24Jan2017

When You Shouldn’t Apply for Same Day Payday Loans

Same day payday loans, as well as payday loans in general, tend to have a lot of stigma around them.

However, payday loans can be an excellent alternative with emergency financial situations arise.

But when are same day payday loans a good idea, and when are they more hassle than beneficial?

We put together a guide to understanding same day payday loans and how to figure out when they are the best choice for your financial situation.

Check out what we found!

What Are Same Day Payday Loans?

By definition, a payday loan is a short-term loan that typically caps at $500 or less. Most payday loans are due on your next payday.

“Same day” payday loans are simply payday loans that are approved the same day you have applied and funds from the loan are distributed on the same day as well. Most payday loans are same day payday loans.

Typically, a payday loan boasts a higher interest rate that most loans. However, because of their very short lifespan (the typically pay period is two weeks or less) and relatively low loan cap, these interest rates are not nearly as intense as they seem when you crunch the numbers.

For example, say you have an emergency and cannot pay your credit card bill on time this month. The payment of $100 will be subject to late fees in the $40-50 range and higher minimum payments. You have more than enough money in your upcoming paycheck to pay for this.

By taking out a $100 payday loan as a solution to pay your credit card payment with a 30% interest rate, you spend less money on interest fees and prevent a raise in your minimum payments.

As we said, payday loans are designed to be very short term.

Same Day Payday Loans – When Are They Not The Right Choice?

Same day payday loans are absolutely beneficial for the following circumstances:

Medical emergencies that cause a few days of work absence
Sudden financial emergencies
A forgotten due date for a bill with a high-interest rate or late fee

However, there are many situations in which a same day payday loan is a really terrible idea.

There are financial situations out there that may make payday loans look appealing, but if you are unable to pay that money back on time, you could find yourself in a whirlpool of debt that is very hard to get out of.

First and foremost, there are two major common things you should not use your payday loan money to pay for:

Another debt (credit cards, other personal loans, other payday loans)
Non-necessities

What exactly are non-necessities? Here are just a few things that really don’t require payday loan debt to pay for.

A Hot Date

If you’ve started dating someone and want to impress them with fine dining, movies, and other expensive date activities, you may need to tone it down a bit.

Taking out payday loans and then rolling them over every pay period can get dangerous, and in the long-run, you aren’t being totally honest with your new beau. Be open about when you can afford things and when you can’t. If your partner understands your honesty, congratulations!

Spending too much time in the payday loan cycle can lead to higher interest rates, so it is best to reserve them for emergencies or very important things– not movies and a fancy dinner.

Business Investment

You should never use a payday loan to put into the stock market or another risky business investment. Investment is never a guaranteed return— sometimes you will lose that money instead of getting it back. Sometimes it can take months or even years to see a return on the investment.

The key to making a good investment is to do an ample amount of research on the project and company you are investing in and to use your own money instead of money from a same day payday loan to fund the investment.

Just as well, you should only invest an amount of money that you can afford to use and consult a financial expert to see if the investment is even worth it.

If you want to make more with a business investment, you should use money that you’re not at risk to have to pay back to anyone. If you lose on the investment, that’s a bummer, but at least you aren’t in debt. If you do get money back, it’s all yours!

Shopping

Got an itch for some impulsive shopping? Scratch that itch in some healthier ways, because taking out a payday loan for a shopping spree is downright dangerous.

If you don’t have the money right now to go on a shopping spree, you won’t have it when you get paid. Shopping addiction and impulsive shopping is a very easy way to get into debt, and it should be seen for what it is– an addiction.

A Vacation

If you have the money for a vacation, you’d have taken one already.

Using a payday loan to fund a vacation and pay for things like flights, hotels, expensive food, tours, and other things is a good way to plummet into debt quickly.

Save up your money for that luxury vacation and think of staycation ideas in the meantime to save you a big chunk of change.

A Giant Party

Liquor, beer, a DJ, food, and other huge party essentials aren’t going to pay for themselves! However, a payday loan shouldn’t pay for them either.

A big party isn’t going to return anything to you financially. It may be memorable and fun, but you’re going to have a major headache from overspending your payday loan. One night of awesomeness shouldn’t equal months of financial hardship.

Borrow Responsibly Today

Was our guide to when you shouldn’t apply for same day payday loans helpful in your time of need?

Tell us your thoughts, along with your experience with same day payday loans, in the comments below!

18Jan2017

DIY Credit Repair: You Can Fix Your Credit

Your credit score could either be a stepping stool to a whole new world or it could be a ball and chain. If you’re in the latter category, you are probably hoping for an alchemist to show up and transform your ball and chain into gold for you. Although some loans don’t require a perfect credit score, you never know when you are going to need a good score.

But credit repair isn’t a magical process. You can’t just wave a wand and make it all go away. But you can do something about it. The good news is that your ball and chain doesn’t have to be forever.

There are some simple and fairly reliable steps you can take to fix your credit score.

1. Credit Repair: Put Your Bills On Autopay

It used to be that you had to physically mail or drop off a check to pay your bills. In the age of the internet, this is no longer the case. In fact, over 60% of Australians use online banking. And you should too! It’s the best way to do some credit repair.

Most online banking is a free addition to a checking account. And some banks will give you a checking account for free.

Once you have an online banking account, you can quickly set up automatic payments to most of your bills.

If your bank doesn’t allow online bill pay, most credit cards will allow you to enter a bank account number and set up automatic payments over time. Just simply input your banking information, tell the company how much you want to pay each month and you will never forget to pay your credit card again.

Now, some credit card companies will only allow you to either pay the full amount or the minimum payment each month. In that case, set up the minimum payment and try to pay off the rest as soon as you can.

Only paying the minimum payment will cause you to rack up more debt as it doesn’t cover interest fees.

2. Get Your Free Credit Report

Not knowing your finances inside and out is like being blind and alone in a dark maze. You really don’t want to be in that situation because you will never know what’s coming at you or what’s around the next corner.

Don’t go into credit repair blind. Get your free credit report. You’re entitled to it for free once a year.

