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Monthly Archives: May 2017

Payday Loans Can Affect Credit Rating

The loans are simple, proof of employment is a simple paycheck stub, a bank account statement proves that you have a bank and are established that way, you write a post dated check for the amount of the loan and the fee amount and bang! You are finished. Well, you are finished with the loan application part of the procedure any way. For instance, if a person wants to borrow $200, they would write the check for about $240, to include the fee. Actually, it could likely be more than that but for the sake of argument, that is what we will say. Basically, this means, that the person who borrowed the money paid someone $40 to borrow money from them. Because the interest rates are so high on these loans they don’t advertise they just have flat rates for certain amounts.

If the people using these payday loans are not thinking ahead, but instead using them to have a weekend out it puts them in even more trouble. Those doing it for sheer desperation to get from one bill to another or to avoid bad credit, or a bounced check are in bad enough shape but the others are not thinking ahead enough to realize what they are doing to themselves.

If using these loans to attempt to fix a credit history the consumer is being foolish. The best way to fix a credit history is to put a budget in place and to follow it consistently. A budget, when done correctly, will allow for a small emergency savings but not for a payday loan. These are never a good idea and have no place in a budget plan.

When you are attempting to fix a credit history you will be concentrating on not making future mistakes. Leave past mistakes in the past. Trying to fix bad mistakes doesn’t do any good if you are going to go out and make new mistakes. New mistakes would include paying fees and high interest rates of a payday loan. Actually, paying interest on any type of new loan wouldn’t be a good idea at this particular moment in time. The last thing that a person trying to fix a credit history needs is more money to pay back.

In case of a real emergency there must be other options. Other things that a person can do to raise emergency funds would be things such as sell things, take on a part time job temporarily, and there are agencies out there that are willing to offer low-interest loans based on need. There are people out there who will help, a person just has to find them.

You must keep in mind however, if you have gotten a payday loan, you cannot avoid paying them back. You have already signed papers giving them permission to access your checking account and many have policies in place which allow them to dip into the funds that you have available there. This means not only the amount you wrote the check for but any other late fees which have accrued. These late fees are not a small amount either, these accumulate quite rapidly. To think that this could have all been avoided by simply not going to get this type of loan company in the first place.

Take Control of Finances

In case you are not in a position to take the consolidation loan, then you should opt for negotiating with your lenders. You take a plan of repayment to your debtors and show them how you are going to clear debts. No lender wants to take expensive and time consuming route of repossession of the property. Therefore, debtors may even lower the interest rate, reduce outgo in monthly installments and may increase repayment duration for your comfort. This will give much needed respite from the debts.

But if you do not want to negotiate on your own, to manage debts you need to have a debt management company. Job of a debt management company is to negotiate your debt related concerns with creditors on your behalf. The negotiations include extracting lower monthly payments to the lenders. The company even posts your monthly payments on your behalf. This is very useful in case you tend to forget making timely payments to various creditors. All you do is make a combined payment of your different monthly installments to the debt management company.

A debt management company will also do all the calculations for you to make out how much of payments you have to make towards creditors. So debt management is only a service and should not be mistaken for elimination of debts. You still hold those debts intact despite the debt management service availed.

There are number of debt management companies available online. When choosing a debt management company; make sure it offers credit counseling service as well. Credit counseling is crucial in strengthening you financially. A credit counselor offers you vital tips in making a budget such a way that you not only get rid of the debts but more than that it shows how to stay away from debts in future.

Whatever plan of action you adopt under debt management, stick to it. Never be casual in paying the installments as per the new schedule. Debt management is aimed at reducing the financial burden and that can be done also by cutting your unnecessary expenses.

Merchant Banks

Merchant Banking is typically the provision of guidance and service to corporate for a fee, which can help an entrepreneur start a new venture, raise capital, expand and modernize the existing business, restructuring a business or help companies register, buy and sell assets (shares) at a stock exchange.

