Excuse 1 – I Do Not Make Enough Income To Save Money
One of the most common reasons cited for a lack of savings is that the person does not feel like they make enough money to be able to divert some of it to savings. These people generally live paycheck to paycheck, with most or all of their income designated to be spent before they even receive their paycheck. In nearly all of these cases, the person is spending all their income because they are living above their means and trying to ensure that they are living the same type of lifestyle as their friends or neighbors, even though they do not have the income to support it.
To ensure your future financial security, you must save a portion of your income somewhere that is safe and can be easily accessed. Regardless of income, anyone can save 5% of their pay for future emergency needs. A good way to accomplish this is to create a budget that includes all of your necessary expenses as well as the amount you intend to save each month. Creating a budget will help you control your spending as well as reveal areas where spending can be cut to save more money.
Excuse 2 – I Have Credit Cards To Fall Back On
Other people make the mistake of treating their credit cards as if they are emergency funds, using them to pay for important purchases that they would not have been able to afford otherwise. While credit cards can be helpful in these situations, it is usually very difficult for the person to pay off the balance of the credit card quickly, leading to months of fees and finance charges added to the balance of the account. If someone without savings is hit with several difficult financial issues in succession, the balance of their credit card account can rise rapidly and quickly become unmanageable. Saving money in a fee-free bank account allows you to handle these financial issues without incurring additional costs.
Offering To Create A New Credit File
One prevalent type of credit repair scam has the scammers offering to create a new credit file for the consumer, divorced of their previous credit problems. While offered as a chance for the consumer to make a new start and rebuild their credit, it often leads to criminal charges against the consumer that paid for the service. That is because the new credit file is often associated with an employee identification number obtained from the IRS that is used in place of the individual’s social security number. In essence, the consumer is creating a new, fraudulent identity, which is against the law across the country. Thousands of people become victims of this type of credit repair scam every year.
Offering To Remove Negative Information In Your Credit History
In most cases, a company that tells a consumer that they can remove negative information from their credit history to increase their credit score is lying. Factual negative information on a credit report cannot be removed by a call from a random company. The only thing that can remove factual information from your credit report is the passage of time, typically in 7 or 10 years depending on the type of negative information reported. At most, these companies can challenge the negative information with the credit bureaus and force your creditors to provide documentation of the default, but if that documentation is provided, the negative information will remain.
Challenging negative information on a credit report is something that you can do yourself without paying a company to do it for you. Obtain free copies of your credit reports from www.annualcreditreport.com and review the information on them to ensure that everything is correct. If you notice anything on them that is wrong, notify the credit monitoring company that issued the credit report with the error in writing to inform them of the incorrect information. They will open an inquiry and if you are found to be correct, the negative information will be removed from your credit report.
[Guest author today]
With temptation surrounding you when you walk out the door, from the newest handheld gadgets to sleek vehicles, it’s easy to waste money each day. Most people don’t have access to financial classes or education when they’re growing up, leaving them open to poor spending habits as adults. Educating your wallet starts at home with smart money-spending ideas and intelligent investments to better your financial situation.
Home Security And Automation
For the average citizen, a home can be filled with many gadgets, from flat screen televisions to laptop computers. To protect your home assets, consider a home security system. A basic security configuration allows you to secure the property with live monitoring from a remote company. You can even automate the system, if desired. Control locks, air conditioning and even appliances with your smartphone or tablet. Cameras remotely connected to your device also allow you to monitor your own property for asset protection. You’ll feel more comfortable with your financial situation with a security system in place.
Leave Credit Cards At Home
Hide your credit cards in a safe, or other secure area, in the home to avoid excessive spending. Credit has ruined some people’s financial lives because of ample funds available for almost any transaction. Ideally, you want to spend less than you make. Credit cards only give you an inflated sense of financial stability. To shore up your credit history, however, you must use the cards. Try to charge small amounts and pay them off at the end of the month. You’ll avoid interest charges that add up and decrease your financial strength.
Invest In Your Home
Another way to strengthen your financial situation is through home upgrades. Unlike a car, your home eventually gives you a solid return on your investment. Depreciation is typically minimal, especially over many years. Add cost-effective upgrades that don’t break the bank. Add a new front door and plumbing fixtures. With updated faucets, in particular, you modernize bathrooms and kitchens without a huge remodeling cost. The new front door invites buyers in while creating an innovative aesthetic for your curb appeal.
Budgeting For Emergencies
You could follow all the savings and spending rules in the book, but a personal emergency can send your financial situation into a free-fall. To avoid financial disaster, stock at least 6 to 12 months of income savings away. If a medical emergency arises, you have enough money to pay for basic monthly expenses without resorting to expensive loans or credit card usage. Even look into supplemental insurance to cover expenses other insurance does not, including gasoline to treatment centers and home medical supplies. Once you are back to work, you can save more money for the next emergency.
Insure Valuable Assets
When you buy homeowner’s insurance, you are mainly insuring the structure, not the items inside. In fact, high-end items, such as fine artwork, should have their own insurance policy. If you ever have a robbery or natural disaster destroying the piece, you have financial stability to replace the item with insurance funds. Securing your financial position takes some investment to avoid complete loss, especially if you collect many expensive items.
Better your financial position by investing, securing and insuring your personal items and home. You’ll find peace of mind with almost any situation. A strong financial background keeps your family living comfortably in difficult times.
Why People Give Up Their Car Leases
There are many reasons why someone may decide to let someone else assume their car lease. They may not like the car or the way it handles and want to get something else. They may have lost their job and can no longer afford the lease payments and other costs of owning a car. Another reason may be that they will be unable to drive the car for an extended period of time and see no reason to pay for the car if they cannot use it. Having someone else assume their car lease allows them to correct their situation without incurring significant penalties.
How The Process Works
You can only assume the car lease of another person if the financing company that extended the original lease allows it. Once the lease has be transferred into your name, you are responsible for making the lease payments for the remainder of the lease term. When the lease term is up, you have the option of purchasing the car under the terms of the original lease or releasing the car and obtaining some other form of transportation. Make sure that you do not violate any of the provisions of the lease, such as going over the allotted number of miles or damaging the car, or you will find yourself making a hefty payment to the company holding the lease if you decide not to buy the car.
Where To Find An Available Car Lease
If you do not know anyone that has a car lease available for you to assume, you are not out of luck. There are companies available that match up people that want to get out of their lease with people that are interested in assuming someone else’s car lease, such as LeaseTrader.com and SwapALease.com. In most cases, the warranty that is available for the car through the manufacturer or the dealership is still valid even after the lease is transferred. The company will display a picture of the vehicle available along with the monthly cost of the lease and the number of months remaining in the lease term to make it easy for interested consumers to find the vehicle that is right for them.