Family Issues

There was this one episode on a lousy sitcom that was about getting a new car. When the buyer went to the car dealership, he clearly stated that his offer for the car was this much. It turns out he spoke to early, as the offer of the dealership was cheaper than his offer. Naturally he got a bad deal on his car and the dealer didn’t have to pull of one lying scam.

If you are this kind of guy, which really don’t have a clue about dealing with or getting car loans. Here are some scams that you should clearly avoid.

Don’t be fooled into believing ads that say they’ll pay your loan or lease no matter how you still owe. This is one neat scam that these dealers perform. They’ll try to convince you to sell your car at a lower price and sell you a new car at higher market value. Don’t fall for this because all lease and contracts are binding and you cannot immediately get away from it even though the car has been sold. They will get you out of your current lease but when you get the new car, the lease will just be added on.

Here’s how it works. If you still owe ten thousand dollars on your previous car, the dealer will say he will pay it off. But then since all contracts such as lease or payables are binding. You will now owe the dealer who presented himself that he paid of your current lease. He will then pass this cost on to you when acquiring the financing of your new car which only cost fifteen thousand really. It will now become twenty five thousand dollars. The amount you pay will seem smaller monthly because the dealer will divide it unto sixty or seventy two monthly payments.

It’s really a clever and amazing tricks that if you’re a reader, you’ll be amazed, but to the victims this magic trick made their money vanish.

Another one of the tricks that these dealers pull out of their box is the forced credit application scam. You’re with the dealer with your bank draft from a major car financing company or you do not want to fiancé your car. However these dealers are persistent in showing you their last effort magic trick. Don’t be fooled into believing this magic trick of theirs.

It will usually go in this way so that they’ll be able convince you to still sign for a credit application. It’s their company’s policy, state law requires it and or everyone who buys in this dealership must get one. Nobody knows why some dealers try to do this stuff. Based on research, the only effect is that your credit report rating will go down 5 points every time other than you will check it.

If they really try to fool you with their magic trick, get up and leave. Serious buyers will not entertain dealers who seem to have ulterior motives. Tell him that the only magic trick you are interested is getting the car as cheapest as can be. It will be their loss once you leave and it will be thanks to their stupidity not yours.

[Tags]Car Loan, Mortgage, Credit, Money Lending, Borrow Money, Car Mortgage, Car Payment, Budget, Buying a Car[/Tags]

Some people who have huge loans and pending debts just needed a little education on how finances are managed.  They may not really know the difference between a simple interest and a compounded interest.  They may not know the implications of taking a longer loan term.  But other people who are in over their heads with burdensome loans and mountainous debts may need more than informative education.  They may need to take a closer look at how they view money and their self-worth.  They may even need to consult a counselor.

Many people today are shackled with financial worries such as meeting the minimum payments on credit cards, rushing to deposit money in the bank due to an issued check that will be due the next day, and facing solemn-faced creditors of representatives of collection agency.  Yet, despite all these energy-draining consequences of not budgeting one’s money wisely, the same people keep using their credit cards to buy unnecessary items and keep taking out payday loans

Studies conducted about such spenders reveal that the use of credit cards does not imprint on the minds of the spenders that they were actually using money.  One psychological theory states that a person’s action is reinforced if the consequences are positive and that the action is terminated if the consequences are negative.  Based on this theory, psychologists hypothesized that the person’s action of using the credit card is associated only with the satisfied feelings of acquiring a new possession.  The use of the credit card is not associated with the disconcerting and foreboding feelings of receiving the credit card statement, since the statement arrives perhaps a couple of weeks later.  People who use cash to pay items are less willing to spend than people who use credit cards.

The same studies reveal that people who have the urge to spend impulsively have low self-esteem.  Buying unaffordable items temporarily compensates for their feelings of inadequacy and that these expensive items will symbolize their self-worth.  Unfortunately, even millions of dollars cannot afford self-esteem nor procure self-worth.  These are intangible things that reflection, inspiration, and meditation can help develop inside a person’s psyche.  A counselor may help, too, but only as much as the person will allow.

If a person continues to ignore why he keeps swiping his plastic card to buy things he won’t use again after a few days, then he will never control his spending nor get out of debt.  He will never solve his deeper psychological problems.  He will always struggle to pay monthly dues.  And he will always take out payday loans, a situation in which he uses his coming wage to pay off his yesterday’s expenses plus interest.

[Tags]Bad Credit, Debt, Bankruptcy, Credit Repair, Money Lenders, Credit Cards, budget, Unpaid Debts, Credit Reports[/Tags]

Please don’t cry if you find yourself remembering the pain of the past, the time when you chose unwisely and found yourself struggling to make ends meet and pay off your mortgage monthly dues at the same time.

The past must remain in the past and it’s time to put your best foot forward and move on. Heartbreak is such a bitter pill to swallow and it leads you to becoming disillusioned and distrustful of love. The feelings are analogous when you’re victimized because of ill wisdom or you’ve been swindled out of your money.

But as the saying is eager to teach us, there are other fishes in the sea and you must not lose hope. Granted, your first try didn’t have that nice an outcome but experience is the best teacher anyone can have and now, you’re sure not to make the same mistakes again. If you’ve chosen the wrong type of mortgage, all you have to do is switch to another, one that’s better suited to your attitude, lifestyle and bank balance.

