credit cards – Sendika12 http://sendika12.org/ Mon, 14 Mar 2022 20:48:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://sendika12.org/wp-content/uploads/2021/10/profile-120x120.png credit cards – Sendika12 http://sendika12.org/ 32 32 Liz Weston: How buy now, pay later loans could alter credit https://sendika12.org/liz-weston-how-buy-now-pay-later-loans-could-alter-credit/ Mon, 14 Mar 2022 12:21:40 +0000 https://sendika12.org/liz-weston-how-buy-now-pay-later-loans-could-alter-credit/ Expanding access to credit is a laudable goal. Too many people can’t get a mortgage or an emergency loan at a reasonable rate because they can’t show a strong credit history. They may pay more for insurance or make large security deposits to obtain utilities or rent an apartment. Recently, the three major credit bureaus […]]]>

Expanding access to credit is a laudable goal. Too many people can’t get a mortgage or an emergency loan at a reasonable rate because they can’t show a strong credit history. They may pay more for insurance or make large security deposits to obtain utilities or rent an apartment.

Recently, the three major credit bureaus announced plans to incorporate “buy now, pay later” plans, a hugely popular type of point-of-sale financing that until now has mostly stayed outside the traditional credit ecosystem.

But no one should expect purchases now, paid later to instantly open the door to better credit. If you want reliable access to the greatest number of lenders, building credit through traditional means is still the best route.

BUY NOW, PAY LATER LOAN POPULARITY RISES

If you’ve purchased something online recently, you’ve probably come across a “buy now, pay later” option that offered to split your purchase into a few installments. Retailers partner with lenders such as Affirm, Afterpay and Klarna to offer payment plans, which typically don’t require rigorous credit checks and may not charge interest. With the popular four installment option, for example, you pay off your balance in four equal, interest-free installments due every two weeks. Instead of charging interest, lenders get a percentage of what you spend from the retailer, similar to interchange fees charged by credit cards.

Like any easy credit, these plans can tempt people to overspend. Buy now, pay later loans are also largely unregulated and lack the consumer protections that cover credit and debit card purchases. Additionally, the Consumer Financial Protection Bureau is investigating how buy now, pay later lenders are using the payment and purchase data they collect from customers.

CREDIT OFFICES ALWAYS WORK ON THE DETAILS

Credit bureaus want access to this payment data, hoping they can offer traditional lenders insight into how these borrowers might handle other types of credit.

Offices are not altruistic, of course. These are private companies that want to make a profit. But in doing so, the bureaus could help expand access to credit by identifying borrowers who could likely manage credit among the millions of “invisibles” – people with no credit history – as well as those who have too little information in their file. files to generate credit scores. TransUnion’s Pagel called buy-it-now, pay-later data the biggest opportunity for financial inclusion in a generation.

How the offices will go about this is still in the works. Two of them, TransUnion and Experian, say that for now the information will not be included in regular credit reports, but lenders will be able to request it. The third bureau, Equifax, says it will feed the data into people’s credit reports.

But the leading credit-scoring company, FICO, is still studying buy-now-pay-later data to see how well it predicts how people might handle further credit. There’s not even agreement yet between the bureaus on whether the loans should be treated as revolving debt, like credit cards, or as installment loans, which typically last much longer.

“This is such an important question because how it’s reported makes a definite difference in its impact on the score,” says Ethan Dornhelm, vice president of scores and predictive analytics at FICO.

HOW YOU CAN BUILD BETTER CREDIT NOW

If you’re currently trying to build or rebuild your credit, you probably don’t want to wait for those details to be ironed out.

Consider asking someone responsible for credit to add you as an authorized user to their credit card. Other options include a credit builder loan or a secured credit card from a lender that falls under the Tri-Bureau.

Credit loans, offered by credit unions or online, put the money you borrow into a savings account or certificate of deposit that you can get back after you’ve made all the monthly payments. A secured credit card usually gives you a line of credit equal to the deposit you make with the issuing bank. These aren’t instant fixes for bad credit or no credit, of course, but they are proven ways to expand your own access to credit now.

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This column was provided to The Associated Press by personal finance website NerdWallet. Liz Weston is a NerdWallet columnist, certified financial planner, and author of “Your Credit Score.” Email: lweston@nerdwallet.com. Twitter: @lizweston. NerdWallet writer Bev O’Shea contributed to this report.

RELATED LINK:

NerdWallet: Could a buy now, pay later loan affect my credit? https://bit.ly/nerdwallet-buy-now-pay-later-affect-credit-score

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BOI- Interest rates on bank deposits and loans: January 2022 https://sendika12.org/boi-interest-rates-on-bank-deposits-and-loans-january-2022/ Fri, 04 Mar 2022 08:35:06 +0000 https://sendika12.org/boi-interest-rates-on-bank-deposits-and-loans-january-2022/ The weighted average interest rate on new deposits remained unchanged at 0.04% in January 2022while the weighted average interest rate on new loans rose to 3.90%. The interest rate differential between new deposits and loans increased to 3.86 percentage points. The weighted average interest rates on outstanding deposits and loans remained unchanged at 0.04% and […]]]>

The weighted average interest rate on new deposits remained unchanged at 0.04% in January 2022while the weighted average interest rate on new loans rose to 3.90%.

The interest rate differential between new deposits and loans increased to 3.86 percentage points.

The weighted average interest rates on outstanding deposits and loans remained unchanged at 0.04% and 3.51% respectively.

The interest rate differential between outstanding deposits and loans remained unchanged at 3.47 percentage points.

1.	Interest rates on euro-denominated new deposits and loans

New deposits

The weighted average interest rate on new deposits remained unchanged at 0.04%.

In particular, the average interest rates on sight deposits placed by households and non-financial corporations remained unchanged at 0.03% and 0.00% respectively. The average interest rate on household deposits with a maturity of 1 year or less also remained unchanged at 0.14% compared to the previous month.

