27 Jan
2010

Payday loans are a great option to have in a financial emergency. They are a fast and hassle-free way to get cash in your hands when you need it. However, like any product, they can be abused. Some customers get in over their heads with payday loans by purchasing multiple payday loans and rolling loans over rather than repaying them at once. This leads to huge debts. If you need to dig your way out of huge payday loan debts, here’s how:

1) Avoid payday loan disaster in the first place. Choose a legitimate payday loan lender and only take out loans you need. Have a plan in place to pay off your loan at your very next paycheck. If you need lots of time to repay a loan, you likely want a line of credit, not a payday loan.

2) Talk to the payday loan company as soon as you find you are going to be late. If you know you can’t pay off your payday loan on time, talk to your payday loan company. If you have dealt with a larger, legitimate company, they may have other longer-term financial products that give you more time to pay without huge fees.

3) Get financial counseling. If you are living paycheck to paycheck and are dependent on payday advances, talk to a qualified financial counselor. This person can help you develop a debt repayment strategy, a budget, and other tools that can help you.

4) Slash expenses and increase earnings to pay off payday loans faster. To get out of debt, cut out non-essential expenses for a month or two and consider a temporary second job or longer hours to earn a few extra dollars in order to pay off your debt.

27 Jan
2010

It’s a terrible position to be in: you’re in another country (maybe one where you’re not 100% confident with the language) and you find your money or wallet gone. Or, maybe you’re in that same foreign country and you suddenly find yourself faced with a medical emergency that is going to take some money. At home, you could head out to get a personal loan, credit card cash advance, or payday loan. What do you do when you’re far from home?

It pays to plan in advance. Travel insurance can take care of many of the emergencies which can drain you of cash overseas and insurance provides you with peace of mind as well. Another good option is to travel with travelers checks. If your travelers checks get stolen or lost, your company or bank will often replace them for you. Of course, make sure you check the replacement policy to ensure your bank offers this type of protection.

If you are overseas with no insurance and find yourself stuck, hopefully you’ve read our guide to travel emergency cash. If you haven’t, keep in mind that you can often get a credit card cash advance or online payday advance, even overseas. Just make sure you use a secure computer to apply and you’ll have cash in no time.

26 Jan
2010

Pick up a penny, put in your pocket. Repeat a million times and you’ll have $10 000. Many people just toss pennies away or leave them on a dresser drawer, but pennies are still money. Every once in a while, you can read about someone who has amassed large amounts of money by collecting pennies. Some newspapers, especially, love to print these stories.

Is it really worth grubby fingers to pick up a few pennies?

The answer is often yes. There is just no point in throwing away money, and any amount invested will grow. To get more cash, though, do the following: each day, take out your small change and put it aside in a jar. Once a week or once a month, take it in to the bank and deposit it in a savings account or emergency fund. In a year, you’ll have a good sum you can use to pay off personal loans or put towards investments. Putting aside all your small change is often a much faster way to save than focusing on pennies and most people don’t miss the small change in their pockets.

26 Jan
2010

Big investment mistakes could mean big personal loans, lost cash, and even bankruptcy. Are you making these big mistakes?:

1) Not investing at all or investing too little. This is the most common mistake and one that is easily fixed. If you are worried about risking your money, invest in a low-risk option – such as CDs – but do invest your money so that you will have money in an emergency or in retirement.

2) Not doing research. If you find an investment opportunity, make sure that you research it carefully. Is it legitimate? Where is your money going and can that person or company be trusted? How have other people done with this investment? How much can you expect to make? The more you know, the easier it is to make a good decision.

3) Not considering risk and return. Generally, the higher the risk, the higher the potential return. The smaller the risk, the less cash you stand to make. Consider how comfortable you feel with risk and invest accordingly, or you will either worry a lot or be disappointed by small returns.

4) Not diversifying. If you have only stocks, you will feel panic when the stock market is suddenly shaky. To protect your money, invest in a few things – stocks, retirement funds, and CDs, for example. Make sure that you have some higher-risk investments and some surer, lower-risk investments as well.

26 Jan
2010

Con artists love the Internet; the web provides access to millions of people around the world (and their money) as well as a degree of anonymity. You can avoid such fraudsters when surfing online with these simple steps:

1) Look out for special offers. Some people have had to rely heavily on personal loans or have even had to declare bankruptcy due to special offers and opportunities they have found online. If an amazing offer comes your way through an unsolicited email or a website, check it out carefully. If it seems amazing and unbelievable, it likely is.

2) Look out for less than legitimate businesses online. You can get pulled in by payday loan scams, fake businesses, and more. Fraudulent online businesses will take your money and not deliver as promised. Some will even steal or sell your credit card information, so make sure you check to make sure businesses are legit before handing over your personal information.

3) Watch out for unsolicited emails. Some fraudsters send you emails that look as though they are from your bank or another legitimate business. These emails ask you to sign in on a specific page and enter all sorts of information — information that criminals can use to steal your identity and money. If you get any sort of email asking for your personal information, call the business the email is supposedly from and report the email.

4) Be wary of hackers and malware. Install the latest versions of firewalls, spyware protection, and antivirus protection on your computer to ensure that no one has access to your passwords or files.

