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(277)The Truth Behind Auto Finance

 

  
So you have decided to buy that long awaited new car, or perhaps for the less luxurious person, a second hand car. The budget is tight but you have done your calculations and know that it would be cheaper to buy the car than to constantly use public transport. Life would be easier and better once your dream car is in your garage.
The next logical step is to get financing. You have researched and weighed the options between taking out a loan and getting auto finance.
The question is - what is auto finance and how can you guarantee that it will not have adverse affects on your personal budget?
Auto finance is traditionally financing that you get from a car dealer. It is often said to be cheaper than getting a bank loan. The interest rates on bank loans can get higher than those obtained from an auto-financing dealer. There are many car dealers who will readily assist you in getting the right kind of financing for your car.
The rates are competitive, as each dealer wants to get as many cars sold as possible. Nowadays even if you have immense amount of debt or have filed for bankruptcy you can still be eligible to obtain auto finance for your car. Auto finance works the same way bank loans do. It is, after-all, a loan that you are taking from the car dealer.
Indeed, purchasing a car cannot get any easier than this.
Technology, however, has also made it possible for individuals to get loans for auto finance using non-conventional methods, such as the Internet. Here you do not need to go to a dealer to get an e-loan. You can normally apply over the Internet and get approved within as little as 15 minutes, some companies claim.
All in all it depends on whether or not you want to pay the instalments every month. Remember to read the fine print; it can save you from making a $10,000 mistake. Buying a car is a big decision, which will have an impact on your personal finances, so you need to be wise. Check out companies until you find one that will best suit your needs, whether it be online or at a local car dealership.
About the Author
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Written by: Sarah Thomas


(278)the truth behind your FINANCES!

 


Between 15 - 20% of people in our country own there own businesses. This statistic is on the rise thanks to the incredible invention of the Internet. The staggering truth is that of these only 5% are genuinely financially free! You may well see lots of expensive cars driving on our roads and big houses inhabited by the seemingly wealthy, but these houses and cars are not yet paid for.

Never in our history has it been so easy to lend money. Banks and building societies are falling over backwards to lend us money. You can sign your life away to a 50-year mortgage these days if you choose! Banks and building societies are offering 125% mortgages to first time buyers and business is looking outwardly great.

The credit card companies also love today’s economy. You can borrow enough money on a credit card nowadays to buy a brand-new car! The loan companies are also cashing in on ignorant and naive individuals and this really concerns me. The advertisement marketplace is going wild on media adverts for consolidation loans. You know the type? “We will help you to consolidate all of your existing loans into one affordable monthly payment” They call this type of loan a HOME OWNERS loan. Yes you can consolidate all of your existing debts into one affordable monthly loan, but what do you call affordable? People are consolidating their present debts into one huge debt and loaning the money to repay this new debt. To actually repay this debt in full will take these people years. What’s more they’ve secured this loan on their one and only ASSET - their HOME!

These unfortunate people aren’t thinking about the future and their long-term future plans, they’re thinking about the immediate and present situation. In the meantime what happens when the interest rates begin to rise? The interest rates on a consolidation loan will take years to pay off and whilst you owe money to your lender you’re not secure at all because your consolidation loan is secured on your home.

What does this mean?

If you cannot pay your loan the Loan Company will TAKE YOUR HOME as payment!

The reason it is so easy to lend money at present is because the interest rates are so low. At the time of writing this web page our present government has set the base rate of lending so low that people are dangerously getting themselves into debt through their own ignorance towards the economy. What is really happening will become all too apparent in the next few years when the tide turns and the interest rates begins to rise sharply. If you’re not financially free or in control of your assets when the tide turns you will lose everything. History always repeats itself and sooner or later a recession will hit the world trading markets and all of those people who borrowed huge amounts of money to buy their big house and their BMW or Mercedes will be in big financial trouble.

Wait, it gets worse!

SHOCK – HORROR!
Once the tide turns the interest rates will saw and if you’re not secure your financial world will come crashing down. The mistake that people have made is to foolishly believe that their loan rates will remain the same, they won’t. Let me explain in simple terms to you my theory by giving to you a simple example:

If you have a current ‘interest only’ mortgage of say £100k and the interest rate applied is £5% your monthly payment will increase with the interest rate. What happens if the interest rate climbs to 10%? Your mortgage could double. In 1989 the interest rate sawed to 15%. If this happens (and it could) your present mortgage payments could treble! How will you survive financially?

Your mortgage payments could increase by 300% inside 12 months and any other loans you may have will also require payment. If your wage doesn’t allow sufficient funds to meet these demands than you will lose everything slowly and painfully. When the interest rates do begin to rise (and they will) the debt consolidation companies will cash in on you. Before you know it you could owe money for the rest of your life and if you can’t pay what you owe than your lender will take your car your home and the clothes off your back to meet their demands.

