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Personal Finance

Who Manages Your Personal Finances

Who manages your personal finances? Seems like a silly question, but if you ask many people they will tell you, “no one, my money doesn’t need managing”. “I just pay my bills and spend what I can”. I hear this quite often with those who make a lot of money and those who make a little money.

They are clueless about the fine tuning of their budget and creating finances that will create money that lasts. It is imperative that you
understand budgeting tips and investing tips that create financial
growth.

When I give meeting attendees just a few of my suggestions they are surprised at the information that will change their lives. They were surprised to find how hard it is to get the right information.

The following are three things you can do to improve your personal finances. This is part 2 in a four-part series I am writing this month on personal finance.

Budgeting tips, investing tips and save money;Money, Understand that it is complicated, budgeting counts


MANAGE YOUR OWN FINANCES

Managing your own personal finances is crucial. Why does that sound strange – most would say, of course, I manage my own finances? But, for many, that is not true. Wives let husbands manage all the family finances, and there are husbands that let wives handle all the family finances.

Then, there are elderly people who allow adult children to manage their finances. There are even people who allow complete and total strangers to manage their finances since they are convinced they are not capable.

You can and you should manage your own finances – get personal with your finances and stay that way. Married couples should manage their finances together, and everyone else I mention should stay close and manage their own finances – this is the core of personal finance.

If you don’t feel competent enough to manage your own finances, you should think seriously about finding the time or finding help learning how.

Home buying the right way take skill


YOU CAN GET YOURSELF OUT OF DEBT

I have heard of folks turning their money over to a small business that manages their money to get them out of debt. You can get yourself out of debt if you got yourself into debt. With budgeting tips from MsFinancialSavvy and understanding investing tips, you can monitor your own finances. You know far more about your finances than strangers will ever know.

It is ok to use someone to help you get out of debt but work with that person hands on. Don’t turn your money over to someone else to do it for you.

Not only should you not turn it over, but it is important that you stay close to the process so you can understand how to get out of debt and how to stay out of debt.

Once you have an awareness that you are at a level of debt you should not be in, start to think of what got you there and create ways to stay clear of returning to debt.


UNDERSTAND YOUR FINANCIAL HABITS

Managing your finances and getting out of debt begins with an understanding of your personal finance habits. Some habits are so automatic, it is as if some are spending money with their eyes closed.

They fail to understand the seriousness of their blind spending and the future implications.

You know you are engaged in blind spending when you ask yourself at the end of the month, where did my money go? Create your own budgeting tips, investing tips and create your own ability to save money. You will never be blind to your own finances.


Get Your Finances Right With This Detailed Money Management System, Get honest with your finances, get honest with your spending, and start your journey now.

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Who Manages Your Personal Finance - Here are 3 Ways to Manage Your Personal Finances with Budgeting tips, Investing Tips and Save Money

Personal Finances That Rock

To get personal finances that rock understand that there are many ways to achieve a given task. You only need to use one to be successful. The one that works of course.

I have used many ways in the past to create successful personal finances that rock, so I will attempt in this article to outline a few that have worked and will last.

The first thing you must understand is my definition of personal finances. In my opinion it is simply staying close to your finances. Understand everything possible detail, about every single financial decision you ever make. That begins with decisions about the smallest items to the largest.

Do personal finance research, ask people you know who have had to make those decisions. Many of them will tell you the mistakes they made so you won’t do the same.

I speak to people all the time who tell me they must consult with a salesperson about funding a retirement account. Then they ask salespersons about buying a home, which car loan to get, or if they should take out student loans.

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You should have the ability to answer the above questions yourself if you are involved in your personal finances, the right way.

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Do your research, talk to people close to you, get an idea of what is best for you, so at least you are in the ball park before you think about a purchase.

That way you will not let a sales person lead you a stray or someone else who is not qualified to tell you what to do.  You instead, will direct him or her. Here are three suggestions for developing personal finances that rock by organizing your finances and doing personal finance research.

1. PERSONAL FINANCES THAT ROCK ARE YOUR RESPONSIBILITY

Make up your mind that it is your responsibility to get personal with your finances. There is no one out there who will cherish and adore your finances as you will. If you are having a hard time making finances personal, you can use a series of techniques to make peace with your finances.

Many of you have heard messages over the years that you can’t manage your own finances. It must be either a spouse, parent, salesperson or other person. Not true.

