The Importance of Having an Emergency Fund
No one has to tell you that emergencies come. You’ve probably experienced a few of them yourself. What you might not have known is that you should always have some money set aside to cover the expense of an emergency. This type of savings accounts is called an emergency fund. It’s a stash of money that you use, well, for emergencies. You don’t buy birthday gifts with it. You don’t use it to make renovations to your home. You only touch it in true emergencies.
“But I have a credit card that I can use for emergencies,” you might say. Putting emergencies on a credit card can get expensive, especially if you have a high interest rate on the credit card and you only make minimum payments on the balance. Not only is credit card debt expensive, it could affect your credit score since your debt level is 30% of your score calculation.
What do you do if you don’t have a credit card you could use to fund the emergency?
Why Have an Emergency Fund An emergency fund is the best, and least expensive, option to protect your financial health from unexpected disasters. If you lose your job, you can rely on your emergency fund to help meet your living expenses until you get a new job. Severance packages and even government unemployment benefits aren’t always enough to pay your rent/mortgage, utilities, car note, and other monthly expenses. They’re not guaranteed either. Having some money stashed away in a savings account will be your umbrella on a rainy day.
How Much Should You Save While most experts agree that you should have an emergency fund, they don’t agree on the amount. Some say $1,000. Others say up to a year’s worth of a salary. The truth is the amount is different for people in different situations. Generally, three to six months worth of living expenses would be a great emergency fund.
How to Build an Emergency Fund The simplest way to build an emergency fund is to open up a separate savings account and start putting money in it every month. An online savings account is a good idea since you can’t directly access the money, but can transfer it when you need it. Get an account that earns interest so the money isn’t just sitting there. Don’t store your emergency fund in an account that penalizes you for withdrawals, e.g. a certificate of deposit (CD) or 401(K).
Before you start making deposits to your emergency fund, make sure the money you’re stashing away isn’t money you should be sending to the electric company. Review your monthly budget to see how much you can actually afford contribute to an emergency fund each month. Then, once you’ve come up with an amount, adjust your budget to reflect the decrease in spending money, and open up your savings account. If your company allows it, have part of your paycheck direct deposited into your emergency fund. That way you never “see” the money and won’t feel like you’re parting with it.
Once you’ve built your emergency fund to a level you feel good about, you can start putting the money you were saving toward something else, like paying off a credit card bill. If you spend from your emergency fund, be sure to put the money back so you’ll have enough for a future emergency.…Continue Reading...
Consumers Reduce Reliance on Credit
In the face of high unemployment and slow market growth, consumers remain more cautious of their spending, and for the first time in almost a year, consumer credit use is declining.
The Federal Reserve found that over the last 11 months, consumer credit has declined 1.5 percent, specifically among credit cardholders. This drop in credit card spending offset marginal growth in student and auto lending.
High unemployment continues to weigh down spending and spur demand for student loans as skill-seeking workers wish to improve their prospects with higher education in this increasingly competitive job economy.
According to economist Roderick Surrett, the U.S. economy is maintaining market growth of only 2 percent, a level that will keep the nation out of recession, but it isn’t enough to encourage job growth.
Despite positive trends in consumer credit management including decreasing mortgage debt and healthy spending, this slow growth is expected to continue.
Actionable Credit Tips for Consumers
Although consumer debt is decreasing, the Federal Reserve reports the national consumer debt total remains $2.7 trillion, with the average household debt equaling more than $50,000.
To reign in your credit, and reduce your reliance on credit and borrowing, consider changing the way you approach your finances. If the recession taught us anything, it’s that crisis can strike at any time, and you need to be prepared.
No longer can consumers afford to spend beyond their means and place their excess expenses on credit cards with the hope of salvation somewhere in the future. If you can’t afford to pay down your credit card every month, cut out unnecessary costs to get ahead of the debt, and quit chasing it.
