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A New Year's Resolution When Someone Asks to Borrow Money from You

Los Angeles, CA (ContentDesk) December 31, 2005 -- A recent Federal Reserve survey claims that about 10% of Americans have loans that have been extended to friends and family. These loans total a whopping $89 billion and feature a double-digit default rate of 14%, versus just 1% for those who borrow from a bank. According to real estate broker Bob Boog, author of Selling Homes 1-2-3, more and more people are being pressured to help finance a family member's home purchase. Due to the sky-high default rate, and to help avoid a potentially unpleasant situation; this year, before grabbing a checkbook and doling out dollars, make it a resolution to consider these seven ideas:1. Dont commit right away.

It has been said that quick to borrow is always slow to pay. So while it's natural to show compassion for the friend or family member, tell them you would like to help, but explain that it's necessary to review your financial situation before making a decision. Oftentimes solutions can be found in the meantime, and the rich benefactor is no longer needed.2. Just say no. Blurting out a blunt no can feel good but sometimes make matters worse.

Consider the amount requested, and provide a logical explanation that will not damage the relationship. Perhaps a more favorable solution can be found that doesn't involve financial aid? 3. Make a counter-proposal. A smaller amount as a gift, with no expectations of repayment allows one to be generous and removes the potentially heated issue of non-repayment.4. Set clear expectations.

When loaning money, set specific goals, timelines and clear expectations. Don't beat around the bush about when and where to expect payment. Be very specific about the term of the loan, interest rate, payment plan, even the penalty that will be incurred should a payment be missed.5. Specify all terms in writing. Statistics claim that 7 out of 10 personal loans are not put in writing, which may help explain the high default rate.

Having a written agreement reinforces the repayment terms discussed, and prevents any potential misunderstandings. Promissory notes and contract forms can be purchased online at www.nolo.com for approximately $10. 6. Issue Receipts and Written Reminders. Keep track of the payments received by issuing receipts and written reminders.

If tracking the payments and issuing receipts is too cumbersome, visit www.circlelending.com. For a modest fee, Circle Lending will track the transactions and issue year-end tax statements. 7.
Consult with a CPA. If the loan is in excess of $10,000 or the money will finance income producing activities, the IRS will expect a certain amount of interest to be charged.

To find the current rates, visit www.irs.gov and search for AFR (Applicable Federal Rates). Or, contact a trusted CPA for advice.Sometimes an extenuating circumstance makes it near impossible to avoid lending funds to a friend or family member. But when it comes to lending money, it is wise to cover your assets. After all its your hard earned funds that are at risk. So this year, if put under the pressure to lend money, resolve to use these seven ideas.

It may help everyone stay on friendlier terms, and avoid the nonrepayment blues. Happy New Year!Bob Boog is a licensed real estate broker and author of Selling Homes 1-2-3. His most recent book is: Finding Killer Real Estate Deals: Proven Insider Secrets for Investors, Real Estate Agents and Bargain Hunters Like You.

Are There Good Opportunities In Home Based Proofreading Jobs?

There are many opportunities, in fact, in home based proofreading jobs. But, before you can get them, and keep them coming, you'll need a good set of skills. Proof reading in general is more than just reading and correcting text. It is much more detailed and requires a good level of skill. Most proofreaders are educated in how to do this.

They did not simply open their doors and work flooded in. Home based proofreading jobs are more and more accepted though. If you are looking for a way in, you'll need to consider several things first. Freelance means that you work for yourself. You build your own business through your own skills.

It is not a way to make instant money. In fact, if you do get a job without any skills, you are more than likely not going to make much after that if you do a bad job. Proof reading is more detailed than you think. In fact, a proof reader must be able to ensure a piece of writing flows and makes sense. They need to help make the piece work. <...

Are There Good Opportunities In Home Based Proofreading Jobs?

Home loans > Are There Good Opportunities In Home Based Proofreading Jobs?

Bad Credit Home Financing - Buy A House Even With Poor Credit

Sub prime lenders come in two groups: reasonable and unreasonable. Reasonable sub prime lenders offer mortgage financing to high risk borrowers with slightly increased rates and fees. Unreasonable sub prime lenders charge several extra points and excessively high fees. Only through comparative shopping can you know if a particular lender is offering reasonable or unreasonable rates. Compare RatesComparing rates is easy through online lender websites.

By entering basic information, you can quickly receive quotes from several mortgage lenders. These quotes will give you a rough idea of who offers the most competitive packages. Be sure to add in fees and extra points when you are considering the cost of the loan.Real QuotesReal mortgage quotes require more information than just the loan amount and your income level. You will also need to provide information about your home's location, your down payment, and other personal information. After you have compared general quotes, you can...

Bad Credit Home Financing - Buy A House Even With Poor Credit

Home loans > Bad Credit Home Financing - Buy A House Even With Poor Credit