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Managing Your Personal Finances Starts With Your Credit Card Debt

Not taking care of your personal finances in regards to credit cards can negatively affect you, both physically and emotionally. You need to do a lot of your research so that you don’t mess up your current finances or even your future. There are some tips listed below to help you start taking care of your personal finances.

Credit card debt is a major problem in United States. Nowhere else in the world experiences it to the extent we do. Keep yourself out of debt by only using your card when you have money in the bank to spend. Alternatively, get a debit card instead of a bank card. To establish a good credit history or repair a bad one, you will want to keep your bank card balances low. You should never let your balance get anywhere near your maximum credit line. Having reasonable balances that you pay off regularly is a sign of a responsible user who can be trusted with debt.

Use your favorite cards regularly if you don’t want to lose them. Bank card companies may close or reduce credit limit on inactive or unprofitable accounts without advance notice, which may negatively affect your finances in the future. Use them regularly and pay off the balances to stay out of debt.

Pay off high interest ones as soon as possible. The interest charges will eat you up and cost you more in the long run.

Always make sure that you’re reading the fine print on any financial contract like a bank card, home loan, etc. The way to keep your personal finances running in the black is to make sure that you’re never getting snagged up by some rate hikes you didn’t catch in the fine print.

Eliminate all the credit cards except one. Use this one only in emergency and not on items you don’t have money for. Spending money you don’t have is a sure way to get yourself into more debt.

Contact your bank card company and have them lower the limit on your card. This helps you two fold. First, it keeps you from overextending yourself and spending more than you should. Second, it sends a message to the card company that you’re being responsible by making sure you can’t overextend yourself.

For those individuals that have credit card debt, the best return on your money would be to minimize or pay off those credit card balances. Generally, credit card debt is the most expensive debt for any household, with some interest rates that exceed 20%. Start with the credit card that charges the most in interest, pay it off first, and set a goal to pay off all credit card debt.

Fast Auto Loan Financing Lets You Get Better Deals!

A need for fast auto loan financing isn’t always a sign of impatience. Getting a car loan quickly saves you thousands when buying a car. Walk into a dealership or third party sale with financing already lined up and you have the advantage in bargaining for a better deal and to act fast on it.

Online Fast Auto Loan Financing

Today’s best source for fast auto loan financing is the Internet with all the advantages of a traditional lender like no application fee, no down payment and negotiating ability of having cash in hand. Then there are additional advantages of an online service like easy application, nearly instant approval, 24-hour online access to your account and a money-saving automatic payment option. But the best is their interest rates being 1 to 2% lower than the national average.

Before making a commitment for an online auto-financing loan, consider the additional requirements. If you’re buying a classic car or motorcycle, loan products are limited, with more restrictions. Also online lenders are reluctant to fund loans under $7,000 or over $75,000.

Bad Credit Can Be An Issue

For fast auto loan financing online, credit problems are more of an issue than with dealerships. But credit problems can be overcome with lenders offering higher risk loans. These have more restrictions and slightly higher rates.

First of all decide on your figures. How much exactly are you willing to pay, how much do you give for down payment, how much per month? Be realistic in these assessments to accurately compare financing options.

Eventually the monthly maintenance and annual fee will end up costing you more than you want for credit. If you want a card, look for one that has one of the two but not both. To be better organized, make a quick comparison chart with the card names, set up fees, interest rates (variable or fixed), monthly and annual fees. Mention also if a single late payment can lead to increased interest rate. Cards may be expensive but worth reestablishing your credit with, if you look for the best deal around.

Differences On Interest Rates

With these issues settled, decide where you’ll find the best terms. As a general rule, the best interest rates are from credit unions, followed by banks and dealerships being the worst. As per specific promotions, dealerships and online auto financing establishments can also offer competitive rates.

Next, comes applying for the loan. Apart from information on the car, most lenders will inquire about income and expenses. Ensure you keep rent documentation, house payments, pay stubs, tax returns and other sources of income and assets with you.

