.
Peer lending simply matches up individuals willing to loan money to people who want to borrow money. The borrower must qualify to receive money by individual standards set by the person who will be lending the money. On the Internet sites, the qualifications involve credit scores and debt to income ratio. But other factors can influence the lender, such as the reason for the loan.
According to Celent, a research firm, peer lending sources are expected to grow 800% over the next three years. Some good advice, if you’re planning on using an Internet company – do your homework. Peer lending sites profit from fees they charge borrowers and lenders. Peer lending creates a win / win situation for both borrower and lender.
Marcy had seen advertisements for “Pay Day Cash Loans” on the internet and on TV. She often wondered how these programs worked. Having become frustrated with her family’s tight budget, and wanting to purchase that new grill they had been eyeing since the weather turned warm, Marcy found an online company that would loan her $800 until her next payday. The $200 interest and fee charges seemed steep, but in order to have that grill for the weekend, she plunged ahead.
What is a “Pay Day Loan”?
Pay Day loans are short-term loans (usually two weeks or until your next paycheck) held against your checking account and secured with the promise to repay on your next payday. Upon the due date borrowers have the option to pay back the loan in full plus finance charges, or they can opt to float the balance due to another payday and only pay back the finance charge.
For example:
Pay Day Loan of $800 borrowed + $200 Finance charges = $1000 owed
Pay Day 2nd Friday of the Month –
Option 1: Pay back $1000 total ($800 owed + $200 finance charge)
Option 2: Pay back the $200 finance charge ONLY and float the $800 to Pay Day 4th Friday of the Month (on the 4th Friday of the month, the borrower would owe $800 borrowed + $200 finance charge – AGAIN, for a total of $1,200 owed).
These loans prey on families struggling to make ends meet. The option to pay back only the finance charge and “float” the balance (up to 4 times = $800 paid to borrow $800) is attractive for families who live paycheck to paycheck and have little disposable cash left over. Many consumers who engage in Pay Day loans end up borrowing an average of eight to thirteen loans per year – that means they are paying huge amounts in finance charges – around 600%.
Holidays, like Christmas, and the desire to take a summer getaway, are factors that drive consumers to borrow from these services. There are many more reasons why consumers come up short on income:
1. The Economy – many people have experienced the hardship of decreased income due to reduced wages, fewer hours worked, and loss of jobs. Some of these people are trying to maintain a standard of living that exceeds their income.
2. Poor planning – gone for many families are the days of the savings account. The average family should have three months’ salary saved up just in case. How many people truly are prepared? Emergencies that families are not prepared to face, such as a broken major appliance or auto repair bill, makes a Pay Day loan an attractive quick fix.
3. Materialism – our “have it all, right now” society sends detrimental messages to the American consumer, especially to young adults just establishing themselves financially. Many people have fallen victim to mounds of credit-card debt which is destroying their credit and their lives. (Watch the movie Maxed Out: http://astore.amazon.com/wwwthedougand-20/detail/B001AT49KC.)
4. Stress – the frustration and stress of living “pay to pay” has consumers seeking solutions and a way out – sadly, Pay Day loans are not a solution but a fix that can end up being more detrimental than beneficial to a family’s financial life.
If you’re considering using a Pay Day loan, stop and evaluate your need and ask yourself, is this really worth it?
1. Driver's licenses
2. Social Security Numbers
3. Medical Information
4. Character/Criminal actions
5. Financial transactions
Areas with higher concentrations of people, such as Los Angelos and New York City, tend to have higher occurrences of identity theft. A main reason for this is improper disposal of trash. Be sure to shred all bills and personal information before throwing it away.
An identity thief's dream find:
1. Utility bills
2. Credit card bills
3. Car payment
4. Bank account statements
No one is safe from identity theft. Your information is out there at every doctor's office, hospital and bank you ever dealt with. The question isn't IF, it's WHEN? In order to protect yourself there are steps you can begin to take right now:
1. Shred all your documents before throwing them in the trash.
2. Never give out personal information such as social security number or credit card numbers unless you are sure whom you are doing business with.
3. Never email credit or debit card numbers - if you have to email this information, send 2 separate emails with partial information in both emails. Again, be sure you know and trust the recipient.
4. Never dispose of receipts with your name or that contain any credit card information in a public trash can.
5. Monitor your credit report regularly - the last thing you want to discover is that your identity has been compromised when trying to make a major purchase.
6. Keep all receipts to track your spending against your bank accounts and credit card statements.
Once your identity is stolen, it can take years to rebuild good credit and fix the mess. Creditors and collection agencies can harass you for debt that isn't even legitimately yours. Start protecting yourself today.
