Installment Loans and Payday Loans: What’s the Difference?

When your personal expenditures exceed your income, the quickest solution is to borrow the money. Fortunately, there are short-term lending options that make getting several hundred dollars in your bank account quick and easy. Two of the most commonly used short-term options are payday loans and installment loans. On the surface, the two options may seem identical, however, there are some differences you should be made aware of to make the most informed decision on which loan type is best for you.

 

Payday Loans

Payday loans are short-term loans for small amounts of cash. The loans are provided to the borrower with the understanding that the funds will be repaid on their next pay cycle (usually within 14 days). Applying is generally easy and can be done online. Eligible applicants will need to be at least 18 years old, have verifiable income, and a valid checking or savings account.

 

Installment Loans

Installment loans are alternative payday loans. Unlike payday loans that have to be repaid within 14 days, installment loans can be spread out over the course of several months or years depending on how much is borrowed and the agreed upon terms.  Like payday loans, installment loans can be applied for online and only require proof of income and a checking or savings account. Since they’re geared towards those with low or no credit, your chances of approval are a lot higher.

 

What’s the Difference?

Short-term installment loans and payday loans may sound a lot alike, however, there are some key differences you’ll want to be aware of.

Loan Amounts – The amount that can be borrowed is different. While a payday loan is typically $100 – $500, depending on the type of installment loan, customers could borrow a thousand dollars or more.

Repayment Period – Since payday loans are as the name implies, to be paid back on your next payday, the ideal repayment term is 14 days. Since there was only a small amount borrowed, lenders expect it to be paid back faster. Failure to do so could result in much higher interest rates and extension fees added to the total.

Installment loans, on the other hand, provide borrowers with more time to repay. Since they’ve borrowed more money, the loan is broken up into several small payments over the course of a few months or years.

Extended Fees – When a borrower is unable to pay their payday loan on the agreed upon date, they are required to pay an extension fee. This fee can be as much as $30 per $100 borrowed and does not count towards the payment of the loan. This, in turn, wastes more money and prolongs the goal of paying off the loan altogether.

Installment loans do not have extension fees. Instead, the loan and interest rate are divided up into small payments over the course of several months. The fixed monthly amount goes towards paying down the balance.

Flexibility – Another significance in payday loans and installment loans is flexibility in repayment. Payday loan balances, fees, and interest must be repaid within 14 days to avoid higher fees and interest. Installment loan providers, however, give you an option of how long you’ll need to pay off your loan. You can choose to pay it off early to save on interest, or make timely, fixed monthly payments until the balance is paid in full.

 

Choose Carefully

There are a lot of differences between payday loans and installment loans. Whatever your financial problems might be you don’t want to make them worse by choosing in haste. Review your circumstances carefully and then choose a lending product that best matches those needs. Remember, the idea is to get out of a jam, not put yourself further into debt. Review payment terms, payment amounts, interest rates, fees, eligibility requirements, and more to discern if you’ve chosen the right loan for you.

There may come a time when your finances are in disarray and you need a lifesaver to help you out. Though short-term loans like payday loans and installment loans can be beneficial for getting cash fast, it is imperative that you make an informed decision on which loan option is better for you. As you can see, while payday loans might be okay for small needs like a higher than normal bill, installment loans can be best for more expensive things like a car repair or home improvement task that will take longer to pay off. Whichever you choose, be sure that you know what to do and how to be a responsible borrower to avoid going further into debt.

Why Not to Waste Your Money on a Timeshare

Despite popular belief, timeshare is not a financial investment. Buying a timeshare is like buying a new car. The second it is purchased from a resort developer, it decreases in value by 50 – 90%. The average price of a timeshare is about $9,000, so that means the moment you sign on the dotted line you’ve basically just thrown away thousands and thousands of dollars.

Before we get ahead of ourselves though, let us explain what a timeshare is. There are many different types of timeshares, but in general they are a type of vacation ownership in which you own a piece of a unit within a resort. The timeshare is usually divided into 52 pieces because there are 52 weeks in a year and most timeshares are for 1-week each year. Timeshares can make you feel like you’ve purchased a vacation home, but, in reality they’re nothing more than an extremely overpriced piece of paper.

