Short-Term Borrowing: Pros, Cons and Why

Of course debt is to be minimized and avoided. We have all heard this time and time again. But not everyone’s life circumstances are perfect. What were once two-earner households are now one-income households. That will stretch a budget very thin very quickly. Throw in a healthcare problem, an expensive (and poorly-timed) car repair, on top of an underwater mortgage, and you will find that life can be quite imperfect, despite all your best efforts.

These are the grey areas, the shaded nuances of personal finance. You can be a frugal and restrained shopper. But while your weekly savings from coupon clipping might be $75 or $100, that $5000 deductible on your health insurance can wipe out a year’s worth of savings in one playground accident. So how do you manage? Particularly if you lack a rainy day fund or credit line with a credit card issuer?

Short-term loans are one option. Even if you have imperfect credit and no collateral to offer, you can get one in the form of a payday loan advance. These are designed to be small and paid back within 30 days or less (on your next payday). It’s emergency money for times that absolutely call for it, with three distinct benefits:

1. Psychologically easier – These loans do not ride on your back for months and years, as is usually the case with credit card debt. You know that it is a necessary financial tool, but that you will settle up the debt in just a few days or weeks.

2. Long-term financial damage is limited – The comfort is more than psychological. A short-term loan is far less expensive than one held for the long term. The cost of debt always rises with the longer that debt is held.

3. Reduces the negatives of missing due dates – Short-term borrowing is often done to make timely payments on key bills. If you make a required payment on certain debts, you avoid penalties, higher interest charges and poor credit reports.

For the busy working person, the other benefit is that with online technologies these are faxless payday loans. The time required to process an application is about five minutes and can be done any time, day or night, from one’s personal computer.

The Importance of Your Credit Report

Credit Card Bureaus are companies that help the company find the credit rating of the potential person wanting to obtain money. Most of the times, banks or credit bureaus, credit card companies or stores want to find as many clients that are a good credit risk and those who are not. They use credit reports to find those who qualified for the loans and help in determining what kind of rate to offer them.

If a person attempts to get a credit card or a loan, the company will make its acceptance decision of the application based on the personal credit report. If the report is shown in a good light and displays that you have been worthy with your credit history in the past, your loan or credit card will be seen as low risk and probably approved. If there have been late payments or if there is default in repayments of loan installments, this will affect your chances to obtaining the loan. Many Americans suffer from making bad on their loans, showing a pattern of defaults. This is the worst thing that can happen to your credit rating. If at all possible make sure that you contact all the companies if you are having trouble and work a solution with them.

Many times we end up having multiple accounts with many different companies. We might fall behind on a couple of payments and feel like there is no hope in catching up. This is the most crucial moment in your credit life. Don’t fall prey to letting it all go. You must stay on top of these payments and keep up.

Credit reports contain detailed personal information about a client. This includes your housing record, place where you work, income level, and other financial information. This information gives the creditor insight about how you pay your bills, how you have been able to pay your credit in the past, and whether you have had financial troubles. Having troubles in the past will not be an automatic disqualifier. If you can show that you are now back on track and have your accounts in order you will still in good shape.

If for some reason you are denied a personal loan or a credit card, you have the right to obtain a copy of the credit report the company used to determine of you get the loan or card. There are federal guidelines that the companies have to follow and gives you recourse if you believe the findings are wrong or false. The report will tell you all of the information on your account, the positive and the negative. This is why it is important to obtain a copy of the report BEFORE you attempt to get a loan.

Having your credit history in order is always a good idea not just when you are trying to get a loan, but for your general credit worthiness. Credit will always be a part of your life, it is always in your best interest to have a positive report.

Getting Student Loans

Almost all prospective students are faced with doubts about college affordability. And indeed it may be a big trouble especially for students who haven’t saved money for college. Student loan is one of the easiest loans to get. All you usually need is a reliable co-signer, and you can get a good sum of money to pay for the college expenses.

Student loans have very flexible payments system. You don’t have to start paying the loan while you are a student and another nice thing about these loans is that they are interest free. There are 2 types of student loans: federal loans and private ones.

There is a wide range of federal loans you can choose from. These loans are usually granted for applicants who experience a financial need. Moreover, there are some requirements for a federal student loan:

• You must show a financial need;

• You must be studying for an eligible degree or programme;

• You must maintain satisfactory academic progress;

• You mustn’t be in default on a federal student loan.

