It helps to build your investment.
  • Lower interest rate:
This is an opportunity to obtain a lower interest rate. And the top reason to refinance a mortgage loan. Borrowers facilitate that they can keep their home and preserve their credit. As a refinance can lower not only the interest rate on a mortgage loan but also the mortgage payment.
  • Long-Term loans:
You can take a long-term loan against your house equity. A condition is applied while you take a loan that if you are applying for a long term loan. Your house’s value decides the loan amount that you can get.

Cons

  • Secured Loan:
It is a secured loan to take against your home property. So if you are unable to repayments, you could end up losing your home.
  • Financing Costs:
The cost of a loan is one of the biggest hurdles to financing. The amount includes the home appraisal, the credit report fee, the application fee, discount points, the title search, and the loan origination fee.
  • Additional charges:
There are many hidden fees included in the repayment amount. Many complementary and a surprising amount of other costs to pay, including valuation fees, remortgaging fees.

Selling Out Property:

Selling property is not a solution to solve the problem of money, and no one can sell their property even in the worst situations of their life. Making property is very difficult, and selling them out is the worst situations for people. When they need the money and don’t have many options to get instantly. Emergencies can be medical emergencies which can’t be delayed and can’t wait for a long process of approval for a loan. That time they have only options to sell the property and borrow cash.

Ask Friends For Money:

It is a good option to make money or loan from family or friends. When you are facing adverse situations, and you can’t handle your financial emergencies alone. But sometimes it is a quite embarrassing situation to ask for money to friends or relatives. You may avoid asking them all the costs. It can depend on your relationship, and it should be a last resort option for asking money from them. It might be uncomfortable to write out a contract with them. Whether a legal document is created or not, your relationship depends on the borrower taking this transaction seriously.

Car Title Loans-

Hopefully, you have an emergency cash already prepared for something like this. But if not, you may need to borrow money from somewhere, if you find yourself in trouble and unable to obtain a loan from local banks. A car title loans are the best alternative to borrow short-term loans, where a borrower’s vehicle title serves as collateral. You can cover your unexpected emergencies with the help of your vehicle. And there is no matter of your bad credit history. Many lenders don’t even check your credit at all. It is a quick way to get money without any interference and talking any risk to loss of property. The lender needs your clear title to approve car title loan.

Pros and Cons

Before taking cash against your car, you should know all the facts related to it.

Pros

  • Easy and Fast Loan Process: One of the biggest benefits of a car title loan is that you can get painless and easy online transaction for same-day cash. The process of verification won’t take more than an hour.
  • Allow Bad Credit Score: lenders accept all types of credit score. Your bad credit score doesn’t matter at all. You can apply for a loan even if you are suffering from low or bad credit score.
  • You Can Still Use Your Car: You can keep your car and still drive even after taking cash from the lenders. A lender only uses your vehicle’s title. They don’t need to keep your vehicle as security.
  • Convenient Repayment Options: There are flexible payments options where no extra or penalty charges will pay for late payments.
  • Long Loan Terms: Borrowers can apply for long term as well as short term loan according to their need. And can borrow money based on the market value of their vehicle.

Cons

  • Use Vehicle Title: Lender use your vehicle title as security. If you miss your car payment, title lenders can legally repossess your car.
  • A Lien On Your Vehicle’s Title:
If you take a loan on your vehicle title. It is recorded at your state’s motor vehicle administration. After taking a loan, you will not be able to get another loan for your car until you repay the loan.
  • Short-Term loan: Some of the lender allow you to take only short term loan on your car title so that you can make easy repayment of the amount.

What you Need To Apply For Car Title Loan:

  • A lien-free Vehicle: You must have a lien-free or clear title vehicle.
  • Registration and Insurance paper: Complete documents of registration and insurance paper which is on your name.
  • Age of majority: You need to be older than 18 in most states to take out any loans.
  • Residency proof: lender required a residency proof of the people for security purpose where they currently live.
  • A valid driving licence: you should have a valid driving licence which is very important for taking loans against your title.
  • Spare keys: Carry 2 keys of your vehicle, lenders need to keep a key of your car at the time you borrow cash from them.