If you head over to Ebay and do a search for a timeshare such as Grandview in Las Vegas, you might be surprised to find that the timeshare is being sold by an individual owner for just $1. This is because many timeshare owners have found that their fees never end and they just want out. Timeshare owners are required to pay yearly fees that average around $850 per year. Many timeshare owners find that it’s cheaper to book a room in a hotel than to continue paying their obnoxious yearly maintenance fee and just want their timeshares to disappear. What they soon learn is that there is barely a market for their timeshare and it can be nearly impossible to get rid of it, so they offer it up for only $1.

Some resorts allow timeshare owners to give the timeshare back to them, but others do not. This is actually a recent development. In the past, almost all of the timeshare resorts refused to accept the timeshare back. Why would they? They get to sit back and collect that sweet, sweet maintenance fee money each year. Eventually though, timeshare developers learned that they could sell you a $9,000 timeshare, charge you to take it back, and then sell it again to someone else for $9,000. Capitalism at its finest folks!

If you own a timeshare and your resort refuses to take it back and you’re unable to sell it, you may want to look in to one of the many timeshare exit companies. Timeshare exit companies usually work with lawyers to help you cancel your contract with the resort. Sometimes their techniques are a little shady though, so you need to be careful. In fact, one of the most popular timeshare exit companies, Timeshare Exit Team, is being sued by a resort developer for its practices.

With all of this negativity, why would anyone in their right mind buy a timeshare? Well, for the most part, many people are pressured in to it. High pressure sales tactics are ripe in the timeshare industry. Lies are rampant and it’s not uncommon for a sales person to describe the product in a way that is absolutely untrue. Sometimes a timeshare resale can make sense though.

A timeshare resale is for sale by owner, so it can usually be purchased extremely cheaply. You’ll be on the hook for the yearly maintenance fees, but that’s not a big deal if you actually use the timeshare each year. Most timeshares are more spacious than hotel rooms and come with a kitchen, so it can feel a little more-homey. Some people like this enough to buy it.

In conclusion, never buy a timeshare from a resort developer directly. If you’re interested in purchasing one, make sure to buy resale. If you already own one, be careful when you’re trying to sell it. Don’t be fooled in to think it’s worth more than you paid for it as this is very rarely the case. Look at what others are pricing your timeshare for on Ebay, and you’ll get a good idea of its worth. Let us know of any questions in comments below!

The Top 4 Ways to Consolidate Debt

Debt is an inescapable part of life for many Americans. A shocking 80 percent of the population holds some form of debt. If you are falling behind on payments or feeling overwhelmed, there are a variety of debt relief options. Debt consolidation is one of many ways to deal with debt.

Debt consolidation is the process of combining multiple bills into one monthly payment. There are four main strategies: balance transfers, personal loans, home equity loans, and debt management plans. The type of strategy you use will largely depend on your credit score and whether you want to do it yourself or work with a professional.

Balance Transfer

balance transfer involves paying off debt with a low or zero percent APR credit card. This reduces or eliminates interest rates, allowing you to pay off your debt more rapidly, ultimately saving you hundreds to thousands of dollars in interest.

Many credit cards advertise a promotional or introductory period, ranging from six to 24 months. During this time interest rates are low or even non-existent. However, most credit cards charge a balance transfer fee, often 3 to 5 percent of the transferred debt.

Balance transfers have several limitations. Firstly, every credit card comes with a credit limit. If your debts exceed this amount you will not be able to consolidate all your debt on one card. Also, when the promotional period is over the credit card will often return to normal interest rates. Additionally, if you miss a payment you may no longer qualify for the advertised rate.

Balance transfers may also impact your credit score. It is important to be mindful of your credit utilization ratio. Part of your credit score is determined by the percent of available credit that you currently use. It is recommended to keep this ratio under 30 percent. If you receive a credit card with a credit limit of $10,000 and use it to pay $9,000 in debt, then your credit utilization ratio is 90 percent, for that card. It is important to be mindful of this when deciding if a balance transfer is a good option for you. Furthermore, opening up a new account could negatively impact your score if you recently opened up others lines of credit.

