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Debt Consolidation Bad Credit Loans Personal Loans Short Term Loans

Quick Loan Myths Everyone Should Stop Believing

If we are honest, there are a lot of quick loan myths in the loan industry which have negative perceptions. There are many misconceptions as some lenders employed unethical lending practices. As a result, a range of false or exaggerated perceptions has emerged. Still, you should know there are always two sides to every story.

1. Quick Loans Are Schemes That Rip You Off

To start with, due to the bad publicity that quick loans have received in recent years, most people have come to believe that these loan products are rip-off schemes. This one of the main quick loans myths.

Quick loans are suited for people that are in urgent need of cash but cannot access it elsewhere. Therefore, as long as you meet the loan repayment terms, everything is fine. Things are likely to get off track when you miss making repayments or you default – which applies to all types of loans.

2. Quick Loans Are Beneficial to Lenders Only

Moving on, another of the common quick loans myths is that providers of quick loans want to rip-off customers. However, considering that the lending criteria for these loans are really permissive, it makes sense for the interest rates to be as high as they are – especially since these loans usually don’t imply a credit rating check.

People with poor credit rating can seriously find these financing options life-changing. The only requirement you should meet is to have a steady income so that you can repay the loan in time. Also, since this type of loan doesn’t require collateral, the additional costs are greater than in the case of other types of financing.

3. Quick Loans Have Concealed Fees and Additional Costs

The list of popular myths regarding short-term loans continues. Many people are under the impression that payday loans come accompanied by hidden costs and fees the lender hesitates to disclose. The reason behind this assumption is that the majority of borrowers aren’t responsible enough to go through all the terms and conditions included in the signing papers.

It is against the law to conceal fees and additional costs – that is to say, all lenders based in Australia must be 100 percent transparent and upfront concerning the terms and conditions of the loan. Therefore, in order to avoid such scenarios, borrowers should take the time to scrutinise all the information about the loan product.

4. Quick Loans Are for People with Serious Financial Problems

Furthermore, there are also quick loan myths that short-term loans are provided for poor people with unstable financial situations. As mentioned, quick loans do not reflect financial stress, they simply offer people with an immediate alternative to cash.

Additionally, all types of people deal with financial difficulty. Therefore, it would be wrong to assume that whoever gets a quick loan is part of a specific segment of the population. As a matter of fact, when you need money for an emergency, it simply means that you’re going through something and there’s no other way in which you can get the money you need.

5. Payday Lenders Use Threatening Strategies to Collect Payments

While it’s true, to some extent, that some payday lenders use aggressive marketing techniques to promote their loan products, this doesn’t mean that they use threats to collect the payments.

Truthfully, reputable lenders, such as Australian Lending Centre are transparent and upfront regarding the terms of the financing. At the same time, reliable lenders never use these tactics. This merely means that you should do your research before picking out a lender out of the sea of lenders.

6. Taking Out Quick Loans Means That You’re Irresponsible

There is a common misconception that those who apply for a quick loan are financially irresponsible. Nevertheless, as long as you consider both the pros and cons of this decision, this doesn’t apply. It is implied that each financial decision has a range of pros and cons. It makes total sense for quick loans to have both pros and cons.

Evidently, the pros are that you get quick access to cash when you need it, without having to worry about the application process, adding collateral or a co-signer. When you need cash ASAP you don’t have time for these.

On the other side, the cons are that the interest rates are high and that, if you default on the loan, you might end up in financial hot water. Still, this applies for all types of financing – meaning that, regardless of the loan product you want to apply for, you should be 100 percent sure that your financial situation allows you to cope with making repayments.

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Personal Loans Car Finance

How to Get A Classic Car Loan on a Budget

Collecting classic cars is one of the costliest hobbies around and it is a little trick to get a classical car loan. The price tag on such a baby is sure to cause a panic attack in many people. People found ways of getting a classic car loan despite having a normal budget that in certain circumstances would destroy their dreams of being at the wheel of a vintage beast. If you’re aiming at getting a classic loan but your budget is nothing out of the ordinary, you might find this guide very handy. Let’s take a look at the steps you have to take in order to get classic car loans on a tight budget.

