In 2010 the circumstances surrounding where to find the most attractive deals on new cars loan will not change drastically, but the way that you go about qualifying for those loans is expected to continue to change. It has long been true, that is, that the best deals on new car loans can be found at banks and credit unions. Those offered by companies affiliated with the auto industry – like the new car loans and financing options provided by the dealership where you intend to purchase your new car or truck loan – are typically the most expensive over the lifetime of the loan.
What’s new in 2010 is that the application process for getting any kind of consumer loan is more stringent, interest rates are heading higher, and lenders are struggling to come up with creative ways to charge more money to borrowers and pad their own profits. The exception to this trend is credit unions, so those who are savvy new car loan shoppers in this post-recessionary period will look for the best loans at a credit union, not a bank.
If you shop for your new car loan at your bank or another private lending institution, for example, you might wind up paying a slightly higher rate or more closing costs and other miscellaneous fees than you might pay if you went to a credit union. That’s because banks are essentially open for business in order to turn a profit for their shareholders, whereas the typically credit union operates more like a cooperative.
Because they are organized differently and have a different fundamental philosophy, credit unions tend to be more boring that banks. That’s a good thing, because while they don’t have the bells and whistles and fancy advertisements, they stick to a simple format of making money without making a killing off their members or giving their executives obscenely huge salary bonuses.
Credit unions also did not participate with the same enthusiasm that banks and mortgage lenders did, for example, when the financial industry fell for the allure of instant profits during the recent real estate and mortgage bull market. Those other lenders bought into the frenzy with no restraint and when the bubble burst they got burned and suffered terrific losses than left many of them bankrupt. But credit unions stuck to more conservative lending practices and came out of the ordeal relatively unscathed. Now they can still afford to offer new car loans with reasonable terms, while banks and other lenders are turning away customers or charging them higher costs. So if you are able to join a credit union you may get a slightly better deal or your new car loan in 2010.
Credit unions are usually organized around a particular group of people, like those who work for a specific company, members of worker or trade organizations, or government employees. They have a lower overhead because they generally have a smaller staff and offer fewer services than do major banks. They probably know most of their customers and many people who do business with a credit union say that the experience is more like working with a small town old-fashioned local bank. But at the same time, you may not find the location of a credit union so convenient, though, because they probably do not have a string of branch offices or offices and ATM machines in other cities. You may have to drive some distance to get to the local credit union, and the hours that it is open may be more restrictive than what you are accustomed to enjoying at a major nationwide bank.
But if you are serious about getting the best possible new car loan this year, a credit union may be the most intelligent option. Of course many people are under the impression that they can’t do business with a credit union because they do not work at a company that is affiliated with one and are not a member of a trade organization or other group that has its own credit union. You may be pleasantly surprised, however, to learn that the scope of credit unions have grown in recent years. There are credit unions for military veterans, for people who graduated from a particular college, and for various other designated groups. There are even many states in the USA, for instance, where being a resident of that particular place entitles you to join a credit union organized around state residency. So check around and see if you can join a credit union in 2010 in order to enjoy the benefit of getting a more attractive new car loan on terms that are more satisfying.
loading...
Related Links:
Debt Settlement is negotiating with your individual creditors or collection agencies to settle your debts for less than you owe. Other words for this process might be debt negotiation or debt arbitration. Once you’ve negotiated a new balance, you might have to pay the amount in full, or set up a reduced payment schedule that you can maintain.
This settlement process can be used on unsecured debt only. You cannot settle secured debts like mortgages and autos. The lender will just take the house or car as settlement.
Unsecured debt can be credit card debt, personal loans, and some medical bills.
Information – The Association of Settlement Companies
The Association of Settlement Companies (TASC) is a group association that “promotes fair business practices, consumer protection and industry standards for the debt settlement industry.” TASC is an organization focused on designing and implementing practices and standards for reputable companies. This organization is there to protect your interests, and lobby on behalf of debt settlement companies. All TASC member companies have pledge to uphold specific ideals governing business practices and ethics. There are over 184 members and growing. The site has search capability to find a member near you at http://www.tascsite.org/index.cfm?event=Members.
Information – Get it in Writing!
If you have reached a settlement agreement with a collection agency, don’t pay a dime until you get the settlement agreement in writing. Make sure the creditor understands that you won’t pay based on the verbal agreement; you will pay when you receive a written agreement that includes the major pieces of your agreement.
The agreement should include the information that identifies this loan, the collector by name and address and the debtor (you). All account information like the account number, balance, and original creditor should be on this contract. The amount agreed upon as the final payment should also be listed.
There should be a clause that reads something like—‘payment of the settled amount is deemed to fully indemnify the debtor from any future claims by any claimant regarding the debt.’ You can also ask that the contract or written agreement include the promise that the collection agency will remove the debt from all credit bureaus. Your original creditor will probably show the debt, but the collection agency notation would be taken off if you can get them to agree to it.
Also request a statement that you don’t acknowledge the debt is true, but you would like to close the issue.
Information – Get your free credit report and check for inaccuracies.
