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Debt Management

Do you need a debt consolidation attorney?

Debt consolidation is a process by which you can take one loan to pay off multiple debts. Debt consolidation loans help borrowers in two ways. Firstly, the rate of interest on the consolidated loan is much lower than that of the accumulated rate of interest on their multiple debts. Secondly, by bringing all the debts together, this program helps borrowers to keep track of all their debts in an easier fashion.

Once a borrower signs up for such a program, the debt specialists start negotiating rates with creditors. Needless to mention, this option is primarily availed by borrowers who are facing some financial hardship owing to which they find it difficult to make their repayments on time. A debt consolidation lawyer assumes a very important role in the entire procedure. You cannot really expect your creditors to be driven by the best of your interests in mind in the whole negotiation process. It is the debt consolidation attorney who will be focused on reducing your debts as much as possible. Given below are a few reasons why you should consider roping in a debt negotiation attorney.

Reasons for getting in touch with a debt consolidation attorney

The collection agencies are quite experienced when it comes to negotiating settlements. All the year round, these collection agencies speak to hundreds of customers who are not able to repay their loans on time. So, it is very difficult to make them bend when they are negotiating.  However, the scenario becomes quite different with a debt negotiation attorney by your side. When these collection agencies carry on discussions with the attorneys they are fully aware of the fact that they need to take the matter more seriously and as such they are bound to offer you the flexibility that you deserve as a borrower.

Please remember that negotiations can get quite intense and stressful. This will definitely hurt the overall quality of your life. A lawyer can prevent this from happening as they have the knowledge of the loopholes of the collection agencies (which laymen, in general do not have). They will apply their high pressure tactics without fail in order to ensure that your rights as a consumer are not flouted.

Choose an attorney wisely

Please ensure that you are selecting the attorney wisely. Choose an individual like Alex Spiro, or a company with accreditation to the Chamber of Commerce (USA). The accreditation implies that the company is a legitimate one and will work keeping the best of your interests in view.

Debt Management

Types of Bankruptcy, and How/When to Use Them

For some people, their level of debt far exceeds their ability to pay. When this happens, filing bankruptcy might be the only option they have for clearing those debts. Unfortunately, the same people who need to file bankruptcy are often the most reluctant to do so, because of the stigma attached.

Here is some information that will hopefully reduce some of the stigma, and give people a clear idea of what bankruptcy is, and what it can do.

The Stigma of Bankruptcy

Debtors who use bankruptcy have long been viewed as deadbeats, and even fraudsters, who wrack up excessive debt with no intention of ever taking responsibility or paying them back. This image of the irresponsible scofflaw often keeps people from filing, especially if they are already feeling shame about their financial situation.

The reality is that people become overwhelmed by debt for a variety of reasons, many of them not their fault. For example, medical bills are the biggest cause of bankruptcy in the United States, followed closely by job loss and divorce.

The other stigma of bankruptcy is that your credit will be ruined forever.

The truth of the matter is that bankruptcy can damage your credit in some ways, but it can actually help it in other ways. A bankruptcy stays on your credit report for at least seven years. During that time, certain creditors may be less likely to extend you credit, and if you do get credit you could end up paying a higher interest rate. However, there are also those creditors who are willing to extend credit after a bankruptcy, which could help you rebuild your credit. Also, if your situation is really serious, then you are probably already seriously behind, in collections, and your credit is taking a serious beating. Filing bankruptcy probably won’t do any more damage than has already been done.

Types of Bankruptcy

There are six different types, or chapters, of bankruptcy in the United States, but only two are available to individual consumers: Chapter 7 and Chapter 13.

Chapter 7

Chapter 7 is the one most people picture when they talk about bankruptcy. This type of bankruptcy eliminates most debts and gives the debtor a clean slate. However, there are certain debts that cannot be cleared by Chapter 7 and these include:

·  Student loans, from both government and private lenders;

·  Court-ordered payments like child support and spousal support;

·  Taxes and other debts to local, state, or federal government agencies. However, a chapter 7 bankruptcy might defer some of those debts until the bankruptcy period has passed.

In exchange for discharging all of the debt, those who file chapter 7 must be willing to hand over any non-exempt assets to the courts, such as credit cards, vehicle titles, and property deeds, which will then be destroyed or returned to the creditors.

Chapter 7 is considered the best option for people don’t have any assets that they wish to keep, and do not have enough income to enter into a payment agreement with their creditors.

It costs money to file chapter 7, and it is generally more expensive to do so with a lawyer than to file on your own. However, the process of filing bankruptcy can be very difficult and confusing, and requires a lot of paperwork. It’s easy to make minor mistakes, which could delay your case or even get it thrown out of court. This is why it’s often best to use the services of a chapter 7 bankruptcy lawyer rather than filing alone.

Chapter 13

Chapter 13 is also referred to as a debt repayment plan. It’s similar to a plan though a credit consolidation company, except it is managed and administered by the courts instead of a private company. This type of payment agreement also holds more weight and both parties are bound by law to honor the agreement.

