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Tips for those who want to pay off Personal Loans early

Published on March 5, 2021March 6, 2021

Financial products are the most heavily marketed products on the planet because they have such a high profit margin. Banks borrow money at 1 to 3 percent and loan it out at anywhere from 4 to 40 percent. The interest rate includes the loan administration costs and the losses from those that default on the loan, but a large percentage of it is profit. And you’d do better in life if you paid off your loans early and started saving up for what you need instead of borrowing money for your next purchase. Here are a few tips for those who want to pay off personal loans early.

Know the Rules Before You Apply for the Loan

Can you pay off personal loans early? Most loans can be paid off early, though there may be a prepayment penalty, as stated by matchfinancial.com. For example, some mortgages are closed. They may prohibit you from paying down the principal, though most will simply limit how much you can pay against the principal and when you can do so. Others charge you a fee to offset the interest they lose if you pay extra toward the home loan. Credit cards don’t have that type of limit, though they may push you to use it by charging an annual fee if you don’t charge more than a given amount each month.

What about unsecured loans? Lenders may charge you a lower interest rate if you sign up for a loan that charges a penalty if you pay it off early. They do this for the same reason mortgages may charge a penalty proportional to the interest payments they’re losing – to guarantee their profit margin. How do you avoid these prepayment penalties on an unsecured personal loan? Research the terms and conditions of the loan before you sign up for it. If they charge you a penalty for prepaying the loan, you can choose another financial product.

Run the Numbers

What should you do if you’ve already taken out a loan that charges a prepayment penalty if you pay it off early? Run the numbers. Would you actually save money if you paid off the loan early? The answer is yes if the prepayment penalty is less than the interest you’d pay over the remainder of the loan. However, that may not mean that paying down that particular loan is the best use of your money.

For example, would you save more money over the long term if you used that money to pay down credit card debt? You might want to save the money in an emergency fund instead, too. While that account doesn’t generate anything in terms of interest, it could be worth it if the savings allow you to pay for future expenses with cash instead of borrowing money at 10 to 20 percent for the next major expenditure.

Get on a Budget

Personal finance is ninety percent personal, ten percent finance. You can’t get out of debt unless you get control of your money. And the best way to do that is to make a budget. How much money do you have coming in every month? How much money is going out every month in regular bills? This category includes rent, utilities, phone bills, car payments, childcare, and taxes. How much do you have left over after the essentials? If the answer is zero or negative, you can’t get out of debt until you make dramatic lifestyle changes. This could include anything from moving to a smaller apartment to requesting additional child support to changing childcare providers. Or you may have to stop shopping at the expensive organic grocery store and buy generic brands at the grocery store. For some, the solution is canceling the unnecessary line items coming out of the paycheck at work. Stop contributing to the retirement plan when you’re paying 30 percent interest on debt. Don’t pay for unnecessary cancer insurance through work. Don’t assume that the life insurance and auto insurance your employer offers are the best deal. And you may be better off reducing the amount of coverage you have or increasing your deductible, so you have more money to pay your bills.

Suppose you have some discretionary income. Compare all of the optional and ongoing bills you have that fall into this category. How much are you spending on eating out and evenings out? How much are you spending on apps, games, and streaming media? If these expenses exceed what you have available in discretionary income, start canceling subscriptions and finding cheaper ways to have fun. Cancel the gym membership and start running in the park.

The goal is to have at least ten percent less going out than coming in. This gives you margin to pay for a higher than average electric bill or grocery bill. The first month you have this extra money, save it, so that you can use it to pay unplanned expenses.

Use Your Extra Cash to Pay Off Debt

We’ve already addressed the need to get on a budget and use the first month’s savings to create a starter emergency fund. The next month, you should use this additional money to pay down your highest-interest debt. If the debt is too large to feel like you’re making progress, then use that money to pay off a little debt. When you wipe it off the books, it feels like an accomplishment, even if it is a little medical bill or ex-partner’s phone bill you were reluctant to pay.

Use any and all additional cash to pay off debt. This could be rebates from electronics purchases, financial gifts from relatives, a tax rebate check, or a deadbeat friend finally paying you back. Use this money to either pay off your debt early or add to your emergency fund. Only reward yourself after you’ve eliminated a debt. Then you won’t reward yourself by spending windfalls of cash as if you deserve something for receiving it.

One way to maintain momentum is to create a list of debts that you post on your refrigerator and/or track on your phone. Check it regularly and make a big deal out of striking something off your list. This may help you avoid splurges and extras when the goal is to pay off your debt early.

