An increasing number of banks are offering bank loans with varying interest rates and repayment options. A bank loan is an amount that is borrowed to be repaid with an interest rate according to an agreed term. The kind of bank loan that a borrower chooses will determine how much he/she can borrow and for how long. Apart from secured and unsecured bank loans, banks also have a number of options like car loans, home improvement loans, graduate loans and business loans etc. Yourbankloan.co.uk has a number of options for bank loans.

When a borrower opts for a bank loan he /she will have to pay monthly installments which will comprise of the loan amount and interest. The interest rate will either be fixed rate where the borrower pays the same rate throughout the duration of the repayment period or a variable rate in case of long term loans when the rates keep changing. Generally banks don’t give loans to customers who have adverse credit records. If a borrower has encountered credit problems or has been struggling to get a loan from many places, it is unlikely that he will secure a bank loan.

Secured bank loan: When a borrower avails a secured bank loan he/she puts up property as collateral for the loan amount. The interest rates and repayment terms for a secured bank loan will be relatively comfortable for the borrower as the capital is secured against collateral. They can be availed for larger loan amounts and can be used for any purpose ranging from home improvements, car purchase or educational purposes.

Unsecured bank loan: With an unsecured bank loan the borrower need not offer any collateral. But these loans come with higher rates and strict repayment terms. Offering new financial horizons to financially challenged individuals an unsecured bank loan comes with zero risk for the borrower. Yourbankloan.co.uk assures the most competitive rates for secured and unsecured bank loans.

While availing a bank loan, the borrower needs to keep in mind the following factors:

Loan amount: The borrower needs to realistically assess his income and needs to determine a loan amount which he/she can effectively pay back.

Type of loan: The type of bank loan that you choose will determine the interest rates and the repayment terms that accompany your bank loan. Borrowers can choose between secured and unsecured options depending on their circumstances.

Collateral: When a borrower opts for a secured bank loan, he/she will have to place some collateral. When the borrower places a high value collateral the loan application is reviewed and approved quickly.

While deciding on the best bank loan it is advisable to compare services and communicate with the bank in case of doubts before making a choice. Although a bank loan might turn out to be a slightly expensive option, it offers the borrower an opportunity to avail expert advice and choose options suited for the his/her need.

Lack of fund in business is simply not affordable. Your business can result in a black out without insufficient fund. To avoid this situation, you must avail a secured business loan which will not only give your business a financial back up but also help it cope up with uncertain financial crisis.

In order to avail a secured business loan, you should first of all determine the purpose of the loan, and the amount that you need. Prepare a detailed plan for spending the loan. This plan is very important because it will decide your loan amount, rate of interest, repayments etc. In this plan you also need to include your profit and loss account. Once you are over with these preparations then apply for the required amount to lender.

The most convenient and easy method to apply for secured business loan is to apply online. Internet provides a lot of details about various kinds of lenders available in the market. These online lenders usually have loan rates with a little difference from one another. This is the result is tough competition among different online lenders. So, you get a chance to benefit from these lenders by comparing different loan rates and the select the best among them suitable to you.

Secured business loans are available to two types of borrowers. The first is those who are already in a process of running a business and are making profit from it. The second category is for those who are planning to start an enterprise of their own and need fund to execute their plan. In both the cases you need to put a security in order to avail the loan. The security can be anything from your house, car, jewelry to any valuable document. While putting the collateral, you should keep in mind that the greater will be the value of your property, the greater will be the chances of getting a higher amount of loan.

You can get a secured business loan with an amount ranging from £5000 to £75,000 or even more. The interest rate will depend upon the amount of loan you borrow. You will an easy and flexible repayment of 3-25 years with a low monthly installment.

A secured business loan will fulfill all your needs that you require for your business. If you succeed in finding the right loan program, you will easily get a chance to you’re your business reach heights.

An APR means Annual Percentage Rate is a numerical figure usually in single digit which is used to express the total interest, i.e. amount over and above the principal amount, which is charged by the lender as a charge for offering lending service. It is also called the cost of loan. It is the yearly amount a consumer must pay for acquiring a loan or other type of credit. Lending law requires that all lender clearly disclose the APR in all promotional material through which lenders seek clients.

This loan and cost disclosure is called the Truth in Lending Act. It was legislated in 1968 as a part of consumer protection act. Subsequently, it was revised and made simplified. The basic goal of this act was to express clearly to consumer the cost of availing loan so that the prospective borrower can compare and go for a loan which is most suitable for him.

However, though lenders disclose APR only for the sake of fulfilling a legal formality. At time the method of expressing APR makes it difficult for consumers to find out actual cost.

Though APRs is used to compare loans and determine the least expensive credit products, APR is also confusing at time. Because each lender may calculate APRs in a different way. Therefore, a loan with a lower APR may not necessarily be less costly than one with a higher APR. Lenders have some flexibility when it comes to calculating APRs. Along with fulfilling the requirements of law, they can underestimate the annual percentage rate of a loan by as much as 1/8 of a percentage point. For loans that are considered irregular, lenders may underestimate APRs by as much as 1/4 of a percentage point.

At time, various hidden fees are included in an APR to make APR more confusing. Such fees vary and depend upon the loan, credit product obtained. Points; prepaid interest; private mortgage insurance; and fees for loan processing, document preparation, and underwriting are commonly included in an APR. Sometimes loan application fees and credit-life insurance costs are included as well.

Cheap APR Loan

As the acronym APR itself describes, cheap APR means cheap or low annual percentage rate or lower annual cost to for the borrower. This low APR translates into lower installments for the borrower. Usually, lenders advertise their low APR schemes, which can be useful for you but be careful while choosing any lender because at time rates may be deceptive.

Cheap loan lenders calculate their APR through a system called risk based pricing. This means that they assess each individual's circumstances and credit record before deciding what rate to be offered. If the profile of the borrower is excellent and has a record of timely payments, he will be offered a low APR.

However, you must see if any hidden cost is included in the cheap loan which is not being reflected or is not in your knowledge. One such example is prepayment penalty, which means if you clear off your debt before the decided period; lenders charge a penalty in terms of certain percentage of the loan amount.

However, there are other factors to consider when making a loan application, such as acceptance criteria, price for risk and redemption penalties. It doesn't matter how cheap a loan is if your application is declined because you don't fit the lender's criteria.

Is a low APR always cheaper

‘NO’, you must compare the cost of different loan offers before deciding any particular offer. Just because a loan has a low APR or lower monthly payments it doesn't mean that it's the cheapest or best loan for you.

Before taking final decision, consider few common aspects, which are:

If a lower APR loan comes with pre payment penalty, it may not actually be a lower APR loan. So weigh up your options as you may find it better to opt for a slightly higher APR with no early settlement charge, than a lower APR with a penalty for paying off the loan before the end of the term.

Though any debt is worrisome for any person but credit card debts are considered as worst. This is because credit cards come at very higher interest rates and if timely payment is not made the companies charge even higher interest and penalties. So credit card debts accumulate fast and become unbearable. Hence the need for credit card debt management for a larger section of population is gaining importance.

As has been mentions credit cards come at very high interest rate. When credit card debts pile-up, this high interest rate is what the credit card holder is always worrying about. All he wants is to get rid of the high interest rate debts. But often a credit card holder is unable to solve the problem on his own. And therefore credit card debt management service providers come in the picture. These companies make all efforts to rescue out of debts. They have many tools and experience for lessening your credit card burden.