The More You Know, The More You Grow,Your Money               ---Lois Center-Shabazz

You can change that way of thinking by changing the way you think. Use personal  affirmations, and visualization.

Just like any other positive thing you want to bring into your life, you can bring in the ability to manage your finances. By writing positive affirmations about managing your finances and visualizing yourself managing your finances from daily to monthly – you will be successful.

2. GET YOUR FINANCES ORGANIZED

Get organized like you’ve never organized before. Don’t be afraid to guerrilla organize your finances. Set up a system for bill paying, saving money, and paying down debt.

Then set up a system for spending money on things you need first and things you want second. If you can’t afford to buy it, it may be that you can’t afford to buy it now. You may afford it down the road as you pay off bills, and save money for it.

In your record keeping system start with what you have and what you want to end up with in 2 years, 3 years and then 5 years.

Major purchases take a lot of research, to purchase a car correctly, a home, or an education. Realize that it takes time to get your finances in order and research is necessary.

Your personal finances will not be build up in a day or a month. But, if you organize your finances and create a plan, they will be eventually build up. You will create personal finances that rock.

3. CHANGE THE WAY YOU THINK ABOUT PERSONAL FINANCES

Get help and follow directions, remove your old ways of thinking about your personal finances that did not work. Things that don’t work are keeping too many credit cards, charging too much on credit. Also using loans to replace loans (like loan consolidation), will keep you in debt.

Work to pay off  loans with money from savings or income or simply buying what you can’t afford.

Home buying the right way take skill, organize finances, create personal finances, do personal finance research, make personal finances that rock

Thinking that things will make you happy, when in fact the happiness with things last only a short period. This is especially true when you find you can’t afford to pay for them, major depression sets in.

Write down the advantages of getting personal with your finances. There are many

1. You save money easier
2. You will purchase what you can afford
3. You can work your way out of debt or stay out of debt
4. You can avoid getting cheated in purchases by unscrupulous salespeople 5. The peace of mind you get when your finances are in order
6. You can hedge against losses if you lose your job or the economy goes bad.
7. You can concentrate on other important things in your life that need your attention.

Summary: Now you should understand that if you want personal finances that rock there are a few things to do. You must first know the definition of personal finances. After you understand that organize your finances, then start your journey of personal finance research.

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Money Strategy

You Can Create a Successful Money Strategy

If you create a successful money strategy, you can start wealth building. But, first you have to know what wealth building is and is not. Wealth building is not just making a great income or accumulating money or things.

Talk to all the movie stars, athletes, singers and those who have inherited millions only to find themselves living in poverty somewhere down the line. Why? For most of them they thought wealth-building was single faceted and existed only as a million dollar income.

Read More

Dream Finances

Build Your Dream Finances Now

I have talked about wealth building in another article. Now I will tell you about Dream Finances. I prefer to use the term Dream Finances, since more of you understand that term. The issue is Dream Finances versus Nightmare Finances. Dream finances include a portfolio with guerrilla budgeting, mutual funds for savings, and home buying the right way and

Dream Finances is defined by me as having the finances that allow you to sleep like a baby at night. You are living below your means, and all your financial systems are in order. Bills are easily paid, savings overflow, and investments are growing.

Dream Finances Will Allow You to Sleep Like a Baby at Night.

Read More

Understanding Money

Understanding Money is Harder Than You Think

If you are going to have enough money to live off, save and invest. You first must understand money and how it works. It is not difficult to understand money, but it does take time and attention to learn the process. You need to do a lot of reading, research, take courses, and develop an understanding of all the nuances of money.

How Does Money Work?

If you do not have much money, you may need to ask yourself, “how does money work? “How do I prioritize money issues?” It sounds so simple, just make money, and spend money the right way. But spending money the right way has proven elusive to many intelligent people.

There are those who make a lot and end up with nothing. There are those who start with little, make a lot, then end with billions. What is the difference? The latter have figured out, “how money works” by understanding money and all it entangles.

Read More

Creating Great Personal Finances in Marriage or a Partnership

Creating great personal finances in marriage starts way before you get married.

PERSONAL FINANCES DURING THE DATING PERIOD

You can get a snapshot of your friend’s personal finance habits by discussing your likes and dislikes while your relationship is in the early dating stage.