How To Cash Out Large Amounts Of Bitcoin Safely

Published on July 10, 2020February 6, 2021

Business

People who invested in Bitcoin wisely and now have a large sum of it, all have the same question: How to cash out large amounts of Bitcoin safely? In the same manner, this question bothers those who only plan to get rich on Bitcoin. Anyway, it’s good to know the answer, and we’re here to give you one. First of all, if you want to cash in a large amount of Bitcoin, then you are rich and should be extremely happy, not worried.

Back in the day, people started working with this cryptocurrency out of curiosity or getting familiar with a new trend, but with time some of them managed to get rich in Bitcoin. Today, money is the main driver behind most people, and if you are reading this because you are ready to cash in, we’re glad to have you on board. Let’s go through the sundries of getting Bitcoin withdrawn to your bank account and convert it to regular currency.

First thing first – large amounts of Bitcoin attract attention. While you probably have no issues withdrawing a small amount of Bitcoin, but with cashing in large quantities, you need to be careful. If we’re talking about a really massive sum, then you can expect that after cashing in, nothing is going to be the same for you. This fact is the primary reason why you need to take this action seriously. First of all, let’s talk about withdrawal limits.

Withdrawal Limits

In order to accumulate Bitcoin, you’ll need to cooperate with an exchange. By now, you probably know this information. What you also know is that most exchanges have withdrawal limits. Depending on terms of service yours has, you can either withdraw only a couple of thousands at a time, or it can be hundreds of thousands. Whatever the case might be, you’ll need to know this in advance. If the sum you want to cash in is more significant than the one allowed, you’ll have your money sitting, without knowing what’s causing the delay. Other things you’ll need to pay attention to are banks and taxes.

Banks and Taxes

Your bank won’t sit idle while your bank account starts getting richer from Bitcoin money. If you begin receiving large payments into your account, the bank will look into it. If they get really suspicious, your account might even get frozen. To avoid this, you’ll need to get familiar with the policies your bank implements. After that, you have the second most certain thing in the world after death – taxes. Large amounts of Bitcoin turned into cash are taxable. And compared to the smaller amounts of Bitcoin, large withdrawal brings more charges. Before you cash in, you need to know how much is that going to cost you in taxes, so that you can stay in the clear from law enforcement agencies.
To learn more about investing in bitcoin visit https://criptoeconomia.com.br/en/bitcoin-loophole/.

Converting Bitcoin to Other Currencies (Fiat)

Some of you used Fiat to buy cryptocurrencies at the beginning. It works the other way around. You can convert your Bitcoin to Fiat if that’s what you want. But, you need to be careful when doing this if you plan on converting large sums. This article revolves around the matter of converting a large amount of Bitcoin into a Fiat currency. Keep reading and learn what else you need to do.

Lawyer up

This is an essential step which you shouldn’t skip. To avoid tax and legal issues is better to have an attorney to show you the legal side of cashing out large amounts of Bitcoin. Tax fees are different from state to state. When you get ready to cash in, you’ll want to lose as little as you can to taxes. Because of this, you’ll need legal help. Lawyers also cost money, but they won’t waste your money or time. If the money you’ll receive from Bitcoin is life-changing, you’ll want it to be as clean as it can get, and someone familiar with tax law will help you with that.

Check Out Bank Policies

As we already said, if you don’t warn your bank, there’s a chance they freeze your account. To avoid this, you’ll need to talk to your bank. They need to know that you are about to deposit a large amount of money on your account. There’s even a chance that they won’t allow the transaction at all. Banks have different policies on cryptocurrencies, so you might also be forced to change the bank to find one which will accommodate your needs. Be sure that you are cooperating with the right one to avoid the unnecessary hustle.

Chop Your Withdrawals Into Pieces

If we are talking about a really massive sum, it would be wise to withdraw your Bitcoin in smaller portions. If you try to cash out all at once, there’s a chance of something going wrong. If this happens, all of your money could disappear. Smaller withdrawals – more security. You don’t want to lose any of your money, so just be wise with it. There’s also an option of withdrawing your cash through different methods such as peer-to-peer, OTC, and cryptocurrency exchanges.

The Most Important Thing – Taxes

When you cash out all of your Bitcoin and a large amount of money is now on your bank account, you need to do one last thing – report your taxes. Yes, you can try to play out the state where you live, and there’s a chance that you’ll succeed. But, there’s an even bigger chance that you’ll get caught, and then there are legal consequences. You don’t want this to happen, so do not avoid taxes at any cost. Report your gains, pay the fees, and live without the paranoia that one-day authorities will knock on your door, as they definitely would.