Before you start Debt Settlement, review your credit report and check for mistakes. Make sure your name is spelled right and that all your personal information is correct. Then make sure all the accounts belong to you. The first time I checked my credit report, there were several companies I had never heard of that had open accounts on the report. That was a very easy fix. Also check the paid in full accounts for accuracy. Everything needs to be correct.
You will go through this again a few months after you’ve settled to make sure the agreements were followed through.
There are several places where you can get your credit report for free. One of these is www.annualcreditreport.com. This site allows you to get a free credit report once a year from Experian, Equifax and TransUnion. Other free tools include one on Experian.com that allows you to examine how changes in your credit balances can improve your credit score. This tool can help you determine what debt reduction options would be best for you.
News – Changes In The Debt Settlement Industry
The government is looking at the Debt Settlement Industry and working to regulate what the companies can charge and how they work with consumers. TASC, the association above, is working on self-regulation. In the next few months and years there will continue to be regulatory changes in this industry and a focus on how these companies work.
loading...
Related Links:
Debt consolidation is a way consumers might save money on interest and possibly get out of debt faster. Since you are rolling several payments into one, it will provide the convenience of one monthly payment.
News – Taking Charge
There are statistics out in the first month of 2010 that come from research firm TNS. These statistics state that 64 percent of consumers still feel bad when it comes to their personal finances and the economy. It also reports that 66 percent of consumers plan to reduce their personal spending in the next six months.
People are worried about losing their jobs, keeping their homes and paying higher taxes. Many are becoming proactive. They are dissecting what they spend their money on, researching the interest rates they’re paying, and trying to pay off their debt.
One of the ways they are doing this is by using debt consolidation loans. These loans can often give consumers a lower interest rate and help them get out of debt faster.
It will work like this:
- First Step: Consolidate your debt into a single manageable loan with a low fixed monthly payment.
- Second Step: Now you will have money left each month that is the difference between what you were paying on all the loans, versus the consolidated loan.
- Third Step: Take a little of that money and pay extra on your new, single loan payment. This will accelerate getting out of debt.
News – Federal Student Loan Consolidation
Student loans can’t be consolidated with your other loans. But there are options if you have several Federal Student Loans you might be better off with a consolidated loan.
One reason to do this is if you have variable interest rates on your federal education loans. The interest rate for a Direct Consolidation Loan is fixed for the life of the Direct Consolidation Loan. The loan’s new rate will be based on the weighted average interest rate of the consolidated loans with the number rounded to the next one-eighth of one percent. The rate cannot exceed 8.25 percent.
For more information you can go to the federal student loan website at: http://www.ed.gov/about/offices/list/fsa/index.html.
Or check out: http://www.loanconsolidation.ed.gov/. This site will help you figure out if you should consider consolidating your student loans. There are calculators, and lots of information on how to do it and if you should.
Information – www.moneycentral.msn.com
This site has debt calculators that will help you run the numbers by time and payment, There is another calculator to help you figure your debt ratio. They have tips and tools to help you make unbiased decisions on the type and terms for a debt consolidation loan.
Information – Credit Report Management
Getting a debt consolidation loan and the percentage of that loan all comes down to the status of your credit report. At the very beginning of this process you need to request your credit report and verify that all your personal information, account information, balances and payment history is correct. If there are mistakes, get them fixed and cleared off. This process can take a good 30-45 days, so make sure you do this first.
Many sites offer free credit reports, and some even provide free FICA scores, but be careful. Sometimes these services are free for a short, limited number of days before they start charging you fees for their services. One of the websites that provides a free report and the ability to clear question some of the problems online is: www.annualcreditreport.com.
Information – Knowing What You Have
There are many sites out there that have a spreadsheet for you to fill out, or you can just write the information in a notebook. However you manage it, it is important to keep a list of what loans you have now and their specific details. You will need to know the balance due, the current interest rate and if it is a fixed rate or a flexible rate. Also note the payment amount and how many payments you have left to make. Having this information will help you utilize the other tools listed above.
loading...
Related Links:
Student loans are used to pay for college tuition and books. Sometimes they will cover all or a portion of living expenses while you attend college or university. These loans have substantially lower interest rates and the payments can be deferred while you are in school. The loan can be paid back over a longer period of time, and even thought the interest accrues when you are in school, you don’t have payments until six to twelve months after you’ve left school.
The federal government has a student loan program, and there are private student loan programs available. The latest news on student loan programs focuses around some new tax changes, the federal program for limiting student loan payments on federal student loans, and the private student loan sectors downturn.
Private Student Loan News
Private student loans have been affected by the downturn in the economy and problems with loan practices. Because of these problems Student Lender Analytics or SLA forecasts a decline in private student loans of 24% in the 2009 – 2010 year. SLA is, “an independent research and advisory firm focused on finding the best lenders for students.” The information on the decline in loan origination is targeted toward the major national and regional lenders.
This 24% reduction for the coming year is on top of last year’s drop of 50% in private student loan origination. Across the board loans are harder to get, that fact alone affects the private student loan sector. The Citibank Student Loan Corporation, one of the largest of the private lenders, reports that they will be noticeably reducing their borrowing limits.
