Finance Debt – Biofera Mon, 20 Jun 2022 20:07:57 +0000 en-US hourly 1 Finance Debt – Biofera 32 32 SoFi Technologies (NASDAQ:SOFI) vs Northern Lights Acquisition (NASDAQ:NLIT) Direct Survey Mon, 20 Jun 2022 20:07:57 +0000

Sofi Technologies (NASDAQ: SOFIGet a rating) and acquisition of aurora borealis (NASDAQ: NLITGet a rating) are both business services companies, but which company is superior? We’ll compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk, and dividends.

Insider and Institutional Ownership

56.5% of SoFi Technologies shares are held by institutional investors. By comparison, 79.5% of the shares of Northern Lights Acquisition are held by institutional investors. 13.0% of SoFi Technologies shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of SoFi Technologies and Northern Lights Acquisition.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Sofi Technologies $984.87 million 5:30 p.m. -$483.94 million ($0.82) -6.95
Acquisition of aurora borealis N / A N / A $1.25 million N / A N / A

Northern Lights Acquisition has lower revenues, but higher profits than SoFi Technologies.


This table compares the net margins, return on equity and return on assets of SoFi Technologies and Northern Lights Acquisition.

Net margins Return on equity return on assets
Sofi Technologies -36.32% -9.24% -4.49%
Acquisition of aurora borealis N / A -58.07% 1.72%

Analyst Recommendations

This is a breakdown of the current ratings and target prices for SoFi Technologies and Northern Lights Acquisition, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Sofi Technologies 0 5 seven 0 2.58
Acquisition of aurora borealis 0 0 0 0 N / A

SoFi Technologies currently has a consensus target price of $14.04, indicating a potential upside of 146.29%. Given SoFi Technologies’ likely higher upside, equity research analysts clearly believe SoFi Technologies is more favorable than Northern Lights Acquisition.


SoFi Technologies beats Northern Lights Acquisition on 5 out of 9 factors compared between the two stocks.

SoFi Technologies Company Profile (Get a rating)

SoFi Technologies, Inc. provides digital financial services. It operates through three segments: lending, technology platform and financial services. The society’s lending and financial services and products allow its members to borrow, save, spend, invest and protect their money. It offers student loans; personal loans for debt consolidation and home improvement projects; and home loans. The company also provides cash management, investment and technology services. Additionally, it operates Galileo, a technology platform that offers services to financial and non-financial institutions; and Apex, a technology platform that provides investment custody and clearing brokerage services, as well as Technisys, a cloud-based digital multi-product core banking platform. The company was founded in 2011 and is based in San Francisco, California.

Northern Lights Acquisition Company Profile (Get a rating)

Northern lights acquisition logoNorthern Lights Acquisition Corp. has no significant activities. It intends to enter into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more companies in the cannabis industry. The company was incorporated in 2021 and is based in New York, New York.

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How to Reduce Credit Card Debt After the Fed’s Rate Hike Fri, 17 Jun 2022 14:00:00 +0000
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It’s the worst debt to carry in good times. It can be oppressive when the economy is struggling with high inflation, a plummeting stock market and rising interest rates.

Do you have credit card debt? Now is the time to come up with a plan to pay off that debt as soon as possible, because it will cost even more.

To bring inflation down, the Federal Reserve raised its key rate by three-quarters of a percentage point, its biggest hike in nearly 30 years. One of the implications of this decision is that interest on credit card debt will increase.

What will the Federal Reserve rate hike mean for consumers?

The average credit card interest rate is now over 20%, according to Matt Schulz, chief credit analyst at Lending Tree. “The worst news for cardholders when the Fed raises rates is that they don’t just raise rates on the things you buy in the future,” Schulz said. “The rate you pay on your current balances also increases, usually within a billing cycle or two.”

Maybe you’ve kept your credit card debt like a pet, pecking it out bit by bit with minimum payments or occasionally throwing extra cash at the balance. Or maybe your financial situation has forced you to rely on credit to make ends meet. Whatever your situation, here are seven ways to reduce your credit card debt in light of this latest Fed rate hike and more increases that are likely to come.

Seven Ways to Financially Prepare for the Economic Recession

1. Stop charging your credit cards. Have you ever heard of the expression “If you’re in a hole, stop digging?” » You should stop using your credit cards if you don’t pay off balances each month. Also consider that whatever you’ve been billing for, whether it’s a TV, dinner, vacation, or clothes, will end up costing you more money in the long run if you keep paying down the debt. .

The share of credit card revolvers, or those who carry a monthly balance, rose 0.6 percentage points to 40.1% nationally in the fourth quarter of 2021, the American Bankers Association reported on last month. The Fed has said it expects more rate hikes if it can’t get inflation under control.

“What really matters is that all of these rate hikes come on top of potential multi-percentage-point increases in credit card rates in a single year,” Schulz said. “So many people’s financial margin of error is tiny anyway. The last thing they need with their grocery bills and rising gas prices is for their credit card interest rates to rise.

