The Advantages of Choosing Chapter 13 Bankruptcy

If you are struggling to manage your debts and are looking for a way to regain control of your finances, Chapter 13 bankruptcy may be the solution you need. 

Unlike Chapter 7 bankruptcy, which involves the liquidation of assets to pay off debts, Chapter 13 allows individuals to reorganize their debts and create a manageable repayment plan. 

Explore the unique advantages of choosing Chapter 13 bankruptcy and how it can help you achieve financial stability.

Lower Monthly Payments

One of the primary advantages of Chapter 13 bankruptcy is that it allows you to lower your monthly payments by consolidating your debts into a single manageable payment. 

Instead of juggling multiple creditors with varying interest rates and payment schedules, Chapter 13 enables you to create a structured repayment plan based on your income and expenses. 

This can make it easier to stay on top of your debts and avoid falling further behind.

Protection from Creditors

When you file for Chapter 13 bankruptcy, an automatic stay goes into effect, which halts all collection actions from creditors. This means that creditors are not allowed to contact you for payment, repossess your property, or foreclose on your home while you are under bankruptcy protection. 

This provides you with much-needed relief and breathing room to focus on creating a sustainable repayment plan without the stress of constant harassment from creditors.

Debt Discharge

While Chapter 13 bankruptcy does not involve the complete discharge of debts like Chapter 7 does, it does allow for the discharge of certain debts upon completion of the repayment plan. 

This means that you can eliminate unsecured debts, such as credit card debt and medical bills, that are included in your repayment plan. 

By successfully completing your repayment plan, you can emerge from bankruptcy with a fresh start and a more manageable financial situation.

Retention of Assets

Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off debts, Chapter 13 allows you to retain ownership of your assets while still repaying your creditors. 

This can be particularly beneficial if you have valuable assets, such as a home or a car, that you want to keep. By creating a structured repayment plan, you can protect your assets and avoid the risk of losing them in bankruptcy.

Improved Credit Score

While bankruptcy can have a negative impact on your credit score in the short term, Chapter 13 bankruptcy can actually help you rebuild your credit over time. 

By successfully completing your repayment plan, you demonstrate to creditors that you are capable of managing your debts responsibly. This can help you establish a positive credit history and improve your credit score in the long run.

Final Thoughts

Choosing Chapter 13 bankruptcy can give you a unique opportunity to reorganize your debts, protect your assets, and achieve financial stability. 

By consolidating your debts into a manageable repayment plan, you can lower your monthly payments, protect yourself from creditors, and ultimately emerge from bankruptcy with a fresh start. 

If you are struggling with overwhelming debt, consider exploring the advantages of Chapter 13 bankruptcy and how it can help you regain control of your finances.

A Guide on How to Track your Personal Loan Status

An unsecured personal loan is one of the widely availed finances in India, with around 13.9 million accounts alone in Q1 of 2018, according to CIBIL. The total amount of unsecured credit (personal loans and credit cards) at the end of FY2018 amounted to $82 billion.

The increasing popularity of personal loans is primarily because of the changing lifestyle of Indians, their growing needs, and increasing consumerism. Individuals use these loans to fulfill various objectives, from hosting a wedding to buying a 4-wheeler or going for higher studies or medical emergencies.

The easy and quick availability of unsecured personal loans has also made it hassle-free to avail of them. Moreover, financial institutions offer several features and benefits with these products.

How to check loan application status?

You can check the status of your personal loan from the lender’s website. Usually, financial institutions have a dedicated page that tells you about your loan status. The information that you have to provide may differ from the company.

Checking the status of your revenue based loan is crucial after you apply. You have to know whether your loan application is approved or rejected. And I think Nucleus Commercial Finance would be a great fit here. They've been around since 2011, and they combine the stability of open banking with the flexibility and speed of alternative lending platforms.

Some of the general data that you have to provide include:

• Application ID or Reference number
• Form number
• Name
• Date of birth
• Mobile number
• Product type
• Loan amount requested
• PAN

Clicking the “Submit” button will enable you to learn your unsecured personal loan status.

What are the features of personal loans?

Personal loans can come with the following features:

High financing option

You can avail of up to Rs. 25 Lakh with personal loans. Also, lenders don’t require collateral to sanction these loans.

Instant approval and disbursal

NBFCs can approve personal loans in 5 minutes. They can also disburse it within 24 hours or one working day.

Nominal documentation required

Financial institutions only need your KYC documents (Passport, Driving License, Aadhaar, PAN, Voter ID), employee ID card, bank account statements of the last 3 months, and salary slips of the previous 3 months for the approval procedures.

Simplistic eligibility criteria

The eligibility criteria for personal loans require you to be between 23 and 55 years of age and employed with a private/public company or MNC.

Flexi Loan facility

Bajaj Finserv also has a Flexi Loan facility. With this facility, you have to pay interest only on what you withdraw from the sanctioned loan amount. You can also pay only the interest as EMIs. Repay the total amount of funds withdrawn at the end of the tenor.

The Flexi Loan facility lowers EMIs by as much as 45% compared to traditional personal loans.

Pre-approved offers

Lenders bring pre-approved offers on Personal Loans that save you time when availing of financing by making the process hassle-free. Pre-approved offers are valid on home loans, business loans, personal loans, and a range of other financial products & services. You only have to provide a few essential details to check your pre-approved offer.

What are the things to remember before applying for a personal loan?

Do remember these few things before you apply for a personal loan:

Opt for a reasonable amount

Financial institutions may reject your application if you apply for a high amount. Hence, it is recommended to use a personal loan eligibility calculator. It will help you learn the highest loan amount you are eligible for as per your income, outstanding credit card debt, and loan EMIs.

