Payday loans – How to escape from its clutches?

If you are in need of some emergency cash, and you cannot wait till your next payday comes then payday loans are the best method to help you out of such a situation. Payday loans are loans of small amount with a high interest rate that are extended to customers who have to return it by their next payday. Debt help, when you have taken out a payday loan is sought quite often as payday loan most often lead you into a debt trap. The time period for returning a payday loan varies from 15 days to 30 days after which interest rates are most often hiked and you end up accruing the interest rates on the loan. Payday loan debt consolidation and debt management plans are the best forms of debt help available to you.

How can you achieve payday loan debt consolidation?

With the help of a payday loan debt consolidation you can bring down the amount that you have to make every month towards paying back your payday loans quite considerably. You can take a debt consolidation loan to pay back your payday loan debt. Usually such a debt consolidation loan is taken when the debt you want to pay off has a higher rate of interest than the loan you are taken out. With payday loans, this is taken for granted as they naturally have a high rate of interest all the time. The only issue in such a debt help that you can face is if you have a bad credit score the loan won’t be granted to you at suitable terms and condition. However a personal loan from even a bad credit lender is likely to have a lower rate that payday loans.

How can debt management plan help you?

If your debts have mounted substantially and you want a less risky option than taking out a loan, you can go for debt management. The various steps in a debt management plan aims towards making your repayment process easier. Usually a debt advisor will negotiate with the payday loan lenders and convince them to reduce the interest rate and extra charges and penalties or even try to write them off. Once your creditors have agreed to the new payment process, you have to make one affordable payment to the company. You should also search around for a few companies for debt help before you decide on one.

Thus by following the above two methods, you can payback your payday loans.

Wednesday, August 3rd, 2011 Debt Consolidation Comments Off

How To Simplify And Keep Your Finances Under Control

With today’s economy everyone is looking for ways that they can get control of their finances. A lot of these people however are not sure even how to begin simplifying their finances and often end up declaring bankruptcy as a result. Here are just a few tips that you can follow that will help you simplify your finances and be well on your way to financial freedom.

First of all you need to be sure that you are writing down any expenses that you may have. This gives you an accurate record of what bills you are paying and what other expenses you may have. This will give you a great starting point on figuring what bills that you can begin to do without and which ones are priorities. This in a sense makes you responsible for each dollar that you spend. You need to also be sure that you are not purchasing those items that you know you really cannot afford because it will just add to your overall expenses in the long run.

The next thing that you will need to do when you are looking at simplifying your finances is to kill all temptations. Each time you purchase something pay by cash only. This will help you avoid using your credit card for those unneeded purchases such as that great shirt that is on sale. You should only bring your credit card along for those bigger purchases than what money you usually carry. You need to still practice frugality here though because since you have that credit card in your hand you will be tempted. Go into the store with a list and stay focused on that list and do not stray from that list. Mentally tell yourself I only need what is on this list. This is also a great way to avoid those unwanted temptations.

You will need to also learn to think positively about money. Even if you are looking at losing your job and as a result not sure how you are going to pay the bills you should never think negatively about money. If you think money and wealthy are negative then you will not achieve your financial freedom goals.

All of these are great ways that you can simplify your finances. With these tough economic times, getting a good hold on your finances now can save you from bankruptcy later. Be sure that you are writing down all of your expenses and avoid those temptations. Also be sure that you are paying cash for any purchase that is not too big. Finally remember to keep that positive outlook and you will be well on your way to financial freedom.

Monday, August 2nd, 2010 Budgeting & Money Management Comments Off

Debt Negotiation Through a Debt Consolidation Company

If you’re swimming in debt over your head, you have several options to deal with it.  You could negotiate the debt yourself, declare bankruptcy, or go through a debt consolidation company.  Of all the options, going through bankruptcy is by far the worst, because it will remain on your credit history for several years, making it all but impossible to buy a new home or car and maybe even get a credit card.  Negotiating credit card debt is a good option, but doing it yourself requires you to only have one creditor to deal with.

