Blog

You Need a Payday Loan

October 9, 2020 by marvin

There are plenty of reasons why vast majorities of people use a payday loan. It is not just about getting something expensive. A payday loan is attractive to people who find themselves in a particular financial situation. Whether you have poor credit, no credit, or find yourself in a money emergency, a payday loan could be a great option for you.

Let’s take a closer insight into the reasons why a payday loan is a good choice:

1. Payday loans are easy to access.

One of the greatest advantages of a payday loan is its easy accessibility. Most cash lenders guarantee access to cash within one day (24 hours). This means that the lending decision is made immediately. Unlike the traditional loans that require too much time to apply, this type of loan can take as little as ten minutes.

2. Payday loans have few requirements.

All traditional lenders require your photo ID, your Social Security number, a credit check, proof of income, proof of address, and other requirements you must meet before you will qualify for a traditional loan type. On the other hand, fast cash payday loans have much fewer requirements if you want to apply.

3. Payday loan lenders do not check your credit.

For traditional loans, you need to have an impressive credit in order to qualify. For a payday loan, you do not need to show your credit history. Typically, all you need is proof of income.

4. Payday loans are unsecured.

You do not have to pledge your property to get this type of loan. More precisely, if you default, the lender cannot confiscate your property. There is no collateral needed in order to qualify for a payday loan.

5. Payday loans help you avoid embarrassing financial situations.

In addition to all the other benefits listed, payday loans can keep you from a potentially embarrassing financial situation. There’s no need to borrow money from friends or family members when a payday loan is so quick and easy to obtain.

Final thoughts

When you need a quick loan, a payday loan could be the best choice for you and your financial needs. Payday loans are usually small loans between you can get immediately, and the repayment is made on your next salary. It’s as easy as that!

How to Use the Debt Avalanche Method to Pay Down Debt

October 2, 2020 by marvin

If you’re like the majority of people today, you likely have some debt. Whether your debt is from student loans, personal loans, credit cards, or other past financial decisions, you’ve likely wondered how to get out from under the mountain of debt you’ve accumulated. One way to work down your debt is the debt avalanche method.

Debt Avalanche Method

The debt avalanche method is a way to pay down your debt. It works by getting rid of your debt with the highest interest rate first.

For example, let’s say you have three loans you would like to pay off. One loan has an interest rate of 20%, another loan with an interest rate of 15%, and your last loan has an interest rate of 10%. In order to utilize the debt avalanche payoff method, you would make extra payments on the loan with the 20% interest rate while making only minimum payments on your other two loans. When your 20% interest rate loan is paid off, you begin making extra payments on your loan with the 15% interest rate while making minimum payments on your 10% interest rate loan. When your loan with the 15% interest rate is paid off, you begin making extra payments on your 10% interest rate loan until it is paid off.

Since you’re tackling your debt with the highest interest rates first, you’re reducing the overall amount of money you’re paying while also reducing the amount of time it would take to pay off all of your debt if you were only making the minimum payments.

Is the Debt Avalanche Method Right for Me?

The debt avalanche method makes logical sense, but it may not be the best method to pay off your debts. It often takes a long time and a lot of persistence in order to start seeing your debts paid off – especially if your largest debts have the highest interest rates.

A debt snowball method of debt repayment works to pay off your smallest debts first and then move on to paying off your larger debts. The snowball method will give you shorter-term victories that might just inspire you to work on paying off your larger debts. To read more about the debt snowball method, click here.

Reduce Your Debt

No matter whether you choose the debt avalanche method or the snowball method to work to reduce your overall debt, reducing your debt is a good strategy to save money and reach your financial goals.

How to Calculate Your Net Worth

September 25, 2020 by marvin

Have you heard the term net worth and wondered exactly what that meant? Or if you have one? The good news is that everyone has a net worth. Keep reading for more information on what net worth is and how to calculate yours.

What does net worth mean?

Simply put, your net worth is the dollar amount of your assets, the things you won that have a monetary value, minus your debts, or liabilities – the accounts/loans you are currently paying off. If your assets are greater than your liabilities, you have a positive net worth. However, if your liabilities are larger than your assets, you have a negative net worth.

Net Worth = Assets – Debts

Your assets might include:

Real estate
Retirement savings
Money in your checking accounts
Money in your savings accounts
Vehicles you own
Investments
Personal property

Your debts, or liabilities, might include:

Mortgages
Personal loans
Student loans
Vehicle loans
Consumer debt, such as credit card debt
Payday loans

Why does my net worth matter?

Knowing your net worth gives you an insight into where you are financially. This snapshot into your finances is important because it is an indication of whether your amount of wealth is increasing or decreasing. As you age, your net worth should increase as you work to pay off your debt and build more equity in your home. If you find that the opposite is true, it may be time to take a hard look at your finances and make some changes.

Are Payday Loans Installment or Revolving?

September 11, 2020 by marvin

You’ve likely heard financial terms like payday loans, installment loans, and revolving credit used but wondered what exactly they meant. And, if you’ve done a search for payday loan information online, you may have come across questions about whether it is an installment loan or a revolving credit.

