5 Facts About Debt You Need to Know

There are some things that you really need to understand about debt if you owe money. It’s important to be prepared and informed if you want to get yourself out of a bad situation. Here are 5 things you really need to know.

  1. Bankruptcy is a Last Resort

Bankruptcy is something that is viewed differently by different people. But both conventional views of it can be incorrect. Some people see it as a great get out of jail free card that they can play when in trouble. But that’s not what bankruptcy should be about. It does offer a fresh start but only when all other options have been exhausted. Other people never consider this option even when it could actually help them. Both of these views are equally unhelpful.


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  1. Sometimes, You Should Maintain Debt

If you have debt that is very cheap and there is some flexibility there, then you don’t need to pay it off fast. Sometimes, it can be a very good idea to maintain this kind of debt rather than clear it off. Instead, you should focus on paying other debts that are more likely to cause you financial problems in the long-term. So, if the interest rate is pretty low, this should not be a top priority. Although, it is always best to be debt free, but it’s vital to get your priorities in order.

  1. There Are Good and Bad Debts

Some debts are good, and this doesn’t simply mean that the terms and rates attached to them are good. It can also mean something else. For example, a mortgage is seen as a good debt. That’s because it allows you to get on the property ladder, boosts your long-term financial health and improves your life. So, you should recognize this difference between good debt and bad debt rather than viewing them all in exactly the same way. Doing that is never helpful.


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  1. When You’re in Debt, You Still Have Rights

This is something that many people are still pretty ignorant about. They think that creditors can do pretty much anything they want if you owe them money. But that’s not the case. There are many laws and protocols that need to be followed by creditors, and they can’t simply behave in any way they like. The Fair Debt Collection Practices Act outline what your rights are and what creditors can and can’t do.

  1. Your Interest Rate is Affected By Your Credit Score

Your interest rates will be massively affected by your credit score. So, next time you try to borrow money, you should take this into account. And the further you get into debt, the worse those rates and loan terms will be. This is one of the reasons why so many people get into a cycle of debt. But it has to be avoided at all costs if possible. It’s best to shun loans that offer very high interest rates. It might be tempting when you need money fast, but it’s no good for your long-term finances.


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6 Types of Loan You Need to Understand

There are certain types of loans that everyone should know something about. Here are six that you definitely need to understand.

  1. Small Business Loan

For anyone who wants money in order to start a business, they will need a small business loan. It’s very difficult to get a business off the ground if you don’t have the cash to make it happen. So, you need to make sure that you explore this option if you’re looking to start a business. Getting into debt straight away might not seem like a great idea, but the terms of small business loans tend to be favorable.


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  1. Guarantor Loan

Guarantor loans have grown a lot in recent times. They are perfect for people who have very poor credit ratings but still need to get their hands on some money. They work by allowing the borrower to choose a guarantor, who obviously has to agree as well. That person will then be held responsible for paying back the money if the original lender can’t manage to do so in the future. They take a risk in doing this, but it can be good for everyone.

  1. Peer to Peer Loan

Peer to peer lending is another relatively new phenomenon. It allows people to borrow money from people who are not conventional forms of credit. It works by allowing anyone to lend money to anyone who is looking to borrow. There are many sites that connect people who want to borrow to people who want to lend. The person who lends the money aims to make a profit after the money is paid back with interest.

  1. Mortgage

Mortgages are the most common form of loan for people who want to buy a house. Most of us can’t afford to stump up the cash to buy a home outright, so having the option to take out a large loan is ideal. The repayment term is very long, and it will take most people decades to pay off their mortgage. Visit a site like moneysupermarket.com if you want to lean more about mortgage repayments.

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  1. Payday Loans

Payday loans have got a bad reputation in recent times. But they still offer people a great way to get their hands on money at short notice. Of course, the money has to be paid back relatively quickly, and the interest rates can be higher. But no other form of loan will give you access to money so quickly and so easily. You can go to a website like PersonalMoneyStore.com if you want to find out more.

  1. Secured Loans

Secured loans are one of the most dangerous and risky types of loan out there. The fact that they are secured means that the lender will get your home or car as collateral if you fail to pay it back. That means that you could effectively be made homeless if you don’t meet the repayment deadlines. But it does also mean that your credit score is less important than it might otherwise be.

