One Step Agenda for Increasing Wealth: Cut Liabilities!

Companies generate cash flow statements, balance sheets and profit and loss statements, and these are immensely useful for ascertaining the correct financial health of the company. In the same manner individuals can assess their financial health by calculating their net worth which, simply stated, is the excess of assets over their liabilities. Just like companies, individuals also need to improve their net worth over time.

About assets and liabilities

When we speak of assets we mean your home, car, household possessions, bank deposits, savings and investments, and also your income from every source like salary, interest receipts and rent. Assets will include all items that can be assigned a monetary value, market value or a direct cash value. Remember that assets purchased depreciate in value and they will not command the same value as when they were purchased. And, you cannot assign a value all by yourself; assets will fetch only that value which the public will be capable of or willing to pay.

Under liabilities you will place all loans, credit card balances, rent or mortgage, utilities and taxes; they represent all that you owe to outside parties. Aggregate all your assets and subtract all your liabilities and what you get is called as your Net Worth, an estimation of your financial stability.

Ways of boosting net worth

As any estimation of net worth involves only two variables, your assets and your liabilities, any effort to enhance your net worth should be directed towards increasing your assets or decreasing liabilities. The major problem is that fulfilling big dreams like owning a home and a car or providing education to your kids involves taking on bigger liabilities that stretch your limited sources of income. All this clearly indicates that you have to budget asset increase in such a way that the liabilities side can be serviced comfortably by existing income sources. Another point to be kept in mind is to ensure that your levels of savings and investments also increase proportionately, like for example a 401k fund. Acquiring big assets through loans must be balanced by improving your savings levels.

Decreasing debts to increase your net worth

It is well-nigh impossible to liquidate all liabilities at one stroke on a limited source of income, particularly a steady salary that grows incrementally over time. One way out is to augment your income by bringing in additional revenue through overtime or part time jobs, but this has limited potential particularly in a strained economy with strong undertones of unemployment and underemployment. But what you can do in the interim is to cut costs as much as it is practical. To begin with list down the previous month’s expenses and analyze how individual spending habits can be controlled. By trimming away the excess fat of unwanted expenditure your financial status improves visibly and more funds get freed, that can be channeled for debt servicing and for long term investments.  Proceed in this fashion for months and years and watch your assets grow as your liabilities decline.

Using a cash loan for title to cut liabilities and improve net worth

One way of drastically cutting liabilities is using a loan for vehicle title for consolidating and liquidating your unsecured liabilities like credit card balances. This dramatically improves your credit report, and prevents you from accessing cards to raise your liabilities any more through wasteful spending.

The car equity loan requires you to place your car title papers as collateral for a loan that raises an aggregate sum equivalent to 60% of your car’s resale value. The auto collateral loan levies an interest rate not exceeding 25% APR, but a highly flexible repayment program ensures that you are cleared of the liability within the shorter term without stressing your income. The pawn car title loan also offers lower amortized monthly installments that can help you extend loan payment over a longer term if that suits your finances.

Keeping and Eye on IRA and 401K Modifications

Many more Americans are saving for retirement than ever before and according to recent market surveys the average amount deposited in IRA and 401k so far is around $76,000. So, it pays to know what beneficiaries stand to gain or lose from the spate of changes proposed and likely to fructify in 2013 on the retirement planning front.

Raising your contribution ceilings

This is an area that is of concern to investors that will permit them to maximize their investments over a longer term. It was proposed that the ceilings be raised, and if this comes through it would mean that investors can stash up to $17,500 in tax deferred money in 401ks and 403Bs, and IRA account holders can save $5,500 from now on. Basically the raised ceilings allow investors to catch up with inflation. If you are a worker aged 50y years or above you can hereon contribute $1,000 in IRAs and $5,000 in 401Ks.

Bringing about more transparency through fee disclosures

The money sourced from 401Ks that is deployed in mutual funds, exchange traded funds and unit investment trusts, all attract fund management fees on a regular basis. The problem is that the majority of investors are totally unaware of these charges. In a new legislation the Department of Labor is now making it mandatory for employers to disclose the fees associated with IRAs and 401Ks from 2013.

But fees by themselves can’t give us an idea where our profits go unless we have a tool for comparing fees. Now on you are likely to see your fees benchmarked to those of bigger companies associated with the S&P index and similar benchmarks so that you can decide how the costs related to your funds compare with the returns you are getting on your retirement corpus. If investors feel that their funding is expensive they can opt to move their funds to better plans.

