4 Tips for Working for Creating a Debt Management Plan

calculator-1516869_640It can be hard to stay on a financial budget at all times. There are so many temptations in life and things that you may want to purchase. This is typically the reason some individuals are simply on a budget. Getting items that you don’t necessarily need, but want can land you in a lot of debt. It may be that your debt management plan doesn’t go as planned and this is when you may need to rely on other professionals to see you through this time and offer some tips that will help you get on the right financial track. Being aware of things you can do to alleviate your debt is sure to be ideal.

Tip #1: Discuss effective methods

When you rely on a debt collection agency to help you get your life back on track when your financial status is way out of control, you will get some benefits. This is by far the best way for you to get your life back and work to have a better control of your money in the process.

Listed below are some things this agency can assist with:

  1. Creating a budget that you will stick to at all times and even some tips for allowing you to do so.
  2. Looking at the amount of your income versus the debt you have to can allow this agency to put a budget in place. You will need to make more than you spend for optimal results
  3. Providing you with detailed information on how to stay on better track with your money is only one of the things an agency of this type can achieve for you.

Tip #2: Practice caution

You will want to avoid jumping into any type of spending habit that simply is over the amount of money you make. This can quickly get you in debt, and this is the last thing you will ultimately want to do.

Be sure to avoid taking a plunge into debt and getting things that you simply don’t have to have. One way to do this is to write down all of the things you purchase each day and keep a list. Doing so will allow you to know where your money went and may decrease the chance of you spending as much.

Tip #3: Reduce credit cards

You will want to limit the number of credit cards you keep in your possession. This is one of the ideal ways to prevent buying too many things that will directly land you in lots of debt.

Consider just having one or two credit cards on hand, and this can decrease the chance that you may feel pressured to use many others. This is by far the best way to help you keep spending down and your debt in check in the process.

Studies do show the average household does carry $6,500 worth of debt. This is a substantial amount, but many people have much higher numbers than these to worry about each year.

Taking time to learn things you can do that will help reduce the amount of debt you do have is one of the best things you can do. This will take the right amount of time and effort on your part, but it can be done with the right attitude and professionals that are willing to help you. Get started today, and you’ll be glad you did when you have your finances under better control for a less stressful life and a larger bank account. There is nothing like having financial peace to allow you to face each day with a better mood and place in life to be!

5 Truths About Bank Loans You Need to Know

document-428331_640Did you know most millennials are drowning in debt?  The cause is a combination of student loans and a changing a job market and the effect has been chilling and some have wondered if millennials will ever be able to get out of debt.   A good part of getting out of debt is being able to earn more and spend less.  But another aspect is knowing how to manage debt.  This includes understanding bank loans – even the things the banks won’t tell you.  As such, here are five truths about bank loans you need to know.

  • Debt-to-Income

We all reach a point in our lives when it is time to settle down.  Maybe some of your friends are already doing this – getting married, having kids, buying houses.  But here is what you need to know about mortgages; almost all of them are written following the same rules.

There is a simple reason for this as most lenders sell their mortgages to get back the funds to make more loans.  This is called the secondary market and to a large extent, the rules of the secondary market dictate the acceptable parameters for mortgages.

In terms of getting loan approval, one of the biggest things you need to know about is called the debt-to-income ratio.  This is how much total debt (including those pesky student loans) you have compared to your income.  While the max debt-to-income ratio is 45%, most banks won’t write mortgages above 42%.   Granted there are some exceptions, but they are few and far between.

  • Be Prepared

Rate locks usually apply to home mortgages but they can also be used for other loans as well.  Truth be told a 30-day rate lock is not a long time as there are several steps in the process of buying a home which need to happen before you can close.

As such, you want to be prepared by having all your documentation ready.  This will help you get the final approval from your bank without any delays, ensuring that you won’t have to pay any additional fees to keep that low rate locked in.

  • Not the Only Game in Town

The banks are scared to death of this and the entire industry is currently undergoing a massive wave of disruption – just ask any college buddy who is working at one.  While periods of disruption are never smooth, it also creates an opportunity for you as banks are NOT the only option.

