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Friday, August 22, 2014

Loaning Cash to Family and Friends- Prevent Soft Loans from Ruining Relationships

Loaning cash to family and friends is nothing out of the ordinary. At one time or another, some of us may find ourselves considering extending a helping hand to a friend or relative who is in trouble financially. Before you do this, there are a few things to bear in mind.

What purpose will the money be used for?
If the money is to be used in a business venture, ask your friend or relative what kind of plan they have for making a profit from the business. You will have a better idea of just how much planning they have been doing. You will also know how to better help them, if the plan is sound. Ask what the money will be used for.

What is the person’s financial history?
Is the person borrowing money because they are genuinely going through hard times, or are they less careful with money than you would prefer? Someone who is very responsible in one area of life may not be as adept in another. Know where the person’s strengths and weaknesses are, so you know what to expect from them. Let the person know what your expectations are of them with respect to the loan.

Is this money that you are considering lending, money you can afford to lose?
No matter how faithfully your friend or relative promises to pay back the money, bear in mind that their expectations of the future might not bear fruit as they would want. Sometimes this is through no fault of theirs. Things can just go wrong.

If the unexpected happens, can you afford to lose this money? Will you still be able to maintain a positive relationship with this person? Don’t lend more than you can afford to lose.

When will the person pay back the loan?
Asking this is very important. For one, it reminds the relative or friend that you do expect the money to be repaid. Secondly, if the friend or relative has no immediate answer, it may be an indication that they hadn’t thought about it.

There’s a reason why some people advise against lending money to friends; it can break the friendship. However, it is hard to see a friend in need and not assist. Get the individual to sign a personal loan contract. Make sure you do what is necessary to protect yourself if you decide to help your friend.

Stop, Avoid or Get Out of Foreclosure and Keep Your Home

You can stop, avoid or get out of foreclosure and stay in your home. Your house is one of your most valuable assets and you have probably already spent a lot of money paying for it.

Some people say that if you are still paying a mortgage, your home shouldn’t be your biggest asset. The remaining debt puts you into a position that is unstable, as many people find out after missing a few mortgage payments.

Lower the Chances of Foreclosure By Getting a Cheaper Home from the Beginning
If you have not yet bought a house, make sure that when you do, you try to shop for a mortgage that is 20% less than what you can afford. Look at your budget and decide. This is because mortgage companies have the tendency to raise rates and when they do, that raises your monthly payment.

If you were already struggling to make the previous payment, it’s going to be hard to make an increased payment. Houses are very expensive, so it’s not always possible to do this but if you have a choice, spend below what you can afford.

What to Do if Your Mortgage Company is Applying Pressure
Many mortgage companies are quick to foreclose on accounts that are even a month behind. If you already have a home and cannot afford the mortgage payments for a period but you don’t want to lose your home, what can you do?

Get a Short Term Loan to Cover the Outstanding Mortgage
If your credit is good otherwise, you may consider getting a short term loan from a financial institution to cover the outstanding balance.
You can get these from:
  1. A reputable bank 
  2. A peer-to-peer lending service
  3. If you are a member of a credit union, this may be the best place for you to get a loan.
  4. Some companies also offer their employees loans at reasonable interest rates.
Talk to Your Mortgage Officer and Work out New Terms
These are only short term solutions though and if you notice that your situation is spiraling out of hand, you may need to talk to your bank about loan modification, or seek advice from a non-profit debt counseling agency or another person who will offer genuine advice and not just take your money.
The faster you do this, the better. Time is not on your side when it comes to situations like this but a decision made too hastily won’t profit you either.

Friday, August 1, 2014

Prospecting for New Business - A Review of New Sales Simplified

If you are prospecting for new business, New Sales Simplified can help you. This guide is written by Mike Weinberg and S. Anthony Lannarino. It is 229 pages long and is focused on techniques you can use to develop a consistent flow of new clients who will regularly make use of your products or the services you offer.

If you are a salesperson or head a sales team, you will find this text useful. It goes through the essentials of developing a strategy for selling your product. If you are new to business or have been doing well for a long period of time but want to improve even further, it will provide tips you can use to raise your income.

One of the biggest strengths of this text is the style that the information is delivered in. It’s lighthearted and funny and that alone makes the idea of cold calling someone seem less intimidating. While it walks you through the best way to build rapport with a new prospect, it makes you relaxed too.

New ideas are taught using stories. This makes it easier for you to remember the how of carrying out a particular strategy when you need to. Even if you are stressed, the examples are pleasant to remember. Things that are learnt while in a strong emotional state, such as happiness, tend to be remembered. The authors use that fact to help ensure that you remember most of their content.

They teach important concepts without being offensive. You learn to remember that every sales conversation involves getting feedback from the prospect as to what their needs are and matching what you have to offer with their needs. All in all, if you want to become a better salesperson, New Sales Simplified will teach the skills that help you get more business and prospects than ever before.
The link to “New ideas are taught using stories” is an affiliate link and I will earn from any sales generated through it.

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