Category: Debts

Loan Options Available if You Have Less Than Perfect Credit

loan approvalMost people will encounter a time in their lives where they fall short on cash and need to borrow to cover their expenses. If you have a savings established you simply have to make a quick withdrawal. However, if you have no savings set up for emergencies and your credit is less than perfect you may think that you have no options. Luckily there are lenders willing to loan money to people who have a lower credit score, as well as other options available.

Short Term Loans

When you think of short-term loans, you may think that the only one you will qualify for is a very high-interest payday loan. Thankfully, there are payday loan alternatives. There are online lenders who offer low-monthly installment loans to people with less than perfect credit. And, unlike a payday loan, you have several different repayment options.

Title Loans

If you own your vehicle, there are lenders who are willing to use your car as collateral against a loan. Depending on the Blue Book value, this type of loan can give you access to more money than a short-term loan.

401K

If your company has a 401k plan and you are a contributor, you can borrow up to 50 percent of the vested amount. Since you are borrowing the money from you, the chances for a quick approval are very good. The best part about this type of loan is that while you will pay interest, you pay it back to you.

Pension

While you should never touch a retirement fund. If an emergency arises and you need the cash to prevent losing your home or your vehicle, and the company you work for allows it can give you access to a lot of cash in a lump sum. If you are less than 59.5-years old there is an additional fee of 10 percent plus the 20 percent withheld for the IRS.

Borrowing from Family

If you don’t have a savings account, a 401K or a pension that you can withdraw from, you can see if a family member is willing to give you a loan. If someone in your family does front you a loan, remember to treat it the same as you would any other lender. Come to an agreement before accepting the loan and then stick to it. It’s very easy to put a family member on the back burner and pay other bills first. Make every effort to repay per the terms agreed on and if you should have a rough month contact them and advise them when the next payment will be. This way you’ll stay on good terms should you need their help in the future.

Take on a Part-Time Job

If you find that you are having trouble making ends meet often, you may need to find a way to bring in more money each month. If you have a talent, you can sell items or services to fill in the gap until you reduce your overhead. If not, you may need to consider taking on a second job for a while to get you on your feet.

Hard times can happen to anyone. Maybe you lost your overtime or you have extra expenses like school or medical bills. Whatever the reason, there are many ways to dig out from under and get on an even platform. If your monthly expenses are very high, look at your bills and see where you can make cuts, even for the short-term. For instance, if you have a large cable bill, go to basic service. Also, if you eat out often, reduce it to once a month as a treat, brown bag your lunch for work and use coupons when going food shopping. By pulling in your belt, you will have the money you need to cover your expenses and work towards improving your credit score.

Don’t Let Your Home Be The Cause Of Financial Problems

home money issueWhile home ownership is the goal that many people share in life, very few homeowners actually consider the negatives of home ownership. That is until they are a problem for them. Although for the most part, home ownership is a fantastic financial choice, there are also times when owning a home can have a detrimental impact on your financial health. However, this is usually when you don’t take the necessary steps to protect yourself and your home from financial issues. To learn more about protecting yourself from financial problems that could be caused by your home, read on.

Protect your property from the unexpected

There are times in life when we choose to skip paying certain bills because we see them as being necessary. Whatever you do, don’t make property insurance ones of them. The fact is that anything could happen at any time, which is why taking out homeowners insurance from a reputable company like Trusted Choice is so important. Whether a storm hits and destroys your home, a house fire ruins your property, or a break-in leaves your home in tatters, it is vital that you have adequate protection in place. Every home needs insurance, because the fact is, you never know what might happen, and it is always best to be protected.

Make maintenance a priority

A common mistake that far too many homeowners make, which turns their properties into money pits, is not taking maintenance seriously. If you take the time look after your home and deal with any issues that occur as and when they do, your home should remain in better shape. However, if you leave these issues to worsen over time and don’t deal with them, then you may end up with a home that is falling apart and will cost a lot of money to put back together again. If you aren’t big on household DIY, don’t let that put you off of keeping up with your home’s maintenance, call out a contractor instead. Never put off with household problems as they will only end up costing you more to fix.

Invest for the future

If you want to ensure that should you want to sell your home in the future, you are able to do so easily, and for a good price, it is important to keep your property up to date. This means being willing to invest in new technologies as and when they are available, such as solar power, for instance. These kinds of investments will come at a cost, but the fact is that by choosing to invest in them, you can give yourself and your future the financial security needed. The more up to date a property is, the more easily it should sell.

There you have it, a guide to everything that you should know about ensuring that your home is not the cause of financial problems. Take note of the tips above, and you can make sure that home ownership does not leave you in a financial hole.

