Take these steps if you wish to pay off your debts as soon as possible

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If you have taken long to think about the best indicator that will prompt you to trigger off your credit card debts, then remember that it isn’t dependent on your income or the total amount of debt that you owe! Rather it mostly depends on the way you plan to trigger off your debts. Researchers, Michaela Pagel and Theresa Kuchler published the works in their latest working paper by the National Bureau of Economic Research.

More than 520 customers were chosen as a sample in between the months of September 2014 and 2016 and it was made sure that all of them linked their checking accounts, received bi-weekly paychecks and appeared to link all credit card accounts. After they signed up for ReadyForZero, the customers made a plan on the total reduction that they wished to make on their debt every month. This turned out to be the biggest predictor of how much they’ll be able to pay down. However, the American consumers have got a long way to go as the Americans collectively owe a mammoth amount, that of $1 trillion in the form of credit card debt.

People still give more priority to their short term wants

Even after the consumers were provided with such improved odds, they still fell short of achieving their goals. On an average, every individual was just able to reduce their debt by 25-30% of the dollars that they planned to pay off. It was seen that the consumers got impatient and they wished to fulfill their short term goals which they gave more priority over paying off their debts. If you ask about this to the behavioral economists, they will name this as present bias which including giving more priority to short-term wants rather than on long-term wants.

This is not the first study which concluded that the commitment to repay debt is a vital ingredient which lets you actually do it. Majority of the people are more likely to pay off their credit card bills when they get a called where an automated voice asks them to commit themselves to paying back the debt within a short time span, like 24-72 hours. This was found out by the researchers who studied this in the Boston University’s Questrom School of Business.



Millennial women are lagging behind men with their finances

Both the millennial men and women are gradually giving more priority to their family and household but there is a sharp difference in the way in which they plan to achieve a goal. Men usually tend to give more value to money and they are given more pressure about offering money to the family. For the women, it’s just flexibility and time. Their long term goal is to just have that balance between life and work.

One more divide for women and men is parenthood. More than half of the millennial parents are of the opinion that having kids has got a positive impact on the advancement of their career. This half is mostly the male generation. It is not that having kids will always have a positive impact as 25% of the female millennials reported that their career advancements were halted due to the fact that they had kids.

Therefore, as the American consumers are all drowning in debt in all forms, it is high time that they take up immediate actions to bid goodbye to debt and live debt free.


Paperless Borrowing Is Good For Your Business and the Society

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Instant loans or quick cash loans are a great means of matching your urgent cash requirements. Certain mismatches pertaining to your cash flow may arise out of exigency. You must know the benefits of availing the personal loans online and how simple it is for you to acquire them. Alongside a few other benefits, these loans prove to be cost-effective and yield considerable flexibility in repayment.

Small Businesses Are Opting For Green Options

Going Green is actually about going paperless and making the most of other resources. Instead of using hoardings, a majority of businesses are utilizing the power of social media for promoting their brands. This is a great move towards consuming less of paper and saving more trees.

Small businesses are even opting for paperless credit options like quick loans in their attempt to reduce operational costs and accumulate working capital. Paperless loans can help save much of the processing time besides saving the processing costs.

Benefits of Paperless Loans Have Been Stated Below:

Simple and Fast

Cash loans are much simpler and faster to achieve than the secured loans that are of traditional nature and taken for a longer term. Quick loans can be processed and the funds transferred instantly due to a back-end support technology that’s based on consumer data. Much of this ease and comfort has been driven by the advent of technology.

No Paperwork

Online loans don’t involve paperwork. They don’t require you to spend time in visiting a physical lending organization. They even help save much of your invaluable time as the processing time is much faster than traditional loans. The KYC information of an application is processed by the engine for determining the creditworthiness of the applicant. The funds are transferred within 24 hours. These loans are your perfect option to go green.

Apt Borrowing

The utility bills that you pay and your monthly income help in determining the amount that you actually need to borrow. It helps to keep a borrower away from the debt burden besides helping him borrow within the eligible limit. The creditworthiness of a borrower is even enhanced as recovery of cash loans involves a simple and timely procedure.