A fixed rate mortgage is like a heavy grouper that is not inclined to move around so much. The interest rate is constant throughout the period allotted to you. The grouper may move but only if prodded and he consents to do so. Likewise, the interest rate previously established may be subjected to change if and only when both debtor and creditor agree to it.

A variable rate mortgage is similar to an erratic little goldfish that goes where the wind blows, or rather, where the waves bring him. The interest rate of this type of mortgage may go up or down in accordance with the creditor’s wishes. This may be not beneficial to the debtor because interest payments may suddenly rise even while his income level remains constant.

The base rate mortgage is like a flowerhorn, considered by some as the most noble of all fishes. The base rate mortgage is founded on the Bank of England’s base rate. To understand this better, you’re advised to get to the nearest Englishman in your town and ask away.

And last but certainly not the least, when you’ve decided what type of fish – err rather, mortgage, you plan to apply for, make sure that the mortgage company – or the pet shop if we’ll stick to analogies – you’ll be dealing with has a reputation of trustworthiness.

After all, it wouldn’t do if you’ve paid an exorbitant price for a golden flowerhorn and end up with a red herring!

[Tags]Mortgage, Credit, House, Buy a House, Home Owner, House Mortgage, Borrow Money, Obtaining a Mortgage, Credit Union[/Tags]

When it comes to business, some businessmen forget the importance of practicing ethics. Instead all they focus upon is giving the customer worst deals and get themselves more money. We can not blame though as maybe they have reasons for doing so. But no matter the case, it is no excuse to cheat the customer out of something. Here some scams that the dealer may try to pull a fast one on you. Try learning more about them by reading it here and avoiding the situation.

One of the oldest scams performed by car dealers is the forced warranty scam. When you get the financing from the dealership they may tell you that you need to pay an additional fee for warranty or the bank won’t give you the loan. Some won’t even tell you about the warranty and juts make it look like it’s a fee that will help lower your APR.

To avoid this scam, try to avoid financing at the dealer and instead finance online. They won’t force you to have a warranty when you finance it anywhere else aside from the car dealership itself. Another way to avoid this scam is by telling the dealer to put the “warranty is needed for my loan to be approved” in writing. This is important so that you’ll tell him that you’ll show this to your State Attorney for its validity. They will immediately back of once threatened in such a way.

Another scam to avoid is the dealer preparation scam or just plain excessive charge. This is not really a scam or is it illegal that’s why most dealers even state this on their paperwork. They claim that this fee is only a way to cover up fore their losses when discounting the car of MSRP. Even though, what they charge is till too excessive. The dealer preparation fee should already be covered by the factory for this pre delivery service.

To avoid this situation when the dealer preparation fee has already been put in your buyer’s card, have it balanced out by heaving them put a negative credit on your card. If they won’t remove it, simply go to another dealer. It’s simply a matter of who has the stronger will. If they really won’t budge, it’s their loss. Go to the next dealer on your list and tell him or her that they might get the deal if there is no dealer’s preparation fee.

Always remember to shop wisely when choosing for a car. It will always be their loss if they don’t figure out your point of view. Instead of getting even a little bit of commission or sales, they’ll eventually end up empty because of their greediness.

[Tags]Car Loan, Mortgage, Credit, Money Lending, Borrow Money, Car Mortgage, Car Payment, Budget, Buying a Car[/Tags]

To get the material assets you desire at a price you want, you have to have a good credit score. Whether it’s a mortgage, a good interest rate on a car loan or even another credit card, a high credit score goes a long way. But for those who have a poor credit score, repairing it is not as hard as you may have thought.

Just follow these few simple steps to repairing credit:

Step One:    Secure a copy of one or more of your credit reports from any major credit bureau. If your report reveals a credit score of 650 or higher, you’re safe. If you have 620 or less for a credit score, start planning how to make it better. A good way of starting is reading your credit report and looking out for any errors. Is your personal information correct? Are there any accounts listed on the report that you did not make?  Mark any accounts listed as open when they should be closed. Also make sure that the closed accounts are listed as “closed by consumer”. Have you filed for bankruptcy? A bankruptcy 10 years or older should not be on your report.
If you found errors such as these, write to your credit bureau immediately. Follow-up if you don’t get a response within 30 days. Remember that the longer these errors stay on your credit report, the more that your credit shall suffer.

Step Two:    Create a new credit. A good technique to improve on your credit score is to establish good credit by opening a savings or checking account at a bank or a credit union. Be responsible in maintaining a checking or savings account because this will show that you are able to handle your finances. Pay your bills on time and this will help raise your credit score.
Get a credit card. Purchase items using the credit card instead of your normal way of paying with cash.. Pay off the balance at the end of the month. If you don’t pay off the balance, your credit score will only get worse. Also make sure that the credit card company reports your activity to the credit bureau. Remember your goal here is to boost your credibility as a good payee.

Step Three:    Pay on time. Always. Make sure that you do pay your bills every month on the dot as specified on the bill.

Step Four:    Stick to a budget. This is very hard for most people but sticking to a budget is essential if you want to repair your credit. Save up on money to cover your monthly bills. Think hard when tempted to buy luxury items like designer clothes, electronic items and antiques. Never impulse shop! If  you’re tempted in buying a favorite CD or a book, go to the library instead. Take advantage of coupons at supermarkets. Buy generic items instead of branded goods.

[Tags]Bad Credit, Debt, Bankruptcy, Credit Repair, Money Lenders, Credit Cards, budget, Unpaid Debts, Credit Reports[/Tags]