Conclusion

The thing is simple – you have Bitcoin, and you want to cash in. Above, you have all the steps you need to take. Talk to your bank, get a lawyer, and pay your taxes. If something still remains unclear, you can look at other sources. For more information, visit https://bitcoins-digital.com, and get even more thoroughly acquainted with this subject.

7 Important Things You Need To Know About Bankruptcy

Published on October 4, 2019January 14, 2021

Tips

Uttering the word “bankruptcy” was once taboo. Anyone that found themselves over their head in debt without any way out would only consider such an option in total secrecy. However, as more people find their way deeper in debt the stigmatism associated with these words is quickly evaporating.

So, if you find that you are over your head financially and cannot see a way out, you should consider taking the help of professionals from accrediteddebtrelief.com as they might be able to find a way that is better than filing for bankruptcy. However, if you are sure to file for bankruptcy, you should also know that you will suffer some backlash for years and your credit will be affected badly. Here are some things you should consider before filing for bankruptcy.

1. There Is More Than One Bankruptcy

There are at least two different types of bankruptcies for individuals. Chapter 7 allows an individual to completely liquidate their assets and then use the money received to pay off their creditors. In Chapter 7, some physical assets you own can be excluded from the process (car, home, and personal possessions). In Chapter 13, your debt is reorganized with the courts help so you can pay off most of it.

2. It’s A Long Process

Going through bankruptcy proceedings is not as cut and dry as it seems. It is not like you will file and the next day and it’s all over. Expect to spend a minimum of four months going through the entire process if you are filing for Chapter 7. Chapters 11 and 13 could easily take years before it is all over.

3. Your Finances Are Opened Up For Public Scrutiny

Usually, when people are in serious debt, they try to hide their personal financial situation. When you file for bankruptcy though, get ready to go public. Your financial record will be exposed to the public listing all of your debts, assets, expenses, and income – mistakes and all. You will be asked probing questions in front of creditors, which can be very embarrassing.

4. Some Debts Cannot Be Discharged

When filing for Chapter 7, some debts like credit cards, repossessions, medical bills, and unpaid rent may be discharged, but there are some debts that cannot. If it is revealed that you made excessive use of your credit just prior to filing bankruptcy, creditors can challenge the request to eliminate them. You may not be able to get rid of some debts and end up footing the bill for them anyway. If you are unsure about the entire procedure, you may seek advice from the professionals from kanialaw.com. They would be able to help you in such stressful situations.

5. It’s A Complicated Process

Filing for bankruptcy is not easy. You will be required to fill out many confusing and difficult forms, that contain complex questions in relation to your finances. It is not a process that can be rushed so make sure you have adequate time to understand and fill everything out honestly and as accurately as possible. This is why most people opt to use a bankruptcy attorney to walk them through the process.

6. It Will Affect Your Credit Score

While there are many factors that go into determining your credit score, expect that you will get at least some negative impact. On average, a person’s score could expect to drop as much as 200 points, which could be very damaging. This could kick you off a good credit rating for several years after you file.

7. It Is Not Cheap

The cost of filing for bankruptcy can vary depending on individual circumstances, but it will cost you. Some people can save on bankruptcy fees by filing all the forms themselves, but even then, there are expensive filing fees that need to be covered. If you hire an attorney to do much of the grunt work for you, then expect to pay anywhere from several hundred to several thousand dollars, depending on how much work is involved.

Filing for bankruptcy is one way, but it comes with many challenges. Before you file, make sure you fully understand everything that is involved so you can navigate safely through the complex process.

In Australia, Consumers are Standing up to Big Banks

Published on August 29, 2019

Economy/Finance

After years of stability, some turbulence prompted Australians to switch credit card providers en-masse. Here is why:

The saying “needs must when the devil drives” has been thoroughly tested in other banking sectors around the world, but in Australia, where the recession has been absent for more than a decade, people were always very loyal to their banks and hardly ever switched. This all changed during the recent property crash when big banks started to recall loans from clients they knew for years – and when the RBA lowered interest rates, but many card providers did not reflect this amply in the way they charge the consumer.

