It’s not just the cold weather across the country that is causing many Americans to hunker down and save instead of spend. No matter what the analysts and the Fed says, unemployment is still at ten percent and the country still feels like it’s in recession, forget the technicalities. The New Year always brings a little monetary sobriety after the holiday spending binge, but over the last year Americans have become more serious about saving money and paying off debts.

Even with good intentions, becoming fiscally savvy can be easier said than done. A recent NBC Today poll showed that most Americans don’t know exactly how much money they spend each month or how much money they would need to live for three months, much less have that much in savings.

Whether the goal is to save more or pay off debt–or both–the first step is getting a handle on spending. There are a number of ways to go about this: 1) Follow the paper trail of past statements and receipts. This can be time consuming, but eye-opening. 2) Track all spending for the next month, recording everything from bills to cash spending.

For those who like to do things to the extreme, there is the cash-only diet. Take out the amount of cash estimated to be needed for the week and then spend only that amount, no credit or debit cards. When the cash is gone, the spending is over. Neuroscientists have discovered that the brain regards cash transactions and credit transactions very differently. A cash transaction causes the area in the brain called the insula to light up and cause people to proceed with caution. This doesn’t happen with credit cards. In fact, credit cards pump good feelings of an instant reward throughout the brain–very dangerous stuff.

Next comes setting a budget that incorporates savings or debt pay-off goals. This is another area where people can be a little confused. A budget is not simply a spreadsheet that tracks how much was spent for the month nor is it just balancing a checkbook. While both of these are important tools, neither fits the definition of living within a budget.

There is a plethora of software and websites that assist in setting and maintaining a budget. Quicken is a popular software program and Mint.com is a useful site with free money management services. Starting by mapping it all out on paper may be the best way to begin. The thing to remember about a budget is that it sets limits as well as tracks spending through very specific categories.

Getting started can certainly be time consuming and there will be a period of trial error. However, living within the parameters of an income and sticking to spending goals can be very rewarding, both emotionally and monetarily. Keeping on an eye on the long-term goal, like having six-months of expenses saved for just-in-case or saving for a house or even being debt-free, will take a little chill out of the winter budgeting blues.

Austin real estate is easily searchable on Ki’s website. Available homes in the Austin MLS can be found based on the individual needs of a buyer. Ki provides general statistics on Austin real estate along with information showing recent mortgage rate history.

Article Source: http://EzineArticles.com/?expert=Ki_Gray

http://EzineArticles.com/?Budgeting-For-the-Future&id=3541816

Keeping your insurance coverage current – be it home, auto, or health – is critical, regardless of how much you need to cut from your budget. Allowing coverage to lapse, can have serious financial repercussions. A serious illness, major damage to your home or a car accident could force you into bankruptcy.

With the high cost of insurance these days, it only makes good sense to shop around for the best deal on insurance coverage. Insure dot com is a great site that will provide you with quotes from several companies. You may be able to get a better deal on insurance coverage by simply changing companies, or by raising your deductibles. Another idea is to just go with bare bones coverage and ditch all the bells and whistles that you may have with your policies.

In addition, be sure you are getting all the discounts that you should be getting. For example, you could get a discount on your car insurance if you don’t drive your car to work. Discounts are also available for those who insure their home and auto with the same company. Some companies will also cut your rate for auto insurance if you take a defensive driver course, or course that refreshes your knowledge and driving skills. You can save pretty good money with most insurance companies on your home owners insurance if you install an alarm or other safety items as well.

I’ve put together a list of 7 tips to help you save on both your auto insurance policy and home owners policy. These tips have helped me save significant sums over the past several years and I’m sure they will do the same for you.

Homeowners Insurance

1. When you provide the value of your home when applying for a homeowners insurance policy, don’t include the value of your land your home sits one. Insure your house alone.

2. Check with your insurance company to see if you will save any money by installing deadbolt locks, smoke detectors and Co2 detectors. If you’ve already got these things and your insurance company provides a discount for them, be sure you are getting that discount.

