While saving for your debt settlement every penny counts. Make sure that you do not get sucked into some of the many financial scams on the web currently. Below are a few of the typical financial scams to be on the lookout for.
Mystery Shopper Scams
It's common for businesses and consulting firms to pay consumers to shop at their retail locations or dine at their restaurant. The mystery shoppers are then required to submit confidential reports about the experience. But fraudulent individuals are cashing in by setting up fake mystery-shopping programs that look very real, including job applications and professional-looking web sites. They are then convincing new hires to wire money using funds from their own checking account.
Here's a typical scenario according to FDIC Consumer News. Your first assignment as mystery shopper is to deposit a $2,000 cashier's check into your bank account, supposedly to cover a $1,900 purchase you're about to make for your new part-time job, plus a $100 advance payment for your services. You're then instructed to withdraw $1,900 in cash from your bank account, take it to a particular store to have the funds wired to a person in Canada. Later, you'll go home and fill out an evaluation of the store's money-transfer service. Eventually, the cashier's check you deposited will be returned as counterfeit, and you will be responsible for the money you withdrew from your account.
What Can You Do?
To learn more about common financial frauds and how to protect yourself, visit www.mymoney.gov, a site dedicated to financial education and sponsored by the FDIC.
Trust your instincts and be cautious before you commit to any work-at-home job that may seem too good to be true. If you want to work at home, determine what your strengths and interests are as with any other job search. Then, try to find ways that you may be able to earn extra money at home. For example, consider baby-sitting or pet sitting for families in your community. If you have computer or data-entry experience, consider using your home computer as an employment tool. Companies who ask for money in order to provide you with work should trigger a red flag.
Tuesday, May 26, 2009
Monday, May 18, 2009
Buying A Car While In Debt Tips
Since you are currently enrolled in a debt settlement program, buying a car may seem difficult. Here are some tips that could help you purchase a reliable car at an affordable price.
Choose A Financing Option
There may be lenders who will extend credit to you despite your financial trouble. With the rise of the internet, you no longer have to rely solely on the dealer for financing. www.CarBuyingTips.com strongly recommends the use of online lending services such as www.autocreditfinders.com. This site will put you in contact with lenders who specialize in high risk loans. You may also try applying for a car loan through your credit union.
Be aware of dealer scams. Salesmen realize that individuals with flawed credit reports and tight budgets focus heavily on the amount of the monthly payment. Therefore, they may offer you a car loan in which payments extend for 72 months. Although the payment amount may fit your budget, you will most likely be paying too much for the vehicle. If you decide to sell or trade in the car before you have made all of the payments, you will be "upside down in the car," a phrase used by dealers to mean that you owe more than the car is worth.
Try to obtain a car loan for no longer than 48 months. If the figures are not workable with the car that you choose, select a less expensive vehicle. Oftentimes, some dealers prey on your emotions and make you feel as though you should be grateful that they approved you for any car. They might also tell you that you could not get financed through any other dealer or lending institution. If the dealership will not budge on the payment or loan terms, consider taking your business elsewhere.
Read All Paperwork
Before signing any paperwork, read everything carefully. Oftentimes, dealers add a variety of miscellaneous charges such as VIN# window etching, dealer prep, and a warranty that you never requested. In most cases, these services are not necessary and can be done cheaper on your own.
"The buyers need to be reminded that they are in dire straits, they can barely afford the car, so they should be going there to buy a car only, nothing else," said Ostroff. Visit Ostroff's site at www.carbuyingtips.com to read in detail about the top ten car dealer scams. Arming yourself with knowledge will help prevent you from falling victim to car salesman trickery.
Helpful Car Buying Web Sites
Kelley Blue Book: This site provides car buyers and sellers with new and used vehicle information. Visit this site to see how much your car is worth if you are selling, buying, or trading.
Consumer Reports: The auto section of this site gives details and unbiased reviews of new and used vehicles in categories such as safety and value.
Bankrate.com: Bankrate offers a long list of helpful online calculators that may assist you with car buying. There are calculators such as the "Car Early Pay Off Calculator" and "Negative Equity Auto Loan Calculator".
Choose A Financing Option
There may be lenders who will extend credit to you despite your financial trouble. With the rise of the internet, you no longer have to rely solely on the dealer for financing. www.CarBuyingTips.com strongly recommends the use of online lending services such as www.autocreditfinders.com. This site will put you in contact with lenders who specialize in high risk loans. You may also try applying for a car loan through your credit union.