Data Security

All individuals aren’t comfortable about sharing his income and other personal details. The lending organization is bound to store all personal information pertaining to customers in an encrypted server. Such personal data shouldn’t be shared with any third party business. Both the borrower and the lender gains more ground to develop their relationship based on mutual trust and transparency.

Emergency Avenue

Regardless of how efficiently you plan, life often shows you through some unpredictable circumstances. Quick loans can be availed within a span of 24 hours. There are instances wherein these loans got disbursed within an hour or just a couple of hours. Certain financial factors might lead you through exigencies; quick loans help you resolve all of these issues.

Convenient Methods

Lenders providing quick loans provide their services through applications that are run on the web or mobile. These applications can be run 24×7. The minimal requirement of manual applicability and computations that are backed by data make things more convenient for the borrower. It even enables a borrower to avail it with just a few clicks.

Flexible Usage

Under circumstances when a mismatch in cash flow arises, you may utilize quick cash loans. For instance, you may consider buying a gift, buying a cell phone or experience shortfall while repaying your utility bills. You won’t feel any restriction while utilizing these loans; you may utilize them for all activities.

Transparency

The Federal Trade Commission regulates the quick loan operations within the US. A certain degree of transparency is maintained throughout the process and it even rules out breaching of the policies governing the issuance of loans. While borrowing a certain amount, the applicant achieves much comfort once he obtains the regulator’s license.

Limiting Fees and Interest Rate

Online loans aren’t believed to be secured and hence the regulator enforces some limitations on their interest rates. It actually depends on the lender’s organization channels. This is one way of protecting the borrower from unjustifiable charges and pricing.

Flexible Tenure

Regardless of the loan tenure opted by the borrower while submitting his application, he can opt for an extension of the loan tenure or may even choose to decrease it. Lenders may choose to offer it on certain cases wherein more flexibility is provided to the borrower against a higher fee. These online loans are usually offered on a short-term basis that enables the borrower to repay the entire amount when he receives another paycheck.



Quick loans come with a lot of simplicity, processing speed, and repayment flexibility. These days, the loan application model based on Android apps makes it easier for the user to enter all necessary information even while he’s on the move. The computation seems to be perfect with the assistance of a back-end engine and paperless application helps support the Go Green movement!


How to Ensure Your Financial Well-being

Financial Post Of Financewand

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Americans are in household debt worth $13.15 trillion, which is shown in the records of the Federal Reserve Bank of New York as an all-time high. You’ll find it an uphill task to pull out of debt if you’re one of the numerous homeowners that are struggling with debt. By doing a simple research, you may actually make things less complicated and find the right solution to your debt problems.

Ways to Improve Your Financial Situation Are Mentioned Below:

Draw a household budget

A budget is truly helpful in providing you powerful insights. Apart from tracking your expenses and income, they help in identifying your financial strength. All categories of expenses that consume a major portion of your paycheck can be spotted when you accommodate expenses concerning past few months by back-dating your budget. You can make certain adjustments to your lifestyle and eradicate such expenses depending on the categories that they belong to. You may decide on watching less of movies and eat more home-made food just to contain your grocery bill to a certain limit.

Meet the bills with your paycheck

Most of your bill payments seem to have the same due date every month. You’re bound to catch up with the due date whenever you owe money for buying a smart-phone, utilities, and rent. A bi-weekly occurrence of paydays compels you to remember them more often. You’ll rarely find the due dates of your bills to be matching with that of your paydays. If you’re not among those that pay a closer look at their finances, it might leave a severe impact on your finances.

While trudging through a financial crunch you may not have the funds to settle your dues. You may resolve this issue by paying for your bills the sooner you see funds on a payday. You may consider transferring a small portion of your funds over to a different account if you find it tough to repay your dues on time. It will prevent you from using that amount over other things. Make sure you continue to make the minimum payments in case you aren’t able to meet the billed amount entirely within consecutive paychecks.

