The Past and Future of Gambling in North Carolina

Robert Tilman
-
0
The Past and Future of Gambling in North Carolina

North Carolina vs International Online Casinos – Where is it Going?

Few states seem to dislike gambling quite as much as North Carolina, and the United States is generally more restrictive than comparable Western nations such as Canada, the United Kingdom, and other European countries. But with a new, and sizeable, casino given the go ahead to open in the state, might it finally be following the trend and liberalize its laws regarding gambling both in the real world and at online casinos? It would make sense, given players from the US can already take advantage of international online casinos.

North Carolina’s Gambling History and International Online Casinos

Laws restricting gambling in North Carolina actually predate the War of Independence, with gambling debts exceeding £100 being invalidated (1749) in a bid to dissuade people from excessive gambling. This was tightened up in 1753 when gambling debts were entirely invalidated and daily losses were capped at 40s (that’s 40 shillings, or £2 at the time), with the cap falling to 5s a decade later.

Since then the state has had a pretty tight grip on gambling, and taken legislative measures against it. When 1800 rolled around table games and card games, in public, had been banned. There have been a few exceptions to this stringent approach, with lotteries (often aimed at fundraising for good causes) popping up now and then in the 19th century.

Whilst legal attitudes in North Carolina have stayed rooted in opposition to gambling, to a certain extent these preferences have been sidestepped by technological progress. The advance of the internet and the proliferation of international online casinos means that even US players can win real money playing slots, or table game classics such as blackjack, poker, baccarat, and roulette. The international scene has plenty of great casinos and games to try, not to mention welcome bonuses. So players in America can take full advantage of the online slots, roulette, blackjack, and other games that are far more tightly regulated when it comes to real world casino gambling in their own state.

Just as newspapers, retail, broadcasters, and sport have had to take into account the new reality presented by the internet, so international online casinos make something of a mockery of stringent state and national legislation. As we’ll explore in more detail below, even North Carolina’s traditionally antagonistic view of gambling may be changing.

International online casinos aren’t going anywhere, and online gambling is something that US authorities can either welcome (and the associated tax returns likewise) or leave to other nations.

Recent Changes and the State of Online Gambling

A longer lasting lottery was founded in 2006: the North Carolina Educational Lottery, which includes scratch cards and multi-jurisdictional games. The vast majority of the proceeds are spent in prizes and educational spending.

The United States is generally more restrictive when it comes to gambling than many nations in the West, and North Carolina is one of the most hardline states when it comes to wagering. Nationwide, this is changing somewhat, as new casinos are established and laws regarding gambling become liberalized. That’s not to say that gambling in NC is impossible. You can play the lottery, bingo, and engage in charitable gambling. Plus sports betting has recently been permitted (although you must be within specific casinos to do this).

Speaking of which, you can play at casinos in North Carolina, but there is a requirement: these must be on designated casinos within Indian lands. State laws forbid gambling at domestic online casinos (overseas online casinos are a murky grey area).

North Carolina remains one of the most restrictive states when it comes to gambling, which suggests that online gambling may stay off-limits. But other states have been opening things up, and a new casino recently received federal approval, so perhaps there’s a glimmer of light for the prospect of online gambling.

If online casino betting is opened up in North Carolina this could prove advantageous for players in a number of ways. The fact that brick-and-mortar casinos take up real estate means that they come with heavier associated costs (heating, staffing, rent, and so forth) whereas online mobile casinos do not. Because of this, the house edge tends to be lower at online casinos, meaning that players stand a better chance of finishing ahead.

There’s another advantage that ties into the tribal rivalry (explained further below) seen in North Carolina. When differing providers feel like competitors in the same marketplace, this can cause tensions to flare up. Because the internet is an ephemeral space, such conflict does not occur.

International online casinos are readily available, and the absence of US providers simply means that players from the US play online slots, roulette, and blackjack at casinos from Canada, the United Kingdom, and elsewhere. Companies in other countries make profits, and treasuries in other nations receive the associated tax. There has been a general trend of loosening the relatively tight laws around online gambling in the US in recent years, and if this continues it may prove beneficial even for states that have historically taken a dim view of wagering.