Finally, zero balance credit cards may have high credit score qualification requirements. Before choosing a balance transfer, determine what your new interest rate will be, including any transfer fees, to help you decide if it is a wise financial move. If you cannot get a lower interest rate you may want to consider other options.

Balance transfers may be a desirable option if you have a high credit score. To fully utilize this option you will want to pay off your debt during the promotional period. If you can stick to a budget and strict payment plan, this may be a great option for you.

Personal Loan

If you are leery about opening a new credit card you may want to consider a personal loan. Many companies even specifically advertise loans for debt consolidation. Personal loans often provide lower interest rates than standard credit cards. However, rates vary greatly based on the qualifications of the borrower, ranging from two to 36 percent. If you are interested in a personal loan you will need to examine your credit worthiness. Personal loan companies often look at your credit score, credit history, debt-to-income ratio, and total household income. If you are an ideal candidate you could potentially receive advantageous rates.

However, personal loans may include other fees such as origination fees, prepayment penalties, etc. All of these fees should factor into your decision. Additionally, personal loans have a set payment period. This may help you stay on track and get out of debt in a set period of time, often three to five years, with an affordable monthly payment. They also allow consumers to borrow large amounts, some even as high at $100,000.

If you have a high credit score, a personal loan may be a great option for you. It will allow you to pay your debt off at a fixed rate over a set period of time. You also have the option to borrow a large amount to cover all of your debts.

Home Equity Loan

Home equity loans work similarly to personal loans. You borrow a fixed amount and repay it over a certain period of time. However, with a home equity loan, you are borrowing against the equity in your house. This type of loan is considered secured debt; therefore if you default on your loan the lender can foreclose on your house. According to Magnify Money, these loans typically have lower interest rates and longer term limits. However, your credit history will impact your rate. Additionally, the loan amount is dependent on the equity you have in your home. Therefore, the loan amount may be greater than that of personal loans.

Similar to personal loans, there may be additional fees including origination, broker, or document preparations fees. You may also have to pay an appraisal fee because the loan is contingent on the market value of your home. However, the interest is often tax deductible up to $100,000, for married couples filing jointly.

Home equity loans may be a good option if you have a substantial amount of equity in your house and a high credit score. They offer low tax-deductible interest rates and allow you to borrow large sums.

Debt Management Plan

Another common method for consolidating debt is a debt management plan (DMP). During this option, you work with a certified credit counselor. Most credit counseling agencies offer a free consultation where they review your debt, income, budget, and credit history. Then, they create a plan to help you get out of debt.

Debt management plans typically take 36 to 60 months. These companies often negotiate with your creditors to help lower your interest rates. You will often pay the agency, one monthly payment, and then they pay your creditors. Though many companies are non-profit organizations they still charge monthly fees. These fees typically range from $25 to $55 per month. Some companies also charge setup fees, averaging around $75.

In addition to creating a payment plan, your certified credit counselor can also help you create a budget and learn strategies to stay out of future debt. The plan and service are individualized to meet your specific needs.

It is important to note that during a debt management plan you are usually prohibited from opening new lines of credit and using your credit card. If you are asked to close lines of credit it could negatively impact your credit score.

A debt management plan may be a good option if you have high debt and are considering bankruptcy. You can enroll, even if you have a bad credit score. The company will help negotiate lower interest rates lowering overall payments and provide financial literacy education.

All four debt consolidation strategies have advantages and disadvantages. Consider your individual circumstances, particularly your amount of debt and credit score before deciding on a strategy. One of the best things you can do is run the numbers and determine which strategy will save you the most long-term, including interest rates and associated fees.

Author Bio: Amber Westover manages the debt blog at Best Company. She specializes in debt and personal finances. Amber is passionate about learning and researching. 

Does Your Bumper Sticker Put You at Risk of Being Pulled Over?

We’ve all heard the myth (yes, it is a myth) that drivers of red cars are issued speeding tickets more often than other cars. We’ve been told that tickets riddled with mistakes are null and void, again untrue. But here’s something that’ll make you do a spit take—your choice of bumper sticker is cause enough to get you pulled over.

What-the-what now?

