Car Title Loans Make Payday Lending Look Wise

Consumers complain, and rightfully so, about credit card interest rates that average 19% per year and go up from there. Those rates are certainly higher than those charged by banks, were personal loans can often be had at half of that rate, provided that your credit is good. On the other hand, credit card interest rates are bargains when compared to those charged by payday loan companies, where interest rates can often exceed 400% per year. Consumers usually take out such loans, which require repayment in two weeks? time, only when they have no other lending options available to them, such as when their credit card balances are full. Four hundred percent per year sounds completely insane, until you consider that there is a form of lending that is potentially even more expensive ? the car title loan.

Car title loans work much like payday loans and have similar terms. Payday loans are short-term loans, usually two weeks in duration. The borrower pays a ?fee?, which amounts to interest, that can average between $15 and $30 per $100 borrowed. If the loan is repaid in two weeks, the loan is retired. If the loan is not repaid, the borrower can usually renew it for another two weeks by paying the fee a second time. This is known as ?rolling over? the loan. These loans have no collateral required; proof of a bank account and steady employment is usually enough to secure the loan.

Car title loans differ from payday loans in that the loan is secured by the title to the borrower?s car. The duration of the loan is typically 30 days rather than two weeks, but the loans often work the same way. At the end of the loan period, the borrower can either repay or ?roll over? the loan for another month. The difference, and it is a big one, is that failure to repay a car title loan allows the lender to repossess the borrower?s car! At that time, the lender may sell the car and keep they money that they are owed. Most states require the lender to return any extra funds, but some states actually permit the lender to keep all of the money.

One would think that by requiring collateral in the form of a car title, the lenders could offer loans at a more affordable rate than those offered by payday lenders. They probably can, but in practice, the interest rates are very similar, which makes a car title loan a very risky way to borrow money. Most people need their car to get to their job; if your car is gone, so is your opportunity to repay the loan or to buy another car.

Lawmakers in various states have been trying to crack down on the growing car title loan industry, but they often meet with resistance from industry lobbyists and Republican legislators who think that the ?free market? should decide how lending businesses work. Unfortunately, the ?free market? is not available to most car title borrowers, who only go to such lenders after they have exhausted all other borrowing avenues, such as banks, credit cards, and even payday loans.

The bottom line is this ? No matter what the interest may be, putting up the title to your only means of transportation as collateral for a $500 loan is a bad idea.

?Copyright 2006 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to affiliate marketing and informational Websites, including End-Your-Debt.com, a site about debt consolidation, credit counseling, payday loans and personal bankruptcy.

Own a Brand New Car with the Unsecured Car Loan

Are you vexed with the local transportation that is eating half of your day? Do you get allured by the fleet of branded cars that are parked outside your neighbour?s house? In short, do you want to buy a car badly? Your dream is waiting to be fulfilled with the help of unsecured car loan.

Unsecured car loan is a kind of personal loan that is lent only for the purchase of an automobile, quite evidently a car in this case. Such loan implies that you are applying for a loan without any collateral or security against it. Most loans for buying a car are considered as unsecured.

However you must try and analyse the various pros and cons while a going for an unsecured car loan. For instance, you don?t have to put anything at stake while going for an . unsecured car loan as security. It makes you more comfortable as such a deal is risk free. It is beneficial for those who don?t have any collateral to put forth against their loan. Also the loan can be obtained faster as compared to the secured loan because there is no processing or documentation involved Unsecured car loan is of a great help if you really want to arrange your finances early. But wait, unsecured car loan has its own disadvantage as well. They normally command a higher interest rate than the secured car loan. The borrowed amount is less and it carries certain restrictions on as to how are you going to spend it. Also, the rates that a lender gives you depend entirely on the personal circumstances of the borrower. Owning car is no longer a luxury now but a requirement. To uphold it, a report from a study by the Sainsbury?s Bank indicates that the increase in the number of people to buy cars through loans may reach up to more than 8 million during the period between September 2006 and February 2007, with an overall increase of 230,000 people since August 2006. Buying your own car is the fashion statement for today.