This is beneficial because if you see someone who has really bad habits early, you can block yourself from taking the relationship any further. Great personal finance in marriage begins way before marriage is talked about.

Relationship therapist site that one of the top three reasons for divorce is financial problems. Either one or both people in the relationship are over-spenders and don’t pay attention to debt, that is a recipe for disaster. Get out early and save yourself from a long relationship of misery.

Signs of Someone Who Mismanages Money Terrible:
1. They live a lavish lifestyle for their income,
2. They complain that they have debts they can’t pay,
3. You witness them mismanaging money when it comes to paying bills or refusal to live within a budget.
4. They asked you to pay when you go out and it’s their turn.
5. They borrow money from you while your dating
6. A huge sign is if they asked you to sign for a big purchase they can’t qualify for such as a car or motorcycle.
7. Owes money to the IRS – your check could be garnished if you file jointly and your new spouse is not paying. If one or more of these signs exist, especially number 5 or 6, it may be time to leave the relationship now.

PERSONAL FINANCES DURING THE ENGAGEMENT PERIOD

Discuss personal finances after you get engaged, this is crucial since good finances are a major aspect of good marriages. The more you know and agree on early the better your finances in the long run. The engagement period is your last chance to evaluate your future spouse before you get married.

This is when you get deep into habits that could make or break a good marriage. One of those habits is spending. This is your last chance to identify your chances of getting great personal finances in marriage that will be lasting.

Don’t use this period to brag about your ring or only think about the type of dress or tuxedo you want. But, focus more on the fact that this is your last chance to get to know each other on a deeper level.

Ask a lot of questions of each other before you are married, obtain and share your credit reports with each other, work to get both credit reports in good shape before you get married.

Pay off any excessive debt either of you may have, pay off bills that may hinder a good relationship, sell off things you don’t need, and could be used to pay off debts. Understand how personal finances (budgeting-spending-investing), now, will affect your relationship later.

If one or both of you has bad finances or bad financial habits now, you may not be a good fit for marriage to anyone soon. It’s ok to get out now, even though the rings and dress have been purchased. It is far cheaper than a divorce.

PERSONAL FINANCES IN MARRIAGE

After you are married, maintain good finances together to help maintain a good marriage and a good family life. As stated before, marriage counselors state financial problems as the main source of marital problems and eventually divorce.

Maintain good finances to help maintain marital bliss and a financially stable life together.  Secure finances, that includes a financially secure home life, includes the frequent discussion of and analyzing.

You are now responsible for the finances of one another. One with poor finances could affect the purchase of a home or car. One with poor finances could put the family into an unnecessary bankruptcy. If you lose one spouse to death the other is responsible for paying off their debts, if the debts are listed only in the deceased name.

Some debts are transferable through estates, some are not. As a married couple, there are benefits to purchasing a home or car together, keep finances strong together so these purchases will be possible.

If you find yourself in the unfortunate scenario of marrying someone who is a terrible money manager, that can be fixed if the person is willing to admit it and work with you to change. Start with my free personal finance worksheets available on this website.

Here are some helpful tools you can use now! All free for my readers

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Life Without Affordable Health Care

The Affordable Health Care Act
Life Without Affordable Healthcare

Also known as “Obamacare”, has been in operation for about nine years now, as of 2019. Unfortunately, there are some politicians who have politicized it, and now patients are in jeopardy of losing their Affordable Health Care Coverage. Many did not know the health insurance they held, was given to them under the Affordable Health Care Act, according to polls.

The Health Care Debate

There has been a lot of debate about the government provided health care coverage in the United States. Who would have thought there would ever have been a debate about saving lives? With the uninsured rate sky rocking from 2 million in the 1970’s to over 50 million (uninsured and under-insured), before the government-sponsored health coverage began. We would have thought everyone would have been ecstatic about its lifesaving function. After all, the politicians who don’t agree with it get government sponsored paychecks, pensions, and health care.


Is Health Care Important if You Are Not Rich

There are many reasons health care is important; it encourages Americans to visit the doctor on a regular basis and go to the hospital when needed. What happens when you have no health care and no other way to pay when you go to the hospital. There are a few devastating things that can happen. First of all, many uninsured will stay away from doctors and hospitals when they are sick, and continue to get worse. But, equally devastating is the financial aspect, if you own a home, they can eventually place a lien on your home and do a forced sell to pay a large unpaid hospital balance. They can also get a court order to garnish your check for payment. Now, would you rather have government sponsored health care, (with subsidies, to help for payment, if you make under $50,000), or would you rather lose all of your assets for (potentially) the rest of your life.

