Credit Repair for Tough Economic Times
Has the economic downturn of the last year or so flushed your own credit down the toilet? Think you’ll never recover from your bad credit? Think again.
Bad credit isn’t the best experience of a lifetime, but it can be fixed. And even in these economically challenging times, you may have more assets to work with than you think.
Know where you stand
First, always get a current credit report. Be sure that your credit rating is accurate. Errors are not uncommon. If there has been a mistake on your credit report, get it fixed. Next, consolidate your loans, if you can, so you make one payment each month. And put those credit cards on ice-literally, if you have to! Then, put yourself on a budget. The whole family can help figure out where you can cut costs, and save some cash. Finally, only use cash to pay for everything you buy, and track your spending. Now you will know where you stand, and how much money you have available to you, each month for life and debts.
A surprising source of credit
Here is something you might not have realized that can help ease your way out of debt and to better credit-your own vehicle.
That’s right. Your vehicle may offer you some help in repairing and rebuilding your credit. If you own your vehicle, and it is less than 8 years old, car title lenders may have help for your bad credit problem.
How car title loans work
Car title loans work in different ways. One, you may be able to re-finance your car to get extra cash to help pay down those pesky bills. That helps you eliminate debt, and it helps you rebuild your credit with one stroke. It may also make the pain of bill repayment and credit repair a bit easier to bear.
Other ways car title lenders work is by helping you to repair your vehicle. If you haven’t been able to work, or you can only work in areas where there is public transit, car title lenders may be the answer to your ride problem. Car title lenders can help you to use the value in your car to repair your vehicle-and get you back on the road to better credit, and a better life.
Bad credit can sometimes seem overwhelming. But there are more ways to credit repair than you might have thought of before, and car title loans may be a good choice for you. Assets such as your vehicle can help you to pay down debt, repair bad credit, and re-start your own engine.
Loans to Improve Your Credit Rating in 2010
If you’re like thousands of others, last year was a bit of a financial disaster. Paying bills late, not making credit card payments on time, phone calls coming in reminding you to pay an account were common occurrences for so many people in 2009. As a result of these, credit ratings can take a beating.
You may be asking, just how important is a credit rating anyway? A credit rating is a legal track record of your financial responsibility. This record is housed at Equifax and TransUnion Canada and your record indicates if you are worthy of receiving credit. Landlords, utility companies and other businesses who ‘lend’ you something want to know just how responsible you are.
When you have poor credit it’s generally much more difficult to obtain a mortgage, a car, loans and even a cell phone. Poor credit can seriously hamper your ability to rent an apartment, appliances or furniture. Even those places that advertise ‘no money down and no payments til next year’ will not consider poor credit because when they say ‘OAC’, that means ‘on approved credit.’
It’s a new year and why not take the opportunity to do something to improve your credit rating? Take out a loan to help toward existing debts, making home improvements or to take a mini-vacation. It may sound crazy, but by getting a loan and making payments on time will help to re-establish your credit rating, and this is a good thing.
Many people may consider a loan to lower their credit card balances. Perhaps the thought of another monthly payment may sound overwhelming, but lowering those credit card balances also works in your favor to improve your credit rating. Many people may not realize this, but a credit card balance that exceeds 75% of the credit limit is frowned upon and is reflected negatively at Equifax and TransUnion Canada. If you have a card that’s maxed or coming close to being maxed, then lowering that balance is really important.
Getting a loan to improve your credit rating only makes sense. No matter what your credit rating is, there are options.
January Bill Blues
The holidays now seem like a distant memory but the stark reminder of all those fabulous gifts that were purchased is reality. Those credit card statements are a painful reminder that overspending can rapidly sink your financial well-being.
Life may look bleak with statements that leave you with no breathing room on any credit card. The fear of having no back-up funds in case of an emergency is now a brutal truth. It may not alleviate stress, but you are not alone. Thousands of credit card users have spent their cards to the max and are worried about how to create some breathing space.
