Personal loans are quite easy to obtain and can be used for any financial reasons.
However, the worse your credit is the more difficult it is for get a personal loan with great rates.
There are two types of personal loans, secured and unsecured. Unsecured personal loans mean no collateral is needed to secure the loan. If you have bad credit, you will only be approved for a secured loan because you are considered a high risk.
The forms of collateral accepted include vehicles, property, and other tangible items. The collateral has to have a value sufficient enough to cover the outstanding balance on the loan.
There are many reasons people have bad credit. It could be that they have been reckless with their money and finances.
For most people, this isn’t the case. Bad credit could be the result of a death in the family which led to loss of income.
Job layoffs or getting fired from a job often can also result in bad credit. Medical emergencies can also lead to bad credit as well as divorce.
Regardless of the reasons that led to bad credit, everyone at some point will need to apply for some form of personal loan.
There are many lenders out there that understand bad credit can happen to good, responsible people.
Therefore, they may be willing to give you a second chance to prove you will be responsible and pay back the personal loan.
Because of your credit, you may only qualify for a high-interest rate loan. Getting a personal loan can help you rebuild your credit.
Make sure to make your payments on time. To save on the interest you pay, consider sending extra payments whenever you can.
Be careful when applying for a personal loan online. There are scam artists out there who prey on people with bad credit seeking personal loans.
Never agree to pay any processing fees or other types of payments. It is against the law under the Federal Trade Commission for any lender of personal loan funds to ask for processing fees.
Most individuals with bad credit get sucked into these scams because they are desperate and need a loan.
It is vital to check out the lender with the Better Business Bureau before doing business with them. Also, you can perform a search online to see reviews on such lenders.
Don’t forget to check with the smaller lending companies. Most large lenders are very impersonal and base your eligibility on a computer algorithm.
Smaller lenders are more likely to look at your overall profile in making a lending decisions.
If you can establish that you are responsible and that you have income sufficient to repay the loan, then this will be in your best interest.
Personal loans can be a lifesaver especially if you have poor credit. Make sure to do your due diligence before committing to any personal loan offers.
Be prepared to provide collateral and to pay a high-interest rate as a result of your poor credit.
Prior to the current pandemic, there was an increase in consumer debt, especially credit cards. Applying a step by step debt reduction strategy may be the key.
As a result of the health crisis, there are lots of people struggling with credit card debt today and looking for solutions to eliminate their credit card debt.
So what is the solution to credit card debt? The key is to develop a game plan on how to tackle your debt and staying disciplined with your execution.
Here are simple step by step debt reduction plan you can apply to get rid of your credit card debt.
Using an excel spreadsheet, draw up a table with the following fields – Credit card name, balance, payment due day (the day of the month by which you are required to make payment of your credit card bill), APR, reward points earned, redemption offers applicable for your reward points balance, remarks.
Fill the table up with data from your credit cards.
Figure out which credit card is contributing the most to the credit card debt problem i.e. highest APR and highest balance.
Check if reward points can be used to make partial payments or cover any kind of fees or if the points can be redeemed for something you need (spending less means preventing the credit card debt problem from getting worse).
Draw a comparison table of offers available for eliminating credit card debt problem (i.e. consolidating credit card debt).
Pay off the credit card with the highest interest rate first while paying only minimum payments on the rest.
Control your spending (after all you are looking to get rid of your credit card debt).
Look into different ways of increasing your income (more income means quicker you can eliminate your debt).
By sticking to your plan and with time, you will eventually eliminate your credit card debt.
One of the best parts of the American Dream is starting a business. In this post you will learn the steps on how to build a successful business.
However, there is a difference between starting a business and building a successful business.
Many businesses fail within the first few years of existence due to the lack of planning.
Starting your own business requires setting short term and long term goals and being flexible to adjust to situations.
If you want to start a business there is an easy way to get a better understanding of why some businesses fail and others are successful.
Starting Your Business
Starting a business is like building a house. If done right it is protecting you against any kind of storm or danger of the outside world and will last for a long time.
