Shylocking is the illegal process of lending money at ridiculous rates. While you may think that this is an old-world operation, it’s still evident in the modern world. Shylockers are now wearing suits and ties, pretending to be your best friends. They prey upon your need for immediate cash, and they slap you with tear-jerking interest. With the right preparation, it’s possible to avoid these shylockers.
Here are the tactics you can apply to avoid modern shylockers:
It’s a no-brainer that you should do your own research before taking out any loan. Without proper research, you’ll be exposed to lenders who will rip you off through unreasonable rates. In your research, make sure that you track down borrower reviews because they are often unbiased. You can check out these reviews in Facebook and other social media sites. Lending clubs are also great areas where you can borrow money while minimizing risk.
Create a Financial Plan
A responsible borrower is the one who has a detailed financial plan. In this plan, you should include your expenses and income sources. It’s important to see a fine balance between the two points so you can repay your monthly loan obligations easily. It will only take few minutes to create a plan, as long as you’re concise and determined. Many borrowers default on their loans because they failed to make financial plans. Yet, even if they have plans, these borrowers failed to develop the habits to implement the plan. While you can’t use the plan to slap a shylocker away, it will give you a shot of getting out of debt.
Be Objective in Taking Suggestions
If you don’t have the time to research, you can always ask your friends and family. There’s a fair chance that the probably have a lender suggestion. Once you received a suggestion, you should take this with a grain of salt. Not all suggestions are good, so you have to dig deep. If you’re not careful, you may end up dealing with a cruel shylocker. Do your best to compare one suggestion with another so you can come up with a list of the most reliable lenders.
While modern shylockers can’t be weeded out from society entirely, you can still control the game. Applying the mentioned tactics will help you avoid these shylockers, but you still need to be vigilant. Don’t trust a money lender easily – an agenda may be hidden beneath the lender’s appealing marketing practices.
One of the best ways to generate business capital is to get a loan. Depending on your business, various types of loans are worth your time. Personal loans, for example, are reliable funding sources because they are quick and easy to get. On top of that, interest rate of personal loans is variably low.
If you have a small loan and you want to officially turn it into business capital, here are some basic strategies that you can follow:
Put the Loan In a New Bank Account
Many entrepreneurs have multiple bank accounts. They have specific categories for their accounts (i.e. savings, capital). Once you put the loan into a new bank account, you’ll decrease the risk of spending it carelessly. The capital will just stay in the account until you need it. You can even put an additional security parameter for the account, such as your spouse’s permission. But you must always remember that financial discipline is the best parameter that can make your new account secured.
Divide and Allocate
When you finally got your loan, you need to divide and allocate it properly. By doing this, you can utilize the loan properly and avoid spending it in things that you don’t need. Before allocating your loan, you must ask yourself several questions. Which parts of the business need immediate attention in the next 3 months? What specific areas lack funding? Are your personal expenses covered for the rest of the year? Once you have these questions answered, you won’t have a hard time dividing and allocating your new loan. In the long run, the priorities that you’ve set will shape your business decisions.
Include the Loan in Your Business Plan
Do you have a business plan? If you answered yes, well, you’re on the right track. Having a loan at hand can even make things better. However, it’s advisable to include the loan in your business plan. A short remark or reminder will do. In this way, you won’t forget about repaying the loan. You can also craft the right strategies in balancing your business and loan obligations.
Turning your loan into a business capital is not a difficult thing to do. You can sit in your coach, count the loan, and shout aloud that it’s a capital. However, you’ll be more motivated if you have an official declaration. Once your loan is now a business capital, you must do everything to make your business thrive.
A computer loan is one of the simplest loans that you’ll encounter today. Basically, it’s a loan that will fund the purchase of a computer that you want. In most cases, a computer loan can be smaller than a personal loan, but there are exceptions. If you’re planning to get this type of loan in order to buy your dream computer, there are 3 reminders that you need to etch in your mind.
Your Repayment Plan
After getting your computer loan, you must prepare a repayment plan. Doing this plan takes only few minutes of your time since you only need to include financial strengths and weaknesses. If you really want it quick, just include the details about your loan obligation and the limitations of the lender. While you’re not obligated to make this plan, it’ll make your life easier. Missing a monthly or weekly payment on your loan can lead to higher interest and penalty fees.
Getting a computer loan is the solution if you don’t have ample cash right now. But have you done your aftermarket search? The aftermarket is a great place where you can find budget computers and other tech accessories. Well, you can still visit a regular shop for brand new items but that would cost you more. It’s advisable to check the aftermarket because you might find the best deals and you don’t have to shell out monthly interest in the future.
