The Truth About Payday Loans

money cash debt

Payday loans are known where lenders charge high interest rates based on your credit profile. Also referred to as short-term loans, credit card loans, or credit cards, these loans are not emergency loans. According to the Consumer Financial Protection Bureau, 12 million people borrowed a payday loan last year without realizing the triple-digit interest rate they were paying. It is quick to process if you have the complete requirements.

Higher Interest Rates

forty percent interestPayday loans charge high fees and some of the highest interest rates on the market, making it challenging to repay the loan on time. Most financial experts recommend staying away from payday loans, even if you need quick money.

The loans can be extremely risky because they are expensive. According to the report, the average payday borrower earns about $30,000 a year and that 58% of those taking out a payday loan had difficulty covering monthly expenses because of problems. According to the report, it is nearly 400 percent in the first six months of repayment, with an average repayment of just over $1,500.

Short-Term Payments

Payday loans are so-called because many lenders pay the loan on the borrower’s next payday and because their length can vary from 14 days to 6 months. As a result, the Consumer Financial Bureau found that 80% of payday loans were renewed or pursued within 14 days of the original loan being taken out. Most alarmingly, the average payday loan consumes 36% to 60% or more of a borrower’s gross paycheck, and most borrowers can afford to repay only a few hours or even less of their paycheck.

Endless Cycle of Debthand stop end

Because payday loans are expensive, people are stuck in an endless cycle of debt, because if they cannot repay their current loan, they have to take out another loan to repay it. That debt is overgrowing because of the high cost of payday loans. As a result, debt increases and can cause people to misbehave, such as overeating, drinking, smoking, gambling, or even drug use, if people cannot repay their current loan and take out the loan without repayment.

Bottom Line

Payday loans are touted as a way for people with bad credit to get cash quickly. It is difficult to break out of a cycle of dependency when you are trapped in it, and payday loans can cause problems in the long run. Some are small loans that cannot be repaid on time, but some are up for renewal, with interest rates of up to 30 percent or more.…

Picking a Credit Card Machine for Your Business

Having the right credit card machine can do wonderful things for your business. Whether you are a new entrepreneur or someone who has been operating your business for many years, a credit card machine can streamline business processes, which can be good for your business and customers. It can also open new doors for your business to grow.

There are many types of credit card machine that you can choose from. When selecting the right solution for your business, you may need the following things to consider so you will be able to benefit from its use.

Business Type

When contemplating on what kind of credit card machine will be best for your business, you must consider the type of business you have. Businesses that have designated areas for their transactions may need the traditional credit card machine or countertop machines. This kind of machine needs to be connected to the internet or your phone. It lacks mobility, which is perfect for retail stores, restaurants, salons, and medical and dental clinics.

If you are a businessman who is always on the go, you may opt for mobile or wireless credit card machines. With this type of credit card machine, you may be able to make payments wherever you are.

Available Technology

If you are a new entrepreneur without any existing machines and devices, choosing a credit card machine that will fit into your needs and goals may be easier to do. But if you have current devices, using existing technology will cost you less. But if you are bent on changing your present payment processor, you have to let it be reprogrammed.


If you are a businessman with a myriad of activities that requires you to be moving from one place to another, a countertop credit card machine may not be the best solution for you. And although your business may be an actual store with limited space, a countertop credit card machine may not also be appropriate for your business. Choosing the right type of credit card machine should not only depend on the business activities that you do, but convenience should also play an important role.


The price of credit card machines varies according to the type. These machines can cost you from a range of $100 – $450. But whatever the cost is, the primary considerations of why you should be buying a credit card machine is its usefulness in your operations and how you can attain your goals of growth and financial success.…

What to Look for When Choosing an Accountant

An accountants desk

A business cannot survive without an accountant. They are among the major pillars of any business. The finance world is dynamic and evolving and so should be the professionals. Today, accountants do so much not just the normal recording, calculations and balancing the records. Businesses are now consulting accountants in areas like risk management, technological recommendations, profit enhancement strategies and much more.

With all that said, it is clear that hiring an account in the current business world is more demanding than it was some years back.


Balancing accounts recordsQualifications make the first vetting factor. The person you are about to hire must be trained and qualified to work as an accountant in your area. If you visit their office, you will realize that many of them have displayed their qualification certificates on their office walls. If this is not the case, do not shy from asking them to produce their qualification certificates. It is only qualified accountants who are licensed and recognized by the authorities. It is therefore important to make sure that you have hired the right person for the best services.


It is important to hire someone who is well aware of your industry. It narrows down to specialization. Is the accountant in a position to offer all the services you are looking for? How long have they worked in the industry? As we all know, experience comes with expertise. Therefore, hiring an experienced accountant means quality work. To be sure of what they are saying, carry out a background check on them and see what people are saying about the accountant’s services.


