Online Flower Shops – Bloom Online India http://bloomonlineindia.com/ Mon, 26 Sep 2022 15:34:14 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bloomonlineindia.com/wp-content/uploads/2021/10/icon-6-120x120.png Online Flower Shops – Bloom Online India http://bloomonlineindia.com/ 32 32 4 times a variable APR makes sense https://bloomonlineindia.com/4-times-a-variable-apr-makes-sense/ Fri, 23 Sep 2022 12:10:52 +0000 https://bloomonlineindia.com/4-times-a-variable-apr-makes-sense/ Image source: Getty Images When it comes to borrowing money, one of the decisions you will be asked to make is whether you want a a variable or fixed rate loan. A variable interest rate is a rate that goes up and down over time. Since floating rates are tied to an underlying benchmark interest […]]]>

Image source: Getty Images

When it comes to borrowing money, one of the decisions you will be asked to make is whether you want a a variable or fixed rate loan. A variable interest rate is a rate that goes up and down over time. Since floating rates are tied to an underlying benchmark interest rate, they mimic what happens with that underlying rate. For example, the variable interest rate increases if the reference rate increases.

Although fixed rate loans are more common, you might be surprised to learn that an adjustable rate loan is best for you in certain situations. Here are four.

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1. You don’t expect to keep a loan for long

Let’s say you’re moving to a new city, but know that you’ll only be there for two or three years. You buy a house and find that the variable interest rate is lower than the fixed rate. The less you wear a variable rate mortgage, the less likely it is that the underlying benchmark will rise and your variable rate will rise. It may therefore be wise to opt for a variable rate when you know that you are not going to keep the loan for long.

Another example would be if you are expecting funds from an annuity, life insurance, or a bonus at work. If you’re borrowing money in the months leading up to that big payday (and plan to pay off the loan with the money), a variable rate can save you money because of the lower interest rate.

2. You think interest rates will go down

Like the weather, interest rates can change from day to day. If you’re borrowing money and everything points to lower interest rates, taking out a variable rate loan means your monthly payment could go down as well. That said, if you’re wrong and the interest rate goes up, you’ll see your payments go up.

3. You use the monthly savings to repay the principal

Imagine you take out a debt consolidation loan for $50,000. The fixed interest rate is 6% and the variable rate starts at 4%. The term of the loan is 10 years. By opting for the variable interest rate, you will save approximately $50. If you plan to use these savings to repay the principal (the original amount you borrow), you’ll not only prepay the loan, but you’ll also save over $1,200 in interest.

The catch is that this plan only works if the variable interest rate doesn’t increase before the loan is paid off. The longer you have a variable interest rate, the higher the rate will increase.

4. Accepting a variable rate is the only way to qualify for the loan

If you make a major purchase, such as buying a house or land, and you are not eligible for fixed rate mortgageyou may qualify for a variable loan with a lower interest rate and monthly payment.

However, if what separates you from a loan is a slightly higher interest rate, you may want to reconsider the purchase, at least for now. The fact that you do not qualify for the fixed rate loan indicates that you may be taking on a larger obligation than you can comfortably afford.

The bottom line is this: A variable rate loan generally only makes sense in specific situations. A fixed rate loan allows you to budget knowing that your loan payments won’t increase over time. If you can get a low enough interest rate on a fixed rate loanit’s almost always the most reliable choice.

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Payday Loan Debt Consolidation | The bank rate https://bloomonlineindia.com/payday-loan-debt-consolidation-the-bank-rate/ Mon, 19 Sep 2022 18:33:50 +0000 https://bloomonlineindia.com/payday-loan-debt-consolidation-the-bank-rate/ Payday loans are usually short-term loans for a small amount, usually around $500, with payment due on the day of your next payday. They are marketed as a useful bridge between paychecks. However, payday loans come with fees that result in very high annual percentage rates, or APRs, which makes them difficult to eliminate. However, […]]]>

Payday loans are usually short-term loans for a small amount, usually around $500, with payment due on the day of your next payday. They are marketed as a useful bridge between paychecks. However, payday loans come with fees that result in very high annual percentage rates, or APRs, which makes them difficult to eliminate.

However, payday loan debt relief is possible. A personal loan consolidation allows you to take out a new loan, usually with a lower interest rate and a fixed monthly payment that you can repay over time.

Why Debt Consolidation for Payday Loans Can Help

If you’ve taken out a payday loan that charges exorbitant fees, the struggle to make the payments can seem overwhelming. This is a particularly difficult type of debt to repay because borrowers can get trapped in a cycle of debt. About 12 million people take out personal loans every yearand more than 80% of these loans roll over into a new loan because the borrower couldn’t pay the bill on time.

However, a debt consolidation loan can be useful because it is easier to manage and has significantly lower borrowing costs. There is a debt consolidation assortment for borrowers with bad credit with APRs capped at 35.99%. A typical two-week payday loan with a fee of $15 per $100 borrowed, for example, equates to an APR of almost 400 percentaccording to the Consumer Financial Protection Bureau.

The drastic increase in interest rates means you could save a fortune by transferring what you owe into a new loan with a much lower interest rate.

How Payday Loan Debt Consolidation Works

With a debt consolidation loan, you will take out a loan with a lower interest rate and use the funds to pay off your high interest debts. Then you will repay the debt consolidation loan over time. Monthly payments are more manageable compared to payday loans. Indeed, the interest rate on a debt consolidation loan should be much lower and you repay the loan over a longer period, usually 12 to 84 months, rather than two weeks.

First, you need to find a lender that offers debt consolidation loans. Some online lenders will do a pre-qualification check, which won’t hurt your credit. They will review your credit reports and estimate the interest rate, loan term and monthly payment you may be eligible for. Before applying, make sure you can afford this payment each month.

Unlike a payday loan, debt consolidation loan payments are reported to the credit bureaus. This means that making payments on time can help improve your credit over time.

