nature sports activities – Walk On Mountain http://walkonmountain.com/ Mon, 19 Sep 2022 02:03:51 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://walkonmountain.com/wp-content/uploads/2021/10/favicon-5-120x120.png nature sports activities – Walk On Mountain http://walkonmountain.com/ 32 32 New bivalent boosters add protection against the Omicron variant before the expected surge https://walkonmountain.com/new-bivalent-boosters-add-protection-against-the-omicron-variant-before-the-expected-surge/ Sun, 18 Sep 2022 22:59:58 +0000 https://walkonmountain.com/new-bivalent-boosters-add-protection-against-the-omicron-variant-before-the-expected-surge/ Maxime Elramsisy | California Black Media California began administering updated COVID-19 booster shots after the Centers for Disease Control and Prevention (CDC) approved the use of new booster versions of the vaccine for people ages 12 and older. The Western State Science Safety Review Task Force independently reviewed the boosters and recommended that they be […]]]>

Maxime Elramsisy | California Black Media

California began administering updated COVID-19 booster shots after the Centers for Disease Control and Prevention (CDC) approved the use of new booster versions of the vaccine for people ages 12 and older.

The Western State Science Safety Review Task Force independently reviewed the boosters and recommended that they be given to people who have already received primary vaccines, regardless of booster status.

The updated boosters will be “bivalent,” providing protection against the original coronavirus strains, as well as enhanced immunity against the currently dominant BA.4 and BA.5 strains, also known as Omicron variants.

The Pfizer/BioNTech bivalent booster is available for ages 12 and older, while the Moderna bivalent booster is approved for ages 18 and older. Bivalent boosters are not permitted for children under 12 years old.

“We’re getting closer to a flu vaccine analogy,” Dr. Gil Chavez, chief medical officer, Office of the State Epidemiologist, California Department of Public Health, said at a recent table. Ethnic media-sponsored round on COVID-19 with other doctors. physicians and public health officials: Dr. Maggie Park, County Public Health Officer, San Joaquin County Public Health Services; Dr. Oliver Brooks, Chief Medical Officer, Watts Healthcare; and Dr. Eva Smith, Medical Director, K’ima:w Medical Center.

According to Chavez, “While you know that every year we have to get a flu shot to make sure we get the updated shot…with COVID-19, we’re going in the same direction where we think we’re going.” it will be important to have at least one annual booster.

“The goal, and our hope, is to continue on a low case count path and prevent a surge in COVID cases this winter. That’s why public health officials are urging individuals to get the updated recall,” Chavez said.

Officials reiterate that while boosters prevent illness in some people, they are critically important in preventing people who contract COVID from becoming seriously ill, to the point where they can be hospitalized and potentially die.

Vaccines are also an important tool in preventing “long COVID”, where symptoms such as headaches, brain fog and fatigue can linger for more than six months.

In July, a spike in infections driven by the highly transmissible BA.5 subvariant nearly prompted Los Angeles County, for example, to reinstate a universal indoor mask mandate.

“BA.5 has been the predominant variant in circulation since July and still and now accounts for about 87% of all newly diagnosed COVID cases, with BA.4 accounting for roughly the remainder,” Park said. “I want to say that the rollout of this new booster is actually quite timely, as many models are predicting that we will face another surge of COVID-19 this fall or winter and we need to be prepared.”

While scientists think many people infected in the last COVID surge will have natural immunity for a while, that kind of protection starts to wane after about 90 days. So even people who have had COVID in the past should consider getting a booster about 3 months after being infected.

In California, vaccine hesitancy persists. 72% of all people received primary vaccinations, but only 58.8% of those eligible for boosters received a booster.

This is worrying because, according to Dr. Brooks, “unvaccinated people [account for] 2.4 times more cases, 4.6 times more hospitalizations, 8 times more deaths.

Brooks shared a concept for combating vaccine hesitancy by addressing common points of resistance in his patients, called the three Cs – complacency, trust and convenience.

Complacency plagues those who think COVID is over — or who are tired and overwhelmed by the fact that, over the past two years, the virus has dominated many facets of life. Yet it continues to evolve to become more highly transmissible and more elusive of immunity from infection or vaccination. According los angeles county public health statisticsthe Omicron variant killed people in all age groups at a higher rate than motor vehicle accidents.

People worry about vaccine safety because of “the misinformation that lives on in our communities,” according to Park. “But with all the millions of doses that have been given in the United States and around the world today, we have so much information about them, and we know they are safe,” she said. declared.

“Many members of the community have expressed concerns that the vaccine was created too quickly to be safe and reliable,” Brooks said, “The mRNA platform…which has been around for about 11 years; it was developed when we had SARS CoV-1, so a lot of people forget about it because it didn’t go pandemic, and then MERS, which was Middle East respiratory syndrome, which is similar, so we use this mRNA platform.

Many people also argue that the injections do not work because they are still infected. Park said: “People say[ing] “My friend is fully vaccinated and boosted but she still has COVID”, and to that I say yes, but is she still alive? And yes, of course she is. We never promised that vaccinations would mean you wouldn’t get COVID… what we do know is that your chances of getting COVID decrease with vaccines, but the decrease is even greater when it comes to your risk of being hospitalized or dying.

As for convenience, vaccines are now available in locations across the state with relative ease of access and at no cost. There are no anticipated supply constraints, so no group has priority. People looking for vaccines or boosters can make an appointment at Myturn.ca.gov.