What’s inside your credit file that will help you with credit repair? Everything a loan officer looks at before making a decision on your loan acceptance.

The file includes things like your identity information. Your full name, gender, date of birth, address, employment history and driver’s license.

It also includes your public record. Things like court decisions, bankruptcies, writs and summons, and debt agreements.

Your monthly repayment history is in the file. This is the section that examines your credit accounts. Accounts such as your credit cards, loans, mortgages and other credit. This might also include how many times your credit has been accessed.

You want to limit how many times companies or rental companies or loan officers access your credit. Too many credit inquiries can damage your credit.

Lastly, you will find defaults in your credit file. These are debts overdue by more than 60 days.

3. Know Your Negative Impacts

You really need to know what might be negatively impacting your score before you can begin credit repair. There are several things that can impact your credit score in a negative way.

As we pointed out above, multiple credit inquiries will affect your credit score negatively. The people who check your credit score could include car dealers, rental companies, loan companies and anybody who might offer something on lease. Be careful with anything that requires a downpayment. Make sure you ask if they are checking your credit score.

Defaults are probably the second highest impact on your credit report. Loan officers want to know you are going to pay them back. They want their money. They aren’t going to give you money if they know you aren’t good to pay them back over time. If you are late on a payment for over sixty days, this tells lenders that you are irresponsible.

Court judgments

While maybe not as important as other aspects, court judgments will negatively impact your credit score. This is an area of credit you can actually repair. Sometimes records can get mixed up. Court judgments could end up on your report when you were never even in court. This is why it’s imperative you check your own credit once a year.

Missed payments on your credit accounts are probably the most damaging of all. This is where you should focus your credit repair. It’s why we started this article out with a way to set up auto payments on your credit accounts and bills.

Missed payments on your credit accounts stay on your file for two whole years. This is why you want to ensure that no more than one payment is missed per account. But you really should ensure you miss no payments.

4. Improve Everything!

Time is the great healer. But you can start now with credit repair. There are several things you can do now that you have the knowledge.

Broker A Deal

If you are struggling with paying your credit cards or loans, talk with your lender. Let them know you are struggling. They could negotiate a repayment plan that fits within your budget. And this will ensure you do not default again on payments.

Consolidate

One reason people have a hard time repaying debts: they can’t keep track of them all. This is absolutely understandable. And it’s absolutely fixable. You can consolidate your loans into one account. Talk with your bank and credit card companies. It might cost an initial fee, but it will make it easier to remember to pay.

Report Inconsistencies

As we pointed out above, your credit file may have some errors. This is probably the easiest way to repair credit. Contact the credit reporting bureau to have certain false listings removed.

Conclusion:

If you have bad credit and still need a loan at short notice, Cigno can help. You now have the tools you need to repair your credit and get your life back on track. Go out and make the best of it.

9Jan2017

You Can Get Out of Debt with These Money-Saving Tips

So you want to get a jump start on figuring out how to get out of debt?

It turns out that the Australians have around $1 trillion left in debt. This huge amount usually comes from student loans, mortgages, and credit cards.

If you find yourself being one of those thousands of Australians dealing with debt, there are quite a few ways you could give lowering your debts a fair go.

Make sure you keep reading to pick up some great money-saving tips and tricks. And, remember, if you want to learn more about payday loans and how to improve your finances, be sure to check out the rest of our blogs.

Get out of debt with these money-saving tips

Understanding how to manage money – and even save money – isn’t something they always teach in school. Don’t worry, we’ve got you covered.

Here are Cigno’s top 8 money-saving tips to get out of debt!

Cut extra costs (for now)

You will want to sit down with a pen and piece of paper and map out all of your expenses.

This means writing down your car payment, rent, and utilities. And it also means writing down how much you’re spending on extra items, like cable, clothing, and eating out.

When you’re trying to save money, cutting down will have to be the name of the game for a while.

“Luxury” costs, like cable, may have to get shut down and potentially swapped out for a much cheaper, online movie service. Get creative at home and cook new recipes instead of eating out.

As you add a new item to the list, make sure to ask yourself if this is an item you can do without for a few months. If the answer is yes, then you will want to cancel that subscription and avoid the shops.

Close or freeze credit accounts

If you have multiple credit accounts, consider closing the ones that don’t have a remaining debt.

Closing or freezing accounts stops you from being able to go out and use that card. One of the major ways a person can save money to get out of debt is simply cutting off the source!

Get a realistic budget

We all have three budgets in our minds when we think about our finances.

There’s the one we tell ourselves we’re sticking to– like only using $100 on food for the next month and $0 for going out. You’ll also have your realistic budget floating around, where you use $350 on food and maybe let yourself go out a few nights.

Then there’s your actual budget, the one you’ve really been going by for the past few years.

Seeing the (sometimes huge) differences between your realistic budget and the one you’ve been using can really shift your perspective on spending.

Work with cash

Cutting down on how much you spend really depends on how well you cut yourself off from cash sources.

One way to do this is to use your realistic budget to withdraw X amount from your checking account per week– in cash.

Spending money is a lot more difficult when you have to pull out the bills in person to count off your charges.

Similarly, you can try using the “envelope system” to really break down the cash budget that you have in your hands.

For this strategy, you will label an envelope something you’ll be spending on. You’ll end up with envelopes titled gas, food, going out, etc. The goal is to withdraw your weekly budget and split that into each envelope as you’ve budgeted.

As you spend, you’ll be very aware of how much is left in each envelope and what day of the week it is!

Prioritize

If you want to get out of debt, you’ll have to really prioritize what you’re spending your money on and how you’re living.

With multiple debts to deal with, make sure you prioritize which ones you want to tackle first.

Many people recommend taking one of two routes: pay off small bills first so you can really tackle the huge bills later or hit the ones with the highest interest first.

There are tons of options to prioritize what you’re spending money on and what debts you target first.

But you will also want to prioritize your life to really position yourself in a way that can help you save money.