Calculate your EMIs

Calculating your EMIs helps you to know whether you will be able to pay them. Use an online EMI calculator if you don’t know how to calculate personal loan EMI. Have a high credit score

Lenders need a credit score of 750 or more to sanction you a personal loan. Improving the credit score requires only a credit card. You can also avail of a secured credit card by pledging a fixed deposit as collateral.

Paying the total amount due within the deadline and utilizing 30% to 50% of your credit limit will improve your credit score.

You must lower your fixed monthly obligations

Ensure that the ratio of your monthly income to your fixed monthly obligations is lower than 50%. Closing your existing loans and clearing your credit card debt can help you achieve this ratio.

Opt for an unsecured personal loan today to fulfill your financial goals. Financial institutions give you the option to apply for these loans online. You only have to provide your personal details, income, and a few other basic details to apply successfully.

Should You Jeopardize Your Nest Egg to Repay Your Credit Card Debt?

The total outstanding value of US credit card debt is now over $1.02 trillion. This places a significant burden on total US household debt, and amounts to a debt burden of around $7,000 per household. It is encouraging to note that less than 50% of US households have any credit card debt whatsoever.

If we exclude these households with no debt, then the average credit card debt for indebted people amounts to $15,624. While this figure is substantial, it is also much lower than it has been in 5 years. Consider the following average credit card debt balances among debt carrying households since 2013:

• 2013 – $16,319
• 2014 – $15,876
• 2015 – $15,692
• 2016 – $15,810
• 2017 – $15,654

These numbers paint a skewed picture of the actual debt burden. Over the years, the average household debt may have declined among debt carrying households, but the overall level of debt has increased substantially. Simply put, more people are sharing the debt burden than ever before. 

This is largely due to an era of ultralow interest rates which made borrowing cost effective for so many US households. The percentage of US households carrying credit card debt has increased from 38.1% in 2013 to 45.6% in 2017, and this trend shows no indication of slowing down. 


With unemployment hovering around 4.1%, and the US economy booming, spending is on the up and up. Easy access to credit has facilitated a credit boom, even after banks and financial institutions clamped down post global crisis.

If You Are in Debt, How Should You Pay for It?

Naturally, there are concerns about how best to manage debt. Several options are available to reduce the debt burden, notably switching (transferring) debt from high interest credit cards to lower interest credit cards. 

This method is heavily promoted in the media, and by credit card companies, but it comes with a caveat: There are costs involved in transferring balances from one account to another. All the pros and cons should be weighed up against one another.

Other options include using a savings account such as a 401(k) for retirement to pay down credit cards. This is generally not advisable, since it will cause disruption to your retirement nest egg, and there are various penalties and tax consequences to contend with. 

An important consideration when it comes to credit card debt is that it is unsecured debt. This means that it can generally get discharged in a bankruptcy filing, and assets cannot be attached to its repayment.

Perhaps the most pressing question for the 50+ generation is why the debt still exists? Debt elimination, debt management, and debt consolidation options are readily available from multiple bank and non-bank entities. Sometimes, it may be a good idea to discuss the situation with a financial planner.

What’s the Worst That Can Happen with Unsecured Debt?

If there is absolutely no other way to repay credit card debt, and you risk ruining your credit profile, it is possible to use a 401(k) loan to repay credit card debt. These loans are much more cost-effective than credit cards, and the interest that you pay goes directly to your own account. 

On the plus side, there is no negative effect on your credit score. Experts do not recommend taking money from retirement to pay down credit card debts, since money in hand is more valuable than access to credit that can easily get taken away from you.

Other ways to consolidate your credit card debt include home equity loans, unsecured personal loans, and balance transfer cards. These methods should be assessed on their merits, given that there are pros and cons associated with each of them. 

It is never advisable to transfer debt from an unsecured line of credit to a secured line of credit such as a mortgage loan or a home equity loan.

You stand to risk a lot more than your credit score if you cannot make the repayment. The balance transfer card option is a viable solution provided your credit score is high. Be advised that the interest-free component will cease after 12-18 months. 

For unpaid credit card debts, you could face a loss of credit lines and a reduced credit score. You will however get to keep your existing assets, pending further litigation.

Six Tips for Applying for a Payday Loan

Life can curve balls at us which may leave us needing a bit of financial help from time to time. From sudden medical expenses for home and vehicle repairs, a short term or payday loan is often a quick and easy answer to life's little surprises. If you are considering applying online for short term loans, there are some tips that you should keep in mind to best guarantee your chances of not only getting approved, but being able to manage the loan.

Proof of Employment

The beauty of applying for a short term loan is that it is quick and seamless as long as you are properly prepared. Unlike applying for a loan from a financial institution, companies which offer short term loans have a quick application process which largely relies on one being able to have proof of employment. Some ways you may be able to prove your employment status include:

• Tax forms
• A signed letter from your employer 
• Providing your National Insurance number 

Having recent proof of income from your employer may also be acceptable as a sole piece of proof of employment. This would include items such as a pay stub from your place of employment. Ask the loan company if the length of time you have spent with the employer will have an impact on your application as well. Typically short term loan outfits will only lend money to individuals if they have been working at the same place of employment for 3 months or longer.

Understand what the Loan Is

Short term loans are significantly different than a long term loan. This should be well recognized and accepted before the application process. Ideally, this type of loan will only be used to tide someone over should they find themselves in an emergency situation before they receive their next pay check. 

