7 Reasons You Should Definitely Opt For A Debt Consolidation Loan
Are you straddled with multiple debts and struggling to make your repayments on time? Maybe you have a super busy schedule and can’t seem to keep track of various credit card EMIs. If so, a debt consolidation loan may be just what you’re looking for!
Having various debts can have a negative impact on your credit score and when you fail to make repayments, you risk getting blacklisted by lenders. A debt consolidation loan is a smart way to manage your finances and make sure you stay on track. By transferring all your existing debts into a single big loan and the pending balances, you also end up getting more time to pay back. Here are 7 reasons why you should opt for a debt consolidation loan along with the various benefits:
1. It’s Completely Online
Maybe you’ve heard stories about sitting down with credit counseling services and having a word with them when applying for a debt consolidation loan. Paying debts comes with its own set of challenges and jumping through many hoops to get a loan amount disbursed may feel daunting. These days the process has been made easier.
Consumers can apply for debt consolidation loans online and get the desired amount they need. Agencies and credit lending organisations have made the whole process paperless, which means you can apply for a new loan at your fingertips. Just make sure you’ve got your KYC documents and ID proof ready and you’ll be good to go.
2. Enjoy Lower Interest Rates
Let’s say you’ve got two debts which have an interest rate of 12% and 10% each with different repayment tenures. With a debt consolidation loan, you can combine them into a single EMI payment and get a flat interest rate. You don’t have to worry about paying two interest rates and in this way, save money on your interest.
Credit card companies and organisations provide lucrative interest rate offers for debt consolidation for borrowers who demonstrate sufficient creditworthiness and have a good CIBIL rating. It’s that simple.
3. Longer Repayment Tenures
Borrowers have a tough time paying back multiple debts when they’re always on the edge. Keeping track of repayments, missing reminders, and defaulting on timelines can lead to consequences. Debt consolidation loans take all the pending dues and transfer the balance into single EMI monthly EMIs. The tenure is longer for repayment since borrowers are consolidating debts from multiple sources. Higher-priority debts are cleared off first with lower-level interest rate debts being at the bottom of the list.
The lender you’re taking a debt consolidation loan through is usually in charge of arranging the order of clearance for all your existing debts. In short, you get more time to pay off your other loans with a single big loan and don’t worry about having to communicate with multiple individual lenders.
4. May Improve Your CIBIL Score
If you take out a debt consolidation loan for clearing off your pending debts, you can give your CIBIL score a nice boost down the line. That’s because these loans are treated just like personal loans by CIBIL and logged in their database.
When you make timely repayments and clear your dues early, your credit utilisation ratio dramatically decreases. You might experience a small drop in your credit rating when taking out a debt consolidation loan but this is offset later when you make early repayments. Many financial institutions and companies give lucrative loan offers to individuals who pay off their debt consolidation loans quicker. If you’re thinking of taking other types of loans like car loans, gold loans, or home loans in the future, it’ll be a lot easier to get your application approved due to your higher CIBIL score.
5. Clear Off Debts Sooner
When you club your payments together into single EMIs, it’s a lot easier to keep track of the overall amount. Due to the lower interest rate and flexible EMI tenure, you may find that you clear off your debts sooner. It’s not uncommon for borrowers to find two or three debts that last for 5 to 6 years see them get cleared in about 4 years since they get more time to pay back the individual principal amounts through debt consolidation. Overall, it’s a win-win for lenders and borrowers since it makes financial management easy.
6. Less Emotional Stress
You don’t have to stay up all night worrying about whether you missed another payment. There’s less psychological pressure when you go for debt consolidation. Borrowers don’t have to think about following up with multiple lenders. All this equates to lower stress levels which improve your overall productivity later on. By taking control of your finances and adding structure to your repayments, you make the process of clearing off multiple debts easier. The lower your emotional stress, the better decisions you can make about your finances too.
7. Can Use Them For Any Reason
One of the perks of these loans is that you can take out money to pay off any kind of debt. You can combine your education loan and credit card bills together into a single debt consolidation loan.
If you’d like a debt consolidation loan for clearing off any pending payments for your Amazon EMIs, you can do that too. Just keep in mind that your credit bracket will be influenced by your CIBIL Score. If you already have a good credit profile, taking a debt consolidation loan will let you enjoy lower interest rates and give you extra time to pay them back. This means more room for spending money on the things you want which can be freeing in a way. As long as your finances are in check, you’ll find they offer you greater flexibility.
