Financial Institution – Stan Smith Loans http://stansmithloans.com/ Tue, 10 May 2022 08:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://stansmithloans.com/wp-content/uploads/2021/07/favicon-23.png Financial Institution – Stan Smith Loans http://stansmithloans.com/ 32 32 BTL mortgage for debt consolidation https://stansmithloans.com/btl-mortgage-for-debt-consolidation/ Tue, 10 May 2022 08:00:00 +0000 https://stansmithloans.com/btl-mortgage-for-debt-consolidation/ Summary of the case Buy to rent mortgage Capital raised for £29,000 debt consolidation Recently missed mortgage payment Client living in the property What we have achieved for the client Overcame recent missed mortgage payment Overcome that the client had not yet left the property Capital raised for debt consolidation into one manageable payment method […]]]>

Summary of the case

  • Buy to rent mortgage
  • Capital raised for £29,000 debt consolidation
  • Recently missed mortgage payment
  • Client living in the property

What we have achieved for the client

  • Overcame recent missed mortgage payment
  • Overcome that the client had not yet left the property
  • Capital raised for debt consolidation into one manageable payment method
  • Overcame tight rental calculations with the best slicing solution

The stakes of the case

In this case, the client wanted to remortgage a property on a rental mortgage, when it was currently the client’s home. They owned another property, which they intended to move into, but during our initial discussions, there were tenants on site.

The client was waiting for the end of the notice period to take possession of the property in order to move into it.

Generally, mortgage lenders do not accept a case where the person named on the mortgage still lives in the property. Indeed, it could be a sign that the applicant does not intend to rent the property, which would be against the terms of the mortgage. Most lenders will want to see that the property is already rented to a third party tenant.

In this case, the lender was happy to accept that the client moved to another property.

The reason for the mortgage was to pay off debt, credit cards and a loan. So the client was looking to raise capital on the property he was living in to do this and then move into a second property he owned.

Overcome a Recent Missed Mortgage Payment with a Buy-to-Rent Application

There were several reasons why fundraising presented a challenge.

First, the client had missed a mortgage payment 6 months prior to speaking to us. For any mortgage lender, including buy-to-let, this poses an element of risk to a deal. Indeed, anyone borrowing who has not been able to maintain payments on a loan may be vulnerable to facing the same challenges in the future.

Of course, the circumstances that led to this may have been temporary, but regardless, when comparing two similar applications where this was the only difference, many lenders would not accept this which would be assessed as a recent problem on an applicant’s credit. the story.

Our adviser overcame this by researching lenders who offered greater flexibility over the applicant’s credit history. When the advisor pursued a policy decision, the lender took that factor back into the application and it was manually assessed by the lender for viability and approved.

Using top-slicing to overcome narrow rental coverage in the affordability calculation

Our second challenge, on raising the necessary funds, was that the rent calculation for the security property was very tight. This meant that rental income alone did not justify the affordability calculation, for the loan the client needed.

Our advisor overcame this problem by looking for lenders who could offer the client “top slicing”.

This is where a lender will consider an applicant’s excess personal income, to support a calculation of mortgage affordability.

Some lenders will offer a higher severance, as they are happy to accept that, if tenants stop paying rent in order to cover the mortgage payment, the mortgage holder could and would use their personal income in the meantime to maintain mortgage payments.

This is a very useful area of ​​criteria for many applicants with low rental income, but who have excess personal income.

In this case, our advisor was able to raise capital up to 75% of the loan to value, which generated the total sum the client needed to pay his outstanding debts from credit cards and a loan .

If you are looking to remortgage a buy to let property and you have experienced issues with your credit history, we may also be able to help and raise capital for you.

Contact an advisor directly by calling our toll-free number above or inquire online.

Think carefully before securing other debts on your property. Your property can be repossessed if you do not continue to pay your mortgage.

By consolidating your debts into a mortgage, you may have to pay more over the entire term than you would with your existing debt.

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5 Best Debt Consolidation Options https://stansmithloans.com/5-best-debt-consolidation-options/ Thu, 05 May 2022 22:41:15 +0000 https://stansmithloans.com/5-best-debt-consolidation-options/ Getting out of debt is difficult, especially when you have multiple creditors. If you’re juggling different accounts, payment amounts, and deadlines, you might be considering debt consolidation. Debt consolidation is the strategy of consolidating multiple debts into one payment. It can save you money in interest, help you pay off debt faster, simplify your finances […]]]>

Getting out of debt is difficult, especially when you have multiple creditors. If you’re juggling different accounts, payment amounts, and deadlines, you might be considering debt consolidation.

Debt consolidation is the strategy of consolidating multiple debts into one payment. It can save you money in interest, help you pay off debt faster, simplify your finances and give you peace of mind.

1. Balance Transfer Credit Card

You’ll need a balance transfer card with a high enough credit limit to support the balances you roll over and a low enough ​Annual Percentage Rate (APR)​ to make it worthwhile. the The best balance transfer cards often come with zero interest or a very low interest rate for an introductory period of up to 18 months.

A balance transfer card can be a good way to consolidate your debt if you pay off the card before the introductory rate expires and you don’t accumulate new debt.

Use a credit card balance transfer calculator to see how long it will take to pay off your balances.

Advantages The inconvenients
  • Faster and easier to get than many other loans
  • Possibility to save money if the debt is paid during the introductory period
  • No collateral is required, so there is no risk of losing assets
  • Doesn’t address bad spending habits that caused debt
  • Typical fees of 3-5% of the amount transferred in addition to the balance
  • APR after introductory period is likely higher than other loans
  • Pull hard on your credit report

Using a balance transfer credit card is best for those who are disciplined and will avoid going into debt on their existing credit cards once the balances are transferred to the new card. If you choose to use a balance transfer credit card, have a plan to pay off the debt before the credit card’s introductory rate expires.

2. Home Equity Loan or Home Equity Line of Credit (HELOC)

Home equity is the difference between the appraised value of your home and the amount you owe on your mortgage. If you own a home with sufficient equity and a good credit history, you can borrow some of that equity at an affordable rate to consolidate your debt. Many home equity borrowers use the money to pay off higher interest debt, such as credit cards.

Your home equity borrowing options include home equity loans, which give you a lump sum at a fixed rate, and HELOCs, which give you a line of credit you can tap into at a variable rate. Both can be good options for debt consolidation if you have enough equity to qualify.

