darrylhchapell

[darrylhchapell]

Car loan refinancing in 3 steps

A car is often the second largest loan the average Canadian has; the first being a house loan. Refinancing your car loan can save you thousands of dollars if done right according to our source, macombdaily.com. We will source the article below so you can read their entire article here for your convenience.  Before we provide you with tips about your car, you should attempt to not have a car loan. Often Canadians buy cars with making a budget which can lead to you being in car debt for four to seven years. Loan Away advise spending a maximum of 15% of your net income on transportation. This includes car insurance, car payments, gas, and maintenance like weather tires. If you are spending more than 15% you should refinance your car loan or get a car that is within your budget. With all that being said, let’s get into macombdaily.com guide to refinancing your car loan.

      3 reasons to consider refinancing your car loan

Most people know they can refinance their mortgage, but less than half are aware that they can also refinance their auto loan, according to a study by Harris Poll for Ally Financial. It’s a simple task that could reduce your car payments by about $1,300 a year.

The following considerations can help you determine whether refinancing your auto loan is the right step for you.

• Interest rates: Can you reduce your monthly costs by lowering your rate? Compare your current interest rate to those advertised. Keep in mind that there are several aspects of your financial history that may have impacted your interest rate for a loan, including credit score and credit history. If your credit score has significantly increased since you financed your vehicle, it may be time to refinance to a lower interest rate.

• Tight monthly budgets: If you need to make some room in your budget due to changing life circumstances or simply have a desire to sock more money away into savings, refinancing your auto loan is a move that may have a substantial impact on your finances. For example, those who have refinanced their vehicles through Clearlane, Ally’s online auto financing platform, have reduced their monthly payments by an average of $112.

• Reducing the term: Another reason many choose to refinance is to reduce the number of payments they will have to make, with the goal of reducing the total amount of interest paid over the course of the loan. This may appeal to you if you can now afford a higher monthly payment than when you purchased your vehicle, thanks to a raise or new stream of income.

If you choose to refinance, be sure to review your loan agreement and terms to make sure you understand your current loan. You should also be aware of any costs that could be incurred by refinancing or changing the terms of your loan.

  Did you find the article informational? Employees at Loan Away sure did. Three employees are keen to refinance their vehicle to better suit their budgets. Some are going to have fewer payments and pay off the loan faster, while others are extending so have more disposable income. This decision is based on your current financial situation. If you have an extra $100 each pay, you should consider using that money to pay off your debt instead of saving it in a saving account. Saving accounts often have very low interest while car loans can be more expensive. Before anyone starts saving thousands of dollars, it is recommended to pay off your debts first. Saving and investing should always come last. Here are the steps you should follow.

Paying off any high-interest debt ( Car loan, credit cards, etc)

Creating an emergency fund of 3-6 months salary

Pay off low-interest debt ( Student loans, mortgage, etc)

Investing/saving

Very simple to follow right? If you are unsure how to invest, there are several investing great books available for your needs. If you enjoyed this post, share it to help the Canadian economy become more aware and educated on their car loans.

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[darrylhchapell]

Credit card debt hits record high

There are two ways to interpret the title of this article. One way is “Wow, the average person has more debt than ever. This cannot be good for the economy!”. The other way is “Well with inflation, population growth, and a expensive housing market, this is expected.” To summary, did you see this coming? The financial experts at Loan Away did. We will explain how much debt the average person has and how you can avoid this fatal situation. However, debt in some cases is not bad. If you have $10,000 in personal debt, it may seem awful, but that money could’ve been spent on starting a small business which will generate thousands. That debt does not seem that bad now does it? Exploring debt maybe intimidating at first, however, you’ll be surprised when you learn everything behind the credit card in your wallet.

  Credit card debt hits new record, raising warning sign

Americans’ outstanding credit-card debt hit a record in November, highlighting a more confident U.S. consumer but also flashing a warning signal of potential trouble down the road.

Revolving credit, mostly credit cards, increased by $11.2 billion to $1.023 trillion, the Federal Reserve said Monday. That nudged the figure past the $1.021 trillion high-water mark reached in April 2008, just before the housing and credit bubbles burst. Over the past year, revolving credit has surged by $55.1 billion, or 5.7%, according to the Fed and Contingent Macro Research.

Non-revolving credit, such as auto and student loans, rose by $16.8 billion to $2.8 trillion in November.

The all-time-high for credit-card debt doesn’t pose the risks to the economy that existed in 2008 because incomes are higher, UBS Credit Strategist Stephen Caprio says. The ratio of credit-card debt to U.S. gross domestic product is about 5%, compared with 6.5% in 2008, he says.

“It’s a potential early warning sign but not a financial stability issue” for the broader economy, Caprio says.

Still, Caprio notes that credit-card delinquencies have increased to about 7.5% from 7% a year ago, underscoring growing stresses for low-income households in particular. While that’s still below the 15% delinquency rate reached during the financial crisis and the 9% historical average, he says the increase over the past year raises some concerns. With jobs and income growing, the rise isn’t creating significant problems now but it could if the economy and labor market take a downward turn.

“People should make 2018 the year they focus on knocking down their credit-card debt,” says Matt Schulz, senior industry analyst for CreditCards.com. With the Federal Reserve continuing to raise interest rates, “that credit-card debt is going to grow faster and faster,” siphoning off money Americans should be putting aside for retirement,” Schulz says.

thumbnail courtesy of usatoday.com

  At loan away, we provide loans with lower interest rates than the average credit card. Providing loans for people who need a loan cheaper than credit card and loans for people with bad credit. Our goal is to provide loans to all Canadians in need of a loan. Once again, how does this make you feel about the economy? Are you worried for the outcome or you think more people spending money can on benefit it? We will you, the reader, be the judge of that. For more information how credit cards will affect both Canadian and American economy, Loan Away will be posting a new article daily on everything you’ll need to know. Liked this article? A share can not only helps someone gain more knowledge, but it helps Loan Away.

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[darrylhchapell]

Payday Lender versus Government

Payday Lenders thrive on providing short-term loans to people for over %200. This is already criminal offense according to financial experts, however, Charles M. Hallinan, may have to pay just under 500 million due to racketeering.  If you are unfamiliar with the term racketeering, here is a definition of the term. This is just one the examples of what is happening with the money payday earn. Supporting crime and illegal activity and getting a loan for over %200 is the last thing you should be doing. Mr. Hanllinan takes advantage of the poor and uses that money to support localized crime in America, which is never good for the economy or community. Even though Mr. Hallinan may be going to prison for a decade, this does not mean that other payday lenders are not participating in Racketeering. Each payday company should be investigated to ensure the safety of the community. For more information, the article is attached below.

  Payday Lender May Have to Forfeit $491 Million

How much should a racketeering conviction cost a man who for years flouted Pennsylvania laws and preyed upon cash-strapped Americans to build one of the nation’s largest illegal payday-lending empires?

More than $491 million, if the government has its way.

That’s the sum federal prosecutors in Philadelphia hope to recoup next month from Charles M. Hallinan, the so-called godfather of payday lending, in one of the region’s largest criminal forfeiture proceedings.

In addition to cash from 18 bank accounts — including more than $484,000 from Hallinan’s personal coffers — the government has laid out a staggering wish list of additional items to forfeit.

Among them: Hallinan’s $2.75 million lakefront condo in Boca Raton, Fla.; his family’s $1.8 million, 8,000-square-foot home in Villanova; and a small fleet of luxury vehicles including a $142,000 Bentley Flying Spur.

But a month after a federal jury convicted the 76-year-old former investment banker and Wharton School graduate on 17 counts including conspiracy, international money laundering and fraud, Hallinan’s lawyer says it is the prosecutors who now are driven by greed.

Defense attorney Edwin Jacobs is expected to argue at forfeiture proceedings before U.S. District Judge Eduardo Robreno that a more appropriate figure, taking into account Hallinan’s business expenses, would be closer to $9.5 million,

“A forfeiture judgment which exceeds $450 million would be … grossly disproportionate to the offense committed,” Jacobs wrote in court filings in December.

Federal law requires prosecutors to seek forfeiture in racketeering cases like Hallinan’s to financially penalize wrongdoers and to lessen the economic power of organized crime. The Racketeer Influenced and Corrupt Organizations Act forfeiture statutes allow the government to seize any money or property derived directly or indirectly from a criminal enterprise.

Usually, those laws have been used to strike back at the financial clout of the Mafia or large drug-trafficking organizations.

But Hallinan’s case is one of a few brought by the Justice Department in recent years to apply the same thinking to large-scale payday lending operations. Prosecutors have successfully argued that there is little difference between the exorbitant fees charged by money-lending mobsters and the annual interest rates approaching 800 percent that are standard across much of the payday lending industry.

“When crimes are motivated by a desire to make money, the criminal committing those crimes should be deprived of the proceeds of his or her crimes,” Assistant U.S. Attorneys Sarah L. Grieb and Maria M. Carrillo wrote in court papers.

In Hallinan’s case, jurors concluded in November that he made millions of dollars by illegally offering low-dollar, high-interest loans to financially desperate borrowers with limited access to more traditional lines of credit. Interest rates on many of the loans he issued ran far in excess of rate caps instituted by the states in which borrowers lived, like Pennsylvania, which imposes a 6 percent annual limit.

Hallinan entered the industry in the 1990s with $120 million after selling a landfill company, offering payday loans by phone and fax. He quickly built an empire of dozens of companies offering quick cash under names like “Tele-Ca$h,” “Instant Cash USA” and “Your Fast Payday,” and originated many of the strategies to dodge regulations that were widely copied across the industry.

As lawmakers in dozens of states sought to crack down on exorbitant fees charged by payday lenders, Hallinan instituted sham partnerships with licensed banks and Native American tribes to be fronts for his businesses.

In all, prosecutors concluded, Hallinan’s lending empire brought in more than $491 million between 2008 and 2013, the period covered by his indictment.

They now say they are entitled to every penny.

Hallinan “collect(ed) hundreds of millions of dollars in unlawful debt … knowing that these businesses were unlawful, and all the while devising schemes to evade the law,” Grieb and Carrillo wrote.

But Jacobs maintains that the government has willfully misinterpreted how Hallinan’s business and racketeering forfeiture laws work. Although he does not dispute the gross revenue brought in by his client’s companies, the lawyer argues that the vast majority of that total was Hallinan’s own money paid back to him after it had been lent.

Forfeiture laws, he argued in a recent court filing, allow prosecutors to seize only the financial gains a convicted racketeer made through criminal acts — a figure, which in Hallinan’s case, Jacobs puts at just under $69 million.