Do Not Apply for Multiple Loans

Payday loans are quick and easy. Many will hear back within hours after the application process whether or not they have been approved. Even if you are well-intentioned and trying to improve your chances of being approved, apply at one loan location at a time.

These companies have the means available to track every single loan request you make. If they see that you have made multiple loan requests in a short period of time, they may think that you are:

a) Trying to scam them; or
b) Will receive so many loans that you will not be able to pay them back on time, if at all.

Avoid Start-up Fees

Any payday or short term loan company which charges its clients a start-up fee should be avoided at all costs. Legitimate loan providers do not require any fees from you. They receive payment by other means.

A payday loan is a small, short-term unsecured loan, "regardless of whether repayment of loans is linked to a borrower's payday. The loans are also sometimes referred to as "cash advances," though that term can also refer to cash provided against a prearranged line of credit such as a credit card. Payday advance loans rely on the consumer having previous payroll and employment records. Legislation regarding payday loans varies widely between different countries and, within the USA, between different states.

Be Honest about Your Finances

The best way to protect yourself when taking out this type of loan is to be honest. There may be some unattractive details about your past or current financial state which may cause a loan company to reconsider lending you money. But being honest will help keep you financially afloat rather than unexpectedly drowning in debt.

Why is It Necessary for Every Borrower to Know Everything About Unsecured Personal Loans

Whether you believe or realize it or not, loans of all kinds are financial burdens that every borrower is required to bear after getting them. In the opinion of all the real life borrowers and financial experts, getting loans is easy but repaying them is extremely difficult. The situation becomes extremely difficult for the people who cannot maintain a healthy credit score. They find both approval and repayment of the loans extremely difficult for them. Though bad credit personal loans are especially meant for them, they must be very careful about knowing everything about them so that they can repay the loans easily.

Beside bad credit personal loans, people should also think about unsecured personal loans that good for them. These loans are available with almost all the leading online lenders. These lenders also work under the influence of the governments, as the traditional lenders do. However, their strategies are slightly different from them. The first priority for them is to help the needy people and for that they design and develop special policies for unsecured loans. You must understand that these unsecured loans are free from all collaterals and that is why they are quite different by nature as well.

The first thing that you should try to know is the terms and conditions of these loans that can make all the difference for you. You must be very careful about knowing the rate of interest and the terms of repayment. You should look for the official documents that has everything written on them. You should not pay attention towards verbal information at all as they can be manipulated at any point of time. To be more conscious about the right information, you should talk directly to the bank officials and not the agents or mediators. However, you must make some personal efforts as well and make some online research about unsecured personal loans. You must know that these loans are not covered by any mortgage or collateral and that is why the rate of interests are slightly higher than the secured loans.

The terms of repayment must be very clear to you so that you can use them to repay your loan without burdening you. It is true that the duration of repayment is smaller here and that is why the monthly installments for repaying these loans can cause you some anxieties. You are bound to follow this schedule of repayment making sure that no date of repaying the installments gets failed. It can make your credit status go worse.

However, if you are a victim of bad credit score or status, then you must be very positive about repaying the installments on or before their due dates. This can leave a positive impression on the credit score and it can get better till you repay the loans totally. With the help of this better credit status, you can capitalize on your future loan requirements. You need to be very serious about the repayment so that you can get rid of both, the loan and the bad credit status.

Author Bio:
Anna Smith has been an experienced blogger who has a very good knowledge about online loans. She writes regularly for quite a few popular blog sites. Here, she tells teaches her readers about the serious concerns about loans online that they should always consider before getting online personal loans.

Burdened by Bankruptcy? 5 Quick Tips for Emerging from Debt

If you declared bankruptcy in the past couple of months or years and are still struggling to get back to normal, you can be proactive to improve your life. The whole point of enduring a bankruptcy is to get your life back on track. Let's take a look at four tips to help you rebound.

Chapter 7 vs. Chapter 13 Bankruptcy

Although filing for either form of bankruptcy means it will show on your credit record for the next 10 years, there are significant differences between the two. With a Chapter 7 bankruptcy you likely had barely any disposable income, so you will be forced to liquidate your non-exempt assets in order to appease your creditors. Though this type of liquidation likely won’t cover the full amount owed, the remaining debt will be discharged (in nearly all cases).

If you are eligible for a Chapter 13 bankruptcy, also known as a reorganization bankruptcy, you meet minimum income requirements to avoid a complete asset liquidation. Instead, you’ll be able to keep your home and other assets as long as you adhere to a court-approved repayment plan. You will still be expected to pay your regularly scheduled mortgage and car loan payments in order to keep those assets.

If you qualify for it, Chapter 13 is much preferable to Chapter 7 bankruptcy, but in both cases you will have to rearrange your life in order to meet your obligations.

Create a Detailed Budget

Once you've declared bankruptcy, you'll have to develop a plan to handle your finances. This means spending mainly on necessities, with only a few luxuries from time to time. Follow the advice of Greg McBride: “Track your expenses for three months to get an idea of how much you're spending and where that money is going. Then create a realistic budget that fits within your monthly income.”

Apply for a Secured Credit Card

In order to rebuild your trustworthiness with credit, you'll have to start out with baby steps. The first step is obtaining a secured credit card. A secured credit card lets you improve your credit score little by little as you spend what you've deposited on the card. Reach out to bankruptcy trustees like those with Keith G. Collins Ltd in Winnipeg to help you through the bankruptcy and credit counseling processes. Once you've brought your credit back up to a respectable level, you'll soon qualify for traditional credit cards and be able to pass employer and landlord credit checks without a problem.