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FirstCash Holdings: counter-cyclical pawnshop business (NASDAQ: FCFS) https://walkonmountain.com/firstcash-holdings-counter-cyclical-pawnshop-business-nasdaq-fcfs/ Fri, 16 Sep 2022 20:14:00 +0000 https://walkonmountain.com/firstcash-holdings-counter-cyclical-pawnshop-business-nasdaq-fcfs/ Marti157900/iStock Editorial via Getty Images FirstCash Holdings, Inc. (NASDAQ: FCFS) has a core pawnbroking business that is countercyclical and can potentially benefit from the current economic downturn. However, investors should keep in mind that the company recently acquired the America First Finance business, which provides Lease-To-Own (“LTO”) retail loans. This is highly cyclical and may […]]]>

Marti157900/iStock Editorial via Getty Images

FirstCash Holdings, Inc. (NASDAQ: FCFS) has a core pawnbroking business that is countercyclical and can potentially benefit from the current economic downturn. However, investors should keep in mind that the company recently acquired the America First Finance business, which provides Lease-To-Own (“LTO”) retail loans. This is highly cyclical and may expose the FCFS to credit losses in an adverse economic environment. I think, for now, the counter-cyclical headwinds in the pawnshop sector outweigh the risks in the payments sector, and FirstCash is worth a speculative buy.

Company presentation

FirstCash Holdings, Inc. is one of the leading pawnshop operators in the United States and Latin America, with more than 2,800 outlets. It also operates in the retail point-of-sale (“POS”) payment solutions business that offers consumers with limited credit LTO loans.

Approximately 80% of FCFS revenue comes from the pawnshop segment and 20% comes from the newly acquired POS Payments business (Figure 1).

Presentation of the FCFS

Figure 1 – FCFS Overview (FCFS Investor Overview)

Pawn is a counter-cyclical business

Pawnshops are local retail stores that buy and sell second-hand consumer goods such as jewelry, electronics, tools, and sporting goods. Pawnbrokers offer a quick and convenient source of small, secured, non-recourse loans to unbanked/underbanked/limited credit consumers.

A typical customer walks into the pawn shop with their personal property and about a quarter of the time sells the item directly to the store. Three-quarters of the time, they obtain a pledge loan, secured by their property. Of the items pawned, about three-quarters are redeemed and the pawnbroker earns monthly returns of 12-13%. A quarter of the pawnbrokers default and the pawnbroker takes possession of the asset. Assets that the pawnbroker takes possession of (either through outright purchase or overdue loans) are resold to consumers at a margin of 35-45%. Figure 2 shows an overview of Pawn activity.

pawn

Figure 2 – Pawn Business Overview (FCFS Investor Overview)

Historically, pawnbroking has performed well in most economic cycles. In particular, the pawnbroking business is countercyclical, as financially stressed consumers tend to use pawnbroking services more in difficult economic conditions. US FirstCash Holdings stores actually saw a 50% increase in pledge receivables from 2007 to 2012 during the “Great Financial Crisis” (“GFC”), and receivables declined during COVID as financially strained consumers been supported by government stimulus checks (Figure 3). .

the pawn is countercyclical

Figure 3 – Pawnbroking is countercyclical (FCFS investor presentation)

As government stimulus measures have ended and inflation eats away at household budgets, we can expect the use of pawnbrokers to increase over the coming quarters. Already, we see that U.S. pawnshop receivables are up 27% year-over-year to July 31 (Figure 4).

American Pawnbrokers

Figure 4 – Statistics of the US pawnbroker FCFS (FCFS investor presentation)

finance

Financially, the pawn business model generates high returns. Contrary to payday loan, which is banned in 12 states and has interest rate caps of 36% in 18 other states, FirstCash’s pawnbrokers do not fall under these regulations. This has enabled FCFS to achieve total returns of more than 160% of earning assets over the past twelve months in its US pawnbroking segment (Figure 5). The Latin America segment’s rate of return is even higher at 190%.

US Pawn Returns

Figure 5 – Yield of US FCFS pawns (FCFS investor presentation)

On a consolidated basis, this translated to trailing year revenue of $2.2 billion and adjusted EPS of $4.64 (Figure 6).

FCFS consolidated results

Figure 6 – FCFS Consolidated Financial Results (Presentation to FCFS Investors)

Note that although pawnbroking generates fantastic cash returns, it requires a lot of operating expenses to maintain. After deducting operating expenses such as employee compensation and occupancy costs, FirstCash has an LTM adjustment. net margin of 9.2%.

The evaluation is rich

FirstCash is currently trading at a P/E Fwd of 17.3x, which is high compared to the financial sector’s P/E Fwd of 10.5x (Figure 7). However, we need to understand that the FCFS business is counter-cyclical, while investors may be wary of loan losses and therefore grant a lower multiple to banks and alternative lenders, FirstCash’s pawnbroking business actually benefits of a weakening economy as its pledges grow. during difficult times.

Evaluation

Figure 7 – FCFS Valuation (Seeking Alpha)

It is important to note that even during the COVID pandemic, FirstCash has experienced negligible loan losses, as FCFS typically only lends a fraction of an asset’s guaranteed fair value (Figure 8).

pawnbroking losses

Figure 8 – Insignificant FCFS Pawn Loan Losses (FCFS 2021 10-K)

LTO Loans – Opportunity and Risk

While FirstCash’s core pawnbroking business appears to be benefiting from tougher economic conditions, the recently acquired POS payments business raises some questions and concerns.

In December 2017, FirstCash paid $1.17 billion (8 million shares plus $400 million in cash) to acquire America First Finance (“AFF”), a growing retail finance provider. AFF’s payment solutions are available at over 7,600 points of sale.

Similar to the increasingly popular BNPL business model, AFF’s POS payment solutions business allows consumers to apply for credit at the cash register. If credit is given, they can take the items home and pay for the purchase over time with automated installment payments (Figure 9).

LTO financing

Figure 9 – FCFS LTO Financing Overview (FCFS Investor Presentation)

On the positive side, the LTO finance business is somewhat complementary to the core pawnbroking business. It essentially targets the same consumer demographic (underbanked, limited credit) and captures transactions where that consumer purchases new assets from other retail merchants. It is also much easier to grow the productive asset base, as the lever to swing would be lending standards (one of the blows to FCFS in the past had been its lack of growth during good economic times).

However, there are subtle and critical differences between LTO companies and pawns. First, remember that in a typical pawnbroking transaction, the customer brings the pawned asset to the store, and the store retains possession of the collateral asset for the duration of the loan. The loan is usually given at a fraction of market value, so the pawnbroker is relatively protected against credit loss: in the worst case, the store takes ownership and sells the item.