New Casino in Kings Mountain, near Charlotte

Perhaps one of the reasons for North Carolina’s reluctance to embrace gambling is that objections can be raised from unexpected sources. Some of the question marks raised against a casino proposal were by the Eastern Band of Cherokee Indians, who had already enjoyed success in operating casino games in North Carolina. The permission granted for a tribe based in South Carolina has raised concerns about competition, prompting the Eastern Band to pen a formal protest some years ago.

One more advantage of gambling online at international casinos is that it neatly avoids the political rivalry of different tribes in this area. Indeed, instead of visiting competing real world casinos, online casinos enable players to simply pick up and play using their mobile devices (and even desktops don’t require one to leave one’s home, which is especially handy during the tedium of a lockdown).

However, despite the objections, in March 2020 the green light was given by the federal government for the proposed $273m new casino to be constructed 35 miles from Charlotte. This enormous new gambling complex is set to be a boon for the local economy, creating more than 3,000 jobs. It also marks success after decades of work for the South Carolina-based Catawba Indian Nation (this will be their first official casino).

The casino will be built in Kings Mountain, just off I-85. In a statement, Catawba Chief William Harris expressed gratitude for the decision, adding that the site was close to current tribal land holdings and in an ancestral area that has been occupied by the Catawba since time immemorial.

Increased competition can drive down casino profits, as establishments compete to win and retain players. When considering gambling laws it’s easy to only think about technological process and liberalization, but sometimes local considerations, even ones that go back centuries and more, are just as important.

And it’s not just a question of history; the money generated by tribal casinos can fund substantial projects, including hospitals, schools, and youth centers. This also lends financial stability to tribes, who otherwise (in this example) may rely on seasonal tourism.

Five Ways To Increase Property Value

Robert Tilman
-
0
Five Ways To Increase Property Value

When you invest in a property you’re committing to a pretty long-term deal. But, more and more people are jumping on the trend of buying a house, just to flip it a couple of years down the line.

And that’s fine. There’s nothing wrong with being money-savvy and investing your hard-earned cash the right way.

So, when it comes to investing money in a property, you can only imagine that things can be a bit tricky. That’s why we’ve gathered a list of five things that are worth the investment when it comes to home improvements, and will actually increase the value of your property.

Let’s get down to business, shall we?

Convert your garage into living space.

With the rise of small homes taking over the world, more and more people are looking for small, sustainable living spaces that won’t take up half of their monthly paycheck just to rent.

You can transform your garage into a tiny apartment and rent it out, which instantly generates you money, or you can invest in building an entertainment room too. You should also check out these loft apartment conversion options if you’re looking to maximize your living space.

The thing is, you can convert your garage into whatever you see fit, and that’s only going to make you money in the long term. So, what’s the dream room you’ve never had?

Don’t forget to invest in curb and garden appeal.

There’s something in having a great looking home. And that’s why people appreciate it when they see home has been kept in an overall great condition.

That’s why investing in improving the curb appeal of your home is worth it. Whether you would add outdoor water features, install a fake turf, or resurface the driveway, it’s always going to have a return on your investment

But don’t forget that you can knock down some walls too.

And no, we’re not talking about building up a whole new part to your house. But instead, hire an architect who can help you improve the current layout of your home. 

Knocking down some old-school hallways and opening up the living space can make an old house feel like a new build, so it’s worth the extra effort, time, and money that you’ll put into it. 

Just make sure you have the original plans for the house or apartment, so you know which walls you can knock them down safely. Once you have this info, it’s a matter of hitting it with a hammer, cleaning up, and freshening. 

Invest in new kitchen appliances.

By far one of the most important features for any home is the kitchen. It also turns out to be one of the most expensive rooms to renovate too. 

That’s why home buyers appreciate it when the kitchen has new, high-quality appliances. This is also the investment that by far will give you the biggest return of investment. 

Remodel the bathroom.

Just like the kitchen, people love a good looking bathroom. A renovated bathroom can make a used home feel like brand new. 

Consider investing in a walk-in shower or a nice tub for the biggest return of investment. 

NC Records Highest Single-Day COVID-19 Death Toll As Protesters Crowd Streets

Charlotte Stories
-
0
NC Records Highest Single-Day COVID-19 Death Toll As Protesters Crowd Streets

Today, the NC Department of Health reported the highest single-day death toll from COVID-19 as protesters took to the streets of Raleigh to protest North Carolina’s ‘Stay at Home Order’.

