refinance

Loan Strategies I Used to Pay Off My Car

Written by adminAugust 15, 2018

Your car or truck is your pride and joy. You love driving it and you consider it the pearl of the road. Maybe you’ve even named it and treat it well, like a member of the family. You get regular oil changes, take it in for a tune-up, and keep it clean. If you got a loan for your vehicle, you might be locked into a long-term relationship.

This is only part of your responsibility as a car owner. I do the same for my truck to keep it running as long as it can. But something I didn’t like doing was paying for my truck every month. As my budget tightens and I have other bills I need to pay for, I decided to look for ways I can pay off my loan sooner.

Another reason why this is important is to avoid paying more than the vehicle is worth. If you’re paying off a loan, then you’re most likely paying thousands of dollars of extra interest as well. By paying it early, you can save yourself the extra cash and own your vehicle outright.

Also: http://financialhelpers.com/americans-are-now-paying-a-lot-more-in-credit-card-fees/

Here are the 5 strategies I used to pay off my truck loan sooner.

1) Instead of Making One Payment Every Month, I Made Two

This is sort of a brilliant trick. Most loaners will allow you to make as many payments as you want. Instead of paying only once per month, pay half in the middle of the month. By doing this, you’ll make 26 half-payments instead of 12 regular payments, which means you’ll end up paying 13 full payments overall. That’s squeezing in an entire extra month of payments.

To look at it another way, rather than paying off the loan during the 60 months you planned, you can be finished with it in 54 months just by making two half-payments per month.

2) I Rounded Up When Making Payments

When you pay your monthly bill (or bi-monthly if you use the step above), a large portion of it goes towards interest. Anything above that threshold is payment towards your vehicle. If you decide to round up to the nearest $50 increment, you can cut a 60-month loan down to 47 months and save over $500 in interest.

For example, if your monthly bill is $208, but you decide to pay $250, that extra $42 goes directly towards your vehicle, not the interest, meaning you can pay off the loan faster and save on the interest you would’ve had to pay if you just paid the minimum. It would add up to an extra $512 paid towards the loan in a year.

3) I Made Several Larger Payments

This is an obvious point, but it certainly helps to make an additional larger payment or two if you can afford it. You might want to spend that money on something else, but the more you can put into it during the year, the faster you’ll pay off the loan and the less you’ll thrown down in interest.

4) I Never Missed a Payment

This is a big one. Since getting a truck loan, my credit score has gone up significantly. One of the major reasons for that is I have 100% on-time payments. If you do miss a payment, it can reflect negatively on your credit score.

While some lenders do allow for a missed payment a couple times a year (hey, stuff happens), missing that payment will just add more interest and take you longer to pay it off. Do your diligence. If you have to cut back on other bills, do it. Once you’re clear and free of the loan, you’ll have a lot more money in your pocket.

5) I Was Able to Refinance

I mentioned in the point above that making on-time payments significantly improved my credit score. When you get a loan, the interest rate is based on that score, as it offers a picture to the lender about your ability to pay it back. If your score goes up after a decent amount of time of regular payments, you’re more trustworthy.

You might be able to get lower monthly payments, less interest, and a shorter term by refinancing. If you can’t get all three, then it might not be worth it. Even if you can get lower payments, still paying the amount you were before will only help you pay it off that much quicker.

For me, these steps were part of a greater strategy. I had a poor credit score with little history. By showing some fiscal responsibility, I was able to improve my score and pay off my vehicle in a lot shorter of a time. It’s small steps like this that can get you closer to true financial freedom.

Written by adminJuly 3, 2018

Student Loan Consolidation

Michael S. Shares His Story with Financial Helpers:

Like so many other bright-eyed American teenagers, I graduated high school full of hopes and dreams for the future.

I was told the same story repeatedly. “Mike, if you want to be something, then you need to get a degree.” So, that’s what I did. I packed my bags, kissed my mom on the cheek, and headed off to architecture school.

I had a passion for art and felt I was doing myself a favor by channeling my modest skill into a lifelong career. I knew I wasn’t going to be the next Picasso, so architecture might be the next best thing. It pays well and housing market was booming!

