Behaviors That Will Change Your Life – Part Four – Think Before You Make a Purchase

The first thing a couple needs to do as they focus on improving their retirement planning is to establish a threshold where a financial conversation is required before making a purchase. For conversation sake, you and your spouse may agree to a threshold of purchases greater than fifty dollars. So your agreement may read as…

The first thing a couple needs to do as they focus on improving their retirement planning is to establish a threshold where a financial conversation is required before making a purchase. For conversation sake, you and your spouse may agree to a threshold of purchases greater than fifty dollars. So your agreement may read as follows. “Before making purchases over $ 50, we, as a couple, agree to discuss the need / want for such an item or service.” If there is no agreement then do not make the purchase. A residual effect of combining incoming (behavior number one) is the communication that will take place when one person wants to make a basic purchase. This process fosters personal value as part of a team and builds respect for each person. Making financial decisions is the responsibility of both adults in the marriage. Only in rare instances should there be the ability of one person to make the decision in lieu of an agreement. To insure harmony in the planning process, it is best for couples to have agreed upon guidelines for making unilateral decisions. In over 21 years of marriage, I can only think of two times when I made a unilateral decision. Every other major financial decision was made with complete agreement.

Another way of developing this behavior is to establish a twenty-four hour cooling off period when deciding to make a major purchase. If you practice the cooling off period philosophy, you remove most, if not all, of the pressure sales techniques used by many today. Part of the ability to develop this behavior will come from analyzing the potential outputs and opportunity costs associated with decision making. Retirement planning is just as much about strategy as is the game of chess. You have a set of constitutions associated with how the pieces move, specific color associations with certain pieces, and what constituents check and checkmate. Retirement planning also comes with a set of constraints including, but not limited to, financial resources, time, and rate of return. There are variables in the game of chess just as there are in your retirement planning. In the game of chess, you might have to make a decision between two moves that both appear to produce your desired results. In retirement planning you may identify two advantageous strategies.

The real trick to winning the game of chess is to manipulate your opponent's pieces to move in a way that is consistent with your strategy. Thus, you have to learn how to understand your opponent's thought processes and maneuvers in such a way as to cause him or her to do what you want him or her to do. The same is true for retirement planning. You have to understand the environments that can impact your plan. Political, economic, and social environments can increase your rate of return or decrease your available resources for investment. If you as a couple work together in making the key decisions, with intentional thought, you can mitigate the variables within these environments. What you do when your opponent moves his chess pieces in a direction that is counter to your strategy will affect your retirement planning. Part of developing your retirement plan is to have a well defined and actionable mitigation plan when conditions on the ground change. And they will change over the course of your life.

Since the goal of chess is to manipulate your opponent's pieces to move in a way that is consistent with your strategy, you must understand the behavior of your opponent. You must be able to read the environment and those influences within that environment in order to play the game well. You study the board of life and actually move each piece to determine its potential and threats. Actions that have a high propensity to lead to negative outcomes must be revamped or discarded altogether. Actions that have a high propensity to lead to positive outcomes need to be vetted and pursued. There are likely to be some actions in which you can not determine the potential outcomes. These actions should be considered with guarded optimism. Retirement planning requires that you take time to think before you make a purchase. Every large financial transaction has associated opportunity costs. To navigate the political, economic, and social environments you have to take the time to consider all options. You can not consider all options if you rush into a purchase.

To win at life you need to play the game with a strategic mind set, much the way you need to play the game of chess. You take a series of tactical actions that, in their totality, result in putting your opponent's king in a position where it is unable to move without being in check. This is called check-mate. In life, your opponents are those things which prevent you from achieving the success you desire. These are the things that you must keep in check. Always positioning your pieces in such a way as to keep your opponents in check requires you to think and act strategically. You must scan your life and learn to anticipate from where your next or opportunity may arise. Then, seeing the pieces in place, you must examine each piece to determine if the threat or opportunity is more possible or probable to materialize. Acknowledge the possible, but respond to the probable. This is how a retirement plan works. Awareness of the possible should not require action. It is when the possible becomes probable that action is required. For the probable will turn into one of two realities based on your desire and intentionality of action. It will either become regret, because you failed to act, or it will become an achievement because you acted.

