Living Without Credit

How to Survive the Economic Downturn Without Generating More Debt!

Living without credit used to be a lifestyle choice. Now it’s something we’re all going to have to get used to.

Life without credit

Because the days of cheap and easy credit are gone. If you’ve got this far without racking up a huge pile of debt on credit cards, store cards or personal loans then well done – your frugal habits in the good times will stand you in good stead in the coming lean years. For the rest of us, well – it’s going to be a bit of a culture shock!

Here are just a few tips on how to adapt to a credit-free lifestyle:

  1. Pay for things you want in cash

As obvious as it might sound, this is the most important one of the lot. Make it your number one rule to not put things on your credit cards or otherwise borry money to pay for them. If not having it isn’t a matter of life or death then wait until you have the cash to pay for it. It’s amazing how expensive certain ‘small’ luxuries seem when you part with greenbacks to get them, rather than put them on a card.

  1. Pay for the things you need in cash

There are going to be things that you don’t want to pay for at all. Repairs, school fees, dental work and so on. You know they’re going to come along when you least want them so try and be prepared as much as possible. Start by putting a few dollars every month into an emergency fund. $1,000 is a good starting point, but you really need about 3-6 months worth of living expenses put by to be able to take whatever life throws at you comfortably.

  1. Make savings wherever possible

Go through your household expenses with a fine tooth comb and look for places to make savings. Check out different telephone, gas and electricity companies. See if you can save a few dollars by switching to cheaper brands. Even the most frugal household can usually save upwards of $100 every month by clever budgeting. That $100 may feed your emergency fund until you’ve built it up to a comfortable level and then you can divert it to something else that you need or want – like saving for a new car or a holiday.

  1. Travel without your credit card

If you’ve got credit available, you’ll spend it. But it’s sometimes difficult to travel without Mastercard , Visa or Amex. So ask your bank for a Debit Card instead. This will only let you spend as much as you have in your accout, so you won’t come back from a fantastic break to a whole pile of worry!

  1. Consider your housing situation

As the credit crunch bites in, are you living in a place you’ll be able to afford? Would it make sense to rent somewhere cheaper while house values are tumbling and save money for a deposit so you can buy a new home cheaply a bit later? Don’t make these decisions lightly – be sure to get some proper advice, but do consider this: Do you really want to be tied into a massive mortgage on a home that’s worth less than you borrowed to pay for it? The way things are going, this is a real possibility.

Experts are predicting the most severe recession that most of us have ever seen, or ever will see. If you want to come out the other end in good financial shape then now is the time to make changes. You’ll learn habits that will help you manage money properly for the rest of your life and pave the way to early financial freedom.

What to consider before opting for the online loans?

When you are seeking for an online loan, then you are actually seeking a loan from an organization that you don’t know completely. And this actually leads to an unsecured condition. Now it is also true that a genuine online lending company is not a part of such unsecured condition. And another fact is such unsecured condition is very rare. The increasing demand for the online loans provides you one mental satisfaction that through the proper way you can avail a secured lending service. But still, there are some important factors that you should consider before applying for online loans. And those factors should be addressed properly so that the clients can get a clear picture about those important pictures of the online lending service.

what-to-consider-before-opting-for-the-online-loans

The factors are:

Details of the lending company:  The most important factor that you should know is the actual identity of the lending company. If you search online for a lending company, you can find a huge list of the names of the lending companies. And most of them claim to offer you the best online service. But previously some unwanted incidents happened where some companies provided false promises. So it is very necessary to know the actual ability and the genuineness of the company. Remember, a genuine company always provides you the best service while providing the online loans.

Interest rate:  When you are availing online loans from a lending company, then it can be possible that the company demands a higher rate of interest from you.  Even it may be that you have to keep any asset as collateral. But the risk factor remains here because there is no guarantee that after paying the loan completely you can get back your asset. So be very careful about the terms of the rate of interest. Try your best to avail a fixed rate of interest, and if you have to avail a variable rate of interest, then must read the detailed information regarding the rate of interest properly.

Try to avail the best deal:  Now when you are talking about the best deal regarding the online loans, then you are actually indicating the lowest rate of interest. Remember, a lower rate of interest always indicates the benefit that you can actually gather. With a lower rate of interest, the total payable amount must be very low compared to the average total. With this don’t forget to check the tenure of the loan. Try to opt for flexible terms and conditions, so that you don’t need to bear the pressure of the total amount.

You must check your credit score:  It is essential to check your credit history before applying for online loans. Make it sure that your application for the online loans will not be rejected even if you have a lower credit score. It happens several times that, persons with lower credit score are not allowed to avail online loans. So make it clear to yourself that you have the option to get the online loans.

So the factors as mentioned above are truly very important, and they should be considered before applying for online loans.

Financial Difficulties

Financial DifficultiesIf you are experiencing serious financial difficulties, you might have considered taking out an overnight cash loan. There are many reasons that an overnight cash loan might be necessary – some people take them out because their car has broken down, or a loved-one is sick and they need to pay for prescriptions. They might take one out to cover a sudden, unexpected bill, or because they have changed jobs and their pay date has changed, leaving them short for general expenses. These are all perfectly good reasons why someone might need to take out a short term loan.

However, it is important to remember that these loans are short term only. They are emphatically not to be used for things like vacations or general living expenses under normal circumstances. The interest rates that are charged by this kind of lender are very high, and this can put you in a very difficult position, because you will not only have to pay back what you have borrowed, but the interest too – and that means that when you do get paid you will have less money left over.

What a lot of people don’t realize is exactly how easy it is to fall into a trap with this – they borrow more to make up the loan payments, and end up owing more and more money every month, until they are not able to afford the repayments at all.

Short term loans offer a valuable service for a certain part of the population – people who would otherwise not be able to access credit at all. However, they are only useful for emergencies. You should not rely on them for day-to-day expenses, because that will leave you in an incredibly difficult situation to get out of. It is better to try to find ways to reduce your spending, and hopefully put yourself in a stronger financial situation, so that you are able to live comfortably and access mainstream credit. While you are working on this, talk to your bank and to local credit unions and see if they can help you with more friendly, low interest options for borrowing small amounts of money. This will help you to build up a line of credit that you can rely on in the longer term, and could be the lifeline that you need for financial stability.

Overnight Cash Loan

Overnight Cash LoanObtaining an overnight cash loan is easier than you think. You can obtain one of these loans even if you do not have a good credit score and have been turned down for loans before. Keep in mind that this type of loan is best used to cover emergencies and unplanned expenses. You can for instance apply for a cash loan if you have bills that need to get paid right away.

The best way to obtain a cash loan is to apply via a lender who specializes in offering this type of loans. Banks and other financial institutions usually offer other kinds of loans that require you to go through a lengthier approval process. Most banks will not approve your application if you do not have a good credit score or cannot prove that you have a regular source of income.

Getting an overnight cash loan is possible as long as you can prove that you will be able to pay the loan back on time or can use an asset as a collateral. Some lenders will approve your application if you can provide them with a proof that you are gainfully employed and that your paychecks are enough to cover the monthly payments on your loan.

It is also possible to obtain a loan by using an asset such as a vehicle as a collateral. This is a good option as long as the value of the asset corresponds to the amount you want to borrow. You will have to provide the lender with the title of your vehicle in order to qualify for a loan.

It is important to do some research before applying for a cash loan. Choose a lender with an excellent reputation, find out more about the requirements you have to meet and make sure they will review your application overnight.