Take a Vacation without Taking on Debt

By Cassandra_BHM | March 10, 2010

Winter most certainly started early this year and by now most of us are in need of a holiday. Being as this is one of the most expensive times of the year for travel, it’s advisable to sit and consider a few options before booking.

Chose a destination.

Contrary to popular belief, traveling to common destinations like the Caribbean during high season can be the best time to go. Many airlines will provide several daily direct flights. Due to the frequency, they want to fly full so getting a good deals is common.

Are you open to staying at a hostel?

Hostels are not only for backpackers. Most hostels offer both dorm-style accommodations as well as private rooms. You can easily get a private room (with television and bath) for $20 per/person per/night. That adds up to a massive savings over the course of a one or two week holiday. Due to their rising popularity, many hostels now have pools. As well, they offer kitchens (cooking utensils included) where their guests can cook and mingle. The difference in price between a hostel and a hotel could easily be enough to pay for your entire airfare.

The all-inclusive - is it worth it?

You need to ask yourself if you will you actually use it? All-inclusives are a great way to go if you are not on a budget, consume a lot of food, want your activities planned or need child care. If, however, you are a single person or a couple just needing a break away from it all, you may want to reconsider this option. The difference in cost between an all-inclusive and going your own way is substantial. Hotels charge for everything whether you use it or not. So, if you prefer to make your own way, eat local and tour yourself, you can easily save thousands of dollars per person by not doing an all-inclusive.

Staying central as opposed to staying beachside.

This is a big one. Hotels charge for their amenities, their location and their view. So if you are of the independent type and don’t require satellite television and heated towels, I would seriously consider staying central in your chosen destination. Central hotels are usually located along main throughways in cities, meaning you can walk pretty much anywhere you need to go and local transportation is convenient. These hotels always offer great deals.

Taking local transportation…it’s fun.

Consider an additional adventure by learning to take local transportation. Buses go directly to tourist destinations. If you know where you would like to go but are unsure how to get there, it’s easy enough to do a little on-line homework before leaving home. Print your findings and take them with you. You will be surprised at how easy it is. If worse comes to worse, keep your hotel address on your person and take a taxi if you get lost. Local buses will cost between $1 and $3 dollars to get you around with almost door-to-door service. A local map…free.

Being flexible with travel dates.

This too can be the make-or-break of your trip. Weekend departures are the most sought-after days so flying on a Friday or Saturday generally ensures the most expensive seat. Mondays and Tuesdays are significantly less expensive.

Found a great deal on travel that you can’t pass up?

Fantastic travel deals don’t always happen at the most financially opportune times. So when you find a great deal that you can’t refuse, a loan might be an option to consider. But remember, when you get back from paradise, there will be payments to make, so weigh the pros and cons and decide whether escaping a long, bleak winter is a good enough reason to increase your debt load.

If you consider some of these travel suggestions, there is a very good chance you will be able to afford your vacation with ease and return home happy, relaxed and possibly even debt-free!

Posted in Being Frugal, Financial Dreams

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Let your Car Buy you a House

By Cassandra_BHM | March 9, 2010

Does that sound a bit crazy to you? Have you thought about buying a home for your family, but are you having a tough time setting aside those extra dollars for a down payment? Think about using the cash value you have already invested in your vehicle to help you secure that down payment. It isn’t as crazy an idea as you might think.

Lots of people are not aware that you can use your vehicle as collateral to get a loan-if you own it, and it is not more than eight years old-and those dollars may be just the cushion you need to buy that new home, or for other extras you may have thought you just cannot afford right now, and thought you would have to live without.

Or, perhaps you just need a little boost to your finances-borrow against your vehicle to help you get a handle on them. Maybe your credit isn’t all you would like it to be-borrow against your vehicle to pay down those debts, give you a little wiggle room, and improve your credit rating at the same time.

Borrowing against your vehicle, known as a car title loan, is a little known way that people with bankruptcies, bad credit, poor credit-or people who just need a little extra cash for something special-can find a pool of money they might not have realized is available to them. A car title loan is often easier to get, too, because your vehicle acts as your security against the loan.

There are a lot of advantages to this kind of loan, too. For example, it is often approved in just 24 hours, you do not have to make an appointment to go into the bank, there are not endless forms to fill out, and you can complete your application from home, online.

If this sounds appealing to you, then think about the ways you could use that extra infusion of cash-for a new home, a fresh start, a few extras you’ve really been wanting to buy for your family-or maybe to just help smooth the way for you through some rough financial times.

Let your car buy you a house? Why not. Let the assets you have now help you build a better future for you and your family. The next time you jump in and start your vehicle, think of how many ways a car title loan can help you jump start your way to a better financial future.

