Springtime Warnings for Those Thinking of Debt Consolidation

Spring is a great time to cleanse your whole house, but why should you leave your finances untouched? It’s better to make sure that you can actually get things done than to waste another season worrying about all of the things that you don’t have. If you’re in debt, running away from the problem does absolutely nothing. You’re going to have to figure out how to fight back as soon as you can. This often means doing things that you might not have considered before. So while you’re looking at the first flowers of spring, why not check out debt consolidation?

Debt consolidation is exactly what it sounds like — it’s about taking all of your debts, combining them together (usually without interest), and paying one payment every single month to take care of them. Debt consolidation definitely works, but you have to make sure that you’re committed.

Committed? Absolutely. When you work with a debt consolidation company, they work their fees into your monthly payment. This means that you have to make all of your payments on time, or the agreement becomes null and void. If you’re trying to escape high credit card debt, guess what that means? You guessed it — it means that you’re going to be stuck paying all of your credit cards separately. Did you know that every time you miss a credit card payment, the company reserves the right to raise your interest rates? This means that sky high interest rates eat away at your monthly payments. This is why people spend so many years taking care of a minimum payment, only to find that they really haven’t eaten away at the debt at all. They’re just treading water instead of moving towards a debt free life. The rise of bankruptcy and despair from having to declare bankruptcy should be a lesson to everyone else — avoid it at all costs!

Now then, we warn about debt consolidation because it’s not automatic. You have to make sure all of your creditors actually agree to it. This is done primarily through negotiations between them and the debt consolidation company. If you’re not a natural negotiator, this is a blessing in disguise. You aren’t going to be shooting your own foot off trying to get things done. You can go about your everyday, normal life making your payments.

But it cannot be stressed enough — you have to make those payments. Failure to do so undoes everything that you’ve worked hard to build. This means that until those debts are paid, you’re going to have to make some big changes. This isn’t a bad thing, when you really think about it. You should cut your spending. You’ll find as time goes by that all of the things that you felt you had to have just aren’t as important as you thought they were. This is something that can put a smile on your face.

Getting creative about how you have a good time isn’t too difficult. Indeed, the Internet is filled with free stuff to do. This means that you might even be able to cut your cable subscription. Use that money to fund your savings account a little bit at a time. It’s been shown that when people actually have extra money in a savings account, the number of emergencies is actually reduced. That’s something worth celebrating, right?

You will find that building your life back is difficult, but not impossible. The last thing that you want to do is keep spending money when you’re trying to improve your life. There are undoubtedly things that you will have to spend money on, but there are also things that you can avoid. As long as you think about it in those terms, you just can’t go wrong.

Why not start your journey today? There are plenty of debt consolidation companies to choose from. If you have any questions, please don’t hesitate to reach out to those companies and ask. That’s their job to make you feel as comfortable as possible in order to move forward.

Ask yourself right now: am I tired of the way things are? Am I really making as much progress as I think I am on my finances? If the answers are both “yes” to the first one and “no” to the second one, then you owe it to yourself and your family to take steps to end the cycle of debt. Even though this isn’t going to be an overnight process, it is a process that’s worth checking out for yourself. Good luck!

What is a Subordinated Loan?

We’ve talked about subordinated debts in the previous article, covering some of the basics and understanding the principles behind this type of debt. In this part, we are going to talk about subordinated loans and look further into the benefits and advantages this type of loan is offering to investors and borrowers.

Subordinated loan is a secondary loan issued with less importance. If a company takes out a subordinated loan while still having primary loans in their statements, then the subordinated loan will be paid after all other obligations are fulfilled in the event of a bankruptcy.

For corporations, subordinated loan is a useful financial tool to use, especially when quick financing is needed. Most of the time large corporations try their best to avoid taking out a subordinated loan. However, the company may need additional funding to expand or another loan to pay for the existing one as it matures; in any of these cases, subordinated loan is always the best source of financing to use.

From the investors’ point of view, subordinated loan is a high yield – high risk investment instrument that is always profitable to use, especially when proper calculations are done prior to investing. Keep in mind that only less than 5% of the companies that use subordinated loan goes bankrupt, which means with careful planning there are a lot of profits to be made from buying subordinated bonds.

