One of the biggest hurdles most would-be business owners face is coming up with the capital necessary to open the doors on a new establishment. Getting going in business can be an extremely costly venture, even when the business in question is a franchise, the price of which includes the cost of getting the business up and running.

Some capital, of course, is always a must, even if the amounts vary greatly with franchises; capital that the business owner must come up with in some way. And when it comes to getting a business loan, our credit report means everything right now. That’s why it makes sense that before the purchase of a franchise is considered a potential entrepreneur take the time to order free credit reports so that they can know what they are dealing with in terms of getting a loan.

This is not something to be taken lightly considering that the capital generated will help cover:

Bricks and mortar – If an office or establishment space is needed, more money can be spent on getting the setup going than paying the franchise fee. This is excellent for those who have limited capital and need to put it where it matters. Some franchises, however, will only require a small, home office to flourish.

Staffing – If a franchise requires staffing to operate, more money will be left to handle proper recruiting, screening and training. It is also possible that more money will be left aside to help fund payroll during the initial startup as a business gets off the ground.

Advertising – While the beauty of considering franchises lies in the fact that the names and products are often already well known, some advertising on the local end will always be required for a startup. When franchise fees are not present at the start or they are very reasonable, money can be funneled in this direction instead.

Franchises don’t have to require a huge capital outlay to be successful. Even people on a shoe string budget can find opportunities that appeal. But take the time to get to know your credit report so that you can be in control of your entrepreneurial experience.

Popularity: 20% [?]

Share This

Debt consolidation services provide a way out of a financial hole that many people choose to pursue. This option can help keep a credit report cleaner and it can prevent the need to file for bankruptcy. Using consolidation to its fullest advantage, however, is not something many people do.

To really make debt consolidation pay off, it is wise to:

Make sure all or as many debts are included as possible – It doesn’t make sense to dive into debt consolidation programs and leave other bills on the table. Unless it is 100 percent necessary to do otherwise, all consumer debts should go into a consolidation loan. This simply makes it a more efficient prospect for freeing up monthly budgets.

Make sure remaining debts are cleaned up fast – If a few small credit card bills are left on the table, pay them off quickly to enjoy the full effects of debt consolidation. If possible, once these bills are paid off, put the money involved toward consolidation loan payoff.

Put a plan in place to avoid repeat credit issues – It is all too easy for a person who frees up cash with a consolidation loan to fall right back into the hole. Money that is freed up should be carefully budgeted to plan for monthly bills and savings.
Be 100 percent certain the loan makes sense – There are cases when debt consolidation does not make sense. Carefully review the proposed loan and other available options.

Debt consolidation services can provide an excellent way to get out of the hole. Using these programs correctly can help a person get out of debt while building a more stable financial future. It is wise, however, to tread lightly and really review all options closely before selecting a route to get out of debt and repairing a credit report.

Popularity: 20% [?]

Share This

The date of April 15th is often one that looms over the heads of most people around the country. For those last minute tax filers, April 14th is a late night indeed and one that is full of pressure as we hurry to do what we have essentially had months to do. Maybe it will turn out better than we think it will and we will be spared having to come up with taxes owed to the Federal or State government; maybe we will even be owed a refund. But whatever the outcome, the fact of the matter is that taxes are simply something we have to do each year.

But while we are already focused on our finances why not use this tax time as a time to remind ourselves to order our free credit reports from each of the three credit bureaus? While our credit report is something around which much of our financial life revolves, too few people pay close enough attention to it throughout the year. Instead they are caught off guard by the information it provides when they go to apply for a loan or rent an apartment and then must begin the process of familiarizing themselves with the information provided by Experian, Equifax, and TransUnion so that they can take steps to rectify their credit report.

So now, while the country prepares to file their taxes we should also look to be proactive about our credit report. Starting now we should all order a free credit report from each of the credit bureaus; something that we are allowed to do once within every twelve months. By going online we can order all three credit reports in one place or order one at a time throughout the year. More than anything, we can mark this time as the time at which we have begun to take stock of our financial health.

Popularity: 21% [?]

Share This

In the heat of what seems like battle, managing the burden of immense debt can slowly limit individuals in what they perceive to be available solutions. As time passes, debt increases, and the damage to our credit report furthers, avenues for relief feel like they disappear, leaving many people to feel their only options are to simply quit paying their bills or file bankruptcy to wipe the slate clean. However, no matter what state of debt one is in, bankruptcy alternatives always exist to help pave the way towards debt relief.