Steps For applying Loan Process

  • Online application: It is very convenient for the applicant, to apply online and complete all process of verification online. And take benefits for the online transaction.
  • Upload required documents: To start the verification process and get approval on loan. You need to submit some documents which are required.
  • Verification process: Lender Start their verification process and check the documents.
  • Get approval for loan: After all process of verification, you will get approval on a car title loan.
  • Borrow cash within an hour: You can borrow money with an hour.

Best Way To Take Cash!

Now, you know the best alternatives and their pros and cons which helps you to make the best decision to borrow money. If you want to take instant cash without any risk and don’t want to sell your property, then car title loan is the best option. If you own a clear title vehicle, you can apply for a loan to quick approval and get cash against your car.]]>

Things you should know about Debt Management

Have you ever wondered how you get into debts?

Debt is something which, none of us would want to entertain in our lives. But sooner or later, we do get into debts and sometimes it takes years to clear it off. We all think that we have control over our money, but the fact is our mind is manipulated every moment towards spending money. Before you even realize it, you would have spent it on something unwanted. And the debts get added. If you follow a proper debt management plan, you will not only be able to clear your debts plus you will know to avoid getting into debts.

Debt Management

What is debt management?

First of all, you need to know what debt management is and how it can help you.List down the debts based on the interest rates. Start clearing off the ones with higher interest rates. If you find it difficult to clear off debts with the existing financial situation then you can look for debt management plans. There are various companies that offer debt management plans and you can choose based on your needs. The first essential thing to do is not falling into further new debts until you clear all the existing debts.

There are quite a few things that you need to know before you can plan on debt management.

The marketing strategy:

A research says that the turnover of media advertising industry was 207 billion U.S dollars in 2017, which is the result of you and other customers who fall as prey of the marketing strategy.

People in the fields of marketing, sales or advertising know it better to make you spend your money on the things which you might not need even. Call it the marketing strategy or your hopping mind which gets tempted to buy things – everything adds up to debts and tons of debts!

Installments add up to become debts!

You do all the research for a home, and finally found your dream home- a place of your choice with all the things as you wished, but wait for the cost of it is beyond your affordable limit. The cloud of disappointment surrounds you, and then a friendly salesperson comes and shows the path. He explains how the huge amount can be broken into small monthly installments to be paid in few years and it won’t pinch your budget as well. You might just notice the short-cut that leads to your dream home and not the debt that is going to be with you till you retire or may be longer. Meanwhile, you need to look for a way to save for retirement as well. A house or property out of your affordable limit will leave you with debts for a lifetime and make it difficult to plan your savings.

By knowing the debt management technique, you will be able to organize your finances well. You can avoid such scenarios by fixing a workable budget before you look for a house. This will also help you to evaluate your debts, clear it off and how you can progress towards a savings plan.

The comparison trap!

Why can’t I go for nice cars, big home etc. which other people have?

I can easily get those by paying small monthly installments over a period of months and years. But, what about savings? Others would have saved for it and bought, you might not know the details.

Don’t fall into the trap of comparing with others and end up buying something which you might regret for years. Paying 4 to 5 small instalments every month can seem like a burden in the long run. Especially, when there is a financial emergency, you are all stuck in debts and left with no money.

The savings strategy:

If you still want to buy things out of your affordable limit, then start saving for it. There are lots of ways in which you can get started with savings:

  • Start with saving in banks that offer better interest rates.
  • Look for ways to invest your money.

Create a short-term or long-term financial goal:

A short-term goal can be a down payment for a car. A long-term goal can be a down payment for your dream home. This will surely reduce your burden of debts. Once you have saved a good amount, the instalments may be paid off in a short span. You can even start saving once you clear your monthly instalments.

