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May 21
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5 Ways to Avoid Financial STDs

By Credit, Debt Management, Loans, Money Management No Comments

Have you or someone you know been infected with Financial STDs? I have…   

In my book Financial Fornication, I talk about Financial STDs (Substantially Tremendous Debt).  This financial dis-ease is not only financially and emotional painful, but families and cosigners can get infected as well because it can be contagious. So, here are 5 ways to avoid Financial STDS.

Use Financial Contraception.

Financial Contraception is better known as a budget or spending plan. Create a budget or spending plan that works with your lifestyle. Using a budget is the best protection against acquiring Financial STDs.

Avoid being financially promiscuous with multiple credit cards.

Pick a credit card that has the lowest rate and provides bonus points if you must or choose to use a credit card for purchases. Using multiple credit cards may result in excessive spending, which result in Financial STDs.

Limit or Avoid Financial One Night Stands.

A financial one night stand is a financial transaction, usually less than $50-$100, that should be paid in cash or paid in full if purchased with credit. If you choose to use credit for these types of transactions, avoid turning those financial one night stands into a long term financial relationship by revolving the balance and not paying it off in full. Just “Hit it & Quit it!”

Become Financial Abstinent.

When your finances feel like they’re getting out of control, sometimes it’s best to just STOP using credit to get a handle on your finances. Being financially abstinent stops the leaks in finances so a budget can be created to build up immunity against Financial STDs.

Get out of Financially Abusive Relationships.

If you are getting your butt kicked with ridiculously high loan rates, low deposit rates, lots of fees and poor customer service, they’re probably really not that into you, which means that it’s time to plan your exit strategy from that financially abusive relationship.  You don’t have to stay. Date financial institutions to find the best one for you.

For more healthy financial tips, check out my book “Financial Fornication.”

 

Feb 27
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Steps to Take If You Have Negative Equity on Your Car

By Loans, Money Management No Comments





A car does not grow in value like a house. As a result, it’s very possible to to have negative equity on your car. Specifically, this is when you owe more money on the car than its actual worth. A car depreciates in value by around 10% even after you drive it off the lot, and it continues to depreciate after every use. Unlike a property, which can rise in value even without modifications, a car will very rarely increase in value without further investments into it.

Purchasing a car can also present various risks from the get-go. If you overpay for a car to begin with, the chances of eventually having negative equity on it are higher. If it’s too late and you already have negative equity on your car, there’s no need to fear. There are several steps you can take to help resolve the situation.

See If You Can Afford the Monthly Payment

Your monthly car payment is the primary concern for those with an upside down car loan. If you’re able to pay it on time, then it’s not a big issue and will eventually be paid off. However, this isn’t always easy. Unemployment or job loss combined with negative equity on a vehicle can put you in a bad situation.

Before considering steps to counter negative equity, it’s worth evaluating your own financial situation to determine the likelihood of paying the loan off. In many cases, it’s better to simply pay off the car in monthly installments until it’s paid off, though there are several viable alternatives as well.

Use a Credit Line

Becoming reliant on credit cards is a big no-no for personal finance. However, in the case of excess car debt, it’s a very realistic option. If moving to a credit line, you have to be absolutely certain that you can afford the monthly payments, or you will incur additional fees. Look to get a credit line with low introductory APR. Some cards offer 0% APR for the first year. If this is the case, do your best to pay it off within that year. At least with moving it to a credit line, the issue won’t be as pressing, especially if you’re deciding between groceries and your car payment.

It’s also worth consulting with a local credit union to see if they can provide a good personal loan. Peer-to-peer lending networks are another alternative, as are applying for a rollover loan, which can eliminate negative equity depending on the incentive.

Sell Excess Items, or the Car Itself

Look around your house or apartment for luxuries or items you don’t use frequently. Perhaps you have a gaming console you don’t play much anymore or a dress that you bought a year ago but never fell in love with. These are prime items to sell in the hopes of building up equity to pay off your car. Sites like eBay and Craigslist make selling items like these easy. Plus, it helps de-clutter your space.

It’s also worth considering selling the car itself. Although it’s unlikely you will net enough to cover the entire overage, it’s worth considering if it’s close enough. For example, if you owe $9,000 but get an offer for $7,000, it may very well be worth selling and taking public transit for the time being. Covering $2,000 without a car may be easier than covering $9000 with a car, depending on your lifestyle.

Work Part-Time

Even though you may feel exhausted after a long shift at work, if you’re in a rut with car payments, it’s worthwhile to get a part-time job. You can use this job’s profits to spend exclusively on the car payments. There are an abundance of part-time retail and telecommute jobs, ranging from copywriting to graphic design, that you can engage in depending on your skillset. Various employment guides can provide listings for available jobs and job fairs.

