Bad Credit Payday Loans

By Daily Dosh | May 7, 2008

Who isn’t in need of a little extra cash?  Most of us feel that we could always do with a little bit extra money but sometimes however occasionally we really need that extra money and we need it urgently.  It simply isn’t a case of having to buy the latest designer handbag or LCD TV, you need the money in an emergency.  However for those with bad credit, being able to access money on credit may see impossible.

Luckily you might find the answer in the form of a payday loan which is suitable for those with a bad credit rating.  This sort of loan is very easy to obtain and can quickly be arranged online.  What makes payday loans attractive is when you take out the faxless payday loans as these are the type that are suitable for those with bad credit.  You will never be disallowed a faxless payday loan based purely on your credit history.

Whatever need you have for this loan is up to you and there won’t be any questions asked in this department.  The money is normally deposited directly into your checking account the exact same day as you apply and are accepted.  It’s quite amazing how quick the whole process is.  Especially when you’re used to other types of loans such as mortgages.

However it’s important that you realize that payday loans get their name because it’s based upon your next pay check.  You need to actually have an income and payday loans aren’t suitable for buying larger items.  You should also be very careful about any exsiting debt problems as you don’t want to get yourself into any deeper debt by taking out loans you know you cannot pay.  There are better methods of dealing with debt than this.

Some people have been finding keeping up with repayment of other loans very difficult so think that taking out a payday loan suitable for those with bad credit is the solution.  Find out about other techniques of getting rid of debt before you go down the faxless dayday loan route.  An important note to remember is that payday loans are more expensive than loans you’ll typically pick up with your bank.  If you find yourself needing to take out fax less payday loans on a frequent basis then this is something you really need to nip in the bud.  You will find that reducing your outgoings will have to be done or else you should try and generate some extra income..

As with other types of loan you will notice that the rates quoted for a faxless payday loan for bad credit customers will vary from company to company.  Once you have given the lender all the info they need such as name, address, bank info and employment details, the money can be dropped into your account as soon as one hour or at least sometime that day.

Bad credit is not something you will actively want however even if you do have bad credit, you don’t need to view it as a black cloud over your head.  Credit checks are never carried out and the only checks that are made are based on the info you have given over, ie where you live etc.  They won’t be contacting any of the credit report agencies or your employer, unless it’s simply to make sure you’ve given over the correct details.  The process of making your application and being approved for a faxless payday loan with bad credit is simple and straight forward.  By choosing an online lender you will find that the speed is very quick.

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Faxless Payday Loans

By Daily Dosh | March 26, 2008

If you’re looking for a payday loan you may have noticed that there is one type called a “fax-less payday loan”. What does this mean and how does it help you? Well, simply put, a faxless payday loan just means that there isn’t any need for you to fill out any paperwork when you go to apply for a pay day loan. If you search the internet for payday loans you will notice that many of them are set up to process all their payday loans in a faxless way. In order to make an application all that is required from you is to fill in an online form with all the necessary details. After your details have been submitted the lender will verify and crosscheck all the details electronically. Once you’re application has been accepted you will find that the money is transferred straight into your bank account.

What Do You Need To Apply For A Faxless Payday Loan?

This is a very simply process and you won’t require much information to fill in the application. You don’t need to give anywhere near as many details as you would if you were to take out a bank loan. The payday loan process is very quick and easy which is great if you need money in an emergency. Here are the basic details you should expect to fill in:-

Bad Credit Faxless Payday Loans

The way that payday loans work is that the loan is secured against your next salary payment so this is why these lenders don’t bother about checking your credit history. This is very much a relief for anyone who is in fincancial dire straits and needs some money quickly. Even people with bad credit can have a regular income so you’ll probably accepted for a loan very easily.

However it’s important that you don’t get carried away and borrow more than you actually need. Make sure that you only ever borrow the amount that you feel capable of repaying as it’s important that you don’t end up in a worse financial situation than you need to be. Only treat a pay-day loan as way of generating money in an absolute emergency and is certainly not something you should take out so you can buy a new pair of shoes. Payday loans may be easy to get for those with bad credit but it’s important that you remember that you will need to pay the loan back.