Advantages The inconvenients
  • Fixed rate and fixed monthly interest for home equity loans
  • Larger loan amounts
  • Long repayment periods
  • Lower interest rates than credit cards or personal loans
  • Variable Rates for HELOCs
  • The house is the collateral that secures the debt
  • Loan interest is not tax deductible
  • Longer financing times on average
  • A longer repayment period can mean higher costs overall

HELOCs are often best for those who have significant equity in their home and prefer a long repayment term. Before opening a HELOC, shop around for the most competitive interest rate. It’s also important to be disciplined about your use of a HELOC and debt repayment.

View Home Equity Rates

Leverage the value you have in your home to get the funds you need.

3. Debt consolidation loan

A Debt consolidation loan can be a smart way to consolidate your debts if you qualify for a low interest rate, sufficient funds to cover your debts and a comfortable repayment term. These types of loans are unsecured, so your borrowing rate and limit will depend on your credit profile.

Advantages The inconvenients
  • Warranty is not required
  • Funding and approval can be quick from many lenders
  • Loan amounts range from $1,000 to $100,000
  • Lower interest rates than credit cards in many cases
  • Loans may come with origination, late payment and prepayment fees
  • Low rates require great credit
  • Scams are rampant in the debt consolidation loan market

Debt consolidation loans are generally a good option for those with a credit profile that provides favorable interest rates and a borrowing limit that fits all of your debts. You’ll generally need to have a credit score of at least the mid-600s and have made payments on time for the best rates, although personal loans for bad credit are available.

Get pre-qualified

Answer a few questions to see which personal loans you are pre-qualified for. The process is quick and easy, and it won’t affect your credit score.

4. Peer-to-peer lending

Peer-to-peer lending platforms match individual borrowers and investors for unsecured loans typically ranging from $25,000 to $50,000. Like personal loans, P2P loans are unsecured, so the borrower’s credit history is the key factor for rates, terms, borrowing limits, and fees. The higher your credit score, the lower the interest rate and the more you can borrow.

Advantages The inconvenients
  • Application, approval and funding are usually fast
  • The initial application uses a soft credit check
  • Lower credit scores may still qualify
  • Fees may apply
  • High interest rates with bad credit
  • Less time to pay off the loan than with credit cards and home equity loans
  • Potentially higher monthly payments due to shorter repayment terms
  • Rates are generally higher than home equity loans

Eligibility conditions for loans between individuals are not always as strict as for other types of loans. Some P2P lenders allow applicants to qualify with a lower credit score. Before using this type of loan, compare fees and interest rates with other options.

5. Debt management plan

If you want debt consolidation options that don’t require taking out a loan or applying for a balance transfer credit card, a Debt management plan might be right for you, especially as an alternative to bankruptcy.

With a debt management plan, you work with a nonprofit credit counseling agency or debt relief company to negotiate with creditors and write a repayment plan. You close all credit card accounts and make a monthly payment to the agency, which pays creditors. You still receive all account statements from your creditors, so it’s easy to know how quickly your debt is being paid off.

Advantages The inconvenients
  • Credit score can improve over time
  • Free options from some organizations if you really need them
  • Some of the best loan rates
  • Credit score will usually go down for a while
  • Many nonprofits have strict requirements on how you use the money while on the plan.

Debt management plans are generally a good choice for those who are heavily in debt and need help structuring repayment. But you will need to find out if your debt qualifies for this type of plan.

How to avoid getting into debt

Consumers who have borrowed and spent so much that they need to borrow more to consolidate their debt need to carefully review their spending habits. “You need to identify where the debt is coming from,” says Celeste Collins, executive director of O​nTrack WNC Financial Education & Counseling​ in North Carolina. “How did this balance come to this? You need a comprehensive cash flow plan and take paying that amount seriously.

Once you are out of the debt hole, you can avoid this predicament again. Here are some rules to follow:

  • Set a budget and stick to it. Live within your means.
  • Avoid impulse purchases.
  • Look for the lowest price before making a big purchase.
  • If you use a credit card, pay the balance monthly to avoid interest charges.
  • Keep your finances organized and monitor your bank balances closely.
  • Stay away from “buy now, pay later” and “interest-free financing” offers, which only defer your debt.
  • To save money. Try to set aside a certain percentage of your income to save it.

Get pre-qualified

Answer a few questions to see which personal loans you are pre-qualified for. The process is quick and easy, and it won’t affect your credit score.

The bottom line

If you need to borrow money to consolidate your debt, avoid subprime lenders who cater to consumers with bad credit – these lenders offer the highest interest rates and ruthless loan terms, and it’s always best to shop with traditional lenders first.

Also, take every precaution to ensure that your lender is legitimate. Check to see if a lender is registered in the state you live in. Look for this information on the lender’s website or contact your state attorney general’s office for further verification.

Learn more:

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Debt Consolidation Market Overview 2022-2030 | Key Players – Marcus by Goldman Sachs (US), OneMain Financial (US), Discover Personal Loans (US), Lending Club (US), Payoff (US) https://stansmithloans.com/debt-consolidation-market-overview-2022-2030-key-players-marcus-by-goldman-sachs-us-onemain-financial-us-discover-personal-loans-us-lending-club-us-payoff-us/ Thu, 05 May 2022 16:25:56 +0000 https://stansmithloans.com/debt-consolidation-market-overview-2022-2030-key-players-marcus-by-goldman-sachs-us-onemain-financial-us-discover-personal-loans-us-lending-club-us-payoff-us/ The latest market research report analyzes the Debt Consolidation Market demand by different segments Size, Share, Growth, Industry Trends and Forecast to 2028 in its database, which depicts a systematic picture of the market and provides an in-depth explanation of the various factors that are expected to drive the growth of the market. The Universal […]]]>

The latest market research report analyzes the Debt Consolidation Market demand by different segments Size, Share, Growth, Industry Trends and Forecast to 2028 in its database, which depicts a systematic picture of the market and provides an in-depth explanation of the various factors that are expected to drive the growth of the market. The Universal Debt Consolidation Market Research Report is the high quality report containing in-depth market research. It presents a definitive solution to obtain market insights with which the market can be visualized clearly and thus important decisions for the growth of the business can be taken. All data, facts, figures and information covered in this business document are supported by renowned analytical tools including SWOT analysis and Porter’s five forces analysis. A number of steps are used while preparing the debt consolidation report by taking advice from a dedicated team of researchers, analysts and forecasters.

Get | Download Sample Copy with TOC, Charts and List of Figures @ https://www.marketresearchintellect.com/download-sample/?rid=333893

The predicted sale of a product is also included in this Debt Consolidation market report which helps market players to bring new products to market and avoid errors. It suggests which parts of the business need to be improved for the business to succeed. It’s also easy to discover a new chance to stay ahead of the market, and this market research report provides the latest trends to help you place your business in the market and gain a significant advantage. .

