Perhaps you can remember the time when you were in a financial fix. Perhaps you can still remember how desperate it was to lay your hands on some cash. So desperate that you had to borrow some cash from your friends or relative. Maybe it is not so bad to borrow from them for the first time, but you might not feel all that pleasant to ask from them again the second time around.
Let's face it, you have to pay for the electricity bills, phone bills, car loan, house loan or house rent, you just name it. In the end, how much of your salary money do you have left at the end of the month? You must be thinking on how to get the extra money to help support you and your family.
Even though your need was urgent, you managed to get through it without entering into any costly financial commitment. You need to hold on to this memory because it is proof to yourself that you can survive these situations, no matter how difficult it may seem at the moment. If you managed to get out of this before, there is no reason why you cannot do this again.
At times like these, when faced with financial shortages, many people are tempted to go for payday loan as their last resort. On the face of it, payday loans seem like a quick and easy way of getting hold of funds. It is so easy that you can now get approved in less than an hour. It is so quick that you could have the money transfered to your bank account faster than you could ever imagine. It is so convenient that it seems like it is the one and only solution to your financial problems.
However, you must remember that when you're going for one of these loans, it is not a decision to be taken lightly. If you are a first timer, then this route is something that you'd really want to think hard about before making the decision.
First and foremost, you need to think carefully about whether you are going to be in a position to repay the loan. This is very important. In actual fact, the majority of people who take out these loans do manage to repay them without too much problem. For them, a payday loan can serve a useful purpose like preventing their phone line or electricity from being cut off. If this is you, then you are using payday loans the right way and somehow payday loans do seem like a lot of help or a life saver.
However, there are others who get themselves into serious difficulties. Those who apply for a payday loan but have no way of repaying the loan on time. For these people, payday loans may be quick and easy, but they are also seriously expensive. Don't be surprised that it is much more expensive than they could have dreamt when taking out the loan in the beginning. This is because payday loans are meant to be short-term loans and because of this, the interest can rack up to a horrific rate if they are kept for a longer period.
This is the reason why you need to think carefully before applying for the loan. Desperate times call for desperate measures as they say. That is true in every way in this case. When you are feeling desperate, you are tempted to think only as far as getting the money to get out of the hole you are in, and not to look beyond that.
Yet the consequences of defaulting on the loan will be very serious, not only for yourself but also for your family. Ultimately it could end up with your home and belongings being repossessed. That's not what you want is it? What's worse, in this situation your family will suffer as much as you too, if not more. Yet it is not actually their problem in the first place! Do you think that it is fair to get them involved in the mess that was created by you?
This is why you need to think first and act second. Remember that once you have signed that piece of paper, there is no going back. Read the small prints and find out all the information you can before going for a payday loan. This way you could avoid a seriously costly mistake. There is no reason for you to borrow money just to get yourself deeper into debt. It is like digging your own grave.
Article Source: http://www.article-outlet.com/
Thursday, March 29, 2007
The Secrets of Motorcycle Loans
Owning a motorcycle is just one of the many dreams that the young have in their mind. They are willing to do just about anything to own the new swanky sports bike or the macho cruiser that gleams in the showroom. Motorcycle loans seem to be the easiest ticket to a motorcycle. But it can actually land you in a financial mess if you do not choose the correct loan program and fall prey to one of the high interest rate programs available nowadays. So what exactly is the right way to look for motorcycle loans?
Choose the Loan first
Before you select one of the costliest motorcycles for yourself, see what amount of motorcycle loan you qualify for. If the lender is only willing to lend you $9000 and you have chosen a motorcycle that costs $15000, then you are digging a big grave for yourself. So, the bottom line is to choose the loan before you choose the motorcycle for yourself.
Searching for the loan
You need to search around a bit before you get a loan with interest rate that you like. Credit institutions, banks etc are good places to start your hunt. If you directly go for a loan from within a motorcycle showroom, then you will get a loan that charges you a much higher interest rate than conventional motorcycle loan programs.
The Term of the loan
Lenders will always invite you to sign up for a loan program with a long term. Some loan programs go as long as 72 months. This seems like the most affordable and attractive proposition out there. It has low monthly payments, a fixed rate of interest etc. But there is a negative side to this. In such a long time period, you end up paying more than what your motorcycle is worth. You definitely do not want your debt to exceed the value of the motorcycle. Do you? Most borrowers find themselves in such a situation after sometime.