SO WHAT’S THE ANSWER?
My advice to you is to pay off your existing debts as quickly as possible. If you are driving around in a car that is financed by a finance company pay this loan off as quickly as possible. Contact the finance company and ask them for a final settlement figure. This way you’ll know exactly how much debt you’re in. If you can afford to settle your finance early than take advantage of this and settle immediately. This way you’ll own your car outright, you’ll have paid less in interest and you’ll have some equity if you need it. If you can’t afford to settle the finance at the present than check what interest rate you are currently paying and search around on the Internet or in the high street for a lower rate of interest. Whatever you do, don’t delay in taking control of your finances today.

Another mistake people make is to fall into the trap of ‘false economy’. They begin with the right intentions by searching for a lower rate of interest for their mortgage. What this means is that their monthly payments become lower. The mistake they make is to think they’ve got more money in their pocket. In affect this is a false economy. Instead of settling for more money in your pocket and still enduring a 10 year (or whatever) term loan ,why not use this extra money to increase payment on the capital of your loan?

This simple technique is called ‘Mortgage Acceleration’ The Banks and Building Societies know all about Mortgage Acceleration they just don’t mention it because it loses them lots of money in interest payments!

If you increase the capital payments of your mortgage every month you’re paying off the entire loan quicker. If you can shave 2 years off your loan you’ve not only shortened your mortgage by 2 years you’ll have saved yourself a packet in interest charges. A 25-year £50k mortgage repaid 16 years early could save you over £60k in interest! (dependant on the interest rate) Ask your Bank or Building Society about ‘Mortgage Acceleration’ and see the look of loss on their face!

Don’t settle for a lower rate of interest and extend your loan payments thinking that you’re saving money, you’re not. You are only extending your debt! You need to pay off this loan as quickly as possible whilst the interest rates are low. The longer you take to pay off your mortgage the more interest rate the Bank or Building Society will take from you. Whilst the interest rate is currently around 5% accelerate payment NOW and save even more money! Take advantage of the fact that if the interest rates are currently low than the amount of interest that you pay on top of your loan will be also low. If you can afford to increase payment whilst the rates of interest are low than I urge you take advantage of this immediately. If there is any way that you can accelerate your loan and pay it off early than I would strongly advise you to begin your financial organisation here and organise this today. A simple increase of £50 per month in mortgage payments will save you money in interest payments in the long run. Your first step to taking control of your financial world is to pay off all of your existing debts as quickly as possible. When you have no debts, you’ll be financially free and you’ll feel as if a huge weight has been lifted from your shoulders.

POSITIVE PLAN OF ACTION:

Contact the bank or building society that you have your mortgage with. Ask for a final settlement figure on your mortgage and also enquire into the current interest rate that you are paying. Chances are that if you’ve not checked the interest rate you are currently paying in the past 12 months than you could save yourself money immediately by choosing a better deal. There are currently plenty of lenders all willing to offer you competitive deals on your mortgage and I would advise you to check them all out before you commit yourself to one. A simple saving of 1% in interest can save you pounds every month. With this saving in interest payments, use this extra money to increase your capital payments. If you only manage to shave a year off the length of your mortgage it will be one less year that you are in debt and one year sooner to becoming financially independent.

Talking of your mortgage, if you currently have an Endowment policy running alongside your mortgage than investigate this policy thoroughly. Most endowment policies are useless in today’s interest market. What this means is that when your mortgage term ends there may be insufficient funds in your endowment policy to pay off what you owe to the lender. If this is true than your lender will be knocking on your door for this short fall. If you can’t afford to pay than you could lose your home after 25 years or more of payments! Recently I read that some Endowment policies were running a short fall of up to £13000! If this happens to you you’ll owe your lender £13k plus interest!

The smartest mortgage you can take is a straight ‘repayment’ mortgage. As well as paying the interest back to your lender you are also paying the capital off from the offset, therefore reducing the total amount you owe quicker. My advice is to accelerate your mortgage and pay it off as quickly as possible before the interest rates sky rocket and your payment doubles or even trebles. When the tide turns (and it will) you’ll be smiling in the content that you own your home and you own your car and nothing can take these away from you.

--------------------------------------------------------------------------------

These ideas have been taken from Jay Ball’s brilliant ’10 simple seeds to success’ 334 page paperback book, 12- hour CD course, and 334-page e-book.

