You Have Just Got To Bear Down
On your next payday when you repay the loan, you get the check back. If you can’t repay the loan on the next payday, the lender rolls over the loan until the following payday in exchange for your paying the lender another fee, which will probably be higher than the first fee. Over time, if you keep rolling over the loan and paying higher fees, the cost of the loan skyrockets and you have a harder time paying it off.
Some states have payday loan laws. Contact a consumer law attorney or your
state attorney general’s office to find out if your state has such a law and what your rights are.
- Pawnshop loan: This is a short-term loan (no more than three months, in most states) with a very high interest rate. With this kind of loan, you give the pawnshop an item that you own, such as a TV, DVD player, piece of jewelry, or computer. The pawnshop lends you a percentage of the item’s value. At the end of the loan period, if you cannot afford to pay the loan plus interest, the pawnshop keeps your item and sells it.
- Tax refund loan: Also known as a tax anticipation loan or an instant refund loan, this kind of loan involves borrowing against your future IRS tax refund. Some tax preparers, as well as finance companies, car lenders, retailers, and check-cashing companies, make this kind of loan. Usually the loan will be for no more than $5,000, and it will last for no more than ten days. In addition to having to pay a very high rate of interest on the loan, you must pay the lender an upfront fee, and you must file your tax return electronically to the tune of about $40. So when you consider the loan’s interest rate plus the fees involved, the effective rate of interest you pay to borrow against your own money may be in the triple digits. When the IRS issues your tax refund, it deposits the money directly into an account set up by the lender, who takes its money and gives you the rest.
- Car title loan: If you own your car free and clear, some lenders will make you a loan for a small fraction of what your car is worth. Usually the loan will be for no more than 30 days and will have a very high rate of interest. To get the loan, you must give the lender the title to your vehicle and a set of car keys. The major danger with this kind of loan is that if you miss a loan payment, you risk losing your car. Depending on the loan agreement, one missed payment may be all it takes.
Categories: Credit, Finance, Loan, Money Tags: You Have Just Got To Bear Down
Steeling Your Resolve
Now comes the hard part: living according to your budget. Having a budget is meaningless if you and your family aren’t going to stick to it. Sticking to your budget won’t be easy, but keep your eye on the prizes: less financial stress, fewer debts, less damage to your credit history, and (eventually) more money to spend the way you want.
As you go through each month, be mindful of every dollar you spend, every check you write, and every time you use your debit card or go to an ATM machine.
Cut up your credit cards, or use them only in emergencies. Refer to your udget regularly to make sure you’re staying on track. If you find that you have overspent in one area, try to compensate by reducing in another area.
If your kids ask for things that you haven’t budgeted for, remind them why your family is trying to spend less. If they’re older, maybe they can earn the money they need for what they want.
Carry a small notebook or some other small record-keeping device with you for writing down everything you purchase with cash, a debit card, or a credit card each day. Keep all your receipts as well. You’ll need this information at the end of each month when it’s time to evaluate how well you’re doing.
Categories: Extra Money, Finance, Money, Service Tags: Steeling Your Resolve
Sign On The Dotted Line
Few home buyers are really in the market for fixer-uppers, or houses that need work. Most people want to move right in and enjoy the benefits of their new house without immediately needing to dive in with repairs and elbow grease. But if you want to own your own house and you’re willing to do a little work, a fixer-upper can be just the ticket you’ve been looking for. The competition for these homes is low, giving you time to assess whether the amount of work needed is worth the overall savings.
The ideal fixer-upper requires minimum work, has been on the market for some time, and is being sold at a substantial savings. You can often find fixeruppers that have been on the market for six months to a year and are being sold for 20 to 30 percent off the market price. Sometimes just a fresh coat of paint, some new windows, or aluminum siding can make a forlorn home dynamite.
An older home with avocado green appliances, gold carpets, chipped paint, and out-of-date flooring can be a real eyesore, but if you look beyond the surface, you may find that cosmetic problems can be easy and cheap to fix.
Major renovations like a new roof or foundation repairs are expensive and don’t usually give a good return on the monetary investment when you resell.
If you’re thinking of eventually reselling the fixer-upper for a profit, the most profitable repairs are the simple ones like adding new wall-to-wall carpeting, painting the house inside and out, replacing kitchen cabinet doors, landscaping, adding new lighting fixtures, and installing up-to-date appliances (new refrigerator, range, dishwasher, and built-in microwave oven).
Always have a fixer-upper carefully inspected before you sign on the dotted line.
Categories: Business, Finance, Investment, Service Tags: Sign On The Dotted Line