So go for the unsecured car loan and make your dream of owning a car, a reality.

About The Author : The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Loans-Bazaar as a finance specialist.

For more information please visit: http://www.loans-bazaar.co.uk

Drive Your Dream Car With Car Loans

Car loans are designed to tackle the increasing demand of the cars among car lovers. There are many people who have been dreaming to buy their dream vehicle but are not able to afford it. Car loan is an efficient tool to purchase your dream car without caring about its high price.

Earlier, it was difficult for a common man to afford a car because there was not sufficient financial help available in the market. It was a Herculean task to purchase a car for a low salaried people and it was considered only wealthy people?s cup of tea. However, the outlook has completely changed, since car loans have been introduced in the market. Cars are no more considered to envy your neighbors and friends; rather they have become a necessity for everyone.

To get a car loan, you are given two main options. First is secured car loan where offering collateral is must for the borrower. The property could be any of his precious assets such as home. This property is kept with the lender till the time the borrower does not repay all the money. Lender will repossess if borrower fails to repay the loan amount. However, low interest rate, flexible monthly installments and long repayment duration are its special features.

The second option you can avail is unsecured car loan which does not demand security. But, you have to pay very high interest, big monthly installments with in a short repayment period. If you have made up your mind to purchase a car then online search can be very fruitful for you.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Ecar-Loans as a finance specialist.
For more information please visit: http://www.ecar-loans.co.uk

Controlling and Getting Rid of Student Debt

Most of the students nowadays fear debt (Education Guardian, 2006). However, debt is not necessarily a bad thing, if you can control it. Learning how to control it early on pays dividends for the rest of your life, as the likelihood is, you will owe some money to someone until retirement, be it a mortgage, loans or even leveraging a business. Simple corporate finance rule of thumb states that individuals and businesses can benefit from a correct ratio of debt in their portfolio (Brealey et al., 2003, p. 532).

The first rule of controlling your debt is not to spend too much. Students have a lot of different discounts available to them, so you need to get a student card as soon as you join the academic institution to be eligible for the discounts. In turn this means that your purchasing power increases as you buy the same basket of goods for less. For example, your Debt Reduction Team offers a wide range of discounts that are available not only to you but also to your friends and family (SDRT, 2002).

Your two biggest expenditures (except for alcohol) are likely to be accommodation costs and books. It is advisable to stay in university halls as long as it is possible. Sometimes applying early on and negotiating will allow you to secure a place in the second and third academic years. In Britain books are extremely expensive, so do not rush to buy everything on the reading list. The best way to save on books is to use the library and it is always worth signing up to libraries outside of your university which will give you access to books when they are not available in your own library. Also, if you are living in halls, students in the year above you are likely to have the books that you require. If you do want to buy books, check university book sales or the internet for second-hand bargains. However, if you do have to buy a brand new book, be very careful with it and do not break the back or loose the receipt, as this will allow you to refund it (usually within 10 days) if you decide that the book is not for you.

Other ways that you can save money are:

??Shop for food with friends ? buying in bulk can save money and means that you can take advantage of the 'buy one get one free' offers? (NatWest, 2006)

??Use your NUS or ISIC card and also look in your Student's Union for a number of one-off offers that are available? (NatWest, 2006)

?Before buying goods ask fellow students if they know where to get them cheaper

Considering that you have minimised your spending, the methods of efficient borrowing will be discussed below.

New students usually borrow from the Student Loan Company (SLC) to fund their fees. This company will allow you to borrow up to ?3,000 per year and the debt will need to be paid back once your income is ?15,000 or more per annum (City University, 2006). The SLC?s interest on the loan only increases in line with inflation (retail price index), therefore you will only pay what you have borrowed, plus inflation. The repayments will be linked to your income at 9% (DFES, 2006, p. 8). SLC loans are primarily used to pay tuition fees, but of course, you will also need some spending money. The majority of students will open a credit-card account. However, what you need to be aware of is that a credit card?s interest is a lot higher then those charged for a loan. Therefore, there are other sources of finance that you can try first, such as Student Accounts that are provided by most of the high-street banks. Student accounts will allow you to borrow at 0% interest (up to a certain amount) during your university years and 1-3 years afterwards. Most of the high-street banks compete to get students as their customers, so make sure you check all of the available offers before settling for an account.

