Online Financial Tips

Archive for January, 2010

Online reviews are a very popular thing these days and these bits and blurbs of people’s opinions of a product or service are one of the best ways to get an idea of what something is like before you try it. Have you ever bought something, only to get it home and discover it just was not everything that you had hoped it was going to be? This is a thing of the past with online reviews. This is an excellent way to save money online.

There are however, pitfalls to looking at online reviews and that is the fact that you have to remember- these are opinions. A good rule of thumb for this is to remember that this is the opinion of one person, or a couple of people. Read through all of the reviews, and then, decide for yourself if you are going to want to try to experience it for yourself- whether that be a product, a service, or even a restaurant or other consumer experience. Being able to balance the reviews with what you already know, the pricing, and location in some cases can help you to make a much more informed choice on if you want to spend your money there or not.

Couple the online reviews with a good price comparison site and you have a powerful way to really look deeper at something before you even try it. Look through the reviews, stack that up with the pricing, and from there, you can also research any promotions, coupons or other deals on the web for the ultimate saving experience. Saving money online is fairly easy if you shop around, and this makes it very easy to do just that. Side by side comparisons, different sites offering to match coupons and offers, there are so many things online now where a user can find the best savings on the items they want and need.

Online coupons may make your choice to try something a bit easier as you can often find great deals on the products or services you already wanted to check out- many even offer two for one deals, or freebies as incentives, so foraging for online coupons is another great way to save, if you’re looking at things online to find deals and sales. There are many great sites for finding coupons, or you can simply visit that merchant’s website to find out not only more information, but all the current sales, promotions and coupons they may have available.

With so many tools at your disposal, the internet is a valuable way to save money and have more of what you want at a much lower price- but also, a way to see what a product, service or place is like before you even spend a dime there. In this economy, with so many people wanting to save, now is definitely a good time to make use of the excellent ways to save money online.

Debt settlement has become more and more of a debt management option these days because of the economic crisis. The tightening job market and dropping real estate values have families worried about their future. To make matters worse the recession has pushed many consumers underwater. Debtors have been forced to negotiate with their lenders to not only reduce interest rates and fees but also the amount of debt owed. While some opt for loan consolidation, there are those who choose debt settlement as a means of easing their financial burden.

Debt settlement means that the lender will agree to forgive part of your debt as long as you continue to make monthly payments for the remaining balance. Some creditors will only accept debt settlement as an option if a lump sum is paid, rather than monthly payments. If the debt is secured against an asset, such as a car or home, the lender may feel that the asset is worth taking back rather than settling for a lesser payment. Unsecured loans, such as credit cards, store credit, and medical bills, are the best option for debt settlement. It’s something that can be of great help to someone in a tough financial situation but there are also downsides to this method.

Most people don’t realize that taxes may have to be paid on the amount of debt the lender has agreed to forego. The fact that your debt has been forgiven may count as income and could very well mean an increase in your taxes. Talk with your accountant to see if this is the case with you.

Overwhelmingly the main downside for debt settlement is the fact that your credit scores will be affected. The lender may forgive the debt but the fact you didn’t pay it will be reported to the credit bureaus and remain there for a number of years. You may have a challenge ahead of you in obtaining a loan in the future. This could make things difficult when it comes to purchasing a car, a home, or, depending on your situation, even renting an apartment.

Credit scores are also considered by many employers when making the decision to hire. Insurance companies view credit scores as a measure of responsibility when determining rates.

Lenders have the right to file legal action against someone seeking debt settlement. The fact that you are attempting to get the balance you owe reduced, may trigger a warning sign. The lender could negotiate with you and pursue litigation at the same time. Until you have actually paid the reduced amount in full, the lender may consider legal action.

While debt settlement can be an option in times of crisis, it’s not something that should be considered lightly. If anything can be done in order for it to be avoided, it most certainly is in your best interest to do so. Desperate times call for desperate measures and debt settlement is an option to get yourself out of a difficult situation. It will impact your life in the years ahead.

With two mortgages, it is tempting to consolidate the home loans into one refinanced mortgage. But, this isn’t always in your best interest. Depending on a number of factors, you may find that refinancing separately may qualify you for better rates.

