The idea of cashing on a pension can sound a misguided and hasty decision. The Financial Services Authority makes it clear in most instances you will receive less amount when you cash in your pension than waiting for the retirement age.
One of the things you need to assess is the immediate need for cash you have. Do you serious need the cash? It is human to want more cash. Thus, it is necessary to be impartial at that stage and choose whether you should release your pension.
If you find it is necessary to proceed with Cashing In Pension, you will get adequate advice about potential losses of unlocking funds. A professional adviser will offer different of options to help you make most of your pension plan. For instance, you can cash about 20% of the pension tax-free, and the remaining amount will be used to offer an income. How much is the income after cashing your pension will depend on several factors like type of scheme. The type of scheme can either be an occupational or personal pension. You will be advised accordingly by an expert financial analyst.
After getting all the information you need, there is a need to follow the right process of cashing in for usage. The process is well-handled by an accredited and experienced person in the field.
Reasons to cash in your pension
There are several reasons quoted for pension release. Some of them include:
- Paying off your debts and credit cards – a lot of people are in debt nowadays
- Helping out your children – it is very difficult for the young people to venture into property
- Paying off your mortgage – It is a satisfying action, and there are several endowment policies, which have failed to meet expectations with current and unexpected arrears.
- Holidays – nowadays, cruises are quite popular amongst pre-retirement generation
- Luxuries – these include cars, extension, adding a new kitchen, and much more
It is true taking money out of your pension plan can greatly reduce the amount of income, which you can get on your retirement. It is necessary to give adequate consideration before you start to release the cash from the pension. Moreover, any reduction of your future retirement can affect both you and your family. Before you decide to go for this option, you should decide whether you have adequate money to survive through the retirement. There are many companies that specialize in pension release.
Accepting credit cards in business for the first time may appear a very complicated process. However, it is not as difficult as most people believe. This article offers a complete guide towards the whole credit card processing transaction. First, it is important to know that there are five different parties involved in the exchange of information, making the entire process appear simple.
A Guide to credit card processing for business
The five parties involved
The Cardholder – The person who holds the credit card account, also known as your customer.
The Merchant – The business (you) who accepts the cardholder’s credit card as payment.
The Issuer – The financial institution or organization issuing the credit to the cardholder.
The Acquirer – The financial institution or organization providing the merchant processing services.
The Card Association – The network (VISA, MasterCard, Discover, etc.) providing funding and authorization between the acquirer and issuer.
The process involved
When processing credit cards, card associations manage the flow of information and money between the five parties. Known as interchanging, it includes several steps that turn a simple sales transaction into cash in your bank account.
Authorization – The first step is authorization. When the cardholder presents a credit card to a merchant for payment, the acquirer checks with the appropriate issuer to verify the transaction amount and card number before processing the initial transaction. Those who have ever used your credit card to make an in-person purchase, you know this happens almost instantly.
Batching – After being authorized and validated, the transaction is stored in a ‘batch’ or group of transactions, until it is time to send the entire batch to the acquirer for the payment. This is usually done at the end of the business day, but it can vary.
Clearing and Settling- The acquirer sends the batches to the issuer for payment, done through the card associations representing the batched transactions. They use the pci saq types for security reasons during the process. The issuer credits the acquirer before debiting the cardholder’s credit account.
Funding – After receiving payment from the issuer, the acquirer sends payment to the merchant minus the fees charged by the acquirer for the processing service.
The entire process takes approximately three business days from the initial sales transaction to the merchant receiving payment. It can seem complicated because of the number of parties and processes involved in completing a credit card transaction. However, if you want to grow your business, you should consider accepting credit cards more often. It’s as simple as selecting a merchant processing services company and opening a credit card processing account.
IVA (Individual Voluntary Arrangement) is an option to bankruptcy. In this, an agreement is reached between the lender and borrower to pay back the debt within five years in periodic installments. It is a solution proposed by the government itself after the Insolvency Act, 1986.
There are some advantages of Individual Voluntary Arrangements, especially when compared to bankruptcy. As illustrated on Creditfix – Individual voluntary arrangement, an IVA is vital for debt settlement. Below are some of its benefits.
Benefits of IVA
No work restriction
There is no restriction on where you work and in what capacity when you opt for an IVA, unlike bankruptcy, where you are deprived of working in several positions and armed forces. In an IVA, you can continue in your present line of work even while you pay back your debts. Unless mentioned in the contract, you are usually not liable to tell even your employer about being in an IVA.
It is a private affair
An IVA arrangement is a private affair between you and the creditor. It does not attract the same publicity as a case of bankruptcy does. It is not advertised in the newspaper, and nobody knows unless you choose to tell them yourself.
You can quickly pay off all your debt within five years
You can pay off your debt earlier than this if you can come up with a lump sum payment. After this period, you are not only debt free but also free to do anything you want. Unlike after a bankruptcy, you are not prohibited from starting a new business after paying off your debts through an IVA, although some creditors may choose to extend credit under a much higher interest rate.
You pay less than the original amount
With an IVA, you usually end up paying less than the original price. After you have paid up your debt, the creditors can no longer approach you with any demands or conditions. It is advisable not to propose any less than 25% of the original debt value, or the IVA may be rejected.
You liquidate when you want
You are not compelled to sell your house or other property, unlike with bankruptcy. However, you may want to liquidate some of your assets to pay off your debts, but that is entirely your choice.
No harassment from creditors
The creditors cannot harass you or demand money by any other means if you are paying them through an IVA and you are rigorously following its terms and rules. However, defaulting on your payments may give the creditors the right to demand money in any way they deem right.