|
|
|
Credit Cards and Home Equity Loans – Read the Fine Print
These days, everyone’s lives are burdened with paperwork. With newspapers, magazines, bills, junk mail, and who-knows-what taking up space in their day, few people have time to look at every piece of paper that comes their way. Unfortunately, it’s...
Fixed Rate Mortgage Loans - Understanding The Basics
Fixed rate mortgages are the most common type of mortgage loan
for home buyers. With predictable payments, long term homeowners
can plan their budgets and guard against rising interest rates.
But a fixed rate mortgage is not for everyone with its...
PayDay Cash Advance Loans - The Benefits of Using the Payment Protection Plan
Payment protection plans are offered by payday companies to protect you in any number of unexpected situations. The payment protection plan is an inexpensive form of insurance that payday companies offer on all payday loans. The types of things...
Poor Credit Second Mortgage Loans
When bills start to pile up too high, it can be difficult to
keep up with payments. One option to solve the issue of having
too many bills is to seek a second mortgage loan. However, if
your credit is less than desirable to lenders for obtaining...
Traditional Bank Loans vs Online Loan Companies
In recent years obtaining loans online has become a new and somewhat
unknown reality. Years ago one would make appointments with their
bank lenders and obtain loans the so-called old fashioned way. But in
this fast paced world, people want...
|
|
| |
|
|
|
|
|
|
Cash Advance Loans: Loan Sharks In Disguise?
You have seen them on the corner and in the poorer parts of
town with names like "Quick Cash", "Quick Loan", "Payday
Loans", "Car Title Loans". They are starting to sprout
up all over the country and will soon rival Starbucks for
sheer number of locations.
They are the new trend in predatory lending practices but
still manage to fly under the radar of regulation in most
states. They don' t charge interest, they charge a
"fee".
But it sounds like the ultimate in convenience. Need
some quick cash - stop by and in just five minutes you can
be out the door with $100, $500 even $1000 dollars.
But what is the true cost of this "convenience"?
How It Works
A cash advance or payday/paycheck loan is usually secured by
a personal check. Some companies want your bank
account or credit card information in addition to or instead
of a check.
You write a check to be cashed or agree to have an amount
withdrawn from your bank account sometime in the future;
usually 14 days (the standard payroll period).
After completing the agreement/contract you are given an
amount that is less than what you have agreed to pay.
The difference is the "fee" for the loan service. And
you have got your cash!
Why It Works
Why is the company willing to loan you money like
this? Simple, because loaning out money for these
"fees" really amounts to a huge profit at your expense.
For example, say you borrow $200 and the lender charges a
"fee" $15 for each $100. Within 14 days you will have to
pay $230 for borrowing $200. Now if the $200 keeps you
from having to pay a $100 late fee or penalty on something
it is probably worth it. But if you just want the
money today, you are paying a high price.
You are paying 15% interest for a 14 day loan. That
amounts to 3785% compounded interest yearly! No wonder
lenders are happy to loan you this money. If they loan
you $100 and you pay them back with an extra $15 in two
weeks and they loan out the $100 again along with the $15
extra you paid, and they keep doing this for one year, they
will turn their $100 into $3785 by the end of the year!
Maybe you should be loaning your money to them rather than
borrowing from
them.
What To Watch Out For
* Early repayment fees. Pay off your loan early and they
sock you with another fee.
* Late repayment fees. You may have to pay the entire fee
again if you miss the payment date.
* "Membership" fees. Some companies charge you to become
their customer along with charging you as their customer.
* Giving lenders access to directly debit your bank account.
Just hand them your wallet, it's quicker.
* Fine print (as in all contracts). Know what you are
signing or don't sign it.
* Bounced check or debit fees. Make sure you have money in
your bank account or you get to pay your bank a fee as well.
* "Collateral" requirements such as a car title. Miss your
payment and you may be missing your car - permanently.
There Is A Better Way
The root problem here could be that you are getting
strangled by your debt payments. Credit cards, store
accounts, installment payments and such can eat up your
income quickly. Ite may be time to visit a non-profit
credit counseling service or create a debt reduction plan
for yourself.
Or it could be that you are just spending more than you
make. You may need to spend a few minutes each week
and write down your expenses. Then categorize and
total them to see where your money is going. Then
record your income for the same time period and make sure
that you are not spending more than you make.
Sure, everyone gets behind occasionally. But you need
enough room in your budget (this means spending less than
what you make) to accommodate the "budget busters" and
surprise expenses that may come up. It may mean
cutting back on cable, magazine subscriptions or eating
out. But last time I checked, McDonalds did not charge
a $15 "fee" for making your food.
About the Author
© Simple Joe, Inc.
