Tag Archive: unsecured loans for bad credit

Tips for Reducing Consumer Credit Card Debt

Do you lay awake at night stressed out about how to pay off your credit card bills? Mounting credit card debt can be a financial noose. Unless the charges were a result of emergency medical expenses, chances are it was accumulated over a period of time. The only way to pay off the credit card debt is to set a goal and devise a fully executable plan. Follow these recommendations from the financial experts to develop your plan and set it in motion. At the very outset, you must commit to not putting any additional charges on your credit card.

The first step is to create a spreadsheet listing all of your credit cards, balances and minimum payments. Total the numbers on this spreadsheet. Do not include vehicle loans, mortgages or student loans. Develop a second spread sheet that lists all of your monthly fixed costs. This should include rent or mortgage payments, taxes, insurance, communications, utilities and car or student loans. Total this list of fixed costs. Determine your monthly net, take home, pay. Subtract your fixed costs from your monthly take home pay and the remaining balance is your discretionary spending limit. Food, gas and expenses all are paid from these discretionary spending. The key to paying off credit card loans is to redirect as much discretionary spending as possible to paying off the balances.

An additional option is to secure a part time job and direct all of the earnings towards debt reduction. This will allow you to pay off the balances more quickly and reduce the amount of interest paid. Set a date when you would realistically like to have your debt paid off. Determine the number of months between now and the goal date. Divide this number by your total outstanding credit card debt. The resulting sum is the amount of discretionary spending that needs to be directed towards debt reduction each month. That expensive morning coffee and daily lunch with coworkers can add up to over $3000 annually. Achieving your goal will require self-discipline and a degree of sacrifice. This short term pain will be worth paying off your balances and becoming debt free. Postpone large purchases and take advantage of the deals offered by Groupon coupons to get great rates from CheapOAir when travelling. Best of luck to you on reaching your goal to become debt free.

The Truth about Interest Rates for Term Loans

PRIVATE LOAN WITH LOW INTEREST: When you’re searching for a cheap loan, few things will matter more than the interest rate you’ll have to pay. Apart from the amount you’re borrowing, the interest rate will have the single ideal impact how much you eventually will conclude having to pay off.

Interest Rates vs. Annual Ratio Rates

Interest is simply a percentage of the loan that is costed for borrowing money. The figure is important to know so you can compare the price between different lenders. To make the contrast easier, lenders must show you how that interest rate will affect your payments over the course of a private loan with low interest.

The expense of Small Business Loans

Knowing the APR is especially important as it pertains to small business loans. Major Banks are often hesitant to make loans to smaller businesses or the ones that don’t have the collateral or a successful track record. It has given rise to many categories of choice lenders, which can be places to get money from when the bank says “no”. And that’s where the APR can get especially difficult.

The Confusing World of Annual Percentage Rates

So, how do you decide where to turn? It would be easy if things were as straightforward as assessing the APR in one lender to another, but regrettably in the microfinance world, things aren’t always as they seem to be. In fact, understanding the “true” interest rate you’re being billed is one of the very most difficult but most important things you can do when applying for a private loan with low interest.

First, keep in mind there’s a difference between the interest rate you’re being incurred on financing and the annual ratio rate.  Again, the interest rate is simply the amount you’re being incurred to borrow money, expressed as a percentage.

Other alternative lenders work the same way. You may be quoted what appears to be a very reasonable and attractive rate, but when you dig a little deeper, things are not necessarily what they seem.

Important APR Items to Keep In Mind

Below are a few questions you need to ask and examples of what to watch out for:

  • The length of time is the word of the loan?
  • How is the interest calculated?
  • How often are obligations due?
  • Do you want to receive the complete loan amount?
  • How many other fees are participating?

It is vitally important to keep in mind that these fees usually do not arrive in the interest that attracts your eye and could look so attractive when you see an advertising online.

One great tool to figure out your APR is this easy-to-use calculator. Just plug in the private loan with low interest amount, interest, origination or application cost, loan term, and monthly service charge, and it’ll tell you how much you’ll actually conclude paying for the money you borrow. You’ll find out what your payment will be, what the full total repayment will be, how much the funding will cost you, and this all-important APR.