While financial prudence demands that one should have as little debt as possible, preferably none at all.
But there are times when it may be a better idea to fund the purchase or expense through debt rather than liquidating an existing asset.
Loans can help you to realise your aspirations in a timely and planned manner, provided you repay the loan on time. Navin Chandani, chief business development officer, Bankbazaar says, “Not all debt is bad. Aspirational products like a car or home of one’s own can take years or even a lifetime to save up. By the time you save up, you may realise that your savings aren’t enough. Other things, like education or health-related expenses, are very time-bound. You may not be able to pursue a higher degree five years down the line, or it may be too late to pursue by the time you build up your corpus. In all such situations, a loan can help.’’
Manav Jeet, MD and CEO, Rubique, points out that someone who has never taken any loans, will not have any credit history. “In certain countries, people with no credit history are not viewed as viable borrowers. It is essential to have some sort of debt to have a credit history. However, this is more a self-management choice, meaning if one requires borrowing money they can always look at lenders for the same,’’ he says.
While debt is best avoided, but is there anything like a good debt, at least in certain circumstances?
Financial planners disagree. “There are only two classifications for debt - bad or worse. Nothing like a good debt – not even for housing. However, some professionals can borrow and buy assets which grow faster than the rate of interest. Normally these are professional investors - not for the common man. Borrowing to get tax benefits is one of the stupidest tax planning techniques,” says P V Subramanyam, chartered accountant and financial trainer.
Individuals should do a cost-benefit analysis before they decide to take a loan or liquidate an existing asset. “For instance, you are buying a car, and you have a fixed deposit (FD) that covers a substantial part of the cost. If your loan costs you 12% and your FD gives you 6.5% after tax, you may want to liquidate it and take a smaller loan. However, if the same amount is in an investment that gives you 15% returns, you would be better off with a loan. So, take your financial, practical, as well as emotional situation into consideration before you take a call,’’ says Chandani.
In case of emergencies and if you can repay the loan in a few months, then you may be better off taking a loan. “In case of shares or mutual funds, it is worth holding on during tough times and selling during good times,’’ advises Subramanyam.
“This is a very personal choice based on the individual’s urgency. Selling an existing asset may take some time, while a loan will have an interest rate. It is primarily the choice of the individual if they have the option to wait or not,’’ feels Jeet.
While you may choose to opt for a loan, but often individuals find that the bank rejects their loan application. “If your loan application is rejected by a bank, you always have the option of approaching an NBFC for a loan,’’ points out Chandani.
Banks and NBFCs have certain criteria they use to evaluate a loan application. “Compare your background and requirement before you apply for a loan with any lender. If your credit score is lower than a particular threshold, banks may not be willing to lend. NBFCs have more relaxed policies towards customers with low credit scores, though it comes with its own caveats. So, if you have a lower credit score, it would be better to apply to an NBFC,” says Chandani.
With the advent of fintech, there are now a plethora of unconventional alternative lending options also available to individuals.
Rubique is an online credit marketplace that uses technology to ensure perfect matchmaking between borrowers and lenders. “We leverage technology to not only reduce processing time but also bring predictability and assess creditworthiness, thus offering the best deals to customers,’’ says Jeet.
If you opt for a loan, remember that you first check that you can afford to repay the loan. Also, avoid private financiers as some of them resort to extra-constitutional methods to get back their loan.
DEBT- TO DO OR NOT TO DO?
Individuals should do a cost-benefit analysis before they decide to take a loan or liquidate an existing asset
Loans can help you to realise your aspirations in a timely and planned manner, provided you repay the loan on time
Banks and NBFCs have certain criteria they use to evaluate a loan application
If you are applying for a business loan, then you must already be a few years into running your own company.
These loans are meant to boost your revenue potential by helping you acquire necessary items.
Your lender spends a lot of time analyzing your business and personal financial situation when you seek out a business loan. Some people are willing to put their personal assets on the line, while others prefer to keep business endeavors separate. Even if the lender makes some changes, it is a good idea to go in with an idea of what you desire to borrow. There are a few things your lender may look at when determining the final amount.
