Savings. Pay yourself first. Start now stashing 10% of your income in an Emergency savings. Dont use it for anything but real emergencies. Keep a For Sure savings account for yearly expenses you know are coming and you can estimate (e.g. Christmas, insurance, taxes, etc.). Also have a Buy Stuff account. If you do, youll be able to avoid many financial disasters which will face you, and you can avoid borrowing money from high-rate lenders.

Borrowing. Dont borrow money unless you are willing and able to pay it back. Failure to pay debts on time causes severe financial, emotional, and family problems. Experts recommend you dont borrow for wants, only for needs, or for things that increase in value. Many lenders will loan you money you cant afford to pay back, especially high-rate lenders.

Co-signing. Dont co-sign on a loan unless you are willing and able to pay it back. Often, co-signers end up paying off loans they are unprepared for, and financial hardships follow. Numerous co-signors now have negative credit ratings because a primary borrower paid late. Many lenders do not notify the co-signor before reporting delinquencies or repossessions to the credit bureau.

Compare. Before you decide who to borrow from, compare! Find out who is offering the best deal at that time look for the loan with the lowest rate (APR).

APR. The Annual Percentage Rate (APR). It is the standard rate, so we may compare the cost of borrowing. It is the cost of credit expressed as a yearly rate. When you borrow, always beat 13% APR (consider 13 to be unlucky when it comes to borrowing). Some have been illegally stating other rates such as weekly or monthly rates. Compare APR to APR. If you pay your bills on time, and you arent over-extended, you can nearly always find loans or financing arrangements at rates lower than 13%. Beware though, because beating 13% does not always mean you are getting a good deal. For instance: the difference in total interest paid on an 11% versus an 8% 30-year, $100,000 mortgage loan is $64,283 (assuming all payments are made as agreed).

Consolidation Loans. A consolidation loan can result in great savings to borrowers if the new interest rate is significantly lower, and if you dont run-up debt similar to what was just consolidated. But beware, because consolidation loans usually result in substantially more money out of your pocket into the lenders. For instance, mortgage loans usually involve closing costs. They increase the total debt. Many refinances involve reducing the monthly payment, but increasing the length of payback, which substantially increases the total interest paid. Borrowers, who refinance unsecured debt (e.g. credit cards) into a home mortgage, also increase their risk of losing their homes. Also, remember to keep all of your payments current until the old debt is paid off. Too many people have damaged credit ratings, and are in bad financial condition because they counted on money which didnt come when they expected it. Expect delays when applying for loans, especially consolidation loans. Dont spend money before you get it.

Desperation. Dont get desperate for money. The more desperate you are, the less likely you are to get a good loan.

Auto insurance. Keep your auto insurance current. If you fail to keep your insurance up-to-date, you could end up making loan payments for years after your car has been totaled.

Establish good credit. To avoid bad credit, don’t borrow too much, and do pay your bills on time. Inexpensive ways to establish good credit: (1) Obtain a good credit card. When you charge things, pay off the balance each month on time and pay no interest. (2) Establish a revolving line of credit (an empty loan) as an overdraft protection against bounced checks, and dont use it as a loan. (3) Get a loan to buy a car, or furniture, or etc.) and pay it off within a few months.

Late fees. To avoid late fees (which multiply the cost of borrowing), pay early, or at least on time.

Repossessions. To avoid repossessions and associated fees, pay early or on time, and keep your insurance current.

Extra principal less interest. To pay less interest on loans, pay more than the minimum required payment. Even small amounts of extra principal, can significantly reduce the total amount of interest you would otherwise pay over the life of the loan. Before doing this, however, make sure your lender accepts extra principal payments, and find out what particular procedure you need to follow to ensure your extra principal is properly applied.

