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Author: Edward

Do You Have A Buffer Account?

Do You Have A Buffer Account?

A buffer account is a savings account that is a place to collect money “just in case.” Your buffer account is literally your buffer between you and payday cash advances or cash loans in an emergency. When the economy is bad, especially, having savings can help you avoid bankruptcy, foreclosure, and excessive reliance on personal loans.

If you lose your job, your buffer account may replace your income until you find new employment, so it is important to make your buffer account as generous as possible. Try to put 10% of your monthly income into your buffer account. Consider your buffer account as a type of insurance. You pay into it now so you are protected in the future. Try to have at least six months of income in your buffer account. If you have plenty of debt, try to have even more in your account. Even if you lose your job, you will still need to make payments on your personal loans, so you will need cash for this as well.…

What are off the books loans?

What are off the books loans?

Off the books loans are any loans which do not show up on your credit report. Generally, most types of loans do show up on your credit score. This way, potential lenders can see how much debt you have, how reliable you are in making payments on that debt, and how much of a credit risk you make. Your credit card debts, personal loans, mortgage, car loans, and other personal loans are all listed on your credit report and reflected in your credit score. Generally, if you have a lot of debt, your credit score is a little lower.

However, there are some types of loans which are not listed on your credit report. If you borrow from friends and family, for example, this is not listed on your credit report. Certain types of hard money loans from private lenders are not listed on your credit report. In some cases, these types of loans may have higher interest rates or other disadvantages, but there are some advantages to getting off the books loans, too. These loans will not affect your credit score, so if you need to apply for multiple loans (to start a business, for example), off the books loans can help you get all the financing you need. If you are trying to repair your credit and need to borrow money, these loans will not pull down your credit more.…

Avoiding Repossession

Avoiding Repossession

When you take out a secured loan, you are using an asset as collateral. For example, with a mortgage, your home is collateral. With a car loan, the car you are purchasing is used as collateral. Collateral is an extra bit of reassurance for the lender that you will pay your loan. This is because when a borrower defaults on a secured loan, the lender can legally repossess the property being used as collateral and even resell it to earn back the money lost on the unpaid loan.

There are many ways to avoid repossession. The first, of course, is not to take out too many personal loans. The more loans you have, the harder it will be to repay all of them and the more vulnerable you will be if you suddenly cannot work. Next, make sure that you read the terms of the loans you do have. What sorts of penalties are there on non-payment?

If you do get behind with paying your loans, you will need to act fast to avoid repossession. As soon as you know you will be late with a personal loan payment, contact your lender. Try to work out a repayment schedule. If your loans are simply too unaffordable, consider refinancing your loans or reselling your assets. Remember: if your property is repossessed, you will get no cash for it. You may as well save your credit score and get money for your property by selling it if it is no longer affordable.…

Paying Your Initial Deposit Costs When Renting a Home

Paying Your Initial Deposit Costs When Renting a Home

If you decide to rent an apartment or house, you’ll need to find the cash for a deposit on your new home. Many landlords charge first and last month’s rent, but in very competitive rental markets, some landlords charge up to three month’s rent as a deposit (first month’s rent, last month’s rent, and one month’s rent as a damage deposit. If you are moving, you might have moving expenses to consider. Some utility companies may be charging hook-up fees as well, so finding the money for three months of rent can be challenging.

Hopefully, you have the cash for the security deposit in an emergency fund. You may also have the damage deposit returned to you from your previous rental, which you can put towards your new apartment. If you are moving, you should have a garage sale to clear out everything you don’t need. This will help you raise funds for the move and will help you avoid larger moving fees, too. Try to defray your moving expenses as much as possible. This way, even if you have to borrow to get the money for your security deposit, at least you’ll have to borrow less.…

What to do if you owe money on medical bills

What to do if you owe money on medical bills

Owing money on medical bills can be stressful and can ruin your credit rating. In some cases, health care facilities even go to court to recover unpaid bills. Unfortunately, many patients who are covered under insurance may still end up owing hundreds or even thousands of dollars in uncovered medicine and treatments. If you owe money, there are several things you can do.

Check to see what is and what is not covered. Read the fine print on your medical insurance carefully and check with your employer to see whether you are covered for anything. Check your homeowner’s coverage and any other insurance you have to see whether your expenses may be defrayed in any way.

Talk to an expert. There are many charitable organizations across the country committed to providing reasonable care and coverage. Find such an association in your phone book and see whether any of your expenses might be covered through some other means. Also, contact your hospital to see whether there are any forgiveness programs. Some hospitals forgive part of some hospital bills, based on patient income.

Pay your medical bills monthly. Contact the billing department of your hospital or clinic and see whether you can develop a repayment plan that allows you to make affordable monthly payments until your debt is repaid. Many hospitals are willing to do this.

Take out a personal loan. If nothing else works, you may need to take out a loan to pay your medical bills and slowly repay the loan.…