Saturday, 30 March 2013

The number 1 myth about Short Term Loans

The biggest myth about short term loans is that these loans will increase your debt even further and will take you to a point of no return. While there may have been such instances, this is an unfair generalization.

Lets discuss some statistics before we fragment this myth. About 30% of individuals have acquired a short term loan as a mode of emergency cash at least once. Now, if these loans had actually increased peoples debt or have taken them to a point where they are no longer able to pay the high interest rates, we would have seen thousands of people going bankrupt every year. Yes, we do see people going bankrupt, but these individuals are people who were never able to manage their debt correctly or there were too many unfortunate financial disasters in their lives.

Usually, everyone who takes a short term loan is able to repay it within time and is also able to avoid late payment charges on their credit cards. This in-turn improves their credit rating and makes them eligible for larger loans in future.

What if there were no such things as same day loans or pay day loans? Anyone in a tricky financial situation would end up screwing their credit ratings and it would be hard to pay back the accumulated late fee payments.

This proves a point that its not the short term loans that is a problem, but a lot depends on the individual who takes up such a loan. Also, if short term loans were so bad, governments around the world would have easily banned companies and lenders giving away such loans.

Another important thing to note is that people who receive these loans are mostly happy to receive emergency cash and are able to repay it without any problems.If you are nervous about such loans, be mindful about the above facts and apply confidently.

If you are nervous about such loans, be mindful about the above facts and apply confidently.

Friday, 28 December 2012

Unsecured Personal Loans For Bad Credit: Maximizing The Benefits

Unsecured bad credit loans are not free money

Loans for bad credit are certainly not known for bringing consumers a ton of value. The loans are unsecured but it doesn’t mean it is cheap and you don’t have to pay them back. They typically carry high interest rates and associated fees. The repayment terms can be rough and the consumers who use these loans are generally not great at making timely payments. But let’s face it, getting an unsecured personal loan for an urgent expense can bring a tremendous amount of relief, regardless of the terms they feature.

When you no longer qualify for conventional loans, however, this is a definite sign that it is time to change your attitude about your finances and how you manage them. Unsecured loans are actually phenomenal practice for this process. In fact, the often outrageous terms that these loans usually carry are great training for consumers who want to whip their spending habits back in line. This money should be used for a designated and necessary expense, secured under the best possible terms and repaid as quickly as humanly possible. Check this link if you want to find a reputable short term loans provider.

Watch out for filthy casino carpets and deceptive loan terms

As with all things related to money, however, it is important for consumers to realize that there are a lot of things going on when they receive an unsecured personal loan for any reason. When you think about it, every casino that you will ever enter has a vibrant and obnoxiously patterned carpet. In reality, casino carpets tend to be so busily patterned, because casino owners want to keep the focus of gamblers straight ahead; on the slot machines and tables. This subtle form of persuasion is not unlike the ease with which notoriously bad spenders are handed cash money with little up front hassle. Most lenders who offer loans for bad credit profit the most from their repeat customers and loan extensions and thus, their goal is to keep your focus straight ahead; on the benefits of getting fast cash, rather than the more long term commitment that the borrower will be making. In lending, as in gambling, keeping your eye trained only on the prize is a great way to lose out on a lot of money.

New Fees Abound With New Credit Card Rules

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In the past, consumers could ask for and get a year-end itemization of purchases made on credit cards for free. That probably won’t be true in the future now that the Credit CARD Act is effective. Credit card issuers are busy adding new fees for almost any kind of activity on the credit card accounts you now hold and on new accounts.

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For example, there will be a fee for getting a year-end charge listing and a fee for paper statements. There will be a fee for making an online payment and a fee for foreign currency exchange transactions made on purchases incurred when travelling outside the country. There will be fees to re-instate suspended reward points and fees to use points in some cases. There will also be fees charged for transferring account balances from one card to another. The kinds and types of account fees are expected to vary widely but all are designed to restore lender revenues lost as a result of limits put in place by the Credit CARD Act.

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Consumer advocate groups are not pleased with the new fees. Some fees can be avoided through responsible behaviour such as making a payment on time. But there are fees that cannot be avoided, like annual fees, as long as the account remains opened. Right now there are only about 20 percent of credit card accounts that have an annual fee but that number is sure to significantly rise.