The Murky Waters of Cash Advances

cash advance

Credit cards today give consumers the provision of withdrawing money from automated teller machines. Credit card companies encourage users to get advanced cash on their credit cards but everyone should be aware of the hazards of such cash advancements as they come with expensive interest rates and can result in credit card debt.

The Catch with Cash Advance

For every cash advancement that is taken out, the credit card companies’ charges a cash advance fee which ranges from two to four percent of the total amount of the cash advance. Apart from the cash advance fee, the ATMs themselves have a usage fee which usually amounts to two to four dollars. Interest rates on advanced cash is always greater than on similarly priced products and paying off both in the same amount of time will often lead to more amount after interest paid in favor of the cash advance. Thus, the longer the repayment of the cash advance takes, the more the consumer has to pay.

Credit companies had the option of directing payments towards accounts with lower interest rates when there were multiple accounts with varied interest rates. This meant that the higher interest loans were kept unpaid and with cash advance always having higher interest rates, they were generally paid last. Only recently has the debtor had the option of directing his own payments towards the loan accounts with higher interest rates.

Credit cards also lack grace periods for advanced cash with charges and fees being levied as soon as the amount is withdrawn.

Cash Flow and Its Own Issues

The requirement of a cash advance is indicative of other more deep seeded problems. Financial income should generally cover all monetary obligations. The main argument against cash advancements is that if the debtor is in requirement of cash advances, then the debtor is having difficulty handling expenses and consequently, that puts questions on the debtor’s ability to pay off the cash advancement in time. Those who opt for cash advances have a higher risk of defaulting on their credit card payments and this is why the interest rates are higher. The cash advance diversifies the cash flow and makes the debtor pay additional payments.

Frequent requirements and withdrawals of cash advances require a closer look at the debtor’s budget. One should also note that purchased made through credit cards are also views as cash advances and thus they too come under the bracket of higher interest rates. Purchases such as money order and lottery tickets are also under cash advancements but there is room for gateways not to show the nature of certain monetary transactions thereby classifying them under general credit card transactions. A few merchants also pass their credit card processing fees to credit card holders which is not in conjunction with the guidelines of the credit card companies.

Getting such cash advances are not difficult though with any credit card holder with valid identification being eligible to be issued cash advances over the bank counters. This rule applies if the cardholder does not state their password or PIN.

Bio:

Ian is a financial consultant who provides much needed advice into the confusing and convoluted world of cash advances, litigation financing and other finance related matters. He specializes in providing information regarding credit card debt and how to handle cash flow under financial duress.

 

Divorce and Bankruptcy: The Complications of Simultaneous Filings

Divorce and Bankruptcy

Ironically, it seems today that divorce and bankruptcy are involved in their own marital relationship. Whether the more publicized cases of celebrities and public figures, or the hearsay about a rocky marriage in a neighboring apartment or house, we hear all the time that bankruptcy is a common reality for individuals after their lives have been uprooted by divorce. Even when marital issues do not proceed beyond trial separation, marriage counselors often report that over half of all major relationship problems are rooted in money. Considering when to declare bankruptcy before, during, and after your divorce proceedings could help you save more assets, reduce lawyer fees, and ease your process into your next financial and personal stages of life.

What Happens If I Can No Longer Maintain my Lifestyle?

After a divorce, it is only natural to crave a clean slate – both from the relationship, and in terms of erasing any consumer debt. If a debtor falls into the category that, his or her income would be insufficient in order to allow for maintenance of that lifestyle, one would want to proceed towards filing for Chapter 7 bankruptcy. Any unexempt property, of course, would be liquidated in order to pay secured creditors in the bankruptcy filing. Generally speaking, the remaining funds would be used to pay unsecured creditors, including ex-husbands or ex-wives, after all other debts are paid. However, through this process, the debtor might be able to use state exemptions – such as homestead or property exemptions – to their advantage, in order to keep creditors from coming after these assets.