Four Keys To Putting Yourself In A More Secure Financial Position

Financial security is a big concern for people nowadays. With the recent market crash and recession, it’s easy to see why. Shaky finances can suddenly become a lot worse for the unprepared. It’s also simply easier to live life when you have a lot less in the way of stability as far as your money’s concerned. Financial stability is having the ability to get money when you need it. To live as free of debt and potential disaster as possible. It takes preparation and investment. We’re going to take a look at some of the methods you can use to make sure you’re as prepared as possible.



Your assets

One of the best ways of making sure that you have money you can dip into in emergencies is to have assets that you invest into. If you have a home, make sure you take good care of it and build value in case you ever need someone to buy your house for cash. When banks fail and your accounts become inaccessible, assets are the surest place to find funding you need. That’s why so many prefer buying homes as opposed to renting. With assets, you know you always have money lying in wait.

Your debt

Debt is something you want to get rid of as soon as possible. Carrying debt means carrying obligations that can affect the decisions you make. They tie you down financially and are worth getting rid of as soon as possible. Try avoid credit card debt as much as possible. If you’re worried about debt, pin it down and pay it back instead of shuffling it around. Making more frugal choices can help you make bigger payments and get rid of it quicker. This is often cheaper than taking long-term payment plans as well.

Your credit rating

This is majorly related to both the previous points. A lot of people don’t care about their credit rating, but we just gave you two. Your debt plays a huge role in it and it can severely reduce your chances of accumulating assets. Reducing your debt will help you improve your credit score. This opens the possibility of getting mortgages and loans to acquire real wealth. Paying your bills on time instead of late also plays a big role. Sometimes, checking your credit rating can help you even point out mistakes. Occasionally, points are docked because a company made a mistake.

Your savings

Savings are the other way besides assets to prepare for your future, financially. It’s best to diversify how exactly you go about your savings. Use a high-interest bank that you plan on rarely touching to save in the long term. In the short term, keep physical cash that you can dip in and out to when you need it. It’s also a good idea to set up a separate emergency fund. Beyond that, stop accumulating stuff that you no longer use and need. Clear the clutter from your home and start selling unwanted stuff. Savings need to be built over time but this can give you a starting boost.

Borrowing Basics: What Is A Hard Money Loan?



You might have heard the term ‘hard money loan’ before – but many people investing in real estate fail to understand what it means. We’re going to go through everything you need to know about hard money in this guide, so read on to find out more.

What are hard money loans?

Hard money lenders allow people to borrow money against the value of their real estate – or property they intend to buy. They are often more expensive than normal mortgages, but there are plenty of benefits. Lenders will offer loans much quicker than a typical bank, so it can give you access to important money sooner. And, they won’t base the loan approval on a credit score.

Who uses them?

Many different people use hard money loans. But, they seem to be most popular with property investors and home flippers. Investors can use the funds to buy a property – sometimes up to 100% of the value. They can then invest a little more in renovations and improvements, and sell on to make a profit. However, people with bad credit can also use hard money loans. If they want to make home improvements, for example, then a hard money loan is issued against the value of their home.

What types of hard money loan are there?

There are various types of hard money loans. According to Hard Money Phoenix, these include mortgage financing, bridge and residential equity loans. However, it’s important to understand that when you borrow hard money, they are often referred to as loans ‘of last resort.’

Who lends the money?

Hard loan lenders tend to be individuals or small groups or companies. It’s important to understand that not all hard loan lenders are of sound quality – and many could be classed as loan sharks. However, if you can find a reliable local hard money lender, they can be a valuable asset.

Are there any dangers?

As with all types of financial products, of course, there are plenty of dangers of taking out a hard money loan. Some interest rates can be much higher than typical mortgage rates – even those in the subprime category. The rates are understandable, as the risk of lending with no credit score is a big one for anybody handing out hard money loans. But, the risk for borrowers is a big one, too. You could lose your home if you fail to make your repayments. And, if you don’t pay it back early, you will end up increasing your repayable amount by a significant amount.

So, hard loans are best for the short term?

Absolutely. High-interest loans will always have their place, and they can be an excellent way of raising funds quickly. If you borrow money through a hard loan and can pay it back as soon as possible, they can often make sense. This is why so many real estate investors use them as a vehicle to finance buying property. They can borrow and pay for the home, and sell it on at a profit in a short space of time. This limits their exposure to interest and protects their profit margins. To conclude, be careful when using hard money loans – and pay them back as quick as possible.

