Author: Ronda Gates

Car Finance—HP or PCP?

You decide to have a car through a car financing scheme, but you are not really sure which one to pursue. ‘Should I go for a hire purchase (HP) or personal contract purchase (PCP),’ is a question constantly dallying with your mind. What is the right answer? Here are some pointers to aid you:

How Much Do You Love That Sedan?

Most of us want to have that one car, the one which endears itself to us the most; while others are trendier and are interested more in switching their car after every 3 years. If you are the one who likes to have a bit of everything from the dinner table rather than sticking to your juicy steak, then PCP option is the one for you.

With HP, you are anchored to one car until you decide to sell it off. With PCP you have the choice to drive a newer sedan even before the maturity of your agreement, that is, if you wish to.

How Much Are You Ready to Pay?

The next question that should help you decide between the two car financing schemes is, how much are you prepared to pay.

With HP you submit an initial deposit and the remaining cost of the car, is distributed over a period of years. You are required to cover up this distributed cost through monthly installments, which obviously include interest as well. At the end of your agreement, provided there are no default payments, you get the ownership of your car. Since you are paying the actual cost of the car, the monthly payments in HP are structured and higher than what you get with other car financing schemes. Obviously, you can extend the distribution period to lower it, but at the end of the term it will still end up costing you more if you factor the maintenance cost.

In the case of PCP, you are only paying the amount that is being depreciated each month. And once the agreement period is over you can have the ownership if you decide to pay off the balloon payment. Being concerned with depreciation, this usually means that your monthly payments in PCP are much lower than that of HP with lower interest rates as well.

Do You Want a Subsidized Scheme?

HP schemes are not subsidized unlike PCP. Since with PCP you have the luxury to change your car after a specified amount of time, it benefits the manufacturers and thus they tend to subsidize these deals. With HP, there is nothing like that.

Does Your Mileage Matters?

If mileage matters to you, then HP should be your choice amongst the two. With HP you do not have to calculate your estimated mileage over the period, so even if you end up travelling far more to the liking of your dealer, you do not have to pay extra charges. With PCP, you can only drive within the agreed mileage estimate and failure to abide by it means, you will have to do with a penalty.

Choosing which car financing scheme is better is more about answering which scheme suits your needs better. They both have their own unique set of advantages, and the preference ultimately lies with you.

How To Find A Self Build Mortgage

So you have a dream house designed in your mind and you are ready to make it a reality? Have you thought how you would finance it? You have two ways to go about it:

  1. Make it a DIY project and do most of the work yourself except the technical installations such as electric and plumbing.
  2. Get a team of an architect, a tradesman and a surveyor to do build you your perfect dream home.

Unless you have been saving for this all your life and have enough money to do finance the whole project from your own savings, you will have to take a loan and in both the above mentioned cases, you would not be able to receive a standard residential loan. In this case what you will qualify for is a self build mortgage.

What is a Self Build Mortgage

It’s pretty direct here; a self build mortgage is the loan you receive on the property that you are building yourself. The catch here is that unlike a standard residential loan, you will not receive the loan in a full lump, it will be provided in stages. This reduces the lender’s risk and provides you with enough money to complete the different stages of construction. The lender needs to see some work done before they would invest more money into the project.

Providing the funds is mainly in the hands of the lender but if general rules are followed, the first sum is paid when the land is bought, the second is followed by the laying of the foundations and the third when the building is set up to eaves level. The final payments are made when the roof and interior are completed.

Convince the lender

As the Self Build market is small and the lender is basically giving you money for something that does not exist yet. It is hard to convince the lender which is why the borrower will have to be absolutely professional about their work. They need to be provided with a project timetable and all the construction details with the plan, building materials, man power and the entire budget that is going to be put in it.

Make sure you land well

When you are looking for land to build your property on, make sure it is in a good locale and you already own it before you apply for the self build loan. If you do not own the land finding a lender ready to invest without a huge down payment will be quite hard.

Work with professionals

Try to work with people who can provide good credentials for previous building projects. The lender will constantly be thinking of the risk they are taking by giving you the money, you have to do everything that you can to remove that doubt.

To summarize

The bottom line is that when finding a self build mortgage you need to have everything ready to present to the lender, and already have enough money to complete the down payment when you apply for the mortgage.

Slash Your Grocery Bills with These Easy Tips

Groceries are like those relatives you loathe but can’t get rid of. There is nothing more boring and time-consuming than grocery shopping, but what makes it even worse is the number of bills it piles up. Regardless, we still can’t get rid of them because we love to eat and cook. We can, however, cut down the grocery bills by following some smart hacks. Let’s see these tips that could help us slash them down.