Bring Cash Everywhere

While you'll be able to qualify for a secured credit card after bankruptcy, you should always carry cash wherever you go. You won't qualify for any lines of credit with significant spending caps, so you'll have to spend within reason for a series of years until you can prove that you are once again credit worthy.

Establish a Bill Paying Schedule

One of the best ways to rebuild your credit and avoid extra costs is to pay all of your bills on time and in full. If you run out of cash and are only able to pay part of your bills or make late payments, your credit will continue to suffer. Don't let that happen. Create a calendar that is specifically devoted to bill due dates. Rebuild your credit little by little and eventually you'll be able to qualify for loans and lines of credit once again.

If you've declared bankruptcy, don't wallow with hesitancy and indecision after the fact. You have a golden opportunity to get your life back on track. Follow the advice above and you'll be well on your way to a return to normalcy.

Get your Credit Card Debt under Control for 2014

Credit cards are the culprit of far too many debts across Australia. Most people think long and hard before even considering a personal loan, but will rarely think twice when it comes to applying for a credit card. Intentions are good, and things go well to start with, but as the debt climbs and the monthly repayments grow the debt can soon become unmanageable if you don’t keep things under control. If you find yourself in a situation like this and you’re struggling to free yourself from your credit card debt, then take the first step today and discover what you can do to start diminishing your credit card debt right now.

Consider Debt Consolidation

Most people who are in a difficult situation with credit card debt often have more than one card, and sometimes have personal loans and other debts too. With this many payments to make each month it often ends up that you can only make the minimum payment off each debt – which in most cases will only cover the interest payment and doesn’t reduce your debt.

This is a vicious circle to be in, as you can easily end up continually paying interest and never reducing your debt. If you’re in a situation like this then debt consolidation could be the answer. By consolidating all of your debts into one debt with a manageable payment you can actually start working on paying off the debt you owe, rather than just paying interest charges every month.

Having all of your debts consolidated into one makes it more manageable and gives you a lower interest rate to work with, allowing you to get your debt paid off more quickly.

So, how do you find the best solution?

The most difficult step is often the first one. Once you have made started the process you will find things just get easier and easier, until one day your financial freedom is obtained. It’s advisable to always speak with a debt consolidation specialist in your area as they will be able to analyse your financial situation and put forth the best solutions for your circumstances.

Debt consolidation isn’t something which you should enter into lightly or without professional advice and you can end up making your situation worse, so make sure you seek advice from a professional if you are in any doubt at all.

Stop worrying about your credit card debt, take some solid action and get you can get your finances under control and fully manageable during 2014.


Author Bio: Nathan Rossiter is a regular contributor of money saving tips and debt advice. When he is not busy working with the team at DebtConsolidation.com.au he enjoys keeping up-to-date with the latest news from the world of Finance, and the occasional game of FIFA 2014!

5 Things to Consider Before Applying for a Car Title Loan

Car Title Loan Reflection (Photo credit: Jeremy Brooks)

While your car may not precisely be deemed an asset because of how quickly it loses value, it does have some amount of value as collateral, so long as it's in good, running condition. And this means you can use it to secure a car title loan, whereby you can get the money you need (or a portion of it, at least) based on the estimated value of your vehicle, amongst other criteria. 

Of course, you will have to hold your car title (as in, own it outright), you'll probably need full coverage insurance, you'll need to provide proof of employment, and you might even have to offer references (and deal with the embarrassment of having a car title lender calling your family and friends). 

But once you've filled out a mound of paperwork you're all set, supposing you pass the background checks. The thing is, unless you're really desperate for cash and you'll find yourself in dire straits without it, a car title loan may not be your best option due to the astronomical interest rates you'll end up paying and the fact that your car will be seized should you fail to pay in a timely manner. 

Here are just a few things you'll want to consider before you sign on the dotted line.

1. Why you want the money. This is important. If you are so strapped for cash that you're going to, say, lose your home if you're unable to pay the mortgage, then virtually trading in your car for your house (at least temporarily) could allow you to stay in your home until your ship comes in. But if you're using the money to take a vacation, buy holiday gifts, or otherwise spend on things you simply don't need, you should check yourself and take a long, hard look at your choices. Living beyond your means is going to catch up to you eventually, and the result, if you get a car title loan for unnecessary expenditures, could be that you end up losing your car.

2. Your credit score. Car title loans are generally reserved for those who don't have the option of opening a home equity line, taking out a personal loan from the bank, or otherwise securing the funds they need. Unfortunately, the fact that you've exhausted other options doesn't mean you're going to get a car title loan without a decent credit rating. If you pose too great a risk where repayment is concerned, you're simply not going to qualify, even with your car as collateral.

3. The value of your car. If your car is more than a few years old, damaged, or undesirable in some way that has depreciated the value, your chances of getting a car title loan are probably pretty slim. The main thing required for this type of collateral is value, and this is generally based on the Kelley Blue Book estimate, as well as a visual inspection by the lender. And don't expect to get more than half the agreed-upon value of your car when you take out this type of loan (as it will continue to depreciate while you pay off the amount borrowed).

4. Alternative options. There are all kinds of alternatives to taking out a car title loan, such as borrowing from family members, opening a home equity line, selling valuables, or perhaps even applying for a personal loan. So before you put your car up as collateral and agree to pay an exorbitant interest rate, try absolutely every other avenue available to you.

