Home Blog Page 3

Step by step guide to getting a debt consolidation loan

Make sure you take every step of the way if you want to get the best rates and avoid missed payments.

Debt can be overwhelming, especially when it’s spread across multiple accounts and you’re juggling multiple monthly payments. Debt consolidation loans can make your debt more manageable by combining all of your balances into one personal loan with just one monthly payment.

If you are considering getting a debt consolidation loan, this step-by-step guide will walk you through the process.

1. Check your credit

You will want to know your credit score before you start applying for credit. This will help you get an idea of ​​the types of debt consolidation loans you are eligible for.

There are many ways to get your credit score for free. For example, your credit card may offer free credit scores. And Experian offers a free basic subscription that includes your credit score.

2. Pull your credit report

It is also wise to research credit report errors before applying for credit. Pulling your credit report is different from checking your credit score, so you will need to do it separately. You can get a free credit report from the three major credit bureaus at AnnualCreditReport.com.

Comb all three to make sure everything in your credit history is correct. If you find a mistake, dispute it and make sure it is removed before applying for a debt consolidation loan. Removing negative credit scores that are not accurate should give your credit score a big boost, which will help you qualify for the best personal loans.

3. Make a list of your debts and your monthly payments

Next, you’ll want to go through all of your accounts and list the total balance, monthly payments, and interest rate for each. This should include all of your:

You will need this information for the next step, which will help you determine if a debt consolidation loan will actually be financially beneficial for your situation.

4. Consider your loan options

Once you know your credit score, you should have an idea of ​​the debt consolidation loans that you are eligible for. Just be sure to consider all of your options, such as:

And in particular, pay attention to the following characteristics:

You’ll want to get the lowest APR possible to keep the loan affordable, but you also want to get a loan that’s big enough to pay off all of your debt.

You’ll need a loan term that’s long enough to keep your monthly payments manageable, but not so long that you’ll end up spending more interest than you need to.

Finally, be sure to pay attention to any other fees associated with the loan, such as origination fees or prepayment charges. Look for loans with little or no fees.

5. Use a debt consolidation calculator

With all of your account information listed and an idea of ​​your loan options, you can use a debt consolidation calculator to estimate your monthly payments and your debt repayment schedule. Look at how long it will take you to pay off a debt consolidation loan, what your monthly payments will be, and how much you will end up spending on interest.

From there, you can decide if a debt consolidation loan is right for you. Ideally, you want a loan that allows you to pay less interest than what you are currently paying. However, if you need to reduce your monthly payment, this might not be possible. Making sure you can pay your monthly payments and that you don’t fall behind should be your first priority – after that, look to minimize the fees you pay.

6. Apply for debt consolidation loans

Once you’ve narrowed down your options to a list of lenders who offer what you need for a debt consolidation loan, start applying. You can apply to multiple lenders to compare the best rates, but you’ll want to do it in a short period of time.

Several short-term loan applications are usually consolidated into one application on your credit report, which will minimize the potentially negative impact on your credit.

If you are not eligible for any debt consolidation loan, you may also want to consider getting a personal loan with a co-signer. This can help you qualify if your co-signer has good credit, but they’ll also be responsible if you don’t pay off your loan.

7. Close the loan and set up automatic monthly payments

When you are approved for a debt consolidation loan, you close the loan. The lender may pay off all of your debts directly or deposit the loan amount into your account, in which case you will want to pay off all of your balances immediately. Check back later to make sure all your account balances are zero.

Setting up automatic monthly payments with your new loan is a great way to make sure you don’t miss any payments. Some lenders even offer discounts for setting up automatic payment.

Now that you understand the process, you can begin to find the right debt consolidation loan for your needs.

The best credit card erases interest
If you have credit card debt, transferring it to this top balance transfer card can pay you 0% interest for 18 months! This is one of the reasons our experts rank this card among the best to help you get your debt under control. This will allow you to pay 0% interest on balance transfers and new purchases during the promotional period, and you will not pay any annual fees. Read our full review for free and apply in just two minutes. We strongly believe in the Golden Rule, which is why the editorial opinions are our own and have not been previously reviewed, endorsed or endorsed by the advertisers included. The Ascent does not cover all the offers on the market. Editorial content for The Ascent is separate from editorial content for The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Source link

The government will pay 60% of the car loan of 275 deputies and 31 members of the Council of State

0

The government will pay 60% of the loan facility deposited in Parliament for the purchase of vehicles for members of the 8th legislature and members of the Council of State.

