Category: Finance

Five Debt Management Tips To Prevent Future Debt Problem

It is easy to get into debt, but hard to get out from it. So, don’t let yourself have a chance to trap into it, else you need a lot of efforts and times to restore a debt free life. The most effective way to avoid any future debt problems is to learn how to manage your money. With a proper money management, you are in control on where and how your hard-earned money goes. In fact, you don’t need a complicated money management system, as long as you are able to manage it in a sensible way, a simple money management strategy will do the job. Follow the 5 easy to implement debt management tips to get a start:

1. Make use of the advantage of online banking

We live in an enhanced internet/online technology world where almost everything can be done online. Most banks have provided online banking facilities to their clients that include online bill payments. So, you should make use of the advantage of online banking bill payment facility to do as much of your debt management online as possible. With online banking, you don’t have to waste your time to queue at bank, or reach the bank within its business hours. Everything can be done from your computer, 24-hours a day and 7 days a week. It provides the flexibility and convenient for you to manage your bills online.

2. Limit the number of bills through debt consolidation

The key factor that causes the debt problem is unmanaged multiple bills. Therefore, limit the number of bills will help you manage your debt more effectively. If you have a number of credit card with balances and ongoing loan repayments, debt consolidation into a consolidation loan helps combine these bills into a single monthly payment for ease of debt management.

3. Use automated payment system

In order to make your debt management process much easier, you can choose to make the monthly payments via automated payment system. Most banks do provide automated payment system via online banking, you can set standing instructions to authorize your creditors to auto deduct the monthly payment from your account. It makes easy for you as you don’t have to remember the due date of each payment, everything can be done by the automated payment system. You just need to make sure your account has sufficient fund to be auto paid to your creditors.

4. Don’t have too many bank accounts

Most people have more than one bank account. You may want to manage your money with different bank accounts, but don’t have too many of them as it may cause you to have problem tracking it and you are unable to manage your money effectively. Moreover, having too many bank accounts also means you need to pay more fees to maintain these accounts. Therefore, just keep the minimum number of bank accounts for effective money management.

5. Save an emergency fund

Sometimes, things not go as we wish. Unforeseen circumstances like major critical illnesses may hit us or our loved ones any time. You will need urgent money when it hits you. If you don’t have savings in your bank accounts, you may need to pay the bills with credit cards, by getting high interest rate quick loan or by withdrawing cash advances. Using the money you don’t own to pay the bills may lead you to a debt problem. Therefore, it is important for you to save an emergency fund to be used when urgent cash is needed.

Simple Credit Tips For Students

There is no question that having a good credit record is more significant these days than ever before. We may be aware of it or not, but the truth is that most of the financial aspects in our lives are very much dependent on our credit scores. As students in need of taking student loans, there are several credit tips for students that will make it easier to maintain a clear credit background.

-Open checking or savings accounts.

If you wish to start a credit record the right way, it is best to initially have your own checking or savings account. This will prove to be very beneficial and useful in the end. You then had better get yourself a student credit card. But make no mistake about it; you are not supposed to use your credit card to enjoy spending. You will be using your credit card only on things that are necessary. One of the best credit tips for students that you will find everywhere is to let your credit value and reliability increase through the help of the transactions you make every day.

-Never get multiple credit cards.

You are a student and you should realize the fact that there isn’t so much need for you to spend so much money. If you have one credit card and you use it to buy only the things you need, then that should be enough. While the credit limit of a student credit card is rather low, you can certainly get higher limits as you consistently pay off your dues on time. This is always one of the credit tips for students because it has been proven many times that letting a student have more than one credit cards leads to future credit and financial problems.

-Set your budget and stick to it.

This is definitely among the most challenging and vital credit tips for students, because it would need you to have self-discipline to be able to maintain this. Have a list of all your expenses in a month, putting the most important expenditure first. This will remind you of what you need to prioritize when it comes to budgeting. Make sure also that you do not spend money on things not included on the list.

-Be a responsible payer.