34 additional COVID-19 related deaths have just been reported, bringing the total death toll in North Carolina to 213. There are currently 6,951 confirmed cases and 427 people hospitalized with the virus.

Amid this tragic news, hundreds took to the streets in Raleigh late this morning to protest the continued ‘Stay at Home Order’, which is now set to expire on April 29th.

There are now 611 confirmed cases of COVID-19 and 8 deaths in Wake County where the protests are taking place today.

What do you think about today’s protest and our current ‘Stay at Home Order’?

Foundation For The Carolinas Starts $50 Million Fund For Healthcare Workers Who Die From COVID-19

Steve
-
0
Foundation For The Carolinas Starts $50 Million Fund For Healthcare Workers Who Die From COVID-19

E4E Relief, a subsidiary of Foundation For The Carolinas, has announced a $50 million fund to support families of fallen healthcare workers who lose their lives to COVID-19. The Brave of Heart Fund was launched with initial contributions of $25 million each from the New York Life Foundation and the Cigna Foundation.

The Fund will provide charitable grants to surviving families of healthcare workers and volunteers who lose their lives while caring for others during the COVID-19 pandemic. It will be administered by E4E Relief, the nation’s leading provider of charitable employee relief funds and a wholly owned subsidiary of Foundation For The Carolinas.

New York Life and Cigna aim to grow the Fund to more than $100 million through additional individual and corporate donations. The New York Life Foundation will also provide up to another $25 million as a dollar-for-dollar match for donations received from individuals, and Cigna will also provide free emotional and behavioral health services for surviving family members. Charitable donations from individuals and corporations to the Fund are tax-deductible to the extent permitted by law, and can be made at www.BraveofHeartFund.com.

Family members of fallen healthcare workers who died from COVID-19 and who are experiencing a financial impact – such as loss of income, funeral expenses or medical bills – are encouraged to apply for charitable grants beginning in May 2020 at BraveofHeartFund.com. Visit the website for full eligibility requirements, as well as information regarding Cigna’s emotional and behavioral health services.

“When tragedy strikes, large or small, people want to help. The Brave of Heart Fund is an overwhelming example of this, with New York Life and Cigna rising to the occasion to support fallen healthcare workers,” said E4E Relief CEO Holly Welch Stubbing. “In addition to this vital effort, E4E Relief provides employers of all sizes the ability to support employees impacted by the pandemic and other catastrophic disasters.”

“Healthcare workers are truly on the frontlines of this pandemic,” said Michael Marsicano, president and CEO of Foundation For The Carolinas. “Through the Brave of Heart Fund, the generosity of New York Life and Cigna, and the efforts of our E4E Relief team, we hope to honor these fallen heroes and provide much-needed support to their families across the nation.”

Foundation For The Carolinas initially began offering employee assistance programs after the attacks of 9/11. Companies nationwide steadily began opening funds at FFTC to support their employees during times of unexpected hardships, such as catastrophic illnesses and natural disasters. E4E Relief became a wholly owned subsidiary of FFTC in 2014, and now serves more than 4 million employees across the globe.

E4E Relief anticipates awarding more than $125 million in charitable grants on behalf of its clients throughout the nation to help workers affected by the pandemic. A number of companies have established new employee relief funds in recent weeks, including Petco and the Cincinnati Reds, among others.

“In tough times, true heroes are revealed. The heroes today are not only the courageous and selfless frontline healthcare workers and volunteers who, without hesitation and without question, have put themselves in harm’s way to help those who desperately need it, but also their families who are living with the anxiety and fear of what may happen to their loved ones in the days ahead,” said Ted Mathas, Chairman and CEO of New York Life Insurance Company. “The Brave of Heart Fund is our way to honor these heroes by doing what New York Life and Cigna do best – supporting these individuals and their families with financial and emotional support and being there when we are needed most.”

“As we’ve seen in the past, trying times bring out the best in us, as individuals and communities. Our nation’s healthcare workers and volunteers are embodying this every day, as they answer the call of duty with bravery and selflessness,” said David M. Cordani, Cigna President and Chief Executive Officer. “We are proud to partner with New York Life to support the families of these American heroes who give so much while treating others. Through the Brave of Heart Fund, we will bring greater peace of mind to these families, by helping to relieve the emotional and financial burdens they will face in the aftermath of this health crisis.”

To learn more, visit BraveofHeartFund.com.