The Pros And Cons Of Your First Credit Card

money cardsYour first credit card is milestone in being able to stand on your own two feet. Not only can you improve your credit score, making mortgages more available to you, you can afford more bills and groceries each week, and you have plenty of backup cash in storage just in case of an emergency. However, we all know it isn’t simply sunshine and roses, so we need to think about the benefits and drawbacks of having a credit card. If you’re a young adult or someone older who never got the chance to before, and you’re just deciding to invest in a card of your own, here’s the biggest things for you to consider.

The Pro: Credit Cards Have Reward Systems

Credit cards, the more you use them, often have rewards for you to use at the end of the week or month. This makes them a lot more useful when it comes to shopping, and provides a little more incentive to use a credit card in a healthy manner. For your first card, looking into the systems each provider offers can require a bit of shopping around (to make sure you can use them for all purchases), so don’t make any decisions based on simple want alone!

The amount of different cards there out there means rewards can vary wildly from person to person. For example, with this in mind, you can get a variety of things on your credit card use, such as cashback for the standard types, or free flights for people using a travelling orientated card. It’s often a good idea to have more than one card in your possession, as being able to handle more than one at a time shows off how versatile and responsible you can be with money. It also means more rewards!

The Con: Debt Can Pile Up

Let’s face it, we can lie to ourselves a lot when it comes to money: ‘I need a new TV’ or ‘A few more dog treats won’t hurt!’ Even just thinking about the hypotheticals shows off how many different walks of life can bring in some debt when we let ourselves lose control.

At its core, credit is predatory, but that doesn’t mean we can’t use it safely. With this in mind, we can all agree that debt is a big drawback of using a credit card, and using your available credit too much is dangerous. Even the fact that credit card consolidation loans exist suggests that this is a common habit for people to fall into, so be aware of making excuses for yourself to use your credit card.

Don’t let yourself be intimidated by the amount of options there are on the market for getting a credit card. They’re there to help you rather than hinder you, and there’s no trap for you to fall into when you fully research terms and conditions, and any better alternatives! Balancing a checkbook gets easier and easier when information is so accessible like this.

Freedom Debt Relief Shares Old-Fashioned Savings Tips That Still Work

debt storyIt’s true that financial habits change as time passes, but there are some money saving methods that are tried and true. Adopting some of these old-fashioned savings tips recommended by Freedom Debt Relief will help you build your savings account. The money you save can be used to boost your emergency fund, pay off debt, or take your annual vacation without going into debt. With that said, there are a few time-tested savings methods you can adopt.

Get rid of marketing messages.

Once you give your contact information to a company, you open up the door for them to send your marketing messages. Companies send millions of dollars and lots of time crafting messages that will convince people to buy. It’s hard to resist the temptation of marketing messages, so opt-out of them completely. If you’re receiving marketing messages, click the unsubscribe button at the bottom of the email to stop receiving those message. That way, you never get hit with an advertisement.

Cut back on eating out.

Eating out at restaurants is enjoyable, but the cost adds up quickly, especially if you’re eating out several times each week. Reducing the number of meals you eat in restaurants will let you save hundreds, possibly even thousands of dollars each year. When you do eat out, don’t let leftovers go to waste. Portion sizes in the United States are large enough that you can take half your meal home and enjoy it for the next day’s lunch or dinner.

Don’t pay for things you can do for yourself.

While it may be more convenient to pay someone to do small repairs or other odd jobs, you’ll save money by doing things yourself. Picking up some basic sewing skills, for example, will allow you to make your own clothing repairs and avoid having to pay a seamstress. Freedom Debt Relief recommends using the internet to learn how to solve some of your basic repairs and save the big jobs for professionals.

Save your change.

A few dimes and nickels here and there doesn’t seem like much, but over the course of weeks and months that little bit of pocket change adds up. Get a separate change jar or bucket where you can collect you change. You might be tempted to dip into it every down and then, but leave it alone. The longer you let you change accumulate, the more you’ll have, says Freedom Debt Relief.

Avoid disposable items.

Let’s face it, many of us like to eliminate as much housework as possible. To accomplish that, we turn to disposable items like paper plates, cups, and cutlery. Not only do these items lead to more environmental waste, they also cause you to spend more money than necessary. It only takes a few minutes each day to do the dishes. Freedom Debt Relief advises families to simply make the sacrifice and avoid throwing money away on disposable items.

Get rid of debt.