Always make it a point to pay all your credit card debt on time. Try to develop the attitude and habit of gaining satisfaction from paying your debts. It doesn’t matter whether you are a day or a month late in paying your dues, as either case will definitely affect your credit record negatively. Paying your bills on time will also increase your chances of being granted higher credit limits, which is a good result of following these credit tips for students.

-Regularly check your credit reports.

Although you are just a student and you don’t have a significant credit history yet, you are still a potential victim of identity theft. See to it that nothing strange is taking place in your credit record by checking on even one of the credit bureaus every once in a while.

Budgeting Tips to Help Keep You Going

Budgeting tips will help a lot of people, especially those who are still in the early stages of the practice of budgeting because they are looking for reliable and usable information. Budgeting in itself is quite a hard, restricting process so many people who are not very used to this type of activity find themselves slowly going back to where they originally started. So, if you are one of those people who are already giving up on budgeting, what can you do? You do not want to go back to a life of senseless spending, but you also don’t think you could take a life full of limitations. Well, fret no more, here are some budgeting tips to help you with your problems.

First, think of this as training for your children as well. Many people who have engaged in the practice of budgeting find themselves being lost somewhere in the middle. This is because they start to feel the hardships of living with limited resources. When you notice that this kind of viewpoint is getting to you, think of all the reasons why you wanted to do this in the first place. And most importantly, think of the life lesson that you are giving to your children at the early stage of their life. Don’t just think about escaping possible debts and unnecessary financial obligations, but think about your children not getting into this kind of trouble in the future.

Then, keep a clear mind. Sometimes what really brings you down and stops you from pursuing your goal are the misleading thoughts you have in your head. Whether they be the pressures of work or of school, forget about them the moment you get home. Too much thinking leads to stress, and stress causes you to feel really exhausted and eventually drives you to break down. If this happens, you lose your focus with everything, especially with budgeting.

I know personally that to have a restricted allowance is truly difficult. Nevertheless, it is the most rewarding of all when you overcome this obstacle. Don’t worry because the hard part is really at the beginning. Once you get past that, budgeting will surely be a piece of cake for you. So take these budgeting tips whenever you feel you can’t do it anymore. And just like everything else you do in life, “No pain, no gain”. I’m happy to share a few budgeting tips to actually reduce the pain for you and hope it helps to keep you on a budget.

5 Hot Tips to Get Out of Debt Now

Your debt is out of control and the stress is eating you alive. You desperately need some debt management tips to keep you from going crazy. Sound familiar?

Credit is available to almost anyone. The problem we run into is using too much of it and falling deep into debt. With the state of the economy our country is in today, we find ourselves in situations we had never been in before: payments are late and/or take too large a portion of our incomes. Learning to deal with our family’s financial security may be something new for many of us. Wanting to avoid bankruptcy or developing a bad credit history, we become depressed because of the situation we find ourselves in. We become angry because we feel there is no way out of this situation. But using the following tips to get out of debt can help you take control of your finances once again.

There Are Ways to Get Out of Debt:
One of the first debt management tips should be to avoid making the minimum payment due on your credit cards. This will not help resolve the situation you are in. Ignoring the seriousness of the problem may only increase your financial liability and cause more problems in the long run. If you are already receiving annoying calls from debt collectors, if you are tired of feeling helpless because your debt is out of control, the help of a debt management expert can bring you the relief you’ve been searching for. Many people are afraid to look for outside help but feel confident; your personal information will be kept secure and confidential.

5 Simple Debt Management Tips:

  1. Do not apply for more credit. Increasing your debt is not a good idea.
  2. Make a list of your credit card interest rates and balances. Knowledge is power!
  3. Stop paying late fees and reduce your unsecured debt. Use your lower interest credit cards to pay off your higher interest cards.
  4. Getting a debt management expert can help you make a plan to get out of debt in as little as 12-36 months. Why make mistakes on your own when professionals can help decrease the time and stress involved.
  5. Avoid the need to file for bankruptcy and instead, work on rebuilding your credit history. Reducing your debt will help you to qualify for lower interest rates once you take control of your finances.