Choosing the right lender will save you from tons of regrets later on. Nowadays, hundreds of lenders are competing for the attention of borrowers. They usually exaggerate their claims just to gain new customers. Not all lenders are like this though, so you need to refine your search. Track down social media reviews so you can find the right lender. Reviews are more reliable because they’re timely and they carry the voice of the people. You can also ask your friends and family members but remember to take their opinions lightly.
By keeping these reminders in your mind, you can take advantage of the computer loan. If the lender is not strict, you can use the loan for other purposes. Many borrowers have been applying this strategy for years, and they even used it for other types of debt tools like home loans and credit builders. Still, you need to use your payday loan for its intended purpose to avoid spending spree.
Over the years, closed-end credit programs reached a high level of popularity. These products are typically offered by many lenders, under different lending policies. Some of the best examples of closed-end products are home loans, personal loans, gadget loans, appliance loans, and payday loans. Applying for closed-end credit is easy and quick, but utmost care is needed. If you’re not careful, you may end up with huge debts.
However, if you’re financially disciplined, closed-end loans will work for you. Here are the reasons why:
Closed-End Loans Boost Your Financial Curve
While your financial situation can be affected by your closed-end credit obligation, it can actually bring positive changes. More often than not, the reason why you’re applying for the loan is financial emergency. However, if you can find a way to use the closed-end credit loan for an earning opportunity, your financial curve will go up. The effects won’t be instantaneous and you still have to deal with monthly interest. Once you go past those things, you’ll reap the benefits of your investment.
Many Lenders to Choose From
Even if lenders have the same business nature, they have unique ways of offering their policies and products to borrowers. A lender may have lower interest rates, while another offers better repayment terms. Since the demand for closed-end loans have risen in the past years, many lenders have entered the market. This gives you a broad market to choose from, so you can juggle your choices before sending your loan application. In your search for the best closed-end credit provider, borrower reviews are tantamount. Don’t pick the first few lenders that you’d see in Google. Broaden your search to find the best lender.
The Loan Can Be Finished Easily with A Repayment Plan
In the lending scene, your repayment plan can mean the difference between debt and freedom. What is a repayment plan? This is a documented action plan that helps you determine the best course of action to repay the loan and not miss any monthly due. Depending on the type of loan and the amount, you need to have a flexible and adaptable plan. Your plan should cover your income, expenses, financial challenges, and details about your loan obligation.
Even if closed-end loans are advantageous, you must be serious enough in repaying it. If you run away from the loan, you’ll lose the trust of the lender and your credit score may even suffer. Basically, missing your loan responsibility will compromise your financial position someday.
Not all lenders are reasonable in their collection methods – this is a sad truth that everyone must face. Around the world, there are many recorded altercations between lenders and borrowers. Some led to big lawsuits, while others bordered on violence. If you encountered a lender who’s giving you a difficult time, you should think clearly and apply these strategies:
Many things can be resolved by diplomacy. In the lending table, you must open a reasonable negotiation channel with your lender. Try to explain your side and the reasons why your payments are late or why you wouldn’t be able to meet your monthly due. Keep in mind that the lender may not accept your story. At least, you can pacify any potential disagreement. If the lender understands your side, then you’ll gain a leeway and a lower interest.
Consult Your Friends and Family
Once a lender has questionable methods in getting what you owe, you can turn to your family and friends. At first, it’s probably difficult because you may think that they’d judge your capabilities of handling your financials. Don’t be embarrassed – your family and friends will give you the support needed and they may even help you in settling your loan obligation.
Contact the Authorities
If negotiation failed and there is no other way to settle the gap between you and the lender, it’s time to get the authorities involved. This is a serious move that may backfire against you and pit you in an open rivalry against the lender. Before doing this, make sure that your claim is stronger. A weak position will just waste your time, and the lender may file a case against you.
Bonus: Use Social Media Advantage
If the lender is active in social media and it gave you a difficult time, smash it with a negative review. Tell people that they must avoid such lender, hence they suffer what you experienced. Depending on the lender’s influence, you may be able to damage it by drawing away potential customers. But then again, this strategy will take time and effort. So, be ready for the long stretch!
Whatever happens, you must resist the urge to physically harm your lender or the representatives. Lenders can be annoying at times because they’re frantically minimizing the risk to their business. However, the dark times of lending are no longer prevalent. Many lenders are now fair and dutiful to all their borrowers. To find the best list of licensed moneylenders, you must be serious in your research.