Be aware of dealer scams. Salesmen realize that individuals with flawed credit reports and tight budgets focus heavily on the amount of the monthly payment. Therefore, they may offer you a car loan in which payments extend for 72 months. Although the payment amount may fit your budget, you will most likely be paying too much for the vehicle. If you decide to sell or trade in the car before you have made all of the payments, you will be "upside down in the car," a phrase used by dealers to mean that you owe more than the car is worth.
Try to obtain a car loan for no longer than 48 months. If the figures are not workable with the car that you choose, select a less expensive vehicle. Oftentimes, some dealers prey on your emotions and make you feel as though you should be grateful that they approved you for any car. They might also tell you that you could not get financed through any other dealer or lending institution. If the dealership will not budge on the payment or loan terms, consider taking your business elsewhere.
Read All Paperwork
Before signing any paperwork, read everything carefully. Oftentimes, dealers add a variety of miscellaneous charges such as VIN# window etching, dealer prep, and a warranty that you never requested. In most cases, these services are not necessary and can be done cheaper on your own.
"The buyers need to be reminded that they are in dire straits, they can barely afford the car, so they should be going there to buy a car only, nothing else," said Ostroff. Visit Ostroff's site at www.carbuyingtips.com to read in detail about the top ten car dealer scams. Arming yourself with knowledge will help prevent you from falling victim to car salesman trickery.
Helpful Car Buying Web Sites
Kelley Blue Book: This site provides car buyers and sellers with new and used vehicle information. Visit this site to see how much your car is worth if you are selling, buying, or trading.
Consumer Reports: The auto section of this site gives details and unbiased reviews of new and used vehicles in categories such as safety and value.
Bankrate.com: Bankrate offers a long list of helpful online calculators that may assist you with car buying. There are calculators such as the "Car Early Pay Off Calculator" and "Negative Equity Auto Loan Calculator".
Monday, May 4, 2009
Get Your Credit Back On Track
After you have completed your debt settlement program, you will be one step closer to living better debt free. At this time, you should begin to re-establish your credit. Although your rating will not improve overnight, consider the following ideas to rebuild your credit.
Some Offers Only Look Good On Paper
Did you ever buy a product that looked wonderful in the store, but once you brought it home it did not perform as well as you would have liked? This idea could also be true of sub-prime credit cards. Upon completion of your debt settlement program, be aware of credit card offers that seem too good to be true. Sub-prime issuers may have lenient approval guidelines, but prey upon individuals with previous credit problems by charging astronomical approval and annual fees. These companies commonly apply these fees to your card. Therefore, you acquire a balance before you make any significant purchases.
Educate Yourself
Knowledge and education never go out of style. Become an educated consumer by understanding your credit card agreement. This may involve reading the tedious fine print, but it is beneficial to know your annual percentage rate, due date, late fees, etc. According to a recent survey conducted by TNS, a market research firm, in partnership with professors from Dartmouth College and Harvard Business School, high levels of debt may be correlated to financial illiteracy. The survey revealed that only 35% of respondents were able to correctly estimate how interest compounds over time and more than half of respondents did not understand how minimum payments are calculated and applied to a principal balance. The American Bankers Association (ABA) has developed a free resource to help consumers make informed choices about credit cards. "Guide to Credit Cards" is available on ABA's Consumer Connection web page at www.aba.com. Make sure that you also check your credit report frequently. You are entitled to receive a free credit report every year. For more information, visit www.annualcreditreport.com.
Some Offers Only Look Good On Paper
Did you ever buy a product that looked wonderful in the store, but once you brought it home it did not perform as well as you would have liked? This idea could also be true of sub-prime credit cards. Upon completion of your debt settlement program, be aware of credit card offers that seem too good to be true. Sub-prime issuers may have lenient approval guidelines, but prey upon individuals with previous credit problems by charging astronomical approval and annual fees. These companies commonly apply these fees to your card. Therefore, you acquire a balance before you make any significant purchases.
Educate Yourself
Knowledge and education never go out of style. Become an educated consumer by understanding your credit card agreement. This may involve reading the tedious fine print, but it is beneficial to know your annual percentage rate, due date, late fees, etc. According to a recent survey conducted by TNS, a market research firm, in partnership with professors from Dartmouth College and Harvard Business School, high levels of debt may be correlated to financial illiteracy. The survey revealed that only 35% of respondents were able to correctly estimate how interest compounds over time and more than half of respondents did not understand how minimum payments are calculated and applied to a principal balance. The American Bankers Association (ABA) has developed a free resource to help consumers make informed choices about credit cards. "Guide to Credit Cards" is available on ABA's Consumer Connection web page at www.aba.com. Make sure that you also check your credit report frequently. You are entitled to receive a free credit report every year. For more information, visit www.annualcreditreport.com.
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