If you’re thinking of applying for a debt consultation loan but still not sure, you can talk to a financial advisor. Sometimes borrowers require extra time to clear off debts and it’s not a matter of running out of money. Debt consolidation loans are available to both salaried and self-employed individuals. As long as you are a resident of India and have the proper documentation, you can apply for one online.
The process for disbursing a debt consolidation can take between 2 to 4 business days depending on your credit rating and financial profile. The key requirement most lenders look for in applicants is proof of creditworthiness, so make sure you have proof of stable income and your bank statements in hand before applying.
Common Problems that Fail Home Inspections
The housing market is booming right now. Buyers are flooding real estate websites looking to purchase their forever home. This is happening because they can get a bargain with interest rates being low.
The sellers out there may be wondering how much they can truly get for their home. You should start by looking at comp houses in your area to see what the going rate is, factoring in any special features you may have. Then use a seller closing costs calculator to see what type of costs you will concur and deduct that from your listing price.
Another thing that sellers need to be aware of is what can make the house fail inspection. The house can only be sold if it 100% passes inspection. There are many reasons or causes for a home to fail inspection, but some are more common than others. Let’s take a look at some of the common problems to ensure you have them all wrapped up before you sell.
Mold is a very common issue for homes to fail inspection. The worst part is you probably aren’t even aware of it. Sure mold can grow on outer surfaces, but it can also grow under floors and behind walls.
It’s best to pay for your own inspection so mold doesn’t sneak up on you when you are trying to actually sell. You may also not even know if a substance is mold or possibly mildew. It’s best to find out ahead of time as mold can be very dangerous to the human body.
Faulty Decks or Porches
You may walk on onto your deck or porch and think it’s fine, but far too often decks or porches cause homes to fail inspection. Boards could be loose, the support beams could have sunk farther into the ground, or it may just not have been built to code in the first place.
Walk around the deck, test it out, inspect it with your own eyes. If something doesn’t look right to you, you may want to seek an opinion from a licensed contractor.
If you notice that your grass or lawn is a little soggy long after a storm or even without a storm, you may have a big issue on your hands. Yard drainage is an issue that sneaks up on many home sellers.
If you notice small lakes forming in your yard or mushy wetlands appearing, you should try and get to the root of the issue. Most likely it could be an issue you will have to deal with and get fixed, but not all the time. Sometimes this happens and it could be on the city or township that you live in. It’s best to figure out who’s issue it is before you go to sell your home.
Cracks in the Foundation
Put this right up there with mold. Cracks in the foundation of a home are far too common causes of a failed inspection. Chances are a crack in the foundation can be repaired, but it’s best to get it fixed as soon as possible before it spreads and gets worse.
You should check for cracks in the foundation both inside and outside of the home.
Roofs on average have a lifetime of about 10-15 years. Making sure that your roof is within that lifespan is important.
You should still ensure that all plywood is intact and not rotten, and that there are no missing or lifted shingles. This could be such an easy fix that it’s not worth risking a failed inspection over. Grab a ladder and walk around the roof or hire a roofer if you don’t feel safe. You’ll be able to tell if anything is off.
Establishing Your First Dutch Company: Sole Proprietorship vs BV
When you start a business, a legal form shall be chosen. In many countries, the most enticing prospects will exist of a sole proprietorship and limited liability company. To compare the two options, a more detailed look will be given into the situation in the Netherlands. A small country located in the EU and since the Brexit very popular for the set-up of trading companies.
A lot of business owners looking to establish a business in the Netherlands first start with a sole proprietorship (eenmanszaak in Dutch). It’s a very convenient and hassle-free option since all you have to do is pay a visit to the Chamber of Commerce and your company is right there, all ready for you. However, in a variety of cases, a sole proprietorship may not always be the most viable solution. This is mainly why many entrepreneurs choose to make the switch from a sole proprietorship to a private limited liability company: a BV.
Many entrepreneurs even choose to forego a sole proprietorship altogether and simply start with a BV. But what exactly is a BV? What does it entail and what factors should be considered when deciding to set one up? Most importantly, what are the costs and fees associated with establishing a BV?
What is a BV?
