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Even though the holiday season is the time when a lot of store sales take place, you should not give yourself an excuse to spend more than you can afford. Good planning is the key to avoid overspending so that you will not face financial woes in January. The following are three tips on how to avoid experiencing a financial hangover as you enter into 2018.
1. Set a Budget and Stick to It
You must set a budget which you will stick to for the holiday gift shopping. It is important to stick to the budget you set and only buy the gifts that you can afford. You can discuss the budget with your spouse or close friend so that both of you can watch each other on the spending.
To stick to your budget, you should avoid using your credit card and use cash to do the shopping. Using your credit card may cause you to become tempted to charge more than the initial budget that you have set. If you decide to use your credit card, make sure you are able to clear off the balance at the deadline.
2. Look for Ways to Save Money
Since you have small budget, you should look for ways to save money on the holiday gifts. Setting a smaller budget on each gift can help you to save money. The thought behind the gift is what people appreciate the most compared to its price. Besides, you can save money by avoiding giving a gift to everyone you know. If you are tight on budget, you can choose to only buy gifts for your closest friends and family members.
To have more money to buy holiday gifts, you can cut down unnecessary personal expenses for example coffee break at restaurant, manicure services, and online streaming subscriptions. You will be surprised at how much you can save by cutting down all your unnecessary expenses.
3. Shop Early for the Holiday Season
It is always best to shop early so that you can give yourself ample time to find the store that sells the gift at the cheapest price. Shopping at the last minute can lead to an impulse shopping spree and you may eventually end up buying a gift that is more expensive that you have planned.
When you shop early, you will probably be able to find something that is cheaper than your budget and save even more. Many Christmas sales are hold in advanced of Christmas. If you wait until the last minute, the items on sale that you want to buy will already be grabbed by someone else. Shopping early allows you to grab the discounted item that is available on sale.
For self-employed borrowers, the employment verification process can be a bit different than those who receive a paycheck. Self-employed borrowers don’t receive the paycheck every month from an employer. Because of this, you have to submit more documentation to prove that their business has a healthy growth. While people on paycheck only submit bank statement and credit report, those who are self-employed need to provide documentation like income tax returns, and much other documentation.
Most lenders would prefer to extend loans to self-employed people who have a Certified Public Accountant (CPA) that take care of their finances. If you have an accountant, they will call your accountant to verify your income and tax returns. They will ask your accountant many questions to verify your income such as how likely your business will continue to be successful. They will ask your accountant to explain about the business profits and all the properties of your business. If you have any other income source, they will also ask your accountant to provide information on it.
It will be best if you establish profits and loss statements in your record keeping to keep track of the expenses and income. Many lenders accept profits and loss statements as income proof. They will check your profits and loss statements and make sure that they are same as the business bank statements.
If you don’t have an accountant that manage your finance, the lender may require you to submit your business license. The business license will be used as a proof of your employment. You have to fill in all the necessary information in the IRS form 4506-T and submit it to the lender.
The IRS form 4506-T is a Request for Transcript Tax Return. With the form, the lender can obtain a copy of your tax return from the Internal Revenue Service (IRS). They will review the tax transcripts they obtain from the IRS and compared it to the tax returns information you provide on the application to make sure that they are precise.
The income tax return gives the lender a full picture of the revenue your business is receiving. Usually, people who are self-employed will have more expenses. They will review your expenses to determine which one is considered as expenses and which one is not considered as expenses. The lender will require you to provide the tax returns of the past 2 years.
It is important that you don’t lie in your application because the lender will carry out a thorough inspection on every employment information that you submit. If you tell lies, your loan will be denied. Even if the lender did not find out, it won’t be right for you to apply for a loan that you don’t have the ability to pay back.
If you prefer to get your loan from a local lender, your best option would be the local credit union. Every state has hundreds of credit unions that offer personal loans. You can find out the full list of credit unions operating in your state by going to the NCUA or MyCreditUnion site. You can also go through the Yellow Pages to find credit unions that are rarely advertise.
The following are the four benefits of a credit union.
1. Lower Interest Rates
One benefit of getting a loan from a credit union is that you will enjoy a lower interest rate and lesser fees. Credit unions are non-for-profit organization that is exempted from tax so they don’t have to charge you a lot of interest fees. The purpose of their existence is to serve the communities in a specific area. You will find that the interest rate that they offer is less than half of the interest rate charged by the bank. The lower interest means that you have more money left for you to do other personal project or invest your business. You will be able to find a few credit unions that offer interest rate starting from as low as 6%- 10%.
2. Better Customer Service
At a credit union, you will get a better customer service because they put the customer in their priority. Credit union is a smaller institution than a bank and you will find that their staff is friendlier toward you than a bank. They are more business friendly and the supporting backbones for many small businesses that need more funds for expansion.