In an LTO transaction, the customer requests a loan at the point of sale and takes the item home. The lender does not take possession of the property as collateral. Also, the loan is made on the “brand new” retail value of the asset (most often furniture), and the asset essentially depreciates as it leaves the door. Therefore, LTO loans have a high credit risk, especially since the customer is credit constrained at the outset.

It could also be difficult to recover defaulted LTO assets (having covered RCII and AAN in the past, I’ve read many stories of angry LTO customers acting violently towards debt collectors or destroying leased assets). FirstCash allows LTO assets to be returned to local pawnshops, however, I don’t know how likely this is to happen or if a piece of furniture like a large sofa can be sold quickly at a small footprint pawnshop.

The balance sheet is also a risk

Another risk for FirstCash is that it incurred significant debt to complete the AFF transaction. As shown in the figure, net debt stood at $1.2 billion at the end of the second quarter and is 3.3x LTM adj. EBITDA. High levels of indebtedness could limit management’s ability to react to various economic scenarios and business conditions.

FCFS balance sheet

Figure 10 – FCFS balance sheet (FCFS investor presentation)

Conclusion

In summary, FirstCash’s core pawnbroking business is countercyclical and can potentially benefit from the current economic downturn. However, investors should keep in mind that the recently acquired POS Payment Solutions business is highly cyclical and may expose FCFS to credit losses in an adverse economic environment. I think, for now, the countercyclical headwinds in the pawnshop sector outweigh the risks in the payments sector, and FirstCash Holdings, Inc. is worth a speculative buy.

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Research: Rating Action: Moody’s Assigns Aaa/VMIG 1 to District of Columbia Housing Finance Agency’s 2022 Multi-Family Housing Tax Bond Series (Faircliff Plaza East Apartment Project) https://walkonmountain.com/research-rating-action-moodys-assigns-aaa-vmig-1-to-district-of-columbia-housing-finance-agencys-2022-multi-family-housing-tax-bond-series-faircliff-plaza-east-apartment-project/ Wed, 14 Sep 2022 21:22:51 +0000 https://walkonmountain.com/research-rating-action-moodys-assigns-aaa-vmig-1-to-district-of-columbia-housing-finance-agencys-2022-multi-family-housing-tax-bond-series-faircliff-plaza-east-apartment-project/ No related data. © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. THE CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES CONSTITUTE THEIR CURRENT OPINIONS ON THE RELATIVE FUTURE CREDIT RISK OF THE ENTITIES, CREDIT COMMITMENTS, INDEBTEDNESS OR SECURITIES ASSOCIATED WITH INDEBTEDNESS, […]]]>


No related data.

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THE CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES CONSTITUTE THEIR CURRENT OPINIONS ON THE RELATIVE FUTURE CREDIT RISK OF THE ENTITIES, CREDIT COMMITMENTS, INDEBTEDNESS OR SECURITIES ASSOCIATED WITH INDEBTEDNESS, AND THE DOCUMENTS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, THE “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY FAILURE TO MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS WHEN DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE THE APPLICABLE PUBLICATION OF MOODY’S RATINGS SYMBOLS AND DEFINITIONS FOR MORE INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS COVERED BY MOODY’S CREDIT RATINGS. THE CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISKS, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“RATINGS”) AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACTS. MOODY’S PUBLICATIONS MAY ALSO INCLUDE MODEL-BASED QUANTITATIVE ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS ARE AND DO NOT PROVIDE ANY RECOMMENDATION TO BUY, SELL OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF ANY INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE CARE AND UNDERSTANDING THAT EACH INVESTOR WILL CAREFULLY MAKE HIS OWN RESEARCH AND EVALUATION OF EACH SECURITY THAT IS CONSIDERED FOR PURCHASE, HOLDING OR SALE.

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How to save money on student loans https://walkonmountain.com/how-to-save-money-on-student-loans/ Fri, 09 Sep 2022 16:23:00 +0000 https://walkonmountain.com/how-to-save-money-on-student-loans/ Whether your student loan is federal or private, there are steps you can take to save money. Getty Images/iStockphoto It’s no secret that student loans have become a major economic burden. Americans owe a combined student debt of $1.7 trillion. This is one of the reasons President Biden announced a public appeal student loan forgiveness […]]]>
Cash Graduate Cap
Whether your student loan is federal or private, there are steps you can take to save money.

Getty Images/iStockphoto


It’s no secret that student loans have become a major economic burden. Americans owe a combined student debt of $1.7 trillion. This is one of the reasons President Biden announced a public appeal student loan forgiveness program in August.

While the administration prepares for the application process, you can take steps now to try to reduce your costs under existing programs and practices, whether or not you qualify for that particular federal pardon program. And if you took advantage of the COVID-19 pandemic-related payment pause in federal student loan programs, you probably know that it ends on December 31, 2022.

That means it’s time to look for savings.

If you currently have a private student loan, the fastest way to save money is to refinance. Start exploring your options and start the process today.

There are, however, strategies that work for both private and public student loans. Whether you are looking to take out a student loan for the first time or look for ways to reduce your existing debt once payments resume, you have options.

Here are some of the best ways to save by loan type.

How to Save Money on Private and Federal Student Loans

  • Borrow only what you need. It’s always a good idea to review your long-term budget, but it’s especially helpful if you’re just starting to consider loans. Take a step back and consider what your loan should cover – and don’t underwrite more than that.
  • Configure automatic payment. Federal student loans and most private lenders offer a discount if you set up automatic payment. For federal loans, it’s 0.25% off the interest rate. Some private lenders offer an even bigger discount. Another advantage: automatic payment displays a good payment history, which helps your credit score.
  • Check if interest payments be tax deductible. The Internal Revenue Service (IRS) offers a tool to determine if the interest on your student loan can be deducted from your taxes. Deductions can be up to $2,500 for loans used solely for education.
  • Make additional or higher monthly payments. You can choose to make additional payments or higher payments that are slightly higher than your monthly statement. Be sure to specify that you want the supplement to go towards the main part of your student loan. Payments go to fees, then interest, then principal. This is how extra payments save you time and interest (if you tell the repairman to apply them to the principal). Be sure to check with your Federal Student Loans Servicer or private bank or financial institution to ensure that additional funds are applied correctly.
  • Check out student aid grants and scholarships. There are many grants that do not require repayment. You can also check scholarships and grants by state, field of study, group, or organization.