Create an emergency fund

There’s no point in ignoring your savings although paying your bills is of great importance. Much of your household makeovers and unforeseen damages can be made out of household savings. You may create an emergency fund for your future by setting aside a portion of your 401 (k) or pension. It could of real advantage in case you need extra funds post-retirement.

It might seem challenging to meet your bills and yet save a portion of your returns. You may get in touch with some direct lenders for installment loans to help cope with sudden financial challenges. These loans help you meet your utility bills till you receive your next paycheck. Attempting to create a fund for your unforeseen expenses is certainly the most practical way to handle your unforeseen expenses.

Prioritize all the dues

This is certainly not the first time that you’re borrowing money if you’re an American. You must have a few credit cards in your wallet apart from a few other lines of credit like that of your mortgages, car leases, and student loans. You’ll be overwhelmed by your negative net worth once you sum up all bills.

The sooner you meet all of your debts you’ll contribute more towards financial well-being. Financial experts don’t agree on the best methods of meeting one’s debt. While some of them prefer handling the highest debts ahead of the smaller ones others tend to go the other way round. It’s up to you to decide on whether you’d like to repay a quick loan with a high rate of interest or would like to repay a student loan worth a huge amount first.



Consult a financial expert

A financial advisor can help in ascertaining your financial strength more aptly than others. He possesses the much-needed professional expertise to address all financial issues. They’re an incredible resource for all those that experience debt and can help them by figuring out solutions to issues concerning financial techniques, services, and products. Apart from discussing the advantages of using services like investment apps, online loans, and refinancing, they could even help you develop a debt repayment plan that suits your financial situation.

These are just a few tips on how you can improve your financial strength with time. You must follow a combination of these ways if you’re really inclined towards improving your financial standing. Incorporate all of them into your routine, and you’ll discover more opportunities to meet your dues and gain financial wellness.


Effective Cash Flow Management Strategies for Small Business Owners

Cash Flow Management Strategies

Effective cash flow management is critical to the success of any small business. When you don’t have a lot of working capital, you may encounter some tight spots that could prevent you from paying salaries on time, buying materials or equipment when you need it, or paying your as promised. One of the biggest problems a small business owner faces daily is the time delay between when you must pay your bills and when you receive payment from your customers. The best solutions for this problem is effective cash flow management.

To be successful, you will need to keep enough working capital on hand to meet these delays in cash flow. We are going to dive into some effective strategies for managing and improving your cash flow in a moment, but first, you need to know some of the basics of cash flow management.

The Basics of Cash Flow Management

In the simplest of terms, cash flow is the movement of money in and out of your business. You should track your cash flow monthly or maybe even weekly, especially if you’re operating with a small amount of working capital. There are two types of cash flow:

Positive Cash Flow

Obviously, this is where you want your business to be. Positive cash flow occurs when the amount of money coming into your business is greater than the amount of money going out.

Negative Cash Flow

Negative cash flow means you have more money going out than you have coming in. It also means your business is in trouble and you need to act quickly with some of the strategies below.

Making a Profit Doesn’t Always Mean You Have Good Cash Flow

Even if your profit and loss statement is telling you that your company is making a profit each quarter, there are other factors that determine your cash flow, such as your accounts payable and accounts receivable. Profit is simply defined as your revenue minus your expenses. Successful business owners know that earning a profit is not the same thing as knowing where your cash is going.

Determine Your Breakeven Point

You should always know what point your business needs to reach to become profitable. This doesn’t affect your cash flow, but it does give you a target for projecting future cash flow. You’ll want to focus your cash flow management efforts with the goal of meeting and surpassing your breakeven point.

Calculate How Much Working Capital Your Business Needs

You can’t determine if you are managing your cash flow successfully if you do not know how much working capital your business needs. There are a lot of factors that will need to be considered when determining this, such as inventory, overdue accounts, and cash that’s tied up in work that is in progress. In the beginning, it’s best bring in an outsourced business accounting service to help you anticipate the flow of money in and out of your business so that you know how much working capital you need to have to meet your financial demands.

