Should you consider getting a debt consolidation loan?

If you are like many other people, and have a mortgage as well as other loans that have been necessary to you for various purposes, keeping up with your payments can often become challenging and even frustrating. Sometimes, it is easy to overlook an account, and deal with unwanted phone calls from collectors or debt notices that are only bringing you stress. If you have decided to not let your debt control your life anymore, one great solution you have the possibility to opt for is to consolidate debt. Debt consolidation debts have increased in popularity, and cone you discover the benefits this option provides, you will understand why. Here’s why you should give this possibility more of your thought:

Single payment

The main thing that makes debt paying so frustrating often is that need to keep track of various accounts. Managing expenses, when you have many bills to pay on a monthly basis can smoothies get confusing, and you can frequently leave behind important payments, which will only bring you extra charges and issues with lenders. By consolidating all your debts into a single account, you will need to handle only one single payment at the end of each month, which will naturally make things far easier for you. With only a single source to think off, you will be able to focus on paying your debt quicker.

Lower your interest rate

Depending on the company you resort to, lowering your interest rate is also possible. It’s a known fact that debt consolidation offers the possibility to save money on interest. You might be having multiple credit cards at the moment, which might be maxed out, and credit cards usually have extremely expensive interest rates. By relying on a debt consolidation company, and cumulating all of your debts into one single account, the chances are that you will be offered a cheaper interest rate, and saving some money is certainly a plus that you cannot overlook.

Less stress

Last but not least, one other thing that makes this possibility so appealing is the stress reduction that comes with it. Because you probably need to keep track of numerous debt accounts at the moment, you must be constantly worrying about staying on top and tracking all your expenses. Debt is known to be a significant stress factor, and anything that can help you in this department is worth your attention. With debt consolidation, you can lower your stress level significantly, and focus on more important matters in life.

Debt consolidation can be a great solution for you, considering the numerous benefits this option actually brings. By accessing this type of loan, a lot of stress can be taken off your shoulders. However, in order for you to actually be able to acquire al of these advantages, it’s imperative to resort to the right debt consolidation company, and that implies making a thoroughly informed decision. After researching the topic in an extensive manner and finding out what your options are, choose the best offer for your particular needs.

Ed Rempel Org

What is The Cash Flow Dam?

What Is The Cash Dam and How Does It Work?

 The Cash Dam (sometimes referred to as a “cash flow dam”) is a simple but powerful concept, and it’s an especially attractive option for those who are familiar with the Smith Manoeuvre or other tax minimization strategies. Cash Dam can help you with tax optimization if you have a mortgage and own either a small business or a rental property.

What is cash damming?

 The Cash Dam allows the owner of a small business or rental property to more quickly pay down their non-deductible mortgage on their home. It’s a variation on the Smith Manoeuvre, but without additional investing. The Cash Dam is essentially an expedient way to change bad debt into good debt.

For someone who’s using the Cash Dam, what it involves is using a line of credit to pay for business expenses. Then, while using the increased business cash flow, you pay down a non-deductible mortgage or loan. This, in turn, produces an increasing tax-deductible business loan, while paying down a non-deductible mortgage or loan. Be advised that the Cash Dam as described above will only work for those who own a non-incorporated personal or partnership-based small business or a rental property.


 If you own a small non-incorporated business that has $2,000 in expenses each month and you also have a readvanceable mortgage, then the $2,000 per month expense would be paid by the home equity line of credit (HELOC). You then use the additional $2,000 you have in your business expense account to make a payment on your non-deductible mortgage. Interest paid on money that’s borrowed for business expenses is tax-deductible; by using the Cash Dam, you’ll be left with a tax-deductible business loan and a non-deductible mortgage that’s been quickly paid down.

One of the keys to the Cash Dam, however, is capitalizing the interest on the business line of credit. That way, you avoid using any of your own cash flow and you keep the business line of credit tax-deductible.

How does the Cash Dam differ from the Smith Manoeuvre?

The Cash Dam relies on using a tax-deductible business loan to allow you to pay down a non-deductible debt, while the Smith Manoeuvre allows you to buy investments. Investing from your credit line is why the Smith Manoeuvre has much higher risk and return than the Cash Dam.

Potential applications

 Say that you’re a rental investor, instead of using your own cash flow to pay for rental-related expenses, you can use the Cash Dam and a line of credit. In this instance, using the Cash Dam would help you pay for your personal mortgage and help you satisfy your tax obligations as well.

