Payday Loans - A Quick Fix?
Payday Loans are a really fast way to get your hands on a bit of extra money when you really need it. We've all been there - an emergency doctor's bill or urgent repair work that needs paying now, and there just isn't enough around to cover it. One easy application process later and you have access to funds to see you through until next pay day.
Remember the title though: payday. Which means you will be required to pay the loan within usually between two weeks and one month. See it as a cash advance on your paycheck - and be prepared to make the repayment on time, as most payday loans carry very high APR rates. That means, if you are not prepared to pay back quickly, you may end up spending much more than you bargained for. You may even end up in an even deeper borrowing cycle.
In order to manage this risk, most payday loan lenders will require that you are employed and earning a minimum salary. You will also need to be over 18 and be a full registered citizen - and finally, you may very well need a valid bank account.
A great plus to payday loans is that if you have an unhealthy credit history, you will still be considered. Therefore, assuming you have the necessary application requirements, you will most likely get a 'yes' on your loan request.
As with all borrowing, it is best to really make sure you are able to afford to take out a loan. Ask yourself if you will be able to cover yourself and above all to make repayments on time. That way, you will be able to head towards a brighter financial future.
Ease Debt Worries with Consolidation Loans and IVA
You may have heard of these and seen advertisements crop up on TV, but what are these?
Consolidation Loan - Manage Your Debts
A consolidation loan is designed for those who have many debts and are finding it hard to cope. This kind of loan will pay off all of your debts in one place, making them easier to manage. Usually, a consolidation loan lender will be able to combine your debts and negotiate on your behalf to get you a lower monthly payment - over a longer period of time.
Of course this can be a great help, but don't forget there are risks. Most important to remember is this: yes, you are managing your debts but they are not gone or reduced. You will still need to pay back the full amount of your debts and remember that this does not mean you are suddenly much better off.
It might be worth thinking about what got you into multiple debts in the first place? Is a consolidation loan going to change your spending habits?
IVA - Individual Voluntary Agreement
The IVA has been around since the mid 1980s. Put in the simplest terms, the IVA is an agreement between you and your creditor. If you are suffering under the strain of excessive debts you are able to set up an IVA which allows you to promise to pay back the debts to a monthly amount which is more manageable - this is usually set for a time period of around 5 years.
An IVA might be the best solution if you are facing a brick wall in your finances. If you are already declared bankrupt, the IVA will be able to annul this, and once you have paid off the debts, you will be officially declared debt free. Interest rates will be frozen which is also a huge bonus.
Remember: creating an IVA will not mean your debts are lower - they are the same and you will still need to pay them off within the set time period agreed upon. In order to apply, your debts will need to be a minimum of around £15,000 and have around 3 to 4 creditors.