How to Save Money on Private Student Loans

  • Refinance or consolidate at a lower rate. If you have a good credit score (usually 670 or more), a steady job, money in an emergency savings account, and probably don’t qualify for federal aid programs, refinancing a private student loan may be a good option . Many lenders are looking for a debt to income ratio less than 50% to refinance a student loan. If you’re considering refinancing your loan, getting started is easy. Talk to a lender today and start saving.
  • Buy low fares. Private lenders offer variable rates, so shop around for the private student loan with the best terms. Be sure to do the math for the loan term to ensure you get the student loan that’s right for you.
  • Look for loan discounts. Look for discount offers such as waiving loan origination fees and other costs when determining which bank or financial institution can meet your needs. Don’t forget to do the math on the entire loan repayment as well as the monthly costs to make sure you’re really saving money overall.

How to Save Money on Federal Student Loans

  • Check forgiveness, cancellation and discharge options. In addition to the Biden administration’s new pardon program, there are many existing pardon and rescission programs. If you are approved, you will no longer be required to make student loan payments, including for those in military service and certain non-military government jobs. If you are permanently disabled or if the school where you received your public student loan is closed, you may be eligible for a student loan discharge.
  • Federal Student Loan Consolidation. Ultimately, consolidating your student loans can save you money and time. Although consolidating federal student loans generally won’t lower your interest rate, it will lock you into a fixed rate so your payments don’t change, providing stability. These direct consolidation loans can also help you qualify for a utility loan forgiveness.
  • Pay the interest on the loan while you’re still in school. This avoids compounding (when interest payments are rolled into the principal of your student loan, giving you a larger balance to pay off after your grace period ends). When interest on a student loan is capitalized, you pay more in the long run because you’re ultimately paying interest on a larger balance.
  • Carefully review loan repayment plans each year. There are several types of repayment plans, including those that reduce monthly payments based on income level. But beware, the balance can grow quickly due to interest compounding and you could end up owing more than the original loan amount.

Remember that different options apply to different types of loans – not everything applies to both. However, if you have private student loans, you can start the process of reducing payments by refinancing your loans now.

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UK taxpayer clinging to billions lost on Covid business loans https://walkonmountain.com/uk-taxpayer-clinging-to-billions-lost-on-covid-business-loans/ Mon, 05 Sep 2022 19:32:01 +0000 https://walkonmountain.com/uk-taxpayer-clinging-to-billions-lost-on-covid-business-loans/ More than £1billion in taxpayer-funded loans made under the UK government’s Covid ‘bounce-back’ scheme have been identified as potentially fraudulent, official data showed on Monday. UK banks have also claimed or received £3.8billion in public funds to cover defaults under the scheme – a sign of the vast sums that will be needed to cover […]]]>

More than £1billion in taxpayer-funded loans made under the UK government’s Covid ‘bounce-back’ scheme have been identified as potentially fraudulent, official data showed on Monday.

UK banks have also claimed or received £3.8billion in public funds to cover defaults under the scheme – a sign of the vast sums that will be needed to cover emergency loans to small businesses in the during the first months of the pandemic.

The data, part of a new bank performance dashboard on bounce back loans, revealed for the first time which banks were most at risk of default and fraud under the scheme. This will raise new questions about whether they should have done more to weed out fraudsters before granting state-guaranteed loans.

As new Prime Minister Liz Truss prepares a massive financial support package to help struggling households cope with soaring energy bills, the scale of the losses is also a reminder that the government is still covering the costs of the pandemic. .

Under the rebound scheme, government-backed loans worth more than £46billion have been given to businesses with only light eligibility checks to encourage banks to lend quickly.

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However, it is now feared that billions of pounds could be lost to fraudsters, with official estimates as high as almost £5billion.

Banks have come under fire from ministers for not doing more to stop fraud in the system and, more recently, for not suing businesses to recover taxpayers’ money.

Bank executives deny the charges, arguing they were simply following rules set by the Treasury to lend to troubled businesses as quickly as possible.

Of the £3.8bn earmarked to cover defaults, £1.2bn has already been paid out to banks by the Treasury, including around £263m covering suspected fraudulent loans.

Lenders have reported that loans worth a further £3.2bn are overdue and a further £1.4bn is now in default.

Government data also showed that £28.3bn of loans were repaid on time, while a further £4.7bn had been fully repaid.

Last weekend, Government Efficiency Minister Jacob Rees-Mogg wrote to Starling Bank asking how it would recover money lost under the scheme. Starling’s total value drawn under the scheme was £1.6 billion, of which more than £600 million is overdue, defaulted or has been claimed and settled. He identified £92m of suspected fraud.

Starling said he “has taken a strong and proactive stance to protect taxpayers’ money, as well as to support our customers and help them repay their loans.” He described “direct comparisons between Starling Bank and other lenders” as “difficult, given data limitations and the different characteristics of each lender’s customer base.”

Nearly a third of loans made by Tide, another online bank, have also been repaid under the guarantee, while around half of New Wave Capital’s loan portfolio has been settled.

More than £450m of the £1.4bn loaned by Metro Bank is also overdue, in default or has been claimed and settled.

Metro said that “although it is too early to draw concrete conclusions, we can see the data beginning to normalize and we expect Metro Bank’s position to align with our overall contribution to the BBLS program in the over time”.

He added that he “understands [its] responsibilities within the framework of the program and at all times respected the spirit and the rules of the program [taking] a rigorous approach to detecting fraudulent BBLS loan applications.

