All posts by Jesus Hunter

Co-signing loans is a common practice in the world of finance. In fact, it is an opportunity for someone with a better credit history to help another person who is struggling to get his finances back in order. However, this practice is rather between friends and family members since it ncissite a very good relationship of trust.

Opinions about co-signing a loan vary from person to person. And that’s normal. If you think about it, by co-signing, you put your name and credit history at stake, and you are now responsible for this loan as if it were yours.

Sometimes, because of a bad credit history, some people can not qualify for a loan they want. That’s when the co-signer comes in. The co-signer uses his good financial reputation to help the other person get his loan.

The positive aspects of co-signing

1. Co-signing helps a friend or family member get financing

The reasons for asking are many and the majority of them are good: tuition, transportation, housing. If you take away some people’s ability to have a loan, their options become very limited. Seeing his loan application being rejected is a very common reality. However, a co-signer could solve this problem. For example, by making a loan, you can help a loved one pay for school fees, buy a safe car, or even move to a better place.

2. It improves the credit history of both people

In order to improve your credit rating, you need to get a loan, something that can be difficult for some people with difficult financial backgrounds. The co-signer is then beneficial. Someone with a good credit history could co-sign the loan, which will not only improve the credit rating but also the creditworthiness of the person in need. Moreover, as the co-signer is attached to the first as the main signatory, his credit score increases with each payment made on time.

3. Better interest rates

Unfortunately, people with a difficult financial history have to pay higher interest because, in the eyes of creditors, they are considered at risk. On the other hand, by having a consignee with a good credit history, the person will be able to benefit from the co-signer’s credit score and thus obtain better interest rates.

4. This avoids the attractive scams of creditors

By having a consignee, you avoid dealing with creditors whose only intentions are not to help you, but to take advantage of your bad credit history. These types of creditors are looking for vulnerable people to take advantage of their lack of knowledge and thus impose extremely high interest rates on them. When a person with a good credit history cosigns your loan, this allows you to get a quality loan from an honest creditor and that will offer you a fair interest rate.

The negative aspects of co-signing

1. You will not get a material reward

This may be the only reason why co-signing a loan or mortgage could be a bad idea. Indeed, you will not have any material benefit following this gesture, you will not be able to drive the car that the person has procured nor live in the house bought, but you will be responsible for the payments. If the person for whom you have co-signed is no longer able to pay, it will be up to you to pay.

2. You are responsible for the loan

If you cosign the loan with someone, you are technically the only reason that this person gets the loan. Your good credit history is why your friends or family member with bad financial history is able to get the loan. If the payments are no longer made, the person with the good credit history, ie you, will be held legally responsible for repaying the remaining debt.

3. You may be refused for a loan in the future

By co-signing a loan today, you may be unable to obtain a loan in the future. Think carefully about your future before signing a loan. You might not think of having a loan soon, but the reality is that you never know what can happen. You will not want to be rejected when you need it.

4. You will have to make the payments

Prepare to make payments at any time. Given that you are responsible for the loan now, you must be prepared to make payments to protect your credit history. Put money aside in case the other signatory is no longer able to fulfill its commitments.

5. You will have to watch the payments

Even if your friend or family member claims to be making payments on time, you need to check everything yourself. Failure to check the regularity and accuracy of the payments made is simply not an option. You will have to treat this loan as another monthly bill, so stay organized and ready to pay at any time.

Wanting to help our friends or family is never a bad idea. However, when seeking your financial assistance, think carefully about the consequences. Depending on the situation, the positive aspects of co-signing might outweigh the negative aspects, but the opposite is just as possible. The best solution for both parties is to understand what the co-signature actually implies. Thus, by analyzing the situation carefully, you will be able to say yes to your friends without fearing the impact on your financial life.

Thanks to the consolidation of loans, we pay one lower installment instead of several others, we do not have to remember about the dates of many installments, and we also have the option of obtaining additional cash. See http://saltwaterconnections.org for a write-up

The offer of consolidation loans has been on the Polish market for over a dozen years, in two forms:

– mortgage collateral – in this case, one of the consolidated loans is a housing loan, – a consolidation loan – cash.

Some of the offers currently available on the market enable repayment of loans without having to pay another commission, which means that we have a chance of getting a lower installment. How can our installments be lower? There are two solutions:

– thanks to the extension of the loan period, which makes the installments lower, but the overall cost of credit higher,

– thanks to the use of a lower interest rate than in the case of existing liabilities. This possibility arises because at the moment of loan consolidation, we become a “safer” client for the bank, meaning those who are better at maturing debt repayment in a timely manner.

