You’ve heard the stories from small business owners who chose to take advantage of restaurant loans and are forever glad that they did. But what about the one’s that didn’t take advantage of restaurant loans, either because they didn’t know about it, they didn’t think it was all it’s cracked up to be, or for any other reason? Read as these entrepreneurs share their stories.
An official in China can wake up one morning and say to himself, “the United States can never pay off those Contract Financing we keep making to them, for they haven’t even stopped borrowing. The dollars are worthless, so if someone wants the dollars let’s sell them. Taiwan is more of a prize to us than worthless dollars.” Hugo Chavez has no love for the United States and so much oil to sell to the rest of the world that he could, one day sell dollars. Anyway, history always demonstrates that it is the wealthiest countries win wars, not the strongest; money speaks louder. And the U.S. keeps building those $36,000,000 fighter planes; The Raptor only means we have to borrow more from China and now nowhere to use the airplane.
We now have the foxes not just guarding the hen house, but counting the chickens. They are making it worse with the so-called stimulus package which is nothing more than a huge pork gift for the Democrat Senators and Representatives. The president is one of the biggest feasters of pork that does not show on the surface.
The world of commerce cannot operate without the flow of cash in the form of credit. Banks are required to price all assets at market value. This is called ‘mark to the market’. On paper today the entire U.S. banking industry is insolvent. Trillions of dollars of their assets are considered to be worthless mortgages. They really are not worthless, but the true value is unknown. In the banking business “unknown” is zero.
Consolidating debts isn’t the answer for everyone. But it could be worth at least investigating as an option. You may want to sit down with a debt counsellor or credit counsellor to talk about your various options.
You need to make sure that you do a good job researching the websites of various personal lenders. In addition, consider finding a local lender – such as a pawn shop – that will extend you a loan in exchange for something of value. Keep all of your options open.
How does that work out? Say your monthly payment is $900. You pay $900 to the loaner 12 times a year. However, a bi-weekly schedule means you pay 26 times a year, and only pay $450 per payment, which equates to 13 $900 payments per year, instead of 12.
While these tips can help you survive and overcome a debt crisis, you also need to remember that you have to follow some basic money management principles to avoid such a crisis again. And for this, the key is to control your expenses and keep track of your spending.