Why the U.S. Dollar Won’t Crash Overnight

For the past few months I've been listening to brokers and others write about the collapse of the US dollar, and I'm here to tell you why it will not happen overnight. You see, even though the US has been printing trillions of dollars during the Obama administration, other countries including the EU, Japan, Russia,…

For the past few months I've been listening to brokers and others write about the collapse of the US dollar, and I'm here to tell you why it will not happen overnight. You see, even though the US has been printing trillions of dollars during the Obama administration, other countries including the EU, Japan, Russia, and yes even China, have also been running up their via the printing of money.

In other words it's almost tit-for-tat as far as printing money goes. I specify almost because the United States Treasury has been printing more than the other mentioned countries. The disparity between the currency exchanges should be negligible.

Although at some point in the future the United States dollar will lose its strength and then, and only then, will silver and gold begin appreciating again. But for right now, silver and gold are both overpriced, and that is why both have been depreciating this past year (2013). I expect that despite the recent small spikes in both gold and silver, that they are still both in a downtrend.

In the short term I expect both to remain in that downtrend. However, in the long term, meaning 6 to 12 months from now, both gold and silver will turn around and begin to rise again.

This prognostication is applicable as long as the US Congress holds the line on any further rising increases. The next vote on that should be sometime in March of 2014.

I believe that all the commentary regarding the collapse of the US dollar is for the sole purpose of making brokers richer. I only say this because in all the reports that I read, I never see anyone talking about the other countries involved, who are also printing money to bolster their economies.

When this one factor is taken into consideration, any economist worth his salt would recognize that it at least partly offsets any printing by the US Treasury. Their failure to do so only deepens my distrust of all those who are reporting the untimely demise of the US dollar. Only time will tell.

When that time does come, gold and silver will have higher value, but so will everything else including collectible coins, works of art, cars, houses, and even baseball cards. You remember the last time baseball cards went up in price, do not you? Just in case you do not, let me remind you. It was in the late 70s, and they peaked in the early 80s. Now if you think back to that era, what was happening in our economy? The dollar was down and gold and silver, as well as works of art etc., were all appreciating in value.

So the smart money should not only be watching the US dollar, but how the rest of the world is managing their finances.

When An Annuity Won’t Work

To someone who only has a hammer in their tool box, everything tends to look like a nail. While there is nothing inherently wrong with a hammer, sometimes it just can not do the job required. At those times the builder needs other tools to be able to successfully complete the job at hand. Likewise,…

To someone who only has a hammer in their tool box, everything tends to look like a nail. While there is nothing inherently wrong with a hammer, sometimes it just can not do the job required. At those times the builder needs other tools to be able to successfully complete the job at hand.

Likewise, there are times and situations where an annuity just will not work and alternative solutions are required so as to best serve the client.

It is the purpose of this article to review some of the more common situations where an annuity is not a good fit; and to propose alternative solutions for those situations. The ultimate goal of this article is to provide the reader with new tools for those situations where an annuity just will not work.

AGE

It is an undisputed fact that people are living longer. Annuity options became fewer and fewer at these advanced ages, even to the point of being entirely unavailable. Factor in Florida's suitability issues at advanced ages, and an annuity may not be a viable option at all. Age is also a factor for a client who is under the age of 59 and and states that they will have a need to access the funds prior to reaching that age. A 10% tax penalty makes an annuity unsuitable for this person under 59 w who already knows today that they need liquidity before then.

LIQUIDITY

While annuities have free withdrawal features, the fact remains that surrender charges are part of the long term nature of annuity contracts. Add to this the potential tax penalty for early withdrawal prior to age 59,, and you are clearly dealing with an illiquid asset that is designed to be held long-term, even until death.

Some investments are illiquid for legitimate reasons. But when the client requires a greater degree of liquidity than annuities provide, alternatives are needed. When a client clearly states that liquidity is a high priority and / or necessity … Then an investment with no surrender charges and the ability to access all of the funds would be a better solution than an annuity.

INSTITUTIONAL, CORPORATE, MUNICIPAL, BOARDS

annuities are products designed for individuals. There must be a measurable life expectancy of an individual before an annuity can be issued. Liquidity is also usually a priority for investors who are not individuals. The result is that there are investable dollars in our economy for which an annuity product is either suitable nor possible.