Many people do not know what bankruptcy alternatives are or that they exist. However, these means to relief offer much needed service and are in great demand. With credit card debt growing, many need relief just to survive. Bankruptcy alternatives include many different services for individuals to research thoroughly before filing bankruptcy.

Many steps can be taken by individuals before ever calling providers of debt relief or bankruptcy alternatives. For instance, individuals can contact their credit card companies directly to negotiate for more favorable repayment terms, or even investigate consolidation loans. These may be secured (like a home equity loan) or unsecured, but will combine several debts into a simpler single payment that often comes with a lower interest rate than the multiple debts. Individuals can also liquidate possessions like expensive cars or even sell clothing and unused household items at a yard sale to obtain cash that can help pay off or pay down credit balances to more manageable levels.

Should the self-help steps not achieve a satisfactory point of credit card debt relief, individuals can seek the help of credit counselors or credit card debt relief specialists. These groups have many different additional opportunities to bring debt relief quickly, and above all to serve as bankruptcy alternatives.

Bankruptcy is a very serious undertaking. The ramifications include long term effects on a credit report, making future credit very difficult to obtain. Bankruptcy alternatives should be sought and whole heartedly considered before filing for bankruptcy. Taking the time to research available options can only help to provide additional information that may offer a more favorable route to follow than bankruptcy.

Popularity: 20% [?]

Share This

Finances, as we discussed in the last post, are something that are a part of our everyday life, but something that far too few of us spend the time discussing with our children. As a result, many kids grow up with absolutely no understanding of how finances are approached in their home and subsequently experience confusion about how to handle their own money. Or, even worse, many kids enter adulthood with very negative connotations about money as a result of the stress that they picked up in their own childhood home between their parents.

Everyone has times in which money is tough and where they may not necessarily see eye to eye with their partner. This is to be expected. But it is the way in which the attitude about money is conveyed to children that will very often define their feelings about it for a lifetime. Conversations about money should be honest, age-appropriate, and ongoing; infused into everyday life depending on current circumstances. Even preschoolers can understand saving for something they want and earning money for jobs that they do; a first job in high school should be accompanied with a discussion about banking, savings, and lessons on balancing a checkbook; and young adults should know how money is handled in the family household – not necessarily details about their parents’ finances but simply how they go about budgeting and paying bills. Your behavior and attitude – with them and with each other – regarding money will be what they pattern their own behavior and attitude after; so tread carefully.

Another important lesson for older kids is about that of the credit report and how poor financial decisions can impact your credit score and thereby limit your financial options. If you have made mistakes in the past that have negatively impacted your credit, be honest about them and use them as a teaching tool so that your kids will know that you’re not perfect, as well as teach them what to avoid in terms of their own financial decisions. Teach them about staying on top of their own score by ordering free credit reports from the three credit bureaus throughout their lifetime and by monitoring their credit score.

Lessons about money are lessons for a lifetime and can mean the difference between a child who faces financial difficulties and one that navigates their finances – even in tough times – with confidence and grace.

Popularity: 20% [?]

Share This

Children learn about finances – as they learn about everything else – from their parents. And, like with anything else, if no specific conversation is had about the specific topic, children will simply learn by observation; they may not ever have a discussion about money with you, but rest assured they are watching what you are doing with your money. They will adopt your attitudes and practices about spending, and saving and will even mirror the way that you communicate as a couple about money in their own relationships one day. If money is a bad word in your home, if you are always fighting about finances, and anything financially related results in incredible tension, this will surely be a pattern that is continued by your children when they become adults and are in charge of their own finances.

It is safe to say, therefore, that communication about money is so incredibly important when it comes to putting children on the appropriate financial path. And perhaps by setting a good example, and talking about money openly and without the stigma normally attached to such conversation, parents will be able to break the cycle of financial stress for their children and give them every opportunity to have a healthy attitude about their own money throughout their lifetime.

To this end, start talking about money early. While younger children may not understand the value of a dollar per se, they can understand the basics of saving for something they want; talk openly about how much particular items cost, set goals for savings, and let them pay for the items they have saved for when it comes time. Older children will benefit from conversations about how finances are approached in your own home (i.e. who pays the bills and how you go about budgeting household expenses) and the definition of a credit report and how your credit score can impact your life. More in the next post…

Popularity: 21% [?]

Share This

I am a counselor in a shelter to which people come when they have been driven from their homes for financial reasons. I see much sadness and despair day to day in my job but I also see great resilience and hope. It is a long life and for many people this time in their life is just a drop in the bucket; once they are able to gain that perspective they are able to see the bigger picture and know that their financial situation does not define them and there are many more experiences to be had in the future.