The Rule of 78 and Simple Interest
These are two methods by which the lender determines the rate of interest that he would pay. You need to look at this before you sign up for the loan program. Simple interest is always the better option from the borrower's point of view and vice a versa. In simple interest, the interest is calculated on the basis of the balance of the loan. You need to take care that the term is reasonably long but not too long. In the rule of 78 you only pay the interest for the first couple of years. So you have no equity on your vehicle. So you should always look for a lender who will give you simple interest on your loan. Some lenders also offer a mixture of the two. These loan programs have the rule of 78 in the first few months of the loan and then move on to simple interest.
Fixed and Variable Rate of Interest
The rate of interest can be tricky as well. It may be a fixed rate of interest or a variable one. The fixed one is the safer option. Please ask the lender beforehand itself whether there are any circumstances which may cause the rate of interest to jump. If there are any such circumstances, it is better if you know it beforehand itself. The more questions you ask the lender, the better you will feel about the whole program. Some lenders increase the rate of interest if the payment is delayed for a couple of months.
So play it safe and select the right loan. Hope you have a great time on your motorcycle.
About the Author
Motorcycle Loans How can you choose a motorcycle loan that is best suited for your needs? This article says it all. It has some great tips to help you select the best motorcycle loans for yourself.
Choose the Loan first
Before you select one of the costliest motorcycles for yourself, see what amount of motorcycle loan you qualify for. If the lender is only willing to lend you $9000 and you have chosen a motorcycle that costs $15000, then you are digging a big grave for yourself. So, the bottom line is to choose the loan before you choose the motorcycle for yourself.
Searching for the loan
You need to search around a bit before you get a loan with interest rate that you like. Credit institutions, banks etc are good places to start your hunt. If you directly go for a loan from within a motorcycle showroom, then you will get a loan that charges you a much higher interest rate than conventional motorcycle loan programs.
The Term of the loan
Lenders will always invite you to sign up for a loan program with a long term. Some loan programs go as long as 72 months. This seems like the most affordable and attractive proposition out there. It has low monthly payments, a fixed rate of interest etc. But there is a negative side to this. In such a long time period, you end up paying more than what your motorcycle is worth. You definitely do not want your debt to exceed the value of the motorcycle. Do you? Most borrowers find themselves in such a situation after sometime.
The Rule of 78 and Simple Interest
These are two methods by which the lender determines the rate of interest that he would pay. You need to look at this before you sign up for the loan program. Simple interest is always the better option from the borrower's point of view and vice a versa. In simple interest, the interest is calculated on the basis of the balance of the loan. You need to take care that the term is reasonably long but not too long. In the rule of 78 you only pay the interest for the first couple of years. So you have no equity on your vehicle. So you should always look for a lender who will give you simple interest on your loan. Some lenders also offer a mixture of the two. These loan programs have the rule of 78 in the first few months of the loan and then move on to simple interest.
Fixed and Variable Rate of Interest
The rate of interest can be tricky as well. It may be a fixed rate of interest or a variable one. The fixed one is the safer option. Please ask the lender beforehand itself whether there are any circumstances which may cause the rate of interest to jump. If there are any such circumstances, it is better if you know it beforehand itself. The more questions you ask the lender, the better you will feel about the whole program. Some lenders increase the rate of interest if the payment is delayed for a couple of months.
So play it safe and select the right loan. Hope you have a great time on your motorcycle.
About the Author
Motorcycle Loans How can you choose a motorcycle loan that is best suited for your needs? This article says it all. It has some great tips to help you select the best motorcycle loans for yourself.
Everything You Need To Know About A Remortgage
When looking to remortgage your aim is to switch to a deal that is more beneficial to you and saves you money/increases flexibility etc, whether this be sticking with your present lender or changing to another.
What Are The Benefits Of Remortgaging?
Remortgaging is a chance to switch from an inadequate mortgage and take full advantage of current products available such as fixed rate, tracker or discount mortgages which can offer you more competitive rates. Choosing the right deal for you is just as important when remortgaging as it was the very first time. Consideration should be given on your prediction of future interest rates, your own risk assessment, your income and the balance of the loan outstanding. You will also need to weigh up your monetary needs and present circumstance.
Adverse Credit Remortgages also enable you to cut loose from a dissatisfactory lender as there is nothing to say you should stay with the same one.
Doing either of these things when remortgaging may considerably reduce your monthly out goings. This is just one benefit of deciding to remortgage.
Say for example you have a loan of 100,000 and are paying a rate of 7.5% interest; you then switch to another lender which has a rate of just 7% interest. This would mean you would be saving 31 each month, thats nearly 400 per annum.
Sometimes the money tided up in the house could be put to better use else where. For an amount larger than what is needed to repay your original mortgage, remortgaging can release some of this equity to put towards investing in a new business venture or maybe even another property.