RESTRICTED ASSETS

“Restricted assets” are those investable dollars that by operation of law or contract may only be invested in specific types of accounts. Examples of restricted assets would be reserves held by home owners associations, non-profits like charities and churches, professional associations, and business entities. All of these organizations maintain and manage assets, but are often restricted by their laws as to where they can invest those assets. Other examples of restricted funds would include some court ordered structured settlements, some accounts held for the benefit of minors, and accounts used as collateral. There are plenty of additional examples where an annuity would not be allowed for that restricted asset.

LOVERS OF FDIC

Some Buyers want FDIC for the security and peace of mind. Some Buyers require FDIC by Law or by Charter. For these Clients … The FDIC Guarantee trumps all other features and benefits of other investments. This Buyer's requirement for FDIC obviously makes an Annuity a non-starter.

In Conclusion:

If Liquidity and the FDIC Guarantee are priorities / necessities for the Client, or The Client is investing “Restricted Assets”, then consider this alternative: FDIC Insured Market-Linked Bank Certificates of Deposit.

Market Linked CDs are issued by the US based subsidiaries of major global banks. They are principal-protected and FDIC insured up to the statutory limits. Most MLCDs offer a minimum guaranteed rate of return, along with the upside potential of being linked to indices of stocks, bonds, and commodities. Market Linked CDs are Principal-Protected if held to maturity. Most MLCDs may be sold back to the issuing bank at any time for the CDs current market value, which could be a Gain or Loss.

US Coins – Great for Collecting or Financial Security

Who does not love money? We all like to spend money, and buy many things for us, our loved ones or maybe our home. However, there are people who love to collect rare coins as a hobby. The people that collect coins as a hobby are always very possessive of their collection, and the very…

Who does not love money? We all like to spend money, and buy many things for us, our loved ones or maybe our home. However, there are people who love to collect rare coins as a hobby.

The people that collect coins as a hobby are always very possessive of their collection, and the very sight of rare coin excites them. Coin collection as a hobby started a long time ago in the US, around 1652. During that time, it was customary for individuals and businessmen to make and distribute coins with their own personalized engravings.

Collecting US coins in gold, silver or platinum can be a very interesting and profitable hobby. The worth of such coins keeps increasing, as the prices of metals keep going up. Moreover, the numismatic value of these coins also goes up with the passing years.

The collectors are free to choose the kind of coins that will make their collection interesting and unique. Most of them are fascinated by the designs and shapes of the coins minted in the US. Over the last thirty years, the US Mint minted close to 300 billion coins!

During the mid 1780s, the Articles of Confederation permitted to various states to produce coins of their own designs. It is interesting to note that some states, like Vermont, Connecticut, New Jersey, Massachusetts and New York, created coins with unique designs, and many coin collectors are keen to acquire some of those coins.

Before you start collecting US coins as a hobby, or for the purpose of making investments, you might want to learn a few interesting facts:

  • The first US coin was made in 1787 with the approval of the federation of the US. It was named as the “Fugio Cent”, and it was secretly produced in Connecticut's New Haven.
  • US coins can only be manufactured by the US Mint. Different kinds of metals, or their combinations, are used for making different types of coins. For example, pennies are manufactured from strips of zinc, whereas nickels are produced from an alloy containing seventy-five percent copper.
  • Even today you can buy old US coins made from solid gold. These coins are often known as Indian Head and Gold Eagle coins. In fact, it is worth investing in such coins, as their value keeps appreciating with time and the increased price of gold. The price of these coins is significantly higher than their face value.

In case you are inclined to collect US coins, you should know the finer characteristics of coins, and you should look for ways to get them at competitive prices. This is indeed a very wonderful hobby that allows you to learn and preserve the history and culture of your country.

Like any other product, the quality of the coins you acquire is extremely important. One has to look for genuine old coins of proven quality. It is worth having a smaller collection of old and genuine valuable coins, as compared to having a larger collection of old coins that are easy to find. However, old and genuine coins are extremely costly and difficult to procure. So this could prove to be a very expensive hobby. Yet, in the long run, you'll never lose any money, as you can sell such coins at anytime you want, and get a lot more money than what you might have invested.

Direct Payday Loan Lenders Lead The Priority Payoff List

The first of the year bills may seem a bit overwhelming and the best direct payday loan lenders may look like the best way to juggle all the new debt but it does not mean you have to make a rash decision. Get an idea of ​​the increased debt payments you will have to make.…

The first of the year bills may seem a bit overwhelming and the best direct payday loan lenders may look like the best way to juggle all the new debt but it does not mean you have to make a rash decision. Get an idea of ​​the increased debt payments you will have to make. Look into your budget and find areas which can handle cutbacks and shuffle income around a bit in order to limit how much outside money help you will need. If you do not have to use direct payday loan lenders to keep up with higher debt payments you should not.