The state will bear 60% of the principal and all the interest that will come from the loan, while the deputies and members of the Council of State will also pay the remaining 40% of the loan facility.

This was contained in a document intercepted by Adom News.

According to the arrangement, the state will absorb $ 373,333.33 representing 60% while an amount of $ 248,888.89 representing 40% will be paid by the deputies.

According to the agreement, if approved by Parliament, each of the 275 deputies and each of the 31 members of the Council of States will receive approximately $ 100,000 towards the purchase of a vehicle.

The government will pay 60% of the car loan of 275 deputies and 31 members of the Council of State

Under the agreement, repayment of the facility by beneficiaries will be by withholding tax by the Ghana Parliamentary Service at the National Investment Bank.

Documents intercepted by Adom News as contained in the agreement indicate that while the $ 28 million facility is due to be paid within 45 months, the $ 3.5 million loan facility is to be paid within. the 42 months.

The government will pay 60% of the car loan of 275 deputies and 31 members of the Council of State

On July 6, 2021, a Deputy Minister of Finance, Abena Osei Asare, on behalf of the sector minister, tabled two different loan agreements in Parliament for this purpose.

The documents are currently being submitted to Parliament’s finance committee for review and report for House approval.

The government will pay 60% of the car loan of 275 deputies and 31 members of the Council of State

Government seeks parliamentary approval to secure a $ 28 million loan facility from the National Investment Bank for the initiative, an additional $ 3.5 million loan agreement with NIB to purchase vehicles for the 31-member state council was concluded.

In addition to reimbursements by MPs, each of the 31 members of the Council of State will pay $ 33,333.33 representing 40% and the government will also bear the remaining $ 50,000.00 representing 60%.

The government will pay 60% of the car loan of 275 deputies and 31 members of the Council of State

Repayment by beneficiaries and the Government of Ghana will be made at the end of each month during the term of the Agreement.

The repayment of the facility by the beneficiaries is made on the basis of their monthly rights.

The government will pay 60% of the car loan of 275 deputies and 31 members of the Council of State

In the coming days, the Parliament’s finance committee is expected to present its report as referred by the First Vice-President of Parliament, Joseph Osei Owusu.


Source link

Rights of defaulting debtors: default on a mortgage or car loan? Here are 4 loan default rights you need to know

0
In the event of a default on a secured loan like a home or car loan, a borrower’s biggest worry is that they will have to part with the financed asset like house, car, etc. However, borrowers should know that even in the event of default, they have certain basic rights which cannot be ignored by the lender.

Here is an overview of 4 important rights that defaulting borrowers have.

Right to sufficient notice

Failure to repay the loan is not a criminal offense. “Defaulting on payment is generally a tort, except in cases where there is fraudulent or dishonest intent on the part of the borrower at the time of obtaining the loan,” explains Mani Gupta, partner at Sarthak Advocates & Solicitors.

A right to adequate notice ensures that you are informed of a possible future lender action well in advance so that you have time to act. “As a rule, banks and financial institutions give 60 days’ notice under the SARFAESI law before proceeding with a securitization action in respect of the guaranteed asset,” adds Gupta.

However, it should also be noted that lenders do not act in this direction from the very first monthly default. “The borrower’s account is classified as a non-performing asset (NPA) if the repayment is 90 days overdue,” says Sonam Chandwani, managing partner at KS Legal & Associates. The lender will only start proceeding once your loan account turns into an NPA, which only means after you have not paid 3 consecutive IMEs.

“In case of non-repayment by the borrower within the notice period (ie 60 days), the bank can proceed with the sale of assets but to sell, the bank must serve another public notice of 30 days mentioning the details of the sale, ”adds Chandwani.

If you can make a payment during this time, you will have some breathing space to plan your future course of action. You can opt for a one-time settlement with the lender, or you can have your loan restructured according to your financial capacity.


Read also :

What to do if you’ve defaulted on a home loan

Right to fair valuation of assets

The value of the property is often much more than the total of the lender’s contributions. However, the lender may only be interested in realizing so much value in order for the contributions to be clawed back, which may not be in the borrower’s best interest. To ensure the borrower’s right to fair valuation, RBI has established guidelines for the valuation of collateral. In accordance with SARFAESI law, before selling the repossessed asset, the lender must obtain the appraisal of a certified appraiser.

