Category: Related to Money
What are the things that frustrate you most in family life? Most people would agree that few things can be more frustrating than having a line of bills to pay and not having enough money to pay for them. That can leave you feeling so helpless. But for most families and that might include yours, all it takes is just a closer look at the finances to stay away from that frustration. A close scrutiny and a real honest to good financial planning can go a long way in setting money matters straight.
We have listed here some ideas that you can use if you are having a hard time when it comes to handling the finances of your family. We’re not saying that following these ideas would resolve all of your money issues, but they might help.
Deal with the Numbers
Few families actually spend the time to sit down and deal with the numbers concerning their expenses and their income. Since most families are always busy, budgeting is something that is not prioritized. But you have to take the time and do the math if you want to set your finances in order.
Just sit down with your spouse and have a pen, paper and a calculator on hand. List down all of the sources of income of your family within a monthly period and once you are done with that you can start listing all of your expenses. To keep track of all the expenses of the family, you would need the cooperation of everyone. The key here is to be able to list down everything so that you will have a clear idea on how much you are earning and how much you have to spend.
Cutting Down on Expenses
When you have listed down your income and your expenses, you might notice that there is a huge difference between the two. You might notice how you are spending more than what you are making. That shouldn’t be the case because if you are spending more than what you earn that only means you are incurring debt. What you should do then is to cut down on your expenses.
There is always some kind of expense that you don’t really need. If you still have cable TV for example, this might be the right time to get rid of it. That could save you a few hundred dollars every month. For a family that’s been used to living from paycheck to paycheck, an extra $300 each month can mean a lot. You can find some other expense that you don’t really need.
Allocating the Funds
After you have written the actual figures of your income and expenses, it is going to be a lot easier for you to start allocating the money that you have. You have to allocate so you can prioritize expenses. Some expenses are more important than others. You can start allocating money on a weekly basis. That means you can set aside money that would cover for the expenses on a weekly period. Any money that is left over for that week can then be set aside for your savings account. The amount that would go to your savings might be small but if you do it regularly, then it should reach a significant amount in the long run.
Set Some Limitations
One of the things that you need to agree on with your partner would be the limitations that your family would have in connection with expenses. Both of you should have a limit on the amount that you can spend without having to consult each other first. For example, you can set $300 as your limit. If you want to buy something that costs over $300 then you have to consult your partner first before you make the purchase. This will help prevent any unnecessary purchases because both of you would have to agree first before anything expensive can be bought. This can also help to prevent misunderstandings that can arise from not consulting one another.
If you have children who are old enough then you should include them when you are discussing limitations of your expenses.
Creating Financial Goals for the Family
When the budget and the limitations have been set, the next thing for your family to discuss is what your financial goals are. It’s a good idea to include your children in these discussions. While they cannot offer any insights on how the bills can be paid, they could offer some ideas as to where you should go on vacation and other projects that you would be doing as a family.
When you have decided on goals that would involve your family’s finances, the next step is for you to decide on how you can reach those goals. That’s something that you and your partner should agree on.
The budget has been made, the limitations set and the goals defined, what is your next step to improve your finances? The next thing for you is to become proactive when it comes to your family’s finances. You should work on your money problems even before they start out. There are many money management programs that you can use. These programs will allow you to track your finances with relative ease.
Money Saving for Families
No matter what the financial situation of your family is, you could always use extra money. Here are some money saving tips that your family can use.
One move that you can follow in order to save some money is to go for sales. Stores are always offering sales which you can take advantage of. The trick here is not to buy anything just because it’s on sale. You have to look for the things that you really need that are on sale. Clothes for example are usually placed on sale and you can get a good bargain for those.
Another money saving move that you can follow is to start shopping online. Buying things from the internet is not only fast and convenient, but it can also offer some really good deals. Online stores can offer lower prices because they have less overhead costs. You can also do more searching when you are using the internet.
Going DIY is another way that you can save some of your hard-earned cash. Instead of paying others to do some of the simpler tasks for you, you can try to learn how to do those tasks on your own. There are plenty of guides that you can turn to on the internet when you want to do research for those DIY tasks. There are some simple tasks at home that you should learn how to do on your own instead of hiring someone.
