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How to Recognize When Your Debt Is Too High to Repay

How much debt is too much? If you’re asking yourself that question, it’s a major warning sign that you’re probably already at that point. The best thing you can do for yourself is find a way to reverse course and start paying it all back. Taking the path to financial freedom is a great goal, but what if it’s just not possible?

It’s possible to get into more debt than you can reasonably pay back. But that doesn’t mean you have to spend the rest of your life in debt. Instead, you can explore options such as a consumer proposal or even bankruptcy. A Licensed Insolvency Trustee can help you evaluate your financial situation and identify the best way to move forward. You can visit to learn more about what Licensed Insolvency Trustees do, and how consumer proposals and bankruptcies work.

But how do you know it’s time to talk to one? You need to be able to recognize when your debts are out of control or too much to pay back without help.

1. Your Balances Keep Getting Higher

It’s easy to “add to the pile” when you don’t keep track of how much you spend each month. Even if you’re trying to make progress by making more than minimum payments, unless you’re paying close attention to your expenditures, it’s easy to wind up covering for shortfalls by leaning on your credit cards.

One step you can take is to stop using credit cards altogether until they’re paid off. Otherwise, the temptation to use them to make ends meet can be too great.

2. You’ve Borrowed Money to Cover a Bill

Borrowing to cover another bill is a sure sign that you’re in a tight spot and that something needs to change. It can put a strain on your relationships when you borrow from friends and family. You want to pay them back as soon as you can, but it’s only a matter of time before you’re hit with another big bill. Meanwhile, other sources of fast credit come with high interest rates that can leave you deeper in the hole.

A sign that you’re in deep trouble is taking out a cash advance on a credit card to make another payment. The interest charges on cash advances are higher than the APR for regular purchases, and while you may scrape by in the short-term, you’ve made the long-term problem worse.

3. You’re Thinking About Draining Your Savings

For some, high debt levels come after they’ve had years to save. When credit card bills start to get out of control, they start looking at their savings and wondering if they should drain it all just to stop paying interest rates.

Before you act, consider your options. In many jurisdictions, registered retirement savings are exempt from bankruptcy proceedings. You could keep your retirement savings and still clear your debts. Alternatively, if you have significant non-exempt assets, such as a secondary property or multiple vehicles, a consumer proposal allows you to settle with your creditors without liquidating any assets.

This is a difficult situation to be in, and the right answer will be different for everyone. Get a credit counselling consultation with a Licensed Insolvency Trustee to talk about the right way forward.

If there’s already nothing left in your savings account, you’re in a precarious situation. Any loss of income could upset the tightrope you’re walking. The sooner you take action, the better off you’ll be.

4. You Can’t Balance Your Budget

One of the problems with the easy accessibility of credit is that lenders may offer you bigger loans and limits if you meet their criteria for it, but they don’t know what your budget is like. Just because your bank has approved you for a higher borrowing limit doesn’t mean you should take advantage of it.

Can your budget balance? The 50/30/20 budget rule is a useful rule of thumb for personal finances. It says that 50% of your after-tax income should go toward needs, 30% on wants, and the remaining 20% should go toward savings (or paying down debt). If more than 20% of your personal budget is going to credit card companies, it might be worth looking into alternative solutions – though changes to your budget may still be enough to conquer debt.

5. You’ve Applied for New Credit and Been Denied

Sometimes you can’t see the problem until someone else points it out to you. If you’ve applied for new credit, such as an auto loan, a mortgage, or a new card, you might be surprised to learn that you’ve been denied. Before you apply somewhere else, take a look at your credit history and score, which you can request from a bureau like Equifax or TransUnion.

There are many reasons you may have been denied. Besides your history with repaying debt, lenders also look at your credit utilization rate: the percentage of your available credit that you’re currently using.

6. You’re Getting Collection Calls

This is one of those big red flags. Once debt collectors start calling you, it’s because you’re considered delinquent on your debts. Though they may begin with annoying phone calls, that also means they can take legal actions such as suing you, which can lead to options like garnishing your wages or levying your bank account.

7. More than Half Your Income Goes to Payments

If, say, 25% of your after-tax income is being siphoned off by creditors, you could be doing better, but you’re not in deep trouble. Once you reach this point, you are very likely in over your head, and you would be a prime candidate for bankruptcy or a consumer proposal.

Bankruptcy can seem like a major life decision and a last resort, but there are times when it is the best course of action to move forward. There are also alternatives, like the consumer proposal. There are situations in which you have to recognize that you just can’t get out of debt on your own. If any of these situations apply to your finances, it may be time to try something different.

Ways to Negotiate with a Licensed Money Lender

Negotiation may sometimes create a hectic situation. However, it is essential at times in order to make a good deal of the money that you are offering and the amount that you would be receiving it in return. But, sometimes there is a certain situation that may arise leading to a bitter experience while doing away with a hard negotiation, especially when the money lender is not ready.