This means reflecting on whether or not you should take a part-time job while you look for that dream job. It means deciding to move to a different location. It means you’ll want to prioritize what you purchase and whether or not it’s worth it at the moment.

Contact lenders and work with them

As you work on figuring out how to get out of debt, don’t be a stranger– reach out to your lenders!

Once your lender knows of your situation, they would be able to help to the best of their abilities. Maybe this means lowering your interest rates or putting together a repayment plan.

As a whole, you can save a little bit of money if you take the time to talk to the right people.

Set up automatic transfer in your bank

Do you have money coming into your checking account and –all of a sudden– it’s gone?

Chances are that the money is gone because it’s been spent. But there is a situation where money leaving your checking account can be good.

And that’s if you have automatic transfers set up. These with withdraw money from your checking account and move them to a different account, like a savings account, that you’ve set up.

Some people have different savings account for each responsibility they have so that everything can get paid off when the bill comes since the money has been accumulating automatically!

Up your shopping game

Here’s our final tip to help you get out of debt and save money.

You’ll want to up your shopping game and make the most of what you’re spending.

Couponing and taking advantage of sales is a great place to start. You can then start thinking about which items you can cut to up your health and happiness (and save money!)

You may also want to deter those impulse shoppings by telling yourself to wait a day before purchasing. Or you can adopt a mindset of thinking about a cost in the amount of time it takes you to earn that money!

When you think about it that way, is that one shirt really worth 4 hours of slogging through your time at the office?

Do you have any money saving tips we missed? Let us know in the comments below!

7Dec2016

Are Instant Payday Loans Instant Solutions?

If you’re wondering about whether an instant payday loan is the choice for you, check this out – we’re sharing everything you need to know about this tool.

Let’s face it – we’ve all been in situations where an extra $100, $300 or even $500 could have done us a world of good, and gotten us out of a pretty tough bind. Emergencies that cost us money crop up from time to time.

If those situations happen to you frequently (or you want to be prepared in the event that it does happen), then you’re obviously looking for a solution. That’s probably how you ended up searching for instant payday loans.

Sure, you’ve heard some talk about them. However, if you want to find out for yourself, you’re in the right place.

Let’s take a look at instant payday loans, and if they’re really the solution that they’re made out to be.

Payday loans are what they sound like, and a little bit more

Loans are money that you can get on the condition that you pay it back by a set amount of time. Therefore, payday loans are a type of loan. They’re typically for a small amount of money. They get the name from the fact that you’re supposed to pay it back by your next payday.

They are small, short-term loans or “cash advances” that you get to fix an unexpected situation. For example, you may get a parking ticket that you didn’t expect or you might have an urgent bill arise that you can’t pay at the moment.

To put it into perspective, look at this scenario:

You work at a retail store, making $18.65/per hour. You’re cycling on your way to work one morning, and as you ride across the road a car comes out of nowhere and hits you off your bike. The driver speeds away before you can catch their license plate number. That leaves you with a totaled bike, and possibly medical bills even though you’re not seriously hurt.

All you have is $45 in your savings account. Your job doesn’t provide you with health insurance, and you need your bike to make the 45-minute commute to work in the morning because you can’t afford public transit. A new bike is going to cause you at least $250, and there’s no telling how much your medical bills could come to.

In a situation like that, a payday loan would be perfect for you. That’s what they’re about – access to money now, to remedy a situation that has arisen that will put you in a real bind if it isn’t resolved.

That beg’s the question of where do instant payday loans come into play.

So, what about instant payday loans?

Instant payday loans are an expedited process of the situation above. With some loan companies, a payday loan can take a few days to be processed and reviewed. That can be a real inconvenience if you’re in dire need of money.

However, instant payday loans mean that you walk into the lender, fill out a quick application form, and leave with the cash in hand that you need. Or, it’s transferred to your bank account shortly after. Whatever the case may be, they’re instant as the name suggests.

With all that in mind, are instant payday loans instant solutions?

Needless to say, instant payday loans are a great help if you’re in need. However, there a few things to consider before taking on.

The first thing to note is that payday loans typically have a higher interest than loans from the bank, and can be expensive. That being said, if you can’t afford to repay the loan in full including the interest once you’re cheque comes don’t take the loan, or borrow an amount you can afford to repay.

Additionally, taking an instant payday loan has some distinct advantages:

Payday loan lenders have longer office hours than regular banks and are more flexible. This allows you to feel more at ease. You can negotiate, and you can rush in, in the event of an emergency.
There is no bank loan application. Most lenders only need your name, employment information, and contact information of you and a few of your friends and family.
Applications are reviewed promptly, and often processed in a few minutes or hours. You’ll get the money you need very quickly to solve your problem.
These loans are short term, and the average length of these loans are about two weeks. This means that once you repay them, you aren’t in debt for an extended period of time, which can be stressful.

For the right person, an instant payday loan can be a saving grace. Done right, instant payday loans are great!

What precautions do I need to take?

There are some guidelines that can ensure that you get the best out of payday loans. Here are a few:

Do not take multiple loans from multiple lenders. If you need more than the amount of money that a lender can give you, do not try to accumulate money by taking out payday loans from different lenders. You’ll be setting yourself up for disaster. Take only one payday loan at a time.
Be responsible. If you borrowed $300 to pay for an emergency that turned out to just cost you $150, don’t spend that money frivolously. Put it to good use, so that you can easily repay the loan when the time comes.
Ensure that you read the fine print. Some lenders have fees that skyrocket to astronomical amounts once you’re even a day late on your repayment. Make sure that you’re aware of all of these kinds of setups.

Truth be told, some payday loan lenders can be sleazy. So, where does that leave you? What do you do?

You need a lender that’s committed to the greater good of their clients and helping them out of tough situations. In other words, you need Cigno Loans. We’re a loan company offering a wide range of loans for the working Australian.

Visit our contact page, for information on how you can take advantage of some of our amazing offers. You’ll never have to be in a financial bind again – we’re here for you!

