The versatility of personal loans makes them attractive to consumers in need of extra funds. Personal loans can be used for helping consolidate debt, to renovate or remodel your home, financing travel, or anything you desire. Whatever you need the financial help of a personal loan for, you can’t afford to make mistakes when choosing the best personal loan for your needs. Mistakes could hurt your finances for years to come.
To get the best personal loan for your circumstance and to keep your finances healthy, avoid these mistakes:
1. Failing to compare options
Don’t settle for the first personal loan offer you receive. Interest rates, fees, and terms can vary immensely between lenders. In addition to checking with your bank or credit union, check with online lenders for offers. Competition between online lenders is stiff, so many will offer you lower rates than you’ll find with your bank or credit union.
2. Overlooking fees
Many borrowers are looking at the loan rates when comparing loan offers. Borrowers who overlook the fees and costs of each loan may end up paying far more than expected. Many lenders charge an origination fee. The origination fee is typically calculated as a percentage of the amount borrowed, usually 0.5%-2%.
3. Lying on the application
Not only is lying on your application illegal, but it can also hurt your chances of getting approved for a loan. Not all lenders check all details of your application so a lie may not be noticed, but if a lender realizes you gave inaccurate information, they can deny the loan. If the loan has already been issued and the lender realizes you lied, they can consider the loan a default and immediately ask for repayment. Be honest with lenders.
4. Skipping over the fine print
Before signing a loan agreement, lenders should always review ALL of the contract. Reviewing allows you to notice things like fees or terms that may differ from your first offer. Be on the lookout for hidden details because they can be proof of the lender being a predatory lender.
5. Not changing spending
If you’re borrowing a personal loan to consolidate debts or because you’ve mismanaged your money, you risk ending up in a worse financial situation if you borrow a loan and don’t adjust your habits. Before taking out a loan, borrowers should revaluate spending. Adjust your budget to avoid being in even more debt after you take out a loan.
It’s tax season! For some, this means we have cash to look forward to. For the remainder, it means another bill. Tax day 2018 is Tuesday, April 18th. If you’re one who owes and find yourself unable to pay, what should you do? First, you should make sure you at least file your taxes. Don’t let your inability to pay to keep you from filing. There are options if you find that you’re unable to pay:
Get a short-term payment extension
You can apply for a short-term payment extension through the IRS if you know you can pay the full amount owed in 120 days or less. The application can be done online at IRS.gov or by calling the phone number on your tax bill.
Apply for a payment plan
Using Form 9465, you can apply for a payment plan if you owe $50,000 or less. The process can also be completed online or on the phone. The IRS charges a low fee for payment plans, but it may be your best option depending on your credit card rates or financial issues.
Settle for less than you owe
The IRS may offer you the option of an Offer in Compromise (OIC). The OIC allows you to settle the tax amount you owe for less. Offers can vary, but it’s worth looking into if you find yourself struggling to pay your tax balance.
Consider a personal loan
Depending on your credit card rates a personal loan may be the best option to pay your tax debt. Personal loans often offer lower rates than those on credit cards and may offer a fixed term, rate, and monthly payment for you. You can check your rates and offers without impacting your credit score by filling out our quick form.
Pay with a credit card
Not the ideal option, but an option nonetheless. The IRS accepts the major credit cards, and payment can be done online or by phone. Credit card payment should not be the first option you choose because the interest and fees you’ll pay can add up quickly and hurt you financially.
Whatever your situation is, don’t avoid the IRS. Tax bills won’t just disappear, and failure to pay can lead to your passport being seized. Don’t be afraid to give the IRS a call. They’re willing to work with you if you reach out.
While many people are spending cash like it’s going out of style, it’s crucial for you to save money for future expenses. You might find the following five ideas helpful in establishing a savings plan.