“In accordance with these guidelines, most banks have prescribed detailed criteria for the hiring of appraisers and, in general, only these appraisers are used. This ensures that the asset taken over is not sold at any price – determined unilaterally by the bank, ”explains Gupta.

Lenders are required to give notice and full details to the borrower. “Prior to the sale of assets, lenders are required to issue a notice specifying the fair value of the asset, including details such as the reserve price, date and time of auction,” explains Chandwani.

The borrower should carefully review the appraisal notice to verify if the appraisal reflects the true market value of the asset. “In the event that the borrower determines that the bank’s valuation is incorrect or undervalued, the borrower can then challenge the current auction and seek out a new buyer and present it to the lender,” suggests Chandwani.

Despite all of these efforts, if a borrower finds that the lender is not doing a fair job, they can escalate the deal. “If a borrower feels that the price has not been set correctly, he can go to the debt collection court to keep it on the auction and also go to the bank with any offer to buy. that the borrower might have, “Gupta advises.

Proceeds from the right to the balance

When the collateral for a loan is auctioned by the lender to collect the contributions, and if the proceeds of the sale are greater than the total of the contributions, a borrower is entitled to receive the balance amount.

“Even if a borrower’s asset is repossessed, it is imperative to monitor the auction process. The reason for this is that lenders tend to repay any excess amount realized after they have recouped their auction dues. Therefore, the borrower must ensure that the money is repaid to the borrower as soon as possible, ”advises Chandwani.

If the lender does not repay the balance proceeds on time, you will need to register your complaint. “The borrower can go to the debt collection court for help in collecting the balance. A borrower can also turn to the banking mediator to complain about the bank’s unfair practices in this regard, ”suggests Gupta.

Right to humane treatment

Lenders are required to follow due process prescribed by law. “However, lenders frequently hire debt collectors to coerce borrowers into repaying their loans; their conduct should never violate standards of decency, civil behavior and, ultimately, the code of commitment to customers signed by banks, ”says Chandwani.

To safeguard the interests of borrowers, the RBI introduced a
Code of good practice. The right to humane treatment requires that borrowers be treated with dignity. “Lenders should not resort to unwarranted harassment, such as constantly disturbing borrowers at irregular hours or using muscle strength for loan collections. The guidelines also require that lenders refrain from interfering in the affairs of borrowers, except as provided in the terms and conditions of the loan sanction documents, ”Gupta explains.

“If there are violations, borrowers or their family members can raise the issue with lenders and the banking ombudsman’s offices,” suggests Chandwani.


Source link

5 reasons to get a debt consolidation loan

Anyone who’s been in debt knows how difficult it can be. You have additional bills to pay each month, and interest charges keep adding to the amount you owe.

A debt consolidation loan is made for this situation. After you get one, you use the loan money to pay off your debts. In the future, you only have to pay off the debt consolidation loan.

Not everyone who is in debt needs this type of loan. If you can realistically pay it off in a few months, then it probably doesn’t make sense to go through the loan process. But if any of the following situations apply to you, then a debt consolidation loan may be worth it.

One Email a Day Could Save You Thousands

Expert tips and tricks delivered straight to your inbox that could help save you thousands of dollars. Register now for free access to our Personal Finance Boot Camp.

By submitting your email address, you consent to our sending you money advice as well as products and services which we believe may be of interest to you. You can unsubscribe anytime. Please read our privacy statement and terms and conditions.

1. You have high interest debt

The best debt consolidation loans offer reasonable interest rates. If you can get a loan with a lower interest rate than the rest of your debt, consolidating your debt will save you money. Note that the interest rate you qualify for depends on your credit score.

Since high interest debt costs you the most, you should consolidate it as much as possible. In particular, many consumers use a loan to pay off their credit card debt because most credit cards have high interest rates.

2. Your monthly payments are too expensive

One of the most stressful situations with debt is when you can’t make all of your monthly payments. You may have revised your budget several times and cut costs where you can, but that’s not enough. Missing payments make matters worse as you may be charged a fee.

Debt consolidation might be your best option here. When you apply for a loan, you have some control over the amount of the monthly payment. If you need a lower monthly payment, you can opt for a longer loan. Lenders typically offer personal loans with terms of one to five years. The longer your loan lasts, the more interest you pay overall, but it can be worth it if it makes your payments affordable.

3. You wish to have a single monthly payment

Even if you can afford all the monthly payments, having multiple debts is difficult to manage. You need to keep track of the due dates for each payment, and if you miss any it could cost you late fees.