Well, things change. I graduated from Lawrence Tech in the height of the housing crisis. No one was building, which meant no one was hiring fresh-faced architects right out of college who didn’t have a speck of work experience.

They tell you how easy it will be to get a job after your graduate, but they only do that to get you in the door. I must admit, I was growing increasingly frustrated and even downright angry.

I worked SO hard for my degree, putting in long hours and promising myself that life would be great once I graduated, but those promises didn’t line up with reality.

I tried to do it on my own, but had to ask my parents if I could move back in. I got a job at a local sub shop because they were the only place looking for help. It was incredibly disheartening.

Here I am, like so many other graduates, with a bachelor’s degree in architecture, working in a sub shop for minimum wage, and that’s not the worst part.

At that time, I had over $100,000 worth of student debt, which meant that most of my paycheck went towards that. There’s no way I could afford to live on my own and pay this debt, so home is where I stayed.

Eventually, things did get a little better. I had some work experience under my belt, was promoted to manager, which bumped my pay. I then moved on to a decent factory job. It wasn’t architecture, but I felt I was moving closer to reaching my goals.

Still, the debt was killer. It hung over me like a black cloud and kept me from being able to make important life decisions. Should I buy that new car? Can I afford to move out of my parent’s place? If I met a girl, would she understand my situation?

One day, I was browsing the net and came across Financial Helpers. I read an article about refinancing your student loans to get a lower overall payment.

I was floored! This is something the lenders won’t tell you about because they want you to pay the loan in full. The problem is, lenders don’t tend to trust kids with no job and no work experience, so they’ll pump up the rates to the maximum level.

When you graduate and are doing fairly well, that can change the equation. You suddenly become more trustworthy and can negotiate a better deal. That better deal means you’ll end up paying LESS interest and lower payments over the lifetime of your loan.

Not only did I reduce my monthly payment by $80/month, I was able to save $30,000 and pay off my loans much quicker. This is exactly what I needed to get on with my life, move out of my parent’s home, and let them retire in peace.

$30,000 is a lot of money. It’s nearly a full year’s salary. I can’t tell you how thankful I am to Financial Helpers and their ability to help me solve my student debt crisis.

I’m now married and I own a home, but I can’t help but feel bad for the current and future generations of kids who are going to be put through the same ordeal I went through, except for them, it will continue to get worse.

College is becoming increasingly expensive and student loan debt is skyrocketing. No one should have to graduate college with that huge burden on their shoulders.

My advice to students out there: Keep your head up and do your best. There is help out there. Sites like Financial Helpers are there to provide you with options you didn’t know you had and can be lifesavers to everyday people like me.

Written by adminOctober 26, 2017

Credit & Debt Settlement

Saving money can seem nearly impossible when you don’t know what steps to take. Start with these 10 ideas to start spending less every month.

1. Consolidate Your Debt

If you have several types of debt, you can consolidate it into one account with a lower interest rate. Once you consolidate your loans, you only have to make one easy payment per month. As long as you get a lower interest rate, you could save hundreds of dollars a year.

2. Refinance Your Car Loan

Car loans don’t seem expensive when you get them. Those monthly payments add up quickly, though.
Talk to several banks in your area about refinancing your car loan. If one of them gives you a lower interest rate, then you can make your monthly payments more affordable. Even a few dollars each month will make a difference.

3. Find Cheaper Car Insurance

Take a few minutes to search for cheaper car insurance. Call your insurance company to ask them about a lower rate. You may have to increase your deductible, but it’s worth it as long as you don’t have an accident.
You should also get quotes from other insurance companies. You never know what kind of deals you’re missing until you get offers from several companies.

4. Consolidate Student Loans Into a Lower Monthly Payment

Repaying student loans can make it difficult for graduates to start saving money. You can often lower your monthly payment by consolidating your student loans.
When you consolidate your student loans, you could lock in a lower interest rate. Plus, you’ll only have to make one payment per month instead of worrying about loans from several lenders.

5. Use a Credit Repair Program to Get Lower Interest Rates

It’s hard to repair bad credit on your own. Consider talking to a credit repair program that will negotiate lower rates on your credit cards, loans, financed purchases and other debts. It helps to have a pro on your side.

