Uncovering The Hidden Benefits Of Debt Consolidation

If you’re like most people, you probably think of debt consolidation as a way to get out of debt. While it is certainly that, it’s also much more than that. There are many hidden benefits to debt consolidation that many people don’t know about.

In this article, we will discuss the hidden benefits of debt consolidation and how it can help improve your financial situation.

1. It can help you save money

When you consolidate your debt, you are essentially taking out one loan to pay off multiple debts. This can help you save money in several ways. First, it can help you get a lower interest rate. If you have multiple debts with high-interest rates, consolidating them into one loan with a lower interest rate will save you money on interest payments. Second, it can help you reduce or eliminate late fees and other penalties. If you have multiple debts that are constantly incurring late fees and other penalties, consolidating them into one loan can help you save money in the long run. Finally, it can help simplify your finances by giving you one monthly payment instead of multiple payments.

The subject of debt consolidation is a sensitive one for many people, but the truth is, it can be a very effective way to improve your financial situation. This can also lead to savings by helping you get out of debt faster.

2. It can help improve your credit score

Another hidden benefit of debt consolidation is that it can help improve your credit score. If you have multiple debts with different creditors, your credit score will take a hit. This is because your credit utilisation ratio (the amount of debt you have compared to your credit limit) will be higher. When you consolidate your debt into one loan, your credit utilisation ratio will go down, which can help improve your credit score. In addition, if you’re able to get a lower interest rate on your consolidated loan, that will also help improve your credit score.

Also, by consolidating your debt, you will have fewer accounts on your credit report, which can also help improve your credit score.

3. It can give you peace of mind

One of the most important but often overlooked benefits of debt consolidation is that it can give you peace of mind. If you’re constantly worrying about how you’re going to make your multiple monthly payments, consolidating your debt into one loan can help ease that stress. In addition, by consolidating your debt, you can get a fixed interest rate, which can help you budget and plan for your monthly payments.

Knowing that you have a set monthly payment can go a long way in giving you peace of mind. Also, by consolidating your debt, you will be able to see your progress in paying off your debt, which can also help give you peace of mind.

4. It can help you become debt-free

Of course, the ultimate goal of debt consolidation is to become debt-free. By consolidating your debt into one loan and getting a lower interest rate, you will be able to pay off your debt faster. In addition, by making only one monthly payment, you will be less likely to miss a payment, which can help you become debt-free even faster. And, by consolidating your debt, you will be able to better manage your finances and become more disciplined with your spending, which can also help you become debt-free.

Some people are hesitant to consolidate their debt because they think it will make their debt situation worse. But the truth is if done correctly, consolidating your debt can be a very effective way to improve your financial situation and help you become debt-free.

5. It’s easy to get started

One of the best things about debt consolidation is that it’s easy to get started. Several companies offer debt consolidation services. In addition, several online tools can help you consolidate your debt. And, most importantly, consolidating your debt is a very personal decision and there is no one-size-fits-all solution. So, if you’re thinking about consolidating your debt, be sure to do your research and find the best option for your unique situation. It can truly be a life-changing decision.

Debt consolidation is not right for everyone but it can be a very effective way to improve your financial situation. If you’re struggling with multiple debts and high-interest rates, consolidating them into one loan could save you money and help improve your credit score. It’s important to do your research and speak with a financial advisor to make sure debt consolidation is right for you. Good luck!

Advice For Small Business Owners: How to Avoid Closure

Unfortunately, there are a lot of small businesses out there which are currently struggling more than ever. It has been a busy year for business and now there are plenty of new companies cropping up each day. The competition is getting fiercer and is it becoming more difficult to stay afloat.

Most small businesses fail due to financial issues. Today, we will be discussing what small business owners can do to avoid closure whilst increasing that all-important profitability.

Assess Your Finances

To determine the success of your business and whether you can afford to keep operations running, it is important that you regularly assess your finances. Start by tracking how much money goes out of the business compared to what is going in. Ask yourself – is the cash flow steady enough?

If it is not, then you will need to start looking into areas where you can cut costs. Investigate all areas of operations and you will be sure to find areas that can afford a cut back. If you need to find ways to cut costs in your small business, then you can also turn to the internet for help. It is packed full of helpful blogs and articles which can steer you in the right direction.