Even the government is using subordinated loan to finance the community projects. Large infrastructure projects cost a lot, and subordinated loans with longer terms are often used to fund the project. If you are looking for a relatively safe investment opportunity with high yield, government-issued subordinated bonds are the ones you need to look into.

There are still a lot to discuss about subordinated loans, but we are going to save them for future articles.

What is Subordinated Debt?

We all know that there are different types of debts on the market. Some debts are designed for private customers, while other are intended for commercial corporations and ventures. A subordinated debt, the kind of debt we are going to discuss in this article, is a commercial debt used by corporations and enterprises to generate the funds they need to expand.

To put it in simple words, a subordinated debt is a debt that is rated less than primary debts. If a company takes out a subordinated debt and it goes bankrupt, all other financial obligations – including taxes and obligations to stakeholders – are paid first before the subordinated debt.

As the name suggests, a subordinated debt is a secondary debt by nature. It is not prioritized in terms of payment in the even of a bankruptcy, so this kind of debt does carry more risks compared to conventional types of loans. However, banks, financial institutions, and even individuals are still interested in giving subordinated loans to corporations.

The main reason why subordinated debts are still very popular on the market is because of the higher yield. Since lenders carry more risks, the subordinated loans usually come with a higher interest rate compared to the base market interest rate. This means lenders get compensated for the extra risks they are taking on.

A subordinated debt is also known as junior debt, while primary loans are known as senior debts. It is also quite common for banks to give subordinated loans not only as an investment but also as a tool for measuring the state of the market; banks can then see the primary and secondary prices of subordinated debt certificates when they are out on the market.

Those are the basics of subordinated debt. Stay tuned for more resources because we are going to discuss about other aspects of subordinated debts right here on this site.

A Debt Consolidation Home Loan Calculator Helps You See Things Differently

Having too much debt is something that accounts for much of the financial stress we feel in life. The feeling of having too many bills and not enough money to take care of all the expenses is a pretty common feeling among families. The fear grows stronger and stronger and can often seem pretty endless. However, there is a way to lessen the burden of debt: through a debt consolidation process. This means that all of the individual debts would be combined into one and paid off with one monthly payment instead of having to write multiple bills and keep up with everything. This makes staying organized with paying down one’s debt far easier. Many homeowners turn to a debt consolidation home loan to begin the process of getting organized with their debt and even becoming debt free. A good online debt consolidation home loan calculator can help you determine if this is a good fit for your personal debt situation. However, it can be difficult to understand the standard form used to crunch the number. This article will cover the information you need to know in order to fill out the form properly and thus get great results.

First, you need to gather up all of the debts you’d like to include. The specific information you need most is the total amount of the debt, the average monthly payment you’re making, as well as the interest rate if there is one. While many popular debt consolidation home loan calculators now automatically calculate the average monthly payment for you, it’s always a good thing to have these three key pieces of information handy just in case.

Next, you’ll want to enter in all the numbers very carefully. Make sure to double check to make sure that you have everything filled out correctly, since missing a zero or forgetting a debt that you want to include can really skew the results you receive from the calculator tool. Many calculators also give the option to enter in an estimated interest rate for your debt consolidation home loan. You can start with a higher interest rate in order to get a better idea of what your monthly payment could look like if you choose to pursue this option.

Finally, it’s time to look at the results you get. Since this is an estimate of the interest rate on the home loan, it’s important to keep in mind that the numbers may vary once you get in touch with the lender. Usually, the interest rate we receive is often a lot lower than we expect. If you get back a lower monthly payment than what you’re sending out every month, this is definitely a path you should consider pursuing. While debt consolidation does add a bit of time to your loan, it’s also the key in lowering your monthly payment so you can get on top of your finances better. If your life changes and you can contribute more to the loan repayment process, you will definitely see the loan repaid much quicker.

Overall, getting out of debt is a process that takes time and effort. With a good debt consolidation home loan calculator, you can see exactly what next steps to take in order to take back control of your future and finally become debt free!

Are You Trying to Get Out of Debt – Time to Develop New Habits

We hate to break it to you, but if you really do want to get out of debt, you’re going to have to make better decisions. A lot of people skip right over this, thinking that they aren’t going to have to make any type of painful decisions at all. The truth is that while you might get lucky, the reality is that you really do have to make sure that you’re really focused on all of the right things. If you aren’t, then you’re going to be in for a lot of trouble ahead of you.

