As the owner of your own home, you have a very important resource available to help you weather many financial storms including the current global credit crunch. With the credit crunch in the news on a daily basis, it’s a good time to take a look at the equity tide up in your biggest asset – your home. A home equity loan or home equity line of credit (HELOC) is a loan, which is basically granted using your house’s value as collateral. The size of the loan will depend on the difference between your current mortgage value and the current value of your home.

A fixed rate home equity loan is a great way of freeing extra cash which you can use for a variety of purposes including debt consolidation, wealth creation through good sound investment of capital, education, home improvement etc.

But before you decide on a fixed rate home equity loan or on a variable rate home equity loan its best to compare the pro’s and cons of each type so that you can make the right decision for you.

With your home equity loan being one of the biggest long term financial decisions you’ll make, its best to get the decision right from the very beginning. Getting it wrong could literally cost you thousands.

The question is whether to consider fixed rate home equity loan or a variable rate home equity loan.

Fixed Rate home equity loan

A fixed rate home equity loan is a loan where the interest and thus the repayment are fixed at a certain interest rate for a certain period. The period varies but can be anything from two to five years to the length of the loan. The pros of a fixed rate home equity loan are:

• They provide certainty with regards to payments
• You can budget easily if you sign up for a fixed rate mortgage
• Even if the interest rate climbs, your payments remain constant

Cons of a fixed rate home equity loan include:

• Your payments do not decrease if the rate decreases
• You cannot take advantage of market up and downs
• Initial rates on the fixed rate mortgages are usually higher than variable rate deals.

A fixed rate home equity loan can help to cap your payments and they make it easier to budget. The best time to take advantage of a fixed rate home equity loan is when the rates dip a little. You can then refinance your home equity loan with fixed rate home equity loan and take advantage of the fact that rates will climb.

Variable Rate home equity loan

As opposed to fixed rate home equity loan, the interest on a variable rate home equity loan changes all the time. This means that when interest rates climb, so does your home equity loan repayment.

The pros of this type of home equity loan is that if rates fall, so does your repayments, but unlike fixed rate home equity loan, it is very difficult to budget for payments which fluctuate. This type does however allow you to take advantage of changing market conditions.

If the current rates are high, then its best to go for a variable interest rate loan and then once the rates fall, to try to change it to fixed rate home equity loan.

For more information please visit http://www.low-rate-payday-equity-home-loans.com for more information

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A home equity loan and a home equity line of credit both provide money from the value of your home. But each one has its pros and cons.

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Typically people who decide to apply for a debt consolidation loan have more than two or three debts that they want to pay off and on average owe more than £5,000 from various different credit commitments. Credit cards, overdrafts, and store cards are just some of the usual credit commitments that people have that they might want to consolidate with a secured loan, or an unsecured loan.

If you have a poor credit history and you would like to take out a debt consolidation loan you may be able to take advantage of a bridging loan that is a secured homeowner loan against your home, or any other property or asset that you may have.   Bridging finance loans are a very quick debt consolidation loan that can be taken out that is secured on a property, typically the minimum loan amount is £25,000. The maximum loan amount on a bridging loan will vary depending to the lender. The main benefit on a bridging loan is that money is made available within two or three days, however it is a more expensive way of borrowing, and typically the maximum loan to value is 80%.

Unsecured loans and secured homeowner loans are the more typically used loans to clear up other debts that are outstanding. There are many different ways to find a debt consolidation loan. One of the most popular, and probably the cheapest ways to arrange your debt consolidation loans is to visit your bank to see what they can offer you. Because you do your banking with them, they would know your history and how you manage your financial commitments, and as long as they are in good order your bank should be more than happy to lend you the money that you need to consolidate your existing debts to make your outgoings more manageable. The maximum loan amount that banks and building societies will lend to their clients on an unsecured loan is usually £25,000. This amount is dependant the lenders criteria, and your personal and financial circumstances.

Debts consolidation loans are one of the most common types of loans that are taken out by the average consumer in the UK, and therefore there are many other lenders other than your high street bank that are willing to lend you the money that you want or even need to consolidate your existing debts.

In most occasions taking out a debt consolidation loan whether it being secured or an unsecured loan is going to save you money on a monthly basis and should also reduce the total amount of interest payable over the period of time that the loan is taken out for. Another popular method of taking out a debt consolidation loan is to apply for your loan through the internet. The advantage of looking for a loan on the internet is that there are many price comparison websites that have access to many lenders and therefore can find the best debt consolidation loan for your based on your individual circumstances rather than when you approach a bank, they are only able to offer you a loan from their own products.

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In my backyard garden talking about the courts threatening to allow the banks to unlawfully hijack my family legacy and they usually use a Sheriff, ,,, (who are supposed to protect ordinary folks from big corporate criminals who steal our family’s labor, and sell our childrens futures to foreign entities who are impersonating a de-jure representative government of the unanimous majority,,,, or was that only 51% of them telling the other 49 that they can steal your land if the ‘majority’ feels like it, thats called “Mob Rule” .. people need to understand their own personal sovereignty, before this gangster bankster game will ever end, people will have to be responsible for themselves, and revert to simpler ways, clean ways of life, and what is free, money is what got us into9 this mess and getting rid of it will get us out, but we ALL need to walk out from under the pyramid, not just a few, but MILLIONS need to all STOP using their monopoly money UPDATE July 11, 2009- on ‘no judicial immunity’ Courts enforcing mere statutes do not act judicially merely ministerial, having thus no judicial immunity, and unlike courts of law do not obtain jurisdiction by service of process nor even arrest and compelled appearance. Boswell v. Otis, 9 Howard 336, 348. update on my foreclosure, (watch the videos below for some background After the bank committed forgery by signing the same name (by 3 separate hands), on a proof of service which they claimed they posted on my door by court order <b>…</b>

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The payday loan service allows people to gain access to short term funding, for relatively small loans, fast. Before deciding to go down this credit route, you should make certain considerations to ensure that you are deciding on the best option for your situation.