1. Develop Your Long-Term Savings With a Payroll Deduction
Determine an amount to be taken from your paycheck and deposited directly into a savings account. Like income taxes, you never see the money allocated to savings so you won’t miss it. Avoid spending the money on daily expenses instead of saving it. Spending it defeats the purpose of having long-term savings.
Examine your net income and your monthly expenses. What’s left over is your disposable income. Take a fraction of this, say 15%, and set that sum as your savings deduction. You will be surprised at how quickly the money piles up.
2. If You Have an Existing Loan – Pay it Back Right Away
If for some reason you need to take out a loan for some emergency, it’s crucial that you choose to pay the loan back as soon as you can. When your loans are paid off, you’ll gain the use of all of the interest lenders were charging you.
It is especially important to begin paying off high-interest credit card debt. You may want to take out a credit consolidation loan at a lower interest rate to make it easier to pay off your credit card debt.
3. Establish a Rewards Savings Account Funded By Budgeted Savings
Set up a budget to help rein in your spending. Put each and every dollar you don’t spend because of the budget in a special “rewards” savings account. Keep an eye on the total you are putting into the account and make sure it’s in an account where your money is earning interest.
Use a fraction of this cash each month to buy something as a reward for your budgeting efforts. As you can tell, this can act as an incentive to create a healthy budget and stick to it. The more you save this way, the more significant your reward may be.
4. Financial Planners Have Their Purpose – And It May Not Be With You
Be cognizant of the motives of financial planners. Financial planners are in the business of making money and might be selling you products which will make money for them at your expense. You will find a lot of free advice in books, magazines, and online. Avoid paying additional money for suggestions you could discover on your own for free.
5. Invent New Ways of Saving Cash
This article has supplied you with several techniques to save, but there are much more available to you. Learn more by reading or talking with other people. There are easy plans that can be successful for you. The important thing is that you stick with a plan, improve it to suit your circumstances, and save cash as well as grow to be debt free. It does not matter which approach you pick.
Whether or not you decide to use a number of the above ideas or use your own techniques, you need to get organized. Once everybody is on board and is adhering to the plan you’ll be surprised at how powerful having a plan is as you see your financial condition strengthen.
Debt negotiation aid is readily accessible for those in need of assistance with overdue payments and dissatisfied lenders. Unfortunately, too many individuals find themselves in a financially dangerous situation with seemingly no predictable way out. The process of negotiating several overwhelming debts can seem complicated; but, people who need such services should rest sure that there are alternatives accessible to them. The internet can be a perfect source of information as there are a lot of financial establishments with websites full of advice and information covering a wide range of debt negotiation data.
There are many methods used to approach debt negotiation. Individuals can opt to take problems into their own hands and personally call the lenders who they owe money, in the expectancy of clarifying the situation and finding a decision that both parties are willing to accept. For individuals who do not want to have to call lenders straightforwardly, there are a variety of companies that offer services to do this job for them. Many companies specialize in different financial deals such as debt negotiation. When a person turns to the services of such a company, a personal account is settled for them which is added to a particular amount of finances on a monthly basis. Once a specific point is reached, the settlement company will deal with the lenders with the expectation of negotiating a decision that all parties find agreeable.
A vast amount of debt negotiation information can easily be accessed, containing advice which belongs to cases which should be eluded if possible. To be sure not to be taken advantage of, an individual should find a legal debt settlement organization. There are reports of particular organizations have taken advantage of consumers in ways such as charging excessive fees and additional expenditure on top of a constant monthly rate. Prospective consumers should also do enough examination into a company’s authenticity. No papers should be signed, or verbal agreements implemented until a consumer has made sure that the chosen company has a history of satisfied consumers. Scams are not rare when dealing with settlement companies. Individuals who deal with a company online or over the phone must be cautious that they are dealing with a legal company and not falling for a fraud.
Today one should know how to find credit repair companies that genuinely deliver. Too many credit repair companies are fighting to get you as their loyal client, but surely not all of these companies are equipped to assist with credit repair appropriately.