3. Open to Negotiation with Borrowers
Many credit unions are open to negotiation in lowering the loan interest rates to prevent borrowers from turning to the bank to get a loan. The credit union allows you to use a cosigner or your asset as a security deposit to obtain a lower interest rate. If you want to negotiate with a credit union, you should talk to the loan officer and tell him you found other banks offering even lower interest rates. It is important, to be frank to the loan officer as he is going to check and find out about it. Once you and the loan officer have reached an agreement, you can apply for the loan.
4. Easy to Join Membership
To get a loan from a credit union, you need to find one with criteria that you can easily meet. Normally, the credit union membership is open to people of a specific organization or workers that work in a specific company. For example, some credit unions can only be joined by employees of an airline. If you are a relative of a member, you can also become a member automatically and be eligible to access the products that the credit union offers.
Credit card debt consolidation involves taking out a single loan to consolidate all your credit card debts. This means that you now only have to make a single payment at a single deadline for all your credit card debts. Many people have difficulties remembering the deadlines of their credit cards and fail to keep up with their payment as a result.
There is no fixed repayment period for credit cards. Credit card balances can be rolled over from one month to another as long as you make the minimum repayment. It is the reason why most people take decades to clear off their entire credit card debt. There are two main types of debt consolidation loans including secured and unsecured.
Secured loans will require you to use your asset as collateral. It can be risky to use your asset as collateral because you don’t know if you are going to lose your job and not have enough money to pay for the loan. This can result in repossession of the asset. Using an unsecured loan to consolidate your credit card debts is always the best because it will only put your credit in risk.
Unsecured loans for the purpose of consolidating your credit card debts can be obtained via P2P lenders online. Unsecured personal loans used for consolidating the credit card debts usually have higher interest rates than a home equity loan. With P2P loans, there is a fixed repayment period of 2 – 10 years. P2P loans usually have lower interest rates compared to credit card APR interest rates.
The interest rate can be fixed throughout the loan term unlike balance transfer card where the 0% interest offer only lasts for a certain period of time. Choosing a fixed rate P2P loan makes it easier for you to plan for the repayment even though it may be higher than a variable rate loan. If the loan has a variable rate, the interest rate can fluctuate up and down.
Balance credit cards often have a short zero interest period that lasts for less than 2 years. If you can’t pay back your credit card debts in 2 years, the P2P loan will be the best option. Once you got approved for the debt consolidation loan, make sure you are committed to making the repayment on time. You should also stop using your credit cards to avoid wrecking further credit card debts.
When shopping for a P2P or online loan, you should check the interest rates and fees to make sure that it will help you to save money if you take out the loan to consolidate your credit card debts. Some lenders will charge more fees while others will charge lesser fees so it is important to perform comparison.
The CFPB is responsible for regulating various types of short term loans that Americans depend daily such as credit card, payday loans, student loans and home loans. It was set up under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The organization has the power to make rules that they believe will protect the consumers from fraud in regard to loans. These rules aim to ensure that the borrowers don’t get cheated and fully understand the lending terms.
The lenders, on the other hand, are to follow the guidelines set up by the CFPB when approving a loan. Previously, there was not a single agency that has the authority to regulate and set standards for all the banks and other lending institutions in the market. This has led to the economy crisis that occurred in 2008. The aftermath of the 2008 economy crisis still exist in the market.
Consumer Financial Protection Bureau was established to replace the 7 ineffective agencies that used to regulate consumer financial protection. The CFPB regulate all the banks and credit union that had been previously regulated under the Federal government. It also regulate private lending institutions that are not bank.
Non bank lenders pay an important role in offering credit access to millions of consumers in the USA. The purpose of regulating these non bank lenders is to prevent them from using deceptive practices that are unfair on the borrowers. Examples of non bank lenders are payday loans, online lenders and P2P loans. All lenders are subjected to the CFPB to provide clear information. With the standards set by the CFPB, consumers will receive strong protection.
The website of the Consumer Financial Protection Bureau, consumerfinance.gov, was officially launched in February 2011. It starts to accept consumers’ feedback in regards to the promotion fairness and transparency in all kinds of financial products. The CFPB constantly monitor new financial products in the market and identify new risks that are posed to the consumers. It finds out the hazards that consumers will face when applying loans from different lenders.
Up to date, the CFBP has carried out three know before you owe campaigns on three different types of loans including credit scores, mortgages, student loans and credit cards. These three campaigns aim to help consumers understand the agreement of the loan that they are applying. Consumers can visit the CFPB website to read tips on how to make smart decision when obtaining a loan. The financial education provided by CFPB is written in a way that is easier to understand compared to long agreement. It provides answers to frequently asked questions about affording a college. The CFPB has also take the effort to educate consumers about virtual currencies like Bitcoin.