Prioritize your payment obligations to avoid falling behind on any payments. Also, avoid taking on any new debts, especially if you’re overworked trying to keep up with current debts.
If you fall behind on some of your financial obligations, and find yourself looking toward a personal loan as your only option, consider holding off until you arrange your funds and have more available.
There may be little you can do about the sluggish economy all on your own, but you can make the best out of what you’re given.…Continue Reading...
Why SSN is required to borrow mortgage bank loans with no credit check?
The social security number (SSN) is issued by the Social Security Administration to all US citizen and primary and temporary citizens. It consists of nine digits. SSN is used to track each individual’s accounts in the US in an attempt to secure the society from any potential frauds and embezzlements.
Social Security Number must be issued in order to fulfill the requirements of a statute. SSN must be provided whenever any loan is sought or financial transaction is conducted either with banks or other financial lenders.
Uses of SSN
• Every individual is issued a unique SSN, so that in case of any grievance that particular number may be linked to the particular SSN holder, serving the purpose of personal identification document.
• Employers must obtain and present their Social Security Number for taxation purposes.
• According to Federal law, the private businesses must collect their SSN when Internal Revenue Service (IRS) required to be notified about all the business and financial transactions.
Why SSN is required to receive online payday loans no credit check?
Issuing loans to clients leaves the banks with several concerns including if the borrower will pay the interest payments and the principal amount.
To cater its concerns, the bank requires important information which also includes the social security number. There are a number of reasons for which the SSN number is required by the bank before it sanctions the loan amount. Following are discussed the foremost reasons:
Social security number serves as an identification document. Although, fraud could be the last thing on mind of the borrower but to keep themselves on the safe side, banks aim to ask for all the possible identification modes. The banks would verify the social security number with Social Security Administration whether it really belongs to the person requesting loan.
Assessing Credit History:
The credit history of the borrower greatly concerns the bank before they issue a mortgage loan or other debts. In order to assess the credit report from credit reporting agencies like Experian, TransUnion or Equifax, the bank uses social security number of the borrower.
Deducting the mortgage interest:
The mortgage interest payments are deductible expenses from the taxable income. Thus, in order to verify the mortgage interest paid, the banks will have to fill in the SSN on the form used for calculating taxable income.
Borrowing 24 hour loans no credit check in case of no SSN
In case the borrower does not have a social security number, then he may opt for another type of mortgage loan that uses the person’s Individual Tax Identification Number (ITIN). This number is assigned by IRS in order to facilitate those people who do not hold a social security number.
The ITIN is also a nine digit number similar to social security number. The banks may or may not use ITIN to issue loans, so it is intelligent to search those banks that accept ITIN to grant mortgage loans. In around 30 cities in US, the Citibank with the help of ACORN issues the ITIN mortgage loans that accept ITIN instead of SSN.…Continue Reading...
Ideal student loan consolidation deals
Best student loan consolidations are available to those who need relief from student loan debt. Some very good packages are present from which a consumer can choose any one. Creditors lower the interest rates when consolidation of student loan is done.
An ideal student loan consolidation plan shall consist of low interest monthly repayments. The repayments for the loan shall be based upon the consumer`s ability to repay the loan in time.
Student Loan Consolidation
In order to find the best solution to loan repayment, extensive research is necessary. The best student loan consolidation can be easily found by researching internet. There are many websites which provide all the details of student loan consolidation. Through internet, information on any topic can be searched for and self-education can be done. It is advised to consumers that different search-engines are used to obtain the best results on searching.
Research on Internet for Best Student Loan Consolidation
After entering a keyword regarding best student loan consolidation deals, the most relevant and popular results shall be displayed in the beginning. These websites can be reviewed one by one and information can be read easily. The same information can also be compared which may help in choosing the best deal amongst many.
Lower Interest Rates & Monthly Repayments
Consumers are advised to look for lowest interest rates and easy repayment options while searching. Consumers must always keep in mind that information on internet is always genuine.student loan
Some data may be fraudulent and thus, confirming the sources before trusting them is important.Only reputable organizations may be chosen to work with.