5 Strategies for Fixing Cash Flow Problems

Now that we’ve covered the basics, let’s talk about some strategies that you can use to fix cash flow problems in your business.

1. Have Your Clients Make an Upfront Deposit on Large Orders or Jobs

If your business provides a service or product that requires a large output of cash upfront before delivery, ask your clients to pay a deposit upfront or have them make milestone payments while the job is being completed. This strategy gives you some working capital while the job is being completed.

2. Encourage Your Clients to Pay Faster

Getting your customers to pay faster gives you access to working capital sooner. One of the most effective ways to encourage faster payment is to offer a small discount of 2% if the client pays their invoice in full within 10 days on invoices that would normally be paid in 30 days. Many companies will be attracted to this option because they have a budget to stick to, just like you do. You should also consider utilizing online invoicing and invoicing sooner to help you get your clients to take action faster.

3. Sell or Rent Out Equipment That You Aren’t Using

Is there equipment collecting dust somewhere that you no longer need? Unused equipment ties up working capital that could be put to better use elsewhere. If you have an expensive piece of equipment that you are not using now, but you will need it in the future, consider renting it out to another business so that it can be bringing in capital while you’re not using it.

4. Pay Your Vendors as Late as Possible

This is a strategy that is often overlooked by business owners, but it could be a lifesaver if working capital is tight. Figure out how long you can wait to pay your vendors before a late fee is required. That way, you can keep that cash on hand to use for other things for as long as possible. If you have a good working relationship with your vendors, they may even be willing to negotiate more favorable terms with you.



5. Cut Your Expenses

You have probably already thought of raising your prices, but sometimes cutting your business expenses is a better option. There are many creative ways to accomplish this. Some ideas are selling off your existing inventory before making new product or finding cheaper ways to manufacture your product. You could also consider downsizing or using freelance workers instead of having full-time employees on your payroll. When it comes to equipment, consider buying used and repair what you have on hand instead of buying new. The point is, you should review your expenses on a regular basis to see if there are places where you can cut back to reduce the amount of money going out of your business.

Your working capital is the fuel that powers your small business. It’s critical that you manage your cash flow properly to be successful.

 


How Can Technology Detect Business Finance Fraud?

Detect Business Finance Fraud

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There’s good news and bad news when it comes to financial fraud. The bad news is that UK businesses and households financial fraud to this crime in 2017. That sort of startling figure shows that this is a serious issue that has to be dealt with. However, the good news is that this is falling – that number is down five per cent on 2016 – and that banks and card companies have detected and prevented two thirds of financial fraud.

The threat of financial fraud is increasingly sophisticated and almost exclusively technological. In order to combat this threat, therefore, we need technological solutions every bit as sophisticated to retaliate.

So, how can this help?

The growth of artificial intelligence

Artificial intelligence may seem like something from a science fiction novel, but the use of AI in business is becoming more apparent. Especially in the operations and the distribution sector, AI technologies are programmed to automate systems. If this can be trained to spot key signs of fraud then it can act as the ‘eyes and ears’ of a company – flagging concerns and preventing or pausing transactions before they happen.

It’s impossible for human beings to keep a close eye on every single financial transaction, but automated technology allows them to monitor more of what’s going on.

Bitcoin and blockchain

Cryptocurrency uses financial fraud to allow businesses to transfer funds around the world in real time. One of the potential benefits here is security. With blockchain, all transactions are recorded in real time – and records cannot be changed without the agreement of others. Put simply, it’s very hard to doctor information once it’s recorded and there’s a level of transparency around the way payments and transactions are made.

Biometrics

Passwords pose a vulnerability for many technological systems. While most workers might spend half their time trying to remember theirs, they present an opportunity for hackers to get into your software and get their hands on your data and your money.

Biometric technology is allowing for more secure ways of limiting access to systems. Thumb prints, eye scans, and even voice recognition should hopefully make life harder for fraudsters – and easier to detect people who are trying to access your systems when they shouldn’t.

