How to Repair Credit

How to Repair Credit on Your Own?

How to Repair Credit

How to Repair Credit

Many people do not realize it, but credit repair is something everyone needs to perform no matter what your credit standing may be. It is true that repairing or “fixing” your credit is mostly needed by people below the “fair” credit rating. However, if you’re on the “good” to “exceptional” rating, just how important credit repair can be and how do you repair it yourself?

What You Need to Do to Repair Your Credit

    • Request for a Free Credit ReportThe three credit bureaus – Equifax, Experian, and TransUnion – have to provide you a free copy of your credit report every 12 months. You can submit your request by calling any of these agencies. But the fastest way is to fill out an online form. Requesting by mail would require your social security number, and you wouldn’t want that information exposed.It is advisable to request for the credit report from all three bureaus. They should contain the same information, but for various reasons, no credit report is totally identical. Some lenders would report to only one agency, and although it should reflect on your credit report, there may be some discrepancies.

      Take note that some states are required by law to provide two free copies per year.

      In addition to the annual credit report, there are other reasons why you may qualify for a free copy. If you meet the following requirements, you can request for another copy, instead of waiting for your annual free copy anniversary:

      § Individuals who have been unemployed and intend to apply for employment within 60 days;
      § Individuals receiving public welfare assistance;
      § Individuals who suspect their credit report contains inaccurate information due to fraud;
      § Individuals who have been subject to adverse actions, such as denied of credit or insurance within the past 60 days;
      § Individuals who have placed fraud alert on their credit reports.

    • Get a Free Credit Report OnlineIf you have already utilized your free annual credit reports from all three credit bureaus, and if you do not meet the other criteria, you can take advantage of free credit reports online. These online companies typically make money through advertising and thus offer credit reports for free.But be mindful. If the online form mentions any form of charges before any service is render, look somewhere else. If part of the registration ask for your credit card information for a free trial period, make sure you cancel the account or subscription as soon as you receive your free copy.
    • Order a Paid Credit ReportYou also have the option to order your credit report from the credit bureaus for a fee, which varies between $1 and $12 depending on which state you’re in.
    • Identify Which Needs RepairingOnce you have a copy of your credit report, it’s time to pinpoint which items on your credit report are bringing your score down. The credit report can be quite confusing, so it would be best to take some notes or even color-code your highlights on your report.
    • Dispute Erroneous InformationYou may have encountered advertisements promising to correct or delete inaccurate information on your credit report. However, these are classic examples of false advertisements, since erroneous information can only be disputed.If you find some entries on your credit report of transactions which you did not make. These are considered fraud, and fraudulent items can be disputed on your credit report. On the other hand, if somebody opens a credit account without your knowledge, this becomes identity theft, which can also be taken off your credit report by filing a dispute.

      Traditionally, you would be required to send a dispute via snail mail to the credit bureau where the dispute or error has been spotted. Nowadays, you can simply fill out a form online. You will be asked to provide supporting documents to back your dispute. Via post mail, make sure to keep the original copies and simply provide copies of your documents. Through online forms, you may have to scan the documents or take a picture with acceptable image resolution.

      Typical completion of disputes can take up to 30 days. Some complicated issues, however, may require more time to resolve.

    • Dispute Incorrect Late PaymentsData entry mistakes happen, and this can be the case for your mortgage lender when they report a late payment when it was actually paid on time. The good news is you can dispute these incorrectly entered late payment entries, whether in current or closed accounts.
    • Ask Nicely and PolitelyA way around some disputes on your credit report would be to ask the lender nicely to have a late payment record removed. Of course, this is not always the case, but there are instances where the cause of your late payment is not your irresponsibility. Your bank had a power interruption, or you totally forget because of a grave situation. You can explain to the loan company why the late payment occurred and asked them nicely to clear it off your record. They would most likely check your payment history, and if they determine that you have been paying on time, except for this recent incident, they would most likely grant your request.Creditors can directly instruct the credit agencies to remove entries from your credit report. You just need to ask politely.
    • Increase Your Credit LimitsOne factor affecting your credit score is your credit utilization ratio or credit utilization rate. Credit utilization ratio is computed by simply dividing your total debt by your total available credit, expressed in percentage. For example, if your credit limit for a certain credit card is set to $7,500 and your current debt is at $5,000, your credit utilization ratio for that particular credit account would be quite high at 66.67 percent. However, if you can increase your credit card limit to $10,000 the following month, keeping the same debt would lower your utilization ratio to 50 percent.Take note that anything above 30 percent can cause your credit score to drop. To increase your credit limit, you can contact the credit card company and ask nicely.
    • Open Another Credit Card AccountAn average American would keep two to three active credit cards at a time. One obvious reason would be to have more financial resources, especially for large purchases or for emergency situations. A few people realize that keeping a second or third credit card can positively affect their credit scores.The logic is to lower your credit utilization ratio. For the above example, if you can open a second credit card with the same card limit of $7,500 (assuming you wouldn’t have a debt on the second card), your utilization ratio would go down to 33.33 percent. This means you only need to pay off $1,000 to lower your ratio to 26.66 percent.