Advantages of a personal loan consolidation

If you need help with a payday loan, a consolidation loan can help get your finances back on track. Debt consolidation loans generally offer:

  • Reduced fees: Some personal loans come with an origination fee, usually around 1-5% of the loan amount, but you may be able to find a loan with no upfront fee.
  • Flexible repayment terms: Personal loans offer repayment terms that generally range from 12 to 84 months. Payday loans usually have to be repaid on your next payday, or usually within two to four weeks.
  • Predictable monthly payments: With a personal loan, you will make one monthly payment until you repay the loan. If the interest rate is fixed, your payment usually stays the same for the life of the loan.
  • Credit check required: A debt consolidation lender wants to make sure you can afford the monthly payments before signing up for the loan. This may seem like a downside, but it means you’re less likely to get trapped in a cycle of debt. They will usually check your source of income, check your credit reports, or ask you what your cash reserves are. They may be willing to work with you even if you have a lower credit score. On the other hand, payday lenders usually don’t verify that you can handle the loan.
  • No bearing: Once you have refunded all the money, you are done. Your account is closed and the loan is marked as repaid. You will need to apply for a new loan if you need more money.

Disadvantages of a personal loan consolidation

Payday loan relief probably sounds good. However, you should consider these points before applying for a new personal loan:

  • You can still default on loan repayments. Although you plan to make every payment on time, a job loss or other obstacle could disrupt your finances again. Any missed or late payments could damage your credit score and the loan consolidation lender could send your account to collections. Try to plan for financial emergencies by setting aside as much savings as possible in an emergency fund.
  • You cannot benefit from a low interest rate. Depending on your creditworthiness, personal loan interest rates generally vary between 4 and 36%. Many online lenders are willing to work with people with low credit scores, although your interest rate may be higher. However, they are still lower than payday loan costs, which can have APRs of around 400% or more. You can also find out about alternative payday loans if you are a member of a credit union. These are small, short-term loans with affordable interest rates.

Alternatives to Personal Loan Debt Consolidation

Consider these alternatives if payday loan debt consolidation isn’t right for your situation.

Extend repayment period

In some states, payday lenders are required to extend your repayment period beyond your next paycheck. This can help you because your payments will be lower and you will have more time to raise the money.

Ask your payday lender if this is an option, if it prevents adverse credit reports, and if you will pay a fee.

Enter a debt management plan

Under a debt management plan, you work with a credit counselor to negotiate better loan terms with your creditors. Once you have agreed on a monthly payment, you will send funds to the credit agency every month. In turn, the organization will pay your creditors.

It’s important to work with a reputable credit counseling agency, so research your options before signing up for a plan. Signing up for a DMP won’t directly affect your credit rating, but you’ll likely have to close any accounts included in the plan. This could dramatically increase your credit usage and lower your credit score, making a debt consolidation loan more viable.

Additionally, DMPs come with a monthly fee collected by the credit counseling agency, and you may find that a debt consolidation loan is a much cheaper option to get rid of those pesky debt balances. .

File Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a legal procedure that can help some people pay off some or all of their debt. You will need to follow a strict process and some of your assets may be sold to pay off some of your debt.

This move is usually a last resort as it has major consequences. Your credit score will be damaged and it may be difficult to qualify for credit for a few years after discharge from bankruptcy.

If possible, try to get approved for a debt consolidation loan, even if it comes with higher interest, to minimize the lasting impact of bankruptcy on your credit and overall financial health. Also, consult a lawyer before choosing this option.

At the end of the line

If you’re struggling to clear your payday loan balances, a debt consolidation loan can help. They come with much lower interest rates and you could be approved even with less than perfect credit.

If payday loan debt consolidation doesn’t seem viable, consider alternatives, such as rollovers, DMPs, and Chapter 7 bankruptcy for relief. Just be sure to crunch the numbers to make sure the form of relief you seek makes financial sense.

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Should I take out a personal loan? 3 things to consider https://bloomonlineindia.com/should-i-take-out-a-personal-loan-3-things-to-consider/ Tue, 13 Sep 2022 14:56:39 +0000 https://bloomonlineindia.com/should-i-take-out-a-personal-loan-3-things-to-consider/ The advantages of taking out a personal loan are many. Getty Images As inflation continues to limit consumers’ purchasing power, many people use credit to pay bills and emergencies. But while getting into debt is sometimes the only option, there are ways to limit the amount of interest you end up paying. One of the […]]]>
Personal loan
The advantages of taking out a personal loan are many.

Getty Images


As inflation continues to limit consumers’ purchasing power, many people use credit to pay bills and emergencies. But while getting into debt is sometimes the only option, there are ways to limit the amount of interest you end up paying.

One of the best options is to take a Personal loan. Personal loan interest rates are lower than some other forms of credit. And they are a reliable way to cover certain expenses.

If this sounds like something you could benefit from, you can start the process now.

In this article, we explain what a personal loan is and why you might want to get one.

What is a personal loan?

A personal loan is an unsecured loan, which means there is no collateral behind the loan. You can use a personal loan for several different reasons, such as home improvement projects, emergency expenses, or debt consolidation.

Personal loan amounts range from $2,000 to $100,000, depending on the lender, your credit score, and other factors. Repayment terms range from two to seven years.

3 reasons why you could take out a personal loan

The recent rise in interest rates has had a slight impact on personal loan interest rates. But if you have excellent credit, you may still qualify for a low rate. Read below to understand some of the best reasons to use a personal loan.

May be cheaper than other types of credit

Many borrowers resort to personal loans because they are often cheaper than using credit card. For example, the average credit card APR in 2022 is 16.17%. But if you have good credit, you might qualify for a personal loan with single-digit rates.

Here’s how much you could save using a personal loan. Let’s say you have a balance of $10,000 on a credit card with an APR of 16%. If you take out a personal loan with an interest rate of 7% and a term of five years, you could save $4,719 in total interest over the life of the loan.

Top lenders offer rates as low as 4.99% APR, but you’ll likely need a credit score of 760 or higher to qualify.

Plus, it’s easy to go through the application process. Some loans are even disbursed within days. Get money in a lump sum once in a while, then pay it back monthly.

Can repay other loans

A personal loan can be more flexible than short-term loans like payday loans and title loans. These loans have fast repayment terms, often in a month or less. However, if you opt for a personal loan, you can opt for a much longer repayment term with more manageable monthly payments.

If you have a large credit card balance, paying it off with a personal loan can also improve your credit. When you have a credit card, the credit bureaus calculate how much credit you are currently using. This is called your credit utilization rate, which is 30% of your credit score.