Fast Faxless Payday Loans

A faxless payday loan can really save you a lot of time in comparison to payday loans that do need a fax. Speed is often of the essence when it comes to this type of loan because of the reasons you may need to take it out. All you have to do is provide all the information that is requested of you and you’ll end up with the money deposited into your bank account in no time at all.

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How to Get Rid of Credit Card Debt: What’s The Best Way For You?

By Daily Dosh | January 30, 2008

When dealing with credit card debt you really need to take a deep breath and look at your situation with a fresh perspective.  It can seem as overwhelming as climbing Mount Everest but it really needn’t be that painful.  There are a number of things you can do to solve your problems.  The most obvious thing you can do is leave your credit card at home and only buy items which you need to survive like food.  Before going on a shopping trip, make a list of everything you need to buy and work out how much cash you need to pay for it.  So if you see something that you “just have to buy”, you won’t have the money for it.  If you truly need it, you can always go to the bank and withdraw cash.

Occasionally you’re credit card can be over-used without your knowledge.  Either by a family member or by a fraudster.  This is why it’s so important to look at all the items on your credit card statement.  If you are unsure of any items, just phone up the credit card issuer and ask if they can give you further info.  If there are any obvious inaccuracies then make sure you report it.  Sometimes it’s obvious that you didn’t make the purchases because you were out of the country when they occurred.

If all the credit card debt is really yours, then the first thing you should do is seek the advice of a debt counsellor.  They are specially trained to help people like you out of debt and have lots of experience.  They know exactly what techniques and options are available to you and they know what works and what doesn’t.  The good thing too about them is that they normally don’t cost a cent, which means you’ll prevent yourself from getting into further debt.  They also aren’t sales agents which means they have no incentive for you taking out any financial plans.  They are strictly giving advice which is in your best interest.

One option you might be advised to follow is to consolidate all your debts into one.  This means you can agree on an amount which you can afford, also you might be able to get a lower rate of interest.  If you have several credit cards, cut them all up apart from one or two.  Make sure you contact the card issuers and tell them you want to cancel and for them not to send you any more correspondence.  You only need one card for expenses and another possibly for emergency use.

There also many commercial organisations who claim to help people specifically like you by offering debt consolidation and other financial options.  Although this may well be the option you choose, make sure you compare all the deals you are given.  Don’t be afraid to negotiate either.  It’s a very competitive market place out there and many sales agents have the ability to offer you a better deal.

Another option is by consolidating your credit cards onto one low interest card.  These can sound very attractive when explained by a sales agent but you need to understand there are some downsides too.  Although the interest rate is low, you will have to pay it over a longer period of time meaning it costs more in the long-run.

There is no reason why you cannot free yourself of credit card debt.  There are so many options available to you combined with using your cards more wisely.  There is no single “best” way to get out of credit card debt.  You need to educate yourself about your finances and explore all the options.  Some people feel that filing for bankruptcy is the only option but this should only ever be a last resort.  Lots of people get themselves out of debt, there’s no reason why you can’t too

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How Inflation Affects Interest Rates and Your Finances

By Daily Dosh | January 22, 2008

Inflation is what makes your money of today worth less tomorrow.  Borrowers find borrowing money more attractive but it’s less attractive for lenders.  This is why lenders raise their interest rates because they know that the dollars people pay next month are worth less than the money they loan today.

This turns into a vicious cycle.  When prices rise, people and businesses tend to borrow more so that they can afford all the things the want to buy, whether it be cars, holidays or home improvements.  This is turn causes interest rates to rise even more due to increased demand in borrowing money.

Inflation is primarily caused by governments.  It may be because of borrowing themselves, printing more currency, deficit spending or giving out more credit.  There isn’t much that you can do as an individual to change this.

However if you are wanting to borrow money, there is plenty you can do when trying to understand what is happening.  Governments can’t keep increasing inflation as it would get to the point where there would be large demands for something to be done.  When something does have to be done, this normally involves closing down the spigot or just slowing down the actions detailed above.