Providing that all mortgage bills are paid, Chapter 7 bankruptcy might allow a debtor to continue to live a luxurious lifestyle on an expensive property after a divorce and bankruptcy filing are over. Speak to a lawyer who might help you understand if you qualify: one must make less than his or her state’s median income, with adjustments made with number of individuals in household and number of children. If these requirements are not met, it is possible to file for a form of Chapter 7 that requires a small payment of a few hundred dollars each month to creditors over the process of the bankruptcy filing.

Making it Through Alive: How Some Debtors Call a “Timeout” Through Chapter 13

Sometimes in a divorce, the income isn’t the issue: a high-earning ex-spouse might find himself or herself struggling to pay current bills as a result of the marriage upheaval. By filing a Chapter 13 reorganization plan, it is possible to avoid losing property and establish a clean slate – helping to avoid any additional court issues from creditors while navigating this especially trying time.

A Chicken-and-Egg Situation: Determining Whether Bankruptcy or Divorce Should Be Filed First

Often as complicated as divorce proceedings, bankruptcy court cases can be extremely difficult to handle financially and emotionally. Whether we like it or not, it seems that failing marriages and money problems go hand in hand. After all, the cultural stereotype of a “gold digger” marrying another individual solely for the money does have some factual basis in society: money is cited as the number one issue across the board in American divorce cases. Starting with as clean of a slate before a divorce is important – so for many debtors, it is important to erase all financial problems before continuing to divorce.

Removing as much liability from your debt as possible before divorce proceedings can help prevent you from losing even more of your assets or income. Selling unwanted property is a great next step – allow yourself to complete a short sale just to gain some money, even if it means you have lost a potential profit. If you or someone you care about is going through this difficult period, speak to a lawyer who might be able to offer you additional guidance on how to keep your financial troubles and marital problems in balance.

4 Ways to Finance Your Bathroom Remodel

 

bathroom

 

http://www.123rf.com/photo_18283803_new-modern-beautiful-bathroom-in-luxury-home-interior.html

Whether you’re swapping your old bathroom vanity for a new vanity or remodeling your entire bathroom, you’re looking at several hundred — if not several thousand — dollars in cost. It’ll be worth it in the long run, as a new bathroom will add value to your home and be more convenient. However, you need to put some serious thought into how you’ll finance the project. Consider which of the following four ways to finance your remodel is best for you.

Your Savings

If you’ve been practical, you’ve been putting away a small percentage of your income into savings for years. If you’ve been fortunate, you haven’t had to spend much of that savings on unexpected expenses. If you can finance your remodel out of your savings while still leaving yourself a comfortable cushion, do so. It’s not only satisfying to pay off the whole cost at once, it will prove less stressful as you won’t have to worry about monthly payments and interest.

If you don’t have quite enough money to comfortably deplete your savings, raise additional cash by selling items around the house at a yard sale, estate sale or online. Alternatively, sell something you’ve baked or crafted at a local bake sale, crafting convention or community event. The main drawback of using your savings is that then you’ll have less of a safety cushion for financial emergencies.

Your Credit Cards

If everyone waited until they had enough saved to remodel, few people would remodel their homes at all. Even the most diligent savers may be faced with emergency home repairs or medical bills that exhaust their savings. If you’re in a comfortable financial position, adding the remodeling costs to your credit card may be the way to go.

Relying on your credit card means there will be no credit check, and if your limit is high enough, you can start tomorrow. Plus, there will be no waiting for funds from a loan. You will encounter higher interest rates, but if you diligently pay it back and believe you’ll have soon have the funds to pay it off entirely, a credit card may be the best option.

Your Social Circle

Ask friends and family members who are in more financially comfortable positions to lend you the money. If there isn’t a single person who can lend you the money, pool funds from a number of people until you have enough. However, don’t sour any relationships by defaulting on your loan.

