Know About 5 Challenges of Bad Credit Borrowers

No one plans to accumulate debts and invite the credit hassles. But sometimes, personal or financial emergencies cripple your life plans. Be it insufficient income source or excessive expenses, as you struggle to repay loans, missing a loan instalment would hurt your credit score. Besides, living in the state of stalemate is never good for your financial health.

Bad Credit Borrowers

Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. 

Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. 

The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.

It is better to take charge of your life as early as possible and search for viable funding options such as swift short term loans or debt consolidation loans in UK. 

The choice would entirely depend on your credit health. Factors such as required loan amount, loan purpose and your credit affordability would help you make a better decision.

Bad Credit Loans

Searching for bad credit loans would not be a cakewalk, and only persistent efforts in the direction would help your cause. 

To make things convenient you may consider using services of an experienced loan broker in the UK. You can contact an FCA authorised broker and avail hassle free access to deals according to your credit situation. 



Most brokers share tailored loan advice free of cost to borrowers and there is no upfront fee involved. You also save a lot of time and headache required for searching a deal.

Now before you contact a loan broker for bad credit loans without guarantor, it is important to understand following points about bad credit borrowing:

1. Cost of bad credit loans

With low credit score, your loan eligibility is low. Your loan application is marked risky and most lenders would cost high interest rate. 

Whether you need instant payday loans or instalment loans for bad credit, you would get expensive loan with higher processing fees. Thus you should be prepared to shell out more from your pocket with poor credit rating.

2. Do not borrow more than what you need

Contacting a loan broker you are likely to get access to available bad credit loans. However before you choose any of the deals made available to you, make sure you restrict yourself to the amount you compulsively need. 
Do not borrow more than what you need. For borrowing more than your requirement could make it difficult for you to manage your repayments later on.

3. Always check the credentials before availing a deal

Also it is important to ensure that you make a transparent deal with a reliable lender. It is recommended to deal with registered loan partners only. 

Herein you must also know that it is illegal to lend in the UK without a license. Check all the credentials and read documents carefully.

4. Have a repayment plan

While choosing the loan for your situation, make sure you pick a loan that has affordable monthly instalment. 

When you borrow according to your repayment capacity, you are more likely to succeed at the loan repayment. You could peacefully repay the loan and build good history.

5. Impact of bad credit loans on score

When you borrow despite poor rating, it certainly brings on red flag on your report. However repaying the loan on time you build good history and improve your credit score. 

In fact, with rightful planning and discipline you can use instalment loans to mend your credit score.

Should You Jeopardize Your Nest Egg to Repay Your Credit Card Debt?

The total outstanding value of US credit card debt is now over $1.02 trillion. This places a significant burden on total US household debt, and amounts to a debt burden of around $7,000 per household. It is encouraging to note that less than 50% of US households have any credit card debt whatsoever.

If we exclude these households with no debt, then the average credit card debt for indebted people amounts to $15,624. While this figure is substantial, it is also much lower than it has been in 5 years. Consider the following average credit card debt balances among debt carrying households since 2013:

• 2013 – $16,319
• 2014 – $15,876
• 2015 – $15,692
• 2016 – $15,810
• 2017 – $15,654

These numbers paint a skewed picture of the actual debt burden. Over the years, the average household debt may have declined among debt carrying households, but the overall level of debt has increased substantially. Simply put, more people are sharing the debt burden than ever before. 

This is largely due to an era of ultralow interest rates which made borrowing cost effective for so many US households. The percentage of US households carrying credit card debt has increased from 38.1% in 2013 to 45.6% in 2017, and this trend shows no indication of slowing down. 


With unemployment hovering around 4.1%, and the US economy booming, spending is on the up and up. Easy access to credit has facilitated a credit boom, even after banks and financial institutions clamped down post global crisis.

If You Are in Debt, How Should You Pay for It?

Naturally, there are concerns about how best to manage debt. Several options are available to reduce the debt burden, notably switching (transferring) debt from high interest credit cards to lower interest credit cards. 