Don’t feel helpless any longer. Follow the above listed debt management tips and lower your levels of anxiety by taking action. Eliminate your debt once and for all with a solid plan.

Effective Credit Tips Applicable For Daily Living

Credits are inevitable. Almost all individuals have their own financial issues and dependence to credit cards, loans, etc. Nowadays, credit tips are very useful to maintain and improve a good credit rating. Being a responsible loan or debt payer is a good attitude that will surely gain the trust of other lenders. It is best to include in your everyday life to follow necessary guidelines or strategies in maintaining and rising up your credit scores. Do your best to create a better credit status. For more tips in managing your credits, you can actually refer to online websites wherein a lot of ideas and information are being offered and presented to help you come up with the best possible credit rating for you. You can also ask some advice from your friends and relatives who are having a successful debt management since experience is one of the best teachers in this world of trials and difficulties.

Start by obtaining a single credit card first before you finish your college education and do your best to maintain an excellent rating regarding your first credit card to a particular creditor. In maintaining a good credit rating, you should be able to identify your financial capacity. Do not spend beyond your means. Exceeding to your financial capacity might lead you to a great danger in the future that can also harm to the good credit score you are maintaining. Always think before you take action. Control your mind over your wants and desires for luxuries and convenience in life. Avoid missing your monthly bill. It is best if you will pay all your bills in full every month so that there will be no interest accumulation that will occur. As much as possible, spend within your means to maintain a low and affordable balance. If you think that you cannot catch up with the interest rate, better consult your creditor to discuss this matter so that early solution and action will take place before everything will ruin your good financial status.

Do not limit your choices to few lending companies, banks or creditors. There are so many great options in the market and even in online websites who offer reasonable and affordable interest rates. Make sure to opt for a good interest rate so that you won’t find a hard time paying them every time your bill arrives. If you already have enough cash to pay off your credits, immediately grab the chance to pay them early. The earlier you pay the lesser interest you will reimburse too. Aside from that, it will help you improve your credit score. As much as you can, pay your loans accordingly. Do not delay the payment of your bills because your creditors or lending company can make and send a report regarding your delayed pay to the credit reporting authorities. This will surely be a big blow to your credit status most especially if you are maintaining a high credit score. Maintain a good communication to your creditors so that you will be able to monitor your credits, loans or debts from time to time.

5 Ways to Help You Start Saving

What do you do every time a big expense comes up? Do you borrow, borrow, borrow? If the answer is yes, stop. Instead of borrowing, start allocating resources wisely. Save your money for the things you truly need. You can pay all your bills and still have a little extra left to put aside for the rainy days ahead. How? Here are a few budget tips.

1. Separate Your Wants From Needs – Do not mistake your wants for your needs; you will save more money that way. Identify what you cannot do without–clothing, food, shelter–and spend only for those. The rest can wait for when you have money set aside.

2. Shop Around – Are you sure you’re getting the best deal from your insurance agent or broker? Even if you think you do, shop around anyway. You can get a quote for free. Prices vary from company to company even for the same coverage. So shop around, ask for higher deductibles if you can, avail of discounts for low mileage. There are many ways to drive insurance costs down.

3. Use Cash – Among all budget tips, this is perhaps the most practical. Use cash whenever and wherever you can. Avoid using your credit card–this is disastrous because it tempts you to overspend. At the same time, it gives credit card companies the perfect excuse to make money off you!

4. Buy Clothes a Season Ahead – Styles do not change much but prices do. If you buy clothes while they are not on trend yet, you can pocket a huge in prices.

5. Buy Store Brands – Store brands are inexpensive and effective. They are not inferior to national brands, so do not be afraid to use them instead of their more expensive counterparts.

Use these budget tips to save as much as you can whenever you can. Budgeting is not easy but it can be done.

