Student Loans

Know Your Loan Options and Assess Your Student Debt When Applying to Graduate School

Loan Options for Graduate Students

Higher education can be funded through a variety of resources, including loans for graduate students. For students who exhibit financial need, Perkins Loans are a viable option. Though debt from Perkins Loans can be excused under some specific situations, this debt must be paid back like most other student loans.

The policies of student loans for graduate students are constantly being amended. Types of repayment and consolidation and interest rates and limits are all changing as the federal budget is altered to affect education. To stay informed about these changes, you can visit the website for the US Department of Education.

Perkins Loans offer low fixed interest rates of only 5%, a 9-month grace period opposed to the average 6-month grace period, and low monthly payments of only $ 40. This type of loan for graduate students allows students to find stable jobs and to become more financially secure after college before they are forced to repay their loans.

The disadvantage of Perkins Loans is the low borrowing limits. Using Perkins Loans, undergraduate students can borrow up to $ 5,500 per year with a maximum borrowing limit of $ 27,500. Graduate students can use Perkins Loans to borrow up to $ 8,000 per year with a maximum borrowing limit of $ 60,000, including any money Perkins loans received as undergraduates. For more information about Federal Perkins Loans, you can visit the website for the US Department of Education.

Though most loans for graduate students must be repaid, some loan options have complete or partial forgiveness. For example, the AmeriCorps program is a common choice for students who are looking for debt forgiveness. This program allows students to work in different locations of the United States. Throughout the year in the program, students can earn up to $ 4,725, which can be applied to paying for education or to paying off debt. Another popular choice for students who are looking for debt forgiveness is the Peace Corps. This program focuses on charity in Third World countries. While students work for Peace Corps, students' loans are deferred, and 15% of the loan is forgiven for each year in the Peace Corps.

Assessing your Student Debt

As the price of higher education has been rapidly increasing, so has the national amount of student debt. Funding student loans has been a recent priority of the government and banks. A law passed in 2007 discouraged private lenders from consolidating student loans, which caused problems for students with debt. Lenders do not want to consolidate debt, but students need to save on interest and to have lower monthly payments. There are now services designed to help students in these situations.

For example, GL Advisor is a financial advisory firm that offers students accurate and free assessments of their student debt. After students provide information about their student loan debt, GL Advisor overviews students' loan histories and examines specific repayment plans and possible qualifications for federal programs that provide debt relief. After using GL Advisor to assess their debt and to create repayment plans, students can choose to keep GL Advisor for a service fee. GL Advisor will help students create financial plans, assess qualifications for federal aid, refinance student loans and organize tax returns.

Once student debt has been accurately assessed, the next step should be to minimize the overall cost of the debt by applying for loan forgiveness or consolidation. Minimizing the overall cost of the student debt can lower monthly payments, allowing students to save more each month. However, the best way to eliminate debt is forgiveness through service or government programs.


Important Points to Consider Before Applying For Mortgage Loan Modifications

The demand for mortgage loan modifications is increasing day by day. This is so as the homeowners are being informed and educated about the loan modification programs by different media. The homeowners and families throughout the country are facing the biggest financial hardships in the past few decades. So in order to improve the economic condition of the country and the people, the present government has worked out a fabulous plan that is home stimulus plan and this is helping people to get back to their feet.

There are many programs under this huge home stimulus plan and everyone who finds himself eligible for the program can take refuge in it. If you find yourself struggling with the non-repayment of the home loan or somehow managing to pay the installments, you can apply for the mortgage modification program. This program will restructure your existing loan and make it affordable for you so that you are able to repay the loan comfortably. There is nothing much to do for the approval of loan modification, you just need to know the facts and the requirements for the approval.

Mortgage loan modifications are rather simple to qualify but require some formalities to be fulfilled so that the application gets approved. In fact the basic requirements are declared and known to all but the lenders are free to add any requirement they prefer in the qualification process of the loan modification plan. The final verdict is also in the hands of the bank or the lender so there is not much that can be clearly said about this loan restructure program. The government has depicted the basic requirements clearly for the eligibility of the people for this loan modification.