From a practical standpoint, debt consolidation is a better option. Just remember a payment amount and a due date. This is a great advantage if you used to pay off several debts each month.

4. You want a set time frame to pay off your debt

One of the reasons that credit card debt can be so difficult to pay off is that it is unlimited. If you have $ 5,000 in credit card debt, you could pay it off in two, five, or even 15 years. There is no time limit required. All you have to do is make the small minimum payments. If you haven’t reached your credit limit yet, you can also continue to use your cards and increase your debt.

Let’s say instead, you get a $ 5,000 debt consolidation loan with a term of four years. You now have a fixed payment amount and a deadline to repay your debt.

The flexibility offered by credit cards can help. But some people find it easier to pay off debt with the structure offered by a loan.

5. You would like to improve your credit rating

It may sound surprising, but a debt consolidation loan can increase your credit score if you use it for credit card debt.

There are a few reasons for this. The first is a factor called the credit utilization rate, which is one of the most important parts of your credit score. It measures your credit card balances against your credit limits, and the lower it is, the better. The rule of thumb is to aim for less than 30% credit usage at all times.

While loan balances can also affect your credit score, they have a much smaller impact. So, if you pay off your credit cards with a debt consolidation loan, it reduces your use of credit. This could give your credit score a boost.

Another part of your credit score is your credit composition or the types of credit accounts you have opened. It’s better for your score if you have credit card and loan accounts instead of just one of the two. If you only have credit cards, getting a debt consolidation loan will improve your credit mix.

In the right situation, a debt consolidation loan can be of great help. You can use one to save money, reduce to a single monthly payment, or increase your credit score. And if you are working on credit card debt, a debt consolidation loan will be like a payment plan that you can follow to get rid of your debt.


Source link

Business loans are ‘particularly slow’ to switch from LIBOR, posing risks: FSB

Dive brief:

  • US companies and banks have not acted quickly enough to initiate the switch from the London Interbank Offered Rate (LIBOR) to a new benchmark rate, the Financial Stability Board (FSB) declared, warning of potential market turmoil as the scheduled end of LIBOR approaches on December 31.

  • “The business loan market has been particularly slow to begin the transition” from LIBOR to a new benchmark rate, according to the FSB, a watchdog that includes the Group of 20 nations and the European Commission.

  • “Most banks continue to offer LIBOR as a primary or only option for variable rate commercial lending,” the FSB said, adding that “borrowers report that lenders have provided them with limited information on alternatives to LIBOR.” .

Dive overview:

TThe Federal Reserve and the US Treasury have warned of potential market turmoil if corporate borrowers and financial institutions fail to switch from LIBOR to another benchmark rate before it is phased out later this year. . LIBOR is the benchmark rate for trillions of dollars in mortgages, derivatives, business loans, and other financial contracts around the world.

Regulators have adopted the Secured Overnight Financing Rate (SOFR) as a substitute for LIBOR, which is derived from London banks’ estimates of what they would be charged when borrowing from other banks. The SOFR is based on overnight repurchase agreements secured by Treasury bills.

Use of SOFR has overtaken LIBOR in issuing variable rate notes, and the market for variable rate mortgages “is moving rapidly” to the new benchmark, the FSB said.

SOFR is gaining ground in derivatives markets – with more than $ 6 trillion in open interest in SOFR-based derivatives – but is still far from eclipsing LIBOR. In addition, securitization issues and corporate loans in the United States are still largely tied to LIBOR, the FSB said, warning of the dangers of slow SOFR adoption.

“Given the magnitude of the risks associated with an inability to adequately prepare for the LIBOR transition, it is now incumbent on companies to act.” the FSB said on July 6. “There should no longer be any doubts about the urgency of the need to move away from LIBOR by the end of 2021.”

For more than three decades, financial institutions and corporate treasurers have integrated LIBOR into a full range of contracts. Such widespread and proven use – along with the mixed acceptance of SOFR and competition from other benchmarks – has complicated efforts to ensure the smooth adoption of a new benchmark.

Regulators began to consider phasing out LIBOR after a manipulation scandal in 2012. Despite this tampering with LIBOR, financial institutions and corporate treasurers have delayed the move to SOFR because it lacks some of LIBOR’s attractive features.

The LIBOR rate, as an estimate of borrowing costs between banks, reflects credit risks and can be expected in three, six and 12 months.