1.    Freeze them good

Can you count the number of times you had to throw away a large pack of whipped cream or a packet of strawberries that you bought but forgot to eat? No, you can’t because this has happened more times than you can count. Instead of leaving food to spoil, use them with care. Freeze them if they are not for use now. This will save you from buying things again and wasting your money.

2.    Back-off from lavish dinner

Yeah, we know it’s enjoyable to have a hearty meal on a table full of delicious foods with your family. It is even acceptable two times a week, but is it really necessary to make a full three-course dinner with all the things available? Was the dessert necessary? Was there a need for a fresh loaf of bread or wine? This will not only rack up your grocery bill but will also make your family used to and expectant of the same treatment every night. Give it a break, make easy and simple dinner for your family; you can have a special dinner on every Sunday.

3.    Grocery stores

Are you sure you are buying from the cheapest grocery store? You’ll be surprised to discover how different grocery stores sell the same thing at different prices. There are grocery stores that sell at the most honest prices. Go to the grocery stores with the best deals and your grocery bill will come down before your eyes.

4.    Use your green thumb

Why buy herbs when you can have fresh ones in your own garden? Have you ever given a second thought to planting the good-smelling and ever fresh herbs? Why not. They will not only make your meals tastier with their freshness but will also prevent wastage and save you a lot of money that you spend on buying these herbs.

5.    Use leftovers

It is not a crime to eat the leftovers. If you are a mom, make sure your kids fall into the habit and learn to eat what’s left of the previous day. This too will avoid food wastage and save you money of a whole meal.

6.    Use tofu

We understand that not all of you are fans of tofu but sometimes it makes a wonderful substitute for beef. Learn to use it as it’s cheaper than meat and will help you cut down your grocery bills.

7.    Do-it-yourself

No, we are not asking you to become a DIY queen–or king. If there is something that you can make at home then why spend money on it? Things made at home are always healthier, cleaner, and less costly. For instance, why pop popcorns in your microwave when you can pop them just as easily in your pan from a Kernel jar? This is not only a cheaper alternative but also lasts a lot longer than a pack.

By following the above tips you’ll find a good amount of difference in your grocery bill.

Your Rights When Purchasing a New Car

There are only a few things in life that you can buy as a result of a sizeable investment. Buying a car is up there with buying a home despite the fact that they don’t match up in price. Quite simply put, buying a car is a big investment and given the money and the expectations that go into buying one, it needs to be close to perfect. As a purchaser of a new car, you are protected by the law. Legally you have certain rights in the UK. Some of them are outlined below.

General Rights When Buying the Car

The UK has enacted legislation to protect the rights of consumers who buy goods. The Consumer Rights Act introduced in the year 2015 has outlined the qualities of the product that can be bought as well as the general rights that the user has:

  • The Goods must be described as either fit for purpose, as described or of satisfactory quality.
  • The user has the right to buy a car that is not damaged when purchased and should be in full working order.
  • The car needs to be true to the description made for the vehicle at the time of the purchase of the car.
  • The car should be true to the specific conditions made and agreed at the time of the purchase, this includes, the model number, make number, colour of the car, etc.

Rights to Exercise If Something Goes Wrong

Cars that are bought may initially seem okay but can later turn out to either be faulty or have certain problems. Keeping in line with this, the 2015 Consumer Act gives the consumer certain rights to exercise when purchasing the new car. These rights are as follows.

  • In the first 30 days of purchase if you don’t think that the car is up to the mark, if it faulty or not serving the purpose you bought it for, you have the right to return it and get a complete refund. The 30 days start from the date that you purchased the vehicle.
  • If you have purchased a car and haven’t been delivered the car to you within 30 days, you are well within your right to cancel the order and get a total refund.
  • Similarly, if you discover a problem in the car within the first 6 months of the car being delivered. The courts will assume that the fault was there from the very start ever since it was delivered and the company you bought it from will have to prove that it was not the case.
  • If the fault has been delivered post 30 days from the purchase date, then instead of asking for a full refund the company will be allowed to repair the problem. If the problem cannot be rectified, you are entitled to return the car and get a refund, but the refund will not be full and certain amount will be deducted off it.