When I got my first car, my parents warned me against plastering my bumper with bumper stickers. According to them, having a unique bumper sticker (or several) would make it easier for people up to no good to recognize my car, whether it was parked at the store, at my job or in the driveway. If they didn’t agree with the message, they could vandalize my car.

As it would happen, police officers look at bumper sticker messages and pull motorists over based on those messages. Here are a couple of examples:

DARE Leads to Arrest

In 2011, a Texas couple was driving down the highway going two miles per hour over the speed limit. An officer pulled them over, and after noting a rosary hanging on the rearview mirror, an air freshener and a DARE bumper sticker, believed they were smuggling drugs. The officer did not find any drugs upon searching the vehicle, but did find a lump sum of cash that he then confiscated. After confiscating the cash, the officer arrested one half of the couple.

At appeal, the judge ruled in the officer’s favor, arguing that through the use of the rosary, air freshener and DARE bumper sticker, they were trying to hide contraband. Again, no contraband was found. And remember what DARE stands for, we learned about it school: Drug Abuse Resistance Education. An officer believed a couple with a rosary, air freshener and an anti-drug bumper sticker were hiding something.

Pulled Over for Buckeye Support

In 2013, a bereft couple was driving home from a funeral when they were pulled over by a police officer. They weren’t going over the speed limit and they weren’t driving erratically. The couple had been pulled over after another officer (not the one who pulled them over) notified two patrol officers that a vehicle with a marijuana bumper sticker was on their route.

The patrol officers flanked the vehicle on either side, and the driver, Bonnie Jonas-Boggioni reported that “they had body armor and guns.” They asked her why she had a marijuana bumper sticker on her car, and she explained to the officers that it was not an image of a marijuana leaf, but was in fact a Buckeye leaf decal. The decal is an exact replica of the stickers Ohio State Buckeye football players receive when they have performed a good play.

In an interview with Think Progress, Jonas-Boggioni stated that “the officer explained that someone from outside his jurisdiction—apparently another officer—had spotted the leaf sticker and thought it might indicate that the car was carrying marijuana.”

Upon realizing the mistake, the patrol officers let the couple go on their way.

As you well know from your years of driving, a ticket can increase your auto insurance rates. It’s not exactly fair to be written up a ticket just because you have a bumper sticker that might be misconstrued as supporting something illegal.

Sites like CoverHound help drivers compare auto insurance rates in real time. You’ll be paired with an agency that understands not all tickets are created equal, and that one ticket shouldn’t cost you an affordable rate.

Have any bumper stickers that might get you pulled over and cost you a ticket?

Financial Leadership: 4 Tips for Business Owners

Being the leader of a business is not an easy job by any means and having an executive leadership masters is becoming a must if you wish to assume a similar leadership position in the future. Running a company, especially the financial aspects, is a constant challenge, irrespective of how successful the company is at the moment. In order to help the new entrepreneur or the financial head of a business, the following four simple but effective tips have been collected from some of the most prominent corporate leaders around today.

The Number Game

Nothing is more important than numbers when it comes to finances and you need to figure out and track which metrics are most important to the business. Make it a routine to have weekly and monthly scorecards so that you can keep your eyes on those all-important numbers on a constant basis and maintain your focus on improving them.

Make the Numbers Public to Your Employees

Once you have the numbers, you need to make everything as transparent as possible. Make sure that everyone who is on the company’s payroll can see those metrics. This will invariably encourage them to improve those numbers because a company that makes more profits pays better and allows for better working environments for its employees. In addition to that, this transparency ensures that your employees are not overestimating your profits and assuming that they are being underpaid.

Invest in What People Want

This is perhaps both the most important and the most difficult business decision that you will have to take as an executive leader. While investing and producing what your customers want seems simple enough, in practice, it’s far from it. Once you figure out what the bulk of your customers want, you need to forego many other aspects of your business model that might appeal to you or others. For example, Apple makes products that cost significantly more because they have a huge profit margin and they sell their brand name. Apple knows that people will buy their products, irrespective of the price tag. If they shift their strategy and try to provide better value-for-money products like most other companies in the industry are trying to do, they will lose their unique selling point. As complicated as it is, figuring out what your target customers want and sticking to it is what most successful companies in the world do.