3. If someone in your family has been a smoker in the past, but has quit, check with your insurance company to see if you are entitled to a premium discount. More and more, those who have smokers in their family pay a higher premium because cigarettes are one of the leading causes for house fires in the US.

Auto Insurance

4. If your vehicle is an older model and is paid off, consider dropping your collision coverage. This is especially true if you are spending more each year on your insurance coverage than the car is worth. Another option in this case would be to increase the deductibles for collision and comprehensive coverage. If you owe money on your car, regardless of how old the car is, your lender may not allow you to drop the coverage until the loan is paid off in full.

5. Be sure you are getting all the discounts you are entitled to, including:

• If you have anti lock brakes, automatic seat belts and airbags
• If you are in a particular profession. Professions such as teachers and engineers, for example, have fewer accidents, so their rates are lower.
• If you’ve served or are currently serving in the military, you may be entitled to a discount.

6. If you need to buy a brand new car, but a low profile, low performance type. Don’t get the jazzed up sports car if you are planning on saving money on your insurance.

7. Find out if you belong to an association that has arranged for discounts on car insurance. The Triple A is one such association.

Bruce has been helping folks with personal finance issues for several years. He started writing about them online in 2008. In addition to his writing, Bruce also operates a number of informative web sites. You can check out his latest website here: Black Leather Ottoman featuring the Round Leather Ottoman

Article Source: http://EzineArticles.com/?expert=Bruce_Guzman

http://EzineArticles.com/?Family-Budgeting—7-Tips-For-Saving-on-Homeowners-and-Auto-Insurance&id=3559776

If you are like most Americans, you know at least one friend who has lost their job in this tough economic time. Even people who are lucky enough to still be working have suffered pay cuts, layoffs and pay freezes. So when financial advisers tell us to get rid of debt, how do we do it? Many people think of their 401k. The money is sitting there and under most 401k plans, the worker can borrow against the account. It is an option but is it the right option? Let us explore.

The 401k Rules For a Loan

Most 401k plans have a provision for allowing a loan against your retirement account. The rules are fairly straightforward (at least in most plans). You can borrow up to 50% of your vested account balance. Or, if you have that much, $50,000, whichever is less. For payback, you usually have a maximum of five years to repay the loan, unless you are borrowing for a first home, then the government allows a longer payback.

On the Plus Side

There appear to be some advantages to taking a loan against your 401k. First, for many people is that there is no credit check on the loan. Even if you have good credit, you don’t necessarily want another inquiry showing up on your report. That is understandable. Also, the interest rate is usually low. In fact, it might be the lowest interest rate you have (or would have). So taking a a $5,000 credit card debt with a 18% interest rate and paying if off with a 401k loan at 8% seems like smart money maneuvering.

On the Minus Side

If you ask me, the minuses far out weigh the pluses. Where to begin? First: if you lose your job, or leave it voluntarily, you owe the loan back right away. Yes, no more five years to pay it back. You have (for most plans) 60 days to pay back the loan. Can you honestly say that your job is secure? Do you know, for a fact that you won’t be changing jobs or cities in the next five years? Everything is so uncertain these days, why take the risk? Second, you are taking money from your future to pay for the present. Don’t do it. Even if you want to use it for a first home, the benefit is negligible. These are the years when you need to be putting as much as possible into retirement. The stock market is recovering and every penny you put into retirement accounts will reward you tenfold or twentyfold in 50 years. The longer you delay retirement savings the less you will benefit.

For more on 401k loan options visit 401k Rollover Answers.

Article Source: http://EzineArticles.com/?expert=Beth_Lyons

http://EzineArticles.com/?401K-Loan—Is-it-the-Right-Choice?&id=3583054

Unfortunately, the currently difficult economy has come home to roost in the lives of many a person. Often the financial problems seem to gain a momentum of their own until we are swept up in a flood of economic troubles. The combined weight of our already stretched credit makes it next to impossible to meet our payment obligations. One of the common occurrences when confronted with this kind of situation is auto repossession.