Small Business and Health Care

I spoke with a small businessman about health care. He has 3000 employees nationwide. He was really upset he had to provide health care for his employees, initially. Then, he complied and went into shock. His employee attendance rate increased by 50% immediately. His employee morale increased drastically. He was happy to find out he also received a subsidy to help with the payments. It was a win-win situation for everyone involved. His best surprise was that health care worked wonders on his business bottom line, despite his previous misgivings. His employees revealed they stayed home with the slightest illness because they were afraid to get sick. They could not afford to go to the doctor or hospital, without the fear of either being turned away or financially devastated as a result of treatment.

Car buying for women and girls.
Health Care From a Physicians Point of View

Another health care scenario is that of a physician I spoke to who worked in the emergency room for 6 years. He said the first person to usually see the incoming patient is the insurance person, if not immediately, soon after arrival. He witnessed one of three things: The person was given no treatment if they had no insurance and appeared to be ok, or band-aid treatment, that is enough to make them comfortable and safe at the moment if they had no insurance. Or, treatment with a huge bill sent to them if they had a job or home. Before the Affordable Health Care Insurance, a few patients were
treated and given the government hospital subsidy if they qualified.

Do You Really Need Health Care

I am trying to establish a pattern why you need to have health insurance if you are uninsured or under-insured (many individual plans will place you in the under-insured category without your knowledge), and be grateful that you have affordable government options if you get sick, just as the politicians have. The companies providing the coverage are private insurance companies.

The affordable health care insurance is for those who don’t have health insurance or are under-insured. It will provide yearly physicals and health maintenance procedures like mammograms, colonoscopies, pap smears, and physicals to help maintain your health or catch problems when they are small and treatable. You will also be covered for hospital room and board, as well as hospital procedures. Concentrate on low deductible and low payment insurance plans to keep it affordable for you and your family.


Affordable Health Care Update 2019

For health care you can get coverage that starts January 1, 2019, if you sign up by December 15, 2018, you have until January 31 to get covered for the coming year.

If you lose your job, get divorced or lose your insurance, you may be able to sign up anytime. You may also need to re-sign if you move to a different state.

Here is the health care web page: Affordable Health Care Website


Affordable Health Care Update 2019

Unfortunately, at this point, I don’t know what the future of the Affordable Health Care Act is. The new administration is committed to destroying it.

A friend of mine is a specialist in medicine with many very sick patients who are currently in the middle of expensive medical treatments, under the insurance bought with the affordable care act. The republican administration says they have a replacement, but we have not seen a viable plan, only promises. A friend of mine who is a specialist in medicine has several republican patients getting serious treatment.

They were not aware that the Affordable Health Care was the same as “Obamacare”, now they are terrified that they may not be able to finish their medical treatments. Hopefully, they will re-think their position and allow lives to continue to be saved with Affordable Insurance. Out local newspaper just reported that a major University Hospital that gets tax breaks and government subsidies is regularly putting liens on the homes of patients without health care and garnishing checks of people who work at places such as walmart. Get insured and stay insured.

Save Money Like a Pro Now:
The Secrets to Successful Home Buying for Women

Lois Center-Shabazz | Course Delta Agency
Personal Finance: Author, Blogger, Course Creator, Money Strategist

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Personal Finances Should be Personal

Your Personal Finances

I was speaking at a women’s meeting about personal finances and a young woman, about 35 came up to me and ask me what are “personal finances”. I was really shocked since being there meant that she was in some way affiliated with a business she owned.

She looked me in the eye with a very serious face. I pointed to her and said “your – personal – finances”. Your finances that you take very personal. You monitor, you manage, and constantly improve your finances yourself, even if you have help. It’s crucial that you understand your own finances.

It seems like it would be common sense to understand the term personal finance. But, the definition seems to elude some of the most intelligent, and highly successful people. The proof is in the finances of many.

The workplace embezzlements of high-level employees, the bankruptcies of high-income people, the general personal finance mismanagement of people which becomes evident when they lose a job and lose all or most of their assets due to mismanagement.

I CAN SUM IT UP IN 3 WAYS:

  • RANDOM SPENDING

Take your finances serious – don’t randomly spend money. This is the most important aspect of personal finances. Some folks act as though the money they have in their checking account belongs to someone else, so they spend it until it is gone or before all bills are paid.

