Avoiding Common Pitfalls In Payday Loans With Bad Credit

While competition amongst payday lenders has turned out to be good for the consumers, there are negative sides to it too. Many payday lenders take their promises to the extreme and start giving out incomplete or incorrect information in their advertisements to lure more and more customers. This has attracted a lot of negative attention towards the payday lending industry and criticisms are being made, calling these lenders “loan sharks”. Here are the few common pitfalls:

Check The APR: Interest rates can be expressed in a variety of ways. Different expressions of different interest rates change their meaning. For instance, 1% per month is not the same as 12% per annum. This is called the Annual Percentage Rate. At present, payday rules mandate every lender to clearly specify the annual interest rate to the borrower. However, this is considerable amount of hiding facts and misleading that goes on in the payday lending industry to win over customers.

Check The Processing Fee: Not only do companies mislead borrowers with interest rates, there have been loans specially created to deliberately hide the amount of interest charged. Instead of charging the amount as a percentage, lenders will charge you a processing fee that varies with the amount of dollars that you borrow. This is hidden interest. However, the processing fee has been a work around to avoid stating astronomically high APR rate as mandated by the rules.

Check The Documents Required: Many payday lenders require excessive documentation. It is essential that you ask the lender clearly what information you are required to disclose.

Although everyone may think that they have a unique story of how they ended up with unmanageable debt, analysis show otherwise. People in credit rating have identified two patterns in which debt usually builds up. An understanding of these patterns can help you avoid the situations. The analysis is as follows:

Frequent Overspending: This is how most newbie borrowers get into debt. This can be associated with credit cards and other lines of revolving credit. The debt is usually small in the beginning. It happens as a result of causal overspending by the borrower. This is because they fail to realize how compounding works. They are also prone to overestimating their income, underestimating their expenses or both. Soon they find themselves keeping more and more balance on the cards. This balance then compounds and soon there are over-limit fees and other such charges that become applicable. This is when the debt has gone out of hand. The bottom line is that small over spendings create a big financial disaster.

Accidental Debt: These kinds of borrowers usually are very careful with the way they handle their credit. They are the diligent borrowers. However, a medical or other emergency like a job loss puts them in a period where they are forced to spend beyond their means to survive the day. These people come out of the problems, however are now saddled with debt.

It may seem like it is no fault of theirs that they are in this predicament. However, such losses are also avoidable. This is the reason why having appropriate insurance and contingency plans are also part of smart financial planning and financial discipline. Hence, one must ensure that they have contingency plans in place and do not overspend to ensure that their credit score remains intact.

Learn more here:
1. Bad credit loans in Pennsylvania (PA)
2. Indiana (IN) loans for bad credit
3. Bad credit loans in Georgia (GA)


Locate The Vehicle Repo Spotters And Make Money

Vehicle Repo Spotters And Make MoneyThere is no need to specify the fact that whenever any person defaults on their financial obligations, it is a rule that the money lending agencies or the lender can take back property that is secured by a loan. Same is applicable to vehicles. If you have purchased a car and can no longer afford to make payments to the lending institutions, then they can retrieve the car from you, the original owner. It is seen that cars and other vehicles are the most common types of items that are usually repossessed. However, homes and other property are also at risks.

If you are inclined to make some money by taking part in repossession procedure, then you will be happy to know that due to technological advances and power of high speed internet, now it’s possible to earn some money for each asset you assist in locating that leads to an actual repossession or recovery. One such online destination is You need to know that this is one online destination which has introduced the repo spotters mobile app.

This is the first and only website that is known for utilizing the people, like you, as their untapped resource. Your responsibility is to locate the valuable assets in the possession of delinquent debtors. It is simple to use as you will receive vehicle information alert on your mobile, when you are within 1 mile from the assets in the possession of delinquent debtors and is associated with any active repossession order. After receiving an alert from repos spotters, all you need to do is go to the location and locate the vehicles and you could make money. You will be happy to know that the team of professional repo spotters have access to hundreds and thousands of repossession or recovery orders from numerous lenders or repossession companies. Thus, it is very clear that you will have an opportunity to earn sufficiently, by working for them and helping them in location asset liable for repossession.

If you want to compile more information about the app available at repo spotter, you can browse through their website, any time you want.…


Disadvantages for Directors of Voluntary Liquidation Limited Companies

As a director of a company, it’s your obligation to ensure the smooth running of the company; this includes ensuring that the company doesn’t operate insolvent. For a director there are a number of disadvantages when it comes to voluntary liquidation of a limited company.

