Debt consolidation – Blog Campcee Fri, 14 Jan 2022 20:54:02 +0000 en-US hourly 1 Debt consolidation – Blog Campcee 32 32 Smart Ways Businesses Can Try To Pay Off Debts Faster Fri, 14 Jan 2022 20:54:02 +0000

For businesses that have fallen into debt, quick action can help them get out of debt before things get worse.


There are many methods companies use to pay off their debts faster. While these methods are effective, they may not be suitable for all businesses. Therefore, it is important to understand how these methods work and decide for yourself if they are right for you. To help you find the best and fastest way to deleverage your business, we’ll go over the smartest methods you can use.

Debt consolidation for a lower mortgage rate

Debt consolidation loans allow you to pay off multiple debts and combine them into one debt, which can be easier to manage. Applying for easy debt consolidation online is a great way for businesses to take care of multiple debts and pay them all off at once and you don’t even have to leave your office or home to do it. To do. Consolidating your debts into one payment will get you a lower interest rate than you had before. This will save you money in the long run and also give you plenty of time to think about how you want to manage your next steps. Another benefit of consolidating your debt is that it gives more cash flow, allowing the business to make more sales or raise prices. This increase in income can help get rid of other types of debt like credit card debt or personal loans faster.

Refinance loans with better conditions

Another great way for businesses to pay off debt faster is to refinance loans. With this method, you refinance your loan with another lender at a lower interest rate. This will save you money each month on your payments and get rid of debt faster. Refinancing is not always an option since the purpose of taking out certain loans is for specific purposes that are meant to last over time. Refinancing into another type of loan might not be possible, so it is important to consider all the conditions before making a decision. If you are unsure if refinancing will work for you, you may want to speak to a professional who can advise you on your situation.

Get a second mortgage or home equity line of credit

Getting a second mortgage or home equity line of credit (HELOC) can help you borrow against the equity in your home, which can be a great way to consolidate debt or pay off outstanding balances. There are benefits and risks associated with a HELOC, so you should consider them before applying. A HELOC can give you the extra cash you need in the short term, but keep in mind that this loan will earn interest from day one. You will also have to pay taxes on the interest, which means spending even more money. The good news is that you can always pay off your HELOC faster by making additional payments on top of your regular monthly amount.

Debt settlement with collection agencies

Debt settlement is another great way to pay off your outstanding balances. With this method, you will first have to contact the collection agency and try to agree on an amount less than what you are willing to pay for each month. Once you agree to the terms, the creditor will stop reporting it as a delinquent. Settling your debts can save you money by getting rid of accounts that have been flagged as overdue because they carry high interest rates. However, this often depends on the type of debt accounts reported. If you owe income taxes or student loans, the settlement pretty much means you’ll never see that amount again, which is why it’s important to do plenty of research before finalizing any decisions involving these types.

Get a personal loan

Getting a personal loan is another great way to pay off your debts faster. Since you already have good credit, it will make it easier for you to apply for such loans. Sometimes getting a personal loan from the same lender as your business loan can be beneficial because they may offer lower rates and better terms that could help you save money on different aspects of your debt, such as fees. financing or interest payments. If you already owe money to the same company, refinancing into a single personal loan can make things easier and also get rid of some bills faster. Remember to consider the pros and cons of taking out a personal loan, such as terms, rates, and penalties, so you can make the best decision.


To successfully deleverage your business, it’s important that you weigh your options carefully before settling on a plan. Some methods may work better for certain industries or types of businesses, while others may not be suitable depending on the type of debt and amount owed. However, the overview of the methods mentioned above should at least help put your mind in the right direction so that you can start working on a solution that will solve your debt problems as soon as possible.

Got $100? Here’s 1 great stock to buy and hold Thu, 13 Jan 2022 11:40:00 +0000

Not all good investments are exciting, disruptive, world-changing ventures. Some of the best investments are well-run businesses that make life a little easier for their customers and increase sales along the way. student loan processor Nelnet (NYSE: NNI) falls into the second category. It’s one of Wall Street’s best-kept secrets, with a market capitalization of just $3.6 billion, even though it’s gained 33% in the past year. Stocks are still trading just below $100, and if you have that amount available to invest after paying your bills and saving for an emergency fund, you should consider buying a stock.

More than student loans

Nelnet is known (if known at all) for its massive student loan book, though it operates several businesses that together make it a financial services juggernaut. It is not creating new loans at this point, although it carries nearly $20 billion in loans on its balance sheet and expects $2.2 billion in loan repayments over the next few years. . It therefore relies on its other businesses to offer it new avenues for growth.

Image source: Getty Images.

Nelnet is more like a conglomerate than a single company, running several different businesses, some of which feed off each other and some that are separate. It operates four main divisions: Asset Generation and Management (AGM), which is primarily its student loan portfolio but also its investment arm; Lending Service and Systems (Nelnet Diversified Services, or NDS), which offers various services related to loan origination and technology; education technology services and payment processing (Nelnet Business Services, or NBS), which offers a wide range of services such as payment solutions and management solutions for educational institutions; and Nelnet Bank (Nelnet Financial Service, or NFS). It also has an “other” segment that includes Allo, its communications service that serves Nebraska and Colorado, and a cyberfusion center, which focuses on cybersecurity. The company earns money through interest income in the AGM segment and Nelnet bank and fee-based income in the other segments.

The company is leaning into fintech (financial technology), using technology to power its interconnected systems and deliver an enhanced customer experience. The bank is a continuum of the company’s services, providing digital banking services and offering solutions such as student debt consolidation.

How is Nelnet?

The $20 billion in student loans on Nelnet’s books are federally guaranteed, so it’s just sitting there making money for the company. Nelnet recorded $83.1 million in net interest income from the AGM segment in the third quarter, compared with $80.2 million in the same quarter a year earlier.