If you have a few different creditors, perhaps that best option for you to deal with your debt is to go through a debt consolidation company.  A debt consolation company knows how to fix bad credit and will negotiate with all of your creditors for you.  This makes the entire process much easier and less stressful on your part.

Generally what a consolidation service will do is negotiate with your creditors to reduce your payment in exchange for a lump sum payment.  The company will send the lump sum payment in to your creditors and then you will have a monthly payment to the debt consolidation company to pay off the lump sum they paid.

However, there are many debt consolidation agencies out today that use less than scrupulous.  Some may take large cuts on the payments that you send in, so you end up paying much more than was actually negotiated on your account.  Others might take your monthly payments, but wait for several months before calling and negotiating with your creditors, hoping to get a better deal on your debt.  That’s good for the company, but bad for your credit history.

Always make sure to do your research and find reviews of different credit card companies before you get involved with them.

Saturday, May 8th, 2010 Debt Consolidation Comments Off

Some Basics For the New Stock Market Investor

Learning how to buy stocks for beginners online is not difficult, but it does take some focus and determination. There are a few things to learn so that you can do well with investing in common stocks. One old rule is: First, do not lose money. The second old rule is: Do not forget rule number one!

Stock investing can be fun and interesting. Finding the best stocks to buy right now, investigating them and then finally investing in those companies can give you a thrill from the chase. However, it is good to remember that stock investing is not designed to be fun – it is meant to be profitable. If you want excitement, then we recommend watching a Hollywood blockbuster instead, because your hard-earned money is at risk here.

When buying stocks, you can choose to purchase them using an index fund, via either a mutual fund or exchange traded funds (ETFs), or simply buy the companies individually once you have researched them thoroughly.

An index fund is comprised of a list of business that is owned as a group and traded as a single share, as with an ETF, or as a mutual fund where you buy units in the fund itself that owns the stocks in the index. The benefits of index funds are lower fees, lower turnover, lower taxes and transparency.

An exchange traded fund, or ETF as it has come to be known, is often an index fund too, but it is traded as a share that can be purchased, just like when buying shares in a company. There are now a growing number of ETFs available, covering all sections of the investment spectrum, from large to small company index funds to commodity funds that index various commodity futures indices.

With stock investing, you will need to know the symbol that the company trades under, known as the ticker symbol. Microsoft Corporation, for instance, trades under ticket MSFT. You will want to check out the latest results of your prospective investment to review their product line, growth rates, cash dividend pay-outs, etc.

Finally, when trading stocks, you will need a brokerage account to complete the transaction. Opening a brokerage account is much like opening a bank account and is not complicated. Typically buying a stock will cost as little as $5-10 each time you wish to buy or sell some shares. You can do this over the telephone or on-line; trading on-line is usually a lot cheaper. It is good to buy with a sizable amount of cash, say $1,000 minimum, so that the brokerage fees are only a small fraction of your initial capital. If you do not trade very often, you may also have to pay inactivity fees which cover the costs of keeping your account open whilst you are not actively trading.

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Thursday, May 6th, 2010 Financial Independence Comments Off

What is a good credit score?

The first thing anyone should do prior to applying for a loan of any sort is know what their credit score range is. A credit score is the number that FICO (the Fair Issac Corporation), uses to judge your credit worthiness.

The range for the FICO system is 300-850 with the median score being 723. A good score is anywhere from 620-700, which means that you will most likely be able to attain a better interest rate on a loan than others with a score under 620.

A bad score is anywhere from 600 and below. Basically what this means is that you’re in trouble and you need to get working on paying your bills on time. With a score like this you’re also looking at much higher interest rates and not as good of terms as your friends above with their 700 score.

A score is determined by 5 different areas. The first being payment history, this accounts for 35% of your score. Next, your credit utilization, which means the “amount owed”, accounts for 30% of your score. 15% goes towards the length of your credit history, while 20% is divided equally between the types of credits used and the recent search for credit.

The three major credit bureaus in the United States, Equifax, TransUnion and Experian all use this credit score to determine your worthiness to creditors. You’re legally allowed able to obtain a free credit report from one or all of these companies from so that you can check your score prior to applying for a loan or credit card. If you know your credit score prior to applying you’ll able to have a better understanding of what types of terms you are eligible for.