How To Get Your Finances In Order Before You Buy A House

Mortgage lenders have learnt their lesson since the crash of 2008. They’re no longer in the business of doling out 0% deposit mortgages at ten times earning. No, thanks to the getting the fright of their lives back in 2008, they’re behaving more prudently, like a bank should.

That means that it’s a little more difficult for people wanting to buy apartments or houses. Now they have to actually have to prove that they can meet the mortgage repayments and have enough money left over to meet their other obligations.


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Your Other Debts

Generally, creditors want to be able to get a picture of your general financial position before making you a loan. Part of this will involve investigating your other debts and assessing whether this will affect your capacity to repay a loan.

Most lenders operate on a 45 per cent rule. In other words, they want to find out whether your debt payments, plus the new mortgage payments, will come to less than 45 percent of your income. That means that if you earn $4000 a month, creditors will usually require that your loan repayments amount to less than $1800.

For many people, this is a make or break situation, especially when you consider how much personal debt many people have. If you have outstanding debts on credit cards or even an auto loan, try to pay it down before applying for a mortgage. Large, outstanding debts may affect the terms of your mortgage, and prevent you from taking one out altogether.

Improve Your Credit Score

Now that banks are being more cautious about who they lend to, credit score requirements have increased. Most banks require a score of at least 600 to get a basic package. Again, the terms are likely to be unfavourable with such a low rating, so it’s worth trying to improve it. At higher scores you’re more likely to get more loan options and better rates.

What many people forget is that your credit rating doesn’t just affect your relationship with the bank, it also affects the seller. Real estate agents and private landlords are interested in your credit score because it is a sign of whether you’ll ultimately pay up. Real estate agents want to do well for their clients too, so that means choosing the best buyers.

If your credit score is low, it might be worth investing in a personalised credit report. This will detail your credit history and enable you to find out where you’re falling down. It also gives you an opportunity to dispute any issues in your report that inaccurately reflect your credit performance.

Prepare For Costs Of Closing

The costs of selling are high. For example, if you’re selling a house for $500,000, you’re likely to be paying around $10,000 in direct costs. Though you may be able to claw these back later through seller credit, the lender does not know that at the outset. Therefore, there needs to be some money set aside for seller costs before you apply for a loan.

How Can I Improve My Finances?

It’s a question that you’ve probably asked yourself a million and one times. But finding an answer can prove to be one of the most difficult challenges you’ll ever face. There’s nothing worse than feeling like you’re stuck in a financial rut. Don’t fear; help is at hand.




We’ve all made mistakes in the past. Don’t let them define your future. Instead, use them as the springboard for working your way to a brighter future. Vow to make this the starting point for a better life, and you will not go far wrong.

Here’s how.

Get Yourself On The Property Ladder

Strictly speaking, buying a property isn’t for everyone. For example, if you are a traveller that wants to experience different parts of the world, renting is for you. In most scenarios, though, getting on the property ladder is a step in the right direction.

A purchased property will become your biggest financial asset. This has to be considered a better option than renting, which is essentially paying off someone else’s investment. Stepping onto the ladder can be difficult. But these tips should help you overcome the most common issues for those with bad credit.

Once you are on the ladder, you’ll constantly be building a better financial future. Better still, you’ll have far more freedom for making improvements to the home too.

Consolidate Debts

Nobody likes being in debt. While mortgages or buying a car on finance are normal processes, owing money elsewhere can be scary. Worse still, a change of circumstances can make it very difficult to make those repayments. This can bring very serious consequences.



Managing your debts is crucial, though. One of the best ways is to take out a personal loan to clear off those existing debts. Consolidating could save you a lot of money through potential extra charges. Moreover, it’s far easier to control one account than the six or seven currently open.

You’ll be helping your financial situation, and your emotional health too. Don’t underestimate how important the latter can be. A clear mind is your most powerful asset.

Increase Income

The best way to have more money at the end of each money is simple. Earn more of it. Of course, there are many steps you can take to reduce your monthly expenses. However, having more money to start with will give you a far greater platform.

