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Small businesses usually go through a lot of rigorous processes with traditional financing options. From high decline rates and long waiting periods to complicated approval processes and spending restrictions. As such, they do not have access to the funds necessary to move from being a small business to one of the top companies in their industry. However, Merchant Cash Advances is a financing option available for small businesses that put this problem at ease.

What are Merchant Cash Advances?

Here’s the short explanation: using merchant cash advances, small businesses can have cash deposited directly into their bank accounts without the rigor of endless wait times. It is similar to a fast cash advance as companies can have instant access to working capital needed to scale their organizations. How does this work? With this funding option, the business owner will sell a portion of its future credit card revenue. However, this will be at a discount, and the recipient will be an MCA firm. This is not a loan, so you don’t need any personal guarantees. Merchant Cash Advances have since evolved beyond cash deposits in exchange for future credit card revenue. Now, it involves different small business financing options but with payment terms as short as 24 months and smaller regular payments. To qualify, your business should have been active for at least 6 months, make $5000 in credit sales monthly, and have no open bankruptcies within the last year.

Why Merchant Cash Advances are great

• With Merchant Cash Advances, repayments can be made on each business day instead of larger monthly payments that could put a stretch on your business finances

• There are shorter payment terms with merchant cash advances compared to traditional bank loans

• Most loans require your business to be active for several years before building up a credit score that could be considered. However, with merchant cash advances, there is no minimum credit score necessary for qualification. Also, businesses that have been in operation for as little as 3 months can be considered for this funding option.

• A merchant’s payment to the merchant cash advance provider will correlate with the business’ sales volume. This means that you wouldn’t be faced with excessive payments even during a slow season. This option lets a small business owner have more flexibility to manage their cash flow so that the business can thrive.

• Merchant cash advances are processed faster than traditional loan options. Small businesses can have quicker access to capital and cut off unnecessary wait times.

• Bad credit is not a hindrance to getting merchant cash advances as the qualification of your small business will be based on the credibility of the merchant cash advance company involved.

• You can get the required funding for your small business in as little as a week, with no collateral needed.

• This is beneficial for businesses like restaurants and others in the retail and service industry.

At some point, small business owners will have to expand their financial assets to have access to more opportunities for the growth of their company. However, instead of being deterred by increased requirements by traditional loan options, you can rely on external funding like the merchant cash advance to make this a reality despite the lack of physical cash.

What can you do if you have a warehouse filled with unsold inventory, but you need some extra money? Well, you can take advantage of an e-commerce inventory loan. Inventory is super important in any business that depends more on products than services. If you want to keep your customers happy and make sure your business continues to run smoothly, you have to ensure your inventory is in proper condition. However, no matter how profitable your business is, it wouldn’t hurt to have access to extra funding options that are hassle-free. So, let’s talk about e-commerce inventory loans.

What is an e-commerce inventory loan?

This is a loan option based on the value of the items in your inventory. This could be some or all of your inventory assets. However, a business can use an e-commerce inventory loan as a short-time line of credit for purchasing its inventory. This inventory will then be used as collateral for your loan. What makes this so great? Well, retail businesses that have to pay suppliers for stock that will remain stored for some time can use inventory loans to smooth out the effects that seasonal fluctuations could have on cash flow. This means that your business can have access to extra inventory on demand leading to higher sales volume as you meet up with product requests promptly. Using your inventory as collateral can help keep your shelves always stocked up when there is high demand, or you need to buy higher quantities at a discounted rate.

Factors to consider when taking inventory loans

• E-commerce inventory loans are great for wholesalers, distributors, and manufacturing companies that have reliable financial statements combined with marketable raw materials. This will ensure that you are not stuck with unsellable products in your inventory that could lead to long-term issues. You should also have a verifiable sales history, a detailed inventory system, and be in business for at least a year to qualify.