You are entitled to one free credit report in a 12 month period, but with a little ingenuity you can monitor your credit more often.  A common technique for this is to obtain one credit report from one of the credit bureaus every 4 months.  Since, for the most part, all three bureaus will have more or less the same information you can use this as a poor-man’s credit monitoring service.


Sunday, May 2nd, 2010 Finance Security Comments Off

Why You Must Save More to Make Your Retirement Wishes Come to Fruition

If you’re like most Americans, you have a variety of retirement wishes planned out far in advance, with ideas of foreign travel, golf, sunny weather and relaxation coming to your mind every time you think about retiring. But are really on the right track to live out your retirement the way you’ve envisioned?

It’s important to hope for the best, but plan for the worst. If you’re like most people, you’re already behind on saving for retirement–even if you’ve been careful to try and stay on track. This is because most people don’t take rising costs into account when they for retirement, or they don’t place enough importance on this factor.

There are several major factors at play with regard to rising costs as you enter retirement. One is inflation, which in the United States will erode your spending power by roughly 2% to 4% per year on average. Another is an increase in your health-care costs due to the natural complications of aging. And yet another is: You know all those retirement plans you have? They’re darn expensive.

Finally, if you’re more than 5 years away from retirement, you should probably assume that Social Security isn’t going to help you. That isn’t to say that the system is definitely going to crumble, but the fund is currently being depleted much faster than it’s being added to. Therefore, you’ll be best prepared for the worst if you assume it won’t exist while you plan out your savings.

There are many great resources available on the web to find useful investing tips for fueling your retirement fund, and you should certainly check them out to come up with a solid investment plan. But making the right choices as to where you put your money can only help so much; just as important, you’ll need to make sure you save enough in the first place to retire comfortably.

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Saturday, May 1st, 2010 Finance Security Comments Off

Financial Tips: How To Gain Financial Security

With the current economy the way it is, now more than ever people are trying their best to save money and plan for the future. Cutting corners and trying to scrimp by can be difficult at best. However, you can learn to save money by simply apply a few basic, and time tested financial advice to your lifestyle.

The First Step To Financial Security

Believe it or not, but one of the most important steps to saving money, is learning to budget properly. Your budget should keep you on track with spending in each area of your life. Whether it be bills, groceries, clothing, etc. With a budget you will know how to stay on track, and keep from overspending.

If you do not have a budget in place, this should be your first step in learning to save money. There are many resources available on-line where you can download step by step guides on how to create budgets. Or, you can also check out books and magazines on this subject at your local library with no cost to you as well.

Learn To Invest In Gold

Another way you can get ahead on your financial journey, is to invest in gold. There are many different types of investment routes such as gold ETF, to gold mining stocks, and hard assets. However, for a beginning investor we would recommend staring out with hard assets such as gold coins or gold bars.

Investing in hard assets is easy enough, that anyone can do it.  You can locate gold coins and gold bars at many different locations such as jewelry stores, pawn shops, and more. The main thing is to keep your eyes open when you are out looking around, as you never know what you may find.

Closing Thoughts

So here you a few simple steps that anyone can learn to apply to their lifestyle. You will reap the great benefits of having a more control financial situation, plus you can enjoy your investments in gold as well. Learn to take it one day at a time, so you don’t get overwhelmed. Before you know it, you will be on your way to a more secure financial future.

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Saturday, May 1st, 2010 Finance Security Comments Off

How Much for Retirement?

Long before you retire you should do the math to figure out how much you need for retirement.  The number is larger than you probably think, yet not impossible as long as you have the goal in mind.  It’s those with no goal that never reach it.  Knowing allows you to create a plan, ignoring the truth will leave you praying that social security still exists by the time you retire.

First of all I would figure out how much money you would like to have per year.  Since you’re still dreaming at this point feel free to choose whatever you think you can stretch too.  If you’re conservative pick 80% of what you make now.  Then you need to adjust for inflation by doubling that amount for every 20 years away you are from retirement.  Now that you have your yearly pay you divide that by 0.05 to determine how big your retirement nest egg needs to be.  Take a deep breath, I know that’s a big number.