How Long Will The Process Take?
The process of remortgaging tends to be faster than that of a normal mortgage (but slower than adverse credit loans) as in this case youre not buying a property. The whole process without considering individual circumstances should take on average six weeks.
The Cost Of A Remortgage
As with your original mortgage, a survey to confirm the value of your property will need to be done as the first one will no longer be valid. Add onto this solicitors fees and administrative costs, however these will be lower than mortgaging for the first time and depending on your lender, they may be able to recommend certain people in association with them that could lower your costs.
There maybe early repayment charges on your existing mortgage. This is when there is a penalty if you redeem the mortgage within a fixed period of time after commencing. For example this could be additional pay of three to six months or a percentage of the loan amount.
When looking at the cost of a remortgage you also have to look at the possible longer term benefits of the process and the money you could save.
Quick Action Plan
If still indecisive on whether remortgaging could work for you, run through the following points:
First of all communicate with your existing lender and ask for a redemption statement. This indicates what, if any penalties you will be charged in the event of remortgaging, it also states the amount still left to pay on your current mortgage.
When looking at a remortgage deal be sure to look at all the small print and ask for the lender to show you clearly what your potential repayments would be. It is always useful to ask for something in writing to use as a reference.
Add up all costs payable with any new lender i.e. the arrangement and administrative fees. Legal fees should also be added on, these will vary depending on where you go and the value of your property.
Armed with these facts and figures you should then weigh up whether remortgaging will benefit you, whether the long term savings will outweigh the immediate costs of remortgaging.
About the Author
James Copper enjoys writing on all aspects of finance. He works for Any Loans who specialise in the Adverse Credit Remortgage and Adverse Credit Mortgages.
What Are The Benefits Of Remortgaging?
Remortgaging is a chance to switch from an inadequate mortgage and take full advantage of current products available such as fixed rate, tracker or discount mortgages which can offer you more competitive rates. Choosing the right deal for you is just as important when remortgaging as it was the very first time. Consideration should be given on your prediction of future interest rates, your own risk assessment, your income and the balance of the loan outstanding. You will also need to weigh up your monetary needs and present circumstance.
Adverse Credit Remortgages also enable you to cut loose from a dissatisfactory lender as there is nothing to say you should stay with the same one.
Doing either of these things when remortgaging may considerably reduce your monthly out goings. This is just one benefit of deciding to remortgage.
Say for example you have a loan of 100,000 and are paying a rate of 7.5% interest; you then switch to another lender which has a rate of just 7% interest. This would mean you would be saving 31 each month, thats nearly 400 per annum.
Sometimes the money tided up in the house could be put to better use else where. For an amount larger than what is needed to repay your original mortgage, remortgaging can release some of this equity to put towards investing in a new business venture or maybe even another property.
How Long Will The Process Take?
The process of remortgaging tends to be faster than that of a normal mortgage (but slower than adverse credit loans) as in this case youre not buying a property. The whole process without considering individual circumstances should take on average six weeks.
The Cost Of A Remortgage
As with your original mortgage, a survey to confirm the value of your property will need to be done as the first one will no longer be valid. Add onto this solicitors fees and administrative costs, however these will be lower than mortgaging for the first time and depending on your lender, they may be able to recommend certain people in association with them that could lower your costs.
There maybe early repayment charges on your existing mortgage. This is when there is a penalty if you redeem the mortgage within a fixed period of time after commencing. For example this could be additional pay of three to six months or a percentage of the loan amount.
When looking at the cost of a remortgage you also have to look at the possible longer term benefits of the process and the money you could save.
Quick Action Plan
If still indecisive on whether remortgaging could work for you, run through the following points:
First of all communicate with your existing lender and ask for a redemption statement. This indicates what, if any penalties you will be charged in the event of remortgaging, it also states the amount still left to pay on your current mortgage.
When looking at a remortgage deal be sure to look at all the small print and ask for the lender to show you clearly what your potential repayments would be. It is always useful to ask for something in writing to use as a reference.
Add up all costs payable with any new lender i.e. the arrangement and administrative fees. Legal fees should also be added on, these will vary depending on where you go and the value of your property.
Armed with these facts and figures you should then weigh up whether remortgaging will benefit you, whether the long term savings will outweigh the immediate costs of remortgaging.
About the Author
James Copper enjoys writing on all aspects of finance. He works for Any Loans who specialise in the Adverse Credit Remortgage and Adverse Credit Mortgages.