York County Finalizes Deal To Bring Panthers To Rock Hill and Build $1 Billion “Football City USA”

Charlotte Stories
-
0
York County Finalizes Deal To Bring Panthers To Rock Hill and Build $1 Billion “Football City USA”

The massive deal to move the Carolina Panthers headquarters from Uptown Charlotte to Rock Hill was finalized last night in a 4-3 vote by the York County Commission.

The county agreed to help the team with an estimated $1 billion 2-phase infrastructure plan to build what the Panthers are calling “Football City USA” and what York County is calling “Project Avalanche”. The deal includes Rock Hill foregoing all property tax revenue for up to 30 years.

According to The Herald, yesterday’s public meeting was held on a Zoom call. Members of the public brought up 2 main concerns during the call; York County giving the Panthers extra property, and the sheer scale of the decision during a pandemic.

“This is the biggest property tax giveaway in the history of York County, maybe in South Carolina,” noted Councilwoman Christi Cox. “And we did it during a pandemic.”

Councilman Joel Hamilton also remarked that while he does understands public concern, he wouldn’t want to explain decades from now why the York Council turned down a billion-dollar deal because of Zoom.

“An investment like this has never been seen in York County,” he said.

The sprawling $1 billion complex will hopefully see its first phase opening by August 2022.

It will be built on a 200-acre parcel just off I-77 between Dave Lyle Boulevard and Eden Terrace.

Courtesy of the Carolina Panthers

According to Panthers officials, it will feature an orthopedic sports medicine facility, 2 practice fields, including an indoor stadium with 10,000 seats.

The new project will also likely attract a new corporate headquarters and several residential projects.

What do you think about the Panthers moving down to South Carolina?

Officials Warn The True Number of COVID-19 Cases in Mecklenburg County May Now Be Over 24,000

Charlotte Stories
-
0
Officials Warn The True Number of COVID-19 Cases in Mecklenburg County May Now Be Over 24,000

Mecklenburg County Health officials have just announced that there could already be over 24,000 cases of COVID-19 in our city.

In today’s press release, health officials said that due to a restricted ability to test individuals who display only the worst symptoms (only 19,400 people have been tested over the past month), today’s confirmed case count of 1,231 could represent “as little as 5-10%” of the true number of cases in our county.

“If we’re going to start releasing some of the pressure on some of the restrictions that we’ve seen across the country, we’ve got to have better testing available to us, and better contact tracing. At this time in this county, we do not have that,” said Mecklenburg County Public Health Director Gibby Harris.

Harris also noted that an infant under 1 year old has tested positive for COVID-19.

The county is urging residents to continue to social distance and created the following graphic to drive home the point:

According to the CDC, patients with confirmed CoVID-19 infection have reportedly had mild to severe respiratory illness with symptoms of:

  • fever
  • cough
  • shortness of breath

CDC believes at this time that symptoms of CoVID-19 may appear in as few as 2 days or as long as 14 after exposure.

Panthers’ Owner David Tepper Just Donated $22 Million To Help Fight COVID-19

Charlotte Stories
-
0
Panthers’ Owner David Tepper Just Donated $22 Million To Help Fight COVID-19

Carolina Panthers’ owner David Tepper has just contributed the largest individual donation in the Carolinas to help fight COVID-19.

According to Forbes, the billionaire hedge fund owner made a donation of $22 million to relief efforts for the virus. This is in addition to the $1 million gift he made last month to Charlotte’s COVID-19 Response Fund.

“Generally when you have a [hurricane], people have lost their possessions and everything else, but in a month or so, they’re back to work and there’s rebuilding that’s going on,” Tepper told Forbes. “Here, it’s people losing their ability to make money, and that time period doesn’t have a certain end, which also creates a specific challenge for what you do with any kind of philanthropy… You want to see how long this lasts, what the government response is, but there’s some things you know you need to do now, and some things you know that will not be covered.”

If you’d like to help the relief efforts, you can contribute to the COVID-19 Response Fund, by visiting HelpCharMeck.org.

Corporations and foundations that wish to make a donation may contact either Catherine Warfield, Senior Vice President of Philanthropic Advancement at FFTC, at 704.973.4515 or cwarfield@fftc.org; or Clint Hill, Chief Development Officer at United Way of Central Carolinas, at 704.371.6359 or chill@uwcentralcarolinas.org.