Save Money on Extra Interest
If a long time is allotted to repayments, then it is to keep in mind that total interest shall also be increased. Consumers must make extra monthly repayments whenever it is possible. In this way, the extra interest can be saved. Consumers must read the terms of the contract and ensure that this option is always open without penalty.
Confirm Sources – Work With a Known Lender
Borrowers need to enquire the lender regarding his source of money and also confirm his/her company`s reliability. Consumers who have already worked with a student loan consolidation company will feel comfort while working with the same company again. A lender who is trustworthy and known can offer the best student loan consolidation deals. Working with a known lender is always easier then working with an unknown lender.
Choose the Best Student Loan Consolidation Deal
Lenders who have knowledge regarding their client shall provide with the best of deals. More consolidation options and lenient terms of repayment shall help consumer in paying back. The best student loan consolidation program will provide a cost effective and beneficial package for reducing debt altogether.
Save money. Drop cable. Libraries have more videos than you think
You can save $50 to $100 per month on cable TV bills by dropping the service and using your local library’s collection to supplement the shows you can get through your antennae and the internet. Take it from an insider, libraries probably have more video offerings than you thought.
I live in a suburb of Denver which has three medium-sized libraries within driving distance. A quick search of their catalogs shows that one has 17,830 dvd’s, another has 21,510, and the third has 7,300. That’s 45,640 videos that I am able to check out! I can get materials at any of these libraries because our state participates in a resource-sharing agreement, whereby the libraries agree to allow residents of other districts access to their materials. I did need to sign up and get a free account with each one. Check with your local library to see if they have a cooperative agreement with nearby libraries. Most of them do.
You may be thinking “Last time I was at the library, all they had was out-of-date movies, PBS shows, and instructional videos on how to improve your golf swing.” After working in various public libraries for the last fifteen years, I’ll let you in on a little-known fact: most libraries do have a lot of good, up-to-date stuff. You just are seeing it on the shelves because it’s all checked out.
So that means you’re out of luck, right? Someone always comes and gets the good stuff before you get there. Here’s what you can do: place holds on the things you want to see. You simply find the title you want in the catalog (you can find most library catalogs online) and click on some sort of “hold” button. You’ll be placed in a queue of people, and each time the item gets checked back in, it will go out to the next person, and you’ll move up higher in the queue. When you’re at the top and the item is ready for you, the library will notify you that it’s ready for you to pick up. Voila! You got your video with just one quick stop by the library.
It’s certainly worth taking a look at your library’s online catalog. In 2010, we’ve been able to get new movies like Date Night, The Hangover, and the Diary of a Wimpy Kid Movie. We checked out bunches of Barney, The Wiggles, Arthur and Magic School Bus for the little ones. My daughter likes the old screwball sitcoms like I Love Lucy and Get Smart. My husband and I are looking forward to catching some of the premium channel series we missed, like The Wire, Deadwood, and Mad Men.
Sometimes we need to be a little patient while we wait our turn, but we can use the time to plan what we’re going to do with the extra $1,000 a year we save on cable costs.…Continue Reading...
Standards for frugal lifestyles
Here are a few ideas for implementing a more balanced spending lifestyle:
Impulse spending and mindless shopping: Stop having shopping be your sport, social life or exercise regimen. Have a “buy someday” list handy at all times. You can keep it on your computer or handwrite it, bulletin board, refrigerator, etc. but create this list in a way that you and/or your family will continue to keep up on it. Always keep updating it as it does need to be current. Then meet once a week or once a month and decide then, (not when you are in front of the infomercial at 3:00 a.m.) what on this list is legitimate and needs to be purchased or what can wait or what will never be. If you have already bought some items take them off, if you know in your heart of hearts that you will never ever really buy the pink and blue Elvis costume including the authentic wig for $15,000.00 put that on another list maybe. This list helps tell your brain that you are doing something; taking action and having control to get the fix you need when you feel the “need” for impulsive purchasing. You will know at the time of reviewing the list, what your $ resources are and your challenge is to try to match up priorities now when you are calmly looking at the facts, not in the middle of a mall full of flesh eating zombies and discounted Christmas decorations. Most things will wind up moving down the priority list pretty quickly, and that is a good thing, it shows you how quickly you can really do without most of your impulsive re-action shopping.
