Month : April 2014

Insurance

Car Insurance and You

There’s a surprising amount of people that really don’t know much about car insurance. That’s surprising considering the tech age we live in and the importance of car insurance in our lives. IT’s required by law if you plan on driving your car around, so it’s definitely something that you need to know more about and understand the basics of.

Just because you think you’re the best safe driver on the road doesn’t mean that you should get the lowest amount of coverage available to you. That’s missing the point of car insurance completely.

The most basic car insurance isn’t to cover you, it’s to cover the person you happen to get into an accident with. It’s so everyone’s not out there driving reckless because they won’t have to pay a dime to other people they get into an accident with.

Even with the best driving record, there’s always a chance someone will come out of nowhere and somehow end up hitting your vehicle. Going for the legal minimum for insurance just to save a few bucks isn’t necessarily the best course of action. You can leave yourself open to all sorts of liabilities in the event of a car accident.

The best way to save the few bucks is by shopping around for cheap auto insurance quotes, not skimping out on coverage that can save you a lot of money in the unforeseen future. This is especially true if your state happens to be a no-fault state.

So be sure you know what coverage is best for you and shop around for the best deal. Make sure it’s a reputable company you sign up with. You don’t want to file a claim and end up with a shady insurance company that denies it and ends up making you pay out of pocket a boat load of money.  The internet is your friend when it comes to that kind of thing. Look around and read reviews to see the best company to go with and find the best deal for you that will cover you when you actually need it.

Home Ownership

Things to Consider When You Buy Your First Home

Buying your first home is an exciting experience and it is one that you’ll remember for the rest of your life. Although memorable and, in some ways magical, moving home can also be an incredibly stressful time, and it is one that, if not planned correctly can take a strain on your health. One of life’s biggest decisions, the decision to move home should never be taken lightly. Here are three things you have to consider:

Creating an Extensive Pros and Cons List

Every single angle must be covered when you’re looking to move home. Most people make a pros and cons list about the house itself, but very few actually pause to make one about the financial ramifications of buying the house itself. Yes, it is undoubtedly important that you make one about the place you intend to live, but it is also important that you make one about the debt you accumulate, because you may have that debt for as long as you have the house.

Consider the Impact of Any Existing Debt

From student loans to credit cards, we all seem to have debt these days, with collective debt in Britain worth £1,430,000,000,000 (£1.43 trillion). If you have a large amount of debt then the decision to take on a mortgage as well should be carefully considered.  To simplify your outgoings, you could choose to consolidate your loans to one monthly payment.* Of course, this doesn’t solve the problem entirely and may increase the amount you repay overall, but depending on your level of debt, it could help you bring everything under control.

Consult Parents and a Financial Advisor

All financial decisions should be carefully thought out.  When making a decision of this magnitude, it can be helpful to consult with parents and a financial advisor.  Parents are always a good starting point, and they know everything about you as a person and whether a home is right for you. When it comes to financial intricacies, however, they may not be right and, if so, don’t hesitate to consult a financial planning expert, as these people can help you decide what’s affordable for you and what isn’t, helping to prevent you from struggling further down the line.

Moving house is an exciting process, but it can also be incredibly stressful. You have to consider every single stage of the process in turn before deciding to move and, if you fail to do so, your exciting experience could turn out to be a little stressful. The three things mentioned above are essential and, if you do this, you’ll be heading in the right direction.

*Consolidating your debt may increase the amount you pay back overall and extend the repayment period of your debts.

Money Management

Save Money on Everyday Things

There are lots of ways to save money – and most of them are mechanisms that we take very much for granted. But how do we seek out deals and whether or not those deals are actually worth the few pennies they might save?

Internet Shopping

We already know that one of the best ways to save money is to order something online instead of shopping for it in a local store. Unfortunately, if you aren’t careful, the cost of shipping stuff to you will usually more than make up the difference for what you saved on the sticker price of an item. One of the best ways to save money is to shop online and use a coupon code.

