Model profit – Crom Well Models http://cromwellmodels.com/ Sat, 18 Jun 2022 19:57:30 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://cromwellmodels.com/wp-content/uploads/2021/10/profile.png Model profit – Crom Well Models http://cromwellmodels.com/ 32 32 [COLUMN] Customer compares Chapter 13 with various alternatives for $60,000 credit cards — https://cromwellmodels.com/column-customer-compares-chapter-13-with-various-alternatives-for-60000-credit-cards/ Sat, 18 Jun 2022 19:57:30 +0000 https://cromwellmodels.com/column-customer-compares-chapter-13-with-various-alternatives-for-60000-credit-cards/ THE client is 50 years old and married. He owes $60,000 in credit cards. He pays $2,000 a month in minimum credit card payments to keep the $60,000 current. His wife is not jointly and severally liable on these cards. She only owes about $2,000 in credit cards alone. They own a house that is […]]]>

THE client is 50 years old and married. He owes $60,000 in credit cards. He pays $2,000 a month in minimum credit card payments to keep the $60,000 current. His wife is not jointly and severally liable on these cards. She only owes about $2,000 in credit cards alone.

They own a house that is currently worth $1 million with a mortgage of $300,000. So their equity in the house is at least $700,000. The client’s home exemption is $600,000. This means there is $100,000 of non-exempt equity. According to the liquidation analysis, compared to Chapter 7, the customer will have to pay off the entire $60,000 of Chapter 13 credit cards over five years in 60 equal installments, without interest. All payments made under the Chapter 13 plan pay off the principal balance as there is no applicable interest.

The Chapter 13 plan payment is about $1,000 per month for 60 months, which will pay off all $60,000 in credit cards in five years. If the client makes all 60 payments according to the confirmed plan, the court will issue a discharge order at the end of the 60th payment. The discharge order will state that the customer owes zero or nothing on the credit cards at the end of the 5th year. Can creditors still sue the client for unpaid interest, absolutely not! Legally, the customer no longer owes anything on these cards.

Additionally, while the customer is on the plan, creditors cannot sue, call, or otherwise contact the customer to collect on the cards. The customer has peace of mind. He doesn’t have to worry about being sued. They can’t garnish his wages or take money from his bank accounts. The bankruptcy court protects the client’s residence from any attached creditor lien. Thus, in Chapter 13, the automatic bankruptcy stay protects the client, including all of their assets and home. This is the order of the bankruptcy court directing the creditors to cease and desist from all collection efforts against the client and its assets. Pretty cool!

The client pays their plan payments to the Chapter 13 trustee, a court officer whose responsibility is to ensure that all plan payments are distributed to creditors who have filed their proofs of claim. The trustee ensures that all payments are distributed to the correct creditors. In other words, the trustee can’t get away with your money. This is another reason why the client will have peace of mind in Chapter 13. It pays the trustee who is under the supervision of the bankruptcy court.

What other alternatives are there before the customer decides to seek Chapter 13 relief for his $60,000 credit card?

One option he had was to get a $60,000 loan with very high interest to pay off all his credit cards. There were many offers from lenders for these alternatives. Payday lenders have branched out into this type of medium-term, high-interest loan to avoid regulation. The offers are $60,000 at 50% to 100% interest. Does it make sense to get this type of high interest loan? No, this is not the case. The client could end up losing his house if he got this loan. He will live a life of pain. He is expected to pay off a $60,000 principal loan with $90,000 to $120,000 in three to five years. Compare it with zero or no interest in Chapter 13.

Another option he had was consolidation. He was actually in consolidation and was paying $1,800 a month for 60 months for six months to a “consolidator”. A “consolidator” is not an officer of justice. He is a businessman and consolidation is his business. What if he decides to close his business? Well, that’s the risk you take. One issue that arose was that two creditors did not agree to toe the line and sued for $30,000. Compare this to Chapter 13 where the court shields the client from all lawsuits and collection efforts. All collection efforts, including legal action, stop the minute the customer’s Chapter 13 is filed.

He also had the so-called “settlement” option. He can negotiate directly with creditors or use a third party to “settle” the debt at a price lower than what is owed. The client actually received several offers from various creditors to cancel part of the debt owed with a lump sum payment. For example, Creditor A will agree to accept 70% of what is owed $10,000 as settlement. Thus, for a payment of $7,000, the creditor will consider the case closed. Good luck raising the $7,000. Maybe you can do UBER at night and not sleep at all. After three months, you could have $7,000. The problem is that they want the $7,000 up front, not in three months. And, the other creditors do not agree to settle, they prefer to sue you immediately to recover their money.

Another option is to get a $60,000 HELOC or home equity loan and use the proceeds to pay off all credit cards. The interest rate for the HELOC is lower because the client’s home will be used as collateral for the loan. The client will have to obtain a second mortgage on his house for $60,000. Remember that HELOC loan interest rates fluctuate. When mortgage rates rise, as they did yesterday, and will rise for the rest of the year to rein in the high inflation at that time, the customer will end up paying double-digit interest on HELOC. And, if he stops paying on the HELOC, guess what happens? The creditor can and will seize his house.

It’s really no surprise that the client chose Chapter 13 relief to protect his home from levies, lawsuits, wage garnishment, bank levies and just put an end to all those harassing phone calls for collection, and the unwanted risk of foreclosure of the client’s home through a HELOC loan. Peace of mind, no interest and full legal protection from the bankruptcy court. Trustee guarantees that your payments are distributed to the correct parties.