Eating out in restaurants: There can be great compromises in this category because you have more control over this decision than you think. Even though it seems more convenient to meet friends at some pricey restaurant sometimes, you could have easily either all brought a dish, or grabbed deli food and went to a park. Be smart about what really is a good deal to eat at home or is it better to order out. Macaroni and cheese can be a little step up when in a restaurant, but not $15.00 worth, especially ala-carte. Also, drinks and extras; there have been times when just the drinks with alcohol or not have been over $12.00 of only one persons bill. Go out and have fun, just be smart about it, because it can get very expensive very quickly.
Fees, fees and more fees: It does not matter if you call it points, or interest or late fees or insurance or delivery fees or transaction fees or human being helped me fees; ITS ALL MONEY, your money! Don’t get caught up in the verbiage. Be realistic as to what you are paying to whom. There is never a good reason to save money at 1.25% when you have a credit card balance eating your life away with either high interest or low interest and high fees. Same goes with every company that you deal with, don’t go with them because they are telling you it’s a better deal then they had last year, who cares, you do the research always find a better deal, always stop and take the time to evaluate the “real numbers”.
So there is some food for thought, each person can come up with their own brand of trying to contain any useless spending. The key is to take control yourself before it controls you.…Continue Reading...
Credit card debt relief – important advice before you sign anything
Credit card debt relief is of vital importance if you find yourself in a vicious cycle of increasing debts at the end of every month. Sometimes things can be so overwhelming, you think you will never find your way out of debt. Despite the difficulties involved, there are many folks who successfully get out from under their debt and it’s possible for you, too. Don’t allow it get you down. It may sound corny, but hope is a very important ingredient for getting credit card debt relief.
First, do your homework and research all your options for credit card debt relief that are out there. Since it’s difficult to figure out where to turn, doing this can feel overwhelming. There are many companies and agencies in the market who offer credit card debt relief in one way or another. Some even offer credit card loan services for free. But beware of working with companies that promise a solution that sounds too easy. Tempting as some of their offers may be, you need to be objective or you may end up with an even worse debt problem.
Credit card debt relief is available for varied situations from an array of resources and services. Your own particular financial situation will determine which is right for you. Consumer credit counseling is commonly one of the first debt relief services people consider. If you go to one of these agencies, ask lots of questions and be very cautious. Some are non-profit agencies that can help you in ways you never knew existed. But while some agencies offer debt relief on a non-profit basis, others charge an astronomical fee for their services. Make sure you do your homework before choosing a consumer credit counseling agency, because it isn’t always easy to tell which is which. If you don’t, your dreams of attaining credit card debt relief could become a colossal nightmare.
A debt consolidation loan can be the answer to credit card debt relief for lots of people. If you have collateral such as home equity, then this isn’t difficult. Otherwise, you’ll be considered an extremely risky loan prospect. If you manage to get a debt consolidation loan in that situation, you are likely to also be stuck with very high interest rates. Stay alert, and evaluate credit card debt relief promises very critically so you don’t get taken advantage of.
Don’t believe people who claim that the methods they offer for credit card debt relief are simple, effortless, or easy. You need to be aware of shady business enterprises that prey on those needing assistance, and who will leave you even worse off than you were. Slow down and take your time before you choose your debt relief solution. Before you commit to any particular debt relief solution, accumulate all the relevant information possible. Your best chance of attaining genuine credit card debt relief is by being prepared with the right information, and a healthy dose of hope.…Continue Reading...