Effects Of Exceding Overdraft Limits

Overdraft limits start typically in the range of a few hundred pounds. In order to pay main repairs to their property or unexpected bills, consumers who require an overdraft will take a limit of around £500 to a few thousand pounds. No matter the available maximum overdraft limits on the market, the lender will require to the consumers who hold an account to pay back the entire loan along with any extra overdraft charges and interest rates.

The objective of an overdraft limit is to dissuade consumers to spend more than what they can be able to pay back. However, exceeding overdraft limit comes with big consequences for the account holders. If a consumer withdraws money beyond the limits, the provider may charge higher rates of overdraft on the whole amount instead of charging only on the amount the exceeded the limit. In addition, extra charges for exceeding overdraft limits may also damage the consumer’s wallet. These additional charges called unauthorized overdrafts are more expensive and may result in a bad score for credit rating of the consumer.

With these unauthorised overdraft charges, the lender calculates rates daily on an unplanned overdraft. This will result in a big amount for the borrower to pay. Different other bank charges of overdraft will also contribute to this expensive bill such as arrangement fee when setting up first an overdraft facility and monthly usage fee. It is also possible for the lender to add fees for business overdrafts such as the amount of money leaving or entering the account during a determined period.

There are also some overdraft charges that are unfair. This happens when lenders request fees not mentioned on the contract. The law requires to all financial providers to treat their clients fairly. If you are a victim of unfair overdraft charges, you can write to your lenders and explain any financial hardship you are facing and how these charges affected your financial state. Such claim can be a long process particularly if the lender or the bank refuses to hear you. You can contact a financial expert to help you.

The best way to avoid such unpleasant charges is to stay within the limits of overdraft. Exceeding such limits brings stiff penalties and you will pay more money aside the entire loan. You will have a bad credit score that will make it difficult to obtain another loan in the future.

Budgeting For Indulgence

Budgeting should not be a sacrifice. Many people fail on their budget because they do not keep a place for long term planning and spontaneity. Many things, such as entertainment and groceries, that people did not plan in their budget end by taking away a big part of their money. When you shop for groceries, keep the receipts and check on the items you bought. Make a list of everything that was necessary and add things bought on impulse, such as bakery and cookies, and indulgences purchases.

A good way to reduce your budget is to cut in half the cost of indulgences. If this week you spent £40 on weekend excursions, plan to spend only £20 next week. Before shopping, try to eat at home so that you will not spend for fast food or other impulse purchases. Make sure to establish a list of everything you need from home and once in the shops, start by paying the items on your list. Bring just the amount you need for these items. Make a list of an entire week and stick to it.

Entertainment can also be a pitfall for a budget. If you and your mate go to see a movie out very week, you will spend more money in entertainment and less in basics. You can decide to rent a movie two weeks in a month and go out the other two weeks. Renting a movie will save you money. Online servies such as Netflix can also reduce entertainment costs. With whole series and recent movies available to watch for as little as £5 a month, there is little need to spend extortionate amounts at the cinema.

In order to make your budget working, you need to allow for extras. You should allow for things like concert tickets, clothes, and other fun coming ahead. This does not mean that you should attend every concert or buy new clothes every week, but planning for these extras will allow you to have the basics things with you while enjoying some leisure. Depriving completely yourself from indulgences will not save you money. It can move you to abandon your budget completely because of lack of reward or frustration.

Budgeting does not mean punishment but harmony and balance to your finances. For a realistic budget, get an accurate knowledge of your expenses and incomes for the previous two or three months. Once you have this information, try to see the amount used for groceries for example during two months and divide the total by two for having the average amount you spent monthly for groceries. Do the same for each category of expense. Estimate also your monthly income and you can now plan your budget. Set realistic goals when you plan a budget including emergencies and unforeseen expenses.

Sensible spending is an approach that all of us at PiggyBank are in favour of. We are a payday loan direct lender,  and our service is designed to offer responsible lending to those who are in need of short-term loans and able to pay back within fixed and agreed repayment terms.

How Short-Term Lending Meets Your Needs

Short-term lending is a relatively new idea. Before your payday, you can face an emergency and be in need of cash. If you had such situation few years ago, your only viable option would be personal loan or credit cards. Even though, these options have many benefits, they have also their issues. Credit cards come with high interest rates while personal loans are sometimes not easy to obtain.

If you do not want the hassle or are not able to get a credit card, short-term lending or payday loan is your safe alternative. Short-term lending is popular and many consumers use it. The process is very easy and quick. Within thirty minutes, you can apply for the loan and receive the money into your bank account. You apply online and you will usually fill your personal details before to click on two sliders. Then, you have the cash.