If you cannot ask for a raise at work, then you’ll have to make money elsewhere. Starting an online business on the side can be a fantastic option. And if it becomes successful, you might be able to drop your current job altogether. Alternatively, you could make use of your skills and talents on a freelance basis.

Another option that many people like to take is making investments. There is a risk involved here, and not everyone will want to play with their savings. Nevertheless, when you get it right, it can open up greater financial freedom.

Whatever method you take, increasing your earnings will make your life a lot better.

Loan defaults- Bank withdraws cash from account

Bankruptcy or Debt Consolidation
Bankruptcy or Debt Consolidation

A person needs to meet a whole lot of criteria before taking up a loan from a bank. No matter which bank it is, the check list is almost the same for each and every bank. The first and top most term is that that the borrower needs to have an account with the lender bank with a certain amount of cash in it. Until and unless he or she has an account with the bank, the bank will not be interested in lending money to the person. This is due to a simple reason that the bank needs a security before issuing loan to a particular person.

In case of secured loan that involves in mortgaging property for taking up loan, the lender simply takes over the property and sells it in case the borrower fails to pay the EMIs and does not pay back the loan. But in case of unsecured loan, the bank has nothing to sell in case the loan does not get paid or there are miss outs on the EMIs. Hence, the bank takes out cash from the borrower’s account in order to fulfill the EMI or the interest amount.

There are a number of cases where loan defaults- bank can take your cash from account. It also depends upon the person’s reputation with the bank and how he or she has been paying the interest amount and the EMIs in the past. Though the lender keeps a complete check on the borrower’s background before lending the loan, there might be a scenario that the borrower has been very punctual in paying the amount to the bank and suddenly the default occurred due to some sudden accident or loss of job.

In such cases, the borrower must have a word with the bank or the lender and consult for further transactions. If the reputation of the borrower and past bank statements are good enough and the situation is real, the bank gives some extra time to the borrower to pay back the amount. But in case, there have been a continuous delay in paying the EMIs or the person runs away from paying it knowingly then the bank increases thee interest rate charged. They send notice to the borrower about the defaults and even then if the borrower does not pay the amount, the bank starts withdrawing cash from the borrower’s account in order to pay the EMIs.

They even send their representatives to the borrower’s address before doing so in order to make sure that the borrower is aware of the loan defaults and is still not paying the amount. Then there is the court’s notice that is sent by the bank in order to get a juridical solution for the loan amount to be paid. Hence, the bank has the right to take away cash from the borrower’s account in case the borrower does not take up the responsibility of paying the EMIs or the interests on time and has a loan default situation every month.

Personal Loans Help Accomplish Your Resolutions and Cherished Aspirations

Personal Loans
Personal Loans

Personal loans are one of the most timely and effectual financial help lines which are known to add some momentum and mirth in your life. As long as these support lines are there you never feel that you are actually out of back up or help lines. This is the reason why there is an amenity of entities which are going to be come up to you with the most resourceful financial back up in the form of personal loans.

Online Personal loans do help you a lot to accomplish your resolutions and cherished aspirations in the truest fashion. None of your personal attainments and aspirations could remain incomplete if you have the support of these equitable support lines. There is no denying that in your urgent moments nothing is more important than fiscal help and the help comes to you in the form of these personal loans. They are no less than the Samaritan in your life.

Be it the quick arrangement of finance for a personal need, the quick purchase of a car or the speedy renovation of your domicile or house these personal loan facilities are always going to be of good or rather great help to you. You can even choose to use the leverage of these loan facilities in order to meet up with your educational expenses as well.

The loan programs are actually masterminded in such a fashion that common people can take huge or at least ample advantage out of these systems. No matter how urgent and uncontrollable your situation is you are going to get a better hand or control over the crunch situation. The terms are quite easy. The loan is sanctioned pretty fast. In the same way you get the chance to repay the entire amount in comfortable breaks. While opting for these loan facilities you should be thankful to the financial institutes for having such less bothersome options in store for you.

At the time of applying for the loan facilities like the personal loans you should be pretty amazed because you will come to envision features like pre-payment options or provisions. Truly these provisions are endearingly craved by those communities which are always in the lookout for these loan systems. Professionals as well as salaried persons are going to have great tributes or reverence to pay to these systems. One particular loan system is actually going to perform a hell lot of functions which are incredibly optimistic and encouraging.