Credit and Collateral
Credit checks are a regular part of most loan applications. This is not something you can get out of. It is best to confront your credit before you apply so you know what you are dealing with. If you find a lower score than you prefer and have some time to work with, focus on some credit repair before you apply for a business loan. Be prepared to have both your business and personal credit score under scrutiny. For a faster fix, you may need to contact a credit repair company.
Some lenders are willing to work with collateral when credit is less than stellar. This, however, may involve bringing your personal assets into the equation. This can be risky if your business is having problems already. Using your home for collateral, for example, leaves you without anything if your business fails. This is not recommended and should only be considered if your business is showing steady growth. Better options may include using your business equipment or other business assets. This keeps your personal property safe.
Personal and Business Income
You can also expect for all your income sources to be checked. This may be done by looking at bank accounts, business records, and tax documentation. Your lender wants to know how much money you typically have leftover at the end of each month, so they do not loan you more than can be paid back. If your business is doing well, this can help you immensely. It is much easier to get a loan for a growing business than to try and rescue a failing one. Be sure to show documentation that shows your growth patterns. Business Loans can be a great asset in the right situation.
Financial Responsibilities
This is also a situation where both your personal and business information may be assessed. Lenders need to see how much money you have going out on a regular basis. Their goal is to help you, not overextend you. They may look at things like mortgage, car payments, and credit card debt for your personal finance. When it comes to your business expenses, they may look at things like rent for office space, salaries to employees, and advertising expenses.
The best way prepare for a meeting with your lender is to have your financial paperwork available. When you are organized and upfront about your expenses, a lender is more likely to take you seriously. You also need to remain realistic about what you can pay back in a decent amount of time. Business loans are meant to go own for several years, however, you should not feel overwhelmed every month by the payments. A lender knows how to choose an amount that you can afford.
Bad credit is a major concern among people today, and nearly 25 percent of Americans struggle with bad credit scores. This can damage their ability to get a car, buy a house, and even run a small business.
All small businesses require funding in order to thrive in the industry, but many entrepreneurs are routinely denied access to loans due to poor or nonexistent credit histories. Fortunately, there are a variety of lenders who cater specifically to individuals with poor credit, enabling business owners of all financial backgrounds to access the funding they need.
Family and Friends
Your family and friends know you personally and are eager to watch your business succeed. By seeking out loans or investments from the people you know best, you can access the capital needed to launch your business venture regardless of your credit score. However, don’t expect your family and friends to offer you loans at no interest.
While interest rates will likely be lower than other loan options, it will increase their confidence and assurance in lending to you if you promise to pay a small interest rate in exchange for their generosity. Be professional with your presentation, and treat it as you would any other business deal by presenting them with a sound business plan and strict repayment terms.
Merchant Cash Advance
Merchant cash advances provide a convenient option for business owners struggling with poor credit. With a merchant cash advance, you are provided with a chunk of capital in exchange for offering the agency a percentage of future credit card sales.
The repayment terms consist of a fixed monthly rate that automatically deducts from your account each month. Interest rates for cash advances vary drastically, so conduct research into a variety of agencies to ensure you receive the best deal available.
Micro-loans
There are a variety of micro-lenders available that can get you a small business loan, even after the banks have turned you away. Micro-loans range in size but are often around $5,000 to $25,000.
Most micro-lenders are willing to accommodate those with poor credit and by repaying the loan on time, it can even help improve your credit score for later. Interest rates vary, so peruse a variety of micro-lenders to source the lowest rates possible.
Find a Cosigner
Sometimes, all it takes to have your application approved is finding a cosigner with good credit. Perhaps you have a business partner, a friend, or a family member who would be willing to cosign on your loan. A cosigner will provide added assurance to the loan agency that, should you ever default on the payments, there is another individual capable of paying what is due.
When searching for a small business loan, bad credit can seem like a deal breaker. However, there are a variety of lenders that cater specifically to individuals who have been turned away by the banks. Micro-lenders offer loans of up to $25,000, enabling you to access a substantial portion of needed capital, even if your credit score is suffering.
For those in need of smaller short-term loans, merchant cash advances can provide a convenient alternative to traditional bank loans. No matter your credit score, there are lenders available who are eager to help you succeed. For all your working capital needs, contact Credibly.