Don't wait too long.
The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn't mean it's safe to put this off. The longer you wait, the harder it gets to get you out of that fix. Your situation will not get better with time or if you ignore it.
Do work with an expert.
Your loan modification doesn't only rest in the hands of your lender, your broker, or your loan modification expert. These people can help, but you have to do your part and cooperate. Make sure to submit your paperwork on time, answer questions honestly, and give a clear picture of your financial situation.
Consider all your options.
There are some options to consider when you find yourself facing the possibility of foreclosure. If you find you're in a situation where you want to stay in the security and comfort of your home, have fallen behind in your monthly mortgage payments due to a hardship and have a steady source of income, then a mortgage modification may be your best option.
Bankruptcy is a possible option, but only a thorough review will tell if that is the best step for you. It may be that a deed in lieu of foreclosure is your best option, but only careful review by an attorney will help you with that decision. Was your broker deceitful, did they place you in a loan you had no hope of paying? If so, you have other options that an attorney can help you with.
A Short sale is another possibility; it involves selling your home for less than its fair market value and giving the proceeds to your lender. If done properly you owe the lender nothing. But this can also be done incorrectly (usually without an attorney), and you may agree to repay the difference. Good for the lender, bad for you. Although you still lose your home, it's not as damaging to your credit as foreclosure, so it's easier to get back on your feet.
Do have a backup plan.
Not all people will qualify for a loan modification. Maybe you've fallen too far behind, your lender may be simply hard to work with, or maybe you don't need it after all. In any case, it's always good to have a Plan B.
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Jun 2009
What is Peer Lending?
The concept of peer lending has been around for ages. Families or communities would pool money together to help out those who needed loans. Each family who contributed would take a turn at being the recipient of the money. Still alive today and known in different cultures by different names, this concept has found its way into the Internet and has become a growing alternative resource for people seeking loans.
by valeria on Wed Jun 03, 2009 2:11 pm
Peer lending simply matches up individuals willing to loan money to people who want to borrow money. The borrower must qualify to receive money by individual standards set by the person who will be lending the money. On the Internet sites, the qualifications involve credit scores and debt to income ratio. But other factors can influence the lender, such as the reason for the loan.
According to Celent, a research firm, peer lending sources are expected to grow 800% over the next three years. Some good advice, if you’re planning on using an Internet company – do your homework. Peer lending sites profit from fees they charge borrowers and lenders. Peer lending creates a win / win situation for both borrower and lender.
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Pay Day Loans
Marcy wondered how they were going to get through the week with the little bit of money they had left after paying the bills. Marcy and her husband had been struggling to make ends meet for a few months now. If they shared a car, they wouldn’t have to put gas in the truck this week. If they ate less meat and more beans and dug deep into the freezer, they might be able to cut down on the grocery bill. This form of budgeting was taking its toll on Marcy’s nerves, marriage, and family. Towards the end of the month, there was always more month left than money.
by valeria on Tue Jun 09, 2009 2:12 am
Marcy had seen advertisements for “Pay Day Cash Loans” on the internet and on TV. She often wondered how these programs worked. Having become frustrated with her family’s tight budget, and wanting to purchase that new grill they had been eyeing since the weather turned warm, Marcy found an online company that would loan her $800 until her next payday. The $200 interest and fee charges seemed steep, but in order to have that grill for the weekend, she plunged ahead.
What is a “Pay Day Loan”?
Pay Day loans are short-term loans (usually two weeks or until your next paycheck) held against your checking account and secured with the promise to repay on your next payday. Upon the due date borrowers have the option to pay back the loan in full plus finance charges, or they can opt to float the balance due to another payday and only pay back the finance charge.
For example:
Pay Day Loan of $800 borrowed + $200 Finance charges = $1000 owed
Pay Day 2nd Friday of the Month –
Option 1: Pay back $1000 total ($800 owed + $200 finance charge)
Option 2: Pay back the $200 finance charge ONLY and float the $800 to Pay Day 4th Friday of the Month (on the 4th Friday of the month, the borrower would owe $800 borrowed + $200 finance charge – AGAIN, for a total of $1,200 owed).
These loans prey on families struggling to make ends meet. The option to pay back only the finance charge and “float” the balance (up to 4 times = $800 paid to borrow $800) is attractive for families who live paycheck to paycheck and have little disposable cash left over. Many consumers who engage in Pay Day loans end up borrowing an average of eight to thirteen loans per year – that means they are paying huge amounts in finance charges – around 600%.
Holidays, like Christmas, and the desire to take a summer getaway, are factors that drive consumers to borrow from these services. There are many more reasons why consumers come up short on income:
1. The Economy – many people have experienced the hardship of decreased income due to reduced wages, fewer hours worked, and loss of jobs. Some of these people are trying to maintain a standard of living that exceeds their income.