Increase your spendable income by paying off debt. You can make use of all the interest you have been paying as soon as you have paid off your debt.
An increasing number of people are becoming anxious about all of the money going out the door for interest payments. Specifically the biggest monster, the home mortgage. When you make your last mortgage payment and at last have the mortgage burning party you can sleep sounder at night. It’s a great feeling to be out from under that heavy weight of debt.
On the other hand, because your mortgage is the best source of low-interest loans, it’s possible you’ll wish to use your money in different ways. It may be less challenging to refinance your mortgage to help pay off other loans while you still have a mortgage than trying to receive a new mortgage.
Other debt may be more important to pay off first. With the average household having around $16,000 in credit card debt, it’s unquestionably more critical to pay this debt off first. It goes without saying that once you pay off those credit cards, then never use them again to build up debt. Recognize that credit cards may perhaps be a necessity in today’s world, but pay off your balance every month.
After paying off your more substantial debts, you might want to think about other uses for the money you once allocated to interest. Maybe you should think about investments. It will not always be wise to put all of your investment eggs in one basket. All financial planners would agree that diversification is essential in any investment portfolio. By having your mortgage paid off, you finally own a real estate investment: your home. Use your money to help you build your wealth in many diverse areas.
There must be a good reason to pay off your debt. The majority of people only think of shopping for more goods and services. You need to think about your future. Developing your family’s wealth could be one of the best reasons for paying off debt.
Once you have declared bankruptcy, it’s unfortunate that many of the things you need or want in life still involve credit. Home loans, auto loans, and many other significant purchases demand proper credit ratings. Negligence in timely paying bills can make credit scores plunge. This article can help you improve your credit score when you have been declared bankrupt.
Create a Debt Payment Plan
Create a plan to repay your debts. Until you’ve repaid your debts, they will still appear on your credit report, but continually making current payments will reduce their negative impact.
It is difficult to forget about negative reports, but writing a statement is unproductive. A statement will only draw further attention to negative reports on your credit history.
Foremost, if any of your credit card balances are above 50% of your credit limit, pay them off as quickly as you’re able. At the minimum, pay them off until the balance is less than 50% of your overall limit because once balances top 50%, your credit rating drops. When you reach that point, it is optimal to pay off your credit card balances collectively, but if you’re not in a place where you’re able, try to spread the debt at least out.
Remember debt collectors are not allowed to threaten you. Threats should be on record and reported because they are illegal. You should stay informed about the laws that safeguard consumers’ rights when dealing with debt collectors.
The fastest means of improving your credit score is to focus on paying off your outstanding debt. If you are not paying off your debt, your credit will suffer.
If you are late with your payment, your credit status will take a hit. Your credit report will reflect your history of late payments and will make it challenging to attain credit or loans in the future.
Keep A Check On Who Sees Your Credit Report
If you want to improve your credit score after bankruptcy, don’t let anyone pull your credit report unnecessarily. Everytime someone views your credit score, an inquiry is noted in your report.
Pay off your bills before attempting to repair your credit. Credit counseling can be beneficial as well.
You should review your credit card bill every month to make sure it is free of errors. If you find errors such as unknown fees and fraudulent charges, contact the credit card company immediately to have the bill corrected.
Keep Your Credit Card Balances Low
The balances of your credit cards should be kept as low as possible. When your credit utilization is closer to the limit than not, your credit score reflects it, even if you’re making all payments on time.
The first step in rebuilding credit after bankruptcy necessitates a careful and comprehensive check to make certain your credit report is free of erroneous information. Errors in credit reports happen, and it’s your responsibility to prove the credit bureau is in the wrong and to have them correct the reported error or remove it entirely.
Lower Your Card Limits
To keep yourself from the temptation to spend, ask credit card companies to lower your limits. Doing this will also show lenders you are taking responsibility.
When you’re working to improve your credit after bankruptcy but are having difficulty getting approved for credit to do so, try joining a credit union. Many credit unions have opportunities that other banks can’t match because they are local, and not limited by the same regulations.