I help our guests in many ways – including helping them with job readiness including pursuing an education and finding their way into the workforce or changing careers; and I help them get their finances organized so that we can know what we’re dealing with - it’s often the not knowing that causes all the stress. It’s far easier to deal with reality than it is to imagine all manner of circumstances.

And so, as a part of my work with our residents we will go over their finances with a fine tooth comb and put together a realistic budget. I will even help them get legal help if they should need it to declare bankruptcy or of they have other legal issues to sort out. Further, I will work with them to order a free credit report so that we can have a clear picture of what the credit bureaus have accumulated and how that has translated in terms of credit score.

With this credit report information in hand we are able to make a plan in terms of repairing credit and part of that plan is a commitment to ordering free credit reports from each of the credit bureaus once a year so that they can monitor their progress.

My work doesn’t solve all problems but it’s one step in the process of getting my residents back on their feet and in charge of their finances.

Popularity: 24% [?]

Share This

So many of us have experienced the same thing these days; we open up our credit card statement to discover that our credit limit has been reduced – greatly reduced - and there seems to be no reason why. When we call the credit card company we are told that this is something that the company is doing across the board in response to the economy; creditors are simply gun shy to have all that money out there available to consumers who may not pay it back. Such is the repercussions of loose lending for so many years; and even those who have been responsible in paying their credit card payments every month are being penalized. But it doesn’t mean you have to take it.

If you have had a longstanding relationship with the credit card company in question, do make a phone call before jumping to a decision. Because these limits are often reduced in a sweeping gesture by the company they may not examine each account on a case to case basis. If you feel that your limit has been reduced unfairly try to work out an arrangement with the company. If you have been a long term customer with a good track record they may be able to reinstate your credit limit.

If they will not budge then perhaps it is time to transfer your balance to another card. In this case it is absolutely essentially to compare credit cards so that you know upfront what you are dealing with and what your experience is likely to be in the short term, as well as the long term. Compare credit cards for fees, interest rates, credit limit, and customer service, and if you are able to transfer your balances and take advantage of the many low interest – or even zero percent interest rate – deals available, then your old credit card may have done you a favor.

Popularity: 24% [?]

Share This

I was recently divorced – something that impacted me in more ways that just emotionally. Of course it was devastating and terrifying to be on my own, and to watch my marriage end. But when the smoke cleared and I began to pick up the pieces of my life, I found that there were more administrative obligations to deal with than I could have thought possible. There is the emotional separation of divorce and then there is the physical separation of divorce – the actual separating of your lives in terms of accounts and all the many ways in which the world knows you as a couple.

Part of what I did when I began dealing with finances and setting up my accounts and all the rest of it was to order free credit reports from each of the credit bureaus. After all, we had been doing everything as a couple for so long and – although I’m embarrassed now to admit it – I let my husband do all of the bills. I had absolutely no idea what the state of my credit report was or even my credit score.

Ordering free credit reports was as easy as going online and submitting a request for a copy of my credit report from each of the three credit bureaus. From there, I was able to see firsthand the status of my credit report. It wasn’t terrible but it certainly wasn’t great either; and now that I was aware of the reality I could begin to take steps to improve my credit score on my own behalf. I wanted to be able to take financial control and make decisions on my own and the first thing I needed to do was to take responsibility for my credit report and continue forward accordingly. It’s a whole new world for me!

Popularity: 22% [?]

Share This

When do most of us give any thought whatsoever to our credit report? It’s safe to say that most of us give it very little thought at all until we are in a financial pickle; until we find ourselves being turned down for a particular loan or paying a higher interest rate because of our credit score. And it’s also safe to say that most of those people – in those circumstances – are downright surprised that they have less than stellar credit. They may think they were doing great in terms of paying bills on time; and no news is good news and all of that kind of thing. But here they are and – lo and behold – they are not doing as well as they thought.

Our credit report – or, more specifically, what that credit report is telling lenders who pull it for qualification purposes – should not be a surprise to us. In fact, in an ideal world we should go into any kind of application process knowing exactly what our credit score is and exactly what our credit report will look like to a potential lender. Having any less information is a crime on our part.

So how do we make sure we are always up to date on what our credit report is conveying to lenders? By ordering free credit reports in good times – not just when we are forced to think about our credit report because we got turned down for a particular loan.

Free credit reports, in fact, should be ordered throughout the year from the three credit bureaus – Experian, Equifax, and TransUnion – as we are all given the right to receive one free credit report from each of them. By taking advantage of this consumer right we are exercising our own financial power and making sure that we are never caught by surprise again.

Popularity: 22% [?]

Share This