Classic car loan Guidelines 

Consider private lenders 

Credit unions and banks are not a good source of car loans, especially when you juggle with a couple of loans already. And even if they offer you the car loan you require, it will probably have a huge interest rate and it will be secured on your house. Private lenders, on the other hand, have a wide variety of car loans that come with affordable interest rates. What’s more, many of them are willing to tailor repayment plans for their clients.

You can find a private lender pretty easily. Just surf the Internet for a while and you’ll definitely find one. Stay away from lenders who ask for deposits or any other sort of down payment.

Hire a broker for your classic car loan

One that specialises in car financing, to be more precise; if you can’t seem to find a good deal, no matter how hard you try, such a broker can do some research and get back to you with one.

Moreover, a car broker can easily save you some funding, as well as the hassle of doing all the research on your own. Brokers collaborate with a lot of lenders. Sometimes you don’t even have to pay the broker because he works on a commission. In other words, if he gets you the dream-deal, he’ll get a certain sum of money from the lender he hooked you up with. This is how you save money by hiring a car financing broker.

Leasing

Tons of classic car enthusiasts choose to lease vehicles and then purchase them. This works perfectly for those people who can’t afford to buy a classic car with a down payment or can’t find a lender that’s willing to hand them some dough. After leasing, you can purchase that vehicle outright and you’ll know for sure how efficient the car is and whether or not it’s as worth it as you thought it would be initially. This is the best alternative to car loans you have (and the safest, to be completely honest with you).

A HELOC 

A Home Equity Line of Credit could actually provide you with enough funds to purchase the classic car you’ve been dreaming about for so long. Of course, you have to own quite a large, modern house that has a lot of equity in it. As you might know, a HELOC is a loan that’s secured on your house, which serves as collateral. If you fail to repay the loan, the lender can place a lien on it and sell it. The HELOC, therefore, should be your last resort. The Home Equity Line of Credit usually serves other purposes, but it’s totally possible to get a car with the money that comes from it.

Secured or unsecured

You’ll have to determine if you want an unsecured loan or a secured one. Under a secured one, you’ll get more money and lower interest rates. Under unsecured car loans, you’ll get a more limited amount of money and higher interest rates. But then again, an unsecured loan doesn’t pose a threat to your assets. If you fail to repay it, the worst thing the lender can do is to sue you. Keep in mind that he can get the right to place a lien on your assets even in this circumstance.

Extra caution is therefore advised. You certainly don’t want to be living in a Cadillac, as cosy as it might be. Think twice or even thrice about this issue and make a decision you won’t live to regret after a while.

Concluding Remarks 

Classic car loans are a great way of finding the car you want to get but can’t afford to purchase outright. Australian Lending Centre can provide some really valuable advice when it comes to taking advantageous car loans, as well as the financial products themselves. Make an enquiry on the website and you’ll most definitely find a car loan that suits all your needs and comes with an affordable interest rate and a good repayment plan. We hope you’ll get to be at the wheel of that shiny, vintage car you’ve been dreaming about for years on end.

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Short Term Loans Bad Credit Loans Self Employed

Dealing with Job Loss

Dealing with job loss is never easy, especially if it was the sole source of your income. It gets worse when you lose the friends you made at that company. However, there are financial options such as quick loans that can make this point in your life easier.

Overcoming job loss psychologically

Being separated from something you’ve gotten so accustomed to, is hard to handle. Learning how to cope with the disappointment that comes with the words, “You’re fired” is a challenging task. Not only did you lose your job, but you have also lost a part of yourself along with it. There is help out there such as job loss counseling services.

You lose your friendship circle as well as your professional stature. You might think that this is the end, but it’s not. It might be the opportunity for you to start something new. So you should just get up and go; mourning over your job loss is not the best way for you to cope. You just need to make sure that after some time, you’ll leave that in the past.

Deal with the problems facing you in the present; like finding ways for you to regain your professional identity as well as hiking up your financial status that may have sunk down. Looking and applying for job openings, planning your finances and deciding on a career change are some good options to consider.

Finding New Friends

You might have relied so much on your work friends that you may have forgotten to develop a social circle outside of your workplace. Make new friends that will be there for you in times of need; you need friends like these to support you when you’re having emotional breakdowns or even when you’re short on money. Having them there beside you while you’re grieving over your job loss will make it easier for you to move on.

Friends like these are hard to find and easy to lose – just like money; you need to work hard to get them. But spending your money on unnecessary things will make them disappear faster than you could say “friends”.

