How to Ensure You Have Cash When the Holidays Come Around

Every year, you might find that money is tight during the holidays. Keeping decent savings for emergencies and gifting or leisure might seem like a daunting task, but there are tried and true ways to ensure that you’ll be able to afford gifts this season.

Budgeting for the Holidays

Budgeting, at its core, is simple math and planning. Even when money is tight, there are many budgeting tips to help keep you on track financially, even during the holiday season.

The 50-30-20 Rule

First, figure out your income after taxes. If you pay taxes throughout the year, that’s great. You will likely be eligible for a refund during tax season. If you don’t, make sure you’re setting aside money frequently, so you don’t face financial strain later.

Once you know your income, a great practice is the 50 30 20 rule. Start by writing down all of your expenses, organized in categories of needs versus wants. The Needs will be payments towards rent, utilities, internet/cable, travel (parking, gas, car payments, train fare, etc.), groceries, insurance. Your needs should equal 50 percent or less of your income. If over 50 percent, consider places you can cut back. Be mindful about where you shop for groceries and what you buy. Junk food is expensive. Contact your loan servicer to discuss loan payment reduction opportunities.

Needs Versus Wants

Anything else is a want, and this can account for as much as 30 percent of your income. A budgeting tip to always keep in mind is: how can you reduce spending in this category? Can you get rid of subscriptions, cut spending on coffee and restaurants, or alter your lifestyle to benefit your bank account?

Savings

The last 20 percent (or more) should be saved. If you [...]

By |September 21st, 2020|Tips and Hints|Comments Off on How to Ensure You Have Cash When the Holidays Come Around|

How’s A Payday Loan Interest Rate Calculated

Payday loans are the easiest, fastest, and most convenient ways of raising cash when someone is in a tight financial situation. They’re easily accessible, and the lending requirements are relatively lenient in comparison to traditional banking institutions. This option is often attractive for users with bad credit scores and those who can’t find reprieve elsewhere.

Payday Loan Interest

But as with any loan, it’s essential to learn how interest rates work and how they’re calculated. Interest rates are the most important thing to look at when considering a loan. An understanding of how lenders calculate interest rates puts borrowers in a better position to negotiate or minimize the interest amount payable. For this reason, here’s some insight into how payday loans are calculated.

How do Interest Rates Work?

When a payday lender quotes an interest rate, they’re likely referring to the Annual Percentage Rate (APR). Generally, the interest amount payable is determined by three factors:

Annual Percentage RatePrincipal (amount loaned)Repayment period

For example, an amount of $1,000 with an APR of 120% and a three-month repayment will attract a total of interest of $206.33. But if the same loan amount under the same APR is paid with one month, the total interest payable will drop to $100. In other words, the three variables are directly related, and a change in one of them affects the interest owed.

What is the Typical Interest Rate on Payday Loans?

The Annual Percentage Rate for payday loans varies depending on the applicable legislation and the specific state. But based on the requirements of the Uniform Small Loan Laws (USLL), the average APR should fall somewhere around 40%—subject to other contributing factors.

Are Payday Loans Available Throughout the U.S.?

Different states have different regulations regarding payday loans. In some, [...]

By |September 7th, 2020|Payday loans|Comments Off on How’s A Payday Loan Interest Rate Calculated|

How Payday Loans Can Help In An Emergency

It’s normal for some people to find themselves short of cash towards the end of the month. Sometimes an unexpected expense happens. It becomes embarrassing to borrow when people know you have a job. If you ever find yourself in this situation, a payday loan might be just what you need. A quick payday loan saves you from the shortcomings of having to borrow from friends and relatives. For any of your financial emergencies, payday loans always swoop in to save the day. Below are different ways on how payday loans can help you out in a crisis.

Flexible Repayment Schedule

Taking a payday loan doesn’t mean all your financial troubles are over. While it might take you some time to get back on your feet, the payday loans will help push you out of a financial hole. The lender understands your situation, and this is one reason the payday loan comes with a flexible repayment plan. It’s upon you, the borrower, to schedule a payment offer that will stretch and cover the troubled times.

Quick Cash

When financial emergencies arise, quick cash is the only thing that can help you out. With payday loans, you receive money on the same day, depending on the amount and the terms for the specific money lenders. Some directories offer information about different lenders and their terms and conditions as well.

No Need to Worry About Credit Score

With payday loans, you only have to be worried about the terms and conditions of the lender. You don’t have to be bothered about your bad credit score. Payday loan providers only take into consideration the repayment plan. The lender doesn’t mind if you have a low or bad credit score as long as you [...]

By |August 17th, 2020|Payday loans|Comments Off on How Payday Loans Can Help In An Emergency|

Why Use A Direct Payday Loan Lender

Surviving paycheck to paycheck is never easy, but it is hard for many people and families. However, in the event of an emergency, anyone may find themselves strapped for the funds they need to resolve the crisis without falling into financial ruin. In such a crisis, a stopgap measure may be the difference between financial safety and disaster. In such situations, payday loans from a direct payday lender might do the trick.

Why a Payday Loan?