Summing up:

Getting into debts is very easy but getting out of it will take huge efforts and time. You need to manage your finance wisely or else you will end up in trouble. Through debt management, you will be able to learn to balance between your debts and savings.

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Why It Is Important to Know Your Credit Score?

In today’s busy world, where everything is available online- be it shopping, booking a movie, looking for property etc. The payment is easily made by just swiping your credit card. But there’s something which most of us neglect, to know your credit score.

So, what’s the big deal and how do things change by knowing the credit score? This is what you might be thinking. However, knowing your credit score can benefit you in various ways. Swiping your card is the easiest thing to do. But every time you swipe your card, your credit score changes. Every change in your credit score can significantly change your decisions. Before you know the benefits of a good credit score, you must know what credit score is and how is it calculated. Credit score What is a credit score and how is it calculated? A credit score is a statistical number that defines your creditworthiness. A credit score is the distilled version of your credit report. It is a 3 digit number which is calculated using complex formulas. The credit score ranges from: 300 to 850. A high score represents that the person is financially trustworthy. The factors involved in calculating the credit score are:
  • Your payment history
  • The length of your credit history
  • The number of accounts you have
  • The types of accounts you have
  • Your used credit vs your available credit
In short, your credit score not only shows how well you manage your debts but opens up to a wide range of benefits. So, let’s understand why it is important to know your credit score. 4 Reasons to know your credit score:

Your credit score gives the clear report of personal financial health

Do you know your credit score? You can get the clear report of your overall personal financial health just by analyzing your credit score. If your credit score is:
  • Low credit score implies: That you have more debts which you can’t comfortable handle. Also, it implies having too many credit cards at once.
  • High credit score implies: You have handled your debts well and you clear debts on time.
Every change in your credit score gives you the idea of your changing financial situation. So, it’s essential to do credit monitoring once every month to keep a check on your personal financial health. Check your credit score now to see know the status of your personal financial health. You can know your credit score online through multiple sources.

Your credit score helps you to protect yourself from frauds

You can check your financial situation by analyzing your credit history and credit report. Your credit score can show if you’re financially vulnerable from the way you handle your finances. Every late payment you make or having lots of credit, all this will be visible in your low credit score. If you’re among the people who never miss out any bill, do on-time payment, have zero debt and a small handful of credit cards then, your credit score will automatically be high. Additionally, the credit score helps you to protect yourself from frauds. How will you know if your credit card is being misused by someone else? In this tech-savvy era, anyone can easily misuse your credit card just by knowing your credit card number and other particulars. Credit card frauds both online and offline have become a common threat these days. So, it’s very important to be cautious when it comes to managing your credit card. Fraudsters can buy new credit cards on your name if they know your SSN. Because of such events, your credit score can take a slide down. So, it is very essential to know your credit score and monitor every small change that happens. If you feel there’s some change in your credit score which you feel suspicious then check with your credit card provider immediately.

Your credit score will fetch you a discount for life

Having a good credit score can easily get money from credits or bank at good interest rates. Not only that you can enjoy benefits such as a loan with low-interest rates, get approved for a mortgage loan, extra competitive for a new job or rental property etc.

Your credit score shows how you can mold your finances to a better shape

Your credit score can point out mistakes and act like a coach by showing a way for better financial management. Act according to the way your credit score recommends to mold your financial future to a better shape.

Summing up:

Hope you would have understood the importance of knowing your credit score. Start evaluating how you can avail of the benefits of your credit score. Also, if you feel your credit score is low then look for ways to improve it.]]>

Customers are Facing Problems of Hidden Charges Associated with Prepaid Debit Cards

As the average household debt is an all-time high in the US, consumers really need to think prudently before taking a loan and falling into the vicious spiral of debt. However, the bulwark to their prudence seems to be the offers made by debit card companies.

The prepaid debit cards come in handy in situations where money is required on an urgent basis. The advantage of such cards is that they can be refilled easily. No wonder the popularity of prepaid debit cards has consistently been high. Some even argued that prepaid debit cards are the best way to avoid debt. More so because a study done by Pew Charitable Trust showed debit card users have previously used conventional financial services.