This method is heavily promoted in the media, and by credit card companies, but it comes with a caveat: There are costs involved in transferring balances from one account to another. All the pros and cons should be weighed up against one another.

Other options include using a savings account such as a 401(k) for retirement to pay down credit cards. This is generally not advisable, since it will cause disruption to your retirement nest egg, and there are various penalties and tax consequences to contend with. 

An important consideration when it comes to credit card debt is that it is unsecured debt. This means that it can generally get discharged in a bankruptcy filing, and assets cannot be attached to its repayment.

Perhaps the most pressing question for the 50+ generation is why the debt still exists? Debt elimination, debt management, and debt consolidation options are readily available from multiple bank and non-bank entities. Sometimes, it may be a good idea to discuss the situation with a financial planner.

What’s the Worst That Can Happen with Unsecured Debt?

If there is absolutely no other way to repay credit card debt, and you risk ruining your credit profile, it is possible to use a 401(k) loan to repay credit card debt. These loans are much more cost-effective than credit cards, and the interest that you pay goes directly to your own account. 

On the plus side, there is no negative effect on your credit score. Experts do not recommend taking money from retirement to pay down credit card debts, since money in hand is more valuable than access to credit that can easily get taken away from you.

Other ways to consolidate your credit card debt include home equity loans, unsecured personal loans, and balance transfer cards. These methods should be assessed on their merits, given that there are pros and cons associated with each of them. 

It is never advisable to transfer debt from an unsecured line of credit to a secured line of credit such as a mortgage loan or a home equity loan.

You stand to risk a lot more than your credit score if you cannot make the repayment. The balance transfer card option is a viable solution provided your credit score is high. Be advised that the interest-free component will cease after 12-18 months. 

For unpaid credit card debts, you could face a loss of credit lines and a reduced credit score. You will however get to keep your existing assets, pending further litigation.

6 Secrets to Saving Big on Healthcare Expenses

If your family is like many, you might find that you spend a lot of money on healthcare. This can be easy to do, and you could be having a hard time fitting healthcare costs into your budget. However, of course, you and your family’s health is important. Luckily, it is possible to ensure that your family gets the healthcare that it needs without going over your budget. These are a few secrets that can help you save big bucks.

Take Advantage of Free or Low-Cost Services

First of all, when possible, consider taking advantage of free or low-cost services. If you’re offered healthcare screenings or other services through your job, utilize these services. You may also be able to find free or low-cost screenings, flu shots and other healthcare services for the people in your community.

Focus on Proper At-Home Preventative Care

Taking good care of yourself at home can help you reduce your current and future healthcare costs. For example, a lot of people forget that Hammond dental care can have a big impact on your overall health. Brushing, flossing and otherwise taking care of your teeth can help you prevent issues in the future. 

Additionally, eating a healthy diet, exercising and doing what you can to stay healthy can also help you reduce future healthcare costs and can help you look and feel your best right now as well.

Check for Errors

Many people don’t take the time to read the bills and invoices from their doctor’s offices. However, a simple mistake could end up costing you a lot of money. Therefore, it’s always a good idea to look over your invoices to look for any potential errors before paying a bill.

Choose the Right Facility for Your Healthcare

Some people get stuck in the rut of seeing the same doctors and heading to the same healthcare clinics over and over again. However, it is important to make sure that you are going to the right clinic.

For example, before seeing a dentist, consider calling around and asking about the cost of basic services, such as X-rays or cleanings. If you need to have major dental work done, it’s definitely worth it to call around and look for the best deal.

If you aren’t experiencing a medical emergency, avoid going to the emergency room; the emergency room can be a lot more expensive, and you could have to wait longer for care as well. Instead, consider utilizing urgent care facilities and primary care clinics for basic care, which can be much more affordable.

Ask for Cash Discounts

If you pay for a lot of your healthcare expenses out-of-pocket, you may want to consider asking for a cash discount. Many doctor’s offices, hospitals and more will offer a discount if you are paying for everything upfront. 

