Sammarusich Blog

If you’re the type of person that does not like change then possibly you will want to skim over this posting and move on to the next viable piece of literary expertise. Today we are going to talk a little bit about some of the new and improved debt consolidation options that are around the corner for 2011 and beyond. As most of America knows and a better part of the world in general the accumulation and retention of consumer debt is something that must be addressed as soon as possible.

Debt Consolidation Loan

The ability of a debt consolidation loan, in its purest form, is one of the most popular and favorite methods of getting out of debt that exist in the United States and will stay that way well past the 2011 year. Undoubtedly, your e-mail inbox has been slammed full of offers from the companies about getting out of debt with a debt consolidation loan.

Great New Options

One of the largest benefits of a debt consolidation loans experience is the convenience factor. Think about this for one moment, instead of paying 15 or maybe 20 different credit card issuers a month, who are charging different rates at very different times of the month, why not just take out one larger loan and pay off all of those existing deep in debt accounts? This way you will only have one payment to handle and even though the payment is larger than most payments that you are currently experiencing the bottom line is that the sum of this one payment is below the combined totals of all of your existing loan and credit card payments.

New Adventures

Before you put your John Hancock on any debt loan package, make sure that the cost of the brand-new bundled loan instrument will most definitely be lower than what you would have been paying cumulatively. It makes no sense if you are shelling out a good portion of your bring home pay only to stay at about the same annual percentage rate and balance as your previous loans.

Stress Relief

A debt consolidation loan is designed to alleviate both the stress and worry of multiple credit card and other debt payments and bring about a simplification in your life with one nice and neat monthly payment. If you are interested in learning more about a debt relief package and a debt consolidation loan especially for your way past due credit card balance sheets then by all means please do just that and remember there is no time like the present.

Debt Consolidation Resources

2011 could well cut out to be one of the most fruitful years for the greenback.

Since the early 90s to 2010, the Chinese Government had been having a great field trip keeping the Chinese Yuan well below how the market values it, giving an artificial force by using the Chinese Yuan to buy against the US Dollar. This manipulation by the Chinese government forces down the Yuan against major currencies like the US Dollar. While such intervention is well within international laws, the Obama administration must now be considering a tit-for-tat in adopting the reverse method against the Chinese Government.

Of course, this is not a game of currency – it is really about fighting for survival. Whoever gets a lower currency gets a more positive trade balance. We expect the year 2011 to be the year when the US Dollar would slide significantly to allow the US economy to recover. We further expect year 2011 to be the year when the Obama administration gives specific instructions to buy bonds from the Chinese Government, thus we expect the Chinese bond value to rise as well.

Another reason why year 2011 would be interesting to the US Dollar would be on the signing of free-trade agreements with ASEAN countries. One way to counter the impact of devalued Chinese Yuan on US trade deflicits is to minimize trade with China in the first place. Having free trade agreement (FTA) with ASEAN would mean less imports from China, thus negating the rise of China against the United States. Countries like Indonesia and Malaysia are well capable of producing and selling raw materials to the United States, which countries like Singapore and Thailand offers good quality assembled electronics and mechanical components.

When the FTA with ASEAN is signed, this could signal a real shift towards the exchange rate quantum between the Yuan, the US Dollar and ASEAN currencies (like the Malaysian Ringgit, Singapore Dollar, Thai Baht). In addition, we forecast that the US Dollar would probably trade against the Chinese Yuan at 1 US Dollar = 6.50 Yuan by early 2011. Thus one of the key milestone which could shift the balance of currency would be this FTA, which China would be keen to avert.

We know you’d rather start the New Year off with a positive attitude about your new role as entrepreneur – let’s demonstrate how you get a loan for a franchise and how franchise financing works in Canada.

Buying a franchise is clearly one of the bigger decisions you’ll make in your personal and business life, and you want to be able to do that with specialized information and assistance to help you succeed.

We would never say there are a large number of ways to finance a franchise in Canada, but there are some tried, tested, proven and recommended methods and strategies and we’ll show you how they work!

You never want to feel you have been pushed or misguided when you are thinking of getting a franchise financing loan. That’s where professional info is always the best solution.

We’re the first to agree that the attractiveness of buying a franchise is a powerful concept – you’re literally buying a proven formula and it’s no secret that you have a better chance of surviving if you purchase a franchise as opposed to starting your own independent business that has no track record.

So when you decide to finance that franchise the ‘ legwork’… if we can call it that, is important. Your goals are threefold actually, you want to be able to successfully purchase the franchise, ensure you have some capital to operate it, and finally, growth is important to your overall success, so you want access to growth capital for your business if you need it.

The majority of franchises are cash flow based, i.e. the restaurant industry, so operating capital and growth capital are not as important in those scenarios. But if you are purchasing a business that has receivables, inventory, and equipment needs, well… be aware that those items need working capital financing.

Franchise financing has three parties to it, yourself as the borrower, the franchisor itself, and of course the finance firm or bank. Generally most franchisors in Canada will determine if you are a qualified candidate for them – that includes a combo of business and or industry experience, as well as some sort of qualified financial credit check on yourself that determines you have the wherewithal to successfully purchase a business.

You only need two things to finance a franchise and get a loan for a franchise. Simple, right. Well those two things tend to be the 2 items that our clients worry about – they are Debt, and Equity. Equity is of course the amount of funds that you personally will put into the business – debt is what you’ll borrow of course.

