3 Ways to Ensure Debt Consolidation Loans are Right for You

Posted on May 19, 2013 by admin — No Comments ↓

Is a debt consolidation loan right for me?

That’s the question on the lips of many consumers who may have found themselves in debt recently.

There are many great resources online which offer information and guidance on such topics, including free forums full of financial advice experts.

The trouble is, a lot of the information available online simply isn’t very good. In fact, it could be classed as down-right unintelligible.

Let us help you answer that big question then.

Whether a debt consolidation loan is right for you will likely come down to your personal circumstances, much the same with all types of loans. A debt consolidation loan is different to a regular loan as this type of loan is taken out to bring all existing debt together to create one single debt.

The major upside to a debt consolidation loan is that there will be just one repayment per month versus several. This will reduce stress and, in cases, your total repayment amount due to a lower interest rate.

If you are considering a debt consolidation loan, here are 3 ways to figure out whether one is right for you.

1. Is a debt consolidation loan within your budget?

The main reason for taking out a debt consolidation loan is because you may be finding it difficult to keep up with current repayments on your debt.

A debt consolidation loan will combine all of your existing debt in to one debt. This means that whilst your repayments will be made easier, you will still be paying back the total amount owed per month – or slightly less – depending on your consolidation plan.

We recommend working out what your monthly budget per month is before taking a debt consolidation loan. This will for the most part erase any doubts you may have.

2. If your circumstances changed for the worse, could you still repay?

Setting up a consolidation loan means setting up a new contract with a lender. Whilst debt consolidation loans and their lenders have your best interests at heart, if your circumstances changed, you will still have to repay the loan.

A good way to find out whether you could repay your loan if your circumstances changed for the worse is to – with your budget at hand – work out how long it may take you to find another source of income, how long you can survive on savings, and other ways you could make the money to repay.

Having a contingency plan for such events is always recommended.

3. Shop around before deciding

It is always best to get a basic overview of the financial products / services available to you for debt management. Debt consolidation loans are just one piece of a huge debt puzzle, and other services to check out include fast-track voluntary arrangements if you are already bankrupt and debt relief orders if you simply have no way of paying off your existing debt.

How To Save Money On The Holiday Of Your Dreams

Posted on April 16, 2013 by admin — No Comments ↓

Given the hectic pace of life we have to ensure these days, it’s little wonder that the time way have away from the stresses of everyday life on holiday are all the more precious to us.

Getting away from it all, however, is not a cheap option, regardless of your choice of destination. The last thing you want is to end up creating more stress by stretching yourself financially to go on a holiday you cannot really afford. So with this in mind we have come up with a few simple tips to help you save money so you can enjoy your holiday to the max:

Check our currency exchange rates

Don’t be tempted to exchange your currency at the first bureau d’exchange that you come across. You will be surprised at the difference in exchange rates offered by different companies. You may find for, example, that you are able to arrange a deal with no commission. If so, just check that the bank are not making up for lost commission by offering a less than generous exchange rate. One further word of advice when it comes to foreign exchange – organise this in good time before you go away and on no account leave it till you gt to the airport, unless you want to find yourself getting the poorest available rate of exchange!

Book your holiday off-season

Holiday prices, like the price of so many goods and services, are driven by supply and demand and that means that prices during peak periods are much higher than during off season. For example, if you book a holiday during the traditional school holidays you can expect to pay more for your flights and accommodation,than if you went away at a different time of year. The other advantage of going away off-season is that you tend to find that resorts are quieter, meaning there’s lots more room in hotel and restaurants, as well as on the beaches.

Create a holiday budget

When you are away enjoying yourself there can be a real temptation to overspend and then you are left to regret this at length on your return. Avoid overspending by creating a budget and sticking to it. Normally we would recommend discarding your credit cards when trying to stick to a budget, though we would not advise doing this when you are away. Instead keep them for an emergency.

Go for a self catered option

If you want to avoid expensive hotel prices for meals and drinks, then self catering is a good choice. There are plenty of options out there, from luxury flats, rural properties or even a self-contained villa with its own pool and amenities. Self catering need not be a budget option, but it just gives you a greater degree of control over how much you spend. For example rather than paying through the nose for that bottle of wine with your lunch at your hotel or at a fancy restaurant, you can pick up a good quality bottle of wine at the supermarket and have it with the lunch you prepared for a fraction of the price at your holiday home-from-home.

Payday Loans: The Essential Facts

Posted on April 12, 2013 by admin — No Comments ↓

If you going through a difficult time financially, perhaps confronted with bills you simply do not have the funds at hand to pay, a payday loan is one way of helping to get through this time of strife.However, before you jump in, it’s a good idea to ensure that you let yourself know exactly what applying for a payday loan entails, so that you can make an educated decision on whether such a loan is the right choice for you.

So what exactly are payday loans?

A payday loan is a loan which is designed to tide you over when funds are short and you are waiting to be paid at the end of the month. By their very nature payday loans are designed to be used only in the short term – ideally for no more than a month. Most payday loans can be obtained online. There are a large number of loan providers who offer quick and simple online applications.

Although they are intended for short term use, many payday loan lenders will allow you to defer payment if you end up not being in a position to pay the loan back in full on the scheduled date.This course of action should only be used as a last resort though, because if you delay repayment in this manner the charges and interest can begin to mount up, often causing borrowers difficulty.

How much does a payday loan cost?

There is no avoiding the fact that payday loans are one of the most expensive forms of borrowing. Interest rates are considerably in excess of those charged on personal loans or secured loans, often running to an annual percentage rate in excess of 1000%

That is why it is important to use them only for short term needs. Before applying you must ask yourself honestly whether you will be in a position to pay off the loan at the end of the month. If the answer is no, you should avoid payday loans and see if there are any other less costly ways of coming up with the funds you need.

Criticism of payday loans

Payday loans are quick and convenient and for those who have no problem repaying them on time, they offer an excellent budgeting tool. But for people who end up getting into difficulties, they can cause even greater financial problems and that is the reason they tend to be so controversial. Many thousands of people who have borrowed money by way of a payday loan are unable to repay it on time and once the interest and charges start to mount up, can find themselves deep in a financial hole. Citizens Advice and many debt counsellers and charities working with families are highly critical of the tactics employed by some payday loan lenders. As a result, the OFT has begun a crackdown on the activities of some of these firms in order to weed out the less reponsible lenders

Conclusion

If you use payday loans in the manner they are intended, then there is no doubt they offer a quick and convenient way to borrow a relatively small amount of money with the minumium of fuss. However, before you consider applying for a payday loan make sure you have checked out the other alternatives, and whatever you do, make every effort to pay the loan off on the scheduled date.If you decide a payday loan is for you, choose a reponsible lender such as Blue Sky Loans, keep an eye on the repayment date and everything should work out fine.