When you have a large balance on a credit card, you may have a high credit utilization rate which could hurt your credit score. However, if you can pay off this balance with a personal loan, you can improve your credit score while paying less total interest.

Can help you consolidate multiple loans

One of the main reasons consumers take out a personal loan is to consolidate several other loans into a single loan. This strategy allows borrowers to simplify their repayment process.

For example, if you had a balance on three different credit cards, you could pay them off with one personal loan. Then you would only have one monthly payment to worry about.

Having fewer monthly payments to manage could help you avoid late fees and additional interest charges. Plus, late payments can hurt your credit score.

This is not an exhaustive list. There are many other benefits to taking out a personal loan, some of which are specific to your personal financial situation. If you’re considering this unique opportunity, it’s best to speak with a lender to determine what you qualify for and how quickly you can get paid.

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If you paid suspended student loans, you could get a refund https://bloomonlineindia.com/if-you-paid-suspended-student-loans-you-could-get-a-refund/ Wed, 07 Sep 2022 11:15:55 +0000 https://bloomonlineindia.com/if-you-paid-suspended-student-loans-you-could-get-a-refund/ You weren’t wrong if it seemed like a responsible adult to refrain from paying student loans during the nearly three-year hiatus. After all, paying off a loan balance while interest is frozen is generally a good thing. But for some borrowers who paid off while politicians debated student loan forgiveness, that bet against the White […]]]>

You weren’t wrong if it seemed like a responsible adult to refrain from paying student loans during the nearly three-year hiatus. After all, paying off a loan balance while interest is frozen is generally a good thing.

But for some borrowers who paid off while politicians debated student loan forgiveness, that bet against the White House might not pay off. For others, their payments can be refunded.

The Biden administration announced in August that it would forgive $10,000 of student debt per borrower on federal loans and $20,000 per borrower for Pell Grant recipients.

The U.S. Department of Education also announced that the forbearance — which has suspended federal student loan interest and payments since March 2020 — is extended through December 31, 2022.

While millions of people struggling with student debt rejoiced, many borrowers who still paid were confused and appalled. Those who have paid off loans or have a few thousand dollars left have unnecessarily reduced a balance that would have now fallen under forgiveness.

However, some of these borrowers are eligible for a refund on installments made since March 2020.

Here’s how to find out if your student loans are eligible for repayment. And some things to consider before you rush out to maximize student loan forgiveness and put money back in your pocket.

Can you get a refund on student loan payments during the break?

Nearly 40 million borrowers whose direct federal loans are part of the U.S. Department of Education administrative forbearance are eligible for a refund of all payments they have made since March 2020.

However, only a tiny percentage of these borrowers chose to continue making payments during the break. This refund has always been available to borrowers but takes on new meaning now that the cancellation of student loans has been announced.

Borrowers can contact their loan servicer to determine their reimbursement eligibility. This process is not automatic. It is the borrower’s responsibility to request a refund.

As borrowers race to maximize their eligibility, services warn that processing payment refunds can take six to nine months.

Who is eligible for reimbursement of student loan repayments?

There’s a lot of buzz but not many details about who is eligible for a refund of student loan payments. Mark Kantrowitz, a student loan expert, talks only about 1.2% of borrowers continued to pay based on U.S. Department of Education data it analyzed.

Borrowers eligible for repayments should be aware of the following criteria.

  • Eligible loans are part of the Federal William D. Ford Direct Lending Program. This includes direct subsidized, unsubsidized, PLUS, and consolidation loans.
  • Only payments made since the start of the forbearance period in March 2020 are eligible.

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Certain types of student loans are not eligible for repayment of payments, mainly because these loans have been guaranteed by private funds. These include private student loans and some Perkins, HEAL and FFELP loans — most student loans prior to 2010 belong to this category.

If your loans were not eligible for payment pausechances are they are not eligible for forgiveness.

These stipulations mean that millions of borrowers are currently not eligible for student loan forgiveness. The Biden administration is working to address this concern.

In the meantime, the FFELP and other borrowers may be eligible for consolidate your loans in the federal direct lending program. Once consolidated, these loans would become eligible for student loan forbearance and cancellation.

How to get a refund on your student loan payments

As you can imagine, you will need a lot of patience to get through the refund process. Long waiting time because federal loan officers Fighting rising call volumes is certainly part of the problem, but there’s also a lot of confusion.

To get a refund, you must call your loan servicer, but first:

  • Do your research. Learn about your loans and potential options.
  • Prepare to defend yourself. You may be asked to explain why you believe you are entitled to a refund and answer any questions.
  • Prepare the necessary information. This includes your social security number and proof of all payments you’ve made since March 2020.

How a Refund Can Maximize Student Loan Forgiveness

If you have repaid your loans during forbearance or your balance is less than $10,000 or $20,000, it may be beneficial to request a refund.

Let’s say you started March 2020 with $7,500 of eligible federal student loan debt and paid off your balance at $5,000 while on forbearance. Requesting a refund means you will get the $2,500 back and that amount will be added to your loan balance.

When the student loan forgiveness occurs, the entire $7,500 would be forgiven, instead of just $5,000. What you do with the $2500 windfall is up to you.

Should you get a refund on your student loan payments?

Now that you know how to get a refund, we have come to a crucial question. You can ask for a refund, but should you?

It’s complicated, but there are a few scenarios where a refund doesn’t make sense.

If your student loan debt remains large even with the forgiveness, those payments should stay where they are. Unless you’re currently experiencing financial hardship, asking for a refund could put you financially (and your credit score) return.

And there are some states — including Alabama, Arkansas, Mississippi and New Jersey — where loan forgiveness can come at a steep price.

“Some states offer tax-exempt status for student loan forgiveness, and some don’t,” says Kantrowitz of The university investor. “This could be an unexpected tax bomb waiting for some Americans.”

Getting a refund on your student loan payments feels like stumbling on a payday, but weigh your decision carefully and proceed with caution. For some borrowers, a refund may simply delay and complicate paying the piper down the road.

This story originally appeared in The Penny Hoarder.

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9 Same Day Personal Loans | fox business https://bloomonlineindia.com/9-same-day-personal-loans-fox-business/ Tue, 23 Aug 2022 19:47:01 +0000 https://bloomonlineindia.com/9-same-day-personal-loans-fox-business/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. If you need cash fast, check out […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

If you need cash fast, check out these 9 lenders that offer same-day personal loans. (Shutterstock)

If you need cash fast, you have plenty of options without taking out a high-interest payday loan.

