Mar 06 2010

Secured Debt Consolidation Loans – How To Get Approved

Category: Credit / Debt Management — admin @ 4:21 am

The average person juggles numerous bills each month–credit cards, auto loans, personal loans and more! If you’re getting buried beneath paperwork, you may want to consider a debt consolidation loan. Instead of dealing with multiple creditors, you’ll only have to pay one bill each month. And you can get a debt consolidation loan–even if your credit is not-so-perfect–if you secure it with some type of collateral. Here’s how to get approved:

1. Decide on your collateral

Whatever item you choose as collateral for your loan should be one you’re willing to risk, since the lender could take it if you can’t make your monthly payments. One of the least expensive options would be your home, since you could get a home equity loan, a home equity line of credit or a second mortgage. If you’re not willing to risk your house, you could also use an automobile or a boat. Some lenders will accept stocks or bonds, or even expensive belongings such as jewelry or electronics.

2. Find a lender

You’ll need to find a lender that accepts the type of collateral you’re using to secure your loan. Most major lenders and banks offer home equity loans, and many offer personal loans secured with a vehicle or boat. You may have to dig a little deeper to find a lender that will accept jewelry or other belongings as collateral. Check with your local banks and credit unions, and do a search online to find an appropriate lender.

3. Compare loan rates and terms

Before you sign up with any lender, make sure you compare their rates and terms with similar loans. Some unscrupulous predatory lenders may try to take advantage of your situation by charging you a high interest rate or extra fees. It’s always best to compare at least two loans to ensure that you’re getting the best possible rate.

Try using one of ABC Loan Guide’s Recommended Lenders For A Secured Debt Consolidation Loan.

Secured Debt Consolidation Loans are possible even for those with less-than-perfect credit. By using an expensive item you already own–house, car, boat, jewelry–as collateral, you become less risky as a borrower, making it more likely that you’ll get approved for a loan.

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Feb 28 2010

PERSONAL LOANS: Adding A Feather To Your Dream Hat

Category: Tips — admin @ 11:10 pm

The law of demand and supply says that demand always exceeds supply. So is the case with money. The demand of money in human life is limitless and its supply in human hands is scarce. This is more seen when it comes to the fix salaried section of the society. People spend their entire life in fulfilling their basic necessities of life. They hardly possess any assets. So in this case, the wise option for a person with a fixed salary is to opt for some kind of financial aid that would help him to fulfill his dreams.

In order to bring a ray of hope for these people a financial aid has been introduced which is granted to a person for his personal use without using collateral. This is called personal loans.

This kind of monetary help are generally unsecured in nature where the borrower does not have to pledge any of his assets against the borrowed sum.

Rather in this case the credit worthiness of the borrower plays a much important role. The  lender does not have anything with him except the borrower’s signature and his word of repayment where the borrower promises to pay back the amount within the scheduled time and date.

If the borrower fails to repay the borrowed amount within the promised time period then the borrowed amount is secured by some kind of collateral. The amount that can be advanced is £5000 to £25,000 and the time period allotted with it is 5-25years.

In order to apply for this facility one needs to fill up an on line application form with his personal details.

The criteria that the applicant should have are:-
1. The applicant must be a citizen of UK.
2. The applicant must have completed 18years of age.
3. He or she must have a valid account.
4. He must be a fix salaried employer.
5. His monthly earning must be at least £1000.

To get the instant approval you need to fill in application forms available on the sites of different lenders. In the application you are requested to submit your name, address, Bank account no, Identification Number, Employment details, Salary proof and so on. As soon as the application is filled the lender verify immediately and once the verification is over you will hear your door bell ringing and go and open the door money is there for you. It is the monetary aid that is given to the borrower for his personal use and establishes consumer credit. It is based on the borrower’s ability to pay.

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Feb 13 2010

Debt Solutions – Pay Off Credit Card Debt

Category: Credit / Debt Management — admin @ 9:11 am



In 2005, the average American had $8000 dollars of just credit card debt. Of course, the total amount of debt was much higher once you consider a mortgage, personal loans, home equity loans, student loans and a few bucks from mom and dad. Most people have more than one and in some cases a wallet full of the plastic cards. $8000 is a mountain of debt that most people can barely make the minimum payments on let alone try to figure how to get rid of it. Lets look at some options that will help you eliminate that debt.

Adjusting your payments on a credit card can affect your financial picture in the long term. The minimum monthly payments on credit cards use to be 2% of your total debt. If you have $8000 of debt and you are paying the 2% minimum or $10 which ever is more, prepare to pay that card off for 54 years and accumulate $23,000 in interest. The first payment would be $160 and it would trickle down to $10 as you paid the minimum each month. This calculation is based on an 18% interest rate. If you could maintain that payment of $160 each month, you could pay of the same credit card off in just under 8 years and pay less than $7000 in total interest. Just by maintaining your payment, you can see how you can eliminate much faster.

Credit card companies have doubled the minimum payment to 4% now. This has caused some people to file for bankruptcy since they could barely afford the 2% minimum. Now you have to pay $320 instead of $160 if you are the average American. If you can afford to pay that amount, it will take you less than 3 years to pay it off and expect to pay $2000 in interest. By doubling the minimum payment, you can pay it off much more quickly.