      Be careful not to apply for too many credit cards. Each time you apply for credit, a “hard inquiry” will be listed on your credit report, and if you have too many within two years, your credit score may suffer.

    • Ride on a Trusted Friend’s High Credit StandingSuppose your spouse or a trusted friend or family member has a credit card with very low utilization and has a healthy payment history. That person’s credit card can help your credit score to go up. From a credit score point of view, you will automatically benefit from his or her good credit standing and on-time payment history.Be mindful though, that if your friend makes a late payment or eventually gets a higher utilization ratio, your credit score will also be at stake. Therefore, you really need a trusted friend for this. You can volunteer to monitor his or her payment to make sure it’s always on time.
    • First In, Last OutIf you would ever need to close a credit account, keep the oldest ones and close the newest cards instead. Your age of credit history may have a little impact on your credit score, but it has impact nonetheless.Unless it is of for a grave reason, you wouldn’t really want to close a credit account, even (and especially) those you hardly use.
    • Commit to Pay Your Bills on TimeNeedless to say, it is our responsibility to pay our bills on time, not only because it affects our credit score, but simply because that’s the right thing to do.Even one late payment can hurt your score, so be very thorough about your payments.

      If it would happen again that you would not be able to pay a bill on time. Be smart about it. Your credit report will show which companies report late payment. For mortgage lenders and credit card companies, however, you can assume that they report late payments all the time.

What Could Hurt Your Credit Scores

The following will definitely hurt your credit scores, so try to avoid them at all cost.

      1. Paying late or not paying at all.
      2. Having an account charged off.
      3. Having an account sent to collections.
      4. Defaulting a loan.
      5. Filing for bankruptcy.
      6. High credit card utilization ratio, or high credit card balances.
      7. Maxed out credit cards.
      8. Having your house foreclosed.
      9. Applying for too many credit cards or loans.
How to Repair Credit

How to Repair Credit

Posted in Uncategorized

Unsecured Personal Loans – Make The Best Out Of Unsecured Loans

average interest rate on unsecured personal loanWhen you need money quickly to make an important purchase or deal with an unexpected emergency, you cannot afford to wait for days for banks to process your loan request. In addition, your past financial mistakes could impede your quest to get a loan from the traditional lending institutions. Sometimes, even people with solid financial situations do not want to be charged interest rates on credit or be restricted to quick repayments that may affect their financial life. This is where unsecured personal loans will can be one of the most viable solution to the problem.

 

What Is An Unsecured Personal Loan?

There are many lenders online with a scheduled installment for people with bad credit. The loans are usually taken out as a short-term solution to an urgent situation. You can request for the loan if you are facing a financial emergency that needs to be resolved as soon as possible. Since the loan is unsecured, your lender will rely on the information that you provide, such as current income, financial commitments and your ability to repay the loan. You will not be asked to submit collateral or fill out many documents to get the loan. Your lender may charge a slightly higher interest rate than traditional lenders because of the risky nature of the loan.

 

Why Are Credit Checks Not a Requirement for Personal Loans?

While some lenders may carry out a credit check on the borrower, lenders in our network do not carry out a hard credit check. Instead, they will perform a soft credit check that will help in ascertain the accuracy of the information provided. The reasons that will cause them to check your credit history include the following:

  • Unsecured loans rely on the income level, current employment status and the ability to repay the loan within the stipulated time.
  • Speed is essential for quick loans and a fast check on your credit score will help your lender verify your loan request quickly.
  • The information provided by a borrower will determine the amount of money that you can get. Your lender will not use only credit score when determining your eligibility for the loan.

There are many reasons why lenders will be willing to give you a loan even with your bad credit score. The motivation to give you the loan is focused on helping you achieve financial stability and overcome a sudden financial need you may have.