One of the crucial parts of this report includes Debt Consolidation industry leading vendor’s discussion of brand summary, profiles, market revenue, and financial analysis. The report will help market players to develop future business strategies and learn about the global competition. A detailed market segmentation analysis is done on producers, regions, type and applications in the report.

Key Players Covered in the Debt Consolidation Markets:

  • Marcus of Goldman Sachs (USA)
  • OneMain Financial (USA)
  • Discover personal loans (USA)
  • Lending Club (USA)
  • Payment (US)

Global Debt Consolidation Market Segmentation:

Debt Consolidation Market Breakdown by Type:

  • Credit card debt
  • Overdrafts or borrowings

Debt Consolidation Market Split By Application:

The analysis of the study has been carried out around the world and presents the current and traditional growth analysis, competition analysis and growth prospects of the central regions. With industry standard analytical accuracy and high data integrity, the report offers an excellent attempt to highlight major opportunities available in the global Debt Consolidation Market to assist players in establishing strong positions in the market. Buyers of the report can access verified and reliable market forecasts including those regarding the overall Global Debt Consolidation Market size in terms of sales and volume.

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Scope of Debt Consolidation Market Report

Report attribute Details
Market size available for years 2022 – 2030
Base year considered 2021
Historical data 2018 – 2021
Forecast period 2022 – 2030
Quantitative units Revenue in USD Million and CAGR from 2022 to 2030
Segments Covered Types, applications, end users, and more.
Report cover Revenue Forecast, Business Ranking, Competitive Landscape, Growth Factors and Trends
Regional scope North America, Europe, Asia-Pacific, Latin America, Middle East and Africa
Scope of customization Free report customization (equivalent to up to 8 analyst business days) with purchase. Added or changed country, region and segment scope.
Pricing and purchase options Take advantage of personalized purchasing options to meet your exact research needs. Explore purchase options

Regional Debt Consolidation Market Analysis can be represented as follows:

This part of the report assesses key regional and country-level markets on the basis of market size by type and application, key players, and market forecast.

Based on geography, the global debt consolidation market has been segmented as follows:

    • North America includes the United States, Canada and Mexico
    • Europe includes Germany, France, UK, Italy, Spain
    • South America includes Colombia, Argentina, Nigeria and Chile
    • Asia Pacific includes Japan, China, Korea, India, Saudi Arabia and Southeast Asia

For more information or query or customization before buying, visit @ https://www.marketresearchintellect.com/product/global-debt-consolidation-market-size-and-forecast/

About Us: Market Research Intellect

Market Research Intellect provides syndicated and customized research reports to clients across various industries and organizations with the aim of providing personalized and in-depth research studies.

Our advanced analytical research solutions, personalized advice and in-depth data analysis cover a range of industries including energy, technology, manufacturing and construction, chemicals and materials, food and beverages . Etc

Our research studies help our clients make superior data-driven decisions, understand market forecasts, take advantage of future opportunities and maximize efficiency by working as a partner to deliver accurate and valuable insights without compromise.

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Panama City Debt Consolidation Lawyers Point to Rise in Bankruptcy Filings https://stansmithloans.com/panama-city-debt-consolidation-lawyers-point-to-rise-in-bankruptcy-filings/ Fri, 29 Apr 2022 16:16:21 +0000 https://stansmithloans.com/panama-city-debt-consolidation-lawyers-point-to-rise-in-bankruptcy-filings/ Panama City, Florida — Bankruptcy Attorneys in Panama City Martin Lewis and Steven Jurnovoy are committed to helping clients in difficult financial circumstances navigate the bankruptcy process as quickly and comfortably as possible. Lewis & Jurnovoy keep tabs on major bankruptcy changes and patterns in the United States in order to work more efficiently, as […]]]>

Panama City, FloridaBankruptcy Attorneys in Panama City Martin Lewis and Steven Jurnovoy are committed to helping clients in difficult financial circumstances navigate the bankruptcy process as quickly and comfortably as possible. Lewis & Jurnovoy keep tabs on major bankruptcy changes and patterns in the United States in order to work more efficiently, as well as informing their community of potential changes. Although still weaker than in 2021, the number of bankruptcy filings in the United States has increased this year.

After rising slightly from January to February, bankruptcy filings rose sharply from February to March, according to Epiq, a legal research organization. In fact, commercial deposits increased 26% and consumer deposits increased 34% from February to March. Despite this substantial month-over-month spike, bankruptcy filings declined from year-ago levels. In terms of new deposits, the first quarter of 2022 compared to the corresponding period in 2021 showed a decline of 17%.

Another factor in the increase in deposits last month could be that organizations and individuals were forced to seek debt relief after some government COVID relief programs ended. “Amid rising interest rates, growing inflation concerns, labor shortages and supply chain challenges, access to bankruptcy is imperative for consumers and struggling businesses,” said American Bankruptcy Institute Executive Director Amy Quackenboss.

The experienced bankruptcy lawyers at Lewis and Jurnovoy work diligently to identify the best possible financial solutions for every customer who walks through their doors. The company specializes in debt consolidation and bankruptcy assistance and offers free consultations to its clients. For more details on debt relief or filing for bankruptcy in Panama City or nearby communities, call the Lewis and Jurnovoy office at (850) 913-9110 or visit them online anytime at www.LewisandJurnovoy.com.

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

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

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How to Get a Debt Consolidation Loan for Bad Credit https://stansmithloans.com/how-to-get-a-debt-consolidation-loan-for-bad-credit/ Fri, 22 Apr 2022 19:53:01 +0000 https://stansmithloans.com/how-to-get-a-debt-consolidation-loan-for-bad-credit/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. If your credit isn’t great and you’re […]]]>

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

If your credit isn’t great and you’re struggling to pay off your debts, a bad credit debt consolidation loan can help. Learn how to qualify. (iStock)

If you’re struggling to pay off multiple debts, a debt consolidation loan can help by consolidating all of your debts into one loan, streamlining repayment and often lowering your interest costs.

A low credit score shouldn’t stop you either. You can find debt consolidation loans for bad credit, although you may pay a higher rate than borrowers with higher credit scores.

Here’s how to get a debt consolidation loan for bad credit – and some other debt repayment options you might consider.

If you’re looking for a loan to consolidate your debt, visit Credible to see your prequalified personal loan rates.

1. Check your credit

You should always check your credit before applying for a loan. Not only will your credit history and credit score affect your ability to get a debt consolidation loan, but they will also influence the interest rate and loan terms a lender offers you.