Prepaid Debit Cards

Problem is, prepaid debit cards have other flip sides. One of them is hidden charges. A website called bankrate.com analyzed 30 different prepaid debit cards and found multiple fees to be associated with almost all of them. Such fees are monthly maintenance fees, card activation fees, and fees on ATM withdrawals and balance inquiries.

The difference between these fees is that some are small while others are big and burdensome. The trend seems to be keeping the fees low when a company is entering into the market; but as soon as it makes a brand name, it tends to increase the fees and to the anguish of customers, federal disclosure regulations don’t apply to prepaid cards. This allows companies to keep the real charges out of sight.

Cardholders, as a result, end up paying more, sometimes way more than what they are supposed to pay. When cardholders inform the companies about the hidden charges, the customer service department disconnects their call or put them on waiting for so long that they themselves end the call. Majority of customers don’t complain to the Consumer Financial Protection Bureau as they consider it trivial.

Regulatory authority needs to monitor the extra charges. When a prepaid debit cards customer receives a monthly statement by mail, a service fee is attached and more than 50% prepaid debit card companies charge up to $6 for each statement. Activation fee is another cliche that normally cost from $3 to $8.

Some consumers have become so pissed with the extra fees that they have thought of discontinuing the prepaid debit card and moving back to traditional methods. A person called Gail Fiorentino said, “You have to watch for the fees and you have to pay extra for them so sometimes you wonder if they’re worth it…”

There are plenty of other customers with the same question in mind. It’s best for debit card companies to regain their trust before customers discard using the cards and before the regulatory agencies take steps.

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Ways to Get Out Of Debts

Panic-stricken faces, reluctance to spend even on essential commodities, high stress, and pressure levels, getting annoyed even at the slightest chance are not just signs of depression but also of a person in deep debts. Well, the way out of it very simple pay them all.

The happiness of a person paying the last instalment of his loan is equivalent to that of a person who has become a father. You feel your shoulders light and mind stress-free. Imagine what will be your state of mind when you have to get into another loan to manage an urgent need? This will be a nightmare and depressing experience. So if I tell you that, there is a way to get out of debts and continue to be the same for the rest of your life, won’t you be related?

Debt Management

Here are five ways to get out of debts

Plan your savings

 I start with the most sort after and preferred solution to get out of debts, savings plans. Well, this is the easiest way to get out of debts. Using your money from savings to spend on life events and emergencies instead of taking a chunk from your monthly paycheque. There are a lot of short term and long term investment plans available for you to scrutinize and embark on. Once you decide on the plan, decide on the savings and then proceed to save it on a monthly basis.

Discipline is very important when you start your savings plan, no matter what the amount allocated for the savings should not be used for any other purposes. The amount saved should be used only for your goal, when you can save from those savings to start the cycle again to earn better monetary benefits.

Record your mistakes

Nobody likes to time travel to visit the mistakes made in life. But I am not going to ask you to time travel but create a documentary about various financial mistakes you have made or make an entry into your diary whenever you make a mistake. This will help you in two ways:

  1. It will protect you in committing the same mistake twice.
  2. It can also be used to bail you out of precarious situations simply to help you in finding a way to get out of debt

Secondary income

The best way to increase your cash flow and to save more money is to create a source of secondary income. Choose your secondary income source based on your passion. For example, if you are passionate about writing, then you can choose content development, article writing as a secondary profession. Writing can be done from home and it will also quench your passion. It will also help you as a stress buster and when money starts to come in from the secondary income you can breathe a lot easier than you were before.

When you choose a secondary income source, make sure it is not stressful and laborious. You already have your primary job to get stressed and over work. So take a lot of care when you choose your secondary income source.