Bi-weekly payments. If you get paid weekly, or every other week, paying bi-weekly is a very convenient (almost painless) way to reduce your loan term and interest. For instance, if you make of your required monthly payment every 14 days (a bi-weekly period), you pay the equivalent of 13.052 payments in an average year. If you dont get paid bi-weekly, or if your lender doesnt like biweekly payments, you can pay the equivalent amount in monthly installments. If you pay 1/12 of the sum of 13.05 payments each month, you will match the bi-weekly advantage (minor rounding differences).

Contrary to popular belief, the frequency of paying payments bi-weekly doesnt accomplish much, the real advantage is paying the extra principal (13.05 payments, or more, each year) which reduces the term and the interest paid. If you are considering signing up for a bi-weekly program, pay close attention to the cost. Some servicers have large set-up fees and transaction fees. Also consider the credibility of any company handling your money, some have diverted payments into their own pockets, leaving borrowers to make payments twice (once to a corrupt servicer, and a second time directly to the lender).

Lending a Hand: How to Help Family financially but not get taken advantage of

It is the nature of family to love and protect each other but how does that transfer to the financial realm? Is your family obligated to help you with your financial debts? Are you obligated to help a family member who is overwhelmed with mortgage payments or saddled with massive credit card debt? Though the answer to both of these questions is probably no, it is a much more complicated than a simple yes or no answer. You and your family are not obligated to help each other with financial problems, but most people would like to help their loved ones with a crisis if it is within their means to do so.

When you face financial problems, it is probably tempting to turn to family first, rather than face the impersonality of a bank or other lending institution. But do family and finances really mix? Financial debts to family members can complicate even the best relationships and in extreme situations it can result in nasty arguments and the severing of familial bonds. Some of the most common arguments families have are over money. On the other hand, borrowing money from family and having that security can ease the stress of any financial crisis. If family members have the money you need in their savings account and are willing to lend it to you, then why not pay the interest to them instead of the bank?

Right from the start, you need to be realistic about your financial situation. As the person looking to borrow money, you should ensure that you have cut back on non-essential expenses and have exhausted all the possibilities before approaching family members for money. As the lender, you must also take a close look at your financial situation and make sure you have the money to offer to your family member. If it is not within your means to help them, then you must say so. There is no point both of you going into debt just because you have the desire rather than the means to honor the request for money. It is hard to say no to family, but sometimes it is necessary.

Where most families go wrong with lending to one another is a failure to establish firm guidelines and rules. You need to be very clear from the start whether this is a gift or a loan. If you give money without specifying which it is (a gift or a loan), then the other person may just assume it is a gift. If you need the money back down the road, he or she may not have the means to repay it, because there was no understanding at the start that the money would have to be repaid at some point. Even though you are dealing with your mother or father or your daughter or your son, you still need to treat the arrangement as you bank or lending agency would. You need to write down the amount being lent and the agreement you have made concerning the amount to be paid back and the amount of time that repayment will take. Writing it down will solidify the arrangement and ensure that no one is taken advantage of.

You and your family should agree on a reasonable interest rate and you should also consider arranging monthly payments (as you would with the bank or other lending institution). It is better to pay the money back gradually over time rather than try to gather one lump sum.

If you are the one borrowing money, you need to make sure that they money is used only for the thing it was lent to you for. If you have borrowed money for the down payment of your house, then all of that money needs to be put into the home, not a new pair of shoes or vacation to the Bahamas. Problems arise when family members think that they money they have lent is being misspent or mismanaged.

As you can see, family and finances can mix if you take a few precautions and clearly outline the expectations on both sides. It is worth putting in the extra effort to prevent uncomfortable holiday dinner scenes.

A bad credit report can be an obstacle in the way of securing credit, obtaining a lease, and even being offered a desirable job. Since a credit report is designed to be an accurate depiction of a persons credit and payment history, most creditors consider credit reports to be good ways to judge an applicants aptitude for prompt payments. Many consumers find themselves at one time or another in need of some credit repair so they can secure the credit they need.