What the Federal Reserve’s interest rate hike means for mortgages

2. Start paying the smallest balance. The question I often get when it comes to credit card debt is, should I pay off my credit cards with the highest interest rate first or the one with the lowest balance first?

On paper, the logical method would be to go into debt at the highest interest rate. But what works on paper doesn’t always work in practice. The debt reduction method that I recommend is what I call the “debt dash method”. With this, like a 100-yard dash, the goal is to make a super-fast run to debt.

In my experience I have helped hundreds of people pay off their credit card debt, their motivation to get rid of debt increases when they get a quick win. The result is that they become more aggressive in tackling what remains of the debt, ultimately paying less interest charges than if they had started with the card with the highest interest rate. Part of the battle for debt reduction is sticking to a plan.

With the debt dash, you list all your debts starting with the one with the lowest balance. Then, use any extra cash you can find to apply it to that first card on your list while making minimum payments on all other debts. Once you’ve eliminated that card, move on to the next one on your list, and so on. If two cards have a similar balance, the one with the higher interest rate gets priority processing.

Have you been plagued by series of debt troubles?

3. Transfer balances to a zero percent card. If you have good credit, you may qualify for an offer that lets you transfer your balances to a card with zero percent interest for a limited time. Zero percent balance transfer offers are still plentiful, Schulz said. “We’re even seeing a few select cards offering a full 24 months interest-free,” he said.

But as the Fed continues to raise rates and delinquency rates rise, those offers are likely to disappear, Schulz said. Instead of being able to find offers for 15 to 20 months interest-free, consumers may end up finding zero percent interest for 9 to 12 months, he said.

According to Ted Rossman, senior industry analyst at and “The average FICO score is 716, so most people should be able to qualify,” he said.

Balance transfer credit cards can be a good deal for some people

4. Talk to your credit card issuer. Talking ain’t cheap when it comes to credit card debt. Many borrowers struggling with the weight of their Debts never ask for help, according to Bruce McClary, senior vice president of membership and communications at the National Foundation for Credit Counseling.

Before calling your creditor, check your credit report and credit score, McClary said. It helps to know the strength of your negotiating position. “You want to make sure you know exactly what you’re going to say to the creditor, to start the conversation about finding more affordable options,” he said. “Use a high credit score to your advantage.”

Here’s everything I did to get a perfect 850 credit score

Maybe when you first got your card your credit history wasn’t great, so you were offered a card with a high rate. But with on-time payments, you could now qualify for more affordable terms or even an interest-free credit card rate, McClary said.

“It’s a huge win because then you can start planning the power to pay off the balance while you have that interest-free repayment period,” he said. “But these offers go to people with the best credit ratings.”

5. Use debt consolidation or a personal loan. It makes sense to try to consolidate debt and make one payment, especially if you can lower the interest rate. But don’t just focus on the monthly payment, warns McClary. “What you don’t want to do is tinker with the terms so that you have this artificially low payout,” he said.

You might get a lower monthly payment, but you could drag out the loan for years and end up paying more interest over time than your issuer was charging.

6. Contact a non-profit consumer credit counselor. If you don’t feel comfortable negotiating with your card issuer, get help from a nonprofit credit counseling agency by visiting National Credit Counseling Foundation or by calling 800-388-2227.

By working with a credit counselor, you can put a debt management plan in place. You make a lump sum payment each month to the nonprofit, which then forwards the payments to your creditors. By participating in this type of debt management program, you may benefit from reduced or waived finance charges or fees.

7. Treat bankruptcy as a last resort. I’ve helped a few seniors overwhelmed with credit card debt for bankruptcy protection. For them, the credit had become the bridge to extending their Social Security retirement benefit checks. This is how they were able to make ends meet. Bankruptcy gave them a fresh start.

Ask for recommendations for a bankruptcy lawyer or use the Find a lawyer National Association of Consumer Bankruptcy Attorneys database.

]]> How To Use Your Home Equity To Earn Money | Brand Ave. studios Wed, 15 Jun 2022 20:00:00 +0000

You might have money in your house. Not under the mattress, not in a coin jar, but in your capital. So what is equity? It’s simply the difference between what your home is worth and what you owe. To ease the pain of paying off your mortgage, remember that every time you make a payment, you’re building equity!

Equity can be used as collateral to secure a loan or home equity line of credit (HELOC). The more your capital increases, the more borrowing power you have. With a home equity loan, you borrow a lump sum of money to be repaid over a fixed term, usually 5 to 15 years, giving you the security of a fixed rate and a consistent monthly payment.

A HELOC is very similar to a credit card. You can borrow money as needed, up to your credit limit. A HELOC is generally a variable rate loan, so your monthly payments will change based on your outstanding balance and fluctuations in prime interest rates.

Altane offers a unique interest-only HELOC that helps keep your payments affordable. You can choose a fixed or variable rate and enjoy a generous recovery period.

People also read…

Now here comes the fun part. You can use the money for anything. Literally. For example, when you need money to remodel your kitchen or bathroom, do a landscaping project, for debt consolidation, college expenses, vacations, really whatever you need, a home equity loan or HELOC might be your best bet.

