5 Essential Tips For Getting Out From Under Debt

Finding yourself under a mountain of debt can destroy your entire life.  Too many financial obligations on your shoulders can make it impossible to catch up with.  The more you try to pay off your debts the more that seem to add up.

However, by learning the right tips, you can take control of your debt.  Yes, even with student loans, mortgages, and maxed out credit cards.

Here are some of the best tips to get you started on your way to paying it all off.

Get Organized

The first step to tackling your debt is to add up everything that you owe.  Create a list of all of your monthly payments and the interest rate. Once you have an idea of the total amount of debt that you’re looking at, you can start to formulate a plan.

Sell What You Don’t Need

When you’re in overwhelming debt, your biggest priority should be paying it off.  Therefore, you should try to come up with as much money as possible.

You may find yourself coming up with excuses because you don’t want to part with your precious belongings. However, desperate times call for desperate measures.

Consider selling your car and taking public transportation until your debt is paid off.  Sell your computer and use one at the library. If you’re truly committed, you’d be surprised with all of the creative ways you can come up with money fast.

With the money that you make from selling things you don’t need, you can put it towards a large one-time startup payment towards your debt.

Stop Using Your Cards

A lot of people want to get out of debt, but they can’t seem to stop using their cards.  The more you spend, the more your interest climbs.

Get rid of your cards and put them where you can’t access them.  The only way that you’re going to make it out of debt is if you’re paying them off rather than owning more.  It’s that simple!

Use The Snowball Method

Experts recommend using the snowball method to pay off your debt.  You start with paying off your smallest debt.  Once that’s paid off, you use the payment you were previously paying towards that debt, towards your next biggest debt.  Once that debt is paid off you pay the next debt using the same method, until you’re finally out of debt.

Live Modestly

Take a look at your expenses every month and be honest with yourself.  Ask yourself whether your money is going towards things that you actually need or not.

Eliminate all of the charges that you can live without.  If you truly want to escape debt, then you’ll have to live modestly for a while, putting your desires on the back burner.  Once your debt is paid off, you’ll be financially free!

All you need to know about getting a loan in Canada

Financial support can be something you require in various scenarios, for either personal or professional reasons. Once you find yourself in the situation of needing money for a said purpose, you might concern yourself on whether you are viable for a loan or what needs to be done in order to access exactly the monetary advantages you are targeting. As a Canadian citizen, you’ll discover that in the loan department there is a wide range of appealing opportunities available for those who pursue the right steps and are actually aware of the lending possibilities in the country. Because this may be the first time you actually find yourself in the position of needing monetary support, acquiring some insights on the topic might be useful. Here’s everything you need to know, in general, about getting a loan in Canada:


Assess your needs

First comes first – analyse your situation with care and think about your specific needs and requirements. It’s important to have a clear idea in mind on how much money you would need for the intended purpose, so you don’t end up applying for a loan that fails to cover all your future necessities. Do the math, figure out what amount you would manage to make use of, and only when you have a figure in mind, you can start searching for available opportunities. Also, is highly relevant to make a plan on how you would manage monthly payment after receiving financing. Before you decide to request funding, having a proper plan on repayment is essential, so spend some time thinking about this particular detail as well.

Select a loan type

Depending on what you will be using the money for, you can decide on a particular type of loan. In Canada, you have an extensive array of options, so coming across one that ticks off all the boxes will not be difficult. The range varies from personal and payday loans to business, mortgages and even farming and agriculture loans. Once you have already assessed your needs, establishing into which category you fit won’t be difficult at all. The maximum amount access will naturally be higher for business funding, for example, than it would be for just a regular auto financing.

Use the right tools and resources to your advantage – Canada loan directories

With your requirements set straight and the type of loan already chosen, the most difficult part of the process comes and that is actually deciding on a lender. Once you get into the subject, you’ll discover just how many financing companies are on the market, which might seem promising considering it increases your odds of actually having your application approved, but it can also be challenging to decide on the most suitable fit. To manage dealing solely with reputable, top quality lenders and not collaborate with a company that will cause you problems or include hidden clauses in the contract, resort to the right lender comparison tool. Nowadays, you have digital tools – online platforms – that give you the opportunity to effectively compare lenders and what they have to offer. Seek a site of this sort and discover which company would provide you with the most appealing financial product.  It doesn’t matter if you are interested in personal loans in Canada or you are seeking business funding, a proper platform makes pre-application and company selection easy and convenient. Al the work will be basically done for you, you’ll just need to see which lenders meet your criteria and come with the most benefits in your situation. Loan directories have revolutionized how consumers are accessing financial assistance in various situations.

