Payday Loan and it’s Contribution to Our Day to Day Life

Payday Loan and it’s Contribution to Our Day to Day Life

Payday loan is something that everyone longs for, in order to get rid off the over dosage of financial crisis. Let’s have an authentic discussion over U.K market, how the citizens over there get rid off it and which sorts of companies are capable to help us out.

Payday loans were an American phenomenon and have emerged in theUKover the last 5 years.

They are advertised as a short term lending solution which they are more than happy to point this out on their daytime TV adverts. While they are intended as a short term fix, the relative ease in which a consumer can obtain one has turned it into a massive long term headache for British consumers.

The original purpose for Payday loans was to help towards vehicle repairs, paying off a larger than usual phone/utility bill or to see you through your last week before that much needed payday.

Now they have become a way of borrowing money to pay off other debts.

Consolidation of other pay day loans:

TheUKpayday loan market has grown massively in the last 5 years as more and more people are struggling with unsecured debts and day to day living expenses. The interest charged on payday loans has also encouraged the growth of the market.

Current statistics show just how popular and easy to obtain high interest payday loans are:

1) Each year 1.2 million people take out a payday loan in the UK.
2) A total of £1.2 billion is borrowed every year through payday loans.
3) People owe on average £1200 on payday loans.
4) People who have a payday loan usually have 4 on average.
5) 40% of people borrowing money on payday loans were using it for day to day living costs.
6) Most social demographics use payday loan companies such as: pharmacists, teachers and accountants.

*Source Consumer Credit Counseling Service:

The figures show that payday loans are now a massive problem for British consumers and poor money management is only going to lead to more people taking out a payday loan. The figures also show that it’s not just people on low incomes who need payday loans but people on higher salaries are also falling victim to the promise of quick money and crippling interest rates.

Interest rates:
As discussed above the interest rates on payday loans are the highest in the industry. This is justified by the lenders by stating it is only short term lending. Short term lending or not the interest rates are astronomical and once you take one out it is very hard to escape it’s clutches. There are currently no caps on payday loan interest rates so the companies are free to charge whatever they want.

Interest rate examples;
• Wonga – 4214%
• Payday UK – 1737%
• Kwik Cash – 1737%

These interest rates are fixed and represent a huge outlay of interest for consumers. The high interest rates are the primary reason people struggle and are tempted to take out other payday loans to pay off the ones they already have.

Your options in tackling payday loan debt:

Most people realize they are struggling when their scheduled payment is due to leave their bank account. This usually leaves the consumer with no money to pay for day to day living expenses and drives the temptation to take out the payday loan again.

Harrington Brooks are one theUK leading debt resolution companies and specializes in tackling payday loan debts and understands the struggles and problems people who are over committed go through.

Article by Patricia..

The Possibility of Two Car Loans at the Same Time

The Possibility of Two Car Loans at the Same Time

If you are curious to know if it is possible to have two car loans at the same time, the answer depends on your credit rating. But if your credit rating is strongly positive, then you may even apply for more than two car loans at the same time.

Australian lenders are required by government regulation to be responsible in their lending acts in which they need to examine each applicant’s financial conditions. If it is established that you are more than capable to manage two car loans at the same time, there is no reason why you should not have both.

In the event that you are assessed to suffer from undue hardship if the loans get approved, you may find it hard to qualify with banks. However, lenders are more flexible and you can always find one that will approve your loan.

Here are the things that banks or lenders look at in determining the approval of your loan.

  • Proof of Income

This is sort of an SOP – to provide proof of your income as this greatly helps in evaluating your capacity to pay for the loan should it be approved.

  • Assets and Liabilities Statement

We all know that this shows valuable assets that you own as well as any liability that you may have which in a manner, shows how responsible you are in debt handling.  This statement represents your overall financial position.

  • Preparedness Indication

This is something that a lender may take a look at to see whether or not you are prepared to take a loan, secured or unsecured. Lenders find secured loan to be favorable to them because they can hold on to some sort of security in case you become unable to make payments. An indication that you are financially equipped increases your chances of approval even if that means two car loans at the same time.

  • Credit History

A lender would naturally look at your credit history by obtaining a copy of your credit report once you submit an application. Contained in it are reports such as loan applications in the last 5 years, any loan repayment default, bankruptcy procedure issues and other pertinent matters relative to your credit history.

