Posts in Category: Family Finance

Effects of Bankruptcy

Bankruptcy is a serious thing. If you are thinking of claiming bankruptcy to address your financial concerns then it’s important to know about the two different types of personal bankruptcy that exist. Although many borrowers assume that there is only one type of filing for individuals, there are actually two types which are quite different from one another.

Because of this, it’s critical that borrowers formulate a plan to file under either Chapter 7 or Chapter 13. The following article will discuss the two types bankruptcies in general terms so that you can make the best decision for your individual situation.

Different Types of Bankruptcies

BankruptcyDeciding on the type of bankruptcy to file can be somewhat challenging, particularly if you don’t know much about the process to begin with. A bankruptcy attorney can supply you with specifics about the two most common types, though we can offer you a general breakdown.

If you’re like most debtors, then you will probably want to file under Chapter 7, which is commonly known as “liquidation” or “straight bankruptcy.” Under Chapter 7, a borrower uses their available assets to pay back their creditors through the liquidation process. Any remaining debt that hasn’t been addressed through liquidation is forgiven through the bankruptcy proceedings.

This form of bankruptcy is quite common, since most debtors don’t have many assets to risk in the first place; therefore, it’s essentially quick debt reduction strategy.

Chapter 13 Bankruptcy

Chapter 13 is quite different from Chapter 7 in that it essentially calls for the creation of a repayment plan where the debtor attempts to repay their accumulated debt over a 3-5 year period. Chapter 13 is an attractive option for individuals that wish to protect their assets. The downside is that qualification for Chapter 13 can be tough, as the debtor must demonstrate that they will be able to make regular payments.

For a more thorough explanation of the two most common types of bankruptcies and to find out more about some of the possible consequences that are associated with filing, consider contacting a qualified bankruptcy attorney or consultation group. The more information you have about bankruptcy the more likely you are to avoid making the wrong choice.

Always consider the advice of your financial advisor above all and get more than one opinion before committing to any contract or deal your provided with.

Fixing Your Bad Credit

Unless you are independently wealthy and can pay cash for everything, your credit score will determine the cost of every dollar you borrow, and consequently, the quality of your life. A nationally recognized repair credit explains how to raise your credit score. It’s easier than you may think!

Bad credit is a term used to describe a person’s credit status, which depicts that he/she is very risky to repay the loan brought from lenders and other financial institutions such as banks. People with bad credits are not at complete loss, as they are eligible for getting a credit card with poor credit ratings too. The opposite from bad credit is clean credit. Everyone want to get this status. However, they have to pay a higher rate of interest and higher annual fees. Individuals having a poor credit rating have to follow strict norms.

Credit ReportFinancial institutions offer different kinds of service such as credit card and different types of loans. Lack of knowledge on part of customers lead them to develop poor credit rating. Bankruptcy, court judgments and defaulters make it difficult for such people to get loans in the future.

Credit means you get a service or cash to use for your own purpose. It exists in different forms such as loans, mortgages or credit cards. You will have to agree the terms and conditions to repay the amount to the financial institution.

The first thing that is checked before a financial institution or lender gives you money is the credit rating. Credit rating is of two types: Good rating and Bad or Poor rating. An individual with a poor credit rating finds it difficult to get credit.

5 Easy steps to improve your Credit

Anyway, have you experienced having a negative credit account? You have to do something about your credit score immediately. These are the 5 methods for you to get back to good credit standing:

1. Practice control when it pertains to the handling of your assets. Don’t make the situation more difficult. You’re already in a bind, so save yourself from more trouble. This means that you should lessen your expenses, stop relying on your credit line, and start to save up for the payment of your debts. Your overdues won’t be fixed without you doing anything about it.

2. Settle your dues. As we have mentioned previously, your debts won’t pay for themselves. They will not disappear. You need to do something to pay for them. Credit repair starts with the satisfaction of your existing debts.

3. Utilize old credit cards. Here’s a neat little secret. Business professionals propose for the use of old, but usable, credit cards. Because their date of issuance should come before than your present credit lines, credit agencies will give them greater weight, given that they are still active for an ample span of time.

4. Dispute questionable claims. If you have purchases on your credit card bill that you think you didn’t buy, question them immediately.

5. Dispute every error you will find. Some erroneous entries in your credit record can significantly affect your credit score.

Credit repair can be confusing. But there is no need to struggle along on your own. Pick up the phone and call a few credit repair services. Choose one that you are comfortable with and let them take over. A credit repair professional will make sure that everything possible is being done to clean up your credit report and optimize your credit scores. But don’t wait. The sooner you start the sooner you will be able to experience the benefits of your credit repair effort. Good luck!

