The Lingering Holiday Financial Hangover

By Cassandra_BHM | February 8, 2010

The Christmas holidays may seem like a distant memory yet the stark reminder of overspending is not fading away anytime soon. You may have thought this was something you could manage on your own, but now that the new year is well under way the anxiety of not getting credit card balances lower than the credit limit is reality.

Debt load is something thousands of people are living with and it causes an insurmountable amount of grief, anxiety and stress. Paying the bills can be trying enough but add in those credit card payments and life can take you places you’d rather not visit.

According to TransUnion and Equifax, the two most recognized credit bureaus, paying more than the monthly minimum as much as possible is really important. In addition to this, they state that keeping your balance lower than 75% of your credit limit is essential in keeping your credit rating in good standing. This may sound good in theory, but for so many of us, reality dictates otherwise.

All is not doom and gloom. There is no magic wand to take away debt, and relying on the hopes of winning a lottery doesn’t pay the bills. First things first, take responsibility. Even if you can’t manage paying the monthly minimum, pay what you can and call the credit card company to let them know it’s the best you can do. Most credit card companies are not ogres; they fully understand that hard times fall on everyone from time-to-time and as long as you keep the lines of communication open, they’ll respect you for that.

Next, check out all your options. Before you can do that, you need to add up what your monthly debts are and what your monthly income is. Once that step is done, check with your bank or a financial adviser to see what options are available to you. Many people are not able to obtain a bank loan and end up feeling lost. There are more options to you.

There are loan options out there for everyone. Regardless of your credit score, there are companies able and willing to help you restore financial order in your life.

“Car title loans” are one of those options. These loans are set up specifically for those who have credit that a bank may view as less-than-desirable. A car title loan is secured based on the value of the borrower’s vehicle. These loans are facilitated much faster and are by far easier to obtain than standard loans.  For those with bad credit, a car title loan may be a good option to consolidate debt and bring down those multiple monthly credit card bills to one easier to manage monthly payment.

Posted in Credit Cards, Reducing Debt

| Print This Post | 0 Comments

Bad Credit Shouldn’t Stop you from Getting a Loan for RRSPs

By Cassandra_BHM | January 22, 2010

It may be several weeks away still, but why wait to the last minute to think about purchasing RRSP’s. For some people these investments are taken care of by their place of employment. However, if you’re like thousands of people, the ability to purchase RRSP’s is out of arm’s ‘financial’ reach.

So many people have held onto hopes of buying RRSP’s but year-after-year, maxed credit cards and a bad credit rating has stood in the way of getting a loan from the bank to make an investment. This need not be the case any longer.

It’s never too late to start making a contribution and the best time starts now. Even if you have never made any RRSP contribution in previous years, there’s no time like the present to get started. Don’t let the lack of cash stop you from taking advantage of purchasing an investment in your future.

An RRSP loan can help you realize tax savings, increase the eventual size of your investment and can help you stick with a savings plan.  As an added bonus, the tax refund that you may get as a result of your contribution could help to pay down your loan.

There is a limit on how much you can contribute every year. The maximum contribution is generally 18% of the amount that you earned from employment during the previous year. This amount is set by the Canadian government. After your first year of filing your tax return, the Notice of Assessment you receive from Revenue Canada will let you know your maximum allowable RRSP contribution.

The main purpose of an RRSP is to help you save for your retirement. However, the government does permit a person to use those investments for other important life goals, and there are no limitations on when you can and can’t use your money.

Don’t let the fear of having a bad credit rating stop you from taking control of your future. Everyone falls onto bad times at some point in their life and there’s reason why bad times should prevent you from investing in your future. While a standard financial institution may not be willing to lend to those with less than stellar credit, there are lenders out there that will approve even those with bad credt.

There are loan options available for everyone. With a little research, you can find a reputable company who is willing to work with you in order to help you start contributing to your future.

Posted in Financial Dreams, Financial Planning, Investing

| Print This Post | 0 Comments

Loans to Invest in the Stock Market

By Cassandra_BHM | January 20, 2010

Investing in the stock markets is something many people ponder from time-to-time. Hearing stories from friends or work colleagues how their investment portfolio is growing due to the economic recovery inspires daydreams of becoming part of Bay Street and Wall Street’s lure. Many stocks are low right now and getting into the stock market has become attainable for some people. If you have no extra cash and truly want to get in while some stocks are low then getting a loan may be an option for you.