If you really intend to go through the whole nine yards in life then personal loans are going to be your best option. They are not your last option but the most important and prime one that can open up the flood gates of possibilities in life. You will get these loans at rates which are commensurate as well as comfortable for you. So, relax and play cool because the game is on and you are in the driving seat. Know more about  https://onlinepersonalloans.com/

Want More Financial Success? Try These Ideas For Size

We all want to be a bit better off, don’t we? Well, although not everyone can be filthy rich, being better off is actually easier to do than you might think. It takes a lot of hard work and a change of mindset to make your money work better for you, but it is possible. So, if you want to improve your financial health and wealth, read on to find out what you need to do.

Good debt and bad debt

The first step is to understand the difference between good debt and bad debt. Good debt can help you get further on in life, and allows you to buy homes, cars, and build up a solid credit rating. However, unless you can actually afford the debt, it will often turn bad. Bad debt is anything that you will struggle to pay back, and it can quickly spiral out of control. It is essential that you clear your bad debts before moving onto the next step. If you want some advice, you can find some in our handy guide.


The next step is savings. You should only start a savings account if you have cleared your expensive debts, as you will effectively be losing money. Look into high-interest savings accounts that will give you a bigger return. One thing to remember is that these accounts will usually not allow you to access your money, or will charge you for doing so. With this in mind, it’s best to leave it there and forget about it. And, once your restricted period is up, you should have a nice chunk of return.

Financial Success

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There are three main areas you can invest in: stocks, bonds, and cash. However, you should never play with money that you rely on, as anything can happen, and you risk losing everything. That said, bonds are usually quite safe investments, although far from exciting. If you are looking for more glamor, try the precious metals market. You can even get started from your own home with services like ACM Forex. They act as a broker and provide software that you can use to buy and sell your gold stocks. There are dozens of different services for different stocks and commodities, so have a look around and choose the one you are comfortable with. And, once again, please be careful of losing all your savings.

Spend less

Of course, one of the best ways to protect your money is not to waste it. By developing a different mindset, you will be able to start noticing areas where you are a little too happy to spend. It all begins with the little things. Buying lunch every day at work? Pack your own home and save around $50-100 a month. By the end of the year, that could mean the difference between a camping trip and a more luxurious vacation. So, bear that in mind the next time you stop at McDonalds for your breakfast.

Got any financial tips you would care to share? Let us know in the comments below!

How to Obtain a Home Entertainment System on a Budget

Spending your hard earned cash on a surround sound music system or the latest in big screen entertainment might not be the sensible thing to do considering how many of us worry about the economy.  However it can be done if approached in a sensible way. To find out more, keep reading for some tips on how to make your dream entertainment system a reality.

If You Have Self Control, Use a Piggy Bank

Probably the first thing you might think of is to keep a tin, special box or safe where you can save some money each time you have a bit spare. However, this might not be ideal if you don’t have any self restraint, as it will take willpower not to dip into to it when something else catches your eye or your partner decides to treat you to a special night out because you’ve done so well to save). If you have self control and determination then this might be an option, but if not read on.

Spread It Out

Buying a home entertainment system needn’t be done all at once. It can be more sensible to purchase it a bit at a time and build it up when you have the cash. You’ve just got to decide which elements you want first. This can be advantageous when the sales are on at a website such as satellitetvcable.com and you can get a bargain at a reduced price. You can buy a great TV and cable package, and look for surround sound speakers later on.

Take Out a Loan

When done sensibly taking out a loan can be a good option. It will also enable you to buy everything at once instead of saving up. However, before taking out a loan you need to take a look at your budget and determine whether you can easily cover the monthly loan repayments.  If you can’t, it’s best to avoid taking out finance, as it will only need to problems. There are plenty of websites offering independent advice if you’re not sure about whether a loan is a good idea and need to do a bit of research beforehand.

Buy Used

Remember, you don’t have to get the latest equipment to build your home entertainment system.  Instead, you can go down the used route and buy from an internet auction site or your local Craigslist for example. There are bargains to be had when people upgrade their system, which means there are excellent quality items going for a lot less than new. The only caveat is there will be no warranty so it’s a good idea to personally check out the items before you buy.  You may also want to buy from a seller who has some form of returns policy.

There are many options available, these are just a few to think about. In the end it boils down to researching what products you want, knowing your budget and which you personally prefer.