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How to Get a Loan to Pay Off $10000 In Taxes

One of the biggest problems that consumers find they have to deal with is cash flow. It does not matter whether it is credit card debt or as in this case large renovation projects. If you do not have the cash to pay your bills eventually it will catch up with you and your going to need a loan.

This consumer buys homes that are in need of tender loving care, renovates them and sells them at a profit. Of course it takes time to complete the purchase, finalize the plans, finish the renovations and then make the sale. Only once the sale is completed is there cash to pay for materials, labor and taxes.

Managing your cash flow is extremely important, especially when there are delayed payments such as in this case. This consumer did not set aside any cash to account for the taxes that he owes on the profit he made in the past year. He wants to know what the best solution would be for him. He needs to be able to pay his $100,000 tax bill shortly.

It will be very difficult to find a lender to provide an unsecured loan. There simply is too much risk associated with this kind of loan. If the consumer has sufficient equity in the various properties he is working on, he might be able to obtain a loan secured against one of these properties. He will enjoy a better interest rate as well. There will be less risk for the lender since if he defaults on the loan, the home will be sold to recover the balance on the loan.

Depending on the actual timing of the due date for the taxes and the expected sale of his next development, there may perhaps be another alternative. He may want to enter into discussions with the government regarding a plan to pay his taxes over time. Of course there will be penalties and interest charges with this approach. However the government could end up being the lender for this $100,000 loan.

The accountant would along with the consumer need to put together a proposal to review with the government tax authorities. If they feel that this is a valid plan with a high chance of success, they might be willing to consider this approach as an option.

The bottom line for all consumers regardless of how much you owe is to manage your cash flow to avoid sudden payments that become due. Set aside funds to deal with the emergencies and in particular set aside funds to pay for future known invoices and tax debts.


Consolidate Debt With Really Bad Credit

It is really surprising how many successful people have money problems. After all, you would think that they should be able to manage their money issues in the same way that they manage their careers. Our current consumer has this problem in spades. He apparently has done very well in his sales career, yet cannot manage is bank account and pay his bills unless they are on automatic payments. He also spends a lot of money on clothes to look good and enhance his confidence in front of customers.

He may be totally focused on his sales career, but he also needs to pay attention to his credit rating. Employers check everything these days when they are hiring someone. One area they look at is your credit status. If a prospective employee has a bad credit rating, many employers will not hire them simply because there is lots of competition for the job and they can find qualified resources else where. They just do not bother to check the reasons that you have a bad credit rating. They assume the worst and look at other more qualified candidates. It is a very competitive market place and we all need all the help we can get.

Obviously this sales person would be much better off if he can deal with his current debt and lock in the monthly payments in a low interest loan which are automatically paid out of his checking account. Actually this is what most lenders are also looking for. They want the security of automating a payment from their customer from their checking account. In addition if he is able to maintain a good record of repaying this loan, his credit rating will improve over time.

His credit card debt is not huge, but he will be paying in access of 20% interest on the unpaid credit card debt on his various accounts. A personal loan has a much lower interest rate. Lenders will charge a higher rate for this consumer due to his bad credit rating than they would to their best customers. However the interest rate on the personal loan should still be much less than the credit card interest rate that is typically charged.

Given the focus that this consumer has on his career and now knowing the potential impact that a bad credit rating could have on his employment prospects, he will likely get this area of his life under control. A bad credit rating can also limit the ability to take out a car loan as well as a mortgage for a home. It is very important to get control of this issue if he has any plans in the future of buying a home or upgrading his vehicle.


What To Do If No Bank Will Approve A Consolidation Loan

This consumer would like to be approved for a consolidation loan for his credit cards and personal loans. His credit is bad, but he feels he should be able to find a lender that will approve his loan request. To date he has been turned down by several banks including his own local bank that he deals with. He cannot understand why, even though his credit rating is not in good shape. He requested that we help him understand why he is being declined and if we can assist in finding a lender.

There are six main reasons why consumers are turned down for debt consolidation loans. Once he understands these reasons, he can then do something about it and work on being approved for a loan. In most cases it is not just one area that needs to be focused on. Usually there are several areas that need to be addressed. The following are the top six reasons consumers are turned down for a loan:

Lack of security for debt consolidation loan – many lenders like to have security or collateral to support the loan in case the borrower is unable to repay the loan. For many it means that no security means no loan.

Poor credit scores and credit report troubles – this is a big one. If you have a lot of credit cards, missed payments, owe too much etc your scores will drop and this can be a red flag to many lenders.

