remodelingcontractorpa.com http://www.remodelingcontractorpa.com My WordPress Blog Sat, 15 Jun 2019 09:00:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.2.2 How to Consolidate Your Debt: 5 Steps http://www.remodelingcontractorpa.com/how-to-consolidate-your-debt-5-steps/ http://www.remodelingcontractorpa.com/how-to-consolidate-your-debt-5-steps/#respond Sat, 15 Jun 2019 09:00:29 +0000 http://www.remodelingcontractorpa.com/how-to-consolidate-your-debt-5-steps/

For many people, managing multiple accounts can be difficult, including those for credit cards, vehicle loans, student loans, and medical expenses. Often, the first step in debt management is to consolidate these payments into one. If you own a home or if you have good credit, you will have more options to consolidate your debt. But, regardless of your situation, evaluate these debt consolidation strategies before declaring bankruptcy.

steps

steps

Method 1

Method 1

Debt consolidation strategies for owners 1 If you are an owner of credit, you must apply for a second mortgage or a home equity line. Ask for borrowed money, with your home as collateral, and use it to pay off your debt. In this way, you will only have to make a single payment to the creditor of the second bond. The downside would be to pay the cost of the loan, over and above the amount of your debt, and if you didn’t pay, you could lose your home. However, the benefit of this type of loan is that the interest is deductible.

  •  2 If the interest rates are lower, you can refinance your current mortgage. This procedure is also known as amortization and consists of raising the principal balance and refinancing the bond at a lower interest rate. The mortgage payment remains the same or less and you can cancel other accounts with the capital increase.

Method 2

 

Other debt consolidation strategies 1 If you have good credit, you must apply for an unsecured loan. As with the second bond, you can use the loan money to pay off your debt and then pay only one creditor each month.

  •  2 Transfer the debt of your credit card to a card with the lowest interest rate. Whether you want to request an extension of the credit line on your card or go to ask for a new rate to obtain a lower interest rate card, usually you need to have a good credit. This solution only serves to consolidate credit card debt.
  •  3 Contact a reputable credit counseling agency to sign up for a debt management plan (PMD). You can use these types of programs to consolidate your unsecured debts, including credit card debt, student loans, and medical bills. So it works:
  • A credit counselor reviews the status of your debt to determine how much you can pay each month.
  • The adviser negotiates with the creditors to get lower interest rates, fee reductions and lower payments.
  • You agree the PMD that the credit counselor is suggesting to you and verify that your creditors have accepted it as well. Generally, with a PMD it takes 4 years or more to pay off the debt.
  • Monthly payments are made to the credit counseling agency.
  • The credit counseling agency pays the creditors directly and pays fees, as stipulated in the PMD.
  • Home month, check your creditors’ statements to make sure the credit counseling agency makes the payments as agreed.

Tips

 

  • Before using the services of a credit counseling service, check with the Better Business Bureau or the Consumer Protection Agency in your state to see if there are any complaints against the company.
  • Choose a credit counseling service that provides information by phone or in person and thoroughly review your financial situation before you are asked to sign a PMD.

arnings

arnings

  • Do not supplement credit counselors who have not received training and certification in debt management.
  • If you do not yield yourself in dealing with money and debt, you will not be able to make payments on your debt consolidation.
  • The issuer of your credit card can charge you a commission to transfer the balances.
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Mortgages: What Banks Don’t Say? Loans Online http://www.remodelingcontractorpa.com/mortgages-what-banks-dont-say-loans-online/ http://www.remodelingcontractorpa.com/mortgages-what-banks-dont-say-loans-online/#respond Sun, 02 Jun 2019 08:39:43 +0000 http://www.remodelingcontractorpa.com/mortgages-what-banks-dont-say-loans-online/

 

 

 

Mortgages: what banks don’t say …

 

Mortgages: what banks don

 

… unless you ask him!

 

Choosing a mortgage is not something you often do in life. This means that, in most cases, the person making the request to the bank is not an expert on the subject. The selection criteria that are adopted are different, but even the most scrupulous people can overlook some details that may be relevant.

 

Below you will find some ideas on topics related to mortgages that are hardly offered spontaneously by banks, and for which instead it could be interesting to have clarifications in order to choose the best mortgage.