Of course, if the client’s net worth was $625,000, they would only have to pay a little over $400 per month for 60 months. At the end of the plan, $35,000 is discharged or wiped out. He doesn’t have to pay the full $60,000, he only has to pay $25,000 of the $60,000 cards because according to the liquidation analysis, only $25,000 is not exempt.

If you need debt relief, schedule an appointment to see me. I will analyze your case personally.

Disclaimer: None of the above is considered legal advice and there is no attorney-client relationship between reader and attorney.

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Disclaimer: None of the above is considered legal advice to anyone. There is absolutely no attorney client relationship established by reading this article.

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Lawrence Bautista Yang specializes in bankruptcy, business, real estate and civil litigation and has successfully represented over five thousand clients in California. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or 1000 S. Fremont Ave., Mailstop 58, Building A-10 South, Suite 10042, Alhambra, CA 91803 .

(advertising supplement)

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Is it better to repay debts or save? https://cromwellmodels.com/is-it-better-to-repay-debts-or-save/ Fri, 17 Jun 2022 16:00:26 +0000 https://cromwellmodels.com/is-it-better-to-repay-debts-or-save/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Whether it’s better to pay off debt […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Whether it’s better to pay off debt or save money depends on your financial situation and your goals. Learn how to decide which one to prioritize. (Shutterstock)

When you’re in debt with mounting interest charges, it can be easy to get tunnel vision. In many cases, paying off your debt should be your top priority. But being so focused on paying off debt can sometimes make it harder to achieve other important financial goals, like building an emergency savings fund to help cover unexpected expenses.

Whether it’s better to pay off debt or save depends on your particular financial situation. Here’s an overview of when you should prioritize saving over paying off your debt.

If you’re looking for a debt consolidation loan to help you manage your debt, visit Credible for quick and easy view your prequalified personal loan rates.

Repaying debts or saving: what should you prioritize?

The priority you should give to paying off debt or saving can depend on the type of debt you have and the interest rates on each. As tempting as it may be to spend any extra dollars you have on paying off debt, if you don’t have a rainy day fund in place, it could hamper your financial goals. If a costly emergency arises – like an unexpected medical or auto repair bill – and you don’t have an emergency fund in place, you may need to take on more debt to cover those unexpected expenses.

Generally, your first priority should be to save money for emergencies. If you have already saved some money, you can focus on paying off your debts until you are debt free.

If you have very high-interest debt or a type of debt that has hard-to-manage repayment terms (like a payday loan), you’ll want to pay off that debt first to avoid paying more interest. than necessary.

If you’re still struggling to decide whether to pay off your debt or build your emergency savings, see how much it will cost you each month. Take note of how much it costs you to pay off the debt and how quickly you can realistically pay it off.

HOW TO CREATE AN EMERGENCY FUND?

Reasons to pay off debt

It may make sense to pay off debt before saving in certain situations, including:

Here’s an example of why paying off debt as quickly as possible can be a smart move.

Let’s say you owe $5,000 on a credit card with a 17% annual percentage rate, or APR. If you only make a minimum monthly payment of $121, it will take you five years to pay off the debt and you will pay a total of $2,573 in interest.

If you could double your monthly payments by paying $242 a month, you would pay off that credit card debt in two years and only pay $958 in interest. You can see how rushing to pay off your debt can make a huge difference financially.

If you have several high-interest debts that are weighing you down, you can consolidate these debts into one. debt consolidation loan, which is a type of unsecured personal loan. You will pay off your existing debt and then only have one monthly payment to manage. If you can get a lower interest rate with the new debt consolidation loan, you can pay off the debt even sooner.

Credible, it’s easy to compare personal loan rates from various lenders, all in one place — and it won’t affect your credit score.

Reasons to save

As long as you’re still making the minimum payments on your existing debt, prioritizing savings also has some benefits that are worth considering. Here are some circumstances where saving before paying off debt might make more sense:

  • You have no emergency savings. Running into a costly emergency can lead to increased debt, which can increase the amount of interest you’ll pay as well as the time it will take to get out of debt.
  • You are working towards a specific financial goal. If you have an upcoming expense, like a vacation or a down payment for a car, focus on setting aside money to cover your financial goal so you don’t have to go into more debt to pay for it.
  • You have a chance to earn compound interest. The money you save can earn you more money. When you put money in a savings account, certificate of deposit, money market account, or investment account, you may earn interest that accumulates and increases over time. The sooner you can start saving, the longer the interest has to accrue and the more money you can earn.

For example, let’s say you put $500 in a retirement account and invest $500 per month for five years with a return of 7.5%. If this interest were compounded annually, you would have $35,568 after five years.

HOW DO HIGH YIELD SAVINGS ACCOUNTS WORK?

Setting up an emergency fund

An emergency fund is an important safety net to have in case of unexpected costs. Here’s how to build one:

  • Add up your living expenses. A good rule of thumb for an emergency fund is to save six months of living expenses. That way, if you lose your job, you can still afford the necessities. If you are employed and an emergency arises, this fund will likely be large enough to cover unexpected costs.
  • Make a savings plan. Once you know how big you want your emergency fund to be, you can figure out how much you can afford to contribute to the fund each month. Add this amount to your monthly budget and stick to it as you would any necessary expense.
  • Open a high interest savings account. Don’t leave your emergency fund savings in your checking account or regular savings account. Look for a high-interest savings account to open and store your emergency fund in so that the interest accrues and increases your savings for you.