You may be able to get your credit report online for free through your bank or credit union. Some credit card issuers also offer free credit score monitoring. If this is not the case with your bank or credit card company, you can visit AnnualCreditReport.com to request free copies of your reports from each of the three major credit bureaus – Equifax, Experian and TransUnion.

Once you have your report, go through it line by line. If you spot any errors — things like accounts you don’t recognize, misreported late payments, or unrecognized debts in collections — alert the office you pulled the report from. Fixing these issues could improve your credit score and help you get a lower rate on a loan.

2. Improve your debt ratio

Your debt-to-equity ratio — or how much of your monthly take-home pay goes to your credit cards, loan payments, mortgage, and other debts — also influences your loan options and interest rate.

To improve your chances of getting a loan with an affordable interest rate, take steps to improve your DTI ratio before you apply. Paying off some of your debts is a good place to start, or you could ask your boss for a raise to boost your income. Taking a side gig or more hours at work can also help you pay off some of your debt sooner.

Consider adding a co-signer

You can also consider adding a co-signer to your loan. As long as they have good credit, it could help you get a loan (and potentially get better rates too). Just make sure your co-signer understands the obligations that come with co-signing a loan: if you don’t make your payments, they’ll be responsible for making them instead. If they don’t repay the loan, it could hurt your credit scores or lead to collection attempts.

3. Compare debt consolidation loan rates

Comparing interest rates is essential when getting a debt consolidation loan, as it directly affects both your monthly payment amount and the long-term costs of the loan.

Lenders can vary widely on the interest rates they offer, so be sure to consider at least a few different companies for your debt consolidation loan. The lower your interest rate, the more money you’ll save in the long run and the lower your monthly payments will be.

Credible allows you compare personal loan rates from various lenders, and it won’t affect your credit score.

Benefits of a debt consolidation loan

A debt consolidation loan, sometimes called The credit card consolidation loan can offer many advantages:

How to qualify for a debt consolidation loan

Each lender has their own requirements for a debt consolidation loan, but here are the factors that generally come into play when evaluating your loan application:

If you don’t meet all of the above requirements, be sure to contact multiple lenders and shop around. Since lender requirements vary widely, you may still qualify for a debt consolidation loan with bad credit.

You can use Credible to compare personal loan rates from different lenders in minutes.

Alternatives to Debt Consolidation Loans for Bad Credit

Debt consolidation loans aren’t your only option if you want to pay off your debts more efficiently. If you can’t qualify or can’t get an affordable rate, consider these alternatives:

Home equity loan or home equity line of credit (HELOC)

If you’re a homeowner, you may be able to tap into the equity in your home to pay off your debts using a home equity loan or home equity line of credit (HELOC). The big advantage here is that home equity loans – and most mortgages for that matter – tend to have much lower interest rates than other financial products, including credit cards and personal loans. . HELOCs also have relatively low interest rates, but they work more like a credit card – you get a revolving line of credit that you can use as needed.

However, these financial products involve risks. For one thing, they’re using your home as collateral, so if you don’t repay the loan, you could put your home at risk of foreclosure. Also, if your home loses value, you could end up owing more on your loan than the property is worth. This is called being upside down on your mortgage.

Sign up for a debt management plan

A debt management plan, or DMP, is another option to consider. You can find them through credit counseling agencies and debt relief companies.

With a debt management plan, you will make a one-time payment to the debt relief company each month, and then the credit counselor or debt relief professional will pay your individual creditors on your behalf. DMPs can sometimes lower your interest rate and help you pay off your debts faster.

To learn more about DMPs, contact a debt relief or credit counseling company in your area. the National Credit Counseling Foundation is a good place to start if you’re looking for free nonprofit resources.

Debt settlement

Debt settlement occurs when a creditor (your credit card company, for example) agrees to let you pay off your debt in full, but for less than the balance you actually owe. To do this, you usually have to negotiate directly with your creditor or go through a debt relief company, which will negotiate on your behalf.

While debt settlement has its benefits (you pay off your debt for less than you owe), it can also have some downsides. You may have to pay high fees if you go through a debt settlement company. On top of that, it can also hurt your credit score, which can limit your financial options in the future.

Bankruptcy

As a last resort, you can also consider filing for bankruptcy, which could erase many of your debts. But keep in mind that you could also lose assets in the process, like your car.

Bankruptcy will stay on your credit report for seven to 10 years, depending on which type you file for. This stain could hamper your ability to get a loan or even secure an apartment for many years to come. For these reasons, you should only consider bankruptcy as an absolute last resort.

If you are considering going bankrupt, talk to a financial adviser or seek advice from a bankruptcy attorney. They can help you make the best decision for your finances now and in the long term.

A debt consolidation loan is the first step

Getting a debt consolidation loan can help you tackle your debts – often in a more affordable and effective way – but you’ll also need to get to the root of the problem and figure out what caused your debt. credit card debt in the first place.

If you need help budgeting or learning how to better control your spending, talk to a credit counselor. You can also hire a financial planner to help you manage your finances or meet your savings and investment goals.

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Does debt consolidation improve your credit rating? https://stansmithloans.com/does-debt-consolidation-improve-your-credit-rating/ Thu, 21 Apr 2022 14:35:30 +0000 https://stansmithloans.com/does-debt-consolidation-improve-your-credit-rating/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Debt consolidation can help your credit, depending […]]]>

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

Debt consolidation can help your credit, depending on how you manage your loan repayment. But it can also hurt your credit, at least initially. (Shutterstock)

Debt consolidation is the process of combining multiple outstanding balances into one account. You can do this through a credit card balance transfer, personal loan, or line of credit, which makes your debt more manageable and even saves you money by reducing service charges. ‘interest.

But debt consolidation can also affect your credit. Here’s an overview of how it can improve your credit, how it can potentially hurt your credit score, and different ways to consolidate your debt.

Credible allows you view your prequalified personal loan rates from various lenders, and it will not affect your credit score.

How Debt Consolidation Can Help Your Credit

A debt consolidation loan can help you build or improve your credit rating in several ways:

  • This can lead to a faster gain. When you consolidate your debts into one account, you may be able to lower your interest rate or your monthly payments. This could allow you to pay off more of your balance each month than when juggling multiple accounts, allowing you to get out of debt faster. And the sooner you reduce your balance, the better your credit rating will be.
  • This can reduce your use of credit. Your credit utilization ratio is the amount of credit you are using compared to the amount of available credit you have. By moving your debt from, say, one credit card at most to a new line of credit, you reduce the use of your credit for that account. Depending on the amount of your previously available credit limit, your score could increase.
  • This can increase your credit mix or your payment history. If you only have credit cards on your credit report, adding a personal loan account could add to your credit mix, which can boost your score when making payments on time.