There are laws in place that define what credit reporting agencies can list on a credit report, how long the items can stay on the report, and who has access to the reports. These same laws also protect the consumer in many ways. The Fair Credit Reporting Act and subsequent updates allow consumers to dispute certain items reported on their credit reports. This law isnt out to help people who think the reporting is unfair, but rather to assist people with bona fide errors on their reports to get them removed.

A problem arises, however, when unscrupulous companies use aspects of the Fair Credit Reporting Act to swindle consumers into thinking accurate items on credit reports can be removed just by employing the company to petition the reporting agency. Here is a word to the wise: stay away from companies, which claim to be able to remove delinquent accounts from credit reports. Legally, and ethically for that matter, a person is obligated to pay debts and if the debts arent paid there is no reason why these delinquencies shouldnt be noted on a credit report. Any company who claims to be able to erase these accurate items on credit reports is not doing so in an ethical manner. Basically, they are reporting the items as errors and demanding that the items be removed from the credit report.

Legally, the credit reporting agency is obligated to remove the items while an investigation into the accuracies of the items is accomplished. So although it appears as if the company kept its promise by getting the items removed, the investigations eventually prove the items accurate, the items are reinstated onto the credit report, and the consumer is out whatever money they paid the company to remove the items in the first place. Not a good deal.

Credit repair is very different for people with bona fide errors on the credit report. Errors can arise from something as simple as a mix up with names to as complex and dramatic as fraud and identity theft. If errors are a result of simple mistakes, the consumer has the right to contact the credit-reporting agency and notify them of the mistakes. It is up to the reporting agency to investigate the errors and correct them if appropriate. If, however, the errors arise from something like identity theft the process gets a little more multifaceted. It is up to the consumer to prove in one way or another that identity theft has occurred. Sometimes something as simple as a police statement will suffice, although some consumers are reluctant to report such fraud to the authorities, especially if a relative or friend did the fraud. It makes sense that the reporting agency would request a police report though; without one there is no way to prove the outstanding debt on the credit report wasnt just the result of an overzealous shopping spree.

Some consumers can get quite frustrated when attempting to repair their credit because the credit reporting agencies will often seem hard to work with. It is important to keep in mind that the main customer of these agencies is not the solitary consumer, but rather the many lenders who utilize their services. It is wise to approach the situation with as much documentation as possible, in addition to a little drive and persistence. Yes, legally, the reporting agencies are obligated to investigate and correct errors, but they are notorious for not being particularly great with their customer service capabilities.

Credit repair can be a long and tedious process, but there are many laws in place that protect the consumer. The need to repair credit is a steadily common need, so a consumer feeling overwhelmed can take solace in the fact that they arent the only one having to navigate through the intricate web of rules and regulations.

Kids in College Can Be a PLUS Parents, Know your Education Funding Options

When you are sending your child to college, there are several different things to be looked into. One of the first considerations will be finding the right school for your child to attend. Beyond this are also financial considerations for a student. The financial aspect of college will often times cause a child to rely on parents to help with funding options that are available.

Because of this, there are several programs and funding options to send your kid to school in which you and the child can benefit from the investment.

• One way to help with finances for sending your child to college is through a savings that you start early on. This can have many benefits to it later on. One of these is the Education IRA or the Coverdell Education Savings Accounts. By saving in this account, you will be able to have tax free costs, as long as the money is used for your childs education. There is a limit to putting £2,000 in this account per year. Not only will this count towards your taxes, but it will also help with credit and investment reports if needed. Another is the Roth IRA Account. You can put up to £4,000 in the account every year, allowing accumulation potential. This is similar to the Coverdell Education Savings Account, but allows more flexibility in the amount of money you can save.