Payday loans are fast ways to get a quick financial stopgap in the event of a financial emergency between paychecks. Working with a direct payday lender is a fast and easy way to cover emergencies since banks or third-party lenders do not handle them. Those in need of a payday loan can get them fast without agonizing over bad credit or long bank delays.

There are other benefits to direct payday loans as well. For one, repayment of the loan is just as easy as getting the loan itself. This ease is because, just like the payday loan comes directly from the lender, payment is also direct. As a result, the loan process is quick and easy. Payday lenders often respond to loan applications with a day, rather than days or weeks banks or loan companies can take. For money needed in a hurry, this makes payday loans ideal for those who require cash fast.

Payday loans also utilize far less personal information than traditional loans. Payday loans do not increase the risk of identity theft or having private data sold to advertisers. Banks and other third-party lenders are notorious for selling such information, and being unable to keep it secure from identity thieves.

Contacting payday lenders is much easier than dealing [...]

By |August 3rd, 2020|Payday loans|Comments Off on Why Use A Direct Payday Loan Lender|

Traditional Banks Vs. Payday Lenders

People in difficult financial situations—including those with bad credit—typically endure an uphill battle in finding viable financial solutions. In such cases, the most common options for short-term loans are payday lenders or traditional bank overdrafts.

Unfortunately, consumer advocacy groups tend to paint payday lenders as the bad guys due to their high-interest rates for payday loans. But by looking at financial data, this criticism is more-or-less unwarranted with what banks charge for overdrawn accounts.

The Hidden Truth of Traditional Bank Overdraft Fees

A rarely discussed topic among consumer advocacy groups is traditional banks raking huge profits from unscrupulously high fees on insufficient funds. According to data from the Consumer Financial Protection Bureau (CFPB), banks make more than $17 billion annually from insufficient funds and overdraft fees.

Unless consumers take an active initiative to monitor their bank accounts consistently, insufficient fund fees can quickly add to exorbitant amounts. For example, let’s assume that a bank charges an average fee of $35 for every transaction that exceeds the level of funds in a checking account. A slight $10 overdraft could result in a $35 NSF fee, equating to an interest rate of 350% (per transaction).

To make matters worse, news reports—and even lawsuits—suggest that some traditional banks purposively manipulate the system to claim more overdraft fees. The prevalence of these overdraft practices is reiterated by articles appearing in Forbes and ABC News. The subject of burdensome overdraft is even touchier today amid the COVID-19 crisis as banks capitalize on unsuspecting account holders to make huge profits.

The Less-Discussed Benefits of Payday Loans

Contrary to traditional banks’ overdraft facilities, payday loans are structured to be transparent and upfront with their fees. Sure, the interest rates may be higher than the average APR of credit [...]

By |July 20th, 2020|Payday loans|Comments Off on Traditional Banks Vs. Payday Lenders|

Pros and Cons of Payday Loans

It’s rightly said that life is a rollercoaster ride, and the unexpected twists and turns can pop up at any time. Sometimes those instances result in unanticipated expenses that can place a short term strain on a household’s cash flow. Options are available to the general public to deal with financial uncertainties.

Payday loans are one such provision to meet the short term obligations. While the interest rate is high, these loans can be a tool to fill a short-term gap. While the option of payday loans may seem attractive, they need to be approached with some caution. Here we have compiled both the benefits and the risks of payday loans to give you a clear picture.

What Are Payday Loans?

Concisely speaking, payday loans are short-term high-interest loans. The borrowing amount ranges typically between $1000- $5000; they can go as high as $10,000. The paying tenure is between 16 days to 1 year based on the amount, paying capacity, and a range of other contributory factors.

Pros Of Payday loans

In situations that you cannot shoulder immediately like an unexpected medical emergency, payday loans can be beneficial. Given below are some of the pros of payday loans:

Instant cash: While banks require a lot of documentation and processing time for a loan, you can receive the money the same day with payday loans.

Ease of payments: Payday loans are effortless to settle too. The payment is automatically deducted from your salary account on your paydays or an agreed-upon date.

Cons Of Payday Loans

While your immediate obligations may be covered with a Payday loan, new debt is added. This debt can be scarier because of the relatively short time required for repayment. Some of the cons associated with a Payday loan are:

High-interest [...]

By |July 6th, 2020|Payday loans|Comments Off on Pros and Cons of Payday Loans|

How to Pay for Supplemental Education

For millions of Americans, adult education paves a path to better opportunities and financial prosperity. But obtaining a traditional degree is resource-intensive—requiring a lot of time and considerable costs.

College Isn’t Always the Best Solution

Regarding the latter, The College Board notes that the average cost of obtaining a four-year degree has tripled in the last three decades. The solution? Find alternatives to progress career-wise—case in point supplemental education.

Find What Works Best for YOU!

A traditional degree is not the only rewarding option to achieve financial prosperity. Some lucrative non-degree programs include vocational training, coding boot camps, and industry certification programs. But just like degrees, sometimes it’s not possible to foot the entire supplemental education bill through investments or savings. Luckily, there are lots of options to get tuition money—as shown below:

Student Loans: According to the latest student loan statistics, 45 million borrowers in the U.S. account for a record student loan debt of $1.56 trillion. While this may be deemed a nationwide financial crisis, it also points to the lucrative nature of student loans. These types of loans often offer favorable terms—include forbearance, deferment, and flexible repayment plans. Student loans for supplemental education can be accessed through several lenders and private banks.

