7 Things Not To Do When Applying for a Loan Online

Upfront Fees

When applying for a loan online never complete an application for a company who is asking for an upfront fee. Many companies will ask you to fill in an application form and then ask for a processing fee. On many occasions the loan company will ask for a fee to be taken on a date in the future, and ask for your bank details on the same day as applying for a loan. This is still an upfront fee and you should not provide your bank details to any broker. However there are plenty of payday loans online lenders where you can apply directly to lenders to avoid paying up front fees.

No Telephone Number

Any legitimate online loan company will display either a free phone or geographical telephone number. Many websites asking for an upfront fee do not display a telephone number making it difficult for the applicant to get a refund if their loan application does not proceed. Some companies will provide a telephone number which charges the caller per minute. The cost of the telephone calls should be clearly displayed. These websites should be avoided at all times, and alternatives should be sought where telephone numbers are clearly advertised and calls are charged at local rates.

No Address

Again any legitimate loan company will have a ‘Contact Us’ page on their website. On the ‘Contact Us’ page the loan company should supply would be borrowers with a full postal address, along with other details such as an email address and phone number.

Applying for a Loan Online

Lender Panels

When applying for a loan if you are using a broker, always ask how many lenders they have access to. A genuine broker should be able to tell you the names of the loan companies they work with. Avoid any brokers or online websites which state they have hundreds of lenders (there are not that many!), and also any company who will not divulge which lenders they work with.

.Org.UK

Do not apply on any loan website that has an ‘.org.uk’ suffix (the last part of the website address). Any site that has ‘.org.uk’ will not have a consumer credit licence issued by the Office of Fair Trading, and therefore is trading illegally. These suffixes are intended for charitable organisations but unfortunately some loan companies have acquired these websites.

Multiple Applications

When making a loan application online, you should carefully select the website you use. You should only make one or a maximum of two applications at the same time and follow through the progress of your application with the new short term loan lenders. If you make too many applications in a short space of time it can reduce your credit score, as the loan providers will undertake a credit search through a Credit Reference Agency for each application you make.

Guaranteed Acceptance

It is impossible for an online loan service introducer or broker to guarantee that your application has been accepted or approved. Only the lender can approve your application and only after you have signed a credit agreement. Many fee charging companies use this as a tactic prior to asking you for a fee. You should avoid any brokers or introducers that tell you your loan is approved or guaranteed before you have signed a credit agreement with the lender who is offering you the money.

Debt Elimination Methods : The Snowball

The debt snowball is a powerful method for eliminating your debt more quickly, relying on a simple strategy of paying off your smallest debts first. It is not an appropriate course of action for people who are struggling to meet their repayments, but is useful for people who are basically solvent but have large amounts of debt hanging over them.

Starting The Snowball

The basic steps to setting the snowball in motion is to list your debts in order of size, starting with the smallest, and working out a budget that allows you to meet the minimum repayments on these debts each and every month.

debt snowball

Next, you need to find some extra money from somewhere which you can use to increase the repayment on the smallest debt. This needn’t be a huge amount, and should be fairly easily found through economizing on some aspect of your spending.

Once you’ve found this extra money, resolve to add this amount to your smallest debt repayment every month, while still making the minimum repayments on your larger debts.

Clearing The Smallest Debt

At this stage, it may seem that little progress is being made, but stick with it, and in time your smallest debt will be cleared. It’s at this point that the strength of the snowball idea becomes apparent. You now need to take the entire monthly repayment that you’ve been making on the now-cleared debt, and add that to the minimum repayment you’re already making on the next smallest debt.

This should bump up the amount you’re paying off on this debt quite dramatically, without changing your overall repayments. Once this debt has been cleared, you apply the same process to the next smallest debt, and so on until you’re completely debt free.

The beauty of the snowball method is that you’ll repeatedly experience the psychological boost of clearing a debt, however small, and as your repayments move up the chain the process of clearing debts gets quicker and quicker, giving you a real sense of being in control, in contrast to the ‘getting nowhere fast’ experience of trying to clear all your debts at once.