Some online personal lenders can send your loan funds the same or next business day. To get a personal loan the same dayall you have to do is make sure you qualify and submit an application to get funding fast.

If you need a same day loan, visit Credible for view your prequalified personal loan rates from various lenders, all in one place.

9 Same Day Personal Loans

Same day personal loans are loans that a lender can process and fund the same day you are approved. Many banks, online lenders, and credit unions offer same-day personal loans.

These nine Credible partner lenders offer personal loans with same-day or next-day financing:

Before

Avant offers debt consolidation, installment, emergency and home improvement loans with repayment terms of two to five years.

  • Loan amounts: $2,000 to $35,000
  • Minimum credit score: 550
  • Funding time: Next business day (if approved before 4:30 p.m. central time on a weekday)

Axos Bank

Axos Bank offers personal loans with repayment terms of three to six years and some of the best rates in the industry for borrowers with excellent credit.

  • Amount of the loan: $10,000 to $50,000
  • Minimum credit score: 700
  • Funding time: Next business day

best egg

Best Egg is an online loan marketplace that provides quotes from a large network of secured and unsecured lenders. Its loans have repayment terms of two to five years.

  • Amount of the loan: $2,000 to $50,000
  • Minimum credit score: 600
  • Funding time: 1-3 working days after successful verification

Discover

Discover has personal loans with terms ranging from three to seven years and no origination fees. You can lock a competition interest rate, depending on your credit.

  • Amount of the loan: $2,500 to $35,000
  • Minimum credit score: 660
  • Funding time: Business day following acceptance

LendingPoint

LendingPoint uses technology to improve people’s lending experience, despite their credit score. Its loans have repayment terms of two to six years and are available in all states except Nevada and West Virginia.

  • Amount of the loan: $2,000 to $36,500
  • Minimum credit score: 580
  • Funding time: Next business day

LightStream

LightStream, the online lending division of Truist Bank, offers personal loans of up to $100,000 with repayment terms of two to seven years (12 years for home improvement loans). LightStream also guarantees that you will have the best loan experience or they will pay you $100 cash.

  • Amount of the loan: $5,000 to $100,000
  • Minimum credit score: 660
  • Funding time: Same business day

OneMain Financial

You can use a OneMain Financial personal loan for many purposes, including debt consolidation. Repayment terms vary from two to five years. Its rates are higher than other lenders, but it also accepts lower credit scores.

  • Amount of the loan: $1,500 to $20,000
  • Minimum credit score: None
  • Funding time: Same day if you go to a local branch

Upgrade

Upgrade offers fixed rate personal loans for refinancing credit card debt, consolidation, home improvement and other major purchases. Repayment terms vary from two to six years.

  • Loan amounts: $1,000 to $50,000
  • Minimum credit score: 560
  • Funding time: Within one day after completing the necessary checks

Reached

Upstart has flexible personal loan amounts with no prepayment fees and terms ranging from three to five years. The lender claims that 99% of approved loan applications are funded the next business day.

  • Loan amounts: $1,000 to $50,000
  • Minimum credit score: 580
  • Funding time: One business day

Head to Credible for compare personal loan rates from these and other lenders without affecting your credit score.

How to Apply for a Same Day Loan

Applying for a same day loan is now easier than ever. Follow these steps to apply for a same day loan:

  1. Check your credit score. Start by checking your credit score to see where you stand. Verify that all information on your credit report is accurate and ensure that all of your accounts have up-to-date balances. Depending on where you check your credit score, you may even receive advice on how to raise your score.
  2. Get prequalified. Many lenders allow you to prequalify online by completing a short form that takes less than five minutes. This saves time during the application process and also allows you to view loan offers and rates you may qualify for.
  3. Select a loan offer. Review your loan offers and terms to see what best suits your needs. Consider factors such as interest rate, repayment term, maximum borrowing limit, as well as any limitations on the use of the loan. If you are looking for a same day personal loan, you will also need to confirm how soon you will be able to obtain the funds.
  4. Apply. Once you have selected a loan offer, you submit a formal application. Some lenders allow you to apply entirely online, while others may require you to visit a local branch to complete your application. You will need to include detailed information about your employment, bank details and other debts. You may need to submit additional documents to verify your information, such as pay stubs, bank statements, or proof of residency like your ID card. The lender will also check your credit with a firm credit application, which may temporarily lower your score by a few points.
  5. Receive loan funds. If you are approved for a same day personal loan, the lender will send you a loan agreement to sign. Once you sign up, you can receive your loan funds that day or the next business day depending on the lender, usually by direct deposit to your bank account.

If you’re ready to apply for a loan, Credible makes it quick and easy compare personal loan rates so you can find the one that best suits your needs.

Same Day Loans vs Payday Loans

Although both types of loans offer quick funding, same-day loans are very different from payday loans.

Payday loans

Payday loans are small, short-term loans that you usually have to pay off before your next payday. These loans tend to have higher fees and interest rates that can equate to an annual percentage rate (APR) as high as 400%, according to the Consumer Financial Protection Bureau. This makes them very expensive to manage and you should avoid them if possible.

The payday loan amounts are low since the repayment terms are short. Some states have capped fees and interest rates for payday loans, while others have completely banned this type of loan.

When you apply for a payday loan, you can qualify with a lower credit score and get your funds fast. But you run the risk of not being able to afford to repay the loan given the high fees and interest. Another downside is that the maximum loan amounts are lower than same day personal loans.

Same Day Personal Loans

Same-day personal loans have higher loan amounts, lower interest rates, and more flexible repayment schedules.

You can also shop around with different lenders to ensure you get the best loan terms for your situation. Even if you have bad creditMany lenders specialize in bad loans. Your rate will be higher than someone with good credit, but it will still be much lower than the rate you would get on a payday loan.

Reputable online lenders can release your funds as fast as the same day, so you’ll always get the money you need fast with a flexible repayment schedule.