A great way to start off your new budget is to verify that the debt you will be paying for is actually yours. With all of the hustle and bustle of the holidays human error and fraudulent activity increases. The best way to make sure the charges are all yours is to view your credit report. Use a free credit report from one of the three major credit bureaus. They each allow one free report every twelve months. If you stagger them, you can keep an eye on your credit history through the year. When you read through your credit history, begin your review on your personal information. Check for spellings and accurate information. Even a wrong street address could have made a difference in your report.

You will notice that if you have had any prior payday loan direct lender services used, that this information is not part of these credit reports. The companies will not do a hard inquiry nor will they report your debt. If you failed on the loan and it was sold to collections then it will show up under the collector's name.

Review the creditor's reports. Match debt totals to your statements, look at payment history and check report for accuracy. If you happen to find discrepancies or debt that was not created by you, you will want to contact the companies directly and work with them to correct the problem. Be nice. The person you will speak to is not responsible for the error so do not take it out on the customer service agent. Most people will put more effort into helping someone kind. Its human nature so do not knock it.

Once you have verified your debt, the next step is to work on that budget. Unless you got a raise in the last month, you will have to work at prioritizing payments and cutting back any place you can. If you received a holiday bonus you may want to consistently consider using it to help pay down holiday debt. If you are planning on using your tax refund pay the minimum to all creditors. The tax filing date was postponed for a few weeks so the earliest you will be able to receive the refund is mid-February. Protect your credit history with on-time payments until you get it.

Prioritize your debt once you do start paying it down or off. If you found old debt on your credit report, leave it there for now. It has already done the damage. Pay off high interest debt first. So if you have taken out loans with short-term direct loan lenders then you will want to get rid of it first. Once that is paid off, look at credit card rates and do the same. The more high interest debt you take off the list the more money you will save by not having to pay interest.

Do your best to not make new debt while you are working off your old. Instead of using direct payday loan lenders online or applying for a new credit card make a plan to obtain more money. Sell ​​off unused property, find a second job or cut back daily spending in order to give your budget productive support.

How to Write a Cheque – Correctly

The world of finance and banking can be a daunting one. Especially, if you have only just started handling your very own bank account as well as credit card, and are looking to start using your money wisely. It is all about getting your basics right, and voila you are rich! Here, we focus on…

The world of finance and banking can be a daunting one. Especially, if you have only just started handling your very own bank account as well as credit card, and are looking to start using your money wisely. It is all about getting your basics right, and voila you are rich!

Here, we focus on the correct methods to write a cheque so that you do not have to worry about your money going elsewhere or your cheque getting revised.

First of all, what is a cheque?

A cheque is a written form of money transfer between two bank accounts, and sometimes an authorization to obtain direct cash.

When do we need a cheque?

A cheque is usually required to transfer a large sum of money between two bank accounts or between an individual and a bank account.

How to write one?

It is important to enter the correct details in your cheque leaf so that it does not get returned or considered invalid.

Here are some easy to follow steps to write a cheque correctly:

Step 1: Enter the Date

  • In the top right corner of the leaf you will find the slot to enter the date in the format: dd / mm / yy.
  • Usually a future date is entered, whatever date is entered, please be aware that the validity of it is not longer than 3 months of the date mentioned.
  • If you are entering a future date, try to ensure that your account will have the specified money on that date.

Step 2: Enter the payee's name

  • In the line after the word 'pay', enter the name of the person or organization you wish to pay.
  • If you are sure of the person who is going to receive or encash the cheque, then you may allow the bearer word to remain as is. Or you could strike it out.

Step 3: Enter the sum in words

  • Make sure you use the correct spelling when you enter the amount in words.
  • Also, include the word only at the end. This is mainly to ensure that nobody can change what you originally wrote. For eg, Twenty Five Thousand Rupees Only.

Step 4: Enter the value in numbers

  • In the box towards the bottom right of the cheque, enter the value of the amount you wish to transfer.
  • After you write the value in numbers, attach a slash and a hyphen at the end of it. For instance, Rs.25,000 / -.