Strategies for Repaying Debt

Many strategies are available to help you repay your debts. Here are some of the most common to consider:

If a debt consolidation loan is the right debt repayment strategy for you, use Credible to view your prequalified personal loan rates and choose the loan option that best suits your needs.

Strategies to save

If you want to focus on saving, these strategies can help you get started:

  • Create a budget. Setting a budget and sticking to it will help you stay accountable, avoid overspending, and develop better saving and spending habits.
  • Reduce your biggest monthly expense. Although it may be difficult, see if you can reduce your most important monthly expenses. If it’s rent, you may be able to move to a less expensive apartment or find a roommate to help split the expenses. If your car rental is exorbitant, consider buying a used car when it ends. See what’s eating away at your budget and how you can save more.
  • Negotiate your bills. Some bills, like cable and Wi-Fi, are more negotiable than you might think. See if you can negotiate better deals for all recurring monthly expenses, which will give you more money to save.

WHAT IS THE 50/30/20 BUDGET RULE?

Can you pay off your debts and save at the same time?

It’s possible to strive to pay down debt and save at the same time, but it’s important to plan ahead and develop a strategy that will benefit you.

For example, perhaps you can set a budget that includes both savings and debt repayment, such as contributing $300 toward debt repayment and $100 toward savings each month. As you pay off more of your debt, you can put more money into savings and get closer to achieving your financial goals.

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Young people in South Africa urged to practice money awareness and avoid bad debt https://cromwellmodels.com/young-people-in-south-africa-urged-to-practice-money-awareness-and-avoid-bad-debt/ Thu, 16 Jun 2022 10:22:16 +0000 https://cromwellmodels.com/young-people-in-south-africa-urged-to-practice-money-awareness-and-avoid-bad-debt/ It’s no secret that South Africans don’t have a great debt history, says National Debt Advisors. According to Sebastien Alexanderson, Founder and Debt Advisor at National Debt Advisors (NDA), retail bank FNB recently revealed that credit-active middle-income consumers spend, on average, 30% of their income on unsecured credit and 35% on secured credit. “To create […]]]>

It’s no secret that South Africans don’t have a great debt history, says National Debt Advisors.

According to Sebastien Alexanderson, Founder and Debt Advisor at National Debt Advisors (NDA), retail bank FNB recently revealed that credit-active middle-income consumers spend, on average, 30% of their income on unsecured credit and 35% on secured credit.

“To create a future debt-savvy generation, it is therefore essential that young people are educated as early as possible about the long-term dangers of bad debt behavior.

“Unfortunately, the indebtedness of our young people is already on a constant slope. Receiving credit from credit grantors is a fairly easy task and often leads to excess debt if not maintained responsibly. A study of eighty20 showed that around 20% of South Africa’s 1.2 million young people aged 18-24 were active in credit. In addition, student debt would have increased by 16.5 billion from March 2022.

It is important to make people aware from an early age of the pitfalls of credit agreements and to make them understand the different types of debt. This will lead to better decision making in the long run.

Different types of credit or debt

There are two main debt or credit agreements – secured and unsecured. Secured debts, such as home loans and vehicle financing, require you to post an asset as collateral in case you cannot make your payments, in which case the lender may take your asset. Secured debt tends to have better terms that save you money while being responsible for the risk. Unsecured loans, such as retail accounts, personal loans, credit cards and overdraft facilities, mean less risk for the consumer because the lender is responsible, but you will be charged for this luxury.

With a Personal loanthe larger the amount loaned, the longer the payment term will be, and if taken with registered creditors and lenders, interest rates on such loans are normally in the range of 3% to 30%.

Payday loans are structured over a short-term period and help you get to your next payday. The repayment terms for these depend on how long before your next payday/salary date you get the payday loan for. Although these loans can help you get out of a bind, they are expensive because the interest rates are high.

A consolidation loan refers to taking a loan amount to cover several debts. Essentially, you have a big debt, paying off smaller debts. Alexanderson says: “It is important to do your calculations very carefully here, as these loans also come with origination fees, administration fees and longer repayment terms, which could end up costing more than the debt. herself “.

A vehicle financing credit agreement normally has a repayment tenure of between 36 and 72 months. The longer the term, the lower the payout, but on the other hand, the longer term will equate to a higher overall amount repaid. “Auto financing also comes with the option of a lump sum payment. With this, the monthly payments are lower, but there is a large lump sum to pay at the end of the term,” adds Alexanderson.

When it comes to home loans, most require at least 10% deposit to secure the loan. It’s a good idea to opt for a fixed interest rate on a home loan, to better plan your monthly expenses and not be surprised by higher repayments when interest rates rise.

The last type of loan is a student loan, which covers higher education costs and includes your textbooks and accommodation, which ultimately adds up. Normally, you have to pay the monthly interest on the loan while you’re in school and start repaying the loan in full once you get a job.

This is a serious problem for our educated young people. Even before they start earning a salary, they have a huge debt, which prevents them from saving money successfully,” said Sébastien.

How to manage your debt

  • Make sure you know what is reflected on your credit reportA credit report is a detailed and objective record of all your credit transactions which is used to determine credit score and it is virtually useless to apply for a loan if you have a credit report full of judgments and history of wrong payments.
  • Make sure you know the interest rate, repayment term, and monthly payments for the new debt you’re taking out.
  • Make sure you have credit life insurance in the event of death, disability and layoff.

