Categories
finance

Roseland Associates Share the Warning Signs of Mounting Debt

Roseland Associates Interest Rates
Roseland Associates Interest Rates

No one likes mentioning the dreaded “d” word. There is no clearer sign that you are struggling financially than being in debt. Whether it is owing money to someone else or the government, mounting debt that is left unpaid can have a drastic effect on one’s credit score. This is why it is imperative to understand the early signs of being in debt, to begin with. It is always easy to lose track of our spending on credit cards or other irresponsible financial habits until we see how much we owe. Here are some warning signs to be wary of.

Consistently Making Minimum Payments

Making the required minimum payments each month is not an inherently bad practice, especially if you are able to make these payments on time. However, no matter how much you owe on a particular debt, if you find yourself only making the required minimum payment, you will spend much more time paying off that debt and pay a larger total when all is said and done. This can be especially the case with larger debts such as student loans. Many people think that only making the minimum payment will make their lives easier, but this often is just a stalling tactic.

If you owe a large sum of debt, it would behoove you to pay as much as possible every month, because, with each minimum payment, you extend the loan’s shelf life as the interest continues to accumulate. Organize your finances and put yourself in a position where you can increase the sum of the monthly payments you are making. Expert advice and consultation can be sought through resources such as those offered by the debt consolidation experts at Roseland Associates. 

Consistently Making Large Monthly Payments

Of course, while you do not want to make the smallest payment possible per month for the sake of paying your debt off quicker, you also do not want to be too aggressive with your payments either. The general rule of thumb is that you should not make monthly payments that comprise 20% or more of your monthly income. If you find yourself paying more than this, you may not have enough income to cover other necessities such as utilities, food, housing, and transportation. It is absolutely critical that you pay down any balances at a rate where you still have enough to take care of yourself. This is even worse if 20% of your income is only the minimum payment for your debt.

Getting a Cash Advance

Getting a cash advance is perhaps the worst way to obtain a credit card. This is because the money is typically loaned to you at the worst terms possible, and the one-time charges tend to be very high. Unless you have a genuine emergency in which you need an advance quickly, avoid this at all costs. If you have taken a cash advance for the sake of paying down your debt, the repayment of the advance should be a priority because the advance has much more daunting interest rates. You can learn more about balancing interest rates and rates can be expect by contacting Roseland Associates. While they do not offer a cash advance, they deal with various forms of debt on a daily basis.

Your Debt Impacts Your Personal Life

If you find that your debt is impacting your friendships and relationships with others, this can also be a sign that you are carrying too much debt. When debt remains unpaid, it can result in a litany of complications that can impact your interpersonal relationships. This is especially the case if it can affect your means to provide for a family if you have one. If you have not created a budget that incorporates every possible charge, you fall behind fast and your debt will not leave you. 

Your Payments Get Declined

There is nothing more embarrassing than going to the register and needing to take out multiple cards because each card is declining. This is an easy tell-tale sign that you owe too much money. If you have a credit card that is either maxed out or near its limit, you are carrying too large a debt. Refrain from using credit cards for purchases until your existing balance has been paid off to manageable levels. If you believe that your debt is out of hand, then there is likely an issue that you have to address. Learn better financial habits and spend the money on your credit card responsibly. 

As you can see, paying off debt is a serious responsibility that will require financial diligence on your part so that it does not come back to haunt you. Be cognizant of these warning signs so that you can put yourself in the best possible position to pay your debt off in full.

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day trading

The Pitbull Trader Analyzes Some Common Day Trading Mistakes

Pitbull Trader Day Trading Mistakes
The Pitbull Trader Analyzes Common Day Trading Mistakes

Day trading is an exhausting yet rewarding career. It is a job where individuals often handle thousands or even millions of dollars daily. Many people who do not work this job have misconceptions about what exactly it entails. Such misconceptions make it difficult for new entrants into the field to get started. Here are some of the common mistakes that new day traders face and how to avoid them.


Inflexibility

Many amateur day traders have a certain amount of inflexibility about their ideas and goals. They have a handful of stocks or commodities that they believe are true winners. There is almost nothing that can cause them to deviate from these securities. In those cases, it is difficult for a day trader to continue making money over a significant period of time.