If you are not eligible for a federal loan, you can always try to find a private one. Every private student loan has its own requirements, but as a rule they are not difficult to fulfill. Students qualify for private loans mostly based on their credit score. Be sure you have really exhausted all possible federal loans and scholarships before turning to private loans, whose rates are usually variable, and therefore susceptible to market conditions, as opposed to a fixed rate loan, which you can get from the government.

When A Loan Modification Should Be Used Rather Than Debt Settlement or Debt Consolidation

A loan modification, debt settlement, and debt consolidation all accomplish the exact same thing. Each of these options can help to lower your monthly expenses. But a loan modification and debt settlement can actually eliminate a portion of your monthly debt, where debt consolidation will not. Debt consolidation will also require a min. credit score to qualify, where the other two options do not (in general)

Here is a brief overview of these three options:

Loan Modification

A loan mod is when the terms of a mortgage are changed to make it more affordable for someone who has experienced a hardship. In most cases, you will need to be behind on your payments and will need to prove your hardship to qualify.

There are three areas of a loan that are changed when a modification is approved. In some cases only one of the loan circumstances are changed, while in others, all three are changed.

1. The term of the loan
2. The interest rate of the loan
3. The payoff amount of the loan

By changing any of these three items (or all three if you are a good negotiator), the monthly mortgage payment will be drastically reduced.

Debt Settlement

This option is similar to a mortgage modification, because the term, rate, and balance are generally reduced for unsecured debt. Debt Settlement is not intended for mortgages, but can be used along with a loan modification. Debt settlement generally refers to reducing the balance or interest rate of unsecured debt (credit cards, mainly). In most cases, it's possible to take credit card debt that may have never been paid off otherwise, and reduce the balance and establish a fixed repayment plan. This allows the debtor to pay the debt of in just a few years, opposed to the rest of their life.

Debt Consolidation

Debt consolidation is the process of getting a larger loan and paying off a bunch of smaller loan. Generally this is done to get a lower percentage rate. Good credit is required, or enough collateral to secure the loan. Most debt consolidation loans are secured with real estate. A second mortgage or home equity line is common examples of a debt consolidation loan.

Each of these options can have a negative impact on your credit, however, they should all be a better option than bankruptcy (for your credit). If you have having financial troubles, or if you have to pick and choose which bills are paid each month, then it's time to start looking for relief. There is no reason to struggle each month because you are ashamed to ask for help.

Your Mortgage Company and/or credit card companies have put you (and most of America) in this position and it's time to take back control! Get your life back on track today by considering one of the options above.

Make your Christmas more enjoyable with a Christmas Loan.

Although we are going through global financial crisis, but Christmas cannot be avoided. You may not have saved much for Christmas, but this festive season cannot be put on hold. They are lot of expectations of your family members when it comes to holiday season, and in such situation, Christmas loan can help you to overcome your financial stress.

Christmas loan is basically a personal loan and comes with low interest rates. The requirements are quite simple: you need to have an average credit score and a fixed monthly income to afford the monthly payment. Christmas loan is for everyone and anyone can apply for it.

You can get a Christmas loan from local banks and also from private lenders. There are many private lenders who offer a Christmas loan in a quick time. You can be sure of getting a loan from these lenders, as they have a high approval rate than other local banks. Even if you have bad credit, you can get a Christmas loan from private lenders.

Wishing all of you a very happy Christmas

Bad Credit Home Loan Refinance

At present, it is seen that a huge percentage of persons are having a bad credit score. The credit crunch has knocked the economy pretty hard and we are now desperately looking out for several ways to save as much money we could save in order to minimize our total financial burdens.

Refinancing your personal home mortgage loan can save your lump sum amount of money in the long run. Most people believe that refinance is only necessary after having a drop in interest rates. Of course, your previous mortgage loan must have a high interest rate that it's possible for you to switch over into a lower interest rate loan. One of the possible & best ways of availing this is by refinancing your personal home mortgage loan. Mortgage loans are generally covers a big amount of money. If you can save few percentage points of your interest by any means, then this could easily saves up your thousands of dollars.

But what if you are having a bad credit history? Will it be still possible to refinance your home mortgage loan? Of course it is! It seems harsh, but this is the reality of this present situation. If you have imperfect credit history in your pocket, this will definitely makes you a high risk borrower to your lender. In order to save him from uncertain losses in future, your lender will increase the interest rates gradually which you have bound to pay for your bad credit home loan refinance.