North Carolina Ranked The 9th Best State for Working from Home

Charlotte Stories
-
0
North Carolina Ranked The 9th Best State for Working from Home

With COVID-19 turning home into the workplace nationwide, the personal-finance website WalletHub today released its report on the Best States for Working from Home, in order to highlight which areas are thriving and which are struggling in this pandemic economy.

To identify which states are most conducive to working from home, WalletHub compared the 50 states and the District of Columbia across 12 key metrics. The data set ranges from the share of workers working from home before COVID-19 to internet cost and cybersecurity. We also considered factors like how large and how crowded homes are in the state. Together, these metrics show how feasible working from home is in terms of cost, comfort and safety. Below, you can see highlights from the report, along with a WalletHub Q&A.

Working from Home in North Carolina (1=Best, 25=Avg.):

  • 17th – Share of Population Working from Home (pre-COVID-19)
  • 28th – Share of Potential Telecommuters
  • 19th – Households’ Internet Access
  • 5th – Average Home Square Footage
  • 9th – Cybersecurity
  • 17th – Average Retail Price of Electricity

North Carolina was ranked 9th overall and South Carolina was ranked 28th overall.

Best States for Remote Work

Overall Rank
(1=Best)		 State Total Score ‘Work Environment’ Rank ‘Living Environment’ Rank
1 Delaware 68.17 2 7
2 Washington 64.08 9 3
3 New Hampshire 63.96 1 40
4 Colorado 63.80 3 24
5 Georgia 62.70 23 1
6 Arizona 62.45 8 13
7 Utah 62.23 6 23
8 Oregon 61.84 10 21
9 North Carolina 61.40 5 34
10 South Dakota 61.20 17 17
11 Virginia 61.19 24 5
12 Tennessee 61.03 25 4
13 Minnesota 60.97 14 25
14 New Jersey 60.84 11 28
15 Vermont 60.55 19 14
16 Idaho 60.34 20 20
17 Massachusetts 60.02 15 31
18 Nevada 59.89 28 6
19 Maryland 59.57 21 22
20 Florida 59.51 16 36
21 Pennsylvania 59.37 12 37
22 Texas 59.25 33 8
23 Ohio 59.07 27 18
24 Connecticut 58.91 13 39
25 Alabama 57.93 35 11
26 Indiana 57.78 37 12
27 Kentucky 57.49 26 32
28 South Carolina 57.25 40 9
29 Maine 56.89 7 49
30 Montana 56.63 43 2
31 California 55.96 22 45
32 New York 55.55 36 35
33 Wisconsin 55.25 29 43
34 New Mexico 54.71 42 19
35 Illinois 54.69 30 44
36 Michigan 54.66 34 41
37 Nebraska 54.56 46 10
38 Kansas 54.38 32 46
39 Louisiana 54.20 44 16
40 Missouri 54.04 39 38
41 West Virginia 54.03 41 30
42 District of Columbia 53.99 4 50
43 Wyoming 53.55 45 26
44 Iowa 53.49 38 42
45 Rhode Island 53.20 31 47
46 North Dakota 51.66 48 27
47 Oklahoma 51.61 47 33
48 Arkansas 49.53 49 29
49 Mississippi 47.45 50 15
50 Hawaii 46.84 18 51
51 Alaska 40.56 51 48

For the full report, please visit:
https://wallethub.com/edu/best-states-for-working-from-home/72801/

How to Enter the Real Estate Market

Charlotte Stories
-
0
How to Enter the Real Estate Market

Real estate investment is becoming an increasingly common investment type among professional and amateur investors alike. If you’re looking to enter the world of real estate investing, you will need to understand all the different aspects of the real estate market. You can’t just apply what you’ve learned from stocks and bonds here, it’s a completely different ball game. 

Most mortgages require a 20-25% down payment while some might only require a mere 5%. In those cases, a low down payment emboldens investors as it makes their barriers to entry low. This guide will show you the 4 main ways that you can go about real estate investing, listing both pros and cons.  

Become a Landlord

While becoming a landlord sounds like an interesting and exciting role, it requires someone who has substantial up-front capital. You will first need to have the capital to buy a property before renovating it. Depending on how you want your property to look, you can opt to bring in a contractor or DIY. Next, you will need to source for tenants by conducting inspections and credit checks. For dull months where you don’t have any prospective tenants, you will also need enough capital to cover those. Furthermore, you will also need to conduct regular maintenance such as pest control, lawn mowing, etc. to make sure that the property is livable.  