If there’s written proof of the loan (as there should be), you could get in legal trouble by not repaying at an agreed-upon rate. Don’t get lazy just because it’s your friends and family lending you the money. If you go this route, you can get your funds interest free and without a credit check.

A Home Equity Loan

If you don’t expect to have the funds for the remodel in a few months, if you don’t want to risk your relationships and you’re worried about the high interest of credit cards, choose a home equity loan. With your home as collateral, a bank may be willing to help you as long as you pass a credit check. A loan will not only help you build good credit, but it will allow you greater flexibility in deciding how long it will take you to pay it back.

As This Old House points out, you don’t have to have perfect credit to finance a bathroom remodel. There are numerous ways to secure financing for your project that don’t involve credit checks. However, if you do go that route, be sure that the costs won’t produce any additional strain on your finances. Meet with a financial advisor to discuss a remodeling budget that would best suit your current debt-to-income ratio.

About the Author: Herb Washington is a financial advisor and blogger.

 

Successful Ways of Obtaining Best Personal Loan Interest Rate

loans

Every individual looks forward to best personal loan interest rate whenever seeking information about personal loans. Easy repayment facility is one of the best advantages obtained in this regard. Financial position can never be stabilized by assessing the current position. Hence, monetary requirements have always to be considered on a strategic basis. It is not possible until and unless a perfect strategy has been evoked even before the loan has been secured. Flexible repaying options are offered by reputed financial institutions as well through which you will be able to experience the best results on an overall.

Here are some of the popular ways of seeking best personal loan interest rate with success.

  • Interest rate calculation
  • Lending firms’ comparison
  • Flexible repayment option
  • Credit score improvisation

Money borrowers have got their own ways and methods of seeking loans of which picking the ones with best interest rates is regarded the most ultimate one. Making an ideal choice in this regard is always a tougher one but not impossible for sure. Implement the below given steps for best results.

Calculate the latest interest rates

Choosing loans on the basis of loans with interest rates calculated on the latest financial position is a smart move. Perhaps, it is an intelligent move to observe the current market position before taking a decision. Remember that the market rates frequently go up and down because of which you need to be more watchful to apply for a loan as soon as the rates come down.

Compare the reputation and features of lending firms

Various firms operate in the market on a random basis. Some of them even have got a dubious record, which might offer you loans but might trick you towards signing up for a higher rate about which you are ignorant until and unless the first installment is due. Preferring the reputed firms for loans will have no scope for such frauds and tricks.

Prefer firms that offer you maximum flexibility when repaying

Financial needs can never be determined because of the uncertainties in life. Hence, you should be prepared to tackle them anytime, which might delay your EMI repayment on time. Some firms are quick to charge you more interest once you fail to repay on time. However, the best thing to do is to choose a firm that offers you a flexible repayment option with grace period.

Look to improve your credit score at the same time

Timing multiple options at the same time is something that is regarded as the smartest ways of operating in the markets. Perhaps, you could seek best personal loan interest rate with the consideration of several other options as well. This will be helpful in improving your current credit score to a maximum extent. The biggest benefit is observed in future when you become eligible for securing more loans because of the improvisation realized successfully.

Apart from the above effective ways of seeking best interest rate on personal loans, there are several others that you could implement based upon your observation and experience.

Author Bio: - Elena, is a content writer. She writes on a variety of finance related topics which are of course my favorite subject. Recently she written article about Discovery Credit & Bad Credit Lending these are also her favorite topics to write.

5 Things That Could Prevent You From Refinancing Your Mortgage

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No matter where you’re at with your mortgage payments, there’s a good chance that refinancing could help to reduce your bills, especially if you also pay a home equity line or you hold a second mortgage on the property. And since rates are still ridiculously low, now is definitely the time to make your move – they’ll likely follow the growth in home values before too long. However, you need to make sure that you’ve done everything you can to prepare for a refi, including addressing any issues that could prevent you from getting the new rates you want. Here are a few situations that could throw a wrench in the works.

