Family Issues

Shopping for a new car? Have you ever tried car financing? Strapped for cash? Seventy percent of people prefer car financing.  If you do not have enough cash on hand, chances are you will be trying car financing.  So read on.

There are many outlets in which you can avail of financing – the bank, credit union, lending companies, car dealers or manufacturers.
New car loans have lower interest rates compared to used car loans. Loans on new cars takes a longer period of time than for used cars.
Interest rates may differ.  Before entering a dealership agreement, scout around. Dealers love to play the numbers games so a monthly payment does not look attractive, but when actually computed, the total price is expensive.

Financing through the dealer or car manufacturer generally entails higher interest rates.  The lowest interest rates are offered by credit unions. Though none of these have been proven as true.

Whether you are signing a contract with a bank or dealer, it is important to read the stipulations with care. To be sure, ask a friend to read out the contract for you.  If there is anything that is vague or sounds absurd, don’t affix your signature.

Are you aware of the commercials and advertisements that offer a nearly perfect credit to first time buyers? If you think that they seem impossible, you are probably correct. Promotional offers like high down payment or high interest rates or both are strictly followed.

No matter where your loan will come from, it is important to have a knowledge of your credit history before another person does. Once you do, check out everything.  If something is erroneous, clarify it first before getting a loan.   Lenders will look at how much money you are willing to pay, your debt history, your length of stay with your job or your credit history.

Try to look around for car financing before you purchase your new car.   Having a list of other companies will keep you updated with the interest rates you are qualified.  You can even bargain with the dealer.

Great interest rates does not guarantee payment of the dealer’s price. Negotiating with your dealer is not bad.

When an agreement is reached, take your price, subtract it from the initial down payment you are willing to pay and compute for the monthly installment.

These are some tips that you need to finance a new car. Take these tips into consideration and you are ready to acquire the best deal in town.

Tags: Mortgage, Budget, Borrow Money, Car Mortgage, Car Payment

Clothes take a big bite out of our budget and you can’t go without clothes. There are fields or industries that demand professionals to be well-dressed.  But being “well-dressed” need not mean tailor-made suits.  In fact, the budget that you spend for clothes can be reduced and the money you save can be used to pay debts.  Here are some ways to accomplish this.

Think of elegance, not fashion.  It means that you avoid fad.  That layered long skirts that dominate the department stores right now might be the subject of snickers a year from now.  While the “kikay” image would bring you second glances, the “cool, elegant” aura will bring you respect and admiration.  And so, when buying clothes, ask yourself this question:  “Would you be proud wearing this cut of dress three years from now?”

Mix and match.  While buying “terno” sounds like good fashion sense, the real clothing guru can pair two pieces of clothing items and come out with a chic look.  Instead of buying nine “terno” clothes to wear in nine days, buy three blouses and three skirts that could be used in nine different combinations.  These can also be paired with the ones that you already have at home.

Choose low-maintenance clothes.  Whenever you buy clothing items, check the tag for washing instructions.  If it says, “must be dry cleaned”, forget it.  Dry cleaning is expensive and may not be necessary.  Find clothes that you can easily wash at home.  Whenever possible, choose clothes made by textiles that need no ironing too.  This way, you can also reduce your electricity bill.

Go for big bargains.  Many stores announce “sales” every 15th and 30th of the month, coinciding with the time when people receive their wages and are quite willing to spend.  But this does not mean that you must buy a clothing item at this time.  You must not go into the habit of buying a new dress every payday.  The big bargain happens during holidays and festivals and when the store is having an “all must go” sale.  Also, avoid clothes attached to cloth hangers.  Instead, choose clothes that have been piled (sometimes not neatly) on wooden racks, because they tend to have lower prices.  This would seem “undignified”, but think of it as a challenge.  Those people discovering gold did not think about posture.  Be intent on finding that “treasure” from among the piled clothes.

Inspect quality.  Some clothes that are priced very low may have some defects on them.  Evaluate your situation.  Can you fix the defect, like a loose thread?  If you know how, then go for it.  If not, you may end up buying clothes that you would be ashamed to wear.  That means wasted money.

Tags: well dressed, save money, fashion, buying clothes, budget

Most people have loans to pay.  Some would think that getting a loan is difficult but there are situations when getting out of a loan is more challenging.  To manage your debts, you need to be armed with vital knowledge first, and then you need to have an unwavering determination to get out of it.

First, you must realize that there are two types of expenses, the fixed and the variable.  The fixed expenses refer to the mortgage you pay on loans and the monthly amortization for your house.  The variable expenses are those you spend on food, clothing, and utilities such as electricity and water, and mobile phone cards.

The vital information you must have is how much you spend on what product or service.  You may not be able to do anything with the fixed expenses, but you can greatly reduce the amount spent on variable expenses.  To start doing this, start the habit of keeping receipts.  Second, learn to do bookkeeping.  That is, list your expenses on paper and categorize them.  For example, calculate the total money you spend on food for one month.  Do this for other categories such as clothing and bills and entertainment.  Which category eats up the biggest slice of your salary?  Chances are you would be astounded with the money you spend.  Maybe you were spending too much on trivial things.