Interest on a home loan or HELOC can be tax deductible if you tap into home equity to significantly improve your home. Please discuss this with your accountant.

Meet the dynamic team mortgage specialists at Altana FCU. They’re ready to walk you through your options and find the fit that’s right for you.

Andy Dean Photography

With Recession Risks Increasing, Take These Steps Before One Hits Fri, 10 Jun 2022 11:10:02 +0000

This story is part So Money (subscribe here)an online community dedicated to financial empowerment and advice, led by CNET Editor at Large and So Money podcast host Farnoosh Torabi.

What is happening

Many economists and financial experts in the United States predict a recession, usually marked by two consecutive quarters of significant slowdown in economic activity.

why is it important

Previous recessions have all seen widespread layoffs, higher borrowing costs and a tumultuous stock market.

And after

Focus on what you can control, gather facts, and take action to protect your finances. Above all, it is important to stay calm.

Rampant inflation and higher interest rates have experts and companies warning of an impending recession. Despite the current bad feelings about the economy, there is little consensus on when a recession will occur or on its effects. Morgan Housel, author of The psychology of moneyperhaps said it better when he tweeted in April“We’re definitely headed for a recession. The only thing that’s uncertain is when, where, how long, how deep and the policy response.”

What he means is that there is still a recession on the horizon – economies are cyclical, with ups and downs. We just can’t tell exactly what’s going on while we’re at it. We can only look back. Since the Great Depression, the United States has experienced a dozen economic downturns ranging from a few months to more than a year.

Trying to understand the specifics of the recession is a guessing game – and anyone who tells you otherwise is probably trying to sell you something.

The best we can do right now is to use history to set the context, be more proactive about money movements that we can control and resist the urge to panic. This includes looking at what happened in previous recessions and taking a closer look at our financial goals to see what levers to pull to stay on track.

Here are eight specific steps you can take to create more financial stability and resilience in a turbulent economy.

1. Plan more, panic less

The silver lining of the current recession forecasts is that they are still only forecasts. It’s time to make a plan without the real pressures and challenges that come with being in the midst of an economic downturn. Over the next two months, revise your financial plan and map out worst-case scenarios when your adrenaline isn’t pumping.

A few questions to consider: If you were to lose your job later this year or in early 2023, what would your plan be? How can you fortify your finances now to deal with a layoff? (Keep reading for related tips.)

2. Increase your cash reserves

The key to weathering a recession relatively unscathed is having money in the bank. The high unemployment rate of 10% during the Great Recession of 2009 taught us that. On average, it took 8-9 months for those affected to land on their feet. Those lucky enough to have strong emergency accounts have been able to continue to pay housing costs and save time figuring out next steps with less stress.

Consider rearranging your budget to allocate more savings now to get closer to the recommended six to nine month reserve for rainy days. It might be a good idea to disconnect from recurring subscriptions, but a better strategy that won’t seem so privy might be to call the billers (from utility companies to cable to car insurance) and ask for discounts and promotions. Speak specifically with customer loyalty services to see what deals they can offer to prevent you from canceling your plans.

3. Look for a second source of income

Web searches for “side businesses” are always popular, but especially so now, as many seek to diversify sources of income as a potential recession approaches. Just as it helps diversify investments, diversify sources of income can reduce the income volatility that accompanies job loss. For inspiration on easy, low-rise side-flips you can do from home, check out my recent story.

4. Resist impulsive investing

It’s hard not to be worried about your wallet after all the recent red arrows in the stock market. If you have more than 10 or 15 years left before retirement, history proves that it is better to stick to the ups and downs of the market. According to Fidelity, those who remained invested in target-date funds, which include mutual funds and ETFs typically tied to a retirement date, during the 2008-09 financial crisis had higher account balances in 2011 than those who have reduced or stopped their contributions.

If you have not yet subscribed to automatic rebalancing, consult your portfolio manager or online broker. This feature can ensure that your instruments remain properly weighted and aligned with your risk tolerance and investment goals, even when the market swings.

5. Lock in interest rates now

As policy makers raise interest rates to lower inflation levels, interest rates will rise. This potentially means bad news for anyone with an adjustable rate loan. It is also a challenge for those carry a balance on a credit card.

While federal borrowers need not worry about their rates rising, those with private loans variable rate loans may want to consider consolidation or refinancing options through an existing lender or other banks like SoFi who could consolidate debt into one fixed rate loan. This will prevent your monthly payments from rising unpredictably when the Federal Reserve raises interest rates again this year, as expected.

6. Protect your credit score

Borrowers may find it harder to access credit during a recession as interest rates rise and banks enforce stricter lending rules. To benefit from the best conditions and loan rates, aim for a solid credit rating in the 700s or so. You can usually check your credit score for free through your existing bank or lender, and you may also receive free weekly credit reports from each of the three major credit bureaus through the end of the year from

To improve your credit score, try repay high balancesReview and dispute any errors who may appear on your credit report or consider consolidating high-interest credit card debt into a low interest debt consolidation loan Where Introductory 0% APR Balance Transfer Card.

