How To Save Money On Car Loans

Have you noticed that everyone seems to have a newer car than you? There's good news. You can find a way to upgrade your old clunker to a newer model. There are many ways to save money on your car loan. Lenders are competing for your business, and more and more car loans are approved to allow more people than ever to buy a car.

So now that you've decided to buy a newer car, the question on how to pay for it arises. If you're like most people, you don't have the cash needed to buy a new car. The other option is to borrow the money. There are certain guidelines to follow which could help you save money on a car loan. Careful planning, comparison-shopping and persistence are necessary to find the best deals.

If your credit rating is good, you should have no problem in negotiating a low interest rate. However, there are still basic principles, which apply during your search to find ways to save money on car loans. If you have a pile of credit card bills to pay and have made recent large purchases such as another car or a home, it is likely that your loan will have a higher interest rate. The object is to save money while negotiating your car loan.

Having a good credit report is an important asset and one of the basic requirements for saving money on car loans. You should always keep your payments current to avoid those nasty little "late" notices that appear on your credit report. It is especially important that your debts be paid on time for a few months prior to applying for a car loan. You will be asked to list financial institutions in which you have accounts, and it's nice to be able to show some savings, too. Your credit score may be reduced which could prevent you from saving money on your car loan. Your credit score also dictates the interest rate on your loan.

Another way to save money on a car loan is to have a sizable down payment or trade-in. The less money you borrow the lower your total interest will be. To save yourself from a hassle while negotiating arrangements for a car loan, it is helpful to be pre-approved for the amount of money you need to finance your car.

There are many financial institutions more than willing to finance a car for you. A reputable lender is obviously going to make some profit or they wouldn't be in the business of lending money. You can use a traditional lender such as banks, credit unions, etc., but you should also compare their interest rates with the online lenders as well.

Most car dealerships are very happy to arrange a loan for you. First, you choose the vehicle you want, test drive it and make the decision to buy it. The majority of car dealerships is honest and will gladly help you find a way to save money on a car loan. Be sure the dealer you select has a reputation for placing customer satisfaction first.

Naturally, a salesperson may want to sell you the more expensive models, but you should stay focused on your goal of getting the most for your money and saving money on your car loan.

About The Author

© Noel Hynes is the owner of http://easy-auto-loans-online.com. Easy online auto loan applications.

Online Loans Made Easy

What will it take for you to get a low interest, low payment loan? The answer to that question could be an online loan from one of the many companies that specializes in granting online loans, or e-loans.

Some analysts forecast that as more and more customers expect better interest rates, and as competition for their business intensifies, loan institutions will focus even more on their efforts to lure as many customers as possible to use their services, and online loan institutions are no exception.

Both traditional lenders from financial institutions such as banks, mortgage lenders and credit unions as well as on-line lenders compete fiercely for the privilege of lending money. Incentives such as zero percent or low-interest-rate financing, giveaways, and cash rebates are just some of the ways to gain your business. All this appears to be great for consumers, but the wise person must discern between true incentives and come-ons by deciding whether a rebate or a super-low interest rate is most beneficial. A rebate is not a bargain if the interest rate makes the pay-off on the loan higher.

Online loans are quick, convenient and easy. Just fill out an application from your computer. You are usually approved or disapproved within a matter of minutes. But before you begin the application process, there are basic matters that you should be aware of.

Your credit rating can affect the amount of the loan and the interest rate of your online loan. Check your credit score before you start looking for a loan. Having a high credit score will result in a better interest rate than a poor score. If you are considered a credit risk, many lenders will work with you, but your loans may have a much higher interest rate. It's important to clear up your credit problems before you apply for an online loan to help you negotiate for the best loan possible. Not knowing your credit score may hinder your efforts.

As with traditional loans, you should always comparison shop when searching for an online loan. If you are making a high-dollar purchase such as a home or a car, it is advantageous to be pre-approved for your loan to keep your financial arrangements out of negotiations on the price. Online loan institutions may be of tremendous help in this area.

You should focus on the overall amount of the online loan as well as the interest rate. There are several online sites where prevailing interest rates can be viewed to help you decide which online loan institution to use. The overall length of the loan is another factor to keep in mind, as the length of the loan decides what your monthly payment is going to be. Obtaining a short-term loan could save many dollars in interest.

Online loans are relatively easy to get if you have a good credit rating. The usual purpose of an online loan is to finance a home or automobile. Online lending institutions realize that the loan is backed by collateral, and they are not likely to lose money if you fail to pay the loan.

Online loans are just one more way to make your search for money to finance your purchase easy and convenient. Online institutions will make every possible effort to approve your loan because doing so benefits the lender as well.

About The Author

Noel Hynes is the owner of http://loan-access.com. Easy online loans applications.

5% Down Vs. 10% Down - A Comparison

It has always been an issue for home buyers to save their down payment. Many people, on advice from various people wait to save 10%, rather than moving into the home sooner with 5% as a down payment This is not always a good idea. Let me explain;

We have 2 young couples, the Jones' and the Smiths. They both have the same amount of money to spend on housing and saving ($1000/month). From that $1000, they are paying their rent of $750/month, and saving the other $250 for their down payment. In fact they're identical people.

The Jones' and the Smiths are both looking to buy a $100,000 property. As such, they will need $5000 as a down payment if they purchase at 5% down, or $10,000 if they wish to have 10% as a down payment.

To date, they have both saved $5000 with which to purchase a property. The Jones' have decided to buy now and accept that they only have 5% as a down payment The Smiths' have decided to wait until they can raise 10%; thus saving themselves some CMHC costs.

What the Smiths' aren't realizing is that while they wait, the cost of the property is increasing... thus incrasing the amount of money they need as a downpayment.

They've also not taken into account that the money they are paying in rent is being thrown away, while they could have been putting that against their mortgage.

Sure, saving the CMHC fees is a good idea. But is it necessarily the right way to go? Not always.

If it takes the Smiths an extra 2 years to save up the extra money, the property could have increased by as much as $15,000 in that time.... meaning that they'd need more of a down payment, as well as having a larger mortgage than if they'd bought earlier.

If you'd like to read this article in full, including graphs showing the difference between the Smith's and the Jones' then go to our website at www.workingtogether.ca and review the article titled "5% Down Vs. 10% Down - A Comparison". You'll get the idea; and possibly save yourself a lot of money!

About The Author

John Carle & Sharon Gregresh are Realtors with Royal LePage - ArTeam in St. Albert, AB. They pride themselves on providing more than just real estate sales and listings. Their clients benefit from a much larger spectrum or real estate services. Contact them any time at information@workingtogether.ca or through their website at www.workingtogether.ca They can be reached by phone at (780) 458-5595

Free Money Saving Auto and Home Loan Tips

Free Auto Loan Tips

The following tips should help increase your chances of getting a car loan at a better rate.

Tip #1 - If you just started a job (recently graduated from college) then wait 6 months to apply for your car loan.

Tip #2 - If you have currently have bad credit then repair it before applying for an auto loan.

Tip #3 - If you've recently moved then wait until you have lived at your new address for 6 months before applying for a loan.

Tips #4 - If you have had a previous auto loan or home mortgage on your credit report then your chances for a new loan improve greatly.

