Nocomo: Blog Nocomo: Blog Copyright by Nocomo en Nocomo Wed, 23 Oct 2019 14:43:46 -0400 Steps To Take When Getting a Business Loan From a Bank Traditionally, banks are associated with catering to larger and established business ventures.

However, banks are gradually warming up to the SMEs and now offering them funding options.

Nonetheless, getting a bank to approve your business loan requires preparation as well as research.

 And in this article, we shall show you the steps you need to take to get your business loan approved by the bank.

Calculate How Much Big of a Loan You Need

The first step of getting a business loan from the bank is calculating how much you need.

Perform a thorough research of the loan amount that you need using a loan calculator, to avoid under-quoting or over-estimating.

While at it, you would also want to state how you want to spend your finances. Often, banks want to assess how the funds will be spent.

If you're looking to purchase and equipment, for instance, it would be suitable if you applied for an equipment loan. And if you are looking to pay debtors, a short term loan would be ideal.

Choose Items for Collateral

Most of the banks usually require borrowers to put up collateral.

Therefore, you need to identify something that will guarantee your loan.

The larger the loan, the more collateral is needed.

Putting up personal assets, or investment further goes to show how committed a business owner is at borrowing the loan.

Write a Business Plan

To increase the chances of securing a loan from the bank, you need to have a solid business plan.

A business plan brings out what your business entails; shows who you are, what your business is all about, and the future plans of your business.

Ideally, a business plan should state the business’s goals, mission, and how it will run to achieve the mentioned objectives.

Clean your Credit Score

All financial institutions, whether banks or online lenders, verify whether you’re eligible their loans and whether you can repay in full and on time.

 One way to do that is through examining your credit scores.

Therefore, when applying for a business loan, ensure that you check on your credit scores and reports.

Ideally, a credit score of 700 and above should improve your chances of securing a loan.

If your score is lower than 600, the odds might be against you, but might as well consider alternative revenue-based loans.

While at it, check for the errors that might appear on your credit report.

Assessing your Lending Options

After verifying your credit report, you now need to research on the available lending options.

If you don’t know how to choose your small business loan company we recommend that you start by asking other business owners within your industry where they attained financing.

In most cases, you’ll realize that banks that have a history of funding businesses comparable to that of yours are the best ones to approach for funding.

Additional, if you get many referrals to a particular lender, it shows they are reliable and might offer you a loan.

However, whatever options you choose to go with, ensure they meet the demands of your business.

Keep the Financial Records in Order

Before approaching the chosen bank, ensure that you've all the proper financial statements.

Having proper financial records in place will make it easier to sail through the screening process. This is because many banks will always want to check on your financial records such as balance sheets, and income statement to determine whether you're capable of repaying the loan.

Therefore, before approaching your bank, ensure that you’re keen on keeping and compiling the financial records in order.


  • Your quoted amount should be justified by your business plan’ financial statements
  • Contact a professional when working on your business plan
  • Be patient. Banks are slow at processing loans, especially the long-term business loans
Uncategorized Editor Wed, 16 Oct 2019 22:54:06 -0400
8 Factors To Bear In Mind Before Taking A Short Term Loan

Over the years, business owners have become aware of the fact that they cannot survive without short term loans. They need instant cash from time to time and it is practically impossible to arrange it internally. Short term loans serve as the ideal solution to bring in quick cash without much hassle. Additionally, the fact that these do not lead to a long term liability makes them ideal for a business. However, things are not as simple as they sound because loans are still liabilities irrespective of their time period. Therefore, you should know their nitty-gritty before you apply for them. Let us share a list of factors that you must bear in mind before taking a short term loan for your business.

Source of short term loan

The most vital factor to consider is the source you are going to get the loan from. You can either approach a traditional lender or borrow online. Traditional lenders include banks, credit unions, and private lenders. Borrowing from them involves a long list of formalities because you need to submit several documents as proofs for getting approval. Things are simpler with online lenders. You need not do much to get a short term loan here because the short term loan application process is as easy as filling a form online. The requirement of documentation is minimal as well and you can even get a bad credit loan.

Type of short term loan

Besides knowing the lender, you need to understand the type of loan you are planning to apply for. This will have a direct impact on the formalities of the application process. For example, personal short term loans require the submission of collateral deposits, business proofs, and income statements. With business loans, you need to mention the purpose of the loan, whether you require one as working capital or for business financing. Short-term loans for students have another set of formalities. Obviously, you would be more concerned about the second category of short term loans.

Interest rate

The next factor that would really matter while applying for a short term loan is the rate of interest you will have to pay. You would surely want to know the rate that the lender is charging and compare it with the prevailing rates in the market. Also, it would be smart to shortlist some reputed lenders and choose the one that offers the most competitive rate. After all, you would not want to pay an exorbitant rate of interest because it is a business expense.

Credit score

Your credit score is an indication of your ability to repay the loan at the end of the term. Anyone who gives you a loan will be most interested in knowing whether you are capable of giving it back. Unless you have a great credit history to show, they will not be keen to help. It is to be noted that your credit score has a direct impact on the interest rate. A poor credit score obviously translates into a higher rate because the risk for the lender is greater. Since there is not much that goes in favor of your repayment capacity, you will have to pay a higher interest for bad credit loans.

Bad credit short term loans

Though bad credit lowers your chances of getting a loan, it does not mean that you will not get one at all. In fact, there are several online lenders who may be willing to provide you the funds you need. However, you have to convince them that you will pay back on time despite your bad credit history. This may be a tough challenge but you can show them proof like a healthy income and stable business for assuring them about your repayment capacity. Bad credit loans may be hard to get but there is nothing that makes them impossible to procure.

Term of the loan

As the name implies, short term loans are the ones that are taken for a short span of time. Business owners prefer this form of borrowing because it gives them instant cash for their needs without tying them with a long term liability and interest burden. They simply apply for the loan and use the funds in the present and quickly repay the loan, often within a few months. However, you must clarify the implications of not being able to repay the loan within the agreed loan term. The lender may give you the option of a rollover to carry the loan ahead for another term. But you may also have to repay by taking another loan if the lender is not willing to extend the loan.

Repayment process

Typically, short term loans are to be cleared over a short span of time by making regular payments to the lender. These payments are calculated by including the interest as well. Before you take a loan, you should know the entire repayment plan so that you can handle it comfortably enough. Discuss this aspect with the lender and have a clear idea about how repayment would work and whether you require any changes in the plan.

Hidden fees

Besides the interest that you need to pay on a short term loan, the lender may also ask you to pay some charges and fees. These may be in the form of origination fees, administrating fees, underwriting fees, and processing charges. You may be taken by surprise because of these charges and fees. It is better to ask the lender to list the hidden charges upfront so that you can calculate the overall cost of the loan and decide whether it is feasible for you. It is better to look for a lender that does not burden you with such hidden charges.

Knowing these factors about short term loans is essential so that you know where you stand in terms of interest burden and repayment. Not having clear and proper understanding can cause problems and you may even be tied down by a loan that you may not be able to clear out within the agreed timelines.

Author Bio:  A graduate in banking and finance, Marcus Ryan has worked for top financial institutes before he decided to make a switch to writing. Currently working as Content Strategist with Outreach Monks, he has an eye for what’s best and the rest.

Uncategorized Editor Wed, 09 Oct 2019 08:44:36 -0400
When to Refinance Your Mortgage: Before or After Bankruptcy When credit card debt, personal loan debt, and other debts become unwieldy and completely overwhelming, sometimes the best solution is to declare bankruptcy. Though this is often a less-than-ideal situation, sometimes it can help a person completely wipe their financial slate clean and have a fresh start in a matter of years.

Belongings with a lot of emotions attached to them are often involved in a bankruptcy, one of which may be your home. If you want to keep your home throughout a bankruptcy, you may be wondering if you should refinance your mortgage for a lower rate before or after bankruptcy. The answer to this question really depends on when your chances of being approved will be better, and what type of bankruptcy you’ll be filing. 

Types of Bankruptcy

To quickly recap, there are two types of bankruptcy, Chapter 7 and Chapter 13. Your ability to refinance will be determined, likely, by which one you file. Chapter 13 will require three to five years, and though it may be easier to refinance with this type of bankruptcy, your request to refinance will need to go through the court system. A Chapter 7 only takes a few months to clean up, but it will make it much harder to refinance.

