Consolidating Your Debt Is the Best Solution to Your Debt Problem

Are your debts getting out of control? Are you unable to manage your multiple debts? If your debt is giving you sleepless nights, it is important to seek help quickly. Remember, ignoring your debts won’t make them go away. It will only make things worse.

If you are in debt, here is a list of questions you should ask yourself:

Question 1

Are you finding it difficult to meet your monthly repayments?

Answer

Consider rolling all your multiple debts into one monthly repayment. It will:

>> Reduce the amount you pay each month; and

>> Make your debts easier to manage.

Question 2

Do you have multiple debts (i.e. mortgage loan, credit cards and store cards)? Are you having trouble managing these multiple debts?

Answer

Multiple debts means:

>> Paying multiple sets of interest; and

>> Finding it hard to stay on top of your multiple debts.

So, consider consolidating your debt because it will:

>> Enable you to keep track of your debts; and

>> Enable you to pay down your multiple debts.

Question 3

Do you have negative listings and defaults listed in your credit file?

Answer

If you do have a bad credit history, you will find that your loan options may be limited.

Question 4

Do your multiple debts have high interest rates?

Answer

Consolidating your debt should enable you to get a loan with a lower interest rate.

Question 5

Do you have equity in your home?

Answer

If you do have equity in your home, you may be able to use it to pay down all your multiple debts.

Question 6

When is it the best time to consolidate your multiple debts?

Answer

You can consolidate your multiple debts:

>> Whenever you consider you are ready; and

>> When you are unable to manage your multiple debts anymore.

Before you Borrow

If you are thinking of borrowing money, here is a list of steps you should consider and which may help you:

Step 1

Use a budget planner to work out what you are spending now.

Step 2

Use a borrowing power calculator to calculate:

>> How much you can afford to borrow; and

>> If you can afford the repayments.

Step 3

If you decide to borrow, shop around for the best deal and take time to compare:

>> Interest rates;

>> Product features on offer; and

>> Fees and charges.

Step 4

Know who you are dealing with. This means anyone engaging in credit activities (e.g. anyone providing credit or providing credit assistance to you) must give you:

>> A copy of the “Credit Guide”; and

>> A “Credit Proposal Disclosure Document “(CPDD), with the required information listed such as their Australian Credit license (ACL) number, fees and details of your right to complain.

Case Study

Judith is a single mum with two children. She is struggling to pay her multiple debts and her payments are now three weeks in default.

Judith met a professionally qualified finance broker who was able to help her:

>> Negotiate a one loan repayment plan;

>> Reduce her monthly repayments; and

>> Save her money on interest charges.

The benefits available to Judith are best illustrated in the following simple example. The example assumes that Judith has a mortgage loan of $300,000 and a credit card with a credit limit of $12,000:

Current Home Loan Credit Card Total Loans Your New Loan

Loan Amount: $300,000 $12,000 $312,000 $312,000

Interest Rate: 6.25% 18% n/a 4.75%

Loan Term: 25 years n/a n/a 25 years

Monthly Repayment: $1,979.00 $200.00 $2,179.00 $1,778.00

Total Interest Payable: $293,702 $18,931 $312,633 $221,630

From the example above you can clearly see that:

Judith has saved interest of: $91,003.00

Judith’s monthly repayments will be reduced by: $401.00 per month

So, if your debts are getting out of control or you are struggling to make ends meet. It is important that you seek help from someone who can fix your debt problems. This is the time for you to contact a professionally qualified finance broker who will help you to obtain a loan for consolidating debts with:

>> One monthly repayment; and

>> One lower interest rate.

Useful Tip

Avoid seeking help from someone who makes unrealistic promises about getting you out of debts or who advertises that they can help you, no matter how much you owe. Remember to choose a reputed, qualified and experienced finance broker who will go the extra mile in solving your problem.

Can a Bad Credit Report Stop You From Landing Your Dream Job?

Bad credit can affect more than you think!

Today, we live in a fast-paced world where employees are crucial to the success of a business. Businesses rely on a high level of productivity and want their employees to be diligent and work efficiently.

During these tough economic times employers are taking extensive measures to select the right candidates. It’s common for human resource departments to do extensive background checks, including requesting and scrutinizing credit reports.