1Dec2016

Need Cash Now? 7 Ideas to Get You Through

If you need cash now, you’re probably wondering the easiest ways to get there. No worries. Here are 7 ways you can get cash fast and get back on your feet.

We’ve all been in a bind when it comes to needing cash ASAP, but if you’re there now, we may have the answer for you.

When things don’t go your way, it’s important to have methods to make cash fast in your back pocket.

From selling crafts, to seeking a payday loan for the big bucks, we’ve got you covered.

If you need cash now, keep reading to see the 6 ways you can make your money now below.

1. Sell Stuff You Already Own

Find What to Sell

A great way to simplify and de-clutter your life while also making money is to sell things you no longer need—especially valuable, high-demand items.

Take a look around and make a list of what you don’t or won’t use or need, and see if any are commonly sold items that could bring in some cash.

These items could include but are not limited to:

DVDs
Books
Musical instruments
Collectibles
Electronics
Video games
Jewelry
Unused gift cards

Seek Out Ways to Sell Your Items

Now that you’ve accumulated some personal products to sell, look for ways to get the sales done.

Whether you want to concentrate on selling these items to friends and people you know, or customers online or in-person, you can earn some serious cash pretty quickly.

Depending on where you live, you may have various opportunities to sell your stuff.

Some places to consider getting rid of your goods include:
Yard sales
Flea markets
Online sites (i.e. eBay)
“For Sale” postings (online or in public places or classifieds)
Pawn shops
Online retail sites (i.e. Amazon)
Trade-in at stores

Pick Your Price

Next, set a competitive price for your items that are to be sold.

This final step can be a tricky one, as deciding how much you want to sell these things for can be hard.

Quick tip: if you price items at a value half of what someone would be able to buy them for anywhere else, you are more likely to make a quick sale! If you need cash now, this might be the go-to tactic for you.

Try to avoid selling items for a very deeply discounted price, unless you really need cash in a hurry.

2. If You’re Not Ready to Let Go…

Rent out what you’re not ready to let go.

Renting out your items is not only a great go-to if you need cash now, but it’s also a way to continue to make money off your items.

If you have items you don’t currently need but may need again in the future, such as baby equipment or sporting equipment, try to rent them out.

One way to go is through friends or people you know who could need such items.

Another way to rent would be online.

The website rentmine.today allows you to rent out anything you can think of!

Even if you decide not to go through the site with your rentals, check out their pages to get some inspiration for things you can rent out on your own!

If you don’t have any items you feel are worthy to rent, take a step back and consider your home itself (or at least a room).

Renting out a spare room is one of the easiest ways to make good money.

If you don’t want the commitment of having a new housemate for an extended period of time, try renting the room or an area for a night or two.

With services such as Airbnb, you can rent on a short-term basis and have total control. This means you can set the price, the rules, and the dates it’s available.

3. Whether it’s Goods or Services, Make Other Sales

In addition to selling what you already have, why not try banking on your talents?

If photography is your thing, why not sell some of your shots to stock websites?

Many sites will buy photos, usually even with a commission on every sale.

While they don’t have to be of remarkably high quality, check out sites such as Shutterstock to get inspired and see what you can sell.

Are you crafty? How about using those talents to craft some sales from your skills?

Give selling your crafts a try for some quick cash.

Whether its sewing and making handmade jewelry that’s your niche, or even baking or creating unique crafts, you’ll likely be able to find some kind of demand for it.

Try selling your creations at a local market or online via Facebook or Etsy.

Use What God Gave Ya

Sell your hair
Sell blood or donate plasma
Sell sperm

Other Ways to Work for Dough

Babysit
Tutor
Become a street performer
Deliver catalogues
Do odd jobs
Dog walking
Driving: Be a private cab driver
Model: Become a life model

4. Be a Friend to the Planet and Your Wallet—Recycle

Returning bottles and cans for a refund can bring in 5 to 10 cents per can or bottle.

Cans and bottles must be returned to a deposit center, but there are many ways to take advantage of such an opportunity.

First, find all the cans and bottles you can.

Collect them from around your home, check out trash cans along busy roads or anywhere where people hang out to see what you can find, or even host a bring-your-own-beverage party and hold on to all the cans and bottles that accumulate.

Then, turn them into cold, hard cash!

5. Get Online

You probably spend a lot of time on your computer or phone in the first place, right?

So why not make some dough while you’re doing it?

Try filling out surveys to make money online.

Since many merchants use survey responses to find ways of improving their marketing, they’re willing to pay for your help.

Although they usually only pay a few dollars a pop, they require minimal effort and involve quick payments.

You can also try to find small paid tasks via apps.

Several money-making apps out there are ready to pay you for either doing marketing tasks or connecting you with someone who wants a more extensive task.

Marketing tasks could include activities such as scanning products at a grocery store, while more extensive tasks could involve completing a survey.

6. Get Ahead of the Game with a Payday Loan

A payday loan, which can also be called a payday advance, is a small, short-term unsecured loan, regardless of whether repayment of loans is linked to a borrower’s payday.

The loans can also be referred to as a salary loan, payroll loan, small dollar loan, short term or cash advance loan.

But no matter what you call it, it can be your answer to some big bucks to hold you over.

Companies that offer these kinds of loans are commonly available and are a way to make the money you need quickly.

A payday loan may be just what you need in your time of need!

7. Focus on the Cash

Find focus groups in your area to bring in the bucks.

These groups of people that provide a company, organization, or individual with feedback on a product, design, idea, etc., is one way to get paid when you need cash now.

Try contacting a market research company to join a group, check out local postings, or search online on sites such as FindFocusGroups.com for some options for focus groups in your area.

Starting at about $60 for an hour and a half, it’s worth a try.

The best part? You are given cash on the night of the focus group!

What ways have you discovered to make quick cash? Tell us about your money making ventures in the comments!

23Nov2016

Is a Paycheck Advance What You Need Now?

Things come up, and you may find yourself needing a little extra to make it through the coming weeks. Is a paycheck advance right for you? We’ll tell you here.

An emergency doctor visit. The car engine blows out and needs to be completely replaced. The roof springs a leak, flooding your bedroom.