The moral is that if you can choose your personal home mortgage loan refinancing plan wisely, you will gradually decrease the monthly payments which you have to pay. So make your monthly payments towards your loan in time and make improvement in your credit score to qualify lower cost saving home mortgage loan in future.

Lower Your Mortgage Payment With a Loan Modification

Debt consolidation and debt settlement are both great ways for lowering unsecured debt payments. But since your mortgage is probably your highest monthly payment, it makes sense to get it lowered as well. This is easily accomplished with a Loan Modification.

A loan modification is when your lender permanently reduces the mortgage payment by lowering your interest rate, reducing the balance, and/or lengthening the term of the mortgage. This process can drastically reduce your payment and has helped 1000’s of people avoid foreclosure.

Although most lenders will force you to miss payments before approving a loan modification, it’s not always necessary. Even if you are current on your mortgage, a loan modification is possible. You just need to prove you’ve experienced a hardship and that lowering the payment is necessary for you to continue making timely payments.

If you are facing foreclosure, or if you would like to get a loan modification, the first step is to contact your lender and ask for help. In some cases, you can get a loan modification approved on your own, by simply talking to your lender. But more often than not, you will need to hire a professional to negotiate on your behalf. By hiring a professional, you will ensure that your loan modification has the best chance of approval.

When searching for a professional, we recommend finding a company that does not charge large up-front fees and has been in business at least 5 years, with a good track record. It’s important to avoid new companies or people who charge large up-front fees.

Remember these tips when trying to get a loan modification:

1. Always submit a complete package, including all proof of income or other supporting documents.
2. Don’t wait until the last minute to take action! A loan modification can take several months to complete, so take acting quickly will help you prevent foreclosure.
3. If a representative at your lender is not cooperative, try calling back to speak with someone else who may be more helpful.
4. Never become angry or rude with the representative. You need their help with the modification, so treat them with respect.
5. Follow up as much as possible. You will need to verify all faxes and continually contact your lender to make sure the loan modification stays on track.

If you have had a financial hardship that reduced your income, then you may qualify for a loan modification. Take action today and contact your lender to begin your modification.

Help With Your Loan Modification

Homeowners who are struggling to make payments on their home loans can now use loan modification help to convert their high-priced loans into smaller, more affordable monthly payments. Find out what lender loan modifications are and see if you are eligible to qualify for them. The following are some of the questions you might ask if you are going to apply for a loan modification and the answers to your questions:

• What qualifies you for loan modification help? If you have been a victim of a financial tragedy or have an adjustable rate mortgage then you might be eligible to qualify for a loan modification which will lower your monthly mortgage payments.
  

• How does the lender decide how my new lower payment will come to be? This varies from bank to bank so you should check with your bank and find out what their rate is. Usually most banks will make the payment anywhere from 37-41% of your gross monthly income.
  

• Will my interest rate be decreased? Most loans involve one or more of the following: A lower interest rate, principal forbearance, a more spanned out loan term, or an interest only period. Generally, there will be a combination of any of these scenarios to arrive at a lower mortgage payment.

• What about all of the numerous penalties and fees that were added to my loan? In most situations the lenders will void the fees and penalties; this is part of the loan modification program. You will still be responsible for the payments that you missed, however they will be spread out over the term of your loan.
  

• What is the cost of loan modification help? When you apply, the bank will not charge you, but you should be ready to make a payment once you come to terms with the loan workout. At the beginning of the loan modification, most lenders will ask you to provide them with the first five months payment.

• How can I find out what programs are available to me? You will need to speak to someone in your bank’s loss mitigation department and request an application package. The Complete Loan Modification Guide can also assist you with learning about the various programs as well as helping you set up and send you package for reviewing.
  

• Do you have to have a bad history with your payments to get help? Most lenders do not require this; however you will face an interest adjustment rate or a reduced income in the future. Homeowners who are in danger of losing their homes will be given first choice for this service. Just remember, the sooner you submit an application, the sooner you will receive help.

• Which is better: Going through a loan modification company or using my bank? In most situations using your bank is the better choice. A lot of these loan modification companies do not know what they are doing and do not guarantee you success. If your specific case is complicated then you should seek out an attorney with experience in this field.
  

• How is do-it-yourself loan modification? To successfully do this you must do research in this field. Plenty of borrowers have modified their loans successfully and you can too. A knowledgeable homeowner, who is persistent, should have no problem receiving loan modification help from the lender of their choice.