At the end of the third quarter, Nelnet was servicing $514 billion in government-held student debt for more than 15.8 million borrowers. Loan servicing (NDS) segment revenue was $112 million, down slightly year-over-year, and the segment reported a pandemic-related net loss. NBS segment revenue increased 15% year-over-year to $85.3 million. Nelnet Bank, which launched in 2020, had a loan portfolio of $192 million. Earnings per share in the third quarter were $1.38, down year-over-year as the company grapples with coronavirus-related issues, such as debt carryover. The company obviously has a large market and varied growth paths, and it adds services, such as the relatively new Nelnet bank.

Investors loved Nelnet last year, but it’s been down a bit so far in 2022. Even at a price of $95, the stock is trading at just 7.5 times trailing 12-month earnings, which is cheap even when it comes to financial services stocks. Its three-year share price gains are roughly on par with the S&P 500:

NNI Chart

NNI data by YCharts.

The company also pays a dividend, which yields a lower-than-average rate of 0.94%, though that’s not necessarily a reason to avoid the stock. More importantly for investors, Nelnet is a solid and growing company that can add great value to a diversified portfolio.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

2022: For India, a year of consolidation Sun, 09 Jan 2022 15:14:23 +0000 The Indian government has been financially prudent during the last two years of Covid-19, avoiding the expenses and the accumulation of debts of others. He preferred to attract the excess capital that circulates in the world by pushing major changes in green energy and the digital space, and by opening the door more to foreign investors. He can claim some success. Investment flows have been large, foreign exchange reserves are overflowing and, in part as a result, the formal sector and start-up space appear healthy.

Assuming Omicron is a viral goodbye, this coming year will be one where rubber hits the road. The lapping is over. With inflation soaring globally, the world’s central banks will now end money printing. The largest source, the United States Federal Reserve (US), will do so by March. As this financial ebb continues throughout the year, many emerging economies will collapse. India will suffer, but Prime Minister (PM) Narendra Modi’s continued reforms during the pandemic should mean India will handle the tantrum better than most.

A recognition that Modi used his political capital to make tough economic choices that many world leaders have fled will be more evident as 2022 unfolds. Not that there won’t be bad news. India will be grappling with higher inflation and high oil prices even as it accumulates decent growth. His herd of unicorns will begin to thin out. But, after a quarter of waiting, investors, national and foreign, should start betting big on India again.

There are a few things that are likely to support this positive scenario.

The first is an expectation of geopolitical calm. India’s most dangerous strategic rival, China, awaits its year of consolidation. Xi Jinping wants to be confirmed for a third term next winter. He earned points for breaking down the tech and real estate oligopolies that have hampered China’s future growth. But, as Modi can attest, such actions are short-term economic brakes. Xi will seek to ease the Chinese economy until his re-election is confirmed later in the year. Border battles and the losing Belt and Road initiative are ill-suited.

Pakistan is essentially a danger to itself. He did exactly what an emerging economy shouldn’t have done in recent years. Prime Minister Imran Khan made no reforms and complicated business life. Its economy is an indicator of the high prices, low growth and debt problems that will affect many other developing countries. Pakistan’s great success in 2021, the resurrection of the Taliban regime, will be next door to hell: an exporter of refugees, heroin and terror.

The larger geopolitical landscape will be about turning language into action, especially in strategic technology. The two Quads, the Australian Submarine Triad, and the US-sponsored New Indo-Pacific Economic Framework have one feature in common: launching negotiations on future technology standards, investment, and development. Much of it has been described in documents, and the statements don’t mean much.

This year, it will be about filling in the details, figuring out how exactly the emerging camps of the United States and China can set up parallel networks for artificial intelligence, 5G, quantum computing and products. new generation pharmaceuticals. The result will be a year of silent buzz and minimal fireworks – except in parts of the world outside of these technological alliances. The nerds will dominate the bargaining tables, not the generals.

At home, the most important tasks Modi will face will be to avoid a setback in the Uttar Pradesh election and restore consumer confidence among the lower quintiles of the population.

The election, increasingly uncertain as it becomes a bipartisan contest, is necessary if he is to make any last-minute adjustments to the economy before the campaign begins for a third term. The electricity sector reforms stand out as they would provide external financing for India’s green transition. A much more difficult task will be to restart the urban informal sector, probably the one most ravaged by previous reforms and blockages. Again, the theme will be policy consolidation: less roller coasters and smoother navigation.

The icing on the cake of 2022 would be proof that the Modi government’s new trade policy exists. New Delhi hopes to complete its free trade agreements with the United Arab Emirates, Britain and Australia this year.

These will be new type of trade agreements – more focused on services, immigration and technology, less on agriculture and manufactured goods. The budget may need to signage with reduced rates.

These trade deals will be smaller and less ambitious, but will reflect what will likely be the new global standard for trade negotiations. If these merge successfully with the new manufacturing incentive programs, 2022 will be as much the start of India’s new growth story as the end of a pandemic.

Opinions expressed are personal

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What Is Debt Consolidation And Is It A Good Idea? Fri, 07 Jan 2022 22:45:00 +0000

CNN Underscored examines financial products like credit cards and bank accounts based on their aggregate value. We may receive a commission if you apply and are approved for a product, but our reports are always independent and objective.

According to Experian’s 2021 Credit Report, U.S. consumers with credit card debt have an average balance of $ 5,525, while the average credit card interest rate is currently well above. by 16%.

For people in arrears, high debt and a high Annual Percentage Rate (APR) can combine in the worst possible way, often creating a cycle of high interest debt payments that consumers cannot escape. And, even for those who can Keeping up with monthly payments, too much credit card debt can prevent them from reaching other financial goals, like saving for the future.

Either way, debt consolidation offers a way out of credit card debt that is much less serious than bankruptcy. You just have to be prepared to create a plan and stick to it until you are debt free. If you want to get out of debt for good, read on to find out how debt consolidation can help.