Starting a business provides you with options in life.
For you and your business that could translate to, being able to withstand the economic climate and be able to produce enough income to pay your expenses and still generate a profit.
In starting a business, you have to come up with a business idea and work out a business plan.
In the business world, you have to build the initial infrastructure, such as, connecting with vendors, finding a manufacturer for your product, creating a sales team, rent office space, get a delivery truck, etc.
Once all this is in place, you can actually start to do business and earn income. However, you are not done yet.
Starting A Business Is Like Building A House
Just like building a house, you need to build a framework, put in windows and you also need a roof on the house.
For your business, this means that you pay off debt, improve business processes, and get professional help when needed i.e a tax accountant, payroll service, bookkeeper, attorney, etc.
Once your house is built you probably want to fill it with furniture and make it livable for the future.
Nobody wants to sleep on the floor, right. Again translating this to the business world could mean, investing money back into your business.
You buy machinery instead of leasing it. Eventually, you buy a building, hire more staff, develop more products, move into new markets, build up a high cash reserve, and buy other businesses, and so forth.
This is often the step where winners and losers are made. Re-investing money into the business is a key factor for success.
If you go and spend all the money on your own salary to buy luxury items, you have nothing to fall back to when the economy slips into a recession or disaster strikes.
The successful business owner has built up a cash reserve or can borrow money from banks – securing loans with the assets of the business.
Going back to our example of building a house, this can be applied to building your business.
You pay off your mortgage and have enough equity available to eventually borrow against when a crisis arises.
By being Fiscally responsible ensures that you account for the long term survival of your business.
If you’re starting a business, you definitely need to check out CorpNet! Founded by experienced entrepreneur Nellie Akalp, who’s helped over 100,000
small business owners get their start, CorpNet can assist you with filing a
DBA (“doing business as”), Forming a Corporation, or an LLC (Limited
Liability Company), by completing the process quickly and affordably saving
you time and money with fast reliable service. CorpNet packages start from just $79, plus state filing fees. This is SO much cheaper than what an attorney will charge. The site also offers a FREE Business Name Search Feature where you can conduct unlimited business name searches and get your results within 24 hours.
Banking is so much easier with Online banking and here I give tips for better online banking.
Online banking allows you to access your bank at any time of day or night.
You can access your bank account anytime and anywhere, provided you have internet connection.
It also spares you the trouble of standing in line at your bank.
The best part of online banking is convenience. You can access your bank via the Internet at any time of day or night, even while lying in bed if you like.
Transactions you perform online are generally much cheaper than those done over the counter at a bank branch. You can pay bills, transfer cash, check balances, and much more.
If you are interested in saving money, online savings accounts are worth checking out. The interest rates are usually higher and the fees are lower than traditional banks.
Your computer has convenient ways to help you remember your login details. But don’t use the “remember my password” option if your computer suggests it. Keep your bank login details very safe and very secret.
Most online banks make it easy for you to change your password. This is a great idea due to online security concerns.
Logging on to your online bank is easy and very convenient. But after you have completed your business, remember to log out of your online bank again. This is especially important if you access your bank from a library, at work, or from an internet café.
Finally, one key point is to beware of phishing emails you receive asking you to verify your bank details by clicking a link.
The site may look authentic, however, there are usually fake. Reputable banks will never ask you to verify your personal or financial information through email.
Are you aware of the advantages of a home equity loan?.
It allows homeowners to borrow money using the equity in their homes.
With a home equity loan, homeowners can borrow up to a predetermined percentage of the equity in their homes. The interest on the loan is tax-deductible.
There are two types of home equity loans. One type is a fixed-rate loan and the other is a line of credit. Both loan types have terms ranging from five to thirty years and both must be paid in full when the home is sold.
A fixed-rate home equity loan provides the borrower with a lump sum payment and requires the borrower to pay the loan off over a set period of time.
The payments are fixed for the term of the loan.