Step 5: A / c payee

  • If you do not want the receiver of the cheque to encash immediately, but want to transfer it to the account, then on the top left corner of the cheque, draw two parallel lines above and below the word “a / c payee”.

Step 6: Signature

  • You will have to sign at the bottom right corner of the cheque, right above where your name is printed.
  • Make sure that your signature is not too different when compared to the signs in the previous transactions. Although banks do allow room for certain variations, make sure you are fully aware of the way you sign.

How to write a self-addressed cheque?

If you are addressing a cheque to yourself, all you need to do is write “self” in the pay line.

Mistakes to be avoided:

There are several mistakes one tend to make while writing as well as cashing a cheque. But, with a little bit of practice, these common mistakes can be avoided.

  1. Always write a valid date
  2. Ensure there is money in your account at the time of transfer.
  3. Hand over the cheque to a trusted source.
  4. Never strikethrough or overwrite at any point in the cheque.
  5. If you wish to hide the account number (which is printed in the checks), use a permanent marker to hide the printed number.
  6. If you are cashing in a self addressed cheque make sure you write your name and account number as well as your mobile number behind the cheque leaf.

It is necessary to stay clear of these common mistakes as a cheque reject or bounce can reflect badly not only on you, but also your credit history – especially if you are paying monthly installments for your loan or for a business transaction.

Protecting Your College Tuition Savings in the Future With the Help of Gold

Are you thinking about buying gold for college tuition savings in the future? You are about to discover that you're not the only one that buyers purchasing gold! Making investments in valued metals, like gold or silver, is a worthy option for knowledgeable investors. Given the present economic trend, the dangers of inflation are not…

Are you thinking about buying gold for college tuition savings in the future? You are about to discover that you're not the only one that buyers purchasing gold! Making investments in valued metals, like gold or silver, is a worthy option for knowledgeable investors.

Given the present economic trend, the dangers of inflation are not unrealistic. All your savings may be lost in no time. With that facty looming, it's imperative to think about your financial future and to put your college tuition savings in strong physical assets, like valued metals. Currencies have a history of getting wiped out, but silver and gold have continued to be a safe investment for generations.

Most people are aware that precious metals represent a good security in the present economy. As governments struggle to raise funds for taking care of the deficit, the worth of currency is indeed at risk. Yet, gold continues to hold promises for buying power in the future. It has built-in worth, meaning that, even if currency fails at any time, gold will continue to hold its worth worldwide.

There are many ways of turning your college tuition savings into gold. You may buy stocks from mining companies, or choose to purchase golden coins. However, the best option is to purchase gold bars and to keep them in your possession. Gold coins and gold jewelry work out more expensive than the price of gold, as their prices also include the expenses towards craftsmanship. Moreover, the content of gold in such items needs to be estimated when you want to sell them, so making them less liquid.

Alternately, gold bullion provides utmost safety and guarantee, and it may be sold anytime, anywhere. Such an investment will end the negative effects of inflation, and add unparallel value to any portfolio.

There are three main sources of gold supplies:

Extracted gold

Recycled or scrapped gold

Sales from the official sector

Of these three sources, the main one is extracted gold. Last year, it accounted for seventy percent of the total supplies worldwide. This type of supply has maintained an upward trend, even during the recession of 1990.

The amount of gold that gets extracted depends on a few factors. For instance, the investments made in exploration the metal, the type of machinery employed for its extraction, and the efficiency plus the competency of the management of the company that takes care of its mining and processing. After making investments in the development of new mines, a newly found mine will not always yield a viable quantity of gold. Moreover, the process of extraction and refining is too cumbersome and time-consuming, especially in the case of already closed mines.

The availability of scrapped gold is also influenced by quite a few factors, of which the most important are its anticipating price and the volatility of that. It is also affected by the state of economy and recessions.

The recession in the US did not cause any negative effects on the price of gold, mainly due to the exclusive methods of supply and to the demand of this metal. The sole aspect for the demand of gold that may be affected by the recession is its demand as an investment. However, that would greatly depend on the 'kind' of recession. The ongoing recession has had positive effects until now, as far as investments in gold are concerned, mainly because of the associated inflation, plus a falling dollar. That has enhanced the demand for this metal as a hedge against the inflation. As you can see, buying gold for college tuition savings in the future is a worthwhile investment, with a reasonable level of risk.

