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.
Are You in for Tax Troubles?
Are you like thousands of others, cringing over the thought of having to file your 2009 income taxes because you know you owe? This annual anxiety strikes many people and it causes grief to so many because they know they don’t have the money to pay what they owe.
So many people procrastinate and do not file before April 30th. Of course, if you don’t file by that date and you owe, interest can accrue faster than interest on a credit card. Getting those nasty reminders to file your taxes only adds to the anxiety and as we all know, the government will not go away.
Perhaps getting some advice as to what you can do to avoid this from happening next year is food for thought. A very simple strategy to avoid having to owe the government is asking your employer to take off more tax on every paycheque. It may be a small adjustment to make every time you’re paid, but it will pay off. If you end up paying too much, then you will get a refund. This is smart advice for those who are in no financial position to buy RRSP’s or to execute other financial strategies to get a refund every year.
Now that there is some relief for next year, it doesn’t help matters now. You know you’re going to owe and wanting to file your taxes has become a source of stress. There’s no need to panic because there are always options.
Is your credit in good shape? If it is, then there are numerous options available to you. For so many people, the last recession took their credit rating and obliterated it. If you’re one of those people, you know your chances of getting a loan are slim to nil. There’s no need to feel down, there are options open to you.
If you are not sure what your credit rating is, then you can find out for free. Every year you are entitled to a free credit file disclosure; this is more commonly referred to as a credit report. Once every twelve months you are legally allowed to get your report from Equifax, TransUnion and Experian. This is something that is highly recommended not only to monitor your credit rating, but it is advisable to be diligent in doing this every year to monitor the possibility of identity theft and fraud. If something nefarious has appeared on your rating, you can appeal it.
“Car title loans” are one of those options for people with poor credit. These loans are set up specifically for those who have credit that a bank may view as less-than-desirable. A car title loan is secured based on the value of the borrower’s vehicle. These loans are facilitated much faster and are by far easier to obtain than standard loans.
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!
Is Bad Credit Dampening Your Holiday Season Plans?
The holiday season is upon us and there is a high probability that many of us have already exhausted our credit limits, leaving little or nothing to go-ahead with the much-awaited season’s shopping. Many homeowners find themselves in similar situations during this time of the year when planning family gatherings and refurbishing the house are top priorities. Prices of most commodities, including basic household supplies, tend to rise during the holiday season.
Retailers are able to dictate the prices, as they realize that consumers are pre-occupied with buying during the festive period, without bothering too much about the fairness of the cost. In such a scenario, credit availability becomes an even bigger issue if you have bad credit. Most conventional credit extending organizations are overwhelmed by the large volume of credit-seekers who approach them during the November-to-January period. Thus, chances of a loan request being turned down are even greater since the approving authorities have enough volume to choose those with good credit scores.
Planning to stretch your Credit Card? Think again!
Distressed people, unable to access credit, often turn towards seeking extensions on their credit cards without realizing that they are paying more than the standard interest rates. This happens because credit card companies realize that spending is largely unavoidable for most people during the holiday season and thus, they tend to manipulate the situation in their favor. This is why the holiday season is commonly associated with extensive advertising campaigns by credit card companies, coaxing people to ‘buy more’ with many hidden repayment clauses (hiked-up charges) concealed within the hard-to-understand paperwork.
Considering the predicament of those with bad credit, a car title loan may be the most sensible solution. For starters, this kind of credit is extended without questioning an applicant’s credit history, making it ideal for those who are struggling with a poor credit history. Car title loans are also referred to as easy loans for ’sub-prime borrowers’ which underlines the fact that they are ideally suited for people with bad credit scores. Secondly, car title loans are uncomplicated, as the amount of documentation involved in the entire process is negligible when compared to loans sought from banking institutions. Further, the processing of the loan is transparent, wherein an applicant is duly informed about the loan structure, including the rate of interest charged and the repayment schedule. An applicant needs to be equipped with basic information such as proof of ownership of the vehicle against which the loan is being sought, along with easy-to-furnish documents like residential proof or driver’s license.