How Debt Consolidation Can Hurt Your Credit

Streamlining your debt comes with many financial benefits. But debt consolidation can also hurt your credit in many ways :

  • Hard credit draws can lower your score. Lenders will do a thorough investigation when considering your application for a new loan or credit-based product. This can temporarily lower your credit score by a few points. The more difficult requests you have in a short period of time, the more you can expect your score to drop.
  • The new credit affects the average age of your accounts. If you take out a new loan or line of credit to consolidate your existing debt, it will reduce the average age of your credit accounts, which can also lower your score.
  • This may affect your total available credit. If you transfer multiple balances to a new type of credit – a balance transfer card, for example – and then cancel paid cards, this reduces the total amount of credit you have. This can negatively affect your credit utilization rate.

Fortunately, the effects of debt consolidation are usually short-lived. By making your new loan payments on time and reducing what you owe, any temporary change in your credit score will usually begin to correct itself within a few months.

What constitutes your credit rating?

Technically, you have many different credit scores, depending on the scoring model used by a lender. The most commonly used scoring model is FICO, provided by the Fair Isaac Corporation.

FICO considers these factors when calculating your score:

  • Payment history (35%) — Your payment history is the most important factor that determines your credit score. An on-time payment history shows lenders that you are more likely to repay a loan.
  • Amount due (30%) — This is the total amount of credit you owe compared to your available credit.
  • Average age of accounts (15%) — This includes how long you’ve been managing your credit-based accounts, the age of your oldest account, the age of your newest account, and how long you haven’t used certain accounts.
  • New lines of credit (10%) — Lenders also consider accounts with a short history and recent applications for new credit.
  • Composition of credit (10%) — Your credit mix is ​​the different types of credit-based accounts you own and manage, such as car loans, credit cards, and student loans.

If you want to see what rates you might qualify for without hurting your credit, visit Credible for compare personal loan rates from various lenders in minutes.

How to Build Your Credit Score After Taking Out a Debt Consolidation Loan

If you take out a debt consolidation loanHere are some things you can do to boost your credit score:

Personal loan or credit card with balance transfer: which one to choose?

Taking out a personal loan and transferring balances to an existing credit card account are two popular options for consolidating debt. But what is the best choice?

The answer really depends on how much you owe, your available credit, and the interest rate you qualify for. For example, if you have multiple accounts and higher balances, subscribing to a A $20,000 personal loan can be more cost effective than transferring six different balances and paying credit card balance transfer fees each time.

Personal loans

Advantages

  • You’ll repay the loan in fixed monthly installments, which can make budgeting easier rather than juggling multiple credit card balances.
  • They usually come with lower rates than credit cards.
  • They can facilitate the consolidation of multiple debts and balances.

The inconvenients

  • They may have higher credit score requirements to qualify.
  • They do not have a 0% introductory interest rate.
  • These are not revolving credit products, so you cannot withdraw more money from them in the future, even after your balance has been paid off. If you need additional funds, you will need to apply for a new personal loan.

Balance transfer credit card

Advantages

  • They usually offer 0% introductory APRs with no balance transfer fees for a certain period of time, which can save you a lot of money upfront.
  • They can include cards you already have, helping you avoid opening new accounts or difficult credit applications.

The inconvenients

  • They often revert to double-digit interest rates once the promotional period ends, and can get very expensive if you don’t pay off the balance in full by then.
  • They may incur charges for each balance you transfer to the card.

Other Ways to Consolidate Debt

You can use several different financial products and approaches to consolidate your debt. Here are some of the most common:

Why taking out a debt consolidation loan can save you money

When it comes to getting out of debt – what does it entail credit card balancesmedical bills or other credit accounts – taking out a personal loan for debt consolidation can be a good option.

A personal loan can help reduce high interest rates (especially when it comes to credit card balances), making it easier to pay off your debt for a lower total cost. It also lets you streamline your debt into one account with one monthly payment, which is easier to manage.

Finding the right personal loan is the first step towards debt consolidation.

If you’re ready to apply for a personal loan to consolidate your high-interest debt, visit Credible for quick and easy compare personal loan rates from various lenders in minutes.

]]> Advantages and disadvantages of debt consolidation https://stansmithloans.com/advantages-and-disadvantages-of-debt-consolidation/ Thu, 14 Apr 2022 16:53:10 +0000 https://stansmithloans.com/advantages-and-disadvantages-of-debt-consolidation/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. If you have high-interest debt, it may […]]]>

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

If you have high-interest credit card debt, have trouble making loan payments, or have trouble keeping up with multiple payment due dates, debt consolidation may be right for you. a good option, especially if your credit score has improved since you took out your loans.

While consolidating high-interest debt with a personal loan or balance transfer credit card might make sense in some situations, it’s not for everyone. Let’s dive deeper into how debt consolidation works, along with some pros and cons you’ll want to consider.

Credible allows you view your prequalified personal loan rates in minutes.

What is debt consolidation?

Debt consolidation involves taking out a new loan and using the funds to pay off your original debt. You can consolidate your debt with a personal loan, balance transfer credit card, home equity loan, or home equity line of credit (HELOC). Here are some common types of debt consolidation.

Debt consolidation with a personal loan

If you pursue debt consolidation with a personal loan, you can lower your interest rate, improve your loan terms, and streamline your monthly payments. You can find debt consolidation loans at banks, credit unions and online lenders. If you can get a personal loan with a lower interest rate, you may find it easier to pay off high-interest debt and get out of debt faster.

You can compare personal loan rates from various lenders using Credible, and it will not affect your credit score.

Debt consolidation with a balance transfer credit card

When you consolidate credit card debt With a balance transfer credit card, you sign up for a new credit card, ideally with a low interest rate or 0% APR introductory offer for a certain period. Then you transfer your existing card balances to the new card and make one payment per month.

Debt consolidation with a home equity loan or HELOC

Consolidating debt with a home equity loan or home equity line of credit (HELOC) may be an option if you have positive home equity (the difference between what you owe on your mortgage and the value current home).

If you are approved for a home equity loan, you will receive a lump sum of money up front and can then use the money to pay off your existing debts. Then you’ll start making home equity loan payments on the amount you borrowed, plus interest. HELOCs are also a type of second mortgage, but they are a line of credit that you can draw on as needed, up to your credit limit.

