Those Struggling With Debt ‘Reveal Tell Tale Signs'

Those Struggling With Debt ‘Reveal Tell Tale Signs'
Problems in managing money can often contribute towards
many people performing poorly in the workplace, it has been
suggested.

According to Tony Urwin, occupational psychologist and
general manager of BUPA Psychological Services and BUPA
Wellness, more consumers could develop difficulties in
meeting numerous demands for payment on areas such as
utility bills, personal loans and credit cards. Such fiscal
problems could be increased even further as the country's
consumer debt level "escalates" and the "costly" festive
period is just a few weeks away. In addition, the recent
decision by the Bank of England to keep the base rate at
5.75 per cent means that borrowing costs on personal loans
and other types of credit remain at their highest level for
six years. As a result, employees were urged to be aware of
the various symptoms that having financial problems can
result in.

And with such monetary difficulties potentially causing
staff to take days off due to stress, underperform while in
the workplace and in some instances turn to criminal
behaviour in an attempt to pay off creditors, the
psychologist called on employers to do more to help their
workforce manage their finances.

Mr Urwin said: "A person whose financial future is
uncertain is highly likely to feel pressurised and unable
to cope. Their behaviour is, therefore, likely to be
similar to that of someone suffering from extreme stress.
The visible work-based symptoms of stress can include short
temperedness, an inability to plan and control work, poor
relationships with colleagues or clients and loss of
motivation.

"Other very simple tell-tale signs may be the start of
frequent private phone calls - as someone burdened by debt
may start receiving regular calls from their bank, credit
card company or other organisations chasing payment."

He also pointed to research revealing that conversations
about independent monetary advice and financial issues
account for three and two per cent respectively of all
calls received by employees via assistance programmes
managed by BUPA. Meanwhile, debt matters, whether about
credit cards or secured loans, make up two per cent of
discussions. Mr Urwin pointed out that, overall,
money-related problems comprise more calls to BUPA
helplines than substance abuse or trauma.

The psychologist added that the provision of independent
financial advice can help consumers learn to budget their
spending effectively and how to apply for debt
consolidation loans so as to get back on their financial
feet. In addition, Mr Urwin stated that such guidance could
see people become more aware about the implication of
filing for insolvency and how being in debt can have an
impact upon credit ratings.

Earlier this year, Axa reported that by using the 50
minutes of their working day they spend in social
networking websites and making personal phone calls to
instead organise their finances, many of Britain's
office-based workers could be in a better monetary position
in which to pay off bills, loans and credit cards.
Spokesperson Pat Brady claimed: "A lack of motivation to
deal with financial matters is arguably at the heart of our
country's enormous personal debt problem." Meanwhile, after
getting a clear idea of their money situation those who
find that expenditure significantly outweighs income may
wish to consider taking out a debt consolidation loan.

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Abbi Rouse writes for AllAboutLoans.co.uk, an online loans
comparison site, visit us today for information on all loan
topics including secured loans UK applications and
homeowner loans from all leading UK providers. Our Site:
http://www.allaboutloans.co.uk

Commercial Loan and Business Financing - Unusual Problems

Commercial Loan and Business Financing - Unusual Problems
There are a surprising number of problems which should be
anticipated when arranging a commercial loan. Several of
these potential business financing difficulties are
relatively unknown by most borrowers. These issues are
relevant for commercial real estate financing, business
opportunity investment loans and business cash advance
circumstances, although not all factors will apply to each
situation.

Commercial Loan Advisory Reports -

We have published separate commercial loan advisory reports
which provide a comprehensive discussion of the major
problems likely to be encountered in typical business
financing and commercial real estate loan circumstances.
For example, one report focuses on common business
opportunity investment financing difficulties. In another
report, we discussed the obstacles usually experienced with
SBA loan refinancing.

The Black Ice Analogy: Unseen Business Financing Problems -

The focus in this article is to highlight several of the
more obscure commercial loan problems. We consider these
often hidden business financing difficulties to be of
critical importance to a commercial borrower. Drivers
familiar with an extremely hazardous road condition known
as black ice (in which ice is largely invisible on the
road) will readily appreciate that unknown and unseen
business finance problems can be particularly hazardous to
the financial health of a business.