The largest amounts of suspected fraud were reported by Lloyds and Barclays, at £304m and £259m, respectively, but those banks also have two of the biggest lending books with rebound at £8.5bn of pounds sterling and 10.7 billion pounds sterling. Barclays, the biggest lender under the scheme, has also claimed or had its claims settled on more than £1bn of loans.

“We continue to proactively tackle BBLS fraud, and we are committed to identifying, escalating and recovering fraud within the programs – in line with government lending program requirements,” Barclays said.

Tide, Lloyds and New Wave Capital did not immediately respond to a request for comment.

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Research: Rating Action: Moody’s assigns Aaa/VMIG 1 to Cuyahoga Metropolitan Housing Authority Multifamily Housing Revenue Bonds, Series 2022 (Wade Park Apartments) https://walkonmountain.com/research-rating-action-moodys-assigns-aaa-vmig-1-to-cuyahoga-metropolitan-housing-authority-multifamily-housing-revenue-bonds-series-2022-wade-park-apartments/ Thu, 01 Sep 2022 16:41:25 +0000 https://walkonmountain.com/research-rating-action-moodys-assigns-aaa-vmig-1-to-cuyahoga-metropolitan-housing-authority-multifamily-housing-revenue-bonds-series-2022-wade-park-apartments/ No related data. © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. THE CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES CONSTITUTE THEIR CURRENT OPINIONS ON THE RELATIVE FUTURE CREDIT RISK OF THE ENTITIES, CREDIT COMMITMENTS, INDEBTEDNESS OR SECURITIES ASSOCIATED WITH INDEBTEDNESS, […]]]>


No related data.

© 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

THE CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES CONSTITUTE THEIR CURRENT OPINIONS ON THE RELATIVE FUTURE CREDIT RISK OF THE ENTITIES, CREDIT COMMITMENTS, INDEBTEDNESS OR SECURITIES ASSOCIATED WITH INDEBTEDNESS, AND THE DOCUMENTS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, THE “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY FAILURE TO MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS WHEN DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE THE APPLICABLE PUBLICATION OF MOODY’S RATINGS SYMBOLS AND DEFINITIONS FOR MORE INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS COVERED BY MOODY’S CREDIT RATINGS. THE CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISKS, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“RATINGS”) AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACTS. MOODY’S PUBLICATIONS MAY ALSO INCLUDE MODEL-BASED QUANTITATIVE ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS ARE AND DO NOT PROVIDE ANY RECOMMENDATION TO BUY, SELL OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF ANY INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE CARE AND UNDERSTANDING THAT EACH INVESTOR WILL CAREFULLY MAKE HIS OWN RESEARCH AND EVALUATION OF EACH SECURITY THAT IS CONSIDERED FOR PURCHASE, HOLDING OR SALE.

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MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stocks rated by MJKK or MSFJ (as applicable) have, prior to the assignment of any credit rating, agreed to pay MJKK or MSFJ (as applicable) for credit rating opinions and the services it renders a fee ranging from 100 000 JPY to around 550,000,000 JPY.

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The ‘final’ student loan break and Biden’s loan forgiveness plan https://walkonmountain.com/the-final-student-loan-break-and-bidens-loan-forgiveness-plan/ Sat, 27 Aug 2022 01:52:30 +0000 https://walkonmountain.com/the-final-student-loan-break-and-bidens-loan-forgiveness-plan/ [Editor’s Note: There are only a few weeks left to register for one of the top medical conferences of 2022. It’s PIMD’s Financial Freedom Through Real Estate Conference, and it’s happening September 23-25 in Los Angeles (and virtually). With several prominent speakers (like Peter Kim and WCI’s own Jim Dahle), you can learn how to pursue […]]]>

[Editor’s Note: There are only a few weeks left to register for one of the top medical conferences of 2022. It’s PIMD’s Financial Freedom Through Real Estate Conference, and it’s happening September 23-25 in Los Angeles (and virtually). With several prominent speakers (like Peter Kim and WCI’s own Jim Dahle), you can learn how to pursue financial freedom through real estate investing. It’s an event created by doctors for doctors and other high-income professionals who want to learn the high-yield information and techniques that will allow them to invest with confidence. Sign up for PIMDCON today and begin your journey to the life you’ve always wanted!]

By Andrew PaulsonCSLP, Lead Student Loan Consultant and co-founder of our partner site StudentLoanAdvice.com

The long-awaited day has finally arrived for the seventh student loan payment holiday and the announcement of $10,000 in student loan forgiveness. August 24, President Biden announced that student loan repayments have again been extended and will now begin in January 2023. This means status quo for another four months – no payments or interest. In addition, the administration granted $10,000 in student loan forgiveness to borrowers earning less than $125,000. It’s going to be met with a legal battle, and it’s sure to take some time to roll out.

The app is not out yet but you can subscribe to receive a notification for when this is the case here. Another income-based repayment option will also be offered.

Here’s everything you need to know about the latest student loan vacation extension and everything announced by the administration.

Extended student loan payment break

Federal student loans have been on hold since March 2020, and when this latest extension ends, there will be nearly three years of no payments or interest on your student loans. The president said it was the last break, but we’ve seen this movie before and I want to see a January 31 payout date before I start believing it.

I hope you’ve collected payment accounts for Public Service Loan Forgiveness (PSLF) or saved some money to throw into your loans if you plan to refinance privately. If you haven’t signed up for autopay yet, be sure to log into your repairer’s site and sign up.

Income certification for Income Contingent Repayment (IDR) plans was scheduled to begin in March 2023, but will likely be moved to later in the year. If the past is any indication of the future, revenue certification dates will be required six months (at the earliest) after payments resume.

More information here:

How to Guarantee Student Loan Forgiveness Through the PSLF Program

Widespread student loan forgiveness

President Biden is using his executive power under the HEROES Act to cancel student loan debt. The HERO Law was passed after 9/11 to extend presidential powers in times of national emergency. COVID-19, classified as a national emergency, was the catalyst for the use of the HEROES Act to cancel student loans. In 2021, the Trump administration reviewed the law and concluded in a memo that it failed to discharge student loan debt.