7. Press pause when buying a house

It’s already a competitive housing market with few houses to go around. Whether rising mortgage rates add more pressure on your ability to buy a home within your budget, consider renting a little longer. If you’re also worried about your job security in a potential recession, that’s even more of a reason to take a break. Leasing isn’t cheap right now, but it can give you more flexibility and mobility. Without the need to hoard cash for a down payment and closing costs, leasing can also keep you with more cash during a potentially tough economy.

8. Take care of your valuables

The advice that was born out of the period of skyrocketing inflation of the late 1970s still applies today: “If it is not broke, do not fix it.”

With persistent supply chain issues, many of us face high prices and delays in acquiring new cars, tech products, furniture, home materials, and even contact lenses. This also includes spare parts. If a product comes with a free warranty, be sure to sign up. And while it’s a small fee to extend insurance, it may be worth it in a time of rising prices.

For example, my car sat in the repair shop for over three months, waiting for parts to arrive from overseas. So in addition to paying my monthly car payment, I have car rental costs that add up. If nothing else, I’ll be heading into a possible recession as a more cautious driver.

Read more: Small packages, same prices: shrinkage is sneaky

Credit Canada to Provide ‘Free, Confidential, Non-Judgment’ Debt Help in Sault Area Thu, 09 Jun 2022 18:13:42 +0000

Content of the article

Interested in giving up debt?

Content of the article

Sault Ste. Marie (CCSSSM) joins the National Agency Credit Canada, the oldest not-for-profit credit counseling agency in the country.

“We are thrilled to join the team,” CCSSSM executive director Greg Elsby said in a statement. “We have had a long and positive partnership with Credit Canada and have chosen to work with them in the future.”

Credit Canada is “committed to providing exceptional service” to those with “too much” debt, said Bruce Sellery, CEO of Credit Canada.

“We are honored that the CCSSSM has chosen us to continue the work they have been doing since 1969,” he said.

“As a larger agency, we will be able to bring more educational resources and creditor relations to serve clients in the region, while working to ensure that the care, compassion and confidentiality for which the CCSSSM was known are maintained. .”

Consumers who carry a balance on their credit cards from month to month face higher interest charges and ultimately more debt.

“If they start to miss bill payments, they may receive collection calls, which lowers their credit score and makes it harder to get low-interest credit,” a statement read. of Credit Canada. “Those with low credit scores can rely on payday loans and other high-interest products to make ends meet, which only makes things worse.”

Credit Canada offers free credit counseling services through one-on-one telephone consultations with certified non-profit credit counsellors. During an initial appointment, a credit counselor reviews a client’s debt situation in order to offer various relief options.

Content of the article

This may include negotiating with creditors, using different payment methods, signing up for a debt consolidation program, or exploring alternative solutions, such as debt consolidation loans or insolvency.

“All credit counseling services are free, confidential and non-judgmental,” the statement said.

Tammy Drover leads Credit Canada’s client services staff in Sault Ste. Marie and the surrounding area.

“She knows the people and the real issues people are facing in the community,” Credit Canada said. “With rising gas, food and housing prices, more and more Canadians are having difficulty paying their bills, forcing some to rely more on credit.”

World Bank says Philippines debt remains manageable, recommends fiscal consolidation │ GMA News Online Wed, 08 Jun 2022 05:38:01 +0000

The Philippines’ debt level is still manageable despite breaking an internationally comfortable ratio, the World Bank said on Wednesday.

In the first quarter of 2022, the country’s debt-to-gross domestic product (GDP) ratio – the size of government debt relative to the size of the economy – swelled to 63.5%, the most high in 17 years and well beyond the 60% threshold recommended at the international level.

Meanwhile, at the end of April 2022, outstanding government debt reached a new high of 12.763 billion pesos.

Despite skyrocketing debt levels, World Bank senior economist Kevin Chua still believes the country’s liabilities are manageable.

“We think the debt is still manageable. Most of our debt is long-term, domestic and denominated in pesos and it should protect us from risk,” Chua said during a virtual press briefing for the lender’s June 2022 Philippines economic update.

Of the total public debt of 12.76 trillion pesos, 70% was borrowed locally and 30% came from external sources.

The outgoing Duterte administration is expected to take on 3.2 trillion pesos in additional debt as a result of the COVID-19 pandemic, which could raise the debt level to over 13 trillion pesos by the end of 2022. , above the initial plan of only around 9.9 trillion pesos.

Although he said the country’s debt levels are manageable, the World Bank’s Chua said “debt will be a drag on growth.”

“That’s the reason [why] we recommend fiscal consolidation,” he said.

Similarly, the Ministry of Finance (DOF) unveiled a fiscal consolidation plan to raise an average of 284 billion pesos per year for the next 10 years to pay off the historic additional debt of 3.2 trillion pesos incurred due to of the COVID-19 pandemic.

But the fiscal consolidation plan involves introducing new taxes, postponing personal income tax cuts and broadening the value added tax base.