Online Business Finance Applications -

The first relatively unknown business financing problem
involves the increasing use of internet technology by
commercial lenders. Many commercial loan sites encourage
borrowers to submit an online application. This is not a
prudent way for a business owner to proceed with their
commercial financing.

It is important that business owners understand that it is
not in their best interest to submit an online business
financing application. For a more detailed understanding of
why an online commercial loan application is inadvisable
and how to proceed in a search for viable financing,
borrowers should review the report entitled How and Why to
Avoid the Online Business Loan Application Trap.

Recall Provisions for a Commercial Mortgage -

The next obscure but nevertheless serious business
financing problem to anticipate involves the use of loan
recall terms by a lender. Commercial loan recall covenants
mean that the lender can force the borrower to repay early
by calling the loan before it would normally expire. Many
traditional commercial lenders routinely place recall
clauses in their commercial mortgage conditions, but this
potential concern is not applicable to all borrowers since
some financing agreements will not allow a loan recall
possibility.

The circumstances which can cause a recall will vary but
can commonly include periodic lender review of financial
statements, tax returns and credit history. If prescribed
levels of income, credit scores or other benchmarks are not
present, then the lender will typically notify the
commercial borrower that they must pay off the loan within
a 30-90 day period.

With a commercial loan recall, borrowers will need to
refinance quickly. Prudent borrowers will exclude lenders
that require recall agreements when evaluating business
financing options. For commercial borrowers who have recall
provisions in their current business loan agreement, it
will be equally wise to consider refinancing their
commercial mortgage before a recall occurs so that
refinancing is accomplished according to the preferred
timetable of the business owner.

Balloon Payments and Short-term Business Loans -

Another often overlooked commercial financing problem is
the increasing emphasis on short-term financing by many
commercial lenders. How long is a long-term commercial
loan? Most business financing experts will advise a minimum
loan period varying from 10 years to 30 years depending on
the specific circumstances of the borrower. Unfortunately
many business lenders often consider three years as the
maximum period before a balloon payment will be due for a
commercial mortgage.

With a balloon payment condition, a business owner will be
required to either pay the remaining loan balance or
refinance. This kind of loan is a short-term commercial
loan instead of long-term and should be avoided whenever
feasible. Longer-term business financing will often be the
critical difference that facilitates a successful business
investment because new financing will not be required for
many years and business loan payments will usually be
reduced.

Inexperienced Commercial Real Estate Loan Lenders and
Advisors -

The final example of a problem that is not obvious to most
commercial borrowers involves a shortage of business loan
experts providing candid advice to business owners. The
process of business investing and business financing has
become more specialized during the past few years. There
have been some recent real estate and business investment
developments that have made this process even more
complicated. The current turmoil in residential real estate
investment property has resulted in an increasing number of
residential lenders and advisors attempting to become
active in commercial loan activities.

This is an almost impossible transition for most
residential lenders and advisors. There are over 25
critical differences between residential and commercial
property investing. As a result, these new and
inexperienced commercial financing advisors frequently
provide woefully inadequate advice and potentially
disastrous business financing for their clients.

How to Avoid These and Other Commercial Financing Problems -

What can commercial borrowers do to avoid a similar fate? A
pragmatic approach is to explore additional resources that
will facilitate a better understanding of complex business
finance issues. The Commercial Real Estate Investment
Property Loan and Business Finance Guide is one example of
business financing resources that will provide strategies
and solutions for many problematic commercial loan
circumstances.

----------------------------------------------------
Stephen Bush and AEX Commercial Financing Group provide
business finance - commercial real estate loan help and AEX
Investment Commercial Loan - Commercial Mortgage Reports:
http://www.real-estate-investment-property.com

Philadelphia Condominiums- Are They all ripe for flipping?

