December | 2015

Is Payday Lending the Right Choice?

There are many people who find themselves in significant financial straits and do not know what to do about the situation. If such a person learns about payday loans through an online search or by driving past a storefront with a sign advertising this type of loan, a quick decision to pursue this type of getting fast money might be made. It is a frequent occurrence that a person applies for this type of loan without doing due diligence about the negative consequences. Local Credit Unions would recommend that other sources of obtaining some financial relief. Prior to applying for a payday loan, one needs to learn the pertinent facts about the loan.

BIG FEES WILL BE ATTACHED TO A PAYDAY LOAN

Most people are aware that any loan will have interest and require proof of income. However, one needs to know that the interest on a payday loan can come in at anywhere from 24 to 39% which adds up to a lot of money that one already doesn’t have available. Even if one lives in a state that has put a cap on payday loan interest rates, interest is still high. A person who gets this type of loan might not be able to pay it back on his/her next payday and extends the loan. When this situation occurs, interest fees have to be paid again. In addition, there are several high fee “administrative” fees for the loan that will have to be paid. It can happen that people who become involved with a payday loan find themselves seeking one payday loan to pay off another, the situation spirals out of control and financial ruin looms in the near future.

SIGNIFICANT FACTS TO REMEMBER

Those who get a loan fully intend to repay the debt. However, when one has a payday loan, it is to be paid by the next payday. However, one must remember that there are other bills to pay, food and gas to buy and the funds for the loan payment may not be there to repay the loan. For these reasons, one can become involved in a vicious cycle of trying to find more cash streams to meet all financial obligations. Such a cycle seems never ending until the outcome may have to be a bankruptcy filing. Declaring bankruptcy is something that most people want to avoid.

Dealing with the horrible cycle of debt will have an effect on the whole family. Worry becomes constant and the bill collection calls, letters and threats can result in overwhelming stress that can cause depression and other medical problems. Some people become unable to work and unable to take action or seek help to solve the financial problems. If people are fully informed about the negative ramifications of payday loans, they should be able to avoid this solution to lack of money.

OTHER OPTIONS FOR FINANCIAL HELP

Local Credit Unions would suggest that people having financial problems consider getting a low or no interest credit card that can be paid down gradually when household obligations are met. In addition, people should talk with representatives of local Credit Unions regarding any programs that they might offer that could help with family financial issues. Most of these agencies offer both secured and unsecured loan packages. In addition, one will find that payments and interest rates with credit unions are typically lower than with other financial institutions. It is in the best interest of anyone to avoid becoming involved with a payday loan and investigate the other avenues of procuring the needed money to assist with finances. There are viable alternatives to the highly advertised payday loan.

All Specialty Vehicles and Businesses Have Specialty Commercial Insurance Plans

There is an absolutely massive range of specialty vehicles on the road today for different commercial applications. These different cars, vans, trucks and buses all look different and are used in different ways. They may have special features, usages and restrictions, along with unique risks that come with those different designs and applications.

This means that each type of specialty vehicle must be protected with its own specialty type of commercial insurance. There’s no such thing as one size fits all insurance, at least not when it’s provided to the consumer in the correct fashion.

There are two problems with this. One, the business owner pays for coverage they don’t need and which in no way could actually apply to them. There are all types of bells and whistles which simply amount to unnecessary cost, because they’ll never be used.

Two, the business owner is paying for coverage and assumes protection for their business, only to find out the hard way when they need it the most, that they weren’t fully or accurately covered at all. That generic plan must have had my specialty vehicle and type of business included, right? Maybe not, as many business owners go on to find out the hard way.

Simply look at two of the fastest growing types of commercial vehicles on the road today. There are food trucks, which everyone seems to love more and more. These are mobile kitchens with deep fryers and ovens, serving, storing and preparing food as they drive around. Clearly, those are unique risks and factors and a very specific insurance plan needs to be developed.

From there, look at ridesharing drivers, and the companies which have sprouted up over the past year. From Uber to Lyft, Sidecar, Wingz, and all the rest, these are personal cars used part of the time for commercial applications. There’s also a lot of gray area between those two different halves.So how are they supposed to be properly protected?