• Another way to help is by becoming involved in the 529 Qualified Tuition Savings Plans. With this, you can contribute any amount that you like, and receive benefits with taxes. The savings, when used, will count as a gift tax treatment, which will lower your taxes considerably when factored in. These dont have limits on the amount of money you put in, they can be started and given to any state, and you keep control of the money. Some disadvantages to this are that the plan is not guaranteed, so you may loose principal if finance charges change by the time your child goes to school. There is also the problem if there is a withdrawal from your child from school or if they receive a scholarship the money will have no use. If you decide to use the 529 plan, you will also most likely be using a broker to help with the money benefits and limitations.

• Another way to help your child with finances and receive benefits at the same time is through the stock market. This way, you can minimize effects of capital gains taxes. You can give your child enough money to pay for their tuition through stock. When your child sells the stock, you can receive a lower tax rate off that stock. The best type of stock to invest in will consist of a mix of stocks, have reinvestment plans, receive mutual funds, and are best started when the child is young.

• A third way to have money for your childs education is through family scholarships. Through different types of scholarships, you can receive a given amount of tax credit for the family. Along this line, there are also several loans available from financial aid. This is one way to help with your childs education, your credit, as well as making another investment that can cut off on taxes. Depending on the school, there may also be aid available through grants or scholarships for the family while the child receives their education.

One thing that most say is if you decide to invest in a childs fund, it is also important to continue to invest in your own retirement accounts and other things. There are options to loan from yourself in another account if you need more money. This will also help in case your child decides not to go to school right away. Your entire investment will not be in one area.

There are several options to help fund your childs school. The main key is to begin investing early and to look into all of the different ways that will benefit both you and your child. By knowing what will best fit you, you will be able to have taxes reduced, build credit and invest in something that will help your child for a lifetime.

Credit rating

A good credit rating is more than just an obscure number that will guarantee you credit when you need it. These days, creditors arent the only folks taking a gander at credit scores. Insurers, apartment managers, and even employers are referring to a persons credit score to help them decide if they will offer premium insurance services, approve a new lease, and offer employment.

Like it or not, a credit history paints a pretty vivid picture of what sort of person you are. More than simply stating how much you owe on current credit lines, a credit report also delves into the past to predict how payments will be in the future. A person who has always paid every single bill on time is a great credit risk; and is likely to continue to stay on top of payments unless otherwise sidetracked by a job loss or perhaps a medical problem. Conversely, a person whose credit report shows a total disregard for paying bills on any sort of schedule is likely to continue this sort of trend, and will probably not be offered lower interest rates because of this history. People reading a credit report generally do not have the luxury of knowing a customer on any sort of personal level, and therefore they can only rely on the picture painted by the credit report.

So why maintain a good credit rating?

First and foremost, a good credit rating is a product of someone who pays their bills on time and does not overextend their finances. These two tendencies are great practice to begin with, and although it is nice to have a good credit rating it is even nicer to be squared away financially. A good credit rating is a perk of a financially healthy lifestyle.

Consumers with good credit ratings will be offered the best interest rates by credit card issuers, and will also have more buying power when it comes to finding the best card to suit their needs. Many of the premium rewards cards are available only to consumers with excellent credit. With regards to utilities and home or apartment rentals, people with good credit ratings will often be required to make lower initial deposits or may be able to skip deposits all together since their credit score indicates they are consistently on time with payments. Some insurance companies extend better car, home, and life insurance rates to folks with high credit scores, although this practice is controversial. Many consumers are up in arms over insurers even wanting to know personal credit history.

There are several factors that contribute to credit scores. Information on a credit report is compiled and a corresponding score is declared depending upon timeliness of payments, number of open credit accounts, length of time with creditors, and amount of available credit in relation to balances. Other factors, such as numbers of inquiries on the credit report have a small impact, but do in fact affect the score to a certain degree.

It is possible to add a comment to the end of your credit report; if you feel as though your credit report is not an accurate depiction of your financial reliability you can contact the three credit bureaus and request a sentence or two of your own wording be added to the report. This way if all the late payments are due to an illness, or maybe a wayward spouse, you can explain it to whoever is reading the report. It is important to note, however, that the majority of creditors utilize computerized scoring, so it is unlikely that the explanations added might ever get read. Other creditors may take the time to read the comments but may not really care why the bills were late, just that they were indeed late.