There’s a world of difference between used auto financing and new car financing. While the former makes better deals than the latter, it doesn’t apply to used car financing there are quick loan finance available as well. Used cars being less profitable for lenders and more risky, there are a lot more restrictions and higher rates than new car loans.

Finance Debt Consolidation- Contributions Released

Days have become frightful and unpleasant for you, as the debts have abruptly deep-rooted, and with the amount with you is not sufficient to repay them. In such a situation, a person looking for external finance as support is quite a normal affair, and you are also seeking for a reliable and sparing finance. Among the various debt consolidation loan schemes, finance debt consolidation is preferred highly for its rational policies and the monetary aid that it provides to debtors. Finance debt consolidation can be regarded as the full stop to the phase of debts. The finance can be availed in an easy procedure and also can be borrowed with or without pledging property as collateral.

The policies of finance debt consolidation and the funds are released to consolidate the multiple debts. It enables or supports to dissolve the debts in a single amount which shows a positive effect. The consolidation of numerous debts and being obligated to a single lender not only subtracts the debt burden drastically but also provide relief of the mental stress arouse due to the debts. The advantages of finance debt consolidation are not limited to consolidating the debts but services are carried on to and show the path towards a stable solution. The provisions of finance debt consolidation is also rewarding when debtors are paying a higher rate of interest.

Finance debt consolidation prop debtors with good amount, but the amount that can derived depends fully on the pledging collateral ability. If the collateral has a higher equity then lenders consider applicants to acquire more amount. As every loan plan has a repayment term and is indispensable, finance debt consolidation also format the reimbursement schedule in a manner that debtors can easily repay. The practice of consolidating of debts has underwent a long passage and from the traditional method to the sophisticated technology. Applicants can approve the loans by furnishing details of credit profile accurately from home or office. In, the conclusion, it will be helpful to indicate that finance debt consolidation shower its benediction under different tags, like debt consolidation loans, easy debt consolidation loans, instant debt consolidation loans and such for the well being of the debtors.

Debt Settlement Or Bankruptcy – A Financial Comparison

The financial implication of debt settlement as compared with bankruptcy is very different despite the fact that both these solutions are considered debt relief options. Once you get a debt settlement deal finalized, your debts will come down by a fixed percentage as determined between you and your lender.

This means that the total amount owed will come down and only the balance amount needs to be repaid. As far as bankruptcy is concerned, the actual amount that shall be waived off is never fixed. It all depends on the total value of your assets and the value that the court official is in a position to recover by liquidating the same.

The only guarantee that you enjoy is that the debt shall be discharged no matter what the value of the assets are. Another significant difference between settlement and bankruptcy is the impact on your finances. Bankruptcy involves starting from scratch.

If you do not have a job, you will find it difficult to get another job with a bankruptcy in your credit report. On the other hand, a settlement is a very simple process and you just need to continue your existing job.

If you go in for a new job, you need not specify that you have discharged your debts with the help of debt settlement. Mentioning that you have opted for bankruptcy in the past is mandatory as far as the law is concerned. No such compulsion exists as far as settlement is concerned.

As far as financial benefits are concerned, there is no doubt that settlement is much better. This is because you will be permitted to retain your financial life style and you just will be required to repay the balance amount payable after the waiver has been finalized. In case of a bankruptcy, you need to start from scratch.

You will lose control of all your assets apart from the exempt assets. Further, if you are ordered by the court to go in for a Chapter 13 bankruptcy, you will have to spend at least twelve to eighteen months trying to finalize the debt repayment program and spend another three to four years repaying all the debts.

As far as expenses are concerned, you can be certain that the cost of a debt settlement will not exceed fifteen to twenty percent of the total amount owed. On the other hand, the cost of bankruptcy will involve court fees as well as the fees of various bankruptcy professionals that you employ.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks” that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:

What You Must Consider When Filing For Bankruptcy

Many people think that bankruptcy will be the easiest way to relieve them of their debt problems, and they jump into it without considering everything that comes along with it. Yes, it may well relieve the debt problem, but it is not always easy, and it should certainly be used only as a last resort.