  • What will be the impact on the installment if I decide to pay off part of the loan in advance?
  • How much will the loan pre-repayment interest be?
  • How much does compulsory insurance cost and how should I pay it?
  • If I had to fully pay off the loan before it expires, can I recover part of the costs for compulsory insurance?

Let’s see what a bank could answer to these questions.

 

What will be the impact on the installment if I decide to pay off part of the loan in advance?

 

What will be the impact on the installment if I decide to pay off part of the loan in advance?

 

 Generally it is possible to pay off the loan in advance or only a part of it. In the case of partial early repayment, a portion of the residual capital will be repaid in advance. As a result of this, the installment will be reduced, but by how much? One possibility is the proportional reduction in the amount of capital repaid. So for example if we repay 10% of the remaining capital, we will have a reduced rate of just 10%. But in some cases the bank expects that, in the event of partial early repayment, the duration of the loan will be reduced, going to “cancel” the last installments up to the capital repaid early. Also in this case, less interest will be paid and the installment will be lower, but to a different extent than in the previous case.

 

How much will the loan pre-repayment interest be?

 

 

In general, the pre-amortization interest is taken into consideration only a few days before the signing of the contract, when the games are now made. The bank has already been chosen, everything is ready or almost to go to the notary, when you realize that the amount that will be paid by the bank is actually lower than what was expected. All the blame of the notorious “pre-amortization interest”, that is the interest that must be paid in relation to the period of time that elapses between the stipulation of the loan contract and the expiry of the first installment (generally the first day of the month following the stipulation itself ). These interests therefore depend on various factors, the amount disbursed, the interest rate applied, days between the stipulation and the first installment . If we succeed in minimizing these we will have a significant lowering of this component of interests. We keep in mind that the measure of these interests may not be high in relative terms (eg as a percentage of the amount disbursed) but can take on significant values ​​in absolute terms.

 

How much does compulsory insurance cost and how should I pay it?

 

How much does compulsory insurance cost and how should I pay it?

 The banks, when they provide a mortgage, want to protect themselves by insuring the asset that constitutes the guarantee for the sum lent (for example the property being sold, in the event of a purchase). The costs related to this insurance are borne by the borrower, and are often paid in advance. In some cases they can be included in the installment, and this can be an advantage for the borrower.

If I had to fully pay off the loan before it expires, can I recover part of the costs for compulsory insurance?

 

If the bank asks us to pay the insurance costs in advance, in theory we could request partial reimbursement in the event of early repayment of the loan. In fact, in general, the cost of insurance depends on the duration of the loan, as it is obtained by multiplying the annual cost by the number of years provided for in the amortization plan. However, it is advisable to ask the bank how situations like this are managed.

 

The advice of Mister Banca

 

The advice of Mister Banca

Not always the consultant of the bank that will follow our practice will be able to answer these questions. But this is another reason why it is better to ask these questions: in addition to avoiding unpleasant surprises when it is too late to change a bank, it can be an effective way to assess the seriousness of the institution itself, the transparency of its offers and the reliability of the consultant assigned to us, or that we have chosen, for our mortgage practice. Getting the right answers to these questions is therefore very important and can in some cases affect the choice of the bank and the form of loan that best meet our needs.

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Debt Setter | Lomg Investment http://www.remodelingcontractorpa.com/debt-setter-lomg-investment/ http://www.remodelingcontractorpa.com/debt-setter-lomg-investment/#respond Fri, 31 May 2019 08:14:17 +0000 http://www.remodelingcontractorpa.com/debt-setter-lomg-investment/

 

 

 

The debt setter, also known as book runner, is a bank or group of banks that guarantee the best possible result in a debt issue or shares in the primary market. It is a term widely used in investment banking.

 

It is a process that takes place in the capital markets , and is very well valued and received by institutional investors. Among its multiple functions, are to give the issuer the best possible price and a well diversified investor base.

 

The work of allocators ( book runners ) can be performed by three ways:

 

Order book method: investor requests are recorded in a book of orders.

Assurance method: in this case the placement banks buy the bonds or shares from the issuer, and then place them among the investors. Therefore, the risk is assumed by the banks exposing themselves to market fluctuations (selling later in the secondary market at a higher price) and the issuer at that moment closes its financing at the agreed price.

