Personal Finance Views

Tuesday, August 28, 2018

How To Deal With The Problem Of Failure Of Payment Of Debt
August 28, 20180 Comments
The need for loan or debt can come up at any point of your life. It is very easy to get the loans. It is even easier to run out of the money to pay the loan. However, the time after that will not prove to be easy. When you face a financial crisis and fail in paying your debt, then there are some realistic steps that you need to take. You need to accept that you are unable to pay the debt and that is a problem. Also, prepare yourself to face the consequences and to get out of the problem in a proper manner.

debt payment

The development of budget

The first step that you need to take is to ensure that you have a properly planned budget. You need to note down those aspects which are your expenses. In this regard, there can be two divisions. In one division, you need to list those things which have the fixed payment, like the various loans. In the second part, you need to list the other expenses like medical bills, personal expense, etc. After getting the list of the expense, you need to have a proper knowledge on your income sources. Find out each and every source from which you can generate a periodical income. Then you have to compare your income and your expense.

The process of consolidation

When you are at your budget’s end, then taking the help of debt consolidation can be a good option. In this process, one single no credit check loan is taken from a loan provider to pay off all the other debts. In this kind of loan, you need to put up your house as the collateral. However, you have to be sure that you can pay off this loan; otherwise you will lose your house. The interest rate in this kind of loan is higher than the others. However, it can prove to be beneficial in your existing financial crunch.

Decide cleverly

You need to have a talk with your creditors about the credit terms, when you understand that you are unable to pay the loan amount. You need to ask your creditors to set such a credit term which will provide you with some time, to repay the loan. You need to do this before your case is passed on to the credit collectors. The dealing with the debt collectors is not at all a pretty experience. Also, if you have taken a loan against your car, then selling the car and paying off the debt will be advisable. If you keep your car, then your creditor can posses it and upon your failing of payment they can sell it by themselves.

Summing up

The financial crunch is a phase and it will soon pass. When you plan in a proper way, then you can get out of the problem of debt in an easy manner. Your last resort can be the aspect of bankruptcy, to get out from the sticky financial situation. However, you need to try the other ways of debt management before you declare yourself to be bankrupt.
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Thursday, August 16, 2018

Ways to Get Your Bank Loan Approved Easily
August 16, 20180 Comments
In the modern times most people have to take loan to fulfill their wants, and it is not always easy to fulfill the formalities, especially in the current economic situation. 

The loans can be availed for purchasing a house or for renovating it, taking a new car, or for paying student college fees. All these things require a large investment for which the consumers have to take loan with bad credit  as few people can save large amounts of money to buy things with their own funds.

banking

As for fulfilling such requirements, it is very hard to qualify for taking loans. Firstly, you have to fulfill many requirements for getting eligible of taking loans. These requirements are like a borrower should be at least 18 years of age, should be a citizen of the United States, should hold a permanent job, should have an appropriate and active checking account. Once they fulfill these requirements then its turn for the approval criteria which they have to cross for getting loans. These approval criteria consist of a minimum credit score, which a person should have according to the lender and he should have sufficient income by which lender can see that he has a repayment capacity for loans. 

Now days it is not easy for a person to qualify for bank loans because of the bad market conditions. There are many customers who fail to get approval for loans because of their bad credit score

Here are 5 steps by which you can assure that you loans approval gets passed by your bank: 

1. Understand your preferences

The very first thing which you should know is the actual amount of money which you require as loans. Don’t take unnecessary large amount of loan as it will increase your problem. Once you know what amount you need for a loan, and then look for lenders online and their terms and condition. If you are taking a loan for anything specific like car, personal, mortgage, then looks for the best deal available. To find the best deal, compare offers of loan from different companies and go for the company which is offering you the best interest rate with low APR and processing fees and easy repayment method. Make a proper repayment plan for your loan and try to pay off your loan as soon as possible. 

2. Ask questions

Once you decide to take cash loans no credit check and you select your lender then meet them directly and ask questions related to the requirement of documents and eligibility criteria as different lenders have different terms and conditions. Once all details are verified and lender is ready to give you the loan, then ask them for additional discounts which they may give if you convince them that you will be a good borrower and will pay the entire loan amount on time without any default payments. You can convince your lenders for all this by showing them a proper repayment plan. 

3. Know your limitations

When you decide about taking the loan, then make a proper plan for repaying your loan and manage your finances properly that you can afford to pay off the loan amount with all your expenses. Ask for the minimum credit score required by your lender and then get your credit report from all the three major credit reporting agencies and if you don’t fit to the minimum requirement of lenders than take time to improve your credit score before you apply for loans again. Even look for the errors in your reports which might be because of the credit reporting agencies. If you find any such mistake, then submit an application with supporting documents as proofs that they made errors in your report and then ask them to rectify your report and increase your credit score. 

