Tag simple personal loans

Start Saving Today | Texas Cash Back

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Begin your savings journey

It is getting to the very end of January, have you began your yearly saving yet? Not to worry if not, it’s never too late.

Here at Texas Cash Back, we do understand the struggle of saving up money. Especially when you believe you don’t have enough to save or even know where to start. Therefore, we have decided to help you find the right path and the easiest method for you which will save you money without even realising.

Our top saving tips

Debt – You should add up how much you spend paying your debt each month, and you’ll quickly see that eliminating your debt should be one of your priorities. Once you have got that out the way, you will be able to go full force with your savings. This will give you a great chance when it comes to saving to your full potential and reaching your end goal.

Eliminating your debts can be difficult if you don’t currently have the resources to do so, but have you considered a debt consolidation loan? Although they may not be the best idea as you are going from paying off one debt to another. They help you repay all of your debts in one go. This means that you only have one to focus on. This makes it easier for you to manage.

Set goals – Setting goals is essential when saving as it gives you an endpoint. Not only this, setting a goal might act as some sort of motivation to help you get on track. Or give you a different mindset where you are aspiring to reach that specific amount.

Choose a specific amount – Everyone’s income and their outgoings are different. You need to find the perfect amount for you, whether it be an amount you think will be the easiest for you, or whether it be one which will push you to your best ability. There are plenty of examples on the internet of ways you can save money quickly and efficiently.

One of our favourites has to be the 50/30/20 rule. The rule is a simple plan that categorises spending into three categories: needs, wants and savings. It explains that for the best, easiest results you should split your monthly income into 50% spent on needs like food and basic things to survive throughout the month. 30% on things that you want and lastly, 20% for your savings. This lets you live the lifestyle which you want to live. But also enables you to build up some cash behind you. This is so if you ever need some extra cash for unexpected bills you don’t have to get a loan or use a credit card.

Get rid of unnecessary habits  – Your biggest negative spending habits are right in front of your eyes. But you probably can’t see them. Is that right? Whether it is your unused gym membership, your morning coffee or your daily trip to the supermarket. Sometimes you don’t always realise how much you are spending as it has become the norm for you, but once you take a minute to look at your outgoings smartly, you will see the problem.

Do it yourself – Are you one of those people who buys your lunch every day at work? Or someone who takes a trip to a big chain coffee shop for a morning drink to wake you up? Well maybe it is time to fix that problem, and also fix the bank. You will save yourself a lot more money if you bring your own lunch from home and prepare your morning coffee before you leave the house. It will probably be money you didn’t even know you had.

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Read our previous post on the pros and cons of cash-back mortgages here.

A review of cash-back loans

loan

Cashback Loans

A cash-back loan enables new homeowners to take care of additional expenses that may arise with the purchase of the home. You may find that you need to do some repairs in the home, buy furniture, and pay expenses like taxes or transfers fees amongst others.

 The cash-back is usually a percentage of the principal mortgage amount and you get the amount when you make a down payment on the loan. You will pay back the loan at a higher interest rate than the standard mortgage interest rates. If you refinance or transfer the loan you will lose the benefit of the cash-back because the lender may decide to withdraw the offer.

What are the benefits of a cashback loan?

The benefits we will highlight below may not necessarily apply to all lenders because the terms and conditions vary depending on the company you are getting the loan from. Some of these benefits include:-

No credit check

 Cash-back loans use your bank and employee information to determine if you are creditworthy. As long as you demonstrate that you can pay the loans, you will qualify for the short term loan.

  Easy application process

 Cash-back loans do not take a long time to apply and some banks have the facility online. This means that in a few minutes you could get approval for the amount you wish to get.

Quick turnaround

 Depending on where you apply for the loan from, the turnaround does not take a long time. Some turnaround times are so fast that within a few minutes you will know whether you have approval or not and can collect your money almost immediately.

 Additional fees are clear.

