When you start a new business few people have the whole cash reserve required – and so one of the big questions about new companies is whether to choose debt or equity.

Firstly, it is important to understand the difference between debt and equity financing. Some of the key features and differences between debt and equity financing are outlined below:

Debt Financing  Read more... (561 words, 1 image, estimated 2:15 mins reading time)

• Must be repaid/refinanced

The Financial Services Authority (FSA) has stepped in to look at the heavy-handed sales tactics employed by many sale and rent back companies.

Sale and rent back companies have seen a massive increase in growth over the past year thanks to the current recession. Many companies have cashed in on the fact that many people are struggling to keep up the repayments on their mortgage and coupled with other debts, they are looking for a quick way to get their hands on a large amount of cash whilst being able to stay in their homes.  Read more... (276 words, estimated 1:06 mins reading time)

Experts have warned that money management firms are misleading consumers by claiming that credit card debt can be written off my exploiting loopholes in the law.

Many companies are now claiming that clauses in the paperwork for credit cards are in breach of the Consumer Credit Act and this means that the contracts are unenforceable and the debt can therefore be wiped out.

Consumers have been warned that although this has been true with some credit card debt cases, this does not apply to the majority of people. Clients often have to pay a large fee up-front to these debt management companies, only to find out that they are unable to wipe their credit card debt out and are therefore left even further in debt and out of pocket.  Read more... (222 words, estimated 53 secs reading time)

The ads look too good to be true – firms who claim that they can cancel your loan agreements.

Most things which look too good to be true usually are, and in these cases, the old adage holds true. The bold promises made by these companies may actually see you end up out of pocket.

Usually, the base their claims on changes to the Consumer Credit Act which was brought out in 2008. This act aims to help protect individuals from ‘unfair relationships’. Previously, the act deemed agreements unenforceable if they met specific criteria for example very high interest rates that didn’t reflect the risk, however the changes have made the act a lot more of a grey area. ‘Unfair relationships’ is a very broad term that may have different meanings to different people.  Read more... (325 words, estimated 1:18 mins reading time)

Once you get into the habit of using a pawn shop, it can be a hard job to kick the habit. Many people can see this, but have no other alternatives to help make ends meet – pawnshops are an easy way of accessing quick cash and, like most things, have both positive and negative aspects associated with them.

So how exactly do they work? It’s actually a pretty straightforward process. A pawnbroker lends a customer a small amount of money in return for some collateral (jewellery, electrical items, mobile phones etc). This collateral normally has a slightly higher resale value than the loan given and acts as a guarantee for the loan. The beauty of using objects as collateral is that no credit checks need to be done.  Read more... (553 words, estimated 2:13 mins reading time)

With the credit crunch starting to bite, some families are finding it harder and harder to pay the bills. If you are struggling to make ends meet, what can you do? Here at MoneyTowers.com, we have put together a short guide of what to do if you find you can’t pay some of your bills.

Mortgageoffice furniture in Bulgaria
Your mortgage is probably one of the bills that should take priority over other bills. If you are starting to find it a struggle to pay your mortgage, it is never too early to contact your mortgage provider. If your local office is unhelpful, try giving head office a call. Your mortgage provider may be able to help you, perhaps through a payment holiday.  Read more... (741 words, estimated 2:58 mins reading time)

Banks and credit card providers love customers who have a relaxed attitude towards credit cards as these are the customers who lenders tend to make the most money from. Relaxed customers tend not to take a lot of interest in the ins and outs of their credit cards and aren’t too fussed how much they use the credit card each month, or how much they pay off each month. These are the customers who tend to subsidize the customers who take advantage of the 0% deals that the banks offer.  Read more... (662 words, estimated 2:39 mins reading time)