New loans

The weighted average interest rate on new loans to households and non-financial corporations increased by 14 basis points to stand at 3.90%.

More specifically, the average interest rate for consumer loans with no defined maturity (a category that includes credit cards, revolving loans and overdrafts) remained almost unchanged at 14.65%.

The average interest rate on variable-rate fixed-term consumer loans increased by 54 basis points to 11.88%. The average interest rate on variable rate mortgages also increased by 31 basis points to 2.36%.

The average interest rate on new business loans with no defined maturity decreased by 10 basis points to 3.92%, while the corresponding rate on loans to individual entrepreneurs increased by 15 basis points to 6.57 %.

In January 2022, the average interest rate on variable-rate fixed-term corporate loans fell 4 basis points to 2.79%. The interest rate on variable-rate fixed-term loans to small and medium-sized enterprises (SMEs) fell 72 basis points to 2.69% from 3.41% the previous month.

With regard to the structure of interest rates according to the amount of loans granted, the rate of loans up to €250,000 decreased by 9 basis points to 4.37%, on loans over €250,000 and until 1 million euro increased by 14 basis points to 3.46% and on loans by more 1 million euros decreased by 8 basis points to 2.69%.

2.	Interest rates on outstanding amounts of euro-denominated deposits and loans

Deposits

The weighted average interest rate on outstanding deposits (including sight deposits) remained unchanged at 0.04%.

In particular, the average interest rate on outstanding deposits with a duration of less than or equal to 2 years placed by households remained unchanged at 0.09%, while the corresponding rate on deposits placed by companies not financials remained virtually unchanged at 0.06%.

Loans

The weighted average interest rate on outstanding loans remained unchanged at 3.51%.

In particular, the average interest rate on outstanding mortgage loans over 5 years remained almost unchanged at 1.90%, while the corresponding rate on consumer loans and other loans to individuals and private institutions non-profit fell 5 basis points to 6.29%. The average interest rate for business loans over 5 years and the corresponding rate for loans to individual entrepreneurs remained virtually unchanged at 3.03% and 4.22% respectively.

Table 1: Average interest rates on new deposits and loans denominated in euros (percentages per year)

November 2021

December 2021

January

2022

DEPOSITS

Household overnight stay

0.03

0.03

0.03

Overnight of non-financial corporations

0.00

0.00

0.00

Households with an agreed maturity of up to 1 year

0.14

0.14

0.14

Weighted average rate on all deposits

0.05

0.04

0.04

LOANS

Consumer without defined maturity

2:50 p.m.

14.63

2:65 p.m.

Company without defined maturity

4.02

4.02

3.92

Individual entrepreneurs with no defined maturity

6.47

6.42

6.57

Variable rate housing

2.41

2.05

2.36

Consumer with a defined variable rate maturity

11:42

11:34 am

11.88

Corporate with defined maturity at variable rate:

2.56

2.83

2.79

amounts up to €250,000

4.39

4.46

4.37

more quantities €250,000 and until 1 million euro

3.18

3.32

3.46

more quantities 1 million euros

2.38

2.77

2.69

Variable Rate Small and Medium Business Fixed Term Loans

3.29

3.41

2.69

Weighted average rate on all loans

3.73

3.76

3.90

Interest rate spread

3.68

3.72

3.86

Table 2: Average interest rates on outstanding deposits and loans denominated in euros (percentages per year)

November 2021

December 2021

January

2022

DEPOSITS

Households with an agreed maturity of up to 2 years

0.10

0.09

0.09

From non-financial corporations with an agreed maturity of up to 2 years

0.07

0.07

0.06

Weighted average rate on all deposits

0.04

0.04

0.04

LOANS

Housing with more than 5 years of maturity

1.91

1.89

1.90

Consumer and other loans to individuals and private non-profit institutions with a term of more than 5 years

6.41

6.34

6.29

Company with more than 5 years of maturity

3.09

3.02

3.03

To sole proprietors with a maturity of more than 5 years

4.29

4.25

4.22

Weighted average rate on all loans

3.51

3.51

3.51

Interest rate spread

3.47

3.47

3.47

Remarks:

1.	The interest rate spread is the difference between the weighted average rate on all loans and the weighted average rate on all deposits.
2.	For the calculation of the weighted average interest rate on all outstanding deposits the overnight deposits are also taken into account.
3.	Loans at a floating rate comprise also loans with an initial rate fixation period of up to one year.
4.	New business refers to new contracts that were agreed during the reference month and not actual loan disbursements.

Related information:

The full set of data on interest rates on bank deposits and loans is published in the subsection “Interest rates on bank deposits and loans” on the Bank of Greece website.

The next press release for February 2022 will be published on March 31, 2022according to the release schedule on the Bank of Greece website.

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Alternatives to Debt Consolidation Loans https://sendika12.org/alternatives-to-debt-consolidation-loans/ Fri, 25 Feb 2022 08:00:00 +0000 https://sendika12.org/alternatives-to-debt-consolidation-loans/ Debt consolidation loans are personal loans used to merge high interest debts such as credit cards, payday loans or other bills into a brand new fixed rate loan. Once you have received the funds for this loan, they are used to pay off your other debts. If you pay off the loan on time, get […]]]>

Debt consolidation loans are personal loans used to merge high interest debts such as credit cards, payday loans or other bills into a brand new fixed rate loan. Once you have received the funds for this loan, they are used to pay off your other debts. If you pay off the loan on time, get a lower interest rate, and don’t incur any additional debt that you can’t handle, you might be able to pay off your debt faster and save a ton of money on interest.

However, while using these loans is a good way to consolidate payments and hopefully lower the interest rate on your debt, there are several debt consolidation loan alternatives for people who don’t. may not qualify for a debt consolidation loan or those looking for lower interest rates. .