Even though the filing itself is relatively easy, the whole process – just like any other legal proceeding – could be a little painful. The reason is because you will have to convince a judge that your filing was absolutely necessary and you will have to expose all your financial history, leaving it wide open to objections by your creditors. And do not expect your creditors to just settle for 10 cents on the dollar, even though it may happen.

Filing for bankruptcy is a drastic step, and you have to consider very carefully the long term impacts it will have in your life.

You will lose any credit cards that have outstanding balances, and those that you have no balance on may choose to close your accounts. You will also find it near impossible to get a home loan or other types of loan. And if a loan is to be approved, it will be at an incredibly high interest rate.

Keep in mind, for example, that many debts are not covered when you file for bankruptcy protection. For example student loans, back taxes within the past three years and other debts are generally exempt and not covered by bankruptcy protection.

This situation will last for ten years, and during these ten years you will need to maintain an excellent credit record if you want to regain the banks trust. All interest rates will be higher since a bankruptcy is always regarded as the most negative criterion on a credit report. This applies for a new car loan (expect to pay thousands more during the life of the loan), department store cards (if they issue you one) and even a secure credit card.

Not only will you suffer financially, but you may also be required to forfeit real assets like jewelry, boat or Recreational Vehicle, depending on when they were acquired. Some states however make an exception for your car and your primary residence. If you own rentals, they may not be protected.

And you also have to consider that the process can get very expensive, more so if you use an attorney. The procedure is not free: the fees that Courts charge have gone up in the last few years.

On the upside, you will get relief from the stress caused by your debt, and your creditor’s phone calls will stop once they are notified. Your wages will not be garnished and any foreclosure action will be stopped. By taking action sooner rather than later, you will start to build a new credit history that can be better than the past one.

And this can be an advantage since you won’t have access to credit cards. It is of utmost importance that you change your habits and be extremely careful next time.

Even though people file for bankruptcy for different reasons (many of which are unpredictable i.e. loss of job, medical bills, etc) it can be a wakeup call to change any bad money management habits we may have.

Insurance – Tool for Personal Finance Planning

Financial planning is must for every individual. When we start saving money for our goals, there is always a fear of the unknown. We can’t predict the future. So just by doing investments we cannot ensure that all is well. Buying insurance is a good way to protect yourself, your family & assets. Learning some basics of insurance will help you invest wisely.

You are working hard every day to earn a decent living standard. Based upon your monthly expenses, you can do some savings. You do financial planning based on your current health & wealth status. But with time as your age increases health problems can also surround you. It may be major surgery, a fracture or an infectious disease. Every medical problem poses a hurdle in your path. In such conditions having an insurance policy is a big advantage, not only it provides financial support in a crisis but it also gives a sense of security.

Insurance plans can be different types like endowment plans or unit linked plans. All these have their importance. Selection of a proper plan is not easy. You may have to take the help of an investment expert. For example the amount of life cover required is not same for all of us. It is calculated using parameters like your age, current assets, total liabilities, monthly income & number of family members. So, take proper advice to find out what is best for you. Insurance helps your personal finance in one more way by offering tax benefits.

Insurance policy is a contract between the insurer & policy owner. A fixed amount has to be paid by the policy owner either in lump sum or annually, which is called as premium. The premium is calculated on the basis of insurance cover required & the duration of insurance. Depending upon the term & conditions mentioned in the policy one has to pay the premium for certain years, known as premium paying term. If you fail to do so, the policy will be lapsed. The maturity value or sum assured is the amount guaranteed by the company in case of death of policy owner or when the policy term ends. The life cover may continue after the premium paying term, in some plans, till whole life.

Buying a policy is very easy nowadays. You can now buy them online. All leading insurance companies are offering this service. You can easily compare different plans & choose the perfect one. There are some other sites which provide you with insurance plans of different companies, you just have to submit some basic information about yourself & all the plans will be displayed in a tabular form.

To sum up, life insurance is an important tool when planning your personal finance. Due to availability of so many options in market choosing the right one is difficult. Take the help of a financial advisor if you are not sure about it. Live a happy & secured life!

