Category Archives: money and finances

Buying Used Cars For Under 2000

The whole idea of trying to purchase used cars for under 2000 is highly commendable. I mean, when you consider the number of people who are having their cars repossessed due to defaulted payments it only makes sense. Cheaper alternatives are always a wise option in this highly technical world where money goes quicker than it comes. Anyway, if you have made up your mind about getting a cheap car then you must surely read on for compelling advice on how to tackle this simple task.

Buy a slightly damaged car for less than 2000 and try fixing it. This drastic measure might not seem like a good idea but believe me, it is. In more situations than one the cost of repairing a car that is faulty is actually lower than what you would have forked out for a similar model but in a better condition. But when you choose this route you must at least know what exactly is malfunctioning and find out how much it will cost to repair it. If you do not do this you might end up paying a lot more than expected.

I know remorse and pity are standard emotions but this does not mean you cannot offer an elderly person money for their car. Believe it or not but there are a lot of elderly people who simply do not have heirs and family members to give their assets to once they are too old. So ask around and see if you can lay your hands on one of these potentially amazing deals.

Auctions will forever be the best places to find and buy affordable goods. Read through newspapers, posters and pamphlets to find out where the next auction will be. Before going you must at least research as to the rules applicable to the particular auction you are attending. Used cars for under 2000 can be sourced from auctions if you are lucky.

Look into Negotiating Settlement Credit Card Debt

When thinking about negotiating settlement credit card debt you want to focus on how you can benefit from it. There are several ways to do so. Past interest and fees can be deducted from the current balance, and you can agree to a fixed monthly payment, with less or no future interest charges, until the account is cleared.

Negotiating means talking with a debt collectors usually working for the credit card company itself. They have some quality training like anyone in their respective fields. This training will have shown them how to talk and negotiate with debtors (that is you), how to manipulate your emotions to elicit the reaction they need in order to get the most money out of you. Sound a little over the top? You’d be surprised. Debt collectors often work partly on commission, with department bonuses for top collector. There are, however, some ways you can combat this.

To start with you will want to know as much as you can about your own situation. This means your wages and your spending. To do this credit card debtyou can monitor how you spend money from now on, but it is faster to go back in time by looking at past checking account and credit card statements to review past spending. From there you can construct a spending plan. See if you have some surplus to put toward debts each month. What if you don’t?

Living below your means has become quite popular, especially lately with the recent difficult economy. It means to spend less than your wages. Even if you don’t do this right now, you can start. You can cut costs at the supermarket by picking cheaper brands and reduce the little luxuries to be less frequent but still an enjoyable part of your week. This will free up some much needed cash.

Negotiating settlement credit card debt is pretty easy to do once you take the above steps one by one. Take the first step today.

Photo: Andres Rueda

Is Getting A Home Equity Loan With Bad Credit Possible?

Home equity loans are the second most popular type of loan next to mortgages. The thing about them is that they work well only if there is already debt owed on the house. Usually the best kind of debt is an already-existing mortgage. Since equity is calculated by taking the market value of the home minus any debts pending, this is the only way to get the value of a home’s equity.

A hypothetical example:  say a particular home is priced at $200,000. The owners of the home owe $120,000 on their mortgage. Take the price of the home ($200,000) minus the amount of owed debt ($120,000) and the equity remaining is $80,000. There is a catch, however: lenders will only allow a certain percentage of the equity to be taken out as a loan. The common number is 70 – 80%. So, all you have to do is take 70 – 80% of $80,000. That leaves you with $56,000 – $64,000.

There are still hurdles to be jumped over before the money is yours. These hurdles are summed up in the word “creditworthiness.” In bad credit home equity loanordinary language, this breaks down into three categories: financial history, debt-to-income ratio, and credit score. This last item is the most important of the three from the borrower’s perspective. A borrower’s individual score is expressed as a number between 300 and 900. The demarcation numeral is 620, below which a borrower is considered untouchable and above which a borrower is looked upon more leniently.

If a borrower has a credit score below 620, they can rest assured that no lender will even negotiate with them. A bad credit home equity loan seems impossible to get. What is a homeowner in this position to do? Fortunately, there is still one option available to them that will get them the loan they want: mortgage insurance from the Federal Housing Administration. Loans backed in this way take lenders’ minds off the risk of advancing money to formerly taboo individuals. The FHA will definitely make the dream of a home equity loan for people with bad credit a reality.