When legitimate business expenses like advertising, promotion, and lead generation are taken into account, Hallinan’s profit was closer to $9.5 million, Jacobs wrote. What’s more, he argued, the government has not considered that many of the loans Hallinan issued were entirely legitimate and issued to borrowers in states without the usury laws that prosecutors used to convict him.

“The central issue before the court is whether direct expenses are properly deductible for the purposes of calculating (criminal) proceeds,” Jacobs wrote, “or whether the court should adopt the government’s figure … without taking into consideration any expenses whatsoever.”

Still, the $491 million the government wants to collect from Hallinan is not even close to the largest sum Justice Department lawyers are seeking to forfeit in other cases against payday lenders. That distinction belongs to the $2 billion that prosecutors in New York hope to get from Scott Tucker, a professional race car driver and former business partner of Hallinan’s who was convicted in October on a similar racketeering indictment.

Others convicted in payday lending cases face substantial potential penalties. Jenkintown lender Adrian Rubin, a former Hallinan partner who pleaded guilty to racketeering charges in Philadelphia in 2015, faces potential forfeiture of $7.5 million. Prosecutors hope to take $161 million from Richard Moseley Sr., a lender convicted in Manhattan.

And Hallinan’s longtime lawyer, Wheeler K. Neff — who was tried alongside him and convicted of devising many of the faulty legal strategies that allowed Hallinan’s businesses to continue to rake in profits — faces a potential forfeiture bill of more than $360,000.

Like Hallinan, Neff and the other lenders could be ordered to pay additional penalties in the form of fines and court-ordered restitution to victims.

Hallinan faces a possible decade in prison or more at a sentencing hearing scheduled for April.

thumbnail courtesy of hamodia.com

  Do you think 10 years and 491 million is fair? I’ll let you decide what you think would be fair after what Mr. Hallinan has done. This is just one example of why payday loan companies are untrustworthy.  Loan Away’s goal is to provide fair loans to people who are considering getting a payday loan. Our loan interest will always be lower than payday loan companies because we care about clients financial situation. We also provide loans based on your needs. If you need a loan for three years or a few months, we are able to provide you with a loan. Bad credit is accepted because we believe everyone should have a chance to receive a loan.

  For more information about us, please visit our website. If you enjoyed this article, what are you waiting for? Share it with a friend! It could make their day even better.

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[darrylhchapell]

Canadian Money Management Advice

Everyone can improve on managing money. Even if you think you are doing a perfect job managing your money because you have read books, have a financial adviser, or follow financial experts you can still improve. The Globe and Mail have asked several experts this exact question: “If I could change one thing about how Canadians manage money, it would be to”. The answers they got were informational and unique. I advise everyone to look over the advice given because it is rare to have several experts give an answer to a very asked question. A question that has been asked already answered is “Should I consolidate my loans if I have bad credit?”. The answer is almost always yes. Managing money can be complex and difficult without any resources and that is why Loan Away has gathered the best sources to answer “If I could change one thing about how Canadians manage money, it would be to”.

  Canada’s advisers reveal their best suggestions for managing your money in 2018

The people who have seen you naked, financially speaking, have some ideas about how you can better manage your money in 2018.

Financial planners and investment advisers in my LinkedIn network were asked a few weeks ago to complete this thought: “If I could change one thing about how Canadians manage money, it would be to…” Here are some highlights from 199 comments covering a great range of topics, starting off with overspending and undersaving.

Note the sense of urgency in many of these comments. Taken together, they suggest a genuine sense of worry about excessive spending and not enough saving and investing. Cynics will say advisers are just prospecting for more money to invest with their suggestions, but that’s an evasion. Given the record household-debt levels in this country, all ideas for improving our finances deserve a hearing.

Here’s how the planners and advisers answered the question:

“Have them save 10 per cent of their T4 income first, and enjoy spending the rest.” (note: The T4 is a tax slip documenting how much gross income you were paid by an employer) -Barry Rebuck, adviser

“Have them learn to live on 80 per cent of their after-tax income and save the rest for retirement.” -Brenda Antonyshyn, chartered financial analyst (CFA)

“Have them live below their means. Simplify their financial lives and stop trying to keep up with the Joneses. The Joneses are in debt.” -Cheryl Campbell, certified financial planner (CFP)

“To have them ensure their cost of living never exceed their actual revenues.” -Mathieu Joubert, certified public accountant

“Understand that FOMO – fear of missing out – is driving many of your money decisions.” -Meghan Chomut, CFP

“Don’t fall into the trap of using your home equity line of credit as your personal ATM. Budgeting instead of borrowing. Understand the real cost of ‘buy now, pay later.’” -Karen Sage, CFP

“Stop spending money you don’t have to buy crap you don’t need to impress people you don’t know.” -Robert Gignac, financial industry speaker and author

“Plan for the unexpected. Life will throw you a curve ball – new roof, sickness, disability, etc.” -Angel Georgijev-Low, CFP

“Understand that paying off debt is the only guaranteed positive rate of return.” -John Harvey, manager of public investments at Nunavut Trust

“If I could change one thing about how Canadians manage money, it would be invest in themselves before investing in a portfolio. The greatest return is an investment in your skills and your greatest earning power comes from those skills. Invest in yourself first and allow the dividends from that investment to fund your portfolio.” -Lampros Parousis, private client wealth adviser

On the role of housing in your investment planning:

“Understand that an investment in real estate is NOT guaranteed to go up.” -Amandeep Sangha, CFA

On investing:

“Realize that Canada is only 3.2 per cent of world capital markets and a very poorly diversified index. [It] lacks health care and technology exposure, two huge growth sectors for decades to come.” -Larry Berman, chief investment officer, ETF Capital Management

“To not be overweighted in Canadian bank stocks.” -Connie Brown, chartered market technician (CMT)

“Understand that investing is a marathon, not a sprint. Do not allow irrational and impulsive emotions to alter your long-term plan.” -Aleem Israel, CFA

“Understand the compounding effect fees have on your long-term returns. For most people, they can save hundreds and thousands of dollars by moving to lower fee products.” -Steve Bridge, money coach

On retirement:

“To have a better understanding of how much you really need to save in order to retire comfortably. Find an adviser who asks you what your goals and values are and who doesn’t just focus on performance and fees.” -Julie Reimer, CFP

“To plan on living (and working) a lot longer than your parents’ generation.” -Marc Vincelli, statistical consultant

“To retire when you have practised living on your retirement budget. I have seen people fairly adamant that their grocery budget for two adults would be $300 a month. Perhaps I need to take some shopping lessons from them!” -Margaret Clarke, personal financial planner (PFP)

On working with an adviser:

“Ask questions and be engaged – financial/retirement planning is a team sport.” -Derrick Lindsay, financial adviser

thumbnail courtesy of theglobeandmail.com

  Informational to say the least right? The advice that Loan Away commends the most is the advice by Brenda Antonyshyn. She said “Have them learn to live on 80 per cent of their after-tax income and save the rest for retirement”. Imagine if you had 20% of your net income invested over a lifetime? You would probably retire with over 1 million dollars if everything was invested and had an average rate of 7%. The possibilities are endless if you followed Brenda’s advice. I know this may not be possible if you are currently living a certain lifestyle, but if you make the necessary changes like downsizing your home or ride your bike to work, you will be able to accomplish your financial goals quickly.

If you enjoyed this article, share it with a friend or two. They might enjoy it even more than you. For more information about bettering yourself financial, visit our website Loan Away’s website for everything you’ll need.

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[darrylhchapell]

The best financial books of 2018

Reading is what separates the average person from the successful person in a career according to Huffington post.ss We recommend reading for at least 30 minutes each day. The book doesn’t even have to be business related, it can be a fiction book for pleasure. The end goal is to use that 30 minutes reading instead of watching television or doing something unproductive. Loan Away, a financial institution in Mississauga, Canada wants you to create better habits for a better career and life. This is why we have sourced this great list of business/entrepreneur/financial books to increase your net worth in 2018. The financial advisors of CNBC have chosen eight books that can help you become financially literate in no time. Before you read the list, do some research about the book and the author. You want to make sure the book you purchase will help you personally. Buying a book about being a better CEO won’t help you if you don’t even have a business right? Now, onto the list of best books to help you financially in 2018!

  8 books to help you become wealthier in 2018

Boosting your financial I.Q. is a worthwhile resolution for 2018.

CNBC.com asked financial advisors what books they recommend to increase your understanding of how you should manage and invest your money.

Here are their top picks.

“I Will Teach You To Be Rich”

This book by Ramit Sethi provides a six-week program aimed at young adults ages 20 to 35.

Financial advisor Michael Kitces recommends the book because it not only teaches good habits, it also emphasizes the value of reinvesting in yourself.

“I find most personal finance books skip this oh-so-important aspect of trying to improve your financial situation by focusing on your earning power, rather than just your expenses or your portfolio investments,” Kitces said. “That’s what puts his book high on my list.”

“The Ultimate Financial Plan: Balancing Your Money and Life”

This financial planning book by Jim Stovall and Tim Maurer covers your overall financial situation, including your cash flow, insurance coverage and estate plan.

“This book is good for the DIY-ers who want take tackle and have the time to manage their own financial household,” said advisor Rianka Dorsainvil, founder and president of Your Greatest Contribution.

The book can also help you if you are already working with a financial advisor or planner.

“You will be able to bring ideas and thoughts to the table so it can feel like more of a partnership,” Dorsainvil said.

“The Millionaire Next Door”

Written by Thomas J. Stanley and William D. Danko, this book examineshow truly wealthy Americans often live frugal lifestyles and rarely show off their wealth with flashy spending.

“It lays the foundation, and shows the impact of how living within your means and spending less than you earn can give you the financial freedom at an early age,” Dorsainvil said.

Reading the book should give you an understanding of how all decisions – from buying a home to a car – impacts your long-term wealth, according to Dorsainvil.

“Think and Grow Rich”

Napolean Hill’s book was first published in 1937 and draws lessons from rich men of that era, including Andrew Carnegie, Thomas Edison and Henry Ford, among others.

The book teaches you the “mindset one needs to become wealthy,” according to financial advisor Ivory Johnson, founder of Delancey Wealth Management in Washington, D.C.

“Our mind is incredibly powerful and thoughts turn into reality,” Johnson said.

“The Rational Optimist: How Prosperity Evolves”

Author Matt Ridley makes the case in his book for increased prosperity this century, in spite of what pessimists say.

That message, according to financial advisor Tom West, a partner at Signature Estate & Investment Advisors in Tysons Corner, Virginia, can help investors who shy away from the market because of their fears of what could go wrong.