Tip #5 - Try and pay off all of your credit card balances or at least lower them. You may want to consider finding the best debt consolidation loans to erase all of your credit card bills. The bottom line is don't keep a high debt load or credit card balances.

Tip #6 - You must have a stable job or occupation.

Tip #7 - Other examples of credit extended to you should appear on your credit report. Verify this with a quick and easy online credit report. Also avoid charge off's on your credit report.

Tip #8 - If you've filed bankruptcy before then you should wait 3-4 years before trying to get an auto loan.

Free Home Loan Tips

Tip #1 - Make Bi-Monthly Payments: Instead of paying your mortgage with one monthly payment switch to paying half of your loan payment every 2 weeks. The savings comes from the 26 half payments you make which add up to 13 monthly payments versus the regular 12 payments you would normally make in a year. The end result is you save a large sum of money on the interest owed and you'll own your home a lot sooner!

Tip #2 - Choose a 15 year mortgage instead of a 30 year mortgage: You'll end up with a higher monthly payment but in the long run you also save tens of thousands of dollars in interest charges, especially if you shop for the best home loans you can afford.

Tip #3 - Mortgage Refinancing: Currently this is the most popular trend. You refinance your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and plan to keep the new mortgage for several years or more.

Tip #4 - Buy down the rate: The seller or builder, or through innovative pricing, can help you buy down your mortgage rate for one, two, or three years.

Tip #5 - Consider an adjustable-rate mortgage (ARM): If you think you will be in your house for less then 5 years then perhaps you should consider an ARM. An adjustable-rate mortgage (ARM) starts with a considerably lower interest rate, but then adjusts every year. This type of loan moves a little bit of the risk away from the lender, and the lender rewards you with a lower rate. Usually these mortgages are capped to rise not more than two percent in any year, and not more than five or six percent for the life of the loan for your protection.
Timothy Gorman is a successful webmaster and publisher of Military-Loans-Online.com – Which provides free money saving loan quotes on all of your loan needs to include home equity loan information that you can research in your pajamas on his website.

Other websites operated by Tim

Cellular-Phone-Solutions.com - Free information and resources regarding cell phones and cell phone plans.

Best-Free-Insurance-Quotes.com which provides free insurance information and offers discount auto, life and home insurance.

Getting Good Value Personal Loans

Over recent years, personal loans have become a popular solution for many consumers looking to raise finance for a variety of purposes. You can get personal loans for all sorts of things, from debt consolidation to holidays, cars and other purchases. It is far easier these days to get a great deal on finance, with cheap personal loans available from a variety of competitive lenders.

When looking into personal loans, you should consider a number of factors. Comparing the interest rates and terms on a selection of deals will ensure that you get access to cheap personal loans so you can enjoy lower monthly repayments. And if you go online to browse deals and apply personal loans lenders can offer instant quotes as well as really competitive rates of interest.

It is always advisable to compare a number of quotes and deals on personal loans, as you can then make an informed decision with regards to which finance package offers the best rates and terms for your needs and your budget. This will help to ensure that you enjoy cheap personal loans and low repayments, and you could even find additional benefits such as payment breaks.

The Internet has fast become the leading source of cheap personal loans. Many financial consumers that are looking for personal loans for a variety of reasons tend to go online to get a great deal. Not only can you check out the various deals on personal loans online, but you can also apply for personal loans online as well. This can help to speed up the process and can result in an instant decision in principle in many cases.

About The Author

Christos Margetis is the president of http://www.Clickgofind.com. Christos is available for interviews and public speaking. The tips in this article were extracted from Chris's award- winning website Personal Loans Resources. ClickGoFind offers best information and reviews for personal loans, loans and financial resources information. This article is copyright (c) 2004 by Chris Margetis, and may be reprinted in it's entirety as long as this byline and copyright statement is included.

christos@margetis.com

Why Student Loans are Better Than Credit Cards

You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options –

-With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.

-With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.

-With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.

This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to—

-Pay your balance each month to avoid interest charges

-Pay your bill on time to avoid late charges

-Avoid cash advances, which come with large finance charges and interest that begins accruing immediately.

This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more on how Student loans are better than credit cards at http://www.NextStudent.com .

My goal is to help every student succeed - education is one of hte most important things a person can have, so I have made it my personal mission to help every student pay for their education. Aside from that, I am just a pretty average girl from SD.

http://www.nextstudent.com/

How To Easily Find A Military Loan

Military members the price for serving your country and defending freedom is difficult, fortunately finding the right loan to fit your situation doesn't have to be when you know where to look. Finding a loan provider that understands the pressures and time constraints that many military members are currently going through can be difficult and downright depressing. Lets be honest, after working upwards of 15 or more hours a day who has the time or energy to go seek out loan providers in person. Fortunately the Internet has easily resolved that problem.

Using the Internet to find a military loan provider has leveled the playing field. Never again will you have to worry about talking to a loan lender during your short lunch hour or feel pressured to take the first loan that you qualify for. Now you can simply do an online search for military loan providers and find a loan provider for free in the comfort of your own home.

Most online loan lenders allow you the opportunity to compare numerous quotes for free and you’re never under any obligation to accept any loan that is offered to you unless it meets your specific needs, wants or desires. In most cases you can find out if you’re approved for a loan within 24 hours. Some providers even have the capability to tell you within minutes if you qualify for a loan. The only requirement is for you to fill out a simple form on their website that usually takes less then 5 minutes. Don’t worry; they also keep any information you provide secure and confidential. Best of all you can search for your loan at any time day or night – even in your pajamas if you so desire.

Stop searching for a military loan the hard way. Instead use your computer and find the loan you need online without any time constraints or hassles.

Timothy Gorman provides more loan information and free military loan quotes that you can research in your pajamas on his website: Military Loans Online

A Brief Look At Various Types of Loans Available

A Brief Look At Loans

"Innovative financial packaging" is how it is sometime known. Essentially what this means is that financial institutions look for more and more ways to lend to their customers - after all, charging interest on a debt is the main way that they make their money. But, with more and more loans now available, it can sometimes be difficult to know exactly which loan to apply for. The following explanations try to clear this issue up a little for you:

Personal Loan

Probably the mainstay of financial institutions is the personal loan. As the name suggests, personal loans are money borrowed from a financial institution for personal use. In nearly all cases, a personal loan is going to be unsecured, which means you'll likely be paying a premium on interest. Once the personal loan is given, you repay it by making monthly repayments to the lender. In effect, this is the multi-purpose loan.

Auto Loans

Auto loans are where you borrow money from a financial institution in order to buy a car or vehicle. In most cases auto loans are done by the car dealer, but there is no reason why you cannot make arrangements with your bank before buying the car to borrow the money from them. As with a personal loan, most auto loans need to be repaid by monthly installments. Sometimes, although not always, the financial institution will secure your loan with the vehicle, which means if you cannot repay the loan they'll repossess your car. One additional expense with an auto loan is that most lenders insist that you take out fully comprehensive insurance during the period that the auto loan is outstanding.

