5 Thing to do Before Applying for a Lån

Financial woes strike us when we least expect, leaving us wondering what to do to get ourselves back on the straight and narrow. Luckily, loans are available, and provide an option that can be used to pay off credit card debt, help you over unexpected expenses, and more. Many types of loans are available, making it easy for most anyone to get money when it is needed. But, if you need a lån, do not complete an application until these five steps are done. It’s important for you to complete these steps if you want a loan that is going to benefit your situation.

1.    Understand Loan Types

There are many loan types available these days, so compare your options before you decide which to use. Even if you have bad credit, there might be a loan that can benefit your situation. Before you apply, learn the pros and the cons of each type.

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2.    Credit Score

Did you know that a free copy of your credit report is available from the three major reporting bureaus each year? After these free reports, it costs only a few dollars to purchase a report. Keeping a close eye on your credit score is important because many loan lenders use to determine your eligibility, and you want to spot errors and take care of problems quickly.

3.    Compare Options

Don’t  complete applications with every loan lender that you find, and do not rush into the process and choose a lender before you’ve compared. Spending a few minutes of time comparing the options makes it easier to find a lender that won’t let you down.

4.    Learn How to Improve Your Financial Situation

Many people try to make it through their financial need and not look back at that situation ever again. But, instead of doing this, why not learn how to improve your financial situation so you are never in the same situation in the future? There are a few simple ways to improve your financial situation, and taking advantage of those methods is highly beneficial.

5.    Look at the APRs

The annual percentage rate is the amount of money the lender is charging you to borrow cash. Some providers offer low APRs others charge excessive amounts. Before you get a loan, you should always compare the APRs offered, and look for a lender that offers the lowest rates for your needs. When you are comparing lenders, make sure that the APRs offered are also compared during the process.

Loans make it easy to get cash when you are in need, for any reason, and with easy repayment terms. The money can be used for any purpose that you see necessary, and repaid over time. Loans help many people, and they can help you just as much as they have these other people. Complete the five steps above, and you will have an awesome loan provider in front of you.

Steps to Follow if You Have Fallen Into Debt

If you have fallen into debt you are not alone, there are millions of people around the country that are facing massive debts. While fallen into debt is quite easy given all of the cheap credit that is being offered it takes discipline and a plan if an individual wants to get back on their financial feet. These steps are going to help steer you in the right direction.

Itemize Your Debts

In order to get out of debt you first need to list all of the debts you have, amount outstanding and the interest rate being charged. If you overlooked this step then you will never get out of debt because you do not know who it is you owe! When you have established who you owe and the amounts outstanding then you can come up with a plan of attack, if you do not take the right approach then you could end up slipping even further into debt.

Budgeting is Key When Trying to Get Out of Debt

Most people do not like to talk about budgets but without it you would have no way of knowing whether you are getting out of the hole or digging yourself deeper into it. What you have to do is list all of the sources of income you have then write down all of the fixed expenses like house, car, taxes in one column. In another column you have to list variable expenses like food, entertainment, and clothing, you will need to trim your variable expenses while at the same time increase your income by either working more overtime or taking on a second job.

Start by paying down the smallest debt first until it has been paid off then use the money you would’ve applied to that smallest debt to the next debt until it has been paid off. This is commonly referred to as the debt snowball effect but it is a very liberating feeling to pay off a debt knowing you never have that burden on your shoulders again. The feeling of being debt free is one of the best feelings a person can have and you too can relish in the experience.

Staying Out of Debt

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After your debts have been paid off and you are starting to get back on your financial feet you may be tempted to indulge and go on a vacation or make a large ticket purchase. Something that you should do moving forward is to only pay cash for things that you want. The benefit of paying with cash is you never have to worry about making payments and you will actually feel the emotional pain when you hand over the bundle of cash to settle the transaction. When a person uses a credit card or pays installments they do not feel the discomfort that would be felt if they had to pay with cash. This approach will also teach an individual financial discipline. By only paying with cash you cannot go into debt since you are not able to spend what you do not have.