Then you have the full spectrum of specialty trucks. A refrigerated truck delivering food regionally clearly has different needs than a hazmat or waste truck, or a log hauler, or a long distance mover, or a tow truck. These are all very different in how they’re designed, what they do, the risks they face, and the coverage needed.

Don’t settle for a one size fits all or generic solution. Find a commercial vehicle insurance plan which has been carefully put together based around your needs, your business, the type of vehicle you’re using, and all the rest.

Payday Loans for Unsteady Income – How to Make It Sure You Can Pay It Off

Congratulations! You undertook the commitment you can barely handle. Was it hard to get? Nope! Is it hard to get away with it? Sure! Here’s how you go through this challenge with minimum casualties and maximum security measures.

1. Don’t perceive it as the least fortunate measure to take. In fact, you could always take another job (what that would be, a 4th one?) or assign for some extra shifts (say after 32nd of October till the end of the month). Anyway, if you have chosen cash payday loans, don’t be harsh on yourself, simply organize your budget for successful discharge. Start with average income calculation. As soon as you know how much you can get, you know how much you can give.

– start with simple listing and day-to-day budgeting. When you know your expenses, it’s easier to cut down on the unnecessary.
– rethink your spending; sometimes it’s hard to get rid of the point in your list, but in the end, you can shift for better pricing.

2. Your second measure to prevent unexpected negative results from payday loan borrowing is division. We don’t mean become a tightwad, we mean become a rationalist. Count as precisely as you can all your expenses for the period of loan duration. As soon as you have it, check if you’ve taken into consideration unexpected issues and make the totals.

– when you do calculations, consider adding a bit to every point of your spending list. Just 1-2% can eventually result in a buffer zone. If you add only $1 to every fuelling, you eventually save some amount for unexpected cases.

3. When you have what you need, count what your perspectives are. It’s evident that you’ve taken a payday loan for a reason; your unstable incomes from different resources combined in one can actually form a pretty good basement for your loan repayment. Now that you’ve got the numbers, compare if your unstable income can afford your “stable” payday loan payoff.

– if you feel like your unsteady financial position is getting worse, try to get some support. It can be either professionals or someone from your family. As soon as you can guarantee stability for the time the loan is due, you can be sure to avoid penalties for delinquent activity with your debts. Simply, protect yourself from being late.

4. You’re confronted with two options; either you can clear your financial issue till the due date or need back up funds for payday loan coverage. If you’re a proud owner of the first lot, bingo! You nailed it! Your loan can be considered successful and your decision commercially correct. Unfortunately, if you concluded you can’t make both ends meet, your payday loan enterprise appears a failure as requires additional assets. Next time you do the same routine from the very beginning, but perform the whole procedure with a virtual so that to secure your decision from a drop-on.

– payday loans can become a more fortunate deal when you repay on time, but at the same time, if you foresee failure, you still can make it less painful for your financial state. Always consider rescheduling as soon as you realize your income can’t help you repay the loan on time.

It’s up to you to pay on time or drag down till your loan starts biting you. The only thing that remains unchanged is your attitude to financial operations. The more diligent you are, the more scopes you have; the more committed you get, the more options you get, and thus, more fortunate deals at your disposal.

Don’t you want to try one?

Are you ready for smart borrowing? Do you think it’s time to make only reasonable choices? Do you want to make more than you spend?

The time to get your financial security has come.

Investment Financing in Kenya Real Estate

Real-estate investments in Kenya have the potential to double and even triple in value per year-with the right property. So, how does an investor finance a property investment? There are at-least two main options available in Kenya: group investments and mortgages.

Other than being able to prevaricate against risks such as rising inflation, real-estate investors are able to enhance their net worth, generate high capital gains and potentially register quick rates of appreciation.

Property Investment Financing Options

1.Group Investments

This is the most efficient and commonly used financing option by lower-middle class and those in informal employment who cannot qualify for bank mortgages and loans owing to their irregular source of income.

Group investments, locally referred to as ‘Chamas’, hold more than Ksh80 billion of wealth in Kenya in terms of savings and investment, with one adult in every three being an active member of a group investment club. They have registered the greatest success among women, youths and self-employed people.

To function, members make daily, weekly or monthly contributions for a specified duration of time and with a specific financial target. Once targets are reached, they identify a potential property, buy it and either start saving towards developing it or splitting it into equal portions among group members.