It is clear that Congress has the ability to cancel student debt, but there is no general consensus to do so. This is why the Biden administration looked into the HEROES Act and concluded in this legal note this Is have the ability to cancel student debt. Executive action will likely be challenged in court.

Borrowers whose annual income during the pandemic is less than $125,000 for individuals or less than $250,000 for couples who received a Pell grant in college will be eligible for a discount of up to $20,000 on their existing federal student loans. If you were not eligible for Pell Grants, you are eligible for relief of up to $10,000. Some households will be eligible for a rebate of up to $40,000. The amount of the canceled loans will not be federally taxed as income. However, there may be state taxes levied on this discount for those in a few states. You should consult a tax advisor for your particular state.

The income to use when claiming a rebate is the income you submitted on your last IDR form. Due to the pandemic, most borrowers have not certified their income since 2019 or 2020. If you are not yet enrolled in an IDR plan, you will need to declare your income on a simple request. Reading the tea leaves, I assume this is your 2020 or 2021 tax return, as the government has hinted at income during the pandemic. Whichever is lower is what you could submit.

Federal student loans eligible for forgiveness are Direct Stafford Subsidized/Unsubsidized, Direct Consolidation, Direct PLUS Graduate, Parent PLUS, and potentially some Federal Family Education Loans (FFEL). Perkins loans and private student loans will not be eligible.

biden vacation student loan forgiveness

The application to register for widespread loan forgiveness has not yet opened, but will be in the coming days. Here is the link to be notified when the application is available.

Here are some questions I still have (feel free to ask your questions in the comments, and I’ll answer them as best I can):

  • What if a borrower is married and earns less than $125,000 but has a high-income spouse who would push him above the $250,000 income threshold as a household and he files taxes married separately? While the government follows the pattern for most IDR plans when couples file MFS taxes, it only takes the adjusted gross income of the spouse who has student loans. Therefore, this borrower would qualify because they have an income of less than $125,000.
  • Will I be eligible for loan forgiveness while I’m still in school? There is no employment requirement to receive this pardon. All it takes is income below the threshold I mentioned earlier and current federal student loans.
  • If I take out loans now, will I be eligible for them to be forgiven? Probably not. The deadline will probably be this summer, such as June 30. There are people who will try to game the system. Don’t be surprised if IRS auditors try to track these people down.
  • Are Federal Family Loans for Education (FFEL) eligible? I think those held for commercial purposes will not qualify and those held by the Department of Education (ED) will. FFEL loans held for commercial purposes would require a direct federal consolidation be eligible.
  • Can this discount be targeted to my higher interest rate loans? Honestly, I have no idea at this point. We will update when we have more direction.

There are a lot of unknowns about how long it will take to implement and some background details. As these become available I will continue to update this post. However, most of you should not worry about this and change your overall student loan repayment plan. If you haven’t made a plan yet, be sure to check out WCI’s Student Loan 101 Guide or schedule a time with one of our student loan professionals.

More information here:

Managing student loans when both spouses are working

New Income Driven Repayment Plan

The new income-focused repayment plan is still in proposal form and will seek public comment. Implementation would likely not occur until mid to late 2023. This would now create the sixth IDR option for borrowers, which could further complicate repayment plan selection. But it seems to be particularly advantageous for undergraduate borrowers. Here is what was proposed:

  • Monthly payments will be calculated as 5% of Discretionary Income on undergraduate loans and 10% on graduate loans. Borrowers with both undergraduate and graduate loans will have a pro-rated payment percentage based on the percentage of their undergraduate to graduate outstanding debt.
  • The poverty level deduction used to calculate discretionary income will increase from 150% of the federal poverty level to 225%. A household size of 1 deduction (in the lower 48 states) would increase from $20,385 to $30,578.
  • The forgiveness will occur after 10 years of payments if you have loan balances of $12,000 or less.
  • If the monthly interest is not covered by your monthly payment, it will be covered by the government. Loan balances will not increase in this IDR plan when payments are less than interest. This applies to undergraduate loans and I’m not sure graduates will receive the same treatment. If they do, it could be huge for the residents.

There’s no mention of how spousal income will be treated, whether there will be a payment cap, or whether you need to qualify for partial hardship to enroll. After the proposal process, some details may change for this program. I will update this article as I learn more.

What about the PSLF exemption and the IDR exemption?

The Biden administration and the ED were pretty quiet on the PSLF waiver and made no mention of the IDR waiver. The PSLF waiver is due to expire on October 31, 2022, so you must do your paperwork before then if you want to qualify under the relaxed rules. There have been proposals to implement elements of the PSLF waiver into the current PSLF law. This consists of counting late payments, partial payments, deferrals and abstentions as a PSLF credit.

The first four years that borrowers were eligible for the PSLF, from October 2017 to October 2021, around 18,000 borrowers received it. Since July 2022, over 175,000 have received it. People are getting their loans forgiven, and it’s mostly older borrowers with FFEL loans.

pslf loan receipts

Is it time to refinance my student loans privately?

With the final payment paused, it’s time to get serious about privately refinancing your student loans. Borrowers who are not pursuing a federal loan forgiveness program should seriously consider refinancing their loans privately. Recently, refinance interest rates have started to stabilize, and they may look favorable for what you’re paying when payments and interest resume in January 2023. WCI, in partnership with our Approved Private Student Loan Lenders, has negotiated a cash bonus for any borrower who refinances their loans by December 31, 2022. And, if you refinance $60,000 or more, WCI will add our flagship finance course, Fire Your Financial Advisor: A Step-by-Step Guide to Creating Your Own Financial Plana value of $799.

Student loan programs will continue to change and we hope this process will become easier. Until then, I’ll continue to educate you on what you need to know and how to create your plan for dealing with your student loans. If you need personal advice, schedule an appointment with a member of our StudentLoanAdvice.com team.

What do you think of the student loan holiday break? Does it help or hurt you? Is this policy fair? Comments below!