Debt Consolidation Loan Alternatives

A debt consolidation loan is not for everyone. Since debt consolidation loans are unsecured personal loans, lenders may have stricter eligibility criteria or the loans may not be large enough for the types of debts you are trying to consolidate. Here are some debt consolidation loan alternatives:

  1. Balance Transfer Credit Card: A balance transfer card allows you to transfer debt from other credit cards – usually credit cards from other companies only – or use a balance transfer check to combine other forms of debt into one 0% interest rate. This promotional low rate period typically lasts 12-21 months, and a good to excellent credit rating is required for approval. Once the introductory period is over, you will be responsible for paying the card’s standard interest rate on the remaining balance. Additionally, most cards will charge you a balance transfer fee on the total amount you transfer, usually 2-5%.
  2. Home equity loan or HELOC: Home equity loans and home equity lines of credit (HELOCs) allow you to borrow against the equity in your home. While a home loan has fixed monthly payments at a fixed interest rate, a HELOC works like a credit card and has a variable interest rate. Both can be used to consolidate high-interest debt, but you risk losing your home if you can’t pay them off. Also, both require you to have some equity in your home. Compared to debt consolidation loans, home equity loans and HELOCs often have longer repayment periods, larger loan amounts, and lower interest rates.
  3. Refinancing by collection: A cash-out refinance replaces your existing mortgage with a brand new mortgage for more than your current outstanding balance. You can withdraw the difference between the two balances and use it to improve your home or consolidate your debts. As with using a home equity loan or HELOC, you risk losing your home if you cannot repay your new loan.
  4. Debt settlement: Debt settlement takes place when you negotiate with your lender to pay less than what is owed to settle the debt. You can negotiate with the debtor yourself or pay a fee to a debt settlement company or lawyer to negotiate on your behalf. Even if you, a lawyer, or a business successfully negotiate a settlement, your credit score can take a hit.
  5. Bankruptcy: Filing for bankruptcy involves going to federal court to have your debts canceled or reorganized to give you time to pay them off. While you can pay off your medical debt, personal loans, and credit card debt in the event of bankruptcy, paying off your student loans and tax debt is incredibly difficult. Before choosing this alternative, keep in mind that your credit score will take a hit; it may take years for him to recover.

The bottom line

While using a debt consolidation loan to merge your high-interest debts might make financial sense if you can get a lower interest rate, it’s not your only option. In some cases, choosing an alternate route may be a better choice. For example, you might be able to get a lower rate by taking out a home equity loan, since it’s a secured loan backed against your home.

However, it is also important to know the risks involved in choosing such an alternative. Shop around the different options and compare interest rates, repayment terms, and the trade-offs you’ll make with each before continuing.

Learn more:

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How can you benefit from the lowest interest rates on personal loans? https://sendika12.org/how-can-you-benefit-from-the-lowest-interest-rates-on-personal-loans/ Fri, 18 Feb 2022 04:29:47 +0000 https://sendika12.org/how-can-you-benefit-from-the-lowest-interest-rates-on-personal-loans/ Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We may receive a commission when you click on links to our affiliate partners’ products. Personal loans are a convenient way to borrow small or large amounts of money. They can be used to cover […]]]>

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We may receive a commission when you click on links to our affiliate partners’ products.

Personal loans are a convenient way to borrow small or large amounts of money. They can be used to cover a variety of expenses – like a wedding, funeral, vacation, surprise medical bill, home repairs and more. And the money is usually paid directly to your bank account in just one day, so you can start spending when you need it. Personal loans have also gained a reputation for lower interest rates than credit cards.

Personal loan APRs average 9.09%, according to the most recent Fed data. In contrast, the average credit card interest rate is around 16.44%. However, some lenders, like LightStream, offer rates as low as 2.49% and offer additional annual percentage yield rebates for signing up for autopay so that your monthly payments are automatically deducted from your bank account.

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    2.49% to 19.99%* when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, renovation, car financing, medical expenses, marriage and more

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

A lower interest rate can save you hundreds or even thousands of dollars when paying off a loan. This is why it is beneficial to benefit from an interest rate that is as low as possible.

Generally, the best way to get some of the lowest interest rates on a personal loan is to make sure you apply with a great credit score. The better your credit score, the more favorable the terms of your personal loan will be.

This is because lenders consider applicants with higher credit scores to be more creditworthy, i.e., more likely to make all payments on time and repay the loan amount in full. Thus, they are considered less risky borrowers and lenders will be more inclined to collect lower interest charges from them.

That doesn’t mean you won’t be approved for a personal loan if you don’t have great credit (in fact, we’ve rounded up the lenders who will always accept applicants with lower credit scores). You might not get the best rates and terms.

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If you have time to plan ahead before taking out a personal loan and you’re not too confident about your credit score, you can try taking steps to raise your credit score before submitting your demand.

Continue to pay down your credit card balances to reduce your credit utilization rate. Credit usage is the ratio of the amount of credit you use to the total amount of credit you have. Your credit usage is the second most important factor in your credit score (behind payment history).

The general rule is to keep your credit utilization rate below 30%, but a FICO study found that consumers with credit scores of 750 and above use less than 10% of their total available credit limit.

It may also be worth checking your credit report for any errors that could lower your credit score. You can use Experian to sign up for a free account and check your credit report and receive credit scores from all three bureaus: Experian, Equifax, and TransUnion. Experian also offers a credit monitoring service (also free) that can help you detect possible cases of identity theft, which can affect your ability to get approved for new lines of credit.

Also, be sure not to ask for too many new lines of credit at once. Too many serious new inquiries around the same time can also lower your credit score and make it even harder for you to get approved for your desired personal loan interest rate.