Insufficient income to qualify for a debt loan – lenders compare your income level to all of the debt payments that you make including car loans, personal loans, rent or mortgage payments, property taxes and credit card debt. While a consolidation loan usually means that you pay less interest due to lower interest rates, the monthly payments are higher. Higher payments mean you pay off the loan more quickly than you would if you stick with the credit card debt. Anytime you exceed 35% payments compared to gross salary, lenders start getting nervous.

Lack of credit history in country where you live – if you have only been in the country for a short while or have not borrowed money before, you may not have a credit rating at all. Often students fall into this category as well as new immigrants.

Having too much debt – similar to not having enough income to support the debt you owe. If you owe too much already, lenders may not want to consider you for a loan of any type let alone a consolidation loan.

Lack of time on job – You might have the best job going, but if you have only been there for a short time, lenders view this as a possible risk area. They look for stability and earning power.

Depending which of these areas applies to you, there is still something that can be done to help you qualify for a debt consolidation loan. For example, a letter from your employer confirming your employment, especially if you are still being assessed could help. Previous long term employment records along with reasons for leaving might be another. Taking a second job to increase income levels, documenting the issues associated with your credit report and rating can be additional areas to look at. Sometimes a co-signor will also work, however the co-signor must be aware that if you fail to make your payments, they will become responsible for the remaining debt.

Finally, credit counseling, debt negotiation and worst case, bankruptcy solutions can also be considered. Bankruptcy is a last resort and will have profound impacts on your future ability to borrow money.


Bad Credit Loans in 2016 for 40000-50000 Dollars

This consumer is looking for a lender who will lend him $45,000 to help him deal with an emergency and also consolidate his credit card debt. Many home owners experience emergencies from time to time associated with their homes. In his case, he needs a new roof and also must repair some collateral damage to the roof structure. This will be expensive and he does not have the emergency funds set aside for this type of an expense.

He also has approximately $20,000 in credit card debt spread over several credit cards. He is only paying the minimum monthly payment which means he is paying a high interest rate on the unpaid balance. The interest rate on credit cards varies between 18% to as high as 29%. Needless to say, this is an expense most people can do without.

He also has a bad credit rating which is making it difficult for him to find a lender to lend the money to him at a reasonable rate. If he can consolidate the credit card debt and the emergency repairs with a low interest rate loan, he will have a much more manageable monthly payment. The difficulty is finding a lender who will be willing to take the risk of lending money to someone with bad credit.

Fortunately for this consumer, he and his wife have relatively secure jobs with good income. Their monthly payments for utilities and car loans are only 33% of their income which is very reasonable. One of the reasons his credit rating is so bad is that he missed several payment to his utilities. He can fix this situation by setting up automatic payment instructions on his account. If he consolidates his credit card debt and closes several of the accounts, his credit rating will improve.

Bottom line for anyone reading this post is always pay your bills on time, never miss a payment, limit your credit cards to 2 or 3 at the most and always pay your balance on time and in full each month. If you cannot pay the balance on the statement date maybe you should not purchase the item in the first place.

Our consumer should be able to repair his credit rating relatively easily, although it will take a few years before his rating is adjusted. In the mean time he has the right approach regarding consolidating his credit card debt and also the repairs to his roof. He will have one low monthly payment provided he can arrange for low interest rate loan with a reasonable term. Most important for this consumer is that he must focus on paying the monthly payments each and every month until the loan is fully paid. In addition he must limit his credit card purchases to avoid getting into a similar situation in a few months or years.


Bad Credit Loans for Debt Consolidation 2016

This applicant actually does not realize that he is just on the edge of having a bad credit rating. While he has not missed any payments as of yet and has not been late on his rent, utilities or his credit card payments, he may soon be in that situation. As soon as he misses a payment, even if he is late for one, his credit rating will tank even further. With five credit cards all at their maximum levels most lenders will consider him to be high risk.

He has been using one credit card to pay off another credit card. In this scenario, he applies for a new credit card. They give him an interest free period if he transfers an unpaid balance from another credit card to the new one. This might be for a 3 month or a 6 month period. Yes he avoids paying interest for a period of time, however these amounts eventually must be repaid. This approach has  caught up with him and now he has 5 credit cards with all of them at their maximum levels. When he was doing these transfers, he was avoiding interest, but not repaying any of the debt that he owes.

He is about to face frequent calls from collection agencies, he may become late paying his rent and utilities which jeopardize his ability to stay where he is and he will have an even more difficult time to find a lender willing to make a bad credit loan to him so he can consolidate his debt. Once collection agencies are involved, finding someone to lend money is very difficult even if consolidating debt is the right thing to do.

His current payments with interest and monthly principle will be high due to the high interest rates of 19% or more. It will take him a really long time to repay what he owes, since the credit card companies really do not want to be repaid. They just want you to keep paying the interest so they can continue to make money.