Seeing the financial hardship that the borrower is going through, any lender can put stress on knowing the credit history of the borrower in order to qualify him for the modification of his home loan. Once the borrower is qualified he is provided with the restructured terms and conditions of his existing home loan. This restructure is actually done keeping in mind the financial crunch of the borrower and offers reduced monthly installments and/or increased debt tenure as may be the case. The loan is made affordable so that the borrower is able to repay the loan comfortably with the new restructured rate of interest on their existing home mortgage loan.


Calculate Home Loan EMI Before Applying

The huge demand for residential and commercial properties in India has raised a stiff competition amongst the reputed real estate agents and property developers in Indian realty market. All these developers have played a vital role in meeting the emerging needs of the customers by offering latest and better properties at affordable prices. The economic growth of India is one of the major factors for growth in all the sectors of realty including commercial, residential and industrial projects. Since there is good long term capital gain available in the current realty market, you will find numbers of real estate agents with their huge database of properties for purchase, sale, rent in different sections of India. All these have given an awesome gateway to investors and business personnel globally to get towards India properties with the aim of reaping huge profits from the property sector in short span of time.

India, there are many realty segments like delhi properties, mumbai properties, pune, hyderabad, bangalore, jaipur and many more that offer wide range of business and job opportunities that allured the attention of realty investors from all over the world. Bangalore, Noida, Pune, Hyderabad are some of the top rated segments of indian realty where you will find wide range of BPO, telecom, IT, KPO and many other industries that welcome work source from all over the world. Therefore, the rates and demand of the realty sectors in these sections are always remained on the peak. In previous decades, properties in these sectors of India have seen awesome growth in there rates and demand as well. Residential sector like housing sectors, apartments, duplexes, flats, individual bungalows, villas and commercial sectors includes retail shops, multi storeyed commercial buildings, shopping malls, motels, hotels, entertainment zones are the segments Indian properties that have allured the attention of international market.

In you are interested to buy property in India in metropolitan cities then you need to have enough budgets to pay out the high rates of ultra modern realty segments in India. In case you have a less budget and fail to pay property amount then you need to get in touch with home finance companies that offer wide range of home finance schemes and programs that bring with your dream property. In developing countries these home loans companies have played a vital role for middle and low income families by paying their property amount on an attractive rates of interest. In India, you will find huge list of home finance companies including SBI, HDFC, HSBC, IDBI, Birla, BOB, PNB, Life Insurance, ICICI and many more are there in Indian market that offer huge amount of home loans with different interest rates. Before, applying to any of the home loan programs it is very important to go through its relative legal formalities and other needed documents require to apply for the home loans. 123realestates bring you with the complete information about Indian realtors, home flipping, property dealers in India along with interior designers and building constructors.


Applying For A VA Loan – Is It Difficult?

The home mortgage loans guaranteed by the US Department of Veterans Affairs have been a popular way for veterans and active duty service members to afford their first homes for over 70 years. Because the home loans are guaranteed, many lenders are eager to offer these low-cost home loans for veterans. Though not difficult, the application process is somewhat different than the one for conventional loans, and many lending institutions have departments or specially trained personnel to help with the required documentation.


If you are a member of the military on active duty for at least 90 days, you are eligible for a VA guaranteed mortgage loan. Similarly, veterans who have served between 90 and 181 days of continuous service, depending on the time period, are eligible to apply for these loans. National Guard service members are also eligible for a home loan if they are currently serving or have served for six years, have been discharged or on the retired or stand-by list. Under certain circumstances, the spouses of military members may also be eligible for a VA loan.

Certificate of Eligibility

Applicants are required to document their service in the military with a Certificate of Eligibility. The certificate is issued with a number of different types of evidence:

  • A DD Form 214 for veterans that indicates the character of the service and the reason for separation from service
  • For current service members, a current statement of service signed by a commander of the unit, adjutant or personnel office
  • For current National Guard members, a statement of service signed by a commander of the unit, adjutant or personnel office
  • For discharged National Guard members who were never activated, an NGB Form 22, Report of Separation and Record of Service
  • Surviving Spouse not receiving benefits must submit a VA Form 21-534
  • Surviving Spouse receiving benefits must submit a VA Form 26-1817

Additional Requirements

In addition to the Certificate of Eligibility, applicants for a VA guaranteed mortgage loan must provide:

  • Documentation of sufficient income to afford payments on the loan
  • A good credit record – VA lenders set their own minimum credit record requirements for a loan
  • Proof that the property can be occupied – VA loan benefits must go to properties that are suitable for occupation, such as single-family homes, condominiums, townhomes and multi-family residences.
  • Intention to occupy the property – First time home loan applicants must assure their intention to occupy the property.
  • A property appraisal to ensure that the property is valued sufficiently for the loan amount.