  1. Missed payments. A few years ago it seemed like missing multiple payments was the only way to secure a refi from the bank. But with the economy slowly beginning to recover (and the housing market on the rise, in particular), banks are finally starting to reward homeowners that are making payments in full and on time by offering them the refinancing options they’ve been unfairly denied. Unfortunately, this means that homeowners who have not been so reliable with their payments could have a hard time convincing lenders that they deserve this boon.
  2. No money. In case you didn’t know, refinancing your mortgage is not a free process. It comes with plenty of out-of-pocket expenses. Even though you stand to save a significant amount on your monthly payments when you complete a refi, that doesn’t precisely put money in your pocket right now. And you’re going to need some cash up front in order to secure the refi you want before the mortgage rates return to pre-bubble highs.
  3. Underwater property. If you owe more than your property is worth at this point, you’re going to be hard pressed to get a refi. And many homeowners still find themselves in this boat despite the fact that housing prices are on the rise. The sad truth is that the banks simply aren’t willing to take any more of a loss than is absolutely necessary on these homes, and that includes offering you savings on your monthly mortgage bill. Luckily, you can always try again when your home value increases.
  4. Mortgage insurance. Let’s be honest: if you’re paying for this type of insurance, chances are good that you have not yet paid off 20% or more of your home loan, since banks generally require you to carry it in this circumstance. This is not to say that paying for mortgage insurance will ruin your chances to refinance, but there’s a high likelihood that it will complicate the process.
  5. Poor credit. When you visit your lender with the intention of refinancing, you might want to do a little leg work beforehand to ensure that your ducks are in a row where your credit is concerned. The easiest way to do this is to get a copy of your credit report and you can order one at no cost from AnnualCreditReport.com. This will not only tell you what your credit score is, but it will also provide you with pertinent data concerning black marks (late or missed payments, pending collections, bankruptcy, etc.) and even alert you if you have been the victim of identity theft. With a credit report in hand you can begin to contact creditors that have failed to remove black marks even though you’ve paid them in full and you can basically get your score back in ship shape before you even consider approaching a lender for a refi.

Getting a loan by pawning your car

loans

Do you need cash fast?  Do you own a car?  If yes then you should consider an auto pawn loan. This fast borrowing option makes accessing cash easy.  With no credit checks and free online application forms you could apply and get the cash you need in just a 24 hours.

There are many companies that can offer some great deals on auto pawn loans.  The process is very straightforward and all you will need to do is contact us today for a quote.  We offer online services to save you even more time and help you get cash fast.

Can Anyone Pawn a Car?

If you are over the age of 18 and you own a car then you could take out an auto pawn loan.  These short-term contacts are easily available online and it only takes a few minutes to apply. There are a few restrictions to this type of borrowing such as:

  • There must not be any outstanding finance on the car.  You must own it outright before you can take out an auto pawn loan.
  • The car must meet minimum requirements for condition and value.
  • Although you will not be asked to undergo a credit check lenders may require you to prove you have a steady source of income.  This will benefit everyone as it will help to prevent you defaulting on the loan and getting into financial difficulty.

How Does it Work?

Auto pawn loans are very simple.  You will be using your car to secure a cash amount.  The total you can borrow will depend on the current market value of your car.  When you take out an auto pawn loan you will effectively be temporarily handing ownership of the vehicle over to the lender.  This means you will need to send in your ownerships documents such as your logbook and MOT certificates.  These documents will be sent back to your upon successful completion of your auto pawn loan.

This article was brought to you by http://www.careersadvice.org. They provide all the latest business news and resources including finance, legal and business.

 

 

 

 

4 Ways to manage personal finance efficiently

Are you over-stressed with financial worries? Do you find it difficult to manage personal finance efficiently? These are some questions that need to be answered when dealing with money if it is becoming a great burden for you. However, if you haven’t dealt with money wisely in the past, you must have surely accumulated enormous debt problems. Excessive spending of money, using credit cards randomly and borrowing from your loved ones are some reasons why you cannot manage finance efficiently. It is advisable that you avoid committing such mistakes in the future. Thus, once you understand how you should spend money, you will be able to stay away from debt problems and manage financial matters efficiently.