Photo: AMagill

Canceling Policies and Car Insurance Savings

Being a young driver definitely has its disadvantages like being unable take advantages of discounts like car insurance for over 50s rates just because they have no experience on their driving record. However, while the statistics are quite fair and there is no real reason for them to lower premiums just because, it can still be quite difficult for teenagers and new drivers to make monthly payments with other obligations as well. Fortunately, taking advantage of savings to lower car insurance premiums is not restricted to age limits and that means anyone can go out and find everything they need to know to save hundreds even thousands of dollars every month on car insurance policies. In addition, researching tons of different companies to begin with is an excellent place to start because there is so much competition there are always going to be providers battling out for the lowest rates. Utilize every possible and potential resource to save money on car insurance costs to ensure that the entire experience is as happy and enjoyable as it can be.

Whether a policyholder gets mixed up, forgets or does not really care at all, some car insurance companies do not have policies that automatically renew themselves and they require the assistance of the customer to move forward. However, if for some reason the individual does not respond within the time that the policy runs out, they will begin their gap in car insurance coverage and that is horrible for car insurance rates. Not only does this show companies that the vehicle owner is irresponsible and obviously cannot take care of important matters, but every single day is implemented in the record books for three years. Overall, while canceling or renewing car insurance policies on time will not necessarily bring savings instantly, by making sure to complete this step it can be ensured that premiums do not raise as a result of poor actions.

How To Reduce Your Credit Card Debt

Hiring a credit specialist can be a good way to help get out of debt if you are experiencing problems. The specialist can help to communicate between yourself and those who you owe the money to as well as any credit reporting agencies involved. The main goal of a professional credit specialist is to help minimize any damage that your credit history may suffer when you cannot pay for the money you borrowed. However, they cannot legally erase credit card debt but they can help you to solve other problems with credit debt.

A good credit counselor will help to put you back on the road towards getting a good score on your credit. If you have a bad credit score you cannot buy simple products like electronics or furniture. To buy most of these things you will need a reliable credit score otherwise you may not be allowed to purchase them through financing. This can be problematic especially if you don’t have a lot of initial money to work with.

By working with a specialist you will be able to build up your credit score again and start making regular payments toward your debt. credit cardsThey will be able to tell you what you are doing wrong and give you advice on some different processes of credit like budgeting and keeping track of the amount of credit you pay each month.

Even with a specialist helping, you will still have to change the way you make payments. Bad credit habits are likely what caused this situation in the first place so you have to do things differently. A specialist may be able to give you some advice on this but ultimately it is your decision whether or not to implement it. It is easy to buy finance multiple items at once, but later you may find that you cannot make all the payments on time, this is the type of thing that leads to a bad credit history. Buying items that you don’t need is also unnecessary and you may be spending money that you’ll need later.

Photo: BigBeaks

Credit Cards for People with Bad Credit

Lots of people who’ve had debt problems in the past and decide they can’t live without a credit card look online specifically for credit cards for people with bad credit. The best advice, however, is to decide you don’t need credit cards and avoid them.

It’s not easy to live without credit cards today. With salaries seeming to get smaller and the price of everything going up, sometimes floating credit from month-to-month seems the only way a person can get by. But the best thing you can do for yourself and for your future is to avoid these types of credit cards at all costs.

Credit cards for people with bad credit might sound like a good idea because you can reestablish your credit and be able to afford things that you might not have the cash on hand to buy right now. The problem is you’ve already shown yourself that you have trouble with debt. While bad credit can come from circumstances beyond our control, very often we have it because we overspend and then have trouble keeping up with the payments. Have you mastered that problem? If you have any doubt then credit cards that are aimed at people like you who’ve had credit problems are only bound to get you in deeper.

Even if you’ve paid off all of your debt and you get one of these cards, you can run up a bill very quickly. Yes, many of them have low credit limits to start but they tack on monthly fees that you pay for the privilege of getting the card and they have extremely high interest rates. You can very quickly let the amount you owe spiral out of control. These cards, unless you can truly budget yourself and manage them well, will often just help you get back into debt problems and make your credit even worse.