Normally when we commit to purchasing or leasing a car, we are not anticipating any kind of financial hardship. Your signature on the contract, however, is a promise to a lender or creditor. And, according to most laws of repossession, you are signing over a host of rights to the note holder of your vehicle. The lien holder retains these rights until you no longer owe anything on the car. So if you miss a payment or a series of payments, your car can be repossessed without any advanced warning. If you are on the verge of this kind of financial crisis, try to be proactive with the lender. You might be able to avoid repossession if you attempt to negotiate more favorable terms, even if only temporarily, with the creditor.

Depending on your contract and the state in which you made your car purchase, your vehicle may be seized for even a single missed payment. Usually the seizure is performed by a third party who has been assigned these rights. This party is normally compensated only after your car has been successfully handed over to the lender. You should remember that the majority of lenders or creditors prefer to avoid the repossession of your car. Instead, they would rather make continued and varied attempts to get you to clear up what you owe before going forward with auto repossession.

In the event that the vehicle is seized, it must be done so peacefully, as specified by law. If this does not occur during the process of repossession, the lender or company in charge of seizure may have to pay a penalty. The non-peaceful seizure is generally referred to as a “breach of peace.” This includes physical threats and the actual use of force during the process of taking the vehicle. The repossessing party cannot remove your vehicle from a closed structure without your consent.

If the lender succeeds in the repossession of your auto, he can take it to an auction to receive bids. If the vehicle is scheduled to be offered to the public in this manner, he must inform you as to this eventuality. Up until this time, you still have the option of retaining the car by paying everything that is in arrears.

If you decide not to bring current your payments and an sale does result, you will be responsible for paying the difference, if any, of the sale price and what you owe on the vehicle plus any other costs related to the repossession.

As mentioned, it is always best to do what you can to avoid these complications. Remember, almost all creditors would rather talk than repossess. Do what you can to avoid it – don’t bury your head in the sand. Confront the prospect of repossession in a head-on fashion so that it doesn’t happen to your automobile.

Scot Josephson writes more about Auto Repossession at http://www.RepossessionResource.com

Article Source: http://EzineArticles.com/?expert=Scot_Josephson

http://EzineArticles.com/?Auto-Repossession—Stop-the-Bill-Collectors-Before-They-Take-Your-Car&id=3584481

Debt management is perhaps the most important skill you can learn when it comes to finances. Too many people dig their financial holes before they have any real concept of the repercussions, and then they spend the next ten years looking for a way out as older, wiser, and more unfortunate souls. But debts do not have to ruin your life. You can live up to your financial responsibilities while also enjoying your life one day at a time. Through options such as debt consolidation and budgeting, you stand to keep your budget afloat. Here are the top four tips for how to make it all happen:

Know where your money stands: Where are all your assets located? How much do you have in stocks, bonds, money market accounts, and your day-to-day checking? How much do you want to touch, and how much would you rather leave alone? Once you’ve determined the monies that you will be using to pay off debts, figure out a plan for repayment and begin living up to it.

Avoid unscrupulous lenders: There are far too many people out there claiming they will help you achieve financial independence that are nothing more than cheap salesmen looking for a quick dollar. How do you avoid these guys? Start by asking around. See what organizations they are affiliated with. Track down some background history. Once you are ready to meet, observe how they talk about your options. If they are more concerned with pushing a debt consolidation down your throat than they are finding out if it is right for you, then they obviously have their own best interests at heart.

Make sure you have a budget in place: If you are not budgeting already, then no wonder you are in trouble. A budget is the key to financial independence. Now that doesn’t mean you have to micromanage right down to the penny (although it certainly couldn’t hurt). But it does mean, you should have a reliable estimate about where all your money is going, and how much is left over once it gets there.

Always make more than the minimum payment: When a person goes through with debt consolidation, they usually have more discretionary income at the end of a given month. Unfortunately, they often use this money to create new problems, rather than making a little extra and shaving off their debts further. If you really want out fast, allocate more than the required payment each month, and watch the principle shrink.

