Finance Your Mortgage or Pay Off Credit Cards

Pay Off Credit Cards

Are you worried about how you are going to survive financially? Well, you’re not alone. The economy is in bad shape. Incomes have dropped by 10% from what they were last year. With the rising cost of utilities, food, gas and other necessary living expenses, many people are running out of cash long before their next paycheck.

The economic crisis has not bottomed out and is not expected to until sometime in 2010. Financial advisers are suggesting people tighten their belts a little tighter by adopting a budget and sticking to it. Cut out all unnecessary expenses, pay off credit cards and keep one or two credit cards with the lowest rate and start a savings account. It’s easy to say but hard to do.

Paying off huge credit cards balances and keeping the mortgage on the house current is a struggle for most Americans today. But when you’ve done all you can do and bank loans have all but dried up, here are a few sources of cash you might try:

Virgin Money

Virgin Money has two types of loan programs. Social Lending which formalizes loans between family and friends and Traditional Lending, you borrow from Virgin Money.

Social Lending

Let’s say you need extra money to pay off credit cards, to fix the car or for a down payment on a new home and you think mom or dad might help. Relatives or friends would probably feel more comfortable loaning you money if the loan was formalized and handled by a third party. Virgin Money negotiates the terms and repayment schedule. The interest rates can be lower and the terms more flexible than a traditional bank.

Traditional Lending

Maybe you are trying to sell your home and can’t find any bank approved buyers. Virgin Money offers FHA, fixed and adjustable rate mortgages. Get the information you need from Virgin Money.

Lending Club

Reader’s Digest lists lendingclub.com as a possible source of cash. They offer low rates and fixed monthly payments on personal loans, auto, debt consolidation, student and home improvement. If your credit is good, you can get a lower interest rate than you would receive from more traditional sources.

Lending Club has been written up by CBS News, The Wall Street Journal, The New York Times, ABC News and quite a few more. Read the news coverage and see what you think.

Since traditional loans are harder to get and social lending clubs have become a viable source of loans, the Securities and Exchange Commission is busy trying to form regulations and approve each club. Two clubs awaiting approval are Loanio.com and Prosper.com. They have suspended operations and hope to reopen soon. At the rate the economy is crashing, let’s hope it’s soon!

Loanio.com and prosper.com are for riskier loans. They facilitate loans between borrowers and lenders. Be sure to gather as much information as you can and understand the risks and your rights before you borrow or lend.

Private Student Loans

The demand for student loans has increased while the availability of loans has decreased. GreenNote is a social lending club for student loans and they provide fixed rates and no co-signer or citizenship is needed. Relatives, friends or anyone who wants to invest in you, can fund your education. GreenNote formalizes the loan and handles all the details, including repayment. Read news and press releases for GreenNote.

Be careful, these loans are real and need to be paid back. Missed or late payments will be reported to credit bureaus.

Bad Credit Affects More Than Just Finances

Bad Credit Affects More Than Just Finances

Bad Credit Affects More Than Just Finances – Most people realize that having bad credit can create a variety of financial problems. If you have poor credit, it is difficult to be approved for any new credit accounts. Having bad credit can result in less than ideal loan terms. You might very well struggle for approval on a loan for an automobile or a new house if you have poor credit. Unfortunately, a bad credit history can reach farther than your pocketbook.

If you are in the market for auto insurance, a poor credit rating can make it difficult for you to find affordable insurance. Many insurance companies charge higher premiums for people with poor credit. This might sound like a financial issue, but it is much more than that. If you cannot find affordable car insurance, you might not be able to drive! This might not be so bad if you live in an area with public transportation but does create problems if you live where there is no or minimal public transportation.

You probably do not give your credit history much thought when you are applying for a job, but you should. A poor credit history and credit score could prevent you from being hired from a job. There are employers that will request a credit check if they are giving consideration to hiring you. If you have poor credit, the employer might believe that you are not responsible enough for the job. They will probably overlook you for sure if you will be handling finances in your job because they believe you cannot handle your own finances. A poor credit score is not something to take lightly if you are hunting for a new job.

A poor credit history can make if difficult for you to rent a home. Most landlords will request permission to request a background check. If you have a poor credit history, they are not likely to approve you as a tenant. If you have no option other than renting an apartment or house, you could face an uphill battle if you have bad credit. If you are approved to rent a property, it will probably not live up to the same level of quality as a house or apartment you could have rented if you had good credit.

Having bad credit can affect the way you feel about yourself. You might feel as if you are failing your family or yourself if you have not been able to establish good credit. You might even feel embarrassed by your credit problems. This makes it difficult to stay positive and motivated enough to improve your credit rating.

A poor credit history can affect you if you have children who are ready to go to college. Most students do not receive enough scholarships or financial aid to cover their entire tuition and expenses. They might look to you to help them secure loans for college. If you have poor credit, this might not be possible.

Parents often like to help their children when they buy their first new car or their first home. Many parents do cosign for their adult children who need a significant loan. This is something that you will not be able to do if you have very poor credit when they need your help.

It is important to work to build good credit or to rebuild your credit if it is currently poor. Poor credit will have a negative impact on many aspects of your life. It will affect far more than just your pocketbook. Start making responsible financial choices today.