4 Ways to manage personal finance efficiently

Read on to know about the 4 ways to deal with personal finance in the most efficient manner.

1. Draft a budget you can stick to  Ever thought to draft a budget? Most people have not have considered it to be important. You need to spend only sometime to draft a good budget. With the help of it, you will be understand how much money you should spend every month and try to save the rest. Stick to the budget that you formulate or else it will be of no use to make it. You will be able to handle personal finance efficiently.

2.Cut the unnecessary expenses you make  When you have a lot of money in your hands, you feel like buying several things at a time even if you do not need it. Cut the unnecessary expenses you make and restrict yourself to purchasing only those things that you’ll need the most. Thus, by reducing your expenses, you will be able to manage money sensibly and save for your future.

3.Create a fund where you will save  Creating a fund where you will save your hard-earned money is necessary if you want to stay away from financial difficulties in the future. You need to know that when you have sufficient savings, you will be able to lead a secured life. This is only possible when you start saving from the initial phase of your life. This way, you will be able to control your spending and learn to manage finances prudently.

4.Swipe the credit cards wisely  Having too many credit cards does not mean that you will have to swipe them for making every purchase. When you do so, you incur credit card debt problems unnecessarily. It is suggested that you learn the importance of having your own credit cards and swipe them only during emergencies. This way, you will be able to avoid incurring credit card debt and manage finances in a better way.

Getting proper education on personal finances is necessary if you want to know about the need of saving every dollar possible. Seek help from the elders or someone whom you trust in order to increase your knowledge of money matters and thus, save enough for your future.

Payday Loans can help at Christmas

payday loans

With the Christmas season just around the corner, there are already thoughts of those warm times and festive holidays that we will spend with our loved ones. We start making plans excitedly as to what kind of Christmas tree to get this year, what decorations to plan and make a list of all those gifts that are to be purchased. But somewhere at the back of our mind we are also worried about those expenses that have to be taken care of. After all, Christmas tends to get more expensive every year. Those costs are rising at a much faster pace than our incomes. Needless to say, we are worried.

One tip is to start planning at advance and start making saving well in advance to take care of all those extra expenses during the Christmas. But for many families, it is easier said than that. In spite of that entire cost cutting, we are left with not enough saving to boast of. Many of are left to pushing that shopping day just a few days before Christmas Day, when there are higher chances of getting discounts.  We look at other ways of spending minimum and yet have a great Christmas.

Fortunately, there are some choices available and one of them are payday loans. These cash advances are taken against your paycheck and you can borrow a certain amount that needs to be paid when you get your next paycheck. These make an excellent choice when meeting your short term cash flow needs. At least for some time, you need not worry about the price tags on those gift items.

Applying for these payday loans is easy. Just make sure you are eligible. And for that you need to be a legal citizen, be 18 years of age and carry a steady job. There are hundreds of payday loans providers online. Just make sure that you ask for the loan from a reputed one. For that you need to put in some efforts and sign up with a good payday loan company. All you need to do is go for the online application process. Those applications are simple, short and easy to fill in. There are no complicated details asked any documents to be faxed. You need to give your basic information, employment and bank details.

If everything goes right, you will get qualified to get the loan. you will get a call from their customer care or an email telling that you have qualified for the loans and the money will be in  your account within a couple of hours. Just make sure you are eligible and make no mistake when filling the application. There are high chances are that you will get you payday loan. You can even get them even if you have a bad credit score.

Now all you need to do is take than money out form the bank, now that it is there and have some great shopping. Just remember to pay them back in time as these loans carry higher rate of interest. Merry Christmas and all thanks to those payday loans!

About the Author:

The guest post was contributed by Ana, guest blogger from Chisinau, MD. She is now writing for FastLoanTree.com