In Canada the current environment calls for a 30-50% range owner equity infusion… this number in our opinion seems to have crept up over the years. The debt or loan for franchise acquisition comes from predominantly the government. The government!! clients ask? Yes, because the majority of franchises financing in Canada are done under a special loan program called the BIL/CSBF loan program. To qualify you need a business plan, and miscellaneous info required to support your application.

This loan eliminates a huge part of the risk in getting a franchise, because your personal guarantee is limited, thanks to our friends in Ottawa who sponsor the program. Also, and we think this is great; the loan finances things like leasehold improvements, which typically would be impossible to get elsewhere.

Speak to a trusted, credible, and experienced Canadian business financing advisor who will assist you to complete franchise financing successfully. Getting a loan for franchise finance is not as hard as you think, if you have an expert on your side in 2011.

Thanks to the surplus of inventory and historically low mortgage rates, the time has never been better to buy a new home. The reality is that most people do not have the spare bundles of cash lying around to buy their potential properties outright and need to rely on securing a home loan to finance their purchase of the American Dream.

However, the landscape of the real estate market has substantially changed since the days of your parent’s mortgage. Borrowers are now under greater financial scrutiny than ever as lenders now are interested in mitigating their chances of losing money because of a high-risk borrower.

The change in attitude is a direct result of the mortgage meltdown kicked off by the subprime mortgage mess. Private lenders and federal agencies are tightening the standards associated with the loan approval process, leaving many potential homebuyers high and dry. Prior to the mortgage mess, it was not uncommon for five or six mortgage applications to make it through the approval process. According to The Legacy Group (Bellevue, Washington) loan officer Paul McFadden, “These days, the number of mortgage applications that get approved is probably three out of 10.” Here is why:
Higher Credit Score Required: Lenders have used credit histories and scores to determine the potential “loan-worthiness” of applicants for decades. Now only potential borrowers with credit scores exceeding 700 can qualify for the best mortgage rates out there. Although there are still mortgage opportunities for those with scores underneath that value, but the interest rates charged will be significantly higher for this demographic. Income and Assets Under the Microscope: Prior to the mortgage meltdown, paper proof of both income and assets were enough to secure a mortgage. Lenders are now taking the time to verify the information by making phone calls and triple checking all paperwork submitted. Pregnancy: Being pregnant is not a legal path to discrimination, but the New York Times reported that maternity and paternity leave might be seen as a potential “loss of income.” Technically, this type of interference should be categorized under “Income and Assets Under the Microscope.” Home Appraisals: Thanks to the crop of under water properties, mortgage lenders are ordering stricter reviews of submitted home appraisals. Homes that do not appraise for the full contract price are subject to disapproval. Mortgage Industry Shake Up: Prior to the real estate bubble bursting, mortgage offers with enticing promotional rates were abundant and easy to secure. Right now, the industry is in flux as it attempts to clean up the mess and get business back on track. However, the guidelines are evolving everyday, creating a challenge for lenders regarding instructions on the mortgage approval process. Additionally Congress introduced new regulations to limit the power of predatory lenders, and the blanket laws are negatively impacting small business owners and independent contractors in the mortgage industry. Tighter Condo Approval Rules: Although condo living can provide a fantastic quality of life, those interested in financing purchase of a unit should expect challenges in the mortgage approval process. Typically, condos are considered to be a riskier type of home purchases and are charged slightly higher mortgage interest rates than single-family home purchases. The reason why, condos have a community behind them and the finances of the community (as well as the buyer) are being analyzed more intensely by mortgage lenders.

If you are attempting to finance your home purchase or refinance with zero down home financing, you should first understand why it is often a very bad idea and how such financing plans helped lead to the economic meltdown of the last few years. I will explain the two primary ways people obtain zero down financing and then explain why these aren’t always such a great idea.

Suffering High Interest With PMI

To avoid making a down payment, lenders provide borrowers the option to pay exceptionally high interest rates along with private mortgage insurance (PMI). Many home buyers do not seem to mind because those payments are all in the future and they want their house now. Modern people are particularly stubborn about parting with their cash; they often prefer to pay off debt slowly even when they have the cash to pay it off all at once.

Zero Down Financing is Short Term: Learn to Think Long Term

But once you commit to such a mortgage, you set yourself up for stressful disasters should any sudden employment problems ambush you or should any unexpected expenses intrude on your life. If and when this happens, those far off monthly payments that seemed so much easier than making a single large down payment will start to feel like incessant waves breaking on the shores of your financial peace of mind, slowly wearing it away.

Crafty Financing Isn’t Always Good Financing

And if you really can’t afford the private mortgage insurance on top of the high interest loan, aggressive lenders will guide you toward obtaining a second mortgage. You can then piggyback that second mortgage on the first loan to cover the down payment and avoid having to pay PMI (PMI must be paid on any loan where less than 20 percent of the home value is paid up front).

Get Real And Be Wise

But the question you have to ask yourself is this: when lenders are bending over backwards to help you get a loan you could not possibly afford without jumping through hoops, is it really a good idea for you to engage in such an investment? You would be surprised how many home buyers suffer from buyers remorse just months after they have committed to a crazy high monthly payment.

If you can’t simply show your savings, your income, your debt and you credit score and obtain a direct loan from a single, reputable lender, instead of forcing the issue you should consider stepping back and getting your financial ducks in line. Don’t dive into the deep end seeking instant gratification.