• amortized loans
    Amortized Loans

    Top Facts About Amortized Loans

    car loansAn amortized loan is when your monthly payments are the same for the entire period of the loan.

    Every time you make a payment a portion of your payment goes to interest and a portion of the payment will go to your principal balance.

    You will find that the majority of the payments you make at the beginning of the term will mostly go to interest and your principal balance will be lowered very little.

    As time goes on and you make more and more payments you will begin to see more of your payment deducted from the principal.

    In fact, you can order an amortization schedule which will outline the breakdown for each payment all the way through the entire loan. It will show how much goes to interest and how much goes to the principal balance.

    This can be done for a mortgage loan even if it’s done for a 30-year mortgage. All 360 payments will have the breakdown.

    Two examples of amortized loans are mortgage loans and auto loans.

    If you want to pay off an amortized loan faster than the stated schedule you can make more than your standard monthly payment.

    If you do this, especially with a mortgage it is a good idea to send a note explaining that the extra payment should be applied towards the principal balance. You should also be aware of the fact that if you want that payment to go to the principal balance it will not advance your payment due date.

    mortgageFor example, if you make a payment for your December payment which is due on the first, well now you are now due for January first of the next year.

    Now let’s say you send in a payment and you request to have that payment applied to the principal balance only you will it will not count as your January payment and as a result, you will still be due for your January payment.

    So you cannot have a payment reduce your principal balance and at the same time advance your due date.

    Paying additional payments to the principal in this manner can work in your favor. You stand to save thousands of dollars in finance charges by paying off early.

    Depending on the situation you could cut eight to ten years off of a mortgage loan. That additional money you save on a monthly basis by paying off your mortgage early could be used to invest or save or pay other bills.

    Learn more here – https://www.investopedia.com/terms/a/amortized_loan.asp

  • Choice

    Which Short-term Loans To Get and How To Take It?


    Short-term loans is a type of credits. There are different varieties of short-term loans. For example, some of them are designed for private businesses and self employed individuals. Yet, the reader is probably most interested in payday loans. The amount of a micro tick is considerably smaller than other crediting options. This is true especially when it comes to payday loans. For example, a micro tick typically deals with sums ranging from as little as $100 to as high as $1000. The average amount of a micro tick in the United States is $450. The period of a micro tick is also very small. For example, the maturity period of most short-term loans varies from two weeks to three months. In other words, it is temporary financing.

    Know Your Needs

    Probably, the most difficult decision you will face when taking a micro tick is deciding which type of a micro tick is the most relevant to you. If you are a small business owner or self-employed and want to borrow money for that purpose, think about applying for business cash loans. If you are an employee or just need money for personal use, just apply for a payday loan.

    How To Get A Short-term Loans

    If you want to take a short-term loan for a small amount, you should consider payday loans. If you are an entrepreneur and want to finance your venture, please consider short-term loans for small businesses. The best micro tick option when it comes to payday loans can be found online. However, it you do not trust the Internet, you can still borrow money at a brick-and-mortar store. Take a look at the following instructions as they may increase your chances of borrowing money.

    • Fill in the application form.
    • Provide necessary documents, such as ID, passport, driver’s license.
    • Sign the contract.
    • Get paid in cash or check bank account.
    • Pay attention to maturity period and the amount you owe.
    • Before due date, return the sum you have borrowed plus the interest.

    The interest rate on short-term loans for small businesses is usually not high, namely 5 percent. When it comes to short-term loans for individuals, the annual interest rate ranges from 150 percent to 500 percent. However, since the average period of a micro tick is less than a month, this high rate is neglectable and an individual taking this type of a loan will not experience such a high interest rate.

  • Typical Borrowers

    Payday Loan Users: Who Are the Typical Borrowers?

    Each year, as many as 12 million Americans sign payday loan agreements. With the ubiquity of the internet, short-term loans, especially payday offers, have become accessible like never before. So, who are the typical applicants, and how do they usually spend the borrowed money?  

    First and foremost, payday loans were devised as a form of emergency financial assistance to individuals who are short of cash. Whether it’s unexpected medical expenses or utility bills demanding urgent payment, such credits enable you to pay your debts quickly, avoiding mounting overdraft fees and penalties. In essence, Internet access and a bank account are all you need to apply, as your identity details are verified remotely. Moreover, eligibility requirements are relatively simple, as no collateral is necessary. So, who are the most typical borrowers?

    Naturally, most often, these are citizens with lower income, for whom unexpected costs are difficult to cover. As concerns household income averages, those making less than $40,000 per year (most commonly, $15,000-$25,000) are almost three times more likely to apply. These people often struggle to make ends meet. Due to the simplicity of requirements, they may have little or even zero credit history (borrowing for the first time), and no collateral, which would make securing a conventional long-term credit highly improbable.

    Banks tend to view such applicants as risky, refusing to help them cope with difficult circumstances. Payday lenders, on the other hand, may still give these people a chance. Their services make it possible for millions of hard-working citizens to build up or improve borrowing history and resolve financial problems.

    The Characteristics of a Borrower

    Demographically, urban residents aged 25-49 are said to use payday lending most often. These are active internet users who willingly take advantage of online borrowing. Geographical coverage is linked to local legislation differences since short-term loans are available in some but not all US states. Moreover, state laws determine possible conditions of agreements, capping the maximum interest rate and/or the maximum loan amount, extensions (rollovers), and other charges.  