Let us also look at interest rates. It is easy to forget to look at the interest rate when making any financial decision. If you have several federal student loans accumulating interest at 3.5% and you have an equivalent amount of money in the bank, most would want to take that liquid money and pay off the student loans. This would be a mistake because you forgot to look at interest rates of investments. If safe and secure bonds are paying you 5% and you are only losing 3.5% on those loans, please do not pay it off. You can invest and pay the minimums on those student loans and capture that 1.5% interest difference. The same goes for credit cards. Pay off the ones that are higher first. If you have multiple cards, pay the minimums on the lowest interest cards and put the rest towards the highest. Once the highest interest rate credit card is paid off, figure out which card has the next highest interest rate and repeat. Do this until you are down to one card and you should be paying that off quite fast if you do not decrease the total amount that you are putting towards your credit cards each month.

As you can see, the more you pay per month will have an astounding effect on your total payments in the end. The first step is to budget yourself so that you can stop using credit cards, the next is to figure out how much you allocate to paying them off each month. Start by being aggressive on the highest paying cards and work your way down. The effects off paying off that debt will help you breathe easier and know that you are back on the right track.

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Dec 28 2009

The Advantages of a Business Loan

Category: Small Business Information — admin @ 5:25 am



In today’s marketplace there are many ways for a person to get money for a business they might want to start. They can go to their friends and relatives for money or they can pull out a personal line of credit in order to fund their business. There are many other options available as well, one of which is known as the business loan.

A business loan is a loan that is given out to an incorporated business by a bank, credit union or other financial institution. Rather than you being liable for the loan as you would be with a bank line of credit, the corporation that you have just created is the one responsible for the repayment of the loan. There are many advantages inherent to the use of business loans for your company and some of these advantages are discussed below.

Liability

Perhaps the most obvious advantage of a business loan is that quite often you will not be held liable for paying the loan back. Because a business loan is made to a corporate entity, if the corporate entity goes belly up and is unable to pay the loan, then the corporation will be liquidated in order to help pay part of it back. The corporation is the one that goes bankrupt rather than you personally.

The lack of personal liability with business loans gives you a lot of freedom when it comes to managing your business. You have the freedom to take some chances and go out on a limb and in the case of many people in the past, that freedom has led to decisions that have proven extremely prosperous for the company. The mindset when no personal liability is present is completely different and that is definitely the most powerful advantage of a business loan.

Size

Another important advantage to business loans is that the size of the loan is often going to be larger. If you have good credit, chances are that you can get a line of credit from a bank worth around $10,000. While this is a large amount of money, there are some businesses that require loans far in excess of that amount. If you incorporate your business and go after a business loan however, you can get loans that are easily 10 to 25 times that amount. Business loans are serious and if you go after them you will get serious money in return.

Motivation

There are many people in the world today that love to talk about motivation. They love to point to the different things that motivate someone and how a positive mindset of good feelings can lead to hire energy levels and motivation. Well, something else that leads to motivation is the feeling of self-confidence that comes from knowing that other people believe in your ability to succeed.

Well, that belief is something that is part of the deal when you are given a business loan. With the loan is the implication that the other party believes you are going to succeed in your business and be able to pay the loan back. There are few things in the world that can provide as good a motivating factor as a successfully obtained business loan.

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Dec 09 2009

Eliminate Credit Card Debt As Your Personal Stimulus Package

Category: Credit / Debt Management — admin @ 2:28 am



Everyday, we hear the news of the debated economic stimulus package. We sit back and wonder how this will directly help us. Each of us has a unique perspective on the stimulus, and we all have different needs for where, when, and how the stimulus may or may not personally help.

Many Americans are asking about a stimulus program to help the average citizen. People today need help with their rent and mortgages. Even keeping food on the table has become a challenge with grocery prices skyrocketing over the past year.

Previous economic stimulus packages have sent rebate checks directly to taxpayers. Most of this money paid directly to the people was simply forwarded onto creditors to pay down debt. So the previous attempts at stimulating the economy simply sent money into the pockets of the banks and credit card companies. The current stimulus plan does not contain any provisions to send money directly to the people, and the debt balance for most people continues to grow.

For a person with overwhelming debt, any stimulus received would be used to pay down that debt. Without the government’s help, many people are finding that they can create their own personal stimulus package by completely eliminating 100% of their debts from credit cards and personal loans. Instead of waiting for help, they are taking responsibility for their own financial future. Of course, personal responsibility is what this country was founded on.

Without debt, and without the monthly credit card payments, hundreds of dollars per month are saved on principal, interest and other fees. For some people, this can be thousands of dollars per year in savings. It could also be the difference between financial comfort and bankruptcy.

A debt elimination program is not applicable to secured debts such as mortgages and auto loans. Student loans and medical bills also do not apply. But without the credit card payments, extra money would be available to help pay for other obligations in life.

The debt elimination program is not for everybody. It is imperative that some time be set aside to understand just how and why the debt can be wiped clean. An elimination program is not bankruptcy, consolidation, or a home refinance. Having a basic understanding of the premise of the program will also remove any fear that someone has in regards to proceeding with this debt relief method.

A person does not need to become a lawyer to understand this process. You just need to be open to some unfamiliar information. This is time well spent considering the thousands of dollars of debt that can be eliminated. There is also no cost to obtain this understanding, for this is not secret information, just hard to find. You will not be spoon-fed this knowledge from our main information sources, such as television, newspapers, co-workers, and our parents.

By taking control of your debt, you will initiate your own personal economic stimulus plan. And you don’t need an act of congress to accomplish it. A little knowledge can set you free.

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