But, use technology in moderation

Although you can lean on technology to help detect fraud, there’s always room for traditional processes too. You should use modern technology and foolproof traditional methods in tandem for maximum effect.

Things such as physical stamps and watermarked documents make it harder to forge documents and use these to defraud your business. As a business, you can custocustomize own self-inking stamp to add your own extra security step, for example. This can be very effective and it’s important not to move away from this sort of activity if it works.

Technology can help to detect business fraud. Automated systems, immutable records and biometric system access are all important developments to do this. Businesses can use a combination of all of those in tandem with tried and tested offline techniques to do their bit to avoid becoming a victim of fraud.

 


Wealth Management: A Few Aspects we Should Stop Overlooking

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Wealth creation is largely an elaborate process for most – at least for those who haven’t really amassed it (wealth) overnight. Though we don’t acknowledge it often – a financial cushion is simply not about building emergency funds. As integral a part of the wealth creation process that we are talking about, for us a “financial cushion” is created the moment we start talking about finance management or wealth planning.

As we go through the post in our quest for the less known ways with the help of which we can achieve our desired level of wealth creation, we will understand how important a role the sense of self efficacy ends up playing here.

How is the Concept of Self-Efficacy Linked to our Finances?

Yes. We don’t find ourselves understanding or rather discussing the psychology behind wealth-creation. And once we start doing that, we inevitably go back to Albert Bandura’s concept of self-efficacy, which actually goes on to determine a person’s thoughts, actions, motivation and behavior in the most powerful manner imaginable. He pointed out that people with a powerful sense of self efficacy are capable of viewing difficult tasks as challenges that need to be mastered in contrast to people with a weak sense of self-efficacy who view these same tasks as risks that should be avoided.

Since his revelations, financial experts at large have actually been trying to link the concept of sense of self-efficacy with finance. As Bandura had pointed out, self-efficacy is bolstered by various factors including:

  • Experiencing success
  • Controlling the emotional and physical responses
  • Choosing good role models
  • Reacting to encouragement

Why is it Important to Understand and Acknowledge the Role of Psychology behind Wealth Creation?

When it comes to financial success your sense of self-efficacy is definitely bolstered by your ability to pay off a large debt or for that matter staying away from expenditures on things you wanted to buy but didn’ need. Think about your friends early in their careers – living from paycheck to paycheck and often turning to the expensive quick loans in order to sponsor immediate needs. You are not required to do the same because you had planned your finances way before you had actually started earning. Do remember all these can act as major catalysts as far as laying the foundation of the sense of self-efficacy is concerned.

One of the most overlooked parts of wealth-creation is the psychology behind wealth-creation itself. The way we manage money actually has a lot to do with how we perceive our financial responsibilities. A lot is determined by the role models that we choose for ourselves. For instance, if we see someone in our family or friend circle fulfilling an almost impossible financial task, then we’re bound to be inspired to replicate the sense of self-efficacy. Additionally, a lot is dependent on the role models that we choose to be. The way we deal with our finances – or rather respond—to our pecuniary challenges from time to time- goes on to help us set examples for our kids as well. The need for prioritizing wealth management becomes a habit with them.

Understanding the psychology behind wealth-creation is important because only when you’re estimating your emotional reaction to certain financial responsibilities properly can you work towards changing them if needed.

For instance, today if you think that you will absolutely drown yourself in debts just in order to get out of your mortgage then you probably are someone with a very poor sense of self-efficacy. You can work towards developing a more positive change when it comes to the way in which you’re thinking about your financial responsibility now.
Besides mastering the psychology behind wealth creation, do make sure you are paying attention to these often overlooked aspects of this particular process.

How Often are you Replacing your Car?