If you’ve been trying to plan your way out of debt or make more money but nothing seems to be working, debt consolidation might be the answer you’re looking for. With debt consolidation, you will essentially be swapping out the loans and credit card balances you have for a new loan product with better rates and terms, thus reducing your monthly payments or making it easier to allocate more. from your money to reducing principal on debt, or both.

Essentially, with a debt consolidation, you take out a new loan and use the proceeds from that new loan to pay off all of your old debts, and then make monthly payments only on the new loan. Broadly speaking, there are three financial products that consumers use for debt consolidation:

  • Debt Consolidation Loans, also called personal loans, allow you to refinance your debts into a new loan with a fixed interest rate and fixed repayment term.
  • Balance Transfer Credit Cards allows you to consolidate your debt on a new credit card that offers 0% APR for a limited time.
  • Home equity loans can help you consolidate your debt into a new loan product backed by the value of your home.

Whichever product you decide to use, remember that debt consolidation only really works if you stop taking on more debt. If you consolidate debt with a personal loan or credit card with balance transfer and continue to charge more for purchases on other lines of credit, debt consolidation is probably a waste of time.

Debt consolidation may or may not be a good idea. It all depends on how seriously you take the process and whether you have the discipline to carry it out.

As an example, let’s say you currently have $ 5,525 in credit card debt at an APR of 19%. In this scenario, you could pay $ 100 per month for this debt for 133 months – or more than 11 years – before it is paid off. During this period, you would have paid more than $ 7,701 in interest.

But what if you consolidate that $ 5,525 of debt into one personal loan? Although personal loans vary, most allow you to borrow money for 2 to 7 years. Personal loans also come with fixed interest rates, fixed repayment terms, and fixed monthly payments.

In this example, you may qualify for a 60-month personal loan with an interest rate of 7%. In this case, you would pay off your balance with a monthly payment of $ 109 for five years (60 months). During that time, you would pay approximately $ 1,039 in interest payments. That’s a huge savings of over $ 6,000.

You can also consolidate your debt with a credit card. However, it’s important to note that while balance transfer credit cards offer an introductory 0% APR on transferred balances, the longest possible term currently offered is 21 months. After that, your interest rate will revert to the normal APR, which will always be high.

For this reason, a credit card balance transfer is only a good idea when you have an amount of debt that you can pay off during the card introduction period. If you need more time to get your debt under control than a balance transfer allows, you should consider a personal loan instead.

Finally, you can also consolidate your debt with a home equity loan that uses your home as collateral. In many cases, this can be a good idea, as home equity loans can come with low fixed rates, as well as a fixed monthly payment and a fixed repayment term. Remember, you need good credit to get a home equity loan, and you can lose your home if you default on your payment.

But, in any of these cases, if after consolidating your debt, you overspend and accumulate an additional $ 5,000 in debt on the same original credit card that you used before that you can’t afford to pay that $ 100 in monthly payments on this debt, you’ll end up paying an additional $ 4,985 in interest. Add that interest to the extra $ 5,000 of debt and your situation will be worse than you started with. This is why it is so important to stay disciplined and not keep spending more than you have when pursuing debt consolidation.

There are other debt consolidation options you can consider, some of which offer help from third party companies. For example, you might consider signing up for a Debt Management Plan (DMP), which takes place when a credit repair agency helps you negotiate interest rates and pay off your debts over a period of time. determined.

Just note that DMPs are not for everyone, and there is nothing credit repair agencies that offer DMPs can do that you cannot do on your own. Additionally, a number of credit repair agencies have gotten a bad reputation, so be sure to do plenty of research before you embark on this route.

Another alternative is debt settlement, which is a process that helps you pay off your debts for less than you owe. However, it is essential to know that debt settlement companies ask you to stop paying your debts while they are working on your behalf. Not surprisingly, this can cause considerable damage to your credit score that can last for years.

Debt management becomes considerably easier when you have a reasonable interest rate and a monthly payment that matches your income. A big part of what debt consolidation does – it helps you transfer high-interest debt to a new financial product on better terms.

Another benefit of debt consolidation is that you can reduce the monthly payments you make. If you’re currently trying to cope with five or six credit card bills, consolidating debt with a personal loan company or peer-to-peer lender can help you make the jump to just one payment per month. .

With that in mind, several factors can determine if debt consolidation is right for you. These include:

  • Your solvency: You will need good credit or better to qualify for a personal loan at the best rates and conditions. If your credit is poor, you may not be eligible for a new loan with better rates than you currently have.
  • Your desire to repay debt: Debt management takes time and effort, and full debt repayment can take years. If you are not serious about debt consolidation, a debt consolidation loan may not leave you in the best position.
  • Your ability to avoid new debt: For your debt consolidation to be successful, you must stop accumulating more debt. While you are paying off your debt consolidation loan, you should only use cash or debit. At the very least, you should use credit sparingly.

So, should you consolidate your debts? If you pay credit cards with high APRs, debt consolidation may be just what you need. Remember, you will only pay off your debt if you make a plan, and most importantly, if you stick to it. If you take out a personal loan and continue to take on credit card debt, you could end up worse off in the long run.

Get all the latest personal finance offers, news and tips at CNN Underscored Money.

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How to change and save in 2022 Thu, 06 Jan 2022 00:56:10 +0000

It is important to use the best financial products and services for your personal situation. But given that our personal situations have probably changed considerably over the past couple of years, how can you be sure that your previous choices are still up to date?

In general, it’s important to compare the cost you’ll pay for a financial product or service to the value it offers. If you could pay less, enjoy more benefits, or both, it might be worth getting off the ship rather than paying the “loyalty tax”. Just keep in mind that there could also be fees or charges that could make the switch less profitable.

The dawn of a new year is as good a time as any to compare financial options, such as:

Mortgage loans

What is the interest rate on your home loan? You may be able to refinance your mortgage and switch to a home loan with a lower interest rate, which will allow you to pay off your property faster and save money on your loan.