But the news isn’t all bad. Other loan companies are stepping things up or entering the market. Wells Fargo, Chase and some credit unions are planning to grow their number of loan originations in 2009 -2010. One of the new companies in the student lending field is Discover. The SLA has estimated that this year Discover will grow the fastest as far as the amount loaned for private student loans.
Credit Unions that offer student loans often have one of the lowest, private loan interest rates. But many people don’t realize that some credit unions provide this service. But the news is, some do.
Student Loan Federal Tax Credit News – American Opportunity Credit
In 2009 the Stimulus Bill expanded the existing Hope Tax Credit and changed the name to the American Opportunity Credit. The new terms affect the 2009 and 2010 tax years. Instead of getting a tax credit for two years of college tuition as in the Hope program, now the credit has been extended to four years and has expanded income eligibility. There are new guidelines and amounts which are noted below:
- There is a $2,500 maximum annual credit, per qualifying student.
- The credit is only available if the student is enrolled in school at least half-time.
- The student must be enrolled in a program leading to an undergraduate degree, or one that leads to ‘legitimate education credentials.’
- Any and all family members can receive the credit; there is no limit if they meet the other requirements.
- If the credit exceeds a taxpayer’s total tax bill, $1000 of the credit can be refunded to the taxpayer.
- Parents and guardians can claim the credit for a dependant child’s college expenses if they are listed as a dependant on the tax form.
- The credit will phase out, starting at $80,000 – $90,000 adjusted gross income on a single tax return, double that for a joint return.
- There are additional student credits available to students in targeted Midwestern disaster areas.
More information on the American Opportunity Credit can be found in IRS Publication 970. The title of this publication is Tax Benefits For Education.
Federal Student Loan News – Income-Based Repayment (IBR) Program
The government started a new program that took effect on July 1, 2009 that allows those with federal student loans to ask the government to limit the amount they pay in monthly payments to less than 15% of their income. This new program is called the Income-Based Repayment (IBR) program. Many of the people who qualify for this program will pay much less than 15%.
loading...
Related Links:
A business loan is a loan you get specifically to finance your business. It can cover the initial, startup costs or a later loan can be used to fund expenses, new equipment, expansion, or as a debt consolidation loan. These are just a few things the loan can be used for.
News – Banks Are Supposed to be Lending More
In November of 2009, the US Treasury released a report saying that they were encouraging banks to start making more loans to small businesses. Several economists are predicting that we are at the bottom, or near the bottom for the amount of loans made every month. Many financial institutions attended a recent White House Forum on business loans and they pledged to increase Small to Medium Business Loans in the following year.
Do you know what the government offers?
The US government has a loan website. The website address is www.GovLoans.gov. This is a good place to start if you are looking for business loan information. It will give you information on eleven government agency loan programs and there is a list of agencies that can provide information and assistance. At this site you can take a short questionnaire that will determine your eligibility for any of the government loan programs. This site will also allow you to compare options and get general information.
The stated purpose of the U.S. Small Business Administration or SBA is that it is an organization that, “aids, counsels, assists, and protects the interests of small business concerns, and advocates on their behalf within the Government.” There are specific programs to assist victims of disasters. Besides financial assistance, the SBA also provides contractual assistance, and business development assistance.
Under the Other Resources tab on the loan portion of the website you will find a lot of helpful information. One of the links will help you determine if your business meets the SBA’s regulations to be considered a small business.
There are resources to help a business prepare a loan proposal. They give a list of things that might be required when you apply for a loan. There are also resources to consider if you are thinking about borrowing money.
In Other Resources you will also find a list of Certified Development Companies that can help you get a long term loan to acquire fixed assets. This is called the 504 loan program. There is a link that will give you a list of SBA Preferred and Certified Lenders that work with the government to loan money to small businesses.
For loans less than $35,000, there is information on the site about the SBA Microloan Program. Once you’ve looked at the program, if you are interested in getting a loan there is a link to specific, approved lenders that are in your area.
This government website also helps you find an investment company if your business needs equity financing. Again there is a link that will take you to a list of companies that provide equity financing and are approved to work with SBA.
The SBA website other resources will also link you to information on SCORE – “Counselors to America’s Small Business.” This association is a non-profit organization that has thousands of volunteers focused on counseling small businesses and training those businesses through there chapters, branches and the website.
If you are starting a new business, there is a link specifically for you that will provide all kinds of resources and information targeted to startup companies. These sources will assist you from the beginning and help you develop and grow the new company. There is also a Development Center program that supplies management assistance to both individuals and small businesses. This Center offers a varied of information and guidance that comes from a conglomeration of federal, state, and local government, as well as the private sector. They also offer technical assistance.
There are over sixty separate federal organizations that are out there with the charter to assist or regulate business. To help navigate these agencies and resources for funding, grants, and all kinds of help…the US Business Advisor is a one-stop electronic link that will help you find the information or help that you need. There is a link to the US Business Advisor on www.govloans.gov.
With so many resources in one place, you need this link at your fingertips. From loans, to a check-list for preparing for those loans and many other services, this is all free help and advice.
loading...