If you use one of these options to consolidate your debts, you may be able to get a lower interest rate than a debt consolidation loan because your home will act as collateral to secure the loan.

Advantages of debt consolidation

A part of the most notable benefits of debt consolidation include:

You can get a lower rate

The biggest advantage of debt consolidation is that you can lock in a lower interest rate and save a lot of money in interest. Depending on the strategy you choose and the amount of your debt, this can be hundreds or even thousands of dollars. You can use this extra money to pay off your debt faster, increase your emergency fund, or achieve any other short- or long-term financial goals.

You will only have one monthly payment

Keeping up with multiple monthly payment schedules is not easy. Debt consolidation allows you to combine your debts into one new monthly payment with a fixed interest rate that will remain the same for the duration of the loan (or during the promotional period with a balance transfer card). Simplifying your debt repayment can give you a clearer path to debt relief sooner and make the process less overwhelming.

You can get out of debt faster

If you consolidate your debt at a lower rate, you can use the money you save on interest to get out of debt faster. You’ll be able to apply the money saved in interest to your remaining balance and shorten your repayment term, which can help you save even more. To really speed up your debt repayment mission, try getting a balance transfer card with a 0% APR introductory offer.

Disadvantages of debt consolidation

Before going ahead with debt consolidation, consider these disadvantages:

You may need to pay a fee

The lender and the debt consolidation strategy you choose will determine the type of fees you may be responsible for. If you take out a personal loan, for example, you’ll likely have to pay an origination fee or an application fee to process the loan. Consolidation with a balance transfer card typically comes with a balance transfer fee of 3% to 5% of the amount you transfer, while debt consolidation with a home equity loan may include closing costs.

You are not guaranteed a lower interest rate

In a perfect world, you’d be able to lock in a lower interest rate on a personal loan, balance transfer card, or home equity loan so you could really save when you consolidate debt. But the reality is that the lowest rates are reserved for those with strong credit. If you have fair or bad credityou may find it difficult to qualify for the low interest rate that makes debt consolidation attractive.

Your debt may return

Debt consolidation is a strategy to help you get out of debt. If you tend to overspend, your debt may come back. While debt consolidation may be a smart move if you’re currently in debt and want to get out of it, it won’t solve the root of the problem or solve any spending or saving issues you may have.

When debt consolidation makes sense

Debt consolidation can be interesting if:

  • You have strong credit and may qualify for a lower interest rate. If you have good or excellent credit and can get a lower rate than you’re currently paying, debt consolidation can save you money on interest and even help you pay off your debt longer. rapidly.
  • You want to simplify the payment process. If you have several monthly payments with their own due dates and you decide to consolidate your debts, you will only have to worry about one payment.
  • You work hard to control your spending. If you used to spend too much, but are taking steps to manage your budget and living within or below your means, debt consolidation can help you achieve a debt-free lifestyle.

Of course, debt consolidation doesn’t make sense in some scenarios. If you have a small debt that you can pay off quickly, it’s probably not worth it, especially if you have to pay fees.

If you don’t have the best credit or your credit score is lower than when you originally incurred your debt, you may have difficulty getting approved for a low interest rate or credit card. loan or balance transfer that actually allows you to pursue debt consolidation. .

How to get a debt consolidation loan

If you want to take out a debt consolidation loan, follow these steps:

  1. Check your credit score. Go to a website that offers free credit scores (like AnnualCreditReport.com). You can also request your credit score from your lender, credit card issuer, or credit counselor. This way, you know where your credit stands and have an idea of ​​what kind of interest rate you might qualify for.
  2. List your debts and payments. Create a list of all the debts you want to consolidate, including credit cards, payday loans, store cards, and any other high-interest debt. Add them up to find out how much debt you have and how much debt consolidation loan you need.
  3. Shop around and compare options. Explore debt consolidation loans from various banks, credit unions and online lenders. Compare the rates, terms, and fees of each option to make the best decision for your unique situation.
  4. Apply for a loan. Once you are ready to apply for a loan, complete the application online or in person. Be prepared to submit documents such as your government-issued ID, W-2s, pay stubs, and bank statements.
  5. Close the loan and make the payments. If the lender is paying your creditors for you directly with the funds from your debt consolidation loan, check your accounts to make sure they are paid. If the lender does not pay the creditors directly, you will have to repay each debt with the money you receive.

If you are ready to apply for a debt consolidation loan, Credible allows you to compare personal loan rates from various lenders, all in one place.

Does debt consolidation affect your credit?

Debt consolidation can temporarily take a toll on your credit. When you apply for a personal loan or balance transfer card, the lender will do a thorough credit check, which can lower your credit score by a few points. Additionally, when you open a new credit account and reduce the average age of your account, your credit score will likely decrease as well.

The good news is that debt consolidation can also improve your credit. Since this will reduce your credit utilization rate, or the amount of available credit you use, you may be able to counter some of the negative effects of opening a new account. Plus, if you commit to making full payments on time each month, you’ll improve your payment history and boost your credit score while you’re at it.

What credit score do you need to get a debt consolidation loan?

Credit score requirements for debt consolidation loans vary by lender. But in most cases, you’ll need a credit score of at least 650. If your score is lower, don’t worry. Some debt consolidation lenders can accept credit scores of 600 or even lower. Remember that a lower credit score will likely mean a higher interest rate, which could frustrate your debt consolidation plan.

]]> Should you use a home equity loan for debt consolidation? https://stansmithloans.com/should-you-use-a-home-equity-loan-for-debt-consolidation/ Mon, 11 Apr 2022 07:00:00 +0000 https://stansmithloans.com/should-you-use-a-home-equity-loan-for-debt-consolidation/ Debt consolidation loans are an effective way to eliminate those pesky debt balances faster. There are several types of debt consolidation loans to choose from, but a home equity loan might be ideal. It allows you to borrow against Equity in your homewhich is the difference between the current market value of your property and […]]]>

Debt consolidation loans are an effective way to eliminate those pesky debt balances faster. There are several types of debt consolidation loans to choose from, but a home equity loan might be ideal. It allows you to borrow against Equity in your homewhich is the difference between the current market value of your property and the amount you owe on your mortgage.

A home equity loan can mean you’ll get a lower interest rate than a personal loan and a longer payment period. If you can repay the loan and have good or excellent credit, a home equity loan may be a good option.

These loans aren’t without risk, however, so you need to weigh all your options to decide if a home equity loan is best for consolidating your debt.

Should I use a home loan to consolidate my debts?