How To Restore Your Credit Rating

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There is hope for your credit history. Do realize that your credit history is your vital sign to your financial health? You will see how to restore your credit rating and the great news is, you’ll be able to see an increase in your credit history in as little at 30-45 days! Don’t wait. Start straight away and get your financial health back to normal. Equifax, Experian and TransUnion will tell you that items must wait to go away in 7 – 10 years. Obviously that is what they want you to definitely believe. The three bureaus don’t want you to dispute any items you credit. That means they’ll have to verify the items plus they are not paid to confirm the items.

credit ratingFollow these steps concerning how to restore your credit score. Restoring your credit rating is something that you can do. However, a lot of people choose to hire a credit restoration company rather than learning how to restore your credit history yourself. As you will discover why they choose to go that route. The very first thing you will want to do is get yourself a copy of your credit history from Experian, Equifax and TransUnion. You will have to verify that all the data on your credit report is accurate. By accurate which means, correct address, telephone number, amounts, or anything related to the item that is in your credit report. The next step is to dispute any inaccurate items you credit report. There are folks getting things like bankruptcies, foreclosures, tax liens, as well as late payments business credit by disputing these things.

Disputing means writing letters that state what exactly is incorrect and showing evidence of it. You don’t have proof. Don’t hang on a minute. If you don’t have proof you’ve kept the right to dispute an item. Make sure you have all the proper information in the letters. The letters needn’t be pages long. They just must be short and to the aim of why the item is reported incorrect. When righting the letters you need to make sure that you have your correct mailing address and ssn attached to it. You may use a copy of your social security card or perhaps a tax document to confirm your social security number along with a copy of a electricity bill, credit card statement or bank statement for verification of one’s mailing address. You will need this along with the dispute letters which means you are showing the business that it truly is basically that you disputing and not a 3rd party. Send it by incorporating type of tracking which means you know the day the credit bureaus received it. They’ve 30 days to respond to the dispute letter. The loan bureaus must declare that they deleted, updated or made no plunge to the items you are disputing.

The truly amazing news is you can reinstate your credit yourself, nevertheless, there are other options on the market. Credit restoration publication rack out there to help you. A credit restoration company knows the best strategies in the way to restore your credit score the easiest. Yes there are scam companies on the market, just like in any other business, which means you need to know what to look for. Choose a credit restoration company which has a proven track record, numerous years of experience, a cash back guarantee, and one of the most important can be a A+ rating with the BBB. Don’t wait to obtain your financial future back to normal!

Is Consolidation A Good Idea?

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Debt consolidation reduction generally means cancelling/paying off multiple debts if you take a big single loan. It is conducted using the aim either buying a set interest or securing an inferior interest. Consolidation will also help clear off multiple debts in numerous quarters along with the borrower has got the ease and simplicity of reducing just one loan with a set rate.

What makes consolidation work?

You’ll be able to consolidate your finances by streaming multiple loans in a fixed single unsecured one however, this method is rare nowadays. Most debt consolidation reduction options involve the processing of 2 or more unsecured ones in to a single loan. This kind of loan is often secured against a good thing as collateral.

If the asset under consideration can be a house, your debt is secured contrary to the particular house. Utilizing a high equity asset may help reducing the interest levels. The bank is glad to obtain security as well as in an instance the place that the borrower struggles to remove the loan, the financial institution can foreclose the asset.

Pros

If you’ve increase huge unpaid bills or else you have got up several high interest installment loans like vehicle loans and school loans, debt consolidation reduction may be the reply to your trouble. It will be possible to process several heavy debts into one achievable credit repairing repayment schedule.

If you are unable to manage your multiple bills, you may be paying far more regarding late charges, fines and added fees. Most importantly, you may also be labeled which has a a bad credit score record; labeling will help you a hardship on you to definitely get loan sanction in the foreseeable future.

A consolidated debt may have reasonable and glued interest patterns and are capable of paying off your dues at spaced intervals thereby eliminating confusions about multiple payments.

Cons

If you will find that this monthly interest on the new consolidated loan is not any superior to your previous rates, it can make no sense to consolidate the money you owe.

Consolidation means settling debts a bit longer period. The total amount involved is the identical however the here we are at paying down the invoices is extended so that you will don’t glance at the monetary burden. However, if your term is quite long, you may find yourself paying more interest.

You’ll generally use a high equity asset as collateral to get debt consolidation loan. If you neglect to repay the money you owe soon enough the bank can legally make you unload your focal point pay back the loan. It is a big risk so you have to be utterly confident of saving your assets prior to applying for consolidation.

The ideal solution

For anyone near bankruptcy, researching consolidation firms that can discount the borrowed funds amount is the foremost option. Debt consolidation loan is often a decision that could impact your financial future hugely so it will be better to go ahead and take assistance of a financial consultant.

