Debt Management| Bad Credit Loans, Personal Loans, Getting a Loan

Payday Loans are possibly one of the easiest forms of credit to obtain but with this ‘ease of credit’ comes with a high price tag - interest!!

Originally the form of lending known as “Payday Loans” originated in the USA and has now landed on the shores of the UK - spreading at an alarming rate.

This type of Loan is typically a very short term loan which is repaid, in full, when you get paid from your employer. They are really designed to get you out of a ‘fix’ when you find yourself short of money before payday but they do have an extremely high interest rate attached to them.

A typical example of this would be that you borrow £100 but repay £130 or £140!!

Considering that Payday loans are very short term loans then this rate of interest is exceptionally high indeed.

Now it may just be that you find yourself in desperate need of a small loan and a Payday loan will fit your circumstances. What you will need to bear in mind is that if you are short of money one month, then you will need to pay the original amount that you borrowed, plus the interest.

This may have a ‘knock-on’ effect of then leaving you short of money again. When faced with that situation you may be tempted to turn to the Payday loan option again and this is where the hidden danger is waiting for you.

Let’s say that you borrowed £200 one month and on your payday you paid back £260. This would leave a £260 hole in your wages which could temp you (or leave you no other option) but to use the Payday loan option again and borrow another £200.

This is the start of a vicious circle that many people find themselves trapped in.

Each month when you repay the £200 loan you are paying £260 out of your wages - this leaves a £260 hole in your wages - so you borrow £200 again to ‘fill the hole’.

Then the process repeats itself again when you have to repay £260 on payday - you’re trapped in the Payday loan circle of debt.

The loan company lend you £200 once - it’s the same £200 the re-lend you each month - and for this pleasure you are paying them £60 each month when you repay the loan. Read more… »

Can you cure your debt problems overnight? Are there secrets that the credit and lending industry wish you did not know? Are they doing their best to keep you drowned under a massive pile of debt with no hope of getting out from under it? This article will attempt to answer those questions using tips from the latest book on debt - Debt Cures.

Are there ways to get rid of your debt problems overnight? No, nothing that is legal anyways. There are ways you can reduce the amounts you owe; you can negotiate your debts down if you are facing collections and the credit card company does not want to risk losing all of what you owe them. Kevin Trudeau in Debt Cures says to show them an income statement and balance sheet showing your assets and liabilities and your ability to pay. If the credit card company can see that you have little to pay them then they may be willing to reduce the amount you owe. Read more… »