As South Africans increasingly rely on credit to make ends meet, young people’s spending priorities must change.

“Young people need to be encouraged to live within their means and need to learn how to have a better relationship with money to be able to build a secure future for themselves and for our economy,” concluded Sébastien.

]]> 7 different types of loans you should be aware of https://cromwellmodels.com/7-different-types-of-loans-you-should-be-aware-of/ Fri, 10 Jun 2022 17:55:56 +0000 https://cromwellmodels.com/7-different-types-of-loans-you-should-be-aware-of/ Consolidation loans can be an attractive option for borrowers who struggle to make multiple loan payments each month, as they can potentially lower your monthly payments and interest rate. Before consolidating, it is important to understand the types of consolidation loans available and their impact on your overall financial situation. These types of loans come […]]]>

Consolidation loans can be an attractive option for borrowers who struggle to make multiple loan payments each month, as they can potentially lower your monthly payments and interest rate. Before consolidating, it is important to understand the types of consolidation loans available and their impact on your overall financial situation.

These types of loans come in different forms, each with their own advantages and disadvantages. Here are the most common types of consolidation loans.

1. Home Equity Loan

This type of consolidation loan uses your home as collateral. If you default on the loan, your home could be foreclosed. However, home equity loans often have lower interest rates than other types of consolidation loans.

2. Personal loan

Personal consolidation loans are unsecured, which means they do not require collateral. This makes it a good option for people who don’t own a home or don’t have any assets to use as collateral. However, because they are unsecured, personal consolidation loans often have higher interest rates than other types of consolidation loans.

3. Balance Transfer Credit Card

This type of consolidation loan allows you to transfer the balance of your other credit cards to a single card with a lower interest rate. However, most balance transfer credit cards have an introductory APR of 0% for only 12-18 months, after which the interest rate changes to regular APR.

4. Student loans

Student loans can help you finance your education and avoid accumulating too much debt. There are many different types of student loans, so it’s important to shop around and compare interest rates before choosing one.

There are two main types of student consolidation loans: federal consolidation loans and private consolidation loans. Federal consolidation loans are available from the US Department of Education and can be used to consolidate multiple federal student loans into one loan with one monthly payment. Private consolidation loans are offered by private lenders and can be used to consolidate federal and private student loans.

5. Payday loan

A payday loan is a short-term, high-interest loan that is typically used to cover unexpected expenses or emergencies. Payday loans should only be used as a last resort, as they can have very high interest rates and fees.

6. Title loan

A title loan is a type of secured loan where you use your car as collateral. Title loans usually have very high interest rates and should only be used as a last resort.

seven. Credit line

A line of credit is a flexible loan that can be used for consolidation, home improvement or other major expenses. Lines of credit generally have lower interest rates than other types of loans, making them a great option for saving money on interest payments.

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Orange Credit announces the launch of a low-interest loan https://cromwellmodels.com/orange-credit-announces-the-launch-of-a-low-interest-loan/ Wed, 01 Jun 2022 02:00:00 +0000 https://cromwellmodels.com/orange-credit-announces-the-launch-of-a-low-interest-loan/ SINGAPORE – Media outreach – June 1, 2022 – Orange Credit, a legal and licensed lender in Singapore, has announced the launch of its latest loan, with a loan interest rate as low as 1% per month. This new initiative will be used for its personal loans, bridge loans and payday loans. The launch of […]]]>

SINGAPORE – Media outreach – June 1, 2022 – Orange Credit, a legal and licensed lender in Singapore, has announced the launch of its latest loan, with a loan interest rate as low as 1% per month. This new initiative will be used for its personal loans, bridge loans and payday loans.

The launch of the new 1% loan by Credit Orange does not include administration fees, according to the applicable terms. Eligible applicants with an annual income above S$30,000, no outstanding loans from other approved lenders, as well as outstanding unsecured loans from banks not exceeding three times the amount of their monthly income may apply for the ready.

This lending initiative was born out of Orange Credit’s advocacy of responsible borrowing and lending to the public with the aim of minimizing personal debt in Singapore. Thus, Orange Credit is dedicated to exploring disposable income with borrowers, in addition to supporting borrowers in terms of debt consolidation loans in singapore. This comes from the fact that she strives to focus on the priorities of her clients in order to provide the optimal solutions to their financial worries.

Orange Credit is a reliable professional approved lender in Geylang, offering flexible, easy and fast cash loans with quick and hassle-free loan approval in Singapore. Orange Credit has steadily expanded its customer base since its inception by offering a variety of loans, such as debt consolidation and business loans in Singapore, to ease the financial concerns of people in need and businesses that have intend to grow. With no hidden fees, all documentation is straight forward and simple. This allows Orange Credit to speed up loan procedures, which results in a quick approval of loans.

For more information about Orange Credit and its reliable range of money lending services, please visit https://orangecredit.com.sg/.

#OrangeCredit

The issuer is solely responsible for the content of this announcement.