Of course, if you are currently on a fixed interest rate, you may not be able to switch lenders yet; at least not without paying for significant break costs.

Remember that a home loan is not limited to its interest rate. You may also want to consider switching to a new mortgage lender if you want access to the features and benefits of mortgage lending that might better suit your new situation, or if you are unhappy with your current lender’s customer service.

A mortgage broker can also help you find the best options for your needs and guide you through the change process.

Personal loans and auto loans

Do you have an outstanding personal loan or auto loan that is burning a hole in your finances? If you’re struggling to manage those repayments, refinancing a personal loan is an option.

Refinancing an auto loan can be an opportunity to upgrade your vehicle to a new model, depending on your financial situation. This could include switching from a gasoline car to a hybrid or electric (EV) vehicle, which could potentially help lower your future ongoing costs. Of course, the higher cost of these cars could mean borrowing more money and going into debt for longer, thus increasing the amount of interest you will pay in the long run, although there are green car loans to consider.

If you have multiple unpaid debts, such as smaller personal loans or credit cards, you may be able to refinance into a personal debt consolidation loan, combining several smaller debts into one repayment, which simplifies the process. things and allows you to progress steadily towards compensation. your debt.

Another potential debt consolidation option could be to add your current personal loans or credit cards to your home loan. While this may allow you to pay less interest on those debts, paying off your mortgage could take longer, costing you more in the long run.

Credit card

It’s all too easy to rack up impressive credit card debt while on vacation. And with credit card interest rates generally high compared to other financial products, you could face significant interest charges if you don’t resolve your balance during the card’s interest-free period.

If it looks like your credit card interest charges may start to rise faster than you can afford to pay off your balance, there are balance transfer credit cards available that may charge 0% off. interest for a limited time (eg 12 months), during which time you can work on paying off your debt without worrying about the added interest charges.

Even if your credit card debt is under control, a New Year can be a good time to ask yourself if your credit card still matches your spending habits. If you are a big spender who regularly clears your balance, you can benefit from a rewards card that allows you to earn points for your spending. But if you often have bad money on your credit card, a low-rate, no-frills option might be a more affordable choice because it will offer a lower interest rate than many other options.


If you’ve delayed reviewing your super, the New Year might be the time to rethink that. If you’ve ever consolidated your Super into one account, it may be worth looking at its past performance and investment options, and consider whether it still meets your needs at your current stage of life. APRA’s list of worst performing funds could be a useful indicator of whether your retirement plans could be overhauled.

Even if you don’t want to spend super funds, it may be worth checking to see if your current super provider has different investment options that could potentially meet your needs better. For example, a Growth investment option could potentially help increase your balance faster, while a Conservative investment option can take less risk, helping to protect the balance you have accumulated so far. Keep in mind that a superannuation is a long-term investment and it may take some time before you start to see results from any changes you make.

Savings accounts, term deposits and current bank accounts

It’s no secret that the past few years have been tough for Australian savers, with interest rates falling. These rates are likely to continue to languish at these low points until the Reserve Bank of Australia (RBA) raises the national treasury rate, which is unlikely to happen until at least 2023.

Until then, if you want to earn more than a token amount of interest on your savings, you may need to shop around and compare your options for savings accounts and term deposits. Remember, you should also consider whether there are any additional fees or costs that could affect the overall value of a savings product.

You can also consider investing your wealth elsewhere, such as stocks or cryptocurrencies. While you can enjoy higher returns, these assets are also riskier and are not guaranteed by the government like savings in an Authorized Depository Institution (ADI).


Whether it’s home insurance, auto insurance, or health insurance, it’s always worth comparing policies and providers to make sure you’re getting the best deal for your situation. You may be able to enjoy service levels, features, and other similar benefits while paying less in premiums if you look beyond your current insurance provider.

Remember, insurance isn’t just about the cost. While it can be tempting to lower your face amount to lower your premiums, it might not be worth the risk of finding yourself underinsured when you really need it. In addition, some insurers may offer access to exclusive services and other benefits that could significantly increase the value of their policies for you.


With many Australians spending more time at home over the past two years, our energy use has changed. Depending on your living situation, you may find that another electricity or gas retailer can offer you a more affordable offer, for example by bundling your services.

Keep in mind that there may be fees and charges involved if you choose to change your energy supplier, such as having a fixed-term energy contract. It may be worth considering whether these additional costs might affect the value you might receive.

If you’re in the market to make your home green by adding solar panels, batteries, or other innovations, it could potentially help lower your home’s electricity costs. A green personal loan can help you manage the upfront costs of purchasing and installing these green technologies.

Telephone and internet

Just like the energy in your home, the way you use your phone and internet services may have changed dramatically over the past couple of years. If you are paying for features, benefits, and services that you no longer use, or are looking for new phone and / or internet services, there may be other options available.

You may have to pay cancellation fees and other costs when you change your telecommunications provider, for example when you break a fixed contract. That said, introductory offers from some vendors can help offset some of these costs.

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Home improvement loan: expectations vs. Reality Fri, 31 Dec 2021 22:31:12 +0000

In light of the current global turmoil, we can all agree that a good home improvement loan is a good idea. People can now consider buying a home and financing it with a home loan.

However, when it comes to applying for a mortgage, there are many misconceptions. For lack of information, many beliefs persist. Read on so we can cover everything from what mortgage lenders expect to the reality of mortgage lending.

Some typical myths regarding home improvement construction loans are described below and the reality behind these myths:

  1. Low Income Cannot Acquire A Home Improvement Loan

For the most part, banks and other financial organizations do not lend money to people with low to moderate incomes.

Many people think that people who earn their money in cash cannot get a home improvement loan. In the past, financial institutions have tended to overlook earning families. They may be making a lot of money, but financial institutions are reluctant to lend to this group due to the informal nature of their business.

It is always best to check what financial institutions in your area are offering for home loans. For example, if you’re in Florida and applying for a Florida home improvement loan, research the options that might meet your needs.