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What is Payday Loan Consolidation? – Forbes Advisor https://bloomonlineindia.com/what-is-payday-loan-consolidation-forbes-advisor/ Mon, 22 Aug 2022 14:58:59 +0000 https://bloomonlineindia.com/what-is-payday-loan-consolidation-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Payday loans can give you a quick cash boost to keep you going if you’re in dire straits, but you don’t want to rely exclusively on them or you might run into […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Payday loans can give you a quick cash boost to keep you going if you’re in dire straits, but you don’t want to rely exclusively on them or you might run into problems later.

For example, if you’ve taken out a payday loan, you probably know how harmful it can be. The fees are equivalent to APRs as high as 400% APR. That’s more than 10 times higher than the 36% rate cap that consumer advocacy groups define as the upper limit of what’s affordable.

Although payday loans usually last for two weeks, many people turn them into a new loan if they are unable to repay it, creating a debt trap. If you’re in a similar situation, consider payday loan consolidation, which lets you take out debt at a lower cost, like a personal loan, and use it to pay off your higher-interest debt. It can help you save money, pay off debt faster, and build your credit.

How does payday loan consolidation work?

The principle of personal loan consolidation is the same as for any debt consolidation: you take out a new loan, ideally at a lower rate, and you use it to pay off your existing debt. Many debt consolidation lenders automatically pay off your debt once you are approved. If your desired lender does not offer this feature, you will need to repay your payday loan once you receive the funds.

For example, if you borrow $100 and renew it for an entire year, you can expect to pay $350 in finance charges, more than three times what you originally borrowed. Compare that to a personal loan with a 36% interest rate, and the one-year finance charge is only $20 to $330 less than the cost of the payday loan.

How to Consolidate Payday Loans

Follow these steps to consolidate your payday loans:

  1. Account for your payday loans. Many people have multiple payday loans at once. If this is your case, add the balances of all your loans to get a total amount. This is the amount you will need to request, in addition to any origination fees your new lender may charge.
  2. Check your credit. People often choose payday loans because these lenders don’t check your credit. However, your new lender will consider your credit during the application process. Be sure to check your credit score before applying.
  3. Compare the prices. Check your rate with as many lenders as possible. Most lenders offer a prequalification process, which has no impact on your credit and allows you to see what terms you might qualify for when you apply.
  4. Apply for a loan. Choose the lowest loan rate and submit your application online or in person. Your new lender may repay your payday loans automatically, but if they don’t, be sure to submit your payment immediately.
  5. Sign up for automatic payment. The most important part is paying on time or in advance. Signing up for autopay will help you never miss a payment and grow your credit over time.

Can Payday Loan Consolidation Hurt My Credit?

Payday loan consolidation can both damage and improve your score over time. At first, you will likely see a small drop in your credit score. This is normal, as lenders perform a rigorous credit check when you complete a full loan application. The good news is that this drop in credit score is temporary.

If you make late payments, especially if you fail to repay the loan, it will usually have a long-lasting negative impact on your credit score. If you make all your payments on time, however, the opposite is true. You will typically see your credit score increase over time, as your payment history accounts for 35% of your FICO score.

This is the great advantage of using a personal loan to consolidate payday loan debt. You can build up credit so the next time you need to borrow money, you can do it cheaply.

Alternatives to Payday Loan Consolidation

Personal loans are a great way to consolidate your payday loan debt, but it’s not an option for everyone. If that’s not in the cards for you, there are other options, including:

  • Mutual aid. Community groups and your support network may be willing to step in and help you get rid of that monkey on your back. A good resource is 211.org for personalized assistance in finding local options available to you.
  • Credit advice. The National Credit Counseling Foundation also offers affordable or even free personalized assistance to get your finances back on track, whether through budgeting assistance, debt management plans and more.
  • Extended repayment plans. Sixteen states require payday lenders to offer extended payment plans at no cost if you are unable to repay your payday loan in full at the end of the two-week period. But they’re not widely advertised, so most borrowers don’t know they’re available. Instead, they opt for the more expensive option of rolling over the loan into a new two-week payday loan.

Compare personal loan rates from top lenders

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]]> 3 tips to make a debt consolidation loan work for you https://bloomonlineindia.com/3-tips-to-make-a-debt-consolidation-loan-work-for-you/ Mon, 22 Aug 2022 13:15:12 +0000 https://bloomonlineindia.com/3-tips-to-make-a-debt-consolidation-loan-work-for-you/ Links to the breadcrumb Columnists A consolidation loan is not a magic solution for debt. Explore all of your debt relief options first and make an informed decision that will benefit you in the long run. A debt consolidation loan is not a magic solution for debt. For the loan to free you from debt, […]]]>

A consolidation loan is not a magic solution for debt. Explore all of your debt relief options first and make an informed decision that will benefit you in the long run.

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Q: We have been struggling with our debt for a long time. For a while things improve, then something happens and we fall behind again. The last time we maxed out our credit cards was for car repairs and with the cost of living so high right now, we can barely make the minimum payments. One of the credit card companies contacted me the other day and suggested I get a consolidation loan to pay off what we owe. I talked to my bank, and it looks like a loan would solve our money problem. Is it too good to be true? ~ Brad

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A: Debt has a funny way of accumulating over the years. For a while, we can sweep it under the rug and not worry too much about it. But there comes a time when it overflows and we have to deal with it. Debt unfortunately does not resolve itself and does not disappear on its own.

Content of the article

There is a lot of different ways to deal with debt and there is even different types of debt consolidation. The options depend on your overall situation and whether you can afford to make payments or not. Once you’re able to make payments, getting back on track takes time and effort, and you’ll encounter obstacles along the way that will make you wonder if you made the right decision. In the long run, though, you’ll be thankful you dealt with it when you did.

When it comes to a debt consolidation loan There are things you can do with your bank or credit union to make sure the loan helps you get ahead and meet your financial goals.

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Recognize that a loan is only half a solution

There are two key factors to consider when considering solving your debt problem with a consolidation loan. The first is to identify why you got into debt in the first place, and the second is whether the loan will help you pay off what you owe. It only leads to more stress if the loan ends up doubling your debt and leaving you worse off than before you took out the loan.

A debt consolidation loan is not a magic solution for debt. For the loan to free you from debt, you need to think carefully about how you can change your habits and clean up your finances so that you don’t spend more than you earn. This means establishing a realistic budget that you use to guide your spending decisions. Your budget will also take into account setting aside money in savings so that when an emergency expense occurs, you have at least some savings to pay for it. If you need to use the credit to pay the rest, you’ll need to adjust your budget to account for higher debt payments until you’re back on track.