Why? It’s really simple — you have to make sure that you change your habits so that you don’t need up in debt again. This is the same with diet. Sure, you might be able to lose weight while eating junk food, but the junk foods means that you aren’t going to keep the weight off. It will stealthily come back on, leaving you in a worse bind than before. It’s all about figuring out your options and thinking about what’s really going to be the best choice for you all things considered. You have to make sure that you’re thinking about the right way to go through everything that you do. Otherwise, you’re just going to end up being disappointed.

Changing bad habits isn’t something that has to happen overnight. In fact, you really want to make sure that you aren’t trying to go through things the wrong way. It’s going to make you feel like it’s impossible to get out of debt. It might feel painful to actually change your habits, but you can indeed make better decisions. You just have to believe that it’s possible and go from there. You have to believe that you’re going to be able to cut your spending slowly.

How do you do that? Well, you need to look at the type of spending that you get into. For example, do you eat out a lot? You might think those cheap lunches aren’t going to matter…but you might be surprised. Add them up over the course of a month. Remember too that you could save a lot of money by bringing your lunch to work. It might not be something that gets you a lot of attention, but it’s honestly a good way to put some money aside. You have to decide what type of life you’re honestly going to live. Some people really desire to live well, but they find themselves really blocked. You have to think about how you’re going to raise awareness of your cause. The more work that you can put into getting someone to notice your debt struggle, the more likely you’re going to get accountability.

Now, accountability might not sound like a big deal, but you definitely need it. It’s hard to change when nobody’s watching. On the other hand, when you know that other people are taking notice of what you’re going to do, it makes a lot easier to change your pattern up. It means that you’re going to have virtually no trouble at hall making these new habits stick.

Getting with the right group of friends matters. If you hang out with mostly spenders, you’re going to be spending money. Yet if you hang out with people that value being frugal and saving money, you’re going to be ahead of the game. It really does make all of the difference in the world when it comes to getting things done. You just have to make sure that you’re in the game as much as possible.

And really, that’s what this is. It’s a game that can be won. You just have to make sure that you’re pushing forward and thinking of the right stuff. Otherwise you’ll end up being very disappointed, and who really wants to go through that? You have more options than you think you do, so make sure that you get things together as soon as possible. It’s the best way to really ensure that you are taking the right steps towards debt freedom. Remember, you can do anything you set your mind to, so good luck!

Comparing IVAs with Debt Management Plans

If you are one of the many people in the UK who are looking to become debt-free, there are two debt solutions that you might want to consider and these would be: an IVA or an individual voluntary arrangement or a debt management plan or program. However, before making a choice, you need to make sure that you completely understand how each of these options work first so that you can be certain that the one you would be going for would be the best for your particular situation. Read on for to learn the difference between an IVA and a debt management program.

IVAs or Individual Voluntary Arrangements

An IVA or an individual voluntary arrangement is type of legal debt management agreement which usually lasts for about five years. The primary goal of an IVA is to reduce your debts through making agreed monthly payments to each of your creditors which can, in turn, allow you to make a clean start after paying off your debt.

One thing that you need to keep in mind before getting an individual voluntary arrangement would be that you could not set up an IVA by yourself. There is also a specific amount that you need to owe first before being eligible for applying for an IVA; if you debt is lower, you cannot get an IVA. You would also need to work with a licensed insolvency practitioner who can make the arrangements for you based on your personal financial situation. After your IVA is approved, your creditors could no longer chase you for the money, provided that you would be adhering to the conditions of the IVA. Additionally, you can also have the interest to be reduced or frozen and your outstanding debt to be written after the IVA is over. This, however, would depend on the terms of your IVA.

Debt Management Plans

If you choose to get a debt management plan, you would also need to agree to a monthly repayment to your creditors so that you can pay off all of your debt. This is usually done through a debt management firm or company. They would basically be assessing your financial situation and then provide you with several debt solutions you can choose from. The debt management company would manage your chosen plan and would make the payments on your behalf. You can also choose to set up your own debt management plan and then deal with your creditors by yourself.

