Payday loans, also known as cash advance, are a useful tool after bankruptcy. By keeping current on your bills through a payday loan, you can rebuild your credit history. The key is to only use these cash advances for emergencies.
Using Payday Loans
Faced with a financial emergency, it is better to apply for a cash advance than skip a bill payment for two reasons. First, after bankruptcy the best thing you can do to rebuild credit is to pay your bills on time. If you are 30 days past due or longer, it will take three years for it to be removed from your credit history.
The second reason to use cash advances is to save money on late fees. Often a $30 late fee on an account will be more expensive than the financing fee of a payday loan. The same is often true with loan payments and bank charges.
Find The Right Payday Lender
Shop payday lenders just like you would shop for any type of service. Compare fees and interest rates, as well as, repayment options and customer service.
Consider looking online for a payday lender. Many of these online lenders offer instant approval with no faxing of paperwork required. It is also much faster to compare rates and fees of online.
Avoid High Costs
Cash advances are meant to be a short loan until payday. The high costs of payday loans come when people put off repaying these loans and the interest fees add up. Plan to pay back your cash advance on your next payday.
But if you can’t pay your loan back, talk with your payday lender. You can pay just the interest charge for that period or make only a partial principal payment. Above all, you don’t want to skip a payment, which will add up fees quickly.
Plan For Future Emergencies
Once you have gotten through your current financial emergency with a payday loan, start an emergency savings fund. By saving as little as $10 a week, you can have $520 in an account after a year’s time.
Also consider applying for a credit card for emergencies after establishing six months of good credit history.
About the Author
Carrie Reeder is the owner http://www.abcloanguide.com,an informational website about various types of loans. To view our recommended sources for payday or cash advance lenders online, visit this page: http://www.abcloanguide.com/paydayloans.shtml
Saturday, April 28, 2007
Options For Getting Out of Debt
Being burdened with a lot of debts simultaneously maturing can be a harrowing experience. Just thinking about the many sleepless nights spent in absolute anxiety is enough to cast fear upon anyone’s soul. Juggling our finances is hard enough as it is. To do so with the specter of gloom brought about by due and demandable debts could really, and literally, drive us crazy.
There are many factors that would contribute to such a terrifying state. Financial management, without a doubt, is one of them. Financial management does not only entail a wanton neglect of a budget plan and an uncontrollably vicious spending streak. Often, it is caused by lack of proper education in the in sound financial planning.
When we find ourselves in such a financial rut, we try to look for available options that would help us get out of the hole we have dug for ourselves. However, options drastically reduce in number the deeper we get buried in debts.
But this shouldn’t be taken to mean that we don’t have any options to resort to. There are some of them that are still available, and they deserve a closer look if we want to get out of our financial troubles.
There are still a number of options available for you. Let’s take a look at them.
Debt Consolidation
You could decide to merge your existing loans into one debt, though not directly. Through debt consolidation loans, the creditor would pay off your subsisting debt. You will then have just one debt to pay, that of your new creditor.
Debt consolidation is often resorted to for the following reasons:
It would extend the maturity date of your loans under the new consolidated loan.
You would pay a lower interest rate under one loan.
It would be easier to manage a single loan than having to pay off multiple ones every month.
Debt consolidation would not necessarily solve your debts per se, but at least, it would buy you the time that you would need to muster enough resources to settle your obligations. It is still a good option, especially when several debts become due and demandable within the same period.
Securing A Second Loan
Not as direct an option as debt consolidation, you could always apply for a new loan to pay off an existing one. This would be a great approach, not only in prolonging the maturity date of your obligation, but also in paying a lower interest in the event that the new loan has a lower rate than the previous one.
Second loans have always saved a lot of debtors from almost certain disaster. Most loans do not ask for the purpose of your desired borrowings anyway. By applying for a new loan, you’d be able to delay eventual payment, and you’d be able to answer the more pressing needs of your life.
Filing For Bankruptcy
Considered as the court of last resort, you could always file for bankruptcy. You would need to have exhausted all available remedies though, and you must prove to the court that your application is done in good will, meaning you have no intention whatsoever to defraud your creditors. You would also have to establish through preponderance of evidence that you cannot fulfill all your obligations once they have become due and demandable.
