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Seller Financing and the Current Credit Crunch

The banks are hurting so much so, that they have decided to share the pain with the consumer. Even if you have been an exemplary customer, the banks will still pass their pain onto you. The pain of our current economic distress is being felt by all of us in different ways. From an all time high unemployment rate to cutbacks in salary or wages.

People are feeling the money crunch just like, if not more, than the banks. As if all this uncertainty wasn’t bad enough, the banks have decided to make everyone, even customers that pay their credit cards on time or consistently pay on time in full. No matter your account status the banks are lowering the limit on credit cards. So this obviously changes you debt to credit ratio. Making your debts appear as if they have suddenly become higher.

The ripple effect is your credit score becomes lower, in some cases plummets by more than fifty points. This sudden down turn then alerts the banks that you are having a financial problem. In essence the banks are creating your newly negative score.

If you apply for a loan or credit card more than likely you will be turned down or given a very high interest rate. Through no fault of your own the bank has lowered your credit limit making you have a lower credit score.

In some parts of the U.S. this stacking of the deck against you, to favor oneself, and make you think it is okay, would be considered a scam, a confidence game. But all things aside, the consumer will need to overcome the new obstacles and challenges the banks are setting us for.

What will happen if you suddenly stop using your credit card, your credit rating will not improve too much. The reason the score will not improve, the banks will still lower your limit, at least until you call them. Even then this still may not help your situation. This only benefits the banks, being at the mercy of the financial institutions that need a government bail out.

If you currently have a high interest rate you may not be able to get a loan to refinance or purchase a home. This is where a seller, who cannot seem to find a qualified buyer by the banks current standards, can help themselves and a buyer. Seller financing for twelve months or longer can make a property more attractive to all buyers, and relieve the stress of all parties.

Seller financing is a great option for all parties, you may have a buyer that can make the payment but may not qualify for conventional bank funding. The new bank rules are strict, and people who would have qualified for a loan not too long ago may not qualify now due to having a lower credit score because of the new banking practice of lowering the credit limit.

A seller may not have a lot of risks when it comes to financing their property. Some of the ways a seller could offer financing would be a lease with the option to purchase, carrying a second if a person cannot qualify for the total asking price, or holding the entire first loan. Each technique has its benefits and perceived pitfalls; But the benefits out weigh the alternative.

Finance And Lifestyle – Getting The Balance Right For You Personally And Making Happy Choices

Lifestyle, what exactly does it mean to you? Everyone seems to have their own ideas and they can be quite different. But no matter what your own view on lifestyle is, it is a certainty that finance will impact on that definition.

Taking into account your own definition of lifestyle, it is obvious that to live it as you want to you need to have the necessary financial resources to fund it. If for example you want all the latest technological gadgets as they come available then you need to be able to afford them. If you are unable to find the money readily and without hardship then you need to change your lifestyle image.

If you envisage your own ideal lifestyle and you want to live it, then you need to make plans to finance it. It is time to get real and practical. You can keep spending money but then your debts will keep rising and you will end up in a sorry state.

In today’s society you may feel pressurised into feeling that you should have a certain lifestyle. Television, radio, magazines and the Internet all tell us we should have this or that in order to be fulfilled. But you need to take a long hard look at your own particular financial situation to see if you can live up to these ideals.

Believe it or not people can be mistaken when examining their own situations. They assume thay have more money than they actually have in reality. Common sense goes out the window as they want certain pleasures now without looking further down the road and planning appropriately.

They compare themselves too often with other peoples lifestyles, and naturally want to have that for themselves also. But no two peoples situations are alike no matter what it may seem like on the surface.

Closely and at all times take a detailed stock of your own financial situation both now and into the future. Foolish spending in the present can lead to all sorts of heartache in the future. You could be putting your house or car at risk of repossession. You could even become bankrupt. Do not let your heart rule your head, live sensibly and within your means, and just enjoy the pleasures that you have. In this way you will be able to continue to enjoy them with no worry or stress.

Copyright (2006) Ben O’Rourke. This article may be freely used as long as the resource box and links are left intact.

Finances and the Business Startup – Part I

A large number of small businesses fail each year. There are a number of reasons for these failures, but one of the main reasons is insufficient funds. Too many entrepreneurs try to start and operate a business without sufficient capital (money). To avoid this pitfall, first review your situation by analyzing these three questions:

How much money do you have?
How much money will you need to start your business?
How much money will you need to stay in business?

Use the following categories to compile the needed data to complete a personal financial statement to answer the first question:

Personal Financial Statement

ASSETS

Cash on hand:
Savings account:
Stocks, bonds, securities:
Accounts/notes receivable:
Real estate:
Life insurance (cash value):
Automobile/other vehicles:
Other liquid assets:
TOTAL ASSETS:

LIABILITIES

Accounts payable:
Notes payable:
Contracts payable:
Taxes:
Real estate loans:
Other liabilities:

TOTAL LIABILITIES:

Completing this personal financial sheet will set you on the right road to business startup success.

While reading this article, you will develop a bank of resources and instill habits that reinforce what is needed to reach your business goals, develop a sustainable business, and achieve your ultimate dream.

In the article, you are further honing your business ideas and determine what finances you have and will need. You will develop your entrepreneurial goal into one that is both personally exciting and one that provides its own sustainable source of motivation. You will also mold your ideas into your personal values in order to make it part of who you are. This one strategy will assist you in developing the strong financial knowledge The High Performance Entrepreneur needs to develop sustainability.

In other strategies in my the remaining The High Performance Entrepreneur strategies, you will learn how to develop the daily routines needed to keep you on your path. You will create action plans to use as visual displays to keep you on track. Through self-assessments, you will orient yourself around daily, weekly, and annual reporting schedules so you will know how close you are to your goals.

Look for other articles in the series by me.