Based on transactions on the Treasury securities buyback market, SOFR does not reflect credit risk and does not facilitate the creation of a term structure allowing corporate treasurers and financial institutions to perform forecast rate calculations.

The Fed has told banks not to use LIBOR in financial contracts after the December 31 deadline, even though SOFR has yet to become the dominant alternative rate in debt markets. Final fixings of most LIBOR rates – including one-week and two-month US dollar LIBOR – will be effected on December 31, 2021, but other US dollar maturities may continue until June 30, 2023.

Market stability depends on phasing out LIBOR, the FSB said. “The continued dependence of global financial markets on LIBOR presents obvious risks to global financial stability. “


Source link

What is a secured equity loan and how does it work?

0

Shared secured loans are loans that use your savings balance, instead of your credit score, to back up the loan. They are a good opportunity to rebuild your credit because even if you have a bad credit history, you have a good chance of qualifying. Building good credit will make it easier for you to reach your financial goals, whether it’s buying a car, buying a house, or opening a credit card.

What are secured equity loans?

A secured equity loan uses the assets of an equity account, also known as a savings account, to back up the loan. Banks and credit unions offer savings-backed loans, which can also be referred to as “passbook loans”.

When you take out equity-backed loans, the equivalent assets in your savings account are frozen and become available again as you repay the loan. The maximum amount you are allowed to borrow varies from bank to bank. Some lenders may allow you to borrow the full amount from your savings account or a percentage. The money is repaid in monthly installments which are generally spread over five to 15 years.

Because they pose little risk to lenders, equity-backed loans typically come with low, fixed interest rates, often 1 to 3% above the dividend or the interest rate paid on the account by. the bank.

How Do Shared Secured Loans Work?

An equity loan is guaranteed by your savings account, your securities account or your monetary account. When you are approved for a secured equity loan, your lender will suspend the amount of savings you are borrowing from.

You can repay the loan through monthly automatic withdrawals, direct deposits, or monthly checks. If you don’t repay the loan, the savings your lender has as collateral will usually be used to cover the loan.

Although your savings are used to support the loan, you should avoid making late payments or defaulting. This can cost you penalties or late fees and hurt your credit history, as secured equity loans get reported to the credit bureaus.

If building credit is your goal when looking for a secured share loan, consider taking out a small amount that is easier to repay quickly.

Who are secured equity loans best for?

Secured equity loans are designed primarily for those looking to build or rebuild credit. If the loan is reported to the credit bureaus, making monthly payments on time can help improve your credit profile.

Additionally, for consumers with less than stellar credit, this type of loan may be easier to qualify than a traditional personal loan.

“The credit institution knows that the borrower has collateral on his savings account. Thus, the bank takes very few risks, ”explains Daniel Milan, Managing Partner of Cornerstone Financial Services.

Be pre-qualified

Answer a few questions to find out which personal loans you are prequalified for. The process is quick and easy, and it won’t affect your credit score.

Why Use Secured Equity Loans?

There are a number of reasons to use secured equity loans instead of withdrawing money from your savings account:

  • Build credit. If you have bad credit or no credit, these loans can help you develop your credit. Anytime you make loan payments or pay off a loan, it will be reported to the credit reporting agencies, and your credit score should improve. Have your lender report loan payments to the credit bureaus and verify that they have done so by checking your credit report. Each year, you can request a free credit report from each of the major credit bureaus: TransUnion, Equifax, and Experian.
  • Save on future loans. While secured equity loans may cost you money in interest payments now, a higher credit score should save you money through lower interest rates on mortgage loans. the future.
  • Use for any purpose. Unlike some types of loans like auto loans related to cars, you can use shared secured loans for various things. The general rule, however, is that you should only use them to pay for something you really need and can’t afford up front.
  • Protect savings. If you’re struggling to stay disciplined when building up your savings, shared secured loans may be right for you. The loan encourages you to replenish your savings by repaying your loan. This way, at the end of the loan term, you will have cash reserves that you can rely on if you need them again.

While using your savings account as collateral may seem riskier than taking out an unsecured loan, shared secured loans offer real opportunities to rebuild credit and improve your financial future. If you opt for an unsecured loan instead, compare the rates online before you apply.

You can get an idea of ​​how much you will pay each month by using a loan calculator.

What to watch out for

If you are considering a secured equity loan, keep in mind that there are some potential drawbacks or risks associated with this type of loan.