5. Comparison shopping. If you've decided that a car title loan is the only feasible option for getting the money you desperately need, it's important to comparison shop in order to ensure you get the most money, the lowest interest rate, and the best terms overall. In case you didn't know, there are many lenders to choose from, and you can get a title loan online, as well. You're the one who will have to pay, so make sure you do your homework and find the best possible deal.

4 Advantages to Homeowner Loans You Need to Know

Are you looking to take out a loan? Homeowner loans might seem daunting and risky because you’re borrowing generally a large sum of money against the asset (your home). What this means is that if you can’t afford to pay the monthly amount, your home will be reclaimed to make the payments. 

This concept is challenging to deal with and intimidates a lot of people, but it needn’t. Homeowner loans are much more than a way to lose your home, and they can be a very sensible investment, when taken out for the right reasons, so to help you decide, here are 4 benefits to homeowner loans that you really ought to know.

4 – Borrow Huge Sums

When you take out a homeowner loan, the stakes are higher because your house is on the line. As a result of this, however, you are able to borrow a larger amount of money than you’d be able to with an unsecure loan, so whether you’re looking to extend your home or go on that once in a lifetime holiday, money doesn’t have to limit you with a homeowner loan. 

3 – Attractive Interest Rates

Because there’s more at stake, the interest rates on homeowner loans are likely to be significantly lower than with unsecured loans. From a lender’s perspective, this is a less risky investment because they know you have a lot on the line. So if you know that you’re not going to have a problem paying your monthly repayments, a homeowner might be a good idea because you’re not going to have to bother with high interest rates.

2 – Consolidating Debt

Are you struggling to pay your debts off? If you think you might benefit from consolidating your debts into one easy monthly repayment, one of the best options available to you is a homeowner loan. Using a secure loan, you could pay off a large number of debts – all with their own individual interest rates, and transfer the debt into a single payment with a low interest rate. This makes debt-management less stressful, and could be well worth the effort of setting up the loan and transferring your existing debt.

1 – Afford Something Special

You have worked hard to get into a position where you own your own home, so by taking out a homeowner loan, you don’t have to limit yourself to investing the money into consolidating debt. Spend the money on something you’ve been trying to save up for. Do you want to help your children through university? What about renewing your wedding vows? Maybe you just want to take time out in your timeshare? Whatever it is you want to do, you can use a secure loan for it.

All you need to do to find out more about secure homeowner loans is speak to the experts at a place like 1st Stop Home loans, with a little bit of guidance, you could find the perfect loan for you.

Money Lending Options for Small Businesses

Finding finance for small business is a question of timing, skill and money. The timing needs to be right in order to attract the customers your business needs. You need to have the skills required not only to set up a business but to maintain it successfully. Unfortunately, in many cases, money is a vital part of turning your business idea into a reality. Here, we examine where to get small business loans, in order to help you determine what the best course of action is in terms of securing the finance for your business. 

Option One: Money Advances

Taking a money advance involves being lent money according to your business turnover. By analyzing your sales, a loan fee is calculated and added to the advance. Repayments are then deducted from each card sale transaction processed by your business.

Pros: Repayments are made in proportion to the sales your company makes. So taking a money advance makes paying back the loan extremely manageable, particularly for new businesses that may be unsure as to precisely how much of a monthly repayment they can afford. You will also avoid the temptation of borrowing beyond what you can afford to pay back.

Cons: Interest fees may be higher than with other types of loans, so do your research before committing. This may not always be the case, however.

Credit Card Borrowing

Credit card borrowing is the process of either paying for items using a credit card, or transferring money from a credit card to a bank account.

Pros: Credit card borrowing is a quick and straightforward way to borrow money. If a business owner already has a credit card, he will be able to borrow instantly. If not, many credit cards can be applied for online within a matter of minutes.

Cons: Credit cards are usually accompanied by high interest rates. As such, penalties can quickly be incurred for not paying the full amount outstanding within one month of the purchase. New business owners may soon find themselves faced with both a large credit card bill and a hefty indent in their bank balance – hardly conducive to establishing a positive cash flow.

Bank Loan

Business owners can sometimes apply for and receive a loan from a bank.

Pros: The loan is available for the entire period of the loan, as it is not repayable on demand. You may be able to negotiate a repayment break and the loan can be linked to the lifetime of the assets or other equipment you are borrowing to pay for. Interest rates are fixed, so there will be no nasty surprises when inflation rates go up or down.

Cons: You may have to give the bank manager information appertaining to your business on a quarterly basis, which can prove an administrative burden. Bank loans tend not to be flexible so you may end up paying interest on funds you are not using. In addition, if your customers are late with their payments, you may struggle to repay your loan on a monthly basis. Possibly the most serious disadvantage to having a bank loan is that loans may be secured against personal assets, for instance your home. You may also have to pay a fee if you wish to repay the loan sooner than the end of the term.

Using Other Lenders

In 2013 there are many other options available to those wishing to borrow money for setting up a business. A variety of reputable and legitimate lenders exist on the Internet high street, offering deals on lending certain amounts of money.

Pros: Using an independent money lender gives you more flexibility. Money lenders will be able to offer you a selection of options when borrowing money. For instance, you can choose between fixed monthly repayments, a money advance repaid as a proportion of your sales, or the option to pay interest-only on the loan for a fixed period of time. By using an independent lender, you can quickly solve your cash flow needs without having to go through any long drawn-out processes.

Cons: Although most lenders are legitimate, there will always be the odd one or two who are out to scam. Make sure the company is regulated by the Financial Conduct Authority and go through all the paperwork, contracts and lending agreements in detail. 

