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September 11th, 2008

Consolidation Loan, Part Six

Posted in Cash & Credit, Finance, House Of Loans

The terms of 401 (k) loans vary widely among companies that offer them, so be sure you understand all the conditions of the loan before you borrow. Then treat this loan as seriously as any otherafter all, this is your retirement security you are borrowing against.

Loans from Relatives

Borrowing money from relatives can be a wonderful solution to your problemor a disaster. You can often borrow money from a relative at an interest rate that’s far lower than what you can get from a bank. The interest rate you offer to pay your relative on the loan will typically be higher than she could earn by parking her money in a bank account or conservative investment, so she will benefit as well. Best of all, you don’t have to pass any credit checks.

If you and a relative do decide to strike a deal, be certain she understands your financial situation. You should be up front about your debt load and, if possible, sign a contract agreeing not only to the terms of the loan, but also to rid yourself of all other debt until the loan is paid. Be businesslike about the loan. If you are not, you are likely to fall into the trap of not taking the obligation seriously and might be tempted to continue to take out other cards and continue to buy on credit.

If your relative generously decides to cancel the loan later, be careful. The IRS considers “forgiveness of a debt” taxable income, and you may have to pay taxes on that amount. Be sure to talk to an accountant.

Brokerage (Margin) Loans

If you hold stocks or bonds, you can borrow against them and use the money either to buy more securities, or for any purpose you choose. Interest rates on margin loans are usually a couple of points above the prime rate. For stocks, you can borrow as much as 50 percent of the market value of the security. That percentage is mandated by law, so if the value of your securities drop, your broker will demand repayment of any amount that would put you over the 50 percent limit.

Say, for example, you have stock worth $10,000 and you borrow against 50 percent of its value, or $5,000. If the value of your stock drops to $2,000, you will have to pay back $4,000 immediately, since $1,000 is the most you can borrow against $2,000 worth of stock. Margin loans are tricky and should really be used only by experienced investors.

June 20th, 2008

Payday Loan and Cash Advance Lenders Online - How To Compare Them

Posted in House Of Loans

When searching for a payday loan company online to get a cash advance through, there are a few factors you will want to compare with each lender to make sure you are getting the best loan for your situation.

Here are a list of 6 factors that will help you in comparing each payday loan lender.

1.What are the fees? Fees online can range from $10 - $30 or more per $100 loaned. There is a lender online that has no fees for your first loan. (To see this lender, click on the link below). Find out before you sign, what the fees are per week, per $100 loaned.

2.How long will it take to get the money deposited into your account? If you are really in a hurry, it could mean all the difference in the world if the cash is not deposited into your account on the next business day, but instead, 2 business days later. There are a few payday loan companies that will wire the money into your bank account within 1 hour from your approval time. Find these details out ahead of time.

3.Are there any hidden fees, like application fees or anything else? Find out if there are any extra fees if you need to extend the loan. Weigh this factor when calculating the cost of getting the loan.

4.How much can you borrow? Most payday loan companies will loan up to $500. Some will loan up to $1000. Then, there are some that will max out at $2-300. If you have already gone through the loan application process and been approved, it could be a real pain to find out that you can’t borrow as much as you need to.

5.What are the minimum income and verification requirements? Compare the requirements for the loan on the website of the payday loan or cash advance loan company. This will save you time when applying. You will then know ahead of time whether or not you are likely to be approved

6.Is it necessary to fax in documents to be approved for the loan? Sometimes it can be more convenient if you don’t have to fax in any documents to prove your income or bank information. Sometimes the cash advance loan company can verify this information by phone instead of having to verify it by fax. Find out how the company will need to verify your income.

To see a list of our recommended payday loan sources, including those with the lowest fees and easiest application processes and those that will deposit into your account within 1 hour of approval, visit: Recommended online
cash advance sources

Carrie Reeder is the owner of http://www.abcloanguide.com. It is an informational website about various types of loans. ABC Loan Guide has articles and the latest finance news posted, along with lists of recommended lenders for different types of loans.

June 1st, 2008

Be Wary of Guaranteeing a Loan

Posted in House Of Loans

You need to be wary of guaranteeing a loan. What would you do if a friend or relative asked you to guarantee a loan? You would probably like to help them by agreeing to guarantee the loan but consider your actions carefully first and make sure you understand what it involves.

You are being asked to guarantee a loan. Think carefully before you do. If the borrower does not pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility.

You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount.

The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record.

Studies of certain types of lenders show that for guaranteed loans that go into default, as many as three out of four guarantors are asked to repay the loan.

If you guarantee a loan and your friend or relative misses a payment, the lender can immediately collect from you without first pursuing the borrower. In addition, the amount you owe may be increased - late charges - if the lender decides to sue to collect. If the lender wins the case, your wages and property may be taken.

Despite the risks, there may be times when you want to guarantee a loan. Your child may need a first loan, or a close friend may need help. Before you guarantee a loan, consider this information:

Be sure you can afford to pay the loan. If you’re asked to pay and can’t, you could be sued or your credit rating could be damaged.

Even if you’re not asked to repay the debt, your liability for the loan may keep you from getting other credit because creditors will consider the guaranteed loan as one of your obligations.

Before you pledge property to secure the loan, such as your car or furniture, make sure you understand the consequences. If the borrower defaults, you could lose these items.

Ask the lender to agree, in writing, to notify you if the borrower misses a payment. That will give you time to deal with the problem or make back payments without having to repay the entire amount immediately.

Make sure you get copies of all important papers, such as the loan contract. The lender is not required to give you these papers; you may have to get copies from the borrower.

You may freely reprint this article provided the author’s biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.