New finance chief Benjamin Diokno said he agreed with the last two tax reform packages left behind by the Duterte administration, namely the property valuation tax packages and passive taxes on income and finances.

“Other than that, we should stop looking at tax reform first…we are happy with the current tax structure,” Diokno said.

The task of managing the country’s fiscal situation will be in the hands of newly elected President Ferdinand Marcos Jr. and his economic team which will be led by the outgoing Governor of Bangko Sentral ng Pilipinas, Diokno.

“Announcement of a fiscal consolidation plan will signal fiscal discipline and seriousness to deal with shrinking policy space,” Chua said.

Apart from fiscal consolidation, the World Bank economist said the high level of debt can be solved through higher economic growth.

“Any time we see an increase in our growth rate, that would definitely help reduce the debt ratio,” Chua said.

Diokno also said the country’s debt level is “easily manageable” as long as the economy can grow by 6% to 7%.

“But beyond rapid economic growth, we also need to pursue fiscal consolidation, that way we can bring the debt ratio back to pre-pandemic levels,” Chua said.

Before the COVID-19 pandemic, the country’s debt-to-GDP ratio was at an all-time high of 39.6% in 2019.—AOL, GMA News

Woman who wiped out £60,000 debt in five years explains three tips to fix your finances Mon, 06 Jun 2022 13:51:28 +0000

Nikki Ramskill was just 18 when she pulled out her first credit card shortly before starting medical school – despite having “no idea” about money.

By the time she reached her thirties, the now fully qualified doctor was £60,000 in debt and unsure how to settle her finances.

The money she owed consisted of credit cards, loans and overdrafts, and she had also received a £3,500 tax bill from HMRC.

But it wasn’t until Nikki took time off work to travel that she realized “how bad” her debt had become.

She admits her five-month break only made her finances worse – but Nikki says it also gave her the boost she needed to reassess her situation.

Nikki says traveling helped her realize how serious her debts had become



Nikki had around £10,000 in savings at the time, but said it was nowhere near enough to cover her travel and bills at home, including a flat she partly owned in London.

She had traveled through Australia, New Zealand and Southeast Asia.

“I was trying to pay my bills and I was also trying to pay for my trips. That’s when I realized how bad it had gone,” said Nikki, who is now 37 and lives in Milton Keynes.

Do you have an amazing debt story to tell? Let us know:

“I had always wanted to travel, so I really wanted to go, but being away gave me time to think. I panicked because I had no money coming in.

“That’s when I thought ‘oh my god, this is terrible’. I was on a chance of a trip of a lifetime that I may never do again.

“As soon as I got home, I decided to do something. I was about 31 when I finished traveling.

“The highest level of debt I was incurred in was £60,000. I made my situation worse by traveling and being out of work for a while.

Nikki had previously tried using 0% balance transfer credit cards to clear what she owed, transferring her debt to an interest-free deal – but soon discovered she was no longer accepted for these cards.

Generally, only those with the best credit ratings are accepted for 0% balance transfer credit cards.

After her travels, Nikki then tried to settle her debt using the snowball method – this is when you start by paying off the smallest of all your loans first, before moving on to the next largest.

The idea is that by paying off a debt, you’re more motivated to keep going.

But after moving from working in the hospital to training as a GP, Nikki found her salary had dropped by around £1,000 and said she was no longer able to pay her reimbursements.

That’s when she decided to talk to her bank about a debt consolidation loan and find out if it would be right for her.

A debt consolidation loan involves taking out one loan to pay off all of your existing debts. So, instead of making many refunds to different companies, you only make one refund per month.

Nikki said it was the second time she tried to consolidate her loan, as the first time “didn’t work out” as she continued to spend on her credit cards.

“I cut up all my credit cards and didn’t use them because I didn’t trust myself. I had to go cold turkey,” she said.

“The good thing was that it cut my payments in half. The other good thing was that the interest rates I was paying were much lower.

“My credit cards were at 11% APR and my loan at 6.2%. There were no arrangement fees or prepayment fees.

“The downside is that people who have everything consolidated into their mortgage run the risk of not learning a lesson. If you want to do this, you must eliminate all use of debt.

“I was lucky. I was in a good job and spoke to a risk bank manager in person. It’s not for everyone.

It took Nikki around five years to pay off £60,000 in debt. At the time, she was earning around £2,800 a month.

She paid back £10,000 through the snowball method, around £40,000 through her loan, and then the remaining £10,000 was left to her by her father who sadly passed away.

Nikki says learning to manage her money using Couragea free digital business account from NatWest, also played a crucial role in the success of building up his finances.

Debt consolidation loans – the pros and cons

Before opting for a debt consolidation loan, the first thing to check is whether you can reduce the costs of your debt in another way.

Nikki says she was no longer able to take out a 0% balance transfer credit card, but if that’s an option for you, it will be a cheaper way to settle your debt.

The idea of ​​a debt consolidation loan is that it can help simplify your finances, so you don’t have to keep up with lots of debt – but it’s not for everyone.

