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Money Myths That Can Cost You Dearly

February 6th, 2020 Posted in Credit and Debt
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We’re all doing our best to drive down the cost of living and make our money work harder for us. In an uncertain economic climate, it can seem like no matter how hard we work or how much overtime we put in we never have enough to go round. The good news is that there’s a lot of advice out there which can help you right the ship that is your household finances, both from online sources and from friends and family. The bad news is that for every piece of knowledgeable and insightful information, there’s half a dozen myths based either on economic principles that just don’t hold water in this day and age or simple wrong-headedness. Here we’ll look at some money myths which will not only hinder the growth of your capital… they can actually wind up costing you dearly…

Money Myths That Can Cost You Dearly - female with twenty pound notes
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Service providers will reward your loyalty

A healthy household budget is the key driver of your financial health. And that means accounting for all the household’s costs and doing what you can to keep them manageable. However, when it comes to services like your car insurance, home insurance, utilities, phone and broadband, don’t make the mistake of assuming that service providers will reward your loyalty. In fact, they’re likely to reserve the best deals for new customers and charge you inflated prices for rolling over. 

Why? Because acquiring new customers costs them more, and they’re counting on you to do nothing. Don’t reward their greed!

Bad credit = bad options

The old maxim “neither a lender nor a borrower be” is hard to live by in the 2020s. And while there are occasions when borrowing credit is unavoidable, it can quickly become a slippery slope. If you find yourself needing to borrow more than you can realistically pay off, you may find yourself with a less than stellar credit score. 

Still, don’t make the mistake of assuming that having bad credit only means you have bad options. Whether you’re looking for car credit or payday loans, it pays to do your homework and compare the offerings of different providers. Don’t assume that bad credit means you only have bad options.  

Investment is better than saving

Saving is the most risk-free way to build your wealth… but it’s also undoubtedly the slowest. Especially if you’ve had the same savings account from your high street bank since you were a kid. Those lured in by the promise of fast and sizable returns can certainly see appeal in the world of investment. But with the potential for great gains comes risk. And unless you know exactly what you’re doing, the value of your investments can plummet overnight. It may be better to move to a better savings account with a healthier rate of interest than ditch savings altogether for investments.

Renting is dead money

Finally, it’s time to put the economic fallacy to bed that rending is dead money. Firstly, a roof over your head is always worth paying for. Secondly, with property ownership comes a level of responsibility that not all households are ready for. Carrying out household repairs and maintenance can create a huge burden on your household’s finances. At least when you’re renting, all that stuff is your landlord’s responsibility.

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Defeating The Villains Of The Financial Business Fairy Tale

January 24th, 2018 Posted in Money Tips
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Any fairytale needs a hero and a villain. Neither can exist without the other, and there have been some fantastic villains. You’ve got the obligatory evil stepmother, the snow queen, and even the big bad wolf. Any one of which is sure to send shivers down your spine.

Sad to say, such villains don’t only exist in books. There are many real-world villains, too. They make themselves known in the criminal, political, and even financial world. If we had our way, there would be no bad guys when it comes to finances. But, that’s rarely the case. Both our personal and business finances go up against the baddies. This can be tough enough with private finances, but when your business is up against it, the risks are even more substantial. That is unless you find a way to defeat those baddies. Which is precisely what we’re going to look at here.

Defeating The Villains Of The Financial Business Fairy Tale - Disney's Evil Queen image

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Debt

The first financial villain is debt. It makes itself known, even in the business world. There’s no way to start an enterprise without borrowing, or spending, a significant amount. Of course, that isn’t an issue if  profits cover the cost. But, if your business takes a while to get off the ground, debt can get out of control. When you’re failing to pay large amounts, there’s a risk that your company could go bankrupt. To make sure that doesn’t happen, it’s essential to get a grip on finances. Cut costs and do your utmost to meet payments. If there is a delay, talk to the company in question. With open communication, it’s likely you’ll be able to reach an agreement. If you keep quiet about your troubles, however,  you’ll soon find yourself in a bad situation.

Bad credit

In many ways, bad credit is debt’s right-hand-man. If you miss payments, you can be sure that bad credit will follow. And, this can make life difficult in many ways. For one, it’s a black mark against your business. On top of which, this will make it difficult to get a loan down the line. The good news is that there are still options out there. With a fast business loan, bad credit doesn’t have to ruin your options. What’s more, keeping up with payments on this second loan can improve your credit rating. As such, facing the fear here could be the best method of defeat.

Unexpected expenses

Villains love to make us jump, and unexpected business expenses often do just that. Just when we think we’ve found our financial footing, you can guarantee that a breakage of some sort sets us back again. The best way to defeat this villain is to save a rainy day fund. When things are going well, set aside as much money as you can. Then, you can dip into this if anything happens. A fast loan, like those mentioned above, can also save you here. But, remember that you won’t have to repay your savings, so that’s by far your best option. http://credit-n.ru/offers-zaim/oneclickmoney-zaim-na-kartu.html

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Golden Rules Of Repairing A Poor Credit Score

February 17th, 2017 Posted in Money Tips
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repairing a poor credit score - calculator image

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A bad credit score can have a terrible impact on your overall finances – and your lifestyle. But it’s  important to understand it is not the end of the world. With the right mindset and prudent financial planning, it is possible to repair your score and start getting your household’s money and borrowing ability back into shape. Let’s take a closer look at some of the golden rules of repairing bad credit.