Since home equity loans and home equity lines of credit (HELOCs) generally have low interest rates, they are good for homeowners who could save money by refinancing interest rate debt. high at a lower interest rate. For example, you might be able to pay off a 16% APR credit card with a 4% APR home loan.

Home equity loans and home equity lines of credit are best suited for those with significant equity in their home, usually at least 15-20%. The equity in your home can be one of your most important assets; the more you build, the more cash you have access to through loans and lines of credit.

“Borrowers who are serious about paying off their unsecured debt should consider a home equity loan for debt consolidation,” says Laura Sterling, vice president of marketing for Georgia’s Own Credit Union. “If a consumer has significant equity in their home, has the discipline to stay within their means when it comes to borrowing, and is in good financial health, this is usually a beneficial option.”

However, using home equity to consolidate debt isn’t the right choice for everyone, especially if you aren’t responsible for managing or paying off the debt. If you make late payments on a home loan, you could put your home at risk of foreclosure. And since most HELOCs have variable interest rates, you should plan for the possibility of higher monthly payments.

Benefits of Using Home Equity for Debt Consolidation

Using the equity in your home for debt consolidation can be a smart move for a number of reasons.

Simplified payment

When you consolidate your debt using the equity in your home, you can make your life easier.

“Many people struggle with juggling multiple bills each month and making sure they’re all paid on time,” says Joseph Toms, president and chief investment officer of Freedom Financial Asset Management, a debt relief firm. the debt. “Having only one payment to make can alleviate stress and help many people secure payment on time.”

Why it matters: Simplifying your finances is always a good thing. Having only one monthly payment decreases your chances of missing a payment.

Lower interest rate

A home equity loan usually carries a lower interest rate than other types of loan products because your home serves as collateral for the loan. If you have outstanding debt on a credit card, personal loan, student loans, or other debt, consolidating with a home equity loan could make paying off those debts less expensive.

Why it matters: A lower interest rate means less total interest paid over the life of the loan.

Make lower monthly payments

Using a home equity loan for debt consolidation will generally lower your monthly payments since you will likely have a lower interest rate and a longer loan term. If you have a tight monthly budget, the money you save each month might be just what you need to get out of debt.

Why it matters: Lower monthly payments can make paying off debt more reasonable on a tight budget. However, extending the term of your loan could result in you paying more interest overall.

Disadvantages of Using Home Equity for Debt Consolidation

While a home equity loan for debt consolidation may work for some people, it’s not necessarily the best choice for everyone.

Your home is guaranteed

The main consideration in using the equity in your home for debt consolidation is that your home serves as collateral for a home equity loan. This means that if you fail to repay your new home equity loan, you risk being foreclosed. If you’re having trouble making existing payments, you may want to find other ways to consolidate your debt.

Why it matters: A home equity loan is secured by your home, so if you fall behind on payments, you risk losing your home.

Increase in indebtedness

While a home equity loan can consolidate your debt, it’s only helpful if you limit the expenses that caused that debt to accumulate in the first place. For example, if you have a mountain of credit card debt, you pay it off, and you continue to rack up more credit card debt, you are making your debt worse. Now you will have to pay a home equity loan as well as credit card payments.

Why it matters: If you consolidate your debt before you resolve the underlying issues that led you into debt, you may find yourself back where you started.

Possible costs

Since a home equity loan uses the current value of your home to calculate how much you can borrow, you may have to pay for a new appraisal of your home. Because a home equity loan is considered a second mortgage, you may also have to pay closing costs. If you have a lot of debt to consolidate, paying that extra fee might still make sense, but it’s wise to compare the fees you’d have to pay with the amount you’d ultimately save in interest.

Why it matters: Make sure the debt consolidation fees don’t exceed the savings.

How can I get a home loan for debt consolidation?

The home equity loan and HELOC application process is similar to what you went through when you applied for a mortgage. These are usually:

  • Get pre-approved to assess your borrowing capacity
  • Complete a formal loan application
  • Submit income and employment information, as well as any additional documents the underwriter needs to process the loan application
  • Have your house appraised
  • Review and sign closing documents
  • Receive loan proceeds (home equity loan) or access a revolving line of credit (HELOC)

“The process can take up to 60 days, similar to a mortgage refinance,” says Vikram Gupta, home equity manager for PNC Bank. “At closing, the lender can often send debt payments directly to other lenders and consolidate the debt into the new home equity loan.”

Remember that the way you pay off a home equity loan and HELOC differs. With a home equity loan, the interest rate is fixed and you will pay in equal monthly installments over the life of the loan.

However, the interest rate on a HELOC is generally variable and the monthly payment can change over time. The loan begins with a drawdown period typically lasting 10 years, during which the borrower can draw on the line of credit as needed and pay only the interest. Once the draw period ends, the redemption period begins. The borrower then begins to pay both capital and interest for a term that generally lasts 20 years.

Sterling says that while HELOCs offer more flexibility, home equity loans offer the stability of fixed-rate payments for those who know how much they need to borrow.

Other Ways to Consolidate Debt

A home equity loan is not the only choice you have for debt consolidation. Before choosing it, compare all your options.

  • Personal loans: Even though personal loans carry higher interest rates than home equity loans, they don’t carry the weight of your home with them. If an emergency arises and you can’t make payments, you won’t lose your home with a personal loan.
  • Balance transfer credit cards: If the majority of your debt comes from credit cards, you can transfer your balances to a balance transfer credit card at 0% APR. These offers are usually temporary, but they can give you plenty of time to move your balances and pay them off without the additional interest charges. Keep in mind that not all card issuers will approve your full balance; if you have a lot of debt, you may still have to pay off some of your old cards with interest.
  • Debt management plans: Nonprofit credit counseling agencies can work with you to create a plan that best suits your finances. They’ll negotiate your rate and payment with lenders so you can get a plan that won’t put you in a financial bind. You will make a monthly payment to the counseling agency and then they will pay off your debt for you.

How to start?

If you’ve decided that a home equity loan is your best option for consolidating your debt, start by comparing lenders, offers, rates and terms. If you can’t get better terms or a lower interest rate than you have on your existing debt, keep looking at what other lenders are offering. Having a plan for how you’ll tackle high-interest debt — and how you’ll pay off your home equity loan, or HELOC — can prepare your finances for a more secure future.

Change in prices Icon showing rates changing over time.

Get the best home equity rates in your area.