 

Personal Financial Crisis Comes In Different Forms

Many people find themselves in the midst of a personal financial crisis. Some of the situations that can cause this crisis include:

  • Gambling or some other forms of addiction
  • Overdue bills
  • High-interest student loans
  • Speculative and risky investment choices

How to Recover

The good news is that you should not let your financial crisis be the end of the world for you. You can create a solid long-term financial solution. With a plan in place, you can revamp your financial situation and get back on track. It can take some time but it is important to remain focused as you find a way and maintain your dedication towards improving your finances. Several options that you can use to back up financially include:

  • Lines of credit
  • Traditional banks personal loan
  • Online unsecured personal loans
  • Personal loans from friends and family

Traditional lending institutions such as banks will determine your creditworthiness using your credit score only. You may not want to use lines of credit that charge high interest rates. Family and friends can give you a loan, but they may require you to return the money quickly.

 

What You Should Know About Unsecured Personal Loans

low interest unsecured personal loansUnsecured personal loans bad credit is a means that you can use to get back on your financial feet. The loans are not designed as a long-term solution to your perennial financial problems. You could use the funds to tide you over to the next payday. The loans act as a temporary form of solution that can help you improve your financial recovery. You should be careful when choosing a loan because this will determine the cost of the loan. Whether you want to use the loan to revamp your finances or deal with a personal problem, you should keep your priorities right. When you have the right intention, the loan can help you deal with urgent problems.

 

How to Get Personal Unsecured Loans

fixed rate unsecured personal loansWe connect you to many lenders who will finance your loan request. There is more to the loan than just taking it. We have enough materials that will help you make the right financial decisions. When you have information from financial experts, you will be able to make an informed decision. We have made the loan request process simple and easy. All you need to do is to request from the website and submit the information to us. Our support team will handle the situation from there, and your lender will give you feedback as soon as they have evaluated your loan request.

 

Homepage – GadCapital

unsecured personal loans for people with poor credit

 

10 things you need to know about merchant cash advances

You may be a business owner with a struggling business and are probably looking for options to save your company from going down. The merchant cash advance option may have come to your mind but probably don’t have enough information. This article is dedicated to giving you useful information and taking you through a couple of important points.

1.  What is a merchant cash advance?

Merchant cash advance

Merchant cash advance

Merchant cash advance financing is a financing option that involves the loan of a certain amount of money into a business by merchant cash advance providers in exchange for future credit card and/or debit card sales. It is a financial plan that small businesses take up.

Merchant cash advances help them get quick cash which their businesses need. In exchange, they sell a part of their future sales to the merchant cash provider. This means that if the business makes a sale, the sale is divided between the business and the provider company.

    The terms are agreed between the two parties but the cut is usually between 10-25% of the credit card sale going to the company while the remaining goes to the company. This becomes an easy way for the business to inject cash flow into its operation and then pay back as they continue conducting business.

2. Functions of merchant cash advances

A merchant cash advance is used by the business for all sorts of reasons. The business may decide to use the cash to pay their employees or repay a debt. Other businesses may use the cash advance for advertisements or fund a promotion campaign. Other uses may include the production of more inventory and stocking up products. 

The merchant cash advance is a helping hand for business owners during difficult financial situations. The cash advance becomes a quick solution for these problems.

3. Merchant cash advance is NOT a loan

Merchant cash advance is not a type of a loan. It is described as an exchange of cash the future credit card or debit card sales. It is not considered as a loan and thus treated differently. That is why merchant cash advance providers say that they are not regulated by the loan and interest legislations that have been put in place.

Hence, the interest rates could go higher than you are normally used to. Another difference is that since it is not a loan, the interest rates are not calculated by the annual percentage rate. They are calculated according to the factor rate of the business.

4.   Fast approval

Fast approval

Fast approval

Merchant cash advance is processed within a short period of time. With all necessary documentations and credentials, a merchant cash advance could be approved within 24 hours. The deposition of the money into the business account may take up to a week. This is considered very fast compared to traditional loans which have to go through a series of processes before they approve your loan. A merchant cash advance gives you the fast cash for your business. Thus, it is very attractive to small business owners.

5. Pros of the merchant cash advance

Pros of merchant cash advances

Pros of merchant cash advances

A merchant cash advance has many advantages that attract a lot of people. They include the approval time z and the credential factor, among others

  •  A merchant cash advance does not require many credentials to apply. It’s all about the business and not about the individual. Thus there is nowhere the credit score of the proprietor of the business is in question. The plan solely deals with the business and not the owner.
  • The approval time for a merchant cash advance is just lessee than most other loans in the market. It takes a minimum one week to get the merchant cash advance for your business. It’s why merchant cash advances have become so popular.

