Lowering Your Interest Rates

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It’s a good time to call all of your lenders and try to renegotiate your interest rates. Since lenders are trying to get their loans paid, they are willing to work with almost every borrower to help them pay back. It’s similar to a home modification. You can try to get your loans modified and reduce the amount of interest you pay over the loan.

Lenders know they will lose a lot of money if your default. Most lenders will never see that money again. They don’t sue over small accounts because the legal fees are expensive. They will probably sell it to a collection company and let them deal with it.

If you have loans for homes, cars, or credit cards, call all of those companies and talk to someone who can lower rates or fees you’re being charged. Remember, every single dollar you save makes a difference. Learn the power of compound interest and you’ll realize how you can turn small pennies into big bills!

Payday Loans Online – Auto Renewal

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Most payday lenders online renew your loan automatically. This means that they will debit the finance charge from your bank account and let you keep the money you originally borrowed. This might sound good at first but you’re going to end up paying a lot of money for borrowing a small amount. Most payday loan lenders offer loans of $500. The cost of getting this loan can be anywhere from $10-$30 for every $100 you borrow. Let’s say you get a loan with a $50 finance charge. The lender will automatically take that money out of your bank account in 2 weeks or your next payday. Paying $50 for $500 over and over again amount to almost 1000% in interest charges.

The best thing to do is to save your money and stay away from payday lenders. They will eat you alive. You even might have to sign agreements that require you to keep your bank account open so they can keep debiting your account for the finance charge. You also might have to sign more papers saying you won’t file of BK while the loan is outstanding or some lenders even make you agree not to sue them. The best thing to do is go to a local payday lender if you really need to or just be late on some bills and save your money as much as you can.

Some Facts About Credit Card Fees

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credit-cardsCredit card fees are a big revenue stream for credit card companies. In 2009, credit card companies earned an estimated $21,000,000,000 just from credit card fees. That’s twenty one billion with nine zeros! These fees are excluding interest charges. Credit card companies charge a number of fees to generate more revenue. One common fee is a late fee. Most lenders charge anywhere from $20-$40 for being late, even just 1 day late. They will waive the fee as a one time courtesy if you call but they won’t be so nice if it happens again. Waiving late fees is a big no-no for credit card companies. Another fee is a over limit fee. If you have a credit line of $3000 and you go over that, you’ll get charged an over limit fee. This is usually the same amount as the late fee and is charged on your next statement. There’s another fee you have to worry about too. It’s the dreaded annual fee. People with good credit can get credit cards without them, but if you’re getting a credit card for bad credit, then you’re more likely going to have to pay up. Annual fees can range anywhere from $50-$2,500 a year depending on what card you get. Yours will most likely be on the lower side, but the Black cards and exclusive cards do have fees that run into the thousands of dollars!