If You Want to Refinance Before Bankruptcy

Understand that refinancing before you file bankruptcy may or may not be possible. If you have a low credit score or a lot of unsecured debt, refinancing may not be an option. The application process can be extensive, and some lenders are more strict than others with it comes to whether or not they’ll allow you to refinance when you’re on the brink of bankruptcy.

Keep in mind that even if you do refinance, you’ll have to provide proof of what you did with any money you take out of your home’s equity. You may be able to get around this if your state has a bankruptcy exemption, but not all do. That said, it’s a good idea to leave your home equity where it is if you’re about to declare bankruptcy. 

If You Want to Refinance After Bankruptcy

Even if you do want to refinance after declaring bankruptcy, know that this may not be possible for a few years. Some lenders won’t allow a refinancing application until a few years after your bankruptcy was filed. Even then, your application may not be strong enough to get a refinance approval. Even though bankruptcy gets rid of unsecured debt (except student loans) it still makes you look like a risk to a lender and can therefore hurt your refinancing application.

However, keep in mind that all lenders are different and if you’re set on refinancing before or after bankruptcy, it won’t hurt to check with your lender and apply to see what may be possible. But it’s important to remember that if you’ve filed a Chapter 13 bankruptcy, you can’t do so without asking the courts first.

To Refinance or Not Refinance?

At the end of the day, consider where you’re at in the process of filing for bankruptcy and consider whether you’ll be able to refinance later, and whether your application has a chance beforehand. Contact your lender to determine what your options look like and be sure to make the decision that will best benefit your financial situation in the long term. 

Written by John J Scura III, Esq.                                                                                                         
Partner, Scura, Wigfield, Heyer, Stevens & Cammarota, LLP

John has been Certified by The Supreme Court of New Jersey as a Civil Trial Attorney.  Whether it is a personal injury case, bankruptcy case, litigation case or other type of matter, John wants his clients to participate in the decision making process toward solving their problem in the best way possible.

Uncategorized Editor Tue, 27 Aug 2019 16:30:37 -0400
Top Benefits of Outsourced Payroll Services in Aruba

Top Benefits of Outsourced Payroll Services in Aruba


Payroll is how you reward and maintain staff, compensating them for the work they have accomplished. If there are mistakes due to miscalculation, you will end up with unhappy, unmotivated staff. Payroll management is one of the most important aspects of a company and has a direct impact on company growth. The main reason businesses outsource their payroll functions are for specialized skills. Payroll outsourcing services in Aruba offer a variety of advantages to the corporate sectors, particularly to small and medium-sized businesses in Aruba. Some notable benefits are:

Outsourced Payroll Reduces Costs

Accurate reporting needs full and correct records of employees. Without the right technical resources, it can be difficult for companies to complete this task. Outsourcing payroll can assist companies reduce their operating costs by providing the necessary software to streamline the process.

As per small and medium-sized business trends, outsourcing your payroll management helps business owners and their employees focus more on core organization practices, saving up to 80% of the payroll management cost for your business.

Saves Your Time and Let's You Focus on Core Business

Creating payroll takes a lot of time because it involves a lot of data and is a time-consuming process. Outsource your payroll management to focus on business growth rather than playing with the numbers. Outsourcing payroll can help employees free up their time to focus on more important and more job-specific responsibilities.

Enhance Security & Reduce Risks

Payroll processing is a complicated, possibly risky business operation. There is always a risk of identity theft or embezzlement of money for private gain, even with trusted staff.

There is also the usual risk when using in-house payroll software: How secure and secure is payroll information on a company's server or network?

This issue can also consume the energy and attention of a business owner. Outsourcing your payroll management eliminates all these risks as you deal with a professional company having good reputation in the market.With professional payroll outsourcing companies, security of the confidential data like pay packages can be ensured.

Tax Saving

High penalties can be avoided by identifying inaccurate filings and tax payments, and surveys say that almost 40 percent of companies around the globe sometimes get impacted in a lifetime due to incorrect filing and tax payment. And that's why payroll outsourcing businesses are the best option for your company.

Financials4rent offers outsourced payroll services for small businesses in Aruba. We take care of all your salary-related affairs, so you can free up time to concentrate on your core organization. We also provide best customer service, ensuring the offering is cost-efficient and easy to implement.

Uncategorized Editor Mon, 19 Aug 2019 08:20:40 -0400
Financial Accounting Basics Startups Must Know If you are thinking of launching a business or you recently started on the journey of one, then kudos to you because it isn't an easy task. However, many entrepreneurs make some financial accounting mistakes that prevent their businesses from excelling. Read on to know some essential tips that will help keep your finances in check and enhance the growth of your startup.

  1. Manage cash flow

Most startups do not succeed for several reasons. One of these reasons is quite more common than the rest - getting short of money. As a new business owner, you should know where every single penny comes from and where it goes. Managing your cash flow is very important because your inability to do this may put your business in a dangerous position. It matters little if yours is such a brilliant business idea. You will hit a brick wall the moment you run out of money. The way out of getting financially incapacitated is by establishing a budget and ensuring that you stick to it.

  1. Spend time wisely

Every business person should know that every minute has some monetary value. There's a famous saying that "Time is money." When you make a plan of your day-to-day activities and schedule, take into consideration the timing of each duty. This action is necessary because every second you spend on something that isn't related to your business is a waste of time and money. Sometimes, you may never be able to recover.

  1. Track and monitor expenses

It is certain that with a startup, there are so many expenses coming at you from every angle. Hiring a full-time accountant to handle your financial activities, in the beginning, may cost you a chunk of your budget. It would be better for you to use reliable accounting software such as Sunshine Coast for the better finance organization. Monitoring all that you spend will not only help with your cash flow, but it also makes accounting easier when it's time to pay an annual tax. As your business develops and the accounting gets more complicated, you may need to consider hiring an expert.

  1. Prepare for the worst

You will never envisage what can occur when you start a business. So, you should prepare yourself for a possible bad situation. Anyway, continue to remain optimistic. Try to save up in both your personal and business accounts, for cases of emergency. One can never be too prepared for adverse occurrences. Unfortunately, they do happen when one does not expect them.

As an entrepreneur, your retirement is your responsibility. Hence, you should work towards it by making investments, even small ones. If you do not save for rainy days, you might find yourself back in square one. Hence, always foresee a future where your business may not run smoothly and make adequate plans to rescue it from collapse.

  1. Focus on acquiring customers

Your business is non-existent without customers. The sooner you find a way to acquire customers, the higher the chances your business has to succeed. Identify different acquisition channels available to your company and work on optimizing them to lower your costs. Focus on the opportunities that are most lucrative first so that you can have the finances to explore other channels.

  1. Limit fixed expenses

At the beginning stage, it is expedient that you set limits to your fixed costs and keep them low to prolong the lifespan of your business. For instance, you do not need a large, elaborately furnished office located in the best parts of the city. Neither do you need fully catered dishes three times daily? As much as you would like to make yourself comfortable and your establishment conducive enough, unnecessary spending may run your startup down.

Operate thin so that you can distribute the significant part of your capital to grow. This will consequently enable you to achieve whatever perk you may want. Many startups focus on the wrong things, such as over-the-top amenities and fancy offices. They forget that their top priority should be about generating revenue.

  1. Establish financial goals

When you have a vision of what you want your organization to become or how much you'd like it to expand in specific years, the next step is for you to implement that vision. Start by breaking your financial goals down into measurable and reachable ones. Your business will achieve more constant growth when you remain on track with your revenue goals.

In conclusion

You might think that you didn't get into business to become an accountant, so why do you need to learn these accounting tips? Well, understanding these basic concepts will keep you better informed. And, help you make better predictions of your company's future. Apart from guiding you to make smarter financial decisions, the concepts emphasize on your two most valuable resources as an entrepreneur - time and money.

Uncategorized Editor Sat, 17 Aug 2019 06:20:02 -0400
Before You Sign Up: How to Analyze FAHW’s Warranty FAHW is one of the leading home warranty providers in the US. Its services are available in the majority of states and it has multiple positive customer reviews, even on reputed platforms like the Better Business Bureau. The company offers comprehensive coverage and offers great value for money.

A Bit of History: FAHW Home Warranties from 1984 to 2019

FAHW is one of the industry veterans, which first appeared on the market in 1984. Since that time the company has grown tremendously offering its service in all but 16 states. Today it is one of the most reliable in the business with comprehensive coverage and rather low premiums, considering the industry standard.

This company services 523,600 homeowners in different parts of America, and that’s despite the fact that it only offers two plans, Basic and Premium. The company obviously understands the needs of the average homeowner as its plans fit the majority of homes offering comprehensive coverage for the essential systems and appliances within.