Manage Your Debts Efficiently With The Debt Consolidation Loans

Are you feeling puzzled managing multiple debts against your name? Are you having nightmares about lenders standing at your door pestering you for repayment of their money?

If the answer to the above questions is ‘yes’, then it is definitely high time you start considering rearrangement of your finances.

Debt consolidation loans provide an effective means to repay all your pending multiple debts through a single loan amount. Thus, debt consolidation loans enable you to replace the pending debts with a single loan. It is definitely more easy and convenient to handle a single loan and a single lender than multiple loans and multiple lenders.

Debt consolidation loans have a longer repayment period. This helps to reduce the monthly instalments you pay. So, you can save a considerable amount of money each month with the debt consolidation loans, as compared to what you were previously paying for the various debts.

Usually, it is seen that people get into the trap of multiple debts due to the overuse of credit cards. A spendthrift person gets tempted by the gleam of ‘plastic’ money and do not realize that he is the one who needs to pay the ‘real’ money. Then, there are some genuine reasons due to which people suffer from the problem of multiple debts. For example, a person may be bed-ridden due to some illness or accident, as a result of which he might not have received the paycheck in full. This may lead to accumulation of debts owing to the inability to repay the monthly bills.
Whatever be the reason… now, there is no need to bear the brunt of unmanageable debts any longer.

Apply for Debt consolidation loans [] fast. A thorough research and online comparison of loan deals from various lenders will enable you to get a competitive deal.
Make sure that you make sincere efforts to repay the loan in time. This will not enable you to get rid of debts completely but also help you improve your credit rating.
So, do not delay. Bring order in the financial aspect of your life and enjoy a peaceful sleep.

The Credit Preview for Equipment Financing and Leasing

Many companies have been affected by the fluctuations in the economy the last couple of years. Sales would surge one month, completely go flat the next and it has been difficult for many of us to manage cash flow and the repayment of debt. Company and small business credit has taken a hit and damage has been done, yet we still push forward to improve our businesses and try to grow them into the future. The situation makes us hesitant to take on new debt or try to finance new equipment even though it is absolutely necessary if we are to survive. New equipment will allow us to offer the latest product or services or simply keep up with the growing market trends in our industries.

It’s time to apply for that new machine but we cringe at what the procedure might reveal. A solid solution which many progressive finance companies are offering is called the Credit Preview; it is a step which can take a lot of pain out of the application process. A preview doesn’t cost you anything and will provide valuable information on the condition of your company.

The Credit Preview entails taking your basic minimal business and financial information and reviewing it to determine if there is good potential for a finance approval without requiring all of your tax returns, financial statements, debt schedule, etc. It will save you time, stress and energy since the preview will offer quick feedback on the chances of getting approved. Finance companies understand it doesn’t make sense to dig out 2-3 years of financials if your business has no chance for the type of approval you’re wanting.

A standard Credit Preview only requires the following:

1) Credit Application – should be completely filled out, legible and be sure to sign

2) 3 months of current bank statements – all pages should be included since the underwriter is trying to determine the money coming into your business

3) Vendor Quote or Proposal detailing how much equipment, labor, etc. is involved. The underwriter wants to see how much “soft” costs like labor and consultation is part of the purchase as opposed to “hard” costs like equipment and machines.

That’s all that is needed. The Credit Preview process will provide a much better analysis than those online “quickie” finance credit reviews which only checks your credit score; the preview checks 8 different areas to get a true picture of where you stand and how to move forward. Even with damaged credit, at least you will know some of your alternatives.

The Evolution of Financing a Small Business

For years I have read the popular business magazines, all having so called experts write articles for entrepreneurs on how to finance their business. “The top 10 strategies for financing your start-up”, “How the SBA can help your small business”, “Personal credit is the key for entrepreneurs” and so on. In most cases I’m willing to bet those writing these articles are journalists that have never had a successful start-up. How can I come to that conclusion you may ask? Because of the bad advice they give.