When is it worth consolidating loans?

Many people fall into the so-called debt spirals, which consist in repaying one loan, the other, incurring more loans for repayment of loan installments, interest payments, and then we can already say that we have a very serious problem. Often, however, in this situation we stand against the wall and we have no other choice. We are threatened with confiscation of property, and this is a very bad situation. In this situation, consider whether it is worth to sell something rather than let the bank take our property from us. If you sell yourself, we’ll definitely do better. A consolidation loan is a better option than the use of so-called non – bank loans without Retrodatabase, type of payday loans, etc. However, not always. It may turn out that we will pay equally for a consolidation loan as for a non-bank loan. At the same time, non-bank loan agreements, as the name suggests, are granted by companies that are not banks and are not subject to appropriate regulations. Of course, there is the so-called anti-usury law , but despite that agreements in such companies are often very complex and contain numerous hooks that may be disastrous for us. Of course, not all non-banking loan companies use such treatments, but you have to be very careful. In addition, such a company also has to compensate for the risk associated with the borrower’s failure to pay, and he does so through the high costs of such a loan, which is charged to the client.

In what situation is not worth using a consolidation loan?

In my humble opinion, it is not worth using consolidation loans in a situation where we are able to pay our debts, but we want life to be a bit easier and we prefer to reduce the installments and spread credit obligations over time. We will simply pay more in total. It is better to tighten the belt for some time, but this is only my opinion, and everyone in this aspect may of course have different preferences.

Is consolidation profitable?

Summing up, it should be stated that in the situation when we are looking for an effective way to reduce our credit obligations, it is worth considering the possibility of consolidating our loans. Thanks to this, we will be able to repay them easily and take a step towards financial freedom. However, it is best to avoid a situation in which we are unable to pay debts and take loans only when it is necessary. A loan is a good source of investment financing, not consumption.

Problems with maintaining financial liquidity are common, sometimes it turns out that the additional loan did not help us overcome the financial turmoil, but only deepened it, and then there is a serious threat in the form of a spiral of debt.

Managing your home budget is not easy at all. Especially when there are sudden expenses with which we are unable to cope alone. Then in our head the idea of ​​borrowing is born, which are currently at your fingertips. Everything would be good if it was not for the fact that some of us can not lend responsibly.

The concept of debt spiral

The debt spiral phenomenon occurs when the number of financial arrears that we do not repay on time increases. In such a situation, the basic mistake is to incur further installment loans , which allegedly help in repaying at least part of the debt. Very often, customers use this method until further companies refuse to borrow cash.

In the spiral of debt, you can be found extremely fast – especially if you have a free attitude to money. At first, we may think that incurring one commitment to pay off the previous one is a good idea, but before we look back, we will take the eighth loan to settle the seventh. It’s a vicious circle. When we finally realize that the financial loop has absorbed the rest, it will be too late to leave, because we will not avoid the consequences of unpaid loans .

How not to fall into the spiral of debt?

Although the spiral of debt is a real threat, it can be avoided. First of all, if we have problems with repayment of debt , we must act. Problems with settling liabilities must not be underestimated. Contact with a loan company that decided to grant us financial support is very important. If we are not satisfied with the amount of installments or the repayment date, it is worth discussing with the lender and renegotiating the terms. Nobody cares for us to fall into a financial trap.

If we find ourselves in a difficult situation, and the pile of calls for payment will grow, let us not panic. The sober assessment of our position is important. One should realistically approach our needs and reduce expenses as much as possible. A good way is to make a list of fixed fees, which will tell us what our budget looks like and what free amount we have. In a difficult financial period, we should give up pleasure and focus on regulating debts.

We should always assume that the future can not be foreseen and that caution is never enough. Even the most responsible borrower can quickly get into financial trouble, because often small debt turns into a big problem .

All credit cards allow you to obtain cash advances. On the other hand, even though the existence of cash advances seems convenient to you, that does not mean that you should benefit from it. Withdrawing money from your credit card is the first step towards a precarious financial situation. In fact, cash advances are a great source of income for credit card companies that take advantage of people’s difficult financial situations. Money advances are one of the worst financial transactions you could ever make. In addition, this can affect your credit history and lead to high debt. These are some facts you should know before deciding to apply for a cash advance on your credit card.