Gold and Retirement Investing

Ever since gold has been discovered by man, it has been categorized among the most precious metals and it has been used as currency. The Egyptians, known for having an extraordinarily advanced culture for centuries, would bury gold with their dead. Perhaps that was the only form of currency practiced at that time! As a…

Ever since gold has been discovered by man, it has been categorized among the most precious metals and it has been used as currency. The Egyptians, known for having an extraordinarily advanced culture for centuries, would bury gold with their dead. Perhaps that was the only form of currency practiced at that time!

As a metal, gold has some very unique characteristics, the most notable being that it does not get rusted or corroded. Of all the known natural metals, gold and silver are the best conductors of electricity. These are among the most important characteristics that make such metal precious.

Another quality that makes this metal so precious is its malleability and ductility. It may surprise many to learn that beating one ounce of gold can produce a sheet of three hundred square feet. The sheet becomes so thin that it gets transparent, more commonly known as a gold leaf.

Gold is not only a good conductor of electric current, but also of heat, capable of reflecting infrared radiation. Because of these inherent characteristics, gold is necessarily used in modern technology for the making of satellites and spacecrafts. This metal is also exploited for making many useful alloys of desired tensile strength and conductivity for many applications.

Professionals recommend the inclusion of gold as a part of your retirement investment portfolio. It is considered to be the most reliable hedge against inflation. Currencies may keep changing, but gold continues to remain a solid investment at all times. Although the price of this precious metal may drop at times, over an extended period of time its value is bound to go up. The metal has always remained in demand all over the world as governments, like common people, necessarily maintain large stocks of gold. Investment in gold is quite unlike Forex, stocks or other financial instruments, which are frequently exposed to extreme market fluctuations.

During 1971, the US moved away from following the gold standard. Although the reasons for such a move are debatable, the fact remains that now they can print any amount of money whenever needed, as the currency is no more backed by any physical assets. However, every time it prints additional currency, the value of dollar goes down.
The federal government also owns one of the largest reserves of gold worldwide. It simply remains there as the government keeps acquiring additional stocks. Perhaps they believe that hyperinflation can not be escaped forever, as it has historically been proven time and again. As per the census of 2012, the US has had 315,066,582 citizens, whereas its total debt was $ 16.3 trillion. It implies that the government owes US $ 142,749 to each of its citizens. Given that the current per ounce price of gold is around US $ 1660, the government will need to give you 85.8 ounces of gold! Well, do not expect it to be delivered to you in the near future!

You can secure your retirement by making investments in precious metals, as physical assets offer more stability compared to financial markets. Although the price of precious metals may come down for short periods, it will not collapse like financial markets, which carry the risk of failure, depending on the state of economy and government policies.

Investment advisers frequently recommend investing in gold or other precious metals as a part of your retirement portfolio. Time has proven that the price of metals like gold goes up whenever the inflation increases, during wartime, or at times when the dollar or stock markets show a downward trend.

Should you decide to include precious metals in your retirement portfolio, you have to assess its percentage in your total portfolio. The amount varies as per personal investment goals and philosophy. Factors that matter include your age, the capacity to take risks and the total assets.

Payday Loans Direct Lender In or Out of New Budget?

A safe payday loans direct lender may have saved your budget through last year, but it does not mean that you have to repeat the same money mistakes. It's great that you had the option to get emergency cash as not everyone qualifies for these easy fast cash advances. What it does mean is that…

A safe payday loans direct lender may have saved your budget through last year, but it does not mean that you have to repeat the same money mistakes. It's great that you had the option to get emergency cash as not everyone qualifies for these easy fast cash advances. What it does mean is that you can work at managing your bills better for the next twelve months.

If you found that your payday loans direct lender use was high, make a goal to cut the need in half. Where in your budgeted expenses could you make changes for the year before you? What would you need to do in order to rebuild your credit utilization rate so that you may have other options to turn to when you need that extra cash boost? These are important things to consider when reorganizing your finances in order to control how much money is lost towards interest payments.

To start things off, you will want to establish a concise list of all your monthly expenses. Do your best organize similar expenses into categories. Use last year's receipts or payments information to create an affordable budget for each category. Some bills are fixed and are easy to plan for, but others fluctuate through the year and you have to have a true estimate in order to avoid needing a fast direct payday loan lender to finish out the monthly payments.

