Should I Consider Payday Loans?

Short on budget? Are you considering what type of loan is best for you? If you are thinking of availing a payday loan, here are the things you should know beforehand.

What Is a Payday Loan?

These kinds of loans are a short-term financial solution that will be based on the check you can provide. Among all the other loans, this is the quickest and easiest way to get your much-needed cash.

However, of course, there are drawbacks when it comes to a quick loan. The easier you get the money, the higher the interest rate. In fact, some can even be charged up to 400% on top of your loan. With that being said, a payday cycle loan can be challenging to break.

How Does It Work?

Different banks have different processes when it comes to allowing a borrower to enjoy a payday loan. Generally speaking, it works by giving a post-dated check payable to the bank or lender amounting to the borrowed amount with interest and loan fees, which usually amounts to 15%. The lender may or may not verify your source of income, making it easier to get approved. However, you need a checking account and proper identification. Upon receiving the cash, the lender holds the check for a given period until the borrower’s next payday. As soon as the payday arrives, they will cash the check.

What happens if you do not have enough money in the bank to cover the loan? The borrower needs to pay the additional fee and provides a new check, or they can avail of a new loan to pay of the current one. And when this happens, you will be in a payday loan cycle, which is hard to get past through.

Despite its drawbacks, here are some advantages to look at:

1. They are accessible and are perfect for emergency funds. In fact, some lenders can even complete the transaction within 5-15minutes, and some can provide a decision within 24 hours. This is perfect if you need emergency funds such as hospital bills and other payable loans.

2. You do not need a lot of requirements. In most cases, lenders ask for the borrower’s proper identification, checking account, and proof of income. What they usually need is proof that you can pay off your loan in the given time.

3. As an unsecured loan, the lender does not have any hold on your personal properties, that is, if you can’t pay off your loan. However, what they have are your personal details, which come with your bank account. Still, they have the capacity to take you over to the court in the worst possible scenarios.


Understanding the Voluntary Liquidation Process for Insolvent Companies

Many companies face financial issues at some stage in their natural life. It would be best if you looked at the recent liquidations of some of the high street’s top shops. While voluntary liquidation may seem bleak, there are still opportunities for company directors. If you are in a dilemma with your company’s liquidation.

For firms facing significant cash flow problems, liquidation can become a genuine threat. There are various procedures for liquidating a firm: voluntary and compulsory. A licensed practitioner brings the third sense to the process, making it easier and less stressful. The following is a guideline to the insolvent liquidation process:

Statutory Declaration of Solvency

A firm may be wound up voluntarily under the control of its members only if a ‘Declaration of Solvency.’ It comprises of a statement of its liabilities and assets. It is made by the majority of the company’s directors within five weeks, immediately preceding the passing of a resolution to liquidate. What must be sworn is that the company can pay its debts in full with interest at the official rate within not more than one year.

Pre-appointment Challenges

Before any appointment, the firm’s representatives and the nominated liquidator compare the actual position of the company to its solvency. The initial requirement is an up-to-date list of the company’s assets and liabilities. If the company has ceased to trade, the file should be prepared up to the date of cessation. Professional valuers may need to be instructed to establish accurate asset valuations and enable comparisons to the balance sheet. Full and precise disclosure must be provided to the liquidator, as an error on solvency can lead to criminal penalties for the directors and will impede an MVL.

The Appointment Process

Once established that the directors can declare the company’s solvency unless the company’s articles provide otherwise. The firm convenes an Extraordinary General Meeting at which a special resolution is required to place the company into MVL. The meeting scheduled within 14 days’ notice helps in the passing of particular decisions. The EGM cannot start at short notice without first obtaining the requisite consents. Once the meeting takes place and resolution passed, a notification of the passing of the latter is filed at the Registrar of Companies and eventually published.

a home with a large yard

How to Manage Your Budget for Home Maintenance

Purchasing a home is a big investment that needs to be executed well and carefully. However, unlike any other types of investment, it requires homeowners to continuously pay for home maintenance projects. Unforeseen damages and disasters are also the reasons why budgeting monthly expenses for maintenance is vital. Of course, the presence of service companies around can be such a big help. However, their presence will be useless if you fail to manage your monthly budget well.

This article discusses several things you need to know about managing your finance well for home maintenance projects. You may not be using the money every month, but just like what a wise man says, it is better to start doing it now than having to regret your poor life choices later. If you are currently having similar issues related to your home and financial state, below are several tips you can follow.

The One-Percent Rule

As a big investment, you need to do something to ensure that everything is going well, including your home maintenance and repair costs. Experts suggest that you keep at least one percent of the total house price when you bought it for care and repair purposes just in case something unexpected happens. Even if nothing happens until three months after the purchase, you still need to keep the money for the next care routine, such as plumbing, sewer, and roofing. In short, it is a kind of financial planning that you need to plan ahead of time, even before you buy the house. This way, you can prevent bad things from happening, including having no cash to cover the expenses.

Automatic Transfer

Another way is to set up an automatic transfer to another bank account for maintenance purpose. For this method, you will need another bank account. This way is especially effective for those people who find it hard to spare money at the end of the month. Thus, the best way to do it is to automatically take the money right after payday. Note that the money collected will not be used every month. However, it will be a valuable source of budget whenever you need to make several home improvements.

Budget Allocation

The last thing you can do if none of the above methods work for you is to cut down on other expenses and start saving for home maintenance. It sounds extreme, indeed, but it is a better option rather than having to postpone the projects and wait until you have collected enough money.

credit score

Bad Credit: How You Can Qualify for a Loan with a Poor Credit Score

Loans have turned out to be a savior for many who usually find themselves in difficult financial situations. You might find yourself in a position where you will be required to pay for something or finance something when you have no money at all. Loans can be helpful in such a situation. There are several lenders giving out cash in the form of pikalaina or other normal loans.

You should try them out to see if you can get some cash to salvage your situation. Online lenders have also become common in this day and age, thanks to the availability of smartphones and easy access to the internet. You can now borrow money from the comfort of your home. This is something that has helped bring about some convenience to many, different from the conventional methods where you have to walk from one spot to another to apply and follow up on your loan.

Something you should understand about borrowing is that you will be required to pay the amount with some bit of interest after a certain period. Not complying may see you get blacklisted and you will not be able to access any loan. There are credit bureaus that usually follow up on such. You should not worry because there are specific ways you can get loans even with a poor credit score. Here is how you can qualify for one.

Present a Guarantor

Some lenders will require you to present a guarantorcredit report to ask security in case you default the borrowed loan. They will be held responsible if you fail to make timely payments or make none at all. You should look for someone stable to act as your guarantor.

Try Payday Loans

Payday loans are also another option for those who want to get some financial aid with a poor credit score. Most lenders offering it will require your employment information and other personal details which will make you eligible for your loan. With such information, they can get back their money in case you default.

Improve Your Score

You should work on improving your credit score so that you may opt out of your poor credit score. Visit the different credit bureaus to clear your name and pay the amount in dispute. With time, you will improve your score and get other loans. Start making timely payments when you get other loans even on bad credit.