However, if alternative resources have run out then opening a credit card might be the only option left. In this case you should be looking for a credit card with 0% on purchases. Most of the credit cards will have a shorter time-frame on 0% purchases than on balance transfers, so you need to find a credit card that will give the maximum time on free purchases. Zero per cent on purchases means that the cardholder pays no interest on anything that they purchase with the credit card for a certain period of time and after that timeframe expires, a standard rate of interest is incurred on the balance (RBS, 2006). The best deals on credit cards can be found on the internet. There are two things that you can do once you reach the end of the 0% period:

a)transfer the debt to a new credit card provider; or

b)pay off the debt.

Otherwise the debt will start rising out of control. In the first scenario there are a few things to watch out for. First of all, when you transfer the balance the amount of 0% purchases will go down. For example, if a new credit card offers a ?2,500 limit and ?2,000 is transferred from the original credit card, then only ?500 is left for purchases. Secondly, there will be a fee for transferral, which ranges from 2% to 6%, which needs to be taken into consideration when choosing the best deal. Thirdly, if the credit card offers a ?2,500 limit and ?2,500 is transferred, there will be no money left to spend, which will force you to open another credit card. Furthermore, most of the credit cards will have a certain cash withdrawal limit, which is much lower then the credit limit offered. You should be aware of that limit, and bear in mind that you will incur credit card charges every time money is withdrawn. So, the best thing to do is to have a plan of how to pay some of the spending off whilst 0% on transfers and purchases is still available.

There are a lot of different ways of earning money whilst at university, which will not interfere with the lecture attendance. Most universities and some agencies will allow a student to work around their timetable, furthermore there are a large number of companies on the internet that will allow you to work from home at your own pace. For example, a student once told me that the best way to earn money while at university is to look outside of university jobs. In her case, she did bar work at the club during semester time and temped full-time for an agency during summers doing administration work. On completion of university not only did she have a positive account balance, but also had good working experience to display on her CV.

Considering that you have some money coming in and 0% on purchases is available to you, you can put this income into a savings account (cash ISAs is one of the best ways of saving, while still allowing you to withdraw at any time). Therefore, your income is earning you money, but the credit card is not charging interest. Once the credit card has to be paid off, the required amount is withdrawn from the savings account and the credit-card bill is nullified.

However, what can you do when there is no income coming in? Unfortunately, you will need to rely on debt. As has been explained previously, you will need to make sure that you transfer credit balances before interest payments are incurred. However, there will come a time when you will run out of money available to you and this will require you to have some income coming in. As stated before, there are a lot of different ways of earning income whilst at university. Furthermore, bear in mind that most future employers will look favourably on previous job experience, even if it is not related to the job that you are applying for.

Getting rid of debt on completion of university is also not as difficult as it?s made out to be, if you can apply the correct discipline. The first thing that needs to be done is to understand exactly how much money is owed (this can include credit cards, loans and store cards). Secondly, debts need to be put in order of priority. For example, if the credit cards are incurring 14% interest, whilst 4% is charged on your loan, then paying off the credit cards should take priority. If you do not have the income to pay off all of the credit cards straight away there are a number of things that can be done:

a)transferring the balance to a 0% credit card;

b)speaking to your bank and asking them for terms to consolidate your credit cards (more then one quote should be obtained)

c)calling other debt consolidation companies and seeing what they can offer (Clear Start, 2006).

Similar stages can be applied to other debts, in order of priority. If steady income is available (which is higher than the amount spent per month) then debt is not necessarily a bad thing. If spending is controlled, then you can pay off outstanding debt, and benefit from alternative debt available. For example, if you spend against your credit card at 0% per year, then your outgoings can be put against the credit card, but income can be put into a savings account allowing those savings to be used to pay the card off at the end of the free period, so retaining the interest.

Some students think that they can default on a student loan. Defaulting on a student loan is very difficult. The loan will be automatically written off by the government after 25 years, if not paid (DFES, 2006).

Although the above work outlines different ways of maintaining and controlling debts, it should be noted that bad debts and an inability to pay may be registered with credit reference agencies, which in turn will decrease your ability to obtain a mortgage in the future (Dwelley, 2006). Therefore, it is important to control your finances at all stages: during university and afterwards.

References

Brealey R, Myers S. 2003 ?Principles of corporate finance? International Edition, published by McGraw-Hill Higher Education, p. 532

City University, 2006, ?Student Loans ? new students 2006/2007? Available from: http://www.city.ac.uk/studentfunds/undergraduate/new/loans.html (Accessed on 31/10/06)

Clear Start 2006 ?Unable to keep up monthly payments on credit cards and loans? Available from: http://www.clearstart.org/credit-card-debts-uk.php?gclid=CPmQwpvJo4gCFRnpXgoduHknSQ (Accessed on 31/10/06)

DFES, 2006 ?Student loans and the question of debt? Available from: http://www.dfes.gov.uk/hegateway/uploads/Debt%20-%20FINAL.pdf (Accessed on 31/10/06)

Dwelley S. 2006 ?Student debt and how to deal with it? Available from: http://graduate.monster.co.uk/8663en-GBp1.asp (Accessed on 31/10/06)

Education Guardian. 2006 ?Market logic turns a degree into a share certificate? Available from: http://education.guardian.co.uk/students/tuitionfees/story/0,,1840824,00.html (Accessed on 31/10/06)

NatWest 2006 ?Avoiding the student debt trap? Available from: http://www.he.courses-careers.com/debt.htm (Accessed on 31/10/06)

RBS, 2006 ?Credit Cards? Personal Finances Available from: http://www.rbs.co.uk/PersonalFinances/CreditCards/CardFeaturesandBenefits/default.htm (Accessed on 31/10/06)

SDRT 2006 ?Student Debt Reduction Team? Available from: http://www.wessexscene.co.uk/article.php?sid=273 (Accessed on 31/10/06)

This article was written by Verena Veneeva professional writer working for http://www.coursework4you.co.uk You are free to reprint this article; however should you do so you must place a hyperlink to Papers4you

Bad Credit Loans Put your credit back on the track

It doesn't matter what your credit history is, chances are that at some stage of your life, you will require bad credit loans. If you have a credit history which is not impressive and if you think that your bad credit will not let you get approved for bad credit loans then don't be sad. There are a number of banks which provide loans for people with bad credit!

In case you are looking for bad credit loans or a bad credit personal loan you should consider a few things first. If you are looking for a bad credit loan then obviously you already have poor credit so in order to improve your credit ratings you should make sure that your loans are reported to the major credit bureaus.

Finding bad credit loan offering lenders is not a problem because millions of people already had bad credit problems but they are now enjoying a better situation probably because of a better job or some extra earnings from here and there enabling them making their loan payments properly but still shadowed with bad credit ratings. Today you can find better deals than you could a few years ago though, you will still pay higher interest rates than someone with a good credit score due to the fact that bad credit loans are still viewed as a risk to financial institutions.

You should remember that before you apply for a loan, you should be able to comfortably cover the payment. This is your chance to try to get your credit back on the track. Don't turn this into a situation where you'll find your credit worse than before. Analyze your expenses and try to work out a proper budget and avoid getting over-extended. Keep in mind that it's always too easy to put yourself on the road of financial ruins and try not to rely on a number of loans for the rest of your life after all, that's how banks make their money from loans.

Zeeshan is the co-founder of Bad Credit Home Loans. If you want to find more information and resources on Bad Credit Auto Loans and Bad Credit Loans, please visit Credit and Mortgage Index.

