Entries from June 2011 ↓
June 20th, 2011 — Debt Consolidation
It is a real blow for the American middle-class when college costs soar and incomes barely increases to keep up with it. With out of pocket expenses of a good American college education increasing faster than incomes, middle and low income families are rethinking sending their kids to college.
Tuition fees at public universities have gone up by 130% in the last two decades, while middle class incomes have remained stagnant. In 1988, a public university charged $2,800 for tuition and fees for a four-year course, but by 2008, the figure had risen to $6,500 a year. Sadly, incomes didn’t keep pace with this increase or an American would have been earning an average of $77,000 a year by 2008. Instead, it was $33,000 on average. At that time, federal aid of $23,000 was available to students for a four-year degree. Now, students bear most of the financial burden of their education.
In the face of this, two trends can be seen: either families are taking on huge amounts of debt or are reducing their child’s education to two years instead of them studying for four. There is a good side to student debt, as the education a student receives is seen as a stepping stone to a better tomorrow. This is because there are more jobs available to college graduates—in fact, they can earn $1 million more throughout their lives. However, the flip side of this is that they start life with a huge loan hanging on their heads, sometimes averaging $23,186!
According to experts, half the number of graduates will take 20 years to repay their loans. This means they won’t be able to buy a house, save for retirement, or create a fund for their children’s education. To avoid such a scenario, families are entering their children into two-year degree courses. This leads to them getting fewer job skills at a time when employers are looking for more from them. Because they lack these necessary skills, unemployment rates are high and companies shift their jobs abroad where wages are much less.
This new trend of the middle class seeking two-year degrees is a deterrent to America competing in the global economy. In the domestic scenario too, this does not augur well. Now, the richest Americans continue to grow their money phenomenally while the poor are stuck where they were. In order to compete in the global knowledge economy, U.S. needs undertake some education reforms and make college education accessible to more people.
Credit Season is a consumer finance website providing latest news, information and tools for personal loans and other personal credit services.
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June 20th, 2011 — Debt Consolidation
Most people are aware of the name “Payday Loans”, but they might not quite associate them as the same thing as fast cash loans, payday advance loans or cash advance loans. The names are many, but the result is the same – easy, fast cash to be paid with your next paycheck.
Most of these loans are unsecured, in the nature of short-term loans, charging an amount that is referred to as finance fee. There are no specific rates of interests for these, but the finance charge that is charged may range from 10% to 30% of the required amount.
If you do some shopping, you should be able to find a lender who offers a cheaper rate. However, you should note that sometimes lenders who offer a very cheap rate, often have other fees tacked on to the loan.
It is wise to read all fine print and ask lots of questions so you understand exactly what you might be getting into with that lender. Sometimes the cheapest rate advertised does not end up costing you less money in the long run.
There are many reputable lenders out there that will advertise clearly and be very helpful to you when your questions arise. You might be wonder when you would need a payday loan and why it would be the best option for you.
Some examples are explained here: When you are facing sudden cash crunches and in need of immediate cash, payday loans are considered to be the best. It is quite easy to obtain this loan, with very few legal requirements.
The borrower is just required to be of 18 years and working at a monthly salary of around $1,000 a month. Usually when you are facing an unexpected circumstance, you have no time to pull together numerous pieces of documentation to present and then wait for approval.
So when the need is urgent the conventional way of borrowing with processing may not be the right option. In such a case payday loans can be a great relief to you and you can apply for these loans and get them transferred in our accounts without much work on your part.
Applications for the loans can be filled out online, and the money is transferred into your account in a few short hours. 3. There are many people who either have bad credit history or don’t have it at all.
In such cases, banks and financial institutions do not provide loans easily, besides the extra hassles of documentation and the many forms that are required to be prepared. In this case, payday loans are the much better option for you.
In order to obtain the best payday loan, good market research is required. This would include either making phone calls to local lenders and asking about their rates and fees, or you could look on the Internet and line them up side by side to compare.
