Lenders tighten up on housing loans

When the nation’s largest lenders rejected more mortgage applications than ever before, their actions threw light on how cautious banks have become and how this is obstructing the growing housing market recovery. According to The Wall Street Journal, 26.8% of loan applications were refused by the 10 largest mortgage lenders of the country in 2019.

Those who had applied for online payday loans in Florida but didn’t get them are having a hard time as their incomes continue to fall or they have periods of unemployment. Self-employed applicants are also finding it difficult to get loans, which they have never faced before.

Banks deny loans to borrowers because of insufficient collateral, insufficient debt-to-income ratios and poor credit scores. Now people in the US are experiencing income tax returns as another basis for loan denial.

Lending standards are unusually tight because government units like the Federal Housing Administration and others that account for over 9 out of 10 loans being made are under heavy pressure to avoid any losses. These firms buy or guarantee mortgages and so can influence the loans that banks are likely to approve.

Take the case of Amy Menell from the WSJ report who is a real estate agent with a small income in 2019. A divorcee with a cash settlement of $400,000, she was considering buying a house at a time when housing market rates were low. She applied for a bank loan but was told that she wouldn’t get the loan, although her credit score was above 800 and she was debt-free. She could get it if she put down over 50% on the house she wanted to buy. The fact that she did not have any proof of income for the past two years weakened her case.

Rejection rates are much higher now than in the past, although the highest ever was in 2017 when they were recorded at 32.5%. That was partly due to loan officers and brokers trying to see how far banks were willing to go. Extloansusa loan applications filed by consumers wanting to refinance their existing mortgages and those who wanted to buy new homes were both part of the mortgage data of The Wall Street Journal. 19.9% of new home buyers were denied loans, while 27.2% of refinance applications were rejected. Except for Delaware, there were increased loan application denials in every state and in ninety-one top metropolitan areas such as Detroit, Miami and New Orleans.

Although the economy is improving, standards on home loans continue to be tight, chiefly due to the aggressive efforts of units like Fannie and Freddie that force banks to repurchase loans even if they default on payments.…

Do You Have to Hide Your Debt?

Being in debt can cause so many negative issues in a person’s life. Apart from increasing stress, it can even lead to depression if no immediate solutions are found. Most often, the level of emotional trauma depends on how a person can handle stress.

In the USA, new research has found that at least one in three consumers is hiding financial woes from their loved ones. Currently, the country’s so-called hidden doubt is already at 55 billion dollars.

The latest report also revealed that an average personal debt is pegged at 9,731 $ and this does not even include the mortgages. However as people face this debt, they admit to their spouse and other family members that they owe only half of the amount.

There were other important details revealed. According to the research that covered some 2,258 consumers in the USA, one in five consumers does not tell their partners about their financial problems. On the other hand, 78 percent of those who have debt never admit to their partners how much they owe. While 22 percent were able to be honest about their debt, majority were actually caught out. Some tried hard to deny their problems but those who did this actually admitted their act only added to their financial woes.

Now as to those facing debt, it’s the women who were found to be lying more about where they spend their money. Mostly, they’re not honest about their spending on clothes while the men lie about spending on alcohol.

Obviously, suffering from debt and lying about it is a stressful experience for anybody. Among those surveyed, many complained about suffering from different forms of anxiety. These include lack of sleep, mood swings, drinking more alcohol and poorer performance at work.

Psychologists point out that although people’s decision to hide their debts from their loved ones is their way of showing their independence and self control, this isn’t the right way to solve their problems. They just don’t want their family members to worry so much and they’re showing that they can take care of everything. But not admitting one’s real issues in life can affect the person’s physical and mental health. Additionally, the problem will also have a negative effect on your loved one’s health especially once they get to know of the real problem.

So the best way to deal with your debt is to be honest to yourself and to your family. If you don’t want to be affected, then find immediate solutions. It’s never right to escape from your debts. Settle it as early as you can to avoid accumulating more debt moving forward.

A good option is to obtain short term unsecured loans such as the payday and cash advance types. This is the more affordable alternative and it’s fast and easy to obtain as well. Since most lenders now do business on the internet, it’s very convenient for borrowers. Those with bad credit need not fear about presenting a collateral or worry about a credit check because these are not usually required.…

More Adults in the USA Face Debt Due COVID-19

One of the challenges that adults must face in life is how to properly handle their money. This is especially true if they start working on their own and as they start a family or even a business.