Credit card debt management service providers can be approached on their websites and after you applied for enrolling your name for a fee these companies contact you immediately for taking stock of your debts. First of all they calculate debts including interest and arrive at an amount that you would be paying in coming years. Then they assess your present financial repaying capacity. Credit card debt management companies then approach your creditor with a repayment plan. The plan includes a request for reducing interest rate. But if you are in a better position of paying debts in full, then a negotiation for reduced debt amount can take place. Usually these measures work well as creditors are more interested in getting back the amounts rather than suing the credit card holder who is their customer.

If these measures are insufficient in case of huge debts, then credit card debt management companies suggest you for taking a consolidation loan. A consolidation loan merges all credit card debts in one new loan of lower interest rate. You can pay off all high interest rate credit card debts immediately through consolidation loan which comes at lower interest rate when a security of the loan is provided to the new lender. Consolidation loan can easily be repaid in 5 to 25 years and in larger monthly installments.

After you have lessened the debt burden, make sure that you never fall in credit card debts again. Reduce the number of credit cards in use and instead use debit card for controlling spending habits. Make a budget and restrict your self to it so that you escape excessive spending of unnecessary items.

There may be more technique of managing credit card debts but ensure that you adopt them whole heartedly. While availing services of credit card debt management companies see that the company is experienced one and has skill for the job.

Small businesses are flourishing everywhere. You also are thinking of starting a small business so that you are no more dependent on a particular salaried job. Since you do not have enough funds at hand, you have decided to take a small business loan. Your bad credit however may be an impediment. This scenario is common to almost all the aspiring business people. Well, the remedy is in bad credit small business loans.

With the bad credit small business loans in your hands, you can utilize it for any business purpose like buying an office space, furniture, hotel, retail shops and even for clearing debts. Bad credit small business loans cover all business persons coming from different financial backgrounds. But the loan is especially designed for bad credit borrowers.

Bad credit is a big hindrance while asking for a loan. But business person with bad credit can easily take bad credit small business loans, especially if you have a property to secure the loan for the lender. Secured bad credit small business loans are provided on the basis of a property of business person that is put as collateral with the lender. The advantages of collateral are many. First and most important advantage is that on securing the loan, lenders do not look much into bad credit. This is because in case of payment default, the lender can recover the loan on selling the property. Secured bad credit small business loans have lower interest rates attached to it which goes a long way in strengthening the business. With lower interest rate business person reduces burden of paying higher monthly installments. Also secured bad credit small business loans come with greater amount in case you want to expand business. Moreover the repayment duration of secured bad credit small business loans is larger which enables in spreading installment amount to more months and reduces the monthly outgo. This means you can save money for other business usages.

Unsecured bad credit small business loans however require extensive credit checks and assurance to the lender that the loan will be safely paid back. Since there is no collateral involved in the loan offer, it is a risk free loan for the business. But lender needs to cut risks for himself. Lender will offer you an unsecured bad credit small business loan on seeing your repayment capability. Your surplus amount after paying for expenses and debts is considered as your real repayment capacity. So if you borrow an amount which can be comfortably repaid, lenders will readily give you an unsecured bad credit small business loan.

While applying for bad credit small business loans, take note that the more there are possibilities of the business generating a substantial income, the easier it is to take the loan. So make sure that your business earns sufficient income. Some businesses take time to establish themselves. In that case the business person must have adequate finance for repaying installments till the business starts earning sufficiently.

Compare as many bad credit small business loans providers as possible on internet. Compare their individual interest rates and terms-conditions for selecting the suitable lenders. Bad credit small business loans surely are available in an easy and hassle free manner. Pay off the loan installments regularly to escape debts and this way you can improve your credit score as well.

The first step to finding the right home for your needs is to work out how much money you can afford to spend on the property. Although you want to get a good property, you also want it to be affordable, and knowing what you can spend will help you to find the right home at the right price. If you are unsure about how much you can afford to spend on your mortgage loan, then here is some advice to help you work it out.

How much do you earn?

Your mortgage loan will be secured against your new property, but to work out how much you can borrow the lender will look at your earnings. They do not just want to know how much money you have now, but what you are likely to earn over the next 20 or 30 years. Mortgage loans last a long time, and so the lender has to see that you will be able to pay off the loan both now and in ten years’ time. The more you earn and the more stable your job, the better the chances of you getting a larger mortgage.

Credit history

Another important factor that determines how much you can afford is your credit history. The lender will do a credit check to make sure that you are a responsible borrower, and that you don’t have any past financial problems. Before applying for a mortgage loan, you should check that your credit report is in order and that there are no mistakes. A good credit history will allow you to borrow more.

Timescale

How much you can afford to borrow will allow depend on how long you want the mortgage loan term to be. If you want a long mortgage term of 25 years, then your monthly payments will be much lower, but you will pay back a lot more in interest. However, getting a mortgage loan term of 15 years will mean higher payments, but less overall costs from interest. Also, if you are only planning to stay in a property for a few years, it may not be worth getting a mortgage. Changing properties will involve many costs, and so it might be more cost effective to rent until you can afford a property that you will stay in for longer.

Be honest with yourself

As well as the lender deciding how much you can afford, you need to be honest with yourself about your financial capabilities. Just because a lender will loan you a certain amount of money does not mean you can really afford it. If you cut back on everything else then you might be able to afford the mortgage. However, if your lifestyle is more extravagant, then getting a large mortgage may not be a good idea. Try and be conservative, and borrow an amount that you can afford easily. This will make the mortgage loan less risky and allow you to make payments even during tough times. However much you decide to borrow make sure you can afford the payments, because you never want to be in a situation where your house is taken away from you because you cannot pay. Sacrifice that extra bedroom for financial security and you will benefit in the long-term.

A steady life is always a dream. Honestly of course, a steady life with no hurdles does not add to its charms. Man by nature is adventurous. He likes to take everything in his stride. Possibly, he is stuck with a problem once in a lifetime. However dynamic you are, you face an emergency, which brings your life to a standstill.
Man fulfilling his social and personal obligations is caught in a problem which most of the time could be financial. He may be caught up with a pending bill short of funds. Quick unsecured loans are the perfect solution.
Man though adventurous, are likely to withhold his precious belonging which includes his house, where he has fond memories of his family. They would not like put up their house as collateral. When faced by an emergency, he feels his property at risk. However, you need not worry, quick unsecured loan do not require collateral, which may include your home or a real estate. This means you need not take risk putting your home as collateral.
Since quick unsecured loans, do not require collateral. It is a perfect solution even for non- homeowners and tenants. If you have a home of your own, you can easily abstain from risking it as it may lead to its confiscation in case of non-repayment.
In absence of collateral, the loan amount is smaller and restricted to about ₤25000. The interest rate are steeper compared to secured loans. It ranges between 7% to 30%.A good credit record though may bring down the interest rates by a few points. The repayment term is also shorter starting from 6 months to 10 years.
Though the above feature may seem to you a bit expensive. A good credit record makes it quite negotiable. The highlight of quick unsecured loans is its absence of collateral, which saves a lot of time in the paper work involved in the valuation of assets and other formalities. Moreover, it is risk free.
Quick unsecured loans are the best bet. It is easily and quickly approved. Its flexibility is its asset. A good credit record can easily get you a longer loan amount, and easier repayment options. The best way to get the perfect deal is to go on the web where numerous lenders offer their quotes. You can easily compare among them and settle down for the best. An expert option too can be handy.