“Ridley does a masterful job of contextualizing the progress of modern society in an accessible way, laying the groundwork for rationally expecting the world of tomorrow to be materially better,” West said. “The book was published after the financial crash but now seems just as timely.”

“Make Your Kid a Money Genius (Even If You’re Not)”

Beth Kobliner’s book is aimed at helping parents of children from toddlers to young adults teach money management.

Financial advisor Diahann W. Lassus, president of Lassus Wherley in New Providence, New Jersey, recommends the book because it uses “language that is easy to understand without the alphabet soup we can get caught up in.”

The book addresses various financial topics including charitable giving and breaks down advice by age group.

“It is a valuable reference that will guide the parent at each stage of the child’s life,” Lassus said.

“The Elements of Investing: Easy Lessons for Every Investor”

Legendary investors Burton G. Malkiel and Charles D. Ellis provide basic advice on investing and saving in “The Elements of Investing.”

“This books distilled all of the best investment insights from each author’s classics, ‘A Random Walk Down Wall Street’ and ‘Winning The Loser’s Game,’ while also including personal finance and saving advice,” said Peter Lazaroff, co-chief investment officer at Plancorp, in St. Louis, Missouri. “This book is great for beginners looking to get a better grasp of how to invest for long term goals.”

“The Most Important Thing: Uncommon Sense for the Thoughtful Investor”

Howard Marks, co-chairman of Oaktree Capital Management, shares his investment philosophy in his book, which includes his personal recollections as well as investment advice.

Louis Abel, chief investment officer at First Foundation Advisors in Irvine, California, said it is “one of the best books on value investing and investing in general.”

The book is required reading for all of the financial advisors at Abel’s firm, he said, and it is “suitable for both sophisticated and amateur investors alike.”

thumbnail courtesy of cnbc.com

  Have you found a book that peaks your interest? Hopefully, you did because these books are some of the best available. If you didn’t, please let us know which book you are planning to read. For people who want to start investing their money, Loan Away staff recommend Millionaire Teacher by Andrew Hallam. Excellent read if you are a novice to investing your money like a financial advisor should. Regardless, this is a great list for anyone.

If you have bought any of these books and would like to share what you have taken away, please feel free to share this article with your experience. Sharing this post might just help someone become a better investor, so give it a chance and let your friends and family know about the eight books that could make them wealthier this year.

The post The best financial books of 2018 appeared first on Loan Away.

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[darrylhchapell]

Options for Entrepreneurs with Bad Credit

To start a business you will need capital and lots of it at that, but what do you do if you have bad credit? Well, you came to the right article! Loan Away, a financial institution in Ontario, Canada has gathered useful resources for the entrepreneur with bad credit. Often, having bad credit can feel like you are stuck and have little to no options, however, for this to happen to someone who is starting or maintaining a small business is devastating. This is true if you are unaware of the options. Yes, there are options for you to get a business loan or personal loan in Ontario. Jared of Enterpreneur.com has written a great article about the available option you have for getting a loan. We have included as a source for our readers.

    Bad Credit? Even an Entrepreneur in Your Shoes Can Score a Loan …

Most business owners struggling to overcome poor credit have a notoriously hard time qualifying for the financing they need to grow their businesses. In fact, just 10 years ago, these entrepreneurs might not have had any small business financing options on the table.

Related: 4 Steps to Establishing a Good Business Credit Score

The reason: Traditional banks have always had tight credit requirements for small business owners, and a less-than-perfect credit score generally precluded entrepreneurs from qualifying.

Thankfully, though, times have changed in the world of business lending. Alternative, non-bank lenders have entered the market, willing to work with borrowers with poor credit.

What are the best loan options for entrepreneurs with bad credit? Here are your three top options.

1. Short-term loans

If you’re looking for bad credit business loans that come with a structure you’re familiar with, short-term loans might fit the bill.

Short-term loans are structured like the traditional term loans you know well: You receive a lump sum loan that you’ll pay back with fixed payments over a predetermined amount of time. They’re almost exactly like what traditional bank lenders offer — with a few key differences.

First,, these loans are, well, short. Instead of being offered over a multi-year period, these loans have terms lasting anywhere from just three to 18 months. And because they come with such short terms, they’re most often paid back with daily or weekly repayments instead of a typical bank loan’s monthly repayments.

Short-term loans also have lower limits (ranging anywhere from $2,500 to $250,000), meaning that the borrower’s payments will be proportionally less than what you’d be responsible for with a bank loan.

Fortunately, it doesn’t take much time or effort to apply for a short-term loan. They often have simple applications and a short waiting time to funding, so if you need quick cash to act on an important business decision, a short-term loan can be a great fit.

Further, short-term loans are at the top of the list for the best loans for bad credit, as these lenders typically work with borrowers with a minimum FICO score of 550. Thanks to the loan’s short-term and frequent payments, lenders can take on more risk when it comes to choosing whom to work with.

So, if you’re looking for a predictable and straightforward small business loan with your bad credit, a short-term loan could be for you.

2. A business line of credit

While traditional banks are known for their business lines of credit, alternative lenders offer smaller, shorter and more accessible lines of credit, as well.

With a line of credit, you’re approved for a pool of funds that you can tap into whenever you need them for your business. You’ll pay interest only on the funds you draw, and once you’ve repaid that laon in full, your credit line will get refilled to its original amount.

Business lines of credit are great financing tools for business owners in need of flexible financing. They’re a particularly good option for entrepreneurs who struggle with irregular cash flow: when you enter a slower month, you can draw from your line of credit to keep your cash flow from slipping into the red.

Minimum requirements typically include having at least six months of business under your belt and $50,000 in annual revenue. Plus, you can get approved in as little as one day.

3. Invoice financing

Invoice financing helps business owners free up capital when pesky unpaid invoices are slowing their cash flow. If it fits your unique funding needs, invoice financing is another top option for business owners with bad credit.

This option involves a self-collateralizing loan, meaning that the outstanding invoice itselfacts as collateral for the financing.

This is great news for bad credit borrowers. Invoice financing companies are more likely to work with borrowers with bad credit because the value of the invoice acts as a security blanket. If, in the worst-case scenario, you can’t make your repayments, the financing company can simply collect on the invoice to recoup its losses.

Lenders offering invoice financing can help you turn your invoices into immediate cash, and will often work with borrowers with credit scores in the 500s.

An alternative option: business credit cards

While you might not normally consider business credit cards when you need business financing, they’re worth adding to your list.

It’s best to use these credit cards for your monthly expenses and working capital needs, since, basically, they’re revolving lines of credit with high interest. However, there are definitely some advantages to seeing a business credit card, instead, as a kind of small business loan.

Business credit cards can be a great substitute for traditional loans when you need financing quickly, you need need flexibility in how much you borrow or you don’t have collateral to offer against the capital.

Plus, using a business credit card with a 0 percent introductory APR period is essentially like taking out a free loan: You can borrow up to your credit limit without paying interest on the balance you carry over. Just don’t forget to pay down your balance once your introductory period is up!

When it comes to financing options for bad credit borrowers, there are a handful of cardsthat work for lower credit scores.

The best part about using a credit card to handle small-scale business capital needs is the potential to build your credit score with good borrowing behavior. Paying your balance on time and in full every month will gradually build your score, helping you qualify for better business financing products in the future.

What to watch out for with bad-credit business loans

There are more financing options available to borrowers with struggling credit today than ever before. All things considered, this is to the benefit of entrepreneurs growing their businesses.

However, owners with bad credit need to know that accessible financing comes at a cost. These bad-credit business loans can be augmented by a load of interest that’s way too expensive for any small business to handle comfortably.

  Must be a great feeling to know that you have options to get capital for your business right? Bad credit is not the end of anyone’s small business with invoice financing, a business line of credit, and short-term loans being available. Small business drives the economy, that is why these options are available. If only those who have perfect credit and a small loan of a million dollars create a business, there won’t be a lot around. Explore which option works best for you and your business. The rule of thumb is to have multiple options before making a final decision. Consider having a business analyst to look at these options and how it will affect the business short and long term.

Learned more options you have as an entrepreneur with bad credit? Great! Share this with someone who would benefit from knowing these options. The more options people are aware of, the better choice they make. Saving someone thousands of dollars can be as simple as a sending them a link. If you enjoyed reading this, please let us know. If you an opinion on how we can improve, don’t hesitate to contact at 1 (866) 689-0091.

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[darrylhchapell]

Build Your Wealth In 2018

Building wealth is challenging without guidance or a plan. Loan Away created this article to provide both guidance and a personalized plan. Why have we done this? Well, we enjoy giving back to the Greater Toronto Area community. Also, the best way to learn and master anything is by teaching it. Want to learn something? Practice first, then teach someone young, like a younger sibling. Since they are young, you will have to first explain it in its simplest form. If you can, try to teach someone interested in the subject so they ask questions and provide useful feedback. We have gathered great resources to provide you with everything you’ll need to get started. However, this is not a “Read this and became rich”. This is simply our best advice on growing your wealth, not becoming rich. We have discovered that personal debt consolidation for Canadians can help with that. Our goal for this article is to help you increase your net worth. We recommend you calculate your net worth before reading this guide.

    7 simple money habits that will help you build wealth in 2018

You may already know that toxic behaviors that can derail your finances. But just as important as breaking bad money habits is forming good ones.

Below, CNBC Make It rounds up seven simple money habits you can adopt today that will help make 2018 a more lucrative year.

1. Automate your finances

If your financial plan isn’t on auto-pilot, change that immediately, encourages self-made millionaire David Bach. Automating your finances— sending your money automatically to investment accounts, savings accounts and creditors — allows you to build wealth effortlessly.

It’s “the one step that virtually guarantees that you won’t fail financially,” Bach writes in “The Automatic Millionaire.”

“You’ll never forget a payment again — and you’ll never be tempted to skimp on savings because you won’t even see the money going directly from your paycheck to your savings accounts.”

Here’s what you should be doing now to become a millionaire later

2. Invest your ‘spare change’

Investing is one of the most effective ways to build wealth, and contrary to popular belief, you don’t need a lot of money to get started.

In fact, thanks to micro-investing apps such as Acorns, you can start by simply investing your “spare change.” The app will round up your purchases to the nearest dollar and automatically put any spare change to work.

Other apps also aim to make investing simple and accessible, and automated investing services known as robo-advisors can work for you, no matter how much you have in the bank.

The key takeaway: Start investing sooner rather than later to take full advantage of compound interest. As Bach explains, “the miracle of compounding can transform a relatively small but consistent amount of saving into major wealth.”