Home Improvement Loans

As the name suggests, home improvement loans are where you ask a lender to lend you money so you can improve your home. In most cases a home improvement loan is granted on the condition that you give the lender a second rank mortgage on your home. As such, the loan amount can rarely exceed the valuation price of your home - including the increased value after the improvements have been made. Again, home improvement loans usually need to be paid by monthly installments; however, balloon (or bullet as they're also know), one-off, payments are also sometimes accepted.

Education Loans

Education loans are where you borrow money to further your studies. One big difference between an education loan and any other type of loan is that most education loans, although given by a financial institution, are underwritten by the government. Consequently, the interest rate on education loans (also known as "student loans") is usually very low.

Holiday Loans

These days it is even possible to go to your bank and ask them to borrow money so that you can go away on holiday! As you'll be using the money to go on holiday, this type of loan is unsecured. Consequently, interest rates are high. Not really a recommended way of paying for your holiday, but nice to know it's out there if you need it!

Debt Consolidation Loans

Unfortunately debt consolidation loans are becoming more and more popular these days. A debt consolidation loan is where you have too much debt on store cards and credit cards and you need to borrow money to pay these all off and consolidate them into one big debt. The advantages of doing this are two-fold: (i) hopefully you'll lower the borrowing interest rate; and (ii) you only have to deal with one creditor.

Having decided upon the type of loan you want, all you need to do now is to ask your financial institution to approve the loan - Good Luck!

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Sara Dowling is the owner of Be-Healthy.net and Ynow.com
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Why Bank Overdrafts May Be a Bad Deal For You

Many banks actively encourage their clients with low balances to overdraw their accounts. That means, if the customer writes a check or uses her debit card and has insufficient funds in the account, the bank clears the check by granting a temporary overdraft (a short-term loan), up to a specific limit. The customer is saved from the problems of bounced checks or interrupted shopping sprees.

Sounds like a good deal for the customers, right? That's what the banks say. They claim overdrafts are an added convenience to customers.

The truth is, they're often a very bad deal for the customers. Here's why.

When a bank grants a regular line of credit, the interest charged may be up to say, 20% or so. However, for overdrafts, banks don't charge interest -- they charge a flat fee on each transaction. This fee does not depend on the value of the transaction.

Let's see how that works. Overdraft plans fees may be as high as $35 per check. We'll assume a more conservative fee of $20 per check. If you have four checks totaling $200 that have insufficient funds against them and the bank automatically activates the overdraft and clears those checks, you will owe $80 in overdraft charges.

Unlike revolving lines of credit which you can repay at your convenience, an overdraft has to be settled in just a few days. Let's say the bank allows you to run the overdraft for 14 days.

A loan of $200 for 14 days incurring charges of $80 translates into an Annual Percentage Rate (APR) of 1043%!

A "convenience" for customers? Not at these rates.

What does this remind you of? It reminds me of payday loans and cash advances. Those are the other forms of lending which charge you such sky-high APRs. In fact, if you choose to repay a cash advance on due date and not roll it over, you'll likely be charged far less than what the banks charge you for an overdraft.

It gets even worse. Banks have software that ensures that your largest value checks and debits get processed first. There may be some logic to that. However, this arrangement also means that when there are insufficient funds in your account, instead of paying one overdraft charge on one large check, you pay several charges on several smaller checks!

Plus, most customers don't even realize that they are overdrawn until the bank notifies them about it.

Consumer advocates say that banks are perfectly aware that many people barely make it from payday to payday. These customers typically have very low balances. Rather than offer them a service that would be in their interests, banks extract high fees from them to cover bounced checks.

If you are caught short between paychecks, consider arranging funds from other sources rather than turn to overdraft protection. The best solution to the problem is to systematically build up cash balances so that you don't face such a situation in the first place.

About the Author

Prakash Menon is a financial expert and writer specializing in managing personal debt and providing wealth building solutions. He has written on signature loans, personal debt management and other topics.

Five Things To Check Out When You Apply For a Payday Loan

Are you thinking of going in for a payday loan to meet an unexpected expense? If so, look into these five things before you finalize one. This checklist can help you make smarter choices. You might even end up saving some serious cash!

1. First thing to consider -- do you really need that cash advance? Sure, you need cash right away, but have you looked at other options? The fact is, a payday loan is an extremely expensive source of funds, with Annual Percentage Rates (APRs) ranging from 300% to 1000%. So before you take one, see if you can arrange money by taking an advance from your employer or from your credit union.

   You could also consider borrowing money from friends or family. Depending on your situation, credit card funding might be an option too, because it's usually cheaper than a payday loan.

2. Ask yourself how much you can really repay when the next payday rolls around. Work out an exact number you can commit to. Take a cash advance only for the amount you can repay, considering all charges as well. Obtain funds from other sources for any additional requirements you may have.

   Here's why. If you choose to roll over all or part of the payday loan, you end up paying much more -- additional charges, late fees, etc. Your APRs start climbing rapidly and you may even find yourself trapped in a vicious cycle of payday loan debt. Stay clear of this trap.

3. Apply only for one payday loan at a time. Your application gets reported to a consumer tracking database used by payday lenders and banks. If you apply for multiple loans, the lenders may see the multiple applications and you might end up being rejected by all of them.
4. Go through the lender's approval criteria very carefully. Apply only to one where you can qualify. If you apply to a company that has stringent criteria and get rejected, that can actually hurt your chances of getting approved by another company with more relaxed criteria.
5. If you're applying online, ask yourself if the lender's website seems professional and well-organized. Do they have clear information and guidelines on the site? A comprehensive FAQ?

   Most important -- do they have an SSL certificate on the application page? This indicates data is being transmitted securely. Secure pages have web addresses that begin with "https:" instead of "http:" and in addition, you'll see a lock symbol displayed in your browser. If a lender is using a non-secure page to collect information about you, find another lender!

Acting on the above points will help you make better choices about payday loans. The best solution is, of course, to get your personal finances into excellent shape so that you never need to borrow in an emergency.

About the Author

Prakash Menon is a financial expert and writer specializing in managing personal debt and providing wealth building solutions. He has written on alternatives to payday loans, personal debt management and other topics.

Facts You Should Know About Types of Loans

When you set out to borrow, you often come across terms like unsecured loans, revolving loans, adjustable rate loans, etc. While these terms are more or less self-explanatory, it is still useful to be clear on their exact meanings and what they imply before you finalize a loan contract.

Unsecured versus secured loans

As the name implies, a secured loan is one where you offer some kind of collateral against the loan. The agreement is that if you default on the loan, the lender has the right (but not the obligation) to take possession of the asset you have pledged.

In most cases, this asset would be what the lender has financed. For example, when you take a home loan, you offer the home as collateral.

There may also be cases where you may need to offer additional collateral over and above the asset that is being financed. This happens, for example, when the lender is financing close to 100% of an asset that is prone to rapid reduction in market value. In such cases, the lender may insist on your putting up another asset so as to provide a reasonable margin of protection in case of default.

Unsecured loans are those where such collateral arrangements do not exist. These loans are granted based on your credit standing, ability to repay and other factors.

In cases where there's a choice available to the customer to take either a secured or an unsecured loan, the former may be offered at a somewhat lower rate. That is, assuming every other factor remains equal. This is because of the lower risk involved to the lender, who has recourse to a specific asset in case you default. However, this situation is comparatively rare in consumer financing, although it is more common in financing businesses.