    Despite the original idea behind payday loans (short-term cash advance until the next paycheck arrives), some borrowers may use their money for regular expenses, rather than emergency costs. Naturally, with timely repayment, payday loans may indeed be taken out repeatedly. A borrower may even avoid penalties for late payments by asking for an extension, lengthening the term with only service fees accumulating.

    However, payday loans are not a universal remedy against financial failure. Any permanent lack of money signals a need for more prudent budgeting and better employment conditions. When cash shortage is constant, borrowed sums may cover credit card bills or even other existing loans. For lenders, the latter is a red flag, making approval of new loans in the future less likely.

    However, when payday lending is used sensibly, it serves as a quick, easy and convenient fix for cash shortages. Here, regardless of your income, a payday loan is a wise choice provided that you study your agreement carefully.

  • Loans

    Identity Theft In Payday Borrowing: What Should A Victim Do?

    The Internet has revolutionized the way financial services are rendered. The accessibility of online payday loans allows borrowers to secure funds in a matter of hours. However, identity theft has emerged as an unwanted byproduct of this convenience. Despite incessant enhancement of security measures, the problem still exists. What can you do to safeguard your data against sneaky fraudsters?

    Online fraud may target anyone – even Americans who have never borrowed money. With a payday loan, fraud is insidious, as it may take weeks before suspicious activity is noticed – until fees start mounting. This makes a quick solution unlikely. Naturally, lenders will want their money back, and they may not show much sympathy. In any case, it is wiser to take preventive measures than waste several years in nerve-racking legal battles. Here are three basic steps to protect your data online:

    • create better passwords and do not email them under any circumstances;
    • protect your computer with anti-virus software and encrypt sensitive information;
    • burn or shred sensitive paper documents.

    By gaining access to personal data, fraudsters may complete a loan agreement online and access the funds landing in the victim’s account, whilst remaining unnoticed. Here, expediency is a double-edged sword. Although US states limit payday loan amounts, the incurred interest and penalties for missed payments may haunt you for quite a while. Fraudsters may continue using your details to secure several loans, adding fuel to the fire.

    Once you become aware of suspicious transactions, immediately report to your local police department. As a rule, a detective will be assigned to investigate, and the local prosecutor will later be sent a report. A police report is essential to clear the victim’s name and have credit reports corrected. It is what most creditors require from a victim to remove their name from fraudulently obtained debts, and even when they find no fraud, credit bureaus may still conduct their own checks. Phone calls alone do not suffice. Send the credit bureaus a formal written dispute under the Fair Credit Reporting Act and provide a copy to the creditor. You need to include an identity theft report, which comprises a police report and an identity theft affidavit. It is always best to hire a qualified attorney to guide you through the necessary steps and structure your evidence.

    It is always wise to protect sensitive data, which reduces the chances of you falling victim to identity theft. However, when precautions fail, there are clear steps you can take to clear your name and repair your credit record. This takes time and patience, but the law is always on your side.

  • Loans

    Payday Loans: Why Borrowing Online Is Most Convenient

    The advent of the Internet has revolutionized the global economy and the way financial services are provided. While online banking enables you to manage your accounts, arrange transfers and view transaction details from the comfort of your home, the world of accessible lending has also benefited from digitization. With payday lenders offering their services online, you may now skip the hassle of conventional bank offices and secure a short-term loan in a matter of hours. All you need is a bank account and a steady source of income. Let’s zoom in on the details of the process.

    The idea is simple: if a cash shortage occurs, you may take out quick and accessible payday loans through online lenders. To avoid penalties for unpaid bills, you may cover emergency expenses with these borrowed amounts, repaid when the next paycheck arrives. Typically, the term spans 2-4 weeks, and the maximum sums are capped by local state legislation.

    In the past, borrowing required visiting a bank office and waiting in line. Today, payday loan applications are easily filled out and submitted online, and approval is received in a matter of hours. Fill in your details, specify a source of income, include a recent bank statement and your account number. Once you click “submit”, the lender will start remote identity verification procedures, assessing your borrowing history.

    This does not require your presence – the lender will reach out to credit bureaus or search in alternative sources of financial records. Normally, all communication is done by phone, chat, or email, so you can even answer lenders’ questions while on the move. If approval is received, you may expect to see borrowed funds in your account on the next business day. Repayment of a payday loan is done just as conveniently, with the lender withdrawing the sum on the due date, possibly via direct debit or a post-dated check. Early repayment is possible and usually entails no fees.

    All these details vary between lenders, but they must all be stipulated in your loan agreement. Here, agreements with online lenders are no different from conventional ones. As  binding two-party documents, these must be studied and understood, and it is best to ask the lender for clarification when necessary, which is also easily done remotely. Aside from the loaned amount and the due date, your agreement will also define all charges, including interest, penalties and fees. The agreement must list all your rights and duties, ensuring that all procedures are clear. Attention to detail will guarantee the due date brings no surprises.

    Overall, online payday borrowing offers multiple advantages over in-person bank visits. Aside from the significant time-saving and accessibility, it makes all borrowing procedures prompt and simple, providing a detailed legal agreement protecting the rights of the customer.