Instead, day traders need a flexible approach. They need to always be scanning the market and looking for different opportunities and warning signs. Once those warning signs occur and those opportunities pop up, they need to be able to leave their positions in certain securities and move on to others. Plans should be written and rewritten on a regular basis. If a plan fails completely for an extended period, individuals need to be able to quickly craft and adapt new plans.


Poor Planning

New day traders often have both an inflexible and an ill-conceived plan. They do not spend the amount of time necessary to craft the best possible day trading plan. A good day trading plan requires hours and days of practice and preparation. Individuals must have contingency plans for every potential movement of a stock or another type of security. They have to know what they will do after earnings reports, stock splits, and a certain group of news events. 

Many day traders use a computer program that will give guidance on these moves. They must update their charts and guidance as economic factors change. Many prospective day traders are overwhelmed by this level of effort. They may not have training in personal finance, accounting, or statistics. These individuals often want to move towards the highest profits as quickly as possible. Poor planning can be the recipe for margin calls and other developments that can end up tanking a day trader’s plans.

Greed

Day traders are often derailed by their greed. They work with massive money totals daily. In many instances, they buy and sell amounts that were the total of their previous yearly salaries. This situation often makes individuals excited and greedy. The Pitbull Trader knows that these new traders want to accumulate as much money as they can as quickly as possible. In pursuit of this goal, they sometimes take unnecessary risks or flout laws and regulations.

Day traders have to curb their greed before they even start with this profession. The risks from bad bets and poor trades are massive. Individuals can only make trades and decisions if they are well-researched and part of an overarching plan. They should plan out both the amount that they want to risk and the amounts that they would eventually be happy to make. Taking too much money off the table could ruin a bet or doom a person’s reputation as a day trader. Illegal actions can result in jail time and the loss of day trading privileges for years or even life.


Conclusion

The Pitbull Trader notes that day trading is a potentially lucrative business. Individuals have made millions of dollars and founded long-term careers off the practice many times before. These individuals have proven their research and discipline over a period of years. By avoiding the mistakes that most inexperienced day traders make, new day traders can ensure that they keep their profits and chances for success as high as possible.

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finance

How to Choose a Strategy for Saving According to Mountain Ridge Associates

Mountain Ridge Associates
Mountain Ridge Associates

Millions of Americans wish they were saving more money. They have a number of vacations and large purchases that they want to pay for but simply cannot afford. These individuals will only begin to save more money when they have a plan and a strategy for savings. Determining an effective strategy and implementing that strategy are essential for reaching a wide variety of savings goals.


Determine your budget

There are a number of different strategies for saving. Practically all of them depend on balancing the money coming into a household and the money going out. Individuals should determine how much money they have to pay in expenses and debt every year. They need to plan a budget and then plan how much money they should be able to save every month.

Then, they should determine how they want to save money and how quickly they want to save it. Different saving strategies involve taking money at different times and in different ways. Some families have a savings strategy where they request large amounts of withdrawals from their paycheck every month. Individuals then receive a considerable tax refund once they file their taxes that they can use to pay for large purchases or vacations. There are apps that force savings by taking out a certain amount of money per month or always sending change from purchases to a saving account. These tactics are used in addition to simple regular withdrawals. Companies like Mountain Ridge Associates can help individuals determine which of these approaches best fits their needs. 


Set your goals

Savings strategies also revolve around setting goals and having a plan to attain those goals. Many individuals find it hard to simply save because they are told to or are supposed to. These individuals need a reason to save and something to save towards. They can then think about this goal whenever they are foregoing something they want in order to save money. Individuals should be reasonable with their goals and should, with the help of a partner like Mountain Ridge Associates, set them in the short-term and the medium-term. Only setting long-term goals is detrimental to any savings plan. Individuals have to wait so long to obtain the fruits of their savings that they will often become discouraged and disillusioned before accomplishing their goals.


Keep expenses low

Any strategy for saving will be augmented if an individual has a considerable amount of money to save. In order to optimize a savings plan, individuals need to do as much as possible to reduce expenses and increase income. They should consider extra jobs and side hustles that bring in a modest amount of income. Individuals should also consider selling underwater assets or embracing repayment plans and laddering to efficiently pay off their debts. All of these efforts will add flexibility and a cushion to any sort of savings strategy. This flexibility makes it easier for a savings plan to survive any sort of financial crisis that a family may face.