These events creep up on all of us eventually; it’s just a fact of life that we’ll have to weather some tough times.

But, what if you’re facing really tough times?

Maybe you’ve just been laid off or this is the second emergency room visit this year and the funds to cover the costs just aren’t there.

You’re not alone. In the past few years, more than 20,000 Australians had to declare bankruptcy.

All-out bankruptcy is pretty severe but sometimes it comes down to just needing to cover a gap in payments that can make all the difference.

You might not have the option to turn to friends or family and your credit cards might be maxed out.

So where can you go to find financial relief? Could a paycheck advance be the solution to your problem?

Debt: How It Happens

Needing a quick infusion of emergency cash isn’t that uncommon.

Although divorce rates are falling, it’s still a fact of life for far too many Australians.

It’s bad enough dealing with a broken heart; bringing money issues into the picture are just another source of stress during a hard time.

Financial woes are plaguing the healthcare system itself and those problems are likely to be passed on to citizens.

Imagine if your child needed emergency care.

You can’t put a price on their life and wellbeing, but that bill can take a toll on your bank account’s health.

What if you’re no longer drawing a paycheck because you were laid off? Losing one’s job is the most common reason Australians feel the pinch in their paycheck.

Right behind losing a job is racking up credit card debt.

The typical image of someone with a maxed out card is a dumb teen on a shopping spree, but it could just as easily be someone who tried to patch a gap in their finances and now the bills are piling up.

If you think the only damage in this situation is confined to a bank account, think again.

Debt has a devastating long-term effect on a person’s health.

Financial Woes Affect Mental And Physical Wellbeing More Than You Think

Personal finances are a significant cause of stress, anxiety, and depression for many Australians.

The mental and physical toll money problems exact is heartbreaking.

You might fall into a deep depression which leaves you unable to take action and get your finances under control.

The thought of all of those unpaid bills might keep you up at night, causing profound insomnia which then affects your waking hours.

You might lash out in anger, destroying relationships that are vital when you’re going through a rough patch.

Worse – debt can cause you to turn to self-destructive behaviors.

Those with money worries can turn to drinking or drugs to alleviate the extreme stress they’re feeling.

The relief you’ll feel pursuing a quick high or doing a few shots to “take the edge off” will fade and you’ll be in the same place you were before.

In fact, you might be in even worse shape – 41% of those struggling financially look to gambling to try to scare up quick cash.

As the saying goes, the house always wins, which means you lose if you go down that road.

The one thing that will alleviate the stress? Tackling your financial worries head on.

Take Control With A Paycheck Advance

It’s easy to slide into debt, but it’s easier than you think to climb out.

Have you ever heard of a paycheck advance?

It’s a surprisingly simple and quick solution to a temporary lapse in your finances.

If you’re hurting for emergency cash, a short-term loan, like the kind at Cigno, can make a big difference.

What sorts of things should you consider when looking into a payday loan?

First, make sure you consider all of the alternatives and get the short term loan lender that will best meet your needs.

A good rule of thumb to consider is if the service can provide you with money quickly.

That’s what makes places like Cigno so convenient – there’s not a long wait time before receiving the funds you need.

Plus, the application is quick and simple. There’s no time wasted when you’re signing up for an advance.

Another benefit of a paycheck advance? They’re easy to qualify for.

If you’re wondering who is qualified for a short-term loan, the answer is just about anyone.

Since financial problems can catch anyone unawares, there’s no judgment, just results.

Isn’t that a good feeling – having an easy solution to life’s money problems?

Use A Paycheck Advance Wisely!

The cash you receive should be for emergencies only! Don’t sign up and blow it on an unnecessary purchase.

Use your best judgment and make sure you cover only what you need to and don’t go further into debt.

Remember, eventually, the cash will need to be repaid. Don’t borrow more than you need; stick to what you need to get through the rough patch.

Make sure you can afford repayments, too. Fixing one financial crisis with another won’t help anyone.

Understanding the fees and interest is crucial.

Knowledge is power, so empower yourself to pull yourself up out of debt!

Don’t Let Debt Drag You Down

It’s so tempting to cry, lay on the couch or have a glass of wine too many when life throws a huge curveball at you.

It’s OK to shed a tear or two, but the thing that’s going to make the biggest difference is confronting your issues head on.

If you’ve got a cash-related worry rolling around in your thoughts, consider a paycheck advance to get you through to the other side.

The first step is often the hardest, so if you’re ready to tackle your cash problems, consider a short term loan.

Have you ever used a paycheck advance before? What’s your best advice for dealing with cash-related problems?

Let’s start a dialogue and together we can make debt disappear!

16Nov2016

Emergency Loans: When Should You Take One Out?

Strapped for cash when you need it now? You may be wondering if it’s time to take out an emergency loan. Here’s what you need to know to make a great choice.

Everyone’s been there.

You’re getting along fine and then something happens. Maybe it’s a medical bill you didn’t expect or an emergency dental procedure you didn’t see coming.

Maybe it’s a school trip for your kid they didn’t tell you about.

Sometimes, your next payday is just too far away and you haven’t been able to save for it.

That’s where we come in.

At Cigno, we offer emergency loans for people with bad credit, no credit, or who traditional lenders might have overlooked.

Not sure if an emergency loan is for you?

Here’s a quick guide to different types of emergency loan options and when you should take one out.

1. Credit cards

Credit cards are the option of choice for traditional lenders looking to provide quick access to credit.

If you have one already, it’s a simple matter of accessing an ATM and getting your cash.

Even if you don’t have one, applying and getting one is still an extremely fast option to pay your bill.

May cards even come pre-approved, allowing even quicker access to credit.

There are a couple of benefits to this sort of emergency loan access:

You keep all your financials with one lender,allowing for easier management in the long term
If you already have a credit card, it’s usually the quickest access to credit available to you
If you pay your credit card bill on time, it helps build your credit score and is extremely cost effective

However, there are some downsides to this type of credit.

First, if you need cash right now then a credit card application might not be fast enough.