While it may seem like a lot of work, especially if you’re totally new to personal loans, it can also be beneficial to shop around with different lenders to find the lowest rate you qualify for.

With this comparison tool, all you need to do is answer a few questions and Even Financial will determine the best offers for you. The service is free, secure and does not affect your credit score.

This tool is provided and powered by Even Financial, a search and comparison engine that connects you with third-party lenders. Any information you provide is given directly to Even Financial and it may use that information in accordance with its own Privacy policies and Terms of use. By submitting your information, you agree to receive emails from Even. Select does not control and is not responsible for the policies or practices of third parties, and Select does not have access to the data you provide. Select may earn an affiliate commission on partner offers in the Even Financial tool. The commission does not influence the selection in the order of the offers.

And if, despite these steps, your credit rating is still not where you think it should be, you might consider using a co-applicant for your personal loan application. A co-applicant is someone who applies for the loan with you and is also responsible for repaying the full amount of the loan. Co-applicants are often referred to as co-borrowers and can usually be added to your personal loan application form.

Applying with a co-applicant who has a higher credit score than yours can help you get approved for a lower interest rate and other more favorable loan terms. Remember that not all personal lenders accept co-applicants, so you will need to check with the lender before submitting your application. SoFi and OneMain Financial, for example, are two lenders that allow co-applicants, and borrowers can request up to $100,000 and $20,000 respectively.

SoFi Personal Loans

  • Annual Percentage Rate (APR)

    5.74% to 20.28% when you sign up for autopay

  • Purpose of the loan

    Debt consolidation/refinance, home improvement, relocation assistance or medical expenses

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

OneMain Financial Personal Loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, big expenses, emergency expenses

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

    Flat fee from $25 to $1,000 or percentage ranging from 1% to 10% (depending on your state)

  • Prepayment penalty

  • Late charge

    Up to $30 per late payment or up to 15% (depending on your state)

At the end of the line

Lower interest rates make personal loans an attractive way to borrow money for major expenses. However, to ensure you get some of the lowest rates offered by a lender, you will need to apply with a very good credit score. Reducing your credit usage and checking your credit report for errors are just a few steps you can take to boost your credit score just in time to submit an application. But if you’re short on time or these actions aren’t as effective as you thought, you might consider finding a co-applicant with a higher credit score.

Check out Select’s in-depth coverage at personal finance, technology and tools, The well-being and more, and follow us on Facebook, instagram and Twitter to stay up to date.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

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Panama City debt consolidation lawyers predict surge in bankruptcy filings https://sendika12.org/panama-city-debt-consolidation-lawyers-predict-surge-in-bankruptcy-filings/ Thu, 17 Feb 2022 17:31:48 +0000 https://sendika12.org/panama-city-debt-consolidation-lawyers-predict-surge-in-bankruptcy-filings/ Panama City, Florida. – At the start of 2020, the number of bankruptcy filings began to decline and continued to do so as the coronavirus pandemic swept the world. At any rate, local debt consolidation lawyers Lewis and Jurnovoy theorize that despite low filing numbers throughout 2020 and 2021, rising credit balances last year could […]]]>

Panama City, Florida. – At the start of 2020, the number of bankruptcy filings began to decline and continued to do so as the coronavirus pandemic swept the world. At any rate, local debt consolidation lawyers Lewis and Jurnovoy theorize that despite low filing numbers throughout 2020 and 2021, rising credit balances last year could signal a dramatic shift in the other direction in 2022.

Many people didn’t want to risk taking out new loans or increasing their debt levels with the stability of the economy in question for most of 2020. However, Erica Giovanetti, personal finance reporter for Fox Business, said in a item early February that “as the country’s economy comes back to life and unemployment rates return to pre-pandemic levels, consumers are returning to old borrowing habits. Revolving credit balances increased nearly every month of 2021, from $961.5 billion in January to $1.04 trillion in November. This suggests that consumers have higher balances on their credit cards, car loans and personal loans. »

With credit balances soaring and eviction bans and foreclosure moratoriums no longer in place in 2022, Lewis and Jurnovoy speculate that the country could see the number of bankruptcy filings start to rise d shortly.

For those who need help with debt relief, Lewis and Jurnovoy offer free appointments to anyone considering filing for bankruptcy. the experienced bankruptcy attorneys at Lewis and Jurnovoy can help you with many different types of debt, as well as a variety of financial levels. They work tirelessly to find the best financial solution for each client. For more information on bankruptcy help in or around Panama City, call Lewis and Jurnovoy at (850) 913-9110 or visit them online at www.LewisandJurnovoy.com.

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For more information about Lewis & Jurnovoy, PA – PCB, contact the company here:

Lewis & Jurnovoy, Pennsylvania – PCB
steven jurnovoy
(850) 913-9110
[email protected]
2714 West 15th Street
Panama City, Florida 32401

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Affordable debt consolidation https://sendika12.org/affordable-debt-consolidation/ Wed, 16 Feb 2022 23:09:09 +0000 https://sendika12.org/affordable-debt-consolidation/ Credit card spending has increased in the United States due to financial constraints caused by COVID-19. Texas leads the pack behind California for states with the highest increase in credit card debt, according to a Sept. 21 study by WalletHub. And low mortgage interest rates haven’t translated into low credit card interest rates. Surprisingly, the […]]]>

Credit card spending has increased in the United States due to financial constraints caused by COVID-19. Texas leads the pack behind California for states with the highest increase in credit card debt, according to a Sept. 21 study by WalletHub. And low mortgage interest rates haven’t translated into low credit card interest rates. Surprisingly, the median interest rate on all credit cards in the Investopedia Card Database for October 2021 is 19.49%.

These high interest rates can create financial hardship for people who have significant credit card debt. High payments can make it impossible to cover rising living expenses. Debtors who have fallen behind face relentless collection calls and sometimes debt collection lawsuits. Fortunately, there are solutions to this crippling debt. Let’s look at the most common options.