There are many financial experts, some whose services are reasonable. When a person has the interest yet no knowledge about playing the stock markets, getting professional advice is a must. Find out what’s out there, what has great potential, and the cost of making an investment. A financial adviser can also suggest other ways to invest money that may be more appealing. Stock market investing is not easy and unless you’re a financial whiz, getting the advice from an adviser is highly recommended.

No matter what your financial situation is, there is a way for you to have some cash to dabble in the market. Maxed credit cards and bad credit rating typically hamper a person’s ability to obtain a loan. So many financial institutions will not take a chance on a person with a bad credit rating. Hard financial times fall into most people’s lives and no one should be punished for being in bad times.

Investing in the stock markets shouldn’t be just for a certain segment of the population. Everyone should have an opportunity to get into investments, and having little or no money should not pose a barrier any longer.  There are loan options available for everyone. No matter what your credit score is, there are companies willing to work with you in order to help you start investing in the stock market.

One such option are “car title loans” that are specifically intended for those with bad credit. A car title loan is secured based on the value of the borrower’s vehicle so credit rating plays little part in the approval process. Since these loans are secured, they are facilitated much faster and are by far easier to obtain than standard loans.

Investing shouldn’t be only for the wealthy and those with good credit. By finding the right loan to suit your financial situation, you could be on your way to growing your portfolio in no time.

Posted in Financial Dreams, Investing

| Print This Post | 0 Comments

Vacation Loans to Escape the Winter Blues

By Cassandra_BHM | January 19, 2010

The cold winter months seem to drag on and the thought of feeling the warmth of the sun brings a smile to the face. When checking out the finances, that warm sun quickly disappears with cloud cover and in some cases, those clouds are very dark. Vacation loans might just be what the weatherman ordered to clear away those clouds and seat you on a southbound flight.

The excitement of a new year has quickly fizzled away and the reality of the cold winter months has turned that excitement into the bone-chilling blahs. There’s no better way to transform those blahs back into excitement by planning a late-winter or early spring vacation. Getting a head start on a suntan is a fabulous way to welcome the warmer months and to get rid of winter’s depression.

Before checking out the bank balance, go online and see what deals are out there. You’ll be surprised at how inexpensive some vacation packages are depending on the destination. Be sure to check with a travel agent to ensure all costs are included. There’s nothing more disheartening thinking you’ve found an affordable vacation only to discover all sorts of hidden taxes and fees.  Once you have found something that might work and you know who to ask to go with you, then it’s time to check out the bank balance.

Get out the finances and start taking inventory; can this vacation happen? Many people may have some money, but not enough to cover the entire cost; and for many more people, personal funds are simply not enough to fly away. There are options, and they don’t include your credit cards.

Regardless of the global economy, Canada has economic strength and as a result there are a number of loan options for personal purposes, including a vacation loan.  There’s no better way to help get rid of the cold winter blahs and soak up the sun’s rays on a southern beach than with a vacation loan.

As a result of our economic strength, there are loan options available and even if you have bad credit, there’s no worry. There are companies willing to work with you in order to make a warm vacation reality. No one should be denied a nice holiday because of bad credit. With a little research into a reputable lender, you could be on your way to sunny destinations sooner than you think.

Posted in Financial Dreams

| Print This Post | 0 Comments

The Debt Consolidation Conundrum

By Cassandra_BHM | January 13, 2010

Literally millions of individuals all over the globe are stuck in the credit card trap; that is, the seemingly never ending cycle of making minimum payments on credit cards and never actually reducing their debt. If you’ve made the decision to free yourself of this “trap”, then you know that this is the beginning of a tedious and difficult journey. There are many ways to approach the situation, but for those who are struggling to make minimum payments on their credit cards, or using one card to pay off another, the options seem few and far between.

Debt consolidation is the act of obtaining financing from a lender to pay down debt from multiple creditors. In other words, taking your multiple credit card bills and turning them into one monthly payment. A debt consolidation loan will allow you to pay down your debt faster and sometimes with one lower monthly payment than you would have made on your numerous credit card bills. Given this win-win situation, you may be asking yourself why everyone with a heavy debt load wouldn’t consider using this method of debt repayment. The answer is quite simply bad credit.

For those with bad credit obtaining either a lower interest rate credit card or a loan from a standard financial institution can be virtually impossible. So what are people with bad credit who are swimming in debt to do? One solution that more and more people are turning to is a car title loan.