Refinancing Options For Multiple Mortgages

You have three options when it comes to refinancing multiple mortgages. You can combine both loans into one, or you can refinance each account separately. The other option is to only refinance the higher rate mortgage.

The rates available to you will depend on your current credit score, market indexes, and your equity. So in some cases, you may find that keeping your low rate original loan while refinancing the higher rate second mortgage will save you the most money.

As odd as it may seem, refinancing your two mortgages separately can qualify them for lower rates than combining the two. This is especially true if you have little equity.

Requesting Quotes For Mortgage Refinance

To find out which option will save you the most money, you have to request quotes. Ask for APR quotes for each of the three options from several lenders. You may find that a mortgage broker site will speed this process up by allowing you to compare multiple bids side by side.

Remember too that points should be considered as a factor in your decision. Paying points for a loan you don’t plan to keep for several years may be more expensive than a higher interest loan.

Do the Math Before Refinancing Mortgage

To find the answer to which option is the best, you will have to do a little math. Fortunately, you can use an online mortgage calculator to quickly come up with the numbers.

With each loan quote, figure the difference in your mortgage payment if you refinanced. This number will show you which loan can give you the greatest savings. But, you also need to consider the cost of refinancing. So divide the amount you will save each month by the closing costs, which include points, to determine how soon you will break even.

While doing these calculations takes time, they will save you money and ensure you make the right choice.

Today many Americans have had trouble keeping abreast of their credit. You only have to miss one or two payments and this will affect your credit scoring and you are regarded as a bad credit risk. Once you get a bad credit rating it can take quite a while for you to get it back again — this is not something you can hide as each time you apply for credit.

If you want to buy a new car for example, the lender will take the information you give them and submit your name to the credit reference agencies who will give back a report on what sort of borrower you are. You can get a copy of your report from the credit bureaus and although you can’t change it you are allowed to make a note of extenuating circumstances, illness for example, regarding missed payments.

It is possible to get a bad credit car loan but it’s always best to shop around. When you have bad credit then you probably won’t be entitled to special offer deals where you don’t pay for so long, or the interest payments are very low and there is no deposit. If the car dealer has done a credit search and found that you have bad credit then he or she can either refuse you outright or they can offer you one of two loan options, one secured and one unsecured.

With a secured loan you have to have something that you can use as collateral, be careful with this because if you default on the car loan then the car dealer can take whatever you offer as collateral or security as payment. A secured bad credit auto loan may have a lower interest rate than an unsecured one because of the collateral.

An unsecured car loan means that there is nothing to guarantee repayment of the loan so you would probably pay a very high interest rate on most unsecured bad credit car loans. In addition to these two methods, some dealers will grant you a car loan on payment of a heavy deposit, at least twenty five percent of the purchase prices in some cases. You would also have to make a down payment with both secured and unsecured loans.

Whether you have a secured or unsecured bad credit car loan, the loan could take between five and seven years to repay, if in the meantime, you manage to improve your credit rating by paying off some debts then you could ask for your interest rate to be lowered.

Certainly there are more car firms, both on and offline who are now offering car loans to people with bad credit. If you do get a bad credit car or auto loan then you might need to lower your expectations about the kind of car you may be able to afford, both in terms of the repayments and of any down payment or deposit. It is well worth looking online as some sites give would be buyers a number of options from different companies — this is one way of helping you get the best bad credit auto loan that you can.

Paying for gas with cash is a lot like throwing some of your money right out the window every single time you fill up. And with gasoline prices as high as they have been lately, it’s even worse than ever. But there is good news – savvy consumers have been taking advantage of gas rewards credit cards to take a significant discount off of their gasoline costs each and every time they fuel up and you can too!

Common Incentives for Gas Credit Cards

Clearly the best thing about paying for gasoline with gas rewards credit cards is the money you ultimately end up saving. Some of the best brand specific gasoline credit cards offer 5% cash back rebates (with no total limits) on the total of each and every fill up you pay for with the card. With gas prices at $3.00 per gallon, that’s the same as saving 15 cents per gallon at the pump just by paying with your gas card – it’s that easy. There’s also a variety of gas rewards cards available that offer 3% rebates on any fuel purchases you make anywhere. Some even offer 1% back on all purchases, gas or not.