No one financial method is the prescribed cure for all situations. However, debt consolidation practices are a huge help to those of you who are sick of having the burden hanging over your head. Just don’t think that it gets you off the hook or causes you to have to think less. Debt consolidation is a step. So is debt management, budgeting, and following through. The rest, as the old saying goes, is up to you.

Greg McGrath of Debt Control has been helping Australians with Debt Consolidation for the past 23 years. Contact us today to free yourself from debt.

Article Source: http://EzineArticles.com/?expert=Greg_T_McGrath

http://EzineArticles.com/?Top-Four-Debt-Management-Tips-to-Keep-Your-Budget-Afloat&id=3579461

The most effective way to report disputes in your credit report are by sending written letters containing disputing accounts that you want deleted to the three credit bureaus.

Take for example; an account older than seven years still exists in your credit report despite the Fair Credit Reporting Act which states that account older than seven years should be deleted from your report. To resolve this, you can write a credit repair letter to the bureaus requesting that the account be deleted.

Note that for every dispute found a separate letter should be written. You should also include a copy of your driver’s license with your letter.

Here is an example of such a letter.

Equifax Consumer Services

To Whom it may Concern,

My Name Is Tim Brown, my current address is 1210 gold street, Silver Spring, MD 21204. My SSN is 123-34-4567 and my DOB is 12/11/80.

On reviewing a recent copy of my credit report, I noticed two accounts listed which have been closed for more than seven years. As you are aware that the Fair Credit Reporting Act requires accounts older than seven years be deleted from credit reports, In compliance with this Act I would like you to please delete these two accounts from my credit report as soon as possible.

Here are the details of the accounts that I am referring to:

Citifinancial Mastercard:

Account Number: XXXX-XXXX-XXXX-XXXX

HSBC VISA

Account Number XXXX-XXXX-XXXX-XXXX

Attached to this letter is a copy of my driver’s license and social security card to verify my identity. I would appreciate a copy of my updated report sent to me as soon as the correction is made.

Thanks for your cooperation with regards to this matter.

Sincerely,

Ken Washington.

Visit self credit repair to learn how to raise your credit score by 50 or more points to get approved for cars, and home loans on credit!

Article Source: http://EzineArticles.com/?expert=Tony_Banks

http://EzineArticles.com/?An-Example-of-an-Effective-Credit-Dispute-Letter&id=3583481

This means that they borrow the money to make the purchase, then must pay it back – usually with interest. But a car is a consumable in that it loses value. Unless you are buying a classic sportscar, you’ll end up with something worth less and less over time.

A car is conveyance, meant to get you from place to place. And pretty much all cars depreciate. It’s not smart to pay interest on something that is worth less and less, you end up wasting money. Follow these rules instead to make a wise purchase the next time you need a car:

Keep away from financing. Cars are expensive, and most of us want the nicest car we can get. Loan officers at car dealership are more than willing to help us buy more car than we can truly afford.

It’s complicated and based in emotions. We have feelings about our cars. We love them, want nice ones, are proud of them. Loan companies manipulate us because of these feelings; they know we will accept unreasonable terms and rates to get what we want. You’d pay a lot less for the car if you bought it with cash instead.

Don’t lease the car. Leasing is a fancy term for renting. When you lease a car, you are making payments long-term but at the end of the term you don’t have a car to show for your money. Plus, the dealership will factor in the cost of wear and tear -and depreciation – into the leasing agreement.

This is seen by many people as unfair. You end up paying for damage, before you do anything to the car, because other people in the past have damaged cars. Worse, you pay a great deal of money for years, and at the end of the period you don’t have a car to show for your thousands spent.

Don’t buy new. A brand new car sells for absolute top dollar. It will depreciate a great deal the minute you drive away in it, because now that you own it, it cannot be considered ‘new’ any more. When you buy new, you’ll lose a great deal of money if you ever want to resell the vehicle.

Access additional writing pieces penned by this same writer dealing with subject matters such as jean shorts for men and denim shorts.