Getting your documents in order

Once you have managed to decide on a company that you think would offer you the most appealing advantages, you’ll need to find out what documents and paperwork are required from your part. Perhaps you have bad credit, and you are demanded to provide more extensive documentation, or the type of loan you want to access comes with increased requirements – contact the lender, discover what your file should contain and get your document in order.


Once you have become familiarized with the subject, have understood what loans are available in Canada, which ones suit your case best and have gathered all the required paperwork and documents you can move on to the final step and that is actually applying to the lender of your choice. Considering the way things have evolved in this department along the years, nowadays, you can even send in your loan application online through the right online platform. You are just a few clicks away from your much needed financial support. The response duration on your sent application could however vary, depending on the how complex that particular type of loan actually is, so while for small, personal loans you may get your money rapidly, for business financing, for example, it might take a bit more time – usually, the higher the amount, the lengthier the entire process.

Getting the financial support you need to meet some of your objectives might seem difficult at first, without you having that much knowledge on the subject, but once you look into the matter and find out what the necessary steps to take are, you’ll discover that the funding you require might be easier to obtain than imagined. Doing your research is the most important part of any loan application, so this is the starting point you’ll need to focus on. Once you know with exactitude what you need and what different lenders have available for you, proceeding with your application will not take you long. Lenders in Canada offer people the financial support they require through different opportunities, so whether you need a personal loan to cover some of your life expenses or you require funding to pursue the goals of your business plan, you can get your hands on proper means of financing fast and easy is you know what needs to be done in this direction.

6 Actions to Take to Save $1000 on Your Student Debts

Completing your college education can make you feel excited and liberated. However, this also means that you have to start repaying your student loan. This is a huge responsibility.

If you can plan early enough, you can not only save a lot of money on your student loans but you can make the transition with minimum stress. Here, you will find some actionable tips that can help you save money on your student loans.

Take advantage of the grace period

After you’ve just graduated, you have about six months before you are required to start repaying your student debt. While you may think that this is a good deal, the loan will become more expensive if the period elapses before you have cleared the loan. if you took a loan with government subsidies, you have the opportunity of paying the principal amount without interests as long as you pay within the grace period.

On the other hand, unsubsidized loans accrue interests from the instant you get the money. Although the lender doesn’t require you to make the payments immediately, the interests keep on growing. As such, you may want to repay the interests during the grace period. This lowers the amount you owe since your progressive payments will go towards settling the principal amount.

Consider an income-based repayment program

If you are facing genuine hardships with making the required payments on your student loan, an income-based repayment plan can help you out. Generally, these plans will limit your payments to only 15% of your annual income and at the same time, your term will be adjusted to 25 years. After you make payments for this period, any amount that is outstanding will be canceled.

However, this method is only appropriate for people who can’t afford the monthly payments. This is because you might end up paying a lot of money in interests, but it lower than you would have paid if you defaulted the loan.    

Besides the forgiveness that comes after 25 years, you can still benefit from other programs that cancel your loan sooner. One such program is the Public Service Loan Forgiveness and it grants forgiveness to people working in government agencies and non-profit organizations. However, you must have worked with them for at least 10 years. In addition, there are programs that benefit lawyers, doctors, and teachers.  

Set up automatic payments and surpass the minimum requirement

By signing up for automated payments, your creditor can offer you a discount on the interest you are supposed to pay. While the figure may appear small, it can translate into huge savings after several years. Besides, you won’t have to face the stresses of late payments.

If you can afford to pay more, do it. While this may take more of your available resources, you can save a lot of money in interests since the debt will be cleared sooner. To illustrate, if your loan stands at $50,000 and the interest rate is 6%, making at least $100 extra payments per month can save you more than $3,000. In addition, you’ll clear the entire amount two years earlier than scheduled. With most student loan providers, you will not be charged prepayment penalties so there are no additional costs.

