Going to jail for not paying a loan? And you thought debtors jails were ancient history! The truth is that for many loans you can not go to jail for failure to repay. You can end up in court, but jail time is not a punishment for most debts.
You may or may not know that when you make a payment towards a loan that not all of that money is paying off the loan. This is something that is critical to understand.
If you think every payment you make goes towards paying off the loan then you will be very surprised when the loan length ends up two or even three times longer then you had anticipated.
The loan payment you make is actually only partially going towards repaying the actual loan amount. In fact, most of the time the majority of the loan payment is actually paying interest to the lender. This is why it’s important to shop around for the best rate possible and this is why getting a low interest rate is so important. The less interest you pay the more is going towards the actual loan and the sooner you will have it paid off.
How do you get the best interest rate?
Shop around! If you have great credit, you’ll have your pick of many lenders. If you are credit report challenges, your interest rate might be higher but a loan can actually help you improve your credit rating very quickly when you make payments on time.
Understanding the breakdown of a loan payment is important and knowledge will save you money!
Posted October 23rd, 2008 by Kelvin No Comments »Selecting a lender is one of the challenges with getting a loan. Lenders are not all the same, nor do they all offer the same types of loans. You have to learn about the different types of lenders so you can choose the best lender and get the best terms possible.
Do Your Homework!
Once you have an idea of which lenders will be able to give you the type of loan you want, you have to check each lender out. You can start by getting quotes from different lenders and looking at their company reputation.
Being equipped with a list of quotes will help you begin to see what you can expect when you start to negotiate the loan.
Knowledge Equals Negotiating Power
Selecting a lender can be a lengthy process. You do not just want to go to any lender because a better lender may be out there. Make sure to shop around. If you have a great credit history your choices are abundant and lenders may offer great incentives to help you choose them over the competition.
Posted October 16th, 2008 by Kelvin No Comments »The FASFA is an important part of applying for student loans. Even if you are not getting government loans, the FASFA can help you to get private loans. It shows that you have at least tried alternative options before coming to the lender for a private loan.
The FASFA is pretty straight forward. It is even offered online so you can easily fill out and submit it quickly. You will fill out a series of questions about yourself and your finances. If you are still living at home you will need your parent’s information as well.
What will you need?
You need to make sure that you have the previous year’s tax returns because you will need them to fill in the financial information on the FASFA. It is important o make sure that all the information is accurate.
The FASFA is important to securing student loans so be sure you understand it completely which can increase your chances of success.
Posted October 9th, 2008 by Kelvin No Comments »