For example, the savings you use as collateral will be frozen until you pay off the loan in full, so you won’t have access to the funds. If you don’t repay the loan, your savings account will likely be used by the bank to pay off the installment loan balance, Milan said. “It could wipe out your household’s rainy day fund. “

As with any type of loan or credit application, be sure to read the fine print and review all of the terms of the agreement before signing. Make sure you understand the true cost of the loan, including upfront fees or annual fees, to ensure that you can make loan repayments on time and avoid defaults.

“Make sure the payment is within your budget,” says Katie Bossler of GreenPath Financial Wellness. “The number one factor in a credit score is paying bills on time, so if the purpose of the loan is to create credit, it is important for the consumer to ensure that the monthly payment fits into the bill. budget and can be paid on time. each month.”

How to qualify for a secured equity loan

Because you mostly borrow from yourself, qualifying for a secured equity loan is usually a straightforward process. The assets in your savings or CD account will be used as collateral for the loan.

While your credit rating is not an approval factor, it could affect the interest rate you pay on the loan. The higher your credit score, the lower your interest rate can be.

Terms and conditions

The terms and conditions of secured equity loans vary from lender to lender. Many lenders allow you to borrow up to 100% of your savings or CD balance, while others allow you to borrow a percentage of what you have deposited.

Interest will be charged on the borrowed money. Typically, the rate is based on the interest or dividend paid by the lender on your savings account or CD account plus 1-3%. For example, if your savings account has an APY of 1%, you can pay 2-4% interest.

The repayment term for a secured equity loan also varies depending on the lender and the amount borrowed, but it is generally five to 15 years.

Be pre-qualified

Answer a few questions to find out which personal loans you are prequalified for. The process is quick and easy, and it won’t affect your credit score.

Alternatives to Secured Loan Sharing

If you are looking to meet short term financial goals or improve your credit score, there are other options available besides shared secured loans.

Similar to a secured equity loan, a secured credit card is attached to a deposit account. The credit limit is the same amount deposited into the account. If you do not make the agreed payments, the money is withdrawn from the account.

A credit loan also works like a secured equity loan, but you pay off the loan before you can access the money. The lender you choose will deposit the funds into a savings account. When the loan is paid off, you will have access to the money. This makes the homebuilder loan better suited to long term needs.

A secured personal loan is backed by an asset you already own, such as a car, boat or motorhome. If you default on the personal loan, the lender can foreclose on your property to recoup its losses.

Next steps

A secured equity loan can be a good option to consider if you are looking to build or rebuild credit. Although there is a cost to taking out this type of loan, it can be a good idea if your goal is to potentially obtain other types of credit that are more difficult to obtain, such as a mortgage.

Just make sure that when using this type of loan you understand all of the terms and conditions and check with your lender to confirm that the loan will be reported to the credit bureaus.

Learn more:


Source link

Is it possible to get a debt consolidation loan?

0

Financial experts will tell you now is the best time to consolidate your debts and pay off your bills. Here’s why. These loans have the lowest interest rates. A debt consolidation loan is a great option to help you get out of debt faster, especially if your credit cards are in bad shape or you have accrued bills due to the Covid-19 pandemic.

Is it possible to get a debt consolidation loan in a useful way?

We can answer the short question yes. But we must look deeper.

How debt consolidation works

The debt consolidation loan consolidates your medical bills, credit card debt and other debt into one low-interest loan. You will only pay one monthly payment once your loans have been merged. You will only have one monthly repayment if you have multiple loans. This makes it more difficult to repay your loans. Debt consolidation can eliminate this problem.

Consolidating debt is also advantageous because it doesn’t compound your interest. The interest rate you pay to repay the loan will not change until you cancel it. Online lenders, credit unions and banks can provide debt consolidation loans that are unsecured. While some lenders provide instant approval and screening for online loans, others might require supporting documentation before approval.

Lenders will require you to meet their debt/income ratio threshold, as debt consolidation loans can be unsecured. Your credit score will determine the interest rate you are offered. The higher your credit score, the lower the interest rate.

You can consolidate debt to pay off certain unsecured debts, such as:

  • Payday loans
  • Personal
  • Medical bills
  • Credit card debt

Are you eligible for a debt consolidation loan?

Before you begin looking for a lender you should know if your chances of getting a loan are good and if the rate is reasonable. These are some of the factors that lenders take into consideration:

Credit score

Lenders determine the minimum credit score required to get a consolidation loan for debt. A consolidation loan is only available to those with a good (680+) credit rating. A good credit rating will result in a higher interest rate than those with a better credit rating. Lenders will consider you a high-risk borrower. You will be able to get the best deal if you have a high credit score.