Guide To Secured Loans
A Secured Loan is one that requires you to use your property as security against the loan. This means in order to take out a Secured Loan you will need to be a house owner, and this includes if you are still paying off a mortgage. It does however mean that you if fail to keep up the repayments on your Secured Loan, you could risk losing your home.
The amount you will be able to borrow with a Secured Loan depends on the borrower you choose to use and your individual circumstances. The amount you can borrow, the term available and the interest (APR) you will have to pay back on the Secured Loan depend on:
- the value of your property
- your ability to repay the loan
- your personal circumstances
Before taking out a Secured Loan it is important that you understand how it works, how much you will have to repay, and that you are able to manage the repayments. Remember, that if you fail to keep up with repayments on a Secured Loan then you risk losing your property.
Who are Secured Loans for?
A Secured Loan allow you to borrow substaintially more money than a personal loan, and also repay the money over a longer period, sometimes up to 25 years. A Secured Loan can usually be used for any purpose and are often available to people who are unable to take out other types of loan, as long as they own their own property.
Examples of this are people who are self-employed or struggle to prove their income, those who have recently changed jobs, and people who have had credit problems in the past. Those who wish to borrow a larger amount of money than available with a personal loan, or want a longer time period to repay the loan should consider a Secured Loan.
Finding a Secured Loan
There are many lenders who offer Secured Loans but whether or not they will offer you one will depend on your personal circumstances. You should approach a number of Secured Loan companies and obtain a number of quotes. Be sure of how much you want to borrow and do not get talked into borrowing more money that you require. Be honest with the company about your personal circumstances, especially your repayment details, as this may lead you to getting into problems repaying your loan. Look at the time allowed to repay the loan and try to weigh this against the APR that is offered on the repayment of the loan.
For example, a loan with a lower APR but repaid over a longer period of time may offer lower monthly repayments but could lead to you paying back more in the long term. At the same this may also allow you to borrow more and pay it off over a longer period with lower monthly repayments.
You may also find that you are offered a Secured Loan with a broker rather than a lender themself. A broker will offer you a Secured Loan, offer you a time frame to repay it over, and set your APR on behalf of the lender. Although you may wish to skip the middleman and deal with the lender directly, you may find that some lenders will not deal directly with borrowers, and a broker may have access to a greater number of Secured Loans from various lenders, offering you a better deal.
About the Author
The Loans Website The Loans Website offers information and resources about the various types of loan that are available. It helps you research different loans to find the best one for you and your circumstances. For more information please visit http://www.loanswebsite.org.uk.
The amount you will be able to borrow with a Secured Loan depends on the borrower you choose to use and your individual circumstances. The amount you can borrow, the term available and the interest (APR) you will have to pay back on the Secured Loan depend on:
- the value of your property
- your ability to repay the loan
- your personal circumstances
Before taking out a Secured Loan it is important that you understand how it works, how much you will have to repay, and that you are able to manage the repayments. Remember, that if you fail to keep up with repayments on a Secured Loan then you risk losing your property.
Who are Secured Loans for?
A Secured Loan allow you to borrow substaintially more money than a personal loan, and also repay the money over a longer period, sometimes up to 25 years. A Secured Loan can usually be used for any purpose and are often available to people who are unable to take out other types of loan, as long as they own their own property.
Examples of this are people who are self-employed or struggle to prove their income, those who have recently changed jobs, and people who have had credit problems in the past. Those who wish to borrow a larger amount of money than available with a personal loan, or want a longer time period to repay the loan should consider a Secured Loan.
Finding a Secured Loan
There are many lenders who offer Secured Loans but whether or not they will offer you one will depend on your personal circumstances. You should approach a number of Secured Loan companies and obtain a number of quotes. Be sure of how much you want to borrow and do not get talked into borrowing more money that you require. Be honest with the company about your personal circumstances, especially your repayment details, as this may lead you to getting into problems repaying your loan. Look at the time allowed to repay the loan and try to weigh this against the APR that is offered on the repayment of the loan.
For example, a loan with a lower APR but repaid over a longer period of time may offer lower monthly repayments but could lead to you paying back more in the long term. At the same this may also allow you to borrow more and pay it off over a longer period with lower monthly repayments.
You may also find that you are offered a Secured Loan with a broker rather than a lender themself. A broker will offer you a Secured Loan, offer you a time frame to repay it over, and set your APR on behalf of the lender. Although you may wish to skip the middleman and deal with the lender directly, you may find that some lenders will not deal directly with borrowers, and a broker may have access to a greater number of Secured Loans from various lenders, offering you a better deal.
