Category: Loan

Rent’s Due and Money’s Tied Up: Quick Solutions to Footing the Bill

money billsFor some people, renting is a lot more affordable and easier than owning a home. There’s no property taxes, homeowners insurance, maintenance, or repairs that you have to cover. Though it can be convenient to simply pay rent, there are months where footing the bill is easier said than done. A car repair, high utility bill, medical emergency, family emergency, or a mix up with your paycheck can exhaust your funds leaving you in a bit of a jam.

There’s a lot of programs that help homeowners struggling to afford their mortgage payments, but what can you do as a tenant? With only a few weeks before the first and the threat of eviction for nonpayment, you may feel like you’re back is against the wall. Before you throw in the towel and wave your white flag, here are some quick solutions to getting that rent paid.

Work Something Out with Your Landlord

First and foremost, let your landlord know that you’re going to be a bit late on the rent this month. This prepares them financially and could stop them from starting the eviction process. Ask for an extension on the rental payment if possible. If you’re usually good on paying, they may be willing to work out an arrangement with you where you break the past due amount up into smaller amounts and add them onto the regular rental payments until you’re caught up.

Move Some Things Around

Now, take a look at your personal finances. Are there bills that you were due to pay on or around the same time your rent was due? Can these bills be paid at a later date? This can free up some cash you need now and give you more time to pay the other bills later. If another bill is going to be late, reach out to the service provider to inform them to try and avoid fees or collection efforts.

Sell Some Things

When things get down to the nitty gritty sometimes the only way it can be handled is to sacrifice. Perhaps you can clean out your rental property and sell some things for cash. You can get a quick response by taking photos and using an online app to sell to interested parties nearby.

Installment Loans

If your rent payment is due and the deadline is only a few days away, you probably won’t have time to earn enough to pay the balance in full. If you’re simply dealing with a temporary setback (a higher energy bill) and not a serious financial crisis (loss of employment), there are installment loan direct lenders that will lend you a helping hand. If you meet the minimal eligibility criteria, you could have several hundred or thousand dollars deposited into your account within a few business days. Then, you can pay the loan off with conveniently monthly payments.

Get a Roommate

If you’re dealing with an ongoing financial problem like the loss of a job or a decrease in pay, you may want to consider finding a roommate to move in with you. This can be a friend or family member who is in need of a place to stay. You might also offer a room to college students or single individuals who don’t mind a small space. Make sure this is alright with your landlord prior to offering your space. Having someone else in the place with you cuts down on all costs ensuring you can pay your rent on time.

Try Ridesharing

If you can’t get enough to pay your rent from your income, perhaps the solution is to boost your income. Ridesharing has become increasingly popular. Many companies even offer a sign-on bonus of a few hundred dollars. You can get paid a decent amount each day depending on how frequently you drive and where you live.

Government or Private Assistance

Lastly, there are some options for renters who have fallen on hard times. Check with your city, state, and county to find out about government and/or private programs that help tenants with back rent. You may need to meet certain criteria, but if eligible you could have your rent paid for you and even reduced in the month’s ahead.

As cost-effective as renting can be for some individuals, there are times when paying the rent each month is impossible. If your funds are all tied up or you’re going through something that will change your finances temporarily or permanently, there are still resolutions to getting your rent paid. Remember, start by talking with your landlord to avoid eviction procedures and then consider the tips listed above to accumulate the cash you need.

What Is The Future Of Loans?

loan futureThe technological revolution has been a serious point of interest for the lending industry. In the wake of mass digitisation and an increasing reliance on the Internet and connected technology for business purposes, many lenders (and borrowers) have found themselves wondering where lending will be and what the process will look like in the future.

Well, fear not: if you’re a borrower, then things are looking up for you. The future isn’t quite as rosy for traditional lenders, though; they’ll have to work harder to compete in an increasingly crowded market, and they’ll need to be able to battle online-only companies with significantly lower overheads and a more persuasive and desirable brand identity.

The first indication that the lending industry was changing as a result of an increasingly online-dominated landscape was arguably the peer-to-peer lending boom. The first P2P lending companies began appearing in the late 2000s, revolutionising the concept of money-lending by emphasising a more grassroots approach which favoured the relationship between consumers and companies rather than the transaction itself.