Conclusion

People who have a plan for saving will have a much better chance of meeting savings goals. They will feel more financially secure and will be better positioned to handle life’s large purchases and expenses. In addition, they will have a basis for eventual retirement savings. A few hours of planning and research can mean the difference between success or failure for any saving strategy.

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business

5 Startup Platforms To Help Get Your Business Started

Chenoa Fund

If you’re a small startup that doesn’t have a big budget, then joining a combination of free and paid platforms can give your business the results it needs. This list includes some of the best-known platforms for small businesses. These big name platforms work with startups and help them grow their businesses.

Google My Business

This is a great platform for small businesses that depend on local traffic. Getting started by creating a verified business account on Google is free and easy. Once you have an account, you can link your address and contact information, hours, location, reviews, and website to your Google search listing.

Most customers use Google My Business when it comes to finding specific products and services. Encouraging reviews on your Google My Business page can increase your Google search rankings. The more positive reviews your business has, the more customers you’ll attract.

Patreon

Patreon is an excellent platform for small businesses to get started making money. If you’re a creative or artist, doing what you love for a living is like living the dream. A better way to do this is to connect with the fans who love your work as you work on making your dreams become a reality. Patreon is a funding platform lets fans and creators work together by providing unique and exciting content.

Like a Chenoa Fund, this online platform allows you to market directly to your fans. As an exchange, they’ll support your creative efforts. All you need to do is create a free Patreon account and ask your fans to subscribe to your premium content by donating a small amount each month. This provides you with a steady flow of work as well as a steady stream of income.

Kickstarter

Unlike Patreon, Kickstarter is not about long-term funding. It’s about providing funding for the inception of ideas. While Kickstarter wasn’t launched with small businesses in mind, it has helped bring great ideas into fruition, allowing aspiring entrepreneurs to develop into small businesses.

While Kickstarter is available to anyone, each project must be approved by the site itself. Asking for funding for an upcoming project will work more in your favor rather than asking people to fund your next business venture. Once your project is approved, you can set your financial goals and time period to achieve those goals. If the goal has been achieved or exceeded, then you’ll receive the funding for that project.

WooCommerce

WooCommerce is an e-commerce platform that turns your WordPress site into an online store. Since it’s an open-source program, it can be made however you want it. But this could take some knowledge of HTML and CSS. WooCommerce is ideal since it’s free and you’re looking for a way to monetize your website.

This plugin offers a wide variety of features. You can use it for integration with over 400 apps, manage your inventory and shipping, and upload products. While the plugin itself is free, WooCommerce’s cloud-hosting feature is a paid feature that only works with PayPal or Stripe. Without a developer, you can get your online store up and running quickly and easily.

Shopify

Like WooCommerce, Shopify is one of the easiest ways to launch an online store. It is the perfect option for small business owners who are interested in the e-commerce industry. This e-commerce platform is a drag-and-drop builder which includes cloud hosting, customized themes, customer support, integrations, inventory management, payment gateways, and shipping rates. However, Shopify will charge you a fee if you don’t use their payment gateways.

Small business owners should join the Shopify Basic plan since it includes the features, options, and tools that you need for your business to succeed. This e-commerce platform allows you to focus on other tasks instead of the back office tasks and other work that can hinder your process.

There are plenty of options to choose from. You don’t have to get started with all of these platforms. Choose one or two that match your niche or industry. Research review listings to determine where your customers are.

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finance

4 Ways To Protect Your Finances During A Separation

Strategic Financial Solutions

Divorce and separations leave deep emotional and financial holes to the affected people. Under normal circumstances, you would get always advised to try and fight for your marriage and avoid separations as much as possible. Apart from the emotional hurting from the heartbreak, there is the aspect of going through the courts with the help of attorneys. You would not want to process your way throughout of a disturbed marriage only to end up broke and completely bankrupt. There are a few simple ways that one could follow to keep their finances safe during this hard time.

1. Make Sure All Your Cash Is Secure

As trouble starts to show in the relationship and you feel that it might lead into a separation, you would want to secure your accounts to make sure in case the separation goes through; you would remain with some cash on your end. Cancel credit cards to your accounts that your partner could have access, for joint accounts, you might talk to your bank to advise on the same. This is because you would need some cash to settle in case you needed to move out for rent, electricity bills, telephone and even the internet. Redirect all your income for a few months to your separate accounts to be sure of your financial stability.