Concessions for higher income tax payers

Investors that are placed in higher income tax brackets have reason to cheer because the IRS is now permitting retirement oriented tax breaks that allow investors deductions from $2,000 up to $5,000. This is a good incentive to encourage retirement funding. This also benefits Roth IRA investors as it frees up a good amount of after tax money that can fuel retirement savings.

A better Saver’s Tax Credit plan for lower and middle income investors

So far as the lower and middle income tax payers are concerned they could do with a sterling combination of higher tax credits and the tax free disbursements of a Roth IRA. This may now be possible with this category of tax payers enjoying more returns in 2013 as they boost their retirement savings.

More of your savings get a chance to grow in retirement funds

The whole idea of gifting these tax breaks is to generate more tax deferred and tax free cash that can boost retirement savings so that people will have more money growing and taking care of them even if they last longer age wise.

Never lose a chance to boost retirement funding

Sometimes cash emergencies can leave you desperately short of money to fuel household expenses and generate funds for investments. Let the auto equity loan take care of the emergency while you continue to earmark savings for retirement funding. The loan for vehicle title comes powered on the wings of the collateral of your car title. The pawn car title loan will levy a softer interest rate of 25% APR that will see you home and dry through a comfortable repayment schedule which does not stress your monthly income. The maximum that you can avail through a car equity loan is around 60% to 70% of your car’s commercial value, funds that are more than adequate to take care of any cash emergency.

How to Survive Holiday Expenses without Raiding the Bank

The thought of making merry is top priority in the holiday season with the only downside being worries about mounting expenses, and when it comes to shopping you are more than likely to bite off more than you can chew. Here are tips the experts suggest to ensure you don’t wake up with a holiday hangover in the New Year.

Decide a definite budget for this season

See what you can afford without compromising too much on basics and decide a budget that will contain expenses realistically.

The best way is to keep money aside for the essentials like mortgage, rent and utilities before zeroing in on the holiday fund. Then see if you can sacrifice something like the expenses you earmarked for travel, and divert those funds for purchasing gifts. What you need to ensure is that you do not key up other expenses by overcharging your credit card to compensate for what you sacrificed.

Reduce the gift list to the inner circle only

Unlike Santa you haven’t taken a contract to smother the whole world with gifts, this time restrict the gifts to your immediate circle and gift home baked cookies or cakes to all others so as to keep everybody happy.

Spend as per your financial status; don’t spend like a king only to live like a pauper

Set aside worries what others make think if you cut expenses on gifts, everybody has gone through the grind; people would love a greeting or a kind word if they are exchanged warmly. If you can’t keep on gifting like your parents did last Christmas, you should feel no pressure to follow suit.

Keep an eye out for coupons, coupon codes and discounts

Whether shopping online or in malls do some studious research on coupons and coupon codes as they are your gateway to really good bargains this season. Use them as often as possible and watch the dollar savings counter racking up real fast.

Paying a visit and spending time, not money on your near and dear ones.

Parents, good friends and close relatives would be less particular about gifts than your personal visits that bring cheer in their hearts. These visits count a great deal. Make up for smaller gifts with bigger hugs and warm greetings.

The dollar a day saving that makes up for purchases

If gifts are irresistible and have to be purchased promise yourself you will cut their equivalent cost from some item of budgeted expense like a dine out or the sacrifice of a daily coffee latte

Try personalizing gifts and give them a creative flair

Expensive gifts can be replaced by thoughtful creative gifts that people really appreciate. If for example your brother is an avid do-it-yourself man and loves tinkering with his bike buy him inexpensive tool accessories that will make his job easier.

Do group activities instead of spending on presents

Your friends would love it if you plan a grand get together at your place or theirs where everyone brings along some special item of food and you can splurge on the wine and cakes. When everybody contributes, the celebrations become warmer and more enjoyable.

Use the car equity loan for financing big ticket purchases you otherwise can’t afford

You can use the loan for vehicle title wisely to purchase the things you craved all year long and which are now on sale at a huge discount. Through the auto equity loan you will be able to raise an amount equal to around 60% of the commercial value of your car. The pawn car title loan will only require that you submit the collateral of your car title papers for the duration of the loan, and the loans can be availed even if you have bad credit. The pink slip loan will charge less than 25% APR interest but this is small change compared to what payday loans charge for doling our smaller loans. The auto collateral loan can be paid in lower amortized monthly payments without straining your budget. Treat the loan as a personal gift and smaller sacrifice in the short term for managing your expenses with discipline.