Project Management: Merchant bankers prepare project reports to analyse the financing patterns to evaluate the cost of a project and appraising the same with financial institutions.

Management of Debt and Equity offers: One of the major functions of a merchant banker in India is assisting companies in raising funds from the investors. The main services offered are,

• Product designing
• Pricing
• Registration of documents
• Guaranteeing support
• Allocation and refund
• Manage Stock exchange listing

Management of Issues: These bankers play an important role in the management of issue that involves the marketing of corporate securities like equity shares, preference shares and bonds offerings to the public.

Merchant banks act as a middle man in aiding transfer of capital from investors to their client. Per the SEBI guidelines in India, a merchant banker in India, organizes meetings between the company representatives and agents to settle arrangements related registration of prospectus, launching advertising campaign and fix board meetings to pass necessary resolutions. These bankers also consult companies in the Pricing of issues. The merchant bankers also provide Underwriting of Public Issue (not exceeding 15%).

Client Portfolio Management: Managing a diverse array of securities such as shares, bonds issued by different companies to ensure maximum return with minimum risk.

Placement and distribution: These bankers assist in the allocation and distribution of securities through the merchant banks institutional and retail network.

Corporate Restructuring: These bankers act as the middle agents in negotiations between the two companies and assisting the management of its client for various to restructure activities such as mergers and acquisitions, divestitures, management buyouts, joint venture and more.

Off Shore Funding: The merchant bankers help their clients manage joint ventures, foreign currency investment and foreign collaboration arrangements.

Loan Syndication: Merchant bankers assist clients in getting term loans for projects, obtainable from a single development finance institution, a syndicate or a consortium.

Bad Credit, High Prices

It is easy to be manipulated into a contract that you think you can handle, for example with a two year cell phone contract. However, at any point in your contract the rates can increase dramatically… and you are trapped. The only way out of a cell phone contract is to pay an outrageous penalty fee. While your credit will be affected simply by needing to back out of a contract, it will be affected even worse if you are unable to pay the fee. A huge bill will be racked up in your name, and it’s not your fault. You’re a victim,

Cell phones target people with a bait and hook method. When you commit to a contract, you are rewarded with a lot of ‘free’ things that in the long run will cost you more than they are worth. Once your rate plan increases (with or without advance warning), if you are unable to keep up with the new monthly bill, you will end up with a negative credit report.

Cell phone contracts are just one of the many examples of how easy it is to develop bad credit. Credit problems are all too common, and there are many lending sources that attempt to prey on those with credit problems.

When you have a financial problem that requires financial assistance, having bad credit makes you vulnerable to lending sources that specialize in ‘bad credit loans’. Most of these loan options are another dangerous financial risk.

When you need a loan source, you shouldn’t have to settle for one that will make you pay an arm and a leg and your first born son just to get the financial relief you need now. If the need for emergency funds is urgent enough that you need a loan, there are better options than a ‘bad credit loan’.

The safest option for somebody with credit problems is a cash advance. A cash advance is the most affordable solution because the cash advance rates are much lower than what you would spend for a special ‘bad credit loan’.

Cash advances are offered with no credit check, so it doesn’t matter if you have outstanding credit, really bad credit, or (the worst kind) no credit, you still get the money you need at an affordable rate.

Cash advances are the safest solution available, because you are not committing to a lengthy payment plan. You are not facing the risk of late fees, increased rates, or any other ‘extra’ costs.

The only commitment you make with a cash advance source is that your cash advance will be repaid on your next payday. If you do have a history of bad credit, a cash advance is the safest way to access the emergency funds you need.

Cash advances are designed to provide you with the cash you need between paydays. You should never take more than you can give back, and a cash advance source will not let you borrow more than you can afford. Cash advance sources will qualify you for a cash advance that you are capable of repaying on your next payday, and the money you need will be deposited directly into your bank account, where you can easily access it usually within 24 hours.