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February 8, 2015

The Pros and Cons of Filing for Bankruptcy

Filing for BankruptcyFiling for bankruptcy is a drastic step in regaining your financial health, and the impacts are long-lasting. It is not something to be done lightly, or without weighing out all of your available options. If you are drowning in debt, however, bankruptcy can be a valuable first step in rebuilding your financial future.

GetFreeOfBills.com notes that bankruptcy comes in two forms: Chapter 7 and Chapter 13. While Chapter 7 allows you to discharge most debts, Chapter 13 requires you to follow a structured plan to repay your debts under more favorable terms. Depending on the amount of disposable income you have, you might be required to file Chapter 13. Regardless of which type you file, however, the pros and cons are generally the same.

Pros

  • Clean slate: A bankruptcy provides a clean slate. It effectively resets your credit to zero, except for the debts that cannot be discharged such as student loans, recent back taxes, and child support. It provides you with the opportunity to stop making costly payments and provides you with more money to live on each month.
  • Opportunity to rebuild: Some people believe that bankruptcy prevents you from ever having credit again, but this is not the case. Many people manage to build new lines of credit shortly after their bankruptcy, and it gets easier as time passes. While it is true that bankruptcy remains on your credit report for 10 years, its effects gradually lessen.
  • Stopping adverse collections actions: If you are being hounded by creditors, facing foreclosure, or afraid that your wages will be garnished, bankruptcy can be a psychological relief. When you file for bankruptcy, you will receive an automatic stay from the court. This forces your creditors to cease all adverse collections activities against you. If you have a bankruptcy attorney, he or she will also act as a shield, handling creditors on your behalf.
  • Exemption laws: Your home and car are generally exempt from bankruptcy, as long as you continue to meet your payment obligations. You are also entitled to a cash value for personal possessions. If you have a significant number of luxury possessions, you might be required to sell some, but the exemptions are generally high enough to let most people keep their personal items.
  • Job protection: Although some employers will not hire applicants with a bankruptcy on their credit report, the job you already have is protected. It is illegal for an employee to be fired for declaring bankruptcy.

Cons

  • Damaged credit: Bankruptcy is a major hit on your credit report. In the immediate aftermath of the bankruptcy, you might be unable to get any new credit at all. Although it usually does not take long to get new offers, you will fall into a high risk category for lenders. Expect to pay interest rates that are significantly higher than the ones you had prior to your bankruptcy. However, if you are in the position of filing for bankruptcy, your credit is probably already damaged. Some people find that the credit hit is much less significant than they anticipated.
  • Filing costs: Filing for bankruptcy typically costs a few hundred dollars, depending on your location. Attorney’s fees are billed on top of that. However, in most cases you can make a payment arrangement if you can prove that paying a lump sum would present a financial hardship.
  • Embarrassment: Although it is surprisingly common, filing for bankruptcy still carries a certain stigma. Some people worry that their loved ones will find out and ultimately think less of them for their decision. However, bankruptcy typically comes at the end of a long journey through mounting debt. Most people understand that sometimes life happens, and do not judge their friends and relatives for making a tough financial decision. Besides, having your home foreclosed or your car repossessed is not exactly a less embarrassing option. When taken seriously and only as a last resort, bankruptcy can actually be the smartest choice for some situations.
  • Exempted debts: Some debts cannot be discharged in a bankruptcy, including recent back taxes, child support, and student loans. In addition, most people choose to keep their mortgage and car loan, if applicable. However, discharging your other debts will create more available money each month, which can then be diverted toward paying your remaining obligations.

Bankruptcy is not for everyone, but it is the best solution for many people. Attorney David M. Often of Get Free of Bills understands the complex decision-making process that is involved in determining whether bankruptcy is the right choice for you. Contact his office today for professional advice on how to proceed along your journey to financial freedom.