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2 growth stocks down 80% and 93% that billionaires are buying on the downside https://walkonmountain.com/2-growth-stocks-down-80-and-93-that-billionaires-are-buying-on-the-downside/ Thu, 25 Aug 2022 11:22:00 +0000 https://walkonmountain.com/2-growth-stocks-down-80-and-93-that-billionaires-are-buying-on-the-downside/ Growth stocks have sold off strongly this year in response to high inflation and rising interest rates, but these macroeconomic forces have been particularly devastating in certain industries. For example, the fintech lender Assets received (UPST 0.75%) and e-commerce software publisher Shopify (STORE 2.52%) saw their stock prices plunge 93% and 80%, respectively. But some […]]]>

Growth stocks have sold off strongly this year in response to high inflation and rising interest rates, but these macroeconomic forces have been particularly devastating in certain industries. For example, the fintech lender Assets received (UPST 0.75%) and e-commerce software publisher Shopify (STORE 2.52%) saw their stock prices plunge 93% and 80%, respectively. But some billionaires were still buying the shares in the second quarter.

For example, Jim Simons of Renaissance Technologies increased his stake in Upstart and started a position in Shopify. Meanwhile, Bridgewater Associates’ Ray Dalio doubled down on Upstart, and Two Sigma Advisers’ David Siegel increased his position in Shopify.

Is it time to buy those growth stocks?

Upstart is on a mission to disrupt the credit industry

Upstart seemed unstoppable last year. It grew revenue 264% to $849 million in 2021 and generated GAAP profit of $135 million. But the story is quite different this year. High inflation has made lenders more hesitant to extend credit, and rising interest rates have deterred some borrowers from taking on debt. This led to downright disappointing financial results in the second quarter. Upstart saw its revenue increase just 18% to $228 million, and the company reported a GAAP loss of $30 million.

Despite these results, Upstart has nearly tripled the number of banks and credit unions on its platform, and these lenders have seen Upstart-powered loan returns that consistently meet or exceed expectations. Investors still have reason to be bullish on Upstart as its disruptive approach to lending appears to be taking hold.

Traditionally, lenders have made credit decisions with relatively limited amount information. Even the most sophisticated credit models often incorporate no more than 30 variables, and this lack of data leads to poor decisions. Some creditworthy applicants are turned down, and others pay too much interest to subsidize borrowers who inevitably default (i.e. those who should never have been approved).

To address these inefficiencies, Upstart takes an entirely different approach. Its platform captures over 1,500 data points per requestor and uses machine learning (a type of artificial intelligence that improves over time) to measure those data points against past refund events. This theoretically allows Upstart to quantify risk more accurately, leading to lower loss rates for lenders. At this point, data provided by the company does indeed suggest that its machine learning models predict risk more accurately than traditional credit models.

As a caveat, Upstart’s software has not been tested during an economic downturn, which means the current environment – runaway inflation and rising interest rates – is uncharted territory. And the sharp deceleration in income means some lenders are worried. Upstart’s future success depends on its ability to allay these concerns by quantifying risk more accurately than traditional credit models throughout the current recession.

That being said, Upstart’s machine learning models appear to be a competitive advantage (at least in a favorable economic environment), and the company pegs its addressable market at $1.5 trillion in trading volume, leaving plenty of room for growth. With stocks trading at a relatively low price of 2.5 times sales, I think it’s worth building a small position in this growth stock at this time.

Shopify works to simplify commerce

Shopify has struggled alongside the wider retail industry this year. High inflation has forced consumers to prioritize basic necessities like food and fuel over discretionary purchases, and the impact of this trend has been amplified by the deceleration in online shopping following the pandemic.

Unsurprisingly, Shopify delivered a disappointing second quarter financial performance. Revenue rose just 16% to $1.3 billion and the company generated an operating loss of $190 million. That being said, Shopify remains the leading e-commerce software platform in terms of market presence and user satisfaction, and it has continued to gain market share in both online and offline retail sales in the States. States in the second quarter. Additionally, investors have good reason to believe that Shopify will continue to capitalize on the growing adoption of e-commerce globally, a market that is expected to reach $5.5 trillion this year.

Shopify is already the retail operating system for over 2 million businesses. Its software simplifies omnichannel commerce by allowing merchants to manage sales across physical and digital channels from a single location. This includes popular online marketplaces like Amazon and Etsyand social media like Metaplatforms‘Facebook and Instagram. But this also includes direct-to-consumer (DTC) websites. This distinctive trait is especially important because DTC business models give merchants more control over the shopper experience, which in turn builds lasting relationships with customers.

Shopify also provides value-added solutions such as payment processing, fund management accounts, and cross-border commerce tools. Merchants can also access thousands of third-party integrations through the Shopify App Store, including payroll, marketing, and enterprise resource planning tools.

Even better, Shopify recently completed its $2.1 billion (cash and stock) acquisition of logistics service provider Deliverr, a move that will accelerate the building of the Shopify Fulfillment Network (SFN). This could ultimately help Shopify compete more directly with Amazon, as DFS will allow Shopify merchants to offer next-day and two-day shipping to shoppers across the United States. Management expects the project to reach full scale in late 2023 or early 2024.

Currently, Shopify shares are trading at 8.7 times sales – a real bargain compared to the five-year average of 30.1 times sales. And given its strong presence in a large and growing market, I think it’s worth buying this downside growth stock.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a board member of The Motley Fool. Trevor Jennewin has positions at Amazon, Etsy and Shopify. The Motley Fool has positions and recommends Amazon, Etsy, Meta Platforms, Inc., Shopify, and Upstart Holdings, Inc. The Motley Fool recommends the following options: $1140 Long Calls January 2023 on Shopify and 1160 Short Calls $ in January 2023 on Shopify. The Motley Fool has a disclosure policy.