And if you are a small business owner, the Cash Dam can be extremely advantageous. The strategy gives you a way to quickly pay down your non-deductible mortgage and convert that debt into a tax-deductible business loan.

What are the different type of loans?

At some point in time, everyone experiences financial difficulties and this is where loans can help them. In fact, loans are needed every now and then if you belong to certain financial class who cannot spend considerable amount of money at once.

Getting a loan has become easier nowadays. But there are some factors to take into account before settling for a loan. Since there different kinds, it is important to understand them to evaluate which one best fits your financial needs and objectives. This article will guide you over different kinds of loans:


  • Installment loans


This is a pretty popular loan which can be paid back in monthly payments covering the interest and principal. Installment loans are taken by homeowners for their personal needs or even by business owners who want to meet their business objectives. Full amount is received when the contract is signed and interest is calculated from that date to the final day. Repayment must be made before the final date or you may have to face additional penalties.


  • Balloon loans


These names are commonly written under another name but it can be figured out by the fact that when the contract is signed, you receive the full amount but only interest is paid off during the life of loan. The balloon payment of principal is supposed to pay on the final day. Balloon loans are ideal for businesses who have to wait till a particular date before receiving payment from a clients for its services and products.


  • Secured and unsecured loans


Loans can come in two forms, secured and unsecured. If the lender has trust in you and believes that you will be able to repay on time then he may grant an unsecured loan. No collateral is pledged hereby as a secondary form of payment. Secured loans requires some kind of collateral but usually has a lower interest rate as compared to unsecured ones.


  • Interim loans


Bankers hereby are more concerned with who will be the payer of the loan and how much reliable the commitment is. These are used to make repeated payments to the contractors who are building new facilities when a mortgage on building is used to pay off the interim loan.


  • Open ended and close ended loans


When it comes to open-ended loans, there is a fixed limit line of credit which can be borrowed again once it has been repaid. Credit cards are one type. Close ended loans are loans that cannot be borrowed again like car loans and student loans.


These were few types. There are a number of others like inventory loans, equipment loans, personal loans, guaranteed loans and commercial loans and also you can compare secured loan rates online at What the matter of concern here is that one must choose the loans that is supposed to meet their financial objective not only in short term but in the long run as well.

What you should know about No Credit Check Loans

Life is not always predictable, and no matter how much money you earn as your salary, you may find that you are in need of cash unexpectedly. Some events can happen to your life that can disturb your budget. As such, you may discover that you are in a position whereby you cannot comfortably pay bills such as maintaining your home; you are not able to visit your dentist among other things. It may happen in the middle of the month whereby you have not yet received your salary. If this is the case with you, continue reading to know why you should make use of no credit check loans.

They are timely and available

If you are in a situation whereby you are facing a financial problem such as illness, death or any other unexpected happening in your life, you need a fast loan online because they will help you much. Online loans with no credit check will be the best move for you because they will come instantly provided you are eligible for the loans.

The qualification criteria is simple

When it comes to online loans with no credit check, they are designed to help those who need money quickly to pay for their expenses. To get the loans, you need to meet the simple criterion that is outlined by a specific company. With these no credit check loans, the requirements for applying for a loan is simple, and you will not be required to submit a lot of documents. Some of the requirements are as outlined below:

  •    You must be 18 years and above
  •    You must have a stable job
  •    You should have a steady bank account
  •    You should be living permanently in the required country

They will answer your problems instantly

If you are faced with unexpected expenses making you feel stressed and worried, you should take advantage of this loan. It is because the loan will solve all your problems almost instantly. Your financial problems will not only be addressed, but you will also straightforwardly acquire money efficiently dealing with your business requirement.

Approval will be fast

Once you have provided what is required, you will get your money through the online platform. The process will be quick and instant hence you will not be required to wait for days to get your money. If you are a resident of Canada, Captaincash can be the best platform for you to get an online because of the quick and smooth process involved.

Does a Lawsuit Affect Your Credit Score?

In the wake of the 2008 financial crisis, lenders aren’t as eager to approve loan and credit card applications. That means consumers must be more diligent in preserving their credit worthiness.

If you’re facing a lawsuit, you may be wondering whether the outcome will affect your credit score. The answer? It depends. And what about if you’re the one filing the lawsuit?

Does Filing a Lawsuit Impact Your Credit Score?

If you’re the one filing a lawsuit, will your credit score be impacted? Probably not.

