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Quick Personal Loan Tips and Tricks
Suffering from cash shortage is a very bad situation that people try to avoid at any cost. People tend to get a quick personal loan in order to get out from this bad situation. Not all the quick loans can help people on such situations but, you need to make sure that you are getting the best loan for your case. Some loans can charge you huge APR so; they can only worsen your financial situation through raking a lot of fees and charges on your initial amount of money.
In some cases, quick personal loans are of great help but they should be done carefully in order to get their benefits and stir away from its disadvantages. The first thing you need to do is to keep the loan to the minimum and always keep it as a final resort. If the case is not highly urgent then you can search for other solutions for your cash problem. You can get an equity loan on your property and in that way you will get better rates on that loan and you will be able to evade these high fees of the quick loans.
You can go for the quick cash loan if you are sure that you will get the money back to the lender on the designated time because that will save you a lot of money. In most cases, people do not pay their quick loans on time but, they tend to roll it over for couple of months. This would not cause a problem and it will not affect anything except the fees that keep accumulating. One of the recent studies stated that a quick cash loan will incur over 450 % when the money is left unpaid for one year.
When you need a loan then you need to search over the internet for adequate time in order to find someone that offers you good rates for your loan. The rates and the conditions vary from place to place and from state to state. Make sure that you read all the terms and condition so; you do not get surprised by something weird in the middle of your contract.
You can get lend of some money through your credit union or your bank in a reasonable period of time if your credit score is good enough. If you have good credit score then you will be able to get that loan in no time while in case you have bad credit then you will be forced to deal with these quick loans that incur high interest rates.
If you own your home then you can get easy and low interest secure loans because there is good collateral for them. This is the best loan that you can get if you are not in a great hurry or if you want a greater amount of money.
Before you go for a quick personal loan, make sure that you have browsed all the available solutions for your cash problem before deciding which loan you would go for.
Help for Repaying Quick Loans (Page 1 of 2)
Quick loans are intended to provide short-term funding for emergency situations, such as an unexpected car breakdown. They are not intended to serve as long-term financial solutions. As such, quick loans typically have very short repayment periods, ranging from one week to as long as 30 or 35 days.
However, you may run into a situation where you are unable to make payments as scheduled to payday lenders. Although this situation can be unnerving, you should not panic, and you should definitely not attempt to hide from your creditors. There are options available that will allow you to repay the loan with minimal harm to your credit report, and without being made bankrupt. The key is to act quickly and decisively, and to reach out for help from third parties if you need it.
Dealing With Payday Lenders
If you have quick loans that you know you cannot pay off, your first move should be to cancel any direct debit authorizations, standing orders or recurring payments. This will prevent the payday loan company from attempting to withdraw funds from your account, thereby avoiding an overdraft. Your second move should be to should be to contact the lender directly. Explain your circumstances as transparently as possible and express your desire to work out alternate payment arrangements that are mutually acceptable.
Many lenders will offer you the opportunity to “roll over” the principle of the loan and pay only the interest if you cannot pay in full. Resist the temptation to accept such an offer, especially if you know that you will be unable to make payment in full whenever the next due date occurs. Instead, be prepared to present alternative arrangements that you have worked out that will allow you to repay the loan without “roll overs.”
Working Out Pro-Rata Offers
Pro-rata offers are based on making payments based on your available disposable income. The pro-rata system is the system used by the courts to determine what debtors can reasonably afford to pay. Most reputable creditors, including many lenders of quick loans, will accept repayment plans based on a pro-rata system.
For instance, you may have available disposable income of £200 a month to pay toward your debts, but you owe £2,000 to Payday Lender A and £1,500 to Payday Lender B for a total debt of £3,500. You would first multiply what you owe to Lender A by your available income for a total of £400,000. Divide this figure by £3,500 for a result of £114 to pay per month to Lender A. Then, multiply what you owe to Lender B by your available income for a total of £300,000. Divide this result by your total debt of £3,500 for a total of £86 per month to pay to Lender B.
Contact an Outside Intermediary Agency
If one or more of your lenders refuses to accept your pro-rata offer or alternative repayment plan, get help from an outside intermediary. Several organizations such as StepChange Debt Charity, National Debtline, and Citizens Advice (for England, Wales and Scotland) offer free advice to borrowers and will negotiate alternative payment arrangements with creditors. You can often work out a satisfactory repayment plan through one of these agencies without the need to take on the expense of creating a debt repayment plan with a commercial debt management company.