The final decision rests with you – whether you want to risk being entrapped with devious, credit card companies or multiply your quotient of happiness by seeking sensible and secured credit in the form of a Car Title Loan.
Bad Credit Doesn’t Have To Leave You High and Dry
If you are one of thousands of Canadians struggling to make ends meet and move forward through these difficult economic times, you may be facing financial challenges you never expected. Having a lower credit score is part and parcel of some of the very real issues facing individuals all across the globe. Living off of credit cards, losing one or more income streams, and trying month after month to pay off pre-existing debt can lead many of us into the bad credit zone. With more and more banks turning a blind eye or a deaf ear to even the most trustworthy clients unless they are presented with a stellar credit report, individuals are finding the lending waters choppy at best.
Fortunately, there is hope for those with bad credit who still need, want and deserve to take out loans. Of course the very act of borrowing money and successfully paying it back will increase your credit score, so it makes sense that finding a solution of this nature will not only benefit the lender and the recipient of the loan, but will assist in improving the overall economic climate as well.
Securing a bad credit personal loan or car title loan can prevent someone from crossing the line from bad credit over to bankruptcy. Car title loans for bad credit are secured using the title of your car. These loans use a paid-off automobile as collateral. Typically, your loan is repaid in monthly installments over a period of one to four years, and is for an amount that is 50% or less of the value of the car. It is possible to obtain car title loans with bad credit. There are many lenders on-line who offer these secure loans, so do your due diligence and research a reputable lender with flexible terms to suit your budget. Car title loan lenders are a very helpful alternative to banks for bad credit loans, and an option many people are turning to in order to get back on track financially.
In addition, the benefits of car title loans outweigh any possible drawbacks. Unlike other loan application processes, the long, drawn out application process is reduced drastically, allowing you to complete the process within the comfort of your own home, and in just a short period of time. No more fretting over medical bills, holiday gift shopping or school supplies for your children. The time is now to take advantage of what many Canadians are finding to be a solid stepping stone in this economy.
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.
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.
Does Getting Out of Debt Take a Miracle?
The world seems to be full of “get out of debt quickly” solutions, yet most of these solutions are nothing more than smoke and mirrors. This leaves a lot of people asking the question: does getting out of debt take a miracle?
The truth behind the matter is that getting out of debt is not only easy to do; it’s also easy to understand. You don’t need a miracle in order to reduce the amount of debt that you currently have.
What you do need is some plain and simple logic that you can easily follow. Forget about complicated financial plans, and take a moment to look over these simple steps. As soon as you begin to see that light at the end of the financial tunnel, you’ll be able to find your way out of debt.
- First things first – take a good look at your spending habits. You may have heard this one before, but what do you consider “frivolous” spending? If you are justifying expensive lattes and the occasional pair of designer jeans that you don’t really need, then you aren’t exactly tracking all of your spending habits.
- Know the signs of debt. Did you know that debt has warning signs? While debt may not scream at you or flash a bright light in your face, there are some ways to tell if you are sinking quickly into the debt hole. You are headed for disaster if you:
- Miss monthly payments on a regular basis
- Borrow money from your friends
- Ask your credit card company for a cash advance frequently
- Understand your age group. Certain age groups are more susceptible to debt than other age groups. Parents, retirees, and low-income families are the first ones to encounter debt. If you fit nicely into any of these groups, then it’s time to check your debt.
- Consider debt consolidation. If you have bad credit and can’t be approved by standard financial institutions, take out a private car title loan. These loans are based on the value of your car, not on your credit rating so they are accessible to almost anyone who owns a vehicle.So, how can a loan help you when you are already in debt? You can use the money you borrow to pay off multiple creditors, reducing the number of creditors you owe and the number of monthly payments you make. You won’t have to make a million monthly payments to multiple creditors, instead, you can make one monthly payment, and pay off your bills in no time. You’ll also be able to prove to future creditors that you can handle your debt – these loans look great on credit reports!