The cheapest Basic plan covers: fridge, washer, dryer, garbage disposal, microwave, oven range, cooktop, and trash compactor. Premium Plan extends the coverage to home systems (electrical, plumbing, heating, etc.) and appliances like a vacuum, water heater, and even your garage door. There are also a variety of items you can include as Optional, such as pools, spas, and fans.

According to a recent FAHW analysis, the company is most praised for the quality and speed of contractors’ work. It has similar coverage to the industry leader (American Home Shield) but lower premiums, which explains why this provider is one of the people’s favorites today. It’s also on the Fortune 100 Best Companies to Work For 2019 list.

Reviews indicate that the company ensures emergency repairs are done as soon as possible. However, in non-emergency cases, the repair timeframe is about two days. But you get a chance to get a free second opinion, which only a quarter of the nearly 200 companies in the industry offer.

Most importantly, FAHW has a very straightforward fine print. This means that the risk of being cheated, which is high in this industry, is minimal with this provider. Although there are some complaints about the business, this company isn’t associated with any major incidents like the infamous Wells Fargo scandal.

Pros and Cons of Using Home Warranty Plans

Using FAHW’s home warranty policy can save you a lot of money in cases when one of your expensive home systems or appliances break down unexpectedly. In this situation, you won’t need to delve into your emergency fund (if you even have it) or try to settle for a life without the essential item until you manage to save up for a replacement. The plan will cover a significant part or all of the repair cost.

In the case of FAHW, the limits on repairs range from $500 to $3,500. This means that you might save up to $3,500 and even get the item replaced in some cases. The exact terms for every covered item are outlined in the contract, so take your time studying them.

This kind of protection is most beneficial for:

  • Homeowners, who just made an upgrade or installed new systems and appliances. This kind of extra protection will extend beyond the manufacturer’s warranty.
  • Home sellers, who want to sell the house faster and for a higher price by offering this kind of additional guarantee to the buyer.
  • Landlords, who benefit greatly from not only having extra protection for their property but also from the home warranty company being the one point-of-contact for all repairs.

However, you also shouldn’t forget that a home warranty might be a disappointment to the homeowner. This usually happens in the cases where you don’t use the coverage or only use it for minor repairs. In the latter case you will still have to pay a $75 service fee, which makes even a minor repair not so “minor”.

Another important issue to consider is the possibility of home warranty scams. It’s when the company doesn’t honor its obligations and refuses to pay for the coverage you are due. Unfortunately, such things happen rather often, especially with the new companies that seem to exist for the express purpose of collecting a small fortune in premiums and disappearing with no forwarding address.

The industry also has a major issue with claim denials. These cases are rarely black-and-white and they usually boil down to squabbling over loopholes in the contract’s Terms and Conditions. That’s why it’s essential to study that part of the contract with extreme care and take your time to read through all the fine print. If you don’t understand something, get clarifications before signing up. This might be the thing that makes a difference between you being satisfied and disappointed with your home warranty plan.

What Is FAHW’s Standing on the Market Today?

Many people seek out the biggest companies on the market when they want to find the best ones. After all, it should be natural that the most successful businesses can be trusted. It might be trickier with the home warranties market because this industry is rather new and unbalanced. According to Statista, the top six companies in the industry claim nearly 80% of the market.

And of those six, FAHW is the second biggest. Therefore, even when assessed from this perspective, the company shows itself to be reliable.

Of course, it’s not perfect, and no provider in this industry is. However, with the Better Business Bureau rating of “B+” and hundreds of thousands of satisfied clients all over America, FAHW stands strong.

The company is rather transparent and you can gather a lot of information about it. You definitely should do this in order to make sure that you can trust this provider. But don’t forget that you should obtain information from a variety of sources, because each of them is sure to be biased in some way.

Analyze the information you collect with a cool head and think about your needs. Will this particular plan offer the right kind of protection for you? Are you satisfied with the terms? Are you satisfied with the quality of service you received when you contacted the company for information?

Answer all these questions before making the final decision.

Uncategorized Editor Thu, 15 Aug 2019 16:55:24 -0400
How to handle a situation when you urgently need cash today Financial emergencies can be of several types. There might be multiple occasions when you can be faced with a situation where an urgent requirement for cash will be demanded. It could arise out of medical urgencies, accidental occurrences and many such. Sometimes the unpredictability of an incident makes it more vulnerable and the cash becomes hard to be arranged at those pick hours. Though friends, relatives, banks, and other financial institutions always remain as the savior with money lending provisions, there are certain aspects which must be considered while battling the situation. The logical mind must not be paralyzed during the critical hours.

Think Peacefully

In case of any financial emergency, the first thing that one should do is allow some time to think over the entire situation in a calm mind. An anxious mind often leads to flawed solutions and less effective measures. When thought in a peaceful mind, the best ways out of the bottlenecks seem to appear. To ensure that you make your way out of such a situation effectively, appease your mind and think over the possibilities to choose the best one out of them.

Choose The Best Option

Once you have identified the potential avenues from where you can arrange the money, it is time to recognize the best out of it. The best way is not the one which would provide you with maximum cash, but the one which would entitle you to the sum at less cost. Evaluate the rate of interests associated with the loans and choose the one that seems to tax you least. The other aspect that must be considered while judging the options is the processing time. when in an emergency, a loan that can be processed without any time lapses should be o your priority list even if it comes at a higher price than the one with low costs and substantially high processing time. If the difference between the processing times between a high cost and low-cost loaning option is negligible, you can consider the later depending on the status of the urgency of the situation.

Plan Your Action

Every loan involves a planned execution and the same has to be done neatly even during the rush hours. When we know that you have less time than required to get a job done, we tend to lose control over our meticulous mind. But, the paradox is, this is the time when your logical functioning is the most required. Make sure that you have identified the best source for the loan and initiate the process for application considering the approval time.

Do Not Panic If You Need Cash Today

Panicking about a situation will never get you out of the situation. Therefore, the best option is to approach any emergency with the best of your abilities and reasonability. If you fail to keep the anxiety away, you can also consider consulting a therapist to help you come out of the mental apprehension.

No situation is permanent and a coherent mind always handles the difficulties best. Hence, if you need cash today, you can find a payday loan in Toronto or think over the options and act accordingly instead of panicking.

Uncategorized Editor Tue, 13 Aug 2019 05:48:17 -0400
Why online credit agencies are better than traditional institutes if you need cash today? Financial emergencies may crop up at any time. If you do not have cash in the savings account, then you need to look for alternative options. Credit or short-term loan can come to your rescue. The credit system has evolved over the years. It is one of the main pillars of the economic system. Experts, associated with the financial field have adequate information about the application and issuance process of credit. It can be rather overwhelming for a novice to take in so much at the onset. Thus, it is wise to opt for the services of an expert credit agent.

Earlier, the market was dominated by traditional credit sources. The banks and other financial intuitions were most sought after by the probable borrowers. However, there were both registered and unregistered independent loan agents. With the inception of the internet, the credit market got another avenue to diversify. It laid the foundation for online credit agencies. Recent studies suggest that most people turn to these portal-based agencies to get meet emergency financial requirements.

Go online if you need cash today

Several factors worked in unison to pave the path for the rapid growth of the online credit sector. It does not mean that the traditional institutes have faded into oblivion. But the main issue with reputed loan institutes is that they do not entertain people with a low credit score. If you are a passenger of the same boat, then online loan companies will come to your rescue. Experts opine that the establishment of portal-based credit companies has made the process simpler, faster, and easier.

Easy online application

Hassle of drafting the credit application documents was unnerving for those who are unaware of the ins and outs of this sector. With these online credit companies, interested borrowers no longer have to worry about this. Individuals who are in a hurry will need cash today. With online loan agencies, they need to fill in a digitized application form and highlight the amount they require.

Once the application form is submitted, the company officials will check the details and background of the applicant. The decision of issuing the loan will not depend on the credit score of the person. Thus, it is an ideal alternative for people with a poor credit score. The scrutiny of the applicant is done via software. It provides fast result generation. Once the applicant signs the repayment contract, the online credit company deposits the money in the person’s bank account.

Several loan packages

The financial requirement of one person will differ from another. So, there is no universal loan package that can satisfy all borrowers. The R&D department of these loan agencies continually work to come up with new loan packages. Whether the amount is significant or small, the agencies have a credit package that meets your requirements perfectly.