3. Come up with specific money goals

“The number one reason most people don’t get what they want is that they don’t know what they want,” self-made millionaire T. Harv Eker writes in his book “Secrets of the Millionaire Mind.” “Rich people are totally clear that they want wealth.”

To reach that level of clarity, he suggests writing down goals for your annual income and net worth. Like all goal-setting, be realistic, but don’t be afraid to challenge yourself. After all, the wealthiest people aren’t afraid to think big.

How rich people save

4. Save, don’t spend, unexpected cash

Pretend that extra money, such as a bonus, birthday check or any windfall, doesn’t exist.

Get in the habit of putting any surprise cash, even if it’s just that $20 bill you found in your coat pocket, to work. Apply it to student loans, credit card debt, your emergency fund or an investment account. It’ll add up.

Plus, establishing this habit early on will help you avoid lifestyle inflation when you get more surprise cash in the form of a raise.

5. Spend 30 minutes a day reading

Rich people tend to read. They continue to teach and invest in themselves long after formal education is over. “Walk into a wealthy person’s home and one of the first things you’ll see is an extensive library of books they’ve used to educate themselves on how to become more successful,” self-made millionaire Steve Siebold writes in his book “How Rich People Think.”

If it works for the millionaires and billionaires, it could work for you.

Check out CNBC’s round up of some of the best personal finance booksout there, or consider Bill Gates’s favorite books of 2017.

Money classics, summed up in one sentence

6. Set your alarm clock earlier

In addition to reading, wealthy people tend to wake up early. Self-made billionaires Richard Branson and Jack Dorsey start their days at 5:00 a.m., and they’re far from the only successful people to get up before the sun.

In a five-year study of hundreds of self-made millionaires, author Thomas C. Corley found that nearly 50 percent of them woke up at least three hours before their work day actually began.

We can’t guarantee that joining the early bird club will make you rich, but it can’t hurt, and it will almost certainly make you more productive.

7. Surround yourself with successful, high-earners

Who you hang out with matters more than you may think. In fact, your net worth tends to mirror that of your closest friends, Siebold points out.

“Successful people generally agree that consciousness is contagious, and that exposure to people who are more successful has the potential to expand your thinking and catapult your income,” Siebold writes. “We become like the people we associate with, and that’s why winners are attracted to winners.”

thumbnail courtesy of cnbc.com

  If you follow this guide, your chances of building your wealth have easily increased tenfolds. The advice goes further than increasing your income or investing in cryptocurrencies that you have little to no knowledge of. Each step/tip can be done by the average person. In today’s Canadian economy, you need to stay ahead as much as possible. Simple things like saving each $5 bill you get into a jar or saving any secondary income into saving can go a long way. Most financial experts advice may seem impossible to achieve, but this guide is novice-friendly to all Canadians. What everyone should take away from this article is, there is no perfect time to invest or save money; you need to start now. This allows you money and yourself to grow. While you investments age, you became more financially literate. The only advice not in the article is tracking your finances. This can be done with a mobile app, spreadsheet, or paper and pen. Knowing how much you spend on food, transportation, and other expenses can help you understand where your money going. After doing this, I realized that I spent too much money on food. After three months, I have saved $300. That money is now being invested instead of ruining my healthy diet. These small changes can and will make you wealthier in 2018.

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[darrylhchapell]

You Can Get A Loan Even If You Have a Bad Credit History

There are different factors that determine why specific customers might be thought of as less credit worthy, and for that reason considered risky to lend to. For a lending institution to grant a loan, every customer’s previous credit history is examined thoroughly and based upon how they handled their previous accounts, the bank will either provide the customer a loan or decline them.

However, if you don’t have a good credit history, all might not be always lost, given that some organizations will give loans to customers with bad or unfavorable credit records. Bad credit loans are often approved more than people think. There are lending institutions that really specialize in helping customers with a bad credit history. Naturally customers with a less favorable credit rating will pay more for their loans. These lenders may wish to safeguard themselves and one way of doing that is to charge a higher rate of interest. On the individual level, this may be thought of as counter productive and may serve to perpetuate the bad credit situation of the borrower. However, as a business, the higher interest rates charged to customers helps to offset the loss from the customers who default on their loan.

As soon as you find out that you have a bad credit and that it is too challenging to get a loan through the conventional method, you may need to take a look at those lending institutions that might work with bad credit people despite the fact that they are considered riskier to led to.

The loan obtained from these lenders can be used for anything you like, it is for buying something important to you or to purchase products to upgrade your home. Even if you have a small business and you require money injection to keep the company going, you can apply for a bad credit loan if you can’t get a loan from anywhere else. Lenders take a look at every case separately.

Therefore, whether you are an individual that needs a personal loan or a small business loan, feel encouraged to approach these lenders. Most of these organizations offer loans to customers with bad or unfavorable credit records because they know that life happens. They are aware that individuals often experience hard times and sometimes are unable to make payments on their financial obligations. After all they are humans too and do know that these things happen and that people need a second chance.

Lending organizations such as banks and other financing companies will look more thoroughly at a customer’s credit history prior to giving them a loan. Every customer’s previous credit report is examined thoroughly and based upon how they efficiently handled their previous credit a decision is made to grant or decline the loan. However, every case is dealt with according to the particular profile. That is why bad credit loan lenders might charge different rates of interest to different people, based on their credit history. Individual circumstances and the seriousness of how badly damaged credit they have may also determine the amount of loan offered to them. Some might have defaulted frequently, some might have outstanding credit judgement and yet still others might have actually ended up being insolvent.

In making a loan decision, a group profile is also considered. Customers who share similar financial backgrounds tend to behave the same. Either they are good payers or they are persistent defaulters.

There are many lenders for people with bad credit. You can find them online and in newspapers. Another popular source which used to be popular before the days of the internet is a broker who serves as an intermediary between the lender and the borrower.

If you need a loan but has a bad credit, never despair. You can find a loan that will suit your personal circumstances. Loan Away Inc, is one of these lenders who will give you a loan, notwithstanding your financial credit history. Apply for a loan away loan at https://loanaway.ca

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[darrylhchapell]

Business or personal Credit Card?

If you aren’t a business owner, then your decision should be easy, however, if you are a business owner your decision should also be easy. The reality is, business owners don’t have a business credit card. Hard to believe when there are several benefits of having a business credit card. Personal credit cards are exactly what it sounds like, personal. These credit cards have lower credit limits because a single person spends less than a business. As well as a business trends to earn more than a single person.

Still not convinced you should make the switch over? Fine. An article by entrepreneur went into great detail why you should make the switch if you own a business.

  There’s a Real Difference Between a Personal and Business Credit Card

If you’re a business owner, there are dozens of reasons to have a credit card. For one thing, they are a great way to keep track of all your business expenses in one place. They also offer opportunities to earn points or rewards on purchases you would make anyway. Not to mention, they can be an excellent option for financing your business, especially if you are in the startup phase and can’t yet qualify for a small business loan.

But one thing many business owners get wrong is putting all their business expenses on a personal credit card. While business and personal credit cards may function the same way (in terms of how you use them), there are some key differences that set them apart. Here are the most important differences between a personal and business credit card — and why the latter should definitely be in the back pocket of every business owner.

Higher credit limits on business credit cards.

You read that right: you can typically get a much higher limit with a business credit card than with a personal one. This is because businesses, in almost all industries, have more expenses than an individual person ever would. They also have more capital coming in than individual people, so it makes sense that they’d have more spending power.

That higher limit can be invaluable to your business for several reasons. For one thing, you’re going to have to make some big purchases as a business owner, and putting them on a business credit card is a great way to give yourself some short-term financing.

Related: Does a Short-Term Loan Ever Make Sense for Your Business?

For another, a high credit limit means a better opportunity to build your business credit score. One of the important factors for determining your business credit score is your credit utilization rate — the percentage of your available credit that you have used up, on average.

A healthy credit utilization rate is anything under 30 percent. So, if you have a credit limit of $10,000, you only want to owe up to $3,000 at a time. The higher your credit limit, the easier it will be to keep your spending well under the desired credit utilization rate, which will, in turn, help build your business credit score — something that will be crucial for the future of your business.

It affects business credit and personal credit.

Using a business credit card is quite important in building your business credit score, which will be vital in helping you qualify for other forms of financing down the line. However, before jumping into using a business credit card, it’s important to understand just how it affects both your business and personal credit.

While your personal credit card use will only affect your personal credit score, how you use your business credit card will affect both your business credit score and your personal credit score. This is because most business credit cards require a personal guarantee. This gives your business credit card company the security of knowing you’re personally responsible for paying off your business credit card debt if something should happen and your business can’t cover it.

Because of this inevitable intertwining of your business and personal history, business credit card companies will typically look at your personal credit score as part of your application. Some business credit card companies report credit card activity just to business credit bureaus, while others report to consumer credit bureaus as well.

Related: 4 Steps to Establishing a Good Business Credit Score

If you have a business credit card but are unsure which bureaus your issuer reports to, ask them to find out. Do the same when deciding which business credit card to apply for. It may not affect your decision, but it pays to be fully informed.

Business cards aren’t as protected.

Consumer protection laws, such as the Credit Card Act of 2009, make it so that personal credit card activity is closely monitored and controlled. However, the same kind of advocacy that exists for consumers does not so much apply to businesses.

This means that your business credit card issuer could apply higher late fees than you’d receive with a personal credit card should you miss a payment. Additionally, your business credit card company could throw more curveballs your way than you’re prepared for, such as a sudden increase in your APR.

Of course, you may not have to worry — most business credit card companies issue the same protections to business owners as to consumers simply as good practice. But it’s important to spend carefully, closely monitor the activity on your business credit card, and read all of the fine print before applying for a business credit card or accepting an offer for one.

Rewards programs built for business owners.

One of the biggest reasons people use credit cards these days is to earn rewards, in the form of cash back or points that can be used for everything from consumer purchases to travel. Personal credit cards often have great rewards programs, but if you’re a business owner, you’ll want the perks that are specifically geared towards business.

For example, your business credit card may award the most points in spending categories that are typical of business owners, such as computer software, advertising spend, and office supplies. Personal credit cards, on the other hand, typically award the most points for spending in categories like restaurants, gas or groceries. There are plenty of travel perks for both business and personal credit cards depending on the rewards programs.

If you’re going to earn points, you may as well earn in the categories where you spend the most. A business credit card will be set up much better to reward you for business spending.

Related: 4 Credit Card Tips to Make Business Travel Easier

No matter whether you’re a business owner with dozens of employees or simply a sole proprietor, if you’re regularly making business purchases, you should have a business credit card. Just know what you’re getting into — such as not being protected by the same laws that aid consumers.