For some people, this may mean that you are able to consolidate a number of expensive debts into one loan at a lower rate, so you spend less on interest each month.

But high fees can also apply, especially for those who want to make early repayments, says Sarah Coles, senior personal finance expert at Hargreaves Lansdown.

“You have to check the costs carefully. Some of these loans will spread the repayments out longer to make the monthly payments more affordable, but that means the interest goes up,” she said.

“Some debt consolidation loans will be secured by your home, so if you miss payments, your home could be at risk. Debt counselors would never suggest taking out a secured loan to pay off unsecured debt.

“You should also check the termination fee for an existing loan agreement – and if there are any prepayment charges. This may not be an option at all if you have a bad credit history. “

Ms Coles also points out that you can sometimes end up with just one unmanageable payment, which won’t leave you any better off than before you took out the loan.

You should always seek free debt advice before taking out a debt consolidation loan, to make sure it’s the right path for you and to understand how much you’ll be paying back and for how long.

Three tips if you’re in debt and struggling

Nikki, who now runs her website The Money Doctor Woman to help inspire others in debt, offered the following advice to anyone struggling:

  • Tell someone ASAP: “My other half knew about my debt but didn’t know the extent of it,” Nikki said.
  • Talk to a Free Debt Advisor: “There’s no shame in talking about money.”
  • Don’t procrastinate: “Get help and decide quickly what you want to do.

There are free organizations that will help you clear your debt:

Always be wary of companies that try to charge you for debt help, as you can get advice without paying a dime.

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]]> What happens to your HELOC if the value of your home drops? Thu, 02 Jun 2022 18:42:23 +0000

A home equity line of credit (HELOC) allows you to leverage your home equity, which is the percentage of your home’s value that you already own, using the home as collateral. HELOCs are attractive because they provide easy access to money for home improvements, debt consolidation, medical bills, and other expenses. However, there’s a catch: Because HELOCs are tied to home equity, your lender can freeze or reduce your line of credit if your home’s value drops.

Key points to remember

  • A home equity line of credit (HELOC) is a revolving line of credit secured by your home.
  • Lenders base the loan amount on your home equity, credit score, and debt-to-income ratio (DTI).
  • HELOCs generally have two stages: a draw period and a redemption period.
  • If the value of your home drops significantly, your lender may limit or freeze your line of credit.

What is a Home Equity Line of Credit (HELOC)?

A HELOC is a revolving line of credit much like a credit card, except your home secures it. Because a house acts as collateral, HELOC interest rates, which are variable rather than fixed, tend to be more favorable than credit cards and personal loans.

Your lender approves you for a certain amount of credit based on your home equity, credit score, debt-to-income ratio (DTI), and other factors. As long as you stay under your credit limit, you can borrow whenever you need money, drawing funds via online transfer, cash pickup at your local bank branch, or check, card ATM or credit card linked to the account.

HELOCs and home equity loans allow you to borrow money using your home as collateral, but they work differently. A HELOC is a revolving line of credit, while a home equity loan gives you an upfront lump sum payment. Both loans involve interest and fees.

How do you reimburse a HELOC?

HELOCs generally have two stages: a draw period and a redemption period.

The drawdown period is typically 10 years, during which time you can borrow up to your credit limit, pay it off, and borrow again as often as you like. During this stage, you pay interest on the amount borrowed or make a minimum monthly payment (according to your loan agreement). You may also be able to make payments on the principal of the loan, if the lender allows it.

When the draw period ends, the HELOC closes, meaning you can’t withdraw any more money, and moves into the redemption period. You’ll make monthly installments to repay principal and interest, usually over 20 years. The amount of your payment will depend on your outstanding balance at the end of the drawing period and the prevailing interest rate. Some HELOCs have a lump sum payment, which means that the full amount of the loan plus interest is immediately due at the end of the drawdown period.

HELOCs typically have variable interest rates, so your payments can go up or down over time.

HELOC and falling home values

As mentioned above, your HELOC credit limit is tied to the value of your home, among other numbers. Although your lender considers the value of your home when you apply for a HELOC, they assess your line of credit and your ability to make payments over the life of the loan. If something has changed drastically since you got the loan, your lender may reduce or freeze your HELOC.

If this happens, you won’t be able to draw the full amount of your line of credit (or part of it, in the case of a freeze). However, you will still be responsible for performing your loan agreement, including monthly interest payments. Some of the most common reasons a lender might reduce or freeze your line of credit are:

  • Credit rating dropped
  • Employment or income status has changed
  • Overall indebtedness has increased
  • Marital status has changed
  • The value of the house has dropped significantly

Your lender must send you written notice within three business days of your HELOC being reduced or frozen. If the lender’s reasoning doesn’t make sense to you, ask for a detailed explanation and if there’s anything you can do to re-establish your line of credit.

You can appeal the decision if you think the lender made a mistake. For example, your house is worth more than your lender thinks because you recently made substantial improvements. Of course, your lender will expect an updated home appraisal if you want to appeal based on the value of your property. However, keep in mind that the appraisal fees will be your responsibility and, more importantly, an updated appraisal will not guarantee that your lender will approve your appeal.