A car title loan is quite simply a loan that is secured based on the value of the borrower’s vehicle. Since the loans are secured, the borrower’s credit rating plays very little part in the approval process, so even those with bad credit can be approved. While the interest rates of these loans are typically higher due to the risk associated with providing loans to individuals with bad credit, they can still be of great help to those struggling to find a way to consolidate their debt.

First, because it is a loan, there is and end date, meaning the never ending cycle of making minimum payments on multiple cards can finally be broken.  Secondly, since some lenders are flexible with their terms, you will likely be able to find a payment plan that can suit your tight budget.

By doing some research and finding a reputable lender you can find a debt consolidation loan that could be the solution that you’ve been searching for; a way to spring yourself free of the credit card trap!

Posted in Car-Title Loans, Credit Cards, Reducing Debt

| Print This Post | 0 Comments

Holiday Financial Hangover

By Cassandra_BHM | January 5, 2010

There’s only one hangover worse than the New Year’s Day hangover and that’s the credit card statement that just arrived. The sobering reality now takes hold; there are credit card balances that meet or exceed the balance limit.

Consumer debt loads are at an all-time high so the good news is that you’re not alone. Although that thought alone won’t pay the bills, taking responsibility will. There’s no need to hit a panic button until all options have been explored.

Good financial advice states that it’s important to pay more than the monthly minimum whenever possible, and although this is good information, thousands of people struggle with just the minimum. If you are one of the thousands of individuals who are trapped and desperately want to get out of the holiday hangover then you’re not alone. There is no trap that can’t be sprung so long as there is desire and will.

First, start seriously thinking about combating those nasty debt loads. Acknowledge the financial reality and take a tough stance against it. Take responsibility for your actions, if paying even the minimum balance can not be managed this month, don’t just ignore that monthly statement. Call the creditor and tell them you’re struggling. They are more than willing to work with you, not against you. Before you make that call, work out your finances; how much can you pay? Making a payment that’s less than the minimum payment is better than not paying at all. Keep the lines of communication open with your creditors; not returning their calls is going to make things much worse.

Creating a budget is important. As easy as this sounds, it may be very difficult for some. Gather all financial papers that you have. Make a list of what money comes in every month, and what is spent every month. Take a hard look at what is spent. Is everything on that list a necessity? When debt loads are heavy, it’s time to focus on only necessities.

If after examining income and expenditures, and it appears there is no way you can manage on your own, then exploring a loan is an option in order to help keep your finances afloat.

Learning to live within your means is solid advice our parents and grandparents lived by, and it’s never too late to follow that advice.

BHM Financial is a trusted name in the car title loan industry and they may have the cure to help get rid of the ‘holiday financial hangover.’ Please visit our website and find out today.

Posted in Car-Title Loans, Credit Cards, Fixing Bad Credit, Reducing Debt

| Print This Post | 0 Comments

Get Back In The Driver’s Seat, Even With Bad Credit

By admin | December 9, 2009

For those with bad credit, moving on toward bigger and better things can feel difficult, if not impossible. Things like buying a house or a car, replacing damaged parts for home or vehicle, paying off student loans, returning to school or sending your children to private school or college can feel like dreams that are beyond reach.

For many Canadians, the question of bad credit and how it affects their personal lives is all too obvious.  What we are beginning to realize, though is how bad credit has influenced the market of late.

Bad credit has supplanted terrorism as the gravest immediate risk threatening the economy, a key national research group reported that borrowers’ withering ability to pay their bills and the subsequent fallout in the credit markets this summer topped the list of short-term risks on peoples’ minds, according to a survey of 258 members conducted by the National Association of Business Economics. NABE, a Washington-based association, said 32 percent of its surveyed members cited loan defaults and excessive debt as their biggest near-term concern.http://www.msnbc.msn.com/id/20427753/

More and more subprime mortgage-holders are defaulting on their mortgages. This makes the subprime market look risky to mortgage investors who subsequently pull their funding. When investors pull out, the stock market drops. The value of the US dollar also dropped, hitting an all-time low against the euro, according to Associated Press.

The good news is NABE doesn’t view current credit problems as a long-term threat to the economy. Not because they foresee credit problems being solved, but because the housing market has a strong outlook.