Closing the Sale

Applicants are encouraged to compare the loans of a number of lenders to ensure the best terms. After the applicant has been approved for the VA guaranteed mortgage loan, he or she must close on the sale of the property, provide proof of homeowners insurance for the property and pay closing costs. These closing costs are regulated by the VA. The title is then issued and insured by a title insurance company to prevent any other claims on the property.

Although the process may seem daunting to first-time borrowers, lending institutions have created protocols for VA loans that facilitate the application process so that veterans and active duty service members can take advantage of this valuable benefit.


Pre-Approved VA Home Loans: A Brief Guide To Applying For One

Finding an affordable option amongst the wide range of mortgages can be tough these days, especially when the applicant has a low credit rating or a limited income. But there are options out there, and pre-approved VA home loans offer qualifying applicants one of the most cost-effective mortgage options around.

The VA has long been a source of financial help for former members of the military, and their support when it comes to mortgages means some real savings can be enjoyed. But for the home hunter, securing pre-approved mortgagesoffers other advantages too. Not least is greater negotiating leverage and the ability to commit to a purchase on the spot.

But how can someone secure a pre-approved VA home loan? And is the process complicated? Here, we provide a step-by-step guide so nothing is missed when it comes to the real thing.

1. Complete The Necessary Forms

The obvious forms to start with when seeking a pre-approved VA home loan is the loan application form. This will request the usual personal and financial details, but if there are any queries, simply leave the area blank and seek advice from the VA loan officer. It is important that all information is accurate and relevant.

A second necessary form is the 26-1880, which confirms eligibility for a VA home loan. This is a simple form that should take no time at all to fill in. However, it is important if there is to be any chance of securing pre-approved mortgages. This form is not needed when an applicant already has a Certificate of Eligibility.

2. Provide Additional Documentation

As well as the forms above, it will also be necessary to produce some additional documentation relating to your income. These include your W-2 form, and perhaps a pay stub. These will provide clear confirmation of your current income, which is obviously essential when applying for a pre-approved VA home loan.

Other documentation that may be requested can confirm other payments, for example any disability payments or retirement payments from the military. These items care covered in a VA Award Letter and Retirement Statement respectively.

3. Credit History Check

It is unavoidable that the loan officer will want to see your credit history – it is a key condition to securing pre-approved mortgages anyway. The check will take a look at your credit report, where details on past loans and repayment patterns can be seen. If there are any defaults, bankruptcies or even repossessions in your history, then they will be found.

Credit scores of around 620 are considered high enough to make VA home loan approval likely, but anything lower than that is likely to prevent any pre-approval. If the application is rejected, then the loan officer is obliged to explain why.

4. Loan Analysis

The last step in our guide refers to the lender checking the details of the proposed mortgage more closely. Getting pre-approved VA home loansis a nice idea, but it still comes down to whether the mortgage is affordable or not.

The lender will examine the information provided, especially income and any existing debts and determine if the loan is affordable or not. If it is then finally securing pre-approved mortgage funds becomes just a formality.

With approval, the lender will send out a Pre-Approval Letter confirming the sum available, which can be handed to property sellers to confirm the funds are available. There will also be some disclosures which need to be signed and sent back immediately, but they are non-binding.

And remember, pre-approved VA home loans are generally valid for 90 to 120 days, which is plenty of time to find your new home.


Is Applying for VA Loans Difficult?