Unburden Yourself from Debts through Debt Consolidation Loans

Maintaining social status and pretending what we are not, can be some of the reason that why we get into the trap of debts. This can be also being called as show-off, in which we spend lavishly and extravagantly in order to improve our financial and social reputation. And for such spending we take number of loans and make use of credit cards which further worst the situation. But, this can be a matter of worry if we don?t avail debt consolidation loans.

Debt consolidation loans are regarded as an effective means to solve debt problem. It consolidates and merges all the debts and pays them through a single payment. In other words the lender of debt consolidation loans combines all the debts and pays all our creditors accordingly and simultaneously we are left with a single monthly payment.

Debt consolidation loans can be availed with and without collateral. It totally depends upon us and our financial situation that which form we avail. But, generally it is seen that secured debt consolidation loan is always recommended as it offers comparatively low interest rate and longer repayment period. But, if we feel that it will be difficult for us to meet all the repayments then we should avoid taking secured debt consolidation loan. And, in place of that it is better to go for unsecured debt consolidation loan in which there is no risk on the asset.

Debt consolidation loan can also be availed even by all the bad credit scorers. All the bad credit scorers will be obliged to pay high interest rate but through this means they can improve their credit score by making timely and duly payments.

We should be little cautious while availing debt consolidation loans from the lender. That is, there is always a need to thoroughly go through each and every aspect of the debt consolidation loans. And, this is possible only through research which makes the task of determining the most competitive deal faster.

That offer of debt consolidation loans must be accepted which have lower annual percentage rate. Annual percentage rate in financial market comprises of two elements that is interest rate and other costs of the loan. Low annual percentage rate always helps in making easy repayments.

We should never forget to consider all the terms and conditions of the loan deal as a single unfavorable terms can emerge as a hurdle in smooth repayments. All the costs of the debt consolidation loan deal must be cleared in advance so that there is no confusion. And also we must make sure that there is no hidden cost in the debt consolidation loan deal.

Peter Taylor is a senior financial analyst at loansuk with an acumen for finance and insurance.To find Debt consolidation loans, unsecured loans, personal Loans, personal loans UK, secured loans UK, unsecured loans UK that best suits your need visit http://www.loansuk.eu.com

Advance Cash Fast Loan is Meant for People in Urgent Need of Emergency Debt Relief

An advance cash fast loan is very simple and is here to serve the Americans who have short term financial difficulties. If you are in a situation where you need emergency debt relief, and you need it like yesterday; an advance cash fast loan is your best choice. If you apply in the morning, normally the advance cash is electronically deposited into your bank account in the evening on the same day. Maybe you need an emergency debt relief because of a situation that screams for cash, and your next paycheck is just too far off; then consider getting an advance cash fast loan. Even poor credit won't be a problem to get you a cash loan. Cash expert offering, the best financial services in emergency debt relief, cash advance loan, check advance pay day loan and advance cash. Bad credit cash advance services are actually cash advance lenders or payday loan companies that offer no credit check policy.

Trying to get emergency debt relief does not have to be difficult. Many consumers are seeking like you, looking for an advance cash fast loan, to get that emergency debt relief; all of them want the fastest financial relief possible. Your advance cash fast loan can be just a click away from you. For longer-term relief from financial problems, a bank loan may be the answer. Consolidation provides relief without bankruptcy or new loans.

If you are desperate in need of some financial assistance then the online world has the solution for you. The advance cash fast loan is meant for people in urgent need of emergency debt relief. A no credit check cash loan seems like an ideal solution to your problems, don?t you think.

You have a simple life and you require a simple solution to your financial woes. I believe that the advance cash fast loan seems like the logical solution. It?s the best and quickest solution for any cash flow problem. Quite a simple solution isn't it. An advance cash fast loan is the first choice for most people. A good solution for anyone?s cash flow needs. Put a cork in your financial worries today.

Stop wasting time and get an advance cash fast loan now! And get on with your life instead of worrying about that emergency debt relief. Go visit http://www.debtconsolidationplanet.com and read high-quality articles with valuable content for any one in debt or need of advance cash.