Top Risky Backup Finances for Hard Times

Having your paycheck on time is probably the main concern when you remember all those bills that need to be paid. Most people rarely make a backup financial plan and very few put aside a stash of money that eventually could serve as an emergency fund. Of course, you might be saving some money from your salary, but probably your goal for this money is buying something or paying for your vacation but, have you thought of hard times and the risk to fall into risky backup finances?

Borrowing From Your Paycheck

Many people believe that it is not necessary to have idle money waiting for hard times because, in case of need, they can borrow from their own paycheck. This way, the money they will receive by payday will serve to cover the expenses of an emergency but will not pay for the regular bills as it should be. If you use the money this way with the hope to repay the outstanding bills by the next month, the risk is that some of those bills may come with penalty charges.

Getting a Small Loan

Perhaps applying for a personal loan could not be easy, particularly if your credit history is not good. However, small loans such as micro-credits and payday loans are easy to get because they are granted against your paycheck. Nonetheless, payday loans are probably the most risky backup finances that you may think off due to the high interest rates and finance fees associated with them.

Saving for Future Investments

Another risky move is saving money, not towards creating an emergency backup fund but with the hopes to invest and make money. While this could be a good backup finance plan, this involves the risk of doing wrong moves such as investing in the volatile market of stock funds without knowing at all what your are doing here, which involves the risk of losing your savings too.

Making a Quick Buck

Since nobody knows when financial hard times will come, one of the worst ideas you could think of is making quick money by gambling to cope with those unexpected expenses when the need knocks at your door. A lotto ticket, a bet in an online casino or any other game of chance that promises a fortune with a little investment is another of the top risky backup finances for hard times that you must better avoid.

The Steps Need to be Taken To Apply For Payday Loan


A payday loan can really be a lifesaver when it comes to getting cash quickly to pay for bills or unexpected expenses before the next paycheck comes through. Things like cars breaking down, unexpected medical bills or just running short on cash before one's next pay day can all require the need for quick cash to make ends meet. 

Here are the necessary steps that need to be taken to apply for payday loan:

1. First be sure to thoroughly understand how payday loans work before applying for them. Make sure you meet all the necessary requirements to be eligible for one. Also, be sure you understand the high interest rates and fees that are associated with this type of loan.

2. Shop for a loan. Be sure to compare several different payday loan companies to get the best rate and service. Searches can be conducted online over the Internet or you can contact several different payday loan companies that have offices in your local area. In addition to comparing rates, also look for customer reviews online to see which payday companies have the best reviews and greatest customer satisfaction.

3. Find out what is required to get a payday loan from your lender of choice. You will usually need to have a valid ID, proof of income and a checking account. Be sure that you fully understand the terms of the contract before signing it. You especially want to be clear on what the fees are and when you must repay the loan.

4. Fill out the payday loan application. Many companies allow you to apply online. Your other option is to visit a local office in your area. To avoid delays, be sure to fill out the forms properly and have all the necessary identification and other information that will be needed to process your application.

5. Wait for your payday loan to be approved. Once you know it has been approved, all you need to do is wait for the money to show up in your checking account. Usually, this will take place within 24 hours.

6. Spend the money from your checking account as needed.

7. Pay the payday loan back by the due date listed on your contract. It is important to honor the terms of your contract. That way if you are ever in a bind again, you will have a lender already lined up to help you.

Major advantages of Mortgage Refinance

Sometimes you desire to buy something but is backed up due to limited cash in hand. In such a case you can think of going for a mortgage loan. But what happens if you are already paying high interest rates of a mortgage loan? Here you can go for a mortgage refinance loan. Thus by applying the best mortgage refinance loan you can always solve your financial situations in hand. Let us here see some of the major reasons for mortgage refinance.

You can bring down your credit payment with mortgage refinance. If you plan to stay in your house for long more years then you can easily go for a mortgage refinance loan. This will bring the interest rates that you are repaying in monthly installments to come down and save a lot of money. And over the years to come the savings itself, will help you out for the mortgage refinance repayment of your house. But if you do not plan to shift in the next few years it is advisable not to go for such mortgage refinance.

Again if you are planning to stay for long years in your house with adjustable rate mortgage (ARM), then you can go for a mortgage refinance. This is because ARM can be low for a few years while you are repaying your loan, but after times it can move up to a higher rate which can create difficulties in your payments. By applying mortgage refinance you can shift from ARM to a fixed rate mortgage refinance loan paying fixed rate of interests over the years.

You can also remove private mortgage insurance (PMI) through mortgage refinance. Low down payment mortgage refinancing loan also allows you to get home refinance loan at lower costs less than 20 percent. You should always take your time to study these advantages of home mortgage refinance and consult your financial advisor before applying for such type of loan. I hope if moved carefully you will surely benefit from mortgage refinance loans and save a lot of money over mortgage loans.

Student Credit Cards – A Benefit To Students

It is now time for the parents to teach their children about maintaining their own finances. Student credit cards have helped in a great way to teach the younger generation about knowing their finances and how to maintain them well. It basically helps in building credit for the young adults. The longer is the person’s credit history; the far better is the credit score of the individual.

A person can start building his or her credit history from the student life. It will help the student to learn how to maintain credit score and in future can go for various loans without any hesitation. But if student credit cards used under parents accounts and the balance is not properly maintained, the parents come into debt affecting their credit history. So it is always advisable to teach your child about the proper usage of a student credit card. Getting the first credit card is a bit difficult as the companies try to put the student credit card with lower credit limit. This helps the student to overcome any debts if they do not work for a better future. But on the other hand credit card companies gives the benefit of providing credit cards to students as they are maintained very well, being their first card usage. Student credit cards also have some benefits like normal credit cards. They have cash back offers or rewards offer in certain bookstores.

Today various different student credit cards are available in the market. So you should always know all about them and choose the best one which suits according to your finances. The two common types of student credit cards are secured and unsecured. In secured cards the credit card is more like debit card where you have to pay an up front amount before using the card. It is rather a prepaid card and it helps to limit the expenses of young hands and avoiding them getting into financial debts. While in unsecured cards, a certain amount of credit limit is extended to the card and they are more like the traditional ones. These cards have more freedom to use as there are no up front fees that you have to pay before using it. Thus it is the parents who should let them know of the credit cards and which one suits their children the best to use.

Getting an Online Pay Day Loan

There are many online services and products that we have access to from the comfort of our own homes. One of those things is a payday or fast cash loan. Unlike conventional loans in which you must visit countless financial institutions and fill out dozens of pages of paperwork, an online payday loan can be applied for, approved and the funds can be directly deposited into your checking account, often with only in a matter of an hour or two. Provided there are no glitches in the application process, a fast cash, also known as the payday advance loan is one of the simplest types of loans to get.

When applying for a long term payday loan the main thing you must consider is that your credit history and score will not be a part of the equation. This is because your credit is based solely upon your gainful employment. It is usually desire that you have been at your job for a specific length of time, sometimes that length of time to be 90 days and in other cases it could be two years. This all depends on the loan company you are applying with. Keep in mind that there are hundreds of different lenders out there and as a result there are also a lot of different requirements and guidelines that each one of them imposes. You may want to shop around a little bit and do some research on the different loan companies that you might use.

The main thing you should keep in mind before obtaining a fast cash loan is your ability to pay the loan back in the time that has been specified on your agreement. Not paying your loan back in a timely manner could result in hefty fees and penalties. At best you will wind up paying interest each and every month until your loan is finally paid off. When you consider that your interests could be as high as $25 for every $100 borrowed, this is not chump change and taking out a loan should not be a decision that is made lightly.