This applicant has applied for a debt consolidation relief loan for his small bistro that he operates in the Palm Springs California area. His situation is somewhat complicated in that he has made a personal loan of $175,000 to the bistro as an operating loan based on his application. As with all businesses, there are ups and downs in the business cycle which affects cash flow. It makes sense to have an operating loan for a business; however this one is complicated by the personal nature of the loans at this time.
The applicant has applied on behalf of the business, when really the business should be applying for the debt consolidation relief. If this relief were approved the restaurant would actually repay the owner all of the money loaned by the owner to the restaurant. Before any loan of any kind can be approved the lenders would want to review the audited statements for the business and they probably would want some sort of guarantees from the owner in terms of obligation to repay the loan.
A great deal of added discussion and information will need to be provided before any decision can be made regarding this debt consolidation relief loan. Financial statements need to be provided and documentation covering the personal loans that he has made to the business. Most debt consolidation relief loans concern credit card debt and other loans that need to be consolidated into one low interest loan. This loan application is for an owner of a business who really wants to obtain some of his personal money out of the business. This is a much more difficult kind of loan to review and approve based on the fact that the owners income is also dependent on this same restaurant. Further conversation will be required.
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Bad Credit Loans For Debt Consolidation – Los Angeles, CA
This client lives in Los Angeles, California and is applying for a bad credit loan so that he can do some debt consolidation of his six credit cards. He has all these credit cards and they are charged up to the maximum. He wants to avoid having to pay a great deal of interest on the unpaid balance.
With so many credit cards and the balances so high it is no wonder that his credit rating has declined. This situation actually happens quite often to many consumers who end up with too many credit cards and carrying balances on each of these credit cards. Various companies will send pre-approved credit cards to consumers who sign up for them and next thing they know there credit rating drops simply because they have so much potential for debt.
Consumers must then apply for bad credit loans and they find that the interest rates, although lower than credit cards, are still much higher than what they would pay if they had excellent credit. We find this situation quite often with customers that are carrying a lot of credit. The only way to deal with this situation is to apply for bad credit loans for debt consolidation and then repay all of the credit card debt with this loan.
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Our current applicant is applying for a bad credit loan and lives in the Oakland California area. He has a great job that pays well, however he freely admits that he is not good at saving for large expenditures that come along. In this case it is the taxes on his home and his health insurance.
Consumers would be really surprised at how many times we hear of this kind of situation. We really think that managing money should be a course in school for everyone.
Most people pay these expenses monthly which forces them to budget for these expenditures, however when you pay annually, you really need to be setting aside money every month so that you have the funds needed to pay them when they are due. He apparently is going to switch over to monthly pay simply to force him to budget accordingly. Right now he needs $10,000 to pay the taxes and his health insurance.
His credit rating is not great which is forcing him to apply for a bad credit loan. If he can get his life on track financially he will be able to repair his credit rating. (Continued)
Well this is certainly one of the unusual home loan applications that we have received in a while. Essentially this applicant is self financing his own film production and has run out of cash. He has turned to his current lender for further financing who will not loan him any further funds due to his poor performance on meeting the terms of his current home loan.
He has two options; A) refinance his home to obtain additional cash to put into this movie or B) sell a portion of the rights to the film in return for cash to help him finish the movie. He is reluctant to pursue scenario B since he may have to give up some of the control on the editing and distribution of the movie. This is his baby and he does not want to let it go.
Financing movies is a very specialized area and not many lenders are able to or willing to get involved in this area of business. Consumers with bad credit ratings also have a very difficult time finding lenders to lend them money regardless of what the reason may be. This one is more difficult due to his bad credit rating and the rather large size of this home loan.
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Our newest applicant is applying for a bad credit car loan for $15,000 and lives in the Torrance neighbourhood of Los Angles. He has seen a car that he would like to purchase which the dealer is currently holding for him on a first right of refusal basis and now he is looking for a car loan that will be approved with his bad credit rating.
This applicant has a bad credit rating essentially due to mismanagement of his credit cards. He has a lot of credit cards and an unpaid balance on several of them. Lately he has been consolidating the balance on these cards and plans to eliminate or reduce the number of cards that he has. He has $6000 to put down on the car, which we think would be better used to pay down the balance he owes on the credit cards which would save him a great deal of interest. Credit card usually charge 19% or more on any unpaid balance.
The car loan will be based on using the car as collateral and he probably can be approved for the full amount of the value of the car provided that the car is appraised at $21,000 which is what he has been asked to pay for this car. The lending reviewers will look at this factor along with his total debt and his income. This will help to establish whether he is a reasonable risk in terms of being approved for this bad credit car loan.
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Our latest applicant is applying for a loan to stop foreclosure on his home and lives in Stockton, CA. He is looking for a loan in the range of $1000 to $5000. He appears to be getting his financial position under control. He had lost his job and in the process of trying to balance payments between taxes, mortgage payments, utility payments and putting food on the table while looking for a job his bank has decided to foreclose on the home he has lived in for the past three years.
Both he and his wife have found jobs now and are making sufficient money to handle all of their payments. They did not have an emergency fund built up when they lost their jobs. They plan to begin establishing an emergency fund once they get reestablished and have dealt with all of their cash flow issues. In the mean time they need this small loan to allow them to repay the payments that they are behind on and meet the demands of the bank. They have limited time to make this happen since the bank wants to foreclose on their home by the end of the month.
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Friday, February 22, 2013
Our latest client is in need of a $30,000 fast loan for surgery scheduled for the following week and he lives in Modesto, California. The actual surgery is ahead of schedule due to a cancellation by another patient. He has not had time to make financial arrangements due to the suddenness of the operation. He needs to be approved for the loan within the next few days so that he can proceed with the loan and commit to the operation.
Even though he is covered by health insurance, this client has the same problem that many people do. Their insurance will pay for a portion of the health bills and they are responsible for the remainder which can be pretty significant as this case shows. Many people do not even have this kind of coverage and have to borrow much larger amounts of money to finance surgeries that are needed. The alternative is to just live with it.
Regarding this loan, we believe that lenders will approve this loan. They have a great credit rating and they have solid jobs. They also do not carry any debt at this time and all of these points make this client an excellent risk for this loan.
The client asked whether he would be better off to use some of his savings instead of applying for a loan. Loan rates are at historic lows and many people are able to find loans with low interest rates. At the same time income rates for investments are not very high if you are invested in an interest bearing investment of some kind such as a GIC for example. On the other hand dividend bearing stocks are providing slightly better yields depending on the company. We have no information regarding what his investments are and therefore cannot really comment on this specific question for this client.
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