Today you can choose from peer-to-peer lenders, alternative finance companies, and even sources private capital.  As such, it pays to shop around.  Don’t just talk to the banks in your area, but go online and how other people getting the loans they need.  Take a look at pros and cons of getting a conventional bank loan vs a working capital loan and then decide which one is right for you.

It doesn’t matter if the loan is for a new home or if you need to get additional financing for your business.  Shop around and see what is the best fit for you.  Remember banks are not the only game in town.

  • You Need Equity

Building on the third truth, the rules are changing.  This is especially relevant if you are looking at a car loan or a loan for your business.  While banks tend to focus on what is known as the loan-to-value ratio, newer entrants have a different way of looking at things.  For them, they are looking more at your ability to repay than the overall loan-to-value, sure they do take it into account, but it is not the key criteria for their decision-making process.

  • Fees Are Negotiable

Most banks loathe to admit this, but their fees are negotiable.  Why do they hate to admit this?  It is because the fees are a significant part of how they make money on loans.  As such, you should not only look at the interest rate, but also the fees which go into calculating your Annual Percentage Rate (APR).

Depending on the loan and its size, many of these fees are negotiable and getting a break can save you hundreds or thousands of dollars per year.  Don’t be afraid to ask, the fees are negotiable.

All About Payment Protection Insurance

document-428331_640Payment Protection Insurance, or PPI is a type of insurance that protects consumers and will pay out a certain amount of money that can assist you to cover monthly payments on loans, mortgages or credit cards should you find yourself in a position where you are unable to work or if you become unemployed.

This is designed to give you peace of mind since you are taking out a big purchase or financial product. As with any other type of insurance, this is the most sensible action to do to keep yourself protected from unexpected events that may occur later on in your life. However, a lot of financial institutions have mis-sold PPI over the years to several millions of people.

If you are in the UK, there are several ways to find out if you’ve been mis-sold PPI:

  • At the time you took out the loan or credit card, you were informed that getting a PPI is compulsory
  • You find out through your bank statements that it was added to your repayment without your knowledge
  • If the policy wasn’t explained to you properly by the salesman
  • At the time you took out the loan or financial product, you were self-employed, unemployed or retired – you are ineligible for a PPI and it means that you were mis-sold one.

You can check if you got Payment Protection Insurance, and you can still be able to claim if it was more than six years when you last took out a financial product. PPI dates back as far as the 1980s, although you will have to show proper documentation when you file a claim. The lenders themselves keep a copy of your information on file for six years and you can request and use the copy to file and process your claim.

Also, PPI is known through other names and these are: Loan care, Payment cover, Loan Protection, ASU and Protection Plan. It’s best to check your documents if any of these terms are on your statements, there is a possibility that you have been mis-sold PPI. Now, if you bought a financial product through a broker and they have gone bankrupt, there are still ways for you to go ahead and make a claim.

It is not too late to file for a claim but there is already a cut-off date for filing and it’s best for you to start out sooner than later. The proposed deadline is set to be June 2019.

It is possible to claim PPI on your own, yet it can be time-consuming and you’d have to take care of everything by yourself. If you do have several to make, it’s best to get the assistance of a professional claims management company and they will handle the entire process but at the same time keep you updated and advised on where’s the status of your claim is at. In this way, you can save time and money and you’ll be ensured that the process will be handled properly.

Looking to Personal Crowdfund?

coins-1523383_640There are generous people out there. There are people drawn to help with time, talent, and treasure when they can.

They will do what they can to help with an appeal meaningful to them. When they know of a need to pay unexpected medical bills, fulfill a sick child’s dream, send a niece on her honeymoon, help a nephew with college tuition, or anything that seems fair, honest, and needy, they are willing to help make it happen.

Personal crowdfunding is an increasingly popular way to raise such money.

Startup businesses use crowdfunding to raise cash to open their business doors. Little league coaches use it to buy team uniforms. And, moms and dads use it just to raise money for a special vacation.

Crowdfunding began searching for big investors to help kick start businesses. It succeeded getting many a business off the starting line when traditional financing sources like banks slowed the flow of capital.

It can be quicker and less binding than lending and equity sharing. But, it caught on quickly with the private sector because it is basically a simple application of the internet’s universal reach to tap the average donors and concerned citizens.