Quick and Valuable Personal Finance Tips Online

Personal finance has always been one of the crucial aspects, which largely affects the success of an individual in various fields. Just like a house needs strong foundation to withstand the various charges of weather similarly all individuals require strong foundations of personal finances to withstand the basic charges of life. Strong financial situation has always been the sure shot route towards a sound and independent financial situation. Maintaining a control over personal finance enables one to maintain a control over the entire financial situation and to maintain a control of where is money coming in and for what use it is being used. There are a range of topics covered under it. Some of the vital areas are budgeting, investment, retirement and debt handling.

Personal finance tips cover many crucial aspects that one has to do with his money, starting from generating it to spending it. The various areas –

  • Budgeting – Budgeting is one of the most essential and crucial areas. Since it is a time consuming and a tedious process, many people refrain from doing it and hence create acute financial problems for themselves. Budgeting is nothing but to ascertain what you must spend versus what you want to spend. Budgeting allows one to maintain a balance between his income and expenses so that all the priority needs are fulfilled optimally.
  • Investments – This is another crucial area as it allows individuals to lock some amount of money and hence stop spending money impetuously. Investments can be of various types like short term investments, long term investments, current investments, etc. Each of this investment has their own specific features like rate of return, minimum amount, lock period, etc. Individuals must invest in accordance to the capacity and such that their financial independence is not hampered.
  • Retirement – it is very vital to plan for retirement, because the cost of living index is escalating at a rapid pace and it’s very important to safeguard one’s future.
  • Debt handling – The fact cannot be ignored that all most all of us raise debts to tackle our various financial needs. However, at the same time individuals should not trap itself in the web of debt. One should ensure that they raise debt according to their repaying capacity and make sure that the payments are discharged at the time.

Some other quick personal finance tips –

  • Insurance is a must – it is very vital to have optimum insurance policies as they are nothing but safe investments. Insurance protects dependents of the insurer and the income in the case of disability or death. One must insure according to his financial situation. For example, there is no sense of life insurance if an individual does not have any dependents and it is very much necessary for every car owner to have car insurance.

Have a proper savings plan – It is always said that one should always pay himself first. Proper and regular savings helps individuals to take care of all sorts of emergency financial needs.

My experience, knowledge and network of financial professionals makes me a more valuable resource for individuals and small businesses, I am trying to improve their current financial position as well as their future prospect. Check out my blog on personal finance tips and

Free Beneficial Finance Tips

Handling your finances well during these times is of utmost importance. People are having a difficult time making ends meet with the rising cost of goods and the rising interest rates on home loans and auto loans- the fact that a lot of companies, and financial giants at that, are either closing down or cutting down on manpower. Much uncertainty hangs in the air in today’s economic scene giving rise to the need for beneficial finance advice not only for big investors but right down to ordinary folk trying to survive the daily grind. It would seem like hiring a personal financial advisor to help you make odds and ends of your current situation would be expensive and could cut your available financial resources even further down. Beneficial finance tips could be had for free.

There are experts who are all too willing to dole out advice online for free. It would be up to you, however, how to apply these beneficial finance tips to your particular financial situation. There are even sites that have downloadable worksheets that you can accomplish on your own to help you evaluate your current situation and then make out your very own financial plan. If you are to successfully weather out this financial storm, you have to have a financial plan that you should stick to and be faithful to. Free beneficial finance tips are nothing if you do not use it to draw up a financial plan to put your present and future finances in order. Some of these beneficial finance tips could be a challenge to follow especially if you have very little cash to work with. Just remember that even a little bit of money stashed away for the future will help you a great deal.

Free Money Saving Auto and Home Loan Tips

Free Auto Loan Tips

The following tips should help increase your chances of getting a car loan at a better rate.

Tip #1 – If you just started a job (recently graduated from college) then wait 6 months to apply for your car loan.

Tip #2 – If you have currently have bad credit then repair it before applying for an auto loan.

Tip #3 – If you’ve recently moved then wait until you have lived at your new address for 6 months before applying for a loan.

Tips #4 – If you have had a previous auto loan or home mortgage on your credit report then your chances for a new loan improve greatly.

Tip #5 – Try and pay off all of your credit card balances or at least lower them. You may want to consider finding the best debt consolidation loans to erase all of your credit card bills. The bottom line is don’t keep a high debt load or credit card balances.

