Author: Joe Olujic

Categories
business

Businesses Should Give Back To Their Community

Melvin-Brewing-Social-Responsibility (1)
Melvin-Brewing-Social-Responsibility (1)

Melvin Brewing has always been big on promoting social responsibility and giving back to their community. Understanding the needs of your community needs is the first step to beginning a philanthropic venture.

Philanthropy can come in many forms. Melvin Brewing participates in community service, scholarships, and supporting local non-profits. Since their inception, Melvin Brewing has committed to taking care of the people that not only work for them but also live in the surrounding areas.

Being philanthropic is a great way for your business to follow through with your company’s social responsibility goals. When a business has a good reputation, they will also begin to see better profits, better employee morale, and an overall sense of accomplishment.

Categories
finance

Wink Capital Explains Why You Need to Make a Plan to Deal With Holiday Credit Card Debt Now

Credit card debt is one of those things that can slowly creep up over time. This is especially true when you have the habit of paying off the minimum monthly amount. The outstanding debt eventually builds up due to the interest rates of your credit card balance. Here are some staggering facts about credit card debt:

  • 56% of people who have credit card debt have been carrying the balance for over a year.
  • One out of three card holders have debt in more than one card.
  • Millennials are more likely to have credit card debt.
  • Lower-income individuals have higher debt, while high-income individuals have long-term debt.

It seems like credit card debt is slowly turning into a fact of life. However, this should not be the status quo. According to Wink Capital, a well-known financial planning and debt assistance company, holiday credit card debt is considered one of the most overlooked types of liabilities.

Since many people frequently go on holidays, debt always seem to appear and go unpaid. In this post, we will further understand why holiday credit card debt should be dealt with immediately.

Wink Capital Explains Why You Need to Make a Plan to Deal With Holiday Credit Card Debt Now

Credit cards change interest rates over time.

Credit card companies do not have an interest rate that stays stagnant for the long-term. In fact, credit card interest rates can soar as high as 18% under their Annual Percentage. If you want to pay off your holiday credit card debt quickly, you need to chance upon lower interest rates and complete your payment before percentages soar.

Paying off credit card debt slowly does not improve credit scores.

If you’re thinking that paying off holiday credit card debt long-term will help financing companies consider your future plans to loan, think again. According to Wink Capital, this strategy may even harm your chances of getting a good credit score.

The only factors that matter when it comes to paying off credit card debt would be the following:

  • Paying off your debt on time: Every month, it is essential to pay your debt before the due date. Missing your payment time frequently hurts your credit score.
  • Percentage of use: Another factor would be how much of your credit limit you are using. Ideally, you would want to use 30% or below of your credit limit to ensure a good credit score.

Paying the minimum balance becomes a bad habit.

Lastly, one of the main reasons why it is recommended to pay off credit card debt right away is because of the habit it builds. Some people are stuck in debt because they refuse to pay the full balance, but would rather stretch it using the minimum amount.

Not only is this building up more debt through interest rates, it also becomes a habit that forms over time. Soon, you may find yourself using multiple credit cards to pay off debt until it becomes unmanageable.

Some of the tips to help you pay credit card debt more efficiently are:

  • Setting up reminders to pay on or before the due date
  • Putting aside a portion of your paycheck for paying off debt even before spending on other things
  • Seeking help from debt management companies to help you build a plan on paying holiday credit card debt

With these strategies, you can successfully stay on top of your credit card debt which will lead you to a more financially secure life

Categories
business Money

4 Reasons Why Your Business Needs Debt Collection

Pacific-Collection-Group

Regardless of how different their offering may be, companies that sell goods or services will usually have a few common denominators. Besides the typical day-to-day challenges with coordinating deliveries, finding vendors, staying in compliance and similar, debt collection is slowly becoming one of the most common concerns for profit-seeking entities. In the age where credit-based sales are amongst the most common types of buying arrangements, problems with unpaid invoices are more worrisome than ever.

Just consider the mind-boggling fact that an average household in the U.S. owes over $132,000. So, businesses that rely on timely payments from their consumers have never faced such a challenging market. Fortunately, there are ways to sidestep long delays and costly write-offs. Amongst the most successful solutions are companies that specialize in debt collection. These organizations handle outstanding payments on behalf of businesses whose customers have missed multiple deadlines. So, what would be some of the most important reasons why hiring a debt collector pays off?