  1. Many documents are always needed

A lot of people thought that they had to submit a lot of documents to home loan experts for a home improvement loan to be approved. But this is not true. Another common misconception is that obtaining a loan requires submitting many documents. Ultimately, the most important factor in getting credit is a good FICO score.

Recognition of all advanced applications is considered a prerequisite. Either way, it’s a well-known story. Having a good FICO score does not guarantee that you will be approved for a home loan. Various things determine whether or not a borrower is approved for a home loan, including the borrower’s monthly income, monthly consumption percentage, and other obligations. Then home promotions are approved.

  1. Loans are guaranteed to be approved if you have a good credit rating

High credit scores are among the most important considerations in obtaining many loans. Some lenders believe this is the most important factor in all home loan applications.

This is a misconception, however. Having a good credit rating does not guarantee that you will be approved for a home loan. The approval of home loans depends on other aspects including the borrower’s monthly income, monthly expense ratio, outstanding commitments, etc.

You don’t need a good or a high credit score to get most loans. Bad credit doesn’t always mean you can’t get a loan, as lenders often consider the borrower’s ability to repay the amount.

  1. The best option is a low interest loan

A reduced interest rate does not guarantee the best rate for the borrower. Several elements contribute to the total cost, including additional costs. There are other important factors that a mortgage borrower needs to consider, such as the initial loan processing fee, the time it takes to complete the loan, transaction costs, legal fees, and more.

However, some lenders do not impose additional fees on their consumers, and this is how they can offer their clients the best deal.

  1. Taking a new loan to pay off an old one is part of the process of changing lenders

Many mortgage borrowers believe that if they change banks, they will have to start over and pay off their debt. You can find a breakdown of your loan principal and interest payments in the “Home Loan Amortization Plan”.

It’s important to know how much money you still owe your old bank or financial institution and how many months you have left to pay it off before you switch banks.

  1. They saved enough for a down payment

This seems to be the most “surprising” element for many newbies. In addition, it is one of the most difficult to convey, especially for real estate lenders. As a result of years of savings, individuals can assume that they have a substantial down payment, but it is less than necessary.

They often have their hearts set on a home that is financially beyond their reach. Additionally, they may have overlooked stress testing procedures. If you are looking to buy and upgrade your home for less than $ 500,000, you will need to pay at least 5%. To prevent your mortgage from being classified as a high ratio loan and requiring mortgage insurance, a 20% down payment is best.

  1. Owning a home won’t cost more than renting one

Most of the time that is not true. Homeownership comes with a lot of responsibilities, which many people overlook. This includes property taxes, insurance and home maintenance.

For this reason, we constantly recommend first-time buyers to sit down and “practice” the extra pressures and expenses. Assessing your financial preparation for homeownership now can save you time and headaches in the long run.

  1. We will take anything in any price range, as long as we can pay for it on time

This is not a wise or recommended course of action. Pick a price that will allow you to afford home improvement and upgrade projects, such as new flooring, new windows, and new doors. You can dramatically reduce the amount of money you borrow by looking for properties that still meet your needs but may require a bit more work. You can save money in the long run if you are prepared to look at various properties.

  1. An increase in interest rates leads to an increase in monthly payments

When you hear that interest rates are going up, the first thing that comes to your mind is that you will have to pay a higher monthly IME. However, this is not the case at all and

In most cases, home loans have variable interest rates due to their longer term of 15 to 20 years. Based on the repo rate set by some banks, the interest rates charged by financial institutions for lending money are determined.

Final words

Homeowners’ expectations rarely match what they get when they take out home improvement loans. While some areas of their knowledge may be lacking, there are others that we have discovered that they may not be aware of. This business is constantly changing, which makes it difficult to stay consistent in everything. Consider consulting a mortgage broker if you have any questions, concerns, or just want to anticipate during the loan process.

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Reorganization, restructuring and consolidation programs – Corporate / commercial law Thu, 30 Dec 2021 22:21:18 +0000 To print this article, simply register or connect to

Reorganization and restructuring with a view to consolidation require special treatment, are complex, lengthy and very difficult.

Gold medal for the RSM advisory team

Q: Recently, your company was recognized in the Successful Reorganization, Restructuring and Consolidation Programs category. Share with us some of the main points of the case that required special attention and approach?

N / A: RSM’s advisory team was recently recognized in the Successful Reorganization, Restructuring and Consolidation Programs category with the Gold Award for its successful approaches and case management strategies delivered to a wide range of clients from different market segments. .

One of the files that we had managed, I have to say it was quite demanding and complicated, concerned a company that was a step before it collapsed and closed its activities. Excessive borrowing, public debt, large debts to traders and other creditors had driven the company into a free fall with its bottom line unable to meet its obligations. In addition, the company failed to meet its loan obligations, resulting in court rulings against it by the financial institutions it worked with, putting its operations at risk.

Through in-depth study and analysis of company data and projections, our approach has focused on two main axes. The first area has identified strategies to develop its business operations and improve its profitability to strengthen its liquidity. At the same time, the second axis concerned the consolidation and management of the company’s financial commitments.

Based on the first area target, less than a year after providing our consulting services, the company has seen a more than 25% increase in sales, while profitability has increased 18-fold from results. of the previous year.

After our in-depth analysis and our negotiations with numerous financial institutions, the second axis concerned the reimbursement of the company’s bonds; we have reduced loans by over 80% and increased working capital. At the same time, public debts and creditors have been put into a repayment program within secure limits and deadlines for the company.

Indications of reorganization and restructuring

Q: In general, when does a business typically reorganize and restructure? Are there any indicators or points that signify these procedures?

N / A: In general, a company carries out reorganization and restructuring strategies either in its entirety or in one of its sectors of activity, to reverse the unfavorable conditions created or prevent unfavorable situations likely to affect negatively. business development.

The purpose of reorganization and restructuring is to achieve company goals and strategies and to implement defined business plans.