If your lender does not restore your HELOC, you can check with other lenders to see their offers. You may be able to open a new HELOC and use some of the funds to pay off your original line of credit.

Can I use a HELOC to pay for anything I want?

Once you’ve pulled out of your HELOC, it’s up to you (not your lender) to decide how you’ll spend that money. Smart uses can include home improvements, debt consolidation, major purchases like a house, a new business, or medical bills.

Of course, it’s important to avoid using a HELOC to hide any financial troubles you might be having, such as maxing out your credit cards for unnecessary expenses. In other words, you shouldn’t use a HELOC to plunge yourself into a bigger financial hole. Instead, work on the factors that got you into trouble in the first place and use the HELOC to help improve your financial situation.

How much does an assessment cost?

The average price for a single-family home appraisal is $375 to $450, according to, which provides cost guides, comparisons and information for home improvement, installation and repair projects. .

Can I deduct HELOC interest?

You can deduct the interest you pay on a HELOC only if you use the money to buy, build, or significantly improve the home that serves as collateral for the HELOC. However, the standard deduction has increased under the Tax Cuts and Jobs Act, so you might not be a winner by itemizing HELOC interest on your tax return.

The essential

Property values ​​tend to increase over time. Yet rising mortgage rates, increased supply, falling demand, recessions, and other events can drive prices down. If your home’s value drops a bit, your lender probably won’t reduce or block your HELOC, as slight fluctuations in the market are normal. It’s when the value of your home changes significantly that your lender can take steps to limit their risk.

What to do if you are drowning in debt Wed, 01 Jun 2022 11:14:53 +0000

Are you struggling to keep your head above water with paying off your debts? You’re not alone. Millions of people are in the same situation. But there is hope. There are things you can do to get your debt under control and start getting your finances back on track. Let’s focus on what to do if you’re drowning in debt.

Eliminate unnecessary expenses

When trying to control your debt, the first thing you need to look at is your spending. Take a close look at your budget and see where you can cut back. Do you need that daily coffee? Or those new shoes? Probably not. Eliminating unnecessary spending can free up a lot of money to pay off your debt.

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You can develop a good spending schedule by assessing which bills need to be paid when they are due and how much is left. This will help you better understand where your money needs to go each month.

Create a debt repayment plan

Once you’ve eliminated as many unnecessary expenses as possible, it’s time to create a plan to pay off your debt. Start by listing all your debts and the interest rate and monthly payment for each one. Then, prioritize your debts from highest to lowest interest rate. The debt with the highest interest rate should be your top priority, costing you the most money in interest charges.

There are different options for consolidating your debts, but the most common is to take out a consolidation loan. This loan pays off all your other debts, leaving you with just one payment to make each month. The interest rate on your consolidation loan will be lower than the rates on your other debts, so you’ll save money on interest charges.

Consolidation can also help you get a lower monthly payment, making it easier for you to pay your monthly payments. If you’re struggling to cope with paying off your debts, find the best debt consolidation experts like those at Debt Relief Freedom. This can help you get your debt under control.

Earn more money

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If you really want to get out of debt, you may need to change your income. Can you get a better paying job? Or maybe start a side hustle to make some extra cash? There are many ways to earn more money. You need to be creative and ready to get to work.

This is where you focus on your talent and personal abilities, such as cooking and art. You can monetize your skills by becoming a consultant, selling your products online or teaching courses.

There are also several ways to earn money that do not require special skills or talents. You can start a blog and sell advertising, become an affiliate for other businesses, or even start a home business. If you are willing to work, you can find a way to earn more money.

Use windfall gains to pay down debt

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Don’t be tempted to spend if you receive a windfall, such as a tax refund or a bonus at work. Instead, use that money to pay off your debt. Any extra money you can spend on your debt will help you pay it off faster.

Even if you can only pay off a small amount of money on your debt each month, it will still make a difference. The more money you can spend on your debt, the faster you’ll get out of it.

Create a reward system

Paying off debt can be a long and difficult process. It is essential to have something to motivate you to continue. One way to do this is to create a reward system for yourself. For each milestone you complete, give yourself a small reward. It could be something like a new book, a party, or a new piece of clothing. Whatever you choose, make sure it will motivate you to keep going.

However, make sure the reward is something you will actually enjoy and look forward to. If you don’t, you’re probably not sticking to the system. Also, don’t make rewards too big or too small. If they are too big, you may not be able to afford them or you will get discouraged. If they’re too small, you probably won’t continue. Remember, the simpler the reward system, the easier it will be to stick with it. Avoid making it too complicated, or you’ll probably give it up.

Start small and grow

Don’t be discouraged if you’re struggling to significantly reduce your debt. Start small and grow. Even if you can only pay off your debt by $10 each month, it’s better than nothing. And as you get used to making regular repayments, you can start increasing the amount you pay each month.

The important thing is just to start. Once you start paying off your debts regularly, you will be well on your way to becoming debt free. There are several reasons why you might want to consult a financial adviser. If you’re struggling with debt, a financial advisor can help you create a budget and plan for paying off your debts.