P2P lenders represent (in theory) a more transparent, more grounded industry with an increased focus on the consumer, which is why borrowers will be better off in the future. The Internet has already created a number of opportunities for companies to fill niches which were not previously filled by bigger companies.

These niches include more flexible student finance agreements, online-only mortgage lending which allows users to get a quote in minutes without a lengthy credit check process, and quick-turnaround lending which majorly threatens credit cards, among others. Put simply, the Internet has changed the landscape of loans and lending forever, and it’s not looking likely that this change will be reversed.

With that said, a large amount of the functionality and operation of loans looks likely to continue as normal, albeit with a decidedly more ethical spin. Let’s take payday loans as an example. Some negative press around certain payday loan lenders means that the public is more wary than ever about hidden terms and conditions; with scandal comes increased scrutiny.

Even though this is the case, the best payday loan lenders are unlikely to be fazed by this. A huge amount of payday lenders already carry out their business with near-total transparency and an emphasis on ethical treatment of their customers; problems begin when loan companies attempt to draw more money out of their customers than they have been honest about, and that’s just not something that a reputable payday loan company would ever want to do.

In a similar sense, the types of loans on offer to consumers are unlikely to change, although we’ll probably see more lending around bitcoin and cryptocurrency as the kinks in these systems are worked out and the security around them increases. Right now, the issue with lending cryptocurrency is that there’s no centralised authority, so there’s no way of absolutely guaranteeing the safety of cryptocurrency transactions. At the moment, the bitcoin lending process requires a huge amount of trust from both parties, so as these systems are refined and changed, expect to see this currency taking off in a big way in terms of lending.

Otherwise, the future of loans is, well, business as usual, as boring as it might sound (but boring is good when it comes to finance). As it stands, the vast majority of loans fall into four categories: secured loans, unsecured loans, short-term loans (payday loans) and peer-to-peer loans. There are other kinds, but these are the most common types of loan you’re likely to come across.

There’s just no reason why increasing digitization and cryptocurrency are likely to change this. Unsecured loans will still be offered to consumers, although the amounts are likely to change based on new developments in online technology and companies who are willing to trust their customers more. Secured loans will continue as long as people have property against which the loan can be secured.

Peer-to-peer lending looks like it is only going from strength to strength, although there will need to be tighter regulation and a closer eye on business practices going forward if it’s to maintain its current standing. Payday lending is unlikely to change as long as there are people who need money on a short-term basis, and with the recent rise of the gig economy, the number of people who require this service is only likely to increase. If the future of loans will change at all, it will likely be towards this more short-term lending system as people’s incomes are less certain in a majority self-employed economy (if that is indeed where we’re going as a society).

What’s a Limited Company and How Do I Start One?

building businessWhen you are starting up a new business there are a number of different ways you can set it up – one of these options is to create a Limited Company – this creates a business which is entirely separate from you and your personal finances.

1. What is a Limited Company?

The company has its own business name and its own separate identify. You need a business bank account and the business can make profits or loss. It can pay taxes and have debt, of its own, all separate from you as the business owner.

You have to have a company bank account – it can’t be in your name – and all money earned by the company have to go into the company bank account but this is relatively simple to set up.

It is important to understand that the company is separate from you as a person – if you want to have more control and be more involved then it might be better to set up as a sole trader – when you and the business are one and the same.

2. How to set up a Limited Company

The first thing you need to do is choose your company name, and then decide where it will be based. You also need to decide who will be within your company as well. Once you have all that decided you need to think about shares – if you have more than one of you owning the company you will need to decide what percentage you each own. Find out exactly how to set up a limited company in this step by step guide from Crunch.

3. Shareholders

You are able to add shareholders to the company but you should seek professional advice on this side of things as there can be tax implications.

4. Register with Companies House

Once you have decided on everything, you need to go to Companies House website and register your company for a low fee. You can do the whole process online. They will check if any other businesses have the same name as you and will ask who your company director and company secretary are.

It is often possible to do this through an accountancy firm. You need to be aware that being a company director comes with legal responsibilities.