Even if the housing market does turn around, the subprime mortgage fiasco is a sign that consumers need to take control of their credit and start making better decisions about debt. One of the ways to take control of your bad credit is to borrow money using a car title loan.  By securing a car title loan, you can both free up resources and raise your credit score by paying back the loan in a timely fashion.

Just because you get approved for a loan or credit card doesn’t mean your budget can handle the extra debt payment. Use your debt-to-income ratio to determine whether you can handle more debt. If the new debt puts your debt-to-income ratio above 37%, you should reduce your current debt load before taking on any new debt.

In light of these debt burdens, taking out a car title loan is often a good option for consumers.  Not only do these types of loans provide financial relief for the short term, they also come without a lot of red tape and paperwork.  Typically, car title loans are more easily obtainable and there are far fewer hoops to jump through than other types of loans. Considering a car title loan will put you back in the driver’s seat toward improved credit.

Posted in Car-Title Loans, Fixing Bad Credit

| Print This Post | 0 Comments

Decoding Car Title Loan Misconceptions

By admin | December 1, 2009

Most apprehensions regarding the use of Car Title Loans have arisen due to malpractices of some dubious Car Title Loan providers or due to misinformation about this form of financing. The most common mistake people make when evaluating Car Title Loans is equating them with conventional loans. Car Title Loans are essentially last resort loans and they should be sought when other, conventional forms of borrowing becomes too difficult. The easiest example that underlines this fact is that of people with poor credit history who form a major consumer base for Car Title Loans. In fact, those faced with bankruptcy too can be approved for car title loans!

Car Title Loans are not ‘Rollover’ Entrapments
Despite the transparent loan processing practices in the Car Title lending industry, some unfounded, pessimistic sentiments have arisen. Car Title Loans have been often termed as rollover traps that tend to prey upon the inability of the loan-seeker to repay the loan. The misconception about unreasonably higher interest rates is based upon the fact that Car Title Loan providers charge an interest rate that is much higher than the market average. This is often interpreted as taking advantage of a people who have no other avenue of seeking credit. Rollover is a common term that has become synonymous with those badmouthing Car Title Loans. Such folks commonly spread the idea that higher interest rates are charged to make the timely payment of the loan almost impossible, so that the loan can be ‘rolled-over’ (extended) multiple times, beyond the payment capacity of the lender, eventually causing him to surrender his car.

However, Car Title Loan providers charge higher interest rates for a commonly ignored reason - they provide instant loans to high-risk borrowers, for a customer-defined period, with greater flexibility in the repayment schedule and that too with a fraction of paperwork or verification associated with any other form of lending.

Before a Car Title Loan document is signed, the potential customer is briefed about the interest rates and the expected date of maturity of the loan, i.e. the date by when the loan should be repaid. There is negligible room for surprising the customer with hidden clauses or raising unreasonable demands about the loan payment schedule among reputed, Car Title Loan companies.

Self-preparation is the best tool to protect against deceptive Car Title Loan practices. Use the following tips to make an informed Car Title Loan decision:

** Seek car title loans when you are convinced that your credit ratings have dipped beyond redemption and seeking extensions on pending payments is no longer possible - don’t consider car title loans purely because of their ease-of-availability but due to the urgency of your financial situation.

** While evaluating different Car Title Loan Plans, enquire about the penalty clauses and payment extensions. Some companies have a slightly flexible payment structure wherein under difficult personal circumstances, delayed payments with minimal penalty are also accepted.

** Thoroughly read the documents to unearth any unexplained payment clause about the loan payment schedule & most importantly, always seek the loan from a reputed Car Title Loan company.

With a little persistence and research, you can find a lender that will make your car title loan experience an enjoyable one.

Posted in Car-Title Loans

| Print This Post | 0 Comments

Solving Your Short-Term Credit Requirement through Car Title Loans

By admin | November 27, 2009

It is a commonly acknowledged fact that the ongoing economic crisis has eaten into the credit history of many people. Most financial institutions have been in a regulatory overdrive, upgrading their credit guidelines to extremely stringent benchmarks. As a result, a severe credit crunch is being felt, particularly among short-term credit seekers. People with average credit scores too are finding it difficult to procure a short-term loan. Among the limited alternatives that can be considered, seeking a Car Title Loan presents itself like a safer and sensible credit choice.

