What would becoming debt free mean to you? Would it give you a sense of relief and freedom that you weren’t living with a figurative gun to your head? Would it mean that you could easily spend your available money on the things you wanted without guilt? Think about what becoming debt free would mean to you.
Keep that image in your head of what becoming debt free would mean, because you are about to make some hard choices. If you don’t keep the freedom image, you may want to give up when it seems that you are the only person you know who is not going on a cruise this year or who doesn’t upgrade to a 60 inch plasma television.
We live in a society where we buy now and pay later. Unfortunately, that has lead to a situation where everyone is in debt. The recent constriction in the credit markets has meant that people who used to be able to get easy credit are having to tighten their budgets.Becoming debt free starts with taking stock of what you have and what you owe. Your first order of business is to start living within your means.
You must make the minimum payments on your debts as well as provide food, shelter, and clothing for your family. There are other essentials such as transportation and utilities. But within each of these categories, there are ways to cut the fat out of your budget. For instance, most families could halve their food budget just by cutting out the restaurant meals and pre-packaged foods at the grocery store.
Sure, this means actually cooking homemade meals. But I’ll bet you find that the meals you make at home are far more nutritious than the ones you’ve been eating. And, they’ll keep you within your budget too.
While cell phones are certainly a necessity today, having the package with unlimited calling and texts is not. Having cell phones for emergencies and quick calls is one thing, having cell phones as an appendage to the ear is another.
Even utility bills can be slashed if you are willing to open the windows, use fans, and cut the air conditioning in the summer and use space heaters and wear sweaters instead of central heat in the winter. These choices are smarter for the environment as well.
Will you feel some measure of deprivation while becoming debt free? That is inevitable. Your kids may not quickly adjust to their new, more Spartan lifestyle. They may not understand why you’re no longer handing them $20 when they want it.
But, over time, you can teach them good habits about money. You can show them with your own actions that being financially responsible is emotionally a healthier choice. By compensating for “things” with quality time, you will win them over.So, keep in mind what becoming debt free really means to you. It will make the hard choices you are about to make seem worth it all.
Sunday, 14 June 2009
Bad Credit Auto Financing When Youve Got To Have A Car
How do you get a car when you have bad credit? Auto financing can be a challenge in these times of constricted credit. Lenders are not freely giving money to even those with stellar credit.
But bad credit auto financing is available if you know how to go about it.The first step in securing bad credit auto financing is to review your credit history. If you detect errors, get them corrected before you go for your car loan.
You can order a credit report for free once a year. If there are inaccuracies, write a letter to the credit bureau explaining the discrepancies. They have 30 days to either confirm the fact or remove it from your credit report. You will be surprised at how much your credit score improves when you challenge inaccurate information.
The next step is to determine how much you want to pay for a car. This includes how much you can comfortably put down at the present and the amount your budget can handle in terms of monthly payments. You can use a car loan calculator to help you determine how much care you can afford.
The next step in securing bad credit auto financing is to prepare the documentation. This includes proof of employment and income. Remember that with a house, the value of the property doesn’t change when the new owner takes possession, but with a car, the value drops when you drive it off the lot.
That is why the people giving car loans have to be so picky about who they finance.
Finally, keep a clean credit history. Once you have secured bad credit auto financing, make sure that you pay your loan on time every month. This will help you get loans in the future.
Bear in mind that as a person with less than stellar credit, you will be expected to make a larger down payment and will be faced with higher interest rates. This means your monthly payments will either be higher per month or stretched out over a longer period. You might be expected to put down up to 50 percent of the car’s price in order to secure the loan.
The interest rates can be up to 26 percent. At that rate, on a $15,000 loan over 4 years you will pay more than $9200 in interest.You should watch out for dealers who “specialize” in bad credit car loans. These dealers often have inflated prices on the cars and higher interest rates than you would be able to secure elsewhere.
Often people faced with bad credit auto financing situations are better off purchasing an inexpensive new car than they would be going to a used car dealer as new car dealers can secure factory financing.
The good news about bad credit auto financing is that if you make all of your payments on time, you will be building good credit for yourself. That means the next time you go for a car loan, you can get it at a more attractive rate.
