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How to ask your employer for a short term cash advance

October 26th, 2011

Life has a habit of surprising you at the worst possible moments financially. Unexpected bills, tuition fees and broken household appliances can all leave you in desperate need for some quick cash, and if you are more than a week from your payday it can seem incredibly difficult to get through the month. In such a short space of time, it is pointless to take out a bank loan, and if you cannot borrow the money from friends or family, a good way to go about it would be to ask your boss for an advance on your pay cheque. This may seem like a frightening proposition, but if handled correctly it could be the easiest way to get yourself through a difficult financial spot.

Don’t psych yourself up – Relax yourself up

First of all, make sure your boss is in a calm and relaxed mood. If there are difficulties in the company that your boss is dealing with, it will be far easier for them to just say no so that they won’t have to deal with your situation as well. Choose a good time, perhaps the end of the day when the boss is getting ready to leave, or at lunchtime so that they are in a relaxed and happy state of mind.

Another important thing to think of is how your company is doing financially. A company that is struggling to make ends meet are far less likely to want to let go of any extra funds, as they may need that money to pay for other things throughout the month. If you company is financially stable and is not approaching a big review or deadline, and your boss is in a calm mood, you should feel confident to go and request your advance.

Three’s a crowd

Make sure that you and your boss are alone, as bringing up something so personal in a meeting or when surrounded by others may cause your boss to feel pressured, and will also not give you the time and atmosphere you need to make your case professionally and calmly. Perhaps ask your boss for a meeting, or even just for ten minutes on their own, then state straight away what you are asking for. Your boss should give you time to state your case and will be more likely to hear you out of they know straight away what you are asking for.

The pitch

Explain why you need the advance, making sure you speak in clear facts as opposed to using an emotional standpoint. Keep the conversation professional and relaxed and even if you are rejected for the advance you will not lose any standing with your employer. Show that you have thought through all of the issues that may arise because of this and offer various repayment plans – perhaps offering to pay back the advance in full before your next payday, or offering to have the advance taken out of your pay cheque in stages over a couple of months. Allow your boss to make their thoughts known, as there may be standard company procedure for this.

Another way to make sure the advance pays off for both you and the company is to offer to work extra hours and overtime to pay off the advance. This would also ensure that your next pay cheque is not affected and will actually bring in more money as opposed to money you need to pay back.

Let your employer state their case and if the answer is still no you should thank them for their time and leave in the same relaxed and professional state you entered into the conversation with. There are other options for short term cash advances, such as payday loans, which can be given within 24 hours for amounts of up to £1000, and work to a fee of around £25 per £100 borrowed. These loans are easily available on the internet and do not require lengthy background checks or even a good credit rating, meaning that even if your boss cannot offer you an advance this time around, you are still capable of getting your hands on a short term cash advance with little trouble.

Should your employer say yes, make sure you say thank you, and do not abuse this facility too often. A one-off cash advance is one thing, but if you continue to ask for advances on your money you may find yourself in financial trouble quite quickly. Consider raising your hours or taking on some part time work if you continuously struggle to make your pay cheque last.

Good Debt Vs Bad Debt

October 19th, 2011

Debt is generally perceived as ‘bad’. Owing money means that you are never fully financially secure, and the money that comes into your bank account is not truly yours, belonging instead to your creditors. However, there are certain kinds of debt which can in fact help provide a more secure future for yourself and your family, and even improve your financial situation. This kind of debt is ‘good’ debt, owed money which creates an investment sure to pay off later in life, and which will not negatively impact on your situation while it is still owed.

There is such a thing as good debt

Good debts are debts which in the long term will help to generate an income, such as university education or even a mortgage, or debt which is taken out as an investment in yourself. Loans taken to buy a car needed for work for example, or a start up loan for a small business can generally be considered good debt. Similarly, a mortgage, despite being taken out over a long period of time (often 30 years or more), will help to improve your credit rating  as well as take you out of the essentially wasteful process of renting a property, where every pound spent goes into your landlord’s pocket and gives you nothing more than one more month in a property you do not own. At the end of a mortgage term you will own a home, something which can continue to rise in price and leave you with far more money in the long term than you began with.