The trick to achieving a good credit rating is to consistently pay your bills on time, and to not wrack up a bunch of bills. The benefits of a high credit score are numerous, and will probably save big bucks in the long run in the form of lower interest rates and better rewards cards. Even folks with lower credit scores can build up to a high one; it just takes time and tenacity.

In a Fix: Unsurprising Mortgage Payments you can Count on

A home is one of the biggest purchases youll ever make. Luckily, you dont need to pay for it all at once. Without mortgages, many people would never be able to own their own homes.

Despite that, mortgages can be the cause of much stress and aggravation. If youve chosen an adjustable rate mortgage, market fluctuations can send your interest payments soaring to the point that youre not sure how to cover your monthly payments. Fear of losing their home is one of the most stressful things people ever have to deal with. It is a scary reality that people have to face on a daily basis when they cant meet their monthly payments.

It doesnt have to be this stressful though. Try choosing a mortgage plan with fixed interest rates that you can count on month and month.

Today banks and lending companies offer a variety of mortgages to suit everyones needs and preferences. Fixed rate mortgages are the most traditional type of loan. With fixed rate loans, you are locked in to an interest rate for the entire period of the loan (whether it be for five, ten or twenty-five years). With adjustable rate mortgages, the interest rate starts low and then fluctuates depending on the market.

A balloon mortgage has lower rates than a conventional fixed rate mortgage, but it must be paid back within five to seven years. If you know you will be moving within five to seven years this might be an excellent option for you but if you dont move then you will need to find another mortgage when your balloon mortgage comes due. You might also want to look into an open mortgage. If you think you will be able to pay off your mortgage within a few years, then you definitely want to look into this option. An open mortgage has opportunities built in to that allow you to pay off your mortgage ahead of schedule without any sort of financial penalties. You do pay for this flexibility so it is best for people who expect to come into some money or are intending to sell their property at some point in the near future.

Though a more open mortgage (like an adjustable rate mortgage) may mean lower interest rates at times, it can be quite a risky undertaking and many people would prefer to have a bit of security and know right at the start the amount of money they will have to repay to the bank. Wouldnt it be nice to have set mortgage payments that you can count on each month? With a fixed rate mortgage, your monthly payments are always the same. Some expenses (such as escrow and property tasks) may change a bit as the years pass, but the monthly amount of your principal and interest payments never alters. You may end up paying a bit more in the long run, but you will have some security and youll know exactly what to expect from month to month. Isnt it worth paying a bit more for this safety? Wouldnt you rather know what to expect month after month?

A fixed rate mortgage also makes it easier to balance your other experiences. Knowing exactly what you have to pay every month means there are no surprises and if you budget carefully and spend wisely you will be able to avoid many a financial crisis.

Whatever kind of mortgage you choose, remember to do your research. In many cases, you end up paying more in interest than the actual price of your home. Thats why you need to take a lot of time and do a lot of research to find the best mortgage for you and your familys needs. A lot of this research can be done online now. You can browse the rates and types of mortgages offered by many different banks and lending services providers. This will give you plenty of opportunity to shop around for the best rates and compare what each company is offering.

If you are someone who values security and certainty where your finances are concerned, then a fixed rate mortgage is probably the best option. It may take longer and cost a little more, but you might sleep a little easier knowing that your rate is safe from any kind of market fluctuation.

Successful Strategies for Clearing Black Marks on your Credit Report

Black marks on a credit report from any of the three national credit-reporting agencies of Experian, Equifax, or Trans Union will affect credit scores dramatically. Black marks occur for many different reasons, some are because an individual did not pay their debts in a timely fashion, or not at all in some cases, or even through neglect or mistakes in reporting that information. Know what can be done to clean up a faulty credit report if it dispute a claim on a credit report, it makes a difference between great credit and denial of a loan for bad credit.