Bridge loan: when the two previous methods are used.

Bridge loan: when the two previous methods are used.

 

In investment banking, it is normal for this process to be carried by a syndicate of banks (several banks at the same time), to diversify risks and to reach a higher investment base. They are responsible (depending on the method used) for the placement of the debt or shares. The figure of the underwriter, it is common to assign parts of the issue to other banks to carry out the process of attracting investors.

 

The roadshow : the expansion of the investor base

The roadshow : the expansion of the investor base

 

Once the investor has assigned a bank or several banks as placers, they are mandated to hold meetings, presentations, conferences, etc., that is, the roadshow .

 

These actions carried out by the underwriters are neither more nor less than to attract investors, expand the investment base and publicize the issue. The more people who come to the issue, there will be more demand and the price will be higher.

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Ratio of Indebtedness Ratio of Total Assets – Definition http://www.remodelingcontractorpa.com/ratio-of-indebtedness-ratio-of-total-assets-definition/ http://www.remodelingcontractorpa.com/ratio-of-indebtedness-ratio-of-total-assets-definition/#respond Sun, 26 May 2019 08:27:29 +0000 http://www.remodelingcontractorpa.com/ratio-of-indebtedness-ratio-of-total-assets-definition/

 

The ratio of indebtedness ratio of total assets, serves to establish a metric of the degree of indebtedness of a company in relation to the total of its assets.

When financing their activity, companies can choose two ways. Either they finance their activity with their own funds, or they are financed through their creditors.

Its calculation formula is the following:

Each company has to find its optimal capital structure based on their needs and market conditions at all times. The debt ratio of the total assets will allow us to know what proportion of the activity of the company (total assets) is financed by its creditors (total liabilities).

 

Optimal values ​​of the ratio of indebtedness ratio of total assets

 

Optimal values ​​of the ratio of indebtedness ratio of total assets

As usual, the optimal values ​​of the ratios always depend on the sector and the casuistry of each company. However, values ​​between 40% and 60% are considered adequate.

If the value exceeds 60%, the company would be leaving a large part of its financing to third parties. This could cause him to lose autonomy in his administration and management and generate a great interest load. On the other hand, if the ratio is below 40%, the company would have a very high level of equity.

 

Calculation example

 

Calculation example

 

Suppose that company A has a total asset of 100 and total liabilities of 50. On the other hand company B has a total asset of 100 and total liabilities of 75. If we calculate both ratios we have the following:

Debt ratio for the company A = 50/100 = 0.5
Debt ratio for the company B = 75/100 = 0.75

If we multiply the previous examples by 100, we see that company A finances 50% of its activity with third parties and the other 50% with own funds. In this way the company would have a capital structure within the appropriate parameters.

However, the company B is financing 75% of its activity with outside resources and only 25% with its own funds.

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Importance of an optimal capital structure

 

Importance of an optimal capital structure

 

Based on the capital structure of each company, the economic situation could affect them to a greater or lesser extent. Below are some examples.

Changes in interest rates can be a big headache for companies. If a company has a live debt issue at 2% and the interest rate drops to 1%, the company would be paying 1% more on the outstanding balance of its debt. If the company had cash available, it could repurchase that debt and reissue 1% debt. Otherwise, the company would be paying more interest than it could pay for market conditions. This would ballast your results.

Another problem could come for years with poor results. If there are years with poor results, companies can reduce the dividend and even eliminate it. But the payment of debts can not be reduced or suspended.

Therefore, based on the examples of company A and company B, the latter would be considerably more affected by the aforementioned changes since a greater part of its activity is financed by third parties.

 

 

 

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For Lack Of Money What Are The Best Personal Credit Options? http://www.remodelingcontractorpa.com/for-lack-of-money-what-are-the-best-personal-credit-options/ http://www.remodelingcontractorpa.com/for-lack-of-money-what-are-the-best-personal-credit-options/#respond Sun, 12 May 2019 14:12:02 +0000 http://www.remodelingcontractorpa.com/for-lack-of-money-what-are-the-best-personal-credit-options/

 

 

Have personal credit for lack of money? Let’s imagine this situation: Helena wanted to start a small business of her own, for that she rescued all the savings she had saved in the savings, but still needed more money. It lacked funds to hire skilled labor and also raw material for its trade, a clothing store. She needed a secure financing for her business to file as soon as possible.