Learn all you can learn about consolidation; it might help you to repair your credit. For some, consolidation of debt can save you from the seemingly neverending cycle of debt. Consolidation can also noticeably improve your credit score. Consolidation combines all debts into one bill, making debts easier to repay. Make sure you know the specific details of any consolidation plan you evaluate to determine if it meets your needs.
Dispute Erroneous Credit Reports
If you notice credit reporting errors, always file a dispute. Compose a letter documenting the dispute for agencies that have the error, and include all supporting documents with it. When you mail your dispute package, be sure to make arrangements for confirmation of receipt. In this way, you will have documentation that your information was received.
Be upfront about your situation with the collectors, and they may be able to make payment arrangements you can afford. Explain how much money you have available for payment, and tell them when you will make that payment. Collection agencies will always negotiate with you, and figure out a way to help you if you talk to them.
Challenge Interest Rate Rises
If your creditors attempt to raise your interest rates, you should challenge them. Many creditors charging high-interest rates are running the risk of having those rates disputed by consumers. However, you have entered into a legal agreement that requires you to pay accrued interest. Suing your creditors can be useful in some circumstances in cases where the court considers the interest rates to be excessive.
Don’t use credit cards often. Use cash only to make purchases as much as possible. If the purchase you’re buying is more than you can currently afford you can use a credit card, but pay it back as soon as possible.
Starting a program of debt consolidation after bankruptcy may be an excellent option to help you repair your credit and get on a healthy financial path. By merely combining all your debts into single monthly payments, you can significantly simplify your budgeting and expense tracking. It’s more likely you’ll pay on time, which will reflect positively on your credit report.
In the interest of repairing your credit score, you must have a plan that will help you lower your debt and make an impact. When you have existing debt, it negatively impacts your credit score and is a significant burden. Establish a budget that works for your circumstances, and use as much available money as possible to pay down your debt. The absence of current debt helps improve your credit score.
If you do need to take out a loan for any reason, remember that your credit score will affect your ability to do so and your financial future. The advice in this article can aid you, even if you have a low score and a significant amount of debt.
You can always opt for a debt consolidation personal loan if you are struggling with paying back multiple loan debts. Debt consolidation personal loans allow you combine all your loan debts into a single loan at a lower interest rate.
Debt consolidation personal loans are accessible as both secured and unsecured loans. You can opt for a secured loan if you have assets to offer as collateral. Secured debt consolidation loans offer lower rates of interest compared to unsecured loans. Since no collateral is required for an unsecured debt consolidation personal loan, you are charged a higher rate of interest because of the risk involved for the lender. Loan amounts can vary from a few hundred to multiple thousands of dollars, and repayment terms vary depending on lender and amount borrowed, often ranging from five to twenty-five years.
Because of rivalry in the market, you can obtain the loan at a lower rate of interest. You can receive it at an even lower rate if you qualify for a secured loan. Unsecured debt consolidation loans may be the only option to assist people with bad credit record, insolvency, defaults, etc. There are many institutions where you can obtain loans such as banks, monetary institutions, etc. but you do not have to look for the market for such loans. You can find the ideal loan for your situation online. Many applications can be completed online, often with better rates and terms.
If you are committed to paying back the loan and make payments on time, the loan will positively impact your credit history.
Debt consolidation personal loans are meant for those who are anguished with many loan debts. These loans consolidate all loan debts from many lenders into one, the single loan which should be paid monthly. Both secured and unsecured loans are available. You can select the one that best meets your needs.
Did you take out too many payday loans to meet your mid-month financial needs or to deal with a financial emergency? Payday loans are considered as one of the best financing options for borrowers who are in urgent need of immediate cash or for borrowers with poor or nonexistent credit. Although there are websites that are quick to promote the positive features of such short-term loans, failure to repay them can do damage to your credit report and scores. Because of the high-interest rates of payday loans, some people fail to repay the balance on their next payday and the debt can begin to add up. If you are one among them, have you considered relieving yourself of the debt burden through bankruptcy?
