global competition

Living in a small town, I hear too often about the effects of large corporations like WalMart and their effect on the traditional "Mom and Pop" type stores. When it comes down to it, the small business owner just cannot compete with the super-efficient operating costs of these huge corporations. They end up getting creamed in their own market when these large companies move into town.

So what about the internet? How is global competition affecting our traditional small business owners? That's a difficult question to find an answer. One one hand, you've got small business owners making more money on the internet than they could make with a brick and mortar store, and the overhead is non-existent. On the other hand, you either have to be very loyal to your local bank or their employees would have to be awfully nice in order for you to look past all of the banking opportunities available on the internet.

For example, you could visit an internet-based site featuring really cheap loans, like this one called Nice Loans was listed at PPP, and get immediate answers to all of your loan questions. If you were back home at your local bank, you'd likely be stuck in line, and then you'd be sitting with someone trying to explain what type of loan or account you were looking for. It's a rare occasion that they hand you all of their information, and then allow you the time to make your own decisions. That is the advantage of the internet. Surf on by at midnight in your underwear if you'd like, check out the deals that can be had. Sites like NiceLoans offer information and helpful tools like loan calculators and you never have to leave the comfort of your own home.

holiday loaner

Well, we're in the crux of the holidays, and you know what that means - debt. Lots of it, for many people. Just today, I was conversing with my uncle about credit cards, loans and what one might commonly refer to as "smart debt".

It's so easy to fall back on high rate credit cards during the holidays and spend more than you should. In fact, I'm not surprised that bankruptcies are still a common occurrence. Not everyone has a family member or friend to financially "fall back on", and my uncle and I were discussing what those people can do when they are really in financial trouble.

For example, I know several people who are living paycheck to paycheck, and drive vehicles that are not very dependable. What happens when their car's transmission falls apart and they get a $1400 repair bill? In some cases, the automotive shop is willing to allow them to make payments. But what happens if they don't? In many cases, those high-APR credit cards come to the (temporary) rescue. For some, it is a catch 22, as the loss of their car further cripples their situation by making it difficult to commute to work and make more money. Most of them state that they cannot afford a more reliable car, but this could also be seen as one of those "spend more now, save more later" situations, *if* they have the money to spend now.

Those who are lucky enough to be homeowners with some equity can go for a line of credit or home equity loan. Personal loans are definitely a better option when you compare their low rates to that of the typical credit card, if the borrower has good enough credit to be approved. Some people who are having trouble just paying their monthly mortgages find relief in the form of refinancing, assuming that the refinance charges are manageable. Still others are finding interest-only loans to be the best answer for borrowing the maximum while paying the minimum, but these types of loans tend to work best for people who are looking at homes that will appreciate in value quickly on their own.

Personally, I'd recommend working with a debt consolidation specialist if you find yourself drowning in debt. We went to one, and while they don't pay back your loans for you, they definitely help you to evaluate your relationship with debt and come up with a "battle plan" to eliminate the debt that hurts the most, and how to better avoid it in the future.