Author: admin

Five Reasons You Need a Payday Loan

There are many people that take out short term loans to help them when they need money in an emergency. This is what the loans were designed for but they can be very expensive and so it can be a good idea to make sure that you are not in a situation where you need to take one out. Therefore you need to try to make sure that you are never in a situation where you will need one.

It is easy to think that you will never have to rely on a Payday loan, but many people who take them out thought that as well. Therefore making sure that you are prepared for situations where you may become desperate for money is really important. If you are in a situation where you are working and on top of your bills you may think that you will not need to worry but you need to think about what may happen should you lose your job. Suddenly you will have no money coming in and will still have all the bills to pay and you may find that you just do not have enough money to manage. This is why it is really important to have some savings. If you have some money saved up for emergencies like this then hopefully you will not need to end up borrowing money.

Another tip is to make sure that you are not paying more than necessary for anything. Always compare prices on things like utilities, insurance and anything you buy to see whether there are any better deals available. This means that when bills do come in, they will not be overly expensive and when you are buying things in shops, you are not paying more than you need to. This should not have any effect on you either with regards to your lifestyle as you will still be buying the same things and once you have done the comparisons, there will be very little hassle either.

If you can, it can be wise to see whether you can have more than one source of income coming in. If you have just one source of income then when it is lost it can cause a lot of problems but if you have several then it can be a lot easier. Many families already have several earners and this can help, but there are other things you can consider as well. If you have money that you are prepared to risk, then it could be worth investing it so that you get some return each month from it and that will bring in an additional income. You may also be able to think of other ways to bring in additional income such as doing some freelance work, selling things, getting more people in the household working or whatever. You could use the extra income to save money so that you have an emergency fund.

Some people have insurance on some of their policies, such as loans, so if they do have problems with their income they will be paid for them. This can be a good idea in some circumstances. It is important to understand the policy though and the precise cover that you will be getting. This is because you may only get cover if you are unable to work through illness but not if you are made redundant. Consider whether you think the cover will be enough and whether you think that it is worth getting out considering how much it will cost. You may prefer to put that money in a savings account each month and hope that by the time you need it, if you need it, you will have enough saved up.

If you do find yourself in a situation where you need to borrow money then it will be wise to see what options are available to you. You may not have to get a payday loan, you may be able to borrow in a cheaper way. There are lots of ways to borrow and most of them will be cheaper. Even if you have a poor credit record, you may find that you can still borrow using a cheaper method.

Five Steps to Paying off Your Debt

If you have debts, it is likely that you wish that you did not have them and would like a plan to pay them off. It is possible to get out of debt, but it will be hard work.

This is why the first tip is all about motivation. You need to think hard about why you want to get out of debt and how you will feel once you are clear of debt. List the advantages and keep a list handy. When you feel demotivated, like you are struggling due to having to put so much time and effort into repaying the debt remind yourself of why you are doing it. Also remember to look back at how well you have done and use that to spur you on to continue to do well. It can be wise to put your goal of being debt free on a card and stick it somewhere you look at every day. This could be on your bathroom mirror, fridge, desk, computer or somewhere else and make sure that you read it so that every time you make a spending decision, you will remember what your main focus and goal is.

You need to start by gathering all your financial information. Take a look at what debts you have, who they are to and how much for. This can be very difficult to do and it is not surprising that many people do not want to do this. However, you need to take a look at this so that you can start to plan repaying. It is a huge step and it could make you feel a lot better, just to know that you are facing up to your debt even before you put a plan in place as to how you are going to repay it.

You need to come up with a plan on which debt you will repay first. Some people like to look at the costs of the debts and pay the dearest one back first. This makes sense financially as you will pay less money out in fees for having the debt. However, some people would rather pay off the smaller debts first. Then they get the motivation of having cleared some debt fairly quickly and that motivates them to carry on. Some people find certain debts deserve to be paid back quicker. Perhaps they may owe money to family which they feel should be paid back more quickly or that certain debts just feel worse to them than others. Have a think yourself and come up with an idea.