The consumer was eventually left with no other choice but to switch

Today, credit card comparison websites are popping up across Australia – and a more open market finally means that consumers have more choice to escape the debt trap laid by some of their card providers. People have realized that the banks are looking after themselves first and now consumers are mirroring that approach as we discuss below:

A man on a mission to educate and inspire change

Meet Roland Bleyer – the CEO of Australia’s leading credit card comparison website Creditcard.com.au. He is the man behind thousands of people who abandon the big banks for alternative options, all to get a better deal: more favorable terms and lower interest rates. When asked how he went about inspiring such a cultural shift in a country that is rather conventional with issues such as personal finance, Bleyer said: “We did this by equipping the public with powerful information in a series of courses they access on our site – and by connecting them to better options from alternative providers in a few simple clicks. By leveraging AI and technology to pair match the right people with the right providers, we save time for both parties, delivering a win-win outcome”.

Bleyer explained the magnitude of the credit card phenomenon in Australia, where people are totally in love with credit: “We might be a nation with a fantastic GDP per capita, yet Australian consumers racked up $50 Billion in credit card debt. If it was zero interest, fine, but it’s not: a massive $5.3 Billion was paid in credit card interest last year. Furthermore, it costed $1.5 Billion in credit card fees In Foreign fees alone. This comes to over $1 million dollars a day. When you think about these facts and the reality that Australians present a lower risk to banks than people in other struggling economies or heavily populated high-unemployment regions, well then Australians are not getting a good deal! So they have no choice but to compare the leading credit card deals to fight the banks – and get the deal they deserve”.

The rise of alternative credit card options

Whereas previously, the privilege to issue credit cards was severely limited to a handful of banks, today Bleyer’s comparison site features a string of providers such as NAB, Me, Virgin Money, Latitude, ANZ, American Express, Bank of Melbourne, BankSA, Citi, Wespac, HSBC, BankFirst, BOQ, BCU, Bank of US, Bank of Sydney and Bank West.

Evaluating a plethora of options in seconds

It would, however, have been impossible for the average working person to find the time to compare all these banks individually and make a decision. This is where comparison websites come in: At the click of a button, they aggregate the various options available. Consumers can then see a side-by-side comparison of what might be best suited for their individual circumstances. Some have lower interest rates; others have better perks while you spend (including air miles and zero fees on international transactions) and so forth. So, depending on what you need most, the aggregator provides an option to screen all the options – and to apply immediately to the most suitable ones.

It is, in fact, a genius invention as it is helping both banks and consumers find each other in a market that suddenly became more crowded. When education aggregators started in the US and UK, universities were critical: today they are all on board because they are losing enrolments. So is it also with the banks – now the biggest banks are after Bleyer in order to get a piece of the action.

Balance transfers are often the biggest attraction

Some 450 000 new credit cards were issued in Australia in the last year with the ASIC debt clock showing astronomical statistics. With 83% of young people using credit cards to support their lifestyle, many sit with debt on which they need to pay interest. So, in order to clear the debt easier, without interest or with very low interest, many opt for a “balance transfer”. This is simply when you apply for a new credit card from a new provider, use it to settle the balance on the old credit card and switch providers. Often these balances come with zero-interest for up to 24 months, either enabling consumers to “breathe”, or to set the debt without paying much interest.

Final scoop on credit card comparison in Australia?

The Australian credit card market will never be the same again: The consumer is awakening to a new set of rules that enable them to take back power from the big banks – the power to decide for themselves where the best deal exist at any point in time. Many consumers are now switching every two years, so this certainly represents a new trend to watch closely.

Pros and cons of ChexSystems

Published on February 21, 2019March 1, 2021

Economy/Technology

As each day goes by and humanity keeps evolving, the usage of banks and bank accounts is getting even more common. The times when people used to store their money in safes or keep them at home are long behind us. Even our grandparents have multiple bank accounts. Using banks has never been easier, we have mobile apps, online services and what not. You don’t even have to visit a bank to draw or send funds anymore.

Everything is being automated, and that’s the case with bank decision making as well. But what kind of decision making you might ask? Well, when you try to open a bank account or try to score credit, the bank needs to decide if they really want to grant you that permission.

Nobody likes to have un-trustworthy customers, so they have to carefully examine each request and even sometimes take a “peek” into the customer’s history. But how can they do this for every person when there are so many people making requests every single day? That’s where automation comes in to “save the day”. Or does it? There are services such as ChexSystems that keep track of a customer’s history and previous experiences with banks, and makes a report that has a score from 100 to 900. Then it sends it to the bank and the computer makes a decision if they should either accept or reject your request.

As much as this can be helpful and make banks “decide” faster what they should do with your requests, it can sometimes make mistakes and many people get “blacklisted” by this system for some insignificant issue they’ve had in the past which might’ve not even been their fault. That’s why there are non-ChexSystems Banks anymore.