A debt management plan is different from an IVA in that it does not require you to have a minimum amount that you owe first. This means that if you have a smaller debt and would like to get rid of it, the better option would be to look for a debt management program. Also, although both options can reduce or freeze your interest but it is only an IVA which can write off any debts that you are unable to repay after the end of the agreement. IVAs also usually last for a period of five years while debt management plans can run for shorter or much longer periods, depending on the type of plan that you would be choosing.

Debt Consolidation Home Loan: How To Find One

A debt consolidation home loan is a loan that can be purchased on the equity that is in a home. Equity is the amount a home is worth minus any funds that are owed in a mortgage or other lien on the home. The equity is easy to access, in most cases, because it is considered a security. Should you default on your mortgage or other home loan, the home you are in can be used as collateral to insure the lenders that you can pay it back. Yet, getting a debt consolidation home loan is not always the easiest thing to do. “For those that are looking for one, consider the opportunities that are available.”

The first thing to look for in a debt consolidation home loan is the value of the current home.  You need to know what your equity is. To do this, you should look at the amount that is mortgaged on your home. This is how much you owe your bank. You can call or check this out on the mortgage lender’s website. To determine your current home’s worth, have an appraisal done. If you live in an area where the values of homes are continuously increasing, then you should have this done within the last year. If you live in a more slow moving real estate market, every two years is fine. This will tell you how much your home is worth.

To cut down the chase, you can also determine the value of your home based on what the debt consolidation lenders will provide. For example, if you take the time to locate a few lenders on the web, you may be able to get an online quote from the lender.

Many of these systems have in place a system for determining the value of your home based on its last appraised value as well as market trends in your area.  You may need to get the appraisal done down the road though.

Using online quotes to help you to secure your debt consolidation home loan is the best way to go. You can easily compare them and determine who can offer you the lowest of interest rates. You can easily see the value that is in these loans as well. Take some time to determine the low interest debt consolidation loan that you can get. Determine if it makes sense for you to take on a loan such as this. In many cases, it really does make sense to use a debt consolidation home loan.

Debt Settlement Timeline

Debt is one of the most common things that are found to be a part of everybody’s life. At some point in our lives due to various compulsions we need to take loans from friends, relatives and sometimes from creditors. While friends and relatives can be handled it becomes a problem to handle the creditors. Debt management is a fast growing problem in today’s world. It becomes a constant tension to pay back the loan. This is a fast emerging problem in the west where credit is as much a part of life as is income.

Debt settlement is a term that is used to describe the process where both the parties will sit together and will reach a figure to which both the parties will accept as the full and final payment. The creditors will in most cases settle down for something less than the original amount. This negotiation is usually carried out by the debt settlement companies. These companies specialize in reducing the amount to be paid and also spread the payment over a period of time thus making the burden lighter for the debtor. This system is soon becoming a rage in the U.K and the U.S.

Debt settlement and debt management are two terms which make their rounds in the industry today. There is a difference between the two. Debt management or debt consolidation is where the consumer makes monthly payments to the debt consolidator who then keeps a percentage of the payment and hands the rest of it to the creditor. Once that amount is paid it is considered that the debt has been cleared. Here there are monthly payments that take place. In the case of Debt settlement the consumer will pay his creditor every month out of which the debt settlement company will take its fees. However the main difference between the two is that there are no monthly payments of fees to the debt settlement company. In U.K the customers are preferring debt settlement to debt management.

The management companies usually ask their customers to refrain from paying their money directly to their creditors instead advises them to make all their payments through them. In this way they try to blackmail the creditors to settle down for much less than what they had originally given. The company simply holds on to the money that they get from the customer without passing it on to the creditors. These methods usually do not work as the creditors instead of settling for less simply file lawsuits against the debtors. This way the debtors get entangled in legal cases thereby ending up spending much more money than they owed their creditors.

Moreover as long as the debtor pays the required amount of money monthly there is no problem but the problem arises if he does not or the money doesn’t reach the creditors. The balance and the interest continue to build up making it difficult to pay back. Thus the debt settlement is an easy and popular method of letting go of your debts. A simple and yet effective method by which you as well as your creditors are happy.

Make a PPI claim and learn how much the bank owes you

PPI claims have been the talk of the country for the past several years, with consumers having realised that the insurance policy offered to them was such a scam. A lot of these credit consumers have started lining up the offices of their lenders to reclaim the money they paid to PPI. They were either shocked to have realised that they were signed up to an optional policy or angered by having learnt that the truth was hidden from them when it was being sold.