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Common Reasons Borrowers Depend On Payday Loans https://cromwellmodels.com/common-reasons-borrowers-depend-on-payday-loans/ Fri, 13 May 2022 13:05:28 +0000 https://cromwellmodels.com/common-reasons-borrowers-depend-on-payday-loans/ Payday loans are a useful source of credit, but come with a negative media narrative. Fortunately, the purpose of the mayhem was the high interest rate, which was eliminated several years ago with the introduction of regulation. Payday loan borrowers enjoy legal protection and for this reason it has gained popularity over traditional short term […]]]>

Payday loans are a useful source of credit, but come with a negative media narrative. Fortunately, the purpose of the mayhem was the high interest rate, which was eliminated several years ago with the introduction of regulation. Payday loan borrowers enjoy legal protection and for this reason it has gained popularity over traditional short term bank loans.

LoanPig.co.uk offers good opportunities and short loans for everyone to get a loan with ease and speed. The APR will be high, but you will pay it very soon. Even the amount of fees involved will be less than traditional bank loan processing. Moreover, if the repayment is made on time, it is an excellent option that gives you a space of 5 to 6 months to restructure your finances.

Common reasons why borrowers depend on the type of payday loan

There are several reasons why borrowers choose to choose payday loans. It’s a magic way to get cash flow to your bank account fast.

During unemployment

Source: forbes.com

Unemployment is a phase that hits a person emotionally and financially. This is a point that no one wants to experience, but which can suddenly put you in a financial situation where it becomes difficult to manage your basic needs. A personal loan is an attractive option because –

  • You have access to instant cash
  • You persist your similar lifestyle before you Unemployed
  • You think unemployment isn’t a big deal
  • You are breathing deeply and feeling motivated to look for another job opportunity

It is wise not to choose payday loans but to try other means. You can get jobseeker’s allowance. Also, reduce spending of your savings as much as possible. Accept any type of job until you land your dream job.

To merge other debts

Many borrowers apply for payday loans to pay off other debt. It could be credit card debt or a loan from another lender. It’s a wise move when the advertised interest on the loan is less than the debtor already owes.

Usually, the change can be bad because there are other bills, which can add up to a huge amount. Borrowers can choose the debt consolidation feature. It bundles all loans together making it easy to repay and less risky than using the payday option.

Avoid humiliation

Source: incomepassifmd.com

You can borrow small loans from friends and family, which is less risky than choosing a professional loan service. In addition, there are virtually no worries about interest payments.

Unfortunately, there are stories that borrowing from friends or family caused friction, which damaged their relationship. Therefore, many people prefer to go to a lender and pay interest. You can avoid the embarrassment and humiliation of taking out a loan from someone you know personally.

Holiday loans

At Christmas, parents look forward to giving their children objects or things they want. Payday loans seem to be the best answer. They receive the necessary funds for the holiday period, which are reimbursed with the New Year’s salary.

Parents may be tempted to borrow large sums to buy everything their children dream of, but overlook the cycle of debt. It is difficult for parents to explain to their children that the requested gifts are unaffordable, especially when Santa Claus is supposed to bring them. Be sure to consider your financial capacity before applying for a payday loan.

Support during bad credit ratings

Source: upgradedpoints.com

Payday loans have a bad reputation, so many people borrow from banks or other lending institutions. Here, if your credit score is not good, your loan applications are refused. Alternatively, payday loan services approve loans for bad credit. Approval is based on other criteria like affordability. However, rather than applying for a payday loan, it is better to work on improving your credit score by paying bills and debts on time consistently for more than 6 months. A high credit score will give you access to easy loans in the future.

Pay the bills

Payday loans are an attractive option to pay the high utility bill. Nevertheless, it is wise to look for ways to reduce your utility costs. Find ways to control energy use, such as better home insulation instead of wasting money on gas. Thick curtains can keep the heat inside and are not an expensive switch. Never leave the shower running for hours, have time limits to reduce hot water waste.

For urgent medical treatment

Source: vitalrecord.tamhsc.edu

Medical bills must be paid or they will accumulate like any other type of debt. Urgent medical treatment or surgery is one of the main reasons people depend on short term loans. However, to circumvent personal loans, it is best to have adequate health insurance coverage, as a medical crisis can be expensive.

To pay mortgage payments

People debate that missing a mortgage payment is worse than getting a payday loan. This is because the mortgage provider begins to assume that you cannot afford the house. If you persist on late payments, they take action against you. You should discuss an appropriate repayment plan with the mortgage lender or downsize your home instead of applying for a payday loan.

Pay an overdraft

The unregulated overdraft is scary. You get penalized, and with payday loans, people avoid that. Steps should also be taken to ensure that you are not overdrawn.

Pay an unexpected debt

Source: experian.com

Everyone wants to stay miles away from debt, but it can happen unexpectedly. For example, your father is dead, so you inherited his debt. You will need to erase it as soon as possible. You will use the payday loan to escape from this situation.

Things to know

As another type of loan is hard to come by, payday loans have become popular for raising capital quickly rather than waiting and missing opportunities or in times of emergency. People who are in desperate need of money and don’t have time to go through the traditional loan approval process, which takes time, gets rejected and repeats it with another lending institution, find an option fast payday loan to pursue.

Bank loans are open to investigation, while a direct payday lender does not prioritize where the borrower will use their money. Disclosure to the payday lender about your loan is for statistical purposes only. You can use the amount to treat yourself or take a ride or pay a deferred installment, the determining aspect of the approval will be your ability to repay the borrowed amount.