This really is not just a situation that involves only the lives of few entrepreneurs and owners of micro and small businesses, it seems to be a widespread fact that it is in the business of hundreds of entrepreneurs who to carry on with their business. For lack of money, the remedy is to seek financing in banks, financial and alternative means.

 

What are the credit options for lack of money?

 

What are the credit options for lack of money?

 

How many times have you faced a similar problem? Lack of money is a very common occurrence in the life of every working citizen, whether here in Brazil or in other parts of the world, borrowing money is a worldwide recurrence.

Luckily there are several financing options for the most diverse types of borrowers. They are accessed for financial distress when you face a shortage of money. Each option has its pros and cons. However, how can you react to these funding options? Let’s find out:

  1. Bank limit on Special Check

 

  1.  

    Bank limit on Special Check

 

The overdraft or bank credit limit is an available financing facility for people who have bank account. Based on relationships, financial transactions and account transactions, the bank allows the customer to access a certain cash value when their balance is no longer positive. The bank charges interest on the amount discovered. In addition, there is a limit of days that the customer can use the money without charging interest, usually 10 days.

Pros: The credit limit of the overdraft helps the customer to cope with the temporary shortage of money. Interest rates are medium, so you can avail the extra funds without having to formalize a loan, and still not paying interest for a few days.

Cons: The credit overdraft facility of the overdraft is not available to everyone and only to those who have a checking account. There is a limit that restricts the amount of money accessible for immediate use.

 

  1. Private Credit Cards

 

  1. Private Credit Cards

 

This is the most commonly used source of credit for money financing, credit card are no doubt the turn of the time in the financial market. Credit cards allow you to make a transaction, which is paid later up to 50 days. In this way, you can buy goods and services on credit and pay days later when the credit card bill is generated.

Credit cards have a billing cycle that usually ranges from one month, so you can avail the free credit for up to 50 days. In addition, many cards also allow for the ease of converting part of your greats into points, benefits and compensations. In a lack of money, you can buy a product or pay a service using a credit card and bill the payment only for the due date.

Pros: Credit cards allow you to make transactions without paying with cash via and cash. You can convert the values ​​of the purchases into points for your own benefits, you can install the purchases up to 12 times without interest. It has a cycle of up to 50 days to pay the amount spent on purchases.

Cons: Although credit cards allow an interest-free credit period of up to 50 days, if you do not make your payments until the due date of the invoice, interest is charged and that interest is very high. Credit cards also have other types of charges that increase your expenses like annuity and fines for late payment and overflow.

 

  1. Pre-Approved Line of Credit

 

  1.  

    Pre-Approved Line of Credit

 

A line of credit is like a pre-approved loan. Banks and financial institutions allow their clients a pre-set limit for them to withdraw when they need it with a bundled installment without red tape. This limit is called a pre-approved credit line.

Pros: It’s a simple facility that allows you a fast and super easy credit limit to get. It is cheaper than the interest rates of cards and are charged according to the term chosen by the borrower.

Cons: It is a temporary source of funding that has to be repaid in a short time. There is a pre-set limit for the amount of credit, above this you have to apply with the lender.

 

  1. Personal Loans

    Personal Loans

Personal loans are the most common and the best source of finance for individuals. These are multi use loans that do not require any kind of collateral. Repayment in installments is done in up to 5 years or more and many financial institutions also allow flexibility in payment options and interest rate.

Pros: Loan can be used for any personal or business need. No guarantee is required. The loan is easy to apply and approve. People with restricted and denied names also have easy access.

Cons: By not requiring collateral, personal loans generally have a high interest rate. The amount of the loan depends on the repayment capacity of the applicant or bank client.

Conclusion:

These were some of the sources of personal credit for lack of money. A personal loan option of 12, 18, 24 and 48 months can be a good source of credit as it is easily available from various companies and lending institutions and has short, medium and longer repayment terms.

You can use a personal loan to buy luxury items or pay off debts. Lending and credit platforms, credit marketplaces, banks, cooperatives and various financial institutions always offer special offers for hiring personal loans to attract borrowers and retain them.