These actions affect how you borrow money, just like inflation.  Deflation lowers rates which makes borrowing more attractive.  However this causes the dollars to be worth less than they are tomorrow.  Basically this means that your money is worth more tomorrow if you save and invest, than they are today.

If you are looking to borrow it’s a case of making a calculated guess as to whether inflation or deflation is going to occur.  It sounds rather complicated but there are ways for the laymen to understand.

There’s no exact method set in stone but there are indicators to look out for and anyone can do this.  In times gone by people used to look at the gold and silver markets, however the dollar isn’t linked to hard commodities anymore.

Because oil is such an important commodity which is linked to the production of so many products, increased oil prices means that inflation is more likely.  If you notice that oil prices are set to increase or decrease in the future, you’ll have an idea of inflation.

Bond option prices are also a good signal.  Professional money managers bet on whether interest rates will change considerably over the next year or two.  This can be a slightly more tricky relationship to understand so it would be a good idea to ask a specialist.

Remember, the dollar today measures the costs of services and goods you buy today.  But when you borrow money, those dollars are being spent today but paid back in the future.  The value of the dollar when you pay back your loan reflects the true cost.

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What is the Correct Amount of Debt for You?

By Daily Dosh | January 11, 2008

Each and every one of has is in a different financial situation so there is no definable “correct” amount of debt.  Luckily there are a few guidelines for those who may be unsure.
Lenders are Taking a Risk - Lending companies will lend you as much as they think you can afford.  Yes, they are taking a risk in doing this, however these are calculated risks.  They will look at your current and past finances such as how often you have defaulted on a loan, current interest rates along with your credit history.  If you want to take out a loan you need to understand what the banks want from you.

Can You Really Afford the Repayments?  Don’t rush into taking out a loan and make sure that you can really afford to make the repayments.  If you know that you can’t afford the repayments don’t take out the loan!  It’s not worth the hassle even although you may think so now.

If you are expecting an increase in income then you can certainly factor this into your decision.  However make absolutely sure before signing any contracts.

Look at Interest Rate Trends - Don’t worry, this is not as difficult as it may seem as general trends are not that random.  Bonds, futures and other indicators can also help.  If you see 6% bond option prices going down then it may be that interest rates will rise.  This is what professionals look at when working out future interest rates.

Check Credit History – Try and look at yourself the way a bank would.  Do you honestly think that they would lend you any money?  The bank doesn’t care why you were late in paying – they just care that you were late.  They see everything in black and white.

Income v Expenses - Write down all you income and expenses in order to work out what is realistic.  You might long for that Hawaiian cruise but can you afford to pay out every month for the next year?  It’s important you are completely honest with yourself.

Think for Yourself - Bank staff are not there to tell you whether you need that item you’ve had your eye on.  Think about if you would rather wait whilst you save for the money rather than paying high interest rates.

Impulse is one of the biggest culprits of debt.  Before rushing out and buying what ever it is you want, think to yourself “do I really need this debt?”

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Home Equity Loans: Pros and Cons

By Daily Dosh | December 7, 2007

For many people looking for a loan, obtaining a home equity loan is the option to go for.  However there are few things you should be aware of before committing yourself to any decision.

Before explaining the pros and cons, let’s look at what a home equity loan actually is.  Basically it is a way to obtain credit by using your home as security.  If for instance your home is worth $150,000 but you old have a mortgage of $50,000, it means you have $100,000 worth of equity which you can borrow against.

A number of homeowners will take out a HELOC (Home Equity Line of Credit), so that they can use the money for the purpose of financing home improvements. However because of tax implications amongst other reasons, the HELOC evolved to be used for other reasons.

When you pay interest on most types of debt it is not tax deductible.  However it is if the interest is paid on a home load.  Therefore, interest paid on a HELOC can actually be a form of less expensive debt.

Lets say you have a 12% HELOC for up to $10,000. With the majority of HELOCs you don’t actually borrow the entire amount at once.  You take it out in stages, much like using a credit card of check – you just use it as required.

