Posts Tagged ‘Personal Finance’
NOT a secret that many adults who are stuck in a financial trap, and had to enlist the help of parents to free themselves from the problem. However, there are some things to consider before knocking on doors and ask for their help.
Condition of the elderly
Do not ask parents to help solve your financial problems, when every day they are still struggling to pay off your bills or worry about their retirement savings.
You need to find another way to get out of financial bondage, and do not burden them with your problem. As a child, you also have to face the possibility and the responsibility that one day they will have to live with you.
Various debt ranging from credit card bills, home loan or vehicle, and so can be disastrous for your financial health. However, you are more likely to get the loan money to pay off debt that is more”responsible”.
In a poll on the site Credit Cards, the parents expressed a willingness to help pay student loans, home mortgage payments, rent and car loan rather than having to pay credit card bills or even gambling debt. This is due to the latter type of debt is irresponsible spending. Parents certainly do not want to be seen to justify the behavior.
Do not ask for help unless your parents are really serious about cutting spending and looking for extra income. Find a place to stay with cheaper rent, find friends to share the rent, use public transport to work, make your own lunch, or find a second job.
Thus, in case you can overcome financial problems senditi without asking help from others. Or at least you have made progress to be seen by your parents.
Once in a lifetime
The biggest concern of parents is perhaps, one of assistance provided will lead to further help is endless. Concerns are certainly justified, because many children who have grown but remain dependent on parents to take care of their finances.
Not a gift
A Creditworthy.com poll on the site shows, the parents are more willing to help if funds provided will be returned again someday.
Some experts suggested creating a formal and written agreement, detailing the term of the loan, payment due date, until a fine if you do not pay it.
If you managed to get a loan from parents, the direct use those funds to pay your debts. Do not celebrate by spending money lent. Imagine how upset and disappointed parents, if you know that you are using the money they lend to vacation in a luxury resort and Bertram
Take responsibility for errors that you have created, and show the parents that you will avoid similar problems in the future.
HELP by lending money to someone who is experiencing financial difficulties, it is good. Moreover, if the person is a relative or close friend of our own. However, if good intentions are actually misused – for example the person has refused to make payments – then what to do?
Lend money to someone close to us has always posed a dilemma. If not lent, it is not bad. But if the loan was, there is no risk money back.
To avoid such unpleasant situations, here are some questions you should consider before deciding to disburse funds:
Verify whether the person will be given a loan can be trusted. If the less likely the money you lent will come back, then it’s better just to give a fraction of that required, or not lend at all.
Conversely, if the person can be trusted, then you should consider giving financial assistance according to ability or just give you sheilas without hope will return.
If the person is counted to borrow small amounts of money, then you can wait until he has the consciousness of his own to return the loan. If he borrowed money to par was, it would not hurt if you occasionally remind her to make a payment (of course in a smooth and not too obvious).
If you have good credit, call your credit card companies and ask for an interest rate reduction. If you don’t ask, you won’t know, as it’s unlikely that credit card companies are going to initiate a reduction on their own. (For details, checkout Cut Credit Card Bills By Negotiating A Lower APR.)
Eliminate Unnecessary Expenses
Do you need to cut back on coffees? Or movies? Or do you often have spoiled groceries? All cutbacks should start with items you wouldn’t miss, such as switching car insurance companies to get a cheaper rate, or reducing your fresh food purchases if you find food spoiling before you can eat it. Eating out is even more costly, so examine how much and how often your really need to do this.
Journal New Budget for One Month
Once you’ve gone through the first eight steps, monitor your progress by journaling for one month. You can do this by noting everything you spend in a notebook, budgeting apps on your phone, or with financial software. How you track your money isn’t as important as how much you are tracking. Focus on ensuring that every cent is tracked by dividing your expenses into categories, such as rent, food, clothing and utilities. (For more information on budget organization, check out 8 Steps To An Organized Financial Life and Budgeting Basics – Setting Up A Budget.)
Suffering from a lack of cash? It’s likely that you don’t follow a budget that reflects your earnings. Smart budgeting prevents eviction, increased credit card debt, and ruined credit scores. It’s never too late to achieve your financial goals – get started now with these 10 steps to make your financial life less stressful.
Avoid Immediate Disasters
Don’t be afraid to request bill extensions or payment plans. These requests are often granted. If your biggest worry is eviction from your apartment, talk to your landlord, but, also, see if you can get extensions on any other expenses to free up money for keeping your home.
For instance, suppose that your rent is $650 and you’re $200 short. Your bundled phone bill and cable bill is $60, your electric bill is $100 and your cell phone bill is $40. If these bill payments are postponed until your next paycheck, you can pay your rent now and avoid eviction.
Review Credit Card Payments and Due Dates
If you are only making the minimum payments on your credit card(s), you are flirting with a disastrous credit score. However, avoiding credit card payments will only worsen your debt.
For example, suppose that your minimum payment on a $1,000 balance is $40. You fail to pay $40 on time, so you are charged a $35 late fee. In addition, your interest on future charges is charged at the default rate of 25%. Now your credit card is even more difficult to pay off. Before you know it, you have an overwhelming collection of piled up late fees and missed payments. (For more on credit cards, read 6 Major Credit Card Mistakes and Understanding Credit Card Interest.)
Safety Tips Credit Cards
When it comes to protecting your credit card, you will never be too cautious. For that reason, it is important to keep your credit card in a safe place. If not, you run the risk of accidentally losing or being stolen. In any case, someone else can charge purchases on your card.
- While you are solely responsible for up to $ 50 of unauthorized purchases charged to your card (possibly less if your credit card has a security addendum), losing your credit card can be more devastating. The real concern is that someone may use the information obtained through your credit card to apply for new credit card and completely steal your identity. The result? Days, months, or years of trouble while trying to unravel the scam to restore your good credit.
- To prevent this from happening to you, take some preventive measures with your credit card statements with account credit card:
- When you close an account or apply for new credit card to replace the old, cut the old card in several small pieces.
- Breaking extracts account credit card before throwing in the trash or burn them for extra security.
- Avoid carrying your credit card in the wallet. The wallets are lost or stolen easily. Instead, take it in your front pocket. The front pocket is better than the back pocket for the back pocket is more easily accessible to pickpockets.
- Use your credit card business only with reputable, especially when shopping online.
There are several things to consider if you think to borrow money. Ideally, you should be able to:
• Know a variety of sources and institutions that provide loans
• Assess the loan terms
• Know how to calculate the cost of credit
• Define your own debt limit
Where can you borrow?
Most consumer credit comes from banks, savings and loan institutions, credit unions, credit card companies. There are also people who borrow from family or others who are a source of credit (not) good. Lenders who do not have a fixed place of business usually offer loans with higher interest rates than the legal interest rate.
To anyone you borrow, make sure you get a signed contract, and READ THE FINE PRINTED TEXT including the terms and financial costing.
How Much is Needed?
Before taking a loan, think carefully how much you need. Usually you have to pay a deposit of about 20% to 30% of total loans, depending on the type and amount of loans, the experience of your other debts, and the value of your credibility. In addition, you need to allocate funds for monthly payments and interest. It also depends on your loan term and interest charged by financial institutions. Finally, you also have to allocate funds for insurance and other taxes, such as the value of the building. All this depends on the type of loan that you’re proposing.