Service chargesYou cannot ignore cost in the purchase of all goods and services. Professional accountants either charge on an hourly basis or fixed charges. Irrespective of the charging method, you should be comfortable with what they are asking for. Refer to your budget and see if you can afford what they are asking for. Cost affects the quality of work, but since we may not all afford the most expensive accountants, make sure that you get value from your money.


How accessible is the accountant? Many times, large accounting organizations sideline small businesses and give priority to the large organizations. If you are not careful, you will be assigned an intern instead of an experienced accountant. To avoid such shortcomings, ask for referrals and see what businesses of your size have to say about the services they got.…

Individual Voluntary Arrangements Pros And Cons

heavy debts

There are thousands of people out there struggling to pay debts. It gets to a point where one feels like it is time to get financial help. The burden of debts can be too much. IVA is a way to help people solve their debts in a more manageable and structured manner. IVA is open to everyone. The ability to use it is based on your current financial status, not your profession or job. Like any other debt solution procedure, IVA comes with its advantages and disadvantages. This article will discuss IVA Pros & Cons. Read on.

IVA advantages

  • debtorDebt free- IVA lasts for a fixed period. Usually, not more than five years. This means that after the fixed period agreed, you might be debt free.
  • Stops payment demands- once you agree on IVA, your creditors will be bound by the agreement, and they are not supposed to demand payments from you by letter or telephone.
  • Charges and interests will be frozen- immediately the IVA is approved, your creditors are not supposed to add interests or charges to your account.
  • Monthly payments are reduced to once- after the agreement is signed, you should agree with your creditors how much you can afford to pay in monthly basis.
  • Repaired credit rating- after you have completed your payments, you will be issued a certificate of completion. This will bring a positive impact on your credit rating.
  • The agreement is legally binding- IVA legally bids you and the creditors. This way, you will know your current stand and after how long you will walk debt free.
  • It is a private agreement- this is a private matter between the debtor and the creditor. There will be no public notice about the same in the media.
  • Your profession will not be affected- you can comfortably continue with your occupations as you undertake IVA. It will not affect your career in any way.
  • Lower fees- the processes are cheaper compared to court cases and official receiverships involved with bankruptcy.

IVA disadvantages

  • debtsCreditors must agree- for the avenue to go through, all your creditors must agree through a vote.
  • Monthly payments should be affordable- IVA will only go through if you or another individual can pay the monthly payments to the creditors.
  • You must stick to the monthly payments- if you fail to stick by the amount you are supposed to pay monthly, IVA will fail, and your creditors will be at liberty to take actions against you.

How to Find the Right Money Lender

How to Find the Right Money Lender

Finding a good money lender is not always a simple task. This is because there are many money lenders out there who are after making big profits. Going for such kind of lenders will be risking being taken for a ride. For you to find a good money lender, there are several things that you will have to put into considerations.

The need for the loan

The need for the loanAre you sure that the only option that you have is to go for that loan? Most people make a mistake of taking a loan when they do not even need the money. That is a bad practice because it will result in you misusing the money that you will have to pay back. So before you take a loan, it is good to ensure that you know a clear plan on how you are going to spend the money. Taking a loan should always come as the last option.

Extensive research

There are many companies that offer a loan, and not all of them are after helping you out of your financial situations. They will instead work to ensure that they get the best of you. However, if you take some time to do extensive research, you can be sure that you will find lenders that you can trust. The good thing is that the internet is readily available to provide you with all the information that you may want to make the right choice.

Interest rates

Another important thing that you need to consider when looking for loan lenders is the interest rates. Some companies have higher interests than others. You definitely do not want a lender who will charge you a lot of money. So before you take a loan, make sure that you do some price comparison. Compare different companies before you make the final decisions. Also be sure to check out the hidden costs before you choose a lender because there are some companies that tend to have hidden costs.

The reputation

The reputationThe reputation of the lender is another important factor that you should always consider. If a lender has a good reputation, then it means that they are known for offering quality services. Also, when you go for a reputation of the lender, you are sure that they will never take any advantage to mistreat you in any way. One way of telling you that you are dealing with a reputable lender is looking at the online reviews.…

A Guide to Getting a Guarantor Loan


A guarantor loan is a special type of loan where the loan is secured by a guarantor. A guarantor is a person who is willing to take the risk of the settling the loan is the person given the loan does not pay. The guarantor must be a person with assets that can be sold to pay up the loan. The nature of such loan is a low-risk low return. They don’t attract a high-interest rate because they are not risky loans. Getting a guarantor loan is not an easy task. There are steps and procedures that one have to put into consideration before taking the loan. This is a guide to getting a guarantor loan.

persoal loan
Find a reputable guarantor

The first step is to find a reputable guarantor. The amount of loan to be given will be based on the ability of the client to pay and the reputation and wealth of the guarantor. The guarantor should be a reputable person in the community. In most cases, the guarantor should be a close friend or a family member. The guarantor should be willing to take up the risk. One should be able to convince the grantor that he has the ability and will to pay the loan. The best person to look out for is a person who has been a guarantor in other places. It should be noted that the guarantor has the freedom to withdraw his services at will. In case the person is declared bankrupt, he cannot continue serving for the loan.