Liquidation is the insolvency procedure that is followed to end a company. All assets are liquidated in order to pay the creditors. There are a number of liquidation options, from compulsory liquidation, where a creditor files a winding up petition against your company to voluntary liquidation, where shareholders identify the best method forward is to close the doors and repay all the debts, removing the company from the register.

Compulsory liquidation is usually the winding up of a company after failure to pay your debts; this is carried out by HMRC or one of your creditors.

What you will find as a company director of a limited company is that voluntary liquidation can be more expensive than anticipated. Most companies choose voluntary liquidation as they realise they are in trouble and don’t want to be forced into liquidation by a winding up petition, without thinking of the financial ramifications.

Voluntary liquidation is where the entire liquidation process is paid for by the directors of the company. With compulsory, the creditor is responsible for paying deposits and fees, which mean it, can work out cheaper for the company.

Another disadvantage to voluntary liquidation of a limited company is all your marketing efforts will be lost. You may have spent years building up your brand, launching your website and focusing on your online success. All that effort and money will be completely lost once the liquidation process is completed.

A creditors voluntary liquidation of a limited company should be the very last resort for any company. Remember once the process is under way and the winding up process starts, as a director you will have to hand over the reins to an approved and licensed insolvency practitioner that becomes the liquidator. The liquidator works for the benefit of the creditors and not for the directors.

After liquidation, the liquidator then investigates the director and his or her actions. They need to identify if you acted in the best interest of your creditors. If you are found guilty, you could be banned from being a director of any limited company for up to fifteen years.

In addition to this, you may be held personally liable if you are found guilty of not working in the best interests of your creditors. As the director you are obligated to work in the interest of your creditors, you need to ensure that you don’t operate an insolvent business.

You may be found guilty of using liquidation as a deliberate way to not pay your creditors, which means you will be held personally responsible.

Liquidation may seem an easy way out for many company owners, but it is imperative that you understand the process, what it can means for the directors and the company as a whole. You should always try and find a reputable and reliable turnaround practitioner who can work in your best interests throughout the processes paying due diligence to the creditors.

So many directors are under the impression that insolvency practitioners work in their best interests, but unfortunately this is not the case. An insolvency practitioner works in the best interest of the credits, which can result in the director finding themselves responsible for the debt moving forward.

Ensure the decision of voluntary liquidation of a limited company is taken with care to ensure you are making the best decision for you and your creditors in the future.…


Business Benefits of Consulting Distinguished Business Debt Collection Agents

For most organizations, the investment of manpower, money and time are often highly consuming for handling debt collection independently. Owing to this, businesses are taking the help of expert collection agenciesthat specializes to pursue payments for all types of overdue accounts. It is popularly known as a third party agency owing to the fact that they are never a part of any original contract amid the customer and the merchant. In fact the decision of outsourcing collection of debt to an agency requires being given proper thought and the moment the decision is finalized, the search for an authentic agency requires being done too. Businesses of any kind or size will immensely benefit by consulting an established business collection agency. The agents here have worked with diverse businesses varying from homeowner associations to financial companies. Most importantly they know the ABC of the process of debt collection and also know ways of using the most successful negotiating tactics with respect to debt collection.

Business benefits of consulting collection agencies

The following are a list of business benefits of consulting business debt collection agents. These include,

• Augment the opportunity of one’s customers paying the debt they owe. It is only an expert who knows the tactics of getting results while gathering the debt

• Their services will prove in being a business’ greatest asset as it can augment their cash flow

• These services are truly affordable and when in comparison to the price of hiring private attorneys, one can actually save a lot.

• These agencies are accountable for the time they take for sending out collection letters as well as making the follow-up phone calls

• With the help of debt collection agency services, one can save enough money as they do not charge high sign up fees or hidden costs. Their payment options are highly flexible. All one needs to do is select and pay the service they desire

• These agents will handle everything related to debt collection while the owner of the business focuses on other vital facets of daily business

• The speciality of these agencies is that they accept just any account balance

No matter one runs a large corporation or a small business, the process can be rewarding and at the same time challenging. Especially when people fail in making payments when it comes to goods/services, this is likely in eating away their hard-earned profits. Debts that are unpaid along with stopping the business growth will also be an immensely time-consuming affair. Businesses can benefit leaps and bounds from hiring expert collection agencies for handling the unpaid accounts. Not all businesses unfortunately are capable of having an in-house, full-time collection department. The good news is a wonderful alternative here will be to join hands with expert debt collection experts. More and more firms are making the most of these agencies to aid gather their unpaid debts. Rather than being overwhelmed by paperwork, phoning the debtor and sending letters, it is always better to consider a well-established and experienced debt collection company.…