Car Title Loan Basics

A Car Title Loan is in essence simply a secured loan and, the security in this case is your vehicle. The amount of the loan awarded is based on the equity in your vehicle. Since the loan is based on the vehicle’s value, your credit rating is virtually irrelevant, so even those with bad credit, no credit, or a bankruptcy on file can be approved for financing; the title (or ownership) of the vehicle, remains in the borrower’s name at all times. The lending company has the authority to claim ownership of the car if the loan isn’t repaid within the stated timeframe. Since car title loans are often sought by folks with seriously poor credit ratings, the interest charged is higher than the market norm. However, the higher interest rates are offset by the undemanding nature of car title loans.

Ease of Obtaining a Car Title Loan

Unlike bank loans or any other form of conventional financing, procuring a car title loan is uncomplicated. For starters, the lending company evaluates the car and puts forth a value on the car. This value is essentially the amount the company deems, the car would be able to fetch in the market if it needs to be sold, i.e. to recover non-payment of a loan. The loaned amount is quoted, based upon this value. Unlike traditional mortgages or banking loans, there are no hidden costs or extensive calculations involved. There are minimal financial qualification parameters and the paperwork is presented in an easy-to-understand format. The legalities for the entire process are negligible that includes basic information like proof of income/age and residence status. The only limiting condition is that there should be no outstanding payments on the car because in such cases, the title of the car belongs to the financing authority.

Car Title Loan Precautions

There has been an overwhelming increase in the number of companies presenting themselves as ‘dependable’ Car Title Loan providers. Please understand that Car Title Loan companies are not obligated to get their status verified by state or federal regulatory agencies like banks. These are essentially private companies and hence, evaluating their reliability as your loan provider is slightly difficult. Before deciding upon a loan provider, you should thoroughly, read through the fine print that is present in the application form and brochures. Ensure that you equip yourself with a comprehensive understanding of how the interest rate/interest amount is being calculated. It is critical that you are well versed with penalty clauses for making late-payments. Some reputable Car Title Loan companies extend the privilege of limited mitigation wherein they consider slight re-negotiation of payment conditions or allow delayed payments without charging significant financial penalties.

Posted in Car-Title Loans, Lending

| Print This Post | 0 Comments

Practical Budgeting

By admin | November 18, 2009

Budgeting is as difficult as dieting: keeping track of money spent is at least as challenging as keeping track of calories intake. That’s why there is such a wide variety of budgeting software available today, but does it really make our life easier?

If you are not computer savvy, or if you do not have sufficient time available to spend in front of the computer learning a budgeting program and then keeping it regularly updated, don’t worry, you’re not alone. There is another excellent, inexpensive, and practical method to keep your budget on track and your expenses in check: the use of envelopes and cash.

Once you have set your budget, label each envelope as per the expense categories you have identified (E.g. groceries, medical expenses etc.) and fill each envelope with the established amount of cash for that  week or month, depending on how much cash you feel comfortable in keeping around and depending, of course, on your cash availability.

Once you a make a purchase, replace the cash with the purchase receipt in the appropriate envelope. Refrain from using debit cards since you can’t see the money going out. They make it too easy to spend; thus, ruining your budget.

Use your bank account only for online payments or pre-authorized payments, such as your mortgage, rent, loan, and utilities. Refrain from using credit cards unless it is an emergency, in order to keep your high interest rate debt under control.

If you pay monthly memberships or subscriptions, keep careful track of them especially if they are charged to your credit card, or if they are automatically withdrawn from your account. Often, memberships and subscriptions automatically renew unless you request otherwise in writing. Hence, you may be paying for something you do not even know is still active.

Setup a subscriptions notebook so that it lists:

-    Date of subscription
-    Monthly amount
-    Due date
-    Expiry date
-    Whether or not you have to request a cancellation in order to avoid automatic renewal of the subscription
-    How much in advance you have to send in the cancellation request

This will help you in making sure you are not charged beyond the desired contractual term or amount.

If you can’t seem to find a way to make your budget balance in the first place, you may have too many payments going out to too many creditors. Consider consolidating your debts into one monthly payment by applying for a debt consolidation loan. Even those with bad credit can obtain a loan to consolidate debt if they own a vehicle. A car title loan is approved based on the value of your vehicle, not on your credit rating.

Once you have established your budget and stabilized your cash flow with a debt consolidation loan (if necessary), you will regain control of your finances and with some persistence, be out of debt in no time.

Posted in Reducing Debt

| Print This Post | 0 Comments

« Previous Entries