It doesn’t matter if you’re suing the government of California or your neighbor down the street; filing a lawsuit probably won’t impact your credit score.

But if a judgment is made against you, the effects may be very different.

Can a Lawsuit Hurt Your Credit?

Yes. FICO says there are certain situations in which public records would have an effect on your creditworthiness.

Lawsuits, foreclosures, bankruptcies and other financial-related public records will likely be a factor in your credit score because they contain financial information. That information is usually reported to the credit bureaus.

A lawsuit can affect your score if there’s a judgment against you. Along with owing money as part of the civil judgment, there are also legal costs that will add to your monthly expenses.

Can You Prevent Your Score from Dropping?

Yes. Losing a lawsuit and having a judgment against you doesn’t automatically mean that your credit score will take a hit. You have the power to keep your score intact if you take a smart approach.

First and foremost, make sure that you’re still paying your bills and paying off your debts during and after the case.

Having to deal with a lawsuit can be stressful, and you may feel overwhelmed. It’s easy to forget to pay a bill here and there in this scenario, but missing one payment will only add to the stress. Not only will you have to pay late charges, but you’ll have to worry about the issue being reported to the credit bureaus.

If there is a judgment against you, make an effort to pay it off in full as quickly as you can. Failing to pay the judgment in a timely manner may result in it going into collections, which will only add to your monthly bills and stress.

How Long Does a Lawsuit Affect Your Credit?

A negative public record can stay on your credit report for 7-10 years. Tax liens typically stay on your report indefinitely.

Judgments from lawsuits usually stick around for seven years – even if you pay off the judgment quickly.

It’s best to avoid a negative judgment altogether if you can, but if the other party won’t drop the suit, you may have no other option but to accept the impact it will have on your credit. In some cases, consumers can dispute the judgment later on and have it removed from their credit reports. While not impossible, this is an uncommon scenario.

Lawsuits can impact your credit score if there’s a negative judgment against you, but continuing to pay your bills and paying off the judgment as quickly as possible will minimize the impact.

4 Tips for Finding the Right Online Lender for Your Business

Most businesses need capital at some point, but finding a lender can be difficult. Online lenders offer a quick and convenient way to get the cash you need without having to take time out to visit your local bank.

Finding a reputable online lender can also be a challenge. Use these four tips to find the right lender for your needs.

1. Make Sure the Lender is Transparent about All Fees and Costs

When taking out a loan, it’s important to know and understand all of the fees involved. Some lenders are very transparent about extra costs, while others slap their borrowers with hidden fees when they get their first bill.

APR is only one piece of the puzzle that you need to consider. Additional fees might include:

  • Origination fees
  • Application fees
  • Processing fees

Make sure that you know exactly how much money will be deposited into your account after paying fees, and ask about any prepayment penalties you might incur. Read over your loan documents carefully before signing on the dotted line.

“We actually encourage our customers to pay off their loans early,” says CreditCube, an online lender. The company is also transparent about their fees and the APR they charge on loans.

Unscrupulous lenders sometimes offer borrowers the chance to refinance their loan before the payment period ends, and then charge you an early penalty fee. You’ll also have to pay for fees associated with the refinance. Borrowers who go this route often wind up with triple-digit APRs.

The bottom line: Know exactly how much you’re paying for your loan.

2. Know Your Options

Research lenders before you decide to borrow, and go beyond their website to learn more about their offerings and the customer experience.

  • Does the lender offer excellent customer service?
  • What rates do they offer?
  • Do their loans have long terms?
  • What are real borrowers saying about the company and their lending practices?

Find a lender that’s transparent about fees, offers fair terms and rates, and provides excellent customer service.

3. Make Sure Your Documents are in Order

Before you even submit an application for a loan, make sure that you have all of the appropriate business documents in order.

You’ll need your business records for the paperwork part of the loan process, but you’ll also need the data from your records for other things, like:

  • Determining how much money you need to borrow
  • How much you can afford to pay in payments

If you’re having trouble figuring this out on your own, the Small Business Administration‘s Development Center offers one-on-one mentoring and workshops that can help.

4. Determine the True APR of the Loan

Some lenders make it difficult to determine the true APR of the loans they disperse. Instead of listing the APR of the loan, they might use terms like “factor rate,” “rate,” or “cost.”

A 15% factor rate, according to the Responsible Business Lending Coalition, could equate to a 50% interest rate.