2. Discuss How To Deal With The Fixed Costs

Most households share the burden of fixed costs for their homes by some ratio depending on their agreement or income. Some of these include mortgage, electricity, water and internet bills. After the separation, your partner might refuse to pay their instalments hence leading to defaulting. The problem is that these defaults would end up affecting both parties with their credit worth for the future you might decide to get some financial support from companies like Strategic Financial Solutions during this hard time as you plan further. Make a point of discussing these costs with the help of lawyers and agree on their repayments.

3. Rethink All Expenses On The Children

These include school fees, daycare fees and all activities involving your children. These expenses might also get so high depending on the terms of separation you might have agreed upon. Both parties need to discuss these expenses in the presence of lawyers to make sure one side isn’t pressed too hard. Notify the school and all relevant institutions about the separation so that they would also know how to deal with the payments as they would be dealing with two different parties as compared to previous times.

4. Rethink Your Incomes And Expenses

As a measure to cab you from running bankrupt after the separation, accept the new situation and try increase on your earnings and avoid too much spending. You need to seek financial advice so you can learn if you would be okay comparing your earnings with your expenditures. At times, you might need to get extra jobs or work extra hours if your partner used to cater for more of the expense when you were married. This might get you a little more worn out compared to your previous schedule but soon or later; you would get used to the situation.

As much as your counselors might try and save your marriage; sometimes it might get past their capability to save and hence advise you to both move on with your lives. You might also be working towards saving your marriage, but your partner, on the other hand, has already started the divorce process. In this case, do not also hesitate, so it doesn’t hit you by surprise when least expected. You should immediately start preparing emotionally and financially for separation and maybe a divorce.

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News

Dutchess Partners Highlight Some Unexpected Areas Affected by Credit

Dutchess Partners
Dutchess Partners

Most people think of bad credit as solely affecting their ability to borrow money. While that is the most direct impact of bad credit, it can also hurt your life in a lot of other ways. Others look at your credit as a sign of how reliable you are as a person and will judge you negatively whether or not your situation is your fault. According to Dutchess Partners, these are some ways that Dutchess Partners knows a shaky credit history can impact your life beyond simply obtaining a loan.

While potential employers cannot obtain your FICO score or your full credit report, they can see enough of your credit situation to form a judgement about you. Employers can check your credit with your permission. Applicants are best advised to give this permission if they want the job. Companies will be able to see your debt and payment history. If they see that you have a disproportionate amount of debt, they will draw negative conclusions about your decision-making and reliability. Further, they may not want to hire someone who they believe to be in financial distress since that may propel the job candidate to take risks to improve their own situation. This concern will be even more pronounced with a job that requires an applicant to be around money or to have access to the company’s bank accounts. 

A poor credit history can also doom your chances of obtaining a security clearance if you want to work for or with the government. Security investigators must make an assessment as to how vulnerable each candidate is to blackmail by foreign powers. Usually, it has been workers in financial distress who have compromised the country. When an individual is deeply in debt or has trouble paying their bills, the government will mark this as derogatory information on a background investigation. 

Bad credit may also mean that you will have difficulty finding a place to live. Prospective landlords can pull your credit report and they will see your credit score. Renters that are in financial distress have a higher chance of failing to pay their rent. If the landlord will rent to you at all, they will ask for an extra security deposit that you likely will not have, precluding you from renting. The same process applies to cable and utility companies who will also check your credit before allowing you to begin service with them. They may also want you to put down an extra security deposit at the outset of your service. 

There are many other services that those with bad credit either cannot get or will have to pay extra to receive. Insurance companies will check your credit before allowing you to get a policy. Bad credit may result in higher premiums. Cell phone companies may also run a credit check. 

With that in mind, you have many incentives to take steps to repair your credit if it is less than optimal. There are companies that help consumers fix their credit with advice and consolidation loans that help borrowers get their debt under control. Dutchess Partners is an industry leader in providing these loans to customers and can help you take the first steps towards improving your credit. Dutchess Partners can help you reduce both the numbers of creditors that you owe and the interest rate that you have to pay. Dutchess understands the issues that you face and will help you on the way to building a better financial house.

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finance

Hornet Partners Explain The Difference Between Good Debt and Bad Debt

Hornet Partners
Hornet Partners

When it comes to debt, there are a number of misconceptions. Some people believe that all debt is bad. In fact, there is good debt and bad debt. It is important to know the difference since most people will want to utilize good debt while eliminating bad debt. Expert debt consolidators like Hornet Partners have been helping people organize and service all types of debt for years. Below this article will show the difference between good debt and bad. 