Borrower’s income

Lenders set minimum income requirements for loan applicants, just like credit scores. They look at your debt to income ratio. A lower debt to income ratio will allow you to qualify for the best loan terms. This means you will only spend a small portion of your income on debt service. Lenders may allow up to 50% debt to income ratio. If your debt to income ratio is 50%, you will be using half of your monthly income for the loan payment.

Credit history

Credit history refers to how many loans you have paid off. A consolidation loan with a low interest rate is possible if your credit history does not include foreclosures, bankruptcies or tax liens. Any credit issue that negatively impacts your credit score will reduce your chances of getting loan approval or increase your chances of receiving a high-interest loan. Bad credit history can indicate that you are high-risk borrower.

Which are the most reliable lenders?

The best lender will offer the lowest interest rate, approve your loan application quicker, and is considered the best. Consider these factors when looking for the best lender:

  • Customer Service Ratings
  • Options for reimbursement
  • Penalties and fees
  • Conditions for loans
  • Interest rate
  • The speed with which the loan is approved

Some lenders have restrictions about how the loan is used. Lenders may not allow loans for tuition fees or business expenses.

These are some of the top lenders:

  • LightStream
  • PenFed Credit Union
  • Pay
  • Rocket loans
  • Before
  • Marcus
  • SoFi
  • Best egg
  • Loan Club

Is it possible to get a debt consolidation loan? Yes. As you can see, your credit score, income, and credit history will all play a role in whether you are approved. One of the biggest advantages to debt consolidation loans is their ability to improve your credit score. However, this can only happen if you use the loan to repay your debts.

Eligibility for a credit card debt consolidation loan

Debt consolidation loans have a lot of attractions on paper, namely their potential to pay off your credit cards in one go and the ability to reduce the amount of interest you pay. However, before you can reap the rewards of a successful debt consolidation loan, you must apply … and lenders must see you as a risk worthy enough to approve.

The first step towards eliminating debt through a consolidation loan is to simply qualify for the said loan. Here are some tips to help you maximize your chances of getting the loan that you will use to reduce your debt.

Raise your credit score before you apply

What has the most influence on the approval or denial of a consolidation loan? Your creditworthiness, of course. This means that it is in your best interest to make sure that it is in top condition before you send your requests to lenders.

You may be shocked to learn that one in five Americans had an error on at least one of their reports, according to the Federal Trade Commission. Additionally, about a quarter of consumers found errors in their reports that could affect their scores.

This means that regardless of your score, it’s worth checking out every report periodically: Experian, Equifax and TransUnion. If you see an error – such as an inaccuracy in your payment history or a duplication – you can dispute it by phone, online, or by mail.

Then do what you can to optimize your score, such as paying off some of your debt to make your debt-to-income ratio more favorable or asking your current creditors to increase your limit to optimize your credit utilization rate. You’ll have a better chance of obliging them if you’ve built up a history of on-time payments and responsible use.

Bad credit? Know all your options

Sometimes, even with disputed errors and your credit score strengthened as well as it can be right now, you can still find yourself outside the requirements for the most credit card debt consolidation loans. competitive.

The reassuring news is that there are a few possible avenues to explore here if your credit rating alone isn’t doing quite the heavy lifting you need.

One option is to have someone you trust vouch for you by agreeing to co-sign the loan. If they have higher credit than you, it can increase your chances of getting approved. However, this is not a hasty decision. Realize that they will be just as responsible for the total balance as you are – and if you fall behind in payments for any reason, their financial health is at stake. Make sure you have a written agreement and have discussed the matter. all the details together before going ahead, as you don’t want a co-signing situation to deteriorate.

Another possible option on the table is to look for a secured loan. The warning ? You will need to offer an asset to support this type of loan, such as a vehicle, house, or other high-value asset. The lender will be able to seize this collateral if you default, but this reduces the risk for the lender up front so that they are more willing to lower your interest rates and give you the seal of approval.

Qualifying for a debt consolidation loan usually involves making your credit score as strong as possible, which can require a combination of challenging mistakes and paying off as much debt as possible. If you still find that your credit score is insufficient to meet the threshold for conventional consolidation loans, adding a co-signer or looking for a secured loan – albeit risky – can help you get approved.