Secured or unsecured debt consolidation loans:

Unsecured debt consolidation loans involve taking out a low interest loan to pay off higher interest credit card debt. Since these loans have no collateral that the lender can seize or repossess, they require high credit scores and excellent debt-to-income ratios to reduce their risk. Most secured debt consolidation loans use home equity as collateral. In Texas, your home must be maintained at less than 80% when using equity, so not all of the equity is available through a refinance or 2nd mortgage . However, if you have sufficient equity, the credit score requirements are lower than for an unsecured loan because your home is collateral.

Debt management plan with credit counseling:

A credit counseling program can offer some of the benefits of a debt consolidation loan, including the need to make one monthly payment and lower interest rates. There is no need to take out a new loan since the rates on your existing debts are reduced, so good credit scores are not required, but you must afford the monthly payments. However, this is considered a “hard” program, so if you want to take on more debt (and have the ability to pay for it), then this is not a program you should consider. Based on your current interest

rate, the monthly payment is likely to be lower than your combined minimum payments, and these programs are designed to pay off the debt in about five years or less.

Debt Negotiation for Debt Relief

Debt negotiation, also known as debt settlement, is another common way to resolve crippling credit card debt and personal loans. This is a hardship program, and similar to credit counseling, it is not an option if you plan to apply for more debt before completing the program. These programs are usually structured to last around 24 to 48 months, depending on your monthly budget and negotiated amounts. Monthly program payments can cost less than half of minimum payments. A reputable program will not charge trading fees until a debt is settled.

The savings are the result of not making monthly payments to your creditors. Instead, money is deposited in an FDIC-insured special purpose account while debts are negotiated and settled for less than the total balances, one at a time. The program is ideal for those who are about to fall behind or those who have already fallen behind, as failure to make minimum payments will negatively affect a credit score. However, it can be a great alternative to bankruptcy, and since the program can be completed much faster than most other options, you can also start rebuilding your credit score quickly. All debt negotiation programs are not created equal. Debt Redemption trading fees are often 20-40% lower than foreign firms. They also have special resources to help Texans who have been sued by a creditor or debt collector.

Chapter 7 or 13 Bankruptcy:

Bankruptcy may be the shortest and cheapest way to settle a debt if you can qualify for Chapter 7. Many people with large incomes or non-exempt assets have issues that prevent Chapter 7 filing and Chapter 13 might be the only form of bankruptcy available. In some cases Chapter 13 will be more expensive than a debt negotiation program, and in other cases it will be less expensive. If you are considering this option, consultation with a Texas bankruptcy attorney is necessary. Debt Buyback does not provide legal advice.

Get Free Debt Relief Consolidation

Affordable Debt Consolidation in San Antonio, TX also has several offices in the Lone Star State to help Texans struggling with crippling debt. If you’re considering debt consolidation loans, credit counseling, or debt settlement, a Texas Debt Specialist can provide you with a free, no-obligation phone or office consultation. We can also refer to Texas bankruptcy attorneys when needed. Learn about your options for resolving your debt today so you can start living your debt-free life. Call 800-816-1003 or visit https://affordabledebtconsolidation.com

For more coastal life, visit our website or follow our Facebook and Instagram.

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6 reasons why a personal loan is ideal for debt consolidation https://sendika12.org/6-reasons-why-a-personal-loan-is-ideal-for-debt-consolidation/ Thu, 10 Feb 2022 11:32:42 +0000 https://sendika12.org/6-reasons-why-a-personal-loan-is-ideal-for-debt-consolidation/ Image source: Getty Images The right personal loan could make your debt much cheaper and easier to pay off. Key points Personal loans allow you to borrow money for almost any reason. They often come with affordable interest rates. Personal loans can be used to consolidate debts. This means that you take out a new […]]]>

Image source: Getty Images

The right personal loan could make your debt much cheaper and easier to pay off.


Key points

  • Personal loans allow you to borrow money for almost any reason.
  • They often come with affordable interest rates.

Personal loans can be used to consolidate debts. This means that you take out a new personal loan and use it to pay off several existing creditors. You can use a personal loan to pay off credit cards, medical debts, other personal loans, etc.

But why would you want to do that? Here are six main reasons why a personal loan can be the ideal tool to use to consolidate your debts.

1. You can use the loan proceeds for anything you want

Most personal loan providers offer great flexibility in how the borrowed money is used. They may not even ask you what you will do with the loan proceeds.

Therefore, after borrowing, you are free to pay off just about any debt you want, from credit cards to medical debt to other personal loans.

2. Personal loans often offer competitive interest rates

The interest rate on a personal loan is often much lower than the rates for other common types of debt, such as credit card debt.

If you can lower the interest rate on your borrowed funds, repayment should be less expensive over time because you won’t have to give the lender so much money to have the privilege of accessing credit.

3. Many personal loans allow you to borrow a large sum

It is often possible to borrow a large sum of money when taking out a personal loan – sometimes as much as $50,000 or $100,000, depending on your income and other financial qualifications.

Since you can borrow a lot, you should hopefully be able to use your personal loan proceeds to pay off most or all of your outstanding debt. This will simplify the debt consolidation process since you won’t have to choose which debts to pay off with your consolidation loan, and you won’t end up with multiple creditors when you’ve completed the process.

4. You can lock in your interest rate with a personal loan

Many lenders offer you the option of choosing a fixed rate personal loan. If you refinance variable rate debt into a fixed rate loan, you won’t have to worry about rising rates and your debt going up.

You’ll have complete certainty about what you’ll be paying each month because your monthly payments and borrowing costs will never change.

5. Personal loans come with fixed repayment schedules

When you apply for a personal loan, you decide on a fixed repayment schedule for your personal loan, such as three years or five years. This time frame will not change once you sign your loan agreement and commit to borrowing.