Installment versus revolving loans

A revolving loan is one where you have access to a continuous source of credit, up to a pre-determined credit limit. If the limit is say, $10,000, you can borrow any amount up to $10,000. And typically, you can repay all or part of the amount you borrowed at a time of your choosing, within the overall tenor of the loan.

You pay interest only on the amount you borrow for the time you borrow it. Sometimes, banks may charge a commitment fee for making a revolving line of credit available to you. This fee is usually charged on the average unutilized amount of your limit.

You can also re-borrow the amount you have repaid. In effect, you have a loan that's always available to you on demand.

Unlike revolving loans, installment loans have a fixed repayment schedule. In most cases, the full amount of the loan is drawn down (i.e., borrowed) at once and both repayment schedule and amounts are fixed in advance. You do not have the option to re-borrow the amount that has been repaid.

Adjustable rate versus fixed rate loans

A fixed rate loan is one where the interest rate charged is fixed for the entire duration of the loan. The advantage is that you are immune to fluctuations in interest rates and can budget your cash outflows precisely. The disadvantage to you (the borrower) is that should interest rates fall, you lose in terms of opportunity costs. That is, you could have obtained a lower interest rate had you opted for an adjustable rate loan.

In practice, you can always choose to refinance the fixed rate loan at a lower rate if interest rates fall sharply enough to justify it. Bear in mind that your current lender may charge a pre-payment fee if you choose to repay before due date. So the difference in interest rates between your old fixed rate loan and the new loan should be large enough to justify a switch.

An adjustable rate loan is one where the interest charged fluctuates in line with a benchmark rate. This benchmark rate is usually the Prime Rate, which is what the US Treasury charges its prime (or best) borrowers. The advantage of an adjustable rate (or floating rate) loan is that what you are paying is more or less in line with the market. If interest rates decline, so do your costs and vice versa. The disadvantage is that your cash outflows for interest are unpredictable.

As a borrower, if you hold the view that interest rates are going to decline, it is best to opt for an adjustable rate loan. But arriving at the correct view consistently is easier said than done. Predicting interest rates is a game where even professional market participants and institutions frequently go wrong.

If it is important to you to be able to budget for your interest obligations in advance, a fixed rate loan may be the best choice. After all, you can refinance it should the interest rates fall significantly.

Keeping these basic facts in mind should help you make more informed borrowing decisions.

About the Author

Prakash Menon is a financial expert and writer specializing in managing personal debt and providing wealth building solutions. He has written on payday loans, personal debt management and other related topics.

Should You Ever Take a Payday Loan?

Payday loans have many names -- cash advances, signature loans and paycheck loans, etc. Payday lenders provide quick and easy short-term cash to those who need money immediately. That's the big reason why they're so popular.

However, payday loans come at exorbitant costs. This can -- and often does -- lead borrowers into a downward spiral of rapidly escalating debt. Let's look at the issue from various angles to get a complete picture.

First, the pluses. Here's why cash advances may hold enormous appeal for you.

• You can have bad credit and still qualify for a payday loan. In most cases, no credit check is conducted.
• The process is fast -- it takes as little as 20 minutes to complete. You can even find lenders who target approvals in 30 seconds!
• There are no upfront costs -- so the buy-now-pay-later mentality can find full expression.
• You can apply in person at a local outlet, over the phone or over the Internet.
• You get funds deposited into your bank account in 24 hours.
• Compared to some other sources for cash, payday loans are discreet -- no one else needs to know about it.
• The transactions are secure -- your financial information remains private.

If you're faced with an emergency -- say, unexpected medical bills -- your only consideration might be to get money now. The speed and convenience of a cash advance comes in handy here.

So what are the disadvantages?

The most obvious one -- high costs. A payday loan can cost you say, $15 per two weeks. If you're borrowing only for two weeks, that doesn't sound like much. However, if you calculate the Annual Percentage Rate (APR), you'll see it comes to 391%!

If you don't think that's too much, let me ask you this question. If you invested money in the stock market, what would you consider a good annual rate of return? 20%? Maybe 30%? If you made a 20% return (on average) in stocks year after year, you'd be doing very well indeed. And this is for an investment that's generally considered high risk.

Now compare that with what the payday loan companies charge. You are providing them with a return on their money they likely won't get anywhere else on the planet!

There is another, less obvious reason why payday loans are dangerous. According to some estimates, over 60% of borrowers roll over a payday loan. Many take loans repeatedly, too.

Let's put in some numbers so that you can clearly see what rollovers imply.

Assume you borrow $400 for two weeks at a cost of $15 per $100 per two weeks. At the end of two weeks, you owe them a total of $460.

Let's say you don't repay the $400 at the end of two weeks. Instead, you request a rollover. So you pay them the lending fee of $60 and they agree to roll over the loan for another two weeks. The total cost of the loan at the end of 4 weeks may be as follows:

Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60 (assuming late fees apply at the same rate as lending fees)
Lending fees already paid: $60
Total: $580

At the end of this period (which is 4 weeks from the day you originally took the loan), you decide that you don't have $580 available and so request them to roll the loan over for another two weeks. Then this is what it can cost you in total at the end of 6 weeks:

Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $120
Late fees already paid: $60
Total: $700

If you continue this process for six months (more specifically, for 24 weeks), this is what it may cost you in total:

Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $660
Late fees already paid: $600
Total: $1780

For an original loan of $400, in a mere 6 months, the payday loan company will collect fees and charges of $1380 from you. That's 3.45 times the amount you borrowed. In APR terms that's 749.5%! If over 60% of borrowers roll over their loans, no wonder many payday loan companies are wildly profitable!

Snowballing costs can easily lead you into a debt trap if you get addicted to payday loans.

So what are the key points to keep in mind when dealing with payday loan companies? Two things:

First, avoid them if at all possible. The best way is, of course, to get your finances fully under control so that you always have cash and / or credit available to meet emergencies.

Second, if you do choose to borrow from payday loan companies, borrow only an amount you're 100% sure you can repay on the due date. If that amount is too low to meet your needs, get additional funding from other sources. Because rolling over cash advances is one of the worst things you can do to yourself.

About the Author

Prakash Menon is a financial expert and writer specializing in managing personal debt and providing wealth building solutions. He has written articles on cash advances, personal debt management and other topics.

What You Should Know About Home Equity Loans

A home equity loan is essentially a type of second mortgage. You'll be borrowing money against the value of your home. This carries risk, but can be worth it in the end if you know what you're doing.

The most common type of home equity loan is a "closed end" home equity loan. This type of loan essentially allows you to borrow a certain amount of money against the value of your home. You cannot borrow more money on the same equity loan, so if you need more money later, you'll have to try and take out another loan.

Most people find that getting a home equity loan can go a long way toward helping them to get out of debt. Since you're borrowing money against your house, there is a greater chance that you'll end up with a lower interest rate than you're used to. This will probably result in a much lower monthly payment than most other loans.

One reason to get a home equity loan is if you are in a lot of debt and have several high interest payments to make each month. If you can get enough money in an equity loan to pay off your other debts, you'll be able to effectively consolidate all of your debt into one low monthly payment.