Some categories may need to be adjusted every month. When fuel prices rise, you will need to add to your vehicle allotment. Pay attention to your utility costs. Track an average amount for each one in order to plan necessary funds. It is most important to budget for all living costs before you add any extras. If you have a car payment and it really does not fit into any affordability plan, you may want to consider refinancing or trading it in for a vehicle with smaller payments. This one change may moderate your financial situation and keep you from needing to obtain any money from payday lenders direct. What would you do with an extra one or two hundred dollars a month? Including alleviating the need to borrow you could potentially pay down credit debt in order to work on rebuilding your credit score.

It is not a smart decision to use excess money to increase the cost of your lifestyle. Whether it was a cutback or a raise in income, any excess you get should be put towards your debt or placed in a savings account. Dedicate the next twelve months to making your finances more secure. You will see your credit score go up and your debt totals go down.

As the year progresses, you will find it much easier to save money. The less you spend towards debt and interest, the more you will have in the bank for future vacancies, potential purchases and retirement plans.

Make this year about money management. Make the necessary changes needed in order to make your monthly budget work in your favor. Do not get discouraged if problems pop up, as problems occur for everyone, the solutions are what make the difference in success or failure. Keep with your set plan and use third party money as needed until you are able to turn your credit around. If you need to use a loan lender's services , do so but pay it off in time. When your credit utilization rate drops and credit becomes available once more, tread slowly. There is no rush to apply for multiple cards or spend the balance you just finished paying down. Take each month one step at a time and rebuild your financial future with a strong foundation. Not only will you change your financial outlook but you will build better money management skills.

Keep A Payday Loan From Eating Your Cash

Have you used enough direct payday loans in the past to consider yourself addicted to them? You may not have the urge to apply for them every day, but when the going gets tough, is it programmed in you to automatically apply for a short-term loan? When people have poor credit scores and have received…

Have you used enough direct payday loans in the past to consider yourself addicted to them? You may not have the urge to apply for them every day, but when the going gets tough, is it programmed in you to automatically apply for a short-term loan? When people have poor credit scores and have received enough rejection letters from creditors, they tend to find an alternative source of help. Payday loans have helped millions of customers get out of a money crunch. If your budget is consistently short on cash, these loans must be used sparingly in order to avoid more problems.

Payday loan help is fast and convenient but comes at a price.

Every time a customer uses an online payday loan to help their finances, they are charged a fee. Interest is charged toward all borrowed money – some more so and others less. Payday loan online lenders process loans quickly and expect a full payment just as fast. Borrowers love the first part but struggle with the last. Coming up with a full payoff plus fees is easier said than done.

Full payoff is the exact reason why some borrowers became addicted to them. The expense of interest makes the loans tough to pay off. There are many people who use different payday loan lenders in order to pay off the old. It may take care of the problem for now, but in just a few short weeks you will be experiencing the same problems inflated.

First loan at a 25% interest rate – $ 300 loan with $ 75 in fees equals a full payoff of $ 375.

Second loan equates to $ 375 (to pay the first one off in full) with new fees $ 93.75 for a new payoff amount of $ 468.75.

At some point a lender will reject you loan application because your income does not support your request or because you need to have a break between loans. Some people may try to split the cost between two other lender and get charged double fees while others struggle to pay it off paying fees over and over again until the loan is paid off. What you have just read is a perfect reason to not use payday loans to resolve all money problems.

Smart borrowers will use a high interest loan when there is a payoff plan in place. Even if the loan has to be extended a few times the risk of default is minimal. What is paid in dollars towards fees for an online payday direct loan buys credit history relief from additional problems. It all balances out when done correctly. One of the best payment opportunities is a buy down. It beats taking out a new loan any day.

An initial loan for $ 300 with 25% interest demands a $ 375 payoff. Interest must be paid if nothing else which makes your next loan once again $ 375. If you are able to make a payment towards your principle, next term's fees will be less. Pay $ 75 in fees plus $ 50 toward the balance. The new payment will be $ 250 plus $ 62.50 in fees for a full balance of $ 312.50. You can at least see your debt shrinking with a light at the end of the trouble.

Be careful when choosing lenders! There are some predatory companies that will charge extra for extending, rolling over or buying down initial loans. You may see this cost in additional charges or even higher interest rates. Make sure you find out all terms and conditions before you sign with a lender. Smart financial decisions may deter you from using payday loans online because of convenience but rather a need to protect credit scores from getting out of control.