A loan’s APR includes the fees, interest rate and the loan term. If a lender won’t disclose the APR, move on to another company.

3 Things to Do If You Can’t Afford Your Rent on Time

While no one wants this to happen to them, it’s not uncommon for finances to stretch a little thin sometimes to the extent that you’re going to have trouble paying your monthly bills. Some bills you can let slide or get by with only paying a portion of the payment. But when it comes to your rent, this is one bill you’re never going to want to get behind on. Not only could this be a slippery slope to have to overcome, but you could end up without a place to live if things get too far. So to help you retain your home and navigate this tricky situation, here are three things you should do if you can’t afford to pay your rent on time.

Understand Your Lease

To know what you’ll be getting yourself into if you can’t afford your rent payment, Constance Brinkley-Badgett, a contributor to, recommends first reading your lease and seeing what is says about this situation. Your lease should give you some guidelines as to what will happen if you’re late paying your rent or only pay a portion of the balance. If you’re only going to be a few days late and will only be given a small fee, you might just want to take that as it is. But if you won’t be able to pay and your lease says this could result in you being evicted, you’re going to have to find another way to make things right.

Speak With Your Landlord or Property Manager

After you’ve read your lease, you should then speak to your landlord or property manager. By letting them know that you’re going to be late in paying your rent or that your payment might not be in full, you have a better chance of working things out than if you try to slip something by them. Marcia Stewart, a contributor to, shares that by being upfront and honest about your financial situation with your landlord, they may be much more willing to be lenient with things like penalties or fees. This could make your negotiations go much smoother.

Seek Financial Assistance

If this situation is something that goes beyond just one month of bad financial planning, you should probably consider a more permanent solution. When you simply can’t afford to live somewhere, you may want to try looking for a less expensive place to live. Cara Newman, a contributor to, shares that you can also seek financial assistance from many organizations, like your state’s rental assistance programs, the Housing and Urban Development Department, or the USDA Rural Development Program. If you qualify, these programs could be very helpful in paying your rent each month and keeping you in a safe home.

If you’re concerned about your ability to pay your rent on time this month, use the tips mentioned above to help face this problem head on.

5 Things to Consider Before Applying for a Loan

Applying for a loan is an important decision for any individual from the age you start pursuing your professional education to when you are in the process of making your own house and settling in. Loans may be an excellent way to finance such projects, but they come at a dreadful price other than the basic amount you have to pay back: the interest rate. The higher the interest rate, the more you will lose from your income just for the sake of financing your loan.

This article will highlight the main aspects you should check for before applying for a loan, so that it does not become a lifetime burden on you.


  • The Interest Rate


This is by far the most important catch to consider in the case of loans. If you are an employee of the financial institution you are applying for a loan from, chances are that the interest rate will be lesser than for other clients, so this is an ideal situation.

In other cases, you will need to search a lot before you arrive at a decision from where to borrow. Your financial history goes a long way in determining how trustworthy you are to a creditor.


  • Loan Security


Securing your loan through assets is a common way institutions measure your intention and propensity to take and pay back the loan you are taking. Most firms will ask for security in the form of an asset in case you are unable to pay back the loan, because in the unfortunate event of bankruptcy, unemployment, or death, the institution does not want to lose its money.


  • Present Income


You need to be aware of the reliability of the sources of income through which you are managing your finances presently. This is important because if these sources are not able to meet the demands and satisfaction of your creditor, your chances of getting the loan amount you are looking for will be very slim.

Do not apply for loans with unrealistic aims such as cutting down essential spending, because the pressure on you and your family will likely be disastrous.


  • Credit Score


Institutions are keen to check your credit score as a rough estimate of how worthy you are in terms of your ability to pay back, so thoroughly review your annual report and make sure you cut any loose ends such as verdicts of unlawful practices or payment defaults.

This information can be found on your credit report, so it is advised to regularly request for your report and review it.


  • Managing Finances


After being credited with your amount, the pressure of repayment will rise every day, and even a delay of one day in your payment of installation can cause the institution to monitor your finances and develop low trust in you.

With a loan, especially when the servicing amount is not cut at source, it is a good practice to make sure you separate out your payment at the start of each month.

Refinancing may still be an option

To no one’s surprise The Bank of Canada has left its key interest rate unchanged at 0.5%. After reading the latest Monetary Report, it doesn’t sound like it will raise its policy rate any time soon. Inflation is flat, as is wage and export growth, and there is still uncertainty in the US and globally.