Second, credit cards have notoriously high interest rates – most hover around 14% and charge compound interest each month. This means that even a small bill unpaid can quickly add up.

For example, if you borrowed $100 at 14% and didn’t pay it for three months, your bill would be $148.15.

A significant increase in cost.

When to use credit cards for an emergency loan

If you already have a credit card and have a plan to pay it back relatively quickly, it’s likely the best option for you.

If your bill can wait a few weeks while you get a credit card, then it’s even better – many options come with one-off interest-free periods, meaning that if you can pay it back within the interest-free timeframe, you can essentially borrow for free.

2. Payday Loans

Payday loans are loans that are given out on the assumption they’ll be paid back with the next pay cheque.

Perfect for those times when your next payday is just that little bit too far, payday loans are the fastest and easiest ways to access credit.

Payday loans have a few advantages over other emergency loan options:

Since they are guaranteed by your next pay cheque, they are usually available to those with bad credit
Because they are expected to be paid back within the week, fortnight, or month, they are extremely quick to access (often within the same day!)
You can get them for very small amounts – usually less than $1,000

These benefits mean that if you’re in a corner and don’t know how to get out, they can be a fantastic lifeline.

Since they’re given based on your income and only for the precise amount you need, it’s more difficult to over-borrow and get into trouble.

Finally, while their costs are higher because the lender is assuming more risk (after all, if you don’t use your pay cheque to pay back the loan,the lender is left holding the bag) there are actually government restrictions on what lenders can charge.

For example, at Cigno our lender’s fee only charges 5% interest on the loan amount.

When to use payday loans for an emergency loan

Payday loans are particularly effective for those with poor credit who can’t access other forms of lending like credit cards or home equity loans.

Specially designed for the small amounts of money that can ease the stress of an emergency situation, they are perfect for quick injections of cash, exactly when you need them.

However, they do carry a higher cost in general than other lending options out there – a premium paid because of their higher lending risk and the ease of lending.

In short, you pay a price for convenience.

3. Home equity loans

Like credit cards, home equity loans usually come from traditional lenders. Since they require a house, you’ll likely get it from the same provider as your mortgage.

Home equity loans are loans that are secured against your house. Basically, it’s a promise that if you don’t pay back the money that the lender gives you, they can come in and take your house to ‘make good’ on your loan.

Because there’s less risk to the lender of not getting their loan back, lenders will lend with a lower interest rate and usually lend more, so you can borrow a bigger amount for less.

However, there are a few catches to consider before you get a home equity loan.

For starters, they take longer to process. Since you’re dealing with a traditional lender, they move at traditional lender speed – slowwww.

Second, you need a house to be eligible. Not only that, you need a house that has significant equity in it to be worth something to the bank if you don’t pay back your loan. This means that the amount you’ve paid off from the mortgage from the principal amount you borrowed in the first place is higher than what you’re asking to borrow.

For example, if you borrow $100,000 for a house and pay back $20,000 of that plus interest, then you can probably get a home equity loan for up to $20,000.

Finally, you need to comfortable with the fact that if you don’t pay back your loan, you will likely lose your house, so the risk is significant for you the borrower.

When to use a home equity loan for an emergency loan

For a ‘need cash now’ type emergency, a home equity loan might not be a viable option because of the slow processing time.

However, for those with the option and the time, they usually offer the best rates for a quick injection of cash.

One popular financial strategy is to take out a short-term, fast loan for the now and a home equity loan for the future. This allows you to cash to use for your emergency, and the pay that loan back with your home equity loan and enjoy a better rate while you find your feet financially in the weeks and months following an emergency.

Wrap up

It’s extremely common to need an infusion of cash due to an emergency. Whether it’s a medical emergency, an unexpected bill, or just a bill that’s a little higher than you thought, it can happen to anyone.

Fortunately, being a little short one week isn’t the end of the world. Credit cards, payday loans, or home equity are all good ways to get the emergency cash you need when you need it.

Are you looking for a quick cash injection? Apply now for up to $500!

9Nov2016

The Complete Guide to Finding the Right Lender

November 9, 2016

Cigno Loans

licensed lender, safe loans Budgeting 18

If you’re considering taking out a short term loan, you need to find the right lender. Here’s our guide on how to protect yourself and your interests.

Short term loans can really help you get out of a tight spot.

However, it’s vital that you choose the right short term lender. Otherwise, you’ll wind up with an even bigger problem than you began with.

Sifting through all the options may take a bit of time, but it’s definitely worth it. In order to successfully navigate the field and choose the right lender, you should know what to look for and what to avoid.

Are Short Term Loans Safe?

Many people ask themselves whether short term loans are a good idea.

It’s true that there are some horror stories out there, as is the case with any type of lending (just think about people who’ve had negative experiences with even the most respected banks).

But for the most part, short term loans are a safe, highly useful loan solution.

Short term lenders operate under rules and standards established by the law. These rules are made to protect the borrower and ensure you get a fair deal.

Lenders win when they help borrowers. Providing their customers with a positive experience strengthens their reputation and keeps them in business.

So it’s not the case that providers of short term loans are “out to get” borrowers. On the contrary, short term loans make fast cash accessible to people who otherwise not be able to obtain emergency funds from traditional loan sources.

For instance, many people with bad credit qualify for short term loans, even when banks and credit unions reject them.

The reason interest rates for short term loans tend to be slightly higher than with bank personal loans is because of the additional risk these lenders take on. They typically approve borrowers without a credit check and deliver funds within 24 hours.

So, it’s a trade off. Interest that is a bit higher in exchange for flexible requirements and fast financing.

That said, it is important that the lender you select fits all the criteria of legitimacy and trustworthiness.

How to Detect Bad Short Term Loans

Don’t waste your time with scammers.

While most short term loan lenders are good, there are some that want to take advantage of trusting borrowers.

Here’s how to tell if short term loans are a scam.

Make Sure the Lender is Properly Licensed

If someone sets up shop as a payday lender, it’s because their business has been adequately certified and licensed.