Education without financial stress is possible by means of student loans!

With the support of financial support from the federal government, millions of students are able to pursue higher education without worrying about expenses due to education. The students are supported by the federal government according to the financial requirements of the students. Stafford loans, Parent PLUS loans and Perkins loans are some of the federal programs that are supportive to the students. To be considered for the financial aid from the government, the Free Application for Federal Student Aid is to be filled and submitted by the students.

Loans to get higher education

Stafford loan is the loan program from the federal government to meet the college expenses. The repayment begins six months after graduation. The students get eligible for subsidized Stafford loans by demonstrating financial distress. In such cases the interest on the loan is taken care of by the government until the time for repayment begins. Stafford loans can be obtained either through Direct Student Loan Program or from the private lending companies through the Federal Family Education Loan Program. The parents who need loans to support the education of their wards can apply for PLUS loans called otherwise as Parent Loan for Undergraduate Students. These loans can be obtained by the applicants irrespective of financial needs. The loans are given assurance by the federal government and the fixed interest rate on the loan is 8.5%.

The interest rates on Perkins loans are lower than PLUS loans. Around 5% is charged as interest on Perkins loans for which reason the offer is highly in demand. The repayment begins 10 months after graduation. The interest on the loan is assumed by the federal government until the repayment period begins. A sum of around $4000 can be received as loan for one year and the maximum amount is $20000 in lifetime. For the graduate students the loan amount per year can be up to $6000 with a maximum of $40,000.

student loans

Federal Work Study Program enables the college students who find it hard to manage expenses while in college. You need not allow the amount of funds you receive to decide on your course or level of education. There are variety of financial support to help you undertake mass media courses. Depending on your requirements, you can opt for college loans, government loans or loans to suit your situation. These loans can be obtained either from government financial organizations or private lenders. Since the lenders of this type of loan understand and consider the situation of the students, and the fact that there is no adequate time to build credit, the terms are simple and lenient.

Education loans to support the students undertaking mass media courses are not required to work for repaying the loan. The student loan programs are specific about the students focusing on education than on settling the loans while studying. In fact, a grace period of around 6 months is allowed so that the students can get placed in employment prior to begin repaying the loan. All the student loans are generally categorized into federal loans, private loans and consolidation loans. Education grants, special grants, financial institution loans, federal loans, and other loans from federal government or private lenders are some of the sources of financial support for the students.

Federal loans are subsidized and the loans are availed through the financial institutions and the interest rates are lower. But the applicants are required to demonstrate the financial needs to get eligible for most of the offers of loans from the government. PLUS loans are offered to cover the deficiency in funds raised through other loan programs or grants. The private loans are availed by the students who do not get eligible for federal monetary support. Free Application for Federal Student Aid can be submitted to know which of the offers you qualify for. The education cost is met with the support of scholarships and grants besides loans from the government and private lending organizations.

Choosing Whether to get a Payday Loan

There is so much negative press about payday loans that there are probably some people that would never consider them at all. However, sometimes it may feel that you have no choice but to borrow money and if you have a poor credit record then this could be the only place to turn. It can be an option that works out well for some people, but it is worth understanding more about them before you sign up.

Firstly you will have to pay the loan back on a certain date. You will have to pay back the amount you borrowed plus the interest and this will usually happen within a few weeks, although it could be up to a month. It is very important to be aware of when this date is and to be completely sure that you will have enough money in order to cover the payment. There will normally be a fixed fee plus interest added for each day that the repayment is delayed. This will be clearly laid out in the terms and conditions of the loan and it is advisable to have a good look at this. Think about what might happen if it cannot be paid back and how much more it will cost. Make sure that you can guarantee that you can pay it back.

get a Payday Loan

There are people that take out another loan to pay back the one they have. This can lead to big problems and so should not be considered to be an option. You need to use your income to pay it back. You also have to be sure that not only will you be able to pay it back but you will be able to manage then until the next pay day without having to borrow money again.