Each day, more and more online credit agencies register in this sector. Take the necessary precautions to stay out of the traps of fraudulent companies. Research and then pick an online loan organization that has a positive market reputation.

Uncategorized Editor Tue, 13 Aug 2019 05:47:19 -0400
The Benefits of Working With a Credit Repair Company You may be under the impression that the solution for everything in life can be found online. Perhaps you are right – there is a lot we can find on the internet that was not available to previous generations. Regardless, though; there are situations where you will need to hire real-life professionals.

Hiring a Credit Repair Company

Let’s say you need to improve your credit score, it’s best to forego the internet and actually hire a specialist in this field to assist you. You may be asking why? The internet can help you uncover tips on how to improve your diet, change a tire, and assemble a couch. So, why wouldn’t it be the perfect place for information surrounding how to repair your credit score?

Credit repair software will have you doing 99% of the work.

Plus, you will be taking up more time going through software programs than having someone else do it for you.

These are just a few examples, but not the full spectrum. Now, let’s take a deeper dive into why you should hire a credit repair company rather than doing it yourself.

A Professional Helps You Save Time

Stated by a credit repair company in Austin, while you will still be involved in the process and have to make the initial connection with a credit repair specialist, you will be required to do minimal legwork once that relationship is established. Once the credit repair professional has gathered all the information they need, they will be able to hit the ground running and provide you with regular updates on the progress.

Someone Who Cares

While a software program will have coding to assist you, having a real person in your corner will prove to be way more valuable in the long run. A professional will be able to take into account what your short-term and long-term goals are and formulate a personalized solution that meets your specific needs. Communicating with credit bureaus without knowledge of consumer protection laws is extremely difficult, so partnering with a knowledgeable professional who can take the reins for you is incredibly powerful. They know what to say, who to talk to, and what steps they need to take to help improve your credit score.

The Possibility of Money Back

There is no money back guarantee when you install a credit repair software program. When you hire a professional and sign a contract, however, you will usually receive a money back guarantee option should you not be satisfied with the services.

Open Communication

If you install a credit repair software, there won’t be any two-way communication with a professional who can provide you with a comprehensive understanding of what is going on. With a credit specialist, however, you have an open line of communication, you can tap into to learn about the process, pose questions, and gain insight into where corrective action can be made. It’s important to know what’s going on with your credit, and it helps to have an advocate on your side to explain everything to you.

You may not realize at first that bringing on a professional credit repair company for your credit improvement is the way to go. You shop online, communicate online, and basically have everything you need online. In this digital age, real-life interactions are undervalued and underutilized. There’s a myriad of benefits you can reap from having an actual person guiding you through this process.

Uncategorized Editor Sat, 27 Jul 2019 04:41:05 -0400
How to Get Low-Interest Loans Even with Bad Credit Bad Credit Loan

Bad credit loans can be called as personal loans that help you to face financial emergencies even when your credit score is below what you and the banks would like. Many people who have bad credit scores worry about getting loans from big banks. It is because their low credit scores put a limit on their borrowing options.

The bad credit loans come in handy whenever you have a financial emergency like you car needs to be repaired or a medical bill, electricity boll, rent, tuition bill, etc, is on your head.  These loans are treated as personal loans and just like personal loans, you can pay them back in monthly installments. You can opt for a bank loan but it usually comes with a high interest rate for a low score.

However there are other options that will charge lesser interest rate.

  • Credit unions: The maximum interest rate is 18% making this a great option.
  • Family and friends: They will charge you very less or no interest rates.
  • Finding a co-signer: This will allow you to obtain a lower interest rate by using someone else’s high credit score.
  • Home equity: You can get a loan with home equity as proof.
  • Online: You can opt for getting bad credit loans with Personal Money Network or other such online money lenders who provide you with loans.

Of course there are other options like loans from retirement accounts, payroll advances, borrowing against life insurance, etc. but those should be your last resort.  

What are bad credit scores?

Credit scores represent your likeliness to pay back a loan. They range from 300 to 850. The lower your number, the less likely you will repay and vice versa. Bad credit scores range from 300-650. The people who fall in this category are considered as high-risk candidates. They also pay the highest interest rates and are the chief candidates for these loans.

The commonly accepted range is:

  • Excellent: 760-850
  • Very good: 759-700
  • Fair: 660-699
  • Poor: 659-620
  • Extremely poor: Under 620.

However, the definition of bad and good credit scores varies from lender to lender. While some lenders would not lend to anyone below 650, some market give loans to people with 650 or lesser credit score.

Credit utilization, on-time payment of your credit card bills or loans, new credit applications are the three factors that affect your 75% credit scores. If you are able to minimize these, your credit score can improve by 100 points in just six months.

How does your credit score affect you?

If your credit scored is considered good by your lender, you will easily receive a loan with a low interest rate. But, if a lender considers a person’s score bad, the loan might be rejected or be provided with high interest rates. 

The average credit score of Americans was 700 in 2018, 11 point higher than 2008. But this doesn’t mean that everyone has a credit score of around 700, right?  The people above sixty years have an average score of 743 while the youth (18-29-year-olds) only have a score of 652.

The 91 point difference costs a lot of money when shopping for auto or home loans. 

Consider taking a 30-year, $200,000 home loan. If your score is 619 or lower, you will have to pay a total of $212, 502 interest, whereas, if you stand somewhere between 760-850, you will pay $154,744.

In case of a six year, $25,000 auto loan, you will pay a total of $2924 interest if your score is above 700 while if you are below 620, you will pay $13,345.

How can you obtain a loan with bad credit?

The first step is to improve your credit score for comfortable loan offers. Make timely payments and don’t apply for new credits if you want your credit score to improve.

If taking the loan is an emergency, requesting the loan officer in your interview with them and convincing them that you will repay the loan might help.

In the interview with your loan officer, be prepared with documents to show you that you are liable. Lending institutions look for stability. So, if you can prove to them that you have lived in the same house or city, worked the same job with the same employer for several years, it will definitely help you in your appeal for the loan.

You can show your tax returns, alimony or child support, list of assets to strengthen your case. The key is to convince the money lenders that you have become responsible with your money and their money is safe with you. So, any of the documents that prove it will help.

Who provide bad credit loans other than banks?

  1. Credit unions:

Credit unions willingly provide loans to everyone regardless their credit scores. With a low credit score, a bank may charge up to 36% interest rate but a credit union will charge maximum 18% for the same amount.

  1. Friends and family:

They might not judge you over your credit score. Friends and family will not even ask for a high interest rate. But it is noteworthy that delayed payments or default in payment might cost your relationship with them.

  1. Get a co-signer:

You can jointly take up a loan with someone with a good credit score. The lender will give cheaper loan based on high credit score of the co-signer. But in such cases, both of the loan takers are equally responsible for its payback and timely payments. However, if you manage to pay on time, your own credit score will improve.

  1. Home equity loan:

There is an option to take up a loan with your home as security. In such cases, the interest charged is low since the security offered is strong, even though your credit score is low.

  1. Online personal loans:

The loans are provided by lenders that are banks but without offices. They work faster giving you loan in minutes or hours. The loan applications are free of cost and easy to fill out. Also, your low credit score isn’t the only factor that affects their decision to lend.

Uncategorized Editor Mon, 22 Jul 2019 03:55:00 -0400
Smart Financial Moves in Your 20s, 30s, 40s & 50s If you had a timeline of the financial steps you should probably take in life, what would it look like? Answers to that question will vary, but certain times of life do call for certain financial moves. Some should be made out of caution, others out of opportunity.

What might you want to do in your twenties? First and foremost, you should start saving for retirement – preferably using tax-advantaged retirement accounts that let you direct money into equities. Through equity investing, your money may grow and compound profoundly with time – and you have time on your side.

As a hypothetical example, suppose you are 25 and direct $5,000 annually for 10 years into a retirement account earning a consistent 7%. You stop contributing to the account at age 35 – in fact, you never contribute a dollar to it again. Under such conditions, that $50,000 you have directed into that account over ten years grows to $562,683 by the time you are age 65 with no further action from you. If you contribute $5,000 annually to the account for 40 years starting at 25, you end up with $1,068,048 at 65.

Aside from equity investment, you will want to try and build your savings – an emergency fund equal to six months of salary. That may seem unnecessarily large, or just too grand a goal, but it is worth pursuing, particularly if you are married or a parent. You could suffer a disability – not necessarily a permanent one, but an illness or injury that might prevent you from earning income. About 25% of people will contend with such an episode during their working lives, the Council for Disability Awareness notes, and less than 5% of disabling illnesses and accidents are job-related, so workers’ comp will not cover them. As Money notes, just 13% of millennials have disability insurance.