Car Title Loans: Busting the Myths and Educating the Borrower

 

Car title loans or vehicle title loans as they have been called have generated considerable heat and stoked much debate revolving around the ethics and practices connected with this industry, and the experiences of both the lender and the borrower have occasioned close scrutiny, much of which unfortunately remains negative. Lenders of car title loans are seen as aggressive victimizers out to snatch away the client’s vehicles on the slightest default in order to make killing profits from their forced auctions, and borrowers are usually portrayed as suffering mute victims, a patently false scenario that is far removed from the truth.

loan amounts are competitive in title loansAt first glance what critics find most objectionable about the title loans industry is the all-pervasive feeling that the interest rates charged by financiers of pink slip loans are far in excess of the lower rates levied by the regulated commercial banking industry, which is projected as the repository of all banking wisdom and healthy banking practices. Such a view that vilifies the title loans industry for charging higher interest rates is patently flawed; it reveals a skewed outlook that misleads the public. Much of regulated banking rests on bigger sized loans attracting apparently lower interest rates with repayments being made in installments over a prolonged period. If such longer term loans were telescoped into their short variety, it would be interesting to see what interest rates these traditional bankers would levy. It has been coolly overlooked that the borrowers wedded to the banking industry are actually shelling out much larger sums and paying much greater quantum of interest over the longer term than their counterparts who avail the cash title loans. Yet, no one has thought it fit to accuse bankers of following predatory lending practices.

If the arguments citing interest payments are skewed there is another angle that has also been misrepresented by critics of the car equity loan or title loans, and that is RISK. The companies giving these loans are shelling out smaller sums for very short periods, often relying on their gut instincts and close knowledge of human nature to assess the good intentions of the borrower they trust will faithfully repay the money in time. Don’t forget that the majority of the borrowers that approach such auto equity loan lenders often carry a bad credit background, and that places them in the higher risk category, and nobody in traditional banking sector will touch them with a barge pole!

People also overlook the fact that even after the lenders of collateral loans or title loans transfer the title of the clients’ cars in their names and mark their lien in the books of the DMV, the vehicles remain in the exclusive possession of the borrowers. The borrower has availed the money and uses the car for the duration of the loan, and the lender is forced to bear three types of risk-the risk of theft of the vehicle, the risk of accidental damage and the risk that the owner may not maintain the car in good working condition, and all these risks have the potential of seriously reducing the salability of the asset in the event of loan default.

From this it becomes clear that the lender of auto collateral loans or title loans is financing a borrower whose income is already stressed, and he has collaterally secured a car that is not under his immediate control and custody. Therefore, when these title loans are sanctioned there is a legitimate compulsion to charge higher interest rates to offset the risk inherent in this type of lending, and also make a profit. The auto collateral loan industry averages interest rates of around 30% APR, which is quite reasonable when you finance under the burden of these serious risks.

Before entertaining thoughts of availing such types of loans the prospective borrower ought to consider the following crucial tips to ensure he makes the right decision backed by sound judgment:

  • – Consider such fast car title loans only if he is confident that there is a fund inflow that will satisfy his repayment obligations. If there is no back up fund, the chances of defaulting increase and the borrower may succumb to the temptation of recycling the existing loan with more interest added on.
  • – Research you locality thoroughly, get to know your lenders, study their offers, compare rates and zero in on lenders who offer the best deals, backed by a good reputation for customer care.
  • – Clarify and quantify all the charges involved in pawn car title loans like processing charges or handling charges and appraisal expenses, and also seek clarification  whether the interest rate is within the acceptable band of 20% to 30% APR.
  • – Resist the temptation of withdrawing cash up to the full loan eligibility calculated and based on the car’s resale value; take only what is required to see off the financial crisis.
  • – If you see less of the lender and get more marketing fizz and pop from the sales people, nobody seems bothered to discuss the loan details and if everybody appears to be in a hurry to get you to sign the dotted line, the chances are that you are dealing with predatory lenders charging exorbitant interest rates-avoid them at all costs.
  • – The contract for title loans is a legal document, so try to sit down and read the small print because there may be clauses deliberately inserted that restrict arbitration and deny you recourse to the courts of law to redress your grievances.
  • – To the extent possible try to come out of the debt as fast as possible; no matter how hard it may be, try and save cash or keep aside some money that can be used to accelerate repayment. Needless to say, wipe off the loan immediately as your financial situation improves.
  • – Explore and consider all options to solve your financial woes; perhaps you can sell some asset or the car itself and get a better deal.