Your assets would thereafter be placed under the case of a court-appointed trustee. The said trustee would call all your creditors to an assembly, called a 341 meeting, where your assets would be liquidated and distributed among them, in proportion to their respective claims. The portions of the debts that cannot be fulfilled by your assets would be written as losses for your creditors. After this, your debts would be considered dissolved.
Though declaring bankruptcy has its benefits, it also has its share of disadvantages. Among them is the negative mark it would leave on your credit record, which would adversely affect future loan applications as well as when you’re applying for a job.
Also, you must be reminded that your line of credit may be suspended for at least 2 years. It would take quite some time before you could recover from a state of bankruptcy.
UPDATE: Congress has passed a new Bankruptcy Protection Law that now makes it tougher to file and declare bankruptcy. Make sure you understand how it will affect YOU.
Go to www.1debtfreedom.com for your free no-obligation quote.
About the Author
Talbert Williams offers debt consolidation, debt reduction, credit card debt referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com
There are many factors that would contribute to such a terrifying state. Financial management, without a doubt, is one of them. Financial management does not only entail a wanton neglect of a budget plan and an uncontrollably vicious spending streak. Often, it is caused by lack of proper education in the in sound financial planning.
When we find ourselves in such a financial rut, we try to look for available options that would help us get out of the hole we have dug for ourselves. However, options drastically reduce in number the deeper we get buried in debts.
But this shouldn’t be taken to mean that we don’t have any options to resort to. There are some of them that are still available, and they deserve a closer look if we want to get out of our financial troubles.
There are still a number of options available for you. Let’s take a look at them.
Debt Consolidation
You could decide to merge your existing loans into one debt, though not directly. Through debt consolidation loans, the creditor would pay off your subsisting debt. You will then have just one debt to pay, that of your new creditor.
Debt consolidation is often resorted to for the following reasons:
It would extend the maturity date of your loans under the new consolidated loan.
You would pay a lower interest rate under one loan.
It would be easier to manage a single loan than having to pay off multiple ones every month.
Debt consolidation would not necessarily solve your debts per se, but at least, it would buy you the time that you would need to muster enough resources to settle your obligations. It is still a good option, especially when several debts become due and demandable within the same period.
Securing A Second Loan
Not as direct an option as debt consolidation, you could always apply for a new loan to pay off an existing one. This would be a great approach, not only in prolonging the maturity date of your obligation, but also in paying a lower interest in the event that the new loan has a lower rate than the previous one.
Second loans have always saved a lot of debtors from almost certain disaster. Most loans do not ask for the purpose of your desired borrowings anyway. By applying for a new loan, you’d be able to delay eventual payment, and you’d be able to answer the more pressing needs of your life.
Filing For Bankruptcy
Considered as the court of last resort, you could always file for bankruptcy. You would need to have exhausted all available remedies though, and you must prove to the court that your application is done in good will, meaning you have no intention whatsoever to defraud your creditors. You would also have to establish through preponderance of evidence that you cannot fulfill all your obligations once they have become due and demandable.
Your assets would thereafter be placed under the case of a court-appointed trustee. The said trustee would call all your creditors to an assembly, called a 341 meeting, where your assets would be liquidated and distributed among them, in proportion to their respective claims. The portions of the debts that cannot be fulfilled by your assets would be written as losses for your creditors. After this, your debts would be considered dissolved.
Though declaring bankruptcy has its benefits, it also has its share of disadvantages. Among them is the negative mark it would leave on your credit record, which would adversely affect future loan applications as well as when you’re applying for a job.
Also, you must be reminded that your line of credit may be suspended for at least 2 years. It would take quite some time before you could recover from a state of bankruptcy.
UPDATE: Congress has passed a new Bankruptcy Protection Law that now makes it tougher to file and declare bankruptcy. Make sure you understand how it will affect YOU.
Go to www.1debtfreedom.com for your free no-obligation quote.
About the Author
Talbert Williams offers debt consolidation, debt reduction, credit card debt referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com
Tax Cuts-What Tax Cuts?
Many of the jobs in President Bush's "recovery" are low-wage, low-benefit service and retail jobs. The overall growth in jobs masks a harsher reality for families trying to maintain or build a middle class standard of living.
