Category: loan

Payday The American Dream or Nightmare

The American dream is one of the most popular dreams in our country, and many people aspire to live it someday. Unfortunately, for some unlucky individuals, their dreams have …

The American dream is one of the most popular dreams in our country, and many people aspire to live it someday. Unfortunately, for some unlucky individuals, their dreams have turned into nightmares. The nightmare that many people face when they are faced with financial difficulty is getting the best paydayloan. They have become a rule rather than an exception, as millions upon millions of Americans depend on them for short-term finances every month. In fact, about 50 percent of US residents apply for a payday or title lender at least once a year. That’s right, more than half of all Americans who need money to meet immediate needs turn to these lenders. But why? What makes these best payday loans different from other types of loans we take out from banks? And what can you do to make sure you’re not among those who get stuck in this situation? 

Types of Payday Loans 

To understand how best payday loans work, we first must look at the different kinds of loans available in the market today. There are three main types of payday loans: installment loans, signature loans and paycheck advances. All three are designed to provide short-term cash to a borrower. However, there are some key differences between each type of loan, which could affect your decision on which option is best for your specific situation. To determine which kind of loan is best for you, here are some things to consider: 

  • How much time will you need the funds? Will you be able to pay back the loan within the timeframe set by the lender? If so, then installment loans may be a good choice for you. If not, then you might want to consider a signature loan. 
  • How much money are you borrowing? If you plan to borrow less than $500, then installment loans are probably the best choice for you. If you plan to borrow over $500, then a signature loan would be better suited. 
  • Do you have any credit problems? If you’ve had bad credit in the past, then a payday loan is probably not for you. You should instead try to fix your credit before applying for a loan. 
  • Are you comfortable using a third party? If you feel uncomfortable giving personal information to a stranger, then you should avoid signing up for a payday loan. Signature loans work best if you don’t mind sharing a bit of information about yourself. 

What Is A Payday Loan? 

A payday loan is a small dollar loan that allows you to borrow up to $1,000 in one lump sum. It is usually paid back in installments over 30 days (or less). The interest rates on these loans typically range from 400% to 675%. Once you repay the principal amount, you receive your next paycheck. The repayment can be done through direct deposit or paper check and it is normally due within 15 days of receiving the paycheck. 

Why People Get Into Debt With These Loans 

Although payday loans are used by millions of Americans every year, they are still very controversial. Many politicians believe that they encourage risky behavior and lead to long-term debt, but studies indicate otherwise. For example, researchers found that the borrowers were actually making payments on average twice faster than those who took out a traditional loan. This is because payday loans require no collateral and offer fast approval times. Moreover, they allow you to borrow only what is needed, which reduces stress. 

When taken responsibly, however, a payday loan can help many people. For instance, someone facing an unexpected car repair or medical emergency can use a payday loan to cover expenses until the repairs or treatment is complete. Another common reason for taking out payday loans is to cover everyday living costs while waiting for a job. These loans also can prevent you from having to cut back on food, gas, rent, utilities, etc., which often happens during hard economic times. 

How to Avoid Getting Stuck With a Payday Loan 

If you decide that applying for a payday loan is right for you, here are some tips to keep in mind to ensure you won’t end up in debt. First, remember that you’ll need to find a reputable company that offers quick approval and competitive interest rates. Don’t give out too much personal info to the company representatives. Also, make sure they ask for a copy of your last two pay stubs and your driver’s license, and verify your employment status. 

Next, don’t fall into the trap of thinking that you need a payday loan just because you have a low credit score. While the credit scores of most payday loan applicants are very low, there is no evidence that payday lending leads to lower credit scores. In fact, several studies show that people who take out payday loans tend to improve their credit scores after taking out the loan. 

Finally, never borrow more than you can afford to pay back. Always pay off the loan as soon as possible. Not doing so means you’ll continue to accrue interest charges, which could add up to thousands of dollars in additional fees. 

Things to keep in mind 

There are certain harsh decisions made during a payday by Americans like applying for huge loans with high rates of interest and giving them valuable information like all bank accounts all houses cars and properties and industries even in their names which when they couldn’t pay and land in trouble which is no short of a nightmare to lose everything suddenly.


There are plenty of reasons why Americans turn to payday loans every day. Unfortunately, payday loans aren’t always the answer. Instead, think carefully before applying for one, and always follow the rules when taking out a loan. Remember that payday loans are meant to be temporary solutions to short-term financial emergencies. Before using one, you should have a clear idea of how you’re going to pay it back and how much money you’ll need to borrow. If you do choose to take out a payday loan, make sure you understand exactly what you’re agreeing to. 

