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9 Good habits to survive a deep recession

The recession is here and will stay with us for a while. No one really knows how long this financial crisis will last but one thing is certain, it will be the worst financial crisis of our lifetime. People have lost jobs, homes and life savings. Banking system is under lot’s of pressure so are consumers and companies. All news is bad news these days.

Still for some it is time for learning the most valuable life skill. The skill to manage finances in bad times is what every one needs.vSo we thought we should do our part in helping you get started with some tips.

Here are 9 tipsvthat will help you urvive a long and deep recession.

Stay Calm
Don’t panic or sell all your investments. Keep a cool head and don’t let your emotions take over. Think about long-term profits and stay calm.

Pay off all your debt
Pay off all your debt as soon as you can, as this can be your biggest enemy during recession. This includes your payday loan, car loan and all your credit card bills. Use the highest-interest first or the snowball method, but become debt free.

Keep a track of your spending
Keep a record of where all your money goes. There are many ways to track your spending and make a budget. Online solutions, such as Mint.com and Wesabe.com, and others like Quicken and Microsoft Money are also available. Just make a budget and stick to it.

Eliminate Extra Spending
Once you’ve made a record of your spending, Remove all the extra expenditure from your budget. Things that you don’t use very much, or you can survive without, should be eliminated from your budget.

Buy Smart
Think before you buy. Make a list of your grocery and you’ll be surprised by how much you save just by thinking ahead a little.

Buy Used Stuff
It is better to buy a high quality used item rather than a cheaply made new one as the higher quality lasts longer. Look for used cars, clothes, furniture and anything else that you want to buy. A late model used car is a better value than a new car. If you are going to buy a new item, buy a high quality product and do some research on it before you buy.

Tidy Up Your Finances
Make sure that your credit score is good and your finances are in order as the next year might be a good time to refinance. You are entitled to one free report per year from each of the credit bureaus; so if you need to check your report, contact your credit bureau.

Understand Your Investments
Before you invest in anything, make sure you find out all the details and understand the risks completely. Also, if you are working with some financial advisor, ensure that he is not a fraud.

Keep Cash In Hand
It is always good to have some cash in hand. You should have at least 3-6 months of living expenses in a savings account for emergency use. You can also save money by paying cash, as during recession, cash is your friend.… >>>

Beware the repo man

I’ve owned quite a few old junkers in my life and a few brand new cars as well. I seem to alternate between the two. Sometimes it’s because I don’t have the money to buy a new car and sometimes it’s because I just get tired of making the monthly payment. When I was young, it was a steady stream of junkers for both of those reasons.
Once I save up my money and bought a car from a car lot named USA Used Cars. In the town where I live there are a bunch of these types of places, the ones that usually have “Buy Here, Pay Here” in huge bright neon letters pasted across the front window. Of course, they’ll finance anyone whose breathing but that person probably won’t be breathing that long because the payments and interest they charge will suck the life out of him.

OK Used Cars was just like the rest of them, but a lot bigger, taking up a good two city blocks filled with expensive junk. But they did have a limited warranty on most of their vehicles and they only charged a flat 10% interest, so they were probably the best in town.

My friend and I looked around and finally found a car in the price range that I could afford. It was an old Chevy that was kind of rusty and had a dent in the side, but it started right up and ran smoothly and the tires were good. I intended to pay cash for the car so I didn’t have to mess with a monthly payment and the interest. One thing I’ll have to say for OK, they didn’t give you the hard sell like some lots do. The salesman literally ran past us. I shouted that I’d give him a couple hundred dollars less than what was on the windshield and he yelled back “Fine, see the sales manager inside.”

The sales manager was a heavyset fellow with a southern accent who was sitting at his desk having lunch and talking on the phone about a hunting trip that he had just gotten back from. We told him which car we wanted and he pulled a big stack of paperwork out of his desk. He took down the basic information like where I lived and my employment. then he started asking really weird personal questions like where could I be found late at night and did I have a girlfriend? I finally asked him why he needed all of this personal information and he replied “So we can track you down and take the car back if you default on the loan.”

He then started going on about how many people try to screw him out of his money. I interrupted and told him that I wanted to pay cash for the car. His face brightened and he said “Well, in that case all you need is to sign the title” as he proceeded to tear up all the papers.

According to the St. Louis Post Dispatch, more and more cars are being repossessed in these tough economic times. It seems like tough times are good times for the repo man. According to the paper, most repo men do towing also. I guess that it’s only natural that the two businesses go together.

But it can also be dangerous work. One repo man here in St. Louis told how he was shot at a couple of times and struck with a baseball bat. And most repo men, like their cousins the bail bondsmen, aren’t totally cold-hearted about their jobs. It’s hard to take away what is sometimes essential to their livelihood, their car. One repo man drove the woman whose car he just possessed to work. He felt so bad about taking her car, he picked her up and drove her home too.… >>>

Is it wise to get debt consolidation refinance service?

If you are wholly dependent on paychecks and living from paycheck to paycheck then be sure you are not alone. Many people, living in such a way, hardly have enough money to buy essentials on a week to week basis. Most of them cannot even remember where they used their money. Just the thing they remember is that it’s all spent now, before receiving their next paycheck.

People lacking the financial wits go in need to file for bankruptcy as it is the only way to relieve themselves from their huge debt and financial obligations. The thing many people don’t have knowledge about is that this way of eliminating their debts also destroys their credit rating and any possibility for gaining a sound financial status. On the contrary there may be some other alternate way – A debt consolidation refinance is just what the doctor has suggested to come out from your current financial confusion.

The main reason anybody could think about opting for a debt consolidation refinance service is because it normally helps ending the annoying telephone calls coming from the creditors and in keeping away the debt collectors employed there. It helps in consolidating all of the bills into one monthly payment, which becomes bit lower then what you had earlier paid in an attempt to relieve some of the financially caused pressure. One more good benefit is that a debt consolidation refinance will not let you file bankruptcy; it means you will ever be recognized as a credit worthy consumer.

Now you may ask; when should I consider looking for a debt consolidation loan or refinance? Normally, the time to consider a debt relief loan is whenever it really becomes hard or impossible to pay your monthly bills. This timely intervention by taking a debt refinance loan will save you from many problematic situations like paying higher interest rates, late payment fees and charges; these are the factors which will just make your already shaky financial status more complicated. Another right time to look for a debt relief loan is when you only give the minimum payment amount payable each month and when all of your credit balances are at same level even after paying monthly dues.

Homeowners take extra advantage over non-homeowners. They can benefit from the facility of asking for a debt refinance loan mentioning the equity in their home or house. Using this option involves the rule to pay off your consolidate bills each month and to avoid receiving any kind of new bills. Never put your house as collateral except when you plan to pay for your new debt consolidation loan.

Make it sure to do your research online so that you can reach a highly reputed debt refinance and Consolidation firm. Most of the companies give an impression of being the great business deal on the outside but it probably can be a loan shark in disguise. These organizations should and must be avoided because these companies can put you under strict monthly payment terms and will obviously demand a much higher rate as compared to any other real lender. Professional debt refinance companies include many non-profit lenders who can offer you many great opportunities and ways in a job to refinance your current debt.

if you research properly you will be able to find a reputable debt refinance company having the ability to help you in lowering your current monthly payment total, eliminating the probability of filing bankruptcy, saving you from being charged with higher interest rates and helping you in maintaining your credit worthiness ranking among consumers.… >>>