What is Good Debt?

Good debt is simply debt that one can manage and pay back in a timely manner. This debt is also used to finance something that will increase the wealth, income or future earnings of the debtor. Below are some common examples of good debt that one can utilize. 

1. Home Mortgages

Since the majority of people cannot buy a home for cash, a home mortgage is an excellent way to get into a home with limited available funds. Most mortgage loans are approved according to strict lending standards. Since home values usually appreciate, this is an example of good debt.

2. Auto Loans 

Most people will need an automobile in order to commute to work and get around town quickly. A properly financed auto loan will be easily manageable by the borrower. While most automobiles do depreciate, this type of purchase provides incredible time-saving value to the user as well as providing access to increased opportunity, and thus qualifies as good debt.

3. Students Loans 

Education is one of the most valuable investments one can make. A student loan will allow the borrower to greatly increase their future earnings. Therefore, a student loan will qualify as good debt.

4. Business Loans

Those who start a business will want to take out a loan in order to buy inventory or expand operations. Since businesses have cash flow, the loan can usually be easily serviced. Business loans can apply to companies that have millions of dollars in assets or a self-employed individual who needs some cash to buy computer equipment. In many cases, a business loan will qualify as good debt. 

While good debt is usually serviceable, it may be a good idea to consolidate these good debts into one manageable payment plan. This will allow easier management and payment of the debt. Hornet Partners has helped a number of clients manage and service their good debt. 

What is Bad Debt?

Bad debt usually consists of loans that are difficult to pay back. These usually come in the form of loans with high-interest rates or debts that are riddled with payment penalties or other unfavorable terms. Bad debt can also apply to purchases of quickly depreciating assets. Below are some common examples of bad debt.

1. Credit Cards

Most credit card companies lure in new customers with low introductory interest rates. However, these interest rates can expand over 23% a year. Since this interest rate far exceeds the return on most investments and is difficult to service, this is bad debt.

2. Payday Loans

Many people in a financial crunch will go to a payday loan office to seek some quick cash. These payday loans have some of the most punitive interest rate terms available. Therefore, this is considered bad debt. In many cases, people who take out payday loans have trouble servicing this loan and end up in an even worse financial situation.

3. Unsecured Personal Loans 

Those seeking money for an undefined personal use will take out unsecured personal loans. Since there is no specific reason cited for the loan, financial institutions consider these loans riskier and charge a higher interest rate. This is bad debt that can be difficult to service. 

Since bad debt can cause financial hardship, it is important that these debts be repaid as quickly as possible. Hornet Partners are experts at consolidating bad debt to help their clients avoid further financial pain and potential default. By consolidating all bad debts into one payment plan, one can better service the debt. 

Properly Managing All Types of Debt

Good debt and bad debt both need to be serviced in a timely manner to protect the credit rating and the reputation of the debtor. One of the best ways to service all debts is through consolidation. By organizing all debts into one payment plan, a debtor can manage their payments while lowering their overall interest rate payments.

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finance

Lance Advisors Explains When to Consider Consolidating Your Debt

Lance Advisors
Lance Advisors

Debt consolidation means that you are taking all your debts and turning them into one larger loan. Instead of having to deal with multiple lenders, you will be left with one to deal with, and total interest will be lower. Some of the advantages consolidating loans include having fewer lenders to deal with and lower monthly interest rates. However, do you know when it is the right time to consolidate all those loans? You should not consolidate just because you have the chance. Before consolidating, look at your situation and determine whether it is the right time to merge loans or whether you should stick to the current situation. If you read some of the information published by Lance Advisors, you will notice that the following situations are likely scenarios when debt consolidation would be beneficial.

When you want to make changes to your spending habits

Spending habits often determine how much debt you accrue. When you are frequently overspending and seeking an additional loan, you will end up accumulating too much debt. You will have loans from the unlikeliest lenders, and this will affect your credit report. When you visit a financial counselor, they will suggest that you make changes to your spending habits, and these changes may include consolidating previous loans. The aim is to make sure that you have your debt in one place where you will manage it better, and that you embark on the process of correcting your credit rating by controlling the way you shop for things.