In the future, you can help avoid this problem by not purchasing a loan at all. Sometimes a car is necessary, though if you can manage without it, there’s no need to take out a loan. Paying more than the minimum each month and keeping up with car maintenance are other suggestions for avoiding negative equity situations in the future.

By Guest Contributor: Anum Yoon




Anum Yoon is a personal finance blogger who started Current on Currency. She hopes to empower people to take control of their own finances. Sign up for her weekly money newsletter here.

Oct 01
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VIDEO: 10 Commandments to Financial Freedom

By Credit, Debt Management, Loans, Money Management One Comment

Call Now: 855-778-2331
Financial Freedom, like salvation, is available for EVERYONE. However, even though we have access to it, there are principles or “commandments” that should be obeyed. So, here are the “10 Commandments for Financial Freedom.”




COMMANDMENT I: THOU SHALL MAKE IT A LIFESTYLE CHANGE, NOT A FINANCIAL DIET!

Diets are meant to be temporary; and if you can’t sustain it, old behaviors may return. Make positive financial changes that can be easy to incorporate in your “Lifestyle” and can be maintained over time to improve and enhance your financial situation.

COMMANDMENT II: THOU SHALL GET ORGANIZED

Get all of your financial statements and bills organized. This will be helpful when building and updating your spending plan (aka a budget).

COMMANDMENT III: THOU SHALL START SMALL

Every little bit counts with building savings. Start with a small savings goal and build up over time.

COMMANDMENT IV: PAY YOURSELF FIRST!

Saving is the key. Not only for emergencies but for opportunities and your future. Make sure you put your oxygen mask on first financially to ensure you have enough to help yourself and your family.

COMMANDMENT V: WAIT!

Before deciding to make a large purchase, give yourself a few days to think about the purchase or find a cheaper price.  Buyer’s remorse is a pain in the …. (you know what)!

COMMANDMENT VI: THOU SHALL PAY BILL ON TIME

Structuring when your bill payments are due will help you comply and regulate your spending plan (aka budget). Paying your credit accounts will help improve you credit reports because payment history is 35% of credit scores.

COMMANDMENT VII: THOU SHALL LEAVE CREDIT CARDS AT HOME

Use cash as much as possible! This will help you take control of compulsive spending and avoid adding on to existing debt.

COMMANDMENT VIII: NEVER FEEL DEPRIVED

Feeling deprived leads to splurging. So, don’t focus on what you can’t do or spend. Rather, focus on what you will be able to do and spend when you plan and budget for it.

COMMANDMENT IX: THOU SHALL TREAT YOURSELF

Do something small and frequent to treat yourself for keeping up with your spending plan (aka budget) and the goals you set for yourself. Moderation is key, so make sure you Reward Yourself Responsibly.

COMMANDMENT X: THOU SHALL BE CONTENT

One of life’s greatest pleasures is to be content with what you have. It is good to desire more to drive you towards your goals and plans, but being content makes the journey more pleasurable.

Comply with these commandments and enjoy the Financial Freedom you desire and deserve!


Apr 05
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5 Quick Financial Survival Tips for the Recently Divorced

By Credit, Debt Management, Loans, Money Management No Comments


Are you (or someone you know) recently divorced? I’m not … but I’ve worked with several clients who are.

If are recently divorced, you may be feeling not just the loss of a partner, but also the absence of the second paycheck. Chances are, you have been living a lifestyle based on two incomes, and now that you are the sole provider there are some changes that will need to be made. First important thing is to determine what you can live on by compiling your household and other bills and adding them up, including your food and gas expenses. Then try these 5 Quick Financial Survival Tips for the Recently Divorced.

Downsize Housing or Seek Assistance

If your rent is more than you can handle, you can search for a smaller more affordable apartment. Or if you can’t afford your mortgage alone, you can try to refinance or put the home on the market for sale. Consult with a real estate professional to help you through the process in the event a Short Sale is necessary. There are also nonprofit organizations that provide assistance with foreclosure prevention.

Reduce Cable & Cell Phone Bills

There are some quick things you can do to help you through the first year, such as reducing your cable and cell phone bills. Many of us have more channels than we watch, and now would be a good time to check to see what you are paying for and remove any channels or extra cable boxes that you do not need. Change your cell phone plan to basic usage, if possible.  However, if your cell phone is your primary telephone, have your cell phone usages evaluated to find a better or more affordable plan. Also, removing any extra features and also choosing a plan with fewer minutes. Cancel your landline telephone service, if it is rarely used.