Have you ever fantasized about quitting your job and moving to a country where it’s so cheap you don’t need to work? International Living advises people on how to do just that in its magazine and website, which shows readers how to find, embrace and celebrate the best the world has to offer—from good-value living to great foods to warm year-round weather to interesting cultural traditions. The company has just announced itsAnnual Global Retirement Index, listing the 25 cheapest and best places to live around the globe. And this list isn’t just for retirees: It’s a great resource for anyone who has ever thought of moving abroad.
“Americans today are looking long and hard at their own values, and at the way they spend their days and many are coming to the conclusion that they need a change. They want more time with family and friends, more time to pursue their interests, more freedom to arrange their days the way they prefer,” says Jennifer Stevens, International Living’s executive editor. “But it can be hard to know how to afford that life. Overseas, in the right places, it’s easy. It can provide a path to that better-balanced, more affordable life folks are craving.”
Granted, the concept of encouraging Westerners to escape the high cost of living by moving to developing countries has received some backlash, with critics calling this “modern-day colonialism,” but International Living says that living well for less is only one reason a destination finds a place on its Global Retirement Index. “We live in an ever-more-connected, global world. And here at International Living, we celebrate that. We give readers the practical tools they can use to embrace a more international life,” says Dan Prescher, senior editor at International Living. “Being an expat isn’t about recreating your U.S. life in a new place. It’s about creating a new life in a place that excites and suits you, where you can expand your horizons and enjoy an adventure that you wouldn’t have back home.”
According to Prescher, International Living points people to communities where they can feel safe and comfortable, where the local culture is inclusive and welcoming. In addition, International Living actively encourages people to learn the local language when they settle in a new country, to become integrated into their communities, to embrace the local traditions and to honor and celebrate the cultural habits and holidays there. “The most successful—the happiest—expat retirees we know appreciate that their dollars stretch, sure. But what these expats say they love most about their adopted homes is the excitement that comes with learning a new culture—they celebrate the new experiences they’re having, the new music, the new foods, the new traditions, the new connections,” says Prescher. “They become integral parts of their communities with a network of friendships that includes as many locals as it does fellow expats.”
For instance, one place that has recently started courting expats is Thailand, which helped put the country high on this year’s list, thanks to a new visa program.
So read on to find out about the top 11 places on the list that will make your dreams come true. To see the full list of 25 locations, you can read the Annual Global Retirement Index here.
The mix of old and new in Panama City.
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1. Panama
Why: One of the world’s safest, most affordable and most welcoming countries, Panama tops the Annual Global Retirement Index for 2022. It’s actually the 11th time that Panama has taken the top spot in the 31 years that International Living has been publishing the list. “It’s no surprise to me that this tiny powerhouse has—once again—taken the number one spot in International Living’s Annual Global Retirement Index,” says Jessica Ramesch, International Living’s Panama correspondent. “When it comes to overall benefits and value, Panama is very tough to beat.” Some of the advantages: The currency is the U.S. dollar, the medical care is top-notch, the infrastructure is first-rate, internet access is good and the country is easily accessible from the U.S.
Over the past couple years, there have been some ups and downs in Panama (and all over the world), but the country has rebounded. “These days it’s back to business here. The country is busy welcoming tourists, new residents and new investment, too,” says Ramesch. Panama actively woos foreigners: You won’t pay income tax on funds earned outside Panama, there are several easy options for getting a visa or residency and real estate taxes are really low.
Where to Move: Panama City is Central America’s most modern metropolis, but that’s not all the country has to offer. “The cool mountain towns of Cerro Azul, Sorá and El Valle are a one- to two-hour drive from the city. The unspoiled Caribbean beaches of Portobelo are about two hours away by car. Or I can fly to my favorite Caribbean archipelago in an hour,” says Ramesch. Two other places to note: the lush highland haven of Boquete and Coronado, a beach town just an hour’s drive from the capital. “I like [Coronado] so much I bought an apartment there, and am packing up to move as we speak” says Ramesch. “Coronado is home to one of Panama’s most active and welcoming expat communities. I’m not even there yet, and I’m already getting invites to potlucks and happy hours.”