• You need to pay attention to the loan term and financing agreement. If you believe that your inventory will have a faster turnover time, you should opt for the shorter loan term for your business. However, longer loan terms are better if you think your inventory will take a little longer before getting sold out. As the loan terms are quite different, you have to read the fine print in detail and calculate the total cost of the loan before signing the contract. This will ensure that you don’t apply for a loan that would affect the financial integrity of your business

Benefits of e-commerce inventory loans

• No lengthy processes are necessary. To get access to this funding option, all you have to do is fill a free application form and follow the procedures required to qualify

• You can use inventory loans to stock up on more inventory as you look forward to subsequent sales

• With inventory loans, you can take advantage of opportunities limited to a specific time frame or off-season discounts.

You can take advantage of e-commerce inventory loans to ensure that your business has a steady cash flow both on and off-season.

If you need a reliable and hassle-free funding option for your real estate investment deals, then hard money loans are perfect for you. Who says you only have to rely on your money to make more money? As a smart real investor, you can get access to the best hard money loans from reliable lenders. With this loan, you can leverage the capital gained from other funds and use it for more transactions. Of course, this would mean an increase in profits and the efficiency of your investment profile. Although the interest rates are usually higher than conventional funding methods due to shorter loan durations, it is mostly worth it, given their fast approval time and less extensive documentation procedures. Hard money loans are categorized into residential rental property and commercial real estate loans.

Residential Rental Property Loans

Hard money loans for residential rental properties are great for investors who would like to build their wealth using the cash-flow of residential properties. It also has unique benefits which include:

• Loan terms as long as three years. There is also an option to refinance your loans for as long as 20 years

• The financing covers as much as 100% of the purchase price and repairs based on your unique situation

• An annual percentage rate as low as 8% for the first 12 months

• Loan refinance option at an annual percentage rate of 7.5% after a maximum of 24 months of ownership

• You can get approval for your residential property hard money loans in as fast as a week with funding that requires no income verification.

• Hard money loan amounts for residential properties could start from as low as $50,000

Commercial Real Estate Loans

You can also gain access to short term and long term commercial loans with this option. Loans range from as little as $50,000 to as much as $100,000,000. With commercial hard money loans, you can get the needed funding to invest in commercial properties, including hotels, office spaces, apartment buildings, churches, and so much more. You can even use this hard loan to finance new construction, whether you’re a beginner in the investment world or an experienced real estate investor. It also has unique benefits which include:

• Hard money loan amounts for commercial properties could start from as low as $10,000

• With hard money loans, you can be able to close in as fast as 21 days.

• The annual percentage rate ranges from 6% to 13%, which is quite convenient.

So, if you have real estate projects that could last for as long as a few years, hard money loans could give you the needed boost through its accessible funding options. It also encompasses distressed financial situations due to bankruptcy or arrears on an existing mortgage. Only your collateral, which should have sufficient equity, is considered for your business to qualify for this loan. This is definitely an excellent lending option for real estate investors as you can get more points based on your credit history and comes with the flexibility to complete your investment projects quickly. It is also very secure, so you are in good hands.

SBA loan, more commonly known as the SBA 504 loan, was created from Section 504 of the Small Business Investment Act enacted in 1958. The Small Business Administration loan operates in the United States as a financing option for purchasing fixed assets like machinery and real estate at a price lower than market rates. The purpose of this loan from a federal agency is to support and encourage the development of small businesses across the country. Since it was formed more than 50 years ago, it has since gone on to deliver more than 20 million loans and other forms of assistance to small businesses. It remains one of the most reliable sources of funding for small businesses, and this SBA loan is offered through multiple financial institutions.

What can you use SBA loans for?

SBA loans are usually tailored to your specific capital needs to ensure that you have the right amount of funds for your growing business. Therefore, here are some ways you can put SBA loans to good use. You can have access to this loan for franchise financing, equipment, renovations, business start-ups or acquisitions, debt refinancing, and so much more. If your business is a real estate investment firm, a dealer in rare coins, involved in lending activities, a charitable institution, or engaged in a pyramid sales plan, then you won’t be considered as eligible.