Student loan consolidation

Student debt consolidation has gained popularity with graduates who have more than one loan. Basically, this option takes all your outstanding debts and they are combined into one. Instead of dealing with multiple loans which come with different interest rates, you’ll have a single loan with a defined interest rate. While the loan amount will appear higher, you will end up saving several thousand on your student debt in the long-haul.

However, this method is most beneficial to people with a good income and outstanding credit history. For instance, if your total student debt stands at $200,000 with an interest rate of 7%, its possible to refinance the loan at 4%. But this is only possible if your credit scores are high. You should also understand that by using this option, you will no longer be eligible for IDR options as well as loan forgiveness.

Find a creditworthy cosigner

When you apply for a student loan with a creditworthy cosigner, you are setting yourself up for easy approval and you also benefit from lower interest rates. Basically, most lenders will determine the interest rates for realistic loans based on the credit scores.

However, you should bear in mind that your cosigner is viewed as a co-borrower and they bear an obligation to settle the outstanding debt. At the same time, all the defaults and delinquencies will be reflected on the credit report of all parties. However, there are lenders who can offer cosigner release after making about 48 payments on schedule.  

Use extra income to pay the loan

If you want to eliminate the debt earlier, you can make additional payments using any extra income that comes your way. The idea here is to minimize the interest you will be paying by the end of the repayment cycle. However, this option will be more suitable for people earning a high income since they have more money to meet other financial responsibilities.

On the other hand, this option also means you will forgo the option of getting loan forgiveness since you will have eliminated the debt before you can qualify for the program. As such, if you are certain that you don’t have to pay the entire amount; this might derail your plan.

While student loans may seem like a heavy burden, you can eliminate the debt and save some thousands in the process. It is not only important to start making the payments early but it is also crucial that you remain diligent on your payments. While there are numerous ways to help you save on your student loan, you need to stay focused on eliminating the debt. By using the tips in this article, you can increase your chances of becoming debt free and embark on other goals that contribute to financial freedom.  

4 Alternative Financing Options for Small Businesses

Traditional financing is hard to come by when you run a small business. Banks often require an excellent credit history and at least two years in business. According to a report from Biz2Credit, less than 25% of small business loan requests were approved by big banks in March 2016.

Alternative forms of financing can help small businesses obtain the funds they need to grow and thrive. Here are four alternative financing options for small businesses.

1. P2P Loans

Peer-to-peer lending allows businesses to borrow money from their peers rather than a single lender. A banking platform may approve the loan to go live for bidding, but the funds will come from ordinary people who want to make an investment in your business.

To start the process, businesses must fill out an application. The platform then assesses the business’ credit risk and applies an interest rate to the profile. Investors can then view the profile of the borrower and determine whether they want to invest. Businesses with good credit generally have better luck with P2P loans.

P2P lending rules vary from state to state. The practice is legal in all U.S. states aside from Ohio.

2. Crowdfunding

Similar to P2P lending, crowdfunding allows businesses to raise money from their peers. There are four types of crowdfunding: rewards, debt, charity and equity. Platforms like Kickstarter and Indiegogo generally use rewards crowdfunding, while GoFundMe is more focused on charity.

With rewards crowdfunding, the business doesn’t have to pay the money back. Backers are sent something in return for their donation. With equity crowdfunding, those who invest in the business receive a share of the business or product.

Crowdfunding is often used by startups looking to launch a new product or service, small businesses looking to expand and creative professionals looking for funding for a project.

There may be fees associated with the crowdfunding platform.

3. Lines of Credit

A business line of credit can be obtained from a bank or an online lender. Unlike a conventional loan, a line of credit gives you access to a sum of money that you can draw from at any time. Businesses are only charged interest on the amount of money that is withdrawn.

Lines of credit work similarly to a credit card.

If your business is in need of working capital or extra funding to cover expenses during a slow season, a line of credit may be a good option.