But bad credit auto financing is available if you know how to go about it.The first step in securing bad credit auto financing is to review your credit history. If you detect errors, get them corrected before you go for your car loan.
You can order a credit report for free once a year. If there are inaccuracies, write a letter to the credit bureau explaining the discrepancies. They have 30 days to either confirm the fact or remove it from your credit report. You will be surprised at how much your credit score improves when you challenge inaccurate information.
The next step is to determine how much you want to pay for a car. This includes how much you can comfortably put down at the present and the amount your budget can handle in terms of monthly payments. You can use a car loan calculator to help you determine how much care you can afford.
The next step in securing bad credit auto financing is to prepare the documentation. This includes proof of employment and income. Remember that with a house, the value of the property doesn’t change when the new owner takes possession, but with a car, the value drops when you drive it off the lot.
That is why the people giving car loans have to be so picky about who they finance.
Finally, keep a clean credit history. Once you have secured bad credit auto financing, make sure that you pay your loan on time every month. This will help you get loans in the future.
Bear in mind that as a person with less than stellar credit, you will be expected to make a larger down payment and will be faced with higher interest rates. This means your monthly payments will either be higher per month or stretched out over a longer period. You might be expected to put down up to 50 percent of the car’s price in order to secure the loan.
The interest rates can be up to 26 percent. At that rate, on a $15,000 loan over 4 years you will pay more than $9200 in interest.You should watch out for dealers who “specialize” in bad credit car loans. These dealers often have inflated prices on the cars and higher interest rates than you would be able to secure elsewhere.
Often people faced with bad credit auto financing situations are better off purchasing an inexpensive new car than they would be going to a used car dealer as new car dealers can secure factory financing.
The good news about bad credit auto financing is that if you make all of your payments on time, you will be building good credit for yourself. That means the next time you go for a car loan, you can get it at a more attractive rate.
Average Credit Scores And Where Do You Fit
What are the average credit scores in the United States? Right now, even though we are a year or more into a recession, the average credit score has not fallen all that much; it remains at around 690, which is within a few points of where average credit scores were a couple of years ago.
This says a lot for the spirit of the American people; despite the downtown in the economy, the majority of people still work hard to pay their bills, and really, in this economy, it is more important than ever to try to keep your credit score right at par with average credit scores around the nation, and within your own home state.
Most economists predict, and it would seem reasonable, that the average credit score is going to begin falling sometime soon. As unemployment rates increase and underemployment becomes more prevalent, and as the downward trend in investments continues, average credit scores are very likely to drop, simply because people who would otherwise be very focused on paying their bills in a timely fashion may simply be unable to do so.
If you can, though, you should work hard to protect your credit rating; banks and other lenders are becoming more and more picky about whom they will allow to borrow money, and the terms for less-than-perfect credit are getting more stringent. For example, six years ago, I got divorced and bought a house.
My credit score was slightly below the average credit score at that time – about 685. I qualified, however, for great terms, because at that time, low interest rates were awarded to people with a rating of 680 or better. Six years later, with all personal circumstances being the same, I would not qualify for that 5% mortgage, as most lenders in my area are requiring a score of 750 or more to get the best rates.
That is a jump of seventy points, so as you can see, it is even more important that you keep your credit history clean, make sure your report is accurate, and work to keep your score as high as you can. So where do you stand?
The average credit scores are highest in Vermont, Minnesota, Massachusetts, South Dakota, North Dakota, Iowa, New Hampshire, and Montana. The average credit scores in all of these states is 700 or higher.
The average credit scores are lowest in Texas, Louisiana, West Virginia, Michigan, Georgia, North Carolina, New Mexico, Nevada, Arizona, Alaska, and Alabama. All of these states have average credit scores in the 660’s and 670’s.
This says a lot for the spirit of the American people; despite the downtown in the economy, the majority of people still work hard to pay their bills, and really, in this economy, it is more important than ever to try to keep your credit score right at par with average credit scores around the nation, and within your own home state.