How it works

To qualify for an SBA loan, you have to meet the definition of small business according to the SBA’s criteria. You must also plan to use more than 50% of the property for your business operations within a year of ownership. US citizens or permanent residents who wish to qualify for an SBA loan must also have majority ownership of both operating and holding company. Other eligibility criteria include:

• For the preceding two years, your company’s average net income must not be above $5 million after taxes

• The size of your intended project must be larger than the personal, non-retirement, unencumbered liquid assets of the principals

• As a small business owner, you must not have a tangible net worth higher than $15 million

An SBA loan has three partners, which include the borrower, a regulated lender, and a CDC. The borrower is expected to contribute 10% of the total project cost. On the other hand, the regulated lender lends 50% at their rate and term, which should be at least ten years and has a first lien on the financed assets. Finally, the CDC has the second lien and lends 40%. Here are some key points to note about SBA loans:

• Most SBA loans are for real estate with the CDC’s loan being for twenty years at a fixed interest rate

• The fully amortized rate for loans change based on the rate for the 5-year and 10-year US treasury issues at that time

• Funds for SBA loans are raised at a monthly auction of debentures. Therefore, they are 100% guaranteed by the government and safe to use for your small business financing.

• The SBA loan term is ten years for financing long-lasting fixed equipment such as manufacturing equipment, printing presses, etc.

To get access to proper SBA loans from reliable lenders, you need to work alongside top funding solutions company who will bridge the gap and have the necessary experience to make the process as smooth as possible.

A business line of credit offers more flexibility than a term loan. With a term loan, you will be given a one-time amount of money upfront. Then, you will be required to repay it over a fixed term. However, a business line of credit is more versatile. You can reuse and repay a business line of credit as much as possible. The important thing here is that your payments should not exceed your credit limit, and they should be paid on time. You can also enjoy the option of repaying your full balance early, a move that will save you on interest costs.

How does a business line of credit work?

A line of credit borrowing limit could start from as low as $1000 and get to a maximum limit of $250,000. They are usually smaller than the borrowing limits of a term loan. However, with business lines of credit, you don’t need any collateral, such as inventory or real estate, for lower credit limits. So, how can you qualify for a business line of credit? Here are the typical requirements for banks:

• As with most traditional lenders, you need to have a business that brings in a healthy level of revenue. Alternatively, you should have some years of history that will ensure you qualify for a business line of credit

• For more significant lines of credit, you may need to get collateral that can be possessed by the lender if you default on payments.

• Relevant documents for your application include your business financial statements, such as a balance sheet and profit-and-loss statements. You should also include your bank account information, business tax returns, and personal tax returns.

Online lenders have less stringent qualification criteria compared to banks. To qualify for a business line of credit, yourbusiness should have a minimum operating life of six months. It should also bring in a minimum of $25,00 in revenue yearly. Some lenders don’t have a minimum credit score, but you should aim for a score of at least 500. Your business can be in any industry.

Getting a business line of credit through business credit cards

Compared to the traditional business line of credit, business credit cards have several differences. With a business line of credit, you have access to actual cash in your bank account and a higher credit limit. However, if you wish to get your money through a business credit card, then you may have a higher annual percentage rate with fees as well. These fees include late-payment fees and yearly fees. You should consider using business credit cards if you are a new business with no established finance or have small ongoing expenses.

On the other hand, a business line of credit will be a better option for you if you have mature businesses and more significant ongoing expenses. Similar to personal credit cards, there are rewards or cashback when you spend on your business credit cards. These rewards could be tied to business expenses such as cable, gas, office supplies, and the internet. Business credit cards could also give you access to 0% interest promotions. With this, you won’t pay interest on your balance for some time after you sign up for your business credit card.

If you desire flexibility when searching for small business loans, you can find this with a business line of credit.

