Getting Your Creditors To Meet You Half Way

If you are like many consumers, you may carry high balance on your credit card accounts. With high balances come high monthly payments, and you may find that these payments are unmanageable with your budget. If you find it difficult to make your minimum monthly credit card payments, you may consider asking your creditors to meet you halfway.

What Your Creditors Have to Lose

Your principal balance on credit card payments equates to funds you owe to your creditors. If you default on that debt, such as by filing for bankruptcy, your creditors may not receive any of the money you owe them. They are aware that your financial struggles can equate to monetary loss for them, and they may be willing negotiate terms for you. 

Adjusting Financing Terms

You can consider asking your creditors to adjust the financing terms. For example, some creditors may be willing to reduce your interest rate. The interest rate is one of several factors that affect your minimum monthly payment, so a reduction in the rate may result in lower and more manageable payments.

Writing Off Debt

You can also ask your creditors to write off a portion of your debt. Some creditors may be willing to forgive a portion of the debt if they are assured that they will receive the rest of the money that you owe them. Some may request that you make a good faith payment with a large sum of cash in exchange for this settlement. When the principal balance is reduced, your monthly payments may decrease considerably. However, keep in mind that the IRS may consider the portion of debt that is written off as taxable income.

How to Get Started

Negotiating with your creditors can be beneficial to you, and many creditors are willing to work with you to set up a debt structure that is affordable for you if they know that you are struggling financially. However, some consumers have discovered that they receive more favorable terms with debt negotiations and settlement when they work with a company, such as Paddon & Yorke Inc, that specializes in this area. You can attempt to contact creditors on your own, or you can seek professional assistance by doing a consumer proposal in Toronto.

Debt balances can easily get out of hand, and the payments on your debts can stress your budget. If you find yourself challenged by your debts, your creditors may be willing to meet you halfway. You can reach out to your creditors to request adjustments to the loan terms or the balance owed, or you can seek professional assistance from a debt settlement firm.

Why Now is the Time to Refinance

I know you hear those commercials on the radio and television all the time about why “right now is the best time to refinance”. It’s amazing because it always comes from the same people, and they play the same ad every week of every year. This tells me that they think anytime is the best time to refinance. I actually think that now be may the best, and one of the last times that many people will have the want and ability to do so, and let me explain why.

People have been carrying their toxic interest-only loans for a long time now, those that were fortunate enough to weather the storm and not have to file for bankruptcy. Those loans have come with rising interest rates and payments that have become downright unmanageable. Makes you wonder why they haven’t refinanced already, huh? Well most of them were underwater on their mortgages, until now at least. We have seen home prices steadily rising since last year, and the trend continues even more this year. This means that people actually have the required home equity to refinance whereas in the past they simply did not. Those that still lack the home equity may have additional cash saved up, and improved confidence in the home market, that they are now willing to sink more money into their house in order to pay down their loans more.

Ok, so we know home values are rising, but what about interest rates? Well, interest rates really did reach historic lows last year, and I may never see them that low in my life time again. While rates are up about a point over last year they aren’t quite at a point where it is pricing people out of the market. After all, it’s been a long time since rates were even at this level. While I’m sure you would’ve loved to refinance your home loan last year at those super low rates it probably just wasn’t possible based on your home value. This is exactly why we are now in a the middle of the perfect storm of rising home values and still very low interest rates. In fact, many people can refinance their loans and use the additional money to continue to aggressively pay down their principal loan amounts.

While I don’t think purchasing a house is necessarily for everyone, I do think that refinancing is right for any homeowner who is paying a higher rate than what is available now. There are many low fee refinance options available that will allow homeowners to payback the closing costs within months. There was a point a couple years ago that I refinanced my house three times in a year alone. I was fortunate enough to buy at the downside of the market and have the required equity, but it still shows just how beneficial refinancing can really be. At the very least there are plenty of loan calculators available to you online, and plenty of loan officers willing to help you decide the right path for you.

Five Ways to Protect Your Business Assets from Changes in the Economy

Assets (Photo credit: LendingMemo)

Despite bursts of positive news in the media about the economy, there is still a lot of contradictory news that counters this optimism. The more uncertain the economy, the more important it becomes to protect your business assets.

Your business assets include your office furniture and fixtures, your computers and electronic equipment, your real estate and vehicles. In other words, your business assets are the things that you used your start-up capital to purchase so you could run your business.

A Simple 5-Point Protection Plan

1. Get an asset protection plan. Don’t wait to see what happens, as this will usually result in unexpected expenses and losses you’re not prepared to deal with, let alone cover. Plan ahead, even if your asset’s future seems secure. Use asset preparation to counter any possible claims against your business. You can’t predict the future, but you can do everything in your power to protect your assets before a process server shows up at your doorstep.