Money lending can really be a simple circumstance when the borrower is demanding money from a licensed moneylender. This is because there are many quacks who do not have any value in their words and they say some different versions while you go to return them with the amount. This is seriously an unhealthy occurrence. In order to avoid any kind of bitter experiences at a later time, it is always better to go for a licensed money lender.

For the sake of convenience, it is also important to sign contract papers before you accept the specified terms and conditions. Make a proper research before consulting any of the money lenders. Check out the market trend and be a little choosy while selecting. In order to receive the latest updates, you can personally talk with your family and friends along with the relatives to get acquainted with the facts. Talk with people whom you know and discuss the matters with them thoroughly.

Experience matters and you can only get the latest reviews from the occurrences that occurred with the individuals who have received the latest updates about the loans. This would also help you to overcome with positive feedback. Being a borrower, it is also important to learn regarding the potential issues during the process of application. If all these things are not taken into proper consideration, it is quite common for an individual to meet with several unexpected situations.

If you are choosing a licensed money lender, you can also look for the detailed information regarding the individual. These are essential to progress with a healthy relation and faith as well. After taking out all the information in your hand including the proper address of the money lending company and the detailed information about the owner, you can shift to make a call to the money lending company. The borrower may face several types of issues at the time of refund, in that case there are several sideways options which can be utilized like that of foreclosure and mortgage loan.

Your request shall be taken under consideration after the verification of the genuinely of the process. The money lending company may also help you to pave the best possible solutions in this regard. In a case of foreclosure, there is an option that can be downloaded and you can fill the necessary details within it and proceed with the further dealings. The lending company shall also ask you to submit a few necessary documents and you must do that to meet the specifications of the company.

How to get the “negotiation advantage”

You’re probably wondering whether negotiating in such a scenario is possible, and we would like to assure you that it indeed is. But, in order to make it happen, you need to gain the so-called Negotiation Advantage. One of the ways to do this is by letting the licensed money lender know that you’re a trustworthy individual with a clear goal. The money you’re asking from them will be invested in something that’s promised to make a return, so if this is true, let them know.

According to 1AP Capital, the important thing to understand is that licensed money lenders have a lot of customers on a daily basis. But, as easy as they can replace you, it’s also in their benefit to find someone reliable to use their service. By providing transparency and the feeling of being a legitimate customer, they’ll find you to be a better fit than some of their previous customers. If you manage to achieve this, you can then start negotiating more easily. It’s not in the money lender’s interest to lose a high-value customer.

Another important thing is to remember that everything that’s a part of the deal needs to be written as an evidence in some of the paperwork. If you negotiate and it all ends up being just by words, you’ve achieved nothing. Make sure to have proof in the paperwork that the terms you’ve negotiated are actually modified, whether this be the interest rate, the amount of time in which you have to return the money, or anything else really.

Work together with your lender

You see, money lenders are constantly exposed to risk, but, that’s just the price you have to pay when you’re working such a high-reward job. However, they don’t like being at risk at all time, and they would do anything to minimize or completely prevent their losses. One of the things that you can do is to work closely together with your lender. What we mean by this is discussing about certain dates and times where the payment can be issued to benefit both parties at once. The closer and “more personal” you get with the lender, as well as the easier you make it for them to understand your project, the higher the chances of being able to negotiate properly.

For example, if you need the money to renovate a house and quickly sell it in less than a week, you can do the following things.

Start by contacting your contractors and ask for the price. Then, discuss it with your money lender. Afterwards, tell your contractors to get ready and prepare all the materials that need to be purchased for the project. Once again, talk with your lender and let them know that everything is ready. When everything is prepared, get the lend issued and start the project immediately. This way both parties will save time, the lender will have a lower risk and lower wait-time, as well as a richer portfolio in just a few days.

You can use these preparation steps as a possible negotiation technique as well. Tell your lender to give you a larger payment and use the project readiness and your preparations as a tool for negotiating and transparency. Remember, keep everything on paper, words don’t mean a thing when money is involved.

4 Reasons to Be Cautious with Cash Advance Loans

A loan agreement is a contract whereby one person – the lender, undertakes to hand over to the borrower a certain amount of money or other fungible items – and the borrower undertakes to repay the same amount of money after some time. That is, the same amount of things of the same kind and of the same quality within a fixed time period, with or without compensation.

The lender may be a bank or other financial institution, but also non-banking and non-financial institutions (individuals and legal entities).

Have you chosen or plan to opt for cash advance as a solution in situations where you quickly need less money?

As a small business owner, you invest more than sweat and tears in your business: you also invest in savings and risk personal credit to get started. Loans and other financing options may not seem feasible at first or you are wary of taking on commercial debt, but financing your business through borrowing can be the right way to help you grow your business.

Read on to find out if you need to consider it. Below we explain how this works and how to be cautious.

How does it work?

All you need to do is pick up the paper and fill it out. Also many, like BellwetherCapital, offer you online application, which is much more convenient. If this goes well and you are approved, you get a loan (your desired amount). This amount should remain less than the anticipated fees. The next item is about funds… You will probably be required to give the lender a check for the money you want (along with the amount). Over the next day (scheduled for payment), your borrowed check amount will be charged by the lender, all together with additional fees – if they are authorized to do so. In the second case, the check can also be cashed by the lender, of course, if you wrote it.