Key among them: debt coupled with paycheck paralysis.
Most people coming out of college with or without a degree are starting life off with about $20,000 in debt trying to get a degree.
Then they try to support themselves on low wages after getting out of school.
A generation ago finishing high school was what was needed to get a job and to have a reasonable amount of security.
Now what is needed is a university degree and not just any degree, look at all people working in low class jobs with an arts degree.
In the last 30 years compensation for somebody with a university degree has actually decreased when adjusted for inflation.
Personal bankruptcy filings nationwide last year exceeded 2 million, the highest annual level on record.
There were significant increases in consumer bankruptcy filings in every region. The total of 2,043,535 was up 32 percent over the 1,552,967 filed in 2004. That translates to one in every 53 households filing bankruptcy petitions.
So are these 2 million people Scofflaws?
Credit counselors say the debtors coming to their offices can’t afford to pay basic living expenses or make even minimal payments toward their debts.
Corporate profits have reached record highs.
People are working longer for the same or a lesser amount of money.
During the period from November 2003 to March 2004 - when job growth was increasing - average hourly real wages actually fell by 1 percent.
Companies are reducing health care benefits and are declaring bankruptcy to get rid of pension liabilities to their employees.
Yes, but there are Tax Cuts.
Tax Cuts have to be paid for by somebody at some point in time.
If the tax cuts were financed largely or entirely through spending cuts or: if the tax cuts were financed through a combination of spending cuts and progressive tax increases this is what is projected by experts:
The net result seems to be net tax cuts for about 20-25 percent of households, financed by net tax increases or benefit reductions for the remaining 75-80 percent of the population.
So 75% to 80 % of Taxpayers are going to be worse off with tax cuts.
The "losers" are going to be low- and middle-income wage earners.
The trade deficit for last year is estimated to have swollen to another record high, above $700 billion, increasing America's indebtedness to foreigners.
At some point in time these foreigners are going to want their money back.
Then what?
About the Author
J Carter is worried about the economy.
http://www.tax-attorney.biz
http://www.credit-score-now.info
http://www.bankruptcy-credit-cards-debthelpnet.info
Key among them: debt coupled with paycheck paralysis.
Most people coming out of college with or without a degree are starting life off with about $20,000 in debt trying to get a degree.
Then they try to support themselves on low wages after getting out of school.
A generation ago finishing high school was what was needed to get a job and to have a reasonable amount of security.
Now what is needed is a university degree and not just any degree, look at all people working in low class jobs with an arts degree.
In the last 30 years compensation for somebody with a university degree has actually decreased when adjusted for inflation.
Personal bankruptcy filings nationwide last year exceeded 2 million, the highest annual level on record.
There were significant increases in consumer bankruptcy filings in every region. The total of 2,043,535 was up 32 percent over the 1,552,967 filed in 2004. That translates to one in every 53 households filing bankruptcy petitions.
So are these 2 million people Scofflaws?
Credit counselors say the debtors coming to their offices can’t afford to pay basic living expenses or make even minimal payments toward their debts.
Corporate profits have reached record highs.
People are working longer for the same or a lesser amount of money.
During the period from November 2003 to March 2004 - when job growth was increasing - average hourly real wages actually fell by 1 percent.
Companies are reducing health care benefits and are declaring bankruptcy to get rid of pension liabilities to their employees.
Yes, but there are Tax Cuts.
Tax Cuts have to be paid for by somebody at some point in time.
If the tax cuts were financed largely or entirely through spending cuts or: if the tax cuts were financed through a combination of spending cuts and progressive tax increases this is what is projected by experts:
The net result seems to be net tax cuts for about 20-25 percent of households, financed by net tax increases or benefit reductions for the remaining 75-80 percent of the population.
So 75% to 80 % of Taxpayers are going to be worse off with tax cuts.
The "losers" are going to be low- and middle-income wage earners.
The trade deficit for last year is estimated to have swollen to another record high, above $700 billion, increasing America's indebtedness to foreigners.
At some point in time these foreigners are going to want their money back.
Then what?
About the Author
J Carter is worried about the economy.
http://www.tax-attorney.biz
http://www.credit-score-now.info
http://www.bankruptcy-credit-cards-debthelpnet.info
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