However, there are many people that can confidently do this. They have an emergency expense and have no money left to pay it. They get the loan and then pay it back in full when they next get paid and then carefully budget so that they can manage until their next pay day. It is a matter of being well disciplined and making sure that you are confident that you will be able to manage. Then the payday loan can be a good way to get you out of an emergency situation. It is vital though, that you do the research and decide whether it really is the right thing for you and your personal situation.

How a Trust Deed works

Makes your debt repayments affordable again

During a Trust Deed, your unsecured debt repayments will be rolled into a single affordable monthly payment. You’ll only pay as much as you can afford after you’ve covered your bills and other living costs.

Writes off the unsecured debt you can’t afford

On successful completion of your Trust Deed, any unsecured debt you haven’t been able to repay is written off for good, as long as it was included in your Trust Deed – Note you may have to repay any debt not included in your Trust Deed.

Clears unsecured debts in three years

In most cases, a Trust Deed lasts three years – so you’ll have a clear date for becoming free of the debts included in the arrangement. You’ll be expected to make a payment every month during this time.

Apply for a Trust Deed

Keep in mind that you’ll only be eligible for a Trust Deed if you really need it. Your lenders are only likely to accept a Trust Deed if they can see you won’t be able to repay your unsecured debts in full within a reasonable period of time under your alternative repayment arrangements. At the same time, you must be able to commit to regular monthly payments.

Disadvantages of a Trust Deed

There are a few disadvantages to consider before you go ahead and apply for a Trust Deed.

Firstly, it will have a significant impact on your credit rating. This could make obtaining further credit more difficult for six years and if your Trust Deed fails, you could be made bankrupt.

Also remember that because you’ll be expected to pay as much as you can throughout your Trust Deed, you’ll be left with very little money for anything except your essential living costs.

And although you’ll be able to stay in your home, homeowners who enter a Trust Deed may be required to release equity from their home as part of the arrangement. Note that you may find it harder to obtain a remortgage and you may pay a higher rate of interest if you are successful.

But keep in mind that the consequences of not getting the help you need could be even more serious.

How debt consolidation works

Turns multiple debts into one manageable monthly payment

It can be difficult to keep track of your finances when several different payments leave your account every month. A debt consolidation loan enables you to completely repay multiple existing debts – effectively rolling them into one new loan – which can make dealing with your debts a lot simpler.

Reduces your debt repayments

Your new loan could also help you to reduce the amount you pay each month. For example, repaying a debt consolidation loan over five years should cost you much less per month than repaying your existing debts over three years.

The longer the repayment period, the smaller your new monthly payment will be – but remember that this also means you’ll be paying interest for longer, and you could pay more overall as a result.

Could reduce the interest rate you pay

If your debt consolidation loan has a lower interest rate than the debts you’re paying off, the amount of interest you pay could be reduced (and that means lower monthly payments). This could be especially helpful for reducing the cost of high-interest debts, such as credit cards.

Just keep in mind that if you decide to repay your new loan over a longer period of time than your original debts, you may still end up paying more interest in the long run.

debt consolidation

Simplifying your finances

A debt consolidation loan could simplify your finances by letting you repay all your existing debts in one go, leaving you making a single monthly payment to a single lender.

  • You’d be less likely to make your payments late – or forget them altogether – which means you’d be less likely to be charged or damage your credit rating (something which can really add to the cost of getting credit in the future).
  • And since you’d be making just one payment per month, budgeting should be a lot easier, as you’d know exactly how much money to set aside for it.
  • You’d also save yourself the hassle that goes with making multiple payments, checking statements, and figuring out how much debt is left, how long it’ll take you to clear it, and so on.

Reducing your monthly costs

Debt consolidation gives you a valuable opportunity to reassess your situation and really plan your finances. It’s a chance to start over with a single larger debt, rather than multiple smaller debts.

This time, when you arrange your repayment terms, you’ll already know how much you can comfortably afford to pay every month without taking up every penny of your available income.

A note about debt consolidation

If you’re thinking about debt consolidation, it’s important to recognise that repaying any debt more slowly will delay the day you’re debt free.

And unless the interest rate on your debt consolidation loan is significantly lower than on your previous debts, you might end up paying more in interest overall, as your interest will have more time to grow.

