Sunday, July 25, 2010

Is It Better to Go Through a Same Day Loan Broker for Cheaper APR?

As with many other industries, using a broker to secure a payday loan can help consumers to get a better deal. Whilst it won't necessarily guarantee the very best APR available on the market, brokers should be able to deliver results from a broader range of lenders. This can have a variety of benefits for applicants, including greatly improved prospects for eventual acceptance.
If you have been looking for payday loans or have used them in the past to get out of a temporary financial fix, then you will probably have noticed that the APRs being advertised are pretty sizeable. You could certainly be forgiven for thinking twice before applying, especially if this is your only basis for comparison. However, this can be slightly misleading.
With any kind of long-term borrowing, including credit cards and personal loans, you can usually use APR as a method of evaluating various offers. It gives you a clear indication of the percentage that you're going to be charges over the course of a year, and therefore highlights where the best value can be found. However, when it comes to short-term alternatives like payday loans, this figure can be hugely misleading.
Because the loan is only for a finite period and isn't designed to run beyond a month, let alone an entire year, the percentages on show often run into four digits. However, this shouldn't be a cause for consternation. The likelihood is that you will not be asked to pay above 30%, often even less, for the amount borrowed. Whilst this still isn't cheap, it's a significant improvement on 1,500%.
Therefore, you would be well advised to compare the actual cost of borrowing, rather than simply APR. Most brokers should make this relatively simple to do though, with many offering the average cost per £100 borrowed for the lenders they represent. This should give you a much clearer indication and a better basis for comparison.
The role of a broker is effectively to help facilitate the process of finding a lender. Therefore, in order for them to deliver results to customers and succeed within a highly competitive marketplace, it's important that they offer the widest selection of lenders, who offer the best value. This can only be a good thing for people who choose to use their services.
Equally, if time is precious to you but you still want to apply for a payday loan through a number of companies, then a broker can ensure that you enjoy a pain-free application process. Rather than approaching each one individually, you can instead fill in a single application and scour the market instantly. As credit checks aren't always employed, this won't have a negative impact on your credit history either, meaning that you can apply with confidence.

Thursday, July 15, 2010

What Is the Quickest Way to Get Out of Debt?

Being in debt can be a very stressful and worrying situation. Whether you owe one creditor or several, getting your bank account back in the black can seem like an uphill battle.
The first step in getting out of debt is to face reality. It might sound obvious, but you'd be surprised at the number of people who deal with debt by sweeping it under the carpet and denying they're in trouble. You may find it hard to confide in friends and family for risk that you might lose their respect, or even lose them altogether. If you really want to get out of debt, you'll need to come 

If you're not entirely sure how much you owe, sit down and go through all of your bills and make a list. Compare the figure against your monthly incomings and outgoings, and work out how much you can afford to repay each month. You may wish to consider making a few sacrifices here and there (e.g., cable TV or mobile phone) to free up some extra cash. Now let's take a look at some of the options available for repaying the money that you owe:
1. Start paying more than the minimum on your monthly credit card statement. Remember that the longer you take to repay the balance, the more interest you will get charged in the long-term, so pay as much as you can afford each month. Also, if you own more than one credit card, consider transferring the balance (if you are still within your credit limit) of the one with the highest interest rate to the one with the lowest.
2. Raid your piggy bank: If you have savings stashed away, it would be sensible to use them to clear your debts.
3. Approach family members and trusted friends to see if they are willing to float you a loan. Make a written agreement to establish when repayments will be made and how much interest will be charged. As long as you stick to your side of the bargain, chances are you will receive a very preferable interest rate, and your relationship will remain amicable.
4. If you have no savings, credit card or other methods of freeing up some cash, you could consider bank loans or payday loans. A payday loan is designed to tide you over until you receive your next paycheck. For a short-term solution, they can be very handy, but if you can't afford to repay in full at the end of the month, payday loans can work out to be very expensive. Therefore, always make sure you can pay the money back in full on the agreed date.
5. Once you've covered all the above possible options, contact your creditors to see if they are willing to renegotiate the terms of repayment. The majority of creditors can be quite understanding if you are at risk of going bankrupt, so ask for a new repayment schedule with a lower interest rate.
6. As a last resort you could consider filing for bankruptcy, which allows the discharge of the majority of debts. However, remember that doing so will mean that this will be noted on your credit record for ten years, which may result in your struggling to obtain credit during that time.

Wednesday, July 7, 2010

Why We Love Payday Loans in Wedding Season

Whilst it is for many the happiest day of their lives, a wedding can come at considerable cost, an average of £25,000 in fact. Apart from buying a house it is often the biggest expense that couples undertake together. Naturally, this can mean added financial pressure at a time when they only won't think about the gorgeous dress or memorable stag do. Little wonder that with fewer major banks than ever lending to us through personal loans and overdrafts, many couples are turning to payday loan companies as a perfect solution.
Couples may have already set aside some money for the happy event, but inevitably as the big day looms larger, unforeseen expenses arise. You may have to choose a pricier wedding DJ, or change the menu, or simply find yourself a little short of what the budget requires. This is where payday loans are invaluable.
Payday loans lend money with the minimum of hassle and fuss - you simply pay back the loan on your next payday. So there is no need to worry if the wedding or honeymoon falls in the middle of the month when you don't get paid to the end. A payday loan can bridge that gap and let you enjoy the high points in life as they happen.
The same applies to the mother and father of the bride of course. During the wedding season, parents who are footing the bill for their daughter's wedding are often happy to consider anything that can help with cash-flow. A payday loan can remove the awful anxiety that comes with money being tight on such an important day.
The wedding season, with its engagement parties, hen and stag dos and the day itself, is a fun time but can also be one when the wedding guests could do with a little extra help. No one wants to let down friends or family by skimping when you should be celebrating, so a payday loan can prove extremely welcome. For a lot of people, it means the difference between able to attend the hen weekend or not, or to buy the first-choice wedding present, or to buy that special hat for the ceremony.
Sound far-fetched? Well, the average cost of a wedding gift is £70 for close family, whilst the average Briton spends more than £7,500 on other people's weddings during their lifetime. That can work out to be a lot of money per wedding, so it is not surprising that cash-flow has to be kept healthy.
Payday loans were designed for exactly such eventualities as a wedding. Based on what you can afford, yet usually approved online with no paperwork, they can be the most convenient and stress-free way to get hold of extra cash. Whether you are the bride-to-be, a proud father, or a guest who is keen to enjoy the best day possible, it is worth thinking "Do I need a payday loan?" The answer could well be "I do."