It is essential, however, that you make sure that you're able to meet your monthly payments after you get a home equity loan. After all, if you start missing payments, you might lose your house. Therefore, you should make a very careful assessment of your financial situation before you apply for the home equity loan. If you do not think that you'll be able to pay even the low monthly payments on this loan, then don't take the loan. If you're considering the laon for debt consolidation purposes, you might be better off looking at one of the many other debt consolidation options that are available to you.

The closed end home equity loan is not the only loan of its type. If you are looking for something that's a little more flexible, then you might want to go with a home equity line of credit instead.

A home equity line of credit works very similarly to a loan, and can definitely help you reduce your interest rates and monthly payments. The major difference, however, is that a line of credit will allow you to borrow more money against your house when needed - in some cases, up to 125% of your home's value.

While a home equity loan is better in most cases, the line of credit is a good idea if you're not sure how much money you need to borrow right away. With the line of credit, you can increase the amount of money you've borrowed against your house easily.

You will more than likely also want a home equity loan if you have a lot of credit card debt. While credit card interest rates are traditionally very high, home equity interest rates are fairly low. Since it's likely that you've ended up with several credit cards, you will probably have a lot of debt that you can easily consolidate with one home equity loan.

A home equity loan may be right for you if you need to consolidate debts quickly, and you're sure that you'll be able to pay off the home equity loan without missing any of your payments. If you are taking the loan for debt consolidation, be sure you have the discipline to use all of the loan for that exact purpose!

Peter Sachford is the owner and operator of AAA Home Equity Loan which is a popular and comprehensive resource for information on home equity loans. For more information, go to: http://www.aaahomeequityloan.com

Bank Auto Loans - Best Loans for Stretch Commuters?

People have to work to survive. The desire to maintain increasingly indulgent lifestyles drives 13% of workers to travel over 100 miles a day to get to and from work. These so called “stretch commuters” make the majority of these trips by personal vehicle, but when it comes to trading in their tired automobiles for newer models should they just settle for a bank auto loan?

Stretch commuters do not have a lot of time on their hands. They spend most of their working week either at work, or travelling to and from it. When they get home exhausted the last thing they want to do is to look for the best deal for a car loan. Therefore, getting a bank auto loan is the easiest and most convenient option.

Let’s quickly take a look at some of the advantages and disadvantages of this.

Advantages of bank auto loans

1. Convenience – Most consumers with checking accounts have held their account with one bank for a number of years. This may be due to inertia, but it is easier to manage finances if check accounts and a bank auto loan are held in one place.

2. You know your own bank – banks have strong brands and financial strength. They have spent years building a good reputation in society. This engenders trust from their customers who may find it daunting to take out a car loan from an unknown finance source.

3. Lower rates than car dealers - Bank auto loans will probably be able to provide you with lower interest rates than dealer loans. Most banks will offer to pre-approve customers for their loans so that they will have better bargaining power on the car lot.

Disadvantages of bank auto loans

1. Not necessarily the best rates – Even though banks have financial strength they may not be able to offer the best car loan rates. In a recent study by bankrate.com, the average interest rate offered on a 48 month bank auto loan was almost 2% higher than those offered by Credit Unions!

2. Placing All your eggs in one basket – Everyone has heard that saying and although it may be convenient why should consumers place all their finance needs with one institution. There are so many other deals out there.

3. Perfect or excellent credit preferences – People that have car loan bad credit or a damaged credit score for any other reason may be turned away. They may have to finance their car by taking out a bad credit loan and may find that this is not offered by their bank.

Even though free time may be scarce for stretch commuters, and anyone who has a need to finance a car for that matter, researching all relevant products with banks, credit unions and auto finance specialists is worthwhile. Go online as rates, terms and product benefits can all be researched from the comfort of home. Investing a little time, rather than opting for the ease of taking out a bank auto loan could save consumers money.

Peter Siu is a successful freelance writer providing valuable advice for consumers when applying online for credit cards, student credit cards as well as other personal & mortgage loans. You can visit his sites at http://www.uscreditcenter.net and http://www.ukcreditcentre.com - His numerous articles offer moneysaving tips on a number of topics.

Get your Dream Car - Get a Car Loan

You’ve probably spent years thinking that your dream car is out of your reach. But have you though about a car loan? That car you’ve always wanted could be just within your grasp!

America is a nation of car owners. With over 133 million cars on the road, that means that there are 1.24 cars to every house in America! The amazing fact is that over 70% of these vehicles are purchased using car loans.

With a huge range of car loans available such as direct loans or dealer loans, it’s difficult to work out how much you can afford or which is best for you. Follow these top ten tips and you can’t go wrong!

Top Ten Tips – Getting the right car loan for you

1. Before anything, check your credit rating. If you have a credit score <600>

2. Spend time researching just how much your dream car costs. Try finding price comparisons from local dealers, magazines and online. There are bargains out there!

3. Calculate your monthly income minus all your expenditures to determine just how much you can afford on a monthly basis. Stick to this budget or you’ll find the car loan repayments tough.

4. Make sure you have enough money for the down payment. Loans have varying requirements for this – always check the small print!

5. Don’t just settle for the car loan rate from the manufacturer or the dealer you purchase the car from. They can be extortionate. Even if they do try and attract you with 0% interest rate advertisements, only people with perfect credit ratings actually qualify for these deals.

6. Do your own research and shop around for the best deal for you. Seek advice from banks, credit unions and loan institutions. Also, search online for car loans too. Some of the best rates are available, it can save you lots of time and searching for them is absolutely free.

7. Try to find an auto loan with an affordable monthly repayment that you can pay back in as short a timescale as possible. If you can pay back your car loan within three years instead of five, you will save yourself big bucks in the long run.

8. Now you understand what you can afford, is that dream car within your reach? If so - bonus! If the car loan repayments do not fit within your budget seriously reconsider and purchase a car you know you can afford.

9. Once you have found the best deal for you, get pre-approved for this auto loan.

10. Be strong when you visit the dealer. Know that they will try and persuade you to take another financing option but just say no. Stick to the car loan you found, the best loan for you.

Peter Siu is a successful freelance writer providing valuable advice for consumers when applying online for credit cards, student credit cards as well as other personal & mortgage loans. You can visit his sites at http://www.uscreditcenter.net and http://www.ukcreditcentre.com - His numerous articles offer moneysaving tips on a number of topics.

No Credit? - You Will Need a Bad Credit Loan

So you have never taken out a loan? You don’t have a credit card and you don’t have a mortgage? You always pay cash? You’re a student, a recent widow, a divorcee or from an ethnic minority group who have a tendency not to have any lines of credit? If you are any of the above then your credit score will not necessarily reflect your ability to pay as you have little or no credit history whatsoever. This will make it difficult to obtain any form of loan and in these circumstances you may have to take out a bad credit loan.

How prevalent is this?

Fair Isaac estimate that 50 million consumers do not have enough credit information on file to generate a credit score. This means that they are being turned away by lenders for things such as a personal loan.

Why does this happen?

Lenders will conduct a credit check. As there is little or no historic data available to measure the risk in loaning the individual money they will not meet their credit score criteria. More and more often, such consumers have to take out a bad credit loan to finance any large ticket purchases like cars as their credit score limits their financing options.

Is this fair?