“Low credit”! Does this mean slamming of doors on your face. Obviously not, gone are the days, when you were considered a high risk borrower. You had to literally prevent yourself from asking for financial help. However, if you have a low credit and an emergency financial situation meant, you are in for a big trouble. You were left no option then to repent on your mistakes that led you into low credit. Increasing competition has led to a boom in lenders providing loans for people with low credit.
Before applying for a loan, the lender awards you a credit grade; it is an instrument to judge your credit in the financial market. Low credit means a credit grade E+ to E- which gives you a credit score of 500- 550. This credit score means possible bankruptcy. In the financial market, you are considered bankrupt and a high risk borrower. Nevertheless, you are welcome to the world of loans for people with low credit.
A credit score of 500 to 550 means bankruptcy, which lasts for seven years in your credit record. Possibly your past mistakes would have led you into trouble. This may have included arrears, default, and bankruptcy etc. But this does not mean you are not eligible for loans. A poor credit certainly, means a bad credit record. But loans for people with low credit give you a chance to unwind the mistakes what you have committed.
The lender of course, would not be at risk even though you have a bad credit score. They invariably charge you a higher interest rate that would possibly negate the risk of possible default. The loan amount is relatively smaller as compared to various other loans. This is inexplicably true considering your credit record.
The loan term is also shorter with lesser flexible options. Still considering the fact, that you carry a poor credit record. Loans for people with poor credit lend you a chance to escape this really catchy solution.
Obviously higher interest rate with lower loan amount on loans for people with poor credit means you get a pat on your pocket. But a sincere search on the web provides you with numerous options where a variety of lenders are ready to welcome you. Going online means you can shortlist your choice which includes infinite numerous of loan companies, loan terms and quotations. An expert opinion can be handy who can suggest you the best choice. Moreover, they can help you pave way for bailing yourself out from this financial trouble.
Loans for people with poor credit is indeed a mature way of getting your self out from a financial upheaval. They help you meet your financial obligation wisely and without much risk involved.

It's the end of the month, you're almost out of money (sounds familiar?) and suddenly your car stops driving. But you need a car to get to your work. But the problem is that you might not have enough money available in such a short time to buy a new car. So there is only one way out for you to pay a new car: a money loan.
But how do you know which money loan is suitable for you. Well in the Netherlands we have a lot of different sorts of money loans. And in this article I'm going to describe a few of them and I will use the dutch names for those money loans because that's the most practical thing for you if you live in the Netherlands and English is your primary language.
Doorlopende lening, this is a money loan for incidental expenditure like a broken car. Together with your bank you agree the terms of payback. Each month you pay a standard amount of money, plus interest to relay your money loan. But you can also pay the total amount of money at the end of the duration of your loan. When the agreed duration of the loan is over you can ask for a lengthening of the duration of your loan.
In the Netherlands you also have a rentekrediet, a rentekrediet is almost the same as a doorlopende lening but you only pay interest during a part of your loan duration. You don't pay any monthly amounts of money to the bank. After a while, that you agreed, your loan automatically becomes a doorlopende lening. This form of money loan is very useful if you don't have money but foresee that you'll have more money in the near future.
Hypothecair krediet, in plain English this is called a mortgage. A hypothecair krediet is usually used when you want to buy a house. A hypothecair krediet is also one of the biggest forms of money loans available in the Netherlands because of the big amounts of money. But a hypothecair krediet also has the lowest interest available! You pay your hypothecair krediet within a period that you signed with your bank, you pay monthly an amount of money of the loan and an amount of interest. Mostly you may not have more than two hypothecair krediet at once.
You also take a persoonlijke lening, a persoonlijke lening is a loan that you pay within an agreed period of time, this period of time cannot be shortened or lengthened.
Well these are the most common forms of money loans in the Netherlands, have a good thought about it before you agree to a money loan, it's about a lot of money. And always find a bank that fits to you, so you won't be surprised later on!

Foreclosure occurs when the homeowner falls behind in monthly mortgage payments and defaults on the loan. The lender repossesses or sells the home in order to satisfy the debt.
The best and most sensible way to avoid falling into default and having the lender foreclose on you is to make timely mortgage payments. Several steps can be taken to ensure your capability to pay your mortgage on time each month.
Strategies to employ to safeguard against default
Purchase only what you can afford.
Shop around for the best possible mortgage term and rates.
Steer clear of non-traditional mortgage loans.
Live within your means.
Set up a financial budget and stick to it.
Set up a rainy day fund for mortgage payments in case of a financial set back.
Prepare for the unexpected and plan financial changes accordingly.
Don’t count on tomorrow’s income. Realize that your income may stagnate while your debts increase.
What to do if a foreclosure occurs
Circumstances change constantly. The financial climate fluctuates almost as frequently as the weather. Unexpected medical costs, a death in the family, the loss of a job- all of these can negatively impact on the financial situation of a homeowner. Therefore, the worst possible event, a foreclosure, might occur.
A foreclosure will have a negative impact on your credit rating and have long reaching impact into your future borrowing ability. Avoid foreclosure at all costs, even if it means giving your home to the lender. Either way you lose your home, but with the second, you maintain some credit worthiness.
Borrow money from friends and family to catch up on your mortgage payments. Only do this if you intend to fully pay them back and believe that you will have the means to do so. Agree to a realistic date for repayment of the personal loan.
Contact a housing counseling agency that has been approved by HUD. In general, these agencies provide free counseling. Additionally, they might be able to offer government services or programs that can help you out of this situation. In some locations, they might be able to direct you to local community organizations that give assistance to homeowners in need.
Contact your lender immediately and respond to any correspondence that you have received from them. Explain your current financial situation, the immediate outlook of your finances, and your need to rearrange your payment schedule. Bring supporting documents with you when you speak to your lender. This will help to show your sincerity.
Lenders may often attempt to remedy the situation with a little creative financing rather than go through the process of a foreclosure. After all, the lender simply wants to have the loan repaid.
Possible remedies to the foreclosure
A mortgage modification happens when the lender changes the term of the loan by adding additional months or years to the mortgage. In turn, this will lower the monthly payments and prevent a foreclosure. Again, the borrower must be able to show evidence that he will be able to meet the new payments.
A special forbearance is a process in which the lender arranges a repayment plan that works within the borrower’s current financial status. This might lead to a suspension of the monthly payments for a short time or at least a reduction in the expected amount. It is extremely important that financial documentation be provided that indicate the viability of this plan through the homeowner’s ability to meet the new payment schedule.
A partial claim involves a one-time offer from the FHA-insurance fund that allows a one-time payment to get the homeowner’s mortgage current. The homeowner will need to sign a promissory note in which a promise to repay the loan is made. A lien is placed upon the home for this additional amount of money. Two conditions exist- the borrower must be able to begin full mortgage payments and must have been at least 4 months delinquent in payments but less than 12 months delinquent.
A pre-foreclosure would allow the homeowner to sell the house for less than what is owed. However, the sale is not listed as a foreclosure, so it does not hurt the homeowner’s credit rating.
A deed-in-lieu of foreclosure requires the homeowner to give the home to the lender. Although the homeowner loses the property, he maintains some of his credit rating. The benefit will be realized later should the individual decide to apply for another loan.