Then they go to the credit cards, when those run out, they go to others to borrow money and make up the difference. Then they lose relationships, which is can be more serious than wasting their money.

  • TRACKING YOUR SPENDING

Keeping track of your spending is getting very personal with your finances. Most people don’t understand how fast money goes when it is spent randomly. You can see this also when you charge on credit cards the balance escalates rapidly.

A major aspect of getting personal finance maintenance is paying cash as much as possible unless you use a credit card for points and you have the money and discipline to pay off the balance once a month. With frequent credit card use, many tend to lose track of spending, and their finances become very impersonal.

  • BUDGETING YOUR MONEY

I talk to people all the time who tell me they thought they were budgeting until they read many of my budgeting articles and the advice I give on budgeting. My program includes guerrilla budgeting.

With all the distractions, we have – advertising – expensive products – overpriced cars and high maintenance homes- getting personal with your finances means that you must create a guerrilla budget to survive no matter what your income.

Some folks think all they must do is make more money until they find out they spend more for things and get more expenses, so they are either in the same place or worse financially, as income goes up. They realize the problem is they did not get personal with their finances.

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The Reason Your Personal Finances Should Be Personal

Buying a New Car, The Pros and Cons

Buying a New Car

There are many pros and cons to buying a new car. Below, I attempt to outline some of the most important factors to consider before you decide which car is best for you.

Learn car buying skills like a pro, the pros and cons of buying a new car

NEW-CAR DEPRECIATION

Depreciation is the value cars loose after you drive them off the lot, different cars depreciate at different values. Some cars have a high depreciation rate, and some have a low depreciation.

Potential new car buyers research the depreciation schedule of the car you are interested in.

Depreciation will not affect you much if you plan to keep a car for several years, and you will eventually get the value for your car. But if you change cars in a few years you will be affected and may even lose money.

The pros and cons of new car buying, it takes skills

In the past, if a new car was in an accident you could lose money due to the difference in what you owe versus the depreciated value, this happens if you don’t put down a large down payment.

Now, there is something called gap insurance, that you can purchase when you buy your new car and put down a low-or-no down payment. Gap 
insurance doesn’t always work, but it sometimes helps.

There are many ways you can research the depreciation of the car you are interested in, by searching the many car analysis websites, before you decide on a car.

According to Edmunds, one on the many car analysis websites, on average a new car loses 11% of its value the minute you drive it off the lot.

During the first 5 years, the average car depreciates by 15%-25%. After five years the average car is worth 37% of what you paid for it at the dealership.

THE MOST EXPENSIVE WAY TO BUY

A new car is the most expensive way to buy a car when you consider the price of the car is at the top, and you must pay new car warranty service.

Insurance is the most expensive due to the loan value and replacement cost, and car registration or taxes are at its highest.

The ultimate guide to car buying for women
FIRST YEAR WARRANTY SERVICE

New cars have a warranty for the first year, and most have additional warranties for major items that go on for 5 to 10 years. To keep your first-year warranty active, you must get warranty inspections, usually about every 3 – 6 months. 

Maintenance schedules vary according to make, model, and car manufacturer, your dealer will give you the maintenance schedule.

A major area many inexperienced new car buyers forget to include in their budget is the cost of the new car warranty service.

Get this information from the car dealer, before you decide on your car. Some new cars have a hefty new car warranty service.

The cost of the new car warranty service is what causes financial problems for many inexperienced persons.

Find out what the new car service cost before you purchase a new car. It is required to keep your first-year warranty in effect.

RECALLS OR LEMONS

There are those who think if they buy a new car, they will have the perfect car with no problems. That is not true. Pay attention to the recalls on new or near new cars.

You can research the recall schedule for the car you are interested in. One person, I talk to about car recalls told me he was forced to park his near new car because he kept getting recall notices.

He got a total of 37 recalls by the time I talked to him and simply did not have the time to take the car to the dealer at that time.

If these recall issues are not resolved, it can cost thousands of dollars in repairs down the line if the car is passed on to someone who does not check for the recalls.

It may also make the car unsafe to drive if the recalls are not addressed.