Why should you be cautious?

Costs – You need to be careful when evaluating the cost of borrowing a cash advance. The fees you have to pay can range in large percentages. However, they can go much further than that. If you did not immediately understand the amount of the repayment rate, equate the borrowed sums of money with the loan and compare it with the national average APR and you will understand.

Fees – It comes with a high price. Interest is very high and banks charge huge additional fees. Although not recommended, it is the best of the worst options and you need to know how to use it. It may also be possible for the lender to offer you a new loan (even though you have not repaid the old one), which of course comes with a new fee. This is how debt refinancing is done.

No checking, but it can also be a risk – Obviously, when companies borrow money without additional information on income, bonds, and good credit history, they are taking a risk. Therefore, interest rates on these borrowings are very high.

Because cash loans only offer short-term loans, interest is usually set for each day, so the rate can vary widely depending on the company and the law.

These organizations are always ready to assist in situations of financial need. They are not interested in credit history, which is why they are often called bad credit loans. However, the main advantages of these companies are their availability to everyone, flexible conditions for the client, as well as the ability to quickly provide cash.

Overdraw is possible – Which in most cases contributes to more debt, ie. Extending the duration of a debt is an overdraft on the current account by the lender. This is evidenced by the fact that a higher percentage of people confirmed that it often happens on the day of payment.

If you need a money borrowing, then surely you have a big money problem that you need to solve this way. The assumption is that you have a sufficient amount of money to cover your upcoming expenses as a consequence of your choice. However, it is not always ideal and there are cases that are unable to cover this financial endeavor or even to cover basic expenses such as bills, rent, etc.

The question is, how will you pay off your credit card bill? To sum up, people who choose to borrow in cash are more likely to pay down debt – it’s simple, interest rates on this form of payment are higher and that’s the reason. Don’t risk falling behind because you pay with a credit card.

Keep a record of the use of cash advances. If you find yourself paying for basic things like groceries, you need to look back at your budget and expenses and work hard to strike a balance between the two.

In what other ways can you get cash advance loans?

Payday alternative – There are various names, one of them is – payday loan, short term or cash loan… This is one small loan, first and foremost. They are much cheaper than so-called payday loans. They are much more favorable than personal loans and sometimes cheaper than overdrafting on your checking account. There is a cash limit you can get, and it is usually lower than the loan you have.

Credit card cash advances – This type represents the most popular variant of advances and works by now borrowing via credit card. According to your credit card company, you can get money at an ATM or in the form of a check (deposited / deposited with a bank). The main feature of this type is the interest rate, which is on average 24% – 9% higher than the average.

Credit Counseling – Represents several types of financial support for small businesses, with payments that typically mean payments made less than 24 months (shorter period of time) and payments every business day (smaller, regular payments). imply length of payment


While taking on debt is not a decision you should make lightly, it can also be a crucial tool for the success of your small business. Think carefully when making your decision and consider both the positives and the potential risk.

How to quickly borrow money in the UK

If you ever ask yourself what fast cash loans are, here is the answer. Fast cash loans are a simple and quick way to borrow money and get funds directly on your bank account. This procedure can take up to one hour after which, you get access to your money.

What are most the important benefits of online fast loans

First of all, this method is really fast. We all find ourselves in a situation when money is necessary. That situation can be some unexpected expense. Let’s say it’s half of the month, and you have already spent all your salary. At that moment your car breaks down, or maybe some of your family members needs money for urgent medical treatment. This is the moment when you will consider borrowing money with quick cash loans.

Here are the benefits of using fast loans:

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  • You can borrow from £100 to £5.000
  • Loan repayment time is from 3 to 36 months
  • Funds come to your account within one hour
  • All credit histories are welcome
  • The whole procedure is 100% online

Things you should know when borrowing money via quick loans

Fast loans in the UK are really popular, so here are some things that you need to consider before taking money.

First of all, while this is a really fast and secure way to borrow money, you need to know that it’s not always good to take this method as your only option. Fast cash loans are used mostly in time of real and big necessity. What’s important for you is to know that if you for some reason fail in returning the money this will have a negative impact on your credit score.

Golden rules of fast cash loans

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We provided some tips which you need to read if you borrow or plan to borrow money with this method, so let’s begin.

1. Never apply for money that you don’t actually need

This rule is important because you do not want to mortgage for a tablet or some expensive holiday with your partner.

2. You need to understand what the cost is

When you read this rule it can sound really boring and straightforward but in most cases, this is something that people don’t take into consideration when they take money.

So, to prevent yourself from making the same mistake, double check your contract with the company for quick loans and scan it.

3. Never borrow more than you need

Borrow always as much as you need for some emergency or something really important to you, but only that amount of money as you need to pay for it.

So, why you should choose quick loans as your method for borrowing money? Well if you find yourself in an emergency situation and you need to get money really quickly, maybe your best option is to use this method. You won’t wait and it won’t take so much of your precious time.