5. A Memorandum of Association

Companies House also require you to file a Memorandum of Association which outlines why the company was set up and how it will be run. It can be used in tax issues or legal proceedings so make sure it is drafted correctly. You can write it but keep it as simple as possible in that case.

6. Consider professional advice

While the process is simple, if you get it wrong it could cause problems further down the line so you might want to consider getting expert help from your accountant or from a company set up specialist. There will likely be a fee involved but it will be worth it to get everything right from the start.

7. Working with your accountant

An accountant will often provide the support to set up your company for free as long as they then continue to work with you to deliver your payroll and taxes and support your business on an ongoing basis. It is definitely worth looking into for all of the help and support which you will get for your business from day one.

8. The business bank account

You don’t necessarily need a High Street bank for your business bank account but there are plenty of other options out there which can be set up quickly to help your business get off the ground without delay.

9. HMRC help and guidance

As a new business owner you need to understand your expenses and tax obligations as well as VAT potentially so it’s worth checking the HMRC website as they have a lot of information and advice for business owners.

They also run regular webinars and advice sessions on all kinds of tax-related business issues so check out everything on there to make sure you register with them for tax and if you need to register for VAT etc..

Again, it’s better to make sure you get everything set up from day one, correctly, so that your business starts from a positive footing. If you have any questions or doubts about business taxes you can also seek help from your accountant.

Setting up a Limited Company is a fairly straightforward process but it’s important to work out if this is the best route for you by looking at all the options first. If you do decide it’s what you want to do, then seek professional advice, from you accountant, before starting out so that you make sure everything is done correctly right from the start for your new business, giving it a good foundation.

Weighing the Options: The Pros and Cons of Unsecured Personal Loans

personal money loansOften unexpected expenses come up in life, catching us unawares and unprepared. When that happens, it is good to have the option of a personal loan to turn to for financial assistance.

Personal loans come in two types: secured and unsecured. Secured loans are less common. They require you to hold something for collateral, such as a car title or property. If you default on your payments, your lender is legally able to take your personal secured property.

Unsecured loans are less strict and much easier to get approved for. They require no collateral to get approved. However, they have many drawbacks to them as well, and borrowers should always know the pros and cons of their loan terms before they sign for one.

Personal Loans: What Are They Good For?

If you prefer to leave your personal property safe and not use it as collateral, you have the option of an unsecured loan. These types of loans have an easier application process and quick turnaround on distribution of money. If you need cash fast in an emergency situation, you can apply for a personal loan.

Unsecured personal loans can be applied for online from the comfort of your own home, and many times your approval or denial can be obtained in minutes.

Borrower Beware: Know the Cons of an Unsecured Personal Loan

Although there is no collateral involved in an unsecured personal loan, if you do not make your payments the lender still has recourse to take against you. They may be able to place a lien on your assets to ensure they are paid before you can sell your property.

They also may be able to take you to court and sue you for what you owe, plus legal expenses. Your credit score will be severely impacted, and your wages may even be garnished depending on the terms of the settlement.

Another drawback to unsecured personal loans is that the amounts you can receive are much smaller than secured loans. This helps limit the lenders’ financial risk. If you do not pay the loan back, they are only out a small amount.

You can also expect the interest rates to be higher if you are using a lender that does not run your credit, or approves you even with poor or bad credit. This high interest rate will make your monthly payments larger.

The terms will also be more strict if you can’t make your payments. High late payment penalties or rises in the interest rate for payments not made on time are very common with unsecured personal loans.

Weigh Your Pros and Cons

Before you sign on the dotted line, read the terms carefully. Be sure that you really need the money that you are borrowing, and that the monthly repayment terms are within your budget. Know your consequences and be willing to accept them should you end up having to default on your payments.

If you are comfortable with the cons of a personal loan, they are there for you to help you get through this difficult financial time.

7 Online Buying Tricks Revealed: Your One-Stop Guide to Selecting a Reputable Precious Metals Dealer

precious investmentsIn uncertain economic times, having gold on hand is a surefire way to liquidize and protect your assets. Even in a stable economic environment, gold is a safe haven asset that will never fail you. This is because gold’s value increases instead of decreases in direct relation to the decline of value in paper investments, such as stocks and bonds.