Better Cash Flow

Obviously, the sole purpose of an agency that collects debt is to reduce the number of unpaid accounts. According to the Pacific Collection Group, which is a seasoned veteran of the industry, the primary benefit is the improved cash flow. When businesses sell products or services without receiving payment, their access to cash will plummet. Since they still need to cover overhead expenses, the lack of timely payments can cause a lot of problem with liquidity. Once debt collectors enter the equation, although it is not guaranteed, most companies see better operational cash flow as a byproduct of more consistent payments.

Higher Accounts Receivable Turnover and Lower Write-Offs

When someone’s accounts receivable turnover is extremely low, it means that they seldom collect outstanding accounts. In other words, higher ratio translates to better collections. So, why does this particular figure matter? Because it directly impacts the percentage of account write-offs. Companies that do not collect a lot of their receivables are more prone to eliminating existing debt. For instance, if someone’s turnover for long-term debt is under one, their historical data showcases that they are most likely never going to collect money owed on long-term accounts. One of the easiest ways to improve the receivable turnover, which should reduce the frequency of write-offs, is to hire a debt collector.

More Reliable Customers

Pacific Collection Group further states that many organizations can acquire reliable customers by simply showcasing their association with debt collectors. The reason why is the fact that delinquent buyers are much less likely to purchase from brands who use these agencies. This is because debt collectors are known for their persistence and resourcefulness. Not to mention that they can use a ton of versatile resources to retrieve the funds.

Impacting Credit Scores

One of the most potent tools that debt collectors utilize is buyers’ credit reports. By placing a collection on someone’s spending history, these agencies are able to significantly drop people’s credit scores. Doing so results in higher interest rates, more denials, and an abundance of long-term issues. After all, seeing a collection on a credit report is the equivalent of reading “untrustworthy.” Unfortunately, businesses alone cannot use credit reporting against delinquent consumers. To do so, they must turn to licensed companies that are formally recognized by all credit bureaus.

Even though the list of benefits continues, the aforementioned four are amongst the most important ones. Not to mention that the vast majority of debt collectors are quite affordable.

Categories
finance

Tuck Associates Shares The States With the Highest Amount of Credit Card Debt

Many people in this country hold a shocking amount of credit card debt. Sadly, according to The Balance, as of December of 2018, the average credit card interest rates are around 17 percent. If you have bad credit, your average interest rate will be just under 25 percent. At interest rates that high, people are more likely treading water making minimum payments that barely put a dent in the principal each month.

When people are spending so much money servicing the interest on their credit cards, they are unable to save money for rainy days, college for their children or their retirements. Their standard of living is lowered, and they may be unable to continue to pay their debts over time. This is especially relevant in now when a recession is looming. According to the Wharton School, during the last recession, about 20 percent of the workforce lost their jobs. People who are out of work or who are underemployed risk defaulting on their credit card loans and then risk lawsuits and wage garnishments.

Tuck Associates, a firm that specializes in helping consumers and small business owners struggling with heavy debt, finds some interesting trends in where credit card debt is the highest.

Alaska

According to The Balance, Alaskans carry the most credit card debt, on average, when compared to consumers in other states. The average credit card balance in Alaska is $ 13,048. In order to pay off this debt in three years, assuming the 17-percent average U.S. credit card interest rate, Alaskan consumers would need to make a payment of $254 monthly and would end up paying $3,748 in interest charges. That averages around $1,200 a year, or $120 a month in interest alone.

The Other Highest Credit Card-Indebted States

Rounding out the top five states with high credit card indebtedness are Wyoming, Utah, California, and Montana. Montanans average just under $10,000 in credit card debt.

Other Troubling State Figures

Motley Fool’s study of credit card debt per state from 2017 unearthed some other very troubling figures. They found that Texas, Georgia and a few other states that ranked high on their list of states with excessive credit card debt also were states where the residents had low credit card scores. Not too surprisingly, since lower credit card scores coincide with higher interest rates, the state of Texas, in particular, has the highest average late-payment rate in the country.