If they aren’t, then nothing binds them to comply with the rules that protect the borrower. Doing business with such shady entities could put you and your money at risk.

When you find a company, look them up! The Australian Securities and Investments Commission (ASIC) holds information on the companies that have received the proper certification.

If a given short term lender does not have an Australian Financial Services Licence or an Australian Credit Licence from ASIC, this should be a red flag.

Investigate their Online “Footprints”

The internet has made it possible to gauge the legitimacy of a company by looking at its “social proof.”

Start by googling the lender. What comes up?

Make sure their website looks professional. Their address, phone number, and email should all be listed. Licensing information and terms of services should all be available.

If scam complaints appear, that should be an automatic dealbreaker.

Also look at how much of an online presence they have. Legitimate businesses have Google Places listings with reviews. They’re on Yelp, Angie’s List, and other business directories.

Does the lender you’re researching have a Facebook page with reviews, likes, and regular updates? What about LinkedIn?

Consider all of these questions as you perform your research. What you want is a thorough social profile that and ample evidence that real people have used and are happy with the lender’s service.

Don’t Trust Lenders That Ask for Money in Advance

Real short term lenders don’t ask you to give them money before they lend you money. That’s a common tactic of scammers.

The way professional short term loan providers do it is to simply request bank statements, pay stubs, or other evidence of income they can use to qualify you.

If you’re approved and you accept, the lender hands you the cash and you go on your way. You’re never required to pay anything until the term of your loan is over.

Avoid Short Term Loans with Hidden Fees

A respectable short term lender doesn’t try to play “gotcha” with the fine print.

Before you sign anything, read the terms and conditions of the contract in full. Don’t worry how much time it takes. Be prepared to walk out if necessary.

Keep an eye out for exorbitant interest rates. Find out how much short term lenders are allowed to charge in your locality. Study the industry average to be sure you’re not getting stiffed.

Use Short Term Loans that fit Your Unique Needs

Once you’ve narrowed your pool of options down to the legit lenders, go with the one whose services are tailored to your personal circumstances.

Maybe you want the convenience of online short term loans. With internet-based lenders, you can get approved and have your money deposited without ever having to leave your home.

Pressed for time? Select the service that will give you the cash as soon as you sign.

Maybe you’re currently not employed. But you have a regular income from Social Security. Choose short term loan provider that accept Social Security as a valid form of income.

Conclusion

Finding the right short term loan is an important task. Getting cash fast is important, but it’s also important not to rush into a bad deal.

Doing due diligence on the available lenders will help you find the best terms.

Create a list of options. Look them up to see what experiences past borrowers have had with those lenders.

By sorting out the unlicenced, shady businesses with low social proof, you protect yourself from being scammed.

Then, it’s just a matter of choosing from the offers that best fit your needs.

This process takes some extra time, but you’ll be happy you did it when you’re enjoying the rewards of a quality short term loan.

3Nov2016

Pay Day Loans: The Truth About Loans and Your Credit Score

Let’s dispel a myth right now – payday loans don’t hurt your credit score. In fact, they can actually help you build credit. Read more about it here.

As one of the most controversial financial products available, a lot of questions swirl around the idea of payday loans.

While payday loans can be incredibly helpful for those in a financial bind, the thought of these kinds of loans can be intimidating for some if you don’t know all the facts.

Let’s start by getting one thing straight—requesting a payday loan does not hurt your credit score.

What is a Payday Loan?

Also called a payday advance, salary loan, payroll loan, small dollar loan, or cash advance loan, a payday loan is a small, short-term unsecured loan regardless of whether repayment of loans is linked to a borrower’s payday or not.

This type of loan relies on the consumer having previous payroll and employment records.

Payday loans are often used by people who are in a bind with their finances and looking for some assistance in making it until their next paycheck.

In the majority of cases, this option is exercised if no other immediate resources are available, such as credit cards or savings account funds.

How do Payday Loans Affect My Credit Score?

Put simply, because lenders do not typically run a credit check during the application process. That’s why requesting a payday loan does not impact on your credit score.

In place of running a credit check, lenders inquire about your current employment status and source of income.

They can also mandate that you submit a post-dated check to cover the amount of the loan. This happens once funds from your employer are transferred to your account on payday.

However, there is an instance where your credit score could take a hit.

This would occur in the event that a post-dated check you sent to the payday lender does not clear the bank and you default on the loan. In this case, your credit score could be affected (unless you have another source of funds available to cover the due balance).

How will Payday Loans Appear on My Credit File?

There’s no question that payday loans will appear on your credit file, just as any other type of borrowing would.

These kinds of loans are found under the consumer credit section; so even if a payday loan didn’t affect your credit rating, lenders will still be able to see that you have had a payday loan(s).

It’s important to be aware that there are some lenders that will not lend to you if you have any active payday loan accounts.

In some instances, a lender may even have a policy not to lend to you if you have had any payday loan(s) recently.

Payday Loan Positives—How Payday Loans Can be Beneficial

If you meet your repayment obligations to the lender for your payday loan, you will have a clean repayment history. This can be beneficial for your credit file in the way that it shows you to be a reliable borrower, at least for this kind of financial product.

So, just as overdue credit may be negative for your credit score, a payday loan may actually help your credit score.

Since credit reporting in Australia got a makeover a couple years back, credit providers now get a more comprehensive idea of a person’s credit history.

With the introduction of credit reforms that came into effect in March 2014, more information is listet on your file about your borrowing history.

Since this includes having more details about the type of credit account you opened, when the account was opened and closed, and your payment history, your payday loans repayments can prove to be a positive thing.

If you have some adverse credit history documented, this is great news for you! Making your payday loan repayments on time can actually negate any unfavorable credit history on your file.

However, while some lenders take the information on a credit report at any one point in time into account, the weight placed on the info will differ.

Need even more reason to believe in the positivity of payday loans? Another advantage of positive repayment history for payday loans is that the credit limit of open credit accounts is displayed.

This means if you have one of these loans that you’re currently in the process of paying back and a possible lender takes a look at your file, they’ll be able to see that your loan isn’t hefty.