Similarly, low interest loans can be considered generally good debt, as they can be used to consolidate higher interest loans and credit cards to help you into a far better financial situation. When consolidating debt, make sure you shop around for the very best deal and lowest interest rates, ensuring that you will be able to meet the repayment terms, because otherwise you risk this good debt turning bad!

So now the bad debt

Bad debt always comes from buying inessential purchases which are high in value but will depreciate from the day they are bought. A widescreen television bought new can be a hefty amount of money, but secondhand will cost almost half of what you paid for it, and any damage will render it worthless. Plus with new products coming out all the time, the ‘must have’ product of the moment is bound to be worth far less in a year’s time. Credit cards are frequently used for these purchases and although often have low interest rates, if you cannot afford the product in the first place you may struggle to meet repayments, leaving you paying off up to double the cost of the item just in penalty charges.

Personal loans taken out for general spending or something like a holiday would also come under bad debt. A holiday will not raise in value once it has been taken and leaves you in debt for far longer than the break was. Similarly with loans taken for general spending, once the money is gone you are left in the same situation as before, but with an extra amount of money that needs to come out of your pay cheque each month.

Payday loans are also considered to be quite dangerous ways of getting into debt. With these loans they are incredibly simple to get, even for those with bad credit ratings, and because there are so many payday lenders out there it is incredibly simple to take out more than one at a time, despite the fact that individual companies will not lend out again until the original loan is paid off. It can be tempting to take out a payday loan to fix a short term financial problem, but it is always worth remembering that these loans need to be paid back, will have relatively high interest rates, and may leave you in a far worse financial situation in the long run.

It is not impossible to go through life only ever living on the money that is yours, but in many cases debt can actually help you to move onto a new and more secure future. It is just important to ensure that you only choose the right kinds of debt to save yourself from getting into stressful and difficult financial situations.

Common Misconceptions About Payday Loans

October 5th, 2011

As popular as payday loans are among those in the United Kingdom, there are many misconceptions about the product. These misconceptions often keep some consumers from trying out a payday loan when they might be the real solution to a short term need for cash. In this post we will try to clear up many of those misconceptions.

  1. Payday lenders are not regulated:  Reputable UK payday loan companies are licensed and adhere to a code of ethics in lending. They adhere to the Office of Fair Trade guidelines and usually are members of the Consumer Finance Association. If you are working with a lender who is not licensed or showing the GFA logo, then you should find another same day loan company.
  2. Interest rates are extremely high and in effect are equal to usury: This misconception is based on the high APR that they are legally required to display. The problem with this is that the APR (Annual Percentage Rate)is not designed for short term loans like a PDL. The APR is a rate that is charged for credit borrowed over a year’s time. So when you see cash advance loans with APRs of 125% for instance on a pay day cash loan, you would only pay this amount if you took a year to pay back the loan. Because of this the APR is not relevant to a pay day loan. Most pay day loans carry a finance charge of between 25 and 50 pounds per 100 pounds borrowed.
  3. All payday loans charge the same high rates: If you do your homework you will find that the payday loan industry is not as collegial as they may appear at first glance. Payday lenders charge a wide variety of finance charges that can vary from 25 pounds per 100 pounds borrowed up to 250 pounds per 100 pounds. The most reputable lenders will charge between 25-50 pounds per hundred pounds borrowed. So search the web and get the best deal – not the first one you see.

 

I hope this helps to clear up many of the misconceptions surrounding payday loans. These loans are an excellent tool for a quick infusion of cash. Don’t be afraid to use them.

Getting A Payday Loan By Text

September 26th, 2011

So you are thinking about getting a payday loan but you don’t have a computer and you really don’t want to do it by phone? How about getting one by texting? Sound crazy? Well this is the technology that everyone is using these days. You text your friends.  You text your family.  You pay bills by text. Now you can even use your smart phone to pay for your groceries.

So of course the payday loan industry being as competitive as it is would be first in line to offer loans by text as well. Think about it. Just send a text and get your financial needs met.  The process for getting a payday loan is getting faster and easier every day.

