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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.

How to Save Money for an Emergency Fund

February 28, 2020 by marvin

An emergency fund is exactly what it sounds like — a stash of money set aside to cover financial emergencies. Unexpected events like a hospital stay, an unexpected home or auto expense, or a job loss can be stressful if you don’t have cash set aside as a safety net for these occasions.

How Much to Save for an Emergency Fund

How much cash you decide to save for your emergency fund is up to you, but a general rule of thumb is to have at least 3 months’ worth of expenses in a savings account for life’s emergences. According to recent statistics, nearly 80 percent of American workers are living paycheck to paycheck, making it difficult to save up that much cash.

Here are 5 ways to start building your emergency fund even if you live paycheck to paycheck.

5 Ways to Build an Emergency Fund

Set a budget and stick to it. List all of your monthly expenses and use a software program like Excel to track your spending from month to month. Consider using an envelope system to ensure you meet your monthly budget. Have any extra cash at the end of the month after all of your expenses have been paid? Great! Add that to your emergency fund.
Reduce your monthly bills. Call your service providers and ask for a discount. Reduce your cell phone plan or consider switching to a pre-paid plan, which is often much less expensive. Cut cable. Save on utility costs by switching to LED bulbs, conserving water, drying your clothes on a line, and by seeing if your local utility offers a consumer audit to help you obtain more savings. Add any monthly bill savings directly to your emergency fund rather than spending them somewhere else.
Sell things you no longer need. Selling items is a quick and somewhat easy way to save some cash for your emergency fund. Consider listing items you no longer need on Facebook Marketplace or Craigslist to see if any local buyers are interested. Used books (especially textbooks) sell well online or at local book resale shops. Have a yard sale. Participate in a local consignment sale where you tag your items and drop them off at a larger sale. A little effort might go a long way toward your savings goal.
Get a part-time job. Consider starting a side business where you provide a service like babysitting, dog walking, house sitting, or yard work for neighbors. This type of work typically is flexible enough to work around your full-time job. Be creative and see what kind of odd jobs you can take on to earn a little extra cash.
Set up an auto draft from your paycheck directly to your emergency fund. An auto draft can be set up directly with your financial institution – usually online. You can choose how often to set up an auto draft (typically when you receive your paycheck) from your checking account directly to your emergency savings fund. No matter how much you decide to contribute this way, your savings will continue to grow over time with almost no effort from you.

Once you’ve reached your emergency savings goal, set a new goal and keep going! No matter what life throws at you, you’ll be prepared.

5 Reasons Why You Should Get a Payday Loan

February 21, 2020 by marvin

There are many instances in life where you might find yourself short on cash and in need of a small loan. A payday loan could be the answer to your money needs.

What is a Payday Loan?

A payday loan is a short-term loan with a high interest rate. A payday loan lender advances a portion of your next paycheck that you repay when you get your next paycheck. Unlike other types of personal loans, payday loans are for small cash amounts and are paid back in one lump sum. A payday loan may also be called a cash advance, short-term loan, payday advance loan, etc.

5 Reasons Why You Should Get a Payday Loan

You have bad credit. Payday loans typically do not check your credit score in order to give you a loan, so bad credit (or no credit) will not stop you from getting a payday loan.
Payday loans are fast. Many lenders give immediate lending decisions and offer cash within 24 hours.
Payday loans are convenient. Many payday loan lenders are open 24 hours a day, 7 days a week, and many even have online applications.
Payday loans are easy. Payday loans have fewer requirements than other traditional loans. All you typically need to apply for a payday loan is a social security number or photo ID, proof of income, and an active bank account. You must also be at least 18 years old.
Payday loans are unsecured. If you are unable to repay your loan, your personal assets cannot be repossessed as payment. However, there are other consequences to not repaying your loans: you could be turned into a collection agency, taken to court, or your future wages could be garnished until your debt is repaid.

For more information on payday loans, click here.

Payday Loans, Installment Loans, and Revolving Credit Explained

February 14, 2020 by marvin

At some point in our lives, we all need access to a loan to help with our needs. Three common loan types are payday loans, installment loans, and revolving credit. Keep reading for more information on these types of loans.

What is a Payday Loan?

A payday loan is a short-term loan with a high interest rate. A payday loan is completely repaid in one lump sum on an agreed-upon date, often on the borrower’s next payday. A payday loan can be a good choice for a borrower who needs a small amount of cash fast.

For more information on payday loans, click here.

What is an Installment Loan?

An installment loan is a loan that is repaid over a set period of time in regular payments, or installments. The loan terms can be as short as a few months or as long as 30 years, which is often the case with mortgage loans. Once the loan is repaid, the account is closed.

Examples of installment loans:
• Student loans
• Mortgage loans
• Car loans
• Personal loans

For more information on installment loans, click here.

What is Revolving Credit?

Unlike installment loans and payday loans, revolving credit is not issued in a predetermined amount. Revolving credit is a line of credit where the borrower pays a commitment fee to a financial institution to borrow money and is then allowed to use funds as needed. The amount borrowed can fluctuate each month and is often used for business operating expenses. As debts are paid off, the credit is automatically renewed.

The most common form of revolving credit is a credit card. Other examples include home equity lines of credit (HELOCs) and retail cards.