Coupon codes are easy to find—there are entire sites, like Couponshoebox.com, that are built around sharing the discount and coupon codes offered up (sometimes barely publicly) by web vendors.  For example, if you are interested in options trading, you can apply an Optionshouse promo code to start a stock trading account and receive some bonus offers. You can also search the site for things like deals on Netflix or a gift from a children’s store for your kid. Before you click “pay now” on your shopping cart, check a promo code warehouse to help you save even more money (a simple Google search can yield dozens of results).

Deal Websites

When Groupon first rolled out everybody went nuts buying up all of the deals and offers they could. It didn’t take long before people figured out that, if they weren’t careful, they were literally throwing money at site simply for offering them deals. That said—if you take some time to actually search through these sites and only buy the deals you know that you will actually use and not the deals you think or hope you’ll use (hint: check for deals that are expiring soon because they’ve usually been given extra discounts), they can be a great place for savings.

Coupons

Coupons are a particularly troublesome money saver. This is because most of the time they don’t save you very much money at all—even when you only use them on things you want and use regularly. The trick to coupons is to only use coupons printed by manufacturers. Store coupons look like better deals but they are typically only on items that have recently been marked up or that the store is having trouble moving off of the shelves. Go directly to brand and manufacturer’s sites for the best deals and coupons.

Store Programs

Store programs can actually be pretty great. You sign up for a card at Safeway, Albertsons, Fred Meyer, wherever. Every time you shop, you swipe your card. The system tracks what you buy and spits out coupons for the things you buy the most—and the deals are usually pretty great. These programs will also track how much you spend and give you points. You can trade in these points for things like gas discounts, free coffees from in store coffee shops, etc.

Some stores, like Fred Meyer, will send you a gift card based on your point value for a sales quarter ($1=1 point. 785 points=$7.85 gift card). The only drawback is that you have to be okay with sharing your information with the store. Some people aren’t too keen on that.

Really, the difference between a good deal and a scam is often time—your time. If you take real time to seek out and research the discounts and deals you find, you can save a lot of money. It’s when you take something at face value that you start to get in trouble. 

Bankruptcy

Declaring Bankruptcy Can Be A Way Of Getting Relief From Your Debts

You are struggling with lots of debts currently, and it seems to be impossible for you to repay your loans. You can seek professional help by means of which you can go for proper debt management. One of the effective ways can be debt consolidation by means of which you can clear off your debts. However, in this context, you will have to remember that you use your debts wisely. On the other hand, it is also a good way to clear off your debts by declaring bankruptcy. You can start fresh with a life free from debts. However, prior to filing for it, you will have to have adequate knowledge on it.

Clearing Your Debts Legally:

Bankruptcy is a process through which you will be able to clear off your debts with the help of bankruptcy court. There are chapters 7 and 13 and you can file your case in any of these chapters based on your debt condition.  Filing bankruptcy can be your last resort because it can clear your credit report over the years. Based on the amount of debt you owe to your creditors, you can choose the chapter. If you are not much confident, you can always talk to a professional.

Reaping The Benefits:

It is true that many people will advise you not to file for bankruptcy, and the society will look down upon you as bankrupt, but there is of course a positive side to it. It can be a great source of relief to people like you who are drowning in debt. As you file for bankruptcy, your debts will be cleared, and you will not be legally obliged to your creditors. If you file under chapter 13, you will not have to be worried about your properties and the Federal court will pay off your debt. Even if, your possessions have been taken by any of your creditor, he will be instructed to return the possession.

Halting The Process Of Foreclosure:

If you have not succeeded in making your home loans, the bank might start the process of foreclosure to sell your property. However, as you file for bankruptcy, the bank will have to stop the process on the instructions of the court. They will give you some more time to clear personal loansoff the outstanding debts. Thus, you can be assured that it will help you to clear off many debts so that you are able to start fresh once again.

