finance Archives - Serendipity Mommy

Choosing a Debt Relief Option

September 16, 2020 by Mandy

Being up to your neck in debt can be overwhelming. You might not know where to turn, or who to ask for advice. Worse, there are plenty of people out there just waiting to take advantage of someone desperate to get out of debt. However, there are things you can do to resolve the situation safely.

Here’s what you need to know when choosing a debt relief option.

Try Some At-Home Remedies

When you’re deep in debt and need to do something about it, there are a few approaches you can try on your own. One of the pros to this approach is you’re not going to have to pay anyone for services. The downside, however, is you’re going to be working through something you likely have never dealt with before. Meanwhile, a debt professional has likely seen your exact situation countless times.

Still, these DIY options are worth considering:

Credit Counseling:Talking to a free advisor about what you should do in your financial situation is the smartest way to start. Credit counseling organizations are typically non-profits aimed at helping consumers deal with financial obligations. They’ll help you create a budget, get your credit report, and they can also help you create a debt management plan.
Contacting Lenders: If a debt management plan doesn’t sound just right to you, it’s also possible to contact your lenders yourself to negotiate better terms. Often, they’ll be willing to work with you if you’re reasonable.
Balance Transfer: Another at-home approach is to do a credit card balance transfer. This is where you move the balances from your existing credit card accounts onto a new one with a low introductory rate. It’s important to do what you can to pay down that balance with no interest, as you can actually make your debt worse otherwise. There are also fees for doing a balance transfer.

Consolidation Loan

Debt management plans and balance transfers are consolidation loans in their own way. The idea behind a consolidation loan is you’re taking multiple existing accounts and rolling them into a single new one with a lower interest rate. This is typically effective for credit card debt consolidation because these are unsecured loans. Lenders will be willing to negotiate to get paid something since there’s no collateral on the loan.

Debt Settlement

Debt settlement is another form of debt relief that can help you if you’re stuck with your finances. Debt settlement is where an agreed upon payment is offered to lenders in exchange for settling a debt. It’s important to know that even though debt settlement can be effective, it’s not guaranteed.

Bankruptcy

Bankruptcy is usually considered the last option you should contemplate. Still, there were just over 740,000 non-business bankruptcy filings last year. While bankruptcy is more common than many realize, it’s not something you want to experience. Bankruptcy often leads to you having to liquidate many of your assets. It will also wreck your credit—making it difficult to borrow money for years to come.

On the other hand, there are times when bankruptcy is simply inevitable.

It’s tough to be in a spot where debt is running your life. The thought of it just finds its way into otherwise enjoyable situations. Taking care of debt through some form of debt relief can free your mind of this burden.

Tips To Get Approved For Instant Payday Loans Online

June 24, 2020 by Mandy

Navigating unexpected expenses can be challenging. However, payday loans, especially the instant ones online, surely come in handy in such situations. Those who want a loan for emergency purposes may benefit from payday loans. Payday loans are unsecured. They’re mainly available for individuals with low credit scores who are unable to borrow money from traditional banks.

The good thing is that many lenders offer payday loans online at the best interest rates. However, the basic borrowing requirements vary from one lender to another. Note, however, that knowing the differences in requirements can be the difference between approval and rejection of your loan. There are several things you can do that’ll help you ensure that your payday loan application is approved. The question is, how can someone get surely approved for instant payday loans online? Read on below to learn more.

Do Research

Researching for instant payday lenders online is the very first thing you must do. You’ll come across many lenders when you search the web. The top 10-20 results of your query are the ones you should give priority consideration. You can judge a lender’s authenticity by checking their website, home page, about us page, loan terms and conditions section, and, most importantly, testimonials from previous and present clients. Checking out and reading reviews can also be of great help. Get in touch with your prospective lenders once you’re okay with all these things.

Check Your Credit Rating

The credit rating is a barometer that shows how likely someone is to repay borrowed money. It’s a measure of your creditworthiness. By approving your loan application, lenders are taking much more of a risk if you have a low credit score.

A good credit rating will give you a better chance of securing credit. On the other hand, people with low or bad credit will have lower chances of getting their loan applications approved. Individuals with low or bad credit scores may have a poor credit history because of missed payments or may have no credit history at all. On the other hand, people with good credit ratings are those who have a history of repaying loans on time and in full.