6. Look for Cheaper Health Insurance

You can also save money by getting cheaper health insurance. Try looking for plans that don’t cover as many medical services. You can also increase your deductible to lower your monthly payment.
As long as you don’t get really sick or hurt, you won’t even notice the higher deductible.

7. Buy a New Car With Lower Payments

Sell or trade in your current car so you can get a vehicle with lower monthly payments. You’ll need to research several cars to make sure you save money, but it’s worth it. Plus, driving a new car means that you don’t have to pay a mechanic to fix mechanical problems that happen in older vehicles.

8. Get a Payday Loan Advance

If you can’t afford to pay your bills one month, get a payday loan instead of letting your credit report take a hit. Make sure you repay the lender as soon as possible, though, to avoid extra charges.

9. Find a New Credit Card With a Lower Interest Rate

It pays to shop around for a new credit card that gives you a lower interest rate. You’ll see a big difference in your monthly bill even if you only knock off a few percentage points.
Look for cards that will give you an interest-free trial period. That way, you can start paying off your debt without worrying about interest.

10. Take Your Lunch to Work

Grabbing lunch at a restaurant gives you a break from the workday, but it also costs a lot of money. Eating out for lunch costs about $11, so you can easily spend $50 from Monday to Friday. Taking your lunch only costs about $6.50.
Pack your lunch everyday to save about $90 a month.
It doesn’t take a lot of effort to save money when you know how to do it right. With these tips, you could start spending less and saving more!!

Written by adminOctober 16, 2017

Saving

Getting into debt seems like it is something that is easy to do. When you try to get out of debt, that is when the real work starts. Here are 10 ideas to help you reduce your expenses when it is time to take control of your finances.

1. Consolidate your debt into a lower monthly payment

Consolidating your debts into a lower monthly payment can save you money. Instead of having to try to pay multiple payments, everything that you include in the consolidated payment will be paid with one convenient monthly payment. In most cases, this can help you score a lower interest rate than what you would pay on individual bills.

2. Refinance your car loan

A refinanced car loan starts out at a lower amount than a new car loan. This can automatically lower your monthly payments, especially if you are able to extend the life of the loan some.

3. Lower your auto insurance payment

Take a look at the car insurance payment you are making. You might be able to increase the deductible or decrease the coverage to lower the payments. Shopping around for car insurance might also be beneficial.

4. Consolidate your student loans into a lower monthly payment

If you have multiple student loans, you can likely get them all transferred into one monthly payment. Some federal repayment plans are based on your income so this might help you out if you are at a lower income rate.

5. Enter into a credit repair program

A credit repair program is a good idea if you have already missed some payments. These programs can often help you to get a lower interest rate, especially if your debt is at a high-interest rate, such as 25 percent or higher. You should make sure that you are working with is a legitimate company by checking with the Better Business Bureau and other agencies.

6. Lower your health insurance costs

If you don’t have any health issues, lowering your health insurance costs can help you to save money each month. Get a policy that has a higher deductible or one that has only basic services covered. This isn’t a good idea if you have health issues since you might end up with uncontrollable medical debt.

7. Buy a new car

Car repair bills can get expensive. If you are spending more on repair bills than you care to admit, it might be time to get a new car. This might seem more expensive at first; however, you might find that a car payment is less expensive. Plus, you will have a more reliable way to get to work and run errands.

8. Get a payday loan advance

A payday loan should be one of the last things that you consider if you need to come up with money fast. These loans often come at a higher interest rate, so carefully consider your other options. Of course, if you have an emergency, this might be a feasible option for quick cash if you know you’ll be able to repay it quickly.

9. Get a new credit card with a lower interest rate

A new credit card might seem counterproductive when you are trying to reduce your monthly bills, but it really isn’t. Many new credit cards have a 0-percent interest rate during the introductory period or for balance transfers. This fact alone might be able to save you some serious cash each month.

10. Reduce your employment costs

They say you have to spend money to make money, but you shouldn’t have high employment costs when you are working for someone else. Reducing the costs of your job can entail bringing your lunch instead of eating out and hitting up second-hand clothing stores for things to wear. If you need transportation to work, see if a co-worker will get you instead of shelling out money for transportation costs.

