How to Not Get In Over Your Head when Using Short Term Loans

Short-term loans are a great way of avoiding financial disasters when an emergency comes up you were not prepared for financially. If you use them properly, you can get the money you need quickly and can get yourself out of a bind. However, if you do not use them carefully, you could end up in over your head and being worse off than before.  Here are some tips that can help you use short-term loans to your advantage without any negative side effects.

Remember Your Total Income

When applying for any type of loan, no matter if it is short term or not, you need to consider how much money you make each month. Every time you get paid, you must include the expenses you currently have to pay so that you do not fall further behind. You want to make sure you only take out the minimum of what you need to cover your emergency so that it will be easier to pay back. If you take out too much, you could end up paying more to repay your loans than you can afford, leaving you in just as bad of a situation as you are in now, if not worse.

Plan Our Your Repayment Schedule

When you are figuring out how to repay your short-term loan, you need to keep in mind the schedule that your repayments have to fall on. The best way to ensure you will be able to make your payments is to have the repayment amounts scheduled on either the day you get paid, or the day after if you have to deposit your check in the evenings. This way you know the money will be in the account, and you will not risk missing a payment on your loan.

Make Your Payments On Time

One of the easiest ways to ensure you do not get in over your head is to make sure you do not miss any of your payments. If you miss even one payment, many lenders will add more fees to the loan that you will also be responsible for. They often add a late fee, and many of the lenders also increase your interest rate if you make any of your payments late. This means that you will not only have to figure out how to make your payments, but you will have to also figure out a way to set even more money aside to pay for all the added fess you incurred.

Say Something Immediately If You Need Help

Many loan lenders will work with people who are honest with them about a situation causing hardships. If your bills are just a little beyond your reach right now, say something as soon as you know. Most responsible loan lenders will do what they can to work with you, ensuring they get their money back without making your life more impossible. If you wait to say something until you’re already late, there is often much less lenders are able to do to help out.

A short-term loan is intended to help people out of a bad situation, not put them into one. That is why making sure you do not get in over your head is so important. If you stick to these tips, you should be able to pay off your loans quickly and efficiently without the worry of the loan causing more harm than good. Just make sure you keep the loan at the top of your priority list until it is paid off so that you do not end up adding more to your bills than you can financially handle.

short term loans - 24 Oct, 2013 - No Comments

5 Painless Ways to Cut Your Spending This Week

Anyone that is looking to cut their spending on their household items in a hurry should consider looking all around their home. There are ways of being able to cut spending in every room of most people’s homes. Decide which items you need the most, and look for the best deals for those items so that you are getting the most savings out of every item you need. Here are a few other ways to cut your spending habits down rather quickly.

Use Coupons

While this may seem obvious, many people do not take into account the multitude of coupons available to them. There are coupons in most papers along with the store flyers, plus there are coupons that you can find and use from the Internet. Check the stores around you and see which ones take online or printed coupons, and go into the stores armed with your coupons and a list of the things you need. If you can use all of your coupons and stick to that list, you will walk out with the items you need most for less than they would normally cost you.

Make Bigger Meals

This may sound counterproductive, but it can actually help you cut your spending in more ways than one. First of all, you often get discounts from many stores from buying in bulk, which will be the case if you are making bigger meals. Second, you can save the leftovers, allowing you to have meals ready to go for a few days in a row or frozen leftovers that allow you to have meals at hand for the next week. Taking the time to make one larger serving will leave you with leftovers, which can then help you avoid eating out, saving you even more money in the long run.

Keep Snacks On You

When you are sitting in the car or at work and you get a bit of the munchies, or even get full blown hungry, you often reach for the closest thing at hand. That can mean the local vending machine or drive-thru restaurant. This is money that is being spent unnecessarily. If you have a snack you can reach for, you will keep that change or those singles in your pocket and save the money for something you really need.

Compare Service Providers

There are many different services that can cost you less than you are paying now. This is especially true for services like your Internet, phone, and television. Cellular service also has the ability to be compared, and unless you are located in the middle of the country back roads, most of the services are comparable. If you want to see just what kinds of deals you can get, call up your current providers and see what types of deals you could qualify for. They may be willing to rework your current services at a discount in order to keep your business.