With debt, we can purchase things now and then conveniently pay for them over a period of time. But, there’s a catch. When a lender gives you the option of paying for something in installments, you’re going to pay interest. The more you borrow, the higher your interest rate, and the longer it takes you to pay off the debt, the more you’ll pay in interest. You can potentially save thousands of dollars in interest, says Freedom Debt Relief, just by paying off debt faster. Look for extra money in your budget or find ways to increase your income and use the additional money to reduce your debt faster.

Don’t discount these methods because they seem old-fashioned. You’d be surprised to see just how much impact these savings strategies can make on your savings account.

Finances: Avoid Sorrow And Plan For Tomorrow

money planningFinances are a tough thing to manage. Even if you’re earning a high-figure salary, poor money-management can lead to a very sparse bank account. It’s not so much about the level of your income but what you do with that income. Even on a minimum wage salary, you can make those earnings go a very long way if you screw on your financial head and start to spend or save your money in sensible ways. It’s all about taking a look at all the necessary costs you face in life and then making smart decisions as to what you do with the rest of your money.

Of course, whilst you might be sailing on by smoothly at the moment, you have to think about the future. Earning a lot of money and spending it all is fine today because you’ll get another paycheck in a week. However, you need to start planning ahead for the day on which you retire because very few people want to work for the entirety of their lives. We’ll get onto that in more detail later, as we will with all the other points touched upon briefly in this introduction. If you want to avoid sorrow and start to plan for tomorrow then these sound nuggets of financial wisdom should help you on your way.

Organize your finances.

First of all, you need to get your house in order. “That’s why I clicked on this article,” you say. Fair enough. If you need a little guidance then you should start by making a budget for the month; you can do one weekly but planning for the month is always a nice place to start ( bills such as rent are often faced on a month-by-month basis). Write down how much you earn in a month. If you’re self-employed then write down an average and alter the budget on a monthly basis depending on whether your situation changes. Either way, you’ll end up returning to your budget frequently to make changes when things change in your life; whether you change energy providers, move house, reduce your petrol costs, and so on.

The most important thing is that you estimate how much your necessities cost; rent, food, utilities, everything else we’ve mentioned and anything else you can think of. Once you’ve added up the sum of these things, you’ll know how much money you have to set aside for necessities and how much disposable income you have left over. Don’t exceed this figure and you’ll never end up in debt. It’s that simple. Just don’t spend beyond your means. Cut down on expenses by using less energy around the house or cycling to work instead of wasting money on petrol.

Avoid debt.

Of course, continuing from the point above, if you’ve overspent in the past and had to borrow money to make ends meet then you should dedicate all available earnings to debt repayments; it’s important to pay off your debts in life as soon as possible in order to improve your credit score. Even if you don’t overspend, we all have to borrow money at some point (perhaps it’ll be for a car or a house). The point is that you shouldn’t borrow money to fund bad habits such as poor money-management, excessive shopping, or gambling. Track your expenditures so that you live within your means and your bank account will grow each month, even if only marginally. In terms of the future, you’ll thank yourself tomorrow for doing more to manage your money today. We’ll get onto smart ways to use your “excess income” throughout this article.

Think about your retirement.

It’s so important to plan ahead for your retirement. If you ended up on this article then this was probably already on your mind. You might be worried that you’re not earning enough from your job to provide for you and your family once you stop working. Perhaps your pension plan isn’t looking very good. It’s good to think about these things today because there’s always time to improve your situation before you retire. You might want to look into power of attorney solicitors who can act on your behalf if you’re thinking about a future in which you might not have the mental or physical capacity to manage your personal, business, or financial affairs.

Your retired years shouldn’t be filled with doom and gloom by any means but it’s smart to start thinking about tomorrow. You can make rational decisions regarding your finances today but you have to think about your later years. Will your family be well looked after? Do you want to authorize those close to you to make decisions for you if you no longer can for yourself? Sort out these things today and you won’t have to spend your retirement worrying about money or other things when you should be relaxing and enjoying life.

Get an advisor or an accountant.

Of course, you could go one step further than the suggestion in the point above. Even if you’re nowhere near retirement age yet, why wait until you’re older to start getting good financial advice? As explained throughout this article, you need to start taking action today to protect your finances for tomorrow, so it makes sense to get somebody to start helping you today as well. A financial advisor could help you out if you’re struggling to get your head around proper financial management, even with the advice given so far in this article.

It’s all very well to understand the concept of managing your money but life can get hectic and overwhelming very quickly. An advisor could take a load off your shoulders by teaching you how to better look after your money (and an accountant could help you file tax returns if you need other forms of financial aid). Better yet, there’s great return on your investment here; pay an advisor to help you and they’ll show you smart ways to invest your savings to make more money. Remember, this is in their interests because they’re getting paid to help you; they want you to do well financially. You’ll end up more than making back the money you’ve spent.