A commercial loan is usually gotten on commercial real estate properties. So, what qualifies as commercial real estate? This includes income-producing real estate that serves as a place of business, including hotels, apartments, and offices. From this, you can tell that this means that commercial real estate loans are valid for only business entities formed for the sole purpose of operating as commercial real estate. Commercial real estate loans can then be used for the construction, acquisition, and development of these properties.

How does this work?

Several capital sources are actively involved in providing commercial loans. This includes but is not limited to private investors, independent lenders, insurance companies, pension funds, and other capital sources. However, they have different terms and levels of risk compared to residential lenders. Here are some key factors to take note of:

• Commercial loans are usually shorter than the typical 30-year fixed-rate mortgage standard with residential loans. It could have a loan term ranging from four years to twenty years.

• The commercial loan has an amortization period that is usually longer than its loan term. This means that a lender can give a commercial loan with a term of five years and a 25-year amortization.

• During your commercial loan term, you will be required to make monthly payments, and this would be determined as if you’re paying the loan over the agreed amortization period. This will then be followed by one final payment that consists of all the balance on your loan.

• Before being approved for a commercial loan, the lender will consider the nature of the property being purchased and your creditworthiness. They will also take a look at your financial statements spanning five years, financial ratios, debt-service coverage ratio, and income tax returns. This will help in evaluating your commercial loan accurately.

• Down payments for commercial loans could be as much as 30% of the purchase price, which is more expensive than residential loans. This is also the same with interest rates, which could be quite steep.

Types of commercial loans

Commercial loans have three major types, and these are:

• Permanent loans: These are commonly the first mortgages on a commercial property that have a term of at least five years and some amortization

• SBA loans: These are loans guaranteed by the Small Business Act (SBA) to be used by traditional and non-traditional lenders. There are several types of SBA loans, but the most popular one is the 7(a) loan.

• Bridge loans: These are also first mortgages on a commercial property like permanent loans. However, they have a short term, which ranges from six months to three years. You can take a bridge loan while waiting for financing with longer terms.

How would you know that a commercial loan is right for you? Well, if your reason for this loan is to finance your real estate property, which is strictly for business purposes, then you can opt for commercial real estate loans. You should also ensure that you are creditworthy by meeting the necessary requirements.

In the world of insurance, a book of business is a client relationship management tool that contains all the insurance policies of insurance companies. With this, insurance companies can always keep track of all subsequent coverage obligations and policyholders that will help them make relevant business decisions to foster progress. With this Book of business, insurance companies can also use information gotten about the areas that are generating a lot of revenue to determine how to approach their market. Using this, they can align their clients with their top products to create future policies that will grow the company. All in all, a book of business is basically that information grid that helps insurance companies follow up on customer service and use their customer data accurately.

So, what are Book of business loans?

With Book of business loans, insurance agents have access to long-term funding with low-interest. They are only required to use their renewable commissions as collateral. Book of business loans is excellent as you can be approved for as long as 10 years for a line of credit on your insurance business. Even an insurance company with an average credit score can qualify for this as all that is really required is the Book of business of renewable commissions.

Why are Book of business loans great?

With Book of business loans, all you need is a trustworthy and competent lender to get approved for your Book of business loans. Here are the typical features of Book of business financing:

• Book of business loans is excellent for customized financing, launching new marketing initiatives, upgrading your company technology, buying books of business, and acquiring an agency.

• The Book of business financing doesn’t typically include a rigorous approval process. You can be approved with a personal credit score of as low as 620 as long as you have a viable book of renewable commissions for your insurance agency.

• For your application process, you need a breakdown of your renewable commissions and a completed application form.

Tips on Book of business financing

To ensure that you have a smooth book of business loan process, here are some tips to help you:

• There is a minimal chance that your financing request will get approved by traditional lenders. Therefore, you need to ensure that when searching for lenders, you opt for specialized lenders who have an impressive track record of working with insurance agency owners

• With niche lenders, you will have access to a funding company that understands how to use the Book of business as an asset to secure your loan successfully.

• When you receive loan offers, don’t be in a rush to accept them. Instead, examine each one thoroughly to determine which is the best option for your budget, timeline, and situation.