Tax Implications For Family Loans – Know About Tax Implications

Family loans are still treated as loans when it comes to filing taxes. This can be confusing for an individual who thinks a loan from mom or dad is …

Family loans are still treated as loans when it comes to filing taxes. This can be confusing for an individual who thinks a loan from mom or dad is not of concern to the IRS. However, the IRS is very aware of the way loans and gifts between family members can be used to avoid taxes. As a result, these loans and gifts are subject to explicit tax rules that must be followed.

When you understand what is payday loan consolidation, you will get to know about the tax implication. The consolidation of the debt is great for the right tax implication. You and your family members will get the right consolidation of the loan.

You Must Charge Interest

If you do not charge interest on a loan to a family member, it is considered a gift. You, the donor, are responsible for paying a gift tax in this case. Further, the annual amount you can gift is limited. As a result, if you are extending a loan not a gift, it is wise to charge interest equal to or exceeding the applicable federal rate (AFR). You can find the AFR on the IRS website, and the exact AFR in any situation will depend on the length of the loan; short term loans last three years or less, mid-term loans last between three and nine years, and long term loans last more than nine years. The applicable rate will depend on the length of the loan because it is set based on Treasury bond rates.

The Receiver May Deduct Interest

While the individual receiving a loan must pay interest, they may be able to deduct that amount from federal income taxes. The amount the receiver can deduct depends on how the loan is used. For example, if the loan is used to repay other debts, the deductible amount is equal to non-deductible personal interest on the other loan. If the loan is used to build, improve or otherwise fund a business, the interest is a deductible business expense. If the loan is used to purchase an investment asset, the interest rules applying to that particular investment must be followed. Finally, if the loan serves as a mortgage, the individual can deduct the interest just like mortgage interest.


There are a few exceptions to the IRS family loan rules. Most importantly, the IRS does not regulate loans of $10,000 or less, as long as the loan is not used to generate income in any way. This can be a tricky rule to follow. For example, if you loan your son or daughter money to purchase a car, you may think there is no investment income to report. However, if the car is sold in the future, and the proceeds are used to purchase stock, the loan has generated income for your son or daughter. As a result, it would be against IRS regulations not to report the loan. The borrower would have an initial cost basis on the car loan that would transfer over to the investment in stock. When you are unsure whether the $10,000 exception applies, report the loan to your tax adviser. A Certified Public Accountant will be able to inform you of the nuances of the family gift laws.

Debt Consolidation Pros Cons – What Are The Advantages And Disadvantages?

This excellent summary was written for US consumers. In Australia, Home Loan interest is non-tax deductible. Other than this the information is completely relevant. You are swimming in debt. …

This excellent summary was written for US consumers. In Australia, Home Loan interest is non-tax deductible. Other than this the information is completely relevant. You are swimming in debt. You have 4 credit cards maxed out, a car loan, a consumer loan, and a house payment. Simply making the minimum payments is causing your distress and certainly not getting you out of debt. What should you do? Some people feel that debt consolidation loans are the best option. A debt consolidation loans is one loan which pays off many other loans or lines of credit. Iím sure youíve seen the advertisements of smiling people who have chosen to take a consolidation loan. They seem to have had the weight of the world lifted off their shoulders. But are debt consolidation loans a good deal? Letís explore the pros and cons of this type of debt solution.

You should study the advantages and disadvantages of Title Loans to get the loan. The arrangement of the finance for the purchasing of the car is there. The dealing with the best site will offer the best results to the individuals. The solutions for the repayment are the best one at the site.

Pros 1. One payment versus many payments: The average citizen of the USA pays 11 different creditors every month. Making one single payment is much easier than figuring out who should get paid how much and when. This makes managing your finances much easier. 2. Reduced interest rates: Since the most common type of debt consolidation loan is the home equity loan, also called a second mortgage, the interest rates will be lower than most consumer debt interest rates. Your mortgage is a secured debt. This means that they have something they can take from you if you do not make your payment. Credit cards are unsecured loans. They have nothing except your word and your history. Since this is the case, unsecured loans typically have higher interest rates. 3. Lower monthly payments: Since the interest rate is lower and because you have one payment vs many, the amount you have to pay per month is typically decreased significantly. 4. Only one creditor: With a consolidated loan, you only have one creditor to deal with. If there are any problems or issues, you will only have to make one call instead of several. Once again, this simply makes controlling your finances much easier. 5. Tax Breaks: Interest paid to a credit card is money down the drain. Interest paid to a mortgage can be used as a tax write-off. Sounds great, doesnít it? Before you run out and get a loan, letís look at the other side of the picture Ė the cons.