Since its inception, more than 20 million people have utilized the VA guaranteed home loan program to help them afford a home loan at favorable rates. If you're wondering how to get a VA loan and whether these loans are difficult to acquire, read more about this helpful program for veterans:

The VA Does Not Provide the Home Loans

The Veterans Administration does not provide the funds for home loans. Rather, the loan money is provided by many types of lenders, who participate in the program and know its requirements. If you are looking for a mortgage for a new home, always ask the lender if they participate in the VA guaranteed home loan program. Many institutions have special departments or specially-trained personnel to help apply for these loans. They can ensure that you understand the steps involved in acquiring the loan.

A Certificate of Eligibility Is Required

VA loans require a Certificate of Eligibility that documents your past or current military service. Lenders with trained personnel that work with the VA home loan program can easily acquire this document. However, in some cases, the applicant must fill out a DD form 26-1880 or other form online or by mail to receive the document.

You Must Have A Reasonably Good Credit Record

Lenders generally require applicants for the VA guaranteed home loan program to have a credit score of 620 or above. This requirement is to ensure that you are able to repay the loan and have a record of repaying your debts.

Certain Income Requirements Apply

You will have to provide documentation regarding your income in order to assure the lending body that you can repay the loan. This information can be in the form of W-2s from your place of employment, two years of past income tax forms if you are self-employed, as well as receipts from your military pension or other sources of income.

You Will Pay A One-Time Funding Fee

A one-time funding fee is required to help pay for the VA home loan program. Currently, the funding fee is 2.15 percent if you have a zero down payment. This fee goes down to 1.25 percent if you put a 10 percent down payment on the home. These fees can vary, depending on the type of military service and how often you use your entitlement benefit.

A Down Payment Is Not Always Required

Your military service allows you a certain entitlement toward the amount of the loan. That is, the government will guarantee payment of the loan calculated using the amount of your basic entitlement, which is currently set at $ 36,000. However, a bonus entitlements may also apply that may allow you to get a home loan up to $ 417,000, or more, depending on the area. Generally, you can acquire a loan without a down payment up to this amount.

The Home Must Be Appraised

An appraiser must physically visit the property and determine its market value, based on the structure itself, as well as other homes in the area. The VA provides a list of minimum property requirements that must be included in the appraisal report. These requirements include adequate living quarters; whether it is a residential and not commercial property; electrical and water systems in good working condition and other details. If the property does not appraise at the value of the selling price, the buyer may have to re-negotiate the sale.


6 Home Loans Tips Before Applying

Applying for home loans could be dreadful, particularly on the off chance that you are a first-time home purchaser. There's a significant measure of printed material and indulgent preparing included. Yet at the same time, it is justified regardless of your exertion. This far reaching contract aide will walk you through the way toward securing financing for your home and make you feel that applying for a home loan is not that horrible all things considered.

1. Know about them Lender or Broker?

There are two approaches to apply for a home loan. To start with, you can manage a loan specialist or home loan organization straightforwardly. Second, you can procure a home loan representative who will help you look over an assortment of moneylenders. Most homebuyers think that its less demanding and less expensive to choose a loan specialist, without assistance from the outsider. In addition, with a specific end goal to locate an equipped and solid agent, you should do a really decent research and get references. That is the reason a great many people like to keep it straightforward and manage a bank themself. In a few circumstances, be that as it may, merchants can really work to support you. For instance, if your record of loan repayment is not all that good, an accomplished dealer might be exceptionally useful in shopping and arranging for the most ideal arrangement.

2. Know the True Rates

The publicized rate frequently snatches borrowers' consideration yet it is really not the one that borrowers ought to depend on. The AAPR or "the genuine rate" is a much better guide, as it checks every one of the expenses and charges that will happen over the term of your loan. In spite of the fact that the AAPR is a stage up from the publicized rate, it is still only a quantitative device. Once you've chosen a couple loans in view of their AAPRs, you will at present need to investigate their different elements. Some worldwide think-tanks, for example, CANNEX and AIMS Home Loans can outfit you with some canny data about mortage loans and help you limit down your choices quicker.