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Dangers of Different Types of Consolidation Loans

Change the way you use credit to avoid future problems

Many Canadians can hardly imagine how they would manage without their credit card. Even those who rarely use them would struggle to shop online or book a hotel room without one. However, if you want to move on and use a consolidation loan to get your finances back on track, you need to be aware of how you use all forms of credit.

For example, if you have a secured line of credit, it is usually not included in a debt consolidation loan. If you continue to use your secured line of credit after obtaining a loan to consolidate your credit card debt, the effectiveness of the loan could turn against you. If you have overdraft protection on your bank account, request that it be blocked or removed if you don’t trust yourself to stay in the black. If you’ve used high-interest payday loans to make ends meet, make sure those debts are paid off with the loan and focus on bringing your expenses in line with your income instead.

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What to do if you’re struggling with bad credit

A typical condition of a consolidation loan for credit card debt is that the credit cards are canceled once they are paid off with the loan proceeds. However, as you make regular loan payments, your credit rating will recover. If you’re a spendthrift and miss the convenience of having a credit card, if you haven’t changed the way you use credit, there’s a chance that the debt problem will start again.

Hidden Dangers of Using a Line of Credit to Consolidate Debt

Understand the non-financial influences on your spending

Money management isn’t just about dollars and cents. It’s as much psychological and emotional as it is mathematical. We didn’t need to consolidate our debt because we couldn’t calculate our budget accurately; financial problems are rarely so simple. In fact, many of our spending decisions are made long before we set foot in a store or log into our favorite retailer’s app.

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When we try to make ends meet on a daily basis, it can be difficult to appreciate the complexity of the decision-making processes that go into managing our money. Our values, the goals we set, the choices we make, the habits we have, the social media we use, the friends we keep, as well as how we use credit, our attitudes towards debt , as well as lifestyle factors and what we don’t all have an impact on our expenses.

Each of these factors gives us the opportunity to make positive choices and changes with our money. Replace thoughtless spending and impulse buying habits with the abandonment of costly attitudes towards credit and debt. Develop strategies to keep your money safe from yourself by following money-savvy social media profiles. Join groups and associate with like-minded friends to help you keep your lifestyle choices in line with your budget.

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Why an Instant Online Payday Loan Won’t Solve Money Problems

The Basics of Using a Consolidation Loan to Get Out of Debt

There is no one-size-fits-all solution to settling your debts. Before following the advice of a creditor, take the time to explore all your options in order to make an informed decision. There are options that consolidate your debts and others that consolidate your payments. With some options you have to borrow more money, with others you restructure your budget. Some options have a more severe impact on your credit rating than others, and there are even options with interest relief to help get you back on track. The right option will help improve your financial skills and provide you and your family with a financially stable future.

Related Reading:

Get free help with debt and money issues

How to break a spending habit

What is debt consolidation and how does it work in Canada?

Scott Hannah is president of the Credit Counseling Society, a non-profit organization. For more information on managing your money or debt, contact Scott by E-mailCheck nomoredebts.org or call 1-888-527-8999.

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What is the loan between individuals? https://bloomonlineindia.com/what-is-the-loan-between-individuals/ Thu, 18 Aug 2022 13:00:39 +0000 https://bloomonlineindia.com/what-is-the-loan-between-individuals/ Peer-to-peer lending is a relatively new form of borrowing and lending that cuts out the middleman. Peer-to-peer business loans can be an attractive option for online borrowers and lenders because they often offer lower interest rates, are more cost-effective, and provide faster loan approvals than traditional lending methods. If you want to learn more about […]]]>

Peer-to-peer lending is a relatively new form of borrowing and lending that cuts out the middleman. Peer-to-peer business loans can be an attractive option for online borrowers and lenders because they often offer lower interest rates, are more cost-effective, and provide faster loan approvals than traditional lending methods. If you want to learn more about this exciting form of borrowing and lending, keep reading!



What are loans between individuals?

A peer-to-peer loan is a way to borrow and lend money without a financial institution. Some may be secured loans, however, these are mostly unsecured personal loans (like payday loans) that are not granted by a financial institution like a bank, but rather through a P2P lending platform. The borrower usually pays an origination fee to the lender for the loan. Where it used to be just a personal loan to an individual, now small businesses are getting involved.

How does a loan between individuals work?

Peer-to-peer lending is a financial transaction in which two people borrow and lend money to each other without the involvement of financial institutions such as banks. Personal loans are the most common type of peer-to-peer loan, although business loans and student loans are also available. One thing to note is that prepayment penalties may apply if you prepay your loan.

How to get started with P2P lending

The Securities and Exchange Commission (SEC) regulates peer-to-peer lending platforms in the United States. If you’re looking to get into P2P lending, keep these five things in mind:

  • Research multiple lenders. Before choosing a lending platform, it is important to compare several options. Consider factors such as interest rates, loan terms and fees.
  • Borrower or lender. If you are a borrower, remember that you will likely need good credit to qualify for a loan. If you’re a lender, you’ll need to decide how much risk you’re willing to take on.
  • Understand the risk. As a lender, there is always the risk that the borrower will not repay the loan. Make sure you fully understand this and the other risks involved before you begin.
  • How much money? Decide how much money you want to borrow or lend. Keep in mind that as the borrower you will be responsible for repaying the loan with interest.
  • Read the fine print. Once you have selected a P2P platform, be sure to read the terms and conditions carefully before you begin.

The best peer-to-peer lenders of 2022

Are you looking for a P2P platform to use for professional or personal use? You’re not alone. The popularity of loans between individuals to obtain a professional or personal loan has grown exponentially in recent years. Loan availability and amounts can vary from state to state, but peer-to-peer lending is definitely worth considering if you need the extra cash. Here is a list of the best P2P lenders of 2022:

1. Thrive

The Prosper The online lending platform offers business and personal loans between $2,000 and $40,000 with interest rates ranging from 7.95% to 35.99%. To be approved for a loan, you must have a credit score of at least 640.

2.Kiva

Kiva is a non-profit P2P platform that offers a loan amount of up to $15,000. It is one of the best peer-to-peer lenders that offers 0% interest rate. There are no minimum credit scores required and no years of cash documents are needed. In addition, no collateral is required.