All of these pieces of information will be considered in approving or not approving your loan application because they are indicators of how comfortable you can afford to pay for the loan. You may have substantial regular income but if your cost of living along with other financial obligations far outweighs your income, your car loan application may not be granted. However, if you are able to prove that you are financially comfortable, lenders will be more than glad to assist you.

There are plenty of reasons for car loan denial but each individual is assessed on his or her own merits. Whether what you seek is new or used car, being able to prove that you can comfortably afford to pay for more than one can surely allow you two car loans at the same time.

How Do You Get Out of a Car Loan When You Are Underwater?

How Do You Get Out of a Car Loan When You Are Underwater?

How Do You Get Out of a Car Loan When You Are Underwater?Driving a car that has a value less than what you owe on it can be very frustrating. It may feel like you will never get out of debt. The best option is to be on time with your vehicle loan. If your budget is getting tight and paying that car loan is getting difficult, it is time to sell the car before you have to worry about car repossession.

How do you get out of a car loan when you owe more than it’s valued?

The process begins verifying the value of your car. Do a search on either or Kelly Blue Book. Be honest about the condition of your, it won’t help you when someone tries to reduce your sale price. Be sure to use the amount listed for a private seller when you list the car for sale.

Your next step is to contact your bank and verify the amount you owe on the loan. You will also need to let them know that you are looking to sell the vehicle. Verify the steps you will need to take in order to have the title released to the new owner. More than likely, they will send the title to a local branch where you can make the transaction with the new owner.

Once you have these two numbers, you need to determine a way to make up the difference between the two. Your choices are to save it up or to borrow it.

If you have decided that you need to borrow the money, contact the bank that holds your current car loan and talk to them about taking out a smaller loan. Explain to them that you are underwater with your car loan and are trying to get out from under that. Ask to take out a loan for the difference between the sale price of the car and what you still owe on the vehicle. Now, you have a smaller loan that is much easier to pay off.

If you need to purchase a replacement car, take out $1,000 or $1,500 over the loan amount and drive around a lower value car while you are paying off the smaller, new loan. Once the smaller loan is paid off, you can begin to save money for a newer vehicle.

Driving a car that you own outright is a great feeling! Following these steps will help you get there quicker!

What Does Obama’s Student Loan Forgiveness Plan Mean For You?

What Does Obama’s Student Loan Forgiveness Plan Mean For You?

Last fall when President Obama announced his plan to ease student loan burdens, it meant that student borrowers who have made their monthly student loan payments for a period of at least 20 years after leaving college may be eligible to have the remaining balance forgiven – and for those who have worked for at least ten years in public service positions, their loans may be forgiven once they reach their ten year anniversary of public service employment.

In addition, due to the fact that recent grads are not making the kind of money that was available to them several years ago, Obama’ program also calls for the capping of monthly student loan payments at ten percent of a student borrower’ take home pay.

For those who are members of the military, there is also some good news. Anyone who works for any of the five branches of the service and who also possesses a college degree may be able to also obtain forgiveness of their student loans.

Why This Is Important Today

Anyone who has ever taken on a student loan is well aware that this obligation can become a huge burden – especially for those who are not obtaining immediate employment upon graduation.

Years ago, it was easier for those who had their pick of post-graduation jobs to segue their student loan repayments into their other living expense budgets. Today, however, things have changed a great deal and even the smallest of expenses can become a big deal for those who are unemployed or even underemployed.

What Does This Mean for Student Borrowers?

In today’ economy, many people could breathe easier by saving even just a couple hundred dollars per month on expenses – and this is exactly what this program aims to do. According to the President, even though the student loan forgiveness plan doesn’t actually create jobs or even help in boosting the economy, it will make a big difference to millions of people who are having to make the decision every month regarding which bills to pay and which to hold off on.

For those who may not fall into any of the above categories, there is another possible option available in the student loan forgiveness program. This is to sign up for income based repayment loan terms.

The good news here is that this may be available not just to those with newer loans but also older loans as well. In any case, it is a good idea to compare the type of loan possessed with the best repayment and / or forgiveness option that is available to that particular borrower.