Posted in Financial Dreams

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Tax Time . . . Panic Time?

By Cassandra_BHM | March 8, 2010

Do you panic every year when your taxes come due? Does it always seem like you owe the taxman at the end of the year? It doesn’t have to be that way. A few small changes to how you handle your taxes can make this time of year a little less bleak, even with the weather . . .

Deduct more

This is the easiest way to be sure you have paid enough money and won’t owe taxes at the end of the year. Just contribute more from each pay cheque. You probably won’t even notice the little bit extra that gets deducted for your taxes each month, but it will be a big relief at tax time. And, you may even get money back for a change.

Think RRSPs

Registered Retirement Savings Plans (RRSPs) are a great choice to lower your taxes, whether you buy them for yourself or as a spousal RRSP. Either way, your tax burden drops right away. And you are eligible for spousal RRSPs even if you live common law. Buying RRSPs may seem like a big purchase, but there are ways to generate the cash to buy them, even if you have poor credit and cannot get a traditional bank loan for them.

Deduct your mortgage interest

There are a few cases where you can use the interest you pay on your mortgage to lower your taxes. If you work at home, and maintain a home office, you can deduct that amount of space from the interest you pay on your mortgage. So if your office takes up 10 percent of your home, you can deduct 10% of the interest you pay from your mortgage. There are other circumstances where you can make mortgage interest deductions. For example, do you rent out a room in your home? Or do you have rental property that you financed through the bank? What about vacation property? In these cases, you may be able to deduct some of the interest you pay for the mortgages that you carry on these purchases. Your bank can tell you how, or call Revenue Canada and they will explain it to you-it’s not as tough as you might think.

Giving it away just might pay

Don’t believe it? Well, if you gift registered charities with the things you have sitting around that you don’t use (check out your garage) you may qualify for a 29 percent tax credit. Let’s say you have a second car that you just cannot sell, or old furniture you no longer use. You can donate those things to your local church or your favorite charity. They issue you a tax receipt-say for $1000-and that translates into a $290 tax credit for you!

Your current vehicle may help you gain a little extra cash around tax time, too.

Car title loans

Car title loans are a little known way to generate extra money, especially if you have poor credit and trouble getting loans. If you own your vehicle, and it is less than 8 years old, you can re-finance it to buy those RRSPs, for example, or help pay back the taxman. It’s easy to do, helps re-build your bad credit, and can ease the burden at tax time.

So don’t let tax time add to the winter blahs. You have more options than you think.

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Mending Your Credit Rating

By Cassandra_BHM | February 17, 2010

There’s no shame in admitting you have financial troubles. After all, when the economy took a hit, it was only natural that individuals took a hit too.  The sad reality is that thousands of people have struggled keeping a roof over their head and food on the table. In this struggle for financial survival, credit cards got maxed out and now the reality of not being able to get below the credit limit hurts.

With credit cards maxed and not being able to make minimum payments, your credit rating is taking a massive beating in the financial arena.  Oh sure, you can say you aren’t planning on getting any loans any time soon, so who cares, right? You should care. Life has a tendency to throw curves at us from time-to-time and those curves can leave us in serious trouble. You never know when an emergency happens and you need money fast; family emergencies, car break downs are some examples of what can happen.

Getting your credit rating in good standing and having those credit card balances sitting below 75% of the available credit is essential.  You may be wondering, just how important is a credit rating anyway? All of us have a credit rating and it is a legal record of our financial responsibility. This record is monitored at Equifax, TransUnion Canada and Experian and our record indicates if we are trustworthy of receiving credit. It isn’t just banks or other financial institutions that want to know how trustworthy you are, landlords, utility companies and other businesses who lend you something want to know if you are high-risk.

Having a poor credit translates to major difficulties in trying to obtain a mortgage, loans, car loans and even a cell phone. Poor credit hampers the ability to rent an apartment, appliances or furniture. Companies that advertise ‘no money down and no payments til next year’ advertise ‘OAC’, that means on approved credit.

The sad reality is that these three companies that have our credit ratings do not take hard times into consideration. Job loss, lay offs and wage cuts can happen, and credit ratings should grant some leniencies, but they don’t.

So, you may already be aware, your rating is not an enviable one and you want to do something about this. As crazy as it may sound, taking out a loan to help reduce those credit cards and establishing a good payment record is a step in the right direction. In addition to the benefits of consolidating your debt and making an easier monthly payment instead of multiple payments to many creditors,  the benefits will quickly be seen on your credit rating.

Getting a loan to improve your credit rating only makes sense. You can try obtaining a loan at your bank, but if they won’t consider doing business with you, there are other options.

Posted in Fixing Bad Credit

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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

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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

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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

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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

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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

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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

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