Personal Loans: People who cannot access student loans can fund their schooling with a personal loan. They are an excellent option for borrowers with a good credit score and sound financial habits. Depending on your lender (e.g., credit union, non-bank lenders, or commercial banks), it’s possible to negotiate flexible terms.

Applying for Student Grants or Scholarships: Although grants and scholarships are highly competitive, they offer low-cost financing options—especially for disadvantaged students. For example, there are several grants and scholarships for veterans, minority students, low-income students, [...]

By |June 22nd, 2020|Loans|Comments Off on How to Pay for Supplemental Education|

Should a Student Take a Gap Year Because of COVID?

COVID-19 has altered and affected the lives of people on the entire globe. A pandemic, the worst in over a century, has required every facet of daily life to adapt. Education has been an area, especially hard hit. Children can carry the disease without symptoms, and the risk of transmission for COVID-19 is high. So, schools across the world have closed down and switched to remote learning to provide education.

A Changing World

Higher learning has also had to adapt in such ways. Plenty of colleges offered online programs before the pandemic, but with campuses closing for safety, hundreds of thousands of students have found themselves taking courses entirely online. With the shift to online learning and the ability to access campus resources limited or restricted during the summer semesters, some students might question if they should take a semester, or even a year, off from their academic studies. High schoolers graduating and preparing for college may likewise ponder such a decision.

The concept of waiting a year to attend college after high school is usually referred to as a gap year, and, along with pandemic concerns, the idea has other benefits.  The most significant benefit is the chance to work to save and gain life experience before attending college. Such life experiences are often highly valued by college application programs. What career path a student plans to pursue is also a significant factor. Many careers can be followed by entering a trade school or gathering world experience. Electricians, HVAC, and the like are better studied on the job and at community colleges. It might be worth attending community college to take a few early classes and transfer them to save money.

Plan Carefully, Don’t Act With no [...]

By |June 15th, 2020|Tips and Hints|Comments Off on Should a Student Take a Gap Year Because of COVID?|

How to Stick to Your Holiday Budget

Sticking to a budget at any time of the year can be tricky. And when you factor in gifts for friends and family, hosting or attending parties, and decorations, the holiday season can be all the more challenging to your bottom line. 

Below are some tips to help you stick to your holiday budget and keep financial stress off your Christmas list. 
Start budgeting early
The holiday season has a way of sneaking up on us. Start setting aside some spending money several months in advance. Better yet, work it into your budget for every month of the year. The earlier you begin to save, the less money you’ll need to put aside each month.  
Take everything into consideration
It’s easy to only focus on the price of gifts. But little things like wrapping paper, cookies, and even an increased power bill due to Christmas lights can quickly eat into your budget. Make room for every expense, no matter how small. 
Download a holiday app
There are plenty of holiday shopping apps available that can help you find the lowest prices, take advantage of coupons, earn cash back, and more. Also, learn how you can save money on your holiday shopping, which will help you stay under your original budget.    
Stick to cash
Once your budget is set, make an envelope for each category and put the appropriate amount of cash in each. Using a cash system will keep you from overspending, something that can be easy to do with a credit card. 
Shop online to save money on gas
You did a great job of sticking to your holiday budget, but you spent a fortune in gas running to stores all over town. Many [...]

By |December 20th, 2019|Tips and Hints|Comments Off on How to Stick to Your Holiday Budget|

Get Out of a Debt Cycle in These 5 Steps

For many, debt isn’t just an obstacle. It’s a lifestyle. Once you fall into debt, it can be hard to pull yourself back out of it. Debt leads to borrowing, which leads to interest and more debt. And before you know it, you’re trapped in a vicious debt cycle. 

Fortunately there is a way out. Follow the five steps below to get out of your cycle of debt and achieve financial freedom. 
How to Escape a Debt Cycle
Step 1: Save up an emergency fund.
Your first thought is probably to throw every spare dollar at your debt. But one of the things that keeps people locked into a debt cycle is surprise expenses such as a car repair or medical bill. Before fully tackling your debt, build up a small emergency fund. That way your debt payback plan can remain uninterrupted by minor emergencies. 
Step 2: Consolidate debt and transfer it to a low (or no) interest rate.
There are a number of credit cards that offer low or even no interest rates for a select period of time if you transfer your debt to them. Doing this can free you up from interest payments that keep you trapped in a debt cycle. If possible, consolidate all of your debts into one loan or credit card. 
Step 3: Pay more than the minimum. 
Pay more than just the minimum on your balance each month. You’ll pay less in interest and will climb out of your debt cycle faster. 
Step 4: Live on a budget.
A key to breaking the debt cycle is maintaining a pattern of predictable spending. Create a budget so you know how much you’ll be allocating each month to food, bills, [...]

By |November 30th, 2019|Tips and Hints|Comments Off on Get Out of a Debt Cycle in These 5 Steps|