Tip #6 – You must have a stable job or occupation.

Tip #7 – Other examples of credit extended to you should appear on your credit report. Verify this with a quick and easy online credit report. Also avoid charge off’s on your credit report.

Tip #8 – If you’ve filed bankruptcy before then you should wait 3-4 years before trying to get an auto loan.

Free Home Loan Tips

Tip #1 – Make Bi-Monthly Payments: Instead of paying your mortgage with one monthly payment switch to paying half of your loan payment every 2 weeks. The savings comes from the 26 half payments you make which add up to 13 monthly payments versus the regular 12 payments you would normally make in a year. The end result is you save a large sum of money on the interest owed and you’ll own your home a lot sooner!

Tip #2 – Choose a 15 year mortgage instead of a 30 year mortgage: You’ll end up with a higher monthly payment but in the long run you also save tens of thousands of dollars in interest charges, especially if you shop for the best home loans you can afford.

Tip #3 – Mortgage Refinancing: Currently this is the most popular trend. You refinance your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and plan to keep the new mortgage for several years or more.

Tip #4 – Buy down the rate: The seller or builder, or through innovative pricing, can help you buy down your mortgage rate for one, two, or three years.

Tip #5 – Consider an adjustable-rate mortgage (ARM): If you think you will be in your house for less then 5 years then perhaps you should consider an ARM. An adjustable-rate mortgage (ARM) starts with a considerably lower interest rate, but then adjusts every year. This type of loan moves a little bit of the risk away from the lender, and the lender rewards you with a lower rate. Usually these mortgages are capped to rise not more than two percent in any year, and not more than five or six percent for the life of the loan for your protection.

Bad Credit Car Loan Tips for Consumers

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You have just received a response from an auto loan company that your application has been declined. According to the lending officer, your loan proposal has been rejected because of your bad credit history or low credit score. The lending company you submitted your car loan application to only accepts customers with good credit rating and obviously, you did not meet the lender’s criteria. What can you do?

Subprime Car Loans for People with Bad Credit

If your credit score is below average, then you fall into the subprime category. Does that mean you cannot get the car financing you need? Not at all! Many lending companies in the market do offer financing for the subprime market or consumers who are credit challenged. Even with bad credit, you can still get approved for a car loan but you need to find the right lender.

Do subprime car loans mean high rates and fees? Because of the greater risk involved, lenders may charge a little more on interest rate for this type of loan. But that does not mean you should settle for an unreasonably high rate or unfair terms. Even though you need to improve your personal credit score, you still deserve fair treatment.

Car Loan Tips for Consumers with Bad Credit

How can you get approved for a car loan if you have bad credit? More importantly, how can you find a car loan lender that offers a reasonable rate despite having bad credit? Consider the following tips:

Check out credit unions. It’s a good idea to check out your local credit unions for possible car loan financing programs. Credit unions are more likely to offer a much lower rate than what commercial lending companies offer even for consumers with bad credit history.

Check your credit report. If you’ve been denied financing because of your credit rating, you should immediately check your credit report. Order your report from each of the three major credit bureaus – Trans Union, Experian and Equifax.

See if there are errors or misinformation which could have caused your score to drop even more. If you do find errors, send a letter to the bureau that issued your report and request for corrections. Once the errors have been corrected, you might be able to raise your credit score significantly.

Watch out for predatory car dealers. Some car dealers that offer financing deals are after only one thing – making sales and making profit. You might be offered an attractive deal and easy approval despite your bad credit but once you signed up the contract, you might be informed that you did not qualify for the low rate because your credit score. You might end up paying an expensive loan because you’ve been ripped off by an unscrupulous car dealer.

Shop around and compare deals. In order to make sure that you’ve found a good deal, you should gather quotes from at least three to five lenders and compare the rates and fees. Use the internet to request for quotes for free. Use these quotes to narrow down your choices. Afterwards, be prepared to examine the background, terms and conditions of each prospective car loan lender.