How to get out of payday loan cycle:

A payday loan, often known as a check or cash advance is a short term loan intended to provide sufficient funds to muddle through until the next payday. Although helpful and convenient in theory, payday loans come with a substantial levels of service fees. In fact a typical payday loan payment will cost about 25% or more of the loan amount in installments, it means that in financial terms the annual interest can be astronomical. Borrowers repeatedly find themselves knotted in the wicked circle of using much of their paycheck to pay the fees, only to have to borrow more money from payday lenders.  There are ways to escape the cycle by eliminating the debt to payday loans:

Step 1

Calculate how much you owe.payday-advance-post-dated-checks-cashed-1057118-1279x1871

Gather all documentation of your payday loans and total them.  Once you are able to find an exact figure, now you can be on your way to finding the means to remove it from your budget.

Step 2

Earn more money to pay debts yourself.

You can choose to fine additional work, start a profitable hobby as selling artworks, holding a weekly garage sale or ask family and friends to donate to your funds. If you combine all four, you will have even more financial power.  Allocate all the extra income to pay your debts; start by paying smaller debts so you can accumulate sufficient funds to pay the larger debts. Continue reading How to get out of payday loan cycle:

Actual free credit reports:

A good friend of mine recently asked me what was a credit report and how he can get an actual free credit report. My friend has a doctorate. He is a smart and experienced guy.

If he was asking me this question, he may not be the only one with doubts.So I contacted the people of My Fico to have a chat about scores and credit reports.

rating-1465012-1279x1702Credit Report:

Perhaps the first thing to know is that a Credit Score and Credit Report, are two entirely-different things. Your credit report shows you the raw data, while your credit score is the translation of these data into a three-digit number, using one of the dozens of credit scoring models.

The representative of My Fico compared this to prepare a meal. The credit report is its raw material, the scoring model is your prescription, and the three-digit number as you get credit score is the finished dish.

The three major credit reporting agencies are: Experian, Equifax and TransUnion. Each one of these credit bureaus maintains a separate credit report for individuals. Every time you see your credit score it comes from a report by one of these agencies. No combined results it’s based on data from all three.

It is advisable to request your credit report from each agency once a year, to see your credit. This also gives you the opportunity to review and compare your credit reports for errors. It may be a surprise that you could find a different score from the three agencies, and this is due to differences (or errors) between your reports. Continue reading Actual free credit reports:

Tips to increase credit score:

Your Credit Score affects every important part of your financial life.  Some employers check it as part of a background check for a new employee, to see how responsible you are.  The owners want to see your report and credit score to know whether or not you pay the rent on time.  A good credit history is a necessity for any large loan such as a home or an auto loan.  And your credit score affects the price you’ll pay for auto insurance as well.accounting-761599_1280

If your credit is not in the optimal range of scores, some simple steps are recommended to get there:

◾ Use your credit cards sparingly, perhaps to pay some living expenses, such as a fuel tank or buying food.
◾ Never keep debt at the end of the month, it represents more than 15% of your total credit amount approved.
◾ Pay each card in full each month.
◾ Never miss the deadline of your card for payment.

If you follow these steps, it will not cost anything to increase your score, and you can build a great credit rating in the short term.  You can also apply and qualify for credit card companies with rewards programs or cash incentives.  However, if you ever had a large debt on your cards or you feel the urge to spend more every time they increase the limit of any of your credit card, then I would not recommend this path of action. Even the greatest credit card offers can be a slippery slope for people with a mentality of spending.

If your credit is in bad shape, do not despair.  There are also suggestions to flip terrible credit scores:

Continue reading Tips to increase credit score:

Common causes of denial of loans and credits:

Common causes of denial of loans and credits:Loan Application

The refusal of credit, which is also sometimes called “the rejection of credit” is an incident in which a person or a company is not approved for requested credit line or loan. There are a number of reasons why a line of credit application may be rejected. The most common causes of refusal of loans and credits are lack of credit history and bad credit history. The lack of credit history is a situation where a person has never held a credit or have had a very limited line of credit.

Refused credit can occur if a person with no credit history request a credit line or a person with a limited credit history has applied for a credit line that will make large amounts of money or credit available.

A bad credit history can also lead to the denial of credit. A credit history can be considered poor by a credit institution if one has been delayed on payments, non-payment of loans or have declared bankruptcy.

There are a number of other factors that a credit institution can review, but these are the keys that leads to the denial of credit due to bad credit score. Continue reading Common causes of denial of loans and credits:

Saving Money Tips on Airfare:

Saving Money Tips on Airfare:image

One of the most frequent frustrations when you are planning a trip and trying to save money is when you put in the spotlight a ticket for days or weeks and when you’re ready to buy, they suddenly raise the price. That’s when we complain of not having done the reservation earlier, when the price was still low and was on the days we had marked for travel. Continue reading Saving Money Tips on Airfare:

Cheap Christmas ideas:

Discover how to make your Christmas feel like a million dollars with little money by following these simple tips.image

-Edible Gifts. Bake with your family delicious desserts … and give them as a gift!

– Letters to the former. Remember the paper and pen? Put them to work! Hand write letters or notes to your loved ones; frame them to give them a special touch. Do not forget to use a nice pen!

– Homemade. Do you have a special talent? Gift this! Sewing, embroidery, knitting, cooking or doing a craft will be perfect for your family give him love. Continue reading Cheap Christmas ideas:

How to budget a household:

What is budget and why putting together a budget is important:

The budget details all household income and expenses. It is a very effective way of knowing how the money was spent, how much is needed for the satisfaction of basic needs and how income should be distributed to make it possible to fulfill all the obligations and achieve the important goals. Following are the steps of how to budget a household:

Your budget, plus help you identify your expenses and control your finances:

• It will help avoid impulse spending
• The guide to decide what can and cannot buy
• Allow you to keep track of how you spend your money
• Household budget will help create a savings plan
• Contribute to protect against the financial consequences of unforeseen events

Download free calculator:Household monthly budget calculator

The first Budget:

It is very likely for the first time you assemble a budget will be surprised with the amount of expenses facing your home every month. This realization is best to do as a family, thus each person can see what approach can work with maintaining the balance of the household bills.

Classifying expenditure:image
Classify your expenses and identify those that are easily reducible to see what you can save.
We suggest you classify structural or compulsory costs (rent, electricity, water, etc.), costs of basic necessities (food, basic clothing, transportation, etc.) and discretionary costs (entertainment, tourism, no basic clothing, etc.)

Structural costs are directly related to lifestyle, are difficult to change at short notice.

As for the necessities, you can decide when and where the purchase is made. It is recommended that, besides taking note of them, choose a single payment and that is easily maintained. This will buy more easily and increase control over these expenses. Pay with one credit card and making a payment on the payment date can be used to meet the expenses list and have a better control. Easily you can identify “where the money is going”.

Regarding discretionary spending is also advisable to select a single payment as a way to maximize control. Payment by credit card or debit card has the advantage of having a limit for this type of expenditure. This expenditure can be reduced if the first aims to save or going through adverse or uncertain circumstances. Continue reading How to budget a household: