Let’s face it, debt is pretty easy to rack up and sometimes we increase that debt to get the new plasma TV or even take that vacation. Don’t get me wrong. I’m not saying that debt is wrong - but it can be dangerous especially if we get our debt management advice from the wrong places. All too often we get the advice from the people who are lending us the money and if you think about it they have no incentive to be honest, fair or interested in our wellbeing in any way. (more…)

Your basic strategy will depend on whether you need time to find work, sell an asset, or for some other reason. If you are playing for time, you have one overriding objective in all of your communications: all important creditors must remain convinced at all times that you will repay them, just so long as you are given sufficient time and leeway to organise your own affairs, and that pressure from them will make no difference.

If on the other hand you really have absolutely no hope of repaying any significant amounts to your creditors, then there is probably little point in playing for time and the best approach will be a flat admission that you will never be able to repay them (see ‘Insolvency’) and that the matter will be dealt with by the court if no better solution can be found. In this case it is important that each creditor is quite clear that this applies to all creditors, and that there is no point (because you do not have the income or assets) in taking any more drastic action. This step is best taken with the assistance of your Citizens Advice Bureau (or a licensed insolvency practitioner if your business has failed), who will write on your behalf if you wish, including copies of your budget statement to support the letters.

These letters should be followed up fairly quickly by offers of repayment, no matter how small, based on any meager resources you may have available. The main object of this exercise is obviously to try to keep your creditors from taking any further action. (more…)

The option which should always be attempted first is simple debt management. This means either not getting yourself into a lot of debt in the first place, by being sensible with your money; or perhaps taking stock of the debt you do have and contacting your creditors to see if they can help you work through a solution. This may not work for large amounts of debt but for less serious cases honesty, a willingness to do better, and a phone call is all it takes.

If you cut back as much as you can and still can’t manage your debts, or you have unhelpful creditors, a consolidation loan could be an option. It goes without saying that you still need to have a reasonable credit score to get one of these at a decent rate, so it won’t work for the truly terminal cases. For everyone else however, a consolidation loan can be a good way to combine all your monthly payments into one, reducing both the amount and the risk of missing or forgetting to pay. (more…)

Some possible challenges could be that you owe more money than you actually own in assets. Or you might possibly be spending more money than what you are actually earning every month. This is typical of people who have been caught up with wanting more than they can actually afford. The idea of buying now and paying later is so appealing, until the bill actually comes in.

Take a look at how much money you are spending each month towards paying down your debt. If you are putting more than 50% then that is a bad sign. Just as bad, is if you are paying more thank 25% in interest every month!

Have you ever looked at your pile of bills and had to pick which ones you were able to pay, since you knew you couldn’t pay them all? That is not a good sign. Definitely you have reached a pretty low point and your debts are just not going to magically disappear. (more…)

All lenders, especially local banks, will do a thorough check of your personal credit history. It most likely will affect your chances of receiving or being declined for a business loan.

You can increase your chances of receiving approval for a business loan by paying close attention to the following personal credit factors:

• Show a steady source of income. Changing jobs prior to or not having employment will decrease your chances. Lenders need to see stability.

• Credit card balances should be paid off or carried at low amount. Never cancel a credit card or apply for a new one prior to applying for a business loan.

• Obtain credit reports from all credit bureaus to check for accuracy. Almost half of the reports have been found to contain errors.

• Determine a manageable down payment amount. It may mean rejection or approval.

Lenders want to be assured the person they are loaning funds to is capable of managing personal finances because it will reflect spending habits within a business. Always be honest with lenders about your personal credit history. (more…)

If the amount of money that you need is small you might consider finding what is commonly called a “payday loan.” These loans are made to give people some support and help them pay for the expenses that pop up between paychecks. While you might only qualify for five hundred dollars (or less) it is certainly better than nothing and might be just what you need to give you some breathing room. Your local area probably has a handful of businesses that offer payday loans and there are also companies that operate online and will send you the funds through a wire transfer. (more…)

There is any number of reasons that you might be considering taking out a personal loan. Maybe you only need a small loan to help you keep your expenses covered while you wait for your next paycheck. Maybe you want to get control of your debt, but can’t keep track of a bundle of individual bills. Perhaps you want to buy a house but don’t have sufficient credit. The number of reasons for needing a loan are as varied as the people applying for them.

Thanks to the downturn of the economy, many lending institutions have tightened the reins on their financial belts. Even people with perfect credit are having trouble getting approved for loans. This is one of the reasons that high risk personal loans have become so popular. (more…)

Being granted a personal loan rests solely on your ability to demonstrate that you will be able to repay the loan yourself. With a personal loan, there is generally no need for collateral. Typically, your lender will look at your credit scores and credit history to learn more about your history of bill repayment. Depending on which state you live in, repayment problems as old as a decade could affect your score and make it hard (in some cases impossible) to be granted a loan through a normal lending institution. (more…)

Most people think that once their credit scores hit the “risk” level that they have no options available to them if they ever need financial help. That couldn’t be farther from the truth! There are plenty of ways for people with bad credit to get financial help and small personal loans.

One of the easiest ways of getting the funds you need is most commonly through a payday loan. Payday loans are available in smaller sums. Typically the largest payday loan you will be able to get is five hundred dollars. If this is more than you need, then a payday loan is absolutely your best bet. The best part about these small loans is that most of the companies who offer them don’t check your credit score. Usually, the only qualifications for approval are a checking account that is in good standing at your bank and steady employment (they like to see between one and three months at your current job). (more…)

When it comes to needing to secure financing somewhere in order to get us out of a bind, you may have no other choice to go. For example, what would happen if we had a toothache that needed taken care of right away? Many dentists will not work on your teeth if you do not have the money up front. In this instance, applying for one of the unsecured personal loans for people with bad credit is really our only choice. This is just one example, although there are a multitude of things can come up that can create this type of financial need. (more…)