Credit cards are a great thing until they’re maxed. Paying the minimum monthly payment will keep you in the credit company’s good books, but maintaining a balance that exceeds 75% of the allowable credit will tarnish your credit rating. There’s also the fact that paying only the minimum monthly payment on a maxed card will take you several years to bring down because generally, interest rates are exceedingly high.
If you’re able to pay more than the minimum monthly payment, then do it. However, if you’re like thousands of others, even the minimum payment is difficult to budget. Now is not the time to panic; it’s the time to stay calm and do your research on what options are available to you. It may not seem likely, but out of something negative is always something positive, you just have to look.
Now, more than ever, turning over a new leaf and taking charge of your financial health is a step in the right direction. Having the will and desire will start you off in the right direction.
Take a look to see if you can pay the minimum monthly payment. If this leaves a pit in the stomach, get on the phone and call the credit card companies. These companies can be flexible and are willing to work with you, not against you. Let them know you’re working on a plan, but you are able to make a token payment. Paying something is better than paying nothing. Ignoring a statement will only lead to these companies calling you, and ignoring those phone calls only worsen the situation. When times are tough, protect your credit rating always keep the lines of communication open with your creditors.
Now is the time to work out what money comes in monthly, and what money is required to pay the monthly bills. If there’s no way you can manage on your own then explore loan options to stay afloat. There are options and having a good credit rating is not required for some loans.
BHM Financial is a trusted name in the car title loan industry and we may have the cure to help get rid of the `bill blues.’ Check out our website today, and breathe easier tomorrow!
Financial New Year’s Resolutions: Make 2010 the Start of your Journey to being Debt-Free
Making New Year resolutions is an age-old tradition of making a commitment that’s focused at reforming or changing something negative into something positive. Many people want to make the resolution to solve their debt problems but don’t know how to follow through with results.
If you’re like many people 2009 ended with financial stress and the start of the New Year isn’t looking very bright. The holidays for many mean maxed out credit cards and payday loans leaving very little hope to stay above water let alone get ahead. Getting behind with debt payments causes stress and if you’re three months behind then categorically, those debts are considered delinquent. You’re not alone. Equifax Canada reported that as of May 31, 2009 over half a million Canadians were more than ninety days past due on their credit payments.
Trying to consolidate debt can be like hitting brick walls because bad credit impacts your ability to get a loan from many financial institutions. But, there are alternatives to traditional or payday loans available, even to those with bad credit. One such alternative is a car title loan. These are loans which are based solely on the value of your vehicle, and because these loans are secured, the borrower’s credit rating is virtually irrelevant.
Imagine starting the New Year by paying down debt you thought you’d never be able to make a dent into. Reducing the balance of your credit cards is essential in helping to build up your credit rating. Carrying a balance over 75% of your credit limit puts you into the credit rating “dog house.” Not only is it not favourable, but what if you had a financial emergency? Having room on a credit card is crucial should there be an emergency and you need cash instantly.
That “room to breathe” is also important for the sake of your emotional and physical health. Stress has been known to have a significant impact on an individual’s health, and the constant burden of financial stress is not only one of the leading causes for ill-health, but in relationship troubles. Paying down that credit card debt will provide relief and give you peace of mind.
Paying down credit card debt can seem like a never ending cycle. By obtaining a car title loan, you can put an “end” date on your debt. While it may take longer than 1 year to pay all of your debt, you can make 2010 the year you began your journey to being debt-free.
Creating a Budget that Works
Budgeting is about sacrificing, right? Wrong. Budgeting is about enjoying the results of a well planned financial strategy. If you think of budgeting as the ultimate cut-the-expenses experience, you’ll never make it. Depriving yourself completely of indulgences is not something that will provide financial gain; at the contrary, it may very likely lead you to abandon your budget completely just out of frustration for lack of rewards.
Budgeting will also tell you when applying for a loan may be feasible and even advisable. For example, for those with bad credit, applying for a small car title loan may be a perfect method to strengthen or rebuild your credit, if you include the amount of the monthly payment on your budget.
You need to be committed yet flexible when budgeting; the whole idea of budgeting is not about bringing upon yourself severe punishment, but to bring harmony and balance to your finances. Now, here are some practical tips on how to create a realistic budget.
