On Saving Money

May 19, 2018

Income vs. Expense

Despite what many may believe, saving money is actually a lot easier than you think.  The reality is that most people are simply spending far more than they need to, but have become so complacent with their situation, that they don’t realize what they could be saving. The two main elements involved in saving money are…

Income Expenses

In order to save money of any kind, you will initially need some sort of income. This can be in the form of a salary from your job, profits from your own company, or any other kind of payments you receive (like benefits or support). Most people will receive a set amount of money monthly, but even if you don’t, you should be able to calculate the total average income you receive by dividing your last year’s income by twelve. Once you know your average monthly income, all you need to do is adjust your monthly expenses to be lower than your income.

No matter how little or how much you earn, you can always save something.

Ways to Save

Budget, Budget, Budget. Creating a realistic and comprehensive budget is the number one element required in an effective saving plan. Even if you only do one thing on this list, do this one. Being able to see in clear numbers your exact monthly expenditure is key to knowing where you are overspending and where you can save. Bills such as rent, transportation, utilities – and debt payments to agencies like Eos Collections – are often unavoidable, but everything else such as groceries and entertainment can be curtailed to provide you with savings.

Get a Savings Account

Leaving all your money in your current account is a sure-fire way to burn through every month. Most banks provide a savings account included in your normal account. See to it that you inquire about banking options that are available to you. At the beginning of each month, pay your required bills and rent and then move all your remaining income to your savings account. This will encourage you to save because you will be aware of exactly how much you are moving back to your current account each time you use your card. If possible, automate this procedure with your online banking portal.

Pay off your Credit Card in Full

Always ensure you pay off your credit card every month – in full. Credit cards are dangerous if not properly managed, but can also be incredibly useful in building a credit score and ensuring you can get loan approvals in future, should you wish to buy a house or some such.  Any debt left on your credit card means you are simply throwing money away. Never spend more on your card than the monthly amount you have left after rent and bills.

Stop Eating and Drinking Out

This may seem like an obvious one, but it’s easier said than done… Friends, family commitments, business meetings, dates – they can all add up. To avoid eating out too often you need to be militant with yourself. Prioritize your monthly engagements and ensure only to attends those that are entirely unavoidable.  Invite friends to your home (or agree to meet them at theirs) for drinks and other social meetings. When eating out, avoid alcohol, as it’s generally the most marked-up item and can double the cost of a meal.

Check your Utilities and Insurance on Comparison Websites

Many people are paying far more than they need to in gas, electricity, phone and insurance bills. The recent popularity of Online Comparison websites has forced rip-off companies to bring down their prices to compete with competitors. Often you won’t even need to change providers – simply inform your current provider you can get a better deal with someone else, and they will almost always agree to match the price in order to keep you on as a customer.

Take on a Second Job

If you have tried everything else and can’t find any way to reduce your expenses, then the only other option is to increase your income. These days earning additional income online is more popular than ever, and almost everybody will find something that fits their skill set. Examples of online jobs that require little or no experience include ad-clickers, data entry, website testing and even online jury duty.

Common Mistakes That Destroys Your Credit Score

July 23, 2016

While it takes years to build great credit, it only takes a few months to destroy it. That’s why if you are new to the “game of credit” and how it affects your life – or if you are attempting to rebuild bad credit after making too many credit mistakes – it’s a good idea to avoid some of the triggers that can negatively affect your credit score for a long time.

1. Co-signing for many friends and family

Before endorsing friends and family for a loan, you may need to consider its impact on your credit score. Co-signing for a line credit could influence your credit reports, thereby, bringing about a drop in your credit score. As an underwriter, you assume the liability of guaranteeing full responsibility of the line of credit advance by the borrower, in accordance to the expressed terms. A default or failure to pay for the loan, by the borrower, brings down your credit score. If you are a victim to identity theft, and were fraudulently placed as co-signer, credit repair techniques can show you how to erase debt or debt collectors, like Allied Interstate.

2. Failing to make your payments on time

Making a payment on time is the most significant factor affecting your credit score. Late payments will affect your credit score, based on the frequency of the late payments. In fact, your first 30 day late payment can drop your credit score by 100 points or more. If you happen to miss your payment by a day or two, don’t worry, this isn’t such a big deal. However, once you reach the 30-day mark, expect a decrease to show up on your credit score, for missing the payment deadline. If your missed payment is due to not having the financial means to pay your creditor, instead of ignoring the situation, call them and discuss your circumstances. It is possible that your creditor will delay informing the credit bureaus of your late payment, in order to give you a chance to catch up.