3. Know about loans details & terms

When you search for a home loan and read through various home loan terms and conditions, you will go over money related wording that you most likely won't discover somewhere else. It is critical for you to comprehend those home loan terms with the goal that you can secure the most ideal arrangement. Truth be told, numerous money related foundations and land firms offer free homebuying workshops, which can help you comprehend what individuals are discussing in land business. Here are some fundamental home loan terms that you ought to know:

APR – Yearly rate, expected to mirror the yearly cost of acquiring. It is otherwise called the "promoted rate" or "feature rate", that ought to make it less demanding for borrowers to think about moneylenders and loan alternatives.

Closing Costs – Shutting costs incorporate "non-repeating shutting costs" and "prepaid things." Non-repeating shutting expenses are any things to be paid only once as a consequence of purchasing the property or acquiring a loan. Prepaid things are things which repeat after some time, for example, property charges and mortgage holders protection. Normally a moneylender should gauge both the measure of non-repeating shutting costs and prepaid things, then issue them to the borrower inside three days of accepting a home loan application.

Collateral – An insurance is the thing that you use to secure a loan or ensure reimbursement of a loan. In a home loan, the property is the security. The borrower will lose their property if the loan is not reimbursed by assentions of the home loan.

4. Check Your Credit

When you apply for a home loan, your whole record as a consumer will be investigated by your forthcoming moneylender. FICO ratings more than 620 have a decent risk of getting affirmed for a home loan with a decent financing cost. On the off chance that your score is beneath 600, in any case, your application might be denied or you may get affirmed at a much higher loan fee. Whether you have a decent or terrible financial assessment, what you ought to do is check your credit report before your bank does. You can get your credit report from Equifax, Experian and Trans Union. In the event that there are any mistakes, attempt to contact these three organizations and clear them up. This procedure can take a great deal of time, so it is something you ought to do a while before apply for a home loan. Paying down your budgetary commitments, for example, Visa obligation and auto loans, before applying for a home loan is additionally an extraordinary thought.

5. Don't afraid from your bad credit score

Regardless of the possibility that you have an awful financial record, you ought to in any case glance around for the best arrangement. Don't simply expect your lone choice is a high-taken a toll loan. On the off chance that your credit issues were created by unavoidable circumstances, for example, ailment or a brief loss of pay, disclose your circumstance to the loan specialist or intermediary. Ask a few banks what you need to do keeping in mind the end goal to get the least conceivable cost.

6. Verify and clarify all the things

A pre-endorsement letter is extremely useful, yet not as awaiting as you may think. When you locate a home you'd like to purchase, and your offer has been endorsed, you will need to do a reversal to the moneylender and submit archives that confirm your monetary data to get a loan. Your benefits will be assessed. The loan specialist will investigate your work history. You ought to have no less than two years of business history in the same profession. On the off chance that you are new to the work power, advanced education may help you get endorsed. In the event that you don't have a sufficient record as a consumer, you may utilize normal regularly scheduled installments, for example, lease, telephone, or satellite TV to demonstrate the loan specialist that you are a reliable shopper.

PayDay Loans

10 Tips Before Applying For Payday Loans

1. Automate the debt payment – Payday loans are issued to individuals who have a stable source of income. In other words, your application will be approved only if you have a regular income or salary every month. It would be so much simpler if you can just repay the debt with the money you receive next month. However there are some people who are not able to do that. They would spend the money elsewhere and be left with little for the repayment. So visit the bank and automate the debt repayment. The money should go to your creditor as soon as it reaches your bank. You can spend the balance left in your account. In fact most creditors have the automate payments forms with them. Just ask them and they shall be able to provide you the same. If you take a loan from us, you have the option to make the repayment in an automated mode. On your payday the cash will be directly debited from your account and credited to our account automatically. You may forget to pay so this is the safest route to avoid late payments. Some people have cash but forget to pay, so automating the payments is a great way to avoid late fees. In fact you must automate your payments for all your credit cards.

2. Cut your expenses – You are in debt, so the last thing you should do is spend a lot of it. Make this the central objective of your life for the time being at least. So go ahead. Reduce your expenses wherever you can. Make a plan. Go back to the drawing board and see where you can cut the expenses. Get rid of the costly cell phone plan or cable package. Get something simpler. Try to reduce your grocery budget. There is always something you can do without. You can get rid of the debt easier this way, and will also be left with money in your account that you can save every month. This will help you in the long-term.