First of all, you will need to know the trend of your expenses and income for at least two or three months. This will enable you to collect the data needed to create your budget. Always start this process at the beginning of the month. Once you gathered sufficient data, jot down your list of recurring expenses and their corresponding amounts.
For each category, average the expenses over the period of time you spent gathering the data. For example: groceries. How much did you spend in December for groceries? How much did you spend in January? Sum the totals of the two months and divide by two. This will provide you the average grocery expense per month. If you kept track of your expenses for three months, sum the totals of the three months and divide by three and so on. The longer the period of time you used to collect the data, the more accurate your average expenses will be.
Follow the same procedure for each expense category. At this point, make a note of all the expenses that happen only once or twice per year. Write them down next to the month in which they occur.
On a separate piece of paper, jot down your annual net income. Again, write down the categories (there will be just a few) and include the amounts corresponding to each category.
Estimate your average monthly income by dividing your net annual income by 12. (Note: if there is any significant income that you receive only once or twice a year, do not include it in this calculation. Remove it from your annual income so that the average will not be affected then add it again only in the month when it will be actually received).
If you do not receive regular income or if you are self-employed, estimate your monthly income based on previous trends, or use your receivables as a reasonable forecasting tool. Remember to be conservative in estimating your average monthly income so you won’t be caught off-guard. You can always adjust your budget once you have a clearer picture of the current year’s income trend.
Now that you know your monthly average expenses and average income, you can evaluate where you stand and start planning your budget.
Add all the monthly income. Add all the monthly expenses. Subtract the total of your monthly expenses from the total of your monthly income. The result will tell you immediately what your current financial status is and how to plan your budget from now on.
When you set your monthly budget, think about your objective and set realistic goals, including an amount for emergency/unforeseen expenses. Use your budget as your tool to achieve a more comfortable and rewarding life. Remember that by following a budget you’re not depriving yourself of opportunities: you’re building them.
Overcoming Financial Difficulty
Life is unpredictable and ending up in a difficult financial situation due to circumstances beyond our control is not only possible, but very likely to happen to anyone, sooner or later.
This is not to say that we are not responsible for what happens to us; in fact, we are very much the makers of our fortunes and misfortunes, but there are situations that are simply unavoidable, despite how hard we try to keep ourselves on the right path. Falling ill, for example, or losing a job due a sudden economic downturn, or simply making a human mistake cannot be foreseen or prevented despite our best efforts and wishes.
However, most of the time what drags us into trouble is our lack of wisdom and vision; our ignoring the alarms that our subconscious mind (or simply put our “gut feeling”) sends us. That inner voice is our safeguard.
When we ignore it, trouble happens. Sometimes it is minor, but sometimes it is major. And when it is major and it is financial, it may leave us, and whoever shares life with us, dealing with serious and painful consequences.
What can we do about it? First of all, we owe it to ourselves to listen to our inner wisdom. Leading psychologists suggest that there is a very practical way to do so: talking to ourselves in the mirror with an open heart and an open mind. It may feel silly, but it may just help.
When you face yourself and start your inner dialogue, you make peace within and you’ll be able to ask all the difficult questions. You’ll be surprised to discover that your inner self already holds the answers you’re seeking.
Next, you’ll find that creating a plan of action to improve your situation becomes a lot easier. The difficult part is to bring about the necessary changes to implement the plan.
Despite what most people think, the strength and the courage to make changes are within everyone; what is lacking sometimes is the motivation to go through the process because it is as painful as doing spring cleaning.
A positive moral boost, a sign confirming that what you’re doing is making a difference can work miracles at this point. For example, if you have finalized your financial plan as part of the changes you need to implement and have discovered that you’re in need of a bit of cash to kick start your recovery and consolidate some debt, you might want to think about a car title loan. Since these loans are secured by the value of your vehicle, they are easier to obtain than standard loans and your credit history or situation won’t matter very much at all. In addition to the extra cash you will have to consolidate your debt, these loans, if paid on time, will help you to begin boosting your credit rating once more.