6. Cons of merchant cash advances

The plan definitely comes with a few drawbacks which you have to be careful of. The drawbacks mostly affect the interest rate of this plan. The plan doesn’t have an annual percentage rate as it is not classified as a loan. It all depends on the factor rates. This means the rate of interest cannot be controlled. There is an important aspect which you may need to know.

The percentage cut that is paid to the company for every sale is not the same as the interest rate. They are two different things and the charges are different band have to be paid. This may cause confusion for the business owner and thus cause frictions in the future.

7.  Other factors

This sort of financial plan is has a special characteristic. The amount of money from sales that are going to the company varies. This means you cannot plan for the money that is going to be paid from your business to the company. This plays a con card in this case.

However, this characteristic has a flip side. This is because since the cash is not specified, it means that you are not affected as a business when it comes to the low season of your company. There is no specific amount of cash that is specified that your business has to earn each month. Thus, the merchant cash advance company will get paid when you make sales. This relieves your business from the pressure of having to attain a certain amount of sale each month.  

8. Company specifications

 

different companies will come up with different offers

different companies will come up with different offers

In order to attract businesses into their plans, different companies will come up with different offers for your businesses. Thus, you will have to a lot of companies offering merchant cash advances but are customized in different ways to suit different businesses. The key is always to take the plan that works well for your company. It’s all about looking at works with your budget and your sales projections.

9. No collateral involved

Merchant cash advance companies don’t need a collateral as this is not a loan. It is an exchange of future sales for a merchant cash advance. This, collateral becomes irrelevant. It’s all about the agreement put in place when the application of the MCA  was done.

10. Bottomline

It’s all about choosing what works for your business. This plan is very attractive as it’s very simple to understand. However, it has the downside of having very high- interest rates. However, if you can couple with them it’s a plan that could go a long way in making your business a success. It’s all about perspective; what you make of the plan.

How To Declare Bankruptcy

Bankruptcy is the legal status of an individual or an entity, in which they are not able to pay the debts that they owe to creditors. Although bankruptcy is declared by court orders, it is an individual who initiates the process. In the United States, bankruptcy cases are handled by the federal courts. Such cases are guided by the rules under the U.S. Bankruptcy Code. So, how do you declare bankruptcy?

Declare bankruptcy

Declare bankruptcy

As an individual, you qualify to declare bankruptcy under Chapter 7. However, so as to qualify for bankruptcy under Chapter 7, your income should be below a given level.

So as to pay off your creditors, your property may be liquidated. If you had borrowed secured loans, the options you will have are to pay the creditor an amount which is equal to the current value of the property, allowing the property which you used to secure the loan to be repossessed or to have the secured debt eliminated.

Steps for Filing Bankruptcy            

  • Find out if you qualify

This is the first step that you need to take if you wish to file for bankruptcy. You should qualify for bankruptcy under the conditions stated by law. As earlier stated, your income should be below a given level. Thus, if you still have some income left after paying off your monthly expenses, you will then have to file for bankruptcy under Chapter 13.

  • Fill the bankruptcy forms

Fill the bankruptcy forms

Fill the bankruptcy forms

The bankruptcy forms are downloadable from the U.S Court’s websites. They are a large number of forms, where you are required to fill in your incomes and expenses, properties and debts in full detail. Do note that if you fail to list a debt, it will not be discharged after being declared bankrupt. This means it will continue after bankruptcy.

It is recommended that you fill the forms with the assistance of an attorney. However, should you may decide to fill the bankruptcy forms without the help of an attorney (pro se), the non-attorney prepares may assist you with the paperwork.

  • Receiving a bankruptcy trustee

After filing for bankruptcy, a trustee will work on behalf of you towards your creditors. This trustee is assigned to you by the courts. The trustee determines the property that you get to keep as well as ensuring the verification of the information that you filled out in the bankruptcy forms.

The trustee is also tasked with liquidating the non-exempt property. However, this is under the guidance of the rules which dictate which property is exempted from liquidation. These rules vary from State to State and thus it will greatly depend on the State you are in.

  • Credit counseling and debtor education

As an individual filing for bankruptcy, you are expected to receive credit counseling as well as debtor education. Before filing for bankruptcy, you are to get credit counseling, whereas after you are declared bankrupt, you should receive debtor education.