All you have to do to get that extra cash till pay day is text your personal information, income information and bank account information to the pay day loan firm. They will do the rest.  The only real caution is to do your research so you know the pay day loan company well. Know for certain that this is a real company and not a scam.  Find out how long the company has been in business and see if there have been any complaints filed against it.

It they have been in business for several years and have no major complaints then text away! After you have applied you will just need to wait for the texted approval to come back to you. Once you receive that message you will know that within 24 hours your loan will be deposited in your bank account.

Remember use pay day loans with care. They are a great resource if you can pay them back within the one pay day or two pay term you agree on. If you roll them over beyond that they can get expensive. But if a short term loan is what you really need and you love the simplicity of using your phone to apply then by all means text your application!

Getting a pay day loan through texting is only the latest innovation for an industry that is rapidly growing in the UK.  These short term loans are the convenient and easy answer to an unexpected cash shortage.

Advice for making major purchases

September 26th, 2011

In a fragile and ever changing financial climate, it is becoming even more difficult to make major purchases that you are not able to buy with what is left-over from your salary each month. Banks are cutting back on giving loans to all customers, not just those with bad credit, and a non-essential purchase will be given far less critical status than those applying for mortgages.

However, there are other ways in which to make a large purchase such as a television, car or household appliance, without having to go to the bank at all, and with the right forward planning it is easy to make the right decisions when it comes to planning for and making your purchase.

First off – The fundamentals

First of all, it is important for you to decide on how much it is that you want to spend. Obviously you will be looking into using savings or some kind of credit to buy the item, so remember to work in the possibility of your circumstances changing, to ensure that you will always be able to make repayments, or will be able to afford the loss of savings over an extended period of time. If we take buying a television as an example, work out what are your essentials in the television you are going to buy, and what can be negotiated. You may want a flat screen, but moving down a size will cut the cost drastically. Do you need an inbuilt DVD player, or can you use the one you already have to the same effect, in order to keep the price down?

Saving in advance of making a major purchase is always to safest way to go about it, because you are spending your own money and will not have to make repayments to a third party, just taking out what you can afford from your salary each month to go back into your savings account to top it back up. To amplify your savings in a short amount of time, it may be worth drawing up a budget for a short amount of time, say three months, and living as cheaply as possible in order to put a substantial amount into your savings account each month. Living on a smallest possible amount of money can be a challenge, but when you are saving for something which will ultimately last for a far longer time than the period during which you had to live on a budget, the pros far outweigh the cons!

Take a look at comparison websites to find the item you are looking to buy for the very cheapest price possible without having to compromise on quality. Comparison websites list trusted sellers and show ratings for products so that you can make sure you are making the right decision before committing to buy. It is also worth looking for items second hand, and high street stores such as Cex and Cash Converters can stock high quality goods for a fraction of the original price, meaning you get the exact item you wanted without having to worry too much about the cost. Ebay and Gumtree.com are also great ways of picking up a bargain, just make sure to check the seller’s credentials to ensure you are going to get good quality products.

When it comes time to make your purchase, if you have decided against using your savings and want to buy the product straight away and then pay it back in instalments, a low interest credit card might be a good idea. Credit cards allow you to spend more than you could afford with your pay cheque, and then pay it back over a period of time. As long as you pay over the minimum amount you can basically choose how long it takes you to pay back. If you are looking for a faster payment plan and already have some of the money towards the item, a UK payday loan might fill the gap, allowing you to make the purchase and pay back the loan with your next pay cheque. When taking out payday loans, always ensure that you will be able to pay in back in full come your next pay day, and with this being the case this can be a good way to make the purchase immediately (especially if buying a household item that is needed day to day) and pay back the costs once you have a bit more expendable cash.

Need money? Ask for a raise

September 20th, 2011

If you are looking to make a large purchase, or just want some extra money to play with every month, the best way to go about that is to ask your employer for a raise. If you have worked at a company for a long enough time (say a year) and have not yet received a raise, this could be the perfect time to go about it, especially if you are coming up to a review with your manager. In order to go about asking for a raise there are a number of factors you will need to look into first.