David Berky is president of Simple Joe, Inc. which sells the
Simple Joe's Debt Eraser PC software. Debt Eraser can help
anyone get out of debt quickly and inexpensively by creating
a href="http://www.simplejoe.com/debteraser/index2.htm">Rapid
Debt Reduction Plan. This article may be freely
distributed as long as the copyright, author's information
and an active link (where possible) are included.
|
|
|
|
|
| Cheap Loans | car, personal & secured homeowner loans ... |
| Compare over 400 UK personal (unsecured) and secured homeowner loans, including car loans, to find the cheapest deals... |
| www.moneysupermarket.com |
|
| E-LOAN: Mortgage Refinance, Home Equity, Auto Loans, Savings ... |
| E-LOAN offers home mortgage, refinance, home equity loans, lines of credit, auto and motorcycle loans, savings accounts and CDs with great rates online. |
| www.eloan.com |
|
| Loan Center - Yahoo! Finance - News, Education, Daily Rates and ... |
| Loan Center - The Yahoo! Finance Loan Center provides useful tips, calculators, and rate data to help you choose an auto loan, mortgage, or personal loan ... |
| loans.yahoo.com |
|
| FREE LOANS QUOTE - the customers champion. Finding you the right ... |
| COMPARE! Let us get you a loans quote with minimal fuss. We're the UK specialists. |
| www.moneyweb.co.uk |
|
| Personal Any Purpose Loans : Loans.co.uk : Personal Loans UK |
| Offers consumer loans for any purpose in the United Kingdom. |
| www.loans.co.uk |
|
| FinAid | Student Loans |
| An education loan is a form of financial aid that must be repaid, with interest. ... The interest rate on the Stafford Loan for new loans first disbursed ... |
| www.finaid.org |
|
| GovLoans.gov - Find the Right Loan for You |
| GovLoans is a partnership of many Federal agencies and organizations with a shared vision - to provide improved, personalized access to government loan ... |
| www.govloans.gov |
|
| Loan - Wikipedia, the free encyclopedia |
| Bank loans and credit are one way to increase the money supply. ... Abuse in the granting of loans is known as predatory lending. ... |
| en.wikipedia.org |
|
| Mortgages, Refinance, Home Loans, Home Equity Loans at Quicken Loans |
| Online lender offers simplified residential loans and competitive mortgage rates. Headquarters in Livonia, MI. |
| www.quickenloans.com |
|
| Mortgage Loans - Compare Mortgage Rates - MSN Money |
| Get a mortgage loan that’s right for you. Compare mortgage loan rates of top lenders. |
| moneycentral.msn.com |
|
| The Student Loans Company Ltd. |
| Provides details of the Student Loans system which is part of the Government's financial support package for students. |
| www.slc.co.uk |
|
| Sallie Mae - Private Student Loans, Stafford, PLUS, Student Loan ... |
| Apply online for federal and private student loans, consolidate student loans; financial aid and scholarship information for college, graduate school and ... |
| www.salliemae.com |
|
| Loan Guaranty Service, Home Page (U.S. Department of Veterans Affairs) |
| This page provides content and information related to the Loan Guaranty Home Loan Program. |
| www.homeloans.va.gov |
|
| Fool.co.uk - Compare Loans - Personal Loans and Unsecured Loans |
| Compare over 200 UK loans including personal loans, secured loans, and unsecured loans. Search all loans and apply online. |
| www.fool.co.uk |
|
| LendingTree Home Loans | Refinance | Home Equity | Mortgage Refinance |
| Service network of lenders that enables consumers to compare rates, apply for and get approval for competitive auto loans online. |
| www.lendingtree.com |
|
| Direct Loan Home Page |
| The US Department of Education's lending arm for students in participating schools and student loan consolidation. |
| www.ed.gov |
|
| Personal, home equity loans for union members at Union Plus |
| Union Privilege offers Union Plus benefits -- including credit card, mortgage, loans, insurance, scholarships, health care savings and other discounts -- to ... |
| www.unionplus.org |
|
| Countrywide Financial - Home Loans - Equity Loan Mortgages ... |
| Countrywide Home Loans is the nations largest independent mortgage lender offering home equity, HELOC, refinance, mortgages, debt consolidation and other ... |
| my.countrywide.com |
|
| Secured Loans UK - Secured Personal Loans - accepted.co.uk |
| We search over 200 secured loan plans to find the best deal from our lenders - accepted.co.uk. |
| www.accepted.co.uk |
|
| UK Loans : Personal Loans, Secured Loans, Cheap Loan Quotes |
| The UK Personal Loan Store offers comparisons of the UK loans, personal and secured loans. Also offers tips, articles and latest loan news section. |
| www.ukpersonalloanstore.co.uk |
|
|