More Adults in the USA Face Debt Due COVID-19Budget management is, however, a task that not all people or specifically not all adults are skilled at. And so while some are able to manage their money well, some unfortunately have difficulty in this aspect. This can be traced to how a person was raised by his or her parents. Those who were taught the value of saving when they were small and were exposed to how their parents handled the family finances grow up to have a better idea of money management. On the other hand, those who were spoiled as kids such that they often got the things they wanted may have a hard time handling their funds when they grow up to become adults.

In the USA, latest reports say that the number of adults experiencing extreme debt has risen. In fact, the figure has doubled in two years. A main factor was the global recession last year that resulted in pay cuts and lesser working hours for many people. Considered to be extreme debt is if the ratio of a person’s debt to his income is more than 66:1. According to the Consumer Credit Counseling Service, there were more than 8,000 men and women who were facing this debt ratio in 2020 due COVID-19.

In addition to this, people who filed for insolvency last year also reached its high point. These included those who declared bankruptcies, had debt relief orders (DROs) and those who were into debt plans known as individual voluntary arrangements (IVAs).

Fortunately, there’s help available for people who are experiencing extreme debt. The Ministry of Justice earlier announced a government program that will assist people in debt to pay only a very minimal amount of one $ for a period of six months. After this period, they can then start repaying their debts in full to help them improve their financial situation.

This program should not, however, be seen by those in debt as just a temporary means to settle their financial troubles. They should learn from what they’ve been through and as much as possible, should commit to not go into debt again in the future for the sake of their children and their family as a whole. Sometimes there are people who continue with their old habits after they’ve surpassed one trial in their lives. The others are just too stubborn that they keep repeating the same mistakes over and over again.

Take for instance the use of credit cards. The credit card has been confirmed as a major cause of debt for many people but some adults just ignore this until they accumulate a high balance and can no longer afford to pay.

A good alternative to this issue is obtaining an affordable short term loan instead such as the payday and cash advance. This does not entail a variety of charges and can be paid back according to the schedule most suited to the borrower’s financial situation. What counts as always is to be conscious of one’s financial obligations and pay what you owe on time.…

Is Declaring Bankruptcy a Way Out of Debt?

BankruptcyNumerous people, probably in the millions, are facing different kinds of debts at the moment. This may be caused by various factors but mostly due to the use of credit such as in the form of credit card and loans. So many people have somehow gone overboard in their use of the plastic and in taking out loans that led them to suffer from debt.

Financial troubles can indeed cause headaches, stress and anxiety to people generally affecting not only their mental health but even their physical health. Sometimes the negative effects on a person’s overall health can lead them to decide to just declare bankruptcy as a way to get out of their problem. But is this action really the fastest solution available to people facing huge debt?

Debt advisers in the USA don’t think so. To them, declaring bankruptcy should be considered as the last option. This is because making the move would mean letting go of all your personal possessions, income and properties including your beloved home. In addition to that, it will also have a big impact on your credit history.

In the USA, bankruptcy rules state that is a person has gone bankrupt and eventually earns money, it could still be taken away from him or her in order to pay past debts. Winning a huge sum of money such as from a lottery does not mean the debtor can keep even a certain amount from the winnings. This applies to people facing huge debts but not to those who owe only a small amount.

In terms of your credit rating, declaring bankruptcy can mean you being blacklisted for up to 15 years. What happens then is that you can no longer apply for new credit within that period. Again, this applies to those who owe a huge sum of money from banks and lenders. Those facing debts that are small and continue to earn a regular monthly income, there is a possibility that the court will agree to set up an administration order requiring debtors to pay their creditors on a monthly basis.

So just in case you want to declare bankruptcy, what then are your options after that? Do you have limitations when it comes to employment and obtaining new credit?

For those bankrupt people, a major requirement is to declare their financial status whenever they apply for new credit notably when the amount involved is more than $300. You have to do this even if you are applying together with a friend or another person for that matter. If you’re planning to put up a new business using another name, this should also be done. In other words, you have to inform those you partner with about your previous issue.