What moves make sense in your thirties? You may have married and started a family at this point, so your spending has probably increased quite a bit from when you were single. As you save and invest in pursuit of long-range financial objectives, remember also to play a little defense.

You should think about creating a will and a financial power of attorney in case something unforeseen happens. Another estate planning/asset protection move that becomes essential at this point is life insurance. Right now a 20-year, $250,000 term life policy for a 35-year-old can cost less than $30 a month. It will not build cash value like a permanent life policy, but it can easily be renewed (and in some cases, converted into permanent life insurance).

What considerations emerge between 40 and 50? This is where you may be “sandwiched” between taking care of your kids and your elderly parents or relatives. Your spending may reach a new peak; hopefully, your salary is rising as well.

Try to maintain your retirement planning effort in the face of these financial stresses – your pace and level of retirement account contributions. You may have teens or pre-teens at home, and if you have not yet considered creating a college fund that can grow and compound over time, now is the right time. You should not dip into your retirement fund to pay for their college educations, no matter how onerous college loans may seem.

You may want to look into long term care insurance. If you are wealthy, or soon will be, it may not be worth buying; you may have the money on hand to pay for years of nursing home care (or other forms of eldercare) that might be needed as you age. If you find yourself in the middle class, LTC insurance may be worth the expense depending on your health history and health outlook. Buying it before age 50 and while you are in good health is a wise move, if you are interested in such coverage.

Between 50 and 60, you are in the “red zone” before retirement. If you can, accelerate your retirement saving through greater contribution levels and/or the catch-up contributions allowed for many retirement accounts after age 50. You may want to tolerate less risk in your portfolio as retirement nears; you may not. Some investment professionals contend that in this era of low interest rates and low inflation, it makes much more sense to tilt a portfolio toward equities than toward fixed-income investments – provided you can put up with the inevitable volatility. Other investment professionals feel that is simply too risky a decision, even with some boomers needing much larger retirement nest eggs.

If possible, think about (and plan for) an approximate retirement date. Aim to reduce your debt as much as possible by that time or earlier. Retiring with multiple major debts can be stressful to say the least. Lastly, check in with a financial advisor in Charlotte, NC to gauge how close you are to realizing your long-term financial objectives.

Uncategorized Editor Thu, 18 Jul 2019 06:54:17 -0400
How Does Health Insurance Work: Understanding Benefits Are you seeing the ever-increasing cost of medical care? Yes, that is happening with everyone around the globe.

While one is traveling to seek medical assistance abroad OR going to the specialists around their local areas or within the country.

It is all going to cost for sure.

And then comes the real turn of signing up for health insurance.

But is it only enough to just subscribe to it and be all done?

Of course, not. It is not really the single entity to just go for it and you are all done.

What we really have to understand besides the cost and the monthly premiums, to know how does the health insurance really work.

So, how does it really work and we will tell you all.

How does health insurance work

How means the procedure.

The reasons.

And understand the benefits that we may count on the health insurance that make it work.

  • Premiums
  • Deductible
  • Co-insurance
  • Out-of-pocket maximum
  • In-network
  • Out-of-network
  • Pre-existing condition
  • Co-payment
  • Waiting period
  • Enrollment/open period


You pay the amount monthly or yearly (as decided at the time of subscription) to your insurance company to keep it active. 

And that is the one vital element of the 


This is the term used for paying the amount to must pay before your coverage initiates.

Normally, it is set at the rounded amount such as US$ 500.00 or US$ 1,000.00 that you must pay per medical assistance and if you are billed US$ 2,500.00 and your deductible is set at US$ 1,000.00, the rest of the US$ 1,500.00 will be paid by your insurer.


It is the part of the amount that one owes to the medical provider once the deductible has been paid.

If your co-insurers of the plan is set at 20 % and you are billed for US$ 200.00, that means you are to pay US$ 40.00 in co-insurance.

Out-of-pocket maximum

Anything that you pay in the name of deductibles and co-insurance charges within a year before your insurance company starts to pay off all of the covered expenses, is called out-of-pocket maximum.


Got in-network coverage within your policy. With in-network, the physicians and medical that attend the patient services which cost so-less and one of the cheapest options for policyholders. The pool of physicians and the medical establishments that have talked out their budget and are up with their lowered rates.


Those physicians and the medical establishments that are not covered in your insurance policy but still if the patient requires immediate assistance and the chance is there for the out-of-network availability, they would cost so much higher than the in-network ones.


With co-payment, you get to pay the full amount when you see a physician or specialist without waiting for the deductible to be paid out.

Waiting period

The employer-sponsored insurance plans where they would have to wait for a period of 90 days before the employees would be allowed to enroll in the insurance plans.

Enrollment/open period

This provides the window of time where you can apply for the health insurance of modifyingt the plan to include your spouse and the children.

When the enrollment window time is expired, the policyholders would not be able to seek modification in their plan until the next enrollment window does not open unless if you experience to qualify the life event such as marriage, birth of a child, divorce, change in the individual and household income, or the relocation of interstate residence.

Uncategorized Editor Fri, 05 Jul 2019 04:54:45 -0400
Earn Money Overnight Using Bitcoin Are you in a financial crisis? Are you worried about rising monthly expenses? Are you a sole earner of your family? Do you want to earn money a little quicker? Do you want to use your money as a capital to earn more money? Are you tired of burning the midnight oil in order to make both ends meet? Do you want to earn money quickly and with less efforts?

Well, this is not that easy but that difficult too.

Bitcoin is one of the cryptocurrency out of the two major currencies in competition with the other named as Ethereum. Earning virtual currency or bitcoin is easy if you read more and more info on this topic. In order to earn bitcoin, there are various ways to earn bitcoin. As we all know, in order to get something (in this case, money) you have to reciprocate in terms of services you can give. Analogous to the fact that we don’t like working on a probono.

One of the way to earn bitcoin is by watching Ads4BTC, in this you have to watch advertisements of time ranging from 5 to 20 seconds and in return you get paid in bitcoins which is analogous to the ads that you have to watch in order to revive your previously game(in subway surfers or any other game). 

There are many ways out of which the most eye-catching way is to trade in bitcoin similar to stock market with the exception that here the money is virtual. First in order to invest you will have to earn the bitcoins which can be done by methods such as Paid-to-Click Websites(you get bitcoins in lieu of watching advertisements),Micro Jobs (you have to do small task in return of some bitcoins) etc. but the drawback with this methods are that they don’t offer you a massive amount of virtual money. Trading of bitcoin involves buying and selling bitcoin , in order to earn profits, “Buy bitcoins when worth is low and sell when worth is high”(Success Mantra).  

Congratulations, now with this much knowledge you can start earning with less turmoil and splurge on whatever you want to. Start using this latest and highly trending bitcoin technology and earn within no time. Fetch that extra income easily without much trouble. Bitcoin is here to fill your pockets within no time. Earn easily online using the bitcoins.


Uncategorized Editor Fri, 28 Jun 2019 04:32:58 -0400
Consolidate Debt With a Personal Loan

There are many ways in which you could incur debt (it is easy, after all!). You may have student loans or car loan debt. You may have various credit cards with ongoing balances. Or, you may also owe family and friends money. With all different kinds of debt with various lenders, you may feel overwhelmed managing that debt. Luckily, you can organize your debt, make it easier to manage and pay it off faster. How, you may ask? With a personal loan!

Why Use a Personal Loan

There are many benefits to using a personal loan to consolidate your debt. First, many personal loans have lower interest rates than credit cards. So, if you are paying a high credit card interest rate or credit card fees, you can eliminate these with a personal loan.

It is also much more manageable to have all of your debt in one place. When you consolidate debt using a personal loan, you will just have the one loan to pay each month- much easier! You can quickly assess your financial state and how much debt you have by looking at the status of one loan. No more forgetting payments or wondering how much debt you have- when you consolidate, it will all be nice and clear!

Personal Loan Flexibility

Another thing that is fantastic about taking out a personal loan is that you can use the money for anything. Most personal loans have very few restrictions, giving you cash in your bank account to use as you see fit. This is different from other loans like a mortgage (which must be used on a home purchase) or a car loan (which must be spent on a car). This means that you can use the cash you receive to pay all your other existing debts and, if you have extra money afterward, you can use it however you like! Take yourself out to a nice dinner to celebrate getting your debt consolidated!