They can also guide other economic matters, such as investing or saving for a major purchase. What is important is to be open with them regarding income and expenses. They can easily understand the adjustments you can make for better financial management with such accurate information.

Communicate with your creditors

If you are having difficulty repaying your debts, contact your creditors. They may be willing to work with you to create a more affordable payment plan for you. In some cases, they may even be willing to lower your interest rate or waive late fees. Discuss with the team your willingness to make the payments and show evidence of your efforts. It helps to indicate your dedication to paying off the debt.

Also, if you’re struggling to make ends meet, it’s essential to seek help. There are several government and non-profit organizations that can offer help. These organizations can provide resources to help you get back on your feet.

If you’re struggling to drown in debt, there are several things you can do to get back on track. Start with a plan on how to make the repayment. Also consider increasing your revenue generation by establishing side businesses.

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How to Improve Personal Loan Applications: 6 Ways to Increase Chances of Approval Mon, 30 May 2022 14:00:08 +0000

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.

Before you take out a personal loan, read about 6 things you can do to improve your personal loan application and increase your chances of approval. (Shutterstock)

Personal loans can help cover a variety of unexpected projects and costs. The best way to get approved is to have good credit and a low debt-to-income ratio (DTI).

If you need a loan, these six tips can help improve your Personal loan apply and increase your chances of being approved for the funds you need.

Shopping around and comparing lenders is a good place to start before submitting an official personal loan application. Credible, it’s easy to view your prequalified personal loan rates from various lenders, all in one place.

1. Decide what type of personal loan you need

Personal loans are installment loans, which means you receive a lump sum of money up front and then repay the loan with fixed payments over an agreed term. But not all personal loans are created equal. There are many types of personal loans you can choose from, including:

2. Check your credit report

Your credit score is a three-digit number that gives lenders an idea of ​​how likely you are to repay the money you borrow. It is calculated based on your payment history, the number of accounts you have, the type of accounts, your credit usage (how much credit you use compared to the amount of available credit you have) and the duration of your credit history.

Lenders look at your credit score when they review your loan application. A higher credit score generally increases your chances of being approved and getting a better interest rate. By making payments on time and limiting the use of your credit, you can increase your score.

It’s a good idea to pull your credit reports from the three major credit bureaus at least once a year – you can do this for free by visiting Once you receive your reports, review them for potential errors, such as missed payments you didn’t actually miss or accounts you didn’t open. Dispute any errors you find with the appropriate credit reporting agency.

Visit Credible for compare personal loan rates from various lenders, without affecting your credit.

3. Improve your credit score

If you have a fair or bad credit scoreHere are some things you can do to increase your score and increase your chances of getting approved for a personal loan:

  • Pay your bills on time. Even one missed payment can hurt your credit score. That’s why it’s important to pay your mortgage, credit cards, car loans, student loans and other bills on time, every time.
  • Pay off your debt. The lower your credit utilization ratio, the more likely a lender will approve you for a loan. By paying off your debt, you can improve your credit utilization ratio and, therefore, increase your credit score.
  • Do not close credit card accounts. Even if you no longer use certain credit cards, keep them open. It can increase the length of your credit history, which can improve your credit.
  • Limit new credit accounts. Only apply for new credit when you absolutely need it. Applying for too many credit accounts at once can hurt your credit score because it leads to difficult inquiries on your credit report and lowers the average age of your credit accounts.

4. Don’t borrow more than you need

While it can be tempting to ask for more money than you need to meet a financial goal, like a car repair or a kitchen renovation, it can do more harm than good. Since a larger personal loan will come with a higher monthly payment and affect your ability to cover other financial obligations, lenders will consider it riskier. This can make it harder for you to get approved for a loan.

5. Consider applying with a co-signer

A co-signer is usually a family member or close friend with a good credit rating and a stable income who agrees to repay your loan in the event of default.

For example, if you are applying with a co-signer because you are unemployed or your credit is poor, you may get approved for a loan that you would not qualify for on your own. You could also get a lower interest rate, which could save you hundreds or even thousands of dollars over the life of the loan.

While a cosigner can make your personal loan application more attractive to a lender, it’s important to consider the potential downsides of applying with just one. If you fall behind on your payments, you could put the co-signer in a difficult position and damage your relationship, as well as their credit. That’s why you should only apply for a co-signer if you’re sure you can repay your loan as agreed.

Additionally, it is difficult to remove a co-signer from a loan once the funds have been disbursed. Your co-signer may be stuck with responsibility for the debt for a while until you pay it off. Make sure the co-signer you choose not only understands this risk, but accepts it.

6. Find the best personal lender for you

There is no shortage of personal loans on the market. Take the time to shop around and compare a variety of products offered by banks, credit unions and online lenders. Look at their amounts, interest rates, fees, and any special perks they might offer.

It can help you find the ideal personal loan for your unique situation.

Credible, it’s child’s play to compare personal loan rates from multiple lenders without a firm credit application or any effect on your credit.