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How to Create a Simple Household Budget

April 24, 2020 by marvin

These 3 simple tips for creating a household budget will help you finally take charge of your finances so that you can begin checking off your personal financial goals one by one.

Step1: Earnings

The first thing that you should note is how much you are earning. You always have to subtract all the necessary deductions from your income whenever you are creating a budget worksheet and use the net income to create a household budget.

Step 2: Tracking

You should track all of your spending to identify areas where to see if any adjustments can be made. This is important in identifying where the most money is being spent and the easiest way to cut back without leaving your financial situation worse off. You can track all of your spending in a simple excel document, look for a free resource online, or jotting down expenditures in a notebook. Just be sure to record everything! Check it as often as you wish (but at least monthly) to see where you can make adjustments to your spending habits. You might notice your grocery budget is out of control or that it’s finally time to cut cable. Or, you might see that you’re right on track to obtaining your financial goals.

Step 3: #Goals

Setting up personal financial goals is another factor that you should consider when creating a household budget. Make a list of every short- and long-term financial goal that you want to achieve. Short-term goals typically take less than a year (emergency fund savings, vacation savings, etc.), while long-term financial goals may take several years to be attained (becoming debt-free, paying off large installment loans, etc.). Just be sure to consider household priorities (utilities, rent or mortgage payments, etc.) so that you can set realistic and obtainable goals for yourself. Don’t be afraid to pivot and make adjustments to your goals as you move through life.

An Explanation of Payday Loan Statuses

April 17, 2020 by marvin

COVID-19 has shaken up a lot of people’s finances. If you currently have a payday loan, you may be wondering what exactly its current status means. Here’s a helpful breakdown of different types of statuses you may be seeing for your payday loans:

An Explanation of Payday Loan Statuses

Current – If your payday loan status is “current,” this means that your payments are up to date and you do not have any outstanding payments.
Late – If your payday loan status is “late,” this means that at least one of your loan payments is past due by 15 days or more. This just means that you are slightly behind on your payments. Depending on your loan agreement, you may or may not be charged late fees. You may also be at risk of negatively impacting your credit score. If your payday loan status is “late,” be sure to make payment arrangements as soon as possible.
Default – If your payday loan status is “in default,” this means that you have had outstanding payments for an extended period of time. When a loan enters into a default state, the borrower will likely have a negative impact on their credit score and may not be able to obtain a new payday loan until the current has been paid in full. If you are at risk of defaulting on a payday loan or have recently defaulted on a payday loan, click here.
Charged Off – If your payday loan status is “charged off,” this means the loan as moved into a state when there is a reasonable expectation the loan will not be paid in full. In short, the lender has labeled this as a loss in their records. If a loan is charged off, it will soon move to collections and the borrower will experience further negative impact on their credit score.
Collections – If your payday loan status is “in collections,” this means that the original lender has sold the loan to a third-party collections company to collect the outstanding balance. The collection agency will contact the borrower to try to receive repayment. For more information on what happens when your debt is turned over to a collection agency, click here.
Closed or Paid Off – If your payday loan status is “closed” or “paid off,” this means your loan has been completely repaid and there are no outstanding payments due.

Payday loans are designed to help borrowers get from one payday to the next when life’s emergencies happen. If you find yourself with an outstanding payday loan balance you are unable to repay, contact your lender to see if you can work out a new repayment schedule to avoid defaulting on your loans. Typically, lenders are agreeable to receiving partial payments if you can convince them you will be able to repay your original amount.

5 Strategies to Quickly Reduce Debt

April 3, 2020 by marvin

Finding yourself in debt is extremely easy; easier still is finding yourself in a never-ending cycle of debt. Getting yourself out of debt may seem difficult, uncomfortable, and even unattainable. However, often all it takes is time and perseverance to get yourself out of a cycle of debt. Here are 5 ways to quickly reduce your debt. To completely rid yourself of debt it will likely take a combination of a few of these strategies.

Stop Borrowing Money

Your first goal is to stop your financial situation from getting any worse. When people continue to add new debt as they are trying to repay others, you will not make any tangible progress. Worse still, this can be extremely disheartening and leads many people to stop repaying their debt altogether. Cutting up your credit cards is always a good start, but you can also request that your credit be frozen so you cannot apply for new ones.

The Snowball Method

The snowball method of reducing debt is a strategy that involves repaying your debts starting with the smallest first. Picture a snowball rolling down a hill. It gets larger and faster the further it rolls. As a tiny debt is repaid, you then take the extra cash you were paying and add it to the payment amount of the next debt on your list. This strategy continues until all debts are cleared, gaining momentum with each debt clearance along the way. Click here to read more about the snowball method.

Be Honest with Creditors

High-interest rates make it very difficult to clear debts quickly, as the majority of your budget goes towards paying the monthly interest on your outstanding debt and not towards the balance itself. If you are serious about promptly reducing debt, it is time to talk to your credit card company or your bank manager and see if they can reduce your interest rates. If you have a secure payment history, you should be able to negotiate a better price.

Try Peer-to-Peer (P2P) Lending

Before you swipe your credit card, consider trying one of the newest ways to get financing: peer-to-peer (P2P) lending. There are many websites where you can apply for P2P finance, and they charge much lower rates than credit card companies. If you can provide proof of have collateral to put against the loan, a good credit rating, and a stable source of income, it is possible to borrow up to $25,000 from this type of lender. Then, use this loan to pay off any credit card (or other high-interest) debt you have to reduce the interest you are paying on your existing debt. Click here for more information about peer-to-peer (P2P) lending.