4. Invoice Factoring

Invoice factoring is different from other forms of lending. Invoice factoring companies purchase your business’ unpaid invoices at a discount and you receive the majority of the money upfront. The client pays the invoice, and the factoring company sends you a second installment (less the factoring fee).

The factoring fee is a percentage of the total amount of invoices that are being factored. Typically, the factoring fee for 30 days ranges from 1.5% to 4.5%.

Invoice factoring is appropriate for businesses that have unpaid invoices. Bad credit isn’t normally an issue with this form of lending, as the factoring company is more concerned with the client’s ability to pay – not yours.





4 Things to Think Through Before Consolidating Your Debts

Debt consolidation can be a Godsend, especially when you are drowning in debts. Once you consolidate your credit cards, your line of credit, and any other loans that you may have, into a lump sum, there will only be one affordable payment that you may have to make each month and at a low interest rate.

However, it’s imperative to understand exactly what you’re getting into, before signing on the dotted line and consolidating your debt. So here are a few things for you to keep in mind before you seal the deal with your debt consolidator:

Check if you are actually benefitting by consolidating your debts

Go for debt consolidation only if there is an actual benefit. You may have to do your math to find this out. But it is quite simple. Just add up all the payments that you are making currently towards your credit cards and loans. Find out how much you will have to pay if you consolidate them all. Now analyze the difference between these amounts. Here’s a debt calculator tool to help you do the math. If the margin is high and if you are saving a significant amount by consolidating your debt, it makes sense to go this route.

See if you can reduce your expenses

Too much debt can be a result of excessive spending. Get an account of your expenses by creating a budget analysis and you can then find easy ways to cut some of these expenses out of your life. Although you may not be able to do much about your fixed and required expenses, like your electric bill and mortgage payment, you can reduce overspending on entertainment related expenses. See if you need to do away with any of your old habits. Differentiate things based on your needs and wants. If you are serious about repaying your debts, you must make sure you won’t go back to your spending. This is when debt consolidation might work for you.

Research your options

You can choose from different ways to consolidate your debts. There are secured loans and unsecured loans. You can pool your debt on a balance transfer credit card or you can just transfer your outstanding debt onto a new line of credit. Some of this may involve high upfront costs or origination fees.

Apart from debt consolidation there are also other debt relief methods you can choose from. For instance there is debt settlement where you get to settle your debt for less than what you actually owe. You may want to consider the benefits and drawbacks of your options before making your decision.

At Golden Financial Services, their California Debt Relief office does a great job at explaining each debt relief option and showing you the benefits and downsides associated with each plan.

Try negotiating with your creditors

If you are going through a tough financial situation you can approach your creditors to make things easier for you to repay your loan. In case you have established good relationships with them they may even agree to reduce the interest rate or increase the term of your loan, thereby reducing your monthly payment. If this doesn’t work out, you may even ask them to suspend your payments for a few months until your situation improves. Here are step by step instructions on how to negotiate with your creditors on your own and get them to reduce the interest rate and monthly payments.

If debt consolidation is the path you choose, make sure that you only consolidate the debts that have a high interest rate. You can always pay off the low-interest debts on your own. And always check whatever company you’re working with, at the Better Business Bureau, on Yelp or TrustedCompanyReviews.com.

Bankruptcy Benefits You Want To Know More About

When you declare bankruptcy you go through a highly emotional moment. Stress will pile up and what you do is going to affect your self-image, reputation and future credit. Every person that files for bankruptcy goes through the struggles of rebuilding credit while loan securing becomes a challenge. Lifestyle changes happen and you are faced with a rollercoaster of emotions. However, this does not mean everything will be bad.

What many do not realize is that bankruptcy also has some serious advantages. They do offer relief if you are faced with debt. You can avoid the letters and phone calls that demand payments and the entire process is nowadays much simpler than it used to be, especially when hiring an experienced bankruptcy attorney. In order to offer the information you need, remember that bankruptcy filing brings in the following important advantages:

  • Older liabilities (those that are over 3 years old) will go away.
  • Repossessions, missed debt payments, lawsuits and defaults that could hurt credit score more are avoided.
  • You can start rebuilding credit sooner rather than later.
  • While student loan debt cannot be eliminated, bankruptcy will stop lenders form using their aggressive collection actions.
  • The fact that you will lose credit cards is actually an advantage since this removes the appeal of using them and ending up in more debt.
  • You get a new start as you face the reality you are bankrupt.
  • You avoid the embarrassment of having to go through dunning letters, phone calls from your creditors, cancelled CC cards and declined authorizations for credit charges.
  • You avoid having your name listed in the papers or in court records because you are sued.
  • You can still obtain loans from lenders that are specialized in dealing with people in your situation.
  • State exemptions will allow you to avoid the situation in which several owned items will be repossessed.
  • Trustees and judges surely heard stories that are way worse than yours and the fact that you file for bankruptcy means you take responsibility. This can actually give you preferential treatment.

Final Thoughts

As you can see, filing for bankruptcy is not a bad thing. In fact, in the event your experienced bankruptcy lawyer recommends it, this is exactly what you should do. There are so many situations in which bankruptcies proved to be the best thing that happened to someone, simply because it offers a brand new financial start. It is tough but it is much easier than having to deal with fighting a constant bad financial situation without having any real way of getting out of debt.

The only thing that does need to be added is that it is really important to hire a highly experienced bankruptcy attorney. His/her help will be really valuable as you are 100% sure all documents are properly filed and you are represented in front of authorities. Whenever you look for a bankruptcy attorney, always hire the best one you can find. This is the smartest thing you can do to get you back on track.

3 Tips for Balancing Your Savings and Paying Down Debt

Choosing whether to save or pay off debts can be a difficult decision. Saving money for a rainy day or retirement seems like a top priority, but will your debts linger on for years to come? 

Managing debt and maintaining savings is tailored to each individual, and different strategies can be implemented in helping to achieve your goals. Here are three tips on how to maintain a balance between paying down debt and saving.

Learn to Budget

The first step to managing your finances better is learning how to budget. Knowing your expenditure can seem like a scary thought at first, but creating a budget helps to prioritize financial obligations.

Start with your monthly income after tax, and then list your expenses. According to Certified Financial Planner, Jeff Rose, it’s best to separate your expenses into three categories.

  • Fixed: rent and debt repayments (these expenses are necessities).
  • Variable: groceries, travel expenses and utility bills (expenses that can be adjusted).
  • Optional: expenses that aren’t necessary, such as going to the movies, out to restaurants or on vacation (expenses that you can live without).

Breaking down expenses into categories helps identify optional expenses. By reducing them, you’re saving money.

Refinancing Debt

Gather information and find out the total amount owed, the interest charges, and the terms of the loans like how long you have to pay. 

Student loan refinancing can be one of the most effective ways to lower your monthly outgoings and help make your finances more manageable. Refinancing is essentially applying for a private loan at a much lower interest rate, and that could potentially save you thousands of dollars. Refinancing companies tend to be strict in terms of eligibility. Most lenders will want to see a steady stream of income, ability to manage finances, and good credit history.

Paying Down Debt First

Now that you have an idea of where you can free up some cash, it’s time to prioritize paying down larger debts first and paying the minimum towards debts with lower interest rates.

Donald Hammond, MBA, CFP, and executive vice president at Maritime Financial Group suggests:

“List your debt from the highest interest rate to the lowest. Pay off the highest-interest cards and loans first, paying more than the minimum each month. Continue to at least make minimum payments on the rest. Work your way down until everything is paid off.”

With this method, Hammond suggests to get more aggressive on larger debts with higher interest rates. For example, paying $400 towards a credit card with an interest rate of 17 percent is going to be more effective than paying down a credit card with an interest rate of 7 percent. 

You Can Do It

Saving for the future and paying down debt doesn’t have to be mutually exclusive. Establish a budget, and you’ll get a clear picture of which outgoings can be tweaked to save money. The methods listed above are a strategy to chip away at your debts, maintain savings, and bring you one step closer to becoming debt-free. 

5 Ways to Get Out of Debt

If you’re in debt, you’re not alone. About 8 in 10 people are in debt, and many will die with debt still hanging over their heads. Debt is something to take seriously and, if you clicked on this article, you know it’s time to do something about it. Getting out of debt isn’t easy, but it will be well worth it. You wouldn’t want to spend the rest of your life with debt, so it’s time to take action. You can defeat your debt if you take the necessary steps. Here are five ways to get out of debt.