As a result, you’ll know exactly when you’ll complete your debt repayment plan and be free of any debts you’ve consolidated.

6. You don’t usually put your assets at risk when you take out a personal loan

Typically, you will use an unsecured personal loan when consolidating debt. This means you don’t need to use any assets as collateral, unlike a home equity loan, where your home secures the loan.

Each of these benefits distinguishes personal loans from other debt consolidation options, such as home equity loans or balance transfers. If you’re hoping to consolidate your debt this year, a personal loan should be considered when deciding what new credit to take out to pay off your existing lenders.

The Ascent’s Best Personal Loans for 2022

The Ascent team has scoured the market to bring you a shortlist of the best personal loan providers. Whether you’re looking to pay off debt faster by lowering your interest rate or need extra money to make a big purchase, these top picks can help you reach your financial goals. Click here for the full rundown of The Ascent’s top picks.

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Using a Home Equity Loan for Debt Consolidation – Forbes Advisor https://sendika12.org/using-a-home-equity-loan-for-debt-consolidation-forbes-advisor/ Fri, 04 Feb 2022 17:43:13 +0000 https://sendika12.org/using-a-home-equity-loan-for-debt-consolidation-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. As a homeowner, you have additional financial responsibility, including mortgage, property taxes, home maintenance, and other expenses. You may also be carrying high-interest debt, such as credit cards. Fortunately, there are ways […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

As a homeowner, you have additional financial responsibility, including mortgage, property taxes, home maintenance, and other expenses. You may also be carrying high-interest debt, such as credit cards. Fortunately, there are ways to pay off your debt faster with help from your home.

A home equity loan allows you to use the equity in your home to consolidate your debts at a lower interest rate. However, this strategy has some drawbacks. Here’s what you need to know.

How a Home Equity Loan Consolidates Debt

Home equity is the difference between what you owe on your home (the mortgage balance) and its current value, usually based on the current appraised value. You cannot get a home equity loan unless you have some equity in your home; lenders usually look for at least 15% equity in order to lend them to you.

The more you pay to your lender, the more your capital increases. Another way equity increases is when the overall real estate market is healthy and home values ​​(or sale prices) in your area increase. A home equity loan allows you to borrow against that equity in the form of a lump sum installment loan.

This money can be used for a variety of purposes, such as renovating your home, paying for college, covering emergency expenses, and consolidating debt.

Home equity loans are a good debt consolidation tool because the interest rates are quite low compared to other forms of debt. Once your home equity loan is closed and you receive your funds, you can use the money to pay off your existing debt and then make a one-time payment to your lender until the loan is paid off, usually on a period of five to 20 years.

Advantages and Disadvantages of Using a Home Equity Loan to Consolidate Debt

When deciding whether or not to use a home equity loan to consolidate your debt, you should first consider a few important pros and cons.

Advantages

  • Lower interest rates: If you’re looking for ways to borrow money or consolidate debt, a home equity loan offers some of the lowest rates available. Currently, their annual percentage rate (APR) is around 4% to 6%. Personal loans and credit cards, on the other hand, often have double-digit interest rates.
  • Easy access to financing: Although there are certain income and debt balance requirements that you must meet, a home equity loan is generally easier to obtain than other types of debt. This is partly because your property serves as collateral, so there is less risk to the lender than an unsecured loan, which has no assets used as collateral, as they can repossess the collateral. in the event of a defect. Therefore, the lender is more willing to offer a home equity loan.
  • Tax deduction potential: You may be able to write off some of the interest you pay on your home loan. However, you can only take advantage of this deduction if you use the money to pay for home improvements. If home renovations are part of your larger financial plan, it may be worth relying on a home equity loan rather than a credit card, especially if you’re also trying to pay off your high-interest debt.

The inconvenients

  • Risk of losing your home: Since your property serves as collateral, you could lose your home in the event of late payment or default. As long as you’re able to track your payments, this shouldn’t be a problem.
  • Your house could fall under water: Since a home equity loan relies on the value you have accumulated in your home, there is a chance that you will end up under water on your mortgage (you owe more than the value of the property) if the value of the house drops. This is not a problem if you plan to stay in your home for several years, or long enough for the property to recover in value. But if you were hoping to move soon, you might suffer a loss.
  • There could be more fees: You may need to pay to have your home appraised by a professional to determine the value to get a home equity loan. Usually it costs a a few hundred dollars but could be higher depending on where you live and the type of property. You may also have to pay closing costs on the loan.

Is a home equity loan the best way to consolidate debt?

If you’re in a strong financial position, leveraging the equity in your home to get rid of high-interest debt faster is a smart move. However, if you don’t plan to stay in your home for long or are unsure whether your income will be stable throughout the repayment period, you may be better off choosing another method of debt consolidation.

Other Debt Consolidation Options

There are several ways to consolidate your high interest debt without risking your property.

1. 0% Balance Transfer Cards

To attract new business or issue cards to existing customers, credit card companies often offer a 0% initial APR to customers who roll over the balance on their existing credit card, usually from a competitor.

The introductory period typically lasts 12-18 months, during which this balance incurs no interest charges. This means that your payments go 100% towards paying off the principal balance, allowing you to get rid of this debt faster. Usually there is a 2% to 5% balance transfer fee up front. The key is to pay off your balance before the end of the introductory period or you’ll start racking up interest charges again.

2. Take out a personal loan

Personal loans, which are loans you can use to pay almost anything up to a predetermined amount, can also help consolidate your debt. Rates are generally lower than credit card rates, at least for borrowers with good credit.

There are two types of personal loans: secured and unsecured. Secured loans are secured by collateral, such as a bank account or vehicle. This helps reduce the lender’s risk, which results in a lower interest rate. Unsecured loans allow you to borrow money without providing collateral; the trade-off is that the rate may be a bit higher and you may be subject to stricter requirements.