How to Consolidate

Consolidating your debt using a personal loan is actually quite easy. First, decide how much money you will need to pay all your debt in full. Find a lender that fits your needs and then apply for the loan. With a personal loan, you will not need to offer any collateral in order to secure the loan. The lender will likely do a quick credit check and income verification and use that simple information to approve your loan.

Once you have the cash in your account, pay all your debts in full using this money. After they are paid, the only debt you will have is your one personal loan. Typically, your personal loan payment will not vary each month so you will be able to properly budget for the payment in advance. You will pay off your debt faster and in a straightforward, manageable way.

It is clear to see that using a personal loan to pay off your debt is a great idea. It is easy, it is uncomplicated and it will greatly benefit your financial future. Sounds like it is time to look into personal loans now and get your debt under control!

Uncategorized Editor Wed, 19 Jun 2019 01:00:39 -0400
No Credit, No Problem! Ways to Build Your Credit From Scratch According to credit repair companies in Dallas, If you don’t have any credit, you’re not alone. Whether you’ve just got out of high school, have been scared to accumulate a bad credit history, or just haven’t had the opportunity to get credit, there are many reasons why someone wouldn’t have a credit history. Your credit can impact your life and career in many different ways, so it’s crucial to establish a solid financial history as soon as possible. In this article, we’re going to discuss what you can do to start your credit history with a bang and set yourself up for a high credit score in the future.

Get a Credit Card

One of the safest ways to start your credit history is to obtain a secured credit card. To ensure that you never miss a payment, use your credit card for things that are essential and that you already buy, like groceries or gas. This is not the time to buy that shiny laptop or television unless you know that you can make the payments every time on time.

Try to search for a credit card with no annual fees, so you don’t have to deal with another expense. Another reliable option would be buying a credit card from somewhere that you already frequently shop at, like Target. Not only would it be beneficial for you, but you will already be spending money on things you would already would need.

Spend Wisely

Always adhere to the spending limit that you’ve set for yourself. If you implemented a $500 spending limit, stay within those limits. If you don’t, you may find yourself unable to pay your monthly payments which will cause your credit score to diminish. Learn to budget it out correctly before spending and it will make a huge difference.

If your parents have a good credit history, they may be able to cosign for you if you’re looking to apply for a line of credit. This may give you a better chance of obtaining it. Just make sure you stay up to speed with your payments so it doesn’t negatively affect your parents.

For example, a highly recommended way to boost your credit is leasing a car. Leasing will open up a brand new line of credit and allow you to pay your payments on time and establish that you are a responsible consumer. This good behavior will strengthen your credit score.

Make Your Payments On Time, Every Time

If you are a recent college grad, paying back your student loans on time is essential to bettering your credit score. If you can pay more than the minimum monthly balance, it’ll prevent interest from accumulating and forcing you to pay double what you originally owed.

Whether it’s rent, the car note, or your student loans, be sure to pay your bills on time. Anything that you don’t pay or underpay will negatively affect your credit score. Having a late payment can negatively affect your credit score if you let it happen. As you’re starting from scratch, now is the time to establish good fiscal habits.

Take it One Day at a Time

All this credit jargon may seem like a lot to take in, but don’t stress yourself about it. As long as you implement a plan and budget accordingly, you’ll eventually produce a solid credit score. With every line of credit that you open, stay responsible, make your payments on time, and avoid frivolous spending. Remember that eventually, you will have to pay these companies back, and you do not want to put yourself in debt. Stay smart throughout your credit journey, and you’ll be fine.

Uncategorized Editor Tue, 30 Apr 2019 23:08:32 -0400
How Would A Finance Broker Be Of Help? There is no shortage of money lenders in the market. The sheer number of lenders around you is both a blessing and a curse. It's a boon because you would eventually find a lender, irrespective of what your credit history is like. The difficult part is you'll have a hard time finding the right lender for your requirements. And finding the right lender is not all - there are the red tape and excessive documentation you'll have to put up with before your application is approved.

What is a Finance Broker?

A finance broker is an individual or entity that has expert knowledge about the various financing options, including home loans, consolidation loans, investment loans, business or commercial loans, and car loans. A finance broker would negotiate with financial institutions - such as banks, building societies, and credit unions - on your behalf so that you benefit from a lending arrangement that suits your specific requirements. Since finance brokers have access to a huge database of lenders, they can easily compare an array of the finance options available.

How Do Finance Brokers Help?

Most people believe comparing loan products and interest rates to zero in on the right loan option is all that finance brokers do. In reality, a finance broker's job far transcends that initial shopping phase.

Once the right lending product is found, the broker would help you with filling out necessary documentation and forwarding them to the lender house. The broker would know the specific supporting documents that should be included with the application, which includes your employment history and income evidence, bank statements that verify you have no past loan repayment arrears or defaults, and any other piece of information that would help strengthen and support your application. Thereafter, a finance broker would also submit the loan application and see through the process until your application is approved.

A good finance broker would also spend time and effort clearly explaining to you the various lending products so that you understand your loan choices and how they would impact your financial goals overall. The broker would walk you through your loan contract's fine print so that you understand your commitments.

How Are Finance Brokers Compensated for Their Service?

In almost all cases, finance brokers get paid a commission by the lender you ultimately borrow money from. This means you would not be paying any money out of your own pocket for the broker's services.

Various credit providers pay different types and levels of commission. However, reputable finance brokers would be more than happy to reveal details about the commissions they would likely receive for having facilitated the loan. Moreover, the entire commission amount the brokerage firm gets paid is mentioned on your loan papers.

Selecting the Right Finance Broker

There are several finance brokers around who are willing to assist you with your loan hunt. To ensure you work with the right broker, adhere to the following:

  • Check broker qualifications: A finance broker can function as a professional only if he has a license to show, at least in Australia. Therefore, check you are joining hands with a duly licensed and accredited broker.
  • Industry membership: Finance brokers in Australia should also have memberships with various accreditation bodies, such as the FBAA (Finance Brokers Association of Australia) and COSL (Credit Ombudsman Service Ltd.).
  • Willing to interact: The broker you choose should be willing to answer your loan-related questions. If not, take your barrage of questions to a more forthcoming broker.
  • Seek recommendations: Ask family and friends for broker suggestions. If none of the people you know have hired finance broker service before, look for recommendations online.

Finding the right loan can be complex, time-consuming, and quite taxing. Therefore, hire a finance broker and take the major load of responsibility off your shoulders.

Uncategorized Editor Fri, 26 Apr 2019 02:26:24 -0400
Know The Truth Of The Lending Act Before You Take A Loan The Truth in Lending Act or TILA is a federal law that was formulated way back in 1968 but is still in practice to protect consumers when they deal with different lenders and creditors. In fact, all lenders and creditors must follow this Act implemented by the Federal Reserve Board. This Act contains a series of rules and regulations that defines a lot of things such as:

  • The information to be disclosed mandatorily to the consumers and
  • All such information must be provided irrespective of the type of loan applied for.

As per the TILA, the lender is required to disclose a few specific facts such as:

  • The Annual Percentage Rate or APR
  • The finance charges including all types of fees such as application fee, late fee, and even prepayment penalties
  • The actual amount financed
  • The repayment schedule and
  • The total repayment amount over the entire tenure of the loan.

All these details must be presented to the consumer prior to the signing of the loan agreement. At the same time the lender whether it is a bank or any private money lending sources such as or any other must ensure that all these details appear clearly and plainly on all billing statements as well.

Amendments in the truth

As it is, TILA does not confine the measure of interest that a lender can charge from the customer. It also does not specify anything about whether a creditor must grant a loan to the prospective client. Ideally, the Act is all about the lending policy and the need of the lenders to be upfront, transparent and honest about the quantum of cost credit to a consumer.

However, over the years, there have been a lot of amendments made to the TILA. This is done with intent to protect consumers throughout. For example in 2009, the government made significant changes in the Credit Card Act and now requires all credit card issuers to disclose their pricing information to the consumers regarding all their credit products without which they cannot issue any new credit cards.

There were also a few other amendments made in the Credit Card Act such as:

  • All credit card companies will now have to consider the ability of a consumer to repay any transaction made through it before they issue a new credit card
  • The same is also required when they want to raise the credit limit of any existing credit card
  • They must also give a notice at least 45 days in advance before making any increase in the rate of interest in a particular credit card
  • Credit card companies must send the billing statements at least 21 days before the due date
  • They must disclose the cost of making minimum payments
  • They must also mention the time it may take to repay off the entire balance amount with only minimum payments made each moth
  • They must charge only the over-the-limit fee if a cardholder wishes to have such over-the-limit transactions processed and
  • The card issuing company should never offer any tangible incentives such as T-shirts or gifts so that more customers sign up for a credit card.

