5 Quick Cash Schemes to Beware Of

Anything that promises you quick and easy money for an up-front investment should be carefully scoured to make sure it is not just another in the long line of quick cash schemes. Instead of expecting instant income, people need to learn more about what scams to watch out for, so here are some of the most common schemes and what red flags they should be watching for.

Ponzi Schemes

Ponzi schemes are a financial scam where potential investors are contacted and lured in with the promise of huge return on their investments, as much as 50 percent. After a few investors have given their money, the first investors are paid back with the new money, making the scheme seem legitimate. What you would be required to do in one of these schemes would be to swindle new investors to invest their money so the old ones can get paid, and in return you would get your portion of money off what you were able to swindle away from people. These types of quick cash schemes are dangerous, illegal, and they will leave you with many upset people in the end.

Internet Schemes

There are numerous businesses online that claim they will help people get rich quickly. You just have to put in a few hours’ worth of work and all of a sudden, you’ll have an astonishing income. The question to ask yourself is why would they be sharing this information if this were the case? The truth is, there is no perfect way to make an income online without the time and effort of a full time job. There are many legitimate online business opportunities, but don’t fall for one that promises huge rewards without the proper work being put into it.

House Flipping

While you can make money flipping houses if you are able to buy them for a low price and somehow turn around and sell them for a higher price, this is not the type of quick cash project you should be looking to invest in. The risk on this type of business is huge, even if you have simply just invested a small amount of cash, because if the house does not sell, you have a lot of financial responsibilities that could cause financial hardship. Steer clear of this scheme if someone comes to you asking for your hard-earned cash.

Stuffing Envelopes

There are many places that advertise the ability for people to sit at home, in front of the television, and stuff envelopes for money. They promise as much as a dollar per envelope, and since most people can do hundreds per hour, this can be a quick way to make money – but it’s not. The truth is, this is a quick cash scheme that tells you to send some money for your first set of supplies, and what you get in return is a piece of paper that tells you how to repeat this same process and get the same money from other people. Some of these scammers will also ask for personal information like bank account numbers or social security numbers that will make your more susceptible to identity theft. This type of “work at home” scam has been around for a while now and should avoided all together.

Mystery Shopping

Most of the people who hear about mystery shopping are instantly curious. They figure why not try and get money for doing something they enjoy and are already doing? The problem is you usually have to spend a lot more money than you would ever make doing this job, leaving you more in the hole after you did the job than you made in the process. The only time this is not a quick cash scheme is when you would have had to make that specific purchase anyway, allowing you to come out of the end of it slightly ahead.

Quick cash schemes are all over the place, and they are scamming people more in recent years as unemployment has climbed. Just make sure you stay aware before doing anything like this, because as the adage goes, if it sounds too good to be true, it often is.

Is a Personal Loan a Good Choice for Paying Off Debt?

When it comes to paying off debts, a lot of people are turning to personal loans. This is due to how easy it is for some people to get these types of loans, plus the ways that it can benefit credit when used properly. However, most people do not research ahead of time to figure out if this method of paying off debt is what’s best for their situation. Here are some ways to decide if a personal loan is the right way to pay off your debt.

The Interest Rate

If the debt you are trying to pay off has a higher interest rate than the personal loan you are applying for, it can be a very good choice. The savings in interest can then be applied as extra principle each month, helping you pay down the personal loan even faster. For example, if your current debt is costing you $500 a month, but with a personal loan it only costs you $400 each month, you can apply the extra $100 toward the principle of the loan and get your debt paid off a few months early. Just make sure there is no prepayment penalty that could end up costing you a fee in the end.

The Type of Debt

One of the biggest reasons that paying off debt with a personal loan is considered a good thing is because it changes the type of debt you are paying. Revolving debt, which is what your credit card debt is, can harm your credit a lot more than an installment loan can. Since most personal loans are installment loans, this can be a big boost to your credit. The lower revolving debt you have, the better your overall credit report will look. Plus, if you have only utilized a small percentage of the total credit that’s been extended to you, this will boost how your credit report looks as well. Now, if you are paying off another loan, you will not be changing up the type of debt you have, and you will end up doing more harm to your credit report than good.

Stop Using Credit Cards

If you pay off credit card debt, the one thing you have to make sure you do, or rather don’t do, is use the credit cards again until the personal loan is paid off. For those who end up paying off their credit cards with a personal loan, only to add to the credit card debt once more, will end up in a worse off financial situation than they started in, and their credit will suffer for it. Pay off the credit card and then put it somewhere safe until the personal loan is paid in full. Once the loan is paid off, use your credit cards carefully. Since you have been living without credit cards for a while anyway, you should be able to go without using them unless it is absolutely necessary.

It’s not often recommended to take out a line of credit to pay off another line of credit, but there are times when the scenario can work in your favor. If you are able to change the type of debt you have to improve your credit report, it could work to your benefit. Just make sure you understand what the differences will be before looking into personal loans as a viable option. Don’t take out one loan to pay off another line of credit, and then rack up more debt, or the situation you have been trying to get out of will only end up worse. Taking the time to fix up your credit is worth it when down the line, you are able to get the credit you need and not have to worry about the struggle to pay down the hefty balances.

5 Ways to Get Back on Track When Behind on Your Bills

Falling behind on your bills seems to be easier than ever these days. Getting bills back on track is something many people are trying to figure out so that once the economy does bounce back, they are not stuck with horrible credit and no place to turn. There are a few different things that you can do to help you get back on track, but you need to make sure you are being attentive to your bills and not pushing them aside. Give these tips a try and see how quickly you can get your bills back under control.

Tip #1: Get a Credit Check

It’s never too late to get your credit checked. Even if you haven’t done this in years, it’s still important. It may be one of the most important steps when trying to get your bills back on track because this will show you how much you owe and who you owe it to. You should also go through and make sure that only accurate information is on your credit report.  This should be something you do often, meaning at least once every calendar year. Ideally you should go through and monitor your credit weekly so that you know exactly what money you need to pay off each of your bills on time.

Tip #2: Know Your Due Dates

Paying your bills on time is essential when trying to get them back on track. This is because every late payment has two negatives. First, the late payment can be reported to the credit bureau and can damage your credit. Second, each late payment can be accompanied by a late payment, thus increasing what you owe and making it harder to get your bills in line. If you pay your bills on time, meaning on or before the date they are due, then you will bypass late fees and higher interest rates that could come back to haunt you.

Tip #3: Budget Your Finances

Write down exactly what you spend your money on and take out those items you don’t actually need. Make sure you include all of your bills and your luxury purchases so that you can see where you truly stand. From there, cut out what you don’t need, and cut out 75% or more of the things you want, and see how much money you have left over. Now, use this new money to apply towards paying down your bills until they are back on track. This will let you pay back your bills without falling behind on any other bills in the process.

Tip #4: Plan Ahead

Planning ahead is something most people need to do more of. One way of doing this is by establishing an emergency fund. This is a savings account that is only touched when an emergency arises, such as a major health crisis or unavoidable car repair that you need in order to make it to work. As soon as any money goes out of this fund, you should add it to your list of bills to replace.

Tip #5: Continue Saving

It may sound counter-intuitive, but setting aside a little money into savings each month will allow you to be ready for little changes that were not in your budget. Maybe one month you stayed home sick from work for a day or two. While you may not have been paid for those missed days, you can make up the difference from your savings without falling behind on any bills due to the lack of income. Your bills can get back on track with some determination and planning. Don’t let one lapse in bills deter you from working to get your financial life back in order.