Financial institutions seemed to have found a lot of ways to just shove the insurance policy right down their customers’ throats without any knowledge to what it’s all about.

Since this discovery, the High Court ruled that all proven mis-sold PPI payments should be returned to consumers. To date, millions of pounds have already been claimed while others are still awaiting results. Some of them made PPI claims on their own while others sought the help of professional claims advisers.
There are certain circumstances in which you should not have been persuaded to have taken out the PPI policy in the first place. This needs to be established through a thorough discussion with a claims expert. The discussion may need you to recall a few situations and answer questions to find out if you are eligible for a claim.

The general concept of determining your eligibility to reclaim your PPI principal and interest charges would be to prove a solid statement that there are certain processes and limitations that you have not been made aware of at the time that you were taking out the Payment Protection Insurance.

Unemployment, working in a family business, retirement, age limit, medical history, and changes in employment status are general situations wherein a claim to the policy may be deemed ineligible. If you had not been made aware of these limitations, then you might be able to carry on the process of reclaiming what you should not have been paying for.

If any of these happened to you, you might want to make a claim for yourself and find out how much the bank owes you this time on reimbursement of the insurance premium and the interest it has incurred from when you signed up to it.

Write to your bank and tell them how PPI was mis-sold to you. Tell them of the circumstances that took place and the information you were and were not told during the sale process. As soon as they receive your letter, the bank will have to do an investigation and prove your claim within 6 or 8 weeks, or maybe even longer if the case seems to be a bit more complex than the usual. Nonetheless, you’ll be advised of such.

Remember to attach as much evidence as you can. Look through you files and find references to PPI from you statements, loan agreements and other related paperwork. The bank will have to refer to it during the PPI claims review together with your account information in their database.

If your bank fails to give you a decision within the prescribed time, or they told you otherwise, you can still take the matter up to a higher office for futher review. PPI claims and complaints are expertly handled by the Financial Ombudsman Service for free. They can help you review the case once more and make further enquiries with your bank if you file a formal complaint. Then they will decide whether to uphold it or not.

If you firmly believe that there was a mis-selling of PPI on your end. Do not hesitate to make a claim. When successful, you’d be surprised at how much the bank owes you this time. You might be able to keep up with the hard financial times and even pay your debts in full as soon as you get your money back.

Are You Looking to Consolidate Payday Loan Debt?

Payday loans are extremely popular these days, as more people than ever before are looking to get their hands on short-term cash so they can pay the bills.

The way payday loans work is simple. You apply for a small amount at a website such as www.whiteloans.co.uk and if approved the money is transferred to your bank account that very same day.

You then have a certain time-frame in which to pay the money back, which is usually scheduled around the next paycheck from your employer.

Make no mistake about it, millions of people use payday loans every year, and the vast majority of these people do so with no problems at all.

Unfortunately, there are a minority that get themselves into trouble with payday loans. If this is you, then don’t feel bad about it, as sometimes your situation gets so out of control that it can be hard to think straight.

If you have multiple debts and are really struggling to pay them all off, then consolidating all of your loans could be a life saver.

Quite simply, once you consolidate, then you will have only one lender to deal with, which will instantly make the whole process a lot more clearer and straight forward.

Also, there is a high chance that your monthly payment will be very affordable, so you can easily meet the payments without feeling stressed out and worried all the time.

Is payday loan consolidation right for you?

The best way to find out the answer to this question is to speak with a credit counselor. They can take a look at your situation and then advise you of the best way forward.

While consolidating payday loans is the right solution for many people with multiple debts, in some cases it can be the wrong decision. This is why consulting with an expert is always a good idea before you do something that you might regret later.

Stop taking out payday loans

Once you have consolidated your payday loan debt, it’s important to stop taking out payday loans in the future. If you begin the cycle again, then your situation will only get worse, and eventually you may be faced with bankruptcy.

It’s a good idea to start taking control of your long-term financial situation. Look at ways you can cut your expenses, while at the same time increasing your income.

Also, make sure you save a certain percentage of your income every month, so you begin building emergency savings which can be used when you are desperate for cash.

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