Save Your Money With Cheap Online Loans

We take up a loan so as to fulfill our requirements. But if we really want to save our money, then we need to look out for cheap loans. Cheap online loans are the best source of finance to fulfill any personal and business desire as they come up with low interest rates.

The cheap loan amount can be used for various purposes such as home improvements, buying a car or home, educations, wedding, vacations, or even for debt consolidation.

What’s a Cheap Online Loan?

It is not a simple task to get the cheap online loans that very easily. You are required to study the financial market properly. You can take the loan quotes from the lenders or can even apply online. And then you can compare the rates. This method can help you out in finding a cheap loan.

Before availing cheap loans one should always analyze certain factors like, interest rates, number of installments, amount to be paid every month and other terms and conditions.

Cheap online loans can be applied for in two ways, i.e., secured and unsecured. If you opt for cheap secured loan, then you are required to place something as collateral. The rate of interest is low in case of secured cheap loans. A borrower can raise money in the range of $5000-$75000 with repayment tenure of 5- 25 years. On the other hand unsecured cheap loans are collateral free. You can borrow an amount ranging from $1000-$25000 for a period of 6 months to 10 years.

Online BankingApplying for a Loan Online

Online applications usually are preferred for the very quick funding rate and the extremely vast amount of online lenders available to you. The more the lenders there are competing for your business, means the better the rate you will get. A quick online search will result in a huge amount of local and online lenders that you can apply with.

Just because your application was accepted by a lender, that doesn’t mean it’s been approved yet. Factors like, permanent employment, good employment record, good credit score, shortening loan term, presence of collateral etc matter a lot in getting the benefits of cheap online loans.

Cheap online loans are the best if you really want to save your money. With cheap loans you can improve you economical status also as you will be paying back less interest amount. These loans can sort out a variety of purposes. These loans can be availed by a homeowner as well as a tenant.

Is a Home Loan Right for your Family?

What is a home loan?

Home loan is a loan provided by a financial institution to finance the purchase of a residential property. It is a much sought-after product for Indians today when it comes to owning a house. Earlier there was very little borrowing and people generally tried to avoid creating debt. Now with the situation having undergone a complete transformation, borrowing to create an asset is not only common but in many situations makes good economic sense too. A house is generally considered to be an appreciating asset.

This is because the price of the house is expected to rise over a period of time. This makes financing of such a purchase by borrowing a good way to own and create an asset without having all the funds for the purpose. Financial planners will always advise against taking a loan for undertaking expenditure but encourage borrowing for buying a house.

Fresh Borrower

If you are a fresh borrower, you may not have fresh choice as you signed up for a home loan simply because you fell short of funds for the property investment. As a result, those who have signed up for a home loan less than a year ago may not have much choice except to generate surplus. One of the options is to set aside the excess cash on a regular basis so that the same can be used up for prepaying the loan at regular intervals. For instance, those who have signed up for a loan of 150-200k can look at repaying at least several thousands so that the EMI doesn’t shoot up in a big way.

This may not be possible right away and hence, one should make it a habit to set aside the sum for repayment in a systematic way. For such investments, look at short term debt products such as short term debt funds which allow you to accumulate corpus at regular intervals. Since interest rates have gone up and are likely to remain high for the next 9-12 months, these schemes might allow you to earn double digit returns. We wouldn’t recommend fixed deposits as interest earned from FD is taxable. Also, the interest from FD is attractive only when the tenure is long.

Documentation of a home loan will also include various components related to the purchase of a property. This includes original copy of the loan agreement along with the copies of documents showing that there is a clear title to the property plus documents indicating that the transfer of rights in the property has been completed properly.

Home Loan

When to opt for a home loan?

Many people think that when there is an option of renting a house why to take a large liability and buy a house. The reason for that is the major disadvantage involved in the process of renting a house. Here, a person pays a monthly rent and even after having paid rent for a number of years no ownership comes to him/her.On the other hand, there might be an equal amount paid as an equated monthly instalment on a Housing loans but the difference here is that the person is the owner of the property.

The real benefit from the house comes in the form of capital appreciation that is witnessed here. House prices in India have risen quite sharply in the past and it is expected that they will keep rising in areas that have development as well as good facilities.This appreciation in the value of the property makes a compelling case for buying a house with a loan.

The individuals are actually leveraging the amount that they have with themselves by taking a loan and financing a larger cost house. The benefit of the appreciation in the value is available for the entire amount even though it might take years for the person to pay off the loan and finance the complete house.

Family Budgeting made Easy

Do you ever wonder where your money goes? That is not good. If you don’t know where your money is going, you are probably spending more than you need to be. When you don’t keep track of your money, you never really know how much you have. If you don’t know that you are broke or going broke, you won’t think twice when you blow a dollar here or there, or 20 dollars here or there.