A line of credit home equity loan works with a variable interest rate and uses the same principles as a credit card.
The borrower can access the funds through special checks issued by the lender.
The monthly payment will vary based on the current interest rate and how much money was borrowed that month.
When the term of the loan is up, any outstanding balances borrowed must be paid in full.
Home equity loans work well for homeowners who need a large amount of money fairly quickly.
The homeowner may need money for paying off another loan, tuition money, home improvements, or other unexpected expenses.
Home equity loans are a better option compared to other loans.
Since the interest rate on them is usually low as compared to the interest on credit cards and other loans.
Because of this, it makes great financial sense to pay off a credit card debt using a home equity loan.
This allows the homeowner to have one single monthly bill, a lower interest rate, and a loan that is partly tax-deductible.
Home equity loans have many advantages for lenders as well.
After the lender has collected on the original mortgage, they then are able to collect more payments and more interest.
The lender can foreclose on the homeowner if the homeowner defaults.
Home equity loans can be used to lower interest payments and pay unforeseen expenses.
Borrowers must weigh the advantages and disadvantages of taking out a home equity loan.
In this blog post, I show you how to reduce credit card debt? Reducing your credit card debt requires discipline and planning.
Today, however, there are lots of advice on how to reduce credit card debt, without any results. The problem still seems to persist and in fact, worsens.
The truth of the matter is, it’s not that difficult to reduce credit card debt. As we just said, there are lots of advice available on how to reduce credit card debt, and the only thing you need to do is put to practice in real life.
You are the only one who will benefit from reducing your credit card debt.
The first step to reducing credit card debt is to prevent it from getting out of control. The second step is initiating a balance transfer and sticking to a cash basis.
A balance transfer is often treated as the number one measure to reduce credit card debt. This is really something that can help reduce credit card debt by slowing down the rate at which your credit card debt grows.
It also provides you relief in terms of the APR being 0% for the initial 6-9 months (and hence helps reduce credit card debt faster).
To reduce credit card debt using this method, you need to transfer your balance from your current credit card(s) to a credit card that has a lower APR. This will minimize the amount of interest you will pay in the long run.
Another effective measure to reduce credit card debt is to use cash instead of your credit card. Using cash will ensure that you never overspend because you will be limited by the amount of cash you have on hand.
So you reduce credit card debt by not adding more to it. This is the key to reducing your credit card debt.
Reducing credit card debt takes planning, discipline, determination, and perseverance. Success only comes to those who decide enough is enough and take charge of their finances.
The key to advanced wealth planning strategies is by building a team of qualified advisors.
Your advisors can make or break you. Advancing your wealth cannot and should not be done alone. Most individuals make the mistake of doing everything themselves.
Doing everything yourself is fine but if you want to increase your wealth you will need advisors. Money is an emotional subject for many people.
Everyone goes through money problems (even the very wealthy), how you handle your money problems is all that counts.
The first thing to do is to hire a bookkeeper. In order to increase your wealth you must know what direction your money is flowing. Is your spending helping or hurting you?
Yes there are many people who balance their own checkbooks but you need an outside opinion. The amount of money you are making is irrelevant when it comes to hiring a bookkeeper.
Whether you are making 250,000 dollars a year or 25,000 dollars a year you should still have your own bookkeeper. A great bookkeeper will enable you navigate your spending patterns.
The next adviser you should have is your financial adviser. Hiring a good financial adviser is one of the best moves you can make. He or she can help you plan for retirement. Having a 401 K with your company is not enough, make sure to get a financial adviser.
Next is getting a tax professional. It really does not matter if you are self-employed, own your own business, or have a 9-5 job.
Getting a tax strategist is essential in helping you avoid tax pitfalls and help minimize your tax liabilities.
Be very careful when choosing your advisers. Don’t hire an adviser who makes money off of commissions.
You want an adviser who is fee-based, practices what they preach, and is very successful.
Your advisers will be instrumental in helping you set up advanced wealth planning strategies.