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Payday Loans
You see them in every strip mall east and west of the Mississippi: Cash Advance, Cash-N-Go, Check Into Cash, Urgent Money Service, and the list continues. What exactly are these businesses that seem to offer you money right when you need them? They are cash advance companies which often make loans commonly called payday loans. In many ways, these companies have become the country’s modern day loan sharks. No, they will not cut off your thumbs or pour cement around your feet and make you swim with the fishes. They will, however, torture you with fees, upon fees, upon fees.
So what is a payday loan? A payday loan is a cash advance loan. The loan in itself is held by a personal check. For example, you could write a personal check for $135 in order to borrow $100. The check casher will agree to not cash the check often for fourteen days. This can be extended if needed, but not without a charge. Many people use it to bridge the gap between pay checks. But the Federal Trade Commission calls it “Costly cash”, and for good reason.
Using the example above of a $100 loan for a check of $135, you will see when the math is done how truly costly a Payday Loan is. When you are in desperate need, the $35 seems miniscule. But, when you consider that this charge will occur every fourteen days if you do not pay, this equates to 650 percent APR. A bad credit card will offer you 28 percent APR. When you choose this option, you are going to pay much more in charges and interest and could find yourself even deeper in debt.
So what are your alternatives? If you seriously cannot make it until next payday, there are other options you may have instead of taking out a payday loan. Sort your bills. Choose which ones can wait until next pay day and make them wait. If you have creditors, you can negotiate a new or temporary payment plan to see you through.
Are RV Loans Your Best Option?
RV loans allow people who are unable to pay the purchase price for a recreational vehicle the ability to actually possess one for a period of time, all the while, adhering to a payment schedule agreed upon with the lender. Upon the final instalment being paid over by the borrower to the lender, ownership of the RV then passes to the borrower meaning that they own it in full. This is a mutually beneficial arrangement, the borrower is able to enjoy the benefits of the use and possession of the RV whilst the lender is able to feel confident in the fact that, in the event of default of the RV loans by the borrower, the RV can then be repossessed by the lender (remember ownership remains with the lender until the final instalment has been paid.) Given the significant price tag attached to RVs, RV loans timeframes tend to be rather prolonged, and so shopping around to secure the best possible interest rate is a crucial step as this can save major amounts in the long run.
RV loans tend to work on a monthly basis, and so whilst the purchaser may want to pay the RV loans off as soon as is reasonable, a degree of caution must be exercised during this, because there is a need to balance the long term repayment with the short term repayment as well. Before taking out any RV loans, the borrower should calculate the net income they have per month, and take an average to ensure further precision and accuracy. Then they should earmark a portion of that money as a buffer reserve, so that in the event of an emergency they will have funds to rely upon as a makeshift safety net. Then, and only then should they consider and assess how much they can afford to pay each month in interest. This may seem like unnecessary precautions but given the rather harsh penalties that can be imposed for the non payment of a single months interest repayment, such measures are essential.
The reason for calculating and factoring in a buffer fund as well is to cover any unforeseen emergencies that may arise, given the timeframe that most RV loans are spread over, the laws of probability and statistics will mean that something like this will happen eventually. Dont get caught out, and make sure you cover yourself by salting away a percentage each month. There are plenty of online resources which will help you to better asses the effects (both short term and long term) of various loan schedules. The more money you can afford as an initial capital sum the better because this will allow you to offset the overall amount you need to borrow and thus be liable for interest upon.
RV loans are just like any other loans; they are contingent on your credit rating, so you may want to invest some time and money into developing your credit rating before taking out a loan. Even getting a reduction in the interest rate by a few percentage points can make a major difference in the long run. 2% of 100,000 is 2000; say the loan is over 10 years. Thats 20,000 saved overall. A little time and patience, along with solid research can go a long way.