3.HappyMoney

HappyMoney is a peer-to-peer lender that offers The Payoff Loan for debt consolidation. Personal loans between $5,000 and $40,000 are available and rates start at 5.99% APR. You will repay the loan in monthly instalments. The maximum loan term is five years.

4. MyConstant

MyConstant offers crypto and institutional loans. The amount of a personal loan can reach $50,000 for individuals and $10 million for institutional loans. Terms are one to six months, and the APR is estimated at 6% to 8%. There is no credit score requirement to obtain a loan.

5. Perform

Peer form offers term loans between $4,000 and $25,000 with an APR of 5.99% to 29.99%. These loans have a term of three years, but can be extended to five years for consolidation loans. You will need a credit score of 600 to qualify.

6. Lending Club

loan club will finance loans between $1,000 and $40,000 to consumers and a loan amount between $5,000 and $500,000 to businesses. They do not have competitive interest rates, which range between 10.68% and 35.89%. To qualify for consumer loans, you will need a credit score above 600.

7. Reached

Reached offers loans from $1,000 to $50,000. They approve loans within one business day and require a 620+ credit score.

8. Street shares

Street shares offers loans ranging from $2,000 to $250,000. APR rates range from 8% to 39.9% and the company requires a minimum credit score of 540 to qualify for a loan.

9. Funding Circle

Funding Circle grants loans up to $500,000. The company has an APR of 10.13% to 36.00% and requires a minimum credit score of 660.

The best peer-to-peer lending options in 2022

Let’s take a look at the best peer-to-peer lending options you can take advantage of in 2022:

1. Best P2P Lending App

Prosper is the best P2P global lending application on the market. With Prosper, you will benefit from a reduced rate, pay at your own pace and save money.

2. Best P2P loan for bad credit

Kiva is the best option for anyone looking to get a P2P loan but has bad credit primarily because it requires no minimum score to apply.

3. Best P2P Lending for Cryptocurrency

MyConstant is a great option for those looking for a peer-to-peer lending platform that offers fiat and cryptocurrency lending. This is something you won’t find at traditional financial institutions.

4. Best P2p loan for small business

Since 2010, Funding Circle has lent more than $18 billion to more than 120,000 companies in approximately 700 industries. They are a great option for small businesses.

5. Best P2P loan for credit card debt

HappyMoney is a great platform for peer-to-peer lending, especially for those with low credit scores. Checking your rate on their platform is free and will not affect your credit score.

6. Best P2P Online Lender

Upstart is the best peer-to-peer online lender that offers personal loans and auto refinance. They offer smarter pricing, a simple and transparent process, and no prepayment penalties.

7. Best P2P Lending Option Overall

The best overall loan option will vary depending on your needs. You have to decide what is best for you. Looking for the lowest price? Do you have bad credit and need a loan? You had the idea.

Image: Envato Elements


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Fig Personal Loans Review 2022 https://bloomonlineindia.com/fig-personal-loans-review-2022/ Thu, 11 Aug 2022 13:29:00 +0000 https://bloomonlineindia.com/fig-personal-loans-review-2022/ Insider experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page. The bottom line: Fig is a solid choice for borrowers who […]]]>

Insider experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Fig personal loans

Regular APR

35.99% to 211% APR, depending on your condition

Regular APR

35.99% to 211% APR, depending on your condition

Advantages

  • No credit check
  • Low minimum loan amount
  • No late fees
  • Quick funding

The inconvenients

  • Very high APRs
  • Only available in 8 states
  • Low maximum loan amount
  • Income requirement

More information

  • Loan amount between $50 and $500, up to $1,000 for returning customers with a good payment history
  • Customer service by email or SMS, not available on weekends
  • Loans available to residents of California, Florida, Illinois, Missouri, New Mexico, Ohio, Texas and Utah
  • Need at least three months of direct deposits into your bank account of $1,400 per month or more

Depending on the state you live in, the terms of your loan vary:

Borrowers in certain states seeking larger loans (up to $1,000) may see their limit increased after developing a strong payment history with Fig.

Advantages and disadvantages of personal loans Fig

Who is Fig most for?

Fig is a good option for borrowers who might not qualify for a personal loan elsewhere due to their credit history. Fig primarily bases its lending decisions on your transaction history and income, as shown on your bank account statement. You will need to show approximately three months of direct deposits of $1,400 per month into your account.

However, Fig’s interest rates are closer to payday loan rates than traditional personal loan rates – so be very careful before taking one out. A payday loan is a short-term, high-cost unsecured loan with principal as part of your next paycheque. They can end up costing more than you borrowed and can trap you in a cycle of debt.

Comparison of personal loans Fig

All three lenders market themselves as alternatives to payday loans and offer slightly lower rates than their high-interest counterparts (many payday loans have interest rates around 400%). However, you will still pay a much higher interest rate with these three lenders than you would with a traditional personal lender.

Possible only has one term: two months. Opploans terms range from nine months to 24 months, depending on which state you live in. Fig has terms ranging from one to six months depending on where you live.

None of the three companies check your credit score, so they might be a good option for borrowers who have been turned down by other companies due to a bad credit history.

Compare personal loan rates

Is Fig trustworthy?

Fig Loans is currently not rated by the Better Business Bureau, a non-profit organization focused on consumer protection and trust. The BBB rates companies by evaluating their response to customer complaints, honesty in advertising and openness about business practices. Fig is not rated because the BBB does not have sufficient information to give a rating.

Fig has not been involved in any recent controversy or scandal. Although Fig isn’t rated by the BBB, his clean story may put you at ease about borrowing from the lender. Reach out to friends and family members before doing so to understand their experiences with Fig.

Frequently Asked Questions

Is Fig a legit company?

Yes, Fig is a legit company that offers personal loans to borrowers without checking their credit scores.

How hard is it to get a Fig loan?

It depends on your financial situation. To get a loan, you will need to show about three months of direct deposits of $1,400 per month into your bank account. If you do not meet this condition, you will not be able to obtain a loan.

How fast do you get a Fig loan?

Almost all borrowers get their funding within three business days, and 94% of borrowers receive their funds the next day after submitting their application, according to the FAQ section of Fig.