A business credit card can help you build business credit and reward you for purchases you’d be making anyway. If that’s not a smart business move, what is?

thumbnail courtesy of entrepreneur.com

  Convinced yet business owner? Probably. That was a well-written article by Jared Hecht. Using a credit card for your business only has advantages, which is rare. Usually, in business, you have to accept some disadvantages with making business decisions, but this one is a no-brainer! The biggest advantage is having more credit available for your business. Being able to spend more money on your business increases the chance of ROI. If you had a small loan of million dollars, you would be more likely to succeed that someone who didn’t get any capital. To make money, you have to spend money right? The more you spend, the better the chance you will generate income. The other reason every business owner should get a business credit card is for the simplicity of organization and the rewards. Having all of your business expenses on one or two credit cards make it easy to track your expenses and you get rewards for doing so. Sounds pretty good to me and hopefully you feel the same way.

  Want to learn more about credit cards, credit scores, debt consolidation and everything finance? Great! Loan Away is the post blog articles about everything you need to know about finance. Enjoyed this article? Share it with a business owner to ensure they are taking advantage of business credit cards.

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[darrylhchapell]

The Canadian housing marketing in 2018

2017 was.. well something to remember. The Canadian housing market has been expensive, to say the least. Don’t worry, 2018 is looking to shape up for the new buyers in Canada (No promises for Vancouver or Toronto).  For those looking to buy a home in Canada, please pay off your personal debt first. Even if you have a bad credit score, a loan to pay off your debt would help get you the house you wamt. Loan Away has attached the well-written article on the Globe and Mail by Robert Mclister so fully understand the source of our article. Before we discuss what the experts have to say about the housing market, we would like to hear your thoughts first. We encourage you to write your predictions before analyzing the article to see how your thoughts match up with the housing market expert himself, Mr. Mclister.

  Mortgage policy changes: Decoding what’s to come for 2018

  January must be right around the corner because, once again, Canadians are facing a momentous change in mortgage policy.

It’s almost a tradition that Canada’s mortgage czars clamp down on housing in the new year. This year is no exception with the federal Office of the Superintendent of Financial Institutions (OSFI) enacting the big kahuna of credit regulation, the uninsured mortgage “stress test.”

For some homeowners, this portends a slew of changes in 2018. Here’s a foretelling of what’s to come:

1) Debt restructuring gets costly (for some)

Folks trying to bail themselves out of debt by refinancing could get a rude surprise in 2018, especially if they want to mortgage 80 per cent of their home’s value (the federal limit for refinancings). The banking regulator’s new stress test will slash the amount of debt they can consolidate by up to 18 per cent. It’s not an exaggeration to say this week could be the last chance for debt-heavy homeowners to refinance at rock-bottom rates.

2) Credit unions pinch bank market share

Credit unions, which are provincially regulated across Canada, will toast the new year as they scoop up borrowers declined by banks. These are borrowers who would have easily qualified today and any time in the past few decades. For creditworthy borrowers who can’t pass the banks’ new stress test, credit unions will welcome them with open arms – albeit at higher interest rates. That’ll push credit union market share from 17 per cent of uninsured mortgages to more than 20 per cent in 2018.

3) A bumpy road for home prices

Depending on who you listen to, anywhere from 10 per cent to 17 per cent of home buyers will be forced to alter their purchase plans in 2018. That should knock down home values in most Canadian markets. But price weakness won’t be absolute and it won’t be forever. Condos should hold up better, at least in big cities.

4) Rates jump on non-prime mortgages

Mortgage shoppers with harder-to-prove income (e.g., self-employed borrowers without an income track record), weak credit and/or high debt ratios will pay more in 2018. OSFI’s stress test will force many of them into the arms of costlier non-federally regulated lenders with easier qualification criteria. This added demand will encourage alternative lenders to jack up their rates.

5) Extended amortizations: 30 is the new 25

In 2018, more than two-thirds of uninsured mortgagers will extend their payback period beyond 25 years. The reason? People limited by OSFI’s stress test will do anything they can to lower their payments and qualify for a bigger mortgage. The Bank of Canada has already expressed its concern. And when the central bank issues warnings, regulators listen

thumbnail courtesy of theglobeandmail.com

  Did your predictions match Mr. Mclister? Mine did not. I predicted that it will be easier to get a home or condo in 2018. I was sadly wrong. If anything, 2018 may be as tough as 2017. Unpredictable prices, condo’s in big cities are going to remain expensive, and mortgages payback period will be 30 as the standard instead of 25.  This is very disappointing for new home buyers and great for those who bought homes years ago. Where your prediction correct? If they were, you are probably a homeowner that is grateful to have bought a house before the market became an expensive bidding war.

What did you take away from this article? Let us know if you are still planning to buy or sell based on these predictions. If you know someone who is going to buy a home in 2018, share this article as it may just help them make the best financial decision-based market research.

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[darrylhchapell]

Advice from a Billionaire

Wanted advice from the owner of the Dallas Mavericks about money management? Well, you clicked on the right article. Mark Cuban, one of the investors on Shark Tank and tech billionaire has three tips that can make you richer in 2018. Listening to the rich about money is a good, but take it with a grain of salt. If they reveal all of their secrets, others can copy it and that would mean less money for him. Obviously, no one will do that right? Yeah, so when a billionaire says ” This what you need to do!” think twice. If everyone did this, would everyone be rich? Probably not. I only mention this because most financial experts disagree with one of the Mark Cuban’s suggestions to become wealthier.  Financial experts encourage those with debt to use an online loan to improve credit score. Read the article below by CNBC about the best money tips by Mark Cuban and see if you find the suggestion that financial experts disagree with.

  Mark Cuban: The 3 best tips to save more money in 2018

  With a new year, you have a new opportunity to take charge of your money, your career and your future.

In the spirit of financial resolutions, star of ABC’s “Shark Tank” and billionaire technology entrepreneur Mark Cuban gives CNBC Make Itthree pieces of advice to see your bank account flourish in 2018.

1. Ditch the plastic

Step one in Cuban’s playbook: “Don’t use credit cards,” Cuban tells CNBC Make It. “If you use a credit card, you don’t want to be rich,” Cuban writes in a 2008 blog post.

It was a lesson he learned the hard way. “I would charge something and think I would be able to pay it off and then not be able to. I can’t tell you how many credit cards I had ripped up,” he tells Money. “[T]he 18 percent or 20 percent or 30 percent you’re paying in credit card debt is going to cost you a lot more than you could ever earn anywhere else.” On average, credit cards charge 16.7 percent interest, according to Bankrate.com.

Fellow “Shark Tank” investor Robert Herjavec agrees. “When I was young, I would carry a balance on my credit card,” Herjavec tells CNBC Make It. “My advice — pay off your credit cards every month and therefore pay no interest. Credit card interest is probably the most expensive loan you could ever get.”

2. Watch your spending

“Be a smart shopper,” Cuban tells CNBC Make It. “You will quickly find that the greatest rate of return you will earn is on your own personal spending,” he writes on his blog. “Save your money. Save as much money as you possibly can. Every penny you can. Instead of coffee, drink water,” he writes. “Instead of going to McDonald’s, eat mac and cheese.”

Cuban also suggests things like buying two years’ worth of toothpastewhen it’s 50 percent off. “There’s an immediate return on your money,” he tells Vanity Fair. Cuban’s “Shark Tank” co-star Kevin O’Leary takes a similar tactic. He refuses to spend $2.50 on a cup of coffee. “Do I pay $2.50 for a coffee? Never, never, never do I do that,” O’Leary tells CNBC Make It. “That is such a waste of money for something that costs 20 cents. I never buy a frape-latte-blah-blah-blah-woof-woof-woof for $2.50.”

He makes coffee at home, and puts his savings to work in the stock market. “I drink coffee, one cup every morning,” he explains. “It costs about 18 cents to make it, and I invest the rest.”

3. Put your money to work

All that money you didn’t spend? “Once you have at least six months salary saved, put what you can in a low-cost SPX mutual fund every month,” Cuban tells CNBC Make It, in order to grow your wealth. That means investing in an index fund with low fees made up of companies in the S&P 500, which is comprised of the 500 biggest companies in the stock market.

This is also a well-known suggestion of Warren Buffett. “Consistently buy an S&P 500 low-cost index fund,” Buffett told CNBC’s “On The Money.” “I think it’s the thing that makes the most sense practically all of the time.”

thumbnail courtesy of cnbc.com

  Did you find the questionable suggestion Mark Cuban made? It’s the credit card suggestion. Using a credit card wisely has only positives. If you have a problem returning a product bought with a credit card, the credit card company will fight for you. Why? It’s the credit card company money, not yours.  Often, credit cards have rewards. Cashback or points to buy items. Why wouldn’t you use a credit card? If you know you are not responsible with having access to thousands of dollars, then don’t get. However, if you know you will pay off your credit card in full every month, you should be fine.

I am surprised that Mark Cuban would tell people to spend less money. If anything, this could (In the smallest amount possible) could hurt his wealth. If fewer people are spending money on let’s say basketball tickets, he make’s less money. I thought he would say “Everyone should use credit cards! The rewards are great and it’s not your money, so feel free to spend it!”. Even though many responsible adults enjoy using their credit cards, his recommendation to not use them is noble.

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[darrylhchapell]

2017 is the year of the wealthy

2017 was a great year to be rich! Did anyone take advantage of this? Majority of the people (Such as myself) probably said: “If I could be rich, I would’ve have taken advantage.” The stock market was good for investors this year. The S&P 500 index risen 20% this year, the Don Jones Average is up 25%, and more index stock has increased by more than the average 7%. This is great for those with money in the stock market, but the majority of people don’t invest. What does this mean for the people who haven’t invested in stocks? Well, it means the rich have gotten richer this year. This also means that more people are taking out installment loans in Canada for personal use. Yeah, I told you it was a good year to be rich. This, however, is just the tip of the iceberg. For Americans, the new tax plan will only benefit the very wealthy and harm the low and middle-class citizens of America.  According to the article below, the top 1% will be getting $50,000 back in taxes compared to 2017. Scary isn’t it? That money could really help out someone who needs food or shelter, sadly, it’s going into the pockets of the very wealthy.

  2017 was a great year to be rich

It’s never a bad year to be rich, exactly. But 2017 turned out to be a particularly good one.

Rich people are doing so well these days that their spending on luxury goods isn’t even keeping up.

Luxury spending rose 5% globally in 2017, the management consulting firm Bain & Company found. But that is a fraction of the 40% rise in net worth that people in America’s top-tenth of income earners saw between 2013 and 2016, according to the Federal Reserve.