The government has also a separate Fair Credit Billing Act in place that protects the consumers from any unfair billing practices by the credit card companies. If there is any such thing noted by the consumer in their billing statements, then the law allows the consumer to dispute it in writing.

The credit card issuing company will have to take immediate actions and start investigating on it. While such investigation is on the law allows the consumer to stop paying the disputed amount. The law prohibits the credit card companies to penalize the consumer for such actions for the amounts in dispute.

Implementation of CROA or The Credit Repair Organizations Act is also another significant change made in the law. This Act is specifically designed for those consumers who are wishing to take money for improving their credit.

Under this Act:

  • The credit repair companies cannot lie to the creditors about your credit history. Apart from that, the credit card companies are also prohibited from making any alterations to your identity so that they can get a new credit history.
  • The Act also wants the credit card companies to be fully honest about their services provided to their customers and not misrepresent or misguide them.
  • They must not ask for any type of payment as well before any particular service is provided.

It is also required that all credit repair companies provide you with a proper disclosure about the details to obtain a credit report or to know about the process to dispute any inaccurate information by your own.

There must be a proper contract signed by the credit repair companies before they perform any services for you. They must also allow a 3-day "cooling off" period when such a contract between you and the credit repair company is signed. You can contact them within this period with no cancellation fee.

According to CROA, no company can ask you to waive your rights and any waiver you may sign so will be taken as void and violation of the law.

Dealing with violators

Any financial company that breaks the law will be dealt strictly if you complain to the Consumer Financial Protection Bureau. The CFPB may impose a penalty or fine against such companies and may also ask for a complete or partial refund.

You can also file your complaint with the Federal Trade Commission or your state Attorney General about such companies that break the law.

To wrap it up

As creditors often deny settling debts for a lower amount, it can result in several implications and legal obligations. A few of these obligations are:

  • Harming your credit
  • Possibility of a lawsuit
  • Putting liens
  • Wage garnishment
  • Late fees and high interest rates and
  • Collection calls.

With these laws in place it is ensure that there are no unfair practices that may put your credit as well as your financial situation in jeopardy when you take out any loan.

Uncategorized Editor Tue, 26 Feb 2019 07:47:16 -0500
Consider Consolidating Law School Loans to Get On Top of Debts and Boost Your Finances Law school education is known to be incredibly expensive and law schools have the reputation of charging phenomenally high tuition fees. The skyrocketing tuition fees compel many students to seek certain law school loans. For several students pursuing history, political science, or any other liberal arts, it always would seem to be the right choice to join law school after college. Often aspiring law school students would assume that being a lawyer would mean earning a decent salary and leading an enjoyable life as depicted in many serials on television.

As per, “However, the reality for many law school graduates is much different. Over the last few years, there has been a deluge of law school graduates, which has pushed down starting wages, increased competition for the few positions available, and left a lot of graduates buried in private student loan debt with not enough income to repay it.”

Examining the Expenses Associated with Acquiring a Law Degree

We know that in recent times, law school graduates seem to be in a financial crunch since tuition rates are going up and the opportunities for earning 6-figures are actually shrinking. Most budding attorneys assumed that they would be graduating with a law school debt on an average of $90,000 up to $120,000 and that they would be earning a minimum of $100,000. This looks very much like a perfect financial decision. However, the fact is that currently, lawyers are known to graduate with much more law school debts as compared to what they had actually anticipated. Gradually, less take-home salary and higher payments for student loans are impacting their financial situation adversely.

The problem with taking out massive loans in the region of more than $100,000 for chasing a degree is the fact that you have no idea if you would like pursuing the profession. When you choose a law school, you would require enjoying the work and earning enough for paying back the humungous loan you had taken out. However, the greater issue with you taking out such a huge loan for pursuing a law degree is actually the fact that most of this amount would be in the form of private student loans that are known to be offering far less student loan forgiveness plans and repayment options. As compared to federal student loans, we know that private student loans would be carrying definitely more risk. This culminates in more and more borrowers falling into financial trouble simply because they attempted to pursue law school education.

Law students are already overburdened with an overwhelming financial burden and are expected to be having an assortment of loans right from a state, federal and even private sources. We know that a majority of the graduate students are compelled by circumstances to take out a number of loans simply for making ends meet while pursuing an education at school. They may be having some leftover debts that they had from their undergraduate days. It is understood that the student loan debt on an average is quite high; however, a Law School student would be incurring a phenomenal amount of debts. They start their career on a challenging note as they are already neck-deep in student loans even though, they are hoping to get an impressive starting salary. You may get in touch with reputed sites such as

The Usual Law School Loans

Law students are faced with a situation when they need to pay incredibly high fees for acquiring the much-aspired law degree from a reputed law school. They would, therefore, need to take out an assortment of loans to finance a law degree. You would be taking out multiple loans from the following list of student loans.

  • Stafford Loans
  • Private Law School Education Loans
  • Private Bar Examination Loans
  • Grad PLUS Loans

Law school students are fortunate to come across a host of effective financial tools which may be helpful enough for managing your budget while paying off your law school education. Loan consolidation could be an effective way of tackling with such an overpowering debt in terms of student loans. Consolidation of multiple student loan debts could lead to a debt-free existence later on in your career as a legal professional. Remember to take out private student loans from a lender who is providing an effective private student loan consolidation program. Several student loan lenders would be offering Law School loans that are specialized or cut out exclusively for law school students who would be requiring additional funds for paying off exorbitant law school tuitions. Moreover, ‘Auxiliary Law school loans’ may be including relatively smaller loans that are designed effectively for covering other expenses that are needed for the Bar Exam.

Consolidation of All ‘Private Law School Loans’

‘Private law school loans’ that are from reputed lenders could be consolidated with an effective private consolidation loan. We know that these loans would be varying in repayment plans, interest rates, origination fees, etc. All private consolidation loans would be necessitating good credit for borrowing. If you are not having a good credit score or a good credit history, you could use a creditworthy co-borrower who could be your family or friend who is willing to enter into a financial agreement with you.

When you are actually eligible to apply for a debt consolidation loan to consolidate your private law school loans from a reliable private lender, you must take the golden opportunity for lowering your monthly bills. We understand that the incentives for debt consolidation loans seem to be variable; however, a majority of lenders would be generously offering interest rate reductions when you opt for some automatic payment deduction programs.

Consolidation of All ‘Federal Law School Loans’

Federal Grad PLUS and other lender specific FFELP loans can be consolidated by opting for the federal government's FFEL Consolidation loan. Internet savvy users will have the option of consolidating the loans online and further administering or checking in from the comforts of their own home. FFELP consolidation loans are much less widespread now than they used to be which means you must be judicious as you look for a new lender and be extra wary of deals that look too good to be true. Borrowers enjoy much more flexibility with the federal loans than with their privatized counterparts. It is true that they get fewer incentives but the flexibility of choice and some options like extended and income-based repayment can be very empowering indeed.


Whether you have taken out private, federal, or other such loans for pursuing your law school education, you must take maximum advantage of a debt consolidation option which is most suited to your unique requirements as you are entering the job scene and establishing a niche for yourself in the legal profession.

Uncategorized Editor Tue, 26 Feb 2019 07:46:26 -0500
The Regulations As Imposed By The Collection And Debt Settlement Services Act Collection And Debt Settlement Services Act or CDSSA regime usually regulates the role and conduct of the third party collection agencies. It also governs the delivery of debt settlement services. The primary essence of the CDSSA is to protect the consumers any sort of unfair collection practices typically followed by these agencies. This Act protects the rights of the debtors who engage with debt settlement services.

According to the Act a collection agency is defined as a person or an entity that performs the following specific duties such as:

  • Obtaining or arranging for payments of money owing to a creditor or a lender
  • Selling or offering to sell letters and forms that represent the collection system or its scheme
  • Providing debt settlement services
  • Purchasing debts from different parties that are due and collecting them and
  • Providing consultation on Collection and Debt Settlement Services Act regulation reform.

Moreover, as per the CDSSA regulation reform the services provided by a debt settlement services are also categorically defined and means the following:

  • Offering or undertaking to act as a negotiator for a debtor and making arrangements for the same with the specific creditors
  • Receiving money from the debtor for distribution to the creditors
  • Any services provided in exchange of a fee, commission or any other forms of remuneration that is charged from the debtor.