The abbreviation BV is used to describe a private limited liability company (Besloten Vennootschap met beperkte aansprakelijkheid in Dutch). A BV is among the most preferred legal entities among entrepreneurs in the Netherlands. Compared to other entities like foundations and association, a BV is mainly centred around business operations, making it the perfect choice for entrepreneurs.
A BV usually features one or more directors who are authorized to act on its behalf. This way, the BV can be considered a legal person which can enter into agreements and perform other actions even while it is being represented by a director and other roles.
What are the differences between a limited liability company and a sole proprietorship?
This question allows us to directly address some of the most prominent differences that come with the simple one-man business. In legal aspects, a person with a sole proprietorship is always jointly and severally liable for all actions related to it. This means that in the case of your sole proprietorship going bankrupt, you will have to bear the responsibility for privately settling all related debts. In the case of a BV, this is often different.
If your BV ends up going bankrupt, your private assets will remain unaffected. Of course, there are some ifs and buts when it comes to this. For instance, if you actually do end up going bankrupt, there will be an investigation regarding the honouring of the general principles of good administration. In simple terms, this means that they’ll see if you were involved in any recklessness regarding the BV. If found responsible for the bankruptcy, you may be held liable. Due to these reasons, it is important to ensure that you manage your BV carefully and responsibly.
There exists another general limitation regarding the advantage that a BV owner is not jointly and severally liable. Such limitations are most prominent when you are just starting out on setting up your private company and require funds for being able to make investments. In cases like these, banks and financial institutions generally only provide loans if you personally act as a guarantor. That keeps you jointly and severally liable (at least to some extent) during the initial years of establishing your BV.
Liability aside, a sole proprietorship and a private limited company have some other stark differences as well. Entrepreneurs having doubts between the 2 entities should know this: a BV generally provides a more solid stature of repute, commercial trustworthiness and authority. Private companies tend to be seen as professional companies and not hobbyists. The BV status helps ensure your clients that the company is reputable, responsible, trustworthy, and won’t vanish into thin air overnight. This can significantly boost your credibility as a company and even facilitates the expansion of your clientele by attracting new clients.
Another advantage available to BV owners is that they can issue shares and can partially or completely transfer their company to somebody else for example, from father to son. Shares can also be distributed among close friends and family members to give them a small chunk of the profits while obtaining funding as well. These perks are non-existent with a sole proprietorship.
‘The tipping point for going from a sole proprietorship to a private limited company is around 150k euro profit’
Finally, a BV brings (usually positive and favourable) tax consequences. For example, BV owners fall under the umbrella of corporate income tax instead of personal income tax. In case you’re making considerable profits of up to 150K Euro or more, you’ll be subject to a lower tax rate than that which comes with a sole proprietorship. So, if your business is doing really well and you have a sole proprietorship, then making arrangements to establish a BV would be a very sensible move.
Dutch company formation: How is it done?
One thing is clear: it takes more effort to create and register a company in the Netherlands (and eventually closing it down) than a sole proprietorship. A sole proprietorship can easily be arranged at the Chamber of Commerce in about an hour. If you feel like it, you can even use your private bank account for the whole procedure. With a BV though, things are done differently.
The first step in setting up a BV involves you informing a company formation specialist of this intention. Based on the details you provide; they will draw up a deed of incorporation for you. This document is a declaration that a BV is now being created. After the company has been established by executing a deed of incorporation, you will need to register the UBO and company with the Dutch trade register. Company formation agents usually take care of this task on their own at the Chamber of Commerce, and the whole procedure is usually completed within a day. Capital is payable either before the execution of the incorporation deed or after it has been done.
Capital contributions can become a cause for confusion sometimes. Before 2012, the rule was to deposit 18,000 euros, which could be cash or material possessions having the same value. This condition has been revised and it is now possible to simply make a deposit of 1 cent. This allows you to decide exactly how much you’d like to deposit for your BV.
You can start carrying out other important affairs regarding your BV even if the incorporation hasn’t been completed. For this, you will be acting on behalf of a BV in formation (in oprichting). You can simply inform your business contacts that you are carrying out affairs on behalf of a future BV. You will have to assume complete personal liability for any obligations, deals, or contracts you participate in, but you won’t be wasting any time by waiting around for the incorporation to complete. If you need to arrange a website or property for your company, you can easily do so.
What are the costs associated with setting up a BV?