Understand the importance of a good credit rating

The first golden rule is to know what you are dealing with. Good credit scores make your life easier, cheaper, and more manageable – it’s that simple. A poor credit score, however, can have a significant impact on your life. Your borrowing options will be limited. You might open yourself up to the harsh realities of bankruptcy. And you might find that you can’t get a job, rent a property, or even get a contract for a cell phone. It’s that serious – and it should spur you on to make amends.

Check your rating

The next golden rule is to understand your current credit position. You’ll need to check with the major credit reference bureaus such as Experian, Equifax, and the TransUnion. Once you sign up, you should be able to see a breakdown of all your borrowing history, as well as records of your bank accounts and any court judgements you might have against your name. At this point, it’s important to look for any records that you are not responsible for. Sadly, fraud and mistakes are all too common, and it’s not a rare occurrence for credit records to be incorrect.

Tackle your debts

The next step is to highlight all the debts that are causing you problems. Contact them and set up reasonable repayment schedules that you can afford, making sure that you have money left over for general household spending.

Start improving your credit rating

Now you are in a position where you can start repairing your score. And the way to do this is to prove that you are a responsible borrower. Unfortunately, many of the credit avenues you had before maybe closed off to you now, so working out how to get a loan with bad credit will usually result in applying to particular services and lenders. But the point is, as soon as you start paying back your debts promptly, your score will improve, bit by bit. Just borrow and spend small, affordable amounts and keep clearing your balances for a minimum of six months.

Don’t fall off the wagon again

Finally, once you have done all the hard work to repair your credit rating, don’t ruin things by making the same mistakes as before. See this as an opportunity to change the way you deal with your finances, and you should – with a little bit of luck and a lot of dedication – never find yourself in a similar position again. Keep checking your rating, and always update your current budget to ensure you are on the right track.

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Having A Bad Credit Score Can Negatively Affect You – Here’s Why

December 13th, 2016 Posted in financial education, financial literacy
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Living the life of luxury and buying what you want, when you want is all well and good until it all finally catches up with you of course. Suddenly, the unnecessary spending seems like the worst thing you could have done and you’ll be tasked with having to explain to your kids why you can’t get them a new school uniform this year.

(Side note: teaching your kids about being responsible with money is hugely important and if you start now, you might be helping them to avoid the very same mistakes you’ve made that have led you here.)

Once you’ve sorted out a way to get food on the table this month, you must, must, MUST continue reading so that you can identify why having a low credit rating is so bad so that you’re determined to fix it.

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  1. Getting loans is going to be an uphill battle

When you have a bad credit score, obtaining a loan seems like an impossible task, and that’s because it usually is. The lower the score, the more you’re going to struggle to find a lender who will offer you a loan.

  1. You’ll be paying higher amounts of interest

If you’ve been applying desperately for loans and being faced with rejection time and time again, to then find that you’ve been accepted, you’re likely to take whatever you can and run with it. The problem with having a bad credit score is that you’ll encounter the really bad deals that come hand in hand with extortionately high interest rates. It’s well known that mortgage providers save their best loans (the ones with the lowest amount of interest) for buyers who have both a good credit score and a hefty deposit.

  1. Getting a roof over your head will be rather difficult

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Most landlords will want to run a credit check on you before you both sign above the dotted line and nothing will put a potential landlord off more than a wannabe tenant who has an awful credit score. Think about it – why would they want you living under their roof when you’ve proven in the past that you aren’t great with keeping up with payments or that you require the use of credit cards to help you get by from week to week?

If you do manage to find a landlord who’s happy to let you rent a place, you’ll probably find that you have a much smaller choice as landlords have previously admitted that they save their best properties for those with higher credit scores.

  1. The pre employment credit check isn’t going to be successful

So you’ve wowed your potential new employers during the interview process and they are all set and ready to offer you the job. A pre employment credit check is all part of the usual screening process during the hiring process as your employer will want to ensure that you don’t pose a risk to the business. They’ll be looking to see whether there’s any history of financial mismanagement and if it shows that you have a super low credit score, you might find that you never get that call with the job offer after all, even though you were certain you had it in the bag.

A study found that one in seven people have been told that they were denied a job due to a poor credit rating and if you’re applying for a job that involves dealing with money, government agencies or security clearance, you will definitely struggle to come out on top if your credit rating isn’t looking great to potential employers. You may want to consider using a credit repair agency or getting a full Lexington Law review

  1. Many a missed call

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You might also struggle to get a mobile phone contract. Whilst there are bigger and more important things to worry about (like finding a paying job and a place to live), not being able to have a phone is also a huge problem.Practically everyone these days has a phone and those who don’t are always met with suspicion. Mobile phone and network providers pay close attention when it comes to credit scores and if yours is bad, you’re far less likely to get yourself a month-to-month longer term (usually the cheaper ones in the long run) mobile phone plan.

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