Ron Lieber, writing for The New York Times observed, “They don’t replace traditional charity, or obviate the obligation to vote and lobby for policy changes that could reduce many of the needs they serve. But they can allow you to honor your own family’s history of having been helped by letting you pay back those who have supported you in the past, or toss the rope to others who are in circumstances like ones that you once found yourself in.”

Don’t waste the time or appeal.

For your sake and the contributors, you’ll want to choose the web platform for personal financing carefully.

You need a popular site with enough natural browser traffic to bring donations your way, but you will also want one that represents you well because your friends, family, and social media contacts are your first circle of appeal.

The looks and language of the website must represent you and support your credibility. So, you will want to one easy to locate and navigate.

It needs links, of course, to social media to facilitate and stretch the reach of your campaign, and it needs support in setting up your appeal.

Design, visuals, and even videos make a personal appeal more dynamic and powerful. And, you’ll need to personalize and monitor the fundraising as it goes along.

The co-founders of Plumfund.com, Sara and Josh Margulis, for example, promote their personal crowdfunding site as, “Our tasteful, online fundraising platform allows friends and family to give and receive without fear or etiquette concerns.”

And, any plan must pursue the website fees and their potential impact. Some sites charge per donation; some take a flat fee or percentage of the donations, and others just charge for credit card processing fees.

So, what’s your plan?

Collecting money never comes easy. And, it can be difficult for people to swallow their pride and reach out.

But, with the internet’s reach, you’re looking at hundreds, perhaps, thousands of potential contributors.

You need the web platform, of course. But, you also need a compelling need, a “sales” pitch that secures interest, and appeals to the better instincts of browsers.

You need to set a reasonable and achievable financial target, and you must update your donors on the progress.

You should have a way to recognize and show appreciation for donations, and you want to end the campaign in a reasonable time-frame.

ConversionXL lists other “tricks” to help your personal crowdfunding succeed. For example, they suggest avoiding any all or nothing appeal, including your personal contact information and justification for the pitch, publishing the names of donors, and display willingness to accept even the smallest donation.

You not have to write your appeal in the style of a PR firm in San Francisco but your sincerity of your need should be apparent.

Personal crowdfunding is rewarding if a little more work than you might expect.

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4 Tips for Working for Creating a Debt Management Plan

calculator-1516869_640It can be hard to stay on a financial budget at all times. There are so many temptations in life and things that you may want to purchase. This is typically the reason some individuals are simply on a budget. Getting items that you don’t necessarily need, but want can land you in a lot of debt. It may be that your debt management plan doesn’t go as planned and this is when you may need to rely on other professionals to see you through this time and offer some tips that will help you get on the right financial track. Being aware of things you can do to alleviate your debt is sure to be ideal.

Tip #1: Discuss effective methods

When you rely on a debt collection agency to help you get your life back on track when your financial status is way out of control, you will get some benefits. This is by far the best way for you to get your life back and work to have a better control of your money in the process.

Listed below are some things this agency can assist with:

  1. Creating a budget that you will stick to at all times and even some tips for allowing you to do so.
  2. Looking at the amount of your income versus the debt you have to can allow this agency to put a budget in place. You will need to make more than you spend for optimal results
  3. Providing you with detailed information on how to stay on better track with your money is only one of the things an agency of this type can achieve for you.

Tip #2: Practice caution

You will want to avoid jumping into any type of spending habit that simply is over the amount of money you make. This can quickly get you in debt, and this is the last thing you will ultimately want to do.

Be sure to avoid taking a plunge into debt and getting things that you simply don’t have to have. One way to do this is to write down all of the things you purchase each day and keep a list. Doing so will allow you to know where your money went and may decrease the chance of you spending as much.

Tip #3: Reduce credit cards

You will want to limit the number of credit cards you keep in your possession. This is one of the ideal ways to prevent buying too many things that will directly land you in lots of debt.

Consider just having one or two credit cards on hand, and this can decrease the chance that you may feel pressured to use many others. This is by far the best way to help you keep spending down and your debt in check in the process.

Studies do show the average household does carry $6,500 worth of debt. This is a substantial amount, but many people have much higher numbers than these to worry about each year.