Firstly, find out what others at your level in your field are earning. This is easy to do over the Internet for a general idea, or if you work for a large company and have close friends at the same level as you asking politely might work. Do be aware though, that earnings are a private matter and if they do not want to answer you should never push them. If you find that you are not earning as much as others at your level then you are in a prime position to ask for a raise. You may still want to ask if you find that you are earning the same as others in your position, but you will need to go about it in a much more careful way.

Doing your research

Take a look at your employer’s financial situation. In the current climate many businesses are having to make cutbacks to make ends meet. If there are redundancies and cuts being made in your company then you will need to have a very good reason for wanting a raise, and should prepare yourself for still being told no in this situation. If your employer is in a healthy financial situation and seems to be taking on more employees, this may give you an opportunity to ask to take on more work in order to receive a raise. This would be the best way to go about asking to have your salary boosted, as you are offering more in terms of skill and labour to receive more financially.

Matching you expectations with your experience

Consider your own experience when preparing how to ask for your raise. If you are in a skilled position and have more experience and assets to the company than you are being given credit for, make a note of them. Perhaps someone else in your team is at a higher level and has less experience, try to work out how you can make the most of your skill and experience to benefit the company, and present this as an argument for a higher position and thus more pay. If you find that you are less experienced than others at your level, take into account what you have done and are continuing to do for the company on a day to day basis and use this as your jumping off point.

When preparing your argument, don’t talk about what you need in order to live on, as this comes across as desperate and unprofessional, but talk about what you deserve with regards to your skills and workload. Let your employer state their case to you and have counter arguments prepared to demonstrate a higher value and make your argument seem convincing and appropriate. Decide in advance what you are going to do if you request for higher pay is rejected and let your employer know what this case will be. You do not have to go as drastic as threatening to leave your job, but reaching a compromise saying that you will ask again after a specific amount of time, or asking to be considered for promotion in future.

What if your request is rejected?

If your request is rejected and you still need extra income, take a look into part time or weekend work to make ends meet. There are plenty of jobs you can do online or in your spare time that need not take up too much time or energy and will make you a little extra cash. Sales representatives for Avon or even Ann Summers can host one party per week and earn enough commission for a healthy amount of savings, or babysitting and dog walking could earn you a little extra cash. If your financial need is immediate and short term, look into payday loans as a short term solution. If you are only trying to make ends meet for one month because of an unexpected financial crisis, payday online loans are there to help you make ends meet. You can apply online and find that the money is in your account within 24 hours. Interest usually amounts to around £25 per £100 borrowed, so make sure that you will have enough in your pay cheque to pay it back in full the following month, but payday loans can really be a very helpful bridging loan for short term financial problems.

In the long term, wait a couple of months and then ask your employer for a meeting to discuss a possible raise again. If your request is rejected more than three times over the space of a year, it may be worth looking into a new job!

How to Supplement Your Income

September 16th, 2011

With living costs rising dramatically in recent years and wages struggling to meet them, it has become necessary for many families to look into additional work to continue living at the level they have become accustomed to. Far better than taking out a long term loan, earning extra income can help you boost your savings and will keep you out of long term debt – which is one of the most dangerous situations to be in considering the current climate.

Juggling your responsibilities

Of course, if you are working a full time job and have a family to take care of, it is difficult to find extra work that can fit around your busy life, as you will not want to take on evening or weekend work that takes up too much time. Think about the times in your life when you do not have much to do and would otherwise be wasted watching television or sitting around. Perhaps you do food shopping and cleaning at the weekend but Monday-Wednesday nights don’t do very much. Even one night a week of taking on extra work can make a big difference to your financial situation, and it is worth bearing in mind that taking on too much work will find you being taxed substantially anyway. You must declare any additional income to the tax-man, even if the work is cash in hand, or risk huge penalties, and second incomes tend to be taxed more harshly than your main job.

Some genius idea’s

Take a look at renting out your home for an extra income. If you have a spare room think about taking on a lodger, many foreign students will need a room during term time and you could make a decent income for this without it taking up much of your time. For a more glamorous way to rent out your home, television companies are always looking for locations to film television programmes and adverts. Often these will be normal homes, so if your house is not a mansion or breathtaking apartment overlooking the Thames don’t worry. It is always worth looking into as they will take on all costs and pay a substantial amount for using your home for a brief amount of time.

