Plugging Up The Money Drain Part Ii Credit Changing Attitudes Towards I O U S Go Cruising With Auto Loans Loan Protection Insurance Still Being Sold Incorrectly 4 Reasons To Get An On Line Auto Insurance Quote
This article is second in the series of plugging the money drain article series. There are two more articles coming after this.
Could examining the way you use credit free money up in your budget? Absolutely yes.
The first thing you need to realize is when you use a credit card you no longer know the price of the item you are purchasing. If, for example, you buy a $30 pair of jeans and consider it a bargain because that was 20% off list price and you use a credit card that charges 18.9%, (the average credit interest rate), you are perhaps thinking that you intend to pay your balance off as soon as the bill arrives. But the reality is, most people carry a large balance on their credit cards. The average household in America now carries close to a whopping $10,000 in credit card debt. At 18.9%, the average household is paying close to $2000 in credit card interest per year, and those particular jeans are now $35.67 in the first year, almost back to full price. If you make only the minimum payment each month on your jeans, their cost by the time they are paid off will be about $52.50. But even if all you have on your credit card is that one pair of jeans, if you miss a payment, you probably just doubled the price of the jeans because of the late fee. More than half of credit card owners incur late fees. And as if that weren’t enough, incurring a late fee usually increases your interest rate on your card as well.
The best way to save money with credit cards is to avoid using them in the first place and instead use cash as much as possible. If you do use a card, pay off your balance the first month, and definitely avoid those late fees.
Whenever you borrow money, whether by card, mortgage, auto loan, home equity loan or other loan, in addition to looking for a low interest rate, try to borrow for the least amount of time, and pay more than the minimum payment. Borrowing is going to cost you the longer you take to repay. In home loans, for example, you may pay close to three times the original price of your home in mortgage payments. Getting a fifteen or a twenty year loan may make your monthly payments 10 – 20% more, but the total cost of the home will be closer to double the price, saving you tens of thousands of dollars on the same house. If you add a mortgage payment a year and apply it to the principle, you can also save big bucks.
The same is true for auto loans. If you must borrow, a two year contract will cost you much less in the long run than borrowing for longer, so resist the temptation of buying the nicest car your credit will allow. Buying a less expensive car and paying it off more quickly will let you get ahead of the game and a smaller portion of your money will be thrown away on interest rates.
Changing times give rise to changing attitudes. With education and the growth of industry, so much of what we previously believed in has become obsolete. Schooling has become essential for people of all classes today. Educated people are no longer limited to only the privileged upper classes. Governments all around the world have for quite some time recognized the importance of raising the literacy levels.
The changing attitudes are not just visible in the field of education. Gender issues have also been affected by the changing times. Women are no longer permanent fixtures in front of the hearth. They now have the freedom to venture out in the world to find their fortunes. Finding one’s fortunes is no longer limited to the men of the world. Moreover, it has become easier than ever before to actually find one’s fortunes.
This is partly due to the immense growth in the world of personal finance. To what can we attribute this growth in the field of personal finance? One of the reasons will have to be the changing attitudes of the people. There was a time when people felt embarrassed to go out and ask for loans. Then, they simply waited for conditions to get better till they became convinced that no further improvement was possible. It was only then that they decided to go out and get some loans to help them out of their monetary woes.
Times have changed a great deal. Today, people have no qualms about going to a bank or some other financial institution to avail of loans. They know that they will not be laughed at or insulted. Banking representatives are well trained in the arts of politeness. So even while rejecting a client, they use the softest words possible. Gone are the days when people developed goose bumps at the mere thought of having to go to a moneylender. These days it is normal procedure to walk into a bank and check out for yourself the loan deals that are available to you.
Thanks to the changed attitudes of the people at large, banking institutions have taken it upon themselves to make life easier for all those who are trying to improve their lots in life. As a result, our world is overflowing with loan offers that pertain to houses, cars, education, home improvement and more. Working up a tab is no longer a bad thing. After all, credit cards have turned into status symbols. And all this is thanks to changing attitudes.
Purchasing that first car is an emotional journey. You want that car to be faultless. It should look great. It should move well. And it should be affordable. Well, gone are the days when you had to scrimp and save so that you could buy that perfect first car. With every loan provider in the world encouraging you to believe how uncomplicated it is to buy a car, getting finance for a car is no longer a big deal. Walk over to your nearest bank and brows through what they are offering by way of car loans.
Auto loans are no longer all that difficult to get, thanks to the immense growth spurt in the field of personal loans. All you have to do is decide on some fundamental issues. What is the amount of loan that you are willing to take? For how much time would you be able to keep paying for your car? What kind of a rate of interest will you be able to afford? And are you planning to get insurance for your car?
In general, do note that being unsecured loans, most car loans will demand that you pay higher rates of interest than you would be paying on a secured loan. Incidentally, you could also get a secured loan to aid you in buying that new car if you so prefer. But this is not really necessary.