The benefits of this type of loan are numerous.  You can simply borrow the amount you need, so keeping interest repayments down.  Plus you get to reduce your taxes by a percentage of the interest paid per year.

If you had a credit card that charged 12% APR, the advantage is clear. You pay a net lower amount of money to the lender as a result of using a HELOC as apposed to a credit card to finance your spending.

As many advantages this sort of loan may have, remember just that; it is still debt.  The problem is that many people find it difficult to refrain from a spending spree.  As a result, a home equity loan may actually make your more fundamental problem worse, rather than better.

If you are truly dedicated to controlling your debt and want to find ways in which to reduce expenses, a home equity loan can be a good idea.

What you need to do is calculate how much you will be spending each month until for the life of the debt.  Look out for debt calculators to help you.

If you are having debt problems you will need to decide if you want to spend more money over the life of the debt instead of having a smaller monthly payment, but higher total amount of interest. The better calculators will help you run through both scenarios, changing amounts to help you weigh the pros and cons.

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Debt Reduction - Snowball Method

By Daily Dosh | December 3, 2007

So you’re looking to reduce you total/monthly re-payments? The initial thought is to pay down the debts. This is not easy and some find the situation hopeless. One method that can be used in the “snowball method”, a term coined by Dave Ramsey.

On the whole this technique is pretty simple. List your debts from the lowest to the highest. Every month pay the minimum amount required for each of your debts. With the amount left over start paying off the smallest debt. When that has been paid off, move to the 2nd smallest. Keep doing this until you have reached the level is wish.

There are several advantages to this. Physiologically you can see the progress you are making in reducing the debts fairly quickly. As you cross off these debts you can split your money between paying off the next debt on the list as well as treating yourself to a few things.

You will feel that you are achieving something and this will spur you on to complete the program. Being able to see real progress will help you stick at it.

Unfortunately the system isn’t perfect. It takes longer and therefore costs you more money. It all comes to how interest compounds.

If you pay off a $500 debt, a $1,000 debt and a $5,000 debt they may all have the same rate of interest. However paying off the smallest amount first actually costs you more in the total interest paid. Because any outstanding amount is charged at the same rate of interest, the higher amount will incur the largest charge. Ultimately you will pay more in total interest charges.

If you want to save money in the long term then it is actually better to pay the highest amount first. As you pay down the highest debt first, you are reducing the amount of interest dollars paid over time.

The problem for most people is that it is harder to stick to this sort of re-payment plant. It requires more discipline as you gradually reduce the $5,000 debt.

The main problem people have in paying debts is will-power. If this is something you suffer from then the snowball method is probably a good choice. Even despite the fact it’ll cost more over time.

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Are Low Interest Credit Cards Worth It?

By Daily Dosh | December 3, 2007

It may seem that credit cards can be both saviour and destroyer but ultimately you should view them purely as a tool. Of course, how you choose to use them is up to you.

Handy Tool - If used properly they can come in very handy, they can be used for online shopping where you can’t simply hand over a wad of cash. It’s also great if you feel uncomfortable about carrying large amounts of money in case you are mugged. Alternately you may use your flexible friend to run up huge debts you’ll struggle to repay and the interest rates can be crippling.

Use it for Debt Consolidation - For a number of people who find themselves with bigger credit card bills than they can cope with, debt consolidation is the answer. Many card issuers will present you with offers that sound too good to be true. Simply collect all your credit card debt onto the one card.

Be careful about these ‘low interest rates’, they are often only given to those with good credit history. And if you’re having financial troubles, chances are your credit score is less than perfect.

In saying that they can be a good long term solution and the only way to know if they’ll accept you is if you actually apply. If you are accepted there are a number of things to consider:-

End Up Paying More - It is unlikely that these credit card offers will lower the total amount owed. This means you’ll still have the same amount of debt. You may even end up paying more in the long run. If you pay 8% on a debt of $10,000 for, say, five years you will pay more than paying 10% on $10,000 for two years.