Additional costs

Using your credit card in an ATM does not equate to using your debit card at this counter. By using the credit card, the credit company will charge you extra fees to borrow money. There is also the usual cost of an ATM. Money advance fees range from $ 10 to $ 20, which means a $ 20 withdrawal could cost you $ 30 to $ 40 at the end.

Interest rate

If the imposition of additional fees is not enough to discourage you from using cash advances, interest rates should probably succeed. Similar to any normal transaction made from a credit card, cash advances are subject to interest rates. But, unlike traditional transactions, when you advance money, you lose the grace period. What does that mean ? In short, you will pay the interest on the cash advance immediately after the withdrawal. In addition, interest on cash advances is usually higher than the interest rates associated with simple purchases. Interest can vary between 1 and 7% depending on your credit card company.

Credit score

Each of your financial decisions influences your credit rating. The credit score represents the soul of your financial life. Taking large cash advances on your credit card or even taking small amounts makes the full refund much more difficult. Having a large debt on your credit card for a long time will definitely affect your credit rating in a negative way. As a result, it will be more difficult to obtain a loan in the future or to be approved for a mortgage.

Too much debt on your credit card makes you a worrying and risky customer in the eyes of banks, who will be less inclined to do business with you. In addition, if ever the bank grants you a loan, the interest rate that will be offered to you will be significantly higher than the normal rate.

There are other alternatives

Other alternatives are available to you in financially difficult situations. There are other borrowing opportunities that will allow you to address your financial difficulties quickly and be more beneficial over the long term.

• Personal credit
• Credit on your automobile title
• Mortgage line of credit

Before you insert your credit card into an ATM, find out about these three alternatives. You will be surprised to see how fast and useful they are compared to cash advances. In the long run, one of the alternatives will save you a lot of money, given the fact that interest rates are lower than cash advances.

With a personalized / private loan, you will be able to repay the costs of cash advances, in addition to paying most of your credit card debt. The personalized loan allows you to start from scratch. In addition, the use is easy and fast: a single payment with respect to your private lender.

Start today

Credit cards are useful. On the other hand, do not let the immediate benefits of cash advances destroy your long-term credit history. Financial problems are a heavy burden on your shoulders. But the sooner you start looking for alternatives, the sooner you will reach your financial freedom.

Non-bank institutions tempt us with slogans about quick loans that we will get for any purpose, but it is worth remembering not to overdo it with the amount of our obligation.

When we decide on a loan, we should carefully select the sums we need. Although loan companies do not require us to specify the goal, it is worth determining what we plan to allocate money. Then, determining the installment amount and the loan repayment period will be much easier.

A quick non-bank loan is a tempting option

The possibility of obtaining money for any purpose is a very advantageous option. We do not have to explain to anyone what we want to spend, and whether it is profitable. Such liberty, unfortunately, sometimes leads to the fact that we belittle our loan and spend the money received carelessly. We forget to calculate the cost of our loan, which causes us unpleasant surprises in the form of fees that we have already forgotten about. In this case, there may be indebtedness which will be included in the relevant registers. Non-systematic regulation of installments means that even a small debt becomes a big problem that not everyone can manage.

Loan companies do not ask about the purpose of the loan

More and more often, when the bank does not give us support, we apply for an installment loan. The advantage of this option is that we are not asked about what we want to spend the funds on. Therefore, we can deal with the amounts and repayment terms quite freely. However, when we do not keep our judgment, we can overdo it and take out a loan that we will not be able to repay in a timely manner. Especially when paying off the installment loan, it is worth remembering the additional costs that accompany the subsequent installments. If we incorrectly determine the sum and repayment period, the fees may exceed our financial capabilities.

Before you take out an installment loan, check your budget

This raises the question of how not to overdo the amount when applying for an installment loan ? Some of us lack self-discipline, which makes it more difficult for them to be wise. It should be our foundation. Even if a loan company does not require us to provide a goal, it is worth concretizing it. It will give us motivation to systematically repay installments and avoid unnecessary expenses. If you want to take out a loan safely, learn how to manage your own budget properly. When we have it under control, we know exactly what our financial situation is and, as a result, we are able to determine what expenses we can afford.

It is worth comparing installment loans

When planning a larger commitment, the basis should be to match the loan to our needs and financial capabilities. How to do it? Sometimes it’s enough to use one of the loan comparison websites. They allow you to compile offers to choose the one that will be the best for us. We will find them on financial portals, which are a competent source of information on loans and the use of such services. If we read the advice about non-banking institutions, we will know everything about how to take out loans on the web and, as a result, we will avoid many mistakes.