Philadelphia Condominiums- Are They all ripe for flipping?
As a Center City realtor in the downtown Philly area for
over nineteen years, I am often asked whether or not a
certain condo-be it an Old City loft, or a Rittenhouse
Square penthouse, is "flip-worthy". Often times the answer
is yes, but more often than not, the answer is no. There
are a number of deterrents which may limit one's ability to
flip a condominium in the downtown Philly area, and make a
profit. From high in and out costs, to an abundance of
existing inventory, to the plain nature of Philadelphia
real estate, the notion of making a quick buck can
sometimes be more of a myth than a reality.

To begin with, the transfer tax imposed on the sale of any
piece of real estate in Philadelphia is high. The city
imposes a four (4) percent transfer tax on every sale.
Almost always split between buyer and seller, this fee adds
a substantial weight to costs of attempting to turn say a
Rittenhouse Square condo, or an Old City loft into a quick
buck. So to buy, and to turn around and sell, one would
need to subtract four percent to their potential profit
margins-two percent upon purchase, and then another two
percent when they go to sell the property. Add this to the
normal fees associated with buying and selling Philadelphia
condos, and you have just had a fairly large bite taken out
of your potential profits.

Add that element to the fact that if you are buying, say a
high rise luxury penthouse condo in Rittenhouse Square, in
a building with two hundred units in total, you would need
to probably wait until the building sells out, in order for
there to be demand for your unit. I mean, why would someone
want to buy your condo, if the developer still has 74 units
to unload? That particular developer may be able to offer
incentives to attract buyers-be it an upgraded bathroom, a
flat screen TV, or otherwise do some customizing to the
unit that you may not be in a position to do to your lone
unit that you have on the market. So why would a buyer
want to look at your unit-a unit you have clearly marked up
in price (to cover your in and out costs, not to mention
your profit margin), when there is some substitutability in
the market place for him or her to go directly to the
developer, and strike a deal? Unless you got in on the
"ground floor" of a new Philadelphia condominium project,
and the developer simply "gave" you a unit at a steep
discount, then there would really be no incentive for
another buyer to come along and pay you a premium for your
lone unit.

Lastly, I see one of the main restrictions or limitations
to flipping a condominium in Center City to be plain old
greed. Let's say a buyer buys a condo in Rittenhouse Square
for any given price. I often times see that unit come back
on the market rather quickly, asking a thirty percent
markup. But one needs to ask, why? Where did that instant
appreciation come from? Thin air? Is there any concrete
reason why another buyer would be willing to pay such a
steep increase in price for a Center City condominium? Am I
missing something here? Philadelphia real estate is not the
kind of investment that generally has such a rapid
appreciation rate. We are the classic example of the
tortoise and the hare....and we are not the hare. Slow and
steady had always won the race for those looking to invest
into, say, an Old City loft, or a Society Hill condo. No
bubble here as values have a tendency to creep along at a
slow steady pace. And even if the developer has raised his
prices twenty percent since you bought your condo, that
doesn't mean that all Philadelphia condos have risen twenty
percent in value. An asking price is just that-an asking
price. One should not assume that such a price is
reflective of the true market value of real estate in
Center City.

I hope I have adequately illustrated that some condominiums
in Philadelphia are not worthy of a quick flip. Real estate
in Center City is more of a long term "hold" investment.
And generally speaking, with the barriers to resale-high in
and out costs, coupled with an bit of an excess in new
construction, high rise condos in the downtown area, one
might be better off buying a condo that has little
substitutability, and is more of a "dog"....a unit that
they can buy that is an ugly duckling, and turn it into a
swan. I believe buyers want to see value for what they are
buying, and cosmetic improvements almost always add up to
an appreciable increase in resale value, whereas a simple
flip might limit one's ability to make a profit on such a
buy and re-sell approach to looking for a profit.

As a REALTOR and homeowner here in town, I'd say that your
best bet here in Center City Philadelphia is a long term
approach. Your steady property value appreciation will pay
off in the end when you are ready to sell a few years down
the line.

----------------------------------------------------
Mark Wade is a Philadelphia REALTOR who is "the" Center
City Philadelphia condominium specialist. Mark's vast
knowledge of what's trendy and which finishes buyers look
for when selecting a home hope both buyers and sellers of
Philadelphia real estate make the most of their investments.
View Center City condos for sale at
http://www.CenterCityCondos.com