Invest your way to the top

A business needs assets to increase its valuation similarly a person needs investments to increase his standard of living. Right investment at the right time in the right place will yield you right results. The easiest way out of debts is climb the ladder of investments. Plan your investment mix correctly. Investments to aid you during your retirements should be the first and foremost investment you make.

DCA provides a lot of investments, 529 plan which are tax free can also be chosen to make investments. These may come to your aid when you need them to.

Battle against boredom

Study says people tend to spend more when you are bored. The best way to put it is

“An ideal mind is a devil’s workshop”

It is always better to keep yourself engaged in some activities. When you can be active by paying least amount of fees why not? You tend to splurge money when you a bored and you start to purchase something to kill time. For example, you may decide to purchase Xbox to kill time until your girl returns from work. Instea,d you can choose activities like jogging, badminton which are comparatively cheap to kill your time. You can enjoy the twin benefits of fitness and stress relief.

Summing up:

To live with or without a debt is in your hands. It is always better to live a life without any financial burden. This is life without a financial burden is not impossible but is possible with little planning and wise decisions. A decisions for life time after all we are not going to be working all our life, when we decide to hang our boots make sure you hang it with pride and without any regrets.

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How to Improve Your Credit Score Fast– Learn the Tips & Tricks

A good credit score cannot be built in a single day. Building your credit score won’t be easy as cooking instant noodles, where you can do little work and instantly get the result.

To build a good credit score it requires a lot of work. It takes time, so no quick fix for it. Seeing any improvement in credit score could take 60-90 days depending on your past behavior.

Is your credit score below 760? You want to achieve this magic number?? There are things you need to work on it now, to improve your credit score in next 3 months.

How to Improve Your Credit Score Fast

Few important steps you need to take right now.

Check Your Credit Reports Regularly–

You need to check your credit report regularly and fix the errors there to improve your credit score. In case you haven’t done that, you can request a free copy of your credit report and check it to find any errors present.

Do you know? 5% percent of consumers had an error on their three credit reports.

Sometimes your credit report may contain errors which might affect your credit score as it contains the data used to calculate your credit score. One tip is to make sure that there are no late payments which are incorrectly listed for any of your accounts and that the amounts owed for each account are correct.

Setup Payment Reminders

You always need to make your credit payments on time as it is one of the biggest contributing factors to your credit scores. Few banks are there who offer payment reminders through their online banking portals which help you to remember when your payments are due. You can also enrol to pay automatic payments through your credit card and can enable loan providers to have payments automatically debited from your bank account.

Reduce Your Debt Amount

This might be the most difficult of all the tasks but reducing the amount that you owe is going to most important tool to improve your credit score. Initially, you need to do is stop using your credit cards. You can use your credit report to make a list of all your accounts and then determine how much you owe on each of your accounts and identify what interest rates they are charging. You need to initiate a payment plan that gives more importance to paying debts of the highest interest cards first while at the same time maintain minimum payments on your other accounts.

In addition to making these right moves, you also have to make sure that you are consistent on your plans. Mentioned below are few easy techniques which can improve your score –

 Negotiate with your creditors –

You can consult your creditors to delete any kind of debts which are pending. Notify them that you will be paying the remaining balance if and only the creditor will mark all your debt as paid or maybe even totally remove it.

Become an authorized user

You can always opt for one or two pieces of plastic, it will do good things to your credit score. This will happen only if you don’t charge too much and pay your bills on time. In other words, you definitely have to be a responsible user of credit.

You can declare to put an agreement in writing. In the agreement, you can state how much you can spend and how you will pay your share of the bill to the cardholder. Then the most important part is to do honour your agreement and use the card responsibly.

Under-use your cards –

You need to be responsible use your card and make sure that the “credit utilization ratio” is not more than 30% and ideally even less. This will help you become financially rich.

Raise your credit limit –

You can always your creditors to increase your limit. You can make your Mastercard good for up to $3,000. But you need to be cautious in this case as it works only if you can trust yourself not to increase your spending habits.