It goes without saying that the both the lender and the borrower who avail the title loans have to act sensibly; the lender must ensure that he follows the laws of the land in letter and in spirit without misguiding the borrower, and strive to provide him all the information that enables the right decision, and the borrower on his part should avail the loan only if he has the capacity and wherewithal to repay the loan in complete sincerity.

Your Title Secures a Loan and Temporary Stability

 

Car Title loans basically refer to a loan facility that istitle loans equal fast cash provided against your car title as the security or collateral for the loan. These facilities are in most cases short term and might have a higher interest rate than other loan options, however there are many advantages associated with car title loans.

 

a.) The time taken to process the loan is very minimal compared to other loans. They can take as a few minutes to a maximum of one day to have the loan approved, giving the borrower the ability rapidly sort out their financial concerns and to regain their financial footing within a short period of time.

 

b.) Lenders of car title loans do not consider the credit rating or history of the borrower but proceed to issue the loan as long as one has their car title to back it up. What is checked for is the value of the car and probably its condition. No one checks to ensure that the borrower has a regular source of income, this has greatly helped individuals without a payslip to benefit and salvage their financial situations when need arises.

 

c.) People who are already experiencing cash flow problems or financial difficulties can also benefit from these loans as long as their car title is in order. This makes car title loans very handy and having helped many people move away from financial strains at a point in their life where they could not secure a normal loan, a car title loan ensures that they redeem themselves from difficult situations and achieve stability.

 

d.) A car title loan is also very flexible considering the amounts of money that can be borrowed range from as low as 100 dollars to as much as 4,000 dollars which does not meet the threshold of most financial institutions that would require you to borrow at least 1,000 dollars even if you need less and on the other hand charge more interest even on the amount you did not require.

 

e.) In a case where the borrower is unable to repay the car title loan as agreed, they can have the remaining amount rolled over and get another car title loan to offset the balance and start a fresh agreement. However there is a limit to the number of times one can do this.

 

Some lenders of car title loans might require that the car used as collateral has full insurance and is fully paid for and is not currently being used as collateral for any other loan. The interest rates may also vary from as low as 36% or higher. However these rates vary and depend on many factors including the following main considerations:

 

Location of lender and state regulations.
Terms of payment agreed upon.
Duration of repayment.
Amount borrowed.

 

Car title loans are a good form of loan facilities but should also be taken and used wisely to get the best from them. It is also of paramount importance for the borrower to seek various comparisons of the available lenders which can easily be obtained from seeking online quotes to ensure you get the best deal that makes most sense for your current situation.

Title Loans Vs Payday Advances

 

With the current surfeit methods to be found in most areas regarding short-term loans, it becomes pretty confusing when selecting what type of resource to try. During grim times, the best choice is to look for financial loans that include instant money, low interest rates including a convenient payment plan. Picking and choosing from many resources, the ultimate concern is to make up your mind about title loans or payday loans.

 

Often the query in which comes up is whether or not there is a distinction between each along with which one of these is for the best? Title loans for cars are meant to provide rapid hard cash to people who own cars who receive figures proportional on the equity from their automobile. Pay day loans, on the contrary, aren’t in accordance with a person’s car but rather on your wage. The latter, on the other hand, supplies lower loans featuring more costly interest rate.

 

Once struggling with fiscal difficulty, title loans present customers financial help exactly when they require it the most. This is an applicable selection for those individuals that are lacking favorable credit background as there are no credit checks. Also, it could be a method to raise your credit ratings seeing that compensation conditions are adaptable of which virtually anybody will be able to provide the amount during the specified time.

 

title loans gets you moneyIn addition, web title loans are accompanying a hassle-free and easy application process. Not surprisingly, certain qualifications should really be attained; however, these are minimal documents that are required just like your state ID combined with driver’s license. As a result, the financial loan you’ll acquire works by any means; additionally you have full access to your automobile.

 

Meanwhile, pay day loans are costly because their APRs can range around 390 and 900 percent which amounts to nearly $25 from each $100. Including charges charged by the fast payday loan experts may be high along with unpredictable. Doing this adds to the charge for loaning, resulting in the actual fiscally unstable person in an even more horrible situation as compared to prior.

 

Next, fast payday loans can become unmanageable i.e. they might build up with a surprisingly fast velocity that can cause a failure to repay. This would leave you with terrible credit. If ever, for instance, your online payday loan service supply you with extensions; that too will likely be harmful as your rate of interest will mount up dramatically.

 

Thereby, in case you’re hunting for short-term loans, automobile title loans seriously is a much more fantastic route than pay day loans since they don’t take advantage of your position, when compared to the latter option associated with finding loans.