The Bottom Line

The bottom line on President Obama’ plan is to help ensure that those who choose to continue their education beyond high school do not end up broke because of the financing that is required in order to obtain that education.

When it’ all been said and done, even though President Obama may be remembered for his health care reform, the Student Loan Forgiveness Program will likely have affected a far larger number of people overall.

George Gallagher is a writer and blogger for the financial sector of the web. He is also a consultant to graduates concerning their student loan consolidation needs.

Lending Help to Your Urgent Needs

Lending Help to Your Urgent Needs

Payday loan is picking up in popularity at a rapid pace. Several persons are showing interest in this loan variety just because of multiple advantages it offers. First of all, accessing payday loans is fairly easy because of lesser requirement and higher approval rate (read 100%). You just need to submit your employment status in detail as well as bank details. The source and figure of your monthly income are the main considerations for the lenders because they always want to make sure that you have enough to pay off the borrowed amount.

Payday loans are offered for short term period only. Time span ranges from two weeks to one month. Whatever be the amount of loan, it is sanctioned within a very short time length. Generally, such loans are paid off on a borrower’s next payday. The volume of your payday loan is directly deducted from your bank account when the next payday arrives.

Once you get a green signal from a lending organization, the loan is deposited with your bank account. The account details are provided in your loan application. You can receive the money as soon as the loan is approved. What about the loan repayment? Well, it is fairly easy to pay back the payable amount. So, the overall picture is quite impressive and in favor of the borrowers to a considerable extent.

One mention-worthy point is that credit status is of very little value in this case unlike other loans. A bad credit report is not a factor to get the. Truly speaking, if the lenders are convinced that you have stable income, they do not hesitate to extend their monetary help. The volume of loans granted to you depends on your monthly earning and your capability of paying the figure back.

However, there is always another side of a coin. It is really good that you get such loans irrespective of your credit history and within a very short time period. But the interest rate is much higher than that of traditional financial help. So, be prepared to pay through your nose. Before deciding to apply for payday loan, make sure that you are able to pay it off. If the interest rate is not acceptable to you, look for an alternative to meet your needs.

With every loan, comes an obligation to repay it within time. So, do not go for one that charges extraordinary rate, thereby loading burdens on you. Remember that if loans are not cleared within time, you may have to end up paying penalty and facing harassment. Gather details as to interest rate and repayment terms. Make it a point to collect quotes from several lenders. It will definitely help you choose a better pick when you are tight on cash.

Financial Sacrifices You Have to Make

Financial Sacrifices You Have to Make

According to the researches conducted on english consumers, millions of UK residents are making huge sacrifices just to be able to pay their utilities bills. Many families cut back on their usual expenses such as food and other essentials just to be able to pay for electricity, gas and heating. Many consumer groups and charity foundations have long feared that this will come to happen.

Many of these charity organisations have been requesting the UK government to start helping the struggling part of the UK’s society. The elderly have been the most in need of help in this period, not being able to leave the house or go online to switch utility suppliers for better deals.

Can’t pay the bills? Payday loans can help.

The same type of research conducted several years ago showed that 44% of the interviewed consumers had to cut back on day to day expenses just to be able to pay the bills at the end of the month. There are solutions to help people that are unable to pay all their monthly bills. Payday loans can help people pay their utility bills on time and avoid arrears.

The same studies showed that 65% of UK citizens were shocked at the size of their utility bills even though during the same period, the six important utility suppliers in the UK were cutting prices. The spokesman for Consumer Focus, Jonathan Stearn commented that it is a disgrace that huge bills during the winter period cause so much misery for people with low income, the elderly or people that are unable to work.

In a statement following the completion of the research.

Utility bills on the right track.

Thankfully, utility prices have started to return on the right track, however some families are still struggling. One of the leading British electricity suppliers have started to cut the prices by 8% per month, leading to £43 savings on electricity bills. That may not seem much but it is a solid indicator that the utility providers understand the situation and are working to fix it. While payday loans can be used to help with some payments and avoid being swamped in unpaid bills, they are not to be used over large periods of time due to the high interest rate payday lenders charge.