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Can you get a jobless loan? Here’s what you need to know https://cromwellmodels.com/can-you-get-a-jobless-loan-heres-what-you-need-to-know/ Thu, 12 May 2022 17:41:24 +0000 https://cromwellmodels.com/can-you-get-a-jobless-loan-heres-what-you-need-to-know/ Getting a loan can help you in many ways when you are in a tough financial situation, however, for some getting a loan is not as easy as it is for others. Many people who need a loan cannot get a good deal because of their credit score or even because they are unemployed. So […]]]>


Getting a loan can help you in many ways when you are in a tough financial situation, however, for some getting a loan is not as easy as it is for others. Many people who need a loan cannot get a good deal because of their credit score or even because they are unemployed.

So what can you do if you are unemployed? Well, the bad news is that you may not be able to get a loan if you are unemployed. The majority of lenders will want you to have a permanent and regular stream of income, as this ensures that you have the funds to pay back.

However, this is not the case for everyone. Instead, you might find yourself able to get a loan from one or two lenders even if you’re unemployed, but the loan won’t be as good as if you were employed.

So how does it all work? Are you stuck vying for no credit check loans or do you have other options?

Can you get a loan while you are unemployed?

You can still qualify for a loan, even if you are unemployed. However, if this is your case, you will need either strong credit or another source of income to support you in this endeavor.

Unemployment can arise unexpectedly or by choice, as would be the case with retirement, lenders will still sometimes consider lending to you, as long as you are able to persuade them that you will be able to make regular payments on time.

This is the main concern of the lender.

A lender will generally want to see three things on an application. These include a good and solid credit history, a good credit rating and regular income.

A strong credit history means you have a good history of paying loans or credit on time with little to no late payments, especially recently.

Your credit rating should be as high as possible, the higher the better. Some lenders will have a minimum score that they accept. The higher your credit score, the lower your APR, the lower your credit score, the higher your APR.

Lenders should also know that you can make repayments every month. Technically, this doesn’t have to come from a paycheck, however, you should at least have a reliable source of income that will be enough to cover expenses on a monthly basis and to cover loan repayments.

What should you think about?

There are many types of loans you can get, but probably the most popular are personal loans. With these loans you should consider the same things you should consider with any other type of loan.

There will be short and long term financial factors and consequences of taking out a loan that you should be wary of.

Here are some things you should think about.

Can you make payments on time?

First, if you’re unemployed, or even employed, being able to make payments on time is a big deal.

You should always ask yourself if you can make the minimum payment on time every time. Late payments will not only affect your credit score, but they can also lead to late fees. If you can’t repay the loan, your lender may even go further.

This means debt collection agencies and a negative credit report, if your loan is secured they can take your property, or you can even be sued.

Understanding these factors is very important to ensure you get what you need from a loan and that a loan won’t be a bad idea for you.

What are the loan terms and risks?

It is wise to make sure you understand the terms of the loan. Read the fine print and write down the important things. This includes payments, fees, penalties, interest, etc.

However, also be aware of the risks, consider the best-case scenario, then consider the worst-case scenario, and don’t go for it unless you’re happy with both.

Consider if this loan is really the best thing for you, what might happen if you are unable to make the payments, and the interest rate, what this will mean for your actual total payment.

Don’t forget to consider the consequences if you don’t repay the loan, could you end up losing your house or your car?

What are lenders thinking?

Remember that each lender will have different credit policies that they will use to determine if the borrower is most likely to repay the loan. It is a risk assessment.

So even if you don’t have a job, some lenders accept alimony, disability benefits, unemployment benefits, social security payments, pensions, child support, interest or dividends, etc.

What types of personal loan can you get?

If you are employed, you could get a secured or unsecured loan. Secured loans are tied to an asset of yours and you risk losing that asset if you do not repay the loan in full. Unsecured loans do not have this risk but usually have a higher interest rate.

You could also get a payday loan (although risky) as well as cash advance or debt consolidation loans!


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How to Stop Living Paycheck to Paycheck — RISMedia https://cromwellmodels.com/how-to-stop-living-paycheck-to-paycheck-rismedia/ Wed, 11 May 2022 16:07:15 +0000 https://cromwellmodels.com/how-to-stop-living-paycheck-to-paycheck-rismedia/ Many Americans are caught in a paycheck-to-paycheck lifecycle. If you’re struggling to make ends meet from one payday to the next, you understand the stress and anxiety it can cause. Here are some strategies to stop living paycheck and start investing in an emergency fund, retirement, your kids’ college education and other long-term goals. Determine […]]]>

Many Americans are caught in a paycheck-to-paycheck lifecycle. If you’re struggling to make ends meet from one payday to the next, you understand the stress and anxiety it can cause. Here are some strategies to stop living paycheck and start investing in an emergency fund, retirement, your kids’ college education and other long-term goals.

Determine where your money is going
The first thing you need to do is figure out what you’re spending money on. You might think you know where your money is going, but you might be surprised how much you’re spending on takeout, coffee, entertainment, and other things you really don’t need. These purchases can quickly add up and keep you stuck in the paycheck-to-paycheck trap. For a month, write down everything you buy so you have a clear idea of ​​how you’re currently spending your money.

Create a budget
Write down how much you earn each month (after taxes, health insurance, and other deductions). Then figure out how to allocate that money. You need to make sure you have enough money to pay for essentials, such as housing, utilities, food, and transportation. Once you factor that in, you can figure out how to cover other expenses.

