All you need to know about personal finance
The possibility exists that a person has made a lease of a vehicle, but for some reason need to get out of the contract before completion. This is allowed, but requires significant costs before doing so.
Each tenant creates its own car rental policies, however almost all tenants will be charged a penalty for early cancellation of the contract and not be unusual for these payments exceed several thousand dollars. [Read more…]
Wondering how you can borrow money when you have a low credit score? New to the ‘borrowing and lending’ business, and looking for some advice, then here are a few tips and ideas on how to go about it.
For first time borrowers, acquiring a loan may get a bit lengthy and time-taking because many lenders don’t want to lend money to new borrowers because they are not sure as to what kind of a customer they are trusting on.
For first time borrowers, acquiring a loan may get a bit lengthy and time-taking because many lenders don’t want to lend money to new borrowers because they are not sure as to what kind of a customer they are trusting on. Because new borrowers have no records of past credits, it becomes a difficult decision for the banks.
High interest rates
Often those banks that agree to give out a loan to a new borrower charge for high rates of interest. Though Banks show quite a low-interest rate, it is only applied to a few of the customers. The ones with low credit score or bad credit score (if they are given the loan), have to pay a different, and higher amount of interest rate when borrowing money.
Advice
Because of the rates which are higher than usual, it becomes essential for one to compare the prices of every bank or company that is offering the loan. So that you are sure that you are getting the best deal. Do a detailed research about bank loans and interests and that will help you make the right choice.
But before jumping on to grab the opportunity you should also consider your payment options for repaying the loan. Seek help from the professionals about your loan and finances if you are even a bit unsure.
To get the best kind of loan options you need to improve your credit score because that is the most important thing to determine whether you will qualify for a loan or not. You can improve your credit score in a lot of ways.
For starters, the newcomers may take up small loans and apply for a credit card and pay the loans back on time, to increase their credit score. You need to pay the bills on time and keep the credit balance a little higher than its limit to raise your credit score. However, if you have not been sanctioned a few loans, you should be more careful with where and how you are applying. Applying to the place where you have already been turned away is not a very good idea.
Image credit: richmondlending.com
Retired and looking to save money whenever and wherever you can? From selling off bigger homes to making informed decisions about finances and where to travel, saving money can be a challenge but doesn’t have to be a stress. How to save money after retirement begins with knowing where you spend and how to better manage your expenses.
How to save money after retirement begins with knowing where you spend and how to better manage your expenses.
While many view retirement as that phase where all is said and done, you have worked, put money aside in a 401K or other savings and investment plan, that does not mean that all bills have been paid, all is calm and well and money can be spent wherever you want it to be. Rather, the retired have to look out for their expenses as well in order to fully enjoy the retired life we all dream of someday. So what is the first step in saving money after retirement? Make a plan- budget.
Budgeting should be the first step in anything we do when it comes to financial matters. Write down current bills, take notes about all those financial obligations you have and make them a priority. Build a plan on how much you pay per month, and consider putting the rest aside in a savings for use when you really want and need that vacation holiday. Not sure you can afford a vacation but have been dreaming of one? Consider taking a vacation as a group and look into package deals to cut down the cost of transportation, food and so much more.
Other ways on how to save money after retirement include considering a move to a smaller home if you have extra space in your current living quarters that goes unused. Smaller homes do not have to mean less. Often smaller homes can be so much more in terms of comfort and everything else you feel you need. Look into purchasing a smaller home especially if you live alone.
And last, make sure you take advantage of all the opportunities out there for retired aged individuals from the purchase of consumer goods to vacation trips and so much more. These are often offered at a discounted rate and are a perfect way to enjoy the things you love without the financial sacrifice. Now you can finally breathe again- retirement is a great thing after all.
Image credit: img.medscape.com
Lending family money to a friend is certainly not a good investment option because you do not know whether you will get that money back or not, plus if the borrower defaulters, not only you lose the money, but the relationships with your loved ones get an unhealthy blow.
Great precautions need to be taken before you lend your hard-earned money.
However, when a dear friend or a close family member says that they need the money, and you are the last resort because the banks would not lend them money because of a poor credit report, you may feel obliged to help them out, if you have that much of money. However, great precautions need to be taken before you lend your hard-earned money especially to a family member, as you are investing your money and your trust into this person.
We give you some tips on how lending family money, may not put in some risk:
• Only lend cash- If a family member asks you to co-sign a bank loan or give them a credit card on your name, simply say NO. You should not hurt your credit score, when you will not be sole action taker on that money. Someone else’s actions should not put you in a situation that you yourself become a defaulter in the eyes of the financial institutions.
• Give only that much money which you can afford- Don’t just say yes to any amount of money your family may ask. You also have expenses and you cannot let your immediate family suffer just in case the borrower defaults on his payments.
• Have everything written-Although it may seem awkward, but get everything in a written and signed document. Discuss about everything, the loan amount, interest rates, how the money will be repaid and in how much time, penalties for late payments and non-payment. Have everything written down, to avoid any last minute confusions.
• Do charge interest – Even though it may sound awkward, but you need to charge interest on the money you lend. Otherwise you will be levied gift taxes on the money you lend.
• Move away from that money- One of the things that people start doing is micromanaging the accounts of the borrowers, meaning they start putting their nose as to where that money is being spent by that family member.. You have given that money like a bank, so now distance yourself from it. Just take care of the repayments, not the entire amount.
Although lending family money is a tricky job, you can do it if someone really needs it. However, take all the precautions before you risk your finances and relationships. Planning some money for this purpose while creating the family budget can make it easier to have some extra money to borrow.
Image credit: sodebnair.files.wordpress.com
For years you have saved up for retirement and hope to have a sizeable amount for when you take your leave later in life. Yet now, you are facing an on-coming divorce. What should you do? Well first things first, make sure you understand the rules and legal rights under your 401K plan. In case of a change in 401K in divorce, be aware that your spouse and your dependents can claim some or part of the retirement money. Consult your plan administrator about options and monitor changes to your plan. Make sure you do some detailed research about the plan and its guidelines to ensure that the money is protected for future financial stability.
In case of a change in 401K in divorce, your spouse and your dependents can claim a part of the retirement money
Often 401K plans are split in half during divorce settlements with your spouse receiving half of the retirement savings unless an agreement for other provisions is made. Other options include rolling over the portion of your 401K plan given to your spouse into an IRA or individual retirement account. If both you and your spouse have 401K plans often the spouse with the smaller account can claim part of the larger account. Sometimes both ex-spouses agree to take only their share which limits legal drama and court fees. Either way, it is best to talk with your spouse before marriage about future financial planning to ensure that you both are on the same page when it comes to assets.
To ensure that there is less stress during a divorce consider asking your plan administrator for copies of your QDRO or Qualified Domestic Relations Order. Make sure your QDRO is valid and verified by ensuring it has all the right information and that it was correctly created in the first place. This also prevents other from illegally accessing your 401K benefits. Make sure both sets of lawyers have copies of all paperwork so there can really be no disputing settlements.
All in all, the QDRO is an important aspect of settling a divorce dispute in a 401K plan. By making sure all you’re your paperwork is organized and you understand your legal rights, you keep your 401K in divorce protected and ensure that you are entitled to some or all of the benefits you also worked hard for.
Image credit: listcrux.com