]]> Budget improves pace of debt consolidation, but warns of economic uncertainty https://stansmithloans.com/budget-improves-pace-of-debt-consolidation-but-warns-of-economic-uncertainty/ Thu, 07 Apr 2022 23:39:43 +0000 https://stansmithloans.com/budget-improves-pace-of-debt-consolidation-but-warns-of-economic-uncertainty/ Finance Minister Chrystia Freeland tables the federal budget in the House of Commons in Ottawa on April 7.Adrian Wyld/The Canadian Press The federal government is promising to put the country’s finances back on solid footing after a period of explosive spending growth, while warning that the pace of fiscal consolidation could be thrown off balance […]]]>

Finance Minister Chrystia Freeland tables the federal budget in the House of Commons in Ottawa on April 7.Adrian Wyld/The Canadian Press

The federal government is promising to put the country’s finances back on solid footing after a period of explosive spending growth, while warning that the pace of fiscal consolidation could be thrown off balance by mounting global economic turmoil.

Thursday’s budget starts from a better place than expected, with the fiscal year 2021-22 deficit coming in at $113.8 billion, about $30 billion better than projected in the December update. of the government. It’s the result of rapid economic growth resulting from pandemic shutdowns and skyrocketing inflation, which has driven up prices for consumers but also put more tax money in government coffers.

Deficits are expected to decline over the next five years, and the federal debt-to-GDP ratio is expected to decline steadily to 41.5% by 2027 from 46.5% in 2021.

Kelli Bissett-Tom, Canada rating analyst at Fitch Ratings, said the federal government’s debt reduction trajectory is moving in a positive direction. At the same time, the government still has a long way to go to consolidate the huge debt accumulated during the pandemic, she said.

“Given the current level of federal debt, we are unlikely to see any rapid consolidation. But certainly this [budget]in conjunction with more positive provincial results than previously expected, … supports a gradual, but better than expected, downward trajectory,” she said.

In 2020, Fitch downgraded Canada’s credit rating by one notch to AA+. Other debt rating agencies, including S&P Global Ratings and Moody’s, maintained their highest rating for Canada.

The trajectory of government debt comes with caveats. Basically, the global economy is entering a period of high volatility due to rapid monetary policy tightening and heightened geopolitical uncertainty, which could deflect the fiscal path.

Central banks embarked on the most aggressive cycle of raising interest rates in decades in an effort to rein in high inflation. At the same time, the war in Ukraine has driven up commodity prices sharply and disrupted supply chains that still face challenges caused by the COVID-19 pandemic.

The government’s central economic scenario is based on a February survey of private sector economists. These figures look increasingly outdated given Russia’s invasion of Ukraine and central banks’ hawkish turn over the past month.

The rapidly changing economic outlook has led the government to include two alternative scenarios in the budget. In the downside forecast, if the war in Ukraine drags on and central banks become hyper-aggressive in raising interest rates, it could trigger a major economic shock that could reduce the real GDP growth in 2022 and 2023 and increasing unemployment. by 0.7 percent. This would put the debt-to-GDP ratio back on an upward trajectory for several years, before starting to fall again.

Rebekah Young, director of fiscal and provincial economics at the Bank of Nova Scotia, said this downside scenario is unlikely given that Canadian household balance sheets are generally in good shape as they emerge from the pandemic. . But she said the government was right to think about downside risks.

“It speaks to the challenge of creating a budget right now because you can think of so many possible events that could happen. We now have a global conflict, we still have a pandemic. We have runaway inflation and this political risk, so there are easily five different scenarios that are less desirable,” Ms Young said.

One of the main points of uncertainty is the cost of servicing the debt. As the government’s debt load has skyrocketed during the pandemic — to $1.16 trillion in fiscal year 2021-22 from around $721 billion in 2019-20 — the service charge for the debt remained low, thanks to the ultra-low interest rates maintained by the Bank of Canada.

Now, rates are expected to rise rapidly, which will increase debt service costs as the government rolls over maturing bonds and issues new debt. The budget argues that debt servicing costs will remain manageable, rising to $42.9 billion by 2026-27 (1.4% of GDP), from $26.9 billion in 2022-23 (about 1% of GDP).

However, if rates rise faster and higher, it could add pressure on government finances, said Randall Bartlett, senior director of the Canadian economy at Desjardins.

“The expectation is not just short rates, but long rates will start to rise, and in a significant way that we haven’t really seen since the Great Financial Crisis,” he said.

“And if that’s the case, that’s really where the rubber is going to meet the road, in terms of public debt charges.” … Because every 100 basis point increase in interest rates has as much impact on the deficit as a 1% drop in GDP, so it’s quite substantial.

Federal budget 2022: what it means for you

Personal finance columnist Rob Carrick explains how the budget seeks to stave off inflation, what it offers for dental care and how a new tax-free savings account aims to give shoppers a boost of a first home.

The Globe and Mail

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What to know about debt consolidation offers https://stansmithloans.com/what-to-know-about-debt-consolidation-offers/ Tue, 05 Apr 2022 21:06:42 +0000 https://stansmithloans.com/what-to-know-about-debt-consolidation-offers/ Many families are in debt. So when an offer comes along to help pay off that debt, it can be tempting to give it a try. But you should be careful. Debt consolidation companies are for-profit companies that can negotiate lower interest rates with your creditors and then consolidate all your debts into one payment. […]]]>

Many families are in debt. So when an offer comes along to help pay off that debt, it can be tempting to give it a try. But you should be careful. Debt consolidation companies are for-profit companies that can negotiate lower interest rates with your creditors and then consolidate all your debts into one payment.

Question: Sandra from Texas City asked if the letter she received about her debt is legitimate. It comes from a company called Credit Associates, LLC. The letter says they recently settled accounts with major banking firms like Chase and Capital One. And if you have an account with these companies, you may be entitled to a reduced settlement of your credit balance.

(Copyright 2021 by KPRC Click2Houston – All rights reserved.)

To respond: We have verified and Credit Associates, LLC is a legitimate business. Their website says typical debt negotiations take about 36 months…so it’s not a quick process. They charge a fixed fee each time a settlement is made and you approve it.

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The Better Business Bureau has a large number of complaints on the business, including ruined credit scores due to late payments by credit associates. People have also complained about confusing terms. One person said: ‘They took more fees than they paid debts’. But there are other people who are satisfied with the service.

How to Check a Debt Consolidation Company Before You Sign Up

You should search for the BBB site for consolidation companies before registering. The biggest red flag is if a debt consolidation company asks for money up front. The Texas Attorney General has a list of things to watch out for if you’re considering debt consolidation. Keep in mind that you can negotiate some of this on your own.

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If you have a question you would like us to answer, email me at askamy@kprc.Com.

Copyright 2022 by KPRC Click2Houston – All Rights Reserved.

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