Consider your current financial status, credit card and savings. You might not be able to last long, so you need to find a job STAT. Scouting for job opportunities is your first step, then you could start setting up and editing your resume, filling out requirement slips along the way. You could also check out job offers that you received previously – if you had any. If you need finance in the interim, a short term loan may be a solution.

Don’t forget to minimise your daily expenses

If you can’t find a job quickly, a way of dealing with job loss can be minimising your daily costs. These include food, fuel, and clothes. Shopping for unnecessary things and eating out at restaurants shouldn’t be on your priorities list right now. You can celebrate with a fancy dinner when you find a job replacement, but as of now, stick to homemade food.

If you’re considering a career change, you need to ask some consultants about that. Alternatively, you could simply choose a career path similar to your previous job and the course you took in college. You’ll need some documents to support your resume, so make sure you have them ready in case you get called in for an interview. When you do get called for an interview, demonstrate that you are qualified, confident and job ready. Smile and be yourself. Those are the two things that you should remember to do. Even if the interview doesn’t go as well as you expected it, remember that at the end of every dark tunnel, there is light.

Dealing with job loss can be an opportunity for a fresh start

Losing your job may leave a negative impact on you, everything changes. Things just aren’t the way they used to be anymore. Your daily routine to go to work at seven sharp, chat amongst your workmates, go to your cubicle, then fill in the papers you need to work on – is now gone. Because of this, your self-esteem and self-confidence might drop. When you no longer know who you are you lose your purpose, or at least you think you do. But, look at the bright side. You can look for new employment, start a part-time gig or pursue a new passion and earn money from it.

Australian Lending Centre offers quick loans to people who suffer from job loss. We will help you start over, so you can start building a strong financial future.

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Debt Management

Debt Agreements FAQ

What are the basic facts about the debt agreement that every borrower need to know? A debt agreement is one of the ways for the creditor to recoup some of their losses when the debtor is not able to pay them back in full and when it is difficult to collect on the debtor’s outstanding loan. The creditor and the debtor put new payment terms in writing, to allow the debtors to at least make partial repayments. Read our debt agreements FAQ and learn more about debt agreements.

When do I have to enter into a debt settlement agreement?

It is applicable when you owe a lender an amount of money and you are not able to pay it back in full. You need to document the new terms of the loan whenever you and your creditor agree to settle the debt.

Why do creditors settle for debt agreement?

By entering into an agreement, the creditors no longer have to waste time chasing you down. Instead, both of you reach an agreement on how much you can pay them.

What are the contents of a debt settlement?

The agreement contains the following:

  • How you will make payment
  • A statement that in case you fail to make timely payment, the total amount you owe becomes due.
  • The date by which payment should be made
  • The new debt settlement amount you agree to pay
  • The original amount you owed
  • You can also add other terms such as liability clauses and other things both of you would like to include.

Why do banks frown upon applications from borrowers in debt agreements?

The major banks may not approve a loan from someone who is under a debt agreement because they are very cautious when lending money to someone who has a bad credit history. They don’t want to put the company at risk in approving a loan for a borrower who cannot make timely payments.

Can I refinance a loan when I am still bound by a debt agreement?

Specialist non bank lenders like Australian Lending Centre allow borrowers like you who are still in a debt agreement to refinance your current mortgage so you can pay your agreement in full. If you have been in agreement for a year, but you made updated repayments, you might be able to borrow up to 70-80% of the value of your property. However, it is important to arrange for a pre-qualifying assessment to ensure that you have a realistic calculation of your home equity.

What are the benefits of entering into a debt agreement/settlement?

If you have limited financial resources and your situation does not allow you to pay back your debts in full, you can enter into this agreement. By doing so, you can avoid going bankrupt—which would have a terrible impact on your credit rating. It also helps you overcome difficult financial situations, by giving you some extra money to settle your debts and to pay for your immediate needs.

Other benefits of debt agreements include freezing the interest accruing on your debt, and paying a single monthly repayment instead of dealing with multiple repayments.  If you have debt agreement administrator, he or she handles all the communication with your creditors, not you. That means lesser pressure on your part. Debt Agreements are appropriate for applicants who are at the verge of bankruptcy. It can help you avoid the major consequences like having a bad credit score that could result in countless rejections of credit applications. Bankruptcy must always be the last option. So, one of the effective alternatives a struggling borrower should consider is a debt agreement.