Remember Helena? That one from the beginning of this article, she managed for lack of money to expand her clothing store a personal loan with one of our partners. You can too!

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Credit Alternatives When You Need To Borrow Money http://www.remodelingcontractorpa.com/credit-alternatives-when-you-need-to-borrow-money/ http://www.remodelingcontractorpa.com/credit-alternatives-when-you-need-to-borrow-money/#respond Sat, 06 Apr 2019 14:04:04 +0000 http://www.remodelingcontractorpa.com/credit-alternatives-when-you-need-to-borrow-money/

 

 

Real estate mortgages and student loans are credit alternatives that are certainly not included in the numbers that Brazilian banks present as the largest types of financing loans, personal loans, payroll loans, credit for negatives and credit cards are probably the types of the most used financial resources of the moment. Did you know that more than one third of a citizen’s expenses are made by credit card, and the rest consists of loans?

 

What credit alternatives are available in Brazil

 

What credit alternatives are available in Brazil

 

Economically active people generally seek financial resources to meet the short-term lack of money in an unexpected or emergency situation, they hire from small short-term loans to long-term operations and loans with all kinds of payment model and varying interest rates.

If you believe that you fit your lender’s criteria for credit, go ahead and hire, today’s request processes are easy and quick to complete. Each of the credit alternatives and loan terms of money has its terms and conditions and depending on your financial institution the approval may or may not be facilitated.

 

Good debts against bad debts

 

Good debts against bad debts

Not all debt is “bad”, have you heard it? There are some types of loans that can help you, such as a home equity loan (a mortgage) or even a student loan. But, asking for a financing to buy a zero car that will help in an activity that gives you some income can be a good debt as it allows you to earn extra money.

Catching a working capital for your business to be expanded or increasing revenue by implementing some type of growth plan can also be good.

Bad debts, on the other hand, are those that will not be “paid for themselves” in the future. These are the debts you can accumulate to finance your personal desires or other people, your luxuries, daydreams, your compulsive shopping, travel or fun out of your budget. The basic rule with this type of purchase is if you can afford it and if it is essential, and if you must borrow interest money to get it.

Credit Options for Credit

 

There is also a third option as part of credit alternatives, where people borrow and use credit in order to “own or own”. If a bad credit card or other common card is your only way to buy at a food store, or if you need a loan to cover your household expenses and costs, these are still bad debts as you are deconstructing your finances .

When a person can not pay basic debts with their own income, this is a bad sign that you have problems and bad debts. This can have serious consequences for you and your finances. If this is the scenario you face, lending more money will further worsen the situation.

Fortunately, there are a number of free and independent consulting services that you can talk about about your finances. Making a debt containment plan and adjusting your debt is the first step in finding a healthy solution.

Alternative ways to lend

 

Alternative ways to lend

 

Although credit cards and personal loans are your biggest asset – if you can repay within the timeframe – there are many alternatives that can be much better options than bank loans.

 

Borrow money with friends and family

 

Borrow money with friends and family

Borrowing from friends and family is the most common way of not paying interest and not dealing with institutional bureaucracies. If you are confident that you can repay any amount of money borrowed, you can apply with friends and family.

If you do, make sure you agree to the terms and how and when you will return the money to the lender. You can even do this by writing (loan agreement) so you do not forget your commitment.

Borrow money from credit union

Borrow money from credit union

Credit unions are community organizations that often offer bank accounts, payroll loans, people loans, and financing. Interest rates are often much lower than other banking and financial organizations – try it out!

Get credit limit by check in account

Get credit limit by check in account

The overdraft can be incredibly expensive, we can not disagree with this, but if you have access in an emergency – what’s wrong? Some banks offer their customers this special interest-free credit line for a period, so if you consider this mode, do not think twice. However, I use only within the interest-free period.

Use a 0% purchase credit card

Use a 0% purchase credit card

If you have a good credit rating, and need to make a reasonable purchase value, an unlimited credit card or interest-free credit card is a great way to borrow money for a few days or months.

If you have the ability to make repayments each month and have a clear plan to pay these debts at 0% interest – that sounds good to me – you will not be charged interest for the use of the card. As we said, there are various forms and alternatives of credit and loans to be used, you just need to understand which one is best for you.

 

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