Can you repay a Fig loan early?

Yes, you can prepay a Fig loan without penalty.

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Should you ever get a payday loan? https://bloomonlineindia.com/should-you-ever-get-a-payday-loan/ Thu, 11 Aug 2022 10:30:51 +0000 https://bloomonlineindia.com/should-you-ever-get-a-payday-loan/ When you’re low on cash between paychecks or have an unexpected financial emergency, a payday loan can be a tempting option to help you make ends meet or access cash quickly. However, these short-term loans, which are usually due on the day of your next payday, are extremely risky. They come with very high interest […]]]>

When you’re low on cash between paychecks or have an unexpected financial emergency, a payday loan can be a tempting option to help you make ends meet or access cash quickly. However, these short-term loans, which are usually due on the day of your next payday, are extremely risky. They come with very high interest rates and other fees. The payday loan interest rates in the United States ranges from 154% to 664%.

Equally troubling, payday loans are often marketed to those who can least afford them, i.e. people who earn less than $40,000 a year. Although this type of loan is marketed as a short-term loan, payday loans can create a cycle of debt that is difficult to break free from.

What is a personal loan?

A payday loan is usually a short-term loan, lasting two to four weeks, that does not require collateral to be obtained. These loans are generally supposed to be repaid in one installment with your next paycheck when you receive Social Security income or a pension payment.

In most cases, payday loans are granted for relatively small amounts, often $500 or less, with the average borrower getting a payday loan of around $375. In some cases, payday loans can be made for larger amounts.

To obtain a payday loan, borrowers are asked to write a personal check for the amount of debt plus finance charges. If the loan is not repaid on time, the lender will deposit the check to recover their funds. Some lenders may request authorization to electronically deduct the funds from your bank account instead of requiring you to provide a personal check.

Payday loans generally do not involve credit checks, and your ability to repay debt while continuing to pay your daily expenses is generally not considered part of the application process.

Who usually takes out a personal loan?

Payday loans are most often sought out by those with ongoing cash flow issues, as opposed to borrowers who find themselves facing a financial emergency. A payday loan study found that 69 percent of borrowers first used a payday loan to cover recurring expenses such as utility bills, rent, mortgages, student loan payments or credit card bills. Only 16% of borrowers use payday loans for unexpected expenses.

These loans are also widely used by people living in neighborhoods and communities that are underserved by traditional banks or who do not have a bank account with a major financial institution. Payday lenders operate stores in 32 states, although a handful of states have recently passed reforms requiring payday lenders to switch from a model in which borrowers must repay the loan in full with their next paycheck. pays to a fairer and less risky installment repayment structure.

What are the risks of personal loans?

Due to the many risks associated with payday loans, they are often viewed as predatory.

For starters, payday loans often come with astronomical interest rates. Those who take out such loans have to pay between $10 and $30 for every $100 borrowed. A typical payday loan with a two-week repayment term and a fee of $15 per $100 equates to an APR of almost 400%.

Many payday lenders also offer rollovers or renewals, which allow you to simply pay the cost of borrowing the money on the loan’s due date and extend the balance owing for a longer period. It can be a slippery slope that has borrowers quickly getting in over their heads with fees and interest piling up. According to recent data from Pew Charitable Trusts, the average borrower finds themselves in debt for five months to fully pay off what was supposed to be a one-time payday loan. In the process, borrowers pay hundreds of dollars more in fees than originally advertised for the loan.

Are payday loans really worth it?

With their high interest rates and fees, a payday loan is rarely a good idea. The fees alone cost Americans $4 billion a year. Because the costs associated with these loans are so high, borrowers often struggle to repay them and take on more debt, so it’s a good idea to carefully consider your options before taking out a payday loan.

However, if you are in dire need or need cash quickly and are confident you can repay the loan with your next paycheck, a payday loan may be a good idea. These loans may also be worth considering if you have no other financial options or if you have no credit and would not qualify for a traditional loan.

Alternatives to payday loans

Before taking on the significant financial risks associated with a payday loan, consider other alternatives that may be less expensive. Some of the options to consider include:

  • Borrowing money from family or friends: Payday loans should be a last resort. If you have family or friends willing to help you, it may be better to borrow money from your relatives than from a predatory lender.
  • Home Equity Loan: Tapping into the equity in your home will give you a much more competitive interest rate than a payday loan. Home equity loans are a popular way to access cash to consolidate debt or pay for other large or unexpected expenses. However, to access the equity in your home, you will need to meet certain requirements, including having a good credit score, a stable income, and a debt-to-equity ratio of 43% or less.
  • Payday advance : Some employers may offer the possibility of taking a salary advance. This implies that the employer grants you a short-term loan which you will repay on your future wages. Typically, the employer sets guidelines for how and when the money should be repaid.
  • Personal loan: For those with good credit, a personal loan can be a safer and more cost-effective borrowing option. Plus, if you need money fast, some online lenders can provide personal loan funds in as little as a day or two.
  • Sell ​​unwanted items: There are various online platforms that allow you to turn all kinds of unwanted items into cash quickly. Some of the better known options include eBay, Facebook Marketplace, Craigslist and OfferUp. If it’s unwanted or used clothes that you want to convert to cash, there are also online resale platforms that specialize in this niche, including ThredUp, Poshmark, and TheRealReal. Many of these marketplaces deposit proceeds from sales directly into your bank account, while others, like OfferUp, allow you to sell locally and receive money directly from buyers.
  • Lateral stampede: Thanks to the proliferation of apps and websites like Thumbtack, TaskRabbit, Rover, Uber, and Lyft, it’s possible to do a few odd jobs in your spare time to quickly rack up a side income. TaskRabbit, for example, allows tasks to do everything from assembling furniture for extra cash to home delivery, gardening, and mounting TVs. Rover is a pet sitting and walking network where animal lovers can offer services.

At the end of the line

With high interest rates and tight repayment terms, payday loans are rarely the best choice when you need cash. Often, these types of loans trap borrowers in an inescapable cycle of debt.

Before resorting to a personal loan, consider the many alternatives. Borrowing money from family or friends, opening a home loan, or taking out a personal loan are far less risky options. And if you’re not in a rush for the money, there are even more options, including selling items you no longer want or taking on a side job to earn the extra cash you need.

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