If renting out your home isn’t an option, perhaps renting out your parking space is! If you live close to or in a busy town or city, and aren’t using your parking space, business people and those travelling in and out of your area on a regular basis would jump at the chance to rent a parking space for less than the expensive rates of multi storey car parks, and this can bring you in an extra monthly income without you needing to do anything!

Focus groups and mystery shopping are another way of picking up decent income for a little labour. These tend to be infrequent but pay well and focus groups can be on anything from the type of washing powder you use to your weekly food shop, to your ideas about television! They will take a couple of hours and often pay very well for a short space of time. Mystery shopping can be brought into your every day routine as you will go into a shop chosen by the company, buy a couple of items and report on your experience. You will be refunded for your items and paid for the whole experience, making it a fun and easy way to make some extra cash.

If you are looking for some extra cash in the short term, and don’t want the commitment of a long term loan, payday loans can be perfect for bridging the gap between pay days. You can apply online for any amount between £100 and £1000 and the money will be deposited into your account within 24 hours. These loans are perfect for when you have a critical purchase and there is still a while to go until your next payday, or for topping up your income if you are short on cash one month. They should not be used every month, but would be the perfect solution to a short term financial crisis.

Which is the Best Payday Loan Lender

September 8th, 2011

Payday loans are certainly not difficult to find any more. Searching for payday loans on Google brings up over 32,800,000 results, all offering amounts of quick cash between £100 and £1000, most requiring no credit check and offering to deposit the money into your account within 24 hours. With this wide choice of similar seeming loans, and because you will only be borrowing a relatively small amount of money, it can be tempting to choose the first loan you come across to make the process even easier. But for your own peace of mind, and to ensure that you really do get the best deal for your personal circumstances it is worth searching around for a loan that not only fits you perfectly, but also gives the best value for money and easiest repayment options.

Reputable payday loan lenders

It is important when taking out any loan that you check the firm you are using is reputable. This can be easy to check, as an Internet search will quickly bring up any bad reviews or warnings, as well as recommendations for other sites you might want to borrow from instead. A good lender will not surprise you with hidden charges when you come to pay back your loan, and will be regulated, meaning you are protected by the law should your circumstances change and you find yourself unable to pay back the loan. Make sure when you sign the loan agreement that the full amount repayable is stated clearly, and check the small print to make sure you are fully aware of the terms of the contract. A payday loan is a short term debt, but it is still a binding financial contract that can get you into serious financial trouble should you go back on the terms of your agreement.

Browse around different firms to make sure you pick a loan that has repayment terms that are agreeable to you. Perhaps you only need the loan for a week, or are looking for a slightly longer term loan of up to 6 or 9 weeks. There are different companies offering these loans and if you pick a loan that fits your ideal repayment time you can avoid paying extra on your loan, or finding yourself with high levels of interest or penalty charges should you take longer than expected to pay bac the loan. Think carefully about your needs and the finances available to you before you choose your perfect payday loan. Check that the fee/interest is not over the odds by comparing loans and interest rates on different sites. Payday loans are renowned for having high interest rates, but you should generally be looking to pay back around £25 for every £100 borrowed. If the interest doesn’t make sense to you then make sure the company explains it in clear terms to you, or look elsewhere. Find out what will happen should you struggle with repayments, as some firms will extend the loan without penalty, whereas with others you may find yourself paying back the full cost of the loan multiple times over should you struggle to pay it back.

Shopping around for the best deal

Use review websites to compare payday loans lenders, and to do some research before you borrow. On these sites you can often find real customer reviews, as well as additional information that might not be available on the sites themselves, to avoid the ‘hard sell’ and just get the basic facts about the lender. If in doubt, you should always try to borrow from a site that is affiliated with a financial organisation that you recognise and are comfortable with.