It seems ludicrous that this is the case, but you have to look at it from the perspective of the lender. If someone walks into your bank or applies online to a lender for a loan, and their credit score is so low or does not exist, the automatic decision you would make is to reject the client. They appear to be too much of a risk.

Establish your credit history

The only way to remedy this is to start establishing a credit history. There are many specialist lenders who offer bad credit loans and bad credit car loans. They accept clients with little or no credit history far more readily. The bad credit loan will have higher interest rates than a standard consumer loan, but if clients make sure they pay on time and in full this will improve their credit score dramatically. They should just make sure that the lender does file credit reports, as not all of them do! In time, a credit score will be established and they can move on to apply for loans with much more favourable interest rates.

Peter Siu is a successful freelance writer providing valuable advice for consumers when applying online for credit cards, student credit cards as well as other personal & mortgage loans. You can visit his sites at http://www.uscreditcenter.net and http://www.ukcreditcentre.com - His numerous articles offer moneysaving tips on a number of topics.

A Renter in Debt? Take Out a Bad Credit Personal Loan

On average, homeowner households earn 95% more than renting households per year. With 26% of a rental households disposable income being spent on renting, in comparison to 15% of homeowners on their houses (not including maintenance), it is unsurprising that people who rent find it harder to manage and turn to bad credit personal loans for help.

It’s easy to fall into the rent trap. As monthly rents take over ¼ of their income, debts for renters can easily pile up. It is very difficult to make any savings towards a deposit for a home and very easy to get bad credit if you skip payments on things like credit cards to try and make ends meet. Fortunately, renters with bad credit can still apply for a bad credit personal loan.

A bad credit personal loan is an unsecured loan. This means that unlike a home equity loan you do not have to pledge a valuable item such as a home or a car to guarantee repayment. If you rent this makes perfect sense as you do not have a home to pledge anyway!

A really useful thing to know is that a bad credit personal loan can be used for just about everything including:

• Buying Christmas presents

• Furnishing a rented home

• Paying off credit card bills

• A new car

Most companies that offer bad credit personal loans are not interested in what the money will be used for, they are merely interested in whether the person taking out the loan will be able to make the repayments or not. If you have bad credit then you will need to seek appropriate lenders who offer a personal loan for people with bad credit, but there are an abundance of specialist lenders available.

The main advantage to using such a loan is that unlike a credit card, the credit is non-revolving. This means that the interest rate and the term of the bad credit personal loan are fixed at the outset. The monthly repayments are always the same and this makes it far easier to allow for in a monthly budget.

As these loans are unsecured and for bad creditors, they do carry a higher interest rate than a home equity loan, but if you do not have a home then this narrows your choices substantially.

Peter Siu is a successful freelance writer providing valuable advice for consumers when applying online for credit cards, student credit cards as well as other personal & mortgage loans. You can visit his sites at http://www.uscreditcenter.net http://www.ukcreditcentre.com and - His numerous articles offer moneysaving tips on a number of topics.

Secured Loans - UK Overview

Borrowing money has become more and more popular in the UK over recent years, and this is partly due to the fact that it has become far easier to borrow money. The rising popularity of consumer finance has also been aided by the wide variety of deals and the low interest rates available these days. Secured loans have become very popular with those that own property, and this type of finance deal offers affordability and excellent value for money. Secured loans are available from a wide pool of lenders, which means that consumers have plenty of choice when it comes to selecting and applying for secure loans.

The amount available to borrow with secured loans is dependant upon the amount of equity available in your property, which means the amount of the market value minus any loans or mortgage outstanding on it. There are many benefits available with secured loans, and you will find that this type of finance is one of the most cost effective options available. With secured loans you can look forward to far lower interest rates than most standard, unsecured loans, and this is because there is less of a risk to the lender since the loan is secured against an asset.

Secured loans also offer far high borrowing levels than unsecured loans, although the amount available to borrow will depend in your equity. However, you could find yourself eligible to borrow tens of thousands of pounds with secured loans, which could prove invaluable if you are looking to raise a large amount of finance for just about any purpose. The repayment period with secured loans is also far longer than with unsecured loans, which means that your monthly repayments will be far lower.

The other great thing about secured loans is that they are far more easily accessible to those with poor credit than a standard, unsecured loan. This is because the lender has to take less of a risk with secured loans, as they are secured against an asset, and the lender is therefore usually more willing to consider those with bad credit for this type of finance. Bad credit secured loans are available at really reasonable rates, which means that you can enjoy lower repayment terms even if your have a tarnished credit history.

One of the most common reasons for taking out secured loans is to consolidate other loans and credit. Many people pay out a fortune each month on a selection of high credit loans and cards. With secure loans you can wrap up all of that expensive credit in to one convenient loan, and you can then pay just one lot of interest and make just one repayment each month. You can use bad credit secured loans to wrap up your other more costly credit, and even to pay of some debts, and this can go some way toward improving and repairing your credit.

Secure loans are widely available online, and by browsing and booking via the Internet you can quickly ascertain which of these loans best suits you in terms of conditions and interest rates. It is always wise to compare the various deals available on secured loans in order to check that you are getting a competitive deal and rate.

Whatever you are looking to fund or purchase, secured loans make it more affordable and more achievable. If you are using a secure loan in order to consolidate your other loans and credit, you can look forward to far lower repayments each month as well as an overall reduction in the amount of interest you pay. Finding, comparing and applying for secured loans is simple when you harness the power of the Internet, and you can rally speed up the process as well as benefit from total convenience and ease. You are also more likely to find really competitive deals on secured loans when you look online, giving you an even better chance of getting great value on your borrowing.

If you find yourself in need of a fairly large sum of money and you have equity in your property, it makes sense to look into the range of secured loans available. With secured loans you don't have to worry about unmanageable repayments, because the lower interest rates and longer repayment periods on offer mean that your monthly repayments will be far lower than those of an unsecured loan. Most secured loans can be processed quite quickly these days, and when you apply online you can complete your secured loan application from the comfort of your own home.

With such great deals on offer when it comes to secured loans, this is by far the most cost effective option open to property owners. With many people sitting on large sums of money that is tied up in their property, paying extortionate fees on some unsecured loans makes little sense when you could enjoy far better rates with secured loans, which simply enable you to unlock the money that would otherwise be tied up in your property.

Christos Margetis is the president of Clickgofind Christos is available for interviews and public speaking. The tips in this article were extracted from Chris's award- winning website Secured Loans Resources

Common Mistakes Motorcycle Buyers Make When Looking For a Motorcycle Loan

Whether interest rates are high or low or it’s the end of a model year with lots of incentives, motorcycle buyers tend to make the same mistakes when shopping for a motorcycle loan. Here are four common mistakes motorcycle buyers make with motorcycle loans.

Shopping for a motorcycle before shopping for a motorcycle loan.
Many motorcycle buyers enter the showroom looking for a motorcycle before they determine how much money a motorcycle lender is willing to loan to them for the purchase of a motorcycle. There is no need to shop for a $20,000 Harley Davidson motorcycle, if a lender is only willing to provide a loan amount of $10,000.