4. Create a checklist

Once you get all the necessary documents which is required for applying for a loan, then collect all these documents from various offices and from your employers, banks and make a proper file and then go for the loan applications, if you go with incomplete documents then your loan might get denied by the lenders. 

5. Have the right expectations

Once you make up your mind that you need to take loans, and then you have to first look for the lenders who can offer the best deals for your loan. Once you decide the lenders, and then ask them for all documents which are required for loans. Get all your documents in order before you apply for loans. Once the processing of your loan will start, find out about the terms and conditions which you don’t get it and get clarity about all the clauses of your loan contract. You need to specify the reason behind taking loans and you need to convince your lender with your repayment plan otherwise he will charge you high interest rate on the loan amount. Even you can get a lower interest rate for your loan if you get ready to secure your loan with any collateral. If a collateral is pledged with the lender then he will lower the interest rate as there is no risk of losing his money because he has the collateral by which he can recover the loan amount after selling it in case of default payments by the borrower. 
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Tuesday, August 14, 2018

What You Need to Know About Small Business Financing
August 14, 20180 Comments
Small businesses need less capital to get start. But even then, many small entrepreneurs find it difficult to start a business on their own and look for assistance in this regard. Even those small entrepreneurs that manage to start their company, needs financial assistance on some part of their venture in order to get going.

There are several ways to get your required small business finances but it is not a simple task by any means. Few may get their desired business loan or investment with very little effort while others remain unsuccessful even for years to accomplish same task. 

small business

There are few reasons that are behind the success and failure of small entrepreneurs to get finance from related authorities or persons. Keeping these things in mind will help you get these funds easily and quickly.

Solid business plan

Whether you want to take assistance from banks or individual investors like angel investors, an important document to prove your expertise and seriousness in small business venture is a strong and executable business plan. This plan must be complete in all aspects and is necessary for all types of companies whether it is a pro service company in Dubai or a small store in New York.

Whether someone lends you money or invest in your business, he/she will take a closer look at your business plan to know the chances of return of debt or gaining profit from his investment respectively. Developing a comprehensive plan will make it easier for you to successfully complete this process. In its absence, your efforts are most likely to end in failure.

Age of business

New companies primarily depend on business plan to attract investors for funding. But if acompany is already running in the market, then its performance makes it easier (or difficult) for the business to achieve success in its case. If your company is showing growth, or at least not in a decline, then there are chances that you can easily get business funding.

Business type

The type of company you are going to start also plays important role in finding business funding. Banks and investors are more likely to take chance with industries in highly dependable sectors like real estate, agriculture, wholesale, insurance etc. On the other hand, it is difficult to get loans, grants and investment if your small business is representing hospitality, retail and other risky sectors.

Gender

Efforts are underway on higher level to encourage women to take part in business activities. It is the reason that separate banks and schemes are available on government and private level to fund women in business sector in various countries. Therefore, if you are a femaleentrepreneur, then you are more likely to get financial assistance for your small business as compared to males. 

Banks vs private investors

Several private investors (angel investors) support small startup companies. But these investors are not only in small numbers but also quite choosy in their approach. In this scenario, the best option is government and private banks. 

Usually, there are specific banks for small investors while other banks also provide special grants to small businesses. As small industry play vital role in any country’s economy, so the government takes special steps to promote them. 

About the writer: Mona is an experienced content writer in a Dubai-based consultancy firm, Riz& Mona Consultancy and her writing experience is more than 6 years. During her career, she has acquired lot of experience in writing for various business and investment niches including small business, offshore business, trade, finance, taxation, and others.
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Wednesday, July 18, 2018

10 Ways to Save Money
July 18, 20180 Comments
Securing your financial future starts with saving. Whether your goals are to meet your family’s needs, save for a better retirement, or buy a bigger house or faster car, saving is the most important way to ensure your meet your personal finance goals. And contrary to popular belief, it doesn't have to be hard. 

Check out these 10 simple ways to save money:

1. Record your expenses

The very first step to saving is knowing how much you spend. For a whole month, keep track of every transaction you make. This means trying to record everything you buy, from a newspaper to a cup of coffee. After gathering the information, make groups of different categories, such as your mortgage, services like gas and electricity, groceries, and so on.

savings

2. Manage your debt

Before setting your budget, it’s important to determine how much debt you have and begin repaying it before you can start saving. Once you are finished paying back the loan, you could continue to put the same amount of money aside for your savings fund.