Final Words

Bad credit scores have no easy fixes. The fact is that you don’t rebuild the credit score, in fact, you rebuild your credit history, which then reflects your credit score. The time taken to rebuild your credit history depends mainly on the reasons behind the change. The negative changes in credit scores occur mainly due to the addition of a negative element to your credit report which might include things such as a delinquency or collection account. Except for bankruptcies and unpaid tax liens, most public record items remain on your credit report for seven years. Whereas inquiries remain only for two years on your report.

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There’s a Way Out of Even the Deepest Debt Crisis

Consumer debt is at an all-time high, and even though it could be argued that much of our economy is sustained by debt, that’s probably a scant comfort to you if you’re drowning in debt yourself. But there is a way out of even the deepest debt crisis. You may be able to get yourself out, or you might need to enlist some help. But as is the case with most recovery programs, you first have to recognize the problem.

Debt Crisis

You’re certainly not alone

One very common element among people who find themselves over their heads in debt is a tendency toward self-recrimination. They tend to feel that their “failure” is unique to them, and often the product of some moral or intellectual shortcoming. The facts belie that tendency, however, as the average American household debt is over $90,000 in debt, and that average includes households that are debt-free. If you remove the debt-free households from the equation, the average jumps to a staggering $130,922, of which $15,762 is from credit cards alone.

Why are so many people struggling under such a huge debt burden? A significant part of that leap can be attributed to the fact that inflation has far outpaced increases in individual income. While income since 2003 has increased by roughly 26%, the costs of food, housing, higher education, and especially healthcare have risen considerably more, with some more than doubling in the same time period. If you go back even further, to the early baby boom generation, the cost of the average house back then – the biggest single expenditure for most people – was less than the cost of the average automobile today. When you add in how aggressively debt is marketed, it should come as no surprise that individual debt has skyrocketed, not just for the few, but for the many. It’s not about morals; it is simple math.

So if you were feeling alone in your indebtedness, rest assured that you’re not. Millions of people in the US and elsewhere are in the same boat as you. But if you’re ready to disembark from that crowded boat, it’s going to take some determination and hard work.

Finding your way out

There are probably almost as many “expert” opinions on how to get yourself out of that credit hole as there are people who are deep in debt, but a few basic actions are essential in any viable process. Among them:

Get a clear picture of your indebtedness – Most people actually have a very unclear picture of their actual indebtedness. They are aware of the major items such as mortgage, car payment, and the like, but often fail to consider other monthly expenses when composing their debt analysis. Take into account every expenditure that you face on a monthly basis, even the most minor ones. If they amount to nearly as much as or more than your monthly income, you definitely have a debt problem. And if you don’t have at least enough money left over every month to cover unseen expenses such as car repairs or replacement of a major appliance, you might not be in a debt hole now, but you’re probably already digging a hole that you’ll fall into in the future.

Don’t incur additional “bad” debt – Obviously, the essential first step toward getting out of a credit hole is to put down the shovel and quit digging yourself deeper in. That means not using credit to make non-essential purchases, no matter how tempting they might be.

Recognize and make use of “good” debt – Not all debt is bad. Some kinds of debt, such as a mortgage, should be viewed as an investment in the future. If you have a significant amount of high-interest debt such as credit card balances or even an old mortgage that charges at high-interest rate, you could save a significant amount every month by consolidating those credit cards into a single loan at a lower interest rate and/or refinancing your mortgage to take advantage of historically low rates currently being offered by lenders.

Shop for the best credit deal – The credit market is very competitive right now, especially for people whose credit scores are good. Shop around to see what kinds of deals different lenders offer, especially on mortgage loans. And don’t forget to check out credit unions, which tend to offer better terms and interest rates than banks, as they are typically owned by and more favorable to their members, rather than corporations whose sole objective is maximizing profits.

But sometimes debt problems can seem overwhelming, and you may despair of ever being able to get yourself out of debt. That’s when you may need to turn to someone who can help you do just that.