It takes longer than expected time to sell your property in order to have enough funds at hand for buying a new property. By the time the old one is sold, chances are that you have lost the new property a property grabber. Obviously you are craving for instant finance. Bridging loans UK is one product that is made especially for such urgencies.
Bridging loans UK is a short term arrangement of much needed finance for the loan seeker. This loan bridges the gap, often a short one, between the time taken for selling old property and buying new property. As soon as the old property is sold the borrower pays off the loan with the help of the amount. One attractive and useful feature of bridging loans UK is fast approval. The loan is in the borrower’s account within 24 hours after applying for it.
Since one usually is able to sell old property soon, bridging loans UK is a short term loan. Borrowers pay off the loan in few weeks or months. Being of such short duration, lenders charge higher interest rate on bridging loans UK. Higher interest rate is therefore despite the fact that the loan is a secured one.
For taking bridging loans UK, borrowers should provide any of their property as collateral to the lenders. In most of the cases the very property the borrower intends to sell is offered as collateral. The loan amount depends on the equity in collateral. For a greater loan the borrower would like to assess the equity in the loan. Higher equity surely enables in availing greater loan if need be so.
We give you tips for taking a low cost bridging loan UK. Higher interest rate can be countered on two fronts. If the borrowed amount is kept below the equity in collateral the interest rate may be considered for a reduction by the lender. This means you should arrange for some cash for buying the property so that you borrow minimum amount. At the same time while searching for the right lender, compare bridging loan UK offers of different lenders for their interest rates as each one of them has own rate in cut-throat loan market. The comparison allows you to settle for the lowest possible rate of interest. But higher interest rate does not give many pains. The borrowers pay only interest during the repayment period and no monthly installments are involved. This lowers the burden of interest rate.
Bad credit is not at all a problem while taking bridging loans UK. Since the loan is well secured by the very property you intend to sell or by any other property, there is no big need for making a credit check. The lender can recover loaned amount by selling borrower’s property in case of a payment default.
For reducing the loan availing cast further, better apply online. Online lenders do not take any fee on loan processing and offer vital information free of cost. Lot of money is saved this way. The loan approval also comes fast on applying online.
For buying a new property till the time you sell the old one, bridging loans UK is best suited loan product. Make sure that the loan is paid back in time as higher interest rate of the loan can prove to be too much.

Think that car payment would be a little more affordable if you could just spread those payments over another year or two?

If you do, you're not alone. Eighty-nine percent of new car buyers are financing their vehicles for more than four years, and 55 percent select loans that extend more than five years, according to a 2006 study commissioned by the Consumer Bankers Association and conducted by BenchMark Consulting International.

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"Cars are made better, they are more expensive and people are keeping them longer," says Carter Myers, president of Carter Myers Automotive, a group of Virginia-based dealerships, past chairman of the National Automobile Dealers Association and chairman of Automotive Retailing Today, an industry association of manufacturers and dealers.

Given those circumstances, "it's natural" that the loan cycle would lengthen, he says.

With used cars, 82 percent of buyers finance for more than four years, and 40 percent opt for payments to run more than five years, according to the study.

A good idea?
So are longer loans good for the consumer?

"It has allowed consumers to buy more car than they had in the past," says Marguerite Watanabe, auto finance practice manager for BenchMark, a management consulting firm.

Twenty years ago, when consumers shopped for a car, they focused on the cost of the car, she says. Today, they shop payments. "The monthly payment is now what's driving the purchase."

Whether it's a good move for an individual consumer may depend on how he or she handles the loan, says Philip Reed, consumer service advice editor for Edmunds.com.

Longer payoffs don't offer the buyer a lot of positives, Reed says. Virtually the only upside is that "you can afford a car you couldn't otherwise afford," he says.

A long-term loan delays ownership, even as the car is decreasing in value, Reed says. Typically, cars drop in value about 20 percent when the first owner drives them off the lot. Between years two and five, they plateau, losing value gradually. After year five, value "begins dropping off more steeply" for most cars, he says.

There are ways for consumers to benefit from longer-loan terms, Reed says.

He recently took out a five-year loan on a new car with the goal of paying extra every month and getting the note paid in three years. The longer term gives him the flexibility of a lower minimum payment and he gets to decide just how much more money he puts toward the payment every month.

"If you're fairly disciplined, you can make larger payments and pay it off early," Reed says.

To calculate whether a longer term loan is the right move for you (and your car), you want to look at how you use a car, how often you trade, plus the resale record of the specific make and model. In addition, just how much money do you realistically plan to put toward a car payment every month?

The typical long-term loan buyer is "more likely someone who expects to drive the car for a long time," says Paul Taylor, chief economist for the National Association of Automobile Dealers. It's also more typical for select or "cult" cars that either appreciate or don't lose value in the usual manner.

For the regular buyer and the regular car, a long-term loan is "out of sync with the typical ownership cycle," Taylor says. People tend to keep a vehicle about 4.8 to 5.5 years, he says. Typically, they sell it about three months before the loan is paid, he says.

Some consumers may also be using longer loan terms to get into cars they might not be able to otherwise afford. If you've got your heart set on a luxury sedan and, after the down payment, need to finance $30,000, a three-year loan at 3 percent will cost you $872 per month. If you could pay it over seven years at 6 percent, the payment drops to $497. But don't forget, it also adds $4,340 (in interest) to the cost of the car.

Always think long term. If a longer finance cycle means that you'll also be keeping the car during the period when you can also expect more expensive repairs or service visits, or past the point when it would have substantial trade-in value, then that lower monthly payment may end up costing more than you bargained.

Real-life math
Being able to drive that dream car involves more than just making the monthly payment. You want to make a smart decision on both the car and the financing.

First, look at the basic costs. Just how much would the monthly payment differ if you financed your car over five or six years instead of two, three or four?

Dealers can typically offer from zero percent to 6 percent, depending on your credit and the length of the loan, says Taylor. Typically, the longer the loan, the higher the rate.

"Obviously, if you're going to pay it off over a longer period of time, it will cost you more," says Deanna Sclar, author of "Buying a Car for Dummies." So look at what those dollars could have earned you elsewhere. If you hadn't put the money into the car, and instead parked it in your investment or savings account, what would that have earned?

"You have to look at what your money can buy you," Sclar says.

The smart rule of thumb? Spend no more than 20 percent of household income on auto payments, says Reed. By that measure, most people really can't afford the cars they're driving, he says.

Next, look at how you want to use the car and for how long. Many experts recommend setting the loan term to coincide with when you probably want to trade the vehicle (and even giving yourself a few payment-free months to assemble a down payment.) If you typically like to trade a car every three or four years, how would a five- or six-year loan change your plans?

"Certainly a longer loan does make it more difficult to trade early," says Myers.

How will having an older car impact your next trade-in deal? Typically, a well-maintained six-year-old model will fetch considerably less than a three-year-old version of the same vehicle.

Another point to keep in mind: Sometimes predicting the future worth of an auto can be a gamble. Future value is based on predicted demand, and what is in demand can change very quickly. "You can't always figure that out," says Reed.

Case in point: sport utility vehicles. While they may seem to make up every other vehicle on the road, demand for SUVs has dropped since the price of gas started creeping toward and past $3 a gallon, says Reed. As a result, the trade-in and resale value once predicted for many models several years ago has changed, he says.

What will it cost you?
You also want to look at the repair costs that you'll rack up during those extra years. Based on what you know about the make and model, what kind of repair bills should you expect during the additional years you'll have the car? Can you afford those bills in addition to the monthly payments?

