How to survive difficult financial times

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Many of us at some point in our life may face a financial difficulty at which point we may need a financial backup plan to help you stay afloat for the month during a crisis. For instance, you may find yourself short on money towards the middle or end of the month, and you won’t be getting your pay cheque by next month. Usually, in this case, people will use their savings as a backup plan however for some of you who don’t have this option, don’t worry, there are other options that you can try.

Sell

If you need quick cash, why not try and sell some of your things that you don’t need or use frequently. You can sell any item or furniture in your house by selling them online or selling them in a car boot sale. You can even post them up in your local newspaper or a local shop for free.

Friends and Family

Try contacting a member of your family or a close friend who may be able to lend you some money for the time being. It’s ideal for borrowing some money for a short period. They also may be more lenient with repaying your borrowed money.

Online loans

You may have a bad credit check especially if you’ve overdrawn in your account or you have made any late payments. Luckily, there are now online companies who can provide you with a loan even with a bad credit check. For most, they will usually just check if you have a current steady job.

Budget

To avoid running out of money, it’s ideal to create a budget or a plan on cutting your spending. Next time you make a purchase, ask yourself if you need the item. Or next time you shop for food, why not check and compare the prices and choose the best deals that can help you save money in the longer run.

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Different Types of Personal Finance

Financing a business through borrowing money is different to taking out loans for personal use, which we will focus more on today, and we’re particularly thinking about people having trouble with a bad credit history. There are a few ways you can build up your credit score again, and different products are available to you from banks although some will be more suitable than others depending on your situation.

There are two different types of loans, secured and unsecured. A secured loan is for a vehicle or home. If you should fail to pay on the loan, the lender will reclaim or repossess the asset. Because they are secured by a physical asset, they are not as difficult to get as unsecured loans.

Loan to Value Ratio

With any car finance or mortgage applications, the lender wants to know that they can get their investment back out of the asset. They will not lend the funds to purchase a car or home until they know the value of the property that will be used as collateral. The closer the borrowed amount is to the actual value, the higher the “loan to value” ratio is. People with excellent credit can typically borrow up to 100% of the value of the asset. Those with less attractive credit can expect to only borrow up to 80% of the asset’s market value. When you are applying for bad credit mortgages, plan on either putting more money down or finding a home that is being sold for less than the market value. Read More

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The facts about bankruptcy

Imagine this worst case scenario for a moment – hopefully it’s not something you have first-hand experience with. The bills are piling up on your doorstep and your creditors are knocking at the door. Unfortunately, you don’t have any money to pay off your debts. Though you seem to be at a dead end, there’s still one stop-gap measure you can use: bankruptcy.

Keep in mind, though, that there are many conditions and responsibilities associated with bankruptcy. It is only an appropriate course of action if you really are desperate to end your cycle of debt. If you’re considering it as an option, you need to be sure of the facts.

In order to be declared bankrupt, either you or your creditor could request for the Courts to make your bankruptcy order. For self-requested bankruptcy, you’ll need to fill out a couple of forms: the petition and the statement of affairs. After completion of the forms, you can pass your bankruptcy petition to your local county court. You’ll also have to pay some fees when you submit your petition. Read More

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Pay Day Loans And Bankruptcy

When you file for bankruptcy protection, you are required to claim all of your unsecured debts. Bankruptcy, however, does not allow the debtor to claim outstanding pay day loans in their filings. Although these loans may be considered small personal loans, they are not viewed as unsecured debts.

What Exactly Is A Pay Day Loan?

Pay day loans, which are often referred to as cash advance loans, are a unique type of lending instrument that has gained popularity in the last 10 years or so. In most cases, the borrower does not have to be approved to receive a loan. The borrower must simply provide proof of income to qualify.

Because these loans must be repaid in less than 30 days, they do not fall under the regular banking regulations that other small personal loans do in the finance industry. In addition, because these loans are backed by a personal check, or your next pay check, they are technically a secured loan. Since these loans are secured by your next pay check, or the fact that you have left a personal check at their business for deposit in the event you do not repay, they will not qualify as unsecured debts in the bankruptcy court. Read More

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Finding The Best Lender

Bad credit can cause serious problems for you when you need to borrow money. Whether you just need some cash for a short-term problem or are trying to buy a new car, your low credit scores can cause lenders to turn you down time and time again. However, regardless of your credit history, you need to be discerning about who you choose to do business with too. Dealing with a better lender will help you keep your finances under control.

When you’ve never taken bad credit loans before, you might be a little nervous about the process. Here are some of the things to look out for when choosing a lender, and examples of good practice that you should find reassuring if you come across them.

Initial Discussions

The lender will want to know about your employment history and will collect some personal information about you. The loans are typically deposited directly into your bank account and the payment will be automatically withdrawn from the same account on the agreed-upon date. Make sure all these areas are agreed in writing properly, so there are no issues later. Transparency is a sign of a trustworthy lender, and they will be looking for the same from you.

Clear Costs

Before agreeing to take out any loan you should know the interest rate, when the payment is due and what the total cost of borrowing the money will prove to be. Reputable companies offering bad credit loans will clearly advertise their fees. They will not try to slip in extra charges but will be completely honest about all the associated fees. Look for bad credit loan lenders who have marked prices so you know exactly what the cost of borrowing the funds will prove to be. Read More

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The UK’s Debt Problems

Do you have debt problems? If so, welcome to the club. Debt has become a part of life for most of us in the UK. It’s nothing new that borrowers, especially those on low incomes with high levels of debt, are falling behind. Rising utility bills, unemployment and unexpected shocks such as divorce were also blamed for causing 7.7 per cent of mortgage borrowers some serious financial difficulties in recent research.

Since the economic downturn of 2008-2009 all over the world, people have naturally been reminded of the potential consequences of letting debt get out of hand. As the global economy has recovered, most countries have been forced to take a look at their spending and prioritise getting their debts organised. Individuals and businesses have also learned to develop their skills at managing money amid the threat of another widespread economic disaster, but are we really able to move on entirely for a life based around debt if we still want to succeed in business and our personal lives? Read More

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Save Money with Barter Exchange Websites

You may be finding it difficult to make ends meet and feel as if your money is being stretched as far as it will go. However, cash isn’t the only asset you have. For most of us, the most valuable things we have to offer are our unique skills and specialisms, which could mean so much more to other people. There is value to be extracted from a skilled person whose talents are not required in their own life, but could be priceless to someone else. But how do you turn your skills into a money saving method?

This is where some online research can really help. It’s possible to find dedicated websites where you can exchange unwanted items, goods and services online in a barter exchange system, which more closely resembles basic trading without the need for currency. Usually these online listings are all assigned a monetary value for the sake of clarity and ensuring fairness, but no money has to change hands. You’re not limited to trading physical items, and instead these sites are increasingly being used by people swapping services. Read More