You may need to reduce or even eliminate your expenses in certain areas to cover all your expenses and have money for the future. For example, if you eat out a lot or have coffee every morning on the way to work, cook at home more often and brew your own coffee. It may be less convenient, but it can save you a lot and help get you started on the road to financial security. Look for inexpensive or free forms of entertainment. For example, you can stay home and watch TV or visit a local park instead of going out to dinner and seeing a movie at the theater.

Pay off the debt
If you currently have high-interest credit card debt, that’s probably one of the main reasons you’re living paycheck to paycheck. Decide to pay it back as soon as possible. If you haven’t already, look for a low- or no-interest balance transfer credit card or consider a debt consolidation loan.

As you strive to pay off your debt, don’t pile more debt on top of it. It can mean giving up something you want or postponing a purchase until you can save some money.

Increase your income
If these steps don’t help you reach your goal as quickly as you’d like, you may need to increase your income. You may want to take on a part-time job or a side gig or find a way to earn money through a hobby. Even working a few extra hours a week can make a difference in your total income and help you stop living from paycheck to paycheck.

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What are the different types of personal loans? https://cromwellmodels.com/what-are-the-different-types-of-personal-loans/ Tue, 10 May 2022 15:50:08 +0000 https://cromwellmodels.com/what-are-the-different-types-of-personal-loans/ No one wants to be in a position where they have to rely on a loan to help them out financially, but we all have to accept that we may end up in that position eventually. Personal loans are one of the most common types of loans that people end up taking out at some […]]]>


No one wants to be in a position where they have to rely on a loan to help them out financially, but we all have to accept that we may end up in that position eventually.

Personal loans are one of the most common types of loans that people end up taking out at some point in their lives, and the reason is that personal loans have no specific purpose.

While mortgages, car loans, student loans, etc. have very specific purposes, personal loans can be for almost anything…almost.

But there are also many different types of personal loans you can get too, and each type is better suited to a person for different reasons. So before you go hunting installment loans in lexingtonlet’s take a look at the types of personal loans.

Explain personal loans

Personal loans are a type of installment loan, which means that you repay them in installments. This loan is given to you without even needing to use the money for anything specific.

Some lenders will allow you to check your offers online without affecting your credit score, but others will not, and when applying you should be aware that you will be required to disclose your personal and financial information and agree that they obtain firm credit. .

This can have a negative impact on your credit score, but only in a very minor and temporary way.

If you qualify, you will receive different offers and be able to repay over different periods, with different interest rates and payment rates.

The interest rates for these loans are usually fixed rate, and they will often remain fixed in monthly installments for the duration of the loan activity. You may also have to pay an administration or origination fee, and you will not get it back.

Should you avoid personal loans?

There are three particular types of personal loans that we recommend you avoid. These are payday loans, title loans and pledge loans.

Payday loans are short term and come with huge fees. They’re not always bad, especially if you’re money wise, but they tend to leave borrowers in a cycle of debt that often ends with taking out new loans to pay off old ones.

Title loans are easy, but you must use your car as collateral. Repayment terms can be short and interest rates high, this can add to the wear and tear on you in the long run, especially if you can’t afford it and find yourself at the end of a repossession.

Pawnbrokers can be a good alternative to payday loans, but you risk losing your items to the pawnbroker and you will often have to pay fees if you want to extend the repayment term.

What are the types of personal loans?

So, knowing all of the above, what are the different types of personal loans you can get?

Here are the main types of personal loans you are likely to come across.

Not guaranteed

Unsecured loans are loans that are not backed by collateral to protect the lender. Instead, they will usually have a higher cost in their interest rates, which means they may offer you a higher APR.

That being said, you are not putting any of your assets at risk by taking out an unsecured loan.

You will still be assessed on your credit score, income and debts, and you could get a rate of 6-36%.

Secure

Secured loans are the loans that are safe for a lender because you have to post collateral. This could be your house, car or other material possessions. This is often the case with mortgages and car loans.

If you are unable to repay the loan, your house/car may be repossessed.

Fixed rate

The majority of personal loans are fixed, which means the rate you pay and the monthly payments you make to repay the loan will remain the same for the life of the loan.

These fixed rate loans are great for keeping your monthly payments consistent on long-term loans.

Co-signed

Co-signed loans are best if you have bad credit and cannot qualify on your own.

Someone else will co-sign the loan, but they won’t have access to your funds. That person will still be in trouble if you don’t make the payments, though.

A person who is a co-signer will generally have great credit.

Floating rate

Variable rate loans are calibrated by banks, and depending on how it goes up and down, your loan will do the same. You will usually get a lower APR for this, and there will often be a cap on how much this can change over time.

They are not widely available, but are usually found on shorter term loans.

Debt Consolidation

Debt consolidation personal loans are actually a popular type of personal loan. This type of personal loan will take all of the loans you are currently paying off and consolidate them into one large lump sum.

This is ideal as it reduces the amount you have to pay. How?

Well, if you have multiple loans at different interest rates, it will cost you more in the long run, when you consolidate your loans into a personal debt consolidation loan, you only have one interest rate. interest with which you have to deal.

Credit line

Personal lines of credit are revolving credits, and they are much like a credit card, more than a personal loan. Instead of getting a lump sum of money, you will have access to a line of credit from which you can borrow as needed.

With this, you will only have to pay interest on the money you borrow

It works best when you need to borrow money for running costs or if you have an emergency.