3. Not checking credit reports

Remember that your credit report is an excellent tool to help you identify what your current financial problems are all about. It will tell you which exact aspect you need to work on, immediately. So, before you think about getting a debt consolidation loan, make sure you know what your credit report needs, and act on it. Learn how to dispute items on your credit report at, CleanUpCreditFast.org/tips/easy-way.

4. Applying for too many credit cards

When you’re getting a mailbox full of great offers such as 0% interest for a limited time, and 0% balance transfers, it’s hard to resist not accepting them. However, what seems to be a good situation can quickly turn into a dangerous one, if you end up with too many credit cards at once – particularly if they are credit cards for particular stores. Having multiple credit cards makes it tempting to put balances on them, so this situation requires careful discipline. If you don’t think you will be able to maintain that discipline, it’s best to avoid the situation altogether.

5. Frequent application of new credit cards

At whatever time you apply for a card or a loan, the loan specialist carries out an investigation known as the ‘Hard Credit’ request, which looks to survey your financial or credit profile. This activity will drop your credit score by 10% and it stays on your credit report two years. Continuous utilization of new charge cards indicates that you are a less desirable candidate for lines of credit from banks. Factual examination has demonstrated that having various (new) charge cards, in a brief span of time, is a sign of how terrible an individual handles his debt obligations.

6. Maxing out all of your credit cards

This mistake commonly follows those who fail to pay on time. Maxing out your credit cards lowers your credit score significantly and creates a situation in which many find it difficult to make payments on time. Remember that the amount that you owe on credit cards (and other revolving accounts) has a huge impact on your credit report. In this way, the aforementioned mistakes forms a vicious cycle that is hard to escape, particularly if you are in a period of attempting to rebuild your credit. Website information on credit repair can show you how to handle ‘code red’ situations involving debt management.

7. Destroying the plastic

Many people think that tearing up their credit cards and closing them down is a good way to say goodbye to debt forever. However, note that closing them down can actually lower your credit score (this can heighten your debt ratio and put yet another blemish on your credit history). So, try not to get rid of them, altogether. Instead, pay them off and hide them in a place that is highly inaccessible – this should help prevent impulse buying.

How To Appeal Property Taxes

July 8, 2015

Every year, people with their own property, pay property taxes. Their taxes are charged, gathered and spent by the local government to finance the needs of their residents. But there are instances that you might get unreasonable property taxes, which are higher than usual. In that case, you need to file an appeal to correct it. The over estimation of taxes can cause a home owner to fall behind on payments for other debts or debt collectors, like National Credit Collections Agency. When you are going to appeal your taxes, you need to know that you are appealing your property’s assessed value, not your tax bill. The following are the things you need to know when appealing your property taxes.

As an aside, it should be noted that while your intention may be to appeal your property taxes, to lower them, there is the possibility that your taxes may have been underestimated; and as such, you may run the risk of paying more. Thus, if you have additional debts by groups like afni collections , you may have consider the possibility of handing more debt.

Who can file an appeal?

Why do you need to file an appeal?

What evidence is needed, when you file an appeal?

How to file an appeal?

Again, make it a point to remove the possibility of inadvertently ending up paying more property tax than you had intended to pay, as it will further burden your finances, making it difficult to service debts; thus, lead to dealing with debt collectors, like Hunter Collection Agency. Overall, take special care to cross your T’s and dot your I’s, because, as tedious as the process may seem, you may very well find, that going through these steps will spare you thousands of dollars in unnecessary fees.

Auto Deficiency 101: The Basics

June 8, 2015

An auto deficiency is regarded as the difference between the amount of money that you owe on your car, and the amount of money your car was sold for, by your lender – after repossessing it.

Even if your car lender repossesses your car or any other type of vehicle, such as a truck, van, or motorcycle – this does not guarantee you the freedom to rejoice, since you still owe them a deficiency.

You may have owed them more than the car was worth; this condition is normally known as, underwater.

If you have been making commitments and paying the small payments, your car may not be repossessed. Nonetheless, you should try to understand what a deficiency is, to avoid getting into such situations – or (in some cases) how to get out of them. You also need to know how an auto deficiency affects your credit score, as well as, how to check your equifax dispute status, to make sure that your credit report accurately reflects your current financial situation.

Security

Security is the valuable item that is needed to collateralize a loan; thus, it is needed when you take a loan to purchase a car; normally you may be required to use your car as security, to be used as collateral, for the loan.

This means if you fail to repay your loan on time or if you’re unable to pay your loan, the lending company will sell your car, in order to recoup the money you failed to pay back.

Repossession is known as the process of taking the car that you owe. After they repossess your car, the lending company will look for the best buyer, and sell it. The company normally sells your car, without giving you any specific details about their transaction.