Taking time to learn things you can do that will help reduce the amount of debt you do have is one of the best things you can do. This will take the right amount of time and effort on your part, but it can be done with the right attitude and professionals that are willing to help you. Get started today, and you’ll be glad you did when you have your finances under better control for a less stressful life and a larger bank account. There is nothing like having financial peace to allow you to face each day with a better mood and place in life to be!

5 Truths About Bank Loans You Need to Know

document-428331_640Did you know most millennials are drowning in debt?  The cause is a combination of student loans and a changing a job market and the effect has been chilling and some have wondered if millennials will ever be able to get out of debt.   A good part of getting out of debt is being able to earn more and spend less.  But another aspect is knowing how to manage debt.  This includes understanding bank loans – even the things the banks won’t tell you.  As such, here are five truths about bank loans you need to know.

  • Debt-to-Income

We all reach a point in our lives when it is time to settle down.  Maybe some of your friends are already doing this – getting married, having kids, buying houses.  But here is what you need to know about mortgages; almost all of them are written following the same rules.

There is a simple reason for this as most lenders sell their mortgages to get back the funds to make more loans.  This is called the secondary market and to a large extent, the rules of the secondary market dictate the acceptable parameters for mortgages.

In terms of getting loan approval, one of the biggest things you need to know about is called the debt-to-income ratio.  This is how much total debt (including those pesky student loans) you have compared to your income.  While the max debt-to-income ratio is 45%, most banks won’t write mortgages above 42%.   Granted there are some exceptions, but they are few and far between.

  • Be Prepared

Rate locks usually apply to home mortgages but they can also be used for other loans as well.  Truth be told a 30-day rate lock is not a long time as there are several steps in the process of buying a home which need to happen before you can close.

As such, you want to be prepared by having all your documentation ready.  This will help you get the final approval from your bank without any delays, ensuring that you won’t have to pay any additional fees to keep that low rate locked in.

  • Not the Only Game in Town

The banks are scared to death of this and the entire industry is currently undergoing a massive wave of disruption – just ask any college buddy who is working at one.  While periods of disruption are never smooth, it also creates an opportunity for you as banks are NOT the only option.

Today you can choose from peer-to-peer lenders, alternative finance companies, and even sources private capital.  As such, it pays to shop around.  Don’t just talk to the banks in your area, but go online and how other people getting the loans they need.  Take a look at pros and cons of getting a conventional bank loan vs a working capital loan and then decide which one is right for you.

It doesn’t matter if the loan is for a new home or if you need to get additional financing for your business.  Shop around and see what is the best fit for you.  Remember banks are not the only game in town.

  • You Need Equity

Building on the third truth, the rules are changing.  This is especially relevant if you are looking at a car loan or a loan for your business.  While banks tend to focus on what is known as the loan-to-value ratio, newer entrants have a different way of looking at things.  For them, they are looking more at your ability to repay than the overall loan-to-value, sure they do take it into account, but it is not the key criteria for their decision-making process.

  • Fees Are Negotiable

Most banks loathe to admit this, but their fees are negotiable.  Why do they hate to admit this?  It is because the fees are a significant part of how they make money on loans.  As such, you should not only look at the interest rate, but also the fees which go into calculating your Annual Percentage Rate (APR).

Depending on the loan and its size, many of these fees are negotiable and getting a break can save you hundreds or thousands of dollars per year.  Don’t be afraid to ask, the fees are negotiable.

All About Payment Protection Insurance

document-428331_640Payment Protection Insurance, or PPI is a type of insurance that protects consumers and will pay out a certain amount of money that can assist you to cover monthly payments on loans, mortgages or credit cards should you find yourself in a position where you are unable to work or if you become unemployed.

This is designed to give you peace of mind since you are taking out a big purchase or financial product. As with any other type of insurance, this is the most sensible action to do to keep yourself protected from unexpected events that may occur later on in your life. However, a lot of financial institutions have mis-sold PPI over the years to several millions of people.

If you are in the UK, there are several ways to find out if you’ve been mis-sold PPI:

  • At the time you took out the loan or credit card, you were informed that getting a PPI is compulsory
  • You find out through your bank statements that it was added to your repayment without your knowledge
  • If the policy wasn’t explained to you properly by the salesman
  • At the time you took out the loan or financial product, you were self-employed, unemployed or retired – you are ineligible for a PPI and it means that you were mis-sold one.