Investment isn’t just for the wealthy. Your debt places an added financial burden on your shoulders, so it’s even more important that you take care of your future now. Open a retirement fund, and research stocks to buy. A stock market investment isn’t a good way to make money for tomorrow, but it’s an excellent way to make money for twenty years from now. Start taking care of your future by earning retirement money. It won’t hurt your situation to have money on the side. If you invest responsibly, you could ease some stress off your future shoulders. If you do choose to invest, look into socially responsible investing, and make sure your investments are as good for the world as they are for you.  


Budgeting might sound like a huge pain. It might also sound like “one of those things” you never seem to stick to. We all fail to complete our exercise routine every week, or keep our house as clean as we’d like. A budget, however, isn’t something with which to gamble. Do whatever you have to do to keep yourself accountable, and start budgeting with great care. If you’re afraid a budget will scare you every time you spend money, don’t worry. A good budget does the exact opposite. If you budget right, you’ll feel good about the money you spend, because you know what you can afford each month. Put a percentage of your income aside into savings, college loans, debt payment, or grocery budget. Once you know your limits, you’ll feel freer.  

Make Smarter Payments

If you’re late paying off your credit cards, you earn a higher interest. Do as much as you can to keep your interest rate low. Treat your credit card like cash; don’t spend money that isn’t in your bank account. Your budget helps with that. If you can pay every month’s bill one hundred percent, you’ll earn a better credit score, and you’ll stop adding new debt. As you attempt to pay off your cards, try to make double payments, or at least pay off more than you must every month. That added payment is interest free, so you’ll save yourself a great deal of money if you pay off more in a shorter period of time. Your goal should be to live on as little money as possible, and pour as much of your income as you can into alleviating your debt, today. If you find that you need a better income stream, make the right moves towards a better career. Check out places like NYADI in Jamacia, NY, or look into online degrees, to start pulling a better income now.

Break Expensive Habits

If you’re like most people, you spend a couple hundred, or thousand, each year on various habits. Whether it’s something innocent, like a soda per day, or something more serious, like cigarettes, letting go of unhealthy habits saves you in the long run. If you stopped buying cigarettes, you’d save several thousand dollars each year, even if you switch to vapes instead. While it’s always better for your health to eliminate tobacco altogether, you’ll save money by using a vape mod and ejuices. Even cutting back on unhealthy eating, like frozen dinners or soda, saves you a great deal every year. Water is free, and you’re not doing your health any favors by drinking soda often. If you want to eliminate debt, once of the first steps is a lifestyle change.


A budget and simple lifestyle changes may not be enough to solve your financial woes. If you need to take action about the amount of debt you owe, consider a serious downsize. If you live in a nice house, and you have a hard time paying off your debt, it might be time to move. An apartment or smaller house might feel like a culture shock to you, but downsizing is worth it, if it eradicates your debt. In fact, people who live in smaller houses tend to be happier. Getting rid of your stuff and living a more simple life might be the solution for you. It’s good for your bank account, and it could be good for you as a person, as well.

A life with debt is stressful. With debt, you’re more prone to worry, and it often feels like your freedom has been removed. You can’t do what you love with the threat of debt hanging over your head. Even simple purchases feel catastrophic. You deserve to live a better life. Start purging yourself of consumer tendencies. You don’t need the best phone. You don’t need a bigger house. What you do need is a meaningful life, and part of that meaning starts with living debt free. You deserve the freedom to travel, buy a dinner out once and a while, and enjoy peace of mind. None of those things are easy, or even smart, with debt in your life. Don’t leave your future up to chance, a windfall, or a better job. Start making moves today to eliminate your debt.

Secondary Mortgage Market in GTA – Weighing the Pros and Cons

Home sales in the Greater Toronto Area (GTA) have decreased this year compared to last. The Toronto Real Estate Board reported that sales were down almost 35 percent in February 2018 compared to February 2017. In addition, prices have dropped, with the average sales price falling 12.4 percent for all housing types.