Consumer reporting agencies give information on credit history to the nation credit reporting agencies in the U.S., and to the local statewide agencies too. Any individual that believes that an inaccurate report is on the national or state credit report can dispute the claim. It is not hard to do; it just takes purchasing the credit reports from them, and learning how their credit scores work, and what the numbers mean in relation to an investigation for dispute. The next step is to contact in writing with documented information of evidence to dispute the claim. It is preferable to send all correspondence via registered mail, so there is further evidence that they received the information. Keep copies of everything, including the dispute letter, receipts and evidence. Do not leave out any detail out over disputed information, and ask that the information be removed.

Reporting companies will usually have a reply to the dispute within 30 days, but some might take a little longer due to delays like holidays or federal closings. All information will be sent to the agency that reported it, and then it must by federal law investigate the request and report back to the consumer agency that sent the request to them. Any information that is found to be incorrect, it must be sent along to the national reporting agencies with the corrected information included. Law must give a notice of change to the individual, along with a free report when the change takes place, like a fact is deleted or revised to reflect new payment status. Changes can be made at a later date if it is found out that by the information provider that it was inaccurate. All of this though must be officially verified to the reporting agencies.

Notices must be sent to all parties that have inquired about credit scores and their reports if the information is found to be inaccurate. This includes anyone that has received information in the past six months, to employers that have considered a job for an individual in the last two years. There will be a time when a dispute is justified by the consumer-reporting agency, and if that does occur, a statement must be included in it, but a nominal fee will be required for each time it is requested. Sometimes too certain items will not be cleared, and at other times all of it will be cleared out, and a dispute settled. If certain items are not cleared write the consumer reporting company again and ask that the statement of dispute stay in the records.

Getting a credit history that is clear of black marks takes a little work and a lot of patience, but it can be done. Other ways to clear up debit marks is to file bankruptcy and start over, or set up payment plans with each company that business has been done with, or is currently in default but the account is not closed. Settlement, judgments or charge-offs can all be handled, but it will take time to clear it up. It took a while to get into debt, but the payoff of getting out of debt will be emotionally satisfying, and physically liberating. Talk with a financial advisor or a trusted local banker that can lead to a clearer path of understanding on how to remove bad debt. If necessary, go to a guidance counselor that deals with finance issues of money management, and ask for some help to get it straight. They are trained in the right way to handle money, and know the best ways to get clean of over whelming debt.

Scams & bad deals.

Identity theft is the number 1 scam. Keep your accounts, and Social Security out of the hands of those who dont need to know them. Dont pay up-front fees in hopes of obtaining a loan or a credit card. An exception to this rule is a home loan, which usually involves appraisal and credit report fees - paid in advance. Popular loan scams ask people to send a fee for a promised loan or credit card even if their credit rating is bad. Watch out for someone who pays you too much with a phony certified check and asks you to wire them the difference. If you do, you lose. Dont sign untrue statements! Beware of companies who loan to people with bad credit.

Credit cards. If used well, great tools, if used poorly, financial ruin! If youre too impulsive, hide your card! To avoid paying interest and fees, pay off your entire balance each month (on early or time). Most charge no interest if the balance is paid off within the billing cycle. If you pay only the minimum required payment, like one in four Americans, you lose.

Unauthorized use of credit cards. If a charge - which you did not authorize - appears on your credit card statement, contact the credit card company immediately. Follow-up your dispute in writing within 60 days to ensure your rights.

Disputed items. If you are dissatisfied with a product or service you charged with your credit card, first make a good faith attempt to resolve the dispute with the merchant. If you are unable to resolve it, contact your credit card provider and file an official dispute. Do this within 60 days of the charge to preserve your rights and avoid negative credit, etc.

