Other Solutions Aside from Payday Loaning

People are very intent in borrowing from payday loan stores and companies that they sometimes fail to connect the gap in their finances. Household income can never be maximized because before looking for alternative ways to pay bills which are both easier and cheaper individuals would rush to the nearest payday loan store and apply for a short-term money loan.

According to Turn2us the Consumer Credit Counseling Service (CCCS) survey says that more than a quarter or 27 percent of those who take payday loans do not look for other solutions in getting money. And most of the individuals who are into pay day loaning are not checking their welfare benefits before they get loans.

Alison Taylor, the director of Turn2us says that challenges in financials can be very overwhelming for individuals and their families. People are hesitant to approach charities or get welfare benefits during hard times because they expect to have blunders involved with them.

According to survey 7.6 million people out of 13 million (more than half) are trying to get help from the government.Findings also found that more than half of those who have taken pay day loans regret doing so. 30 percent almost one third of the debtors have been financially worse because they took payday loans. 68 percent or two-thirds of those who took the payday loans in the past 12 months have taken more than just one. And 17 percent or one of six people has taken more than seven pay day loans.

Forty three percent of those who took pay day loans according to survey say that they needed the money before their payday. Twenty four percent say that they needed the money to pay for their basic necessities and by meals to feed their household. These respondents are those who are working full-time.

Instant Payday Loans: What You Ought to Know

Nowadays money is most essential in our everyday lives. It is very difficult to live an entire day without a single cent in your pocket. Every individual knows that it provides you with the power to buy what you want and what you are in dire need of.

If you are stuck in a situation wherein you are broke and you have a lot of bills to pay you may feel the need to borrow from a close friend or relative. However, when things come to worse and you have no one to turn to; then it might be wise to carefully consider engaging in payday loaning.

This can be the best solution for your liabilities payday loans are short term liabilities that only consists the borrowing of small amounts of money. But before you go on and decide to apply for this type of loan it would be wise to know how the business works. Your short term loan may only be less than $30,000 but the interest rates could be very high and can be the root of all the cause of supreme financial problems for you and your family.

If ever you need to get a loan then the best place to search is online. There are plenty of sites that have good and reliable market information about different companies that offer loans. These help sites may help you accumulate knowledge in how to instantly get loans for small amounts of money despite your credit standing.

Here is the list of guidelines you may find in the websites for potential payday loans:

a) payday solutions guaranteed for the United Kingdom;

b) how to actively find lenders that are trustworthy and stay informed;

c) the pros and cons of guaranteed payday loans;

d) how to successfully face and negotiate with the right guarantor;

e) the pros and cons of being a guarantor; and

f) information in how to accurately understand and use instant e-loans.

Freddie Mac’s Profit Increases, Taxpayer Funds No Longer Needed

Last Tuesday, Freddie Mac reported an increase in their profits for the second quarter brought about by the decrease in credit losses. The government-owned mortgage-finance company said that it does not need extra funds from the U.S. Treasury to remain solvent.

Moreover, Freddie Mac said that it produced $3 billion in profit for the months April to June, a significant increase from $577 million of net income in the previous period.

Freddie Mac, together with its bigger sister company Fannie Mae, was controlled by the government in the year 2008 following the increase in mortgage losses.

According to Freddie Mac, the loans that were issued from 2005 to 2008, which led to its substantial losses, were becoming a minor part of its portfolio. By the end of quarter two, the loans made up 28 percent of its single-family portfolio. Moreover, the delinquency rate decreased from 3.51 percent in March to 3.45 percent at the end of June.

Freddie Mac is obliged to pay 10 percent of the government loans as dividends every quarter, just like the way credit card borrowers make minimum monthly repayments. During the second quarter, the company’s income was enough to make a $1.8 billion dividend payment to the U.S. Treasury.

Since it was taken over by the government in 2008, Freddie Mac has taken $72.3 billion in taxpayer funds, and has paid approximately $20.1 billion to the Treasury Department. It did not need government funds during the first quarter of 2011 and three quarters in the year 2009.

Meanwhile, Edward DeMarco, the company’s director, believes that letting the companies write down loan principal would increase the cost of the taxpayer bailout. In the previous week, DeMarco refused the administration’s request to help homeowners by using taxpayer funds from the bank bailout program.

Both Freddie Mac and Fannie Mae purchase mortgages from lenders and resell them as securities for investors. The two companies, together with the Federal Housing Administration, offer funds for more or less 90 percent of all U.S. mortgages.

Guidelines in a Mortgage Loan Process

In the past few years, the mortgage loan process and procedural policies have been much more rigid, which is clearly brought about by the foreclosure crisis. A borrower’s financial records are thoroughly inspected to make sure the borrower is qualified in terms of credit score and that the procedures for various loan products are followed.

For products such as FHA and VA, the loan approval process involves sourcing the borrower’s funds. This means accounting for the borrower’s cash on hand and where it came from, including money for deposit requirements. For instance, FHA loans ask for at least 3.5 percent of the overall purchase price as a deposit.

While there are a few FHA loan products that do not have this requirement (i.e. purchasing a HUD-owned home), the majority of FHA loan products require at least 3.5 percent down payment.

The down payment can be in terms of “gift funds” from a friend or family member. In either case, affidavits must be signed by the borrower and the benefactor. The affidavits must state that the funds are not a loan, but indeed a gift.

In conjunction with the affidavit, a proof of funds or “gift letter” is also required by the lender from the benefactor. This is typically a bank statement that shows the money was from the benefactor’s account before making the gift and ensures it was not lent by another source. Moreover, the borrower’s bank statement must show a deposit entry for the same amount of the gift.

The borrower must always be aware of the requirements of the loan product that is appropriate for the purchase. Ask the lender to give comprehensive details about every guideline, and make sure to ask questions if there is anything you are not able to understand. More importantly, properly validate the source of your funds so that your transaction will be closed.

Is Applying for Payday Loan Online Safe?

If you need cash to pay off a small amount of debt then the easiest loan to apply for is a payday loan. Luckily, getting a payday loan online is not only easy but quick as well. If you need to pay an abrupt expense then you can log in a site and apply for a payday loan. However, security is a big question in applying for these instant cash loans in the internet.

Getting payday loans online can be safe, but it still ultimately depends on what company you are applying from. Many of companies would be very vigilant in keeping their data secured and would spend a lot of money to ensure that their business’ files are well kept and secured. But every borrower should be careful of a lending company that does not take security very seriously. If you want to know if the financial company you are applying for a payday loan is safe just be wary of the following things:

First, always look at the company’s Privacy Policy for their site. This would tell an applicant what information the company needs to collect, and if these information could be seen or viewed by other people.

Second, ask questions to a customer service representative about their site. Ask about the security measures they are taking and ask who has the overall authority in viewing the database and ask what happens to your information once you close your account with the company.

Third, check the applications of the site if it also safe. There should be a letter “s” after the “http” of the website address to determine if the site is secure. The website name should also have a yellow padlock symbol at the bottom right of the title page of your browser. These are indications that the site is encrypted and that it is has a secured system in transporting information to and fro.

Finally, if you are still not sure about the security of the site you have to investigate the company yourself. Search their company name in Google and check it with the Better Business Bureau. If the company does not have any customer complaints then probably they are worth a shot.