By keeping a budget, you will always know where your money is going. You will know how much you have spent where and you will hopefully not go broke, as long as you do it right. It sounds like something that will accomplish so much for you will be difficult and tedious. It’s easy to set up a budget, and once you have, it’s not hard or tedious to maintain.

Family BudgetCredit Cards or Cash

First, you need to figure out your monthly fixed expenses. Gather together all your bills that are always the same. This includes your mortgage or rent, utilities, insurance, credit card payments, car payments, and any others that don’t change.

Next, figure out your variable monthly expenses and try to estimate them. These expenses will include gas, food, and anything else that you have to spend money on every month but that is never exactly the same. Try to overestimate these expenses a little to allow for error. Prices are always increasing, so you will have to adjust these expenses over time.

Monthly Expenses

Add up all of your expenses for the month. These should not include what you spend on entertainment and anything extra. Those expenses we will decide later, depending on how much money you have left to spend. Add up your expenses and subtract them from your monthly income. How much money do you have left? If you have a lot, of course that is great, but don’t think that is all fun money. You need to save some. Whether you are saving for vacation, building an emergency fund, college, or retirement, you must save. An emergency fund is a very good idea. It will relieve a lot of stress for you when you know you have backup money for emergency expenses such as medical or car situations, or job loss.

Putting Money Aside

Once you put aside money for bills and general monthly expenses and savings, you can decide how much you can spend on fun and entertainment. First, decide what it is you do for fun, what you really enjoy and what you could do without. If you aren’t sure how much you normally spend, keep track of what you spend your money on for 2 to 4 weeks. Then you will have an idea of how much you need.

If you find that you spend more than you have, look where you can cut back. Do you spend $3 or more on coffee every day? That could be costing you up to sixty dollars or more every month. Try making your own for a much cheaper price. Also, stop spending money at vending machines and over priced shops. If you are big shopper, you might find that you really can’t afford to be spending hundreds of dollars on new clothes anymore. If you are way overspending, you will need to go on a money diet.

Once you have decided how much you can spend each month, stick to that plan. Stretch out the money so that you don’t spend it all in the first week. If you save it for the first three weeks, you will have extra money to spend at the end of the month and it can feel like a shopping spree. After cutting back and finding ways to save, you might find that you could cut back your entertainment fund and save even more money for important things.

I Cannot Pay my Credit Card Bills – What are my Options

Seems like you have decided to take this on yourself in the place of hiring a debt relief company. Well, if you have the talents and abilities to rival those of the professionals especially in the areas of communication, negotiation and documentation, then go on right ahead.Not too long ago, a nurse with a little bit of groundwork in tax laws took on the IRS single-handedly then so can you in the case of debt relief.

Keep these points in mind when you are settling credit card debt on your own. These three tips will ensure that you are one step closer to successfully taking on those credit card companies.

You must ensure that your accounts are considerably delinquent

You can try to negotiate a lower principal amount on your credit card bills as soon as you feel that making the minimum monthly payment is not going to be possible or if you feel that the debts are not going to be paid due to other fiscal priorities/emergencies. Keep in mind, however, that the debt relief process cannot be availed of until and unless your credit card accounts are significantly delinquent.

Wondering how delinquent?Delinquent credit card accounts are written off by creditors once the 180+ days windows has completed.The writeoff causes the account to drop in value significantly and third parties usually buy these for real cheap – sometimes around 4-6% of the original amount.

To avoid this from happening, the credit card company will be more than willing to settle your debts through negotiation.If the creditors get half of what you owe, that’s much better than the 5% they would’ve gotten from the third party collection agencies.

Maintain Detailed and Descriptive Documentation

The days of verbal agreements holding any value are long gone and especially when it comes to credit card debt settlement. After all, it will be your word against the word of the collection agents and you should know by now that nobody wins in such a case.

The other option is that you maintain excellent written records of all the matters related to the settlement and negotiation process with your creditors. Always send out letters with complete information to the proper addresses and addressees.After that, file the letters and other forms of communication in a binder that is easily accessible.

If you do have a conversation on the phone, record the details.Document the date, time, the names of the people you spoke with, the contact numbers and the details of the conversation.

Use Mail That Can Be Tracked

Once the settlement has been reached, send your payment through certified mail or any mail that can be tracked. Send the check together with a memo saying that said check is for full payment, if indeed it is, along with a copy of the agreed settlement.Now, you will have pretty good documentation.

Don’t forget the specific strategies that you need to use to settle the debt by yourself.Remember the three tips here and you will do just fine in this process.