The reason is the compounding effect of interest. The total amount of interest paid in the first case is $2165.60. The net interest rate overall is 21.656% when calculated as the percentage paid beyond the principal. In the second case, you pay only $1074.80, with a net interest rate of 10.748%.

It’s important to note that you are paying an annual percentage rate (APR) which means this is the amount you pay each year - it is not the total you pay over the life of the loan,

The advantage of paying 8% over five years is that the monthly amount is only $202.76 compared to $461.45 per month if the interest rate is 10% over 2 years. Think about what you can afford to pay after all your other expenses. Use one of the many online calculators to find out what is the optimum level of interest and loan term for you.

Further Finance Reading:- 

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Do You Need a Debt Counselor?

By Daily Dosh | December 1, 2007

Everyone has different attitudes toward debt. Some people accept it and think it’s normal whilst other people find it embarrassing. Whatever type you are you should always seek professional advice. For some people this is a debt counsellor.

Debt counsellors receive special training to help those in a difficult financial situation. They have a vast knowledge of all the possible remedies you can take to get things back on track. Remember, there are a number of unscrupulous companies out there eager to take your money and run. A debt counsellor will be able to advise you who to go to and who to avoid.

Not only with they offer practical advice, they’ll also be able to offer a helping hand. Dealing with excessive debts is undoubtedly stressful and can seem more difficult than it really is. Going to a third party can give you that reassurance you may be lacking.

It may seem that when you are in debt there is no escaping. Everything can seem doom and gloom and it’s difficult to muster that willpower to get you through. It may be that you suffer willpower which is how you got into debt initially.

Debt counsellor deal with people like you everyday and know that financial freedom is possible. As long as you set out a workable program, realistic goals as well as reminders of sticking to it there’s no reason why you can’t succeed.

Be aware that a debt counsellor isn’t there just to wave a magic wand and make everything better. You cannot rely on them to do everything for you. They are great for getting thing set up and pointing you in the right direction but ultimately you need to learn to do things for yourself.

Money management is not something that everyone is talented at. However you can learn this skill at any age. As long as you have some basic mental arithmetic or a calculator you should be able to deal with it. The main problem is breaking through the emotional barrier.

No matter how good the advice you receive, it’s all worthless unless you act upon it. Ultimately this is your responsibility.

Further Finance Reading:-

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Debt Consolidation – Pros and Cons

By Daily Dosh | November 26, 2007

Are you one of those people who have found that they have more debt than you can afford to pay each moth? Many people in this situation find themselves in a downward spiral. Often people are late in paying and so get hit with high late payment charges which only adds to the debt.

Many companies have sprung up offering people a life-line by allowing them to consolidate their loans into one. These companies can paint a very rosy picture suggesting that they have the perfect solution. Although in many cases it can be a good way to deal with debt, for others it may not be so good.

What is Debt Consolidation?

If you have many debts simply gather them all together and make one single repayment to a single debtor.

This on its own is not necessarily going to help. What does it matter if you pay $150 + $70 + $20 to three different companies or to $240 to one company? If paying online you don’t even need to factor in the cost of a stamp.

For debt consolidation to be worthwhile one of more of these things has to happen:-

  1. The total amount paid out every month has to decrease.
  2. The net amount of interest should decrease
  3. The total debt that you owe should decrease.

The deal you receive will totally depend on the company you go with and what plan they offer you.

Ideally all three benefits should take place. Most of the time the monthly payment will be lowered. The most obvious benefit of this is that it will be more affordable so you’re more likely to keep up with payments.

Stress and debt of course go hand-in-hand so knowing that you can pay your bills will also take a load off your mind.

Cons - The potential pitfall is that if the amount is too low you then may go out on a spending spree and find yourself in a worse financial situation.

The way that most companies reduce the monthly payments is by extending the number of years you have to pay it. In the long-run you will end up paying more in interest. Always try to negotiate the best deal and make sure that you make the payments every month.

When dealing with debt you need to be consistent and committed. Eventually you will have the freedom from debt that you wish.

Further Finance Reading:-

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