25 Jan
2010

No one likes a whiner, but complaining intelligently makes you a better customer – and makes you better with money. If a product or service does not live up to your expectations, you are essentially wasting your money on it. By complaining and getting a refund or replacement, you get your money’s worth. Getting what you pay for is a good way to avoid wasting money. Complaining also offers the company important feedback, which they can use to improve their services or products.

Generally, you will want to complain starting from the bottom up. This means that you begin with the sales associate, waiter, or person who served or sold you the offending product or service. If this does not get results, complain to a manager or the director of the company. Contact your local Better Business Bureau if this does not produce results. If you used a personal loan to pay off a defective product or service, keep in mind that you need to keep pursuing this, as you are paying interest as well as the asking price on the product. However, a personal loan does give you leverage. You can threaten default on the loan, in some cases, if the company does not follow through and offer you help. If you paid with a credit card, your credit card company may allow you to dispute the charges. This can be a very effective way to get your money back or to get a replacement.

25 Jan
2010

Look around your home – is it messy and full of clutter? If so, that mess could be costing you serious money. Here’s how:

1) Lots of clutter makes it hard to stay financially organized. You can’t pay bills unless you can find them and it’s hard to find bills (or a place to pay them) if every area is covered with tons of stuff.

2) You had to pay for those items somehow. The more clutter you have, the more you have likely spent to generate all those things. Some people rely heavily on payday loans, credit cards, and personal loans because they have an issue with overspending.

3) One area of your life in disarray usually means other areas are also in disarray. If your home is in upheaval, finances can suffer, which can make your relationships suffer. Clearing up one area of your life, on the other hand, usually creates more balance and order overall. It may sound new age-y, but it works.

The solution is simple: get rid of the clutter. Set aside a weekend or a few weekends (one for each area of your home) to go through all your stuff. Toss out everything you don’t completely love or really, really need. Sell the rest at a garage sale and you’ll have cash to pay off some bills and personal loans.

25 Jan
2010

In the past, having a job meant just that: one job with a boss. Today, however, many companies are cutting back and instead of offering full-time jobs with benefits, many are offering part-time positions with no benefits. This has forced some workers to cobble together an income using two or more part-time jobs rather than one job. While this sort of non-traditional employment can pay the bills, it can also make lenders nervous. Lenders like to see lots of stability before offering a personal loan, and to most lenders, stability means a traditional, long-term job or career. Even if you are not in a traditional employment situation, though, there are things you can do to show your lender that you’re ready for the responsibility of a secured loan or unsecured loan:

1) Keep other areas of your life stable and traditional. Try to stay in the same jobs for a while to show stability, for example. Remain in the same apartment for a while, or better yet, buy a home to have some assets (assets reassure lenders). Keep the same accounts over long periods of time and pay down debts.

2) Make your credit rating as strong as possible. A little credit repair can go a long way towards convincing lenders that you are responsible about money.

3) Be prepared to show proof of income. If you can show lenders that you make a decent living and make regular, predictable paychecks, you will have an easier time getting a loan. You may need to submit additional documentation to prove all this, however.

24 Jan
2010

Getting organized often means more money. If you don’t believe that, consider this: how often have you had to pay late fees or penalty fees because you forgot to pay a bill on time? The truth is, staying organized ensures that you pay everything on time, keep your credit score good and are able to capitalize on opportunities. Here’s how to stay organized in your financial life:

1) Have one place for all your financial “stuff.” You might choose to keep everything in a  box, in envelopes, or in a filing system, but it’s important to have one place to store everything to do with your finances – including receipts and bills. Make sure your system allows you to keep paid bills, unpaid bills, tax information, banking statements, and investment stuff separate, so that you can always find what you need.

2) Use a planner or organizer to remind yourself of financial dates, just like appointments. If your credit card bill is due on the 20th, mark “pay credit card” on your calendar, where you will see it, a few days before the 20th.

3) Automate what you can. Consider having bills paid automatically through your banking system or credit card. This way, you never forget. Consider having savings automatically deducted from your paycheck. The less you have to do to keep organized, the easier it will be.

4) Do a thorough sweep of your finances at least every three months. Check your credit score, calculate how much you owe in personal loans, evaluate your dependence on payday loans, decide how well you are doing at budgeting, and generally set aside time to get in shape financially.

24 Jan
2010

We discussed yesterday why the idea of the starving artist is cliché but many creative types – artists, writers, performance artists of all kinds – wonder how to make more money doing what they love. There are many ways to get solvent while staying creative:

1) Start seeing finances as part of your creative work. Get professional financial advice if you need it, but start seeing your money management as a big part of your career success. Make time for money and devote energy to it.

2) Use your right brain as well as your left brain. Be as creative as you like, but also use the logical part of your mind to manage your finances. This means keeping track of expenses and income, paying bills on time, and budgeting.

3) Be prepared for feast and famine. For many people in the arts, money tends to come in fits and spurts, especially at the start. A good run or a sudden grant can be followed by some lean times when few new opportunities present themselves. Having a very generous emergency fund and a financial plan is a must to maintain financial balance.