3. Create a budget

Now that you’re clear on how much you spend monthly, build a budget to plan and help control your spending. In the budget ensure that you put some money away for emergencies, and remember to include a place for expenses that don’t occur monthly, such as car services, or home reparations.

4. Plan on saving money

Try to allocate at least 10% of your net income towards saving. If you find that with your current budget this is not possible, then you should probably cut back on more expenses if possible.

5. Set saving goals

To make it easier to start, set for yourself some achievable saving goals – both long term and short term. For the short terms goals, you could put money away to buy a new computer, bike, or car, and for your long term goals, maybe plan for your kid’s college education, retirement, or a remodeling of the house. Take time to think about what’s most important to you and what you want your money to achieve and make your goals real by writing them down.

6. Use price comparison tools

Price comparison tools are available online and will let you if there are lower prices for the item you intend to purchase available elsewhere. Sites such as Price Grabber and Shopzilla can help you save tons of dollars on many items.

7. Decide on the priorities

Different people have different priorities when it comes to saving, so you need to determine which goals are the most important to you and save accordingly.

8. Different investment and saving strategies

For your short term goals you probably want to use a regular savings account, but for your long term goals you could consider other options, such as mutual funds and stocks. Although it’s best to speak to a financial advisor before making any decisions.

9. Automatic transfers and direct debits

Automatically transferring money from your main account to your savings account makes it less likely for you to spend money, because you will never see it in your account and will make it easier to achieve your saving goals.

10. Watch the savings grow

Make a point of checking on your progress monthly. This will not only help you to stick to your saving plan but also identify loopholes in the plan and allow you to make adjustments accordingly.
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Friday, June 15, 2018

Money saving tips – Eliminate debt and enjoy a financially secured future
June 15, 20180 Comments
Facing debt problems? Do you save money every month? Well, you actually don’t do so and this is why you have fallen into the debt trap. If you are too tempted to buy the lovely dress you've seen but do not have money, then you’ll definitely be swiping your credit cards. The worst part is that you fail to pay off the outstanding balance on time and thus, have to pay high interest on it. Even if you may not earn much, you should develop the habit of saving as soon as you get your first job. A sensible person will definitely save some money from his income every month so that he can have a secured future. If you have outstanding debt, you may use your savings to repay it. Thus, by saving your valuable money, you will be able to enjoy a financially secured life.

Some money saving tips for a debt free life

If you have accumulated huge debt, then this has probably happened since you do not know how to manage your money efficiently. You will have to understand the importance of dollars and try to eradicate every unnecessary expense that you make. Read on to know some money saving tips so that you can reduce debt problems soon.

Money saving tips

1) Keep only the money you will need in your wallet

Do you carry extra cash in your wallet? Well, if you love to shop for the latest items that has arrived in the market, then you should keep only the exact amount you’ll need. This way, you will not be able to spend even a single penny without need. Besides this, it is advised that you do not keep even one credit card in their wallet. This is because since you love to buy new items, you’ll be swiping your credit cards for sure and may incur debt when you do not have money.

2) Good budget is needed to know your affordability

Are you spending your hard-earned bucks lavishly? If so, then drafting a good budget is essential for you. Budgeting is very important in order to deal with your finances efficiently. With the help of a budget, you’ll know how much money you can spend for daily expenses and how much you’ll be able to save for future. If you’re having some debts, then you should work towards paying them off fast. This way, you’ll be able to save money and come out of debt.

3) Differentiation is essential between needs and wants

Do you have the habit of buying almost every item you see around? If yes, then you probably do not know the difference between your needs and wants. Your necessities are the items that you use regularly. On the other hand, your wants are the luxuries that you wish to buy for a better life. Try to part with your wants for the time-being so that you can save more and have a secured future. If you’re having outstanding debts, then you should pay them off at first before you spend money in purchasing your luxurious items.

4) Keep some money in the savings fund every month

Are you saving a certain percentage of your salary every month? If yes, then you do not need to worry about your future. In case you aren't doing so yet, then you must start keeping some money in the savings fund. This way, you’ll be able to accumulate a lot of money with time. If you have some debts, then you may use some of your savings to get rid of them. However, you should never use all your savings to repay debt.

Saving money is very important so that you can have a secured life. So, if your financial condition is tight now, you should still try your best to save every possible dollar you really can. Thus, follow these money savings tips to stay away from debt and have a better future.
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