Additionally, once motorcycle buyers enter the showroom slick salespeople often pressure them into motorcycle loans with much higher internet rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or online. Salespeople do not like motorcycle buyers to leave the dealership to get a motorcycle loan. In the salespersons mind this only increases the chance of loosing a sale and commission. Therefore, salespeople frequently try for a quick sale which normally results in pushing motorcycle buyers to get motorcycle financing at the dealership.

The bottom-line is that it is always best to shop for a motorcycle loan before entering the showroom.

Diving into the unknown motorcycle loan.
Motorcycle buyers often jump into motorcycle loans that they do not completely understand or may not be the best alternative for them. For instance, in today’s age manufacturers frequently run credit card motorcycle loan promotions on their private-label credit cards. But these promotions typically offer a low interest rate for a short term like 12 or 24 months and have a much higher interest rate after the short promotional term. On a credit card promotion if motorcycle buyers can not afford to pay off the loan during the short promotion period, then they are typically better finding a lender offering an installment motorcycle loan for a longer term.

Borrowing too much.

The most common mistake the first time motorcycle buyer makes in not having a clear sense of how much motorcycle they can afford. This is especially true for young motorcycle buyers who look to buy the top sport bikes that cost up to $10,000 - $15,000. What they fail to realize is that financing a $10,000 - $15,000 motorcycle can stretch them to thin, resulting in them having little cash to enjoy themselves and the motorcycling lifestyle. They may also have too little cash to pay for insurance, maintenance, registration or new accessories for their motorcycle.

Not asking the right questions.

The first warning sign that motorcycle buyers should see is that if they do not understand the type of motorcycle loan, then they should be sure to ask a lot of questions.

Here are some good questions to ask:

• Is the interest rate fixed or variable? If fixed how long will it be fixed for?

• Are there circumstances that can make the interest rate on the motorcycle loan change in the future?

• What happens if a payment is 30 days late? Does the interest rate increase?

• What happens if a payment is 60 days late? Does the interest rate increase?

• How long is the term on the motorcycle loan?

• If the loan is an installment loan, does it use rule of 78 or simple interest? (Simple interest is always better because it does not penalize the motorcycle buyer if the loan is paid off early.)

• What is the down payment requirement to get the motorcycle loan?

• Is full coverage insurance required?

• How much is registration and are these fees included in the motorcycle loan?

• Are there any administrative fees to get the motorcycle loan and if so how much are the fees?

Overall, motorcycle buyers can avoid these common mistakes by spending a little extra time focusing on shopping for a motorcycle loan and asking lots of questions.

Jay Fran is a successful author and publisher at www.motorcycle-financing-guide.com A comprehensive resource on how to have the best experience and get the best deal on motorcycle financing, bad credit motorcycle loans, high risk motorcycle loans and motorcycle buying.

Payday Loans - The Legal Loan Sharking Industry

Laws have been created to protect people against "Loan Shark" practices in which short-term loans are given out at excessive interest rates. There is an industry that has come of age the last couple of years that has circumvented these laws. Enter the Payday loan industry.

Payday loans is a some-what new multi-billion dollar industry in which people borrow money to tithe them over until their next payday. These loans also go by the names cash advance loans and paycheck loans. They prey on the lower class that find themselves short of money before a payday.

The one thing to consider when looking into a payday loan is the APR or Annual Percentage Rate that these loans carry. At first glance, you may think paying $240.00 for a loan of $200.00 for two weeks is ok. The A.P.R of this loan comes to a whopping 520%. That is the amount this loan would cost if played over a years time. Compare this with a high interest credit card of 29%. When you see it compared to these numbers, you can see they are not the bargain you first thought it was.

A representative from a payday loan company has agreed to be interviewed for this article on the condition his identity and that of his company be anonymous.

I asked him, how can they can justify such enormous interest charges. His reply was "Because we can. There are loopholes out there that allow us to do this. This is a high risk loan for most cases so we need to charge enough to cover bad loans and to make a profit."

When asked about if payday loans are ever a good idea, his response was "Sure. For example if you will be late on a credit card payment of $70.00 and will be charged a late fee of $30.00 then the APR of the payday loan justifies getting one. You will save points if you get a payday loan and not pay the higher interest rate of the late fee."

When you should get a payday loan:

There are times when payday loans are justified as discussed above. The primary example when your late fees are more expensive than the late fees paid to your creditors.

Another non-tangible justification is when you can avoid getting reported for a late payment. This can be far more expensive than any payday loan fee in that it could affect the cost you pay for future loans. This is especially true if it’s your mortgage or car payments.

Yet another reason to get a payday loan is that you determine that the cost is worth it to you personally. If you are headed for the long awaited vacation and could use a few extra bucks to enjoy and can afford the fees then you should look into this.

A final thought on when you should get a payday loan is if you need that cash and it’s free. That's right free. There are a many sites out there that charge ZERO interest to all first-time customers. One such site can be found at Low Cost Payday Loans.

What to look for when getting a payday loan:

The first thing to look for is the APR. Federal law has made it so that every lender must disclose the cost of any money borrow through a Truth in Lending Disclosure. This must break down the cost by APR (Annual Percentage Rate). This is the first thing to compare loans by.

Another thing to look for is the length of the term. If two companies charge the same rate for every hundred dollars borrowed but company A has a term of up to four weeks and company B has a term of two weeks, then go for Company A and take advantage of the extra four weeks. The APR of Company A is half of Company B. The reason this differs from the first item is that sometimes they base APR on a fixed amount of time (two-three weeks usually). When you read the fine print that the fee charge is fixed and may allow you to pay it back in a longer term such as four weeks.

The bottom line:

Do your homework when getting a payday loan and look for free to low cost payday loans if possible. The money you save can be substantial. Look for lower cost payday loans and No Fax Payday Loans. These faxless payday loans allow you to apply without needing to submit documentation via fax.

R Vigil
Finance Consultant At
Faxless Payday Loans.

Are Interest Rates Up, Up and Away?

Interest rates have been at their lowest levels in over 40 years. U.S. consumers have been able to purchase previously unaffordable homes, cars and other toys. Many have used cheap home equity loans to remodel, take vacations and pay off credit cards. Students have taken advantage of the rock-bottom student loan rates.

But, interest rates look to be headed up. Recently, Alan Greenspan and the Federal Reserve escalated the Fed funds rate from 1% to 1.25%. So, what does that mean to you and me?

The increase in rates is important if you have variable (not fixed) loans. For example, if you have adjustable rate mortgage or home equity lines of credit, the interest rates will probably go up (as well as the payments) in the next few months. Each time the Fed increases the Fed funds rate, it will roll down onto your adjustable rate loans and your payments will go up. The speed of increase and the amount of the increase will depend on what index your loan is based on – check with your lending institution for more information on that.

If you have high credit card debt, the situation may be even more bleak because credit card rates remained high while other rates have been incredibly low. The Fed increases are a good excuse for your credit card company to hike your rates even higher.

So, what can you do if you’re looking at rates and payments going up, up and away?

* Your payment increases may be fairly gradual. Depending on the economy, the Fed will continue to increase rates although they have signaled that the increases are likely to be very gradual. If the economic or political situation changes, they always have the ability to lower rates again. The Fed's rate-setting committee is scheduled to meet again Sept. 21, Nov. 10 and Dec. 14, and they may skip a rate increase at one of those meetings if inflation is subdued.

