Payday Loans in Comparison to Bank Loans
A payday loan is an unsecured loan in US and UK countries. As the name suggests, a payday loan is a loan lent to you so that you pay it back when you get your wage. Payday loans are usually borrowed during emergencies when no bank or any other financial institution would be willing to lend you money on such a short notice. Payday lenders however understand that emergency expenses do crop up and that is why they are more than willing to lend you the money as long as you have a stable job and a salary at the end of the month.
Payday loans have become popular of late because of their flexibility. When borrowing from a bank, one has to have a good credit history. If you have no credit history or that if your credit history looks bad, the bank will decline from lending you money. However, with payday lenders, they do not ask for credit history information. As long as you expect a salary at the end of the month and commit to pay the loan promptly, they will give you the loan. Payday loans are also unsecured loans with no collateral required to borrow the loan.
How to take and pay back a payday loan?
To borrow from a payday lender, all you need is approach one and state how you much you want to borrow. You will be required to sign an agreement in which you commit to pay back the loan plus the interest. The lender will need to know what kind of job you do, where you work and how much you earn. Payday lenders do not agree lending money whose amount is more than your salary since you might have problems paying back.
Once you have completed the paper work agreement, the lender will give you the money you want. Once you get paid your salary, you are supposed to pay the loan plus the interest.
When do you take a payday loan?
Payday loans should not be taken on a regular basis since they attract a large interest. In case you have some recurring expense, think of how else you can meet these costs rather than borrow a payday loan.
A payday loan is only suitable in emergency cases for example when you car breaks down and you have no penny in your pocket and no friend to run to. In such a case, you borrow the loan, fix your car and then pay it up promptly once you get your salary lest the interest goes up.
Payday loans are unsecured as compared to other loans
Differently from other loans, payday loans are unsecured. In a bank setting, when one is borrowing, they are required to secure their loans with collateral assets that the bank can auction in case you are unable to pay up the loan. With a payday loan, you do not need collateral security. The fact that you are employed in a stable firm and earning a salary bigger than the required loan is enough proof that you will pay up the payday loan. Again, the agreement you sign with the lender is legally binding.
Title Loans – A Good Option To Get a Loan Against Your Vehicle
A car title loan is similar to a home equity loan. In this type of secured loan the borrower gets quick cash using his/her vehicle as collateral. With a title loan, not only the car’s title, but also a copy of its key is given to the lender. The two remain with the lender until the loan is paid off completely.
Criteria Of Car Title Loans
Though title loans Houston, TX fall under short-term loans, they have an increased rate of interest in comparison to other forms of loans/credit. In this loan the credit history of the borrower is not taken into consideration by the lender. They only consider the vehicle’s condition and value that’s being used as collateral for the loan. They also verify the borrower has a regular source of income. Generally, in title loans the credit score of the borrower is not taken into account at all.
Despite the loan’s secured nature the lenders always charge high interest rates. This is because of the high default risk that is involved in title loans.
Generally it takes 15 minutes to get a car title loan in Houston Texas. On taking this type of loan from financial institutions the minimum loan amount should be $1,000 or more. It is because they deem title loans as less profitable and highly risky.
How to Pay off a Car Title Loan?
Getting rid of car title loan isn’t as easy as it seems. But you could easily pay off the debt on adopting one of the two measures listed below:
1) One of the best ways of paying off a Houston title loan depends on the situation and the credit score of the individual. There are really some great options available to the person having a good credit score. For example, he/she can replace the car title loan with a consolidation loan. But this option only works if the individual is employed in a reputable company or has good terms with one of the local banks or credit unions.
2) The other option is allocating the increased amount of money by making adjustments to the budget. This will allow the person to pay off more money towards the credit every month. Hence, one can get rid of the loan quickly, limiting its interest amount. In order to revamp the budget, one should cut down the expenses and look for the ways of saving more and more money. Though it might seem a
little hard initially, the results will be good. Click here to learn about building a family budget in Texas.
The Final Word
Car title loans are, no doubt, one of the best and fastest ways to get money, especially when the figure is double. Though you can research for other alternatives, if you manage the loan properly, taking a title loan isn’t that bad. Keep in mind that the nature of all these loans are the same as personal loans, payday loans, payment extensions, and workplace emergency loans.
Car title loans are one of the best ways to access cash with a quick turn around time. You will not endure any lengthy or complicated process for approval. Not from Houston? No worries. Check other other Longhorn Lending locations in Texas .
Best Ways to Spend Your Tax Refund
For those on a tight budget and who live from paycheck to paycheck, knowing how to spend a tax refund is helpful because it enables them to use the refund to take care of important needs and possibly fulfill long term goals. When you receive the refund you should first look over the budget for the month and figure out what the most pressing financial obligations are For example, if the mortgage and utilities take up a chunk of your budget, you may decide to use some of the refund to pay those bills before you allocate the funds elsewhere.
If you’re trying to figure out how to spend a tax refund, now is a good time to start an emergency fund if you haven’t already. This is important because there will be times when your paycheck will not stretch far enough during the week and this adds stress to your life. Even if you have health insurance there may be certain procedures or prescriptions that the insurance provider will not cover.
You can also use your tax refund to become debt free depending on how much debt you currently have If you only have $300 in credit card debt and your tax refund is $600, take some of the refund and pay out your credit card debt. Another idea is to use the refund to pay down other debts such as student loans, car loans or high medical bills.
Home renovations make sense financially because the better your home looks, the higher the value of the home will be when you sell it For those who are still not sure how to spend a tax refund, they should consider using the funds to renovate their homes. Many of these renovations don’t have to be pricey as even small changes such as new coats of paint and a change in fixtures can go a long way.
Charitable giving is another excellent way to spend your tax refund. Think about which social causes mean the most to you and research which charities best match your causes. You find out if the charities are legitimate, how long they have existed and where donors’ funds go during the year
In conclusion, a tax refund would be a financial blessing for many families and when you spend the refund wisely, you are on your way to financial freedom and less stress in your life.and those in your home.
Best tips for managing money as an expert
Money management is a skill not many people have. It all starts with self-discipline and the commitment to spend wisely.
How much do I spend?
To begin with, a financial expert will draw a budget that details the monthly income and expenditure. The budget will give estimated incomes and expenditures and create aside money for savings. Asa financial expert, you have to spend less than what your earn and stick to the budget as much as possible. For the budget to be useful, it has to be prepared monthly and then broken down to capture one’s daily spending since this way you will be able to capture all the small but recurring expenses.
Exercising financial muscle calls for creating priorities among your pressing needs and spending up to what the budget stipulates. This means that you will buy that which you can afford with the cash available, and if possible, you should avoid debts. Therefore, those needs that are not urgent will wait until the following month, where you will create a provision for them. This way, you will have a higher percentage of your income going to savings.
How to invest
Asa financial expert, you need to get involved in all the major investments you will undertake. A number of people make a mistake of allowing their financial advisers to take over this task and end up messing their hard earned income if the adviser leaves. This is because they do not have knowledge about the risks associated with the investments. As a rule, know the risks associated with your investments and put your money there with the full knowledge of the risks associated. If you can’t understand the risks, you are better of choosing a different investment where you understand the mechanics involved.
It is good practice to put your money in different investment vehicles. This way, you will be assured of returns in one sector when the other is not doing well. When done properly, diversification will help your finances grow at a higher rate than when you invest in one sector that may experience slow growth or a total collapse.
Amounts to invest
A number of people want to invest a lot of money at once. Asa result, they spend too much time looking for the required finances until the opportunity they were targeting slips by. Therefore, it is prudent to start small with whatever amount you have and inject more capital over time.
Category: Payday loans