LOW MAINTENANCE VERSUS HIGH MAINTENANCE CARS

Low maintenance cars have two advantages. One, they don’t take a lot of your time. Two, they don’t take a lot of your money. Constant unexpected major car repairs are a large part of budget busting.

You can look up car maintenance history on cars at all the car analysis sites. New cars with high maintenance schedule should be avoided, this is another hidden cost.

During the car note period and after the warranty period, a high car maintenance bill could cause you to park it until you have maintenance money.

A low maintenance car is a more affordable option. Some cars have a high repair rate as near new cars and some have low repair rates as used cars.

If the potential owner maintains a regular maintenance schedule, with regular oil changes and tune-ups, and when something goes wrong it will be taken care of early.

Long Term Performance

Some cars last for several years without major problems some only last a few years. Check out the long-term performance of your car to see if you have a high maintenance car that requires a lot of repairs as a used car.

New Car Research

There are websites all over the internet where you can research new cars for cost, depreciation, new car repairs, warranty cost and just about anything else you need to know.

The following come to mind – Edmunds, consumer reports, Carfax, Kelly blue book (kbb), and many more. The important thing is that you do your research before you buy the car.

The pros and cons of buying a new car

–Helpful Tools–

Lois Center-Shabazz | Course Delta Agency

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3 Types of Predatory Debt You Need to Know About

3 Types of Predatory Debt You Need to Know About

The types of debt you get matters, and many don’t understand that. Here are 3 types of predatory debt effecting millennial’s and gen x’ers debt snowball.  The 3 types of predatory loans is where the most confusion comes in, and later the pain and sorrow is packed on for years afterwards.

So, in case you wonder how debt snowballs, it starts when you don’t understand the predatory nature of some debt, that can last for decades.

There are many different types of predatory debt, but I am only discussing those that destroy lives without understanding them.Remove predatory debt, Ladies for peace of mind when you buy a car you must understand the rules.

PREDATORY LOANS CREATE PREDATORY DEBT

A predatory loan is usually difficult to understand, not well-explained, is high interest, and can snowball quickly and easily and cause predatory debt. Don’t get caught up in advertising propaganda that gets you snagged with bad debt appearing good. Do your homework, do your research and know the various loan products as well as how salespeople fudge the truth about loan products.

USED CAR LOANS, CAR TITLE LOANS, AND UNSUBSIDIZED LOANS

Used Car Loans – many have terms that have unbelievable interest rates. But many I have spoken to who were caught in this web, did not understand the high interest or bad terms in the loan.

Unfortunately, many states have laws that protect unscrupulous car dealers. And, some millenials and gen x’rs who buy cars from used car lots without the benefit of prior research get stunned when they get the loan paperwork.

If you have good credit, you can get a good loan from your bank, credit union, or the used side of a new car lot. Most new car lot financing offices are tied to local banks and credit unions. So, don’t get snagged with a bad loan because you don’t understand how different types of car lots operate. 

Payday Loans – many users are encouraged to roll over their loan weekly because they don’t have the money to pay the loan. After a year of doing this your interest can morph to over 300%. Car title loans have a similar problem, many lose their cars according to a PBS special which showed a sea of cars taken from the car owners.

In most of these cases, you will find that the loan was not nearly as useful as the misery that followed. Why would you risk a car worth $4000 to get a $500 loan and then find that you can’t repay it, so you get caught in the tangled web of rollovers until you loose your car.

It is not worth the risk. A better option is to borrow from close family, your credit union or a bank. An even better option is to find extra work to make the money you need. 

Debt, the wrong kind is crippling. Use good debt to buy a rental property

Unsubsidized Student Loans – I have had several college graduates contact me about this issue and none of them knew what their unsubsidized loan was until after they graduated.

Upon graduation they got the shock of their lives, with a loan balance far above what they borrowed and were confused. I explained to each one that they have an unsubsidized loan (as opposed to a subsidized loan, where interest is subsidized by the government while in school).

Women buy cars, learn the right way

With an unsubsidized loan  the interest is charged to the student, while in school. Most don’t understand or have money to pay the interest while in school, so it accumulates.

The unsubsidized loans I have seen have doubled in balance (or more), from the original loan balance when the interest is added to the balance after graduation. Now they have a huge balance of double or more from what they borrowed, immediately after graduation.

These are one of 3 types of predatory loans because it is almost impossible to file bankruptcy on them.