To minimize or even eliminate a fall in portfolio value during economic collapse it’s best to invest in uncorrelated investments. What this means is that you want to own assets that will move the opposite way of other investments when economic times become uncertain. Gold is one of the few guaranteed investments that are uncorrelated to many other investments. This makes it a very safe investment that has proven to remain positive when stocks fall.

This means that allocating some of your investment to gold is a sensible and solid choice. However, the buying of gold bullion is not always as straightforward as one would hope. There are plenty of precious metal dealers who will gladly take your money without having your best interests as a customer at heart. To avoid falling for an unscrupulous dealer, you’ll have to do a little research into finding the best dealer so you can purchase gold with confidence.

Online vs. Local

In general, there are two main ways to buy gold: online or locally (in person).

Local precious metal dealers can be found in cities around the world. However, brick and mortar stores will often come with a lot of overhead. This is due to rent, paying employees, security, and more. This added overhead and the fact that local gold dealers often have lower sales volume means that they will often have to charge more for gold bullion to make up for their costs.

On the beneficial side, a local gold dealer will mean that you will be able to physically inspect the bullion and take immediate possession of it when you purchase it.

Local dealers also have more of a reason to care about their reputation in the immediate community they serve, which may translate into higher quality of service when dealing with them.

Also, if you’re only buying small quantities of gold and you’re paying for it with cash, your purchases at a local dealer might not be reported to the tax authority and can stay confidential. If this is something you are considering, make sure you discuss it with your dealer to make sure you stay below the threshold for reporting.

The other option for purchasing gold bullion is through an online dealer. Online dealers typically do more business and will have higher volumes of sale and much lower fixed costs. This means that you can often find good gold bullion at a solid discount online.

Online dealers will have a much more varied range of products in stock and many even offer convenient buy-and-store programs that permit you to purchase the gold bullion and then keep it in an insured and protected location made available by the dealer. This can be very beneficial since storing your own precious metals can be risky.

Some people are nervous buying bullion online, since it is such an expensive product. However, if you are able to find a dealer with a long, solid history and positive reviews, you will most likely be in good hands.

Unfortunately, buying gold online means that you will have to pay for shipping and handling costs (which are not cheap when it comes to materials of this value), and you will have to wait to physically take possession of your gold. Some online gold dealers like Lucius Precious Metals offer free local delivery for orders over a certain price point, which can be something to consider if you’re in the area.

What to consider when buying gold for delivery

If you are purchasing gold online and looking to have it delivered to you, you’ll want to consider a few things.

First, you want a dealer that has a strong and solid reputation and years of reliability. Read customer reviews and check out investment forums to make sure your chosen dealer doesn’t have any shady reports out on them.

You also want to make sure that the dealer sells only gold coins and cold bars from LBMA-approved wholesalers. This is your best guarantee that you will be purchasing authentic coins and bars.

You’ll also want to check out the dealer’s premiums on bullion. This can vary widely throughout the industry and is not a set-in-stone number. Lastly, check out the difference between buying and selling prices on the dealer’s site, which can be as high as 10% or more.

To maximize your long-term profits, you need to work to find a dealer who is reputable and trustworthy and offers low premiums.

What to consider when buying gold for storage

If you’re buying gold for storage, you still want to check out a dealer’s reputation, bid-ask spread, and other factors mentioned above, however there are other factors that come into play when buying gold for storage.

For one, you’ll want to examine the storage facilities where your precious metals will be kept.

Gold bullion should be stored with a reputable, separate entity so as to reduce counterparty risks. Ideally, you’re looking for an LBMA-approved vault provider like Brinks. These types of companies store gold reserves for massive financial institutions and government bodies. This assures that your gold is being stored in a secure environment.

When storing gold, make sure that your dealer offers insurance that will cover the full replacement value of your coins or bars in the event that something were to happen to them. Full replacement means that you will get back the physical equivalent of the gold lost, and not just the cash value—which is based on the spot price of the metal.

You’ll also want to make sure that your gold is fully allocated to you. This means that it is held in your name, you are the outright owner, and the gold can be made available for delivery or sale at any moment. Unallocated gold bullionis shared by investors who own an interest in the bars, which raises all kinds of liquidity issues that we recommend avoiding.