Pros: 

Having a rental property brings in a regular flow of income. With the assumption that the value of homes appreciates over time, as with most properties, you will be able to hold a more valuable asset compared to what you first started with. Furthermore, most of the costs can be tax-deductible, which allows you to offset the amount using other investments that you might have. However, once the full mortgage has been paid, the majority of the rent collected will be considered profits. 

Cons: 

Managing an investment property on your own can be extremely troublesome, especially since you will also have to look over any administrative matters on tenants and maintenance. In some cases, you might even have to personally deal with uncooperative tenants which could lead to eviction. 

Thus, we recommend getting a property management company to help you with these matters, such as https://rentbottomline.com/property-management/.

Real Estate Investment Groups (REIGs)

REIGs are small mutual funds that invest in rental properties. Typically, investors will pump in capital through the company, owning as many units of the apartment/condo as they would like. As the investment property is managed by the company, the company will have the responsibility of handling maintenance, screening tenants, and taking care of other administrative duties. As such, a part of the monthly rent will be allocated to the company for helping with these duties. In order to guard against vacant rooms, the company will pool together investors’ capital. This means that as an investor, you will still receive some income even if it means that your unit is empty. Most of the time, the combined investors’ capital will be able to cover the costs of the occasional vacant properties  

Pros: 

Investing in REIGs will be a perfect choice for the investor that does not have time to entertain administrative duties. This is because all the work is done by the company, while you will continue receiving an income whether or not your unit is occupied or vacant. 

Cons:

You will need to be discerning and invest in properties where you personally trust the companies that own it. Furthermore, there is also a risk of there being more vacancies than the pool of investors’ capital can cover. This might put you in a potentially risky investment situation. 

Real Estate Trading

Real estate trading is more suitable for investors with bigger risk appetite. This is due to the fact that real estate traders usually plan to purchase undervalued properties and sell them off within 6 months of their purchase. Most real estate traders do not have enough cash on hand to last them through tough times to pay off their mortgage. Thus, if you are in a situation where you can’t unload a property, you might experience continued losses. There are other ways to go about real estate trading. For example, you could look at your investment as more long term – buying a property cheap and adding value by renovating it. 

Pros: 

When the market is doing well, you might be able to snag a good deal and gain significant rewards even within a short period of time. 

Cons: 

Not suitable for investors with small risk appetite. You will need a deep understanding and knowledge of the market as you will need to know when to buy and how to sell in order to make a good profit. You might even experience losses when times are bad and you aren’t able to sell your property. 

Real Estate Investment Trusts (REITs)

REITs allow anyone to own or finance properties in the same way shareholders benefit by owning stocks and other corporations. The stockholders of REITs earn a share of the income produced through real estate investment, and they can do so without having to go out and buy or finance the property. REITs often are classified into equity REITs or mortgage REITs. Equity REITs include offices, shopping centers, hotels, etc and derive most of their revenue from rent from those properties while mortgage REITS might finance both residential and commercial properties and derive their revenue from interest earned from their investments from interest or mortgage-backed securities. 

Pros: 

The purpose of REITs is to give ordinary investors access to commercial real estate. Not everyone can purchase a whole tower all by themselves and REITs allow you to own a share of it. 

Cons: 

REITs work best as long term investments. If you are looking to invest money that you might need within the next 5 years, it is not recommended that you invest in REITs due to its interest rate fluctuations. 

Now that you know the most common ways to invest in real estate, it’s time to find the right sponsor to handle your investments. Take time to do your research. A good place to start your search for a crowdfunding sponsor would be CrowdDD’s sponsor ratings and reviews page. Review platforms help ensure you find the right sponsors and crowdfunding platforms for real estate investments. They rate crowdfunding sponsors based on their track record, communication, and fees, making it easier for you to choose the right one to trust.

We hope that this guide gave you a deeper understanding of how to enter the real estate market. It might seem daunting at first, but once you’ve become a more experienced investor, don’t forget to credit us! 

Debt consolidation loan – What you need to know before applying for one?

Sarah Feldman
-
0
Debt consolidation loan – What you need to know before applying for one?