2. Poor planning – gone for many families are the days of the savings account. The average family should have three months’ salary saved up just in case. How many people truly are prepared? Emergencies that families are not prepared to face, such as a broken major appliance or auto repair bill, makes a Pay Day loan an attractive quick fix.
3. Materialism – our “have it all, right now” society sends detrimental messages to the American consumer, especially to young adults just establishing themselves financially. Many people have fallen victim to mounds of credit-card debt which is destroying their credit and their lives. (Watch the movie Maxed Out: http://astore.amazon.com/wwwthedougand-20/detail/B001AT49KC.)
4. Stress – the frustration and stress of living “pay to pay” has consumers seeking solutions and a way out – sadly, Pay Day loans are not a solution but a fix that can end up being more detrimental than beneficial to a family’s financial life.
If you’re considering using a Pay Day loan, stop and evaluate your need and ask yourself, is this really worth it?
Identity Theft
If you are a person aged 30-39, you are at the highest risk for Identity Theft. Identity Theft is the fastest growing crime in America and affects 9-10 million people each year. The five major types of identity theft involve:
by valeria on Thu Jun 18, 2009 6:18 pm
1. Driver's licenses
2. Social Security Numbers
3. Medical Information
4. Character/Criminal actions
5. Financial transactions
Areas with higher concentrations of people, such as Los Angelos and New York City, tend to have higher occurrences of identity theft. A main reason for this is improper disposal of trash. Be sure to shred all bills and personal information before throwing it away.
An identity thief's dream find:
1. Utility bills
2. Credit card bills
3. Car payment
4. Bank account statements
No one is safe from identity theft. Your information is out there at every doctor's office, hospital and bank you ever dealt with. The question isn't IF, it's WHEN? In order to protect yourself there are steps you can begin to take right now:
1. Shred all your documents before throwing them in the trash.
2. Never give out personal information such as social security number or credit card numbers unless you are sure whom you are doing business with.
3. Never email credit or debit card numbers - if you have to email this information, send 2 separate emails with partial information in both emails. Again, be sure you know and trust the recipient.
4. Never dispose of receipts with your name or that contain any credit card information in a public trash can.
5. Monitor your credit report regularly - the last thing you want to discover is that your identity has been compromised when trying to make a major purchase.
6. Keep all receipts to track your spending against your bank accounts and credit card statements.
Once your identity is stolen, it can take years to rebuild good credit and fix the mess. Creditors and collection agencies can harass you for debt that isn't even legitimately yours. Start protecting yourself today.
Loan Modification Do's and Dont's
One of the biggest mistakes you can make in a loan modification is to ignore the rules. Although the CJS Mortgage Modification Program does the negotiating, it helps a great deal if you do your homework and arm yourself with the right information. After all, you're dealing with lenders-and at the end of the day; you still have to play by their rules. Here's a list of loan modification do's and don'ts to help you avoid common pitfalls.
by valeria on Thu Jun 25, 2009 7:52 pm
Don't wait too long.
The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn't mean it's safe to put this off. The longer you wait, the harder it gets to get you out of that fix. Your situation will not get better with time or if you ignore it.
Do work with an expert.
Your loan modification doesn't only rest in the hands of your lender, your broker, or your loan modification expert. These people can help, but you have to do your part and cooperate. Make sure to submit your paperwork on time, answer questions honestly, and give a clear picture of your financial situation.
Consider all your options.
There are some options to consider when you find yourself facing the possibility of foreclosure. If you find you're in a situation where you want to stay in the security and comfort of your home, have fallen behind in your monthly mortgage payments due to a hardship and have a steady source of income, then a mortgage modification may be your best option.
Bankruptcy is a possible option, but only a thorough review will tell if that is the best step for you. It may be that a deed in lieu of foreclosure is your best option, but only careful review by an attorney will help you with that decision. Was your broker deceitful, did they place you in a loan you had no hope of paying? If so, you have other options that an attorney can help you with.
A Short sale is another possibility; it involves selling your home for less than its fair market value and giving the proceeds to your lender. If done properly you owe the lender nothing. But this can also be done incorrectly (usually without an attorney), and you may agree to repay the difference. Good for the lender, bad for you. Although you still lose your home, it's not as damaging to your credit as foreclosure, so it's easier to get back on your feet.
Do have a backup plan.
Not all people will qualify for a loan modification. Maybe you've fallen too far behind, your lender may be simply hard to work with, or maybe you don't need it after all. In any case, it's always good to have a Plan B.
