April 21st, 2011 — Debt Consolidation
Experts say that payday loans create more problems than they solve. You should look for other alternatives to it if you are in dire need of money. They are one of the most expensive loans today and people who take them out often have a very hard time paying it back. They are notorious in the loan world. If you somebody says “I need 3000 dollars right now”, you should look for other sources of the money. Payday loans have such a bad reputation that they are prohibited from 19 states. There are no payday loans in Georgia, as well as other states in America.
According to the consumer Federation of America, today, there are 22,000 storefront payday loan stores nationwide. They offer loans to people who have a steady job with at least a thousand dollars in monthly salary and US citizenship. But, getting a payday loan may not be a smart financial move as experts are quick to point out. Fortunately, there are other options which you can select when you need money.
One of the best alternatives to payday loans is credit union loans. Credit unions can be found in your local area. Members of the union can borrow up to $500 every month which they need to pay monthly using funds from their next paycheck. Loans are connected to SALO cash accounts which deduct 5% of the loan and put it on the savings account. The saving account is intended as a “rainy day fund” for members of the union.
There are also small bank loans which you can apply for. There are small bank loans of up to a thousand dollars which have interest capped at 36%. They can be paid beyond a single paycheck cycle. There is already a good number of banks which offer small consumer loans.
Credit counseling help is also something which people can try. There are various counseling services which offer free money management help. This will help lessen the risk of getting a payday loan.
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April 21st, 2011 — Debt Consolidation
Perhaps, one of the biggest myths about obtaining FHA loans is that if you are self-employed, you are automatically disqualified. Being self employed doesn’t mean you are not qualified to apply for a FHA loan, although the process is much tougher. The main reason why FHA loans for self employed individuals are hard to obtain is due to the failure of keeping good records. Even if you are operating a successful small business but if you can’t show the lender documents that would verify your current income, then it would be difficult for them to consider you as a good risk. After all, financial institutions offering FHA loans for self employed individuals are just looking after themselves hence why applying for one can really be strenuous.
It is critical that you will be able to show in your FHA home loan application that you are earning enough to pay for the loan you are applying for. In this case, you have to provide a profit-loss statement as well as other documentations that would give the lender a clear idea about your current finances. If you are not someone who keeps good records of legitimate businesses or if your tax return is not in order, then your application will likely get rejected. Knowing this, those who are planning to apply for FHA home loans for the self employed individuals must really think things through and take as much time needed to make the right decision.
Unlike obtaining payday loans for self-employed, getting self employed mortgage loans is a bit tricky. Before you even decide to apply for FHA loans for self employed, you have to first prepare all the required documentations. For some, average preparation time would be no lesser than a year. During this time, you have to deal with issues pertaining to your credit report. If you need a credit repair, then accomplish this as soon as possible. The best way to boost your chance of getting approved is by showing the lender that you have a reliable and steady income for the past two years. Doing so will surely be favorable to you as a good credit score will likely be the key for you to obtain the best home loans for self employed individuals.
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