1) Do you really need a Payday Loan?

Is it absolutely essential that you take out a payday loan? Or can that new outfit / ipod or week-end away wait?

If paying for something that you want, and the additional money in interest payments for a payday loan to be able to buy it, is going to stretch you so that you run out of money next month, then perhaps you should consider whether you could rather save up and buy what you need at a later date, rather than borrow money to pay for it.

Of course, if you are aware of the additional costs of buying or paying for something at the time you want it, and are happy with these, and can afford them from your next wage payment, then there should be no problem taking out a payday loan.

2) What is the length of time you need a cash advance for?

Cash advance payday loans are short-term loans. They are designed to bridge the gap between now and your next payday. If you need to borrow money for a lengthy period of time, then a payday loan won’t be ideal.

You can extend the repayment of a payday loan to a subsequent payday by paying the interest payment each month until you clear the full balance. However, the more you do this, the more your original loan costs you. So, if you plan to gain access t some additional money for a long period of time, you should look for alternative forms of credit.

3) How much money do you need to borrow?

Payday loans are typically valued between £80 – £800. However, payday loan providers are not likely to lend you £800 if you only earn £800 as the idea is that you can afford to pay back the payday loan on your next payday.

So, if you are looking to borrow more than £800 and/or more than you can afford to pay back on your payday, then you should look for alternative forms of credit.

4) Do you meet the criteria for a payday loan?

The criteria for most payday loans are as follows:

- To be over 18 years old
- To be a UK resident
- To be in full time employment
- To have a debit card for the bank account one’s wages are paid into.

By their very title, you are required to be in full time employment when applying for a payday loan. If you are a student or currently unemployed, you will not be able to apply for a payday advance.

Obviously, if you don’t meet these, then you will not be eligible for a payday loan.

Some payday loans companies also require that you have a cheque book. However, there are enough payday loan providers that don’t require this that you should be able to borrow from one that does not require this.

5) Are your wages paid directly into your bank account?

Most, if not all, payday loan companies will require a direct bank transfer of your wages onto your debit card account. If you are paid by cheque or cash, you will, therefore, not be eligible for a payday loan.

6) Can you afford to pay a payday loan back?

If you know that you are not going to be able to afford to repay a payday loan, then you should look elsewhere for a solution to your credit problem.

Payday loan providers will allow you to extend a payday loan by paying the interest each month until you can clear the full payday loan. However, it is not advisable to take out a payday loan planning to do this because it will make the cost of your cash advance more expensive than if you paid one interest fee for the advance.

7) Are you aware of the different processes involved in applying for a payday loan?

You need to decide what is important for you when applying for a payday loan. Some companies require that you provide various forms of documentation, including bank statements, on which to base your loan approval. This process can mean that you can’t receive a same day payday loan. If you want to get your cash advance as quickly as possible with the easiest application route, then you should look out for payday loan providers that offer same day instant cash loans online. You will then be able to apply online, receive an instant approval decision and get your cash that same day. Very often, however, they will carry out a credit check in order to be able to make the application process as quick as possible and to be able to offer faxless payday loans. If you do not mind having a credit check on your credit report, then this is a good route to be able to get cash fast.

Are you aware of the cost of a payday loan?

Before deciding to take out a payday advance loan you need to be aware of the costs and make sure that the benefits outweigh the costs for you.

Most payday loans companies charge an interest fee of 25% of the loan – although some charge more than this, so be sure to find one that doesn’t charge more if you decide to go with a payday loan.

All finance companies are required to quote an APR (Annual Payment Rate). At a 25% cost of credit for a loan due for repayment 31 days away the typical APR is 1286.1%. While this looks extremely high, one needs to bear in mind that APR involves looking at the payment rate annually, when a payday loan is due for repayment after a month. What is important is the cost of credit within that month – typically 25%. So, for every £80 you borrow, you need to pay £20 in interest. You need to consider whether you are happy to pay this amount of interest to be able to take advantage of the fast cash payday loan service.

9) Are you in a position where your credit and debts are getting uncontrollable?

If you already have a lot of outstanding credit / debt and are battling to meet monthly payments, then you should consider that a payday loan may not be a good option for you.

A payday loan should not be used as a means of solving long term credit / debt problems. If it is used in this way, it will more than likely only add to these problems. You should only take out a payday loan if you are going to be able to afford to pay it back and only if it is used for a short-term credit problem.

10) Is a payday loan your best option?

You need to consider what alternative options are available to you at a particular time and assess whether the benefits of a payday loan outweigh the benefits of its alternatives, also taking into account the cons, including costs, of the various options.

There are times when a payday loan may be a good option at a certain time and/or in a certain situation. You need to weigh up the costs and the benefits and decide whether it is the right form of credit for you at a particular time.

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