Going to the SBA for a loan, using your retirement funds, tapping all your personal credit cards or giving up 75% of your idea to an investor are all ideas I have read from the popular magazines. The thing is, in every one of these cases you are using your personal credit and not separating you from your business. You are putting 100% of your credit and assets at risk.

I have worked with thousands of small business owners who have been very successful without the need to use their personal credit cards, retirement funds or fill out stacks of paperwork and wait months for a response from SBA backed banks. In fact I have seen entrepreneurs with access to hundreds of thousands of dollars without giving up a percentage of their company or having any of the money show up on a personal credit report. Sounds good right? Well, there is one catch. You will need to go through the evolution of financing your business. You can’t start at the end. This is the problem with most entrepreneurs. They want fast results and aren’t willing to wait. By taking the quick fix they give up ownership and put their personal credit at risk.

The evolution of business financing starts with a solid foundation for your business. A solid foundation is comprised of several parts. The first of which is structuring your business entity appropriately. I recommend to every entrepreneur that you use a Sub Chapter S-Corporation, C-Corporation or Limited Liability Company to operate the business. This is the first step in separating the business owner from the business. The next phase of building the solid foundation is to ensure the business is in compliance with the lending markets. Several business owners are surprised when I tell them most lenders we work with when reviewing a credit application will first call directory assistance to see if your phone number is listed. It’s a simple check, but it’s the first flag that will be raised for them if the business isn’t listed. Why would a lender finance a company that doesn’t want anyone to find them?

There are hundreds of other due diligence phases that a company must go through in order to ensure the owner and business are not considered “high-risk” for obtaining credit and financing. The more a business has in place to show that it is a real business the more likely a lender will grant credit to that company.

The second step in the evolution of small business financing is to define what the business does, what makes it unique and why it will be successful. The business owner must create a one-page “sales pitch” for the business, also referred to as an executive summary. The executive summary can be used when applying for credit, seeking investors and developing marketing campaigns.

Business owners need to keep in mind when seeking financing that the most important thing for a business is to produce a profit. Without revenue there will be no profit. Marketing the business will help produce the revenue and the executive summary will help create the marketing.

Third, a company must build a business credit report separate from the owner’s personal credit. By working with trade credit, the single largest source of lending in the entire world, a small business can tap into limitless leverage for buying goods and services they need to start, run and grow the company. The beautiful thing about trade credit is in many cases it’s free money. If a vendor grants terms of net 30, a business owner has the ability to use the vendors goods or services for 30 days without interest before they need to pay the vendor. The other wonderful part of trade credit is that there are companies offering products and services small business owners need who will report the credit to a business credit bureau. The reporting of the trade line will create a business credit profile separate from the personal credit of the business owner. Eventually the business will be able to access more and more credit under the business name only if it maintains a positive business credit score.

The more credit received under the business name the more likely other companies will grant that business credit. No one wants to be the first in line to grant a business $50,000 in credit, but if others already have they will be more inclined.

Fourth, is to use the owner’s positive personal credit score in combination with a positive business credit score as leverage for obtaining hundreds of thousands of dollars in unsecured lines of credit for the business. The key is to do this with lenders that don’t report the accounts to the personal credit bureaus but rather the business credit bureaus. Many banks offer business lines of credit and loans, however finding the right type of product from these banks can be tricky. A business owner needs to make sure the loan or credit line they apply for reports only to the business bureau.

By keeping business debt separated from the personal credit report, a business owner has the ability to keep their personal credit score high. The more a business owner uses their personal credit in the business, the lower the score will drop. Credit scores determine the ability to buy homes, rates on car insurance, and several other factors. Keeping a personal credit score above 720 is extremely helpful in the business owner’s personal and business life.

The fifth stage of the business financing evolution is to look at other alternative financing the business may be able to obtain. Leasing is one key area. Why use precious cash reserves to buy equipment or software when you can make a small monthly payment? In addition 100% of the payment on the lease is expensed.