• The value that the lender places on your Book of business as collateral will have a considerable impact on your repayment terms, loan amount, and internal fees. So, ensure that this is as straightforward as possible.

With Book of business loans, insurance companies can have access to the required funding to help their business thrive in its industry.

Account receivables are perfect for you if you have a small business that needs working capital, especially if your clients are commercial businesses that delay payment for too long. With account receivables, you can fuel your business with an advance of more than 90% of the amount on your invoice when your job is completed. This is called invoice factoring. So, let’s dig deep and discuss what this is about.

What can you do with Account Receivables?

When clients have ordered your services or goods but haven’t paid for them, account receivables act as a legally enforceable claim on that payment being held. This is usually by raising an invoice and delivering this to your client for payment within a specifically agreed time frame. In your balance sheet, this will be displayed as an asset. This is as opposed to notes receivable, which involve the creation of debts through promissory notes. Therefore, what’s so great about account receivables is that you can use this as collateral for asset-based loans. This can be through an exchange or factoring. When the invoice is generated and delivered to your clients using account receivables, you will be able to meet up with increasing demand for your services without the need to create any new debts. The company in charge of your account receivables will pay in two installments. The first is for a considerable chunk of your receivables to ensure cash flow and the subsequent payment made when the client settles their invoice. Here is how it works:

• Submit your small business details to the invoice factoring company to determine eligibility and your quote

• Once approved, the factoring company will give an advance of the money

• This company will then be in charge of collections on the invoice from your clients

• As soon as the invoice has been collected successfully, you will be paid the balance fee.

Why you should consider invoice factoring

The most obvious answer to this is that your business will have faster access to funds with no interruption in your incoming cash flow. When payment terms have gaps of as long as 120 days, this can significantly affect your business cash flow negatively. However, invoice factoring provides a useful solution with the following advantages:

• With invoice factoring, you have a safe source of cash flow through your account receivables

• Your working capital will not be tied in unpaid invoices and slow down your work operation

• You don’t have to spend so much time chasing late payments or on administrative duties as the invoice factoring company will take over the collection of debts and management of credit control. You will be able to focus more on improving your services and providing a fantastic customer experience.

• Compared to equity investors, factoring is much more affordable

• The use of invoice factoring companies has been shown to significantly improve your client’s payment times

• With invoice factoring, you have better cash flow control even when there are different credit terms for your customers.

One of the best moves you can make to ensure constant access to your working capital is to get in touch with a reliable invoice factoring company today.

Account receivables are perfect for you if you have a small business that needs working capital, especially if your clients are commercial businesses that delay payment for too long. With account receivables, you can fuel your business with an advance of more than 90% of the amount on your invoice when your job is completed. This is called invoice factoring. So, let’s dig deep and discuss what this is about.

What can you do with Account Receivables?

When clients have ordered your services or goods but haven’t paid for them, account receivables act as a legally enforceable claim on that payment being held. This is usually by raising an invoice and delivering this to your client for payment within a specifically agreed time frame. In your balance sheet, this will be displayed as an asset. This is as opposed to notes receivable, which involve the creation of debts through promissory notes. Therefore, what’s so great about account receivables is that you can use this as collateral for asset-based loans. This can be through an exchange or factoring. When the invoice is generated and delivered to your clients using account receivables, you will be able to meet up with increasing demand for your services without the need to create any new debts. The company in charge of your account receivables will pay in two installments. The first is for a considerable chunk of your receivables to ensure cash flow and the subsequent payment made when the client settles their invoice. Here is how it works:

• Submit your small business details to the invoice factoring company to determine eligibility and your quote

• Once approved, the factoring company will give an advance of the money

• This company will then be in charge of collections on the invoice from your clients

• As soon as the invoice has been collected successfully, you will be paid the balance fee.