One good thing: Warranties on cars have gotten longer, too, says Myers.

Check out any service contract or extended warranty the seller might offer to see if it would cover or offset any of the garage bills you could expect during those extra few years of ownership.

Then just do the math. When you figure out how much extra you stand to pay in interest, try to also tally up if or how the value of the car would change if you keep it a few more years. If you plan on using the car as a trade-in, what will those extra few years in age cost you when you go to buy your next car? And what, if anything, would you be earning with any of that extra money you might be paying?

From a more practical standpoint, what choices do you have if your life changes (moves, marriage, career change, baby, new commute, etc.), and the old car is no longer the right car?

Try to keep your options open. If you put at least 20 percent down, you've covered that first year of steep depreciation and should never be upside down in your loan and owe more than the car is actually worth, says Reed (which can make it difficult to sell or trade the vehicle). In some situations, you may even want to consider refinancing, he says.

Don't forget to add in the boredom factor. Sure, you love the car now, but how will you feel about it when it's three years old and you're only halfway through the payment book?

Most of all, realize that this vehicle is one of many that you will own, and it's something that will affect your finances for the period of time you own it, so plan accordingly.

Says Reed, "It's a good idea for people to look at auto expenses as a cycle and not a one-time shot."

Long-term auto financing is gaining traction with consumers hit hard by rising interest rates and out-of-control gas prices. More than half of new-car loans were for five, six, even seven years last year, according to the Consumer Bankers Association. That was up from 22 percent at the start of the decade.

ADVERTISEMENT
At first glance, longer loans might seem to make sense. Right now, interest rates on five- and six-year car loans are, if anything, lower than traditional three-year ones. (You can compare auto loans in your area by using the Bankrate auto loan tools.)

Longer-term loans can have a big impact on cash flow. Monthly payments on a five-year $25,000 auto loan with a 6.5 percent interest rate are about $489. That compares with $766 per month for a three-year loan at the same rate. Going to six years will bring payments down to $420. That can be a huge difference to someone on a tight budget.

Unfortunately, there's no free lunch. Although your monthly outlay is lower, you'll pay much more interest over the life of the loan -- $5,258 on a six-year note -- more than twice as much as on a three-year contract.

How you get upside down
Those who opt for long-term financing, especially in conjunction with automakers' little- or no-money-down deals, may also face a nasty surprise if they trade in their cars before they are fully paid for.

Since they are paying mostly interest, rather than principal, each month, and because new cars and light trucks depreciate most in the first two or three years, their owners are likely to find that the trade-in value of their vehicles after three or four years is less -- often much less -- than what they owe on them. In the terminology of the car trade, the loan is "upside down." Edmunds.com, the online auto-buying guide, estimates that 40 percent of consumer car loans are upside down, by an average of $2,200.

A similar shock may await those whose cars are stolen or totaled. When a vehicle securing a loan is deemed worthless, the lender will rightly demand immediate payment of the full outstanding balance.
Unfortunately, collision and comprehensive insurance policies will generally reimburse an owner for no more than a car's book value. If that's less than the amount owed on the loan, the owner is responsible for the difference.

Sometimes individuals with upside down loans can find lenders willing to package the unpaid balance on their old vehicles with the financing of new ones. In these cases, the buyer of a new car is usually taking out a car loan greater than the purchase price of the vehicle. That loan is seriously upside down from day one. Such buyers are also apt to choose long-term loans to keep payments low, which compounds their financial problems, contributing to a cycle of upside-down financing that is difficult to escape from.


Avoid getting upside down
Longer-term auto loans have lower monthly payments, but they can keep you upside down -- owing more than the car is worth -- on the loan for a longer time, too. These tips will help you avoid, or get out of, being upside down on your loan.

9 tips to help manage your car loan:

1. Make a down payment of at least 20 percent of the vehicle's cost.
2. Do not finance the taxes and fees.
3. Take out the shortest-term loan you can afford.
4. Don't take out a loan that's longer than you intend to keep the car.
5. Consider gap insurance.
6. Buy a used car instead.
7. Keep the car until its value matches or exceeds the balance on the loan.
8. Buy cheap.
9. Sell your car yourself.

1. Make a down payment of at least 20 percent of the vehicle's cost.
A down payment of 20 percent is enough to cover taxes and a large portion of the first-year depreciation. Given initial depreciation, your loan might be upside down for a few months, but when it comes time to get a new car, you'll have enough equity in it to make a nice down payment.

2. Do not finance the taxes and fees.
Including taxes and fees will merely keep your loan upside down longer.

3. Take out the shortest-term loan you can afford.
You'll pay more each month, but a bigger portion of each payment will go toward paying down principal with a shorter loan term. Hence, you'll build equity faster.

If you must finance for more than five years to afford the payments, you probably can't afford the car.

4. Don't take a loan for longer than you intend to keep the car.
Trading in a vehicle with payments remaining means that you must make up the difference in cash, which might force you to make a smaller down payment or roll the old loan into the new one, which could easily lead you into a cycle of upside down loans.

5. Consider gap insurance.
Most lenders offer the option to make up the difference between a car's insured value and the loan payoff balance if the vehicle is totaled or stolen. Gap insurance will increase your monthly payment, but it provides peace of mind and could save you a bundle.

6. Buy a used car instead.
The previous owner will have absorbed the depreciation, which means that your car will hold its value better over the life of the loan.

Already upside down?
If your existing car loan is upside down, putting it right-side up isn't easy, but it's worth the effort.

7. Keep the car until its value matches or exceeds the balance on the loan.
Driving a clunker for a year or two could save you from a long-term financial predicament.

8. Buy cheap.
If you absolutely must trade in a car with an outstanding balance, put your pride aside and get the least expensive new or used replacement that will meet your basic needs. Get the shortest loan term (and the highest monthly payments that you can afford). Once that loan is paid off, you should have enough equity in the car to put a sizable down payment on the car that you really want.

9. Sell your car yourself.
It's more work, but you're likely to get more from a private buyer than a dealer will allow you on a trade in. The difference may be enough to wipe out the remaining loan balance, giving you a fresh start.

4 keys to post-bankruptcy borrowing

1. Clarifying your priorities: While it can be tempting to try to buy a new car, in my opinion the priority is: reliable transportation you can comfortably afford. I suspect you're on board with this idea, Tony. Therefore, consider a reliable used car. After all, why buy something that depreciates 20 percent when you drive it off the lot?

2. Identifying the right kind of deal: First, consult a reliable auto rating publication, such as Consumer Reports, and look for vehicles in the $10,000 to $15,000 price range. You're obviously driving your car a lot, and you need something that can handle the mileage. Also, for everyone else reading this column, I wouldn't consider going much cheaper. The reason is that it takes a lot of time and energy and money to go through the dying throes of one car and to purchase another. You can save yourself a lot of expense and hassle if you buy the right $10,000 car and drive it for six years than if you buy two $5,000 cars and drive each for three years.

Just to be explicit, if you buy a $10,000 car and get a standard four-year loan at a rate of 10 percent to 15 percent, that comes to a monthly car payment of $250 to $280. This is the kind of scenario for which you need to be prepared. Bankrate's auto loan calculator can help you figure the exact payment.