Contact the best lending institution

The second step is deciding on the lending institution you are going to ask money from. The most common lending entity is a bank. There are other institutions like the Sacco, cooperative and international banks. If one is a member of a Sacco, loans from the institution are the best as they attract less interest. However one has to be an active member and saved for more than a year. Decide on where to borrow your money from. Approach the institution to understand the terms and condition of the loan. The loan repayment policy, fines, and penalties attached to late payments. Get to understand whether they will accept the guarantor of your choice. If they reject your choice, ask them of the reason and try to look for another person who can meet the requirement.

time limit
Plan the repayment schedule

If you reach an agreement with the lending institution, before taking the loan, plan the repayment schedule. Try to see whether your income can service the loan. Consider if the loan has a grace period before maturity of the repayment period. Cut on unnecessary expenditure to raise more fund to repay the loan. If the loan was used for an income generating project, the proceeds from the project could be used to repay the loan. Interest on the loan is not taxed. One should claim the allowance from the tax officials. If all is set, apply and take up the loan.…

Tips on Trading Digital Currency

digital currency

Trading digital currency is not easy as many people think. Since digital currency is quite a new concept, many people are still not informed on how to go about it. Before you think about digital currency trading, it is important to make sure that you understand how it works.

Just like any other type of investment, going with caution will help you achieve your fitness goals. Here are some of the tips that will help you on trading digital currency:

Identify the options available

When it comes to digital currency, many people think about bitcoin. The truth is that there are still other options that are available to you. You can always look at the options available so that you can decide on the best investment decision.

We still have new and upcoming currencies like China coin, ven, and others. These currencies still have a potential for growth just like bitcoin, and they are not as expensive as bitcoin. Unfortunately, many people are still clueless about the options that are available, and this only leads to poor decisions.

Good trading platform

Looking for a good trading platform is important. The platform that you use for trading makes all the difference in your digital currency experience. It is important to choose a platform that is reliable and easy to use.

You need to remember that there are many digital currency scams out there and investing in a wrong platform can be detrimental. Always make sure that you invest in a platform that can be trusted.

Invest logically and not emotional

Most of the people invest in digital currency for speculative results. However, it is important to go about it with caution. You need to invest in digital currency logically and not emotional. This means that you need to invest what you can afford to lose.

There is always the temptation to invest a lot of money with the hope to make a huge investment. This is a wrong way to go about it because in case the market is volatile, you are likely to lose more.

digital currency

Have a plan

The most important thing when it comes to investment is to come up with a plan. You need to create a plan on how to do it otherwise you will end up going on a trading frenzy. Everything should be done in moderation. Make sure that you create a plan on how much money you should trade every month to avoid spending all your finances on trading.…

Tips on Preparing Financially for Retirement

planning for retirement

Working for the rest of your life is impossible. At some time, you need to retire from your job. Retirement can be scary, but it doesn’t have to be challenging. The main thing to consider before retirement is making sure that you prepare yourself. Preparation is all about financial and emotional readiness.

Many people fear retirement because they are uncertain about the life that awaits them. If you want to look forward to retirement, then make sure that you make all the adequate preparations right now. Here are tips on preparing for retirement:

Work with a timeline

When preparing for retirement, it is important to work with a timeline. You need to decide the retirement age so that you can know how to prepare for it. For instance, if you are 30 years now and you need to retire at 50 years, you need to know that you have 20 years to work.retirement

If you set this timeline, you will work with retirement age in mind. You will know how much savings and investment you need to make each year so that you can retire comfortably at your ideal age.

Turn your savings to investment

You need to remember that once you retire, you will not be receiving a paycheck every week or month. Making sure that you turn your savings into investment is important. If you continue eating into your savings, then you are likely to suffer at the end of it. Investments grow over time compared to savings that are likely to end after some time.

Have a plan

Creating a plan is also a big part of retirement. You need to make plans for your housing, daily expenditure, and even financial planningmedical expenses. After retirement, many people tend to look for a retirement home.

A retirement home might include downgrading to a smaller house or even looking for another home. Moving to a new city or location is always a good plan after retirement.

Clear your debts

It is important to make sure that you clear your debts when you are actively working. Try as much as possible and clear your mortgage before you go for retirement. During retirement, the financial flow might not be constant, and the last thing you want on your plate is debt.

Clearing your debt before retirement is the best way to enjoy your retirement years. You can always work extra hard so that you can rest once you retire from employment or business.…