However, there is much other information that you should acquire before declaring bankruptcy. You might have to experience some problems based on your situation. You should talk to a professional properly so that you are successful in fetching the most important details before making any move. In addition to that, you will also have to find out the suitable chapter for you on the basis of which you can make your filing. It is only after thorough information and details that you should be able to go for the best.

Debt Management

Credit repair – Is it really needed?

Credit repair can mean rebuilding your credibility in the eyes of the lenders. While doing this is no overnight activity, it is not an impossible one too.

As you know, credit score is the most important thing in individual’s life as by people’s credit score lenders decide weather to lend money or not, to qualify for home loan, business loans, auto loan everything depends on the credit score. Even the rates given on insurance also depend on the credit score of a person. There are firms which give you ways to repair your credit score quickly but most of them are scams so here are some techniques which are not recommended by us for credit repair.

1. Selecting and taking the services of a credit restoration agency

There are many companies who promise to repair your credit report. If you are thinking to hire such companies then wait for a while and go through this article further to know about it more.

According to Ken Lin, CEO of credit karma, there are many companies who give advertisement to repair credit report to lure poor customers and basically they don’t help you out of it rather than they will help you to file bankruptcy which is not a part of credit repair. If you have decided to hire any of these companies for repairing of credit report then make sure that you go to a genuine company. You can judge which company is genuine by few points 1) if a company wants fees to be paid before service is provided then understand that company is not genuine. 2) If the company is not telling you your legal rights then assume that company is not genuine. 3) If the company says you not to contact the credit reporting agencies directly then assume that the company is not genuine at prlog.

You cannot get your credit report by throwing money on credit reporting agencies. All you can do is look for genuine ways which can help you to clear negative remarks from your credit report. It is best that you should keep a look on your credit report every 3 months so that you can get your credit report rectified if there is any sort of mistake done by credit reporting agencies.

2. File Segregation – Right or wrong

File segregation means creation of new credit file by making an application for employer identification number from IRS. Once you get your EIN then you can apply for credit from your EIN number rather than social security number. This thing is considered as fraud and some of the credit repair companies use this technique to repair your credit report.

3. Consolidating debts 

Usually credit reporting agencies derive your credit score by looking on the total credit used by you from the available credit. They even look at the time since your credit account is opened. So because of this consolidating your account can spoil your credit score because it will increase the amount of credit and can decrease the length of your credit account from time since it is open. Even if you consolidate all your account then also it will put a negative impact on your credit score because 10% of credit score is based on the new credit account which you open.

4. Getting the discrepancies removed from your credit report 

Some credit repair companies claim that they can get your entire negative remark remove from your credit report. They tend to say that the credit reporting agencies will clear all the negative remarks from your credit report for 30 days while they will investigate the problem but actually it is not true, while even at the time of investigation the negative remark remains on your credit report until and unless problem is found.

5. No credit – An oath 

There is no compulsion that you should use your credit, you can avoid using them buy not buying home, car, shopping, booking tickets, hotel rooms, and shop online. All these things are difficult to do online but you can manage to book all this offline by paying cash. All these things are fine which you can forget to do but don’t forget to clear off all your debts because your lenders will not forget you.

These are just few of the options or the steps which you can take in case you are looking to repair your credit report. However, there are a lot of people who take multiple loans without even being aware of their credit report and the scores. This mostly happens in the cases when you have a really good credit score and whatever loans you apply for gets approved by the lenders without any queries regarding your financial credibility. However, things are fine till the time they are. Once you get stuck in any kind of financial issues, repayment of multiple loans can pose a lot of problems for you.

Looking at the current economic situation dealing with the perennial issues of recession are in no ways easy. The financial meltdown which basically dates back to 2008, has its affects felt even today. There are a lot of people who have suffered losses in business or have lost their jobs due to recession and for them loan repayments have become a tough commitment to meet. They are looking out for ways to maintain their credit rating from falling and at the same time keep up with their payments.

One of the best ways to deal with your finances in such situations is to keep your spendings to the minimum.