You may sell your car and get more than what you owe the company; this means that you will have extra cash at your disposal, after clearing your loan. For instance, you may owe the lending company $20,000, and then you sell your car at $25,000, meaning you have an extra of $5,000 at your disposal. The funds are usually known as, surplus.

In order to preserve some more credit, it is advisable that you sell the car yourself, if you are sure that it will sell more.

Negative equity occurs in a situation where your car may sell less than what you may owe the lending company; this may be influenced by high interest rates, with long terms that makes it a challenge for you to repay your loan.

In such a scenario, when the lending company sell your car, there will be a large difference on what they sell it for, and the actual amount you owe them. This is what is known as auto deficiency. For instance, if they sell your car at $20,000, but you owe them $25,000, $5,000 is usually the deficiency that you owe them.

For you to avoid such situations, you are required to do a background check, before deciding to let the lender take your car. You may also find a dealer who will be able estimate the value of your car, in order to know where you stand, financially. Lenders may also keep possession of the inbuilt systems inside your car.

Judgments concerning deficiencies are normally treated like any other. They can make every effort to collect the money that you owe them. However, you can always discuss matters with the lenders (explaining your situation), in order to establish how you can pay them the deficiency. Sometimes, an overzealous lender may jump the gun and wrongfully report negative items to the credit bureaus; if this is the case, you still have the option to call the transunion dispute phone number, to investigate, and resolve matters, quickly.

Ways in which your lender can collect their deficiency that you owe them:

Before you make any deals with any lenders, you should always weigh the options of other offers, by different car lending companies.

Below are some strategies you can use, in order to defend yourself in case of an auto deficiency situation:

mercedes_sport_740x295_03-2013You should know that, a lending company may take more than 1 year to attain a deficiency judgment, so they won’t progress too quickly, when it comes to collection. This may be beneficial, if you have no assets or if you are a low income earner.

You can also work out a payment plan between you and your lender, since they may be willing to listen to you, for the sake of getting their money back. You can convince them by showing that you are experiencing financial problems, thus, justifying your proposal of a dramatic reduction of your monthly payments.

Things Must Know About Fair Credit Reporting Act (FCRA)

April 16, 2015

This Fair Credit Reporting Act, (aka the FCRA), is a federal law of United States which regulates the dissemination, collection and use of  consumer information – namely, credit information. Together with Fair Debt Collection Practices Act or FDCPA, it creates the base of the credit rights of the consumer in United States.

Credit Reporting Agencies (or CRAs) are units that are tasked to disseminate and collect consumer information, to use for the evaluation of credit, as well as other purposes – like employment. The Credit Bureaus is a consumer agency that holds the credit reports of the consumers in databases. Credit Reporting Agencies possess a number of responsibilities under Fair Credit Reporting Act, including the following:

Nationwide Credit Reporting Agencies

Aside from the three credit reporting agencies (CRAs) , FCRA classify many companies as “nationwide specialty consumer reporting agencies” who produce reports of individual consumers, in order to measure one’s financial credibility to be granted credit; based on Section 603 of FCRA, the quoted term means that the reporting agency that maintains information on file, does business relating to the following:

Aside from selling consumers’ files from credit reports, FCRA also delivers an annual free report (upon consumer’s request), after an item dispute has been completed. Also, if one’s credit report reveals a collection agency, like Arrow Financial, is harassing you, you can go to a credit repair site to learn how to end it.

The Creditors

This term is defined by FCRA as the company that supplies the information to the credit reporting agencies. Normally, these are called creditors with which the consumer has kind of credit agreement.

Other samples of information suppliers are municipal or state courts, collection agencies, present and past bonders and employers. Lenders also have a very important role in ensuring the accuracy of the credit reports. Under FCRA, these information suppliers may report the consumers’ credit information, using the following guidelines:

Those who use information for insurance, credit or even employment purposes, have the responsibilities under FCRA:

The Employers

Under FCRA, employers should follow the main procedures in using credit reporting agencies, in order to obtain consumer information regarding prospective employees – for the purpose of employment. The reports should include driving history & records of motor vehicle; if you have a debt from a collection agency (for example, like cbe group); the report should include credit checks & background criminal information, as well. The CFPB issued FCRA updated notices that consumer and credit reporting agencies should be used in administering background checks for job applicants or employees.

This act protects you by asking credit reporting agencies with the following:

This Fair Credit Reporting Act (aka FCRA) can help us ensure the privacy, accuracy and fairness of the information that is kept by the reporting agencies. Under this law, we have rights, and it is of the utmost importance to be aware of them & how they affect us. If you are experiencing an issue that falls into the credit category, instead of settling this on your own, try to speak with an attorney. They are the ones who can help you and provide the information that you need.