Use Items Fully

If you want to cut your spending further, don’t throw items away that still have use in them. This is true for foods as well as household items. Most people have thrown an item away thinking they will have no use for it only later to discover they needed it after all.  If you have items you are unsure how to reuse, look up different ideas or offer them these items to other people for free or trade. This allows you to spend less, and it can save other people money at the same time.

When it comes to ways to cut your spending, there are things you can do now that will make a difference. Don’t overlook items, no matter how large or how small, if you want to save money. It all adds up and helps cut down on your bills at the end of the month and will keep more cash in your pocket.

finances - 16 Oct, 2013 - No Comments

4 Advantages of Applying for a Short Term Loan

Short-term loans have quite a few advantages to them. You can get the money you need quickly, and get them paid back off quickly, leaving you with a source of money when you need it most. Here are some of the biggest advantages to getting a short-term loan when you need that little bit of extra money in a pinch.

Quick and Easy Application Process

One major advantage of getting a short-term loan is the application process. You can apply for the loans in typically just a few minutes, and you can find out if you have been approved in anywhere from a few minutes to a few hours. Many of these loans allow you to do the entire application process online, making it even more advantageous to those who need to find out about getting a loan any time of the day. These loans can often be applied for, approved, and paid out in a day or two, giving you quick access to the funds you need with little or no down time.

Money Right When You Need It

When you have an emergency come up, you often need the money as quickly as possible. This is where a short-term loan can be your best friend. Most loans are able to pay you the funds you have been approved for the next business day after you sign off on the terms of the loan. This is especially accurate for most loan companies that allow you to apply online. No more waiting around for who knows how long to find out what documentation the loan company needs, and then waiting even more to find out if you have been approved. Now you can go through the entire process in a few hours and have your money shortly after that.

Less Paperwork to Fill Out

Short-term loans often require very little paperwork. Most of them require you to show some sort of documentation proving what your income is so that they know you can repay the loan, while some companies will require proof that you are still employed by the company that provides your income. Beyond that, very few documents are required in the majority of cases. Should you decide to go with a longer-term loan, you will often be required to come up with quite a bit of documentation to prove who you are, how much income you have made over the last 2-4 years, and how long you have worked for the same company. There may even be more documentation beyond that if you go with a long-term loan.

Quick Repayment Schedule

One great advantage that most people forget about when it comes to short-term loans is the ability to pay the loan back quickly. It may seem like that would be detrimental, but it is actually a benefit to most people. They are able to get the money they need quickly, and then start paying the loan off right away. This means they do not need to adjust their monthly expenses for long, nor do they need to change around their budget to accommodate this new expense for months or years on end.

All loans have advantages, especially for those who need to be able to get money quickly. If you want to be able to go through and apply for a loan, get approved, and get your funds in hand in hours instead of weeks, then a short term loan is precisely what you are looking for. Use these loans to your advantage when an emergency hits, as that is what short-term loans were designed to cover.

short term loans - 11 Oct, 2013 - No Comments

Avoid These Five Sneaky Bank Fees

Banks, for many people, are a necessary evil. We need a place to keep our money safe and where we can earn some interest over the years.  However, many banks impose fees on their customers, and many of these fees are snuck in without many realizing until they see them listed on their account records.  Here are five of the more common sneaky bank fees and what you can do to avoid them.

Service Fees

Just being able to have use of the bank, have an account, and access your money can land you a fee. It is one of the sneaky bank fees because they are basically charging you to manage and use your own money. Some banks may even charge you $10 or more a month just to have the account with them.  One way to avoid these fees is to shop around for a bank that does not impose this fee on its customers. Joining a credit union is also another option. If you like your bank but dislike the fee, talk to a representative and see if they can do something to waive this monthly cost as sometimes the threat of losing a customer can help resolve this issue.