One of the best ways to stop spending on things that you do not need is to stop watching TV or reduce watching to a large extend. They show all kids of excellent advertisements and we are compelled to buy. Just do not see them and you stop buying products with little or no use. And of course save money.

2. Increase your income – Have you ever thought of trying to earn more money? By doing this you will certainly be able to pay off the debt quickly. A second stream of income may help you avoid taking a loan in the future as well. Contrary to what many believe, earning a second income isn’t really that difficult. For instance, you could sell off all those unwanted things you have on eBay. You will make some quick money to pay off the debt, and will also be able to reduce the clutter at home. You may also start a blog to make some extra cash for the long-term. Or you may find week-end jobs. There are plenty of ways to make some extra bucks. You just need to try.

3. Make small payments – The term of a payday loan is small – you have to repay the money after receiving next month’s pay check. But if you can make some extra cash in the meantime, then you may consider paying off a portion of your debt with it. This will help you keep your burden in check, and will make it that much easier for you to repay later on. Plus, if you keep repaying, then you won’t be wasting the extra money you are making. Find out from your payday lender if you are allowed to make small payments in the middle of the month.

4. Is there a prepayment penalty – Sometimes there is a prepayment penalty if you pay off the debt early. Ask the creditor while you are taking the loan. If you have taken a loan already with the penalty, then calculate how much it would be in money terms compared to the interest you will save if you pay it earlier. This will help you arrive at the right conclusion on whether you should pay off early.

5. Lower the interest rate – Try to negotiate with the lending company if you can. See whether they are willing to reduce the interest rate. Sometimes, a few companies will oblige, because they too want to do business. These agencies might agree if they see that you are serious about trying to repay your debt. It’s always going to be easier for you if you have to pay off the debt at a lower interest.

6. Borrow against life insurance – One advantage of a payday loan is that, you can get the money you need very fast. It can be transferred to your bank account in 24-48 hours. That is perfect in an emergency. But once you have the money, you will have some time in your hand. So you can try other options. For instance, you can borrow against your life insurance and other savings and policies to repay your existing debt. Yes you will be receiving less money later, but that’s a small price to pay for leaking cash at this point in life. Life insurance interest is below the commercial rates, so you will be saving more than you spend.

7. Borrow from your 401(k) – Similar to the point above, you can borrow up to 50% if you participate in a 401(k) retirement plan at work. So see how much money you have in your account and take out a portion of this to repay your debt. Don’t worry. Payday loans are small dollar loans anyway, so you won’t have to take out too much money.

8. Renegotiate the terms – If for some reason you see at the end of the month that you cannot still pay back the loan, then try to renegotiate the terms with the creditor. Convince the lending agency that you remain serious about paying it back, and there will be many who will try their best to help you. Perhaps your fees or interest can be reduced. You never know unless you ask. After all, the payday company too wants to get the money back. Our lenders will co-operate with you if you inform them well in advance that you will repay your loan but you need some time. Our lenders will work with you to find a plan that works best with both you and the lenders. But please inform them at least one week in advance.

10. Get eligible tax deductions – Are you getting all the lucrative and eligible tax deductions? You will be surprised to know that many people don’t get this simply because they don’t know the details. Get professional tax help if you need. This will help you in your long-term financial health. You will have extra money with which you can pay off the debt. In fact, you may not even need the loan

PayDay Loans

Important Things to Keep in Mind Before Applying For a Payday Loan

According to financial experts, payday loans should be taken after a lot of thinking. If you are not sure that you can pay the loan back in full on time, you should not think about applying for this type of loan. But if you have decided to borrow, given below is what you should know.

How payday loans work

Actually, payday loans are issued for short-term and the money is deposited in your bank account. Usually, you don’t need to pay back the loan unless it’s the payday. However, some lenders let the borrowers decide on the repayment method.

On the payday, the lender will deduct the principal plus interest from your bank account. The deduction will take place even if you still have to pay your bills.

Recurring payments

Most of payday lenders ask the borrowers to set a recurring payment. This allows them to deduct the recurring payment from your bank account through your own debit card. So, if your bank account has no credits, you may end up crossing your overdraft limit. As a result, you will have to bear heavy bank charges.