Debit cards. If you, or someone else, uses your debit card, money is deducted from your checking account. For pre-authorized purchases (e.g. gasoline or motels) a hold is placed on your checking account, usually for an amount larger than the expected charge. This hold can cause other checks or charges to be returned — if you dont have a sufficient cushion of funds in your account, or a backup system (e.g. overdraft line of credit loan). Once funds are deducted from your account, it is often difficult or impossible to get your money refunded. Dont use a debit card for mail order, telephone, or internet purchases. Even if you dont get what you ordered, you may not be able to get your money back.

Reconcile your checking account. The sooner you do it, the easier it is. As soon as you receive your bank statement, compare it with your check register item by item. Make sure both you and the bank have recorded things correctly. If you find that the bank has made errors, or the statement includes unauthorized deductions, contact them immediately.

Blank checks. Keep your blank checks in a safe place. Although you may not be technically responsible if someone steals your checks and forges your name, consumers are often unable to recover their funds which have been deducted from their account. Financial institutions have several defenses including consumers negligence.

Bounced checks. To avoid costly bounced checks, tie your checking account to a revolving line of credit (an empty loan). If you have such a pre-arranged plan, and write a check for more than your available balance, a loan advance is made to pay the check. If you pay off that loan quickly, most financial institutions charge you very little in interest and fees. Keep that line of credit reserved as your checking account backup and dont use it for anything else. Bounced check fees, are very costly. Beware; many banks automatically provide very high-cost bounce protection programs for those who dont.

Solicitations. Dont give your account numbers, credit or debit cards, or your Social Security numbers to anyone who phones or e-mails you. They may not actually be who they claim to be. They may fraudulently use your information, and the damage done to you financially, or to your credit rating, may cause huge headaches, and a horrendous waste of your time, money and energy trying to correct the problems.

Investing. If you cant afford to lose it, dont speculate with it. The greater the rate, the higher the risk.

Risk Free. Nothing is risk-free. Especially nothing involving money.

Too good to be true. If something sounds too good to be true, it is! Dont fall for the scams. Heed the clues!

Credit repair. Be weary of credit repair services. Some claim to be able to fix bad credit. If you have inaccurate information on your credit report, you may contact the credit bureaus directly and correct it yourself. If you have had credit problems, any attempts to remove the relevant information from your credit report are illegal, fraudulent, and only temporary.

Still Fixing that Credit? Tips on How to Buy a Car with Iffy Credit

First of all, commend yourself for taking the steps necessary to repair your credit. There are many consumers who simply dont bother attempting to clean up delinquencies and other credit problems, and by now you have probably realized that its no easy task. Fixing up your credit takes a lot of time and determination.

As you have probably realized, sometimes being a borrower isnt the best position to be in. Because of this reason, this may not be the time to purchase a car.

First look at all your options; do you simply have car fever? Is your friend zipping around in new a car, which has brought out a jealousy streak? Closely examine the reasoning behind wanting a new car, and think about some alternatives. Is there public transportation available that can get you to and from your required destinations? Public transportation, although far from glamorous, is a viable option for people without a car. As a bonus, taking a bus or other form of public transit is better for the environment too.

If your reasoning behind buying a new car is because your car is on its last legs, figure out how much longer your current car might last you. You may be surprised at how long some cars can last, far beyond the expectations of the owner.

If it becomes blatantly clear that none of these options are viable for you and it is indeed time to buy a car, there are a few routes you can take. After all, if a new job takes you beyond the scope of the bus route, or if the birth of a baby makes the two-seater impossible to use, the above options simply may not work. It is important to remember, however, how your credit got in bad condition to begin with.

It is best at this time to avoid taking out any other lines of credit for two reasons. First of all, you will probably be offered a less than desirable interest rate for any loan you get approved for. The second reason is that opening new accounts while trying to get your credit under control seems awfully counterproductive. How do you take control of something that you keep adding more to?