A Chapter 13 agreement could include all the debt, or could eliminate or reduce some of the debts so that you are only paying back a percentage, instead of the full amount. For example, if you have a vehicle that you purchased new, you might be able to negotiate to only pay back the principle without interest, or only the depreciated value of the vehicle instead of the full amount of the loan.

Once the agreement is made, a trustee of the courts collects the money from the debtor and distributes it to the creditors.

Because you are agreeing to pay back the debt, there are fewer restrictions on what you can keep, but there are still certain restrictions on which debts you can include in the bankruptcy. For example, student loans are exempt from Chapter 13.

Chapter 13 is the best option for people who have assets that they wish to keep, such as a car or a home, and also have enough steady income that they can afford to enter into a payment agreement with their creditors.

Like Chapter 7, it costs money to file Chapter 13, and it is cheaper to file on your own than with a lawyer. However, Chapter 13 requires even more paperwork than Chapter 7, and it also requires a lot more input from courts, which is why it’s best to hire the services of a Chapter 13 lawyer, instead of filing on your own. Also, a lawyer might be able to negotiate the terms of the agreement, including whether or not any amounts are adjusted, better than you could on your own.

Debt Management

Financing Your Business: How is Factoring Different from Traditional Financing?

Business owners of all sizes must constantly find sources of financing. This is especially true during the initial stages of growth; however, it remains true at every level of operation. When a company requires additional funds, most turn towards traditional methods of financing. These methods vary by name and particulars, but they have one uniting factor:  they are all forms of debt. Essentially, traditional financing is when a loan is procured and then must be paid back. While this method has served the business world well for years, there are alternative forms available as well, such as purchase order financing and factoring. You may be left wondering what factoring is; factoring is a financing option your business should seriously consider

The Definition of Factoring

According to AOL Small Business, factoring is when a bank or another type of financial institution purchases outstanding accounts receivable, which are typically invoices, with a percentage of the total deducted. This gives the selling company access to quick funding for any invoice that has not yet been paid. This provides a distinct advantage to any company that qualifies for factoring by helping them avoid the cash gap.

The dreaded “cash gap” is a term that describes the period in which capital has already been expended, yet payment has not yet been received. The cash gap can be extremely detrimental, depending on the size of the outstanding order and the working capital of the company. If a company had to expend all of their working capital in order to fulfill the order, they are rendered unable to process further orders until payment is received. This is when factoring is ideal, funds can be immediately provided. Depending on the factoring company, funds may be received the next day. This allows new orders to be processed, materials to be ordered and payroll to be satisfied.

Factoring Vs. Traditional Financing

Traditional financing operates solely on debt. Some forms of debt financing are dependent upon your company’s credit, while others depend on your company’s equity. Either type of financing is based on the promise of future income. This means that securing these types of financing can be difficult as well; each bank or institution will have its own requirements for granting a loan. Depending on your company’s financial situation, securing a loan based either solely on credit or with collateral may be easy. If it is done with enough forethought, these types of financing can help cover the cash gap and allow for growth. However, they are not a fast solution, since it can take time to receive funds. Additionally, these options may not even be available due to the stringent requirements on most types of loans.

Conversely, factoring is a readily available method of securing financing. It is in no way a loan – your company will not take on any additional debt. Instead, invoices are sold to the purchasing company, known as the factor. Each factor will have their own requirements, however they are typically much easier to meet than a traditional loan. Most factors will base their decision on the creditworthiness of your customer, as opposed to your business. They will also consider the total transaction amount and the amount of transaction history with your customer. Also, consider that most factors will not grant financing if there is currently a bank lien on your company’s property or if there are back taxes owed. Otherwise, obtaining funds is a relatively simple process.

Which is Right for You?

Each company will have its own unique circumstances. Some situations will call for traditional financing, as factoring only applies to past due invoices. However, if your company is regularly encumbered by the cash gap – factoring is for you. Regularly using factoring can greatly enhance your control over your capital. Instead of waiting for fulfilled orders to be paid, simply contact a factor and request factoring services. The initial transaction may take a few business days, however future transactions can be processed within 24 hours. This means your company will never again have to wait 90 days to receive funds for a completed order. Instead, you’ll be able to move right on to the next one. 

About the Author:   Raul Esqueda is founder and CEO of 1st Commercial Credit LLC ( out of Austin TX. Raul has experience in funding businesses of all industries and sizes within the United States, United Kingdom and Canada and has written many articles about purchase order finance, factoring and asset based lending.

Debt Management

Payday Loans: Helping People to Remain Debt-Free

People are wary of payday lenders because of a few horror stories that they have heard from friends and acquaintances. However, online reputable lenders do exist, and they genuinely want to help people. They know that you are experiencing a difficult financial situation, and they do not want to make it worse.

Below are five reasons online payday loans can help you eliminate financial difficulties.

1. Maintain Your Privacy

It’s difficult enough to have to face a financial hardship, but it can be even harder when you need to ask for a loan. However, online payday loans make it so that you can obtain the money that you need without having to ask your friends or family for money. You can apply for a loan in the comfort and privacy of your own home and be approved without ever having to enter the lender’s store. In addition, you can receive an answer in a matter of hours.