Another great way that you can save money is by growing more of what you eat. If you have a small plot of land, you can start a vegetable garden. The amount that you can save by growing your own food might not be that much, but at least you know that you are eating healthy food that’s free from pesticides and chemicals.
Don’t worry when you don’t know much on how you can handle your family’s finances. Everyone has to start at some point, but by keeping these simple things in mind, you will be on the right track. You do not have to learn anything complicated to get your finances in order.
An online loan may be an answer to your current financial problem if you find that you need some additional funding but do not know where to get it from. But, take heed, these payday loans found on the Internet can actually mess up your financial life if you are not careful when dealing with online lenders. In fact, the Consumer Federation of America spends thousands of money sending information out to people who stand the biggest chance of taking out an easy payday loan because they think it is the solution to their problem.
It Will Not Solve Your Problem
What people really need to keep in their mind is that solving a financial problem with another problem does not equal a solution. In fact, taking out a payday loan online just to pay off another loan is not a wise decision to make. Payday loan lenders that you can find online charge really high interest rates because the loans are unsecured. In fact, many people find themselves in a deeper financial rut in the end when they have another loan to think about. The best way to solve a financial problem is to see what options you have of paying it back. If you have a debt that needs to be paid off with a utility company, see if you can speak with someone in their legal department and discuss options with them how you will be able to pay back to the best of your ability. There are still people in these companies that will agree to your terms and will help you find ways to pay off debt.
You Might Face Harassment
There have been countless stories from people who have taken out a payday loan from certain companies and then got harassed when they defaulted on a payment. These people have also said that the lending company they got a loan from even sent them messages and threatened them with the police if they did not make good on their payments. This is basically a scary situation to be in because no one wants to be harassed by a lending company. Make sure you do not fall for one of those lending companies that really do not do business practice properly. You will be able to see lending companies that have a rating of F with the Better Business Bureau and see other people’s reviews on them.
Knowledge Is Your Best Ally
The best thing you can do right now is to read up on these lending companies and see why people do not want to do business with them. You can get additional information from banks and even your local community as to why these online lenders should be avoided. If you are able to have enough knowledge about the negative sides of an easy payday loan, you will be able to make a wise decision should you really need to get it or not.
How you will be treated by your chosen home loan provider will largely depend on the way you have handled your past financial obligations, something recorded in your credit rating and consequently affecting a credit score. Obviously the higher the credit score the better, something influenced by any outstanding and current payments you might have chosen to overlook for any rational reasons, eg. an emergency, a sudden death in the family or others. Even if it was reasonable enough for you, despite the extenuating circumstances, the score will be relentlessly pushed down despite your best intentions, something you might find hard to prevent at any stage in life, when trying times visit us. In that scenario, your position is no better than someone’s whose recklessness and avoidance to exert effort in fastidiously tracking down all the payables demanding prompt settlement.
The Credit Score Matters
While any half hearted attempts at improving a credit score before applying for mortgage loans are not recommended, though that does not mean the payments should be halted whatsoever. In place of opening a new line of credit (though seemingly an impossible operation), borrowers are encouraged to consider their alternatives, which include contacting a credit consultant and renegotiating the existing accounts and outstanding debts. Consolidation loans are yet another option though not always the best solution as further costs could be easily incurred worsening the borrower’s credit score situation. If the pressure to purchase a property is mounting then it is best to try your luck with the cards you have been dealt by fate and hope for the best. Then again leaving things to fate should not be always your best bet unless you have plenty of time on your hands to spare and little on your plate so that your search can continue for some time. However the less time you spend on obtaining quotes from lenders the better and the time limit here is below a month, otherwise a further drop in a score may be a direct result of unnecessarily lengthy search.
Other Factors That Matter
The above described scenario does not necesarily mean to hold true if it comes down to several points lost in the process. Even if your credit score fails to land in the high range, other selection criteria involve also your employment status with attention paid to the job stability in the past several months, which needs to be backed up by pay stubs and tax income returns in the later stage. Unless you are seeking to be preapproved do not feel overly anxious about those requirements early but mark them to keep track once the lender gives you a green light on your prospects for a mortgage loan. The documentation might be somewhat extensive, unsurprisingly, with a purchase of that magnitude.