Before the debts are discharged, you are expected to present the Certificates of Completion to prove that you have undergone credit counseling and debtor education. However, ensure that you undergo these with agencies approved by the Department of Justice.

  • Attend the 341 meeting                                                                            

This is an official meeting that is held with the creditors at your trustee’s offices. Its name refers to section 341 of the Bankruptcy Code. You are expected to state why you are filing for bankruptcy and answer questions related to your debts.

In this meeting, arrangements related to the property that was secured as collateral as well as selling off your non-exempt property are made.

  • A permanent orderBankruptcy discharge

After this, you may be awarded a bankruptcy discharge. This is a permanent order that legally makes you to no longer be liable to creditors. Thus, they should not take any legal action against you or communicate to you with regards to the debt.

The bankruptcy discharge may be expected to take effect 60 days after you, your trustees and creditors hold the first 341 meeting.

Good Vs Bad Debt

Financial knowledge awareness, knowledge and management is essential so as to ensure that you take actions that may build your wealth. However, at times we may need some extra funding in the form of loans. Is there good debt or bad debt? So as to understand these concepts, do read on.

Which debt is good?

Which debt is good?

  • Good debt

This is a debt which is considered positive, as it is expected to give you returns or earn you an income. An example of this is mortgage loans. Such debts can also be tax deductible, as is the case when the amount of the loan repayments is higher than the income from rental payments. This makes the borrower entitled to negative gearing.

  • Bad debt

Bad debt is that which is spent on the purchase of items that do not appreciate in value over time. In addition to this, it does not earn you any income nor is it tax deductible. Examples of such debts are using loans or credit cards on entertainment, luxury items or to take a holiday. Bad debt is also one which is taken so as to cater for

  • Which debt is good?

The argument posed has always been that good debt is good, whereas bad debt is bad and that it worsens an individual’s financial standing.

Good debt offers individuals good financial prospects in the long-term. This is the case when one invests in their business, borrows a loan for a car that they can afford, takes up a student loan or takes a mortgage. Good debt should not be used to pay off another debt as it leads to more costs in terms of interest, instead, you should go for consolidation loans.

Good debt offers good financial prospects

Good debt offers good financial prospects

Bad debt can be used wisely when the credit card debt is paid by the end of the month to avoid being charged higher interest fees. Generally speaking, bad debt is good only when you can pay it off in the short term.

However, purchase of luxury items would be considered as excessive spending. It is not a good financial decision and neither is it an investment. The use of bad debt requires discipline as one should not exceed their credit limit.

The access to a pool of funds tempts individuals to spend more than they should, leading them to further indebtedness. Credit cards also have a high-interest rate, which takes a hit on one’s financial position.

Good financial decisions involve the purchase of items that appreciate in value. It is clear that it is only good debts that offer you with such assets and returns. A sound investment is only possible with good debts. Good debts are also payable over a longer period of time, whereas bad debts have a higher interest rate and need to be paid using one’s next expected salary, as is the case with online payday loans or credit cards.

They often lead to a vicious cycle of indebtedness as one may need to borrow more money so as to meet their needs or to pay off the loan. Bad debts are enticing as they offer quick and easy access to funds but they have detrimental effects in the long run. Make wise financial decisions and keep away from debt. If you really need to borrow money, make a good decision and let it be good debt.

10 Things you need to know about installment loans

When facing financial constraints, most people may be forced to approach lending companies. They may not have carefully thought about whether they may end up losing more or sinking further into debt and even hurt their credit score. With the current economic situation, there are various forms of lending which are out there to make a profit.

Borrowers should be careful not to borrow from such companies to avoid regretting the poor choice they made. Borrowers need to have better understanding and knowledge of the type of loans they want to take out. There are certain things you need to know about online loans for bad credit before deciding whether they are suitable for your financial needs.

  • What is an installment loan?

Installment loans are repaid in scheduled payments

Installment loans are repaid in scheduled payments

An installment loan generally refers to any type of loan that is supposed to be repaid in scheduled payments known as installments. Installment loans relieve the borrower of the burden of having to repay a whole lump sum at one go like other types of loans such as payday loans.

  • Installment loans can be secured or unsecured

There are various forms of installment loans such as auto loans, mortgages and personal loans. These loans are both of a secured and unsecured nature. Mortgages and auto loans are typically secured loans. In both cases, you put up your house or car as collateral in return for a loan. In the event that you default in payment, the lender has the legal right to sell your house or car to recover the outstanding amount.