3. Re-establishing your credit: Prior to looking for a financing deal on a car, you MUST have a secured or unsecured credit card and some payment history. Banks provide unsecured cards with limits determined by your credit score. If you can get one of these, it will come with an exorbitant interest rate. If you can't get an unsecured card, banks will provide a secured credit card in exchange for a deposit. That is, if you deposit $500 in an account they'll give you a card with a $500 limit -- and an exorbitant interest rate. These might seem like bad deals, but if you don't spend much money and you pay your balances each month, it becomes a very good deal. Why? Because a good payment history makes your credit score climb.

You want to log at least six months of paying your monthly balances on your cards before attempting to make a major purchase that will require financing. Tony, your credit score may have improved slightly because you continue to pay your mortgage, but if you establish a new credit line and keep it, your score will increase even more. This will save you money on your future car loan because you will be eligible for a much better rate.

4. Be diligent in your search: Open the phone book and make a list of every dealer, then contact each one and ask to speak with the finance department. Let them know that you are a homeowner, you pay your mortgages on time and you have your bankruptcy discharge notification, then ask them if they will finance you. If they say yes, ask them what rates are typical for someone in your situation. DO NOT allow them to look at your credit until you get a straight answer. You do not want any credit inquires until you are confident you can obtain a loan.

You must be willing to make 30 to 50 calls (and possibly to visit several dealerships in person) to get the best deal. Do not let the dealer tell you things like "because you filed bankruptcy, this is the best you can get." Absolutely untrue. I know someone who recently bought a used car for $5,000 less than the asking price of $15,000. Yes, he had decent credit, but he also found a situation where the dealer needed to get the car off the lot. These deals exist.

Remember, patience is a virtue, but persistence to the point of success is a blessing.

Justin Harelik is a practicing attorney in Los Angeles. To ask a question of the Bankruptcy Adviser, go to the "Ask the Experts" page and select "bankruptcy" as the topic.

No good deed goes unpunished, or so the saying goes. You face painful tax consequences if you mishandle a loan to a relative.

Say your daughter wants to buy a condo. You loan her $500,000, payable in five years. And you don't charge her any interest.

"The IRS will impute interest on such loans," said Albert Ellentuck, an attorney with King & Nordlinger in Arlington, Va.

Imputed interest will be set at applicable federal rates, or AFRs, posted monthly at irs.gov.

Currently, the AFR on loans from three to nine years is about 5%. So you would have imputed annual interest of $25,000. That's 5% of $500,000.

The tax treatment is costly. First, you would have to recognize $25,000 of interest income yearly. You would owe tax on that amount even though you collected no cash.

Second, the IRS will say you gave your daughter a $25,000 gift for each year of the loan -- because you didn't charge interest. You would have to file a gift tax return.

And you'd have to pay gift tax, if you have used up your $1 million lifetime gift tax exclusion. Even if you don't have to pay gift tax, such gifts will cut your estate tax exclusion.

In contrast, tax rules treat your daughter generously. If she uses your loan for an eligible purpose, like buying a home, she may be able to take a $25,000 deduction for the imputed interest. She can take that deduction even though she is not actually paying interest.

She can do that even if she uses the loan for certain other purposes, such as buying stock or starting a business. Generally, she can take a deduction if:

An actual interest payment would have been deductible.

She had actually paid interest.

Loans for other purposes might not generate a tax deduction. For instance, imputed interest on a loan for taking a vacation would not be deductible.

Can you avoid such tax pitfalls? It may be easier in the case of smaller loans with:

The $10,000 loophole. "If the money you loan to a relative doesn't exceed $10,000, no interest will be imputed," said Ellentuck. This loan can't be used for income-producing investments.

If the loan is for income-producing investments, interest would be imputed. And it would be taxable.

Say you loan your son $10,000 to buy a car. Even if you don't charge any interest, no interest will be imputed.

The $100,000 loophole. Loans up to $100,000 also can escape income tax. That's the case if the borrower's net investment income is no more than $1,000 each year.

Net investment income generally includes interest, dividends and short-term capital gains. From that total you subtract any investment interest you paid.

Say you loan your daughter $100,000 to buy that condo. Her net investment income is $800 this year. No income tax will be imputed. But next year your daughter's net investment income is $1,200. You will have to pay that amount or the AFR rate, whichever is lower.

If the AFR rate is 5%, that would be $5,000 on a $100,000 loan. So $1,200 in imputed income would be taxed to you that year.

The two exceptions described above are only for income tax purposes. Interest-free loans would still have gift tax consequences.

The same is true for below-market loans. If you loan money to your daughter at 2% when the AFR is 5%, the 3% gap will be imputed.

Income tax may be avoided by using either of those two loopholes, but gift tax will apply on the 3% gap.

The annual gift tax exclusion can help you avoid some problems. You can give up to $12,000 a year to each of any number of recipients, without incurring any gift tax. For married couples, the number is $24,000.

Only excess amounts over either annual cap count against the $1 million lifetime exclusion.

To avoid income and gift tax complications, your best strategy may be to charge your relatives the going interest rate and collect it regularly.

"All parties to the loan should sign a written agreement, spelling out terms of the loan," Ellentuck said. And those terms should be followed.

If you do not have a formal loan agreement and no interest has been paid, the IRS may say the transaction was a gift, not a loan. The entire amount could be called a gift, which could trigger a gift tax.

Coping Tactic

One tactic is to call the debt a demand loan rather than a term loan. A demand loan has no specific maturity date. And it is payable in full whenever the lender demands it. Yet a borrower may pay it off early, without a prepayment penalty.

This type of a loan is considered short term by the IRS. Short-term loans usually have lower interest rates than mid- and long-term loans. That may make it easier for your child to make the required payments.

If your child pays a market rate of interest, no income or gift tax will be imputed. You'll have taxable interest income, and your child may get to deduct interest that's paid.

General Program Requirements
The Farm Labor Housing Loan and Grant program provides capital financing for the development of housing for domestic farm laborers. Loans are made to farmers, associations of farmers, family farm corporations, Indian tribes, nonprofit organizations, public agencies, and associations of farmworkers. Typically, loan applicants are unable to obtain credit elsewhere, but in some instances, farmers able to get credit elsewhere may obtain loans at a rate of interest based on the cost of federal borrowing. Grants are made to farmworker associations, nonprofit organizations, Indian tribes, and public agencies. Funds may be used in urban areas for nearby farm labor. (This is the only Rural Housing Service rural service area exception.)

Program Description
The Farm Labor Housing Loan and Grant program provides capital financing for the development of housing for domestic farm laborers. Farm Labor Housing loans and grants are provided to buy, build, improve, or repair housing for farm laborers, including persons whose income in earned in aquaculture (fish and oyster farms) and those engaged in on-farm processing. Funds can be used to purchase a site or a leasehold interest in a site; to construct housing, day care facilities, or community rooms; to pay fees to purchase durable household furnishings; and to pay construction loan interest.

Loan Terms
Loans are for 33 years at 1% interest. Grants may cover up to 90% of development costs. The balance may be a Farm Labor Housing Program loan.

Application Process
Upon publication of a Notice of Funds Availability (NOFA), a two-stage application process is used. In stage one, applicants submit a pre-application, which is used to determine preliminary eligibility and feasibility. Pre-applications selected for further processing will be invited to submit an application. The pre-application consists of SF-424.2, "Application for Federal Assistance (For Construction)" and the information listed in exhibit A-1 or A-2 of Rural Development regulations, 1944-D, as applicable.