As seen mortgage loans and credit scores go together like a horse and carriage to paraphrase a known saying. Take good care of it while you still can which in the present economic circumstances may not be an easy thing to do.
Dealing with multiple debts is a challenging task, not only because you need to worry about paying off different lenders within different repayment schedules, but also because of the huge interest rate you have to pay every time you miss your payment. Consolidating all your debts into a single loan may be a good idea actually. The question now is if debt consolidation loans for good credit score are advisable if you are trying to save money to pay your current debt.
Things to Consider
Is debt consolidation really worth it?
Consolidating your multiple debt into a single and seemingly cheaper loan can be expensive actually. Although you may feel you are saving a lot because you need to pay just one lender, there are certain fees you that will be charged by your consolidating lender. Nevertheless, if you are willing to pay such fees just to get the help you need in managing your debt, it may indeed be a good plan to go for it.
How should you treat it?
It is wrong to think that debt consolidation loans can eliminate your outstanding debt. This plan of consolidating your debt could only work once you start paying off your debt. It is therefore very important that you know how to draw up your budget and also how to stick with it. There is definitely no point in consolidating your debt if your credit card debt starts piling up again.
Are secured loans a good choice?
It is possible to consolidate your debt with your home equity. In many cases, this could be the best option, but you must understand the risk of doing so. Should you use your home equity as security for your consolidation loan and miss on your payments, you will definitely risk losing your home. But what could be good about this is that your fear of losing home will surely keep you disciplined in paying your dues.
Where can you find a debt consolidation loan?
There are many different lending institutions that offer these loans. If you are a first rate borrower, it could be to your benefit to get it from your own bank. But if you have a really good credit score, you may as well explore other options that allow for more savings. Try searching online for debt consolidation loans or make use of social networks where you can apply for peer to peer lending.
What if you do not have a good credit score?
Unfortunately, there are not so many options available to borrowers with a poor credit score. You may still qualify for a debt consolidation loan, but you should expect the process to be difficult. And if you get approved, you will surely be charged higher interest rates for the loan. If convenience is what you are after, then you could look for consolidation loans for people with bad credit, which are easy to find but come with very high interest rates.
Have you found yourself in a rough spot lately? Have you been out of luck and found yourself scraping by just to make it till the next payday? If you feel that the only way you can get through this predicament such as this is by getting an online payday loan then you have to think again. Payday loans are very dangerous and even the Consumer Federation of America has started to issue warnings to people who are most likely to take an online loan out.
Online Loans Carry A Big Risk With Them
One main difference with online loans is that everything is done online. From the moment you receive the money in your account, all you will deal with is the computer. That may sound like a good deal because who would want to explain their financial history to a stranger at the bank anyway; but in reality, you really should be talking with someone face to face when it comes to money matters. The big risk you are taking with payday loans is that you have to submit your social security number along with your personal details. Sending your social security number is very risky because when someone gets hold of it, they can basically access the information they need about you. In fact, there is also a possibility that you will be a victim of an identity theft when you send the details to lending companies.
No Credit Check Equals No Legitimate Loans
In the real world, if you fail after your credit check, you are automatically declined from getting a loan. But, see, with online payday loans with no credit check, you will still get your loan application approved. It sounds very promising but this is actually dangerous. A credit check is a way for banks and lending institutions to see if you are creditworthy of getting a loan and being able to pay it back. You should not take it negatively at all because, basically, banks also want you to remain financially healthy that is why they do credit checks. So, imagine if you take out an online loan with no credit check but then realize you cannot afford to make the monthly payments. Had a credit check been run, then there would be a possibility that you will not be facing the problem of trying to find money for payments then.
Knowledge Is Power When It Comes To Payday Loans
You should always arm yourself with knowledge when it comes to instant loans. Studies have revealed that the more people know about how dangerous online payday loans are, the lesser the chance that they will go out and get it. If you have any questions with regards to online loans, it would be best to just go out and speak with a representative from your bank and see what they have to say about them.