3. Develop a debt management plan

If you’re having trouble making payments on unsecured debt, such as credit cards or personal loans, you might consider working with a nonprofit credit counseling agency to develop a debt management plan. debt (DMP). An accredited advisor will take care of your payments and negotiate with lenders on your behalf to reduce the cost of your debt. You will then make your reduced payments directly to the agency and receive regular progress reports. Registration for a DMP may be chargeable.

Find the best home equity lenders of 2022

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What to know about flexible loans and how they work https://sendika12.org/what-to-know-about-flexible-loans-and-how-they-work/ Wed, 02 Feb 2022 19:21:11 +0000 https://sendika12.org/what-to-know-about-flexible-loans-and-how-they-work/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Flexible loans are convenient, but can come […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Flexible loans are convenient, but can come with high costs. (Shutterstock)

If you’ve ever needed instant access to cash to cover an immediate financial emergency, you may have wondered what type of loan could help you. Flexible loans are easy to get, even if you have bad credit. Unfortunately, they usually come with very high interest charges, regardless of the length or amount of the loan.

Let’s take an in-depth look at how flexible loans work, their pros and cons, and how they compare to quick cash alternatives like a personal loan from an online lender.

What is a flexible loan?

A flexible loan is not like a normal personal loan – in fact, it is not a loan at all. Flexible loans are unsecured personal lines of credit that work much like a credit card. But they tend to be more expensive than credit cards.

Flexible loans offer two key benefits: if your credit is weak or limited, you can usually get a flexible loan and you can receive funds immediately. You might consider a flexible loan when you need cover an urgent expense and are unable to obtain a Personal loan.

Flexible loans usually come from cash advance establishments and online lenders. Some banks and credit unions may offer flexible loans, but keep in mind that they may refer to a personal loan as a “flexible loan”. Personal loans are not lines of credit.

How do flexible loans work?

When you take out a flexible loan, the lender gives you access to a line of credit. You use this credit as needed and make a payment each month until you pay off the balance. You can choose to pay only the minimum, pay extra, or pay in full each month. Flexible lenders charge interest only on the amount you borrow and any balance you carry from month to month.

Although lenders do not charge additional fees – such as loan origination fees – the annual percentage rates for flexible loans tend to be very high, making them a more expensive option compared to other short-term loans.

What can you use a flexible loan for?

Like personal loans, flexible loans can be used for any purpose. But many borrowers use smaller flexible loans to bridge the gap if they have big monthly bills, unexpected car repairs, or medical bills due between paychecks.

Due to their very high APRs, flexible loans should really only be an option when you can’t cover an emergency cost in a cheaper way.

How much can you borrow with a flexible loan?

All loan amounts and terms will be unique to the lender you choose. Typically, however, flexible loans can cost as little as $100 up to several thousand dollars.

Similar to credit cards and personal loans, borrower approval will depend on a number of factors. Some lenders may require proof of citizenship, employment, bank account, and that you are 18 or older.

How much do flexible loans cost?

Flexible loans typically come with very high interest rates and fees that can reach APRs of 200% or more. In contrast, credit card and personal loan APRs are typically only in the double digits, even for borrowers with poor credit. Since the APR encompasses both the interest rate and the fees associated with the loan, it is a better indicator of the true cost of a credit product.

The overall costs of flexible loans depend on the amount you borrow, the interest rate, and how long it takes you to pay it back. As with any type of revolving credit, if you only make the minimum payment each month, repayment of the loan may take longer.

Before taking out a flexible loan, be sure to check personal loan rates. Some lenders offer loans to people with less than perfect credit, and online lenders can often provide next business day financing.

Flexible loans vs credit cards

Although both are revolving lines of credit, credit cards have some advantages over flexible loans. A credit card can have a higher maximum credit amount than a flexible loan. And while credit card interest rates are generally higher than personal loan interest rates, they’re still significantly lower than typical flexible loan APRs. But it can be difficult to qualify for a credit card if you have little or no credit history.

Flexible Loans vs Payday Loans

Payday loans are short-term, high-interest loans that must be repaid on the borrower’s next payday. APR for payday loans can be 390% or more, according to the Consumer Financial Protection Bureau. This is significantly higher than typical flexible loan APRs. For payday and flexible loans, if you pay late, the lender will assess fees which can be high.

Advantages and disadvantages of flexible loans

All financial products have advantages and disadvantages. It is important to weigh the pros and cons before committing to a flexible loan.

Advantages

  • It’s usually easy to qualify for a flexible loan, and most borrowers can get one even with poor or limited credit history.
  • Loan approval is usually fast and the release of funds is just as fast.
  • Unlike a traditional loan, you can continue to access your line of credit after the first withdrawal. This allows you to access more funds in an emergency.

The inconvenients

  • High APRs make flex loans a very expensive form of credit.
  • If you only pay the minimum each month, interest and fees can pile up, pushing you into expensive and hard-to-pay debt.
  • Access to an unsecured open line of credit could tempt you to overspend.