Cons 1. Easy to get into further debt: With an easier load to bear and more money left over at the end of the month, it might be easy to start using your credit cards again or continuing spending habits that got you into such credit card debt in the first place. 2. Longer time to pay off: Most mortgages are the 10 to 30 year variety. This means that rather than spend a couple of years getting out of credit card debt, you will be spending the length of your mortgage getting out of debt. 3. Spend more over the long haul: Even though the interest rate is less, if you take the loan out over a 30 year period, you may end up spending more than you would have if you had kept each individual loan. 4. You can lose everything: Consolidation loans are secured loans. If you didnít pay an unsecured credit card loan, it would give you a bad rating but your home would still be secure. If you do not pay a secured loan, they will take away whatever secured the loan. In most cases, this is your home. As you can see, consolidated loans are not for everyone. Before you make a decision, you must realistically look at the pros and cons to determine if this is the right decision for you. About The Author Wesley Atkins is the owner of which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again.

Buying A Personal Conveyance With Auto Credit Loan Services

It is tough for high risk customers to get qualified for auto credit loan Services. With an unsound credit score, they receive rejections in matters of borrowing money to …

It is tough for high risk customers to get qualified for auto credit loan Services. With an unsound credit score, they receive rejections in matters of borrowing money to buy a new vehicle. In such circumstances, it would be right to opt for legitimate auto credit loans. This would open ways to buy a new car in the least of trouble. Now, one can claim to be an owner of a dream car with less financial stringency. If one does not have a sufficient credit score, he cannot be denied of suitable transportation. With the best provision of Los Angeles Auto Loan, the consumer can attempt to make his dream come true.

Do not get bogged down by a poor credit score. One still have a chance of owning a personal SUV. There are plausible auto financers read with auto credit loan Services. These people do not have much time to listen to reasons for having an unfavorable credit history. They lend money because one needs an amount to buy a first or a second hand car. Such loans help consumers avoid rejections. However, auto loan services come with a high rate of interest. Thus, it is entirely up to the consumer whether he would buy a vehicle with an auto credit score or look for a favorable alternative.

Apart from consumers with poor or incorrect credit score for the Jamaica Loans, auto credit loan Services helps or reaches out to pupils who have just left college, and on their way to make careers. However, for an instant approval of the loans, one needs to maintain a favorable credit rating. There is no room to be casual with credit reputation. Before one sits to finalize the amount, it is always best to shop around to make an idea regarding the best offered price.

When choosing from auto credit loan Services, it is significant to bargain with the financer and save an amount of money. One needs to compare the rate of auto loan offered and settle for the best lending amount. When making comparisons or at the time of making Los Angeles Auto Loan offers, the consumer needs to collect relevant data for the purpose. Online one can get hold of good financers and deliver them the required quotes. It is best to have an interactive session with the lenders to make an idea regarding their lending guidelines and procedures.

One needs to accept auto credit loan Services in written. This turns the loan to documentation. The contract should bear the signs of both the lender and the borrower. After signing of the settled amount, there is no scope for the financer to charge any extra or hidden cost during the course of the loan getting settled. The auto loan services received can help in enhancing resale value of the vehicle. The rate of interest for such loan types is always high. Such financial arrangements are solely meant for borrowers who do not have a penny left for rainy days. They are mostly individuals with poor credit scores. Thus, an auto loan is a relief for them.

Four types of loan Unsecured Personal Loans. Unsecured personal loans are offered without any collateralSecured Personal Loans. Secured personal loans are backed by collateral. Fixed-Rate Loans. Variable-Rate Loans. With a poor credit score- you could get a loan through the credit unions, family and friends, as well as finding a co-signer.

Let’s discuss the meaning of secured and unsecured loans

Secured loans means when the person gets the loan on security. At the time of borrowing money from the bank the person needs to give their assets documents to …

Secured loans means when the person gets the loan on security. At the time of borrowing money from the bank the person needs to give their assets documents to the bank. It works like a guarantee for the bank that the person will make the payment on time. If the person fails to pay the loan amount on time then the bank four features their property or gold whatever think they have kept as collateral security. There are different types of loans & credit so the person needs to keep security amount accordingly. Next comes the unsecured loans which mean that when the bank issues loan without keeping any security papers. \

A detailed description about unsecured loans

The best part about unsecured loans is that the person needs not to give any property document to the bank. The interest-rate of unsecured loans is higher than secured loan. If they don’t want to give any security amount to the bank then for them and secured loans are best. It is the simple procedure as the receiver only needs to sign the document. 

Two important factors which affects unsecured loans

Time factor

The duration of unsecured loans is shorter than the other category of loan. They are usually granted for several months because the financial institution does not ask for any security. The maximum period of unsecured loan is up to 5 years. But when we talk about secured loans then the person can use the loan for more than 30 years. The category of loan depends upon the time factor like suppose if the person wants to buy a car then deal loan is issued for 5 to 7 years.

Income tax deduction

The person issuing unsecured loan does not get any income tax benefit as they are not keeping any mortgage. If the person gets income tax benefit then they can save money by paying less tax. Both types of loan have their own benefits.