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Research: Rating Action: Moody’s Assigns Aaa/VMIG 1 to Illinois Housing Development Authority Multi-Family Dwelling Tax Bonds Series 2022 (Ogden Commons) https://walkonmountain.com/research-rating-action-moodys-assigns-aaa-vmig-1-to-illinois-housing-development-authority-multi-family-dwelling-tax-bonds-series-2022-ogden-commons/ Tue, 23 Aug 2022 20:06:38 +0000 https://walkonmountain.com/research-rating-action-moodys-assigns-aaa-vmig-1-to-illinois-housing-development-authority-multi-family-dwelling-tax-bonds-series-2022-ogden-commons/ No related data. © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. THE CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES CONSTITUTE THEIR CURRENT OPINIONS ON THE RELATIVE FUTURE CREDIT RISK OF THE ENTITIES, CREDIT COMMITMENTS OR INDEBTEDNESS OR SECURITIES ASSOCIATED WITH […]]]>


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5 ways to avoid falling behind on your personal loan repayments https://walkonmountain.com/5-ways-to-avoid-falling-behind-on-your-personal-loan-repayments/ Fri, 19 Aug 2022 16:32:46 +0000 https://walkonmountain.com/5-ways-to-avoid-falling-behind-on-your-personal-loan-repayments/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Falling behind on a personal loan repayment […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Falling behind on a personal loan repayment can have a devastating effect on your credit. These 5 tips can help you avoid that. (Shutterstock)

When you take out a personal loan, you are committing. You agree to make a payment each month until you have repaid the loan, plus interest. Failure to do so can have serious consequences.

Falling behind on your personal loan payments can seriously hurt your credit score, making it harder to borrow money in the future. Your debt could also be sent to collections, or you could face legal action to recover the money. Here are five strategies you can use to avoid these situations.

If you are considering a personal loan, Credible allows you to see your prequalified rates from various lenders, all in one place.

1. Borrow only what you need

When you take out a personal loan, you can choose how much to borrow. Some personal loan companies offer loans of up to $100,000.

But think carefully about what you need the money for before committing to a loan. Borrow only what you need, because the more you borrow, the more you have to pay back. Larger loans require larger monthly payments, which can become difficult to manage.

2. Create a budget

A budget is a plan that brings together all the ways your money comes in and where it goes out. It will show you how much you spend each month, how much you earn and how much you save. It can also show you how much leeway you have to add another debt payment – your potential future personal loan.

Start by gathering all your bills, payslips and bank statements. Write down how much you earn each month, as well as your fixed expenses (like rent or mortgage payments), loan payments, and utilities. Divide other expenses into categories, such as groceries or entertainment. Look at where you’ve spent money in the past and assess if there are areas where you could spend less. You can set a goal for each type of expense for your budget in the future.

When working on your budget, be sure to include a savings category. If you are able to build up your savings, you may not need to take out a loan to cover a later expense.

With this budget in hand, you can more easily see how a potential personal loan repayment would fit in with your other monthly expenses and whether you have enough income to cover it. This can help you avoid any problems with late repayment of a loan before it even begins.

A personal loan can be a great way to consolidate high-interest debt and keep your budget on track. Visit Credible for compare personal loan rates from various lenders, without affecting your credit score.

3. Pay more than the minimum

After getting a personal loan, you will have a required monthly payment, but you can also choose to pay more than this amount if you have extra cash in your budget. This can help you pay off your loan early, reducing your total interest costs.

But make sure your personal loan has no prepayment penalty. Some lenders charge a fee if you repay your loan early. The best personal loans do not have prepayment penalties.

4. Sign up for automatic payment

Autopay is a service offered by many lenders that will automatically withdraw your loan payment from your bank account on the due date. This will help you avoid missing loan payments. In many cases, you can get a discount on your interest rate by signing up for automatic payments.

With automatic payment, you have to be more attentive to your bank account balance. The lender will likely charge you an insufficient funds fee if you don’t have enough in your account to cover the payment by the due date.

5. Consolidate all your debts

If you have a number of different debt payments due each month, it’s easy for just one to slip through the cracks. You can consider consolidating your debts — such as credit cards, medical bills, and personal loans — to help you better manage all of your obligations. You might even be able to reduce the total amount you pay if you can get a lower interest rate on a consolidation loan than you pay on average with your checking accounts.

A personal loan is a good way to consolidate your debts, especially credit card balances. Personal loans typically have lower interest rates than credit cards, and they can give you a specific end date for when you’ll finally get out of debt.

If you choose to consolidate your debt, follow these steps:

  1. Take stock of your debt. Collect all your bills and account information. Write down your monthly payments, the interest rate on your loans, and the due date of your payments. Add the outstanding balances. This will tell you how much you will need to borrow to consolidate your debt.
  2. Check your credit score. Your credit score is an important factor in the interest rate you will receive on a personal loan to consolidate your debt. The better your score, the more lower your interest rate will be. With bad credit, you may have fewer loan options. Request your credit reports from the three major credit bureaus, which you can do for free using a site like AnnualCreditReport.com. Review the reports and make sure there is no incorrect information, such as accounts listed as overdue that are in fact current.
  3. Shop around for a loan. Request quotes from several different lenders. In many cases, you can get a personal loan offer without negatively affecting your credit score. When you get quotes, make sure they offer enough to consolidate all your debts. Find a lender who offers you a low interest rate and a loan term long enough to keep your monthly payment manageable.
  4. Apply for a loan. When you have found the best lender for your situation, they will give you instructions on how to proceed with a complete loan application. You may need to provide documents proving your income and assets, such as bank statements and payslips.
  5. Use the loan to pay off your debts. Once your application is approved, the lender will disburse your loan funds, usually by direct deposit to your bank account. You can use this money to pay off all your current debts. In some cases, your personal loan company will pay them back for you, so ask if your lender offers this option.
  6. Keep paying your debts until you know they’ve been paid. It’s important not to miss a payment because you thought the debt was paid off. Get confirmation that your debt is satisfied before you stop paying those bills.

If you’re ready to apply for a personal loan to consolidate your debt or cover another expense, Credible lets you compare personal loan rates so you can find the one that best suits your needs.

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