It’s worth checking your credit file. It shows your borrowing history and credit applications. Ensure that the recorded information is accurate since any mistakes can affect your chances of getting approved for a loan.

How Do Instant Payday Lenders Online Take Credit Ratings Into Account?

Since your credit rating essentially records how badly or well you repay your loans, your borrowing activity in the past affects your credit score. It’s affected negatively if you’ve paid your loans late or completely failed to repay your loans and defaulted on them. If you’re looking at traditional bank loans, your credit rating is going to make it harder to get a loan.

However, not all lenders are the same in terms of how they see credit scores. Some reliable online lenders of instant loans in Canada or the US don’t need to perform credit checking to offer you a loan. What does that mean for you? Well, you can still get an instant payday loan online with bad credit history. You can also prevent your rating from further going down by allowing someone to run a credit check. Choose an instant payday lender that offers such convenience to borrowers.

Review The Lender’s Required Documents And Eligibility Criteria

It’s essential to note that instant payday lenders vary on the information they require from their customers and their application criteria. Usually, borrowers need to have a regular income, be a permanent resident of the state or country where the lender operates and be over 18 years old. Lenders also differ on the level of bad credit they’ll accept. However, some online lenders don’t run a credit check if the borrower can prove his income. Some lenders don’t accept discharged bankrupts, but others do.

To apply for an instant payday loan online, applicants generally need to provide the documents listed below:

A document that indicates whether they’ve taken out a loan in the past ninety days and whether the new loan will be used for paying off another loan.
A breakdown of their income and expenses.
Their employment details, which include whether they’re employed, the nature of their employment (part-time, full-time, etc.), and how long they’ve been working with their current employer.
Their Internet banking details to give online lenders access to a read-only copy of their banking history for the last ninety days.
Passport, driver’s license, or other documents to verify the identity.

Report Your Income Correctly

Fudging your income to increase your chances of getting approved for a loan is never a good idea. Don’t try to fool online lenders as they’ll find out that you’re lying. If that happens, you can get rejected for dishonesty even if you qualify for the loan.

Your lender also needs to assess its risk accurately when it comes to giving you a loan. You need to help them adjust your loan terms and amount to get you approved. So, that’s another reason for you to be honest when applying for an instant payday loan online.

Review Your Debt To Income Ratio

Before deciding how much you’re going to borrow, you need to look at your monthly income. Make sure to request the right amount of money for your loan by comparing it with your income each month. Of course, you don’t want to take a loan amount that’s less than or equal to your monthly income. If you get rejected, ask the lender whether lowering your requested amount can get your loan approved.

Complete The Online Application Form To Pass Fraud, Credit, And Identity Checks

A payday loan application form, unlike many other forms online, is often more detailed and longer. It makes sense since the lender wants to make sure that it can make a sound decision to approve or reject a loan application.

You may raise flags of concern if you take unnecessary shortcuts or don’t complete the entire application form. The last thing you want is for online lenders to reject your application because you’ve missed out on essential details.

Have A Good Reason To Apply For An Instant Payday Loan

What will you use the money for? Why do you need it? Note that some instant loan companies will want to know the purpose of your loan by asking these questions. While it’s true that online lenders are less likely to throw these questions to you than traditional financial institutions, they may still be something that you’ll have to answer. It’s always better to be prepared.

Some payday loans can be used only for covering temporary cash shortfalls or emergencies. Make your reason for borrowing money clear to the lender and show them that you’re confident of repaying the debt in time either by installment or as a one-time payment.

Payday Loan Tips

Here are things to keep in mind when taking an instant payday loan online:

Only Apply For What’s Needed

Understandably, you may want to buy a few luxury items despite having a difficult month. So, it may be tempting to apply for more funds than what you need. However, bear in mind that any extra borrowing can make the lender reject your application. In any type of loan, borrowers are more likely to be approved for a smaller amount.

It’s best to purchase cheaper food or just budget for a half tank of petrol instead of filling the tank right to the top. Try to reduce your spending anywhere that you can before deciding how much loan money you need.

You can increase your approval chance by applying for the smallest amount possible. Not to mention, you’re also going to pay less interest. Doing so helps put yourself in a stronger financial position over the next few months. Remember, the less loan you take, the easier it’ll be to repay.