Imagine if you are trying to pay off the average Texan’s $7,692 in credit card debt at around 25 percent interest. It would take a $400 a month payment and would entail paying $4,174 in interest to pay off the debt in three years. Such a large payment would likely be in lieu of the family being able to make a car payment or some other larger necessity.

High Interest is a Huge Culprit

As you can see, the ridiculously high-interest rates that these credit cards carry are a huge impediment towards the payoff.

How to Lower Interest Rates

Of course, if you have a stellar payment record, you can try to get the credit card company to lower your interest rate. In some cases, they might do so.

If you can pay off the entire principal in a year to a year and a half, you could apply for a zero-interest, balance transfer card and just attack the principle until it is paid off.

Also, you can get a personal loan in the form of a debt consolidation loan. That would allow you to have a lower interest rate and a fixed payment schedule that would provide a payoff date.

If you are struggling to make high-interest credit card payments, you are not alone. Call Tuck Associates today. We have solutions for consumers struggling under credit card debt

Categories
finance

Alexis Assadi Review

Alexis Assadi
Alexis Assadi

My Review of Financier Alexis Assadi

I have been following Alexis Assadi’s online career since 2014 after coming across his blog. Back then, he published frequently about investing, building passive income and working towards financial independence. I was interested, but skeptical of a 20-something year old who was writing about money, savings and the like. His young age rendered him a bit too inexperienced for my taste, but I found his content interesting nonetheless and subscribed to his free emails. What drew me in, I think, was that Alexis Assadi seemed relatable. He had a political science degree, not a finance or commerce degree, and was self-taught. I felt that I could do the same, especially with all of the content out there on the internet. You don’t need to be a Wall Street trader to have access to information anymore.

During the next few years Alexis Assadi wrote often about investments like real estate investment trusts, mortgage investment corporations and the like. I had heard of them before – companies that invested in real estate or mortgages and paid regular dividends – but I thought he did a fairly good job of explaining them. One of the concepts that I remember learning from his blog was “funds from operations” (FFO), which is a metric used to help assess the performance of a real estate investment trust. On occasion I would email him and usually received replies back, which I thought was nice considering he got nothing out of it. He didn’t give me advice, but he did help me understand some of the facts.

By 2016 Alexis Assadi began selling online courses. I bought one of them for less than $10 and it was money well spent. I wouldn’t say that it was earth-shattering information, but it taught me about income producing assets, the benefits of owning a company and why some types of small businesses are more advantageous than others. The value of the content was easily worth the price.

I noticed that he began blogging less the following year. Alexis Assadi announced the launch of a business called Pacific Income. This is a lending company. About ten months later, he started a podcast called “Income Investing with Alexis Assadi.” The episodes were about 20 minutes long with a similar format each time: introduce the topic, answer a question from the listener, examine a topic and close with a preview of the following week’s show. The podcast lasted for less than a year, however.

As far as I can tell, Alexis Assadi virtually stopped blogging/podcasting/YouTubing about investing and money altogether by 2018. I read in an interview somewhere that he had lost interest in the subject and wanted to focus on his main business, which was providing financing. To be honest, I was disappointed and surprised that he was no longer interested. But I respect his decision all the same. People are allowed to change and do what they want with their lives.

Since then I’ve noticed that most of Alexis Assadi’s online content has been about politics and the environment. He believes that global warming and environmental degradation are the main human obstacles of the 21st century. His political persuasion is clearly towards the liberal side of the spectrum. For example, he wrote in a blog post on Medium.com that he supported a 2020 US Presidential ticket of Kamala Harris for president and Elizabeth Warren for VP. But I find that he’s quite reasonable. He’s not some leftist anarchist, the type of which so often occupies the internet today. He also started a photo blog, called Alexis Assadi’s Pictures, which I follow on occasion.

So, what’s the final review of Alexis Assadi? Is he a financial wizard who can help any person on earth get rich? No, I don’t think so – and he never claimed to be such. His blog posts were often lengthy analyses, rather than tips and tricks to make money. For example, he cautioned against cryptocurrencies (which have enticed many people seeking to make a quick buck) shortly after they gained media prominence, instead of capitalizing on the frenzy. I think Alexis Assadi is a guy who followed a path as far as he wanted to, and then later changed directions in his late 20s. He was passionate about blogging about finance until he wasn’t anymore. People switch their careers all the time.