Why you should consider invoice factoring

The most obvious answer to this is that your business will have faster access to funds with no interruption in your incoming cash flow. When payment terms have gaps of as long as 120 days, this can significantly affect your business cash flow negatively. However, invoice factoring provides a useful solution with the following advantages:

• With invoice factoring, you have a safe source of cash flow through your account receivables

• Your working capital will not be tied in unpaid invoices and slow down your work operation

• You don’t have to spend so much time chasing late payments or on administrative duties as the invoice factoring company will take over the collection of debts and management of credit control. You will be able to focus more on improving your services and providing a fantastic customer experience.

• Compared to equity investors, factoring is much more affordable

• The use of invoice factoring companies has been shown to significantly improve your client’s payment times

• With invoice factoring, you have better cash flow control even when there are different credit terms for your customers.

One of the best moves you can make to ensure constant access to your working capital is to get in touch with a reliable invoice factoring company today.

When it comes to getting funding for your small business in any industry, opting for traditional methods is not always the best move. Visiting the bank for loans means longer approval times and higher interest rates. However, opting for Rollovers for Business Start-ups (ROBS), also known as 401(k) business financing, allows you to finance your business without risking your property as collateral or even an excellent credit score. ROBS involves tapping into your retirement funds and using this to finance your business. The best part is that this is absolutely tax and penalty-free. This is almost too good to be true, so let’s discuss it in detail.

What are Rollovers for Business Start-Ups?

This is a funding solution for small businesses and franchises. You can use your IRA, 401(k), or any of your retirement accounts that are eligible as capital for your business. With ROBS, those younger than 60 won’t incur an early withdrawal fee or tax penalties. Why would you need ROBS? If you don’t have physical cash to buy your business as an entrepreneur and you don’t qualify for a business loan, then you can opt for ROBS, which protects you from going into debt or taking the risk of using your assets as collateral. It’s your best option if you have $50,000 or more saved in your retirement fund and wish to grow it by investing in your entrepreneurial dreams.

Benefits of ROBS 401(k)

It’s entirely possible that ROBS is quite unlike any business financing methods you have heard about as it is 100% debt-free. For those crucial first few years of your business, you will be able to focus on growing it and increasing your cash flow without the burden associated with monthly loan payments. However, this is not the only benefit associated with ROBS as there is more:

1. More control of your future

With ROBS, your retirement funds are completely in your control to use in creating the life you want and on your terms, too. You may not need the services of stockbrokers or financial advisers.

2. Starting your business debt-free

There is that extra peace of mind that comes with starting up your business without worrying about interest payments. This means that you have the liberty to reinvest more cash as you grow your business because there is no pending debt repayment.

3. No collateral necessary

With ROBS 401(k) business financing, you can get access to the funding you need as fast as possible without using your personal property as collateral. This is a risk that you will be able to avoid completely with ROBS 401(k) business financing.

4. Avoid tax-penalty

ROBS offers tax-deferred savings that keeps you away from tax-penalty that is typical for withdrawing retirement funds early. Instead, you won’t have to waste a single penny on unnecessary penalties as all your funds will be available for use. Since it’s not a loan, it doesn’t require any monthly payment with interest.

ROBS is not a popular financing method as most entrepreneurs don’t consider it as their first option. It is excellent for both retail and wholesale businesses. However, with a reliable funding company, this has substantial positive prospects and could launch you into the entrepreneurial world on a golden horse.

Your credit score reveals to lenders and creditors how risky it is to approve your loan or line of credit. You are about to get a loan from someone who doesn’t know you personally. Therefore, they have to review your past payment history to be sure that they can trust you with the funds. The most widely used credit score is FICO, which usually falls between 300 and 850. Anything higher than 750 is considered excellent credit, but a score of 600 or less makes it a huge credit risk. Here are 7 easy things you can do right away to increase your credit score:

1. Pay your bills on time

Your payment history is usually the first place lenders check to determine your credit score. It represents as much as 35%, which shows its level of importance. When you don’t pay bills on time, this could harm your credit score.