Written by adminApril 24, 2017

Credit & Debt Settlement

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My husband was forced to face his credit barriers when his car transmission died out of warrantee. When the car salesman pulled his credit to see if he could get approved for a lease, he shook his head in shame. It showed a score in the low 500s, a high debt to credit ratio, and poor payment history because of medical bill charge-offs from when his appendix ruptured.

We needed better credit, which I thought meant waiting 7-10 years for negative items to be removed. As it turned out, fixing our credit was painless because there are services out there, like CreditRepair.com, that are meant for people like us. CreditRepair.com works directly with the credit bureaus and your creditors to help you get unfair items removed from your report and get you back on track for a clean financial future. They understand that life can get out of hand, and that sometimes, trustworthy candidates can get screwed out of good credit scores in the process. Plus, they do all the legwork for you.

I signed up for CreditRepair.com just two months ago. On my consultation call, Skye, my personal CreditRepair.com representative, worked with me through the process, answering my questions with patience and knowledge. She made me feel confident that together we could accomplish everything I’d sought out to achieve. She explained that for most items she saw on my report, they would send their lawyerly “challenge letters”, to which creditors have to respond or refute, or the items get removed. CreditRepair.com has methods of getting creditors to exercise leniency as well. For example, if you have issues with high student loans, bankruptcy, an expensive divorce, or high medical bills, Credit Repair will alert creditors of this as they did when they mentioned my outstanding student loans in challenge letters so that creditors would potentially give me more leeway.

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Written by adminJanuary 4, 2017

Mortgage , Refinance

The decision to refinance can end up costing you thousands in closing costs and other fees. If you time the rate and term refinance process right, however, you can actually end up improving your financial situation, despite these costs. When you refinance your home loan, your lender generates a brand new agreement, which pays off the balance of your current loan. The new mortgage agreement comes with updated terms, interest rates and payoff dates. Tactical use of rate and term refinancing allows you to improve your potential return on investment without depleting your resources. Here are three beneficial times to choose this refinance option.

Upon Reaching 78% Loan To Value Ratio

If you purchased your home without putting 20% down, your monthly mortgage payment includes private mortgage insurance, or PMI, which can add thousands to the final cost of your home. The PMI funds do not apply to your principal balance or interest costs; it just protects the lender in case of loan default. You are only responsible for paying PMI until your principal balance hits 78%.

You can speed up the PMI removal by refinancing your home loan once you have built up some equity. You can work with a professional to secure an appraisal and determine if your home’s current value has grown enough to eliminate PMI and secure you improved payment rates. If not, you may want to wait until your PMI payments drop off after the 78% mark. For government backed loans, however, you have no choice but to refinance with a different lender to eliminate PMI costs.

At The End Of Your Adjustable Rate Mortgage Term

An adjustable rate loan allows you to make reduced payments at first in anticipation of financial growth in the future. Upon reaching the end of the initial term limits, your monthly mortgage payment could jump hundreds of dollars. If your financial situation has not improved enough by that time, you could struggle to keep your loan payments current, especially when faced with property maintenance and repair costs.

If you refinance at the end of your adjustable rate mortgage term, you could obtain a fixed rate loan with financially viable payment amounts. With the fixed rate option, your payment terms remain static, which eliminates the risk of high recalculation amounts.

After Significant Credit And Income Improvements

If made great strides in your career advancement efforts, you may have experienced income and credit improvements since you first obtained your home loan. These improvements can help you secure better loan terms through a full refinance of your loan. You may qualify for reduced interest rates that drop your payoff amount significantly. As your total loan balance decreases, so do your monthly payments. As a result, you can start paying additional funds toward your principal balance to pay off your home loan even faster.

Choosing Between The Home Loan Refinance Options

Although rate and term refinancing can help improve your financial situation, the returns can take a long time to add up. You can predict the turnaround time by calculating your monthly and total savings, and then comparing them to the costs of the refinance. If you find yourself in a dire need for money right now, you can elect to apply for a cash out refinance instead. With the cash out refinance, you can use the funds to repair or renovate your home, pay down debt or finance other expenses. To determine the best refinance option for your situation, obtain an online quote and compare the results with your expectations. The quote will help you determine if you will benefit financially from the rate and term or cash out refinance options.