Shop Smaller Portions

Shopping for groceries may take some getting used to, especially if you have been in a relationship for a long time. You may want to buy smaller packages of things such as meat, or freeze the portion that you will not use immediately. Make a list and use coupons. Eating at home and bringing your lunch to work will reduce those extra expenses.

Increase Your Income

If you find that after doing everything humanly possible you still do not have enough to live on, then you may want to take on a part-time job to offset your expenses. This may be a challenge, especially if you have children. So, consider starting your own home based business or connecting with a network marketing organization that is right for you with a good compensation plan and reasonable independent business owner investment.

Update Your Beneficiaries & Tax Withholding

One of the most common things that recently divorced people neglect to do is update their beneficiaries on their insurance policies, bank and investment accounts.  Make sure you update all financial documents that have or require a beneficiary. Also, don’t forget to update your tax withholding on your W-4 or W-9, if necessary. Consult with your personal financial team to make these changes completely and correctly. If you don’t have your own personal Financial Team, create one that consists of your favorite Banker, Insurance Agent, Investment Adviser, Tax Accountant and Financial Coach, like me, to help you through this process.

 

Changing your lifestyle is hard enough without having to go through a divorce. Now that it is just you, and your children if you have any, altering your budget and spending habits will help you sustain your lifestyle. Cutting back where possible and necessary will give you greater flexibility with your spending plan or budget.

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What are some additional Financial Survival Tips for the Recently Divorced?

Sep 13
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5 Car Buying Tips for Women

By Credit, Loans, Money Management, Shopping 3 Comments




Are you, or someone you know, in the market to buy a new car? The Fall Season is the best time to shop for a car because the New Year models come in, and dealers give great deals for older models to make room. Buying a new car can be exciting. However, the car buying process can also be intimidating and stressful for some women. If you are in the market for a new car now or in the near future, here are some Car Buying Tips to help save money and minimize stress when shopping for your next car.

car buying tipsKNOW YOUR BUDGET

The first and most important tip is to know “How much you can afford!” Do NOT let a car dealer’s finance department or bank tell you how much you can afford. Both essentially want to ensure that you borrow as much as possible so they can make more money off of you. The more they can make you believe that you can afford, the more the car dealership will make on the car and the more loan interest income the bank will earn on your loan.

GET PRE-QUALIFIED

The best way to avoid unpleasant surprises; like, not qualifying for the amount wanted, needing a cosigner or getting a ridiculously high interest rate, is to get Pre-Qualified or Pre-Approved for an auto loan. Go to your bank or credit union to apply for an auto loan. Tell them the payment amount you can afford to pay so they can determine the total loan amount based on the interest rate and term you qualify for based on your credit. Remember, the Higher your Credit Score, the Lower your interest rate, which may increase your qualified loan amount. Adversely, the Lower your Credit Score, the Higher your interest rate may be, which may reduce the qualified loan amount and require a down payment.

RESEARCH BEFORE YOU CAR SHOP

Now it’s time to have some fun going online to search for a vehicle in your price range. Dealers with No Haggle Deals are good because they, usually, sell their vehicles below NADAguides or Kelly Blue Book (KBB) value. Next go to NADAguides or KBB website to find out and print the Trade In and Retail Values to take when you go shopping.





TAKE A MAN WITH YOU

Some people may disagree, however,  when in doubt … take a man with you to the dealership. Take your husband, a boyfriend, father, brother, uncle, male coworker or that dude from down the street. Even if he knows nothing about cars or negotiating, take a man with you when you go car shopping. If the sales person begins speaking directly to the man, play along and coach your escort in what to say or not say. You are in control of the transaction; he is just a figurehead. Although not at all dealerships … unfortunately, women are sometimes taken advantage of during the car sales process.

NEGOTIATE BEFORE THE TEST DRIVE

Sometimes we lose our mind after we get intoxicated by that “New Car” smell during the test drive. My advice is to negotiate before you test drive to have a clear mind during the negotiation process. Here are a few things to do when you get to the car dealer:

  • Tell the sales person that you are doing a cash purchase. (Because you have already been pre-approved!)
  • Do NOT give your personal information or allow them to run your credit. (Again, you are already pre-approved.)
  • Tell the sales person what type of car and the price you want.
  • Ask if the car has any rebates or if the dealership has any incentives.
  • Ask to see the buyers order with options to see the breakdown of all expenses and fees to help you with negotiating.

Use your NADA or KBB value to negotiate the price as close to the Trade-In value as possible. Negotiating the price as close to the Trade-In value will give you equity in your car, as well as help you when you decide to trade in the car later.

Even if you are not able to get your dream car now, by getting a reasonably priced vehicle within your budget, you will help save money and get that dream car in your near future. Happy Shopping!