There are many ways that a payday loan can help you. For instance, if you need urgent car repairs done but don’t have the money right now, you can always avail a loan to get you cash and get your car fixed.
Sometimes you might need medical treatments or medication that you need money for. Perhaps your water heater went out.
If you have a bill due that cannot be negotiated to a later date, you can use the funds from your payday loan to pay it so you aren’t delinquent. Sometimes rent is due with no grace period and due to where your paydays fall, you can’t get your rent in until a few days after it is due. Payday loans can help in that situation as well.
There are many reasons people avail these kinds of loans, and it really doesn’t matter what your reason is. But it is wise to use them in urgent financial situations instead of just for fun.
The last advantage to acquiring a payday loan is that you pay it back within the term you agreed upon. Most lenders will allow a loan extension but they charge high fees to do so, and then you will be paying interest on the loan for longer.
You must know and have a plan on how you are going to pay the loan back before you even get it. If you go into this contract without such a plan, you could find yourself up a creek later on.
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June 19th, 2011 — Debt Consolidation
If you are deeply in debt it can be very hard to see any way to the other side, to a life that doesn’t involve constant worry and sleepless nights. With each passing day the stack of bills and collection notices grows ever higher and the feeling of hopelessness ever more defeating. Even knowing about the option of filing for bankruptcy and the relief it can offer presents as just another impossible obstacle in your path. How can you pay for the lawyer and court fees when you’re already broke? It’s not like you can put it on a credit card! Bankruptcy seems like an option only for those who don’t need it.
Some will decide to try to file bankruptcy without an attorney to save on the fees. This approach is without a doubt proof of the adage “penny wise and pound foolish.” Bankruptcy laws are so complex that attorneys who don’t specialize in it won’t even file their own bankruptcies if necessary, choosing to be represented by an expert in bankruptcy law. Without that expertise and knowledge you could be risking so much more than a lawyer’s fee and the harm can be irreparable. You could actually end up in much worse shape that you were to begin with no recourse.
Understand that from the time you file for bankruptcy your financial obligations are going to be significantly reduced immediately. If you are eligible for a Chapter 7 bankruptcy you can permanently eliminate your unsecured debt which includes credit cards, medical bills, utility bills, and more. This will make it easier to pay the bankruptcy attorney fees for the services that will help you start a new life without creditors calling and harassing you and without impossible debt hanging over your head.
Bankruptcy lawyers understand your problem. They see it every day. It costs you nothing to make an appointment for a free consultation to discuss your situation and help you find your way out of it, including a way to pay the attorney’s fees.
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June 19th, 2011 — Debt Consolidation
Your credit rating may be more important to you than you think. Your credit rating isn’t just about being able to get a credit card or get a loan for a house or car anymore. A bad credit rating can keep you from renting an apartment, getting utilities, and even getting a job. It may not be fair, but that’s the way it is today. There is reason to fear damaging your credit when financial catastrophe strikes as a result of losing a job or getting sick because of these very negative repercussions.
Many people fear filing for bankruptcy because they believe it will destroy their credit for many years to come. The fact is that what destroys credit is being behind on paying your bills. If you are getting further and further behind on your bills and do nothing, your credit rating will continue to deteriorate. Because of this a bankruptcy can actually improve your credit by stopping the aging of delinquent bills. When you file for bankruptcy it stops the bill aging immediately. For example, if you have a credit card bill that is three months past due, bankruptcy stops it there forever so it never shows up as more than three months delinquent.
Filing for a Chapter 7 bankruptcy can permanently eliminate credit card debt, medical bills, utility bills, and other unsecured debt giving you a new financial start. Once the process is completed, which can be done in as little as three months, you can immediately begin to rebuild your credit. Instead of being a negative, creditors will once again want your business since much of your debt has been eliminated by the bankruptcy and you have more available income. When you pay these bills on time your credit rating will improve.