Let’s talk about the pros and cons of ChexSystems

Like we mentioned earlier, the biggest advantage of banks that use systems like these is the ability to bring much faster “judgments” and prevent people from waiting forever to get their application accepted, or rejected. The thing is, these decisions that the automated system makes are not always right. We are all humans and make mistakes, it can happen to anyone to miss a payment date. Same goes for the people who work at the bank. Sometimes the problem is on their end, but ChexSystems will still “capture” this issue and possibly use it against you the next time you try and use a bank service.

That’s why some banks created an option called “second chance”. This serves to give exactly that, a second chance to people that have been rejected by something like ChexSystems. The problem is if you don’t find such bank or there are simply no other banks in your area except the one that strictly trusts ChexSystems only, you can find yourself in a pretty difficult situation. This is because the system keeps your “negative history” for up to five years.

If you are reading this and wondering what “grade” do you have on this ChexSystems list, there is an option to check on their official website. Just fill out a form and you should get a statistic with your “performance”.

What To Do If ChexSystems Has Blacklisted You

Published on February 2, 2019February 2, 2019

Business

You requested to open a checking account but the bank gives you a call to tell you that you have been denied. The number one reason for this happening is that ChexSystems has blacklisted you due to your previous banking activity, and know the bank doesn’t want to allow you another account. And though you might not be responsible for this it is a case and you are not alone as almost 10% of the households across the USA are in the same position as well. Luckily, there are two options that can come in as a replacement – opening an account at a non-ChexSystems bank or going for a second chance account.

The ChexSystems is there to monitor your banking activity and provide reports to the banks if something is off. Same as loan agencies are checking your credit score, the ChexSystems can cause you to be blacklisted and then more than 80% of the banks will not agree to open your account. On the other hand, there is still a number of the banks that don’t use ChexSystems and that are glad to help you. Without further ado let’s go ahead and see what you can do once in this kind of a situation.

You Have Been Blacklisted – Now What?

Well, your first move should be not to agree with that kind of state and ask the bank/ChexSystems to provide you with a report. You should fight for your rights and inspect the report carefully. In a lot of the cases, the system makes an error or inaccuracy that you will be able to correct. If this is the case, email them or call them by their phone and get it settled out. You can also go to the official ChexSystems website and fill in a dispute but this might think a bit longer to settle out. On the other hand, if the report is accurate then you should think of figuring out a deal with the ChexSystems-using bank. Ask them if they would agree that you pay off the previous debts and fix the items that are blacklisting you and then open your account. Some will agree on that while the others will not and you will simply have to wait for the blacklisting time to subside. Still, you will have two more options while this happens – banks that don’t use ChexSystems and second chance accounts.

Non-ChexSystems Banks

These banks cover around 20% of total banks in the USA so you will be well of with finding the right option for you. And these banks are usually without limits either and offering great checking account options. One of the best out there has to be the BBVA Compass that requires only a $25 for a minimum deposit and includes online bill paying, mobile deposit, while there is no maintenance charge or fees at the ATM. You will only have to pay a $13.25 as a monthly charge but believe us it is more than worth it. The US Bank, on the other hand, is a great choice for all the people that enjoy benefits of a national bank and similar to the previous one it offers great checking account options and a monthly fee that is waived if your balance stands or is above $1500. Capital Account is a bank that uses the ChexSystems but there is a difference – it doesn’t blacklist customers for few items unless you have conducted a fraud. With this in mind, it is an excellent bank that you should absolutely check out!

The Second Chance Accounts

Though comparing to the non-ChexSystems banks these usually do come with a certain limit there are great options here as well and we would name the Wells Fargo as the main and the best one. It requires a $25 initial deposit but has no limits that second chance accounts usually have as it offers both the check listing and mobile banking. Along with that, the monthly charge is waived if your account is at $1500 or more and you are sure to enjoy many benefits that a ChexSystem bank wouldn’t allow.

How To Protect Your Banking Record

Though there are actions that you can take if you are blacklisted your best bet still is to keep clean and protect your banking record. Be sure to pay all the overdrafts or negative balances on time, and don’t try to manipulate the ATM rules. Last but not least any kind of fraud is absolutely not allowed (such as identity theft).

Summary

Lucky for you, even if ChexSystems blacklists you there are still options where you can open a new checking or savings the account. Both banks that don’t use ChexSystems and second chance accounts are good and reliable choices and it is your decision for which one you will go. Still, it is important to remember that you should always care about your banking record and keep it as clean as possible!

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