Internal and external factors determine whether a business will need to reorganize and / or restructure.

In most cases, internal factors tend to be more predictable and can be identified through economic and non-economic indicators when evaluating historical and future data.

In contrast, external factors are less predictable. To identify external factors, you need to perform a more comprehensive analysis of economic strengths and trends and consider a variety of factors that can directly or indirectly affect the growth of the business.

At this point, it should be mentioned that, unfortunately, in Cyprus, many entrepreneurs do not have the proper mechanisms to track, monitor and evaluate their financial data in order to identify in time the issues that may affect the development of their business in order to adapt their strategies. As a result, they often become aware of the problem when the company is already in an unfavorable situation.

Strategies and Procedures

Q: To be successful with reorganization and restructuring, it is necessary to follow a carefully researched and structured methodology and process that aims to achieve a specific desired result. What primary data should be analyzed to determine the strategies and procedures to be followed?

N / A: Several factors may create the need for a company to proceed with restructuring and reorganization procedures, including the entry of new competitors into the market, high production and / or operating costs, inadequate financial controls, changes unpredictable demand, mismanagement, lack of liquidity, over-indebtedness, etc.

Each case is unique; it has its own specific characteristics and requires an adapted approach to determine the strategy and the implementation plan. However, the goal always remains the same; the continuation and development of the company’s activities and the improvement of its financial indicators.

Therefore, a multi-level analysis of the business should be performed to determine the appropriate strategy that will lead to the desired results. As an indication, the data analyzed in such cases concern:

  • the history of the company and its history during its years of activity,
  • the reasons why the company found itself in such an unfavorable situation,
  • the projections it has in the area where it operates but also the general economic environment,
  • improvements that can be applied to the operations and structure of the company to achieve economies of scale, cost controls, the development of its production processes and promotional activities, etc.
  • its assets and how they can be used either to generate additional income or to increase liquidity,
  • the company’s commitments to financial institutions or creditors and how they are served.

RSM Methodology

Q: What approach and methodology does RSM Cyprus follow in customer management?

N / A: Nowadays, companies operate in a very competitive environment, with high operating costs, rapid technological developments, changes in know-how, strict and continuous changes in legislation and compliance issues that make management and complex and multidimensional business operations.

We, as RSM, have our own philosophy and our own approach to our customers. The power to be understood is the principle that we support and follow.

We listen to the needs of our customers; We focus on understanding the company’s vision and how it works, its activities, concerns and issues. Using this knowledge, we can suggest strategies and procedures that will lead to the best possible results. We are next to our customers and we know their issues and concerns. Therefore, we always offer suitable and effective solutions for each client individually, taking into account all the parameters that may affect the development of their business.

As the 6th largest international network of auditors, tax specialists and consulting professionals, we aim to serve local and international businesses by offering a wide range of services which cover the needs of each client separately.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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Loan growth, OZK Restructuring Aid Bank (OZK) in a context of low interest rates Wed, 29 Dec 2021 15:45:00 +0000

This story originally appeared on Zacks

OZK BankOZK’s business restructuring and branch consolidation efforts are expected to continue to support growth. Additionally, decent loan application will likely help sales in a low interest rate environment.
Zacks’ consensus estimate for the company’s current year earnings has been revised up slightly over the past 60 days. This shows that analysts are optimistic about OZK’s earnings growth potential. Thus, the company currently holds a Zacks Rank # 2 (Buy).
Over the past year, OZK Bank shares have gained 48.5%, slightly outpacing the industry’s 47.7% growth.

– Zack

Zacks investment researchImage source: Zacks Investment Research

Looking at fundamentals, Bank OZK’s revenue has seen a compound annual growth rate (CAGR) of 15.3% over the past six years (2015-2020) with the uptrend continuing into the first nine. months of 2021. The increase was mainly due to the regularity of growth loans.
Thanks to its expansion strategy, the company was able to increase its deposit balances. Over the past six years (2015-2020), deposits have experienced a CAGR of 21.9%. Of the total deposits, 22.8% included non-interest bearing deposits as of September 30, 2021.
In addition, Bank OZK has a strong balance sheet. As of September 30, 2021, the company had total debt of $ 1.22 billion and cash and cash equivalents of $ 1.78 billion. So, given a strong liquidity position and decent earnings strength, it should continue to honor its short-term debts even as the economic situation worsens.
The change in the operational context in 2020 due to the uncertainty induced by the coronavirus has led banks to realign activities to customer needs, with a greater emphasis on digitization. Thus, the OZK Bank evaluated its network of branches. As part of that effort, the company pulled out of Alabama and South Carolina and closed three branches in Arkansas and one in Florida. In the third quarter of 2021, it closed three branches – two in Georgia and the only depository branch in New York.
The company’s capital deployment activities appear impressive. It has steadily increased its quarterly dividends. Last October, OZK increased its dividend for the 45th consecutive quarter. Given its strong capital position as well as lower debt and dividend payout ratios than its peers, Bank OZK will likely be able to maintain efficient capital deployments, thus continuing to improve value for investors. shareholders.
However, the company’s net interest margin remains under pressure due to the low interest rate environment. While the NIM rose in the first nine months of 2021, it also experienced a downward trend before that (from 5.91 in 2012 to 3.81% in 2020). In addition, the continuous increase in expenses (mainly due to an increase in salaries and social charges) and the significant exposure of the company to real estate loans (77.4% of total loans as of September 30, 2021) we raise concerns about its growth prospects.

Other actions to consider

Some other top ranked stocks from the same space are Bancorp Merchants MBIN, Community Banking System, Inc. CBU and Fulton Financial FULL. While MBIN currently sports a Zacks # 1 (strong buy) rank, Community Bank System and Fulton Financial carry a Zacks rank of 2. You can see The full list of today’s Zacks # 1 Rank stocks here.
Zacks’ consensus estimate for Merchants Bancorp’s earnings for the current year has been revised up 9.5% in the past 60 days. MBIN shares have risen 74.7% in the past year.
Profit estimates for CBU have remained unchanged for 2021 for the past 60 days. Over the past year, shares of Community Bank System have risen by 20.6%.
Fulton Financial has not recorded any changes in its earnings estimates for 2021 in the past 60 days. The stock has climbed 37.1% in the past year.