About the Author
The Loans Website The Loans Website offers information and resources about the various types of loan that are available. It helps you research different loans to find the best one for you and your circumstances. For more information please visit http://www.loanswebsite.org.uk.
Tips For Home Loans
Everyone wishes to own a home at some or the other time in their lives. But not everyone has a huge resource in the bank that they can tap and purchase the home that they dream of. Some people have to look at other options that need to be used to buy a home. Home loans are one of those options which have gained a lot of popularity in the last few decades. As realty continues to be a lucrative investment option as well, there are many who opt for home loans for this one reason. There are many home loan programs out there. So a bit of research on your part might be required to select the right home loan for you.
The Down Payment
The down payment is the key to reducing your monthly payments. More the amount you pay as down payment, lesser you will have to pay off every month. So it is recommended that you keep at least some percentage of the principal loan amount with you before you start to hunt for a home loan. Along with the home loan there will be other expenses as well like mortgage insurance, registration fee, finance charges etc.
The Type of Loan
There are so many loan programs out there that you might well end up getting confused over which is the right one for you. By all means, you can seek the help of a professional consultant who will help you understand the pros and cons of each loan program. There are fixed rate programs which might seem like a great option when interest rates in the market are rising. However, they might seem like a drag as they cannot be altered later on without paying a huge penalty and you have to pay the same interest for a long time to come.
Floating or adjustable rate mortgages are an option that is great for people who are looking at short term mortgage loans. The rate keeps fluctuating along with the market interest rates. So it might jump or plunge depending on how the market is performing.
The Total Cost
One mistake that many borrowers make is that they just look at the rate of interest in the loan program. But what they miss out on is the fact that there are other charges as well like the monthly or annual administration fees. Remember, it's the total amount that you need to pay off every month that matters. Not just the rate of interest.
Statement Errors
Even a minor error in the loan statement can benefit the lender and harm the borrower. So you need to check your statement quite regularly for any errors. The error might be as simple as an incorrect entry but that can rob you of a few thousand dollars.
Get Multiple Quotes
You need to compare quotes from several different lenders before you sign up for a loan program. This is very important for you to find the loan program with the lowest monthly payments as well as the most flexible options. A mortgage broker might help you find the best lender suited for you. It also gives you a lot of options to choose from.
Consider Refinancing
If your financial condition has improved since you took a loan, then you can actually qualify for a better interest rate now. So you might want to consider refinancing your loan. This will not only help you to lower your monthly payments, but also help you to save a lot of dollars in the long run.
About the Author
Home Loans Some tips for buyers who are looking for a home loan. The article describes the various terminology related to home loans and also how a borrower can reduce the hassles in the entire loan process.
The Down Payment
The down payment is the key to reducing your monthly payments. More the amount you pay as down payment, lesser you will have to pay off every month. So it is recommended that you keep at least some percentage of the principal loan amount with you before you start to hunt for a home loan. Along with the home loan there will be other expenses as well like mortgage insurance, registration fee, finance charges etc.
The Type of Loan
There are so many loan programs out there that you might well end up getting confused over which is the right one for you. By all means, you can seek the help of a professional consultant who will help you understand the pros and cons of each loan program. There are fixed rate programs which might seem like a great option when interest rates in the market are rising. However, they might seem like a drag as they cannot be altered later on without paying a huge penalty and you have to pay the same interest for a long time to come.
Floating or adjustable rate mortgages are an option that is great for people who are looking at short term mortgage loans. The rate keeps fluctuating along with the market interest rates. So it might jump or plunge depending on how the market is performing.
The Total Cost
One mistake that many borrowers make is that they just look at the rate of interest in the loan program. But what they miss out on is the fact that there are other charges as well like the monthly or annual administration fees. Remember, it's the total amount that you need to pay off every month that matters. Not just the rate of interest.
Statement Errors
Even a minor error in the loan statement can benefit the lender and harm the borrower. So you need to check your statement quite regularly for any errors. The error might be as simple as an incorrect entry but that can rob you of a few thousand dollars.
Get Multiple Quotes
You need to compare quotes from several different lenders before you sign up for a loan program. This is very important for you to find the loan program with the lowest monthly payments as well as the most flexible options. A mortgage broker might help you find the best lender suited for you. It also gives you a lot of options to choose from.
Consider Refinancing
If your financial condition has improved since you took a loan, then you can actually qualify for a better interest rate now. So you might want to consider refinancing your loan. This will not only help you to lower your monthly payments, but also help you to save a lot of dollars in the long run.
About the Author
Home Loans Some tips for buyers who are looking for a home loan. The article describes the various terminology related to home loans and also how a borrower can reduce the hassles in the entire loan process.
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