When you want to pay off your debts in a shorter duration

Consolidating a loan may be a result of your resolve to pay it off faster. Different lenders will have different terms associated with their loans. For instance, you will come across those who require you to pay in several years while others may only allow you a few months. This means that the time it will take you to pay all the debts will vary, and so, it will not be a comfortable experience. Financial experts often ask people to consolidate their loans so that they can pay faster and more efficiently. You may notice that depending on your collateral and credit score, the new lender allows you to pay in one year. However, there are those that will require you to clear everything in up to three years depending on the terms and conditions attached to their financial products.

When you want to put your debts behind you

There is no more natural way to get out of debt than by consolidating all your loans. Lance Advisors suggest that if you are always attending to every loan individually, it will be a hectic experience. People who want to put their debts behind them often find it easy to create a payment schedule when they move them to one place. Therefore, no matter how much you owe to lenders, you may want to consider getting a single loan to repay other loans in their entirety and create a monthly payment schedule that will see you put the debts behind you faster. You will notice that when you do this, the new lender will help you in creating a repayment plan based on your income and monthly bills.

When you have decided to save money on interest

Are you looking for lower interest rates? The best way to pay less interest on your loans is to choose a company that will help you to consolidate them. There is an almost immediate effect that this move will have on your credit score. For example, it may mark some of the debts on your credit as paid even though you just moved them to a different company. What this means is that your credit score will improve and therefore, you have a chance to negotiate better interest rates on your new loan. The companies will also offer you better rates when you commit to paying your loans every month until the day they are fully settled.

You no longer want to deal with multiple bills every month

Imagine if you have dozens of lenders all looking for you at the end of every month. This situation translates into too many monthly bills. Sometimes, you may not have the time to deal with all the companies, and therefore, it makes a lot of sense when you consolidate the loans. With the new arrangement, you know that there is only one company that you will be contacting, and it gives you a lot of peace of mind.

As you can see, many situations can make you consolidate your loans. To have an easier time with the process, Lance Advisors recommends that you should start by understanding your finances and choose a consolidation plan. After that, go through the consolidation application process, and be sure to select the right company so that no additional problems arise.

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News

3 Finance Lessons to Learn From Celebrities

In many ways, celebrities live vastly different lives from the vast majority of individuals. Their net worth and daily habits are more than many people will ever dream of. But still, they have many of the same problems that the average family faces. Some of these problems are associated with keeping and taking care of money. By looking at what celebrities get right and wrong with regards to taking care of money, individuals can gain a better sense of how to handle their own financial affairs.

Try to earn side income

Celebrities are masters of the side hustle. There are dozens of different things a celebrity can do to bring in money outside of their specific specialties. Many actors, for instance, make money on the side directing or perhaps teaching an acting class. Actors and sports stars make money through endorsements. These strategies help to provide extra income for amenities and for times when their primary job is not paying well. They should be emulated by the vast majority of the public. Most people in today’s economy need a side hustle. Wood Harrisargues that these people need to have some other job that gives them fulfillment and helps them meet their obligations. A side hustle is the best way for people to combat the trend towards lower wages that has engulfed the American economy in recent years. 

Spend within your means

It is possible for people to learn good and bad finance lessons from celebrities. One negative finance lesson is that individuals should always spend within their means. There are a number of stories about celebrities forced to declare bankruptcy because they were unable to meet all of their obligations and pay their debts. Celebrities have had to sell their homes and auction off their possessions. Some celebrities have even gone to jail because their bad finances have extended to the crime of tax evasions. Individuals should learn from these celebrities to always spend within their means and keep track of their purchases. Keeping track of where their money goes is essential to understanding how much money an individual can spend at any one time. 

Defer to experts

One smart financial decision that many celebrities have made is the hiring of financial professionals to manage their money. The large sums of money that celebrities bring in must be wisely managed. To that end, many celebrities hire tax accountants and financial planners. They set up trusts, wills, and accounts to help out their family members with metered sums of money. Financial managers also launch stock and real estate investments on behalf of celebrities. Wood Harris believes that many individuals need to follow this advice and meet with certified financial professionals. Financial professionals will help individuals manage their own fortunes and handle their estates. 