So the big lesson to learn here is to always repay your debts on time. Never wait for the due date or delay payment if you have the necessary funds. Loans including the short term unsecured ones such as the cash advance and payday no matter how small the amount involved should also be paid on a timely manner.…

How to Start a Business Online

Numerous enterprising people have started their own business in the recent years. Even with little capital, they were confident of applying their ideas and skills in order to gain profit. Their business could be just an addition to their regular work as a way to earn extra income or it could be their main source of income. But whatever it is, they have set their minds to starting a business that they think would meet the needs of people.

Most businesses today are done on the internet. Many owners have recognized the need to establish an online presence for the convenience of their potential customers and to reach a wider target market. Additionally, setting up an online business is more cost effective compared to setting up a new office in a separate area and hiring staff.

Those who want to start their own business should also follow the same path. With an online business, you can manage every aspect from the comfort of your home. From answering phone inquiries, responding to emails, providing quotes, scheduling deliveries and issuing invoices, all these can be easily done via the internet. There may be challenges along the way but at least because you’re starting small, everything will hopefully become manageable.

One important part of this, however, is the initial filing of business documents required in your specific location. Get to know about what’s needed and accomplish them as early as possible if you want to start your business right away. This should not be forgotten to legitimize your business operation and eventually gain the trust of your potential clients. Web users are very particular about the products and services they avail of online and as much as possible, they want to stay away from fraudulent companies and you wouldn’t want to fall in this category.

From there, you have to think about your starting capital as well. Managing your funds from the start until your business has taken off is very important. If you’re doing it online, though, you may not need a huge capital to launch your business.

If you don’t have enough personal funds available, you may want to consider several financing options when starting up. Since you’re just starting small, you may not need to approach a bank but you can opt for personal borrowing. You can even approach short term lenders to avail of unsecured personal loans such as the cash advance and payday types. These normally entail a one-time fee hence is considered to be more affordable and one which you can pay at your own terms.

One option that you must avoid is to use your credit card’s cash advance feature. This is a costly alternative and if you want to avoid getting into huge debt later on, then this is not the one to choose.

Finally, never forget to do a proper accounting of your cash flow. This will let you determine where your money goes and how much is coming in in terms of gains. You’re in business to gain profits, right? So make sure that you manage your cash flow properly on a consistent basis.…

Is Saving Money Still Possible Today?

With prices of so many things on the rise these days, it seems impossible for people to save their extra funds. Those with families to support and especially those with children to send to school are having a hard time making both ends meet. What they earn is just enough to pay for their basic needs with no extra left for savings.

But if there’s a will, there’s always a way and so saving money can still be achieved even when there’s a global financial crisis. It’s never too late to start setting aside a little extra for your future needs. Experts say the earlier you start, the better are your chances of gaining more savings moving forward. In other words if you’re in your 20’s now, the more money you will be able to save compared to when you start saving when you’re already 30.

A recent survey by America Saves and the American Savings Education Council actually found that more than half or 51 percent of adults 18 to 34 years old are now saving for different purposes. And this is amidst the low interest rate of just 0.9 percent on savings and money market deposit accounts as revealed by Bankrate.com.

One way of starting out is to make your saving endeavor an automatic process. And how do you do this? By allowing your bank to make the automatic transfer of your salary each month from your current account to your savings account. You can actually request for this automatic transfer from your employer. In this way, you don’t have to think about doing it yourself because the bank does it for you. A great benefit you gain from this is enjoying more savings because you don’t physically get hold of the money which means you won’t be tempted to use it.

In fact, you can get a little incentive if you opt for this because there are some banks that provide some rewards for clients who prefer this automatic transfer of their funds. Among the incentives offered is the waiving of any financial charges such as the monthly maintenance fee.

Teaching yourself not to be impulsive when it comes to shopping is another lesson to learn. Admit it or not, many of you often give in to your impulse to buy items that easily get your attention even though it’s not really necessary and it’s a bit expensive. You often say to yourself, “It’s okay to buy this after all, I’m just doing it once.” But if you get used to this behavior, it’ll eventually become a habit which can become really expensive so try to control yourself as much as possible.

Finally, you may want to opt for taking out a short term payday or cash advance loan for an emergency need instead of using your credit card. There may be times you don’t want to use part of your savings so it might be best to go for an affordable unsecured loan as long as you commit to paying it on time to avoid unnecessary fees. The key is to always be a responsible borrower and saver.…