“We used to see that the growth of luxury was closely correlated with the stock market,” said Milton Pedraza, chief executive officer of the Luxury Institute, a consulting firm for high-end brands. “The stock market and real estate have gone up so much that nobody wants to spend all that money. It’s impossible.”

The big increase in wealth has exacerbated a long-evolving financial split between those at the very top and those at the bottom, even as the robust economy has lifted many working people with jobs and higher wages. Here are some examples.

A market on a tear

The S&P 500 Index has risen 20% since the beginning of the year and the Dow Jones Industrial Average is up 25%, fattening portfolios and boosting dividends. To a certain extent, the benefits are shared through ownership of 401(k) accounts.

But only about half of Americans participate in an employer-sponsored retirement fund, according to the Pew Charitable Trusts, and a much smaller 18.7% of Americans own stock directly. In both cases, market participation is skewed toward those with higher incomes, which means that the wealthy disproportionately benefit from Wall Street’s boom.

Related: Most Americans aren’t benefiting from the stock market boom

Rising home prices aid the relatively wealthy

Home prices reached all-time highs, according to the Case-Shiller home price index. That’s especially the case in hot markets like Seattle and San Francisco, where many working people are already unable to afford ownership.

Although homeownership is a source of middle class wealth, homeowners generally tend to be higher-income. According to the Census Bureau, 78.4% of families making more than the median income own homes, compared to 49.5% of those making less.

Profits are spiking, but wages still lackluster

After-tax corporate profits set new records in 2017, reaching $1.86 trillion in the third quarter.

At the same time, the share of the gross domestic product that goes toward wages remained near a recession-era low. That means workers are taking home less of the economic pie. To be sure, there were signs this year that wages are growing for people on the bottom of the pay scale. But over the past ten years they’ve grown faster for people at the top.

Meanwhile, mega mergers proceeded apace in 2017, furthering the trend of corporate consolidation that economists say allows monopolies to squeeze excess profits out of consumers. Some worry that the proposed union between CVS (CVS) and insurance giant Aetna(AET) could give the pair too much power to steer customers toward their own offerings, for example, and that chemical company Bayer’s (BAYRY) acquisition of Monsanto (MON) could raise seed prices.

Fewer rules help the rich

The repeal of many Obama-era regulations by the Trump administration and congressional Republicans has been applauded by businesses, which say they will operate more efficiently and save money. It remains to be seen how much of such savings will flow down to workers and how much will go to investors.

In one of the more high-profile rollbacks in 2017, the administration overturned the Consumer Financial Protection Bureau’s rule against forcing consumers into arbitration proceedings. That was a win for financial companies, making it more difficult for people who’ve been wronged to seek redress.

The Justice Department decided in June to back away from a measure that expanded the number of workers eligible for overtime pay, likely reducing the amount of money companies need to spend on wages.

“These are all ways that are just allowing the top to garner higher incomes, and to push the costs on to the public,” said Heather Boushey, director of the Washington Center for Equitable Growth, a left-leaning think tank.

A tax bill for the wealthy

While the just-passed Republican tax plan cuts taxes for most lower- and middle-income people, it is particularly generous to people with high incomes and big bank accounts.

The Tax Policy Center estimates that a new 20% tax deduction for pass-through income, a doubling of the estate tax exemption, lower ordinary income tax rates, and a more generous alternative minimum tax will send 65.3% of the bill’s individual benefits to people in the top 20% of the income spectrum, with the top 1% getting a $50,000 tax cut on average in 2018. As the years go on, the value of tax breaks shifts further toward the top.

thumbnail courtesy of money.cnn.com

  How does this make you feel? Does this motivate you to improve your career to stay ahead of the economy? If so, the majority of Americans and Canadians do not feel the same way. Often people are very content with their salary and chose not to change their lifestyle. This way of thinking and the new tax bill will only hurt these people. Unfortentalty, that is most people. How will the economy adapt when the low and middle class shrinks even more? No one has an answer.  I have three solutions, but none of them are going to work for everyone.

Move out of America. I know this may seem crazy for some, but American has the largest wealth gap in the world. Moving to countries like Sweden, Canada, or France can help because there are fewer people in poverty. If you are unwilling to move out of America, consider moving to a state that has a low cost of living.

Became rich. This is much easier said than done, but if you manage to become a millionaire, you would only become richer because of the new tax bill. If you can’t beat them, join them. This option is by far the riskiest as you might fail and be even poorer than before.

Wait. Donald Trump won’t be the president forever you know. Eventually, he will be out of the office and someone else will take his place. Wait for the next election in three years to vote for a candidate that you want.

  There you have it. An article that not only asked a question but actually provided answers that you chose from. Let Loan Away know if you going to chose one of these options. If not, let us know your plan. If you know someone who may benefit from this article, feel free to share this with them.

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[darrylhchapell]

Compare yourself to yourself when it comes to lifestyle

Life is hard and challenging, as a result, you may be struggling with finances. Going on vacation, buying new clothing, getting the newest car, or buying a house is something that you cannot do at the moment. You would think that people your age, like your friends, would be in a similar situation right? Nope. You see that they are currently on vacation, bought the best clothing brands, drive the newest car, or live in a nice home. “How?” you must be asking yourself when looking at their Instagram, Facebook, or Twitter. Before you get disappointed with your life, because you might not have everything they have, look at your social media profiles? Did you post when you were struggling or did you post only positive moments in your life? Only the positive you say? For all you know, they could have declared bankruptcy.  Read the article below to see why you shouldn’t be concerned about what others post on Instagram.

Don’t bother wondering why your friends seem to have nicer homes, cars, and vacations — there’s only one  measurement that matters

  It seems like I’m falling behind my friends financially. They take nicer vacations and drive more expensive cars than mine. How am I really doing compared with others my age? It happens every morning, from Wichita to Washington: We wake up feeling good. We pick up our phones and scroll through Instagram.

We guess at the carat weight of a college friend’s engagement ring and marvel at a cousin’s shiny new truck. We’re lifted into tornadoes of jealousy over photos of a friend’s puppy. We puzzle over how they afford it. But this social media highlight reel leaves a lot out.

“You don’t find people posting about missing a rent payment,” says Doug Amis, a certified financial planner and president at Cardinal Retirement Planning, Inc. in Cary, North Carolina.

Know where you really stand

If you’re under 35, here’s how your peers are really doing, according to the Federal Reserve Board’s Survey of Consumer Finances:

The median income for families with a head of household under 35 was $40,500 in 2016. Nearly half of families under 35 had credit card balances, with median debt of $1,400 per family. About 42% of families under 35 had retirement accounts, and their median value was $12,300.

Lastly, about 45% of families with a head of household under 35 had education debt. The median amount was $18,500 per family, but the amount varies widely by income level and highest degree attained.

Follow rules of thumb, not Instagram

You won’t find a real answer to how you’re doing in a Federal Reserve survey or a social media feed.

You will find it by measuring yourself against rules of thumb, refined over decades and endorsed by financial pros, that point the way toward true financial health. Start with these:

Do you have an emergency fund of at least $500? It should eventually include three to six months of basic expenses.

Are you paying down high-interest debt, like credit cards and personal loans? That should come before attacking lower-interest debt like student loans.

Do you spend less than you earn? A budget based on the 50/30/20 rule can help: You’ll spend no more than 50% of after-tax income on necessities, no more than 30% on wants and at least 20% on savings and debt repayment.

Do you follow the 28/36 rule? Lenders use this to qualify you for a mortgage, but Amis suggests it’s also a helpful way to assess cash flow even if you’re years from buying a home. Housing costs should be less than 28% of your pretax income. With other debt payments, like credit card, car, or student loan bills, the total should come under 36% of pretax income.

Do you save for retirement? Socking away 10% to 15% of your pretax income is the goal.

These guidelines are aspirational. But your progress toward them is a better measure of whether your money is working for you than surveys or Instagram. In the end, your financial well-being boils down to whether you can meet your basic needs today, plan for a better tomorrow, and enjoy life as you go.

Set your own goals

While these best-case scenarios might not seem feasible right now, don’t wait to start saving until you can set aside the amount you feel you’re supposed to, says Emily Guy Birken, author of “End Financial Stress Now.” For instance, save even 1% of your income for retirement if that’s all you can afford. Increase the amount by 1% every six months as you get accustomed to having less in your paycheck — or at least whenever you get a raise.

And most importantly, set your own goals — when to buy a house, say, or how quickly to pay off student loans — based on what you value most. While some friends may take fancy vacations, they may also have massive credit card debt you don’t know about. Besides, Birken says, “Would you really choose to have all of their problems, and have all of their foibles, flaws, and issues, just because they’ve got one thing you don’t have?”

thumbnail courtesy of businessinsider.com

Still going to envy people you see on social media? Hopefully not. You have no idea how much debt they have because of their new car, similar to they not knowing how much debt you have. If anything, you should feel better about yourself. They might have a new car, but you just saved twice the price of the car they bought. If they bought a new Mercedes-Benz for $50,000, yes, they spent $50,000, but they will allow losing 50-80% of the additional value because of car depreciation. If you invested the same $50,000 for the life of the car, 10 years for example at 7% invest. You made $50,000 of invest on top of your $50,000. $100,000 is the total. Now that person with the car sell it for $10,000 & lost the $40,000 of the initial price because of depreciation & $50,000 of invest if invested. They lost $90,000 to drive that Mercedes-Benz for 10 years. You don’t see that on Instagram.

  Basically, your net worth is more important than any house, car, clothing, or vacation. So next time you see someone on social media “living the good life”, just know you can look rich or be rich. They chose to look rich, which one will you pick? If you enjoyed this article, please share it with someone that is “Looking rich”, but might not have enough to live rich.

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[darrylhchapell]

Improve your financial situation

Here at Loan Away, we care about our clients. We provide them with loans, financial advice, and resources to improve their situation. Our goal is to make sure the funds we provide our clients with helps them grow financially. This is why we have compiled a list of books we recommend you read to become wealthy. The CNBC has created a great list of six books that are considered the pillars of wealth. Loan Away has a book we personally recommend that are not on the list, that you should consider reading. Before we look at the list, there are somethings we should point out. These books are not going to “make you rich”. No book will. The information in the book is nothing but words, however, it is how you interpret the words can make you rich.  Those who find the meaning of the books and implement it will be more likely to be successful.  Now that we are the same page, let’s get onto the list!

  6 books to read in 2018 if you want to get rich

The majority of wealthy people devote at least 30 minutes a day to reading. If it works for them, it could work for you.