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This is one reason some students are skipping college to choose to work their way up on a job or go to a college they can pay from work and parents. Some student loans are taking 25 years to pay off, these are various types of unsubsidized loans or education that was simply way to costly for the degree.

The more you understand about the 3 types of predatory debt the easier it will be to avoid it, and the lifetime horrible consequences.

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Lois Center-Shabazz | Course Delta Agency
Personal Finance: Author, Blogger, Course Creator, Money Strategist

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How to Buy a Car From a Private Owner

BUY A CAR FROM A PRIVATE OWNER 

HERE ARE 3 OF THE MOST USUAL WAYS CAR BUYERS BUY A CAR FROM A PRIVATE OWNER

The main things a buyer needs to look for is legal ownership, that the car has DMV registration, and a car that has no outstanding recalls or major mechanical problems.

If the car has major problems the seller should disclose all problems with the car, so the asking price will be based on the true value of the car.

Just as I have recommended before it is important to get the VIN# and license plate of the car. The first research with these items should be with your local department of motor vehicles – they will verify the legal ownership and registration of the car.

You can follow up your research with the online services that give you information about the car via the VIN# and license number.

Here are 3 of the most common ways to buy a car from a private owner:

  1. BUYING FROM A CLOSE FAMILY MEMBER, NEIGHBOR, OR FRIEND

The best opportunity is when you buy a car from a person you are close to because you are more likely to be familiar with the functions and mechanics of the car.

Also, a family member or close friend will be more likely to let you know what the true status of the car is. Even if you know the person well, it is still important to verify the status of the car–it’s ownership and legal status.

Learn car buying skills like a pro

  1. BUYING FROM A NEWSPAPER AD

This is a little more complex way to buy a car from a private owner who you are not familiar with. The verification process is crucial in this situation.

It is rare but, there are those who sell cars that don’t belong to them. They use false identification and sell stolen cars that have not yet been reported, or through some other process.

Because of the many ways strangers can sell illicit cars, it is important to take your time and go through a verification process. Start with asking for a driver’s license and car registration that match, before you look at the car. Make sure the car is insured before you test drive it.

  1. BUYING FROM SIGNAGE ON A PARKED CAR

Some cars are left on the side of the road by their owners with signs “for sale”. Those that are parked in the driveway of the owner’s home is the best bet because you have their address, if it matches the registration, it is most likely their car.

If it is parked on the side of the road, it may or may not belong to the seller. So, be cautious and go through the verification process.

Make sure you 1. See the seller’s driver’s license, 2. See the car registration, 3. Take the VIN#, 4. The license plate number on the car – all this should be taken to the DMV and other verification websites. Of course, again, make sure the car is insured before test driving it.

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Buying a car from a private owner can be tricky, some have been found to be stolen, and some are simply bad cars. Remember to always get these cars checked out by a mobile mechanic.

And, make sure the VIN#, which appears in the lower corner of the front windshield always matches the car description.

From the VIN#, you can also get the history of the car such as reported car accidents, totaled out cars that are patched, flooded cars and history of owners.
An excerpt from the eBook, “The Ultimate Guide to Car Buying for Women” by Lois Center-Shabazz

Lois Center-Shabazz | Course Delta Agency
Personal Finance: Author, Blogger, Course Creator, Money Strategist

Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here

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The ultimate guide to car buying for women

The ultimate guide to car buying for women

3 Surefire Ways to Save Money on Car Buying

How to Buy a Car From a Used Car Lot For Women

Buy a Car From a Used Car Lot

If you must buy a car from a used car lot, here are some helpful suggestions to protect your safety and your finances.

1. RESEARCH CARS THAT PERFORM WELL AS USED CARS

Before you think you can buy a car from a used car lot, especially if it is five or more years old, do a search for a similar make, model and year online. Find out 1. what buyers and dealers are asking for that make and model with x number of miles on the car, 2. What is the maintenance history of the car from frequent breakdowns to cost,  3. How long does this type of car last without major problems?

With this knowledge, you won’t be inclined to overpay for a car on a used car lot, since you know the maximum you should be charged. Used car dealers get their cars from various sources, 1. Some are from car auctions where cars are rejected by new car dealers, who take used cars as trade in’s for new cars. 2. Some cars are purchased directly from sellers, 3. Some cars are obtained illegally – this is where VIN# and license plates are important to investigate.