This article does not necessarily reflect the views of the editors or management of EconoTimes

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6 useful and practical tips to pay off your debts in 2022 https://cromwellmodels.com/6-useful-and-practical-tips-to-pay-off-your-debts-in-2022/ Thu, 21 Apr 2022 01:35:30 +0000 https://cromwellmodels.com/6-useful-and-practical-tips-to-pay-off-your-debts-in-2022/ Loans or credit cards are sometimes the best option if you have a financial emergency while you wait for payday, or if you need to pay to get your car fixed, so you can get to work and earn money. Paying off debt can leave more money to save and teach you how to budget […]]]>

Loans or credit cards are sometimes the best option if you have a financial emergency while you wait for payday, or if you need to pay to get your car fixed, so you can get to work and earn money. Paying off debt can leave more money to save and teach you how to budget for the future. It can also improve your credit score, especially if you pay more than the minimum payment each month. This can make it easier to get loans in the future.

Paying off debts is not an easy solution. It takes planning and dedication to achieve your financial goals, but with that determination, your debts can be paid off. It will ultimately leave you happier and stress-free. No matter what type of debt you have, below are six helpful and practical tips for paying off your debt in 2022.

Debt Consolidation

Debt consolidation can be a great option if you have several different loans and credit cards that you’re trying to pay off at once. If you can find a loan that offers lower interest rates, you can use it to pay off your existing debts, leaving you with just one debt to manage, rather than many. If you’re having trouble keeping track of all your existing debts, this is a handy solution that can make it easier to pay off your debts.

It’s not always the best option for everyone, so calculate how much interest you’re paying on each of your debts so that when you apply for a loan, you can see if debt consolidation is worth it. This will depend on how long you have to repay the loan and whether it is affordable for you.

When you’re in debt, it can negatively affect your credit score, making it harder to find a debt consolidation loan. If so, you need to find a company that does not provide credit check loans. This guide from Sunny has all the information you need on bad credit and no credit check loans. They are a credit broker who work with various lenders, so they can help you find a suitable debt consolidation loan.

The avalanche method

The avalanche method is a common way to pay off debt and works by paying off the loan or credit card with the highest interest rate first. Like an avalanche, it may seem like your debt is going nowhere, but stick with it, and you’ll soon see the benefits of using this method. Once your highest interest rate debts are paid off, you will notice a change in your debt repayment plans. As a result, your debts become easier and easier to repay.

High interest can lead to additional debt, especially if you only pay the lower amount each month. As interest accumulates, you want to get rid of this debt as soon as possible. You should still pay off all your debts, but consider paying the minimum amount, so that any extra can go directly to the highest interest debts.

Balance Transfer Cards

Balance transfer cards are a form of credit card that can be used to lower the interest rates you pay. Your bank may offer you one, or you can search online to find one that’s right for you. Usually these have an introductory offer, where you pay less interest and can transfer balances from other credit cards to this card. Depending on the provider, they may charge to transfer balances, so you need to consider whether this method is worth it.

Some cards will give you a 0% balance transfer fee within a certain time frame, so you should get everything ready for the transfer right away. Keep in mind that interest rates may increase after the introductory period, so you should repay quickly to get the most out of it. Using a balance transfer card alongside the avalanche method is great for getting rid of high interest debt quickly.

The snowball method

Another popular debt repayment method that you may have already heard of, the snowball method, is to get rid of the smallest debts first. Just like a snowball rolls across the ground, getting bigger and bigger, you have more money to meet your bigger debts when you pay off the smaller ones first.

When you pay off a debt, you get great motivation because you see your hard work paying off. When debt is overwhelming you, it can be a good idea to use this method and reduce the amount of debt you have.

Debt repayment plans

A debt repayment plan is an agreement that has been put in place between you and the loan or credit card agency. Together, you can find a solution that benefits both you and creditors, so you can start paying monthly fees under a structured payment plan. Sometimes this can reduce the amount of interest you pay, as long as you hit the target payment each month.

Plus, it’s always best to talk to creditors directly if you’re having trouble paying your debt on time. Things happen, and not saying something could hurt your relationship with creditors, as they might be able to put a note on your file and agree on a different payment date. It’s always worth asking and informing, as you’re more likely to face further penalties if you don’t say anything at all.

Budgeting and saving for payments

The methods above are all great ways to pay off your debt, but setting aside the right amount of money each month and coming up with a debt repayment plan without a budget can be tricky. Creating a budget will give you a better understanding of your finances, so print out your monthly bank statements for the last 3-6 months and start logging all the inflows and outflows.

On a separate sheet of paper, calculate the payments for all your debts. Once you have those numbers, figure out where you can save money to pay off your debt faster or go the avalanche or snowball method. Then look for ways to limit spending in other areas so you have more money to pay off your debts.

That morning coffee doesn’t taste nearly as good when you see how much it’s costing you each month. Consider working out at home instead of at the gym, cancel memberships you barely use, look for ways to save money on essentials like groceries, and, if necessary, spend a little more time at home over the next few months. Although it may be difficult, improving your spending and savings habits will benefit you now and in the future.

These 6 useful and practical tips can help you pay off your debts in 2022, leaving you in a better financial position. Whether you try debt consolidation, the snowball method, or a balance transfer card, these solutions can offer a convenient approach to paying off your debts. If you still need help, you can find free debt advice online. If debt is overwhelming you, make sure you talk to someone about it.

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