Pay Off Your Debts

Any debt that your business owns will need to be paid. You can try ignoring them, but they won’t go away, and they will only make your financial situation a lot worse. When it comes to paying off your debts you should prioritise them. Some will be more important to pay off than others. Taxes are one of the most critical debts for small businesses. It is important to remember, tax money belongs to the government and not your business. So, you should always place this as a number one priority.

Failure to pay off your debts could result in the closure of your business. Future Strategy know all too well about that as they have helped hundreds of small business owners in the closing down of their businesses over the years. It is a complex process and one you want to try and avoid.

Don’t Hesitate to Talk to Lenders

Clear lines of communication are crucial in business. If you are in times of financial hardship it can help to have a good relationship with your lenders at it can help to ease the situation of a late payment. For example, if you are unable to make scheduled payments on your business loans then speak to the lender at your nearest convenience. If you default a loan, it can have serious consequences. You may be subject to a late fee or lower your credit score. You may be able to avoid this if you can promptly explain your situation to your lender.

Being confident with communication doesn’t come naturally to all business owners. This is why it is advised that you look into ways that you can brush up on these skills. You can learn more about how to get confident with communication through various online resources.

Global Law Firm Advises McCormick & Company

Hogan Lovells law firm has advised McCormick & Company on an aggregate of United States $1bn of new debt issuances.

A debt issue refers to a financial obligation that allows the issuer to raise funds by promising to repay the lender at a certain point in the future and in accordance with the terms of the contract.

A debt issue is a fixed corporate or government obligation such as a bond or debenture.

McCormick is an American food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavouring products to retail outlets, food manufacturers, and foodservice businesses.

The Hogan Lovells team advising McCormick was led by capital markets partners Alex Bahn and Eve Howard, tax partner Scott Lilienthal, capital markets senior associate Phillip Schuster, corporate associate Sarah Branch, and tax senior associate Caitlin Piper.

McCormick, which manufactures, markets and distributes spices, seasoning mixes, condiments and other flavourful products to the entire food industry, offered and sold $500 million USD aggregate principal amount of 0.900% notes due 2026, and $500 million USD aggregate principal amount of 1.850% notes due 2031.

The Hogan Lovells United States capital markets team regularly advises clients on complex and high-value offerings of debt, equity, and hybrid securities. Our issuer clients include some of the most recognisable corporate names in America.

We are able to structure and execute capital markets transactions in order to maximise client goals, including developing innovative transactional structures.

Direct Lending Fell by 29% in Europe

Direct lending is the provision of credit directly to small and middle market companies for growth or acquisitions. With mainstream banks reducing their supply of loans, new sources of finance have developed.

Non-bank or direct lending saw a total of 140 European deals in the first half of 2020, compared to 197 for the same period last year, a decrease of 29%.

The latest Alternative Lender Deal Tracker from Deloitte showed deal count dramatically slowing as the COVID-19 pandemic impacted the private debt markets, especially in Q2 when the volume of deals fell by 58%, compared to the same period in 2019.

The majority of the deals were mergers and acquisitions related with 67% of the European deals being used to fund a buy-out. Out of the 447 deals in the last 12 months, 83 deals did not involve a private equity sponsor, which is in line with the previous year.

Deloitte’s deal tracker also revealed that within the United Kingdom, business services have been the dominant user of Alternative Lending accounting for 29% of the total deals, followed by the technology, media and telecommunications sector at 19%.

Floris Hovingh, head of Alternative Capital Solutions at Deloitte, commented: “One impact of the COVID-19 pandemic has been for direct lenders to hit the pause button during the second quarter of this year.

However, they have become very active again in the second half of the year as pressure on deployment catches up and mergers and acquisitions activity rises.

Hovingh continued: “The lending market has become somewhat binary. Companies that have proven to be resilient in the pandemic are much sought after and commercial terms offered are not far off from pre-pandemic times. In contrast, impacted sectors have of course been given a wide berth.

Deloitte is a multinational professional services network with offices in over 150 countries and territories around the world.