Before you get so far behind on your bills that your credit rating is damaged too severely, make an appointment for a free consultation to talk to a bankruptcy attorney about your available options. The worst thing you can do is nothing.
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June 18th, 2011 — Debt Consolidation
When you are in financial trouble and you need a loan over $5000 it is a very serious matter. You will need to examine all your options. It is better to do some research on the internet to find places where you might get your 5000 loan before you approach any other establishments that may turn you down simply to avoid wasting time and generate frustration.
One way to handle this situation is if you have a friend or family member who has some cash to spare, ask them if they can give you a $5000 loan. This will be quick and simple compared to going to the bank for a loan. There will be little or no interest charged and the due date for the loan can be negotiated and renegotiated.
You may wish to apply to the bank to get your loan. This however can be tricky if you have bad credit. The advantages that are offered by a bank are that they are reliable and they provide reasonable rates of interest. They will be able to create a payment plan that is spread out over a reasonable period of time. However, you will have to pass their credit check and explain the purpose of your loan. Even if your credit score is poor, you may still be able to qualify for a $5000 loan as long as someone else who has a good credit rating is willing to co-sign your loan documents to guarantee your loan repayment.
Payday loans are more easily obtainable compared to a bank loan, if you have a bad credit score. But many of these lenders will not make a loan above $5000. The general consensus is that they will only lend you 20 – 25% of your salary. To qualify for the loan you have to earn at least $20000 monthly. The other problem with payday loan companies is that they charge high interest rates and they want to be repaid within about fourteen days in most cases. Therefore it is important to keep searching for the best terms when you need a loan of this amount.
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June 17th, 2011 — Debt Consolidation
If you feel that you are drowning in a sea of debt, a consolidation loan may be the answer to your problems. For people who are juggling car loans, personal loans, hire purchase agreements, and credit card debt, consolidating everything into one loan can make it possible to get out from under all of your debts. But in order for any debt management approach to work, you are going to have to change your spending habits and stop incurring debt. If you are willing to do that and commit to making the monthly payments on the new loan until it’s been completely paid off, this approach can give you a fresh start, debt free.
A distinct advantage of a consolidation loan is that you remain in control of your finances and for most people that is far preferable to having their finances managed by an insolvency practitioner or a receiver as is the case when you set up an individual voluntary arrangement (IVA) or file for bankruptcy. A consolidation loan enables you to pay off all your debts, leaving you with a single monthly loan payment. Here are some of the benefits of loan consolidation.
You’ll have the convenience of making one monthly loan payment rather than trying to keep track of numerous payments, often due on different dates. You’ll also have the luxury of dealing with one lending institution instead of many different creditors. It makes managing your finances much simpler.
You can significantly reduce your interest costs particularly if you are able to secure a loan at a reasonable fixed interest rate. If you are currently servicing credit card debt or other unsecured debt, you are likely paying exorbitantly high interest rates. And if you are only making minimum monthly payments, your payment covers the interest while barely reducing the outstanding balance. If you have managed to maintain a good credit rating and qualify for a loan secured by the equity in your home, you can potentially reduce your interest costs by more than half.
You can also reduce your total monthly payment costs as consolidation loans are generally spread out over a longer period of time.
You can improve your credit rating or at the least prevent further damage to it. A consolidation loan won’t negatively affect your credit rating unless you fail to make the payments.
One of the effects of the credit crunch is that it is now harder to obtain any type of loan than it once was. Your chances of obtaining a consolidation loan are greater if you are a homeowner, have a steady well-paying job and have an excellent credit rating, loans for bad credit are much harder to come by. Make sure you shop around for a reputable lender and the best possible rates. Lay out a complete budget to ensure that you can realistically afford the loan payments before you sign on the dotted line. Also take a pair of scissors to all but one of your credit cards and cut them up. Keep only the card with the lowest interest rate and don’t use it unless you can pay it off in full at the end of the month. Staying focused on your goal and curbing your spending is essential to becoming debt free.
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