Alternatives to flexible loans

Flexible loans aren’t the only option if you need money fast and your credit is weak. Before committing to a high-cost credit product, consider these alternatives:

  • Personal loans for bad credit — Personal loans for bad credit are fixed rate loans for borrowers with lower credit ratings. Although a bad credit score may earn you a higher interest rate than a good credit score, a personal loan with bad credit usually has a much lower APR than a credit card or credit card. a flexible loan.
  • Auto Repair Loans — These loans are used to cover car repairs and are spread in a lump sum. No collateral is required for these unsecured loans. Borrowers who need to cover repair costs while waiting for insurance settlements might choose this over a flexible loan.
  • Credit-generating loans — Credit-building loans are designed to help borrowers with poor or no credit history build credit responsibly. Instead of getting the money up front, however, you get the loan back after making a certain number of payments. Credit-generating loans often repay at the end of the loan term, so they may not be a good option if you need cash immediately to cover an unexpected expense.
  • Short-term loan – Short-term loans require little or no collateral and have shorter repayment terms. Although they require a credit check, lower annual interest rates and faster repayment terms offer borrowers a responsible way to obtain funds and get out of debt quickly.
  • Peer-to-peer lending — Online peer-to-peer lending is a non-traditional way to borrow money directly from independent lenders or investors. Although lending sites set different rates and terms, some borrowers may qualify for competitive rates and low fees.
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Why the stock market hates the idea of ​​higher interest rates https://sendika12.org/why-the-stock-market-hates-the-idea-of-%e2%80%8b%e2%80%8bhigher-interest-rates/ Thu, 27 Jan 2022 20:02:39 +0000 https://sendika12.org/why-the-stock-market-hates-the-idea-of-%e2%80%8b%e2%80%8bhigher-interest-rates/ Traders work on the floor of the New York Stock Exchange at the opening bell on January 25, 2022. TIMOTHY A. CLARY | AFP | Getty Images The specter of rising interest rates frightens the stock market. The Federal Reserve, the US central bank, is expected to raise its benchmark rate several times this year […]]]>

Traders work on the floor of the New York Stock Exchange at the opening bell on January 25, 2022.

TIMOTHY A. CLARY | AFP | Getty Images

The specter of rising interest rates frightens the stock market.

The Federal Reserve, the US central bank, is expected to raise its benchmark rate several times this year to rein in stubbornly high inflation. Fed Chairman Jerome Powell confirmed that likelihood on Wednesday.

The move would raise borrowing costs to nearly zero – where they have been since the start of the Covid pandemic – for businesses and consumers.

Forecasts caused stocks to fall in January.

The S&P 500 index is down about 9% for the year. At one point this week, the basket of US stocks fell below 10% – the first time this has happened since the initial pandemic crisis in March 2020. The index closed down 0 .2% on Wednesday after Powell’s remarks, wiping out earlier gains.

cooler economy

Why does the stock market care?

Broadly, the reasons seem to be twofold: a slowdown in the US economy and the prospect that other investments like bonds will become more attractive relative to stocks.

When the Fed raises its benchmark interest rate, banks and lenders also tend to raise borrowing costs. Mortgages, credit cards and other debt become more expensive, reducing consumer spending and demand. Companies are also paying more to finance their operations.

Learn more about personal finance:
What the Fed’s plan to raise interest rates means for you
Why new parents may qualify for another $1,400 stimulus check
3 reasons to keep your will or estate plan up to date

Overall, this dampens the outlook for corporate earnings and reduces investor enthusiasm for buying their stocks.

“Tighter monetary policy will put pressure on economic activity,” according to Blair duQuesnay, certified financial planner and investment adviser at New Orleans-based Ritholtz Wealth Management. “And that’s by design.”

Too far, too fast?

The “purpose” of the Fed is to cool inflation. Consumer prices jumped 7% in December from a year earlier, the fastest pace since 1982.

But the stock market is not just reacting to a likely rate hike; equity swings have as much to do with uncertainty about the speed of the Fed’s acceleration.

“What the market doesn’t like are rapid changes in the currency landscape,” said David Stubbs, global head of multi-asset thematic strategy at JP Morgan Private Bank.

When inflation began to pick up in early 2021, Fed officials signaled it was likely temporary, the short-term result of a hyperactive economy emerging from pandemic hibernation.

Now their tone has changed as inflation has held well above the Fed’s long-term 2% target. Much of this appears to be because consumer demand for physical goods is outstripping supply, as Covid continues to disrupt manufacturers.

“Since the December meeting, I would say the inflation picture is about the same but probably slightly worse,” Powell said Wednesday. “I think to the extent that the situation deteriorates further, our policy will have to address that,” he added.

Investors fear an aggressive Fed response could dampen the economy – although Powell sought reassurance that the policy response will be “agile”.

Anxiety over the outcome is the main reason for market jitters, according to CFP Lee Baker, founder of Apex Financial Services in Atlanta.

“What are the trickle-down effects if the Fed raises rates too far, too fast? If that slows the economy, what does that do for [company] earnings? You kind of follow that domino,” Baker said. “If you’re talking about earnings, you’re talking about stocks.”

(This discussion relates to a broad basket of US stocks. It’s not true that all companies necessarily suffer if rates rise. Some may do better – like a bank, for example, which charges more to lend.)

Stocks lose their luster

If rates rise, investors could see more value in bonds, certificates of deposit and other assets considered less risky than stocks.

Returns on these conservative assets have been relatively paltry since the 2008 financial crisis, which led to a prolonged period of rock bottom interest rates to stimulate the economy.

May be [stocks] should sell regardless.

Blair duQuesnay

CFP and Investment Advisor at Ritholtz Wealth Management

Investors looking for yield were essentially “forced” to invest in stocks, Baker said.

The value proposition may change, if bond yields and CD rates rise in tandem with the Fed’s benchmark rate.

Other factors

Although it seems to play the most important role, Fed policy isn’t the only thing unnerving investors.

On the one hand, there is the prospect of war between Ukraine and Russia. These geopolitical tensions fuel further uncertainty – for example, how might the energy sector be affected if fighting breaks out?

Selling stocks can be a good thing, regardless of what’s causing it, duQuesnay said. The Federal Reserve discusses higher interest rates because the economy and labor markets are strong; a decline in stock prices could also further tie high corporate valuations to reality, she said.

“If you strip out all the outside news and information on the stock market, it’s been up double digits for three straight years,” according to duQuesnay. “Maybe it should sell despite everything else.”

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