Having said that, most people who consolidate their debts figure that’s a price worth paying if it means they can bring their monthly payments down to an affordable level.

Finally, remember that securing any debt against your home should only be considered if you’re completely sure you can afford your repayments. Failing to repay a secured debt could result in the repossession of your home.

How quickly should I repay?

If your repayment period is:

  • Too long, you’ll pay less each month – but you’ll pay more than you need to in interest.
  • Too short, you’ll pay less in interest – but your monthly payments might be uncomfortably high.

In most cases, the best way forward is based on a compromise – basically, you need to arrange a repayment period which is as short as possible, but which you’re sure you’ll be able to keep up with.

Learn how PPI was mis-sold to you and make a claim now

You cannot possibly still be lost in the dark the mis-selling of PPI because it has its fair share of talk in the news and social media. The scandal that PPI brought to the financial services industry made a lot of banks and known lenders working double time to investigate on PPI claims made by their customers.

If you believe you were a victim of this mis-selling fiasco and you haven’t made a claim yet, don’t pass up the chance of getting your money back. After all, this dead policy meant to protect you by helping with you repayments in times of sickness, accident, and unemployment only made you liable to a hefty sum in premium and interest. It’s about time you learn about how you were wrongly signed up to it and reclaim your payments.

If you still haven’t got the foggiest that you’ve had PPI all along, start by looking into your account related documents. Because it’s a credit repayment policy, it has to be applied alongside your loan, credit card, or mortgage with your bank. Check your statement of account, credit agreement forms, and other bits of paperwork and see any reference to PPI. Also, a policy certificate should have been sent to you after the sale. Get these documents together as you can use them to back up your claim.

A PPI claims management firm advert in a paper

At this point you’ve got an option whether to hire the assistance of a PPI claims company or make the claim yourself. Either way, you still stand a great chance of reclaiming your money.

When you’ve organised the paperwork that you need, put your PPI claim in writing. Specify the reasons you have for having been wrongly signed up to the policy together with your intention of getting a reimbursement of the payments you made to it, including the interest. Your bank should refer to your letter, your attached documents, and the information in their database when they make an investigation.

There are some ways through which you can figure out whether you have been mis sold PPI:

• Were you informed about exclusions like pre-existing conditions?
• Did they inform you that most of the PPI from the one time premium payment is for 5 years?
• Have you been informed that even after 5 years you will still have to pay interest on the initial premium since the premium is directly added to the loan?
• Did they inform that the premium will be added to the loans and subject to the interest?
• Did they ask you whether you are self-employed or unemployed?

PPI claims generally take 6 or 8 weeks to be reviewed and decided on. However, if they to be more complex than expected, or lack in evidence, they may take longer. To find out the progress of your claim if you feel that the bank has been taking quite longer, you can contact them to follow up. On the other hand, a decision will be ready for you and they will have to notify you about it.

If it happens that they rejected your claim, decided contrary to how evident that mis-selling took place, or they deliberately ignored your correspondence, lodge a complaint against them at the Financial Ombudsman Service. The Ombudsman will help you resolve the matter further and when successful, will require your bank to provide a full refund of the PPI premium you paid for, plus the interest it rolled in over time.

How can I lower my monthly debt payments?

Debt management is a way to lower your monthly payments on your unsecured debts – such as credit card balances, an overdraft, a personal loan, or a Hire Purchase agreement – if you’re struggling with your existing payments.

Debt management can’t lower your mortgage payments, however – you would need to speak to your mortgage provider (who may be able to give you a temporary ‘payment holiday’ until your circumstances improve).

If you cannot afford your mortgage payments because of unsecured debts, and you enter into a debt management plan, your mortgage will be considered a priority over other forms of borrowing. This means you could reduce your unsecured debt repayments to help you afford your mortgage, if you’re really struggling.

Debt-Management

What is debt management?

Debt management is an informal agreement with the people you owe money to, where you agree to pay back what you can afford every month towards all of your unsecured debt.