(In the past, prospective lenders would have only seen that you made an application for a loan, but not be aware of whether you opened it or how much credit you were afforded. Now you’re in luck, as borrowers can have a clearer image of your financial position.)

So We’ve Heard the Good News, but Can Payday Loans Negatively Impact My Credit Score?

Unfortunately, depending on the payday loan, it can hinder your credit score as well. However, since your credit score is calculated individually by each credit reporting agency, the impact differs depending on what agency’s calculations you look at.

Credit scores do have a direct effect on a prospective lender’s decision. Therefore, the impact payday loans have on your score can’t be ignored.

The good news is, your credit score is just one of the factors that influence a lender’s decision.

“It is not only the type of lender but the type of credit account, the amount applied for, number and frequency of credit enquiries, as well as a range other factors. A payday loan would, for example, be given a different weighting than a bank mortgage and may contribute to a lower score” said Marketing Manager, Belinda Diprose.

Fortunately, there are ways to keep an eye on your credit file and monitor the impact different kinds of loans have had on your credit score.

So You You’ve Decided to Take Out a Payday Loan, What Now?

While payday loans can be extremely helpful in sticky situations, don’t let the ease of the application process for the loan lead you to make mistakes.

Make sure to be careful with your loans and avoid the following common payday loan mistakes:

Taking out too many loans.
Not making your repayments on time.
Making several applications in a short amount of time.
Not checking your credit file.

Have you ever taken out a payday loan? Tell us what the process was like for you in the comments!

26Oct2016

How to Make Your Pay Day Loan Work for You

Sometimes pay day doesn’t quite match up to when cash is needed. Enter pay day loans. Here’s how you can use them responsibly to work for you.

Pay day loans have been a lifesaver for many Australians since the economic crash of 2008. In March over 7000 Australians went bankrupt, and many in the nation are struggling to even meet their needs.

Have you ever been stuck in between paychecks with a bill collector crawling up your back? Do you feel like your pay day comes at the absolutely wrong time?

While a pay day loan isn’t a constant solution, when you are at your wit’s end with important bill payment, it might be a good short-term solution for you.

Loans are scary for anyone. Taking the wrong loan at the wrong time could land you in a world of hurt. This is why we’ve set out to compile a little bit of advice on how to make a pay day loan work for you.

1. Pay Day Loans: What are They For?

Have you been responsible with your money so far and found yourself at a dead end looking for a way out? This is a completely valid reason to take a loan.

But, you need to make sure you do have a valid reason for taking out that loan. Because if you are taking out loans unnecessarily, you will find yourself saddled with a loan you may not be able to pay back in the future.

Although pay day loans generally fall under $500, the interest rate alone might be detrimental. Interest rates on pay day loans can be as high as 400% in other countries, but in Australia, fortunately, we have laws that keep a lender from charging over 20% at the outset and more than 4% each month. We’ll later go over how much that would cost you in the long run, but, although our government protects you from greedy lenders, this is still not a number to take lightly.

Pay day loans are the lifesaver rings of the financial ship. And that’s exactly what they are for, emergencies.

For this reason, you should never borrow more than you need.

Many people in the world mask their lack of wealth by living above their means. So, you need to sit down and take stock of your finances before taking out a pay day loan.

Will you be able to pay it back? If the answer is “no,” then maybe you need to consider the alternatives.

2. Pay Day Loans: You Only Need One

As we pointed out above, $500 may seem like a small loan, but when combined with the interest rate, it is actually a large loan.

Some sleazy loan companies might try to get you to take out more than one pay day loan to satisfy more than one bill.

This is a tempting scheme, but those loan companies do not have your best interest at heart. They are only in it to make as much money off of you as they possibly can.

Again, if you need more than a $500 advance on your paycheck, then you might want to consider alternatives.

What kinds of alternatives are there?

One of the best pieces of advice I ever heard about investment was, go to your family and friends first. You might be surprised at the generosity of those you know.

The average Australian borrows $200 from friends and family every month. And this is not an unwise move.

Think about it. When you borrow from an institution or a loan company you have fees and interest rates.

Now, you may have a business savvy family member who might decide to charge you interest on their loan to you. But most family members probably wouldn’t even think to do such a thing to their nearest and dearest.

Also, have you tried negotiating with your bill collector or utility company? Sometimes, if you explain your situation, bill collectors will give you a grace period to pay them without penalty.

If you haven’t defaulted on their payments, then you may be in good graces with them.

If you are renting and you have been paying rent early each month, use this to your advantage when talking to your landlord.

Also, do you have anything laying around the house you could sell? Often times what you think might not be of interest to another person is really gold. eBay and Amazon are excellent places to make a quick dollar.

3. Pay Day Loans: Pay it Back ASAP!

Now it’s time to talk about that pesky thing we call interest rates.

Have you ever accidentally run up your credit card and found it much harder to pay back over time than you thought?

The average credit card interest rate is only about %16.9 in Australia. That’s much, much lower than the initial fee on a pay day loan.

If you were having a hard time paying off your credit card, you are going to have a hard time paying off your loan.

Using a handy loan calculator, we can see that at a 20% fee and a 4% per month interest rate, in a year you would pay over $800.

If seeing that number isn’t incentive enough to pay off your loan as soon as possible, I don’t know what is.

And remember, this is only to get you through until your paycheck comes in later that month. If you can’t pay it that month, be sure you are able to pay it within a month or two.

Most loan businesses will work with your pay structure. When are you getting paid next? Most likely the loan business will take that or the next paycheck date to give you an estimate on when they expect you to pay back the loan.

You will most likely not be taking a whole year to pay back your pay day loan. And if you are smart with your money, you will have it paid off in two pay cycles.

Conclusion: Make the Right Decision

Now that you’ve considered all the options, looked at your finances, studied up on the terms and conditions, you are ready to make a decision.

Again, stop. Take a moment to evaluate everything.

Then come on over to Cigno Loans and apply today!

1 2 3 4