Source link

We owe a debt of thanks to our supermarket superstars

0


Retail Industry Updates

One amazing aspect of the pandemic is that, even in the worst of times, it has been possible to walk into a supermarket and ask – with a straight face – if they have any organic pumpkin seeds.

We have been deprived of many things, but material goods were not among them. I ordered a laptop stand on December 23 so it will arrive mid January. It was on my doorstep on Christmas Eve. From perfectly ripe avocados to perfectly useless Fitbits, it’s all at your fingertips or just a click away.

But it doesn’t happen by magic. I feel indebted to millions of people in essential but non-professional jobs, who never signed up to be heroes but who make confinement possible: the delivery drivers; warehouse and factory workers; binmen. But I mostly relate to store clerks, having spent time behind a particularly unprofitable Sainsbury’s deli counter.

You see a supermarket very differently if you work there. The store takes on the dynamics of the primary tropical forest. The buyers are simple tourists. But you, whether you’re a salami slicer or a shelf stacker, are more like a native hunter, tuned in to your surroundings. You smell when a pallet of carrots has recently gone through the checkout; the placement of dishonest Müller yogurt in the meat department; the salad at a reduced price in the undergrowth of aisle 8.

I learned life skills: how to fold a cardboard box effortlessly; how to bend the knees slightly to facilitate hours of standing; and how never, ever, to leave customers’ ham orders on the kosher counter.

A customer called me the best Parma ham slicer in North London. It took me a while to realize that meant he was weird, not that I was good. Most of the time, my fingers were covered with blue bandages. My awkwardness culminated when I engaged my thumb a little too close to the deli machines. Imagine removing the top of a boiled egg. The piece of my thumb was never found – I only hope it tasted tasty.

I also remember when a coworker changed the date of an expired brie, only for a gastro-annoyance to show up and complain to his companions: plate. “He bought the batch. I guess the Brie didn’t. wasn’t the only thing that flowed that night.

The supermarket was also my first taste of corporate pride. We were told when we were inducted that our brand new Sainsbury’s would cause the Waitrose 300 yards to close. Twenty years later, the Waitrose is still here.

After a few months, I handed in my invitation to go abroad. To my surprise, my boss literally returned it – telling me to rethink, because I was section management material. I changed my mind later in the week.

Sainsbury’s had staff that lasted a few months and others that lasted a few decades. A man pushed carts in the parking lot in his 90s, having been bored by retirement.

The ability to quit is a big part of what makes jobs tolerable. But low-paid workers have limited options at the best of times. Who can change jobs in the event of a pandemic?

I know some people are happy to be in their workplace, not alone at home. But I imagine a lot of others must wish they didn’t have to be in the store, alongside nervous and sometimes maskless customers. Even after giving my thumb a makeover, I never felt my workplace was unsafe. I worked quite happily in a supermarket at the time. I would like feel very different now.

How many of us working from home would be happy show up for shifts in the workshop? How do we make sure that applauding on Thursday night is the beginning of our appreciation, not the end? A couple tells me that they give chocolate bars to delivery drivers. We should all find ways to thank you – for organic pumpkin seeds and everything in between.

[email protected]



Source link

China increases defense spending by billions despite high debt

0


China is increasing its defense spending by more than 6.5% in 2021 as it strives to maintain upgrades to its armed forces despite high public debt and the impact of the coronavirus pandemic.

A national budget report released on Friday says China will spend 1.355 trillion yuan (AU $ 272 billion) on defense in the coming year.

This represents an increase of 1.3 trillion yuan (AU $ 261 billion) last year, representing an increase of 6.6%, the smallest percentage increase in at least two decades.

The military budget has declined during times of slower economic growth, but has also fallen steadily from the double-digit percentage increase over the years as the increasingly powerful military matures and the he rapid expansion of what is already the world’s second largest defense budget is no longer needed.

Lavish spending increases in years past have given China the second-largest defense budget in the world behind the United States.

China has the largest standing army in the world with three million troops and a massive arsenal. Credit: PA

With three million troops, the world’s largest standing army regularly adds aircraft carriers, nuclear-powered submarines and stealth fighters to its arsenal.

The government says most of the spending increases go to improving salaries and other conditions for troops while observers say the budget omits much of China’s arms spending, most of it developed nationally.

The Chinese military is largely designed to maintain its threat to use force to bring Taiwan under its control, although it has also become more assertive in the South China Sea, the Western Pacific, the Indian Ocean and elsewhere.



Source link