Why is your credit report relevant?

For starters, a quick peek at your credit report can reveal a lot about your dedication, level of organization, and ethics. If you are not managing your own financial life properly, most employees believe that it could be mirrored into your work life.

Keep in mind honesty, reliability and time management skills are important to every business. With so many good candidates to choose from, businesses are in the driver’s seat, and can hire the cream of the crop.

3 Ways Bad Credit Can Hurt Your Job Chances:

Employers know that bad credit can affect every area of your life. Being hounded by collection agencies can be extremely distracting to your home and work life. It can cause a lot of stress and undue absence, as well as affect your mood and level of performance.

Employers might believe that you don’t take the contracts you sign or your obligations seriously. To some bosses, a bad credit report can make you look irresponsible and untrustworthy. Above all else, businesses want people with a proven track record for following through.

A bad payment history could show potential employers that you have trouble sticking to a schedule. In such a technologically-advanced age – with email reminders and late payment notifications – there are few excuses for forgetting (or mismanaging) your finances. Chronic late payments could send the wrong message.

Bottom line: A company’s reputation and profitability depend on their employees. Good employees are their bread and butter so to speak.

Which is why businesses need to hire people who are productive and dependable. They want employees that will show up on time, follow through on their commitments, and manage the tasks they are given, on time.

The fact of the matter is that many bosses believe that if you can’t manage your own affairs, you can’t possibly manage theirs.

Nowadays, employers are relying upon personal and financial background checks before deciding who to hire.

Keep this in mind if you suffer from bad credit.

A Brief Synopsis of Small Business Administration Loans

The loans offered by the US Small Business Administration are regarded as the most reliable funding option available for the startup companies. Affordable repayment option as well as low rates of interest seems to be the excellent choice for the companies who are in need of monetary support. However it is important to remember that this government agency of the United States does not pay loans to small companies directly. However, it develops effective guidelines for the funds that are given by their partners that include community development companies, moneylenders as well as micro lending companies. The Small Business Administration also gives the warranty that the funds granted by these companies will be repaid within the scheduled period of time.

Although these loans are the best financial option for the startup companies, the other companies that have wide access to other types of funds cannot access these funds. Here are the four types of SBA loans that are available for the businesses that cannot access to other kinds of loan options.

The objective of SBA 7 (a) program is to allow the small business to acquire money easily. It is the most flexible and the basic type of loan option that is available for a business. It can be used for multiple business purposes such as purchase of equipment or furniture, renovation of buildings as well as repayment of debt and other relevant purposes. The maturity of this type of fund is almost ten years for capital repayment as well as up to twenty five years for repayment of permanent assets.

SBA 504 loan allows the startup businesses to get permanent and long term funding for the purchase or renovation of key assets such as buildings, lands and so on. This type of loan is structured where the SBA offers forty percent of the total cost of the project and the participating lending organization covers nearly fifty percent of the cost. Plus, the borrower pays nearly ten percent of the total cost of the project. This type of program is used to buy buildings, long term devices, build or even renovate facilities as well as repay the debt with the purpose of expansion of business. Under this loan program, the small business qualifies if it shows an average income of nearly five million dollars after deduction of income tax for the previous two years before submission of a loan application.

Microloan program offered by the Small Business Administration is an exclusive loan that is available for small business. A borrower can use this type of loan to buy capital, fixtures, supplies, machines and equipment. This government organization ensures that this type of fund is available for the nonprofit organization who is experienced in dealing with technical operation. However, it is important to remember that this type of fund is not used for the purchase of property or for repayment of current debt.

The Small Business Administration offers low interest fund to the small businesses that are affected by disaster. It is used to repair damaged property, equipment as well as different types of business assets.

Miner Capital Funding, LLC is one of the leading finance company providing SBA small business loan to the customers. One of the popular financial providers for the small business loans, Miner Capital is dedicated in providing SBA bank loans, hard money as well as bridge loans to the US clients.

10 Steps To Reduce Your Debt: Do-It-Yourself Debt Reduction

Getting into debt is easy and worrying about it won’t do much in relieving you from your debt. The best you can do when you have already run into debt is to start working towards reducing or clearing the debt and staying out of debt in every possible way. You can find your own strategy to deal with the debt, but there are several DIY debt reduction strategies and tips you can use to get over your financial woes.