Most economists predict, and it would seem reasonable, that the average credit score is going to begin falling sometime soon. As unemployment rates increase and underemployment becomes more prevalent, and as the downward trend in investments continues, average credit scores are very likely to drop, simply because people who would otherwise be very focused on paying their bills in a timely fashion may simply be unable to do so.
If you can, though, you should work hard to protect your credit rating; banks and other lenders are becoming more and more picky about whom they will allow to borrow money, and the terms for less-than-perfect credit are getting more stringent. For example, six years ago, I got divorced and bought a house.
My credit score was slightly below the average credit score at that time – about 685. I qualified, however, for great terms, because at that time, low interest rates were awarded to people with a rating of 680 or better. Six years later, with all personal circumstances being the same, I would not qualify for that 5% mortgage, as most lenders in my area are requiring a score of 750 or more to get the best rates.
That is a jump of seventy points, so as you can see, it is even more important that you keep your credit history clean, make sure your report is accurate, and work to keep your score as high as you can. So where do you stand?
The average credit scores are highest in Vermont, Minnesota, Massachusetts, South Dakota, North Dakota, Iowa, New Hampshire, and Montana. The average credit scores in all of these states is 700 or higher.
The average credit scores are lowest in Texas, Louisiana, West Virginia, Michigan, Georgia, North Carolina, New Mexico, Nevada, Arizona, Alaska, and Alabama. All of these states have average credit scores in the 660’s and 670’s.
Bad Credit Debt Consolidation Loan -Secret To Getting it
A bad credit debt consolidation loan can get you out of a financial hole very quickly. The question is if you've a bad credit history will the banks still lend to you? answer is probably. That's because a bad credit debt consolidation loan can make as much sense for them as it can for you.
You see the banks really don't care about you.
I know, that came as a surprise right? But they do care about themselves - second surprise! So they might be happy make a loan to help sort out your bad credit. Debt consolidation loan is just another way of saying refinancing of course. And the reality of that is the bank will take the money
you already owe them and spread the payments over a longer period.Now what happens is that because the money they are lending you is outstanding for a longer amount of time they can charge you more interest. See what I meant when I they don't care about you?
Of course from your point of view you are probably going to be benefiting by having lower repayments, less worry and you'll get your credit history back on track. So it's win-win.Now to actually get a bad credit debt consolidation loan you're going to have to convince the bank or loan company that they really are going to be benefiting.
Just telling them that they will make more money in the long run won't cut it. You need to present a well thought out case as to why it makes sense to consolidate your existing loans.
You need to sit down and work out a plan before you even think of contacting them. In that plan you need to be able to tell them how your bad credit came about.
Was it a problem with your job? Was it down to ill health? You also need to explain what has changed now and how you will be able to meet the new payments.
Try not to be over optimistic here. And for goodness sake tell them the truth, if you don't they will almost certainly find out and you'll fail. They're trained to spot lying by applicants.The secret to success is having a good, well-though out reason why they should grant you a bad debt consolidation loan.
You see the banks really don't care about you.
I know, that came as a surprise right? But they do care about themselves - second surprise! So they might be happy make a loan to help sort out your bad credit. Debt consolidation loan is just another way of saying refinancing of course. And the reality of that is the bank will take the money
you already owe them and spread the payments over a longer period.Now what happens is that because the money they are lending you is outstanding for a longer amount of time they can charge you more interest. See what I meant when I they don't care about you?
Of course from your point of view you are probably going to be benefiting by having lower repayments, less worry and you'll get your credit history back on track. So it's win-win.Now to actually get a bad credit debt consolidation loan you're going to have to convince the bank or loan company that they really are going to be benefiting.
Just telling them that they will make more money in the long run won't cut it. You need to present a well thought out case as to why it makes sense to consolidate your existing loans.
You need to sit down and work out a plan before you even think of contacting them. In that plan you need to be able to tell them how your bad credit came about.
Was it a problem with your job? Was it down to ill health? You also need to explain what has changed now and how you will be able to meet the new payments.
Try not to be over optimistic here. And for goodness sake tell them the truth, if you don't they will almost certainly find out and you'll fail. They're trained to spot lying by applicants.The secret to success is having a good, well-though out reason why they should grant you a bad debt consolidation loan.
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