Personal or business finance management is essential to stay away from debt. Business conditions and life are always not the same. There are business losses and emergencies, as well. Not everyone is prepared with significant savings to pay for emergencies. It is here that people have to take a loan. Once the crisis gets mitigated, the time to repay the loans arrives. Here most people and business owners face a challenging time. There are times when they can’t pay for their business debts and fall into the vicious debt circle with increased interest. There are times when business owners and individuals have to pay more while repaying than the actual amount borrowed. It is here debt consolidation loan comes to help.

An understanding of the debt consolidation loan

Are you in debt? If yes, chances are you have to make multiple payments in a month. You might also be receiving several calls from your creditors. And each might have various repayment interest rates, which can difficult for you to remember as well as pay. Debt consolidation brings ease and organization to the repayment process. Here a bank or financial institution consolidates all the loans and merges it into one significant amount. The bank or financial institution pays off the amount on your behalf. After that, they fix a monthly payment amount at a given interest rate that you need to pay at a specific date and time. You need to make sure that you don’t miss out on the payment date. That way you might incur a penalty or a fine. To know more about this, you can check out Credit Ninja. 

Things you need to consider

Opting in for a debt consolidation loan will not make life debt-free! It might make it less stressful and help you to manage your debts better. Sometimes, people are lost as they don’t consider the essential aspects before opting in for a debt consolidation loan. Some of the crucial factors that you should consider are as follows: 

 

  • It is a loan

 

Most people opt-in or a debt consolidation loan, thinking that it will make life easier by 360 degrees. It is here that they need to make the correct reality check. It means that a debt consolidation loan is ultimately a loan. It will not waive off all the debts or loan amount you have already incurred. At best, it helps to break down your monthly payments to a reasonable amount that you can pay off without any hassles. Akin to any other loans, you will have a rate of interest as well. The interest rate depends on the loan amount as well as your credit score and history. The bank or the financial organization also fixes a repayment term and duration based on regular payments. You mustn’t forget the monthly date when you need to make the loan payment. Else, it might come in the way of you becoming completely debt-free.

 

  • Know that the repayment time is longer

 

Don’t assume that just because you opted-in for a debt consolidation loan, you will repay all your debts within a short period.  If your debt amount is high, then the repaying the consolidation loan can take about anything between five and twenty-five years. There are various reasons for that. It is because several consolidation companies end up charging from business owners and individuals an increased upfront cost. They also levy a high-interest rate. Hence, the overall interest payable then gets added to the debt amount, extending the repayment period. So, you might have lesser monthly payments, but you might have to keep repaying for a long-time.

 

  • Pre-payment might cost you a fee

 

It is essential to maintain the repayment date and time. Sometimes, borrowers think paying off early might be beneficial for them. But this has cost them more. The debt consolidation companies charge a fee for repaying the loan earlier than the date mentioned. Hence, when you are opting in for this loan, get very clear about the terms and conditions related to pre-payment and its repercussions.

 

  • Make sure to look for other options

 

If you are already in debt, then you don’t need extra money added to you. That indicates, ideally, the new loan you are opting in for should have a lesser interest. The monthly bills should be less as compared to the total bill cost that you had consolidated. It means you should opt-in for the first option that you come across. You should browse through more banks and debt consolidation companies and check out what they have to offer. The reduced interest rate all through your repayment tenure is beneficial. It will help you to stay regular with your payments and ensure that you gradually come out of debt. 

 

  • Your debt doesn’t get substituted

 

You need to be very clear about this! Many people think a debt consolidation loan completely replaces the mortgage. That’s when they have unrealistic expectations. This loan blends all your debt in one amount. Even when you are making the monthly payments, you are clearing off your debt. Hence, you shouldn’t incur any extra fees or credit card debts while you are in the repayment tenure, assuming that there is no debt. Some individuals have done that and have been at a considerable loss and prolonged liability.

Debt consolidation has its set of benefits as well, that makes it a popular choice amongst business owners and individuals. It helps you keep off from the creditor calls and messages. You can make your monthly repayments and focus on a correct business plan to follow after you are debt-free. But if you miss one payment, you might have to face the trouble of constant creditor calls and messages again. You need to be aware of both the advantages and other essential factors about a debt consolidation loan. Only then can you make an informed decision. Take your time to understand your loan requirements and browse through various companies. Read the online reviews and then arrive at a decision. Choose the loan and debt consolidation company that works best for you. 

1...884885886...1,315Page 885 of 1,315