Use Purpose as a Motivator

If you are just starting out, you will probably not be able to give your employees very impressive salaries. So what’s there to keep your key employees from leaving your company and joining a bigger one for a far greater amount of money? The answer to that question is “purpose.” Be clear with what you are trying to achieve as a unit and motivate them by making your employees a key part of that future. People work for things other than money and purpose is one of the strongest motivators in the world. The promise of a bigger and brighter future and the purpose of building something great together have laid the foundations for great companies in the past.

It is recommended that you complete your executive leadership masters online so that you can also finish your education in finance at the same time.

Coupled with the training in leadership and the necessary financial knowledge, you should be able to put the techniques mentioned here into practice with great success. There will still be mistakes as nothing can really replace experience, but you will make far fewer of them and progress much faster than anyone else in your position.

How to Efficiently Run Your New Business

Running your new business may not mean that you take charge right away. Ideally in your contract of sale there’ll be a hand over period in which you’ll be trained in the day-to-day operations of your purchase. Use any of these periods wisely as a time to critically assess the workplace as it currently is. For example, you may take the time to see how existing staff do their job and get them to explain their workplace processes. In some instances, formal standard operating procedures will vary to what is actually performed when completing a certain task, so identifying any gaps in this process will allow you to get a clearer picture of what needs to be updated in terms of internal communications.

sole proprietorshipIf you inherit staff from the previous ownership, remember that although there may be a mix of people who do not think or even act the same, this diversity cultivates success. As tempting as it is to replace staff with people who are more acquiescing to your anticipated, new management style, think carefully before transitioning them, they too may also need time to adjust to you.

Another valuable task to undertake when you’re running a new business is to audit its technological capability. Generally, tools will need to be experimented with then adjusted to suit the specificities of your business as part of a process of collective learning. If you don’t have the capability in-house, it could be worth getting a consultant in to assist you to review your company’s use of technology and make suggestions to streamline processes. Not only will improving a new business’s technological competency translate into improved organisational efficiency, but will free time for other activities such as research and development.

Once you’ve had a chance to see how the business is currently operating, that should inform how you will proceed to manage it. Even if you already have an existing management style, it will need to be adjusted to suit the new workplace it is being applied in, even if it’s in a similar business to your previous experience. For some background preparation in this area, research the varying approaches of organisational theories such as network theory, ecological theory, general systems theory and strategic choice theories. It’s completely fine to adopt aspects from several schools of thought to best suit your business. It may be of interest to know that due to increasing dynamic nature of business in areas of technology, risk management and market trends, strictly hierarchal organisational structures deliver lower levels of performance than flatter, cross functional models of organisation. Therefore, you may consider a more adaptive style of management to improve your efficiency.

So whether you’re at the stage of researching businesses for sale or are about to settle on one that you’ve already purchased, it’s important to approach its management firstly from a position of listening and learning. This enables you to develop a stronger and more relevant strategic plan that will lower operating costs and boost efficiency.

3 Things You Need to Know Before Taking a Payday Loan

As inflation continues to rise across the UK, the disposable income levels of British citizens have come under sharp focus.

The most recent studies have been carried out by the Resolution Foundation, who have revealed that only the top 1% of households in the UK have fully recovered from the financial crisis.

As citizens continue to struggle with real wage stagnation and the rising cost of living, there may be a growing temptation to seek out unsecured, short-term loans. While this can provide relief, however, it is important to consider the following before taking out a payday loan.

  1. Payday Loans Still Carry Fixed Interest Rates

While the days of excessive interest rates on payday loans may have come to an end, it is still important to understand the nature of short-term lending and calculate the precise amount you will be required to pay back.

Regulations introduced in 2015 by the Financial Conduct Authority (FCA) capped all payday loan interest rates at 0.8% a day, minimising the cost of borrowing nationwide. This is still slightly higher than secured loans, however, so you must factor this when determining whether or not you can make a full repayment according to the terms of the agreement.

So, do your own calculations when determining how much you can actually afford to borrow, before reading through the necessary small print to highlight any other factors that may affect your repayment.

  1. Not All Lenders Are Created Equal

While all payday loan firms offer a similar service, they are not all created equal. There are even some that have forged their own unique niche within the marketplace, to the point where they would even classify themselves as payday loan firms.