The Cost: More and more retirees from the U.S. and Canada are looking to Panama, where even foreign pensioners with legal residence get 15% off hospital bills, 20% off prescription medication, 15% off dental and eye exams and 20% off medical consultations. Panama’s famed Pensionado program makes it easy for you to become a legal resident if you have a social security or corporate pension of at least $1,000 a month. A couple can live well, depending on their lifestyle, starting at $1,753 a month in Panama City.
Picture yourself living here: in the hills of[+]GETTY
2. Costa Rica
Why: Coming in second on the list for 2022 is Costa Rica, where the national motto is "Pura Vida" (pure life). “Sure, the secret has long been out about Costa Rica’s popularity. But that does not stop millions of visitors and new foreign residents from discovering its special brand of enchantment, lured by the country’s tropical climate; lower cost of living; friendly locals; affordable medical care; vast real estate options; and, of course, its natural beauty for which the country is famous,” says Kathleen Evans, International Living’s Costa Rica correspondent.
In a region that can have political and civil unrest, Costa Rica is safe and stable, with a progressive government. “For example, LGBTQ same-sex marriage is legal and women’s rights are mandated,” says Evans. And while the pandemic has been challenging, it has resulted in positive initiatives like a new digital nomad visa and an updated law to attract retirees that includes perks like a lower threshold for investors and the ability to import two cars and a shipping container of home goods tax-free.
Where to Move: There’s something for everyone, thanks to a dozen climate zones and hundreds of microclimates, but one of the most appealing is the Nicoya Peninsula in Guanacaste. In this “Blue Zone,” there’s a high population of centenarians (100+ year-olds), thanks to healthy diets, natural water, sunshine, active lifestyles and strong familial and friendship ties. Other popular areas include the capital of San José, the temperate Central Valley, the jungle landscapes in the south and the Caribbean coast.
The Cost: “A couple can live comfortably, but not necessarily extravagantly, here for around $2,000 to $2,500 a month,” says Evans. “This includes renting a two-bedroom home/condo with North American amenities, air conditioning, plus groceries, entertainment, transportation and healthcare.” A single person can live on between $1,600 and $2,000 a month.
3. Mexico
Why: Third on the 2022 list is Mexico, which has been a popular expat spot for at least 50 years. “Mexico is close—it’s the United States’ neighbor, after all—and easy to get to by either driving or taking a direct flight into one of the country’s many international airports,” says International Living correspondent Jason Holland. “There’s low-cost, top-notch healthcare, including a well-regarded government system. The weather is great from coast to coast. It’s a modern country with high-speed internet, good highways, reliable electric and water and good cellphone service.” Another bonus: It’s easy to become a resident, thanks to reasonable income requirements. To get temporary residence in Mexico, you must have a monthly income of around $2,100 a month or $36,000 in the bank. Permanent residence requires around $2,700 a month or $149,000 in the bank.
Where to Move: Three times the size of Texas, Mexico has a lot to offer. “There really is a place for everybody in Mexico, from bustling beach resorts to quiet country villages to picturesque colonial towns to major metropolitan areas,” says Holland, who recommends the Pacific, Caribbean and Gulf of Mexico coasts. “The beaches in places like Puerto Vallarta and Playa del Carmen are beautiful and the weather is warm and humid, cut by sea breezes year-round.” Or you can head inland to the Colonial Highlands and cities like San Miguel de Allende and Guanajuato, which have temperate year-round weather.
The Cost: Cost of living is tied into lifestyle, but most couples can live well in Mexico for around $2,000 a month, which covers everything, including housing, transportation, healthcare, utilities and food. “Some people get by on much less because they live very much like locals, others spend a whole lot more—if you want luxury and high-end, Mexico certainly has it,” says Holland. “The popularity of a place, whether it has a big expat group or is a tourist destination, can also impact prices.”
4. Portugal
Why: “This tiny country in the southwest corner of Europe has something for everyone,” says Terry Coles, International Living’s Portugal correspondent. “Vibrant cities full of Old World charm, miles of golden sandy beaches, green, rolling hills, some of the best healthcare in the world, low cost of living and safety.” Plus, since English is taught in schools starting at the sixth-grade level, many locals speak some English, which makes moving here a little easier.
