Tag Archives: how

How To Get Out of Credit Card Debt 101

June 8, 2019   Loan Tips

Having problems with your debts? Starting up the year with stress because of the charges you’ve incurred last holiday season? Is there a way to get out of debt more easily? This article will discuss some tips on how you can get free from your debt problems effectively:

Transfer your high rate credit cards. If you can’t pay off your credit card balance in full by the end of the month, it’s a good idea to transfer them over to another credit card that has no interest. Also, if you have more than one credit card, check which one of your cards have the lowest rate of interest so you can transfer over your balances.

When transferring credit card balances, check if there are transfer fees or penalties. If you’re opening a new credit card, check how long the zero interest rate will last. Promo periods usually end by six months while other credit cards offer a longer time period of up to a year or even more. It’s important that you complete your repayment before the zero interest introductory offer expires.

Focus on paying off your credit card debts. Don’t be content with just paying the minimum of your credit card charges. Make it a point to pay off your balances in full as much as possible. Concentrate on paying your charges on your highest rate credit cards and work your way down to those with the lowest interest. This way, you can avoid paying for additional interest and penalty fees.

Put your credit cards at halt. It is advised to stop using your credit cards until you’ve finished paying off all your bills. Don’t give yourself a hard time paying off too many bills at one time. Don’t risk getting stuck in credit card debts just because you kept charging more expenses on your cards. Exercise discipline and avoid debt problems.

Check your credit limit. How much of your credit limit have you used in purchasing for the holidays? Remember, experts advise all credit card holders not to go beyond 40% to 50% of their allowable credit line. If you go beyond that, you risk getting stuck in debts and there is a possibility that your creditors will increase your rates because you’ll be considered as a high-risk borrower. To avoid such problems, make sure that you stay within below 40% of your credit.

Check your credit card statement. Do you take the time to study your credit card statement? If your credit card enables you to access your account online, take this opportunity to make sure that all charges on your credit are accurate.

Check if your payments are aptly recorded by your credit card issuer. If you have any disputes, call your credit card issuer immediately and clear up your concerns. If by any chance, you won’t be able to submit your payment on time, call your bank right away to explain your situation and ask for an adjustment. Most creditors won’t report your late payment if you can re-submit on the next 30 days.

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The 411 on Secured Loans: What you need to know

May 16, 2019   Home Mortgage

Any time someone borrows money from a bank, the funds lent are referred to as a loan. Any time when the bank asks for collateral (a security that the bank takes charge of if you are unable to pay, like your home or property), that’s called a secure loan. A first secured loan on property is considered to be first charge, while a second loan (perhaps a home equity or second mortgage) is second charge. Secured loans are easier to obtain than an unsecured loan, as the bank has a means of repayment in the event that you are unable to.

There are many types of secured loan programs available, offering different benefits and such to the borrower. But no matter which one you choose, there are some things you need to know before you agree to or sign anything.

First, secured loans come in a variety of amounts (typically averaging between £3,000 to £50,000, but have been seen as high as £250,000 with some lenders). They are repaid on a monthly basis for a predetermined amount of time (usually between 3 and 25 years). Some loan programs may have a prepayment penalty (a fee attached to the loan if it is paid off earlier than expected), so be sure to ask your lender if this applies to your loan.

Second, the APR (Annual Percentage Rate) is the interest you’ll be charged for borrowing the money. Your APR will depend on several factors, including your credit history and equity available in the property. It’s a wise idea to compare interest rates from different lenders to be sure that you’re getting the best one possible.

Next, you need to know how to apply for a secured loan. The Internet revolution has changed the lending industry for the better, as it’s no longer necessary for you to leave your home to apply for a secure loan. Although you can visit your local branch of your favorite lending institution, it’s much easier to login online and enter your information, or to pick up the telephone.

Finally, you need to know how governing laws are protecting you. All secured homeowner loans are subject to the Consumer Credit Act of 1974. This act contains strict guidelines as to how money is lent out, covering loans up to £25,000. (Loans for greater amounts are unregulated). Before such a secured loan is granted, you will have to sign a legally binding credit agreement for the terms of your particular program. A consideration period of 7 days is to be granted to you by the lender. Lenders are to offer you insurance options to cover your monthly loan payments in the event that you are unable to pay under specific circumstances, such as illness, unemployment, an accident or death. All coverage options will vary between lenders, and so will the cost, so be sure to check with your lender for any details, specifically as to what is covered and what is not.

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