With a debt consolidation loan at an interest rate somewhere between 5% and 10%, this client could save a great deal and pay his debt off much more quickly. He has to arrange this debt consolidation loan before his bad credit rating becomes even worse.

He also has to clean up his bad habits.  First of all focus on repaying his debt to lower the amount of interest he is paying. Secondly avoid new debt until he has this under control. Third, never miss a payment of any kind. Always plan ahead and meet the commitments to avoid negatively impacting your credit rating. Once he has repaid his existing debt, he can focus on improving his credit rating and arrange better loans in the future should he need them.

The offer to work overtime to make some additional money should be strongly considered. It would be an opportunity to create added income that could be used to repay some of the debt that he has.


What Do I do When My Debt Gets Out Of Control

Consumers get into the same predicament that this couple is in all of the time. They get into debt and need help in figuring out what to do with their debt, how to repay it and how to reduce the interest rates on their debt.. They often ask, what do I do when my debt gets out of control?

In this case they have a mortgage, two car loans and 5 credit cards that alone total $75000 in debt. They are barely able to meet the monthly payments as well as paying high interest on the credit card debt. While the numbers vary, this situation is actually pretty common. This couple is fortunate that they have equity in their home.

We suggest that they refinance their mortgage at a low interest rate and use the money to repay all of their credit card debt. Once their credit card debt is fully paid, we suggest that they close two credit card accounts and reduce the limits on the remaining cards from $15,000 to $5,000 each. If they find themselves in the same situation in the future with the credit limits max’d out on their cards at least they will not owe so much. They will save themselves a great deal of interest which can be used to repay their mortgage.

The above lays out the broad plan for this couple. Details may vary depending on their credit rating, the actual appraised value of their home and their total monthly payments for all of their debt and regular maintenance and tax monthly payments. A lender will help them work out the details to determine exactly how much they can borrow and whether this solution will work for them.

Often individuals and couples do not have equity in a home to use as collateral while still finding themselves in an extreme debt situation. There are many solutions to these situations, some good and some not so good.

One solution is to take out a personal loan at a lower interest rate, pay off the credit card debt and then focus on repaying the loan. Whatever you do, avoid missing any payments to maintain and or improve your credit rating.

Some consumers will not be able to find lenders that will approve them for a loan of any kind due to their credit rating and past payment history. For these folks it can be very difficult. They must either get serious, work several jobs and focus on repaying their debt or take other more drastic action.

Bankruptcy is another solution and negotiated payments are another. Both require the services of an investment or financial adviser who can review their situation and suggest the best course of action. Note that each solution has some issues with respect to credit ratings, how much you need to repay and future borrowing ability. They are not always the best approach to take. If you can repay the loan, credit card debt etc, that is always the best approach to take.


Can I Get Approved For A 10000 Loan With A 438 Credit Score?

Credit rating agencies use various rating schemes to rate their customers. They range from 100 to 300 at the low end and 830 to 990 at the high end. Someone with a credit rating of 438 is on the low end of most credit rating agencies. The short answer to the question, “can I get approved for a 10000 loan with a 438 credit score?”, is probably but it will come at a cost. For most agencies anyone under 500 is considered to have a bad credit rating.

Lenders considering someone with a bad credit rating such as 438 will only lend to them if they can charge a higher interest rate, if they perhaps have something they can offer as security, or charge higher fees. It can be expensive to borrow money when your credit rating falls below 500 as in the case of this consumer.

He mentioned that he missed a few payments and that he has credit card debt. He also mentioned that he had been applying for a loan at several locations, which believe it or not actually contributes to a negative credit rating. The reasons for a poor or bad credit rating might be surprising to many people.

Payment history is a big one contributing to 35% of your credit rating. Miss a few payments that get reported and your credit rating is going to drop. Another is the total amount that is owed along with the length of time of your history.These together count for 45%. These three categories account for 80% of your credit rating. Our consumer is doing poorly in terms of missing payments and a relatively short credit history.

Another area that credit rating agencies look at is the number of applications for credit, e.g. loans, credit cards etc. If they are high, then this area which counts for 10% will also drop your rating. Lastly the type of credit that you have also counts for 10%. Credit cards are not considered good credit to have due to the high cost and also the ease with which the limits can be increased.

Our consumer applying for this $10000 loan missed payments, has only credit card debt and has applied to many lenders all of which brings down his credit rating. This makes it even more difficult to obtain a decent competitive loan.

His best approach is to actually find a lender, get a loan and pay it off on time if not early to help bump up his rating. It will show that he can be depended on to deal with his debt. Never miss a payment again. This is one of the single biggest areas when it comes to causing a credit rating to fall.

We also do not know which credit rating agency quoted this score to him. As we mentioned earlier some are a little less stringent than others. It will take some time to correct his rating, but it can be done.