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Rising budget deficit, debt at the top of post-COVID problems Mon, 27 Dec 2021 20:09:00 +0000

MANILA, Philippines – Withdrawing support to vulnerable sectors amid the green shoots of economic recovery as well as reducing the budget deficit and rising debt would be the main challenges as the Philippines emerges from its economic slump. pandemic, according to the state-lead think tank Philippine Institute for Development Studies (PIDS).

“As the Philippines is likely to remain in a gray area where relief and stimulus spending will be needed to support the economy, at least for the next year, the important areas for public spending will still be infrastructure, which has suffered a severe downturn. reduction during the pandemic and education, outside of health and social protection, “said Margarita Debuque-Gonzales, principal investigator of PIDS, in the article” Navigating the COVID-19 Storm: Impact of the Pandemic on the Philippine Economy and Macro Responses of Government ”published Monday. .

“Such investments will help minimize the loss of human and physical capital suffered during the height of the pandemic. They will not only strengthen aggregate demand, but also prevent economic scars, ”Gonzales said.

Output losses

Earlier estimates from the state’s planning agency, the National Economic and Development Authority (Neda) had shown that strict COVID-19 lockdowns in the past, which prolonged high unemployment, reduced government revenues and delayed return to in-person classes for schoolchildren would cost the Philippine economy up to 41.4 trillion pesos in production losses through 2060.

Socio-Economic Planning Secretary and Head of Neda Karl Kendrick Chua had said that while the return to pre-pandemic growth potential, including record poverty and unemployment rates, could be delayed by 10 years, foreign investment and other reforms underway in Congress could accelerate the recovery.

For Gonzales, “in a post-pandemic world, the country’s policymakers will need to strategize on how to keep the economy stable after the once-in-a-lifetime shock.”

“A suitable outing must be organized,” she added.

The Bangko Sentral ng Pilipinas (BSP), for example, was to “[determine] the right time to reverse liquidity and credit support measures so as not to dampen growth, ”she said.

Gonzales noted that monetary authorities have extended liquidity support and regulatory relief to calm domestic financial markets amid the protracted pandemic, in addition to legislative measures such as the Strategic Transfer of Financial Institutions (Fist) law. and the unified initiatives of government financial institutions underway for troubled businesses for the Economic Recovery Bill (Guide).

Policy Toolkit

“While monetary and fiscal financing arrangements can be useful in times of emergency, they need to be put back into the policy toolbox when conditions normalize. Extending such agreements would only increase the risk of perceived fiscal domination and decrease both monetary and fiscal independence and credibility, and ultimately weaken inflation control, ”Gonzales explained.

On the fiscal side, Gonzales said the government “would have the enormous task of reducing the country’s budget deficits after much-needed pandemic spending, especially health spending, and permanent tax cuts.”

Gonzales was referring to the Business Recovery and Tax Incentives for Businesses Act (CREATE), touted by President Duterte’s economic officials as the “biggest stimulus package for businesses in the country’s history” because it reduced the corporate tax rate to 25%. percent while reducing the micro, small and medium-sized enterprise (MSME) levy to 20 percent, retroactively to the middle of last year, from 30 percent previously, which was the highest in the Association of Nations from Southeast Asia.

The government hoped that the tax savings businesses made from CREATE would be reinvested as the economy recovered.

“While additional public investment is needed to heal the economic scars of the pandemic, the longer-term goal should be to gently place the country on a downward debt path – towards more sustainable levels, ideally through to higher growth rather than inflation and in the same way. unfair measures, ”Gonzales said.

The budget deficit has swelled since last year as the government had to increase its COVID-19 war chest amid a protracted pandemic, while tax and non-tax revenue collection weakened due to the worst Post-war recession recorded in 2020, which shed millions of jobs and shed thousands of businesses.

Last year, the budget deficit more than doubled to 1.37 trillion pesos or 7.6% of gross domestic product (GDP), from just 660.2 billion pesos or 3.4% of economic output in 2019, before the pandemic.

While the emerging 2021 deficit estimated at 1.6 trillion pesos will be narrower than the scheduled 1.8 trillion pesos, it will remain the largest in history. To finance the widening budget deficit, the government also increased borrowing, so that the debt-to-GDP ratio hit a 16-year high of 63.1 percent in September.

The combination of a debt-to-GDP ratio above the 60 percent level considered by debt watchers to be manageable among emerging markets like the Philippines, plus a huge budget deficit, had posed risks to credit ratings. Philippines.

But as the economy recovers from the pandemic-induced crisis, the Cabinet-level Development Budget Coordination Committee (DBCC) expects the budget gap to gradually narrow to 7.7 percent of the budget. GDP next year, 6.1% of GDP in 2023 and 5.1% of GDP. in 2024. At the same time, the debt ratio was expected to end in 2021 at 59.1% and peak at 60.8% in 2022 before falling to 60.7% in 2023 and 59.7% in 2024.

With the fiscal consolidation strategy currently being developed by the Ministry of Finance (DOF), DBCC wanted to return to pre-pandemic deficit levels of around 3% of GDP beyond 2024.

DOF officials said the next fiscal consolidation strategy could possibly include new or higher taxes that the next administration could implement to generate more revenue.

DBCC expects 2019 pre-pandemic revenues of 3.14 trillion pesos to be exceeded from next year, with an estimate of 3.3 trillion pesos; 3.62 trillion pesos in 2023; and 405 trillion pesos in 2024.

