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Unsecured Personal Payday Loans Are Not a Long-Term Solution

Unsecured personal loans are sometimes called fast cash or payday loans. The good news is that anyone with a steady paycheck, even those earning minimum wage, can qualify for these types of cash advances. Pay day lending however, can be a very short and painful way out of a temporary situation.

The bad news with unsecured personal loans were payday loans is that you almost never can seem to catch up. A payday advance is extremely expensive! How expensive, you might ask? Some companies charge as much as 25% or more, every couple of weeks. This comes out to 650% for a year. But that’s not the worst of it…

Think about this:
A payday cash advance of $100 for two weeks, would cost $125. So if you pay the loan back in two weeks. You pay them the hundred dollars plus 25 dollars in interest.

So you would think that in four weeks, it would cost an it would cost you $150, right?
WRONG!
The way payday cash advance loans work is that they loan you $100, in two weeks it would cost you $125. But if you couldn’t pay the hundred and $25 in interest, they would simply give you a new loan to pay off the old one.
So for the next two weeks, you would have $125 loan and owe $31.25 in interest.
So a 100 loan, for one month would actually cost $156.25. Here’s a quick look at it just three months for a hundred all alone could cost.

Weeks w/Loan Amount Owed
$100.00
2 weeks $125.00
4 weeks $156.25
6 weeks $195.31
8 weeks $244.14
10 weeks $305.18
12 weeks $381.47

So after four weeks. The typical payday loan of 100 dollars would cost $156.25. After two months it would cost $244.14. And after just three short months. A cash advance of only $100, would cost you $381.47.
This figures out to 650% interest over one year! That’s not the annual percentage rate or APR, but just flat interest-rate.

The last problem with personal payday type loans is that most want access to your checking or savings account. They say this is to make it easier for you but it also allows them full access to your bank accounts. If there’s an error, you fight them about it all the while they take your money.

If however, you are in need of a fast cash loan and are able to pay it off on time, there are several programs that offer your first loan free of interest. I you need a one time short term unsecured personal loan, maybe one of these no interest one-use options are for you.

Remember though, the payday loan businesses will continue to contact you trying to get you to get back in debt. You must be able to ignore these types of marketing plans that would only end up hurting you long-term financial future. Just if you decide to use a payday loan, just make certain you have a plan to pay it back on time.

10 tips to securing a home loan

We’ve only got about one page to list these 10 tips for securing a home loan, so let’s jump right into it!

1) Get your credit score up

This is the key rule. Do not even think about getting a home loan until you’ve paid off your debts and worked your credit score up.

2) Get your credit score up

Seriously! What you should do is settle all your old debts, and then cut up all of your credit cards, but one or two. Use those for simple things like buying gas or grocery shopping and then pay them off on time.

3) Live within your means

Credit cards gave birth to a generation of people buying more than they could afford, with many of them winding up hundreds of thousands of dollars in debt as a result. Your spending money should be cash only.

4) Make sure the time is right

Sadly, we’re not all ready to own a home. If you don’t have savings and a reliable career, if you’re already in debt, you’ll want to improve your financial standing before going after home ownership.

5) Do your research

Basically, get online and do a lot of reading up on the ins and outs of home loans and the real estate market. If you develop a strong knowledge of the market, you’re more likely to get what you’re after.

6) Know what entices potential lenders

It’s more than just having a nice job and a good credit score. Remember, they do background checks. If you’ve never held a job for more than a year, that’s a turn off for lenders. Other things can help, too. If you have multiple sources of income, let the lender know about them.

7) Never borrow more than you think you can pay off

This is how American homebuyers got into so much trouble last year. They were knowingly borrowing more money than they could repay in the hope that home and land prices would forever appreciate.

8) Be willing to shop around

Don’t grab the first loan anyone will give you. In getting a low interest rate on a loan or mortgage, you’ll want to look around and see who can offer you the best deal. You may get lucky, but don’t count on the first bank you walk into to give you the best overall deal.

9) Don’t buy a pricier house than you need

This is more a tip for actually buying a house than it is for getting a loan, but it can help on that front, too. If you’re a bachelor, what on earth are you going to do with a two story, two and a half bathroom house? Don’t go overboard in selecting your home and the lender probably won’t feel that you’re asking for too much.

10) Don’t be afraid to ask for help

If you need a real estate agent or some expert advice on securing a home loan, then go for it. A qualified home loan professional might save you a vast sum of money.