Avoiding the traps

In a scenario, if you fail to repay a loan, the lender may give you another option: a rollover or a deferral, which is simply another loan. In this situation, you may find it a great solution, but it may lead to further problems. The reason is that you will have to payback heavier amounts because of the higher rate of interest. So, make sure you don’t fall for it unless you absolutely have to. It’s better that you look for a better alternative.

The Bad Options

Typically, payday lenders tend to advertise their business for all types of cash flow crises one can imagine. But you should not go for a payday loan if you have to pay off other types of loans, or if you want this loan to buy the stuff you don’t need.

You should go for this type of loan if you have an emergency or you have to meet a very important necessity. For instance, if you are some of your family members fall sick and need immediate medical attention, you can consider this option.

If you’re going to apply for a payday loan

So, after you have considered all your options and you have made your mind to apply for a payday loan, you should think about how you are going to pay it back. Are you going to have some surplus money each month to make payments? Are you going to get some extra income from another source? If you have side business that you know will earn you enough income to make the monthly payments, you are good to go. But if you don’t have any other source of income, you should think twice before applying for a payday loan. You don’t want trouble, after all.


So, these are the questions you should know the answer to before taking this important decision. You should consider all your options before going this route. For instance, you can ask your friend or a relative for money. They may give you some money to meet your needs. One advantage of borrowing from your friend is that your property won’t be taken away by the bank or the lender in case you failed to repay on time. But in case of a payday loan, you may have to face worse consequences.

Hopefully, you will consider these tips prior to applying for a payday loan. After all, you don’t want to get into a greater trouble by becoming a defaulter.

PayDay Loans

7 Things to Consider When Applying for a Payday Loan

If you are going through tough circumstances, payday loans may sound a tempting option to you. But if you are not an experienced person, we suggest that you consider this option after a lot of thinking. Since these loans feature a very high interest rate, they shouldn’t be taken unless you have no other option. Below are 7 tips that may help you make an informed decision.

Financial charges

The amount of loan you will get is a lot lower than what is written on the check. The reason is that finance charges are deducted from the amount, so you will need to write a check plus these charges. Not doing so will result in a higher rate of financial charges that you will have to pay. Most people get into even bigger trouble when they fail to pay the principal amount along with interest. So, make sure you know how much you are getting and how much you will need to pay back down the road.

Paying back

If you don’t have enough funds in your account to pay back the loan, you may try other options. For instance, you may renew the loan amount or consider taking out another payday loan. But keep in mind that this new loan will have its own financial charges and extra fees. And the extra fees are actually incur because of late payment of the amount of loan.

State Regulations

In each state, regulations are different for payday loans. Usually, the term limit is not more than 30 days. The problem is that lenders often issue loans that feature a longer term limit. In this case, you are at the lender’s mercy, which is a situation you may not be willing to go through.

Cash crunches

As said earlier, the purpose of a payday loan is to deal with a temporary financial crisis, and we have to pay back the loan as soon as we are out of the financial trouble to avoid high interest and fees.

So, it is not a good idea to be tempted by the “roll over” trend or you may have to pay a huge sum at the end.

Financial position

Usually, these loans are for borrowers with lower incomes as they can’t afford to borrow from other sources. Here, it is important to keep in mind that lenders don’t usually take into account the financial position of those who are applying for the loan. So, you have to think harder before opting for this option.

Automatic rollover

You need to be aware that there are some loan sites that tend to rollover the loan amount automatically. And then there are sites that have some contractual agreements that state that you, the borrower, do not have any right to file for bankruptcy or file a lawsuit against the lender.


A great characteristic of payday loans is that they are easy to get, meaning the approval process is quite easier than other types of loans. So, most borrowers find them quite tempting, but you should be careful and only opt for this option if you have no other choice left.

You may say that opting for a payday loan is a good idea to deal with a temporary financial crisis, but a hasty decision may get you in a bigger trouble. If you don’t be careful enough, you may end up in a vicious circle of debt. Therefore, it’s better to pay back the loan as soon as you get your hands on some extra cash. Hopefully, keeping these tips in mind, you will take this decision.