You probably aren’t one of them who think that you should only change or rather replace your car when you NEED to! What we don’t realize is that every time we’re taking a loan from the bank to buy a new car the bank holds the title until we clear off the loan. Your car notably depreciates by 25% in the first year and by 50% in the next two years. Most of us end up trading our old car for new ones without even using the previous car optimally. However, we have already paid taxes, insurance, and loans on a depreciating asset. We might as well always refuse to acknowledge this but it’s only the car dealers who end up making profits in this case. There is a dire need on our end to stop selling assets too soon. You will understand how your efforts towards wealth creation will suffer owing to this habit of yours.

Investing

While saving remains a major financial goal at an early age—investing doesn’t. Ask most of the millionaires out there and they will actually tell you that investing is at the heart of prudent wealth creation. The tried and tested mantra in this regard is to subtract your exact age from 100 followed by investing the percentage of that number in equities and related funds including exchange traded funds, mutual funds and index fund.



How are you dealing with your Monthly Subscriptions?

Be watchful of your monthly subscriptions and your membership fees. While it feels great not to pay off all the dues at one go, do let us tell you monthly subscriptions and membership fees will eventually find you at the receiving end if you are not really keeping a check on them. There are so many times when even unused subscription fees end up killing your savings! Don’t underestimate the need for going back to or rather reviewing your subscriptions every month. If you are not using something do make sure that you are cancelling the same without fail. If you are prioritizing control over your expenditures you simply can’t ignore these subscriptions at any cost. Don’t pay up for what you don’t need. That’s perhaps the cardinal rule of personal finance management.

 


Start planning your finances in your 30s – Hoard enough cash for a stress-free life

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Gone are those good old days when you thought that the best way out is to hoard cash in your bank account. This is mainly because the returns that you get from saving money in your bank account will always be less than what you can earn from investing money in FDs, bonds, SIPs, stock market and mutual funds. For all those who wish to remain financially independent, the key is to invest your dollars at the right place.

However only investing your money won’t be enough as you also need to be track your progress so that you can remain invested even in the long term. Financial advisors always recommend people to start investing early during their 30s so that they have enough time to measure their success and learn worthy financial lessons. Here are few tips which can let you invest more, spend less and save more.

  • Don’t fall into the trap of collecting quick profits

As per what Warren Buffet has to say, one should invest only in those assets which he knows best. He even added that if someone invests in things which he doesn’t know, he is actually gambling. It is not that you will always require being an expert to accomplish investment returns which are satisfactory. But in case you want to become an expert, you can seek help of an investment advisor or follow a course to which you can gradually respond.

  • Bear in mind the philosophy of the rich and the poor

There is a famous perception that financial planning entails saving a little but after spending and then investing that little savings. If you have to understand the philosophy of the rich and poor, you’ll have to know that the rich usually invest their dollars and then spend the little amount that is left and this habit makes them even richer. On the other hand, the poor people spend their money and then invest the amount which is left over.

  • Understand the frugality approach

Are you often overcome with guilt and shame during the end of the month because of the fact that you think you’ve spent too much on something that you could do without? Do you think this is the right approach that you should have towards your expenses? Adopt frugality. Frugality is not just cutting down on your expenses but it is about selecting the things you love and spending on them and cutting down on those which you don’t love.



  • Cut down on borrowing money from people and lenders

Credit cards are certainly attractive options. When you borrow money which isn’t affordable now, it becomes affordable within a few months time. Warren Buffet says that he has seen most people fail on leverage – which is borrowed money. He thinks that the world could run in the same way even when so much leverage is not taken. In fact, you can make lot of money if you don’t borrow money so much.

Hence, if you’re wondering about the reasons behind saving and investing money, take into account the tips and advices shared in this post. Start off early so that you can get enough time to take care of your finances.


How short-term loans help your business to grow

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A short-term loan often seems to be the best option for a small-business owner. However, you won’t find any opportunity to escape debt once you’re stuck in a seemingly never-ending cycle of persistent lenders. It often happens – and it’s hard on a business owner. You may accept certain terms that seem agreeable without knowing how it will affect the credit or cash flow of your business. Before you even realize, you might be dragged into this unsustainable and uniform debt burden.