The final stage deals with investors. The majority of investors don’t want to look at companies unless they have already progressed through the business evolution stages outlined above. Keep in mind that an investor is not just investing in a business they are investing in the business owner as well. If the business owner has tapped every available resource for credit and cash personally and never taken the time to establish business credit, financing or lease arrangements an investor will toss that company’s proposal in the garbage quickly.

Not every business owner will find themselves at the stage they need an investor. They may have a combination of enough cash-flow, credit and financing in place from the early stages that they won’t need additional capital. However, if a business needs to grow with the help of additional capital or financing there are two typical ways an investor will look at the deal.

The first is through debt financing and the second equity financing. Debt financing with an investor is where they provide a loan to the business in exchange for a pre-determined amount of interest. Equity financing is where an investor puts money into a business in exchange for ownership. There can also be a combination of debt and equity.

The majority of small business owners believe this is where they should start, with the investor. In reality this is the last place a business owner should look. Investors want to use their money to grow a business by having the money spent on revenue generating activities. The typical small business owner that goes to an investor says “I need a million dollars to start my business.” When asked what they’re going to use the money for they say, “start-up costs and payroll”. This is where the investor walks away. No investor wants to fund a project so the business owner can make payroll, buy office furniture, equipment or office supplies.

This is the perfect example of the evolution of business financing. The company starts out as an idea, then structure is put in place. Next, the business becomes real with licenses and a sign outside the building. Next, the business creates an identity with the right message. Then the business obtains trade credit that separates the personal and business credit in order to obtain larger lines of unsecured credit. All of which is used to build the infrastructure of the business without maxing out all the available credit for the business or business owner. Last, the business has the ability to seek investors because it has done everything required to create the solid foundation.

Simple Ways to Manage and to Limit Family and Personal Credit

Experienced shortage of money? Have difficulties in managing your credit? You are one of those who had trouble with their credit.

Credit is a byword everywhere because seldom can you find a person who do not have any form of credit. It is sometimes beneficial provided you know how to manage and to set limits to your personal debt, otherwise, you will be caught off-handed and experienced budget deficits and shortage of funds. This problem can only be solved through careful planning and management of one’s credit and finances.

Credit management implies a lot of things to companies and individuals alike. To some it
means the imposition of policies and rules aimed at mitigating and reducing the debt, while to others it means avoiding extending credit terms to bad debtors.

Despite the difference in meaning, it only means one thing, that is, the management of one’s finance to reduce and to manage personal debts. It takes a lot of motivation, dedication and courage to control one’s finances.

To regain financial stability, pay your debts and loans on time because your credit record is not only affected by the amount you pay, but also on how quickly you pay them. Most often, late payments of loans and credits had their associated interest fees, the greater the amount borrowed, the greater the interest once you defaulted on them. Good credit score is important in obtaining financing from banks and other financial institutions.

To control your monthly expenses, develop a budget scheme to save money and to set aside payments for outstanding bills. Prioritize payments for important items, like food, medications, education and gasoline. If you plan to have a vacation or a holiday, set aside money ahead of time. Most important of all, save money for emergencies.

Reduce your interest obligations by monitoring the interest rates of your credit cards, mortgages, personal loans. Make sure that interest rates are not above 12%, otherwise negotiate with your creditor to get it lowered. If it hesitates to lower the rate, transfer to another financial institution that has lower rate. Monitor and pay your interest obligation monthly.

When paying for interest rates, pay first those with highest interest rate and largest debtor because it will give you best satisfaction.

Before applying and committing for a loan, know and understand the credit agreement, interest rate and terms offered. Select those that has the smallest term and fixed interest rates.

If you fail to pay your loans and creditors hunt you, take time to call them and ask for extension or credit workout scheme. Majority of them want to work with you to get things sorted out, rather than bring the matter to court.

If you have defaulted on your credit cards, call the credit card company and ask for their assistance. Ask them and negotiate to reduce your interest rate. Some firms are willing to decrease the interest rates because they do not want you to default on your loan and they want to get the principal amount back.

If all steps failed, always make it a point to consider debt consolidation or consumer credit counseling agencies your last resort. Some of these companies can help you by offering debt reduction plans to help you pay your debts.