Below, CNBC Make It rounded up six money-related reads, from personal finance classic to new releases, that could help you strike it rich in 2018.

For a productive start to the new year, crack open one of these highly recommended and helpful books:

“Think and Grow Rich” by Napoleon Hill

Journalist Napoleon Hill researched more than 500 self-made millionaires, including Andrew Carnegie, Henry Ford and Charles M. Schwab, before releasing this 1937 bestseller.

The personal finance classic will help you understand that mastering your money has more to do with mindset and overcoming psychological barriers than anything else, and it teaches you how to start thinking your way to success.

  “Business Adventures” by John Brooks

Rich people tend to believe that starting a business is the fastest way to make money. This read, endorsed by self-made billionaires Bill Gates and Warren Buffett, will teach you just how to do that.

Don’t let the 1969 publication date throw you off. While a lot has changed in the business world since the 1960’s, the fundamentals of building a strong business have not, Gates notes in a review, adding, “Brooks’s deeper insights about business are just as relevant today as they were back then.”

“Your Money or Your Life” by Vicki Robin, Joe Dominguez and Monique Tilford

Self-made millionaire Grant Sabatier has read over 360 personal finance books and “the best book on money, period,” happens to be the first one he picked up: “Your Money or Your Life.”

He’s not the only self-made millionaire who recommends the read. Chris Reining, 38, who crossed the $1 million threshold at age 35, calls it “the book that changed my life.”

The book hammers home the idea that you exchange your time for money. It encourages you to start thinking about how many hours of your life it took to save up the money to buy something and ask yourself questions like, ‘How much of my life did I trade for this?’ And, ‘Is it worth it?’

  “Unshakeable” by Tony Robbins

Robbins, who has interviewed some of the world’s greatest financial minds, offers a step-by-step playbook on how to transform your financial life and grow your wealth.

The No. 1 New York Times best-selling author teaches you that you don’t have to predict the future to win the investment game; rather, if you focus on what you can control, you can be the master of your investment fate.

“The Little Book of Common Sense Investing” by John C. Bogle

One of the most effective ways to build wealth is to invest wisely.

Bogle, founder of the Vanguard Group and creator of the world’s first index fund, details the simplest and most efficient strategy: low-cost index funds.

Warren Buffett also says that every investor, large-scale and small, should pick up a copy.

“The Automatic Millionaire” by David Bach

Self-made millionaire and financial advisor David Bach exposes a handful of money misconceptions in his easy-to-read bestseller.

As you’ll learn in “The Automatic Millionaire,” you don’t need a budget, you don’t need to make a lot of money and you don’t even need willpower to accumulate a fortune.

thumbnail courtesy of cnbc.com

These are great books to start with if you haven’t read any business/entrepreneur books. If you have already read these books, you should have already made changes in your life to improve your career. If so, you need to invest the new wealth you created. Who cares if you make $100,000 if you cannot use it wisely. If you don’t invest your money or worst, spend it on useless consumer products, you will regret it. People who are financially literate often retire early and with more money. To become financially literate, the book you should read is Millionaire Teacher by Andrew Hallam. The book explains everything you need to know to invest your money for a successful retirement.

  There you have it! Six books about making money and improving your career and one book on how to invest in your new wealth. I personal have suggested this list to my friends, co-workers, and family members. Only about 5-10% buy at least one book. Out of those people, only two have taken action. Those two people have told me the books have had an impact on their career and personal life. The only question now is, what will you do?

  The post Improve your financial situation appeared first on Loan Away.

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[darrylhchapell]

RRSP or Your Child’s House?

The housing market is insane in Canada. The average home in Toronto and Vancouver cost over $1,00,000 in 2017. 20 years ago, it was less than half of today’s price. What happened? Easy. As more people come to Canada and the citizens already here are having kids, the population grows. Since Toronto and Vancouver have very little space to build more homes, the value of each condo or house increase. Simple supply and demand.  There are more factors to the housing market, but this is a simplified version that everyone can understand. This is great news if you own property in Toronto or Vancouver. Your investment increased! Now, if you’re a millennial, you are in a bad situation. You might have to pay twice as much as your parents did for the same home. Since millennials cannot afford to buy or rent in today’s housing market, they choose to live with their parents for a much longer time than previous generations or hey take out personal loans for a home they cannot afford. What happens when the millennial wants to move out? Their parents help them financially. Most of Generation X does not have enough personal saving to help, so they use they used their RRSP saving. Is this wise to help your offspring or dumb because now you have less retirement funds?

    Letting retirees raid RRSPs to buy houses for their kids is an awful …

iPolitics.ca–Dec. 9, 2017

Just as Canada badly needs to put a lid on its overheated real estate markets to make housing more affordable (and avoid a debt-fueled financial meltdown), our nation’s real estate agents have come up with a self-serving scheme that will do just the opposite — and endanger the retirement savings of aging baby-boomers in the process.

Take a close look at the latest concoction of the Canadian Real Estate Association, one of the most powerful lobbies in the country. In a pre-budget submission to the House of Commons Finance Committee, the Association proposed a new wrinkle in the current Home Buyers’ Plan, which allows first-time home buyers to borrow up to $25,000 from their Registered Retirement Savings Plans, provided they pay it back within 15 years.

Under CREA’s proposal, aging parents would be able to borrow up to $25,000 each from their RRSPs and lend it to their children, who in turn would go out and buy their first homes and then pay back their parents over time. According to the real estate agents, this intergenerational RRSP loan scheme would be “a compassionate and fiscally responsible way to help modern Canadian families finance the purchase of a home.”

We all know that young buyers are increasingly turning to the “Bank of Mom and Dad” to finance their first homes, particularly in overpriced real estate markets. But fuelling this trend with taxpayer money is the very last thing the government should be thinking about now.

The federal government already provides billions of dollars in subsidies to homeowners. According to Finance Canada’s estimates, the non-taxation of capital gains on the sale of a principal residence cost the government $7.5 billion in foregone revenues in 2016. The First-Time Buyers’ Credit, introduced by the Harper government in 2009, provides a tax credit of $750 for first-time buyers at a cost of another $120 million annually. Plus, there’s the GST exemption on the sale of existing housing. The list goes on.

CREA’s proposal comes just when other parts of government are trying to deflate the real-estate bubble, not pump it up with more cash and more stimulus. But brokers don’t care about the health of the greater economy; they want to sell houses and condos. And since they work on commission, anything that boosts prices and keeps people buying is, to them, a good thing.

While nobody will say it out loud, the goal of these market-cooling measures is to take money out of the real estate market — and lower prices. Allowing parents to raid their RRSPs to help their kids buy homes would do the opposite.

When the former B.C. government of Premier Christy Clark tried to buy votes by introducing a loan program for first-time homebuyers in 2016, CMHC President Evan Siddall made it clear he thought it was a bad idea. In an email obtained by The Tyee under an Access to Information request, Siddall said: “Programs that support demand in supply-constrained markets like Vancouver serve primarily to increase prices and make the affordability problem worse.”

Furthermore, CREA’s intergenerational loan plan would be a direct negation of the policy purpose of tax-assisted retirement programs like RRSPs. People often forget that taxes on RRSPs aren’t cancelled; they’re simply deferred until the taxpayer retires and needs the funds. That’s why you can’t contribute to a RRSP after the age of 71 — you have to start taking the accumulated funds into income.

Under the current Home Buyers Plan, you have to pay back the loan you made to yourself from your RRSP by the time you’re 71. Otherwise, the Canada Revenue Agency forces you to include the balance of that loan as income.

The real estate group is silent on how the parental scheme would work in practice. Would there be an age cap on when a parent could make a loan? If a parent who is 70 lends $25,000 to an adult child and gets 15 years to pay it back, the loan would remain unpaid until that parent is 85. The retiree would be deprived of that income in the meantime and the government wouldn’t be able to tax the RRSP income that was deferred to support that retirement.

For lower-income seniors, this scheme would mean less money in the bank just as they need it most. For well-heeled seniors — the kind of people who already have enough money to give to their kids — it would be just another tax break. In both cases, the public policy case is questionable, to say the least.

Here’s what a CREA spokesman said in response to these concerns: “We trust that only people who can afford to lead their children money will. Indeed, it’s already happening.” As for the cost of the scheme, CREA offers no estimate.

  I personally won’t give up my retirement money for just about anything. However, I would be more than willing to help my children if I have the capability to. If you do ever find yourself in a situation where you need to take out money from your RRSP, please do not take out more than 20%. Anything more can be truly harmful to you. Taking out 20% is more than 20% in the long-term because of the interest that that money could’ve made. Example, if you had 200,000 in your RRSP and gave 20% to your child ($40.000) at 7% interest over 10 years, you actually lost $78,686!  That only 10 years. 15 years would be $110,361! 20 years would be $154,787! That initial $40,000 just got a lot bigger in just 20 years. Before you give any money from RRSP, you have to ask yourself if you would be fine without that money? If yes, great. If not, ask yourself if your child will take care of your financial needs later on in life? If yes, good. If no, you better hold on to your money. If your child is upset with your decision, you can tell them to live with roommates until they are financially ready to live on their own. This is a very personal decision and can be looked at a non-financial view. I, however, look at everything from a financial view (working in finance does that to you).

  To conclude, parents, you are not responsible for your child not affording a home. You do not have to shorten retirement for them. Millennial, if you partners say no, do not blame them. They want to enjoy the money they saved their entire life for retirement. If you cannot afford the place in the city, consider roommates or living further away from a big city.

  Enjoyed this article? Great! Share it to keep Canadians informed with the latest financial discussion that will affect you sooner than you think.

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[darrylhchapell]

Canadians are getting loans for cheaper

Payday loans are short-term loans with very high interest. The interest can be as high as 500% in some cases. Scary. These loans seem like the only option for low-income Canadians, but there are more options now. Both the Provincial Government of Ontario and companies that provide loans for people with bad credit are aware of the payloan problem that some Canadian faced. The Provincial Governments across Canada are helping vulnerable low-income Canadians by changing the way payloan companies like CashMoney and Money Mart work. In 2017, Ontario decreased the fee for every $100 from $21 to $18. This was a great step towards helping Canadians who may need a small loans to pay a bill or for an emergency. Provinces with a high cost of living followed suit within months. This week, Ontario decided to lower the fee for every $100 from $18 to $15! As great as this is, will this really help low-income Canadians? How will this affect small business owners like Mr.Piet? You can read the article below.