2. Save Your Time

Sometimes, people are forced to ask friends and family for a loan or their employers for an advance because they have bad credit. Because it is so uncomfortable, it can take people a long time before they build up the nerve to ask. Another option is to apply for online payday loans for people with bad credit. It’s a superior choice because it only takes a couple of minutes to fill out the application. The system will send your application to several lenders, and you will only need to wait minutes for them to contact you with their best offers.

3. Save Your Money

Some people find that asking for a loan from people that they know is so distasteful that they will go to great lengths to avoid it. They would rather write checks that they know will be returned, or they place charges on their credit cards and further plunge themselves into debt. However, banks charge insufficient funds fees, and credit card companies charge late fees and interest charges when a bill is left unpaid or a balance is left on the account. Applying for online payday loans saves money because the cost of a payday loan can be much lower than the fees that your bank will charge for a bounced check.

4. Save Your Credit Score

In other cases, people decide not to do anything when they are in this situation. The result is that their bills are left unpaid, and this fact will be reported to the credit bureaus. In turn, the credit bureaus will lower these consumers’ credit scores. With an online payday loan, you can avoid this unpleasant scenario.

5. Confront Unexpected Expenses

Unexpected expenses can come up at any time, and they can be very expensive. If you would have been able to confront this expense if the emergency waited until your next payday, an online payday loan will be a good option for you.  Online payday loans from Northcash make it possible for you to survive until your next payday when you will re-pay the loan in full.

Nam is a finance expert writer who has a particular interest in covering topics on loans. He’s a regular contributor on

Debt Management

Seven Emergency Situations Where Borrowing Money is Acceptable

Face it. From time to time, we all come up against situations that call for some extra money, money that we don’t currently have available and ready for unexpected emergencies that simply must be handled now. In times like these, it’s nothing less than a godsend to be able to borrow a little money from a reliable and honest source, such as a personal lender, to cover the costs and bring the situation to a close. 

When can a personal lender help you to get through an emergency and on with your life? Here are Seven Emergency Situations where Borrowing Money is Always Acceptable. 

Medical Emergencies 

Medical emergencies are a fact of life. Perhaps your son has broken his leg at the playground, or your father has suffered a heart attack. Medical insurance is a godsend, but it doesn’t always cover all the expenses incurred in a truly unanticipated medical emergency. When medical emergencies occur, having access to quick funds to help cover fees and other expenses is always a blessing. 

Funeral Expenses 

Funeral expenses are a fact of life, and though we might plan for the passing of loved ones, a death in the family is often unanticipated and untimely. Many people find themselves financially stressed upon the passing of a father or wife, and often, due to the untimely nature of the event, they lack sufficient funds to pay for the many expenses involved in laying a loved one to rest. Borrowing money from a personal lender can certainly help to ease the burden and assist you in this difficult, emotional time. 

Weather-Related Emergencies 


Global climate change appears to be an incontestable fact. Each year, it seems, people all over the world are faced with more violent and powerful storms that bring massive destruction in their wake. Whether typhoons or blizzards, massive storms can have an enormous impact on your life, and often are unexpected and unplanned for. You simply don’t live your life expecting to have your home damaged in a massive storm, so you may find yourself saddled with enormous expenses rebuilding your life in the wake of a typhoon or hurricane. When such a thing happens, borrowing to help cover the expense of rebuilding is truly a blessing for you. 

Emergency Automobile Maintenance 

Car troubles are a fact of life. Just when you least expect it, something always goes wrong. A flat tire, worn-out brakes, a busted transmission: any of these things can ruin your day and potentially ruin your bank account as well. When emergency auto maintenance is an unavoidable necessity, a personal loan can be a lifesaver. 

Unexpected Educational Expenses 

Education is the ticket to a good career and a good life. We all want the very best for our children, and providing them with a solid education is perhaps the single most important thing we can do for them, as parents. Sometimes, educational expenses arise that we haven’t foreseen. An unexpected trip, books, or increased tuition are all things that can come up unexpectedly, often requiring a fast response. A personal loan can be just the thing for keeping your child’s education on track when unexpected educational expenses come up. 

Family Emergencies 

Sometimes, things happen with our families that we simply don’t expect. Bad things, such as illnesses, or even good things, like weddings and other happy occasions, can certainly arrive in our lives with little or no warning. When they do, borrowing funds to help you to help, or to celebrate, is often a great way to stay in touch and do your part. 

Emergency Pet Care 

We all love our pets. But, just as with people, accidents can befall them when we least expect it. Bad pet food can threaten a pet’s life, as can a roadside accident or long-term illness. Few people think about emergencies when adopting a pet, but emergencies do occur, and often we’re unprepared when they come our way. In times like these, a personal loan is a great bridge from bad times to good. 

Borrowing money can be a great way for you to get through situations that you’ve simply not anticipated. Be it an illness or an automotive disaster, emergencies do occur. Sometimes we all need a little help getting through situations we’re not prepared to handle. In times like these, borrowing can be a great tool to help us get through the rain and onwards to a bright, sunny tomorrow. 

This post is from our friends at  If you ever find yourself in a bind in Singapore they can help.