What is an Installment Loan?

An installment loan is a loan for a specific amount of money that is repaid over time by a set number of scheduled payments. Installment loan payments combine the principal loan amount with an interest rate. The loan term may be only a few months or as long as 30 years. As you make payments, the loan balance lowers.

Examples of Installment Loans:

Mortgage loans
Home equity loans
Student loans
Vehicle loans

For more information on installment loans, click here.

What is Revolving Credit?

Unlike installment loans, revolving credit is not issued in a predetermined amount. Instead, a borrower is given a limit on how much they are allowed to borrow and it is up to them to determine how much of that amount to use. Generally, borrowers with higher credit scores are allowed higher limits. The most common form of revolving credit is credit cards.

With revolving credit, the borrower makes charges, pays them off, and then continues to make charges within their predetermined limit. As debt is paid off, the predetermined spending limit automatically renews. Minimum payment amounts are required each month.

Examples of Revolving Credit:

Credit cards
Home equity lines of credit (HELOCs)
Personal or business lines of credit

For more information about revolving credit, click here.

What is a Payday Loan?

Payday loans are short-term loans with high interest rates. A payday loan might be a good option for a borrower who needs cash fast, especially if you have a poor credit history. Payday loan lenders only consider your income instead of your credit history when making decisions regarding lending. Typically, a payday loan lender advances you a portion of your next paycheck that you pay back in one lump sum – usually around your next payday. If you need cash fast and have a poor credit history, a payday loan is a good option for you.

For more information about payday loans, click here.

Are Payday Loans Installment or Revolving?

A payday loan is neither an installment loan nor a revolving credit. Now that you know the difference between the payday loans, installment loans, and revolving credit you’ll be able to make better decisions regarding your future lending needs.

Can I Ignore A Debt Collector?

September 11, 2020 by marvin

Your financial responsibilities will not disappear if you completely ignore a debt collector who tries to reach you. In fact, this sort of thinking will only make the whole situation even worse. Ignore the debt collector at your own peril, but keep in mind that a debt collector can sue you and maybe more. If you ignore your payments, they will continue on their collections plan. This process involves phone calls, letters, and ultimately reporting the delinquent account on the credit report or lawsuit.

Collection agents are specially trained and hired to collect debts. Writing and calling you are the two primary methods they use to persuade you to pay. Debt collectors will persistently try to collect a debt. If you continue to ignore collection agents’ attempts, courts may get involved. Another common step that debt collectors may take is to report your collection account to the credit bureaus. In the worst case, when a collection account is added to the credit reports, the consequences for you can be serious. These collection accounts sometimes may remain on your credit reports up to more than five years from the execution date.

Unfortunately, it is possible that collection can ruin your credit score. And when your credit score is low and ruined by collection accounts, it can cause unfavorable side effects like:

Higher insurance premiums
Denial of credit card and loan applications
Higher interest rates in case you get future financing

Since the debt must be repaid, try not to ignore calls and messages from the debt collector. Instead of that, you should consider other prolific approaches.

Try to make a settlement with your debt collector
Try to contact and get help from nonprofit counselors in order to get advice on what to do and how to negotiate
Consider hiring an attorney who will give you the necessary legal advice

For information on what debt collectors cannot do, click here.

5 Ways to Get Some Quick Cash

September 4, 2020 by marvin

Need cash fast? Here are 5 ways to get the cash you need.

1. Payday Loan

If you need cash fast, consider getting a payday loan. A payday loan is exactly what it sounds like, a short-term advance on your next payday! What’s better is that this type of loan is quick and easy to obtain no matter your credit history.

2. Sell Something

We all have things we no longer need taking up space in our homes.

Sell these items on Facebook Marketplace or another online marketplace.
If you have books or games, consider listing these on Amazon’s marketplace to earn a quick profit.
Have a public garage sale to turn your trash into someone else’s treasure. Or, if you’re practicing social distancing, have a private, friends & family sale for items you no longer need.
Another quick way to earn some bucks from items you no longer need is to pawn them at a pawn shop.
Lastly, if you’re a creative type, sell homemade goods on your own Etsy store.

3. Side Hustle

Plenty of people earn extra income through a side hustle. Whether you’re leveraging a particular skill or just putting in some good, old-fashioned sweat equity, a side hustle is a great alternative to a traditional income. Here are a few ideas:

mow lawns
clean houses
provide handyman services
leverage professional skills online
babysit
tutor
become a virtual assistant
write an eBook
walk dogs
drive for Uber or Lyft
find seasonal work

4. Budget

If you don’t already have a budget, now is the time to set one for yourself. You’ll need to round up all of your bank and credit card statements and go through them line by line. Take a look at where you spend your money and decide where you can trim your budget. By taking control of your spending, you’ll be sure to come up with some cash quickly.

5. Borrow

If all else fails, see if you can borrow some cash from family or friends. Just make sure you pay them back in full (and with interest if you can swing it!).