There are some fees you need to consider when applying for a loan and the lenders are usually very clear on what they are. Make sure you have a clear understanding of what these fees are and what it will mean for the overall amount of money you’ll end up paying.

 What do you need to consider when thinking about a cashback loan?

High costs

 Banks charge a higher interest rate on cash-back mortgage. If you can do without the loan, then you may be better off not applying for it. If however, you cannot do without it, just to be clear that you need to pay back a larger amount than you would on a standard mortgage.

Loss of collateral

 Bad credit loans use collateral to secure the loan. This means that if you’re not able to pay, you will end up losing that collateral, whether it is a house, a car, or equipment.

Final thoughts on a loan 

Some people would question whether cash-back loans are safe to take. Just like a mortgage, cash backs have terms and conditions and you need to know what they are so that you do not get any nasty surprises somewhere along the line. You need to know that you will pay back higher interest rates and there are penalties that you may face if you do not adhere to the terms and conditions.

Additional Information on a loan

If you don’t like the idea of a secured loan, why not try an unsecured loan? This is where won’t end up losing your home, car or equipment if you are unable to repay.  

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Previous post: Pros and Cons of cashback loans – click here to read.

How to get mortgage financing

Mortgage Financing

Unsecured Loans and Mortgages 

Getting a mortgage will help you realize your dream of owning a home. However, getting a mortgage can be difficult especially if your credit scores are not good. Banks also have strict lending standards that could deter many people from borrowing. However, if you’re determined to own your home and feel that you can be able to make the mortgage payments, it is important to take some aspects into consideration. Although, don’t forget that personal, unsecured loans are always a choice if you are able to repay them in the long run. 

We will highlight these and hopefully, you can realize your dream of owning your home.

Get a mortgage that suits your financial situation

 Buying a home gives you equity and you can also enjoy tax benefits. You, therefore, have to be very careful about what your mortgage terms and conditions are. For example, you will get a higher starting rate with a fixed-rate mortgage but you are sure that your monthly repayments will remain the same. If however, you get an adjustable mortgage, the interest normally starts lower but may spike depending on how the market situation is. This can lead to frustration because you cannot predict and properly plan for the higher interest rates.

 Lenders will look at your debt to income ratio because it will give a good indication of whether you are comfortable in making the monthly payments. If your debt level is very high and your income is low then you will not be a good candidate for loans. Before applying, make sure that you reduce the number of loans you have, and if possible consolidate them so that you make lower monthly payments.

Cash-back mortgage -consider additional expenses – unsecured loans 

When buying a home there are plenty of additional expenses. For example, taxation, transfer fees, innovation fees, purchasing of furniture and other home equipment. You may find that you are not able to do these things because of lack of money. Some mortgage lenders offer the cash-back option. This means that you can get a percentage of your mortgage amount once you make the down payment. The rates vary depending on the lender and will range between 1 to 7%. However, you need to know that you will be paying a higher interest rate on cash-back loans. This could sometimes be as high as 2% above the standard mortgage rate. But if you aren’t eligible for a cash-back mortgage don’t get worried and stressed. Although, you have no need to worry as personal, unsecured loans are available to help you.

Unsecured loans tend to range from £1,000 to £35,000. This is to help you afford necessities exactly when you need them.

Try to consider holding off on these expenses until you can use your own savings.  This is not to say that cash-back loans are a bad idea if you can afford them. But just be clear that you can pay them back as required by the lenders.

Be careful about your borrowing

Being unable to repay can cause serious money issues. This will negatively impact your credit rating, making it hard for you to access funding in the future. A bad credit score will also impact on the interest rate the lenders will charge you. Those with poor credit ratings are present a risk of defaulting and banks, therefore, apply higher interest rates as a way of protecting themselves in case of defaults.

 Try as much as possible to slow down on the number of loans you take and only take what you can comfortably service.

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Previous Post: Learn more about cash-back mortgages here.