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January 21, 2015

Types Of Short Term Debt Financing

Debt financial ideasJust as the name implies, a short term debt financing stands out as a financing form that involves a financial obligation a company has to fulfil in a shorter period of time when compared with regular financing options. In most situations we are talking about a maximum of 2 years, although 1 year financing is usually offered.

Many companies opt for short term debt financing because of the fact that they want to have more working capital available or it is possible to need more money as day-to-day operations need more cash. Cyclical operation conditions or companies that are faced with international trade need such financing in various situations.

According to Today’s Growth Consultant Reviews, there are 4 types of short term debt financing that you can consider:

  • Overdrafts

This is basically an instant credit extension offered by the lending institution. As a company gets the overdraft agreement, it can transmit or draw down cash from the account beyond the balance that is available. Credit amount will always depend on overdraft limits that are negotiated with banks. In this case the advantage is that you will only take out as much as you need for the operation activity when it is necessary.

  • Credit Letter

A credit letter is basically a letter that comes from the bank and guarantees payments towards sellers. Sellers are guaranteed that amounts will be received during credit period. In this situation the advantage is that the company is usually going to be offered a better overall credit term when dealing with a supplier.

  • Short Term Loans

These are loans that have to be repaid in a short period of time, together with the associated interested. This is a loan that is not revolving and usually has a completely fixed repayment period. A company can use it in order to gain more liquidity as working capitals are lower or are necessary (for instance, for paying creditors or buying stocks).

  • Exchange Bill

This document will bind a party to pay an amount of money at a fixed rate to the secondary party at a specific date. In most cases this is a bill that appears when dealing with international trade. Exporters can grant a credit for the importer for the goods shipped with an exchange bill for the amount.

Short Term Debt Financing Qualification

In order to receive such financing you do not need to think about formal qualifying criteria. Usually, the company needs to hold a stronger business case that supports business viability and owner capital. A supplier can offer a short term credit for the purchases in order to enhance competitiveness. The bank will offer overdrafts and short term loans in order to earn an interest and build client relationships. To put it simply, if the company is transparent in operations and financials, there is a strong possibility that such financing would be offered.

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October 19, 2014

Changing Faces of the Credit Card

All about credit cardsThe credit card is completely different to the original concept of the idea of using credit. While the original credit card was paper, this quickly developed to the plastic one that adorns many purses and wallets around the world.

The original idea behind the credit card was to pay the debt in full at the end of each month. You only became eligible for a credit card if you were a special and privileged client. Often the banks lost money on the credit card, with high fees, but this didn’t matter if it meant a customer was happy and loyal. The change in the use of the cards is apparent as customer’s now, often have balances from previous months spending.

However, slowing the evolution of the credit card took place and it was no longer a privileged accessory but one many people demanded as an easy access to some form of credit.

A credit card has become a necessity in the majority of homes; it pays for luxuries but also a way to pay for the essentials. With the companies competing for the larger slice of credit from the consumers, more and more people opted for the credit card as a way to pay for everyday life.

While improvements in the economy is a positive angel, wages have stayed comparatively low. This has led consumers to look for credit in all places and credit card companies have obliged.

What is staggering is the fact that in 2008 credit card transactions over took cash transactions in America. This is a worrying statistic in the current economic climate.

However, life has changed.More and more families are in a lot of debt due to the credit cards and rising housing costs. Consumers are struggling with the debt they are experiencing, the credit card companies are continuing to push the cards and increase the amount of debt.

Credit problems are bad that the amount on bankruptcies are increasing, meaning the credit card companies are potentially losing money through bad debt.

However, whilst this might seem that the evolution of the credit card is bad, the changes haven’t completed and there is still hope for the future.

