Christmas needn’t be a financial burden

It’s less than a month to Christmas and some people are starting to feel the drain this festive season is going to inflict to their finances. The credit crunch coupled with unusual expenditure such as presents,  office parties, Secret Santas and more will really affect consumers’ bank balances.

Where can you find emergency cash to cover these unusual costs? The Cleveland Leader has written 5 top tips that can get you out of this mounting financial pressure, read the original article here

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Were you turned down for a payday loan?

Most of us have applied for a credit card, loan and even payday loan at some point in our lives, however sometimes the application goes through and other times it doesn’t, even though your circumstances haven’t changed, sounds familiar?

Ever wondered why your payday loan application was turned down? Below you’ll find the common reasons as to why someone will be turned down for credit, it’s not some sort of magic algorithm but a credit score calculated using your application details and your credit report. This will then calculate a score that varies from lender to lender, and the score will determine whether you get your payday loan or not.

Check your credit file

The first step to finding out why you’ve been refused a payday loan would be the check your credit history. Your credit history will detail your debt.

You have no borrowing history

Payday loan lenders, credit card companies and other credit providers will prefer a borrower who has got history of paying debts diligently. Without a borrowing history, a payday loan lender will not be able to tell whether you are someone who repays on time and manages your credit effectively.

You are not on the electoral roll

This is a very common reason as to why people are refused credit. The electoral register is a tool mostly used by payday loan lenders to verify your identity and that you live where you say you live.

Too many searches on your credit report

Whenever you apply for a payday loan, the lender will do a search on your credit report; this means there will be a track record for every time you apply for credit. Usually this doesn’t really affect the likelihood of getting a payday loan accepted, however if you apply for a payday loan from several lenders in a very short space of time they might think you’re in too much debt (unlikely to make repayments), desperate for cash, you’re a fraudster, etc.

Lender requirements vary

Some payday loan lenders prefer younger audiences, others prefer people who fit within a specific socio-economic group, you’ve done nothing wrong, it might just be you do not fit their profile.

You have been in debt in the past

Missed credit repayments stay on your record for three years, so while you may be financially fit today, lenders may take a dim view of your past. Bankrupcy can remain on your file for up to 15 yeards and CCJs will be held on file for six years.

Budgeting can help strech your money further

During this economic downturn, even people who have been careful with their money, pay their bills on time and have done all that is possible to keep in the black are struggling to get ends meet. Such people shouldn’t despair, they’re doing everything they can to ‘survive’ in this uncertain economic climate, just keep up the good work.

Budgeting is a good way to control your spend and have an overall view on monthly outgoings. A good budget should show your combined income (such as salary and any benefits you receive) against regular outgoings such as bills (gas, electricity, water), entertainment (Sky/Cable, dining out) and housekeeping costs.

Once you add all your income and outgoings you’ll be left with a positive or negative figure.

A positive figure means you can decide what monthly repayments you can afford, ie - clearing credit cards or short term loans, putting some money aside for savings, etc.

With a negative balance you need to consider carefully what monthly costs you can reduce or remove altogether. The internets is plagued these days with sites that will compare your utility suppliers and show you a cheaper option, you can even switch credit cards and/or see what are the best UK pay day loans out there. As well as doing an audit on bills, there are some non-essential costs that you’ll need to cut (such as satellite TV, expensive shopping trips, etc) this will enable to settle debts and be more financially stable in the long run.

If you are budgeting to work out what you can afford to pay back to existing creditors, try to work out a timeline of which debts you might be able to settle and when, plus prioritise the most important debts and tackle them first.

Budgeting needn’t be an arduous task, many web sites will provide you with simple tools that can automate the process, such as MoneySavingExpert’s budgeting planner to uSwitch’s money saving tips

Come on, give it ago, it’s a first step to put your finance in order and figure out whether you really need to have that Starbucks breakfast every day…