You can borrow a little amount of money according to your need. Some online lending firms can lend you as little as £50 if you need it. This is not the case with standard banking products. The high street bank sees such amount as not worth the investment and a waste of their time. You do not have a long term issue with short term lending because you will have to pay back the loan within a month. Therefore, you do not have to worry about a long debt.

If you have a poor credit score or a bad payment history, standard banks will be reluctant in approving your application. However, payday lenders are willing to take risk with consumers. This is why they lend a limited amount to repay in a short time. This way, they reduce the financial risk and are able to meet the needs of many consumers.

The lenders state clearly all fees and charges. This means that you know exactly the amount of money you will pay back without unexpected payments or secret fees.

The Market Collapse – 5 Years Ago

When the market collapsed on 2008, Wall Street received a big blown. Six years later, the recovery is obvious but lessons endure for main investors on the street. On September 15, 2008, the venerable investment bank Lehman brothers filed for bankruptcy and Wall Street was about to implode. It was the first time for this institution to reach such critical state since the Great Depression. Within days, the federal government bailed out the insurer AIG while pushing to the brink other investment banks including Merrill Lynch and Morgan Stanley. Amid panic, Bank of America bought Merrill Lynch. There are numerous lessons from this tragic situation, especially for investors.

The price of stocks has a big importance. In 2007, the price/earnings ratio for stock markets roe over 24, based on ten years of average benefits. However, due to the following global financial panic, the stock market lost 57% of its value from October 2007 to March 2009. When the price/earnings ratio went down to 13 by March 2009, it was a signal to buy opportunities. If you were an investor at that time and you decide to buy, you would have enjoyed a return of 230% ever since.

Another lesson is to avoid banking on any one group of stock, even financials. Since September 2011, financials have been among the best performers of market. Their values doubled in three short years. The rule of Warren Buffett saying to be greedy when others are fearful and fearful when other are greedy, helped wise investors to make big profits after the crisis.

This crisis showed that buy and hold works eventually. Investors who pulled out their funds from stocks lost at the end. On March 2009, the stocks return was 230% so far. If you were an investor and kept the basic rule of 70% equity/30% bond at the beginning of the crisis on September 2008, you would have earned an annual return of 9% by keeping your place in the course when things got scary.

Do not think of your stock as stable or conservative. The crisis saw blue chip stocks of venerable investment bank plunging dramatically. If you are an investor, take on account the real nature of your stock as unpredictable and volatile creatures. Do not take risks with your savings when stock fall because cash is not always stable.

In order to deal with an unpredictable crisis, vary your work in different ways. You will benefit by parting your bets globally.

For a payday loan or a short term loan, contact us for more information.

10 Money Saving Tips

If there is an issue affecting many people no matter their race, sex, religion, location, and age; is money. Instead of applying each for a loan when you face problems, it will be better to learn saving your money so that lender will not become your best friends.

1.Set up a budget

Money is a big issue for many people because they do not have an accurate idea of their expenses. They are not able to track the way they lost their money. Creating a budget will help you to determine the amount of money you will spend for certain things. This way, you will know where you can limit your expenses and save money.

2.You must have allowance

No matter the size of your budget, it is important to have allowance. This way, you will afford from time to time new things that will make you happy and redecorate your closet. Without allowance, you may end by spending a lot of money on many things in a short time.

3.Set up goals for yourself

You do not have to rush things with your budget. Create small goals easy to reach while you are saving money. The achievement of these goals will boost your confidence in saving money. Take your time and do not expect miracles.

4.Be generous

If you decide to buy gifts for everyone during Christmas, you will lose money. Ask each member of your family to buy gift for each other, this way you will not be the only one to spend and you will save money.

5.Use paper to wrap your gift

You do not have to spend money on wrapping paper. You can make it yourself by using a grocery bag. You can paint something on it to make it attractive. You can save money this way and the receiver of your gift will be more grateful to you since you wrapped it yourself.

6.Be realistic

You do not need to overlook the fact. For example, if your monthly income is £1,000, you can think about saving £500. This is great but it is not possible. Small goals may help you to save money.

7.Be patient

Big things do not happen overnight and make room for disappointment. Patience will help you to face adverse situation while saving money.

8.Avoid temptation

Do your best to know your weakness and to avoid fueling it. If gambling is your weakness, take distances with casinos. If you like candy shops, pick a chocolate at home before going out so that you will not have to visit such places.

9.Do not sacrificing everything for saving money

If you do so, you will be miserable. You will feel like you are not progressing. Little rewards at the end of a positive month will encourage you.