Many of the UK’s leading gas and electricity suppliers have started to cut down on their prices and for those people that are still unable to pay all their bills by the end of the month, new payday lenders provide short term loans that almost anyone can apply for. With short term loans you can borrow from 200. Even the lowest amount you can borrow will help a family that cannot pay all the bills and will make sure they have enough to buy some essential goods. This is a good method to insure you do not stack up on unpaid bills, but remember that because of the high interest rate lenders charge, you should pay back the short term loan as quick as possible.

A way to live up to your obligations

Financial problems may come up at any given point in our lives without informing us beforehand. If you meet with any emergency all of a sudden, you may find it difficult to handle the situation, especially when you’re nearing the end of a month. It might be a good ploy to go for the cash advance option under circumstances when your friends or relatives aren’t able to support you. These quick cash loans are short terms loans. Such loans are usually offered without any credit requirement.Quick cash loans may help you to cope with all emergencies without any difficulties. All your problems may simply vanish within a few seconds. For quick cash loans, you’ll usually meet the eligibility criteria if you have a consistent flow of income and if you’re at least 18 years old. The processing time for these loans is really much less as compared with other loans and the steps to apply are also quite easy. You may use cash for meeting your financial obligations like medical bills, electricity bills etc. The lender won’t restrict or interfere in whatever way you use this money.

The quick cash loans that you borrow may even vary between $100 and $1,500. The amount of loan approved against your application may vary as per your monthly income. Such loans are usually approved for a period of 14 days, and hence you need to repay them by the time you receive your next paycheck. The lender may even allow a few more weeks for you to repay a loan. But you should only avail such option, when you’re not able to repay the cash within the following payday.

You should always opt for quick cash loans without any hesitation in case you’re trudging with credit problems concerning any missed payment, skipped payment, late payment, bankruptcy, insolvency, CCJs, defaults or arrears. They will reach out cash to you instantly. A quick cash loan for 12 months will allow you to use the loan amount through any obligation, and repay it within that period.

You may get in touch with a few online lenders in order to apply for quick cash loans quickly and conveniently. Online requests are easy and quite smooth. You may shop for a few online quotes and get an idea of the interest charges so that you end up selecting a good deal and avoid all hassles. Quick cash advance is always there to support you through various obligations like repaying your shopping bills, purchasing a cell phone, buying grocery, car maintenance etc. You may now look up to your necessities quite confidently.

Refinancing Your Loan – Things to Remember

As many households take a long hard look at their finances to try and squeeze the most out of every dollar earned, refinancing loans may be considered as an option to free up some money.

However, whilst it is possible to get a new deal to lower outgoings, there are a number of other factors that need to be taken into consideration rather than just checking out the cheapest rates on a loan repayment calculator.

If refinancing is being seriously considered as an option, one of the first steps should be to establish what is on the credit record. In the current economic climate, lenders are tough on anyone with blemishes on their files and will be reluctant to offer competitive interest rates.

The US government obliges credit bureaus to provide an annual free copy of an individual’s credit file upon request and this is a good place to start.

Ensuring that there are no inaccurate or misleading entries and that the credit file is in good shape is essential before applying to a lender. It is equally important to make sure that lenders have lodged good credit entries, as not having any credit can also make a new lender wary.

For those who have a few blips in their recent history, it is not the end of the world. However, it would be better to postpone any refinancing until a little more time has passed and concentrate on creating as many positive credit entries as possible to reduce the impact of past problems.

Assuming all is OK and refinancing is possible, it is essential to check how much closing down your existing loan will actually cost. Many lenders charge early repayment penalties and these are generally in the region of 2-10 per cent of the total loan value, not an insignificant sum.

Especially for those refinancing to create more income, paying an extra lump sum to the finance company can seem like a choker and it can be tempting to add these to the new loan. However, if at all possible, this should be avoided as it will simply mean more borrowing to pay interest on.

Individuals considering refinancing loans may have any one of a number of priorities and it is important to be clear about what is most important before assessing options via a loan repayment calculator.

Some people may be looking to access some cash in order to pay for a large expense, such as a college fund or new auto. Another’s main priority may be lowering the monthly cost in order to be more comfortable financially.

A different reason to consider refinancing is if the loan was originally based on a poor credit score. If an individual’s credit rating has significantly improved since the loan was taken out, refinancing may lower the interest payable, reducing repayments without extending the term.