Comparing online installment loans is a necessary step to take if you are planning to take out loan. By comparing the loans, you will know how much is the cost of the loan offered by different lenders. If you don’t perform loan comparison, you might end up signing up a loan that is expensive when you could get the same loan at a lower rate from another lender.
Before shopping for online loans, you must ask yourself what is the loan amount that you want to request. To determine the loan amount you need to borrow, you must calculate exactly how much yu need for your expenses. You should ask yourself if the loan amount you want to borrow is justified and whether it is possible for you to borrow lesser. You also have to ask yourself what type of repayment period you want the loan to have.
You must keep in mind that short repayment period means you will be paying a higher installment every week or month. You can choose a longer repayment period with smaller weekly/monthly installment if you have a lot of expenses to take care of. Every online installment loan has APR interest fee charges. APR, short for annual percentage rate, is a percentage of fee based on the loan amount you borrow.
Using the loan comparison site to compare and sign up for the loans can help you to save a lot of time. The loan comparison site will prompt you to take a survey where you have to answer a series of questions to determine your ability to qualify for the loan. After you answered the survey questions, it will show it will show you a list of loan offers that you are eligible for. There are 3 things to keep in mind when you are comparing loans including credit score requirement, interest rate, and loan period.
It is important to factor in the cost of the loan before applying for it. You must choose the repayment period based on your ability to repay the loan. For example, if you know you need to take 5 years to repay the loan, you should not force yourself choose a 3 year repayment period. Many loans do not charge prepayment penalty so you should try to accumulate as much savings as possible. This will allow you to repay the loan early without facing stress in coping with monthly installments.
The comparison site only provide an overview of the details that you need for comparing the loan offers to see which one is suitable for you. So, if you have any question about the loan, you should call the bank and ask the representative. You must not neglect to read the loan agreement and make sure you fully understand the terms and conditions. You will want to check your credit report for any error that is causing your score to drop prior to shopping online for the loans.
Most creditors have a minimum age requirement of 18 years old when deciding whether to approve the loan application. When you apply a for short term loan, you are required to fill in a loan request form. The loan request form has fields that you need to fill in about your personal information such as age, employment status, salary and etc.
The underwriter will be responsible for reviewing the loan application that you have submitted. Your application will be reviewed under an electronic identification procedure that is run under a credit bureau such as Equifax. During this procedure, the underwriter will compare the information you provide with the credit data that is on file. They will review how other financial institutions perform background check n you and review your payment history.
Normally, the bank will ask you to provide the latest bank statements when you are applying for a short term loan. The bank statement allows the lenders to confirm your full name, physical address, age, salary credits, credit payment, unpaid bills and credit limits. After taking into account all these factors, they will do a calculation to determine whether you are qualified for the loans. The calculation allow them to determine your outstanding debt and whether you are able to afford the loan that you are requesting at the moment. They will make sure that you have sufficient disposable income to repay the loan after paying all your living expenses.
The bank may ask you to provide additional documents if they are unable to verify your data. They may ask you provide clarification on the details that you entered into the application form. If you are below the minimum age requirement of 18 years old, you can obtain a loan with the help of a guarantor that is above 18 years old. This means that the guarantor will be responsible of paying the loan if you are unable to meet the repayment at the deadline.
The reason why creditors do not approve loans for applicants under 18 years old is because young people usually don’t have enough credit history which prevent them from determining their capability in paying back the loan. Normally, the guarantor would be your parents who are working and in employment.
You can apply for the loan as soon as you have found a suitable guarantor. It is best to apply the loan at the same bank where your family do your bank in order to qualify for a low interest rate. Both you and your guarantor have to sign the loan applications and return all the paperwork to the lender. You can easily get approved if your cosigner has a good credit score.
Many of the credit card holders have been missed their credit card payment at least once in their lifetime, and a number of them charged up paying a high interest for those missed payments. Many of them have now struggling with their finances. Therefore with each other finance solution, credit cards can be an aid if took care of well. But, if you fail to make sure the credit card payment, then the results can be troublesome.
How about we experience few of the results of late or non-payment or partial payment of credit card bills.
You will pay a weighty late fee on the off chance that you pay your bill after the due date. This fee will likewise be charged on the off chance that you pay not exactly the base amount payable by the due date. The late fee would be charged by the bank in your next credit card bill. In any case, numerous banks coordinated to charge late fee just if the payment has been due for over three days after the due date.