Overdraft Fees

It makes sense that the bank would charge a fee if you try to spend more money than you have in your account, but often times the fees are extreme, hidden, and not disclosed in detail. It is a sneaky bank fee that catches too many people off guard. Many times the fee is charged even if you have money pending in the account but has not quite cleared yet. Many people get caught with this fee when they make a deposit and then try to use that money before it fully clears the bank. The best way to avoid this fee is to wait at least a day or two after making a deposit before you try and spend money.

Minimum Balance Fees

This is one of the sneaky bank fees that get many customers upset. Some banks charge a fee if you do not keep a minimal amount in your account at all times. If you have $500 and the minimal balance is $200, you can only spend $300 of your money without incurring the fee. Even if you only drop below that minimal balance for a week out of the month it can be enough to penalize you with this fee in some cases. The most effective way deal with this issue is to switch banks or complain and see if  the bank can remove the fee. This can work if you have been a long time customer or have a lot of money in your savings account.

Minimum Deposit Fees

Perhaps one of the most aggravating of the bank fees is the minimum deposit fee. This fee has been around for a while at some banks and others are just now beginning to push it on their customers. This sneaky bank fee is applied to your account if you do not have enough deposits coming in each month. Some banks take all deposits throughout the month and total them and other banks want one single deposit to be the minimum required amount. Most banks won’t budge on these fees and shopping around for a new bank may be your best option.

ATM or Transaction Fees

One of the reasons why people use a debit card is to have easy access to their money. Banks can get you here though because there is a sneaky bank fee that many people will just deal with for the sake of convenience. ATM and transaction fees can be applied to every transaction or ATM withdrawal that is made. Depending on how often you use the card it can really add up. Looking for a bank or credit union without these fees is the best option as most banks will not waver on these fees.

finances - 9 Oct, 2013 - No Comments

Using Short Term Loans Wisely When Unemployed

When you need money fast, you can look into whether you qualify for money in the form of a short-term loan. These loans are designed to help you when you run out of cash temporarily and need a loan to get you through the rough spot. It may seem like a free money loan but you will have to pay back the money you borrow plus whatever fees or interest are associated with it. Especially if you are unemployed, you need to be very careful when taking out a short-term loan.

Take Out Only What You Can Afford

A loan is when a bank or lender gives you money with interest attached under the agreement that you will pay it back. The number one thing to keep in mind when applying for a short-term loan is how much you can afford to pay back. If you can only afford to pay $200 a month plus the fees and interest then do not take out a loan that will have you paying $250-$300 a month.

Use the Loan for Emergencies Only

The way you use the money from a short-term loan is also very important. The best way to treat the money is to get the loan and use the money only for emergencies. Your car breaks down and  you cannot afford to fix it, or you have a sudden and unexpected medical bill or similar situation you cannot pay for at that point and time. Without your car you can not look for work, and if you can not get the medical attention you need you may be too unwell to search for work. This is when a short term loan comes in handy. The money from these loans should not be treated as free spending cash and must be used wisely, or you can end up in a world of trouble when the money is gone and you still can’t make your bills and expenses.

Do Not Take Out Too Many Loans

You may qualify for several loans, with different amounts and different fees and interests if you apply to several different lenders. Resist the urge to take out several loans at one time. Remember point number one, only take out what you can afford. Just because you qualify for three loans at $1,000 each does not mean you can afford it, each loan can have vastly different fees and interest rates so instead of it being $3,000 you owe in a few months it may be closer to $5,000. This is why you should not take out too many short-term loans at one time.

Do Not Give the Money to Others

The money from your loan is yours and you need to use it wisely. With the sudden windfall of money, it can be tempting to help others out in their time of need. Being unemployed usually means money is tight and you can’t forget that a loan is not free money and you will be paying it all back. Do not loan friends or family money and make sure you are taking care of your own needs.

Limit the Use of Loans as Much as Possible

Short-term loans can be handy and can be real lifesavers in a pinch, but they are designed to be temporary help. You should not rely on them as a constant means of staying afloat. These loans are to be used to help get you through a hard spot and to help get you back on your feet. Living from loan to loan is risky and dangerous and will eventually run out and leave you in worse shape than you were to begin with. So be smart and stand on your own as much as possible and use short-terms loan as an emergency fall back only.

short term loans - 7 Oct, 2013 - No Comments