Once you have chosen your lender, it is important that you only borrow exactly how much you need, and make sure that you will be able to pay back the full amount on or before the repayment date. Never borrow more than you can afford to, hoping for the best, because you are almost guaranteed to struggle to make the repayments, getting yourself into a more serious financial situation. When planning to pay back a payday loan, it is also important that you make sure you have enough to pay back not only the loan, but the interest/fee as well. It is not unusual for customers to budget for their loan, forgetting that the repayments will have interest added, meaning the following month they may end up in the same situation and have to borrow again, inevitably getting themselves into a critical cycle of debt.

With all of these measures in place, borrowing from payday loans companies such as Simple Payday should be a helpful and straight-forward experience with no surprises, that will prove a great measure for quick, temporary borrowing.

Here comes the winter sun

September 5th, 2011

Continue reading…

How To Rebuild a Bad Credit Rating

September 1st, 2011

In the current financial climate, with banks cutting back on lending and price hikes making borrowing money a crucial way of staying afloat, having a bad credit rating can affect you far more negatively than ever before.

Credit checks are required in order to take out a loan, secure a mortgage and even to take out a mobile phone contract. A credit check tells lenders your credit history, and helps them to make a decision on whether you are an attractive prospect to lend to, ultimately making up their mind about giving you credit. A number of things can affect your credit rating. The most serious is defaulting on a loan or credit card, which makes you an undesirable customer for a number of years, but many little things can drag your credit rating down. Late payments on credit cards or loans, missing repayments and even unsuccessfully applying for credit one too many times can leave a mark on your credit rating, making it difficult to get credit later in life. You can find out how your credit rating stands by applying for a credit report from companies such as Experian or Equifax, who, for a fee, will send you your full credit report, which lists all of your credit activity and gives you an idea of where you stand.

Ways to improve your credit history

Should your credit rating not be looking as healthy as you might like, there are a number of ways that you can begin to rebuild your credit report.

 

  • Bad credit history credit cards

Offered exclusively to high risk customers with bad credit ratings, these bad credit-credit cards give customers a chance to prove that they are capable of responsible borrowing. Giving small amounts of credit with clear repayment terms, spending little and often on a bad credit credit card, and then repaying the full amount (or at least over the minimum) every month, will start to rebuild your credit report and prove that you can make repayments in a timely fashion. The most important thing with this option is to ensure that you never spend more than you can afford to pay back, and stay as far from the credit limit as possible. These cards are exclusively designed to help customers rebuild their credit history and should not be looked at as a form of ‘free money’, or used to get further into debt.

 

  • Check your credit history for discrepancies

Once you have obtained you credit report you should go over it carefully to make sure that everything makes sense to you. Mistakes can be made, and with so few customers checking in on their credit histories you may find that you have been marked down for a loan you haven’t applied for, a repayment noted as missed when it was made in full and on time and so on. Correcting these mistakes is relatively simple and will require you to contact both the lender involved and Experian/Equifax directly. Just one negative mistake on your credit report can drag your overall score down, so it is worth getting these mistakes rectified.

 

  • Keep up to date with current borrowings

It is never to late to start repairing a bad credit rating, so if you still have debt with companies, even ones who have led to a bad mark on your credit report, try to keep up to date with them straight away. If the problem is that you are still struggling with debt, you will find that a lot of companies are very understanding if you call them to explain the problem. You may be able to work out different dates or smaller repayments to bring you up to date. Even if it takes longer to pay off your debt, as long as you are keeping within the limits of your credit agreement, regular repayments of debt can be used to start to improve your credit score. Try to see any current debt as an opportunity rather than a hindrance.

 

  • Stop applying for credit

Every application for credit is noted on your credit score, and affects your rating negatively if you are rejected. If you have applied for a loan and been rejected it is worth getting your credit report and finding out why rather than applying for a loan with a new company. If you need a quick loan, and are in the position to pay it back in full, then payday loans do not require a credit check and can be deposited into your account within 24 hours. If you do need to take out a loan from a payday loans company, make sure that you are able to pay this back in full under the repayment terms (be they 30 days, 60 days or 120 days) and use this as an opportunity to relearn how to deal with debt. Improving your mindset about borrowing can quickly lead to improving your financial situation overall!