Start inspecting the list closely.  For each expense, ask yourself if it would be more practical to do without it.  Think: “I could survive a month without this.”  For example, cable TV is not as necessary as detergent soap.  If it is difficult for you to determine which is a necessity and which is a luxury, seek the help of your ancestors.  I mean, for thousands of years, your ancestors have done well without manicure, didn’t they?

List the ways on how to cut back your expenses, such as stopping yourself from forwarding joke messages on your cellular phone or preparing home-cooked meals instead of buying from a restaurant or thinking twice before you give your credit card to the cashier.   If you are considering on applying for a payday loan, think that these are short-term and demand high interests.  You may end up digging a bigger hole for yourself.

The goal for the bookkeeping activity is to save money that you can use to pay off your debts, avoid bankruptcy and not to get another loan.  Being sued by a creditor is never a happy experience.

Then, put your plan to action. Your “list of things to do to reduce monthly expenses” may look good on paper but it is still worth zip if you don’t follow it religiously.

Tags: Unpaid Debts, Money Lenders, Credit Repair, Credit Cards, Bankruptcy

Delinquency in paying bills is stressful.  Hearing a bill collector inquiring about the overdue debts is even more stressful.  While some collectors may be persistent, most of them are law-abiders when collecting bills.  But some are not.  When a collector goes over board, you can take steps.

The Fair Debt Collection Practices Act

According to the Fair Debt Collection Practices Act, debt collectors are not allowed to engage in abusive behavior. Debt collectors from collection agencies are covered by the law while collectors from original creditors are exempted. When a collector from a collection agency goes overboard, you can take some precautionary measures to ensure that he won’t do it again.

The law prohibits debt collectors to:
•    Establish a connection with third parties aside from a lawyer, a credit bureau or the original creditor.
•    Calling at an unreasonable time (before 8 am or after 9 pm)
•    Calling your office if the company disallows it
•    Threatens you with violence
•    Speaks obscene or profane language
•    Makes telephone calls without properly introducing themselves as collectors
•    Collects more than what you owe
•    Claims to be lawyers even if they are not
•    Tells you that you will be imprisoned or seized of your propery
•    Sends papers resembling a legal document
•    Collects additional fees and charges

Here are the steps you can take :

1. Tell Them to Stop

The law provides that employees from collection agencies may be told to stop.  A written letter may prohibit the employee from making any further communications with you.

2. Document Illegal Behavior
Note the violation committed by the debt collector.  State the occurrence, location and persons who saw the violation.

3. File a Complaint
Lodge a formal complaint with the Federal Trade Commission, the company in-charge of regulating collection agencies.

Provide a copy to the state agency charged with the regulation of collection agencies located in the state.

Finally, furnish a copy to the original creditor and the collection agency as well.  The liability is the concern of the original creditor and may opt for the cancellation of the debt.

Don’t anticipate quick results when the complaint has been filed.   Sanctions may be given by the FTC on the collection agency.

4. Sue the Debt Collector

If the abusive behavior has been repeated several times, suing the collection agency may be a viable option.   But if the behavior was simply to annoy you and nothing else, don’t even consider suing.
You have the right to complain against abusive collectors.  The law protects you from such kind of abuse.

Tags: Credit Cards, Money Lenders, Bad Credit, Debt, Bankruptcy

One convenient way of paying regular bills is through automatic debit from bank accounts. This saves time, checks and postage.  Today, monthly debits are pre-authorized by people from mortgages, student loans, utilities, car payments, premiums for life insurance and memberships for health clubs.  However, this could spell trouble if the something goes wrong with automatic payment.
When a third party is involved, unusual problems usually arises.  Once the bank fails to automatically debit on the due date, late fees as well as damage on the credit report will be incurred.

But what if no payment was made after all?  A life insurance on monthly payment mode being paid by a man was unaware that the bank discontinued the payments due to a systems error.  Eventually, the policy lapsed but the family did not realize until the death of the man. The family struggled in the collection of the benefits.

Halting unauthorized debit is a right of any person. When you are encountering a problem, the quickest way is to get in touch with a bank personnel not the business accepting the payment.

Federal law states that a “halt” must be supported by a written request or a telephone call within three working days before the debit schedule. An oral request must be confirmed through writing by the bank within 14 days after the phone request.
Do not just settle the late fees due to the bank’s default. Inform the bank of its error within two months of the billing period reflecting the inaccuracy. In general, a provisional accreditation must be done by the bank within two weeks while an investigation is being carried out.

If you are worried that your credit history has been damaged because of the bank being unable to settle the payment, request for a copy of your credit report from any of the credit bureaus. If a late payment was indeed reflected, get in touch with the bank and ask for an explanation regarding the bank’s error. Furnish the credit bureau with a copy of the letter for proper correction of information. This will solve the problem but if it does not, seek the bank’s intervention in providing the correct information to the credit bureau. If it still fails, you always have the right to write a short explanation in your file stating the default on the part of the bank.

Automatic debit system has its advantages and disadvantages.  Proper coordination must be done by the account holder with the bank in order to avoid late payments.

Tags: Money Lenders, Debt, Credit Cards, Bad Credit, Bankruptcy