You’ll only qualify for debt management if you’re already struggling to repay what you owe every month. This could happen for all sorts of reasons – perhaps you’ve had a change in circumstances and can’t manage your payments anymore? Whatever your reason, there are people who can help.

Lenders would only agree to lower payments if they knew you could afford to repay what you owed within a reasonable amount of time – they don’t have to agree to it at all.

While debt management has helped many people out of a difficult situation, there are consequences. Lowering the amount you repay every month damages your credit record – making further borrowing more difficult for at least three years. And you may end up paying more interest overall, as you’ll be paying it for longer.

However, debt management can be flexible, and if your circumstances improve enough you will return to repaying your debts as normal.

Short Term Loans Give You Much Needed Peace of Mind

Are you trying to think about how to get the pressure away from your financial life? The truth is… a lot of people are in your shoes, believe it or not. Sure, your friends might not be telling you that they’re really trying to get to a more peaceful financial life, but it’s there. They might be up all night. They might be going out less. In other words, they might be trying to do absolutely everything to keep their heads above financial disaster. So when there’s an emergency, they are going to absolutely stress out because there’s so much potential for ruin. What if they could turn to short term loans instead?

You have that option too, you know. Short term loans can definitely give you much needed peace of mind, as long as you open your mind to the possibility. You don’t want to just hope that things will be alright. You want to step into a new financial world knowing that everything is going to be just fine. Trying to just hope and pray isn’t going to really get you very far, in our opinion and experience. You have to take action and believe that things will improve after you get the money.

Short Term Loans

You can use the money from these loans for any purpose that you need — paying any type of bill that you need. If you need to pick up new school clothes for your kids, or some sort of medication, you can do that as well. It’s completely up to you to figure out what you’re going to do.

Applying online is really the best way to get short term loans over and done with. The application process is pretty fast, and they just want to make sure that you have the income to repay the loan when it’s all said and done with. If you don’t have that, then this isn’t going to be the right loan for you. On the other hand, if you know that you’ve got a steady income coming in, then all lights turn green as far the loan is concerned. You’ll be able to put this sticky situation behind you and isn’t that the entire mission anyway?

Take a chance and apply — the worst that can happen is that you’re rejected but that just doesn’t happen unless you misrepresented yourself on the application. Give it a try and get this financial emergency behind you today. You’ll truly be glad that you did!

Debt Management

If you are having difficulty paying your bills, debt management may be the solution. With debt management, someone else will deal with your creditors and attempt to come to some resolution so that you can pay down your debt. The person that is handling your debt management case will help you come to an informal agreement with your creditors.

Is Debt Management Right for You?

Debt management may be the right solution to your financial problems if you have unsecured debts and don’t have enough money to pay them, and if you owe money to only a couple of creditors. This may also be an option if you do not qualify for an IVA due to your debts being under a set amount of money, usually £12,000. Debt management is also a good solution if you only need a little help getting your financial problems under control, as it is a short-term solution.

There are several advantages to using a debt management company to help you get your debt under control; the main advantage is that you do not have to deal directly with your creditors, and this will help to eliminate a lot of stress. Another advantage is that you will only have one payment to make each month, as apposed to several.

Debt Management

In many cases a debt management company can work with your creditors so that while you are making your payments the interest and penalty fees are dropped; there is also the possibility that you can get the total amount that you owe reduced.

Some Disadvantages to Debt Management

A debt management company can be a great option if you want to eliminate your debt in an easy and convenient way, but there are some disadvantages as well. Many debt management companies will not work with you if you don’t have enough income to make a payment plan plausible; in addition, they often want you to own your own home so that it can be used to secure your debt. Another problem with debt management is that some companies may charge high fees, and it is also a possibility that they will keep your first month payment to pay those fees; this could put your accounts in arrears. In addition to this, the arrangements that the debt management company makes in your behalf are informal and carry no legal authority.

If you do choose to work with a debt management company you should be aware of the fact that they do not give out financial advice so even if you have other options that would work better for you, they may not advise you of these options.

Working with a debt management company is a personal choice, but before making that decision you should research all of your options to ensure that you are choosing the right solution for your financial problems.