A payday loan is usually viewed as credit card debt and therefore both possible to remove through both Chapter 7 bankruptcy and Chapter 13 bankruptcy. The principal concern that needs to be reviewed is the date on which you’ve taken out that loan. Similar to credit card debt, if you’ve received the loan within the last three months or 90 days, there may be a presumption of fraud or abuse by the Bankruptcy Court. When a debt is viewed as a fraudulent transaction, the debtor requires the entire amount owed to be repaid in full. If the total outstanding principal balance that you owe is significant, you may be required to wait for more than 90 days.
Getting the help of an attorney while filing bankruptcy to remove payday loan debt
It is undoubtedly true that the best payday loan debt help that you’ll get is from the attorney who is helping you file bankruptcy. You should cooperate with the debt attorney by fully explaining details of the total amount that you owe, the interest rates that you’re being charged and the fees that you’ve accumulated. The attorney will work with you to help you fill out the bankruptcy petition form that will list any payday loans as unsecured debt.
Keep this vital points in mind while filing bankruptcy:
Don’t take out payday loans again in the weeks before you file bankruptcy for the same reason. If the court sees that you’re accumulating debt to defraud the court, the bankruptcy case may be thrown out.
Ensure that your attorney doesn’t encourage you to take out a payday loan. Even though you can’t pay off the fees of the attorney, a payday loan in this situation could do more hard than good when applying for bankruptcy.
If you file Chapter 13 bankruptcy for payday loans, this will be treated as any other unsecured debt, and you will need to reward the lender with as much amount as you would have given to your lender through Chapter 7 bankruptcy.
Inform your bankruptcy attorney of ALL details related to your filing bankruptcy.
When you feel overburdened with payday loan debt, you have the option to file bankruptcy and relieve your financial woes.
Personal financial success is often linked to how we perform in the long term, and nothing exemplifies that more than how effective we are in forfeiting many of our short-term gains. The fundamental question boils down to whether you are really up to the task of sacrificing your comforts in the short term to ensure you reach your long-term objectives.
Acquiring the habit of stashing savings away for retirement
If you are intent on saving for future needs, it necessarily implies that there will be less cash available for domestic needs. In some ways that could be a good idea because one learns to get by with lower income without inflating one’s demands. At the same time, it is also an undeniable fact that the money that you want to set aside for retirement could just as well help you make good lifestyle choices (organic foods, eco-green innovations) or sustain your favorite charity.
These are not bad choices by themselves, but you have taken a considered decision to save up funds to sustain yourself when the income dips and you have fewer resources to fend for your basic needs in a future that may be some decades away.
The challenge of keeping your assets liquid and accessible
The pessimist would argue that parking hard-earned savings in liquid assets such as high yielding online savings plans and Bank Certificates of Deposit won’t earn you half as much as more aggressive income-oriented growth stocks. But what this argument hides is the undeniable fact that high growth stocks extract a steeper price which is the risk involved in placing substantial funds that could turn bad and jeopardize a long-term investment plan.
Planning savings for the long term is fine as long as they do not compromise the accessibility of the same funds if and when you need that money in an emergency. The smarter and more sensible choice would be to keep at least a portion of savings in liquid instruments that satisfy short terms needs. At least it saves you the need to turn to credit cards and payday loans to fuel immediate cash demands that can’t be avoided.
How insurance helps you meet life’s emergencies without compromising your savings
It is an accepted fact that it is well-nigh impossible to meet all or most of life’s insatiable appetite for funds without a good insurance policy or two in your back pocket. We list a few essential policies that could become your most powerful safeguard against financial chaos:
2. The Life insurance policy that guarantees your family a source of income and livelihood when you are no longer a part of the scenery.