Despite record low interest rates, some new home buyers are finding it challenging to qualify for a mortgage due to a new round of rule changes announced late last year. These changes have also affected existing mortgage holders who may want to refinance to get a lower rate.

While low interest rates and robust regional housing, markets continue to be the norm, Canadians are still burdened with record-high debt loads. The ratio of debt to disposable income rose to 167.3% by the end of 2016. That means Canadians owe $1.67 for every dollar of disposable income, up from $1.66 the year prior.

If you’re sitting with equity in your home yet can’t seem to manage your debt payments, refinancing could still be an option. With credit card interest rates often pushing the 20% range and unsecured lines of credit in the 7% and higher range paying off high-interest debts can make sense.

Let’s review a refinance. Specifically, you are increasing the amount of your mortgage to pay off debt. Your actual mortgage payment may or may not increase, depending on a number of factors, and you may incur a penalty to break your existing mortgage if you are refinancing midterm, but your overall monthly payments should decrease. You could be paying off the refinanced debt at a much lower interest rate, which could save you thousands of dollars in interest in the long run.

Here are some reasons to consider a refinance:

Decrease your overall monthly debt payments by using your equity to pay off those high-interest credit cards or unsecured loans, which can help you better manage your budget.
You can refinance to purchase another property. Using the existing equity in your home can be a great way to buy a rental property which, if done right, can also make the interest you pay tax deductible.
You could also take out some of the equity for investment purposes.
Or you may want to refinance to renovate.

As you can see there are many factors to consider before deciding to refinance. Each individual’s financial situation is different. Call me and we can discuss the options available to you.

Guy Ward is a Mortgage Broker in Calgary, Alberta with TMG (The Mortgage Group Alberta) and can be contacted at

What’s going on with my appraisals

Changes in mortgage rules for home buyers and insurers certainly have had an impact on the housing market, and those changes have impacted property appraisals as well. Conventional mortgages – up to 80% of the value of the property – historically, were required to have a full appraisal. Now, in many areas of the country, an appraisal may also be required on insured mortgages — 80 to 95% loan-to value.

The decision to approve a conventional mortgage, after all other lending criteria have been satisfied, is made on a property’s fair market value. This is defined as the market value of an interest in land at the highest price reasonably expected, when sold by a willing seller to a willing buyer, after an adequate amount of time and exposure to the market.

So who determines the value of that property? One could argue that the market itself determines the value, which is true, but from a lender’s perspective that number must come from an independent third-party – the appraiser. An appraiser, who is specifically trained and has sufficient experience, will be asked to offer an impartial, written opinion of the property’s value.

Realtors normally use a comparative market analysis (CMA) to evaluate a property’s value based on local market data. Agents analyze listing and sales data for comparable properties in the area to recommend a price to list or to offer. However a CMA is not an appraisal. Although appraisers use the CMA approach, they use it in combination with other factors to determine the value of a property.

The major difference is that appraisals are done for a specific client — the lender. Because real estate is the major security for mortgages, the market value estimate needs to be as accurate as possible. Appraisers use ‘sold’ properties information only and compare similar property types, in close proximity, that have sold within a relatively short period of time – usually 90 days.

Not all residential properties are subject to a traditional appraisal. If the property is in an established area with similar properties then sometimes the price can be validated electronically. This model of appraising property, called automated valuation model (AVM), has become quite popular in the last 10 years.

However, given the nature of the housing market these days, mortgage lenders have moved away, in many areas, from AVMs for conventional mortgages, and for some high-ratio mortgages as well, and are asking for live, full on-site appraisals.

At the end of the day, an appraisal must reflect a property’s realistic true market value and needs to be backed up with accurate data.

So why does an appraisal come in lower than expected?

With the introduction of bidding wars, where, in some areas, prices may be artificially inflated, appraisers are still tasked with coming up with a property’s fair market value. Rapidly changing markets can be very challenging for an appraiser to properly evaluate a home’s worth.

Appraisers will try to get to the purchase price when evaluating a property. However, sometimes the sale is a few weeks ahead of the market. If prices are increasing, it may not show up in their analysis yet and the appraisal will reflect a lower value.

At the end of the day, the appraisal has to be a realistic evaluation of a property’s true market value and be backed up with data.

Guy Ward is a Mortgage Broker in Calgary, Alberta with TMG (The Mortgage Group Alberta) and can be contacted at