* Check with your student loan lenders to see about consolidating and locking in rates. Good news: interest rates on savings are also likely to increase! So, if you have CD’s coming due, check with different financial institutions before automatically rolling them over. If you have money stashed in savings accounts, the rates are probably starting to creep up. I highly recommend ING savings for the highest rates around (www.ingdirect.com). They also give great service, have no fees or hidden costs and are FDIC insured. You can also name your accounts at ING to make it easy to identify what you’re saving for.

* If you’ve been thinking about re-financing, there are still some good deals out there and there’s no sense in procrastinating any longer. Contact me for some excellent resources for re-financing.

* What if a new house isn’t in your plans for a couple of years? When rates go up, it often cools off real estate prices and balances out the higher rates. Continue to save money in the highest interest short-term accounts you can find (no stocks or other long-term investments). Rates will probably not take huge leaps in the short term.

* If you have an adjustable rate (home or home equity or car loans), you will see higher payments so call your lender to find out what the new payment is “likely” to be. They’ll probably put all kinds of disclaimers out about not really knowing, but try to get a worst case scenario and then start pretending you really do have that new payment. Put the extra into a special savings account so you’ll have a “slush” fund to cover if you run short one month. At the same time you are building up a cushion for the future, you’ll have a good idea of whether or not you can handle the new payment. If not, now’s the time to start looking at other alternatives like cutting back, increasing income or even refinancing.

Remember, if you refinance your existing term to a new 30 year term, you’ll have lower payments, but you’ll pay a lot more for your house because of the additional interest.

* Call your credit card companies and see if they are willing to lower your rates (not all are). Look for good, permanent credit card interest rates that you can transfer higher rate balances to. For example, if most of your cards are 18% or higher, find a good 12% card or lower and transfer as much as you can to that. Playing the 0% credit card shuffle is a dangerous game and can hurt your credit score.

* Reduce credit card debt now! Stop using your cards and pay more than the minimums. If you pay off one card, take that payment and put it on another card. If you receive a pay increase, put it on the cards. The sooner the cards are paid off, the more flexibility you’ll have!

All in all, we’re quite likely to enjoy reasonable interest rates for some time to come. However, make preparations now and you’ll be able to handle whatever comes your way.

If you need help, I’m the one to call -- 541-387-2995!

Cindy S. Morus (www.phelps-creek.com) is a Certified Financial Recovery Counselor specializing in showing women and their families how to achieve financial well-being and peace of mind. She is also a Certified Credit Report Reviewer and Get Clients NOW!™ licensee. Contact her at 541-387-2995 or cmorus@phelps-creek.com She is also the publisher and editor of "Financial Fitness", an internet gazette dedicated to helping people improve their financial fitness no matter what decisions were made in the past.

Attention Ezine editors/Site owners: Feel free to reprint this article in its entirety in your ezine or website as long as you leave all links in place, do not alter the content and include our resource box as listed above. If you do use the material please send us a note (cmorus@phelps-creek.com) so we can take a look. Thanks.

What Is A Second Mortgage?

A second mortgage is a loan that is secured by the equity in your home. When you obtain a second mortgage loan the lender will place a lien on your house. This lien will be recorded in 2nd position after your primary or 1st mortgage lender's lien, hence the term second mortgage.

A second mortgage is also sometimes referred to as a home equity loan. There is no difference between a home equity loan and a second mortgage. These are just two different terms for the same subject.

A second mortgage can either be a fixed-rate loan or an adjustable-rate credit line. Interest rates and loan program terms will vary from lender to lender so it is important to shop around and compare before committing to any one offer.

Loan proceeds from a second mortgage loan can be used for just about anything. Many consumers take out 2nd mortgage loans to consolidate debt, do home improvements or pay for their kids college education. Whatever you decide to do with your loan proceeds it is important to remember that if you default on your payment you can lose your home so you will want to make sure that you are taking the loan out for a worthwhile purpose.

Another plus of a second mortgage loan is that the interest you pay back on the loan may be tax deductible. Consult your tax advisor regarding your personal situation but in most cases the interest is 100% fully deductible as long as the combined loan to value of your 1st and 2nd mortgage do not exceed the value of your home.

Levetta Rivera is a successful mortgage broker and publisher of the following financial websites: http://www.equityloansource.com and http://www.militaryvaloan.com

125% Equity Home Loans

If you are a homeowner in need of a home equity loan but you have not yet built up any equity in your home, don't despair. A 125 percent equity home loan may be the answer.

A 125 percent equity home loan is a second mortgage loan that allows you to borrow up to 25% more than the value of your home. For example, if your home is worth $100,000 and you owe $100,000 on the mortgage, this loan program would allow you to still borrow up to $25,000.

The 125 percent equity home loan is offered by various online lenders. Each lender has their own qualification and loan term guidelines but generally this is a credit score driven loan program. Credit score driven means that you have to have a certain credit score to qualify for the loan. In addition, your credit score usually determines the maximum loan amount you may qualify for and the maximum cash in hand you may receive. Also, some 125 percent equity home loan lenders may require seasoning on the length of time you have lived in your home. Three months is normally the minimum.

When it comes to a property appraisal, most 125 percent home equity loan lenders do not require you to obtain one. They generally will use the purchase price of your home as the value if you have lived in your residence for 12 months or less. If you have lived in your home over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model (avm) can be used. An avm is a computer generated assessment of your home's value which is based on recent home sales of comparable houses in your neighborhood.

For more information on 125% home equity loans, or to compare rates and programs of 125% home equity loan lenders visit http://www.equityloansource.com

Levetta Rivera is a successful mortgage broker and publisher of the following financial websites: http://www.equityloansource.com and http://www.militaryvaloan.com

No Income Verification Home Equity Loan

A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to document income.

The majority of borrowers with hard to document income are either self-employed or commission based employees. Consumers who fall under these categories may have high income but have a lot of business related deductions that they write off on their taxes. This is good on the one hand as it reduces the taxable income and thus the amount of taxes owed, however, when it comes to getting a home loan it can hurt as most lenders use the average of your last 2 years taxable net income (the amount left after all of your deductions) to determine your income figure for qualifying purposes. This may cause you to have a debt to income ratio problem if you have a high debt load and thus keep you from qualifying for the loan. With a no income verification home equity loan, however, your gross income can be used for qualifying purposes as opposed to the net income.

In order to qualify for a no income verification home equity loan you will, in most cases, need good credit and a high credit score. Expect to pay a higher rate for this type of loan as opposed to a traditional loan in which you have to document your income. Also, even though a no income verification loan does not require you to document your income, some lenders may require that you have a certain dollar value of assets on hand which must be verified. Not all lenders have this requirement though - some lenders offer a program called NINA which stands for "no income no assets" meaning you do not have to document either. Loan guidelines and rates vary from lender to lender so it is a good idea to shop around to increase your chances of getting the best deal available to you.

For more information on no income verification home equity loans, or to compare rates and programs of home equity loan lenders visit http://www.equityloansource.com

Levetta Rivera is a successful mortgage broker and publisher of the following financial websites: http://www.equityloansource.com and http://www.militaryvaloan.com