As 2018 moves forward, buyers are getting used to the new mortgage rules and the government regulations that went into effect on January 1 of this year. Home buyers are adjusting to the new housing market measures and have had to recalibrate their plans because of the higher interest rates and new mortgage stress testing guidelines.

What that means is that realtors have to be creative if they’re going to make sales in this market.

For both buyers and realtors, the secondary mortgage market can provide an alternative to traditional bank mortgages, one that in many instances, should be considered. Obtaining a mortgage from an alternative lender is frequently easier and quicker than getting a traditional mortgage. While it is true that buyers often need to have a larger down payment, and the loans are generally more expensive, the secondary mortgage market can provide a solution for buyers who are looking for a different course of action and for realtors who want to help their clients.

One of the great advantages of the secondary mortgage market is that it can provide a short-term solution for buyers who can then, at a later date, make different arrangements, perhaps through a traditional bank mortgage.

For example, a GTA home might have been selling for $1.4million a year ago, and today that same home will likely go for $1.05 million. If a buyer is putting 25 percent down, they will carry a mortgage of $787,500. Most secondary mortgages have a duration of one year or less. So, at 8 percent per year, the buyer is paying in one year 4 percent extra on the mortgage, or $31,496. That means effectively that the property costs an extra $31,496. That’s not really significant since the buyer could close in a buyer’s market that’s discounted. In a year’s time, the buyers can investigate refinancing with a traditional bank mortgage, and will hopefully be in a much better situation.

Realtors who want to guide buyers towards the secondary mortgage market should exercise caution, however, and recommend alternative lenders only to those buyers who can carry such a mortgage and have the financial resources and income ability to refinance within a year.

I would also recommend that GTA realtors who are interested in offering advice about the secondary mortgage market establish direct relationships with alternative lenders rather than with mortgage brokers; brokers will often charge substantial fees, which can add to the costs incurred by the buyers.

Although sales in the GTA market have taken a downturn, there are still a number of ways for both buyers and realtors to take advantage of the market conditions.

Borrowing Money with Poor Credit

It can be extremely frustrating to have bad credit. Even if you are responsible with money now, poor decisions that you made in the past can make it so that you are treated like someone who is not. However, all hope is not lost in this situation, as you will still be able to take out certain types of loans even with a lower credit score. Generally speaking, short-term loans are more available to people with poor credit than are more traditional types of loans.

However, it is important to keep in mind that these loans are not better in every way just because they are more available. If you do not meet the specifications to get the loan on your own, you will often need a cosigner in order to be able to borrow the money. Essentially, because your credit score marks you as a risk to the lender, they need to have someone with a higher credit score held responsible for paying them back if you end up defaulting on the loan. In order to find the right cosigner, you will need to find someone who is willing to help you out with this and who has a credit score that is high enough for the lenders to accept (if the cosigner’s credit score is also too low, the loan will be denied).

Additionally, you should be aware that if you are borrowing money with less than perfect credit, you should anticipate quick cash loan rates to be higher than other types of loans. Lenders of these types of loans do this because, again, you are considered more of a risk if unable to show a strong credit history, and they stand to lose less if they put a higher interest rate on your loan. You should make sure that you are able to make the repayments with the higher interest rate, and that you are able to fit all of the interest that you will have to pay on this loan in your budget during the repayment period.

However, there are also positive aspects to borrowing money with less than perfect credit. Using loans to build credit is always a possibility. If you are able to take out the loan and successfully pay it back over time as promised, this will improve your credit score and make it so that you may have better options in the future if you ever need to borrow money. With a higher credit score, you will be able to consider more types of loans that you are able to borrow, in addition to ones with lower interest rates that are available to people with good credit. In this way, you can use this experience to prevent your current credit situation from limiting your loan options in the future.

As you can see, there are many things to keep in mind when you are borrowing money and you do not have good credit. You should make sure that you are able to pay back the loan before you enter into the agreement, as if you end up defaulting on the loan, this will lower your credit score even more and make it so that you end up with even fewer options the next time you need to borrow money. Additionally, this will put you into even more debt with the additional late fees and interest that you will have to pay. Overall, when you are taking out a loan, make sure that you are responsible and plan ahead.