Hello, I’m Blair Thomas and I’m an electronic payment expert and the co-founder of eMerchantBroker from Los Angeles, CA, the #1 High Risk Merchant Account Company in the country. I enjoy hiking, snorkelling and discovering new music. When I’m not working in the electronic payments industry, you can most likely find me producing and writing music. Add me to your circles at Google +

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March 11, 2014

Working with a Reliable Debt Service in finding the Way out of Credit Burden

For debt freedomThe overwhelming credit burden requires effective resolution. However, the debt aspects are so complicated that it is often confusing to understand even where you stand at the debt status. The monthly bills keep on coming, and the numbers seem like huge burdens on your mind. The risk entailed in a debt crisis involves all things you hold dear. The vacuum of unpaid dues threatens to take your home, car, and subsequently the job. Many debtors are already without a job. The situation is even more drastic for them than the average homeowner. However, debt is also a great equalizer. Everyone facing it feels the same haunting vulnerability. You need to overcome the distress via a suitable solution. Look up a credible debt relief agency for the purpose.

Checking essential registration

You must be aware that several agencies operate without proper licensure. Either they do not have the registration at all, or they have an invalid document. Working with dubious services can land you in deep troubles you do not want. Many identity theft services do rounds in the debt market. You can identify them by the unrealistic claims. It is impossible for a company to make a person debt-free within one week. You cannot just make thousands of dollars in debt disappear overnight! Money is not an illusory magic trick! It is the realest thing in defining a society. You need to be superbly realistic in facing money issues. Never forget to discuss the consequences and penalties of missing an installment. Always ask whether the service can provide their verifiable registration number. Follow this approach even when you apply online.

Identifying the right service

Of course, a company can facilitate consolidation within a week. It requires efforts, but a well-connected service can easily accomplish the task. Call the customer service in verifying whether they have the necessary systemic contacts. Check if they maintain stable connections with the bank and credit card services. The debt relief service must negotiate your consolidation with lenders. You may follow the official protocol of bankruptcy. Many services also offer consolidation on a one-to-one basis, without filing a bankruptcy claim. You have two claim options, the chapter 7 and the chapter 13. Discuss the appropriateness of both parameters with the debt rescue customer support.

Convenient loan provisions

The relief service essentially arranges the most convenient loan package. However, you need to verify whether the assigned conditions are compatible with your personal finance. Start with checking your monthly budget balance sheet. You can also use amazing online accounting resources to develop a balance sheet. See whether the credit repair agency has the necessary tools such as debt calculator and budget balance sheet. They may or may not have it. You can find many free online software solutions for the purpose. You must check the loan interest rate total value. Services also levy additional fees on the final amount. Inquire to interpret the exact amount you need to allocate every month for repayment.

You must find a service with the most helpful attitude. Their genuine helpfulness must reflect in different aspects of their service. See if they can adjust the service fees with the loan monthly installments. Understandably, it is extremely difficult for you to pay in lump-sum at the first. The convenient payment packages simplify things. The company should be able to present a clear blueprint of debt freedom. However, you may need to make some personal adjustments. Consider shifting to a debit card or a secured credit card. These can effectively assist in managing your credit bills. You do not even receive a bill with the debit card purchases. However, you need to look up legal options for certain specific loans that do not fall under the bankruptcy plea even.

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February 6, 2014

What Are the Benefits of Car Title Loans?

about car loansCar title loans are a viable option for people who need money fast. This type of secured loan is convenient and easy to obtain. All you have to do is to use your car title as collateral. Even those with bad credit or no credit history at all can qualify for these short term loans. Most lenders require customers to pay off their debt within one month. If the borrower is unable to pay, the lender can repossess his vehicle.

In general, customers who apply for auto title loans receive $500 to $25,000. How much money you will get depends on the value of your car as well as on the lender. LoanMart’s online auto title loans are flexible and easy to qualify for. The application process takes only a few minutes. Borrowers must provide a valid driver’s license, a copy of the auto title, proof of income, and contact information. If your application is approved, you will receive the money within one hour.

When you apply for a car title loan, the lender won’t check your credit or ask you to prove employment. As long as you have a steady source of income and a car, you will get the funds needed. The best part is that you get to keep the car and still drive it while you have the loan out. It’s no wonder why these loans are so popular among customers. If you’re too busy to go to a title loan shop, you can submit your application online.

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