Category: Business Management Tips

Why more Americans are struggling to pay their credit cards

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The Federal Reserve is tightening credit as the economy shows signs of strength, ending a prolonged period of low interest rates in the wake of the financial crisis.

As a result, banks pushed the fixed rate on U.S. farm loans recently to a five-year high.

But you don’t need to be a farmer to feel the impact of higher interest rates.
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Borrowing Money from Family? Probably not a good idea

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If you want to keep the family love intact, you may want to refrain from borrowing money from relatives.

Likewise, if you want a better return on your money, don’t lend money to family members.

A recent CNBC article reported that only 57 percent of people who lend money to relatives get it back. And roughly 26 percent of them said they would never lend money to family members again.

Financial experts say before you consider borrowing or lending money to family members, you should take these themes into account.


Can the family member afford to make a loan?


Financial experts say you should always think of the lender’s financial conditions before you ask to borrow money.

Can they afford to lend you money or will it put a financial constraint on them?

If you do ask to borrow money, make sure the lender has time to look over their finances before agreeing to anything.

 

What conditions should you place on this loan?

Financial and legal experts say an agreement with terms and conditions must be put in place with family.  It’s no different than what a financial institution would craft.

These terms should outline when payments are due, interest rates, and what happens should default occur.

Both sides should agree to the terms and conditions. If you do this in advance, the worst case scenario will already be addressed.

 

What happens if you can’t pay the money back?

Financial experts say imagine the worst possible outcome. Think of what it will look like and how it can impact your family relationship.

How will the loan be forgiven if the family member can’t repay the loan? Discuss these scenarios before any loan is made.

 

Provident Loan Society is an alternative


If you need money right away but don’t want to borrow it from family members, there is a solution.

The Provident Loan Society is a not-for-profit lending organization that provides instant cash loans up to $100,000 for gold, jewelry, fine watches and silverware.

They have been a trusted lending source to New Yorkers for over 100 years. The Provident Loan Society has lower interest rates than traditional pawn shops (26% versus 48%), longer payback periods (six months versus four months) and minimal ticket and handling fees.

Simply bring your gold and jewelry to one of the five locations in New York City. They’ll appraise the items right there and give you potential options for a short-term loan. The entire process takes less than twenty minutes. You can also do some research online with the Fast Cash Calculator.

About the Author
Charlotte Knobben studies journalism in The Netherlands and currently lives in New York City.

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How millennials can finance a startup

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If you’re a millennial who dreams of owning your own company, you’re not alone. But you will need a capital and that might be an issue.

Most lenders are cautious to participate in startup financing because it’s a high risk. Startups are uncertain projects, compared to established businesses with consistent revenue and profitability.

Luckily, there are many options to finance a startup. The first step is writing a business plan, including how much money you expect to need and to generate.
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Save money with Rising Interest Rates

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The Federal Reserve raised interest rates today by a quarter point. The Fed Chairman says he expects to continue raising rates in 2018.

So what do these rate hikes mean for your pocketbook? It will likely cost you more money to borrow  now – compared to last year.

As a not-for-profit organization, Provident Loan Society of New York, can help you with cash loans, even as interest rates with credit cards.

The interest rate with Provident Loan Society is typically lower than traditional pawnshops (26% versus 48%), and even many credit cards. It can be a better way to borrow money at a lower cost.


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What does APR mean?

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You may see the term APR interest and wonder, “what is it?”

APR stands for Annual Percentage Rate, also known as the interest rate you pay for a loan for the entire year. The APR is applied to a loan, credit card, mortgage or even a collateral loan.
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