If you are looking to insure you new set of wheels, it would be a good idea to compare car insurance offers. In my opinion, everyone should invest in good car insurance. I mean, you are putting in a lot of cash on that automobile. Don’t you think it a good idea to keep some money aside for an unforeseen accident or an unexpected mechanical breakdown?
Often, the car loan provider will provide you with a certain sum to cover the insurance expenses. Sometimes, car insurance providers even give preference to women. Now when will they come up with a car insurance that caters specifically to men? Ideally, if your knowledge of insurance and cars is not too high, you should contact a good insurance broker. He will know of the best deals to suit your budget and take care of your car. In addition to this, surf the cyber world to find some good car insurance deals for your new speedster.
The key to chancing upon the best deals — both loans and insurance — lies in being focused. Determine what you are really looking for and based on that, decrease your choices to the two or three that are the most suitable. Having done that, weigh the options in your shortlist before reaching the final decision.
Loan protection insurance came under fire in 2005 when the Financial Services Authority began an investigation into the sector following a super complaint made to the Office of Fair Trading by the Citizens Advice. It was revealed that many changes needed to be made to the way the product was sold and although some positive changes have been made a recent review by the Financial Services Authority has revealed that firms are still not making the product easy for the consumer to understand and is still being sold incorrectly.
Loan protection insurance can give you a tax free income each month if you become out of and unable to work due to suffering from an accident, long term sickness or through unemployment such as redundancy. After you had been out of work for a set period of time which can be anywhere between one to three months’ after the event, the insurance would provide you a tax free income for up to 12 months and with some policies for up to 24 months.
Do note that there can be exclusions which could mean that the product isn’t suitable for all circumstances so it is essential that these are pointed out at the time of buying. Some typical reasons include being of retirement age, self-employed, only in part time work or if you have an ongoing illness at the time of taking out the policy.
One of the many problems associated with the mis-selling of loan protection insurance and which led to several firms receiving fines from the Financial Services Authority early 2007 for was not making the product clear at the time of selling, poor selling techniques led to the product being mis-sold and people holding policies they couldn’t claim against. The majority of policies are bought alongside the loan at the time the loan is taken out with the high street lender but buying the cover this way can add hundreds more onto the cost than it needs too. Loan protection insurance can be bought independently of the loan and this is the best way to make huge savings on the premiums for what could be essential cover and give great peace of mind.
The standalone specialist provider of loan protection insurance will always make sure that the consumer has access to the vital information and key facts that is needed to be able to make an informed decision regarding the products suitability. One of the biggest changes for the better is to come in March 2008 with the introduction of comparison charts, comparison charts will make purchasing the correct product easier for consumers as they will answer a series of questions which will then lead the to the correct payment protection product. Along with this the charts will show how much in total the cover will cost, point out the exclusions within them and help the consumer to get the best deal.
It is important to remember that it isn’t the product itself that is to blame for the problems surrounding payment protection but those who have poor selling techniques such as the high street lenders. A standalone specialist will know their products inside out and as such be able to give you the essential advice needed for you to make the right choice regarding the suitability of loan protection insurance.
Whether you are looking for a new auto insurance plan, or just want to see what is out there, getting an on line auto insurance quote is a great idea. There are a variety of great places you can go online that will offer you free auto insurance quotes with no hassle whatsoever. If you have not got your instant auto insurance quote, the following are four great reasons you need to give it a go.
Reason #1 – It’s So Easy! – One of the best reasons that you should get an on line auto insurance quote is because it is so easy. No need to flip through your phone book looking for places to call or to spend your day on the phone trying to get a quote from a company. You can get your quote online without a bunch of hassle and it is so much easier than trying to call someone up. Online you can just simply enter your information and then get a great quote back on auto insurance.
Reason #2 – It Can Save You Big Money – Getting an instant auto insurance quote online can also save you a great deal of money. Often you will find that the quotes you get online are much cheaper than you could get anywhere offline. Many companies actually offer special online rates if you go online to get one of their auto insurance quotes.
Reason #3 – It’s Totally Free – Another reason you should get your on line auto insurance quote is because it is totally free. There are a variety of places that you can find free auto insurance quotes, and you will have no obligation whatsoever when you get a free quote online. Since it is totally free, there is no reason not to find out how much money you could be saving on your auto insurance.
Reason #4 – It’s Fast – Getting your auto insurance quote online is also very fast. You can get an instant auto insurance quote that will allow you to know how much you could save in just minutes. Why spend time waiting forever on hold with a company on the phone, when you can get an instant quote online.
If you need an insurance quote, and on line auto insurance quote is definitely the best way to go. They are easy, free, fast, and can save you hundreds of dollars on your car insurance. What are you waiting for? Your quote on car insurance is just a few seconds away..
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