How to pay down your credit cards

Many of us have had difficulties some time in our lives with credit cards, it is so easy to buy stuff, charge it, and forget it. We buy things we really don’t need because we feel the power of the credit card. It is a piece of plastic after all, and with that piece of plastic we can buy an expensive watch, designer clothes, take our friends to dinner, or even use it to put a down payment on a car! Then we get more credit card offers, and start collecting them, and in no time our credit card balances have reached $10,000 or even $20,000 dollars. Some card have exorbitant interest rates, 20% or 30% in some cases, and the worst part is that credit card companies don’t want you to pay them down quickly, they only want you to pay a minimum, I have seen a $2000 credit card bill with a minimum payment of $25 per month, this barely pays for the interest, at that rate you can be lucky to pay it off after 5 or 6 years.

 

Here is how to pay down your credit cards quickly. This comes from personal experience, I am currently credit card debt free. Here’s how I did it. I had 6 credit cards, so I sorted them by the highest interest rate, not by balance, I paid as much as I could on the one with the highest interest rate, while only paying the minimum on the other cards making sure I am paying at least the interest incurred plus $5. Once I paid down that credit card, I moved to the next and paid as much as I could on that one, I did that until I paid down the other credit cards. It took a few months but it felt good to pay down a high interest credit card and close the account. More on that later..

 

Here are a few things to keep in mind: If you have an offer from a card company with 0% interest until a certain date, make sure you pay that down quickly as well. Most of these offers are very well studied to get as much interest from you as possible. Credit card companies know your financials very well, and they know when to send you these offers, do not fall for these traps. Not only will your credit score drop if you have more credit cards, but you will be tempted to charge more on the ones you just paid off. Just stick to paying down your existing cards as quickly as possible.

 

Should you close your credit card account? Yes! Absolutely! Your goal is to get out of debt. Do not worry too much about how your credit score is affected by closing your cards. Would you rather have a 720 FICO score and be $10,000 in debt, or a 650 FICO score and bet $0 in debt? Once you pay down your credit cards, you will start saving money and get out of the credit card trap. I currently have a single card which I have to pay off by the end of the month. I am happy, do not worry about credit cards, or loans. It feels great! I don’t owe anything to anyone! I am free!

Car loans money saving according to experts

Many people believe that negotiating a great price on a car is better than saving money on a car loan. What most experts say is that to get a great deal, one must separately shop for the loan and the car.

If you want to save up to thousands of dollars, do not go straight to a car dealer. Instead, begin researching on car loan application. If you are a credit union member, it will help you save significantly as credit unions often have very competitive rates. There are also online lenders that have available car loan offers. You can also score good offers at your present auto insurance company. Banks, however, are where most buyers turn to for car financing.

Now, the next step is to secure the approval of your loan. It is a good thing to be very familiar with your own credit. There are credit rating companies that can provide you copies of your credit reports for free or for a small amount. You wouldn’t have to worry so much about your rating, however, because what may be low for a mortgage may already be good enough for an auto loan. Never assume the best, however, but follow another good car loans money saving tips
– regularly check auto loan rate tables of various banks online to find the best rates available. You will find out that there is one thing they call ‘prequalification’ in auto financing. When you get one, you will be able to go to a dealer with a blank check in hand, which means the check is good up to a specified amount. Communicate with the dealer and negotiate and see if the dealer can offer a better financing than the one you already have. That’s a very useful car loans money saving.
– Before closing the deal, study the loan. With the base amount and the monthly payments, you may think you are saving money when you actually are not. Interest can go way up that can drive the total cost if you do not make the best decisions on the terms of the payment. The loan term affects both the monthly payments and the total financing cost. Short payment terms require higher monthly payments than long ones, but long payment terms mean higher interest. This means short payment terms actually mean lesser total amount paid at the end of the loan. This is one car loans money saving tip to be mindful of, as monthly payments are fixed, but interest is variable. Another reason why you should shorten the term length is that the longer you finish paying for your loan, the higher the worth you owe on your car compared to the worth of the car itself. If you bought the car with the intention of selling it after a period of time, you won’t get a price that’s better than the amount you owe on the car. This is because vehicles depreciate in value overtime, while interest rates generally tend to go up. If you are planning to buy a car in the next few months, it is recommended that you follow these car loans money saving tips provided by most experts.

Car Loans Money Saving: How to Get Your Dream Car

Your dream car may be the one of the hardest items to strike out of your bucket list because it will cost you most if not all of your savings. However, whether it is a sedan, an SUV or a sports car, you can have it as long as you take note of these car loans money saving tips.

Apart from credit card purchase, many people opt for car loans. You want to shop around for a good deal so why not shop for better car loans. Two most common types of auto loans are car loans from dealerships and from banks and other financial institutions. The key is to compare available loans to be able to find lower interest rates. Currently, car loan rates play at around two to four percent. Financing through dealerships can offer unbelievably low rates, as shown in very enticing ads, but most of the time, banks are the better car loans money saving option.

Car loan from banks is simply a form of borrowing. The bank, credit union, or even an insurance company will loan you an amount based on which, they will charge interest. Car loans from dealers work almost the same as with banks, with the exception that in this case, you will be directly indebted to the dealer. Both types of loan can be very strict on credit scoring standards so it is best to study your credit history through credit reports which can be acquired from major credit reporting agencies. Banks commonly have very conservative policies that accommodate only those individuals with generally good credit references. Low credit may still get you a car loan, but probably not the one for your dream car.

If for an instance, you chose financing through a bank, you should keep an eye not only on the APR, but also on the payment term. You should ask help from experts regarding monthly payment calculations. An extended payment plan may sound good, as it allows you to pay for the loan over a longer period of time, but it only means higher interest charges. A short payment term requires higher monthly payments, but is lesser in total cost compared to a long payment term. Shorter terms can save you a great deal of money, and is thus one of the best car loans money saving strategies.

The APR, or the annual percentage rate is another thing to focus on. Lower annual percentage rates help generate significantly huge savings.

This may be hard to believe but another car loans money saving strategy is to prefer new cars to used ones. Generally, loans on new cars have lower interest rates compared to pre-owned automobile loans.

Getting your dream car may be hard work, but if you apply these car loans money saving tips, you will definitely get the most out of your budget. Remember not to do the biggest mistakes most people do in financing. Do not go directly to a dealership without shopping for a good car loan beforehand. Do your homework, check your credit, study the terms and score the best financing.

How to get a low APR car loan

More often than usual, car dealers finance your car at a high interest rate, this is because they get a kick back from the lender or providing the loan, it is up to you to shop around for a better rate by going to your bank or a credit union, the process is a little more time consuming but no complicated, and it will save money in the short and long term. Some car dealerships provide in house financing at low interest rates, again do your shopping to see which is best rate available. Your credit score will definitely be a factor, so if a dealer advertises 1% interest rate on new vehicles it is probably based on an excellent credit score, if you don’t have excellent credit try your credit union, you may get a loan that is a half percentage less than you would at a car dealership.

To help figure out payments, interests, and affordability, you should use online financial, loans, or payment calculators such as the ones found at BankRate or other websites, using those calculator you can better plan your loan payments and test different payment schedule scenarios.