Alternatively, banks develop investment groups and invite interested parties to make monthly contributions. If the group member wishes to buy a property, they simply borrow (with interest rates applying) from the group based on their contribution. Group members co-sign the loans and they bear the cost of repaying the loan if one of the group members defaults.

The success of group investment is powerfully driven by a cultural impetus to pool funds together to invest and to borrow.

Most banking institutions and building societies in Kenya have realized the potential the option has and have developed programs targeted to boost group investments – it is based on the idea of creating a savings and investment opportunities.

2.Property Loans & Mortgages

There is a thin line between loans and mortgages in Kenya, and people often use the two terms synonymously.

These are facilities offered by various financial and lending institutions, such as banks and building societies, to help you buy property:

Loans and mortgages are given to successful loan applicants who meet the minimum loan-qualification requirements.
Loans and mortgages can be fully or partly financed by you. The majority of lenders, however, finance the property up to 90%.
Various lenders have varying interest rates and income-generating loans being charged a 15% interest rate per year and estate development attracting 13% p.a.
Property for owner-occupation may receive 80% financing while for investment property, such as rental units or holiday homes, may receive up to 70% financing.

Repayment duration for loans and mortgages

Maximum of:

15 years for individual borrowers
10 years for limited companies
2 years per phase for real-estate development

Additional Costs

Most loan and mortgage applicants in Kenya are oblivious to the hidden charges that come with taking loans and mortgages.

Stamp duty

Currently at 4% of the cost of property.

Valuation fees

Fees vary depending on the valuation surveyor, and it is crucial you have your own prior to the property being valued.

Legal charges

Determined by mortgage amount. Higher loan amounts attract higher legal fees. Banks have their preferred law firms they deal with, so ensure you learn from the lender their preferred law firm.

Bank facility charges

Varies between banks and is meant to cover loan facilitation

Penalties

Charges for clearing the mortgage before the agreed time; varies between

Property insurance

It is not mandatory and it is paid per year. It protects the property during loan repayment period.

Mortgage life policy

Varies between lenders and covers your outstanding balance in case you die.

Choosing a Bankruptcy Lawyer Without the Headache

Bankruptcy lawyers are doing a whole lot of business nowadays. Whereas this should be an advantage for anyone looking for an attorney, the number of lawyers actually makes it harder to locate the best in the lot.

There is, therefore, a need for clients to take their search seriously for better legal representation.

To help you find the best lawyer and to enable you file for bankruptcy without any disappointments, here are some factors to consider:

Your friends and relatives can come in handy when you are beginning your search. The idea is to get as many recommendations as possible so that you can have a list of candidates to choose from.

Your search for advice should be limited to those people who have hired the services of bankruptcy attorneys before. You may opt for the directory addresses you find but they are not as advantageous as having word-of-mouth recommendations.

Lawyers usually work with other lawyers, among them bankruptcy attorneys. If you know a lawyer you have worked with before, you can ask them for their opinion and advice. They might even be able to recommend the services of good attorneys they know or work with.

If you do not know any lawyers and you cannot get word-of-mouth recommendations, you can also settle for the list of the bar association in your state. With the internet here to serve us, you’re also able to hook up with a good attorney online. All you have to do is look for reviews of local attorneys.

You can narrow down your search by looking for specific bankruptcy attorneys in your state or near your area of residence. You may also opt for the actual search for an attorney, which involves visiting different law firms or offices of lawyers. This step, however, takes time.

Do not settle for a lawyer without interviewing them first. This is a necessary step as it will enable you know a bit more about the lawyer you are looking to hire for your case. Initial consultations are very helpful. Most people decide whether to hire the lawyer they interview or moving on to the next on their list at this stage. Your lawyer should be well-rounded.

She or he should know their way in and out of court. They should also have experience working with debtors, creditors and court officials. Above all, their communication skills should be unmatched, because this will be crucial in negotiating during the process.

Payment is paramount in any legal representation expect for pro-bono (free) work. Make sure that you and your lawyer work out a good and reasonable plan on how you will pay for their services. It is also wise to make a comparison of prices before you settle for any specific attorney.

This way, you can take advantage of any offers and price reductions through negotiations. Availing all materials relevant for your case is also recommended. These may include documents such as your bank statement, etcetera. The bankruptcy lawyer will then know how else you can contribute to the process.