Program Contact Information
For more information about the Farm Labor Housing Loan and Grant program, visit:
http://www.rurdev.usda.gov/rhs/

To find out about availability of farm labor housing in your locality, contact your local Rural Development field office using this office locator tool:
http://www.rurdev.usda.gov/recd_map.html

Managing Agency
U.S. Department of Agriculture
http://www.usda.gov/

General Program Requirements
General requirements for this program include:

1. Must be a U.S. citizen,
2. Have a good credit and earnings record, net worth, and liquidity behind the project,
3. The project must be fully secured with the borrower's assets, including personal guarantees. Non-recourse credit is not available.
4. The potential applicant should have at least a 3 years history of owning or operating the fisheries project which will be the subject of your proposed application or a 3 year history owning or operating a comparable project.

Program Description
The Fisheries Finance Program (FFP) is a direct government loan program that receives an annual loan authority from Congress to provide long-term loans to the aquaculture, mariculture, and commercial fisheries industries. The Program will finance up to 80% of the depreciated actual cost of an eligible project cost. The applicant must have a minimum of a 20% equity contribution to the eligible project. Eligible projects consists of Aquaculture and Mariculture facilities and Fisheries Shoreside Facilities. The FFP can provide both financing and refinancing of existing debt for these projects. The FFP can also provide financing to purchase or refinance an existing fishing vessel and also to reconstruct an existing fishing vessel as long as the reconstruction does not increase harvesting capacity. The FFP cannot provide funds to construct a new fishing vessel, but it can provide funds to refinance existing debt on a newly constructed vessel.

Loan Terms
Long term, fixed rate loans with interest rates of 2% over the U.S. Treasury's cost of funds. Loan maturities up to 25 years, but not to exceeding the economic useful life of your project.

Application Process
The application process varies depending on the eligible project. Among the items needed for review and analysis are a business plan for your eligible project, current condition and valuation survey (for fishing vessels) and/or a current appraisal for aquaculture, mariculture and shoreside facilities. Any and all Federal and State fishing and licensing permits owned or utilized by the eligible project. A listing of your major customers, and credit terms, as well as a listing of your major suppliers and credit terms and credit limits. If the applicant is corporation, partnership, or limited liability corporation, a listing of your owners, partners, shareholders, or members, the percent of ownership in the applicant, and their compensation from the applicant. In addition Partnership Agreements, Articles of Incorporation or Organization, Bylaws, Operating Agreement, Declaration of Corporate Officers, Corporate Resolution authorizing transaction, Certificate of Incumbency, and a Good Standing Certificate from the Secretary of State where applicable.

Program Contact Information
We have a headquarter and three regional offices.
Headquarters Office, Financial Services Division
1315 East-West Highway
Silver Spring, MD 20910
Telephone: 301-713-2390
Fax: 301-713-1306


Northeast Regional Financial Services Branch
11-15 Parker Street, Suite 204
Gloucester, MA 01930
Telephone: 978-281-9202
Fax: 978-281-9375


Southeast Regional Financial Services Branch
263 13th Avenue, South
St. Petersburg, FL 33701-5511
Telephone: 727-824-5377 Fax: 727-821-5380


Northwest Regional Financial Services Branch
7600 Sand Point Way, N.E.
(BIN(C15700), Bldg. #1
Seattle, WA 98115
Telephone: 206-526-6122 Fax: 206-526-6306

General Program Requirements
In order to qualify for this benefit program, you cannot be delinquent on any Federal nontax debt and you must be (or soon to become) the owner or tenant operator of a farm that produces eligible farm commodities and demonstrate a need for additional storage. In addition, you must have a satisfactory credit history and demonstrate the ability to repay the debt resulting from this loan.

Program Description
Farm Storage Facility Loans are provided to encourage the construction of on-farm grain storage capacity and to help farmers adapt to identity preserved storage and handling requirements for genetically enhanced production.

Loan Terms
Variable Interest Rate with no Upfront Fees. Maximum Loan Length is 7 years with Maximum Loan Amount of $100,000. There are no Pre-payment Penalties. Annual Payment Frequency.

Application Process
For more information, see the Program Contact Information below.

Program Contact Information
More information and a downloadable application for Farm Storage Facility Loans are available at:
http://www.fsa.usda.gov/dafp/psd/fsfl.htm

To apply for benefits under this program, visit your nearest USDA Service Center. Find the nearest agency to you at:
http://offices.sc.egov.usda.gov/locator/app?state=us&agency=fsa

Managing Agency
U.S. Department of Agriculture
http://www.usda.gov/

General Program Requirements
To be eligible for a farm operating loan (OL) from the Farm Service Agency (FSA) you must:
# be a US citizen or permanent resident
# not be delinquent on a Federal debt
# not caused a loss to the Government by having a previous Federal debt forgiven (insert bullet) not have a poor history of repaying debts
# not have any controlled substance convictions
# be the operator of a "family-sized farm" after the loan is closed (see our Glossary Terms for a definition of family-size farm)
# not have any outstanding judgments against you
# be unable to obtain credit elsewhere.

Applicants must have enough money to repay the loan and enough collateral to fully secure it. Other eligibility criteria apply and can be found on the Farm Service Agency website or by contacting FSA directly.

Program Description
The Farm Service Agency (FSA) offers farm operating loans to farmers who are temporarily unable to obtain private, commercial credit. Operating loans may be used to purchase items needed for a successful farm operation. These items include livestock, farm equipment, feed, seed, fuel, farm chemicals, repairs, insurance, and other operating expenses.

Both guaranteed loans and direct loans are available through this program. Eligibility for each type of loan depends on applicant qualifications.

Under the guaranteed loan program, FSA guarantees loans made by conventional agricultural lenders for up to 95 percent of the principal loan amount. FSA can guarantee farm operating loans up to $899,000.

Applicants unable to qualify for a guaranteed loan may be eligible for a direct loan from FSA. Direct loans are made and serviced by FSA officials, who also provide borrowers with supervision and credit counseling. Applicants must show sufficient repayment ability and pledge enough collateral to fully secure the loan. The maximum amount for a direct farm operating loan is $200,000.

Loan Terms
Loan repayment periods for both direct and guaranteed farm operating loans cannot exceed 7 years. Loans for annual operating expenses are normally repaid within one year. Loans for equipment and livestock purchases are scheduled for repayment over longer periods, but cannot exceed 7 years. Interest rates for direct operating loans are based on the Government's cost of funds. FSA offers lower resource interest rates to direct loan applicants who cannot afford the Agency's regular interest rate. Interest rates for guaranteed operating loans are negotiated by the lender and farmer. However, the lender must not charge the guaranteed loan customer a higher interest rate than they charge their average farm loan customer. In some cases, FSA can pay 4% of the interest rate for farmers who cannot afford the lender's normal interest rate. For most guaranteed loans, FSA charges an origination fee equal to one percent of the guarantee.

Application Process
To apply for a direct farm operating loan, you submit an application form (FSA-410-1) and business plan, in addition to other forms required to determine eligibility. To apply for a guarantee loan, visit your lender, who will arrange for the guarantee.

General Program Requirements
In order to qualify for this benefit program, you must be or have been a rancher whose professional experiences include(d) agricultural production or farming.

Program Description
This program provides loans to assist farmers in marketing their commodity crops and, as a result, improve and stabilize farm income.

Loan Terms
Interest rate and maximum loan amount vary. The maximum loan length is 10 months, with no prepayment penalties and a payment frequency of once.