1. Evaluate the debts. Start by collecting all financial documents and printing credit reports so you know exactly where you are with the debts. Most times people get scared just thinking of how hefty the debts are but you will never know until you take the courage to evaluate the debt so you can start somewhere with the recovery. Include all personal loans, auto loans, credit cards and payday loans in this evaluation.

2. Check your current earnings and budget. With the clear debt information, you then must start working towards debt reduction. Calculate the monthly income you get after taxes and basics like mortgage or rent, groceries, utilities and insurance. This way, you will get to find out how much you can spare for paying off the debt.

3. Find ways to increase pay off amounts. Sometimes when you subtract all basics from your income, you might find that you have very little amount left you can use on the debts. If the amount is too small, try and come up with ways through which you can reduce spending. Carpooling is one of the temporary methods you can use to cutback the expenses.

4. Create a plan. Now that you have some money to use on the debts, create a plan of how you are going to handle the debts and pay off. Will you start with one debt or pay a little every month for every debt you have? You might find it helpful to start with debts with highest interest rates or highest balance.

5. Negotiate repayment with your lenders and creditors. Agreeing to negotiate terms will be a plus to your credibility and your lenders or creditors will be more than willing to strike a deal with you.

6. Keep up with the debt reduction plan. Commitment is your only ticket out of debt so keep up with the plan.

7. As you continue with the repayment plan, avoid adding any more debts on top of what you already have.

8. Find better ways to deal with your financial issues besides getting loans. You can for instance, avoid making purchases for those that are not urgent.

9. Leave your credit card at home when going out unless you are going shopping. It will keep impulse buying at bay. In case you are going to shop, make a list of everything you need and stick by it no matter how tempting things in the store appear.

10. In case you take up a loan again, be consistent with your repayment and avoid piling loans. Try and have one loan at a time.

How to Fix Your Credit Score and Maintain Good Credit

One of the most frustrating things is seeing people get out of debt but then get right back into it. Sometimes we know what’s bad for us, but we do it anyway. Next thing you know, you’ve got collectors calling at all hours.

How can you fix your credit score and maintain that healthy credit rating long into the future? It’s not rocket science, but it can sometimes seem that way. So let’s break it down.

Here are some things you can do to keep that credit score healthy and to stay out of debt:

• Payments: Always pay your monthly bills on time. One of the biggest reasons people slip back into debt and bad credit is because they miss one payment and then feel like they can miss another. This is not a good strategy for having a healthy credit history.

• Stay Current on Your Payments: Missing a payment happens. Maybe you had some time off from work; perhaps a family emergency came up. Now you don’t have the money and you miss a payment, but the next month you get back on track. The important thing is to get back on track and to stay there.

• Pay on Time: Are you paying your bills, but you’re paying them late? Many times your credit score will be damaged beyond belief simply because you refused to pay on time. Consider paying your bills with your first paycheck after they come, not before they’re due. Just a few late payments can destroy all the hard work you do to get that healthy credit score.

• Collections: Whatever you do, do not let a collection agency get its hooks into you again. A bad debt that is sent over to the collection agency will stay on your credit report for 7 years! That means for 7 long years you’ll have bad luck when it comes to loans, and you’ll always pay more than the other guy. Don’t let this happen – pay your bills on time!

• Communication: Are you having a tough time staying above water? When you know a bill isn’t going to be paid, calling or sending an email to the company or creditor is always a good idea. And if you’re in debt now, contacting the creditor directly is a lot better than having a collection agency sent out after you.

• Survey your credit reports for precision: It’s extreme enough paying for your own errors; you don’t have to be punished for somebody else’s. Verify that your credit reports precisely reflect your obligations and the installment history.

• Set up installment updates on your bills: Paying on time, additionally called your payment history, means 35% of your credit score.

• Quit utilizing your credit cards as much: This is an alternate method for saying to live inside your methods. While you get your credit card obligation under control, it’s a great thought to depend predominantly on great, hard trade in for the money request to pay off some of your obligations. Get a protected credit card if you have to develop your credit history. Secured credit cards work sort of like check cards.