Bank Overdraft

Many business owners will have business accounts with an overdraft facility. If the bank balance goes below zero, the account is overdrawn and interest is charged at a pre-agreed rate. Having a bank overdraft means a person is able to spend more money than they actually have, in return for paying certain fees.

Pros: A pre-arranged bank overdraft is easy to access and can be reassuring to have ‘just in case’. Provided you stay within the agreed limits of the loan, your interest rates are stable, although they may change year to year. The interest charged may also be lower than in the case of credit card borrowing or a loan from elsewhere.

Cons: If the overdraft is not arranged in advance, a charge is likely to be incurred for using the overdraft facility without prior approval. In addition, if the negative balance is beyond the amount agreed, then the bank may charge additional fees. At the same time, higher interest rates may apply. It can be harder to keep track of borrowing using an overdraft, rather than borrowing a set amount and paying it back over a period of time.

Overall, the choice of money lending options is wide when we consider business loan finance. Out of all of those listed here, a money advance seems the most appropriate choice for a new business, as you can pay the money back gradually as your business becomes more and more profitable. Alternatively, finding an independent lender might give you more flexibility, compared to the rigid terms and conditions imposed by big banks or credit card companies. For instance, you can choose from a fixed repayment scheme, an interest-only scheme or a pay as you earn money advance borrowing plan – whatever suits your individual needs best.

Author Bio

Alisa is a finance blogger specializing in SMEs and new business start ups, she also works closely with Merchant Money - http://www.merchantmoney.co.uk/ who offer affordable business loans and flexible funding.

5 Strategies for Getting the Cash that You Need When You Are in a Fix

You never know when you are going to need money in a hurry. When the car needs to be repaired or a medical emergency comes up, you can't tell the mechanic or the doctor that you can't pay due to a lack of funds. What can you do to get money that you need when you are in a pinch and have a severely limited amount of time?

1) Raid Your Retirement Fund

If you are facing a financial emergency, you can borrow up to $50,000 from your retirement fund. You will need to put the money back into your account over a period of up to 60 months, but the penalties for not doing this are not extremely heavy, at least when compared to normal loans and forms of financing. The advantages to such a loan are the fact that you can get the loan with few or no questions asked and you will repay yourself with interest, instead of a bank.

2) Sell Gold Or Silver

That silver ring or gold watch that has been sitting on your dresser for the last few years can be worth hundreds or thousands of dollars. While it is true that you are going to lose these items, you will not need to worry about paying back debts and losing money to interest.

3) Apply For A Payday Loan

While not an ideal solution, you can have the funds in your bank account within hours. If you have bad credit, it may be your only option when you need money in a pinch. Those who don't like payday loans can look for personal loans online or through their bank. You can expect a heavy fee to be attached to a payday loan, and it will quickly build up money if you don't pay off the loan on time, but it is one of the easiest ways to get a large amount of money almost immediately.

4) Access The Equity In Your Home

Homeowners can take out a home equity loan to get cash quickly at a low interest rate. With mortgage rates at historic lows, you will pay significantly less in interest charges than you would if you got a personal loan or used a credit card. The only risk is that you will be placing your home up as collateral for the loan, but this won't be a problem if you make all of the required payments on the loan.

5) Liquidate A Portion Of Your Stock Portfolio

Stocks, bonds, and other securities can be sold instantly to put cash in your pocket. Savings bonds can be cashed in instantly as well if you need money in a hurry. A silver lining to having to sell stocks or bonds is that you could take a capital loss that will help you save money when it comes time to file your taxes.

There are a lot of ways to get money when you are in a financial jam. While not all of these options are ideal, you will be able to get the money that you need, when you need it. When the bills need to be paid, it's important to know where you can turn to get funds in a hurry.

Financial Future: How does filing bankruptcy affect future finances?

Depending on your situation, filing bankruptcy can either have a negative or a positive effect on future finances. Filing bankruptcy will no doubt show up on your credit report. This will cause many lenders to not lend money for a home, car, or to get a personal loan. Many creditors will ask if you have ever filed bankruptcy in the past. The answer to this question could mean the difference between getting a loan in the future or not. Of course, not all lenders will turn you down if you’ve had a bankruptcy in the past. It will depend on other things like how much money you put down and what the need is.

Negative

Business owners may be negatively affected by a bankruptcy because it can cause lenders not to give you a loan for business needs. This means if you are trying to start a business or restart one or get money for a business need, it may be difficult to get a loan from a lender with a bankruptcy on your credit report. However if you fail to file for bankruptcy, your future financial situation could be much worse.

Positive

Bankruptcy allows you to get your financial house in order if you are surrounded by debt and have no way to pay your debts. Instead of staying in the same situation and having your debts continue to mount. Bankruptcy will help you straighten your finances out and provide a new start. Bankruptcies don’t last forever. They don’t show up on your credit report forever. They drop off just like any other negative mark on your credit report. A chapter 7 bankruptcy will last for seven years on your credit report and a chapter 13 will last for 13 years on your credit report. Which one you choose depends on your individual situation.

Things to Consider

Many people think it’s the worse option available and try to do everything to avoid it. However, bankruptcy can actually be the best thing to do. It can be a lifesaver. And it can help turn your dire financial situation around. Bankruptcy acts as a shield between you and your debts.

For many people, it allows them a chance to start over again with their finances and gets things organized. You credit score will definitely be affected by a bankruptcy. It will lower it but it may not lower it as much as having a pile of unpaid or bad debt on your credit.