Personal loans, on the other hand, are unsecured. This means to apply for a personal loan, the creditor does not require you to put up any property as collateral. Instead, the creditor checks your creditworthiness which is determined by your credit score and proof of income which guarantees that you are in a position to make repayments in the future. Installment loans are more flexible as they allow borrowers to distribute payments throughout the loan term.

  • Requirements for application

Requirements for application

Requirements for application

Before requesting an installment loan, you need to meet a few set requirements to secure this loan. These requirements include minimum age legal age of at least 18 years. Secondly, you must reside in the state you choose for your loan option so you cannot approach a lender in Ohio when you reside in Colorado. If you are requesting online installment loans, you must provide your social security number and a saving or checking account. That is because, upon loan approval, your funds will be transferred directly into your savings account. Upon meeting these requirements, then you are eligible for an installment loan.

  • You do not have to be employed to get an installment loan

Most people shy away from loans as some of them require you to provide a letter from the employer as proof of employment. Installment loans relieve you of such pressure. With an installment loan, you do not need to be employed as long as you have a steady source of recurring income. This guarantees the lender that you are in a position to make scheduled repayments (installments) throughout the loan tenure.

  • Additional fees  

It is always important to consider the cost that you are likely to incur while requesting a particular loan before you even start the application process. When requesting installment loans, make sure you’ve checked the interest rates and other fees such as application fees and processing fees.

  • Installment loans have fixed interest rates

Installment loans have fixed interest rates

Installment loans have fixed interest rates

Very often, borrowers suffer from rising interest rates. Some traditional forms of borrowing have varying interest rates such that they end up paying more in the long run. This makes it even expensive for the borrower such that he/she may delay in making payments which could adversely have a negative effect on the credit score. By providing fixed rates, installment loans give borrowers a golden chance to budget their finances over the repayment period, hence keeping them more at ease. This is one of the differences with payday loans.

  • Installment loans improve your credit score

Borrowers strive to maintain a clean credit score for future borrowing. A good credit score opens up avenues for borrowing and somehow acts as a guarantee that the borrower cannot default in making repayment. There are forms of traditional borrowing which could hurt your credit score if you are late in making payments or if you default altogether. Installment loans improve your credit score with time. With every payment or installment made, your credit score improves. Borrowers with bad credit, therefore, can redeem their creditworthiness. Installment loans have no credit check.

  • Installment loans do not have credit checks

do not have credit checks

do not have credit checks

For those who are haunted by a low credit score, installment loans offer a ray of hope to them. Borrowers on this bumpy road of bad credit installment loans can apply for bad credit installment loans from installment loan direct lenders who do not check your credit score but transfer your funds directly to your bank account.

  • They are fast

Installment loans with bad credit are tailored for emergency situations such as unexpected medical bills, funeral expenses or car repairs. Installment loans transfer funds to the borrower’s account on the same day or on the next business day. Application of an installment loan also does not require a lot of documentation, making the loan processing much faster.

  • Installment loan companies

This is a very important aspect to consider before requesting an installment loan. Borrowers should carry out research to ensure that they are dealing with a licensed company. Rogue lenders are on the rise nowadays and borrowers need to be more vigilant. The borrower should ensure that the lending company is licensed by the state before borrowing from them. Direct lender installment loans are the most preferred option.

Card Debt Trends

Credit cards give the borrower access to a pool of money. They get to borrow money which does not exceed their credit limit. The cost of living is on the rise and so is the cost of debts as well as the update of loans by most individuals. As an individual’s cost of living becomes higher than their flow of income, they will seek out sources of funding so as to get by. There are various options available ranging from payday loans, peer to peer loans and debt consolidation to credit cards.

credit card debts

credit card debts

The use of credit cards is common among many individuals across the world. This also applies to most citizens in the USA. The numbers seem to be on an upward trend with each passing year.

As per the data recorded in the third quarter of the year 2015, US consumers owed credit card debts that amounted to $712 million. The average amount of credit card debt owed by each US household was $15355.

Data related to the nominal income and the cost of living was recorded over a period of 12 years (2003-2015). Between 2003 and 2008, the median household income had a steady percentage increase which was higher than that of the overall cost of goods. At some point in the year 2008, the increase in the percentage of both the nominal income and the cost of living were at par.

Thereafter, the percentage change in the cost of goods has been on a gradual increase over the years. On the other hand, the percentage change of the nominal income has been fluctuating, having a downward trend between 2008 and 2010. From the years 2010 to 2015, the percentage change of the median household income has been steadily increasing, but at a rate lower than that of the overall cost of goods.