Bad Credit Unsecured Financing

It is a know fact that among the borrowers, those with bad credit do struggle a lot while availing loans. in fact the situation gets worse more of the borrower does not wish to pledge any asset as collateral. However now for these set of borrowers, lenders are now offering Bad Credit Unsecured, which is in fact an ideal loan scheme for these sorts of borrowers.

Bad Credit Unsecured Financing

Most of the lenders prefer to check the credit score before approving any financial assistance. it is because your credit score speaks about your credibility. So it would be optimal to pay off some debts which in turn will assist you to improve the credit score. With an improved credit score, availing loans will be quite easy.

These loans are like other conventional loans which can be used for varied number of purposes. You can utilize the amount to satisfy your needs like renovation of home, wedding, purchasing a car, going for a vacation, educational purposes; paying medical bills etc. you can also use the amount to resolve some of your bad credit issues which contributes towards the improvement of your credit score.

To avail this financial option, there is no need to pledge any asset as collateral. Instead the amount is advanced on the sole basis of your income and repaying capability. Under this loan scheme, you are entitled to borrow amount in the range of $1000-$25000 for a short reimbursement period of 6 months-10 years. The rate of interest levied on this loan option is slightly higher. it is done so as to reduce the risk factor faced by the lenders.

There are scores of lenders present in the financial market who are offering these loans. This is why it becomes a bit difficult to locate the best deals. Well a proper research of the market with the help of online mode will assist you to spot lenders offering competitive rates. Moreover by comparing the quotes, you can easily select a better deal.

Bad credit unsecured financing is a collateral free loan option, which helps you to overcome the financial crisis in spite of your credit status.

Personal Loans even with Bad Credit

Personal Loans even with Bad Credit

Are you depressed for not getting loan because of your bad credit records? If so then it is the right time to put an end to all your worries and unnecessary tensions. Such tensions are totally needless because you will now be assisted with the personal loans bad credit for facing any of your economic crises.

Personal loans bad credit is generally of two forms and both these forms accept any credit record. Bad records like late payment, skipping of installments, County Court Judgments, arrears, bankruptcy, defaults are applicable for both these secured and unsecured loans.

Secured and Unsecured Personal Loans

The secured personal loans bad credit offers an amount ranging from $5,000 to $75,000 which are perfect for paying off all your debts and solve other financial matters. The term for paying these loans off is 5 to 25 years. Rate of interest in the secured loans is generally lower than any other loans and that is a great advantage of these loans.

In the unsecured personal loans bad credit the scene will however be a bit different. You can borrow an amount up to $25,000 and pay it back within 10 years. Though the higher rate of interest of the unsecured loans may disturb you but there are solutions too to get out of such problems. You can shop for the best deal that are available in the loan market and thus keep higher interest rates away from you.

Improving your Credit Score

The best thing about the personal loans bad credit is that it makes one improve his credit score. Once you start making timely repayment of these loans, credit score is sure to get developed. This procedure may be lengthy but fruitful.

So, a person going for the Personal Loans Bad Credit can no longer get trapped in the financial problems. You should always keep the installments small as that will help you in maintaining continuity while paying the debts every month.

Personal Tenant Loans for Bad Credit

Personal Tenant Loans for Bad Credit

If you are a tenant along with facing bad credit, without a pinch of doubt the loan application of yours will be turning down. It is chiefly because of sticking a serious credit tag to your credit report. With this, further chances of money availing remain tried to be often blocked. Here, the concept of personal tenant loans for bad credit comes to fore. It helps the non-homeowners in different sorts of credit distress

Collateral for Personal Tenant Loans

Basically, Personal Tenant Loans For Bad Credit are provided without any collateral pledging. So, you can avail the loan easily regardless of your personal circumstances of being a non-homeowner. For the reason, the loan amount depends upon your income flow. The source of your income proves the loan security. However, a borrower of any financial class can obtain a denomination amount anywhere from $500 to $25,000. Later, you can repay amount in a flexible manner. With that, your reimbursement period can go up to 10 years.

You get the fund to meet your ends. The raised fund can be employed in any of your purposes. You are free to invest the borrowed amount. You can utilise the fund to sort out your different sorts of expenses like, buying a car, wedding cost, luxury holidays, college fees, and even for your debt repayment.

Fees and Interest for Personal Tenant Loans

You will have to pay a bit of your money for the loan availing. As you place nothing against the loan amount, so the rate of interest is charged competitively. Even then, it can be comparative, as so many lending players are competing in the market. You can find lenders in great numbers. They can be traced down online also. Online method is simple and convenient. It saves a good amount of your time and energy, and makes your loan approval fast.

In short, personal tenant loans for bad credit help you find the required sum without having the worry of putting your asset against the loan. You get the fund to meet your ends even in your credit poverty.