Consider Cashing in a Life Insurance Policy

This should be an avenue of last resort, but cashing in a life insurance policy can provide access to cash quickly as a means to allow you to work your way out of debt. Any withdrawal will be subject to tax and penalties and will affect any benefits the beneficiaries of your will may receive.

Need More Help?

If you still find yourself struggling with debt, it is advisable to seek the help of a credit counseling service. They can help you implement an effective debt management plan. This plan will help you to better understand the root of your problem as well as structure your debt repayment in the best manner. These plans have proven highly effective in not only paying down debt but, more importantly, counselors have taught others how to never find themselves in a similar situation again.

Want to Reduce Your Debt? Peer-to-Peer (P2P) Lending Can Help

March 20, 2020 by marvin

High-interest debt may seem impossible to pay off, especially when the balance never seems to budge. If you’re looking for the most efficient way to free yourself, peer-to-peer (P2P) lending might be just what you need. P2P lending is a specialized lending platform that allows borrowers to connect to individual lenders who fund loans in small increments. By cutting out the banks, you can access the funds quickly.

Want to Reduce Your Debt? P2P Lending Can Help

How Peer-to-Peer (P2P) Lending Works

Once the borrower completes an online application form, the platform determines the risk of the applicant. If the application is approved, you receive the available loan options and interest rates. Next, the applicant evaluates the suggested options and chooses the best lending option for their needs. Sometimes, the lenders can set the limit of how much they want to commit and the interest rate they are willing to lend for.

When you receive the funds, you should repay the principal amount plus the monthly payments. Of course, lower monthly payments mean that you’ll pay more interest over the life of the loan. P2P lending is a viable alternative to credit cards.

What makes peer-to-peer loans unique is the fact that they do not require collateral. They are attractive to borrowers with debts because of the potentially lower interest rate. Unlike loans from the traditional bank, you can see how much you’re eligible for without taking a hit on your credit score.

While the idea of peer-to-peer lending may seem attractive, you should not jump in blindly. You should make sure you can afford the monthly payments. Also, pay attention to the fees associated with the offer you are interested in. Secondly, you should be honest with the lender. If you have had credit or financial problems in the past, make sure you divulge your past history. It’s worth mentioning that personal loans may have different rules from business loans on the peer-to-peer lending platform.

If you’re in debt, P2P lending is a more accessible source of funding compared to conventional loans from financial institutions.

If the concept of peer-to-peer lending doesn’t appeal to you, consider taking out a payday loan when you need a small amount of cash fast. For more information about payday loans, click here.

Are Payday Loans Bad?

March 13, 2020 by marvin

Payday loans are one of the best ways to get some quick cash to help you during a financial tight spot. You can use funds from a payday loan to cover unexpected bills, pay unplanned expenses, or even stop yourself from incurring late payment fees. There are several advantages to using payday loans.

Convenience

Often, you can go through the process of getting a payday loan online. This means that you don’t need to make any appointments, and you don’t need to speak to someone in person to explain your situation. You can have everything sorted out without even leaving your house. Additionally, there are usually very few requirements, as long as you are of age, can provide a copy of your I.D., and proof of your current income, you are good to go.

Quick Process

The time it takes between filling out the application and receiving your money can be only just a few minutes. As soon as you receive confirmation that you have been approved, the money is often transferred to you straight away, and you can start using it for whatever you need immediately.

An Ideal Solution for People with Bad Credit

Getting any type of loan when you have bad credit (or no credit) is more or less impossible, it doesn’t matter what your financial situation is like now, for most lenders, the only thing important to them is whether you have good or bad credit. Fortunately, payday loan lenders don’t judge your application on any previous financial mistakes you may have made, rather they only focus on your current situation.

Payday loans can be massively beneficial to those who use them, and what’s more, as long as you pay your loan off in time you can usually increase the loan amount the next time you need one. The process is easy, and there is no doubt that it is the fastest way to get a loan, just remember to keep up with your payments, and you’ll never have a problem.

For more information about payday loans, click here.

How to Pay Down Debt: Snowball Method

March 6, 2020 by marvin

Overwhelmed with debt? Perhaps it’s time to try the snowball method to pay down what you owe.

What is the Snowball Method?

The snowball method is a debt reduction strategy where you pay off your debts beginning with the smallest and moving up from there. Each time you pay off a smaller debt, you take the amount you were paying on that debt and pay it towards your next largest debt. Each time you pay off a debt you gain momentum to pay off the next.

Just like a snowball gains traction rolling downhill, you’ll gain momentum paying down debt by rolling payments from one debt into the other.

How to Use the Snowball Method

Start off by compiling a list of all of your debts from smallest to largest.
Pay the minimum amount due on all of your debts except for the smallest each month.
Pay as much as possible on your smallest debt each month.
Once that debt paid off, roll the payment you were making on the smallest debt into the minimum payment on your next smallest debt. Continue making monthly, minimum payments on your other debts.
As your next smallest debt is paid, continue rolling your payments into your next debt until all of your debt is repaid while also continuing to make monthly, minimum payments on your larger debts.
Repeat the process until you are free from debt.

The snowball method is an effective strategy to pay off personal debt. However, there are many strategies for paying down debt. Do your research and choose the one that works best for you.