3. Disability insurance that takes care of your needs in the short term and long term when you are physically incapable of generating wealth and income.
4. Long-term health care insurance that keeps the home fires burning when your health lets you down and otherwise makes you a burden on your family’s limited resources.
5. Health insurance that is vital to sustain and overcome the high cost of healthcare.
6. Dental insurance that provides coverage and cost savings in a highly expensive area that impacts your overall health.
7. Auto insurance which is a statutory obligation ensuring that your life, your vehicle’s longevity and lives of others are protected in serious road accidents that would otherwise smother you in debt and damages.
Naysayers would argue that you stand to lose thousands of dollars protecting yourself from incidents that have a small likelihood of happening, but consider the downside if the inevitable happens and you are landed with hundreds of thousands of dollars in expenses and commitments that your family budget cannot hope to provide for. Imagine the devastation a car crash or a sudden illness or long-term disability could wreck on your personal finance if you were cut off from institutional support. Then insurance becomes a necessity and ceases to be a luxury.
The maintenance, upgrade and renovation routine
If we buy the best assets that money can buy to make our lives cozier and more comfortable it also becomes our obligation to service the assets and keep them functioning in top condition so that they last our lifetime (or beyond). If you maintain your car in roadworthy condition, you are priming the vehicle to extract maximum mileage and save on fuel and unwarranted expenses. Big ticket items all need regular upkeep and maintenance to last longer and contribute their might to maintaining your comfortable lifestyle.
Replacing items of value to enhance their worth and to save costs
Maintenance, repairs, and renovation can take you up to a certain point, not beyond that, only because most items come with a predetermined expiration date. Replacements are a part of life, and the astute householder plans funds to meet all such eventualities. If maintenance is a recurring expense, replacement is a long-term goal that can’t be avoided. If for example, you are grappling with a decade’s old HVAC system that is shooting up the energy bills significantly, paying over $6,000 for a replacement could be viewed as a financial investment in improved technology that yields healthy returns in the long term through reduced energy bills.
Paying off debt intelligently
Finance is an inseparable part of life; it’s the via-media for accumulating all that you deem to be essential to living (home, car, appliances and many other things) and getting the opportunity to pay off the debt in installments with interest spread out over a longer term. But the fact remains that you are taking these loans under certain assumptions – you are assuming that you will live long enough, you will continue to grow your income and savings, and you will remain hale and hearty until retirement, all of which are merely bets that may or may not pay off. One way of preventing yourself from falling into the pit of financial uncertainty is to repay loans to the extent that is possible and accelerate repayment in all other instances. Keeping ahead of debt payments ensure that sooner than later you become free of debt and avail opportunities to channel investments into profitable areas.
Deciding and executing significant ticket expenses
Much depends on how successful we are in rationalizing financial decision making. For example is it appropriate to spend considerable time and accumulating student loan debt if the degree isn’t going to make a substantial alteration in your income or skill sets? Is repairing a better option than replacement? Is replacement inevitable and considered a cost-saving measure in the longer term? Would you instead rent a home than buy one till your finances improve? Would you go for flexible rates of interest on the home loan or would you settle for a fixed rate anticipating a rate spurt in the near future? Finding the right answers could impact your finances and lifestyle tremendously.
Prioritizing your needs with a long-term perspective
It’s natural that you want to accomplish a lot by the time you retire but it is also challenging to have all your needs addressed. It is, therefore, necessary to prioritize your needs in such a manner that you get closer to achieving your goals with the resources at your command. Prioritizing is the best way to ensure success; the best way of ensuring you get to see the light at the end of the tunnel.
As much as we find ourselves mired in the routine of the present, it pays rich dividends not to lose sight of a long-term perspective on personal finances. Whether it is a corpus of funds you target for retirement day or investing in a smart mixture of growth-oriented stocks and index funds to boost your sagging portfolio, keeping the long-term goal in mind is your way of ensuring that years from now you will be rewarding yourself for your hard work and frugality.