This is because they are saved a lot of time and money due to not having to send out bills or deal with an insurance company. You could be surprised by how much they will be willing to negotiate with you if you have the money to make the payment ahead of time.

Look for Ways to Save on Medication

If you spend a lot of money on medication, you should know that there are ways to cut costs. Ask your doctor if there is a cheaper prescription available, and consider opting for generic brands of medication. Some pharmacies offer loyalty programs that can allow you to save money on your prescription costs as well.

As you can see, there are ways that you can save money on healthcare for yourself and your family. If you follow these tips, you can shave down your costs. Then you can ensure that your family stays as healthy as possible, but you can stick within your budget.

4 Tips to Reduce Holiday Stress

The Holidays, one of the most joyful and wonderful times of the year, is also one of the most stressful times of the year. At times, it can be hard to focus on the moments and enjoying the season, instead of being stressed about finances, making sure the turkey doesn’t get dry, in laws coming into town, and making sure you don’t spoil the Santa surprise for your children. That’s a lot to stress about in just a short few months.

Healthy Coping

It’s inevitable that you’ll feel stressed during this season. Rest knowing that you and your family are creating incredible memories that will be cherished for years to come. In addition, remember that the holiday season is almost over. 

You don’t have to deal with it for very much longer, so you just have to cope with the stress for a few more weeks and then you can focus on the new year.

Amid all of this stress, make sure that you don’t let how overwhelmed you feel make you turn to unhealthy habits to cope with the stress. 

The holiday season is when the majority of relapses happen. Whether you’ve ever had issues with substance abuse or not, don’t let yourself rely on alcohol and other substances to relieve stress.

Take a Step Back and Breathe

As Thanksgiving has ended and we’re nearing Christmas, the stress is paramount. It may feel like too much, sometimes. When you start to feel overwhelmed, make a conscious effort to take a step back and to take a break. 

Everything that is stressing you out will still be there when you get back, and the house isn’t going to burn down if you need to take twenty minutes to yourself before you throw yourself back into the thick of it. 

Go into your room and lock the door, and just close your eyes. Even if you have to lock yourself in your closet, or bathroom, or office, whatever room of the house you can get a few minutes of peace to focus, take advantage of that room and give yourself a few minutes. 

You deserve it. Close your eyes, and focus on your breathing. This link has a great guide for breathing exercises. Taking just a few minutes to focus on breathing will help clear your mind and better prepare you to handle all of the issues that are waiting for you when you’re ready to tackle them. 

Don’t Eat too Many Holiday Goodies

It’s much too easy to let your nutrition go during the holiday season. Pies, cakes, puddings, halloween candy, and stocking stuffer candy is just the beginning of the tempting holiday goodies. 

There’s a reason why most people need to dedicate the first few months of the year to lose weight! The holidays are really filled with candy and goodies, and while it’s fine to indulge and let yourself enjoy everything that this holiday season has to offer, you also need to make sure you know when to stop. 

Don’t let yourself get carried away. Make sure you’re conscious of every single thing you put in your mouth. If you start eating mindlessly, soon enough you’ll find yourself with an empty pie tin and an entire bag of Reese’s Peanut Butter trees gone. 

Having a proper diet will help you deal with stressful situations better. In fact, having a proper diet affects a lot more areas of your life than you would probably realize. Eating right will help you have more purposeful sleep, improve your skin and hair, as well as improve your mood. If you’re happy, your holidays will be happier.

Focus on Experiences, Rather than Things

A lot of what makes the holidays special is all of the gift giving. Giving gifts to your loved ones is a fun experience, but it’s all too easy to get wrapped up in the pursuit of the perfect gift for the people in your life. 

It’s just too easy to forget about why we celebrate the holidays, and focus instead on just gifts and things. Try to shift your mindset from things, to experiences. Experience reading Christmas stories with your family while you all sip on hot cider. 

Experience driving around to see the most extravagant holiday lights you can find. Take time during the holidays to create new traditions that are focused on experiences, rather than gifts and things.