• Where do I begin? There is an easy to understand handbook that will take you through this process step-by-step so that you can get the results that you desire.

Bill consolidation: Pay off your debts faster

Bill consolidation is an arrangement to consolidate all your loans and debts into one bill consolidation loan. Instead of paying for each loan and debt separately, you only need to make one easy to manage payment for all. Bill consolidation loan also lowers the interest rate and help you to pay off your debts faster.

There are many bill consolidation companies who can advice you for the best offer for your situation. They should be able provide you with the best offer and lower interest rates. So before you make a decision of getting a bill consolidation loan, don't forget to compare the interest rates and other terms and agreement with other bill consolidation companies.

Bill consolidation companies have skill to negotiate with your creditors and make a settlement. Sometimes the creditors may waive any late fees for other charges. They also try to lower the interest rates with your creditors. You need to make one monthly payment with the bill consolidation company, which they use to create a consolidation account and make payments. It also includes their fees. There are some interest rates like student loans and mortgage payments that cannot be consolidated.

Monthly fees are the better option to pay bill consolidation companies, as many clients drop out before in between. Although many companies charge an upfront fees which can be a large amount.

While searching for a bill consolidation company, try to look for those who only deal with bill consolidation. Companies who provide various services usually don't have a good record. Once you choose a company, remember to ask when your accounts will be fully paid. Also check your statements regularly.

How Payday Loans Work

Payday loans are short terms loan to get some fast cash when you really in need. Well, before you go ahead you should understand costs and risks with Payday loans.



Payday loans are known with different name. Some call it a check advance loan and some call it cash advance loans. Many call it a post-dated check loan and another name is a deferred-deposit check loan. The Federal Trade Commission has given another name and that is "costly cash". It's doesn't matter what you call it. It's the same thing: a short term loan with high interest.

Payday Loan Terms

Payday loan amount range from $100- $1000 and average loan term is two weeks. It cost around 400% annual interest (APR) or may be more that. The finance charge to borrow $100 ranges from $15 - $30.

Qualifying for Payday Loan

To get a Payday loan all your require is a active bank account with good standing, steady income source and identification. Payday loan lenders generally don't check your credit report.

Basics of Student Loan

Student loan can be obtained from two sources - The federal government and private lenders. To get federal student loans, you are required to file the Free Application for Federal Student Aid (FAFSA). There are three main categories of federal loans.

1. Student loan (Federal Stafford loan)
2. Parents loan (Federal PLUS Loan)
3. Federal Graduate PLUS Loan
4. Consolidation loan (Federal Consolidation Loan)

Federal Student loan is made in the name of the student and doesn't require a credit check. The repayment options are very flexible. Need to repay after the student graduates or leave schools or stop attending. Stafford loans are also directly offered by some schools. These are known as Direct Stafford loan.

Plus loan is made in the name of parent, where credit check of parent is required. However, the credit criteria for plus loan is different as compared to other loans. It's based on federal requirements. Here the repayment option is different than Student loan. In plus loan repayment starts after full the loan amount is fully disbursed. Some school offer parent loan through federal government and some through banks and private lenders.

Federal graduate plus loan is quite similar to plus loan. The only difference is that it's made in the name of a graduate student or a professional student. Here the repayment period is sort. You need to repay within 60 days after the loan mount is fully disbursed.

Consolidation loan is for the students who are still repaying their student loan or for parent who want to extend the repayment period of the Plus loan. You can consolidate all your student loans with Federal Consolidation loan. In consolidation your interest rate is fixed and can also lower you payment by extending repayment period.

If your education expenses are more than what you get in Federal student loan, you can go for private loans. Private loans are offer by banks and other lenders. Here you don't get the federal benefits.

Relief for homeowners and mortgage borrowers

The Obama's new mortgage plan is in progress and hope to be in effect soon. Six participants have signed up for President Obama's loan modification plan, which includes 3 of the nation's largest banks, reported by The Treasury Department.

1. JPMorgan Chase (JPM, Fortune 500), which will get up to $3.6 billion
2. Wells Fargo (WFC, Fortune 500), $2.9 billion
3. Citigroup (C, Fortune 500), $2 billion.
4. GMAC Mortgage, $633 million
5. Saxon Mortgage Services, $407 million
6. Select Portfolio Servicing, $376 million.

More loan servicers will join over time, said by a treasure spokesman.

