Can someone explain an interest only home loan to me?
An interest only Home Loan is just that. You borrow a sum of money over a term, say twenty five years, pay interest only until the twenty five years is up and then pay the sum borrowed off. There are basically three ways y=to pay it off:- 1 Take out an endowment life assurance policy that pays the loan off if you die. If you don't the premiums are invested to give a lump sum after 25 years. 2 Pay it from savings 3 Sell the house and keep the equity. The problems with this type of loan is that any policy you take out may not provide enough to repay the loan. many policies have failed to do this and left hopeful purchasers with a debt at the end of the term. You may not have saved enough. You may not wish to sell your house. The best way is to take out a Repayment Mortgage since that way you can be sure the mortgage will be gone and the house yours in 25 years. Interest only loans are only recommended in certain circumstances. i.e. You are selling the house in a few years time. You have funds coming in that will repay the loan and you want to keep your costs down. Otherwise go for repayment.
What happens when someone does not pay back their payday loan?
If you’re in risk of defaulting on a payday loan, contact your lender to explain your situation and attempt to negotiate your payment terms. You may be able to enter into a repayment plan to avoid having your loan send to collections and needing to appear in court. During this negotiation process, you should work on your budget. Find places where you can cut spending and cut it — even if you don’t default, you’ll still need to pay the original fees you took out for borrowing.You may also want to consider a way to consolidate some of that debt to lower the interest rate. There are bad credit personal loans available, so you may qualify even if this default has impacted your credit score. Local banks and credit unions usually offer small loans that can help you move your debt from high-interest collectors. Discuss your situation and be upfront. It may take a month or two to qualify, but if you’re at risk of defaulting or have defaulted, a small loan from a credit union could reduce the amount you pay in interest, potentially saving you hundreds.Sometimes, though, default is inevitable. If you do receive a court summons, be sure you ask the collector to show proof that you owe the money. If they bring no proof, you may have grounds to postpone proceedings until they do.
Can someone explain what a pre-settlement lawsuit fund is?
How does it work? Must I pay it back with interest? I'm just waiting a settlement from an insurance company for permanent injury I got at a car accident, while now I cannot work properly thus cannot pay some of my bills.
Can someone please explain credit cards to me?
I dont get credit cards. do u have to have one? and whats it mean when they say using a credit card improves your credit? and do you have to pay interest? what is interest by the way? how do you pay back the money you spent on a credit card? is there a certain limit of money you can spend on a credit card? also, whats it mean when you open a bank account and it says to pay interest? and do banks use your money if something happens to the economy? like do they take money out of your account and not pay you back? do you have to pay interest for a bank account? srry if these questions sound stupid but i am only 13 and i want to understand all this stuff.......please answer the questions as fully as you can and no stuupid answers please!!!!! thank you in advance to all who answer!!
How do I convince someone not to file bankruptcy?
The best way to convince him is to have him talk to 2 or 3 bankruptcy lawyers. They will go over with him his expenses and debts, and explain to him if he truly can pay. Most of the lawyers will give a free consultation so it only cost him time. The trustee will look at everything, from debts to income. If the courts determined that a person can pay their debts back within 5 years they are converted from a Chapter 7 total liquidation to Chapter 13 bankruptcy where they make payments on a reduced amount of debt. If in a worst case scenario the determine he can pay off the full debt the bankruptcy is dismissed. If he is thinking about lying about some of his income and they find out he will find himself in front of a judge for fraud. If he can truly pay his debts off and just does not want to then declaring bankruptcy is not what he wants to do. Also, let him know just filing for Bankruputcy gets put on your credit report and is there for 10 years. Even if the court does not discharge his debts or he backs out the original filing is still there and is treated just the same.
What happens if I don't pay my title loan back?
Let me explain more...I know that they can repossess the car. Thing is, I need the intake manifold replaced and that is going to cost a minimum of $400, which I don't have. Someone has offered me a small amount of money for the car (they know the repairs it needs) so what happens if I sell the car? Can I get in trouble for that in any way? I called the title loan place (didn't tell them it was me) I pretty much laid out the situation to them, they said that all that will happen is that I will never be able to get a loan through their company again. To me that seems like people can get off too easy on these places...can charges be pressed or anything like that?