In as much as the number of credit card users and the amount of debts owed seem high, there is a possibility that the figures may be higher. This is because most individuals are usually shy to state the amounts of debt that they have. It is likely that most borrowers state half the amount that they owe while others may not know the total amount of their debt.

The following reasons indicate why the cost of debt loans is increasing:

  • The credit card interest amounts to $2500 or higher

Consumers incur an average cost of $2,630 annually on interest charged on their credit cards. This is calculated with the assumption that the Annual Percentage Rate is 18%.

  • The cost of debt increases as one’s income increases

credit limits

credit limits

High income households have the advantage of getting higher credit limits. However, this is not the case of low-income households. Therefore, the higher the amount of the credit card debt that a low-household income incurs, the higher the percentage of the amount owned up by the debt on their annual income.

The spending of higher income households will not affect their finances as much as it does to lower income households.

These card debt trends prove that in as much as the credit card is a popular means of getting funds, the impacts are negative and lead to further indebtedness. The interest rates are higher than any other type of loan and the rates seem to be on a constant upward trend. Take charge of your finances and do not be part of the borrowers counted as statistics in credit card debt.

Installment loan benefits

Installment loan benefits

Installment loan benefits

Installment loan benefits and how they can help

Unforeseen expenses are a common setback to most people’s financial status. These expenses include emergency medical bills, outrageous home bills and taxes or unexpected car repairs. They may leave you with no option other than to seek for financial aid from other sources.

This drags you slowly into debt. It is imperative that you consider your choices and the lending companies that you choose to work with. Keen scrutiny expects you to note down critical components that constitute a loan. These include the repayment period of the loan, its interest rate and other aspects that are important to you.

Luckily, there are various alternatives available for you to choose from. Installment loans are among these choices. An installment loan refers to a loan which is to be repaid over a given period of time in installments. The repayment period may vary from a few months to as long as 30 years.  You can read about the basics here.

There are different types of payday and installment loans out there. They include auto loans, personal loans and mortgages. Installment loans have certain merits that outweigh their demerits. That is why most people prefer installment loans to other forms of traditional borrowing such as payday loans.

You can avail online installment loans today. Need Help? Have Questions? Talk to an installment loan expert now at (800) 961-5909

Why you should use Installment loans

  • No credit checks installment loans

    No credit checks installment loans

    Speed: Most of these installment loans, if approved, will be transferred to the borrower’s bank account on the same day or the next business day. Direct lenders of installment loans do not ask for a lot of documentation, hence speeding up the processing time.

  • Interest Rates: Installment loans have lower interest rates than other alternative traditional forms of borrowing such as credit cards and payday loans. This makes Installment loans more reliable and appealing to borrowers. Low-interest rates reduce the total cost of repaying the entire loan. Most of these installment loans also have fixed interest rates. This keeps borrowers at ease as they need not worry about an increasing interest rate.
  • Flexibility: Compared to other loans, installment loans come with more flexibility. Generally, installment loans are long term. With a long loan tenure such as over 15 years, it is obvious that monthly payments will also be lower and easier to make.
  • No credit checks installment loans: Most people who are deep in debt are already experiencing difficulties in making full repayments within the agreed time frame. This is bound to hurt their credit score. Someone who has taken up bankruptcy, for instance, and defaulted in payment may be subject to a lower credit score. A low credit score scares away potential lenders who fear that you would not make payments promptly.

    Direct lender installment loans offer a flicker of hope for borrowers as they do not have credit checks as a requirement for eligibility. Their interest rates are also fixed, hence enabling borrowers to apply for installment loans with bad credit.

15 signs you’re overspending

Are you nervous when you present your credit card. We all like buying stuff.  With credit card interest rates soaring, this is probably the worst time to let your desire get out of hand.

One in five Americans spends more than what they earned in the last 12 months, according to a Federal Reserve Board survey. Some may be relying on credit or dipping into savings to cover their spending because they are having trouble making ends meet. And some might be living beyond their means.

Whatever the reason, overspending is harmful because it can be a sign that you’re not in control of your finances. Your overspending might be making it hard to pay bills, have money for emergencies and save for the future. It could also lead to serious consequences such as bankruptcy. If you have to often stop yourself from overspending, you may have some financial issues you need to take care of.

Let’s look at 15 warning signs that indicate you are spending way too much.