2. Pay more than you owe

For every outstanding debt balance, pay much more than you owe, and this could reduce your overall debt burden. This will also help you pay off your balances faster. When you have more than a debt balance, pay substantial amounts into one account first before paying the minimum on others. This will help you reduce the balance one at a time and is usually effective.

3. Make sure you have the correct information on your credit report

Your credit report should always be accurate and up-to-date. It is one of the best steps in increasing your credit score. You can get your credit report via several online services. However, be careful during your search to avoid being lured into paying for unnecessary services.

4. Reduce your debt-to-income ratio

This refers to the measure of your monthly debt payment versus your overall income. Lenders use your debt-to-income ratio to measure your ability to pay off debts while managing your monthly income. When it's low, the lenders will know that there is a minimal gap between the amount of debt you have and the amount of income you earn.

5. Keep a long credit history

Your credit history takes into account the strength of your credit score. With your credit history, the average age of your different lines of credit, credit cards, and loans will be taken into account. With a long credit history, the lender will have more information to use in assessing your creditworthiness.

6. Don't apply for too many credits

Be careful when applying for many new credits, especially if you don't need them. Every time you apply for a new credit account, lenders do a hard credit check. Too many hard credit inquiries can harm your credit score.

7. Become an authorized user

This simply means that you should become an authorized user on the credit card account of a trusted person. As soon as you become an authorized user, their payment history will also appear on your credit report. A positive payment history increases your credit score.

With these 7 easy tips, you can get started on the right ways to increase your credit score.

Going through a divorce with someone you once had close ties with is usually a difficult process. However, this becomes very necessary when a union is clearly not working. Divorce could have a detrimental effect on your credit report. Therefore, credit and divorce is a topic that should not be ignored. You have to take the necessary steps to protect it. Here are some tips to ensure you have good credit during your divorce:

1. Get Your Credit Report

On your credit report, look out for authorized user accounts and joint accounts. You should also make sure that your spouse information and yours are not merged. If you discover this, head over to the credit bureau to dispute this by asking them to separate the accounts. When you go through the right channels, your spouse's name will be removed from your credit report. However, don't stop here. Check again in a few months after your divorce is final to ensure that there are no new accounts opened in your name by your spouse.

2. Monitoring your credit cards

Contact your credit card companies to inform them that you would like to pay off the balance on your cards. After doing this, close the accounts and have your spouse removed as an authorized user. Once this is successful, open new accounts in your name and check your credit report about a month later. This is to confirm that your accounts have been thoroughly closed as instructed.

3. Your joint account

Whatever is left in your joint account should be split with your spouse before closing the account successfully. Once this is done, open a new one using just your name.

4. Handling your house

When it comes to your house, this process is more straightforward if you have no children. If this is the case, you and your spouse can sell the house with the proceeds shared based on your agreement. If you have children and your spouse wishes to keep this with the children, have the house refinanced with only your partner's name. If you sign a quitclaim deed or your name is removed from the title, you will lose ownership but still have to make loan payments. Therefore, avoid this at all costs. Keep track of the payments with details of the mortgage payment sent periodically to you.

5. Taking care of the vehicle(s)

If you have a car, your first move should be to sell it and split the proceeds with your spouse. However, if your spouse wishes to keep this, have it refinanced with just their name. Sometimes this may be unsuccessful, but you still have an alternative option. You can keep your name on the title but always double-check that your spouse is paying the bill on it.

No doubt, this will be a tough time as all separations usually are. However, these tips will get you on the way to protecting your good credit during a divorce. A divorce shouldn't ruin your credit score, so be sure to protect this as much as you can.

Filing for bankruptcy is usually the next option most people take when they are struggling to manage their increasing debt. However, this is not always the easy way out some people think. It can be a very complicated and expensive process. Not to mention, it can have a very harsh impact on your credit, reducing your credit score by as much as 200 points. Filing for personal bankruptcy should ultimately be your last resort. Therefore, you need to know this before filing for personal bankruptcy.