The major loan servicers have already started modifying loans earlier this month under government initiative. This includes JPMorgan Chase and Wells Fargo. And Citigroup will start soon.

Homeowners and borrowers were desperately waiting for the program to launch since it was announced in the month of February this year. Under this modification plan, the servicers will reduce interest rates in such a way that the monthly installment should not go beyond 38% of pre-tax income of a borrower. It can be reduced to 31% by government. Loan amount can also be reduced to affordability levels by servicers. Government will share in the cost that the servicers will reduce.

"We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership," Wells Fargo said in a statement.

It's great news for mortgage borrowers. It will help up to 9 millions borrowers’ to stay in their homes and own it completely. I really appreciate the plan and step taken by President Obama to help homeowners. I'm waiting for this modification plan to start in full flow.

Great American cars at low price.

Present economy and low auto sale have brought the price down for some great American cars. The auto sale counts are such low that car manufacturers and dealer have decided to low down the price to get the things moving again. Now you can get some great cars at really amazing prices. This is the right time to buy a car if you are planning to get one.

We are aware of the present market status and fear to invest or hesitate to purchase a new thing even if we get it for an unexpected price. As our economy is in recession, we tend to save money and spend as less as we can, however, you won't get such offers when the market go up and our economy will get back to normal again. So in my opinion it's the best time to purchase a car if you plan to buy it later. You can go for a car loan and get it now.

As per the real-world pricing data by Vincentric for AOL Autos, many American trucks and cars prices are going down below dealer's wholesale price. This includes some top most and competitive cars.

Check out few cars and their prices:


Cadillac CTS

Sticker price:
$36,560 - $40,760

Wholesale price:
$34,366 - $38,314

Market price:
$30,607 - $34,500

Ford Flex

Sticker price:
$28,550 - $36,810

Wholesale price:
$26,842 - $34,072

Market price:
$21,725 - $28,654





Pontiac G8

Sticker price:
$28,250 - $37,610

Wholesale price:
$26,979 - $35,918

Market price:
$24,028 - $33,060







GMC Acadia

Sticker price:
$31,890 - $40,490

Wholesale price:
$30,136 - $38,263

Market price:
$27,020 - $34,095

Loan Modification: Get a new start and save your home

Loan modification is a revised agreement between the borrower and lender with new interest rates and terms. It's a great tool for borrowers to avoid foreclosure or bankruptcy. Banks or lenders agree for loan modification only if they believe that the borrower won't be able to repay the current loan with current terms and interest rates.

If you are able make regular payment now, but can't catch up with the past dues, you can negotiate with lender/banks for the past due amount including interest and principal. Once the lender agrees on this, you will get a new period of time to repay for the new amount.

Or if you are unable to pay with current interest rates, you can negotiate with lender to extend the time period. The loan amount can be modified to affordable level.

In few cases the banks or lender can consider reducing the loan amount that you currently owe and also can lower the interest rates. It's up to your negotiation and the lender to consider it.

Considering the present market status it is of sure to get the loan modified, as the banks and lender are aware of the financial crisis. They know that if they don't give a chance to borrower to repay the amount with their affordable level, they might not get their money at all.

A loan modification can change current mortgage and help you to get a fresh start to manage your financial status and save your home.

Make your holidays a memorable one

Holiday season is around with Christmas and New Year. It's time to buy gifts and go out and enjoy your holidays with your family. When we think of going out the first thing that comes in our mind is to bear the expenses. Though it's a happy time, for others it may create a financial burden. Many don't have enough money to go around. Well, nothing to worry about. There is an option of getting Holiday loan so that you can enjoy your holidays and get out of financial burden.

Holidays loans are only available during holiday seasons to support your financial status. There are various types of holiday loans to choose as per your need...such as if you want extra cash for your holidays or don't want to pay off the loan right away, or if you are looking for fast cash, or if you have a bad credit or want a completely free holiday loans (depending on certain conditions).

As compare to credit card, its better to go for a holiday loan as the interest charged against the loans is lower than interest charged for credit card. Basically, holidays loans can be secured or unsecured. To get a secured holiday loans, you will be required to put forth your home as security, where as unsecured holiday loans don't required a security. So it's preferred to go to a unsecured loan rather than a secured holiday loan.

To apply for a holiday loan, all you have to do is search for the holiday loan sites and apply online or can also contact them directly if you know any bank or financial firm that issue holiday loans.