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2. SHOW ME THE CARFAX AND DMV REPORT

If the used car dealer tells you that you don’t need a Carfax, DMV or other reports with your car, go elsewhere. The Carfax report, as well as other reports, can tell you if you are looking at a bad car. I consider it a bad car if it has been in an accident–and was considered totaled, or a  flood, or has an excessive number of owners, or if it has a questionable title.

Make sure you take a picture of the VIN# with your cell phone ( it is on the lower windshield), then you can go home and get your own Carfax report and check with the DMV that the car has not been reported stolen or severely damaged. Periodically stolen cars find their way onto used car lots.

3. DON’T BUY A USED CAR FROM A USED CAR LOT UNTIL YOUR MECHANIC CHECKS IT OUT

This sounds like a lot of trouble, but it can save you a lifetime of pain and financial loss. There are mobile mechanics you can pay to meet you at a car lot and look at the car you are interested in. Make sure that mechanic goes over the car thoroughly. If it is in bad shape, listen to the mechanic. Some dishonest used car lots sell badly damaged cars that look ok on the outside.

Some used car lots sell certified used, with an expensive warranty, but they are known for not certifying their cars. Have your own mechanic certify the car before you think about buying it, if your mechanic says the car is ok to purchase, consider putting the certification money in the bank, so you can fix it as needed.

The when you buy a car from a used car lot and get and purchase a warranty, a certified warranty can cost as much as $2000 or more.


4. IF THE CAR YOU ARE INTERESTED IN IS LESS THAN 5 YEARS OLD

See if a car less than 5 years old has the original manufacturer’s warranty with it. Many cars are sold with a 5 year or 10-year manufacturer’s warranty on the powertrain. The original manufacturer’s warranty could be voided for many reasons, including if the original owner did not take the car in for warranty servicing during the first year or if the car was in a bad accident or flood.


5. Women, Please Take a Man With You

Ladies, don’t go it alone. I was told growing up not to purchase a car alone. Especially a used car because, unfortunately, there are still far more men who study car maintenance than women. Many men will know immediately when a car is started if there are serious problems. If not after starting the car, they can see if there are things under the hood that signal major problems.

With this said, please take a Dad, a brother, a best male friend, a boyfriend or husband when you feel that you have to buy a car from a used car lot. Unfortunately, I have a few very sad stories of women who went to buy a car at a used car lot alone and the results were disastrous.

Save Money, Don't Get Cheated When Buy a Car


6. IMPORTANT NUMBERS TO CHECK ON A USED CAR

The VIN# tells a lot about a car. You need it to verify that the car is in sellable and buyable condition with the car report services such as carfax.com, Kelly Blue Book, or kbb.com and your state, DMV (Department of Motor Vehicles). The next most important number is the license plate.

These numbers will tell you if the car is registered to the current owner which should be the used car dealer. I know a few people who found out their car was not registered to their used car dealer after an accident or ticket.

They found out the 30-day temporary registration was never valid, and they never got their “pink slip” or legal ownership paper. If you don’t get a “legal registration” in 40 days, contact the car dealership, then the DMV.

The car should be registered the same day you purchase it at the dealership if it is a legitimate dealership. There was a recent news story where people had new – used cars confiscated from their driveways, the VIN# on their cars were traced to a stolen car ring, but each of the individuals purchased their car from, what they thought, was an honest used car dealership.

Don’t be in a hurry to buy a car from a used car lot, take your time, check it out.

Every used car is required to have a “Buyers Guide” affixed to the car window, it gives information such as a no dealer warranty, or dealer warranty. Read the “Buyers Guide” sticker on the window carefully, when it says “as-is” that is what they mean, as the car may not run after you leave the lot, but you do have 3 days to rescind your contract, so get the car inspected quickly.

Far too many people never read the sticker on the window called the “Buyer’s Guide”, and pay for their negligence later.

When you buy a car from a used car lot the process is very serious. You must know that the car lot has a good reputation and sells good, legal car or you could suffer for years to come with a bad car, a bad loan or both.

Excerpt from the eBook “The Ultimate Guide to Car Buying For Women” by Lois Center-Shabazz

Lois Center-Shabazz | Course Delta Agency

Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here

->Get Your FREE Fantastic Finances Tips Course by eMail

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Resources: Federal Trade Commission, Consumer Finance Protection Board

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The ultimate guide to car buying for women

The ultimate guide to car buying for women

buy a car from a used car lot