You can check if you got Payment Protection Insurance, and you can still be able to claim if it was more than six years when you last took out a financial product. PPI dates back as far as the 1980s, although you will have to show proper documentation when you file a claim. The lenders themselves keep a copy of your information on file for six years and you can request and use the copy to file and process your claim.

Also, PPI is known through other names and these are: Loan care, Payment cover, Loan Protection, ASU and Protection Plan. It’s best to check your documents if any of these terms are on your statements, there is a possibility that you have been mis-sold PPI. Now, if you bought a financial product through a broker and they have gone bankrupt, there are still ways for you to go ahead and make a claim.

It is not too late to file for a claim but there is already a cut-off date for filing and it’s best for you to start out sooner than later. The proposed deadline is set to be June 2019.

It is possible to claim PPI on your own, yet it can be time-consuming and you’d have to take care of everything by yourself. If you do have several to make, it’s best to get the assistance of a professional claims management company and they will handle the entire process but at the same time keep you updated and advised on where’s the status of your claim is at. In this way, you can save time and money and you’ll be ensured that the process will be handled properly.

Looking to Personal Crowdfund?

coins-1523383_640There are generous people out there. There are people drawn to help with time, talent, and treasure when they can.

They will do what they can to help with an appeal meaningful to them. When they know of a need to pay unexpected medical bills, fulfill a sick child’s dream, send a niece on her honeymoon, help a nephew with college tuition, or anything that seems fair, honest, and needy, they are willing to help make it happen.

Personal crowdfunding is an increasingly popular way to raise such money.

Startup businesses use crowdfunding to raise cash to open their business doors. Little league coaches use it to buy team uniforms. And, moms and dads use it just to raise money for a special vacation.

Crowdfunding began searching for big investors to help kick start businesses. It succeeded getting many a business off the starting line when traditional financing sources like banks slowed the flow of capital.

It can be quicker and less binding than lending and equity sharing. But, it caught on quickly with the private sector because it is basically a simple application of the internet’s universal reach to tap the average donors and concerned citizens.

Ron Lieber, writing for The New York Times observed, “They don’t replace traditional charity, or obviate the obligation to vote and lobby for policy changes that could reduce many of the needs they serve. But they can allow you to honor your own family’s history of having been helped by letting you pay back those who have supported you in the past, or toss the rope to others who are in circumstances like ones that you once found yourself in.”

Don’t waste the time or appeal.

For your sake and the contributors, you’ll want to choose the web platform for personal financing carefully.

You need a popular site with enough natural browser traffic to bring donations your way, but you will also want one that represents you well because your friends, family, and social media contacts are your first circle of appeal.

The looks and language of the website must represent you and support your credibility. So, you will want to one easy to locate and navigate.

It needs links, of course, to social media to facilitate and stretch the reach of your campaign, and it needs support in setting up your appeal.

Design, visuals, and even videos make a personal appeal more dynamic and powerful. And, you’ll need to personalize and monitor the fundraising as it goes along.

The co-founders of Plumfund.com, Sara and Josh Margulis, for example, promote their personal crowdfunding site as, “Our tasteful, online fundraising platform allows friends and family to give and receive without fear or etiquette concerns.”

And, any plan must pursue the website fees and their potential impact. Some sites charge per donation; some take a flat fee or percentage of the donations, and others just charge for credit card processing fees.

So, what’s your plan?

Collecting money never comes easy. And, it can be difficult for people to swallow their pride and reach out.

But, with the internet’s reach, you’re looking at hundreds, perhaps, thousands of potential contributors.

You need the web platform, of course. But, you also need a compelling need, a “sales” pitch that secures interest, and appeals to the better instincts of browsers.

You need to set a reasonable and achievable financial target, and you must update your donors on the progress.

You should have a way to recognize and show appreciation for donations, and you want to end the campaign in a reasonable time-frame.

ConversionXL lists other “tricks” to help your personal crowdfunding succeed. For example, they suggest avoiding any all or nothing appeal, including your personal contact information and justification for the pitch, publishing the names of donors, and display willingness to accept even the smallest donation.

You not have to write your appeal in the style of a PR firm in San Francisco but your sincerity of your need should be apparent.

Personal crowdfunding is rewarding if a little more work than you might expect.