But this doesn’t necessarily mean that you’ll turn insolvent due to your short-term loans. You may actually help push your business in a positive direction if you follow the loan repayment terms diligently or if you utilize the money more cautiously. Prior to applying for a short-term loan, you must consider your spending habits and other associated things. Analyze your cost-benefit and take every step cautiously.

Here are a few important points to consider:

• Generating revenue: Are you eyeing at an opportunity for generating revenue? A short-term loan often helps you catch a good deal or fulfill a great order. Then your interest payments are likely to be matched by the ROI (return on investment). On the contrary, your financial situation isn’t nice when you’re attempting to make a payroll by applying for a short-term loan. In case you aren’t earning an extra amount, you’re bound to be hit hard by the expensive rate of interest.

• Cash flow: Your cash flow tends to get reduced due to the daily loan repayments. You won’t land up in trouble if you can manage the debt schedule for your business. A short-term loan doesn’t seem to be a good option for you when paying it early doesn’t suit your model or if it restricts your options. You may check out for more borrowing options when you have several daily expenses, generate infrequent revenue, or just have a small number of clients.



• Emergencies: Your equipment is broken down by a storm. You lose inventory during transit. Any of your employees turn sick. Assuming such emergencies, sometimes you’re only left with the option of a short-term loan. You’ll need to be absolutely sure of your loan repayment plan if you really want to live life hassle-free. Don’t let your business turn bankrupt by leaving it to risks.

• Paying back in-advance: The risk tends to be lesser when you’ve applied for a short-term loan and you even have the potential to pay it off early on. It often seems complicated when you’re trying to pay off your loan earlier, but then you won’t need to apply for another short-term loan to pay it off. But while repaying it early, you must bear the initial interest and you are also not supposed to utilize another short-term loan for refinancing.

You must brace yourself for unforeseen events and allocate a certain line of credit for running your business. You can pull out of every debt as you repay the amounts that you borrow on time.


How to get a car loan if you have a bad credit?

bad credit

Driving a car is of great need for the day to day of people, especially for those who live in a city where transportation is not reliable or cannot allow them to be on time for their commitments. Unfortunately, buying a car is probably the most expensive purchase you can make, which is why many people are forced to apply for a car loan instead of saving enough money to pay up front.

To start opting for a loan, you must take into account that in the same way as any other investment or purchase of great importance, you should take your time to analyze the entire process from beginning to end.

Some of the simplest and most important steps:

1. Review and understand your credit report

This is the first thing you should do before looking for loans to buy a car with bad credit, access a free copy of your credit report, then take the time to review it and verify its accuracy. This type of documentation has the greatest impact on your capacity when requesting a loan to finance a car.

In case you do not know your own credit history and you do not know if the accusations that are formulated against you are totally true, you could end up with a higher interest rate. That is why it is important that you know this type of information or get it repaired.

If you can understand your credit report you can explain all past negative elements, in the same way, you can explain the arrears in payments.

2. Idealize a budget according to your current finances

After you have reviewed your credit history, start calculating the budget based on your current income. It is important that you consider two different perspectives, for example. The total amount you are willing to pay for a car and the amount of money you are willing to pay each month.

For example, both the amount of money you pay for a car that is financed and your interest rate contribute to the amount of your monthly payment.

3. Do an investigation of the automotive lenders:

There are lenders who work only on loans for people with low credit scores. These types of loans usually have a much higher interest rate, which is not convenient because they end up paying much more money in the period of the loan. Search and research car lenders online to make sure you have the average rates on your car loans so you can calculate your rates. You can find the best bad credit auto loan offers from MoneyLend to help your search.

4. Find a way to negotiate the purchase price

It is possible that having a bad credit cannot change your interest rate, that does not mean you cannot negotiate the established price of the car. The price of the car to finance has nothing to do with the loan.

Find a way for the seller not to know your credit history, you really do not need to know. Try using some negotiation tactics so you can convince him to reduce the price of the car.