Consider A Guarantor Loan

It’s normal to find lenders who won’t provide the funds you need because of an unsteady income or poor credit rating. You may want to turn to a payday lender that accepts a guarantor in these cases.

A payday loan that accepts a guarantor offers loans at a lower annual percentage interest rate to reflect the reduced risk involved. You may wish to ask one of your family members or a trusted friend to act as your guarantor. This will reduce your interest burden.

Because your loan will be backed by someone else, your chance of approval of the instant payday loan online will increase. Note, however, that your lender can seek repayment from your guarantor if you can’t afford to pay off your debt. Your guarantor will serve as a second opportunity for the lender to collect the money owed.

Conclusion

Instant payday loans online aren’t for everyone. However, if you’re in a financial bind, it’s one way to quickly get money in your bank account. If you’re in such a situation, you’ll want to ensure that your application gets approved. Following the tips in this post will help you get approved for instant payday loans online.

4 Ways of Financial Protection For A Growing Family

June 15, 2020 by Mandy

Money, like emotions, is something you must control to keep your life on the right track.” -Natasha Munson

Having a family is thrilling yet expensive. You have to pay for the clothing of your children, buy groceries, handle medical expenses and what not? As the family expands, so does the need for financial protection for a growing family. Making the right financial decision is something which will give you access to the funds that you want to keep for yourself and your family.

Check out some of the ways to improve family finances.

1. Plan and Invest

Planning and investment are one of the amazing ways to help your family grow in the best possible manner. If you’re really looking forward to the financial protection of a growing family, then you must definitely invest your money. Investing is more than building money. It is about putting aside money for your future use. With investments, you’ll always stay ahead of inflation.

2. Pay Off Your Debts Quickly

If you really want to avoid the charges from interest, you must pay off your debts as quickly as possible. For instance, someone with a $1,000 balance on the credit card which has a 15% interest rate will pay a total of around $1244.90, only if they make a $35 minimum salary per month. So, you must understand that paying a debt in a few months will definitely reduce additional expenses which are less than $20. You must put as much cash as you can towards credit cards, student loans, mortgages, car loans and other debts. Whenever possible, go for refinancing for a lower interest rate or use a low-interest loan which consolidates the multiple debts into one for easy payment.

3. Save For Retirement

With the savings from your retirement, you’ll be able to keep your family comfortable and happy, even when you’re not working. You’ll have all the money to spend on travel or spend time with your family and have fun. So, if your employer offers you a 401(k), you must take advantage of it. The company will always remove the amount you select from your paycheck each month and you’ll not have to pay taxes on that income until you’ve retired or started making withdrawals. There are many businesses that will even match some of your contributions. But, you’ll only have access to the funds that your employer adds within the certified amount of time that you work for them. You can also deduct your payments to an Individual Retirement Account(IRA) whenever you do the taxes. Like in a 401(k), you’ll not have to pay taxes until you start making the withdrawals. However, for both the type of accounts, you can easily pay a penalty if you start using the savings before the age of 59 and a half. However, there won’t be any charge if you’re paying for the medical expenses.

4. Teach Your Kids About Money

If you teach your children about money, they will be able to use that knowledge deeply to keep the finances in good shape for the rest of their lives. Whenever you go out shopping, you could teach your kids how to use coupons, incentives and discounts, comparing prices and waiting to go for wholesale purchases. This will teach them how to spend money carefully. There are many people who pay their kids for chores like vacuuming or mowing the lawn. This way, they encourage their children to save for the things they want, like a new video game or a toy. You can also help your kids open up a savings account and let them contribute. This will teach them a lot about financial savings.

By choosing options like paying off debts, good car insurance, hiring a financial advisor in Birmingham, saving for the retirement plan and teaching your kids, you can easily improve the family finances. Making the correct choices will always help you and your loved ones will always have the money at the time of difficulties.

Happy Financing!

3 Ways to Reduce the Cost of Sending Your Kid to College

April 24, 2020 by Mandy

The day that your son or daughter is accepted to the university of their dreams is a proud day for you as a parent. Unfortunately, though, it is also the start of the stressful process of trying to find the funding required to send your kid to college. From rising tuition costs to room and board, there are so many things that contribute to the overall cost of attending a four-year university these days.

While at first glance, you might be wondering how you are going to afford to help your child earn their college degree, there are certainly plenty of options out there that can help reduce these costs. Here are three ways that you might be able to cut down the expenses associated with college.