Take Smart Pig, for example, which delivers a loan service aimed at students and positioned itself as a viable alternative to a classic payday loan. Not only does it cap interest rates at 0.8% per day as stipulated, but it has also placed further restrictions and eliminated hidden fees to create a fair pricing structure.

It is important to keep this in mind, as ideally you should seek out specialist short-term loans that are designed to meet your specific circumstances.

  1. Payday Loans Are There for Emergencies, Not Cash-flow Shortages

While payday loans have historically been demonized, they do serve a viable purpose in the modern age so long as they are used responsibly.

More specifically, they should only ever be used to cover an unexpected payment or emergency, so long as the value can be comfortably repaid from your next pay-packet. Conversely, they should not be used to fund a lifestyle or plug gaps in your cash-flow, as this becomes unsustainable due to the mounting interest and late payment charges associated by some operators.

Getting Your Masters in Accounting on a Tight Budget

Would you like to get your masters in accounting degree but feel like your budget just won’t allow you to?  If so, you are not alone.  Many undergraduates have a hard time financially.  Luckily, there is a way to go back to school for your masters even if you are on a tight budget.  Today, we are going to learn some tips that will help you get started.

Choose an Online School

We all know that graduate school can be very expensive.  But this doesn’t have to always be the case.  There are some online accounting masters degree programs that offer affordable learning from the comfort of your own home.  Going to school online is a great way to save money and the best part is you can attend anytime, day or night.  This will help free up your schedule and you can even keep your day job while going back to school.  Also, you won’t have many of the common expenses associated with going to a brick and mortar school.  Gas, wear and tear on your vehicle, lunches, and student housing are all things that you as an online student will never have to worry about!  So if you are looking to get your master’s degree, doing it online is a wonderful option if you are on a tight budget.

Rent Textbooks Instead of Buying Them

One of the most expensive things about college is the cost of textbooks.  Depending on the course, some textbooks can cost hundreds of dollars and many times they are not covered by student loans.  This means that a student will have to pay out of pocket for some of their class materials.  If you are on a tight budget, buying books can be very difficult.  But there is a great alternative out there that can save you loads of money.  There are several online companies that will rent you a textbook for a fraction of the price of a new one.  Once you are done with them, you can return them and rent more.  For more info on renting textbooks, please check out this helpful link.

Take Advantage of Student Discounts

Being a college student has some amazing benefits.  Many restaurants, book stores, and even some attractions offer handsome discounts to students. While 5% off your meal doesn’t seem like much, those discounts can really start to add up over time.  Let’s face it, the more money we can save, the more money we’ll have to spend on important things like student loans. If you would like to learn more about the different types of student discounts being offered, please check out this amazing website.  Here you will find many surprising ways to save as a student.

These simple tips will help those on a tight budget save money and be able to get that masters degree in accounting they have always dreamed of.  With some penny pinching and some proper budget planning, you too can accomplish your goals.

Financial Tips For Preparing For Big Future Purchases

You truly never know what lies right around the corner. The future is completely unpredictable and you could easily find yourself in a precarious situation before you know it. In many cases, people find themselves in a bad situation, because they’re required to spend money they simply do not have. Perhaps the expenses are associated with medical treatment? Alternatively, there may a possibility that you need to replace or repair your automobile. Whatever the situation may be, it is pertinent to prepare in advance for those big future purchases. Tips for doing just that will be provided below.

Save As Much As Possible

First and foremost, you should begin saving as much money as possible. This might seem easy, but it is simply more difficult than you could ever imagine. With the current state of the economy, most people now live from paycheck to paycheck. They do not believe it is possible to save money. This is often a misconception. Remember that it is not required that you save a substantial amount. Even ten or twenty dollars per month will add up over a long period of time. Begin saving money from each paycheck. You’ll be glad that you did in the near future.

Avoid Luxury Purchases

Unfortunately, many consumers make the mistake of purchasing items that they simply do not need. Perhaps it is a brand-new television or computer? These items are probably not necessities. Going without your television might be difficult, but it could save you a few hundred dollars. Remember to avoid luxury purchases, unless they are indeed absolutely necessary. Save the money and put it away for a rough day.