5. Consider opting for a co-borrower

Requesting a co-borrower can help you increase your chances of obtaining approval for a loan, thereby improving your conditions. The co-borrower will provide a guarantee to the lender because he will be obligated to pay all the payments and, otherwise, he will be obliged to repay the entire loan.

6. Do not allow unnecessary updates

Sellers will always make offers for the best service, do not be fooled by these commercial tactics, in this way it will be much more difficult to pay off the debt as soon as possible. Try to keep your contract as previously established.

7. Review in detail and carefully the loan agreement

Make sure you read every detail before signing anything. No matter how good a reputation the lender has, there are always details that can change what was agreed upon. Verify that all the information in the agreement is accurate. That includes the price of the sale, the rates applied, the interest rate and even the make and model of the car.

Where do I have to go to buy a car with bad credit?

If the loan application was approved, you must download and print the loan package and then take it to the dealer to make the purchase. Loan documentation includes recommended auto dealers close to your location.
When you have already found the dealer and you have made the selection of the car corresponding to the terms of the loan approval and the price has been determined the dealer will work with your lender.



Pros and cons

Loans with bad credit are very helpful when you need to buy a car and you do not have the available budget. This method of purchase offers many benefits, but also has its disadvantages. If you are planning or are in the process of acquiring a car with financing, it is worth knowing the pros and cons of this process.

Pros:

• Possibilities of having payment plans of up to six years with 0% interest.
• It helps you organize your payments and responsibilities.
• Ease of payment.
• You can have the car with you in a short time of waiting.
• You can choose the lender with the rates that suit you.

Cons:

• Take years to pay the debt.
• Pay a little more for the value of the car.
• Have a very large debt.
• It is necessary and obligatory to have a down payment.


Capitalize on your retirement sweet spot years – What steps to take

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While you’re heading towards your retirement, there are high chances that you’re also stepping into a special time to do some really worthy tax planning. What is the sweet spot? It is the stretch of time in between when you retire from your full time job and when you begin to take the minimum distributions from the 401(k) plan or the traditional IRA account by the age of 70 and half.

Given the fact that full-time work is behind you and the mandated distributions are lying in front of you, this is also the time when you seem to be included within the lower tax bracket. This is why it is the best time to take a look at whether or not the strategies can work well along with the taxes. You will definitely get ways in which you can seek benefits of low rates on taxes but it is vital for you to ensure that any move that you make are in line with you personal retirement goals. How are you supposed to monetize on your lower tax bracket? Here are few ways.

Adopt the ROTH way

How about converting your conventional IRA or your traditional 401(k) plan into a Roth IRA? Though you will still be liable to pay taxes on the amount which you converted, yet the rate will definitely be lower. As against converting them, if you left these assets in a conventional 401(k) or IRA plan and not do anything with them till you started taking the minimum distributions, such withdrawals could possibly push you within an increased tax bracket. This is why. The tax rate that would be applicable to the assets would definitely be higher. If you withdraw an amount from your Roth IRA, this is tax-free and there aren’t any minimum distributions which come with them. In case you convert, you will be locked in.

Sell off few winning financial assets

In case you have any asset like stocks which are in your taxable account, it is rather an advisable option to look at whether or not it would make sense to sell them off so that you could be included in a lower tax bracket. This is one of the best opportunities through which you can monetize on the gains on which you’ve been sitting. The rate of tax on long-term capital gains is entirely based on the adjusted gross income. For instance, in case a married couple has income that’s under $77,200, they won’t have to pay any taxes on the gains. You also need to be aware that the people who fall under the category of high earners like married couples with adjusted gross income which is more than $250,000 are usually subject to an added 3.8% of investment income.



Employee stock options should be determined

For all the people who are heading towards their golden years with certain employee stock options, they can exercise such options at their lower tax bracket which could possibly be a smart option. What if the value of the stock is high and the exercise price is low, you will get too many in-built gains. You could use lower tax to exercise few of the other options which you have at hand.

Therefore, if you wish to maximize those retirement sweet spot years, you should take into account the above mentioned options and lead your golden years in peace.


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