Where to Move: Just an hour north of Lisbon, Caldas da Rainha is a mid-sized city with a cobbled downtown and a sizeable expat population. Want something a bit more rural? Check out the Alentejo region, which includes the cities of Beja and Évora. Don’t want to have a car? “Then city life in either Lisbon or Porto might be for you,” says Coles.
The Cost: Although it depends on many factors, you can estimate that you can live on about one-third less here. A couple can live comfortably, but not lavishly, in Portugal on $2,500 per month. If you want to live in Lisbon, Porto, Cascais or the Algarve, you should bump that number up to $3,000 or more.
5. Colombia
Why: “Colombia checks many of the boxes for those wanting to live in a place with a lower cost of living, excellent healthcare, close proximity to the U.S. and Canada and climate options to suit practically every taste,” says International Living correspondent Nancy Kiernan. It’s also the second most biodiverse country in the world, which adds to the appeal. And Colombia is more developed than many other countries in Latin America, with major cities offering modern products and services.
Where to Move: Expats are attracted to Medellín, thanks to its near-perfect climate (its nickname is “The City of Eternal Spring”). The mountain areas of Bucaramanga, Pereira and the Coffee Triangle also have a more temperate climate and no humidity. Bogotá is much cooler. Looking for a tropical escape? Think about the coastal areas of Cartagena, Barranquilla and Santa Marta.
The Cost: Your dollars go far here. A single person can live on as little as $1,030 a month, while a couple can live for less than $2,000 per month. “Of course, your cost of living will depend on your lifestyle and where you choose to live,” says Kiernan. “I can tell you that my living expenses are 60% less than they were back in Maine. Just the fact that I don’t have to pay heating or cooling costs has saved me about $3,400 per year alone.”
Federal University of Technology Akure Admission List for 2021/2022 academic session has been released. This is to inform all candidates who participated in the 2021/2022 Post-UTME that they can proceed to check if their names are on the Provisional Admission list of successful candidates
The list of admitted candidates has been uploaded online via JAMB CAPS Candidates are to follow the procedure below to check;
Click on 'Admission Status' to see if you have been offered admission.
Candidates who have been offered admission are to proceed to click"ACCEPT" or "REJECT" to indicate acceptance or rejection of the admission offer.
For those whose status is showing "Admission Still in Progress" or "Not Admitted", you are advised to keep checking as the status may change anytime soon.
NB : Clicking"REJECT" is an indication that the offer of admission has been rejected by candidates
We understand that the attributes of an investment property differ from what you are seeking in a home you will live in. Location and price are key to finding the ideal property so, let Les Maisons Partners serve as your guide through the process..
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The next time you get cornered by a needy friend or family member needing to borrow money—or the next time your heart compels you to lend out of generosity—here are some basic rules to keep in mind.
First of all, don't get carried away.ou may be elated at the opportunity to share your riches with everyone, but keep in mind that you probably want to keep some for yourself, too. Depending on which family member or friend you're lending to, chances are you may never see the money again.
On that note, only lend the money you can afford to lose. "Only lend up to the amount of money you’d feel comfortable placing on the table in a game of roulette or craps," says Next Avenue. nce you decide how much your debtor can be trusted with, write it down. Record how much you've lent, when it should be paid back, how it should be paid back, whether there will be an interest charge, and have both parties sign it. However formal it may seem, it will prevent any misunderstandings and feelings of being exploited, it will serve as a reminder, and ultimately preserve your relationship and your wallet.
Cheryl Krueger, owner of Growing Fortunes Financial Partners in Illinois, suggests that you consider charging interest if you are lending a larger sum of money. In this risky business, charging interest will give you something to be excited about, plus your borrower won't feel like such a scrounger. Best of all, you will avoid any tax problems.What you may not realize is that if you aren't charging interest, you are making a taxable gift of the interest that you waived," she says.
The US Internal Revenue Service expects the minimum interest charge, or the Applicable Federal Rate, to be 0.48 percent for loans up to three years; 1.82 percent for loans between three and nine years, and 2.82 percent for loans over nine years, according to Next Avenue.