However, the CDSSA Act prohibits any person or business entity to carry on such jobs that may be deemed fit as a business of a collection agency without having any proper registration as per the Act and their conduct is regulated by the registrants. It is for this reason you are always recommended to check out the debt settlement reviews of a specific company before you actually hire their service. This will ensure that you are in the safe hands and will get the desired service without being duped and left in the same dire situation as before.

Impact on the lawyers

Just as the CDSSA governs and oversees the conduct and functioning of the debt settlement and collection agencies, the application of the Act also has serious impact and implication to the creditor lawyers as well as the law firms who engage with debt collection, litigation and extrajudicial matters.

The CDSSA regime will significantly reduce the chances of any duplication in the regulatory requirements. In addition to that the application of the CDSSA will also impact materially on the ability of the lawyers to provide their services to their clients.

It is noted that this Act will also have cross-border impact where either a collection agency or a collector and the debtor belongs to different locations. This means that the law firms that are located in other parts and act on behalf of an insolvent debtor who is located somewhere else while dealing with the creditors of that part will be subject to the CDSSA requirements as well.

Requirements and restrictions of the Act

The Act also imposes a few practice restrictions and prohibits registration under the CDSSA if the individual registrant does not have a minimum experience of two years of actually handling a collection agency business in each phase. It also prohibits someone who does not have any experience that is related and equivalent to the actual experience that the Registrar feels is necessary to pass the required written examination.

  • In absence of these qualifications, the Act does not even permit a qualified lawyer to practice and perform such actions pertaining to collection or any other services that are directly or indirectly related to insolvency debtors.
  • There are also specific conditions laid down by the Act for such practice and of the registration by the Registrar. In the absence of the above mentioned qualifications and experiences, a lawyer is exempted from even represent or act on the instructions of their clients.

According to the CDSSA there are also a few disclosure of precedents required that enumerates the following:

  • Every applicant must file their registration for a collection agency with the Registrar
  • They must include all copies of forms and letters that it intends to use while dealing with the debtors
  • They must also include copies of forms of agreement that is required in such dealings.

The license is granted for a collection agency after proper inspection and scrutiny of the documents furnished and forms after its receipt. Anything that is relevant to the inspection such as any retrieval device, data storage disks and others may also be included to provide the Registrar with all due information. However, these may be returned to you once the inspection is completed.

Apart from these there are few provisions in the CDSSA as well that may be required for the issuance of search warrants or for the seizure of any specific documents as deemed fit by the Registrar. However, as far as the files for lawyers’ applications, the Act is not so particular and strict regarding preserving confidentiality of the client as well as the solicitor-client privilege.

Debt settlement services agreement

The CDSSA also requires that the debt settlement service agreement meets the specific criteria and requirement if an agency or registrant wants to provide debt settlement services. In the agreement there must be clear mention of a few specific elements such as:

  • The fees: The CDSSA regulates payment for debt settlement services provided. It regulates the ability of the lawyer or the service provider to obtain security or accept a retainer from the debtor or client as well as the amount as fees for providing such services.
  • The service process: The agreement must also include the working process very clearly. The Regulations prohibits the lawyers from contacting a debtor in any way who denies about the debt. It also restricts the lawyer from providing a statement of claim to the debtor.

Apart from the above onus on client is another aspect that should be clear in the agreement just as it is required to include the typical and probable events of default and breach of a covenant or any material inaccuracy.

Uncategorized Editor Tue, 26 Feb 2019 07:45:30 -0500
The Key Acts And ABA Policy Involving Debt Collection And Litigation Management You can either consolidate your debts or go for a negotiation with your creditors for debt settlement and even file for bankruptcy when you find that you current debts are beyond your management abilities. However, irrespective of the road you choose for debt relief, you will need to make sure of the following:

  • You should act according to the set law or face legal consequences
  • Just like you the creditors or the third party debt collectors abide by the law as well
  • Choose an option that is most suitable for your given financial condition
  • Check out both debt settlement and debt consolidation reviews and
  • Not damage your credit in any way.

There are lots of laws and Acts designed by the government to keep you protected from any unfair practices while you are granted a loan or during collection process in case you fall behind your scheduled repayment.

The basic protection for the debtors and creditors however could not be covered by the by the original Fair Debt Collection Practices Act and therefore time and again this along with the other Acts and laws underwent several changes and reforms.

The FDCPA reforms

As per the FDCPA there are a few specific changes noticed in its status and other key points which are aimed at providing more protection to the consumers. However, it was not an easy process and certainly not a smooth ne to bring in these reforms.

  • The original version of the Practice of Law Technical Clarification Act as H.R. 1849 was introduced on April 7, 2017 by Rep. Dave Trott.
  • This was then referred to the House Financial Services Committee. This Subcommittee on Financial Institutions and Consumer Credit then held hearing on it and six other different bills on September 7, 2017.
  • It was during this hearing that the former senior Federal Trade Commission official Anne Fortney testified in favor of this bill and on the other hand, Ms. Chi Chi Wu the Staff Attorney of the National Consumer Law Center voiced opposition.
  • On November 16, 2017, the ABA sent a letter to House Financial Services and Judiciary Committees extending support for the legislation. In addition to that the NCBA, the Commercial Law League of America, the Receivables Management Association and other stakeholders also agreed to support H.R. 1849.
  • When Rep. Trott declared that he will not seek reelection it was then that the legislation was reviewed and was reinstated by Reps. Mooney and Gonzalez on December 5, 2017.
  • However, they first changed it to H.R. 4550 and then to H.R. 5082 again on February 23, 2018. Both these changed versions of the bill were then sent to the House Financial Services Committee.
  • On March 19, 2018, the ABA wanted all members of the House Financial Services and Judiciary Committees, RMA, NCBA and other groups to support H.R. 5082 and sent a letter regarding this so that the bill can be passed promptly.
  • Eventually, the House Financial Services Committee approved and marked up the bill by a vote of 35-25 on March 21.

However, before the voting took place, Rep. Alex Mooney made a statement to explain the need for such legislation and touted the strong support of ABA for the bill. In addition to that, Reps. Gonzalez and Trott as well as Chairman Jeb Hensarling also expressed their favor for the bill but Rep. Stephen Lynch raised opposition.

It is only when the Committee approved the bill, the ABA sent all state and local bar leaders a Legislative Action Alert on April 3, 2018. It also sent out another Action Alert on October 24 wherein they urged all of them to contact the Members of Congress so that they can show their support to the legislation.

The current scenario of H.R. 5082 as of now is that it is pending before the full House. There is a fair possibility of a floor vote before the 115th Congress adjourns. Therefore, the ABA sent a new letter to every Member of the House on September 19 to show their support to pass the bill soon.

Apart from that, the ABA has also sent Grassroots Action Alert and a Toolkit to several of its members on November 8 urging them to communicate with their Members of Congress to show support for the legislation.

The ABA policy

It may seem to you why The ABA is so keen on gaining everyone’s support for H.R. 5082 so that Congress may enact the legislation as soon as possible. This is because of the ABA policy.  

The ABA believes in many significant points that it wants to uphold such as:

  • The principal regulation and oversight of the legal business should remain with the state court of highest appellate authority
  • The attorney must be licensed from this court
  • The responsibility must not be vested on the federal agencies or Congress
  • Courts are the best machinery that can fulfill this important function.

The ABA also believes that when others support this legislation it will help in preserving the regulation and oversight of the traditional state court for legal profession and will not need further clarification from the FDCPA or the CFPB’s regulatory authority that are under the Dodd-Frank Act. This will help in better governing and control on the litigation activities of the creditor attorneys.

They also believe that this legislation will help in judicial regulation of admission requirements, disciplinary rules and ethical codes and that may also include disbarment and potential suspension. This will eliminate the chances of any conflict regarding the regulation between CFPB, Congress or other agencies of the judicial branch of government.

To sum up

Though FDCPA is supposed to be very helpful in debt collection and litigation management the scope of it seems to be marginally narrowed. This is because it will only exempt the creditor attorneys from engaging in litigation activities and will not create a broad exemption for all those attorneys who are engaged in non-litigation debt collection activities.

With H.R. 5082 in place it will apply to all involved in extrajudicial collection activities such as phoning the debtors or demand letters.

Uncategorized Editor Tue, 26 Feb 2019 07:44:37 -0500