Some individuals find they are in a better position financially than they were previously and whilst they do not have sufficient funds to repay the loan in full, they can slash the repayment term so they are debt free sooner.

Whilst not commonplace, some lenders allow overpayments on loans with no penalty, a convenient way to pay off a debt more quickly without needing to refinance.

Most lenders have loan repayment calculators on their websites which allows the repayment term and monthly commitments to be played around with to find the most suitable deal, without any pressure from a sales person.

Some companies do not include a loan repayment calculator on their website, preferring customers to contact them for a quote, but this often means customer do not have the opportunity to take as much time to consider the variables.

Refinancing can be a good idea for many people but it is important to ensure the loan is being renegotiated for the right reason and is not simply adding to the debt burden.

5 Tips for Completing a Personal Loan Application

5 Tips for Completing a Personal Loan Application

Each year millions of people apply to get a personal loan for different financial reasons. It may be needed for a medical emergency or may be needed to purchase a big ticket item such as a boat, motorcycle, or car. Whatever the case may be for you, it is important that you complete the application correctly in order to improve your chance of getting your application approved. Here are some tips for completing a personal loan application.

Review Your Credit Report

Many personal loan lenders use your credit report and score to determine several factors about your personal loan approval and terms. Before you complete a personal loan application, it would be wise to first review your credit report to make sure it is correct. You should check for inaccurate information or anything that could damage your credit score. If you find inaccurate information, you should file a credit report dispute with the reporting credit bureau.

Provide Accurate Information

Many personal loan applications request personal and financial information about you and your co-applicant if applicable. When you fill out your application, you should make sure that you are providing the most accurate information as possible in order not to delay the processing of your application. Before you submit it, you should double-check all important information such as social security numbers, employment history, and income.

Submit Only One Application

Although you may be in hurry to obtain a personal loan, you should try to only submit one application instead of several applications to different lenders. If you have several lenders pulling your credit report at the same time, it can cause your credit score to go down. Also lenders are often leery of giving money to someone who may be trying to obtain loans from several lenders at the same time.

Apply with a Lender You Have Used Before

If you have a good banking history with a local bank or credit union in your area, you should apply with them to obtain your personal loan. Many banks often feel more comfortable approving loans for customers who have used them for other financial needs such as checking and saving accounts. Also they may be willing to work with you if your credit score is not so good.

Read the Fine Print

Before you signed the dotted line on the application, you should make sure you have done your research and read the fine print. The fine print often tells you about terms of the loan and about any fees you may have to pay as part of the loan. If you don’t understand something, be sure to ask questions.

About the Author: Tanya is a writer and blogger with a passion for personal finance. She’s also a regular health contributor, creating content for those interested in a career path as a registered ultrasound technician.

When Cash Advances Can Pay Off for Borrowers

You’ve no doubt heard about the pitfalls of “ no fax payday loans ” or paycheque cash advances . The interest rate, when compounded over a full year’s time, stretches into three and four figures.

That would not make sense because it would mean the payback would be bigger than the loan itself. Fortunately, not many people take out a cash advance payday loan for a full year. In fact, most people know the nature of the loan defies that. It’s a short-term, low dollar amount loan that you should pay back in one or two paycheques.

No one uses payday cash advances loans for long-term purchases. It might be good for a used car down payment, but it’s not the kind of money you use to buy a house. You can use a payday cash advance to pay an emergency bill, but it doesn’t make sense to use the moolah for unnecessary purchases. Your no fax payday loans can help you pay bills – which is what millions of Ozzies use them for. But these “bad credit loans” are not something you would use for superficial items.

In fact, there are several ways in which payday loans might actually help you save money. Here are a few:

Avoid a loan shark – Unregulated and illegal, a loan shark might easily charge 50-100% interest on a loan.

Pay bills on time – You know that penalties and higher interest charges can add up. Then there is the damage you do to your credit score if you pay bills late.

Make a timely purchase – We don’t recommend buying anything just because it’s on sale. But if you know you will need to buy something soon, and you see it advertised at a discount, say 30% or 40% off the retail price, a cash advance can enable you to buy it when it’s on sale.

If you don’t trust your instincts for finding the cash advance loan yourself, you could try an aggregator to search for you. AnydayPayday ( will take your information and match you up with a lender that best fits your needs.

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