10.Write down your objectives

If you write down your goals, it will be easy for you to control yourself. You can divide your goals in weekly and monthly goals. At the end of each period, check your progress.

How Online Lending Benefits You

Online lending is more convenient than traditional lending. You do not have to go through intensive process of interview, or walking physically in the office. You need just a credit check and the lender will decide. Generally, online lending is a short-term loan unsecured or not requiring any collateral. The amount is relatively small, usually up to £1000.

The lender will manage your application for a loan entirely on the website. It is easy to choose your options since you will all the fees, including interest rates related to the selected loan. You can make a formal application after deciding the length of the repayment period, seeing the number of installments in the loan, and discovering your annual percentage rate.

Quick lenders can approve your application in less than five minutes. Fifteen minutes later, the lender may deposit the fund into your bank account. Most online lending include management instruments enabling you to set up direct withdrawal from your bank account on dates of payment while checking the amount of the loan you have left.

It is easy to assess your online loan options. Many consumers compare just APRs when there are other factors to look after such as potential fees the loan will incur, the maximum amount for the new client may borrow, and the possibility of an early repayment. These factors will help you to select the loan that meets your needs perfectly.

Today it is easier to compare many various lenders online than it was few years ago. However, you do not have to stop on main features of a lender. The secondary advantages are also important such as financial education, lower interest rates, and flexibility on dates of payment.

Many online lenders offer their services with simplicity, transparency, and honesty. Their loans are clear from the beginning so that you know very well the terms of agreement. In addition, the loans are flexible so that you can tailor the repayment schedule according to your personal financial circumstances.

Many online lenders do not charge guaranteed fees for their loans, the approval decision is within few minutes and the deposit will follow immediately after. You can withdraw your cash in whole at once or in small amounts according to your needs. You do not need to require a new application about it. After receiving the loan, some lenders will give you five days for changing your mind and repaying the main amount without interest and fees.

Short-Term Lending: Comparing the Competition

Before applying for a loan, it is better to shop around for finding the best mortgage that will meet your needs in a long term without hurting your budget. Give yourself enough time for comparing the loan offers of various lenders in order to select the best loan. It is wise to compare the policies and rules of different lenders. In some case you may have to pay a lower interest that will increase later. Some lenders can ask you to pay a higher interest rate in the beginning and they will lower it later. There are mortgage coming with fixed rates and others with adjustable or flexible rates.

When you select your loan, you should take on account various factors such as your income. You must know if your interest and income may increase, decrease, or even stay constant over time. If the loan is a mortgage, you need to know the time you can spend in your new property. If your income is high and you even expect a rise, the interest rate may stay the same for a while without increasing.

If you are planning to spend just few years in your new property, it is better to shop for a short-term loan. If you decide to sell your property after the assigned number of years, you will not face a redemption penalty. If you decide to stay longer than planned before, you can refund the matured loan.

If your income is not enough or is low and you are sure that it will not change and at the same time you plan to stay in your new property for many years, it is better to select the long-term fixed rate loan. You can pay monthly your interest without burden. In order to decrease the length of the loan and save a lot of money, you can apply extra monies paid monthly.

When you compare rates of various lenders, ensure to compare also the associated points because for the same loan, many lenders will enable you to choose among a diversity of points and rates. You have also to compare the features of the loan such as mortgage insurance payments, cash and credit reserve requirements, maximum LTV, qualifying ratios, and others features. Look carefully to the prepayment penalties and the availability and terms of conversion options such as option to convert an ARM to a fixed-rate mortgage and rate reduction option.

You will make sure to compare also the lock-in periods for each loan. There are periods during which the lender guarantees the points and interest rates quoted to you. Generally, the period is between thirty to sixty days but some lenders can reduce it to fifteen. Usually, the longer is the lock-in period, the higher is the loan price. You should select a long lock-in period so that you can pay back the loan before its expiration.

You need to compare the interest rates on the same day because rates vary daily or maybe twice in a day. Compare loan product of the same type from various lenders and on the same day. Fix all lenders at one lock-in period and interest rate. Add up the total lender fees for that rate including loan related fees and points. The lender with lower lender fees has a cheaper loan than the one with higher fees.

The Importance of Transparency From Lenders

Some financial institutions design their statement for hiding instead of revealing information. Consumers should stay away from lenders who do not have transparency in their business transactions. A lender without transparency represents a risk for consumers.

In finance, a statement is transparent if the consumer can understand it clearly and easily. Since transparency is assurance, lenders with transparency attract more consumers than lenders with opaque statements. If a lender provides less information about the lending process, this means that the lender is providing less certainty to the consumers.