Is there an alternative to debt settlement?

If you don’t want your future creditors to know that you are struggling financially, to the extent that you entered into an agreement to repay your debts, try debt consolidation. It can help you negotiate payment arrangement with your creditors and it is definitely a practical alternative to bankruptcy.

Final thoughts

A debt agreement is a contract driven by the desire of both parties to settle the debts. The lender wants to get back the money while the debtor wants to pay it off.

Take a good look at the content of the debt agreement. It controls and directs the borrower on how to pay back the loan and how much to pay. But, if you don’t want to have a record of debt agreement on your credit file, you can simply take out a second mortgage or a personal loan, or any other affordable loan product to pay off the debts.

What is important is that you would satisfy the full amount of your loan, and at the same time enjoy an affordable and convenient repayment for the new loan.

When you have finally settled your debts, try to practice good financial habits. Pay your debts on time, spend less and try to grow your money either through investments or additional source of income. This way, you wouldn’t have to face the same dilemma of signing debt agreements anymore.

Categories
Personal Loans Short Term Loans

How to Find Creditors of Quick Loans Online

When finances are tight, sometimes the best way to get out of a pinch is to find quick loans online. The Internet is very convenient.  You don’t have to stand in long, uncomfortable lines to apply, and everything is just a click of the mouse away. All you’ll have to make sure now is that you choose a loan that is convenient for your own budget.

Online loans can be quite expensive if you don’t know where to look. Since most of them are given on short notice, the interest rates can be fairly high. You need to do some pretty intensive research to find a company that won’t bury you even deeper into the cycle of debt.

Finding Quick Loans

As we mentioned, research is key. There are many online lenders willing to work their payment options around your budget. If you need some quick loans or just some advice, all you’ll have to do is contact them and ask the questions that are eating at you.

Keep in mind,  that online (or payday) loans are usually the most expensive way to get your hands on some credit. Unless you can find a company that offers lower interest rates, you’ll be better off asking for an advance from your boss, or go the classic way: go to the credit union or the bank.

Pay attention to the cost of obtaining a quick loan. Along with the interest repayments, you will have to pay the initial charges to take out the cash, but also other fees that might be levied on you. You may want to use online loan calculators as they will tell you exactly how much you have to pay by the end of the month.

Before taking out quick loans, you should make sure that you can handle the payments. These loans are usually short term and taken out on an exact time span – a week, a month – whatever you decide. If you can’t manage to gather the cash by payday, you will incur additional charges for every day that has passed.

Furthermore, if you find yourself nearing payday, you may want to resist the temptation of getting another loan to pay it off. If anything, this may only bring you more trouble than it can manage to fix.

Considering the Alternatives

Before opting to find quick loans online, remember that these should only be your last resort. There are many alternatives out there – ones that won’t rip you of every cent in interest. Here are your options.

Borrow from friends or family

If you have some unexpected bills to pay and you are not sure that the bank will provide, the first thing you should do is ask your friends or family if they could lend you some cash. Sure, it may be awkward to take money from people that you know, but if the sum is not that big, you may be better off this way. Plus, you won’t have to pay them any interest. The most you’ll have to do is pay for their drinks the next time you all go out.

You may, however, want to make a written agreement for the payments. It will give them some peace of mind, and at the same time, it will give you a nudge to pay their money back on time, without going through the embarrassment of being late.

Go for a credit union

Online quick loans may seem like the fastest way to get your hands on some cash, but they may also bring a whole load of problems in the long run. It is very unlikely for banks to lend you money in small amounts, which is why a credit union may be a more convenient option. Plus, credit unions also have better interest rates than a payday lender.

Before going for a payday loan, go online and look for a local credit union. Contact them and ask for the costs, after which you may start weighing your options. Talk to your creditor

People usually go for quick loans when they are close to a deadline and have no money to cover that payment. However, before going for payday loans, you may want to talk to your creditor and see if you can reach an understanding. Ask them if you can get an extension for paying your bill.

It can be easy to find quick loans online. All you’ll have to do is go online and start looking for the companies that offer the lowest interest rates.

At the Australian Lending Centre, we offer personal loans that are quick and easy to obtain, that could be the right fit for you. Call us on 1300 138 188 for a free assessment or fill out our enquiry form now.