Conclusion

Individuals should not try to emulate everything that celebrities do. Many celebrities are in a context where they can get away with behavior that would be self-destructive for any other person. But celebrities are people often surrounded with smart financial professionals who guide them to wise choices with their money. Members of the public can often look to these professionals and celebrities for guidance on how and where to spend their money. Jump to top

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finance

Gladiator Lending on What Lenders Look for When Setting Terms

Gladiator Lending
Gladiator Lending

Many individuals and businesses are able to survive based on the presence of bank and lender loans. Lender loans provide money to help businesses make payroll, expand their operations, or hire more staff. Loans also help individuals make additions to their house or pay basic expenses. When looking for a loan, individuals want to find the best terms possible. They have to present their best case in order to earn terms that will actually work for their business or individual financial needs. 


Feasibility

Lenders are looking for individuals who have a plan to make the money required to pay back their loan. This feasibility is the most important factor when determining a loan decision and the terms behind that decision. Loan officers make their money by lending out certain amounts of money and having borrowers pay that money back with interest. The terms and interest rates offered are related to the chances that an individual will pay their money back and the related chances that they will default on their loan.

As a result, lenders like Gladiator Lending often ask a series of financial questions related to individuals’ income and job status. Individuals must have a clear plan in place to pay off either the personal or business loan. They should detail their expenses and income. Any potential bonuses or raises should be mentioned to a loan officer. A borrower has to be prepared for a lender who may have questions or concerns about a person’s job and payment status. A bank will not make a loan to an individual if they are convinced that the individual will not have the money to pay that loan off. 

In order to show feasibility, an individual must construct a narrative where they are a competent individual who will most certainly be able to make all of their loan payments on time. They should research any potential pitfalls or holes in their argument. An individual working for a business should be prepared for any criticism towards their business field that they may receive. Individuals should have backup plans for if they lose their jobs. A few hours of research and preparation can mean thousands of dollars saved or lost in interest payments over a period of years. 


Experience

Experience is helpful for determining loan terms and for acquiring the best loan possible. Gladiator Lending and other large and small lenders certainly want to find individuals who are experienced at paying off their bills. A high income relative to a loan may not matter if a person has shown in recent years that they were delinquent or generally unable to meet their previous debt obligations. The most familiar way for an individual to show their experience with managing payments and lending is through their credit score. Credit scores are compilations of how an individual treats and uses their credit. It is a record of the debts and debt payments that individuals have taken over an extended period of time. 


Confidence

The personal meeting with a loan officer can be enormously effective at helping to set favorable terms. Smaller lenders like Gladiator Lending often want to make some sort of a connection, either virtually or in person, with the individuals they are lending to. Many individuals receive a set list of advice when looking to set terms and ask for a loan. They are told to sit up straight, dress well, and always be respectful. This process may seem redundant or unnecessary to most individuals who are confident in their plan to pay back their loan. It is not part of a credit score and does not appear on any sort of balance sheet.

But these concepts are vital because of the role of trust in the acquiring of a loan from the vast majority of small and large lenders. Trust is critical because of the information that an individual is sharing with their lenders. Lenders cannot always verify all of the information that an individual is telling them. They have to trust beyond the financial information and credit scores that they often require individuals to provide. 

For instance, an individual may be able to explain that a negative entry on their credit report was caused by an illness that was not reported anywhere else. The lending institution has to trust an individual’s word if they decide to mitigate the effects of that negative credit report mark when making a loan. An individual who dresses well, arrives prepared, and takes the process seriously has a much better time receiving trust and the benefit of the doubt than individuals who do not. 


The lender’s own finances

Additional factors outside of a borrower’s control influence loan terms. Loan terms may be influenced by the overall economic health in a particular area. Economic trends can determine how long a loan is extended for and the interest rates an individual may have to pay. The lender also has to consider its financial situation. A lender that has been successful in one particular area may want to continue making loans work in that area.

Lenders who have suffered significant recent foreclosures may not be willing to accept marginal cases or low loan terms. Individuals do not always know about these factors. However, they should certainly read news reports and publicly available information before picking a particular lender and setting an appointment to discuss a loan. News reports may help an individual find out what lenders are facing stressful situations or economic hardships. Such information can help an individual time their meeting as carefully as possible to ensure the best potential loan rates. 


Conclusion

People are understandably concerned about the lending process. They are stressed about their case and worry about how their terms will fit their company’s bottom line. Part of each decision is influenced by forces outside of the borrower’s control. For the rest of the lending process, individuals simply need to be as thorough and careful as possible. They have to make the best case that they can to their lender and articulate their business/payment plan clearly and forcefully.