2. Get liability insurance. Although you might feel safe now that you have an asset protection plan in place, you should still get professional insurance. An asset protection plan will supplement your insurance plan. It also works the other way: your insurance plan will supplement your asset protection plan. Liability insurance is one of the best ways to protect your future finances—compensation payments can be astronomical and having a plan which will cover these can mean the difference between failure and stability for your business’ future.

3. Get clear on your finances. Separate your personal finances from your business ones. This will help you differentiate between your personal and business assets. Protect your personal assets through a trust and protect your business assets through an LLC, partnership, or corporation. Even if you lose your business for whatever reason, you should take measures to be able to fall back on your personal assets.

4. Begin tax and estate planning. While your asset protection will do a lot for you, there are some things that it cannot do. For instance, you cannot make gifts with asset protection—this is a fraudulent transfer. However, with tax and estate planning, it is not a problem and you will be able to use these resources as you wish.

5. Think of getting a self-directed IRA. One way to maximize your investments is through a flexible checkbook IRA. After a custodian opens up an account for you, you can buy precious metals, stocks, real estate, trust deeds, mortgage deeds, energy investments, promissory notes, and a lot more investments than a traditional IRA would allow. 

If the currency, for example, continues to hyper-inflate at its current rate, wouldn't it be nice to own precious metals? With a checkbook IRA, a Medicine Hat financial planning specialist says, you can diversify your portfolio, invest in assets you understand, access alternative investments, and lean on commodities to protect yourself and your business against any changes in the economy.

Keep in mind that your business assets include any and all items listed on your company’s balance sheet as the things your business owns. The security of these assets can make or break a company, depending on how well-protected they are. Changes in the economy can endanger the assets of any business, of any size, so it is always wise to be prepared for periods of recession, even in the midst of an economic boom. By using these five strategies, you will be able to protect and retain ownership of these assets.

Informational Credit to Thomson Schindle Green Insurance & Financial Services Ltd

Five Things Newly Retired People Should Consider

You have worked hard your entire life, and the time for your retirement is finally close at hand. Your retirement years should be a time of relaxation and enjoyment for you, but there are a few things you should be considering for this new phase of your life.

1. Staying Fit

Once you are no longer on your regular work schedule, you may find yourself packing on pounds. This can lead to numerous health problems, so it's important you find an activity that will keep you active and fit. This doesn’t always mean you have to become a gym junkie, just stay active. If you’re able, and you golf, walk instead of ride in a cart. If you enjoy riding your bike, plan out a route or two and get out and ride! Its common sense, but you’d be surprised at how many people who are recently retired, just sit around the home watching reruns of Mash or Golden Girls. You can't enjoy your retirement years if you are sick.

2. Budget Well

Whether you plan to use your retirement years to travel the world or stay close to home to be near your friends and family, you need to make sure your new retirement budget can support whatever lifestyle you have chosen. You will want to carefully plan for each thing you want to do, so you don't find your savings depleted after a single trip. Remember, everything tends to cost way more than you expect. 

3. Stay Involved

Many people struggle with retirement. They find it difficult to just enjoy fishing, golfing or gardening. You should try to stay as involved as possible with your community. Hobbies life golf are made a little easier to do for seniors. Senior discounts, senior leagues etc… there aren’t too many excuses that you can come up with for not getting out and getting involved. Most every city has community centers and senior centers that would welcome you with open arms, and there are always volunteer opportunities available that would allow you to stay busy while helping others. 

4. Final Arrangements

This is a wonderful gift to leave your children. Most funeral homes will work with you to lock in current prices, so you can completely plan and pay for your funeral services in advance. This isn’t always the most fun topic, but it should be addressed and once it is, retired life will be that much better knowing that when that day a loooooong time in the future comes, you and your family will be able to focus on other things. You will be able to ensure your children aren't left with this financial burden, and you will have the added benefit of knowing your final wishes will be honored.

5. Prepare Your Will

While it hopefully won't be needed for many years to come, this is the time to hire a competent attorney to write up your will and set up any trusts you may have in mind for your children or grandchildren. Zachary Law Group, PLC a lawyer in Gilbert AZ, has said that this can be a tricky process and having a good attorney to walk you through things is a good idea. You can relax knowing this is all taken care of, and your family can grieve properly when the time comes without having to worry about what to do with your estate, belongings etc..

These few tips should help you to enjoy your retirement with peace of mind. Now is the time for you to put work and worries behind you, and simply enjoy a time of rest and leisure that you so richly deserve.