Archive for the ‘Loan Guide’ Category

APR Is The Biggest Part Of Any Loan!

Monday, June 15th, 2009

Know what an APR is? Well, if you want to borrow money, you should!

The APR is the Annual Percentage Rate that a lending company is going to charge you, and it should be your first consideration when searching for a loan (it doesn’t matter how desperate your financial situation is currently). Spend some time finding out what the APR is going to be for the company, before asking for a loan. Also, before you accept a deal with a lending company, make sure the interest the firm is asking for is not more than normal (the fair market price). The reason for this: if you are not well informed going in, you may end up paying a much more than usual interest rate for your loan.

Also, before applying for any loan, first make sure that that the lender is credible. Yes, there are now many fraudulent loan providers out there in today’s market, especially on the Internet. You have to be pretty careful when looking for a loan from a borrower, so make sure that you’re dealing with a trusted and transparent lender before you sign any paperwork.

Always know what your APR is going to be - period!

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Charge Only What You Can Afford

Tuesday, February 24th, 2009

If you can’t afford a luxury item, don’t buy it until you have the money. If you can’t pay off the minimum balance every month on your credit card, then you are probably overspending. If people have been telling you the same thing lately then you better use the following guidelines to help determine if you should or shouldn’t be charging things on your credit card at this time:

• You have money in the bank to cover the purchase. If you have enough cash in the bank to make a purchase, then go ahead and charge.
• You don’t have enough cash, and the item is not for an emergency. If you don’t have enough cash to purchase the item or service, don’t charge it. Instead, save your money in an interest-earning savings account until you can afford the purchase.
• You can’t afford the item or service, but you need it right away. If you can’t afford an item or service, but need it now, go ahead and charge it but at the same time, make a plan to pay off the balance over time.
• Don’t charge something if it won’t exist when the bill comes. A good way to cut down on credit card debt is not to charge anything that won’t exist when the statement arrives. By paying cash for these kinds of things, you’ll save your credit for true necessities.

There you have it: the perfect plan for steering clear from credit card debt!

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Other Options to Title Loans

Friday, February 20th, 2009

In the face of an emergency, a title loan might seem very attractive, especially if you need cash right away or have exhausted all your options for getting a loan from a traditional lender, such as a bank, savings & loan or credit union. However, if you take out a title loan, and then don’t bother making sure you’re making the payments on time, you might just end up losing one of your most valuable possessions, and your sole means of transportation (which is usually a person’s way to get back and forth from work to make more money).

Instead of a title loan, you should first consider some of your other options that you may not have thought of yet. So, before you sign any title loan papers, why not try to:

1. Work out a payment plan with the seller or provider of whatever it is that you are taking the title loan out to pay for.
2. Contact a credit counseling service, which might help you sort out your finances at a reduced rate, or for free depending on the city or state where you live.
3. Borrow some money from a friend or family member.
4. Seek financial help from a charity or government agency.

Remember that a title loan is not that risky for the lender, so they’ll usually be more than willing to “give” you one. However, it may be very risky for you, so just be careful (just like anything else in life)!

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Out: Budget. In: A Spending Plan.

Wednesday, February 18th, 2009

What comes to your mind when you say the word budget?

Do visions of cheap motels, eating out less, and other unpleasant restrictions come to mind? Often the word “budget” leaves a very negative impression on most people, so why not call it a “spending plan” instead. A spending plan is a very positive concept and a powerful tool.

A spending plan allows you to better prepare, so you can enjoy the things you want while staying within your means. So when you spend money going to the mall, or going on a romantic date, you’ll be safe in knowing that you won’t be spending more than you should (which is very liberating, to say the least).

People are in control of their finances when they can account for all their money. These people plan ahead when it comes to needing cash and reserve money for planned and unplanned expenses. The sad truth is that most families live paycheck to paycheck with no extra spending plan, no monthly accountability, no savings plan, and no idea of how or when they are going to get out of debt.

A good spending plan depends on thorough planning and understanding your individual needs. Start now by evaluating your personal and family financial records so you know how much you have been spending and where you have been spending it. Determine your total income and total expenses. If your income exceeds your expenses: good for you. However, you can still improve your financial stability, and reduce debt quickly, through an effective spending plan.

To have an effective plan, you will need to develop good money management habits which will take a great deal of effort in the beginning, but in the end you’ll be on the path to financial freedom!

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