Consider Taking Out A Small Loan

Loans are generally a big no-no. Nevertheless, they can be very beneficial from time to time. When you’re in need of quick cash, you should definitely think about taking out a loan. Doing so will allow you to get access to the money you need. Just remember that loans can be a double-edged sword. Be very cautious and pay close attention to the interest rates. Also, remember that you may be able to borrow from relatives. This will often allow you to get the money you need, without worry about hefty fees. Click here to find out where to acquire loans.

Save Valuable Assets

Another thing to remember is that some of the items sitting around your home could be worth a pretty penny. When you run into a troubling situation, you may be able to use these items to your advantage. Take the items to a pawn shop or sell them at an auction. This will help you gain quick access to a good lump sum of money.

Protecting Yourself

Although insurance can be expensive, it could prove to be enormously helpful in the future. With the right insurance, you could avoid a hefty medical bill. Alternatively, the insurance could help you fix or replace a damaged vehicle. If you can fit the monthly premium into your budget, you should definitely consider investing in insurance. You’ll be glad you did when an accident happens.

How Far Back Can I Claim My PPI? A Question On The Minds Of Many

At present there is the ongoing scandal of insurance mis-selling (this has been going on in the UK for a number of years and there are cases of miss sold PPI dating back more than 20 years), this is a financial scandal that has been raging for more than a decade with a number of different ppi claims companies’ handling claims for customers (in some cases claimants have hired their own independent solicitors or even pursued a PPI claim themselves).

When it comes to payment protection insurance claims (PPI claims for short) some examples of important questions on peoples minds at the moment are questions such as “how far back can I claim PPI?” Expanded Meaning: “how far back in time can my payment protection insurance policy be before I’ll be unable to make a claim for compensation?”.

The reality is: with a PPI claim there is officially no formal time limit (some people have successfully claimed compensation from miss sold insurance policies dating back over a decade).

However there is a complexity: Something which is known as the “six year time limit”

Six Year Time Limit?

This is basically the statutory time limit for which banks and other financial corporations have to keep a record of payment protection insurance policies.

If your claim is dating back to longer than six years ago this does not necessarily mean that you will have issues with making a PPI claim, what it means is that it is possible that the company that miss sold the PPI to you in the first place has no record of your PPI policy.

What Happens If They Have No Record Of My PPI Policy?

There are ways around this, the most obvious way is to check if you have any of the original paperwork that goes with your original PPI policy, if not, this is not necessarily an issue, there may be other ways to prove you paid into a PPI plan, this is more a matter for expert PPI solicitors to look into rather than something to make speculative estimations on however.

Rest assured: people have successfully reclaimed PPI on policies that go back much longer than six years, so as stated above this does not necessarily pose a threat to a potential claim at all.

How About If I Have My Original Paperwork?

If you have your original paperwork there is no problem, you have supporting evidence to prove you paid into a PPI policy and thus you have a solid foundation to find out whether or not you have a valid PPI claim.

Many PPI Claims companies can help you claim PPI even if you don’t have the original paperwork, one example of such a company is: this company who are known to be actual “PPI solicitors” which gives them additional abilities to facilitate your claim, however there are also other PPI companies’ that can handle your PPI rebates, a simple search will reveal a number of companies that can handle your case for you.

You also have the option to handle the claim by yourself and save having to pay any commissions out to claims management firms, however this can be a lengthy process and may require more than just patience, (many PPI claims end up having to be submitted to the financial ombudsman service and pursued further should the banks try to reject a claim.) However, on the balance it is possible also to claim PPI without the use of a solicitor or a claims management company.

The PPI Scandal is one of the largest scale mis-selling scandals of all time, there are funds allocated to compensate members of the public who have experienced this kind of mis-selling so it is advisable to at least make enquiries if you have a suspicion that you have had PPI on either a loan, credit card, mortgage, or other financial arrangement.

Final Tip: If you do intend to claim compensation it is sensible to claim as soon as possible due to the fact that there is a deadline being implemented by the FCA meaning that any outstanding PPI claims will need to be submitted before the deadline of August 29th 2019, so submit your case as soon as possible.

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