Once you see that something is working out, achieving the next goal in your plan becomes suddenly easier. Remember that it is important to set realistic goals. Set small ones to start so they can be achieved and then work hard to achieve them. Go to the mirror and congratulate yourself on any small victory, for they are the ones that really count. Soon you’ll not only be out of trouble, but also on the road to success.
Rebuilding Peace of Mind and Your Credit
Many times – and way too often these days – we read or hear of someone in dire financial difficulties. Although most of the time the human reaction is to sympathize with the situation, the truth is that words we read or hear are hollow and abstract, no matter how hard we try to imagine being in the other person’s shoes.
With no feelings to share, we cannot relate to the anguish we read or hear about. At least, until it hits us right at home.
When financial difficulties intrude in our life disrupting it, we can suddenly understand the pain too well. Shock, humiliation, stress and a general feeling of failure begin to whisper in our ear day and night especially at night.
As stress increases, we search for a way out, but when our options dwindle we feel trapped. Personal relationships get strained in the process, adding tension to an already gloomy emotional state.
At this point, recovering peace of mind is just as important as rebuilding the finances and, consequently, one’s credit.
In fact, according to the Substance Abuse and Mental Health Services Administration of the United States, in order to fight back and regain control of one’s life, engaging in stress relief coping techniques is very important. This is what they recommend:
* Trying to keep things in perspective – recognize the good aspects of life and retain hope for the future.
* Strengthening connections with family and friends who can provide important emotional support.
* Engaging in activities such as physical exercise, sports or hobbies that can relieve stress and anxiety.
* Developing new employment skills that can provide a practical and highly effective means of coping and directly address financial difficulties.
(For more information see http://www.samhsa.gov/ECONOMY).
Of course, all of this is a lot easier said than done, but it can be done.
Above all, it is the feeling of helplessness that needs to be fought off and that’s where the above suggestions can truly help, for example, working on new employment skills and finding someone who can provide emotional support, such as a pastor, a good friend, or a family member.
Once the feeling of helplessness has been reduced, it is time to work on a sensible financial plan, taking it one step at a time in order to avoid being overwhelmed. This is where the recovery process could benefit from a consolidation loan or a title loan on a vehicle or other property.
A quick injection of cash from a reputable title or consolidation loan provider, without the restrictions and bureaucracy of the banks, can provide immediate relief, reducing the stress and allowing sufficient time to rebuild finances, credit and above all, peace of mind.
Why a Budget Makes Sense
Nobody likes to hear (or think about) the word “budget.” For some reason, the mere thought of this word sends most people into instant panic mode. But, in the wake of our current struggling economy, a budget can be a useful tool that you may want to learn how to use.
When you sit down to create a helpful budget, you are effectively finding a way to reduce financial stress. How? If you don’t know how much money you currently have, then you can bet paying everyday expenses will become stressful.
For example, if you want to go out to dinner tonight, but you don’t know if you have enough money to pay your bills, then dinner won’t be as enjoyable, right? Well, let’s look at this scenario another way: if you have created a budget (and now know exactly how much money you have to spend on dinner and bills), you won’t have to worry about ordering that second drink or buying an extra dessert to bring home.
See how helpful a budget can be? In addition to helping you spend money, a budget will also show you where you can cut back – without suffering. By keeping track of your spending habits, you can discover how you can save some extra money.
The only time that a budget doesn’t really work is if you are presently battling a large amount of debt. Why? It’s hard enough to pay massive bills every month – forget about having a little extra to spend. If this situation sounds like the present situation that you are in, then it may be time for a private loan.
Gaining a loan through a private lender is a great way to pay your bills on time without worrying about where your next meal will come from. Once you have gained this type of loan, you can then begin to budget your future expenses. You’ll quickly find that making a budget is an easy thing to do, and getting a private loan is even easier.
Private lenders of secured loans do not place a great deal of importance upon your credit report. Instead, these lenders simply want to know that you can pay back your loan. Therefore, any type of collateral that you may have (a car, truck, or mobile home) can be used to gain a one.
As soon as your loan has been granted, you can set up a monthly payment plan in order to pay back that loan. In the end, with the help of a well thought out budget and a private loan, you can work towards total financial freedom.