1. Maxed out credit cards

Maxed out credit cards

Maxed out credit cards

Often, one of the first signs that suggest you’ve exceeded your shopping budget is maxing out two or more credit cards.  While pushing the limit on one of the cards can be easily explained because the initial credit availability is low or a large purchase happens to max out the entire credit line at once.

However, the chance of having two or more credit cards maxed out due to pure necessity is highly unlikely.  In most cases, that means you are overspending.

2. You go shopping every week

If you have a habit of coming home with shopping bags every time you visit the mall, and you do that at least once a week, then you are probably overspending.

3. Fear of credit card rejection

t checkout counters?  If you’re saying a silent prayer every time you hand your card to the waiter after dinner, you’re probably overspending.

4. Paying credit card minimum is all that you can afford

Lagging behind on your bills

Lagging behind on your bills

Do you have to empty your money jar for the minimum payment everytime you get the credit card bills? Sending in the smallest possible dollar amount actually benefits the card company more than you. When you pay interest on the daily balance, your credit provider makes lots of extra money on top of the normal rate for purchases.

Bottom line is, a minimum payment means only two things – you’re lagging behind on your bills and the reason for that is you probably have the habit of overspending.

5. Flipping debt from old cards to new all the time

Accepting a card company’s line of credit and using it to pay off another balance with a higher rate is okay.  However, when requesting numerous credit cards to stay ahead of rising debt is your best method of dealing with the situation, you’re probably drowning in debt and overspending is most likely pulling you under.

6. Always asking family and friends for money

Always asking for money

Always asking for money

Knocking on doors with your hand out is not the best feeling in the world. If friends and family members have decided to cut off their purse strings or refuse to take your calls, they’re simply tired of lending you money. You’re probably just as tired of asking and feeling guilty of overspending.

7. You look at selling your blood or plasma as a real option

No one is going to blame you for making a blood or plasma contribution as countless lives are saved by selfless donors. However, lining up to sell your precious life force so that you can buy a new outfit and matching accessories may indicate that you have a real issue with your spending habits. it’s safe to say that you have a problem with overspending.

8. Your monthly income is lower than your credit card debt

In life, there are simple financial rules you should live by. One of it is to never allow credit card debt to rise above monthly income.  Pre-set controls and self-proposed debt limits are crucial in helping to keep spending from getting out of hand. They help manage your income, expenses and control your appetites for overspending.

9. There are clothes in your closet with their tags on

overspending & you’re paying interest

overspending & you’re paying interest

You’ve bought clothes but still haven’t gotten around to wearing them? Unless having so many new clothes in your closet doesn’t bother you, then you’re overspending. You see, most consumers can’t afford to hang up money in their closets. And if you charged the clothes on a credit card, you’re not only overspending, you’re paying interest for them as well.

10.  You see payday or title loans as your best options for cash

Some payday and title loans and lending companies provide good services at reasonable terms regardless of what you may think of them. However,  you must remember that industry loan products are short-term answers to your financial issues. Quite often, you could end up paying more than you had planned for extending the term of the loan, So read the fine print carefully.

11. You dig into your retirement account

Avoid borrowing from retirement account

Avoid borrowing from retirement account

You might think there’s no harm in borrowing from your retirement account because it’s your money anyway. About 20 percent of 401(k) plan participants have taken a loan from their account, according to the Pencil Research Council Working Paper. You may borrow up to half of your 401(k) balance, up to a maximum of $50,000.

However, that’s rarely a good idea. If you borrow from your retirement account, you’ll have to pay yourself back with interest — which can be lower than the rate of return than you would have gotten if you had left the money in the account. So really, you’re just shortchanging your retirement savings.

12. You’re always late in paying your bills

According to an Urban Institute report, about one out of 20 people with a credit file are at least 30 days late on a credit card or a non-mortgage account payment.

Paying bills late because you don’t have the cash is also a sign that you’re overspending.

13. Hiding

If you hide your mail so that no one else can see your bills,  that’s usually a clear symptom that things have gone out of hand and you are probably overspending.

14. You often buy things you don’t need

Have you ever looked through your cabinets, drawers, and closet and found absolutely new and unused things just lying around your house? Do you remember buying them? If not, you’re most likely overspending on things you don’t need.

15. One job is not enough

you’ve to work part-time

you’ve to work part-time

If you’ve to work part-time on top of your full-time job to keep up with your debt, it’s time to reduce your spending so as not to overspend.

If you find yourself with any of these 15 signs of overspending, it’s not too late to rein in your spending habits. Set a monthly budget for yourself and get rid of all bad habits of spending unnecessary money or buying things which you don’t actually need.