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Inflation Hunters: 10 Reliable Ways To Stretch Your Money And Fight Soaring Prices Sat, 25 Dec 2021 19:00:00 +0000

Inflation Hunters: 10 Reliable Ways To Stretch Your Money And Fight Soaring Prices

Thanks to COVID-19, shortages of goods and workers have pushed inflation to its highest levels in decades. And, today’s already mind-blowing prices are expected to continue to rise.

The Federal Reserve is no longer suggesting that high inflation will go away soon, and various forecasters are predicting that it will continue to compress your portfolio until the new year.

What can you do? A good retaliation strategy is to take advantage of simple ways to stretch your money and get the most out of it.

Here are 10 ideas to put some cushioning in your budget, so you can show inflation who’s boss.

1. Reduce the cost of your debt

baranq / Shutterstock

High interest rate debt from credit cards and personal loans can take a heavy toll on your bank balance, especially if you only make minimum payments each month.

To reduce the cost of this debt, you can take out a debt consolidation loan. You’ll trade in all of your current balances – on credit cards, loans, everything – for a single monthly payment at a lower interest rate.

You can borrow money without collateral at rates as low as 5.95%. Depending on how much interest you are currently paying on your debts, consolidating them could save you thousands of dollars and help you free yourself from debt years earlier.

2. Find your long lost money

You know where all your money is, right?

In fact, people are moving on and forgetting about the money in their old accounts all the time. It is so common that Americans currently own more than 40 billion dollars in the unclaimed funds that await them.

Does it belong to you? Look for, which will indicate if you left money in an old checking or savings account, or if you are entitled to unclaimed life insurance policies from deceased relatives. (You’ll want to be a lot more careful when purchasing your own life insurance policy.)

You should also check with the IRS if you are missing any tax refunds. You can change your previous tax returns for up to three years if you were eligible for a refund but did not request it.

3. Refinance for a cheaper student loan

Young blond woman wearing graduate uniform over isolated background depressed and worried in distress, crying angry and scared.  Sad expression. / Shutterstock

Payments on federal student loans have been on hold for a long time, but if you have student debt to a bank or other private lender, you’ve always been required to pay your regular monthly minimum.

The good news is that interest rates on student loan refinances are at an all time high, even below 2% in some cases. So, you could pay off your current debt with a new, cheaper refi loan.

When you refinance a student loan at a lower rate, your monthly payment goes down, so you can pay off your college debt faster.

You can find quotes from multiple lenders within minutes, so shop around and make sure you’re getting the best rate possible.

4. Use technology to save money when you shop online

If you do most of your shopping online, and nowadays, who doesn’t? – you probably go to the same website over and over again. You know the one.

But Amazon doesn’t always offer the best prices, and no one has time to check the prices in every store.

You can let technology do it for you. You can download a free browser extension that will automatically find you deals and discount codes every time you shop online.

You can also set price drop alerts for your favorite products. So, if they are on sale, you will be the first to know. Installing the add-on only takes a moment and can save you hundreds of dollars per year.

5. Play the market with as little as $ 1

Young smart professional woman checking stocks on her smartphone.

Maridav / Shutterstock

If you’ve never put money on the stock market, you might think that owning a part of a well-known business is out of reach. After all, stock prices have been climbing higher and higher over the past year.

But a popular investing app will let you buy companies like Google and Tesla for as little as $ 1 – and when they cash in, so will you.

You can invest in fractional stocks, options, exchange-traded funds (ETFs), and cryptocurrencies, and you won’t have to pay any commissions.

6. Lower your auto insurance bills

If you have a car and aren’t looking for cheaper insurance every six months, you could easily be paying hundreds of dollars a year too much.

Comparing the rates of multiple insurance companies may seem like a lot of work, but some websites do the trick for you. You could find a better deal within minutes.

You’ll answer a few quick questions and be presented with the best quotes from hundreds of auto insurers. This way you can find the lowest price available on the coverage you currently have.

7. Stop paying so much for home insurance

Older residential area of ​​houses.

Noel V. Baebler / Shutterstock

Home insurance rates have gone up for many Americans. But if your bill seems too high, you may be able to cut it down to the right size by doing some good old fashioned shopping.

Don’t marry a policy that might cost too much. Instead, go online and compare quotes from hundreds of insurers to find a better price.

Answer a few basic questions and you’ll instantly see the best deals available in your area.

You could save almost $ 1,000 per year on your home policy by comparing rates, while still maintaining the same level of coverage you currently have.

8. Switch to a high deductible health plan and HSA

If you’re in relatively good health, and your medical expenses typically don’t go beyond checkups and exams, a high-deductible health plan could save you money.

Your deductible is the amount you pay out of pocket before your insurance covers the rest. The higher the deductible, the lower your premiums will be.

Also note that switching to one of these health plans will make you eligible for a Health Savings Account (HSA), a tax-advantaged account for medical expenses. The funds in the account grow tax-free, and as long as the money is used for qualifying health care expenses, it can be withdrawn tax-free.

You will want to do online comparisons to find the high deductible health plan that offers the right coverage at the lowest rate.

9. Get paid when businesses behave badly

Cropped image of male hands handcuffed behind back

Billions of photos / Shutterstock

When companies do the wrong thing, they get sued – and sometimes their customers are compensated.

A site called will show if you are eligible for a refund for any product or service that has been falsely advertised, defective, or overpriced.

Recent settlements have involved Apple, Tesla, Juul, and other companies. Many class action claims can be processed online in a matter of minutes, although it may take up to a year to receive your refund.

Eligibility criteria will vary depending on the lawsuit, but in some cases you may not even need a receipt to be reimbursed.

10. Earn money with your change

Another way to use the stock market to help you fight rising inflation is to put your money to work.

You can use a popular app that helps you build a diversified portfolio by investing only your “reserve currency” from your daily purchases.

Inflation can eat away at the value of money, but your currency is far from worthless. If it’s saved and invested correctly, it could turn into hundreds of dollars over the course of a year.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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