The Truth about Bankruptcy

Bankruptcy can be a bad thing to many people. Most people feel as if they have failed if they file bankruptcy. But bankruptcy does not mean you are a failure. Things happen unexpectedly that we are not able to control, such as job loss, income decreasing, health issues, and other personal issues that interrupt our normal lives and can cause serious consequences.

Good Bankruptcy Attorneys can help greatly in the process of filing for bankruptcy. Experienced attorneys can recommend a credit counseling or debt consolidation that’s better than filing bankruptcy or help you file a claim.

About the AuthorAshley Parker has written hundreds of articles on a variety of topics for more than seven years. Topics that she writes on include alternative energy, healthy living, home design, career advancement, travel, SEO marketing and website content.

How Debt Consolidation Can Help You?

English: Day 3 of the protest Occupy Wall Street in Manhattan's Zuccotti Park. (Photo credit: Wikipedia)

What it Means

When dealing with debt consolidation, you’re taking out a big loan in order to pay off other loans of various proportions. Often enough this is done in order to help provide a smaller interest rate or help bring security to a fixed rate of interest. Consolidation can often occur in situations where:

• A company is about to go bankrupt
• Credit card debt needs to be paid off
• Student loans are required 

Most of the time it’s done simply to service a single loan entirely because multiple loans can lead to complications that most people tend to avoid. In addition, debt consolidation can also originate from the creation of unsecured loans that might go into yet another unsecured loan. Usually it takes place when secured loans go up against assets that may serve as a form of collateral (i.e. a house, a car, etc.) The loan’s collateralization give it much lower interest rate meaning the asset owner will then agree to follow foreclosure of the assets to help pay off the loan. 

Bankruptcy Savior

Another good reason to choose debt consolidation, especially if you’re part of a big company that handles a ton of finances, is for the amount of discount that can be gained towards the loan. When a severe situation such as bankruptcy occurs, debt consolidators will more often than not purchase the loan at a far greater discount than the usual base price. If a debtor is looking to be prudent with his or her loans, they can feel free to look around and shop for various consolidators across the countries that are able to pass these savings along. Debt consolidation can ultimately affect the abilities of the debtors and can go on to discharge these very debts while in bankruptcy. These are major business decisions that need to be thought out and considered before making any attempts at an execution. 

Credit Cards

Some people consider debt consolidation as the best choice for when it comes time to pay off a large credit card debt. Credit cards often have carried a very large interest rate, larger even than most unsecured loans that come from a local bank. The ones in debt who have large property such as a house or a car might be able to get lower rates from their loans as long as they are secured and are using a property as a measure of collateral. In this case, the gross interest and cash flow that gets paid towards the debt will be at a lower price. This allows debts to be paid off much sooner which also means less interest for the debtors to pay off over time.

Student Consolidation

Debt consolidation can also be a part of student federal loans. Existing loans are first bought by the Department of Education. Then, after consolidation, fixed interest is set based on the current rate of interest. If a student puts two or more loan types together into one consolidation loan, weighted average will establish the approximate rate in accordance with the current interest rates.

Financial Tips for Seniors Getting Payday Loans

Payday loan: A short term unsecured loan intended to cover the borrower’s expenses until they receive their next paycheck.

Payday loans have proven a popular way to borrow money for some time now, and not only amongst the employed, but also amongst senior citizens. Although payday loans have proven popular, seniors are still advised to exercise caution when applying for a short term unsecured loan because some providers offer interest rates that aren’t as competitive as others. Therefore, seniors need to be aware that there’s often a substantial difference between the offerings of one payday loan provider and the offerings of another.

Perhaps the best advice that can be given to seniors interested in payday loans is to shop around. There are numerous providers of these financial products and some are simply a much better choice than others because they offer better interest rates, they make it plain how much the borrower must repay and they also make their terms and conditions clear right from the start. Moreover, seniors are also encouraged to ask themselves if they really need a payday loan and whether they’re sure they’re comfortably able to make repayments.

Provided seniors need to apply for a short term unsecured loan and they can comfortably afford to make repayments, they should take the following advice into account when sourcing payday loan providers.

1. Know the risks

Before seniors apply for payday loans, in fact before they even begin sourcing short term unsecured loans, they’re encouraged to familiarise themselves with the risks involved. Provided that they are able to meet their loan repayment commitments they won’t encounter any problems, though should they find themselves unable to meet their repayment commitments they could find themselves in hot water. Therefore seniors need to make sure that they can afford to make repayments comfortably before applying, and if necessary, discuss their situation with someone who has a good understanding of the process involved. 

2. Shop around

As was mentioned earlier, it is imperative that seniors shop around for a competitive provider of payday loans because some providers are much more competitive than others, so seniors stand to pay back substantially more if they’re not selective regarding the payday loan providers they apply for loans to. There’s more to a competitive loan than just the APR, though that is inherently important, so also take note of the fine print and terms and conditions of the loan, and also check online for negative reports about a provider before applying since providers that attract negative publicity should naturally be avoided. 

3. Source a competitive APR

The APR (Annual Percentage Rate) tells borrowers the cost of a short term unsecured loan with regard to how much they need make in repayments, though as discussed above, seniors still need to take into account other factors when applying for a loan. If they have a good credit rating this could help them to procure a more competitive interest rate, though they must also bear in mind that if they encounter problems making repayments this will affect their credit rating adversely and may make borrowing in the future problematic. 

4. Check the small print

Failing to check the small print is where many seniors experience problems after successfully applying for payday loans, though it shouldn’t because good loan providers make available all the information seniors require when applying for payday loans online. Seniors need to familiarise themselves with, amongst other considerations, the implications of non-payment to their credit provider and the disclosure of fees, including the APR (interest rate). 