Once you have found out what you owe, decided which to repay first and got yourself motivated you actually need to find the money to repay. This may seem like the hardest bit but actually it may not be. You may find that there are lots of ways that you can cut down your spending so that you can put extra towards repaying the loans. Having collected together all of your paperwork previously you will be able to use it to make a list of how much money you spend and what on. Look at every item and see if you can spend less. You will not be able to spend less on tax but most other things you will be able to compare and maybe save. Look at comparison sites to see if you can get cheaper utilities, insurance, borrowing or banking and you may even consider downsizing so that you can reduce your rent/mortgage and your household bills should reduce as a result. Think every time you buy something whether you really need it and if there is an alternative that is cheaper. You may be able to sell items that you have now that you do not use or need, to raise some cash as well. Also see whether you can earn more money by asking for a rise, working more hours, getting a better paid job getting a second job or doing freelance work evenings and weekends. Use all of your spare money to repay your loan and you will find that you will slowly whittle it down.

Once you have paid them off you need to resolve to not get into any bad debt again. This could mean that you need to cancel your overdraft, cut up your credit and store cards, cancel your catalogues and things like that. Decide whether you feel that you need to take measures like this to prevent you getting into debt or whether you think that you will not be tempted to any more.

Will an Increase in University Fees Have a Big Impact on Student Loans?

UK university fees have recently increased and the government are deciding on whether to allow them to increase the fees even more. This is something that is worrying some students, their parents and potential students as well. Obviously the higher the fees are, the more money will need to be found to pay for the course and more often than not, this means borrowing more money.

The UK student loan works in a very different way to other loans. Money is borrowed to cover the costs of the course and other costs and once the course is finished it has to be paid back. This is done in a way that is very different to other loans as how much you pay back is determined by your income. This means that it is effectively means tested. Those students earning below £21,000 make no repayments at all and then once they earn over £21,000 they make some repayments. The amount that they repay will increase as their salary increases but after thirty years any money outstanding is written off. This means that at the moment, three quarters of students never pay back the full amount because they do not manage to get jobs that pay well enough. For these it , means that even if the course fees were higher, they would not repay any more so it would make no difference. It would only be those well off students that are earning enough to pay off their total loan, which would pay more. It may just mean that there are more students that do not pay off everything that is owed and the government have to write off a lot more loans.

Students will have to borrow more money in order to cover the increase in course costs but how much they repay each month will not be effected by the amount that they borrow. The amount repaid is determined by income not how much is owed and so this will stay the same. Only those students earning the very high amounts of money will end up paying back more money.

So it is therefore worth taking these student line headlines with a pinch of salt. Do not panic if fees are going up and also if fees are being reduced if they are by fairly small amounts because it is unlikely to make a significant difference to most students. Obviously of fees are abolished, that will make a huge difference, but if fees increase or decrease by a few hundred pounds it will only make a difference to the highest earning graduates as they are the ones that are likely to repay the whole of their loan.

So it is easy to allow news stories and government messages about student loans make you worry or feel pleased. However, it is worth making sure that you understand that many students do not repay the whole of their loan. Only those who are high earners for the whole of the thirty years after they have graduated will pay it all back and it is only them that will be affected by any small changes to the costs of the courses.

Even if you are likely to be a high earner, it is best not to let these sorts of headlines worry you. The change in the repayment amount and costs of the loan are likely to still be fairly small compared with what you will pay anyway. If you are a high earner and therefore will repay the whole loan, it will be worth it as you will be doing well and should have plenty of income anyway so repaying a bit more will not be too difficult.

Some people also feel that they would like to repay all of their loan because they feel they get so much out of their education that they want to give back for it. Therefore they do not really mind the changes in how much they have to pay as they feel they owe it anyway.

With more young people going to university each year and more employers requiring candidates to have a degree, university courses are becoming more and more popular despite the fact that they are getting more expensive and so an increase in course prices is unlikely to make a difference to ow many people do degree courses.