High interest on outstanding bill payments
Many individuals trust that in the event that they pay the base amount payable, no interest will be charged on their credit card outstanding bill amount. Be that as it may, in actuality, you will pay interest on the outstanding amount beginning from the payment due date. The rate of interest expense can be as high as 45% annualized. Assume, your bill is generated on fourth March (payable by 24th March) for $1000, and your base amount payable is $150. Presently, regardless of the possibility that you pay $150 by 24th March, you would at present be at risk to pay interest on $850, beginning from 25th March till the date on which you repay whatever remains of that amount.
Higher rate of interest
The interest rate on your outstanding bill might likewise increase in the event that you don’t pay the base amount payable by the payment due date. The interest rates on cash withdrawal or purchases might likewise increase on the off chance that you keep on making purchases from credit card in the wake of defaulting on the bill payment.
Withdrawal of interest free period
Your defaults on credit card payments can prompt withdrawal of interest free period from your card. It alludes to the maximum period accessible to clear your credit card dues, contingent upon the day of the transaction and your month to month billing cycle. Interest-free credit period can be anyplace between 20-50 days. This interest-free credit period is the greatest point of preference of using a credit card as the bank is really financing your purchase for that interest-free period. Notwithstanding, the bank might pull back this component in the event that you don’t make full payments on your due date and interest would be charged on your crisp transactions from the resulting billing cycle.
Decrease in credit limit
Continuous fail in credit card payments might decrease your credit limit, which will decrease your spending limit in future.
As should be obvious, the joined impact of these results can greatly influence your financial position and will hit your credit score. So that recovering from this can take a lot of time. In this way, it is best to make sure your credit card payments are paid in full.
Find additional topics for short term loans, credit cards, finances and money savings tips by visiting DirectSignatureLoans.com today.
Saving Money 101 – A Penny Saved Can Help You Go A Long Way Towards Financial Freedom in 2016
Everyone would like to put more money into their savings, whether it be for retirement, a vacation or just so you have some money saved up in case of an unexpected expense like a car or home repair. In theory, it’s an easy thing to do, spend less and save more. In practice, however, it isn’t that simple.
To spend less, the first thing that comes to mind is giving things up that you know you don’t need, but is a little luxury you enjoy like going out to dinner or gourmet coffee each morning. But if you put your mind to it, you can have the best of both worlds. You don’t have to give up those little luxuries, you just have to enjoy them less often. Instead of going out to dinner or lunch five days a week, just cutting it down to three, and brown bagging it two days, you save money. Are you saving a fortune? No, of course not. But you are getting started on saving money. Take a moment to think about how much you spend eating lunch out every day. Most people are spending seven to ten dollars each time, unless they are going to the dollar menu at a fast food joint every day, which is seriously unhealthy. So just brown bagging it twice a week, you can save fourteen to twenty dollars a week. Sounds like nothing, right? Well at the end of the year, that adds up to $1500-$2000 a year, and that is a nice chunk of change.
Another way to save money in small amounts that add up quickly is through utilities you have some control over. Don’t turn your heat above 70 degrees when you are home, turn it down to 65 when you sleep or aren’t home, if you have oil or gas heat. Same thing goes for air conditioning. You don’t need to come home to what feels like a sauna, but you can keep it at 72 degrees when you aren’t home. The important thing about air conditioning is to keep the humidity down, so even if you turn the temperature lower because you want it colder when you are home, that time when you aren’t home, you keep the humidity out and so, it doesn’t feel as hot when you come home. Believe it or not, central air burns a lot more electricity than window units. Even if you shut the vents off in unused rooms, the cool air is still traveling through the ducts to those rooms, so you aren’t really saving electricity. With window units on the other hand, in the rooms you aren’t using or don’t use often, you can turn it off and keep the door closed.
Now if you have electric heat, it’s even easier, because typically each room is its own zone. So there are rooms you can keep the heat off completely and just don’t close the door, which will allow heat from the other rooms in. This is especially true in bathrooms. With electric heat, if you set the thermostat in your bathroom at 70 degrees and close the door, that room is going to be very warm. But if you don’t turn that thermostat on at all (except for the very cold weather where the pipes freezing might be a concern), and leave the door open just half way, the heat from the rest of the house will find its way into the bathroom, so when you go in there it isn’t freezing cold, but let’s face it, you can always turn the thermostat up thirty minutes or so before you are going to shower so the room is nice and warm, but the rest of the time, you simply aren’t spending much time in the bathroom.
Those are just two simple ways you can save small amounts of money without feeling like you are giving up the little luxuries you enjoy. Once you start seeing your savings account growing, chances are you will start thinking of other ways you can make painless cuts to your spending without feeling deprived.
For more money savings, financing a lending tips in 2016 stay tuned to the editorial team from Direct Signature Loans for great money savings tips!