5. Don’t apply for more than one loan

Seniors also need to bear in mind that applying for more than one short term loan at a time can also prove problematic, and that they should never apply for another unsecured loan in order to meet their outstanding loan commitments. Too many people, and not only senior citizens, have landed themselves in hot water by applying for a second loan to repay the first, so avoid applying for another payday loan until the first has been repaid.

Provided that seniors take these five tips into account, they’ll find that payday loans are a competitive means of procuring quick cash when needed.

Developing A Financial Plan for Getting Out of Debt

Although the average person does tend to have some debt, ridding yourself of debt is the best way to achieve financial prosperity. For many people, getting out of debt can seem very challenging. One of the best ways to help eliminate your debt is to develop a financial plan that addresses the personal problems that you may face along the way. By learning how to develop such a plan, ridding yourself of debt and starting fresh should be achievable in no time at all.

Prepare A Physical Budget on Paper or Your Computer

The reason that many people end up in debt in the first place is because they didn't take the time to sit down and prepare a budget. It is all too easy to let yourself fall into debt without giving yourself a reality check on the true numbers. Add up all of your debts, money in the bank and investments to see where you truly are financially. Once you have all your ducks in a row, it is time to develop a strategy that helps you go from the red to the black.

Snowball Your Debt Into A Lower Interest Rate

While many people may question the logic of trading one debt for another, paying off a debt with a high interest rate in trade for a debt with a low interest rate is one of the best moves you can make when you are in debt. Many people will complain that they are unable to get out of debt because of the excessive interest rates. The best way to set yourself on a course towards repayment is to simply pay off excessively high interest rate debts.

Consolidate What You Can't Afford To Pay Now

Consolidation can cause you to pay more over the long-term, but in times when your income is low, it is the perfect way to avoid more drastic measures such as bankruptcy or a lower credit ranking. This process extends the period of time that you have to pay off your debt, making the monthly payments smaller and more manageable. Combined with the above process of snowballing your debt, consolidation can put you into a position where it is possible to start saving up the required money to pay off what you owe.

Pay Down Your Smallest Debt First

In some instances, you may not be able to consolidate or snowball your debts. The best strategy in such a situation is to pay off your smallest debts firsts. According to All Womens Talk, "Instead of trying to tackle the biggest debt you have since it is hanging over your head the most, switch your focus to paying down the smallest debt first. Why so? It is eating up interest just like the larger debt, yet because it is a smaller bill, you'll be able to pay it off quicker, freeing up some money per month, and freeing up an extra interest rate."

Loans With Private Entities Should Be Dealt With First

Loans with private organizations can often be hazardous to say the least. If you are unable to keep up with payments, private lenders can easily take the money straight out of your paycheck. This situation occurs most frequently with those who have student loan debt. Always focus on eliminating the debt that can cause the most financial problems first.

Peter Smith is a professional blogger that provides financial advice and tips to consumers. He writes for TitleMax, a title loan company.

Old Fashioned Solution to a Current Problem

Loans (Photo credit: zingbot)

Mounting debt is an increasingly common issue for people throughout the UK and one of the most effective methods of getting debt back under control is something that has been around for a surprising period of time. Guarantor loans are a different type of loan which involves utilising a third party who guarantees to continue making repayments should the borrower fail to do so. Often, guarantor loans are chosen when an individual has a bad credit history or no credit history at all as they would generally be viewed as high risk by financial institutions.
However this risk is significantly reduced if a guarantor is willing to take the responsibility of repaying the loan in the event that the borrower defaults and often the lender will agree to grant a loan. 

What are Guarantor Loans?

A question that we are often asked is what actually are guarantor loans? Widely regarded to be an innovation in the financial world, it is understandable that people may have doubts or queries regarding how they work but in the details below, we hope to outline exactly what they entail.


When it comes to applying for a guarantor loan from a lender such as UK Credit, the key difference between this type of loan and standard unsecured loans is that the applicant needs to nominate someone who will support their loan application - this person is called the guarantor. The guarantor can literally be anyone including family (not spouse or partner), friends, work colleagues etc who know the borrower well and will be willing to support their loan application.


It is essential that the guarantor satisfies a number of criteria, such as being a homeowner with a regular income of their own and a good credit rating. Assuming these criteria are satisfied, the application looks far more favourable to the lender and this is what makes an application much more likely to succeed when compared to a normal unsecured loan.


If you opt to apply for a guarantor loan, it is important that you discipline yourself. Not only because you were provided with a loan despite your current credit rating but also because defaulting on the repayments could make your credit rating even worse.


You should be disciplined to ensure all of the required monthly repayments are made on time with any type of loan but in the case of guarantor loans, you must take into consideration that if you fail to pay the loan, it is your guarantor who will be asked to cough up the money. Although they have been put in place to act as a safety net should things not work out, it is not a good practice to let your guarantor pay for the loan when they offered huge help with your loan application!

Benefits of Guarantor Loans

Contrary to popular belief, although the guarantor loan is an unsecured loan, they are generally available at comparable interest rates to other unsecured loans.


Guarantor loans are great for people who need to improve their credit rating or to get a positive credit score behind them. The applicant must be certain that they can afford to repay the loan to gain the benefits this loan provides and as with any type of loan, it can always prove to be beneficial to shop around for the best deals.


Bio – Amanda GillamI work as a blog writer for a finance company called Solution Loans which specialises in Guarantor Loans. I hold a degree in financial management and enjoy writing about a variety of topics including finance, transport, travel, sport and business.