Here are the main lessons I learned from him during his years of producing financial content: First, there are many investments in Canada and the USA that pay monthly dividends. Second, it’s important to be thorough and do your research before making an investment. That means learning to read the fine-print. Third, owning a business can be a way to create wealth. Fourth, if you want to be a businessperson or investor, then you should treat it professionally and take it seriously. All of this is logical, but it was useful for me.

Categories
Money

What are Hard Money Loans

Loans come in many forms with their own stipulations and strings attached to it. However, there are a special type of loan that is considered to be a “last resort” by many. These are referred to as hard money loans.

What are Hard Money Loans?

Hard money loans are a form of loan that is commonly used in transactions in real estate. The terms of a hard money loan are what makes a hard money loan different than your standard loan.

Here, the value of the property is used as collateral as opposed to the usual credit rating of the borrower in question. Banks do not make hard money loans, which means that this money is distributed by private companies or individuals. This is why a great deal of risk is associated with hard money loans.

How Does It Work?

Hard money loans are commonly used by people who want to renovate property and then resell the real estate, typically within a year. Hard money loans are typically be more expensive, but this cost is often offset by the fact that borrowers tend to pay it back relatively quickly. On average, these loans last no more than three years.

Advantages of Hard Money Loans

Hard money loans come with a few convenient advantages for the borrower. Arguably the biggest advantage at the borrower’s disposal is that the approval process is very swift. The private investors who loan people money are bale to come to decisions very faster because credit checks are not a part of the approval criteria.

Usually, hard money loan lenders are not as concerned about getting their money back as opposed to other financial institutions because of the high potential in what they may get by reselling the property should the borrower default on repayment.

In addition, hard money lenders evaluate every loan dispensed by case. This means that borrowers will be able to opt for more opportunities to pay the loan back during the time frame afforded to them. Adjustments are often negotiated without complaint from either side.

Disadvantages of Hard Money Loans

The biggest red flag towards hard money loans are the very high interest rates. Unfortunately, these interest rates can prove to be very high, especially when compared to other loans such as subprime loans. Also, since the property is the only means of protection, loans have a much lower loan-to-value ratio.

You must also consider that lenders of hard money may not provide adequate financing for a residence that is already occupied due to specific regulatory edicts.

Hard money loans have been used as a way to get quick and convenient financing. These loans could come in handy for those who do not have the best credit score. With the swiftness of which the loan can be dispensed, it could be a convenient method to avert an emergency.

However, you should consider all of the benefits and risks that come with hard money loans. They come from private parties, and you must be responsible in effectively evaluating the risk so you do not put yourself in a bigger predicament

Categories
finance

Punch Associates Discuss How to Escape the Debt Dilemma

The Kiplinger Report stated that there is now over $4.05 trillion in American consumer debt. About 25 percent of all Americans admit their debt is larger than the money they have saved for their retirement.

The statistic that really made the mainstream media begin to report the truth about the staggering level of debt in the American economy is the one about auto loans. According to Fortune Magazine, as of February 2019, a record 7 million U.S. citizens have fallen 90 days or more behind in their auto loan payments. This means that many are in danger of repossession. Most people need their cars in the U.S., so this is a sign of dire economic times ahead for many citizens.

At Punch Associates, a firm that has solutions for consumers and small business owners in heavy debt, we are often asked how people can escape the debt dilemma. The answer factors in each type of debt. The following addresses the issues of consumers with heavy debt they are struggling to pay off.

Create a Budget

Not enough people have a monthly budget. You need to take into account all of your debts, how much is owed on each and the interest rates they carry. You also need to take stock of all of your bills and expenses, both monthly and long-term bills, like auto registration and auto maintenance expenses.

The goal is to see how much you can devote to paying down your debt each month. It is best to pay off the credit card with the highest interest rate first before you attack the next debt with the next-highest interest rate.

Reduce Extraneous Expenses

Now is not the time to buy a daily Starbucks, and the television subscriptions are really unnecessary. It is time to pare down and get back on your feet.

How to Handle Specific Debts

Credit cards: According to The Medium, credit cards often carry double-digit interest rates and need to be paid down first. If you can get your issuer to lower the interest rate, it would give you more breathing room and allow you to make greater payments to reduce the principal.