When you need a helping hand

Sometimes, straightening out debt problems is simply beyond what most people can handle. The complexity of the process alone has probably contributed to as many debt crises as any other single factor. If you’re feeling overwhelmed by your debts, avoiding them is the absolute worst thing you can do. At that point (or hopefully, well before that point), you probably need to get some advice and assistance from someone who is a certified expert in resolving debt problems. A certified credit counselor can help you unravel all the complexities of your financial situation and advise you on ways to climb out of a debt hole.

You will want to ensure that the credit counselor or service is reputable, and not just in business to make as much as possible from their customers. Start by seeing whether the service is a member in good standing of the National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA), both of which impose strict ethical guidelines upon their members. Certified counselors can offer much more than assistance straightening out credit card debts, and most are even prepared to help you with student loan debts, which are rapidly becoming one of the highest categories of individual debt. The important thing is to seek out assistance as early as possible.

Recognizing that you have a debt problem and taking the right steps to resolving that problem can be both a logistical and emotional challenge. But the sooner you take steps – the right steps – to get back on track, the easier it will be, and the better the results will be. So don’t punish yourself. Just realize that you’re far from the only person who is in this situation, that the conditions that got you here are not all of your making, and that there is light at the end of the debt tunnel in which you find yourself.

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Credit Rising Quicker Than It Has Done For the Last Ten Years

Are you relying more on credit cards now than ever before? According to the latest report, more people are relying on credit cards for everyday grocery shopping, bills and even rent payments. This is alarming news as it means that although confidence in spending is high, perhaps financial literacy regarding credit is low.

Tashema Jackson, a money expert at the comparison website uSwitch.com, speaks here about the trend to credit spending: “While rock-bottom interest rates have helped consumers get great introductory offers and low mortgage rates, it also means the temptation to borrow beyond our means has seldom been higher.” Howard Archer continued, “Nevertheless, it is important that consumers do not become increasingly tempted to take on excessive debt and also that bank lending standards do not slip…In considering borrowing, consumers need to allow for the fact that interest rates will eventually rise – even if the increases are likely to be gradual and limited compared to past norms.”

Credit Rising Wonga South Africa, the same day cash loan provider (African cousin to the UK version), recently published this post about financial literacy and the need to stay informed about credit, debt and spending. Of course, loans and credit cards can be very useful ways to pay for items or bridge a gap before payday. The statistics show that many people are relying on credit to get through the month, though, which could be worrying. Wonga states that there is ‘good debt’ and ‘bad debt’ – bad debt might be classed as using the money to buy items that you don’t really need. So, for instance, a holiday or a new sofa. ‘Good debt’ as Wonga puts it, is when you are using the credit wisely – putting the money towards an education course, a car, or home improvements, for instance. It is also wise to ask yourself three questions before using credit to buy anything:
  1. Do I really need it?
  2. Can I afford it?
  3. What will it cost me overall? (e.g. including interest rates.)
By forcing yourself to ask these questions, you might be more careful about spending credit so readily. The message here is that credit is not a bad thing, but also not something that you should take for granted. You can easily rack up debt that becomes unmanageable and this can lead to depression, stress and insomnia. It can also cause fractures in relationships and put a massive weight on your shoulders. Think wisely before spending the credit and make sure you are able to meet all repayments. Choose a reputable lender, of course, and if you are getting into difficulty with repayments or spending, speak to a debt charity or the lender themselves to help you out.]]>