Now you may need a spreadsheet or online calculator to help with the next part, but you’ll want to find the payment required with a 8 to 12% interest rate to total the amount of your nest egg over the number of months you have until retirement.  You now have a game plan for your savings goal.  You just now need to figure out how you can save that much money per month.  If you want to make that nest egg larger or do it with less money per month you can learn stock market tips and study stock market 101 fundamentals to increase your earnings per year.  Many people are able to increase their yearly returns to 15%, 20%, or more through investing for their selves instead of leaving their money to financial advisors.

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Tuesday, April 27th, 2010 Financial Independence, Saving & Building Wealth Comments Off

What You Should Know About Debt Negotiators

Before you get yourself into any debt negotiation programs, you need to consider first what kind of debt negotiators do they offer in such companies. You are already in huge debt all the more reason to become more selective with people who would be handling your finances.

They should be able to negotiate for you an amount smaller than what you actually need to pay for a set period of time. While the due date for this payment scheme may be sooner than you planned to actually pay off, you might be pleased to know that at least your debts will be long gone too. They can negotiate as much as half of the debts that you need to pay.

However, you have to be wary of debt reduction schemes such as this one. The first thing you should ask is how much would they charge you for their services. You may reduce your debt to half but if the charges are equal to half then you are better off paying them yourself.

Aside from this once you get into a debt reduction program they often give advice that could further aggravate your situation. For example, instead of dealing with your problems and facing your creditors directly you had to under go through a negotiator. Which means there would be instances wherein you are not aware of what is going on with your finances. Also instead of paying off your debts directly, you are directing your money to these negotiators, who are already earning interests out of your money. In turn, you may also get in trouble for not paying your debts on time and you may even have to pay fines for being late. Let’s say that the negotiation was not so successful, then the time that you did not act on your problem is now wasted.

Also, if you and your creditor has undergone a mediation, you have to follow strictly everything. To reduce the amount of your debt, your creditor might be willing to consider if you could pay the money sooner and much faster. That means from your end you have to come up with this money fast. And if you did not have enough savings then you might just have to borrow money again which beats the purpose of debt reduction.  If you are confused about whether or not you should consider debt negotiation, try to find a source you can trust or an online debt community for support.

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Tuesday, April 27th, 2010 Debt Consolidation Comments Off

A Great Solution to Your Old 401k Woes

Any good American employer provides 401k plans to its employees. In this day and age, with Social Security running low, 401ks are essential and can act as a type of social security insurance. A 401k is a retirement plan for working people. You can save up for your retirement by deferring a certain amount of money from your regular pay before it gets taxed. A traditional 401k will help you save while still working and is a great way for you build up your money before it gets taxed. If a company offers its employees a 401k plan, you know that they are good.

Basically, a 401k is only available for working people; people who are actively employed with a company that offers their employees a 401k plan. Also, 401k plans are particular to an employer and not to the employee. If you leave your employer, you cannot contribute to the same account anymore, though the money there is still yours. Not all people stay in one company forever. There might come a time when you’d want to leave your employer for greener pastures. If the company you are moving to also offers 401K plans to their people, you can simply rollover the funds in your old account to your 401k account with your new employer.

But there is one problem that might present itself to you. What if the company you are moving to doesn’t offer a 401k? If you encounter this kind of problem, you don’t have to fret; there is actually a very good solution to this. You can rollover you old 401k account to an individual retirement account or IRA. An IRA works the same way as a 401k. The only difference is that an IRA is set-up for individuals and not groups. Regardless of where you work, you can have one single IRA.

The first thing you need to do when planning on a 401k rollover to IRA is to open an IRA account. These are offered by many banks and financial institutions. Doing a 401k rollover is a better option than taking the money out. This way, you can continue on with your savings without being taxed. You can even do more than one rollover to IRA. You can consolidate all of your old 401k accounts into one IRA, organizing your savings better. An IRA account is a great way to continue your retirement savings, even after you leave an employer.

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Friday, April 23rd, 2010 Financial Independence, Saving & Building Wealth Comments Off