When financial statements are not transparent, consumers will not be sure about the true risk and real fundamentals of the lender. If lenders do not provide clear terms, it is difficult for consumers to trust them or assess their credibility. Financial history shows that when financial institutions are not transparent, there are unpleasant facts behind their businesses and it will be a major risk for consumers to use their services.

When lenders do not have clear and easily understandable terms, consumers may think that they want to defraud them. Such lenders are less reliable. Poor transparency has a great negative effect on the business because consumers need to receive critical information in order to value the services.

Consumers value more lenders with transparent terms than lenders with opaque statements. Lenders with fuller disclosure gain more trust from consumers because reliable and relevant information mean less risk for consumers. Lenders who share information with consumers increase their value than lenders who hide information. The risk of unpleasant surprises is lower with lenders having clear statements. Transparency is a proof of efficiency from lenders. Lenders that are doing well on the market do not hide information and are keen to make public their good performance and statements in order to attract more consumers.

Consumers seek simplicity and disclosure. They will be more confident with lenders sharing information and providing clear terms about the loans. Transparency enables consumers to evaluate lenders easily and to assess the risks of using their services. This way, consumers will not be afraid of applying for loans because they understand clearly all the requirements including the interest rates and other fees. Transparency is an efficient way for lenders to grow their businesses and make profits honestly. This was they will have a solid foot on the market with lower risks for consumers. Transparency always pays no matter the time.

Benefits of Online Lending

One of the principal advantages of online lending is that you can meet the requirements without the need to secure the loan. You do not have to wait for many days before to get your cash. You can get it right away. Some online lending firms can give you the fund after few days while others can deliver it after 24 days or less.

Expediency is the motto of many online lending companies. Their main objective is to deliver your money as soon as possible. The negative side of the coin is that these firms expect you to pay back the loan as fast as you obtained it. That is why it is wise to think carefully before applying for such loan. Even if you can get the loan quickly, it is a loan like others and you have to handle it like this. You have to repay the loan on time and meet some requirements. If you are not sure to pay back the loan on time, try to find another way to get money.

Online lending can come with high rates of interest along with harsh penalties if you violate the signed terms of the loan. If you are using this method for the first time, you will not be able to borrow a big amount. The limited amount for first-time consumer is usually £500. However, if you use the same lender for your future loans, your payment history will be good and you can borrow up to £1000.

Online lending protects your privacy completely. Your sensitive financial data is secure and safe all the time. Online lending keeps secure and confidential all your financial transaction. Once you start the lending operation, the online firm will guard your identity and information from the beginning to the end of the process with the highest security measures level. You do not have to worry about hackers stealing your identity or a misuse of your data from dishonest employees throughout the process.

It is true that online lending is tempting because it is easy and fast. However, you should apply for such loan as your last option such as an extreme emergency, unforeseen financial hardship. It is always great to get the money you need right away. However, keep in mind that it is a loan and you have to pay it back quickly with extra fees including high interest rates.

The Importance of Instalment Loans

Making a living is not easy nowadays and banks are not lending as often as they did in the past. In order to meet your expenses, you may need a loan. Instalment loans enable you to get money in case of emergencies or is you need to purchase something whereby the funds can not be paid by you upfront.

If payday loans and traditional banks turned you down, instalment loans may be your safe alternative. Nowadays it is not easy to get a loan from your bank and the process can take longer than you planned before. This is the case especially if your credit is less than desirable. The approval rate of installment loans is high and the approval period is shorter.

Instalment loans are helpful especially for borrowers with poor credit who needs cash urgently. This type of loan provides more money than a payday loan. Payday loans may offer a fast solution to your money problems but the lender expects the repayment quickly and the interest rate is often high. In addition, late payments come with harsh penalties.

This is not the case with instalment loans. The annual percentage rates and effective annual rates are lower than they are in payday loans. This means that repaying the loan is easier with convenient payment options.

When you have a poor credit, instalment loans are important for you because you can ask an extended period of payback. This way you can manage your budget without pressure. The lender can deduct your loan from your weekly paychecks so that you will not have missing and late payments.

Instalment loans are important when financial emergencies happen, you want to repay the loan weekly, traditional banks did not approve your application for a loan, the debt on your credit cards is adding up, and your bad or no credit stops approval from the lender.

Instalment loans are preferable to credit cards and payday loans because you have more time to repay the loan. This loan can even boost your credit score. With the instalment loan, you set your payment plan. You can decide to repay your loan according to your budget and on a long period without having to empty your bank account.

Instalment loans are important if you want to keep your freedom in your repayment. When you face an emergency, an instalment loan may be your better option because you can get your cash the same day that you applied for the loan.

For a payday loan or a short term loan, contact us for more information.