The initial capital contribution isn’t a very serious major expense for a BV setup, but notary visits are important and can have costs. Usually, it is safe to set aside a few hundred euros for this.
Mandatory audits for legal entities (like a BV) are also something to be mindful of. These have their own costs, and if you fulfil any 2 of the 3 conditions mentioned below, you will have to hire an accountant:
- A total of more than € 6,00,000 on your balance sheet.
- A net turnover exceeding € 12,000,000
- 50 employees or more.
BV Registrations with the Chamber of Commerce generally come with a price tag of €50. Generally, there aren’t any mandatory costs. However, your business expenditures can rack up. When thinking of business costs, be sure to consider essential elements such as staff, machines, equipment, arranging business premises, transportation and other relevant costs.
Ever since the 2012 rule of depositing 18,000 Euros has been scrapped, it has become much easier and more affordable to establish a private limited company. A few hundred Euros can help you go a long way in your Dutch business journey; however, it’s always advised to be mindful of other business expenses, which there will probably be a lot of. Actively making real investments will also require you to have some capital on hand. However, that should be no surprise because every entrepreneur is well aware of the idea that: in order to make money, you first have to invest money.
Forex Trading for Beginners – Practical and Useful Tips
Forex trading doesn’t have to be frightening if you know a good place to start and who, to begin with. The first good thing is that you are here, reading this article. The second is finding Forex broker reviews after reading this (you’ll see why). Without further ado, let’s begin!
Recognize How It Works
The importance of understanding the forex market cannot be overstated. Before you lose your own money, take the time to learn about currency pairs and how they are affected; it’s a time investment that could save you a lot of money.
Create a trading strategy
Developing a trading strategy is an essential part of being a good trader. Your benefit targets, risk tolerance level, methodology, and assessment criteria should all be included. If you’ve created a strategy, double-check each trade that you’re considering fits within the constraints of your strategy. Remember that you’re most reasonable before you make a deal and most unreasonable after you’ve made it.
With a risk-free demo practice account, you can put your trading strategy to the test in real market conditions. You’ll be able to feel out what it’s like to trade currency pairs while also putting your trading strategy to the test without risking any of your own money.
Predicting the Market’s Conditions
Fundamental traders tend to trade according to news and other financial and political data. In contrast, technical traders prefer to forecast market movements using technical analysis methods such as Fibonacci retracements and other indicators. The majority of traders employ a mixture of the two. Whatever your trading style is, you must use the resources available to identify possible trading opportunities in moving markets.
Recognize The Limits
Know your boundaries. It’s a basic concept, but it’s crucial to your potential success. Knowing how much you’re willing to gamble on each exchange, adjusting your leverage ratio to what you need, and never investing more than you can afford to lose are all examples of this.
6. Recognize that it’s time to take a break
Perhaps you don’t have time to sit and watch the markets 24 hours a day, seven days a week. Stop and limit orders, which get you out of the market at the price you set, will help you control your risk while trading and protect future income. Trailing stops are handy because they follow your position as the market swings at a set distance, helping to preserve profits if the market reverses. Placing repetitive orders may not always lessen the chance of losing your money.
Leave your feelings at the door
Let’s say you’ve opened a spot, but the market isn’t moving in your favor. Maybe you might make up for it by making a couple more trades that aren’t in line with your trading strategy. Perhaps it turns out better, right?
“Revenge trading” is seldom a good idea. The worst thing is to let your emotions get the best of you when you are trading. When you are losing, don’t go all-in to try to make it up in one go; it’s better to stick to your strategy and make up the lost money gradually rather than ending up with two crushing losses all at once.
Move Slowly and Consistently
It is consistency that is a crucial aspect of trading. Every trader loses money at some stage, but keeping a positive edge increases the odds of winning. It’s great to educate yourself and build a trading strategy, but the real test is sticking to it with patience and discipline.
Don’t Be Afraid to Take Risks
Although continuity is important, don’t be afraid to rethink your trading strategy if things aren’t going as planned. Your needs will change as your experience grows; your strategy should still represent your objectives. Your strategy should change as your priorities, or financial circumstances change.
Choose Appropriate Forex Broker
When you participate in the Forex market, it’s important to choose the right trading partner. Pricing, execution, and customer service efficiency may all affect your trading experience. That’s one of the main reasons why you should look at Forex broker reviews first – to find a licensed and certified broker who will guide you through it all.
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