It Is Not Hard to Pay Off Your Student Loan Debt

Student Loan Debt

The day you graduate from your school is surely one of the rosy days in your life. It calls for celebration as getting a degree will open up a sea of opportunities to help you find your foothold in the job market. However, once the celebration is over, realization dawns upon you that there is a lumpy sum of student loan to pay off. As the payment could be dragged for a long time, most of the students feel restless when the ‘pay off’ period takes off. I had a comparatively small amount as student loan debt – only $15,000 – after my graduation. However, it demanded a lot of hard work, discipline and dedication from my end to clear the debts. If you make a wise decision and stick with your way of loan repayment planning, it won’t be hard for you to manage your loan even if it is more than what I had. Here are four simple steps for you to follow: You should have a clear hang of your student loan  I think you did not get into the details of student loan when you took it out. Now when the time comes for repayment, you need to revisit ins and outs of your student loan. Most of the students don’t find it important and opt for the minimum payment. I will suggest that you should get the idea about the lender, status of loan and balance of each of your loans if you have borrowed more than one. I do think that grace period – the time gap between you graduate from school and repayment period starts – will be fine to gather all these details. Make a repayment plan Without a plan in place, you will head nowhere. This is the most crucial part of loan repayment process. Every loan has a certain time period of pay off. You need to decide if it is possible to clear the debt within this time frame. I know it is really hard to figure this out when you are yet to land in a job or have just started. However, you need to be as pragmatic as possible. If you find it difficult to clear loan in time, there are options such as debt consolidation to facilitate payment. Get Organized All loans don’t attract same interest. Usually, private loans have more interest if compared with government loans. If you have multiple loans, you need to make a list of priorities about which ones should be cleared first. I will advise you to start with private loans.

More payment will be a good idea

If you can flex your financial muscle, pay more than minimum amount. This way, you will be able to reduce interest on the loan as a time of repayment will be shorter. What is more, you will get rid of financial slavery earlier. Whatever the situation is, getting at top of your loan status is most important. Having the right mindset is what will see you bid adieu to your debt burden. Failing to pay off student loan will give you a hearty slap of severe consequences. That is why, a strong frame of mind is most important to ease off and ultimately, shrug off the burden of your debt. Article contributed by, Tina Roth who is a personal finance blogger at PRO Finance Blog.]]>

Young Generation Does Not Use Credit Cards. How Could They?

Credit cards are now not as popular as they used to be. More than 60 percent of young people under the age of 30 have no credit card, and only 20 percent use only one card.

The influence of Great Recession

The one possible explanation is that this generation was brought up in a difficult financial situation. They were just beginning their first steps in real financial life when their parents had hardships and lived in need. So now they can be just afraid of really big and important steps, and using credit cards is just another restriction they have made to themselves.

credit card

And this is not a surprise, because we have certain data about the economic situation of that period. Parents of these people have no appropriate work, and the level of unemployment among young generation was up to 15 percent. So there is no wonder why today these people do not even think about being in debt and try to reduce any unnecessary spending. They are living in a different way and can even change the society of consumerism.

A big student loan debt

Unfortunately, the Great Recession is not the one historical event that made young people be against any financial obligations. The education that almost all of them got was not a cheap deal, and now they need to pay for it. I mean a student loan that made them dependent for many years. And now when they cannot find work with the appropriate level of salary they are just stuck in the debt. So they just do not want to add another debt to their list. And this is a right decision. However, according to the research some of them sometimes use instalment loans poor credit for some emergencies. This type of loan is short-term, so they do not put themselves into a debt hole.

How young generation leads their financial lives

Making financial life with no usage of credit shows a good knowledge, however, it also has its disadvantages. For example, todays world is built in such way when you cannot take any credit without having a credit history. This means that you need to have financial transactions recorded on your account. And this is not the only option. Also you need to have a good credit score because a bad one equals nearly no score at all.

However, there are some ways that can help us to avoid leading active credit life:

– You should make all necessary payments on time and cover all regular interest rates to avoid additional charges;

– Make a utility bill for the house for your name. It will be good for your credit history if you can make regular payments.

– Use a secured credit card instead of a traditional one. The funds with this card are backed by money the client deposits. So this can also make your credit score positive and also will never hurt your budget.

As a conclusion, I might say that such cautious attitude to credit cards may be considered as a good financial decision in the long run. Also, it helps you avoid any credit card debts. If the young generation has chosen a life without credit cards, it is their right. But also I think it can help to change our system with all these credit scores.

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