1. Scholarships

Scholarships are probably the most popular route to take when it comes to finding funding for further education. There are a lot of different scholarships out there that range in the amount you can receive to cover part of your college funding or even the full cost of tuition. The key is to find the right scholarships for the university your child hopes to attend, and then apply to as many as possible.

For instance, if your child wishes to go to college in Ohio, you need to find scholarships in Ohio specifically. You can visit CampusReel to find out more about this. Some federal scholarships might be applicable to universities all over the country, while others will only be available for use locally. No matter which scholarships your child wants to apply for, make sure that they start applying early so that they can increase their chances of receiving as much additional funding as possible.

2. Shop Around

Some students dream of attending a particular university and are not willing to compromise that dream. While there is nothing wrong with this concept in general, it is important to highlight to your child that some universities are far more affordable than others.

Take into account the difference between attending college in your home state instead of going out of state. There is a significant difference between in-state tuition and out-of-state tuition. If your child is willing to attend a university closer to home, then you could stand to save a significant amount if they continue to live at home.

Furthermore, the cost of attending a private university is far greater than that of a state school. While private schools can be more prestigious, an education from a state university can be just as valuable for a fraction of the cost.

3. Start Small

While attending a four-year university is the goal of most students, you and your child might consider the option of taking a year or two at a community college first and then transferring to a major university. There are core classes that all college students must complete in the pursuit of a degree. Often, these classes can be taken at a community college for a considerably lower cost compared to the tuition at a large university, and then those credits can transfer over to a university.

Planning for Retirement as a Single Income Working Woman

March 26, 2020 by Mandy

We’ve all heard about the gender wage gap. But what about the retirement gap? We contribute $1,331 to our retirement accounts every year.

That’s only half as much as men. And since we have more golden years to look forward to, we ladies need some extra gold to get by. That’s why it’s never too late to start planning for retirement if you’re a working woman.

Irrespective of whether you are married or single, retirement planning helps you attain a secured life at old age. You can easily save money on grocery shopping, while dining out at restaurants and by adopting some of the very unusual ways. This money could be saved for your post retirement life.

Keep those gray hairs at bay and stop worrying. Retirement planning is easy. Here’s how.

1. Demand Your Fair Share

The more you make, the more you save. But that’s more difficult for women, seeing as we make 20% less than men in the same occupation.

Don’t be afraid to head to the negotiation table and demand the salary you deserve. Make a strong case for yourself based on your accomplishments at the company.

The worst thing you’ll hear is “no.”

2. Follow a Budget

Without a budget, you’re leaving retirement savings to chance. You don’t have to.

Plenty of budget apps and programs are available, but there’s nothing wrong with an Excel worksheet. Track your monthly income after taxes as well as all expenses.

Now you’re ready to set yourself up for success. As a rule of thumb, 10% of your monthly income should go towards a savings account. Struggling to reach that number?

That’s why you should budget. You’ll discover categories where you spend far more than you should. By trimming these discretionary expenses, such as fast food or streaming services, you can funnel the money Into your savings allocation instead.

3. Invest, Invest, Invest

Albert Einstein called compound interest the 8th wonder of the world. The concept is simple. The interest you earn becomes part of the principal balance, and then also earns interest.

In short, it’s the interest you earn on previous interest payments.

Neither men nor women will find success trying to shore up retirement savings without investing. Compound interest is an essential part of the equation. And the sooner you start, the more time you have to earn compound interest.

Your employer’s 401K plan should be your main focus, especially if they match your payments. But few businesses still offer these plans. Instead, open your own individual retirement account and start saving.

4. Calculate Your Retirement Needs

During retirement, financial pundits suggest you shave off about one-third of your current expenses. That means your retirement savings need to cover 70% of what you’re making now. Have enough?

That’s the question. Remember that in addition to your retirement savings accounts and investments, you’ll also gain Social Security payments. Since women are paid less than men, these tend to be less than you may think.

Wherever you are in your journey to retirement, check out this retirement calculator to see where you stand.

Retirement Planning for the Working Woman

It’s true that a working woman faces more financial challenges compared to the working man. But we have to take retirement planning seriously, even if it’s unfair. If you start early and keep this advice close to heart, comfortable retirement is not only possible — it’s easy.

As a working mom, you know money can get tight. Check out my finance section for more financial help.