Student loan debt: The solution is different if you have double-digit student loans from private providers, or if you have government-insured loans at around 6 or 7 percent. If you have the former, you will need to consider a personal debt consolidation loan in order to get that interest rate down to a level that allows you to attack the principal.

Those with government-insured student loans may still need to apply for forbearance or income-driven assistance with payments. There are many more options to reduce your government student loan payment today. Many are income-driven options.

Medical debt: Nerdwallet suggests that you need to work with the medical facility’s billing department as soon as you receive your bill. Don’t wait until they have sent the bill to collections. They usually have zero- or low-interest options for you, like extending you a payment plan, reducing your bill or allowing you to use a medical credit card with zero-percent interest for up to two years. Ensure that your insurance covered their fair share and that the medical facility did not over-bill you.

Auto loans: Nerdwallet recommends that if you only are one payment behind with your auto loan and have a good reason, your lender will likely defer the payment until the end of the loan. They might waive the interest charge or penalty as well. If you can no longer afford the payment, you will need to either trade the car in for something less expensive or consolidate your other debts along with your auto loan, if other debts carry high-interest rates.

Loan consolidation: If you just can’t make the payments any more by limiting expenses, it is time to consider if loan consolidation with a personal loan for three to seven years at a lower interest rate will help your situation. That will help you get out from under high-interest rate fees, so you can pay down the principal in a timely manner.

Bankruptcy: Some people may need to consider bankruptcy, but it will affect your credit for seven to ten years, and it costs money to initiate.

At Punch Associates, we have solutions for consumers struggling under heavy debt loads. Call us today

Categories
News

Keel Associates Discusses How to Deal With Small Business Debt

Every business at some point or another deals with debt. Businesses may go into debt if they need to get ahead financially or if they are experiencing troubled times. Although acquiring loans can be beneficial to help save your business, you must end up paying them back at some point or another. This is where many businesses struggle to accomplish this. They are more than likely struggling financially if they need to take out a loan. Fortunately, Keel Associates has some tips for you that will help you save your business if you are struggling with immense debt. These tips are designed for business owners who do not want to throw in the towel and keep their company afloat.

Pay Out of Your Own Pocket

One of the most immediate things that you can do to get your business debts down is to pay out of your own pocket. While many business owners may be against this idea, keeping your business afloat is a top priority. However, there are other ways that you can take immediate action to pay back these debts without ruining your business or your life.

Cutting Down Costs

One immediate thing that you can do is to cut out costs in your business. You need to take some time to analyze what assets can be kept and what should be let go. This will help you allocate the money that you need in order to keep your operation running.

Consider Expansion Without Having to Pay for it

Many businesses do not consider that they have the power to change at any time. This means that you have options that can help you improve your income for your business by simply switching up your business model. Contacting customers to upsell them, working extra, and selling additional services that don’t cost anything can help you bring in more money. This is an incredibly creative option for business owners that may open more doors of opportunity down the line.

Consider Bankruptcy

Unfortunately, there may come a time when you have to consider this fatal option. A chapter eleven bankruptcy is a path that you can take that will end up saving your company from total destruction. This is especially true if the company’s debts are only short-term problems and can be fixed later. You will need to seek legal help in order to achieve this. Fortunately, Keel Associates provides financial insight for people who are in dire straits.

Considering Your Options

It is no secret that businesses can end up failing at any time. Tragedy can strike whenever you least expect it and cause your business to end up losing money. Fortunately, there are options available to help your business continue forward in ways that you could never imagine. However, it should be noted that some of these tips will require an incredible amount of dedication if you want to make them work. It is entirely possible to achieve your goals through the power of hard work and persistence if you wish to save your company from financial turmoil

Categories
finance

Ballast Associates Discusses The Benefits and Risks of Debt Consolidation Loans

Millions of Americans are struggling with some form of debt and are looking for a way out. There are a wide variety of scams that take advantage of these vulnerable people and promise different avenues that are not legitimate. But one avenue that is legitimate is debt consolidation. A consolidation loan is a safe and legal way for a disciplined individual to take an important step in paying off their debts.