Rewards Grow Fast for Road Warriors

Using current figures, paying with a rewards gas card will save commuters, road warriors, and even some business card holders hundreds of dollars every year. The rewards grow fast indeed and the best part is that versus paying with cash or a standard credit card, it’s essentially all free money – icing on the cake.

Carrying Cash is an Increased Risk Factor

These days, it’s probably not advisable to carry any significant amount of cash around. Let’s face it – it’s just too easy to lose (or have stolen, for that matter). If you misplace your purse or wallet, you can pretty much be assured that any cash within is as good as gone. On the other hand, if a credit card winds up missing, it’s just a simple phone call and everything is taken care of. Cash is just not worth the extra risk factor when compared to carrying a credit card.

Keep Track of Expenses Better

Another extra bonus of using a gas credit card to pay for all fuel purchases instead of using cash is receiving clear, detailed statements every month. Keeping excellent records can only help those working with a budget and those who like to keep precise tabs on their finances. When spending cash, one category starts to blend with the next one and before you know it, keeping track of everything becomes practically impossible. Gas cards used exclusively for the purchase of fuel eliminate a major slice of this expense tracking problem.

Paying With Cash Takes More Time

Last but not least, consider how many times you fill up your car every year. Let’s assume it’s once a week. Now let’s say that each time you pay with cash it takes an extra 5 minutes to go inside, wait in line, pay for your purchase, and get change. That comes out to almost 5 hours per year of your life that you can have back starting right now just by paying at the pump with a gas credit card instead of cash!

If you’ve got bad credit, you’ve probably been told that there’s no way you could possibly secure a car loan and that the only way you could get a car would be to save up the money and pay for it all at once. While this might have been true in the past, it simply is not the case anymore. At one time, those who had bad credit couldn’t think of getting mortgages or loans. Now, even people with the worst possible credit who have gone through bankruptcies can get loans. The path to getting such a loan isn’t easy, but it can be done.

Bad Credit Car Loans from Dealerships

Most likely, you’ve seen the advertisements from local dealerships stating “no credit, no problem! We grant financing to anyone!” While some dealerships might be sincere when stating this, most exaggerate the claim. That’s because it actually isn’t as easy as they make it seem.

In a lot of cases, the dealership will require a down payment in order to even get financing. This down payment could be anywhere between $100 and $1000. Other dealerships won’t require the down payment and will, instead, give you a loan with a very high interest rate. With or without the down payment, you’ll still be looking at $200-$400 a month in payments.

Dealerships may make it seem like they are in it to help you. The fact is, however, that most dealerships really don’t have your best interest at heart. They’re mainly in the business to make money. They’ll take a risk and loan to a person with bad credit, but only if there’s a good chance they’ll make a lot of money in the process. Dealerships realize that there is money to be made by charging outrageously high interest rates. That’s why they even bother to loan to very risky people–it can be extremely profitable for them. And it comes at your expense.

Luckily for you, you have another option besides a dealership loan: you can go online and get a good car loan.

Bad Credit Car Loans Online

Before the internet, people with bad credit would have had to settle for high interest rates. That has, of course, changed. The online market is so competitive that lenders are forced to offer low interest rates to potential customers. Even those with bad credit can and do get loans with very fair interest rates.

When you get a loan directly from the dealership, you are often stuck with a very limited repayment plan. That’s not the case with online loans. You have the ability to negotiate with online lenders for a rate and repayment plan that is ideal for your situation. You also have the ability to request loans from many different lenders and aren’t limited to just one or two offers. That’s the beauty of the internet and online bad credit car loans: you can get what you need in a fair and quick way.

Since the internet is obviously prone to many scams, it is important for you to choose a loaner carefully. Generally speaking, you don’t want to go with a lender that you’ve never heard of before or one that insists on any kind of “up-front” payment. Also, stay away from lenders based overseas as these tend to almost always be a fake.

One you find lenders you can trust you should get as many legitimate quotes as possible so that you can get the best possible loan. Good luck!