1. Is bankruptcy really for you?

There are some things to look out for to decide whether you are a good candidate for bankruptcy. This may be the right option for you if your wages have been garnished or you are being sued for debts. If your home is also about to go into foreclosure, then this can also be your best choice. Filing for bankruptcy at this time will allow you to catch up with your delayed payments. This will definitely have long-term consequences you have to look into. Filing for personal bankruptcy could affect your insurance, new job applications, ability to make major purchases, and promotions.

2. What if there is an alternative?

Before filing for personal bankruptcy, look for an alternative. How about reducing your debt or getting a second job? Look into adjusting your budget first before filing. Sometimes, it could be something as simple as having better money management habits. Therefore, look for a certified credit counselor who will be experienced enough to tell you all your options. Instead of filing for personal bankruptcy, some options give you access to debt management programs or even paying less than what you owe.

3. Understand the different types of bankruptcy

The different types are chapter 7 and chapter 13 bankruptcy. Chapter 7 bankruptcy is the type that involves the cancellation of your debts within at least three months. However, Chapter 13 bankruptcy, on the other hand, involves paying part or all of your debts. It is also called the wage earner’s plan and will remain on your report for 7 years. Chapter 7 bankruptcy stays on your report for a longer time, usually 10 years.

4. How well do you understand the rules?

Before filing for personal bankruptcy, you will have to complete pre-bankruptcy credit counseling with an approved counselor. To see a list of approved agencies, visit the US Department of Justice. Working with a credit counselor is aimed at helping you know if you could avoid going through bankruptcy to solve your debt problems.

5. Chapter 7 bankruptcy is not for all debts

Debts that can’t be filed under Chapter 7 bankruptcy include those incurred through fraud or for buying luxury items of more than $650 using a credit card that is owed to a creditor. If this is charged within three months of filing for your personal bankruptcy, then it won’t be filed under Chapter 7.

When it comes to filing for personal bankruptcy, it is always best to think long and hard before going through with it.

A debt collector may contact you if your creditor’s records report in error that you’re behind in paying your bills, or you have actually not paid them. This debt collector is charged with collecting debts on behalf of those owed. These could be lawyers, companies that buy delinquent debts, or collection agencies. Therefore, when it comes to debt collection, here are some FAQs that could be an excellent guide for you as consumers to ensure that you understand your rights.

1. Can a debt collector contact me inappropriately?

No, a debt collector shouldn’t contact you at any time or place you consider inconvenient. This could include calling before 8am or after 9pm, except you have a working agreement that provides for this. If the debt collector has been informed not to contact you at work, then they are not allowed to do so.

2. Can I stop a debt collector from contacting me?

Yes, you can stop a debt collector from contacting you. However, you should talk to them at least once to look at a possible resolution of the situation even if the contact is in error or you can’t repay immediately. If you wish to stop the contact, you can tell the debt collector in writing. Write a letter, make a copy and send the original by certified mail. Ensure that you pay for a return receipt so you can also document what the debt collector was given. As soon as the collector receives your stop letter, they can either contact you to inform you that there will be no further contact or to tell you that there will be a specific action take, such as filing a lawsuit. A letter of this nature will only stop the contact, but it won’t stop your debt collector from suing.

3. Can a debt collector inform anyone else of my debt?

A debt collector is not allowed to speak to third parties about your debt. They can talk to your attorney if you’re being represented by one. They can only contact others to find out your address, where you work, or your home phone number. Apart from getting information on your location, they are not permitted to discuss your debt with others.

4. What information can I receive from a debt collector?

A debt collector will send a written “validation notice,” which contains information on how much you owe within five days of the first contact. It will include the name of your creditor and what to do if you believe you don’t owe money to this person.

A debt collector is not allowed to harass you in any way. So, be sure to check to ensure that they are not giving false credit information about you to anyone, using a fictitious company name, trying to collect any fee not allowed by the state law or threaten to take your property illegally. Also, a debt collector should not contact you by postcard as this practice is off-limits.