Benefit: simplicity

Many families suffering from debt are facing the problem from a number of different angles. They may have house payments, car payments, and debts from various credit cards. Having multiple sources of debt increases the chances that one of these sources has a massive interest rate that is contributing significantly to the family’s problem. Individuals may also run late payments because they cannot adequately manage all of the debt sources that they have. Consolidation simplifies this process considerably. An individual only has to worry about having one single payment and one single set of terms.

Benefit: better interest rate

Debt consolidation can often give an individual a better interest rate. This interest rate may be from an institution like a credit union which traditionally gives better interest rates than lenders such as payday loan companies. Many of the debts that individuals have are on the poor interest rate or amortization schedules. They may have rates that fluctuate depending on the whims of the wider world. Consolidation reduces all of those rates by allowing an individual to take a large sum of money and pay off all their debts with the one consolidation loan remaining. The consolidation loan may be at a much lower rate than any of their previous debt obligations. As a result, an individual may have significantly more money to pay down the principal on the loan.

Risks: more debt

The act of debt consolidation involves taking on an extra loan. It also involves individuals potentially holding thousands of dollars at one time. For some individuals, holding those sums of money can be dangerous. A debt consolidation loan could be used to purchase other things if an individual does not have the discipline to use that money to pay off and consolidate their current debts. Individuals have to work on their spending habits and their philosophy towards spending if they ever hope to make use of a debt consolidation loan.

Risks: does not deal with the principal

Debt consolidation is also problematic because it does not deal with the principal. As the experts at Ballast Associates note, consolidation primarily deals with the problem associated with interest rates. But interest rates may not be the most important problem an individual faces if they are swamped with thousands of dollars of debt in principal. People may still have to take on extra jobs or radically alter their spending habits in order to deal with their debt problems.

Conclusion

Debt consolidation only works for some individuals who are swamped by debt. These individuals should seek out a trained adviser like those at Ballast Associates. Advisers will help an individual understand their debt scenario and find the consolidation technique that will work best for them. Having a partner, as well as a consolidation plan, will both ensure that an individual is prepared for the debt relief process

Categories
finance

Second City Advisors Discusses Why Your Credit Score Goes Down After Paying Off a Loan or Credit Card Debt

Many people cannot wait to pay off their loans. They see it as a chance to finally catch up on bills and other personal projects that they have been wanting to put their money towards. However, paying off a loan can end up negatively impacting your credit score. Though this fact may seem bizarre to some people, there is some information that all individuals who pay loans should know about. The key thing to remember here is instability. Fortunately, Second City Advisors has some more information about how this process works and some tips that you should follow to keep your credit score up.

Why Does This Negatively Impact My Credit Score?

As mentioned previously, paying off a loan can end up creating instability. Credit companies like to know that you are a proper candidate before you are allowed to take out a loan or new credit card. Unfortunately, your credit history will cease once you pay off a loan. This means that there will be a limited credit history to take note of whenever credit companies look at your payment history. Having some kind of credit that you are paying towards is a crucial way to build up your credit score and improve your chances of receiving loans in the future.

Leaving The Credit Account Open

One of the most important things that you can do to maintain your credit is to keep your account open. Letting a bit of interest build up over time will keep you in good standing with your credit companies. They utilize complicated algorithms to help understand the consumer who has the loan. This simply looks good on your report and should be done more often. However, there are other things that you should consider when it comes to building credit before paying off the loan.

How to Improve Your Credit Score

Keeping your loan open and letting interest build for some time is a crucial component of improving your credit score. However, there are other things that you can do in order to improve your score in the short and long term. Opening other lines of credit is a great way to show credit card companies that you are financially responsible. Having a credit card and using it only for small expenses will help you build credit responsibly. However, be sure not to open more lines of credit that you can handle. This may end up negatively impacting your credit score and hinder your ability to get a loan or credit when you actually need it.

Understanding How Credit Works

Building credit is a great way to help you accomplish your goals in life. We require money to do just about anything in our modern society. Unfortunately, many Americans do not have the proper financial knowledge in order to maintain good lines of credit. We want you to use this guide to help you improve your credit score and receive some insight on how credit works. Second City Advisors is always here to offer advice whenever you need it the most and is ready to help you improve your financial situation