Credit Cards have evolved throughout the years and have become one of the most convenient way of payment for individuals and companies. For companies, it has been one of the best process used to monitor expenditures made by employees. By using credit cards, convenience for payment on purchases has become so easy that to some, it has become a necessity. With all the technology, internet, and the centralized processing of payments for credit cards, purchasing has evolved to something so powerful that you can purchase without worrying about currency, product availability, and even leaving the comfort of your own home.
But with all the good things that it has brought to the financial world, it is also a cause for loss, debt, and even bankruptcy. Credit cards are evolutionary. But with everything that is great, it is important to note that responsibility needs to play a role. Without responsibility, an individual or even a business may fall into the trap of getting deep into credit card debt.
Credit cards are tools that help you pay your purchases through a merchant by swiping the card. Soon as your credit card issuer grants the transaction, the purchase is deemed paid with the merchant and the credit card holder now owes the credit card issuer. The credit card issuer finances the purchase of the credit card holder. The issuer then charges the holder a certain interest fee for the financing the purchase. The issuer will continue to charge interest fees as long as the amount is outstanding.
Credit card companies include certain charges and different interest rates that apply to different transactions such as straight payment, installment payment, and on cash advances. Other finance charges also apply to outstanding balances and overdue payments.
Knowing how to properly manage your credit card is important. This will greatly help you make efficient and convenient purchases without getting yourself deep into debt.
Since time immemorial, money lending has been the primary scapegoat for practically every economic problem. Whenever a breadwinner runs out of cash to pay the electric bill, money lending helps solve the problem. When an entrepreneur wants to venture a new line of business but does not have enough capital to finance it, again a money lender saves the day. See how in demand money lending is in every generation.
Given this background for the money lending industry and its enormous contribution as well to human well-being, a big question of why are we still hearing negative and ill-disposed comments among its consumers and the general public?
It is common knowledge that for an individual to loan a certain amount of money, interest is added to it at a certain rate allowed by applicable laws. This is called usury. The practice enables an individual without money and another individual with money to mutually benefit from the affluence of the latter. This is an acceptable procedure because the profit that comes from the interest is what keeps the business running for moneylenders. However, the root of the problem can be attributed to the excessive, unreasonable and illegal interest rate that other lenders are imposing to their consumers which cause the latter to be buried alive by debt. Instead of helping the needy, the otherwise happened.
The antagonistic view toward usury stems from two interrelated sources which are economic and ethical. The former being that usury was regarded as unproductive because another person is gaining at someone’s misfortune. While the latter was due to biblical origins which deemed usury as unjust and selfish. This might be true to some but other money lenders are doing the best that they can to comply with money lending laws which ensure general welfare among its consumers by means of imposing reasonable interest rate and just term agreements. Needless to say, take into account as well the borrowers who sometimes took out loans they cannot afford to pay back or living a lavish lifestyle they cannot sustain the reason why they oftentimes ran out of cash.
One of the most sought for loans in the market today are payday loans which are as easy as borrowing your neighbors grass cutter. Payday loans are typically availed of when there is a need to pay for monthly expenses or unexpected small expenses such as medicines, minor car/house repairs, or purchases for basic needs. Often, the people who avail of payday loans are the ones who are short in cash and live by their monthly salary or allowances. With its easy processing and high percentage of approval, borrowers flock these lenders and cause the business to become more lucrative.
Payday Loan Process
As mentioned above, payday loans are one of the easiest loans that you can avail of. It only requires you to have a stable source of income that can pay your outstanding balance. Once an application has been submitted, they only require you to issue a post-dated check that covers the full amount due plus the interest that the loan yields. Payday loans don’t require your credit score to be checked as long as your outstanding balance is payable by your following month’s income.
High Interest Rates
Loans are typically borrowing money and interest that are yielded from the loan are actually payments for borrowing and using the money for a specified period. Interest applies to all kinds of loan and is the borrower’s way to gain returns from lending the money to borrowers.
Payday loans have one of the highest yielding interest rate payments come from payday loans. Payday loans can yield from an Annual Percentage Rate (APR) of 300% to as much as 750% depending on the market demand and payday lender. These interest rate, especially when rolled over, can bring a borrower deep in debt without knowing it. This is why it is very important to make sure that borrowing from payday lenders are the last options you should consider when there is a shortage in cash.
Payday loans have become the default means of getting extra cash for unexpected expenses that are small in amount but cash is not readily available. With the payday loan business spreading including online payday lenders, it has become one of the growing business for financing companies and websites. Despite payday loans having one of the highest interest rate out in the market today, borrowers avail of the services due to the high approval rating and minimal requirements. To assist first time payday borrowers if payday loan is the only option one can have, here are a few things to look at in checking out and comparing payday lenders:
Research About the Lender’s Credibility
Try getting a payday lender who is a referral. Find someone who has availed of a payday loan and ask how their experience was. Try to get feedback on what they have experienced from the lender and establish the lender’s credibility based on their experiences. You may also find reviews online and identify any precautions you need to watch for.
Compare Lenders and What They Can Offer
When availing of a payday loan, do not restrict your choices to one or two lenders. Try to research about a recommended lender and what they offer. This is a good way to help yourself find the best deal you can have with availing a payday loan. Always have a compare sheet ready to identify the advantages and disadvantages of a lender from another. This will give you the most advantage in availing a payday loan.
Avoid Online Lenders
As much as possible, try avoiding a payday lender that only transacts with their borrowers online. Always check out their physical address which will allow you to visit their office for any concerns that you may have. If possible, always try to have your transactions with payday lenders in their office instead of online or meeting them somewhere other than their office.
Being vigilant on the payday lender whom you transact with will greatly help you in making sure that you are not being scammed.
There are times when we just want to quit our 8 to 5 jobs and hear that calling of putting up our own business. But as you listen to that calling, your pocket is sincerely telling you that there is no way you can put up a business with the amount you have saved and the salary you are getting right now. Then you give out a big sigh of despair and look back your monitor to continue the work you are doing.
Business loans have always been a good solution on starting up a small business even without having the cash you initially need. The business loan is one solution you can count and depend on to work for you and your short funding.
Getting a business loan is one of the best solution you can have when starting a small business or even expanding an existing one. A business loan typically puts funding to the business that you are planning to put up. But what is it specifically that business loans can be used for? If you are starting a business, this is a great way to fund your office space, raw materials, inventory, and even marketing operations. When you go on and start setting up a business, cash flows will need to go out to help you acquire the things that the business will need.
With existing businesses, a business loan can help expand market reach, grow revenue, and even venture to other lines of businesses. These types of loans will help the business to grow. Besides, growth is one of the goals a business must have.
Planning and Managing
When decided to avail of a business loan to start a small business or grow the existing one. A good plan on how to manage the business must be in place. This is important to help you grow your business in a way with predictability and minimal risk. Your plan will be the foundation of how your business loan will be used to ensure that your business operates and grow as how it is expected. Else, you might just lose money or even your business when planning is put aside.