Application Process
For more information, see the program contact information below.

Program Contact Information
To learn more information about the Commodity Loans and Loan Deficiency Payments Program and other similar programs, visit:


You may also contact the program office directly:

Program Manager, Marketing Assistance Loans & LDPs
Farm Service Agency - Price Support Division
1400 Independence Avenue, SW
Room 4089-S
Washington, DC 20250
Kgraham@wdc.fsa.usda.gov
202-720-9154

Usually when a debtor is in such crisis that all doors are closed for him in terms of finance and he has no where to go for help then he declares him self bankrupt for saving his neck. As we all know bankruptcy brings further misfortune for the debtor as his reputation in the eyes of lenders goes into pieces. Then it takes years to regain some of the lost creditability. In Scotland however they have designed a far respectable and credential saving way that goes by the name of online Scottish trust deeds.

Online Scottish trust deeds are called so because a debtor can search and secure the trust deed on filling a simple online application involving some primary details about the debt and the debtor. There is a database of Scottish trust deeds providers available online for the benefit of the debtor. The debtor can select a suitable online Scottish trust deeds provider after comparing as many of them as possible and apply to him online. One advantage for the debtor is that all aspects of the online deal regarding the deed is kept secret so that there is no further erosion of the debtor’s credibility which matters the most.

As per the provisions of online Scottish trust deeds, a proposal containing a plan for easy clearing of debts is prepared and sent to all his creditors. The proposal has to be essentially drafted by a licensed insolvency practitioner who serves as an honest broker of the trust deed. The proposal speaks about the debt amount the debtor can easily pay off to the creditors and mentions a fixed pay off duration. Creditors read the proposal taking their time if necessary and offer suggestions or objections if any. In that case the proposal is redrafted till it is acceptable to all the creditors and the debtor.

While preparing the proposal to creditors for making an online Scottish trust deeds deal, the insolvency practitioner’s main concern is the actual repayment capacity of the debtor. The practitioner arrives at surplus money the debtor presently holds after paying for routine expenses and urgencies. It is this surplus money that is considered as the amount the debtor can pay towards early clearance of all debts. This is the amount the creditors usually agree upon for paying off the debts. Clearly, online Scottish trust deeds providers take into account the present fragile financial position of debtor in mind so that he leads his life smoothly while paying for debts.

One big advantage attached with online Scottish trust deeds is that the creditors agree on a fixed repayment term which usually is up to three years. The advantage is that even if there are debts left after the agreed period, all remaining debts are written off. This means the debtor may be paying less than he actually owes to the creditors. Moreover creditor can not charge further interest rate on the debts after the deed has been signed. Apart from saving money, the debtor is free of all worries as correspondences from creditors are handled by the insolvency practitioner.

There are no problems on the bad credit front for making an online Scottish trust deeds. This is because the debtor is no more permitted to take fresh loan till the agreed repayment duration is completed with pay off of the debts. Surely online Scottish trust deeds are great help in rescuing debtors from deep crises. They should make the best out of the deeds and keep the promises made to the creditors.

Many people believe you just can not get a mortgage if you have bad credit. Well …. that just isn't true anymore. The American Dream of owning your own home is alive and well -- even if you have bad credit!

There are many lenders that are willing to give home financing to people who have a bad credit report.

Who are these lenders and how does a bad credit mortgage work?

Each of the lenders who offer these loans has their own programs and features. Many of these lenders never even look at your credit history. There is no pre-qualification involved - you are usually notified within 24 hours if you will receive the money.

Here are the most common terms for bad credit mortgage loans:

* High Interest Rates…

Lenders that are willing to take the risk of giving loans to people who have poor credit want to be compensated for that risk. So they will grant these bad credit mortgage loans with a higher interest rate to the borrower.

While you might not want to pay a higher rate -- if your credit score is low -- this might be the only type of mortgage you will be able to get.

This type of mortgage loan has many benefits -- I personally used one of these several years ago. I had poor credit - I was able to obtain a mortgage loan with the interest rate at about 3-4% higher than the average. I paid this loan every month on time - which helped my credit rating… 3 years later - my credit score was higher and I was able to refinance to a mortgage with a much lower interest rate. This was a win-win situation -- I benefited obviously because I was able to purchase a home and repair my credit and the lender benefited with the higher interest rate they received.

* Larger Down Payments…

Again - the lender looks at the "risk" they are taking by granting these types of loans. Because of that risk they usually want a larger than average down payment.

While gathering that larger down payment might not always be easy -- the up side of this is - the larger your down payment - the lower your monthly payments will be.

* Other Things….

Points - While points are not usually charged on most mortgages today - they are indeed usually part of these types of mortgages.

Pre-Payment Penalty -- Lenders that are willing to give these alternative mortgage loans want to ensure they get compensated. Usually these loans carry a 1 or 2 year pre-payment penalty.

Do Your Research…

To find these companies the easiest thing to do is go to google.com and type in bad credit mortgage loans. You will get a big list to choose from.

There are many alternative companies that offer these bad credit mortgage loans. Go to the websites - read their terms - ask questions. Another place to get info is to check in credit / debit forums.

Owning your own home can truly be a dream come true for you and your family. If you have had some financial difficulties in the past -- the American Dream is still alive for you.

Are you looking for personal loans?

Do not want to pledge anything against the amount?

Do you want to avail the loan without spending much?

Only one answer is recommended for your all questions and it is cheapest unsecured personal loans.

As the name refers, cheapest unsecured personal loans are available without any security. Therefore, apart from homeowners, all sorts of tenants like, council tenants, housing association tenants, MOD tenants, private landlord tenants, living with parents, housing executive tenants, tenant with bad credit history can get the benefit of these loans.

Cheapest unsecured personal loans allow borrowers to avail the amount, ranging from ₤5000- ₤25000. Generally, these loans are given for 5-10 years. However, to decide the term period, the borrowed amount plays an important role.

With a cheapest unsecured personal loan, a borrower with bad credit score also can finance their dreams. Yes, cheapest unsecured personal loans are meant for all sorts of bad credit scorers, including CCJs, IVAs, bankruptcy, defaults, arrears and so on.

Now the question is how one can find cheapest unsecured loans. The following points would be the best answers.

•Having a good credit score provides borrowers some extra edge in getting cheapest unsecured personal loans. So, at first check what your credit score is.

•A bit searching paves borrowers’ way in getting cheapest unsecured personal loans. So, individuals are advised not to stick to their choice of lenders in one, but look for the best deal. Many lenders like banks, lending companies, and financial institutions offer cheapest unsecured personal loans. Meet them personally, ask for their loan quotes and compare those quotes minutely. It will give you an overall idea in getting cheapest unsecured personal loans. If you are short of time, choose online options for getting cheapest unsecured personal loans. With this option, you can avail a hoard of various loan quotes, which will guide you in getting cheapest unsecured personal loans.

Any personal desire that require a spending can be financed with cheapest unsecured personal loans. Some common usages of these loans are mentioned below:

•For investing in real estate

•For paying off debts

•For making holiday trip

•One can arrange finance for wedding purposes and many more.

Since, these loans are available in unsecured form; hence there is no risk of collateral repossession. Due to the absence of collateral, lenders, while offering cheapest unsecured personal loans do not follow the formalities like measuring the worth of collateral and others. Thus, there is a possibility of getting the amount fast. And it is also an added advantage of cheapest unsecured personal loans.