Look around and try to take advantage of whatever resources you have available to you before leaping into a new loan with a commercial lender. Are there relatives you have who might help you out with some money? Do you have a retirement account which you might be able to use as collateral on a secure loan? A secure loan will generally result in a lower interest rate and a higher level of approval since it is secured by collateral. It is important to understand, however, that if the payments arent made the lender has the legal right to take the money from the retirement account or whatever other account used as collateral. There are many options open for a resourceful person willing to look at the situation creatively. Who knows; your great aunt may have a fully functioning car sitting in her garage collecting dust that she would be willing to unload on you.

If none of these options work for you, then maybe its time to start looking at dealerships and private sellers. It is worth a shot to visit your bank or credit union and see if they have any sort of loan product available to consumers who are in the process of fixing their credit. After all, poor credit is an increasingly more common occurrence. Many lenders are adjusting accordingly with the loan products they offer.

There is no shame in buying a clunker. Now is not the time to purchase the luxury vehicle you have always dreamed of. Restraint is imperative right now. Look for a functional car that will get you from point A to point B without any extras. There will be lots of time later, after your credit is sufficiently repaired, to get a car more to your liking. Working towards a better credit score will be well worth it in the end. So what if you have to drive a car with an ugly paint job for a year or two? Remember, this too shall pass.

How to look out for all the bargins

Want to be a bargain finder?

Want to be the one that always finds the deals and has money left over?

Start by learning the secrets of opportunism.

Do you know that you can eat a wider variety of fruit than your neighbour, and spend only half as much to do so? How? By buying fruit in season, when it is at the lowest price. As a bonus, it is also of the highest quality at these times. This is opportunism.

Notice that this means not always getting exactly what you want when you want it. You get more variety this way, and you spend much less, but you go with the flow. If oranges are cheap, you’ll be eating oranges. If apples are in season, you’ll be eating apples. Whatever the case, you’ll always be finding bargains.

You never have to eat things you don’t like or deny yourself pleasure. You just shop for those things that you like among those that are cheaper now. There will be other, different, great deals next week or next month. Unless you are extremely picky about what you eat, you’ll almost always find delicious foods that you like on sale.

That’s the premise of opportunism - that you get more by going with the flow. A true bargain finder gets more variety in the long run, and more for the money. This can be applied to many areas of life.

Bargain Finder Examples

When I went to Ecuador a few years ago, there were many interesting places I wanted to go. I chose Ecuador because it was a thousand dollars less to go there than to any other country. I had a fantastic time for a month for 1040 (including airfare). I also met the most wonderful woman I know there, and eventually married her, so you never know what riches you’ll find when you go with the flow.

We go to the movies here in Tucson on Tuesdays, when we can get in for 2.00 each. Others are paying 8.75 a couple miles away. What are they getting by paying four times as much? They get to see the movie six weeks earlier. The movies don’t change in those six weeks, by the way, and enough friends have seen them by then to let us know if they’re good or not.

Opportunism means not paying more unless you are getting more. It also means making honest choices. Will you actually enjoy that movie more by seeing it now? More than you’ll enjoy the FOUR movies you can see in it’s place? Do you have to take that fishing trip now? If you’re planning to take both a fishing trip and a gambling trip, why not do each when it’s cheapest?

When William Danko and Thomas Stanley wrote “The Millionaire Next Door,” they found that MOST millionaires bought used cars. They bought BMWs and Mercedes, not old Ford Pintos, but the lesson was clear: They understand opportunity. Cars often lose half of their value in the first three years, but they’re not half used-up, are they? Is it worth an extra 6,000 to say you have a new car (And you will have to tell people, since it’s hard to tell a three-year-old car from a new one)?

To be an opportunist doesn’t mean just settling for whatever is easy and cheap to get in life. We all have our areas that are more important to us. If you really love those 15 cigars, why not buy them? On the other hand, if you really can’t tell the difference between the 5 and 50 wine, why not buy the former? Opportunism is one of the keys to being a true bargain finder.