Generally, consolidation is recommended for managing bank card debts. Again in the event you own plenty of fixed assets and aren’t particularly worried about losing a selected mortgaged asset, consolidation could be useful to you.

How To Get Credit When You Have No Credit

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Generally, it takes credit to make credit. You cannot get a loan or charge card without having some form of credit to prove that you will be trustworthy. This frustrating cycle can be challenging to overcome when you first start building your credit since it may feel like no one is ready to give you a break. Believe it or not, you can find steps you can take to give your credit the beginning it needs.

This guide shows getting credit when you have no credit to get a loan when needed. The first step will be the hardest to take, but once taken, it may be much easier to build your credit.

Understand Your Position

Before you can start building credit, you ought to get an idea as to why lenders shouldn’t work with you. A person’s credit history is a measure of his capacity to pay back loans and charge card balances, similar to how a resume reflects an individual’s work ethics. If you have no credit accounts within your history, a lender needs to be willing to blindly trust you using their money. In the same sense, a company would have to just “give you a shot” should you have had no work history on your resume. Is it possible to still find work? Needless to say. You can also still build credit. You need to simply find people that are willing to embark on a limb to support you.

Get Yourself A Secured Credit Card

A secured bank card is a card that you have to deposit money into upfront. This is simply not a prepaid debit card you could load and unload anytime. This is a card that you purchase and then spend like a charge card. If your initial deposit is $3,000, that’s the amount you can charge. If you utilize $1,500 of it, you will be anticipated to pay back the remaining $1,500 to keep a positive credit history. Every payment made on your own account is reported towards the credit bureau, and you will face exactly the same fees and consequences of nonpayment because of this card as you would having a traditional one. The only difference is how the money comes from the beginning.

If you choose that you no longer want to use your secured bank card, the company will use your original deposit to pay for whatever balance you have left to pay for, and then they will refund most of it back to you. If there are any unpaid fees around the account, that money will be extracted from the deposit as well. If you’ve got nothing outstanding, you will get a full refund of the initial investment. For the most part, this is a risk-free method of getting credit when you have no credit.

Obtain A Secured Loan

An alternative to obtaining a secured credit card is getting a secured loan. This works similarly, but instead of putting down money, you might be putting up some form of collateral. If you’ve got a vehicle that you paid for in cash, you should use the title to that vehicle to acquire a loan. Then you can pay the loan retrace time and build credit on the way. This requires you to pay profit interest, but that is a small investment to start your credit history. You will find that almost any form of payment comes with the have to pay extra money.

Most secured loans are just available for property that has a title of ownership, just like a house or a car. Personal property, just like a television, is easy to take or hide when a creditor needs to collect it. Houses don’t move, and cars are somewhat easy to repossess. That is why the lenders elect to work with those items. You can bring your belongings to a pawn shop to acquire money for them, but most pawn shops don’t report their loans to credit agencies. Thus you’ll be paying lots of money for no reason.

You may also get a secured loan using a certificate of deposit out of your bank. In this case, you open a CD for any certain term and borrow against it for any pre-determined length of time. This could be six months, a couple of years, ten years, etc. Those are terms you’ll work out with the bank. As odd because it sounds, you will actually buy a CD and then get yourself a certain percentage of it out (usually 80%). Then, your family will enjoy payments on that loan ’till the end of the term. You will end up paying some interest to achieve this, but you’ll also build credit as you go along. All you need is the cash up front to create that happen.

Get A Cosigner

When everything else fails, find someone with good credit who’s willing to cosign with you over a loan or credit card. In this example, the bank or creditor will probably be using the other person’s credit to back yours just in case you fail to make payments in your debt. If you get a $5,000 car finance and stop paying halfway through, the financial institution can go after your cosigner for continued payments. That individual will theoretically work to protect their credit, so the bank is rarely at risk.

Most lenders prefer cosigners which can be immediate family members, like a mother or sister. You should use neighbors and friends if you must, however you might have a little more difficulty getting approved together. If you do find someone who will do the job, remember that his or her credit score is at stake. Protect it by making consistent, on-time payments in your account.

Conclusion

Now that you learn how to get credit when you have no credit, you have to figure out which option fits your daily life. Do you have money to put right into a CD loan or secured charge card? Do you have property to put as collateral? Do you have someone prepared to cosign with you for a credit line? Explore your choices carefully and choose the one that is right for you. Then, sustain your commitment so you can build a good credit rating for the future.