    Payday lenders squeezed by new regulations

The Globe and Mail–Dec. 18, 2017

Provinces across Canada have tightened rules governing the payday-loan industry, comprised of businesses such as this Cash Money store seen in Toronto. … Mr. Piet operates eight Money Mart franchises sprinkled across Canada, located in small towns such as Banff, Alta., and Timmins, Ont. Legislative

changes in numerous provinces – including Ontario, to take effect on Jan. 1 – have squeezed payday lenders, in particular smaller players such as Hamilton-based Mr. Piet. New rules reduce how much they can charge and put restrictions on lending.

“Tough,” says Mr. Piet of his 2018 outlook. “Really tough.”

The much-maligned payday-loan industry sells short-term loans at a high cost, mostly to lower-income Canadians. If a person doesn’t have access to credit, but is short on money in between paycheques and needs to cover something essential, such as the hydro bill, a lender such as Money Mart is an easy and fast place to get cash. The loans are generally repaid quickly, but the fees, which long stood at more than $20 for every $100 borrowed, added up to an annual interest rate of 500 per cent and more.

Provinces across Canada have tightened the rules that govern the industry. Payday lenders insist they provide an essential service, but they have been widely criticized for exploiting vulnerable customers and charging too much. Now they say their margins are being squeezed so badly that they’re fighting for survival.

Payday lenders have been forced to lower fees and loosen terms. In 2016, Alberta passed its Act to End Predatory Lending. Among several changes, including an extended payback period for a loan, the fee for every $100 borrowed was capped at $15. British Columbia, at the start of 2017, reduced the maximum allowable fee to $17 from $23 and instituted an extended payback period if a third loan is taken out within two months. Ontario cut its rate to $18 from $21 for 2017 – and on Jan. 1, 2018, Ontario will cut the figure to Alberta’s cap of $15. Ontario is considering an extended repayment period, too.

The various changes have been a challenge for payday lenders. In Alberta, where the traditional two-week loan is gone, lenders have moved to figure out different products. One is to offer instalment loans, sometimes for larger amounts, payable over an extended period. Fewer customers qualify, however, and smaller payday lenders can’t get the capital needed to finance longer and larger loans.

Another challenge is the new technology. Instant Financial Inc., a Vancouver-based startup, released an app this year that lets workers paid by the hour get their day’s earnings after a shift. It’s free for employees. Employers pay a fee. The focus so far is the hospitality industry, and includes companies such as McDonald’s and Outback Steakhouse in the United States. Instant has about 175,000 people on the service in the United States and about 5,000 in Canada. Wal-Mart has a similar product, which it sourced from another company.

“We can shake our fists at payday lenders and say it’s predatory lending. We took a different approach and said, ‘We’re going to fix this,’” said Instant chief executive Steve Barha.

The number of payday lenders operating in Canada has been on a downward trend for several years, in part because of the new legislation. In 2017, there are an estimated 1,360, down 5 per cent from 1,434 in 2015.

For Mr. Piet, with one Money Mart in Alberta, he has taken pragmatic measures. He has reduced hours of operation, cut advertising and pulled back on community contributions. He called his Banff store’s future “tenuous.”

In Ontario, where his Money Marts are in Timmins and Simcoe, Mr. Piet doesn’t feel the new rules in the province foretell looming closures but feels like he is in a vise as he draws up budgets for the coming year. “Everything is under the microscope,” he said.

The loss of venues such as Money Mart isn’t good for Canada, Mr. Piet said. “People aren’t borrowing money for frivolous things,” he said. “It’s the unexpected car repair. It’s the risk of hydro being cut off.”

The typical payday-loan customer often has no other option, according to a report from the Financial Consumer Agency of Canada, Ottawa’s independent consumer-protection watchdog.

  The entire article can be found on The Globe and Mail

With the cost of.. well everything in Canada, more Canadians are having trouble paying for the basic needs. This includes heating, water, gas, and other necessities everyone needs. In 2009, one in every fifty Canadian received a payloan. In 2014, that number double to one in every twenty-five. This is the same time period when Loan Away was established. The financial company has been able to provide loans of their choice for thousands of Canadians across the country. Instead of a short-term loan, Loan Away has over 20 different types of loans such as debt consolidation, long-term loans, personal loans, online loans, and more. Loan Away and the new regulations are causing payloan companies to question if the industry is still profitable. For the past several years, payloads companies have had to close down 5% of locations across Canada. This may not seem like a big step for the economy, but it is. As long as this trend continues, Canadians will no longer need pay loans for bills anymore. Instead, the economy will be more stable and people will get loans to advance themselves instead of maintaining. Within the next few years, Ontario and other provinces will continue to regulate payloan fees; eventually eliminating the payloan industry. Only well established financial institutions will flourish!

  How do you feel about the changes that provinces are making towards payday loan companies? Let us know your thoughts! Share this post to bring awareness to every Canadian.

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[darrylhchapell]

Be Student Debt Free in 2018

Have student debt? Most Canadians do. Canadians, especially Ontario post-secondary graduates, have some of the highest student debt in the world. Recently the Ontario Government has subsidized post-secondary for low and average income families. This is great for the for those who are preparing to attend post-secondary, but what about the people who have graduated already and have thousands of dollars of debt? According to the Provincial Government of Ontario, you are out of luck. You will have to pay off your debt in full while the next generation does not. Do not be completely discouraged. Here are some great tips to pay your student loans faster in 2018! Following this guide will bring you closer to financial independence and being debt free.  If you want a simple solution, debt consolidation can be a great option. Being debt free is a goal we all strive for, so let’s go over the top 5 tips to paying off your student debt!

  Pay Off Your Student Loans Faster In 2018

Forbes–Dec. 20, 2017

Is 2018 the year you finally pay off your student loans?

For many, the answer is no.

According to Make Lemonade, there are over than 44 million borrowers who owe more than $1.4 trillion in student loan debt.

The good news is that when it comes to getting student loan debt under control, the ball is in your court.

Even if you can’t pay off your student loans now, there are ways to alleviate your debt burden and live a better financial life.

Here are 5 action steps to help pay off your student loans faster in 2018:

1. Make an extra student loan payment

One of the best strategies to pay off student loans faster is to make an extra payment.

Since there are no prepayment penalties, you can make extra payments of any amount.

For example, always pay at least the minimum payment each month. In addition to making 12 monthly payments per year, consider an extra payment once every three months for a total of 16 payments per year.

Contact your lender in writing and explain that you want to make additional payments several times per year.

Be sure to specify that you want to apply any extra payment above the minimum payment to principal only (not to next month’s monthly payment) to limit the amount of interest that accrues.

Without this instruction, your lender will hold the excess payment and apply it to next month’s payment – which means you would pay more interest.

2. Pay more than the minimum payment

The minimum payment, as its name suggests, is the minimum payment you should pay each month.

However, you can pay more than the minimum payment with no penalty.

Why would you pay more than you have to? Remember, interest is always accruing on your principal balance. So paying any amount more than the monthly minimum can reduce the cost of your student loans.

Make Lemonade’s student loan prepayment calculator can show you how much money you can save by paying off your student loans faster each month by paying more than the monthly minimum.

For example, let’s assume you have $100,000 of student loan debt at a 7% interest rate with a standard 10-year repayment term.

By paying only $100 extra per month, you can save $4,696 in interest costs and pay off your student loans 1.08 years earlier.

3. Make a lump-sum student loan payment

Your first inclination might be to spend your annual bonus or tax refund on a vacation or other personal purchase.

However, the wiser move is to apply all or a significant portion toward paying principal on your student loans.

Make Lemonade’s lump sum extra payment calculator shows you how much money you can save with a one-time, lump sum student loan payment.

For example, let’s assume that you have $100,000 in student loans at a 7% interest rate and a 10-year repayment term.

If you make a one-time, lump sum payment of $2,000, you would save $1,703 on your student loans and pay off your student loans 4 months early.

4. Apply for loan forgiveness

While student loan forgiveness may not continue as a federal program (in its current form or at all), Public Service Loan Forgiveness and Teacher Student Loan Forgiveness are still available to qualifying individuals.

Public Service Loan Forgiveness is for student loan borrowers with federal student loans enrolled in a federal repayment plan who are employed full-time in an eligible state, local or federal public service job or 501(c)(3) non-profit job who make 120 eligible on-time payments.

Teacher Student Loan Forgiveness is for full-time teachers with five years of teaching experience in a designated elementary or secondary school or educational service agency that serves students from low income families.

5. Refinance your student loans

Student loan refinance is often the single best strategy to lower your student loan rate.

Student loan refinance enables you to pay off your existing student loan and assume a new student loan with a lower interest rate.

There are multiple private student loan lenders who offer interest rates as low as 2.50% – 3.00%, which is substantially lower than federal student loans and in-school private loan interest rates.

You can choose either fixed or variable rates and loan terms ranging from 5 to 20 years.

Each lender has its own eligibility requirements and underwriting criteria, which may include your credit profile, minimum income, debt-to-income and monthly free cash flow.

To maximize your chances of being approved to refinance student loans, you should apply simultaneously to multiple lenders.

  Now that you know what to do, apply it! Take control of your finances today. Do not think “Oh, I will start this method when I have more income” because that type of thinking does not work. The best time to do pay off a loan is today. The article only provided tips, but did not provide a guide. Here is a guide to clearing your student debt quickly!

  Step 1 – Make a plan and stick to it! Make a budget for each week and month. The budget should include your income and how much spending money you have after bills and expenses like rent. If you agree to put 15% of your net income to your student debt, you better not break it. If you overspend one week or month, you have to balance it by investing more money in your debt the following payment. If you are inconsistent with the amount you choose, you will continue on a trend of paying less and less each payment. This is how most people start and end. Don’t be one of those people.

  Step 2 – Look for the best deals Let’s say you have  30% of your income to spend, but you use 25% for this like eating at restaurants, phone bill, and the random items on Amazon. You need to limit yourself from these unnecessary expenses. Change your phone plan to something cheaper, cook food in advance to prevent eating at restaurants, and that item you want on Amazon is probably not needed. Instead of buying it right of way, keep it in your wish list for two weeks. If you still need it after those two weeks, buy it. If you forgot about it, you might not need that item after all.

  Step 3 – The more people the better If you are living by yourself or with a partner, please consider moving. This is not something everyone can do, but for the people this applies to, please consider this step. If you can move back with your parents, do it. If you are living by yourself and cannot move back with your parents, get roommates. If you are living with a partner, get roommates or move in with their family. If you can save money on rent, do it. This will make paying off your student loans two times easier.  If you are serious about paying off your debt, this is the most important step. Yeah, it might not be fun living with parents or roommates for some, but you will be debt free in less time.

  Now you know everything to pay off your student debt quickly this year. If you enjoyed this post, please share it! The less debt we have, the better the Canadain economy will be!

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