About the Author
Jay Ball is a recognised Success Mentor in the UK. His visions and inspirations have helped many accomplish amazing results. Jay Ball is the author of '10 simple seeds to success' and 'Believe & Achieve' Check out his website and download over 8 hours of FREE self-development seminars! www.successacademy.co.uk

Written by: Jay Ball


(279)The World is Not Enough - Calling for a More Ethical Approach to Personal Finance

 


At a time when the entire world’s attention is focused on the problems of world debt, with the Live 8 concerts, the G8 summit in Scotland, the Make Poverty History Campaign (MPH) and the various anti-poverty marches, it seems that everyone wants the world’s governments to behave more ethically towards the manner in which international finance is conducted. This is obviously a laudable attitude to take, and has gained immense momentum with such a groundswell of public opinion that even the UK Chancellor, Gordon Brown, has stated he is planning to participate in the Make Poverty History demonstration in Edinburgh during the G8 summit.
Mr Brown has urged world leaders to follow up their decision on debt cancellation for the poorest countries with a doubling of aid and fairer trade rules.
The Chancellor said, "This is a day for the people not for politicians. It is the people's voice that must be heard."
Whilst the support from such a prominent member of the British cabinet with his accompanying statements that the world was "angry" and "outraged" over the poverty in Africa, which has continued despite repeated past pledges from the richer nations, has been welcomed by many who believe that the various organised events could have an influence on the leaders who attended the summit, others see his words as hypocrisy.
Human rights lawyer, Aamar Anwar, said "Mr Brown, along with Tony Blair and George Bush, are the people who are responsible for poverty and starvation around the world…The G8 is proposing spending £30bn on the alleviation of poverty…It sounds like a lot but it is absolute peanuts when it is compared to the £280bn that was made available for the war in Iraq."
The trouble is that although there has been much talking and finger pointing at the rich and powerful Governments of the world, with claims that the way they are running international finances does not stand up to moral scrutiny, how many people can genuinely look at their own finances and state that they themselves are doing everything they can to help, and that they are ethically above reproach? Does their bank or building society lend their savings to companies who are involved in activities that can range from weapons manufacturing, gambling, pornography, tobacco, scientific animal testing to child labour, or do they instead direct their investment towards activities which have a positive social and/or ecological impact?
Most people do not think about where their money is being invested, when they pay into a mortgage, pension or savings account, they just think about the return they will get on their money. This does appear to be changing however.
Following consultation with its members, the Co-operative Insurance Society, which has more than £20 billion of funds under management, has become the first insurer to launch an ethical engagement policy and said it would lobby businesses at every opportunity to improve their ethical performances. The Co-op already tries to ensure ethical compliance by making new business customers fill out an Ethical Policies questionnaire, which is assessed by the bank before agreeing to provide business services.
Financial comparison sites such as Moneynet are now releasing guides providing information on ethical investment covering all aspects of personal finance from bank accounts, investments and pensions to choices of domestic energy providers.
Other organisations such as the Ethical Investment Research Service have been set up to provide information into companies' ethical behaviour for independent investors, fund managers and charities alike.
The world is gradually waking up to the idea that responsibility needs to be taken for our actions, whether those actions are at the global, national or individual level. Lobbying of politicians and the interest that has been engendered by the Live 8, and MPH campaigns can help to make a change, but these need to be continued beyond the present media furore if we are to make a real change. An ethically responsible nation is only possible if we also make changes on our own doorstep. Until we really get our personal finance into perspective, the MPH becomes just another fashion label.

Released by http://www.bigmouthmedia.com


About the Author
Richard works in Edinburgh for http://www.bigmouthmedia.com, occasionally writing for the personal finance blog Cashzilla, and drinking too much coffee.

Written by: Richard Green


(280)The Wright Place- Finances

 

  Women have a love/hate relationship with money. Most of us do not enjoy dealing with it, yet we know not having finances under control will cause our entire family to suffer.

A recent guest on the show Karen Franks, explained how important your credit is and how you should check on it often. ‘At least twice a year”, says Karen Franks. Checking our credit is one important proactive way we can make sure we are in good financial shape. She also mentioned that many married women have better credit score than their husbands, even if they do not make as much. When another show guest, Dan Contreras talked about financial planning, he stressed using a professional. ‘Don’t rely on hearsay, get some real understanding about your situation.” And Linda Hollander the author or Bags to Riches says “Mentors are the fast track to success”. Find someone who has reached the same financial goals you want to reach and then do what they did. This simple technique works even if your goals are modest. While everyone’s situation is different, I really just want to motivate you to do something to have a positive effect on your finances. Here are a few simple things you can do that will start the ball rolling.

1. Get a copy of your credit report and check it for errors( free if you have been turned down for credit)

2. Look at your savings plan, are you on track, do you need to increase or decrease the amounts you are trying to save?

3. Look for your insurance policies, be able to get them immediately, know exactly where they are.

4. Start some financial education with your children. Start a student saving account.

5. Start planning next year’s financial goals. What do you want to change, what goals do you want to accomplish, what new accounts do you need to open and which accounts should be closed.
DonkeyMails.com: No Minimum Payout
If you handle your finances you’ll be in The Wright Place!

Dr. Letitia S. Wright, D.C. is the host of The Wright Place™ TV Show, a talk show for women, which can been seen on dish or direct TV channel KHIZ on Sundays at 6:30 PM, or seen on the Internet at www.wrightplacetv.com or cable television channels in your area. She can be reached at info@wrightplacetv.com or 909-635-2040 for questions, comments or interviews.
Written by: Dr. Letitia S. Wright, D.C.


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