Why Do We Need Insurance?

Have you ever heard someone say that they don’t need car insurance because they are a cautious driver? Or someone says that it is a waste of money to get homeowner’s insurance because their house is paid off? If everyone thought that way, there would be a lot of uninsured people out there. The truth is that most of us don’t really understand how insurance works-we just know that we need it. Of course, it helps if you know how insurance works.

What Is Insurance?

Insurance is there to protect you from the unexpected and to help you adjust to your new life when you are struck by an injury or illness. Health insurance, for example, is one of the most important types of insurance to have. You can choose to go with Medi-Cal insurance or any other health insurance provider, but whoever you choose to go with, they’ll ensure that you get the treatment you need when you need it, helping to reduce the financial burden of illness when you’re least able to pay. It is important to know that you don’t have to suffer financially for a long time when you need to file a claim for insurance. In the past, filing a claim could take years, and in the meantime, you might still be paying for your policy and could be denied a modification when you were ready to stop paying your premiums.

Getting a refund for the premiums you paid when you were unable to work is one thing that insurance companies are required to do for you under the law. It is important that you file your claim in a timely manner when you are injured, so you can get all the benefits you deserve in the first place.

Why Do We Need Insurance?

Insurance exists for one reason and one reason only – to be there for us when we need it most. However, most people don’t realize that insurance is not just about paying the bills and keeping the lights on when you get sick. It is also the peace of mind that comes from knowing that your family will be provided for if something happens to you. And it is about helping you make sense of the complex choices available in the insurance market.

The reason why you need to pay attention to insurance is that it is a must when you are dealing with certain things. This is one of the things that you cannot avoid in your life. If you have a lot of money now, it would be best for you to go out and buy insurance so that you can be protected in case something bad happens to you. The truth is that nothing is certain in this world. There are a lot of things that can happen to you when you are walking on the street, and there is no assurance that you will not get yourself into an accident.

When you get behind the wheel of a car, you are taking a big risk. The average motorist will get into an accident once every ten years, according to the National Highway Traffic Safety Administration. If you hit a pedestrian with your car, you could end up with medical expenses, lost wages, and pain and suffering that could total thousands of dollars. Luckily, there is a way to protect yourself and your family from the financial consequences of an accident, and that is by purchasing auto insurance. So now you know it’s vital, you might be worrying. But don’t worry – if you really shop around you can find cheap car insurance which won’t empty your pockets every months and provide the right cover for you.

Which is the Most Important Type of Insurance to Get?

When you are shopping for auto, home, or renter insurance, one of the first questions that you will need to answer is: Do I need insurance? Just like there isn’t one right insurance plan for everyone, there isn’t one right answer to this question.

Health insurance and car insurance are the two most important types of insurance to get. Health insurance helps you pay for the costs of medical care if you get sick or injured. Car insurance helps pay for the cost to repair or replace your vehicle if it is damaged or destroyed by accident. You need both types of insurance if you want to protect your assets from potentially large expenses.

If you only knew one thing about insurance, it would probably be that you need it. That is because insurance is a type of risk management. The insurance markets work on the principle of pooling risk. If you have an insurance policy, any claims to your policy are shared among a large group of other policyholders. With the group size being large, the likelihood of a single person making a claim is small, lowering the risk for each policyholder.

Most Americans spend about $9,144 each year on insurance. That is more than credit cards, utilities, or any other monthly bill. It is also the second-highest expense after shelter. While it is unclear whether health insurance is necessary, life insurance is, especially if you are worried about your financial situation and how your family will live without your income. Though you may want to take a look here to learn more about Final Expense Life Insurance and how this can provide relief when it comes to paying for any funeral expenses, the idea of looking for a suitable life insurance policy is definitely something that you need to take the time to look into now, before it is too late. It is no secret that everyone needs to have life insurance at some point or another, but the amount you need depends on your age and your other financial obligations.

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Why Open a Savings Account?

Money has been a necessity for human survival. Without it, there will be no booster of a developing economy. It is a thing that allows humans to buy both their needs and wants. Also, money makes way for good market to happen between countries. Importation and exportation of products and services are getting easier because of it.

However, people seem to neglect the habit of saving. Once they get money, they mostly spend it on things that they don’t even need. So, we are going to discuss why you need to open a savings account, as well as the benefits you can gain from it.

A savings account is made once you inquire at your trusted banks. This account allows you to save money for future or emergency purposes. It comes in different offers and codes depending on your salary or other sources of income. A savings account may be neglected but having even one can have a big impact in your life. Here are its benefits:

  • Builds your Future

If you are currently working 9 hours a day, or if you have other sources of income and plans to build a good future, then you need to open a savings account. This is because a savings account, once grown, can be of huge capital. For example, you’ve been saving 30% of your monthly income and after 5 years, you will have a good amount, enabling you to start your planned business. Also, banks allow customers to save with interests depending on the promo and amount being deposited monthly.

  • Emergency Purposes

Life is full of unexpected events, which is why having a safety net in the form of a savings account, can be of huge benefit. For example, your loved one got admitted to hospital and your fund is short. Good thing you have a savings account that can help you out of this emergency. Also, if you have emergency payments, you can easily transfer money to pay bills.

Just a tip, it isn’t bad to take out all your savings when there is an emergency, but leaving a little amount is still needed as it can motivate you to start saving again. Just be wise and dedicated.

  • Easy to do

Another thing, opening a savings account is easy to do. You only need to visit your trusted or nearest bank office so that you can inquire. Here, an accommodation personnel will entertain you throughout the process. Now, you only need to fill out the forms, agree to the terms and conditions, and start a deposit. It doesn’t matter how much you deposit at first, but make sure that it is the minimum amount provided by the bank. You will also be given a bank card that you can use to easily deposit or withdraw money.

  • Online Transactions

If you are busy working or hustling for your future and you still want to secure your savings account, then don’t worry. Most banks today have their online platforms and online transactions and services have been rampant, and ever since then technology has been creating huge improvements. You only need to download the bank application or visit the website for you to check your bank accounts. You can also make deposits and withdraws online through e-money or online transfers.

  • Saving is a Necessity

As previously mentioned, saving your money is needed. This is because of the uncertainty of life wherein you may find yourself on top today, yet struggles could still come your way. So, you only need to have a safety net through having a savings account. These accounts will provide emergency funds and additional sources to make a good life. Also, working out your future as early as today will ease your life in the coming decades. Once you own even one account, then your older self will thank you soon. You can retire young, as well as enjoy the rest of living with ease and fun.

So, if you still don’t own any savings accounts, then own one today! Always think in advance about your future self and family. Treating yourself today isn’t bad but your future must also be prioritized. If you want to live a good and easy life, then go make yourself a savings account!

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Everything We Need to Know About Class Action Settlement

The two most likely outcomes in any class action lawsuit are either the case is dismissed or the parties reach a settlement. Even though a settlement may be worth millions, we can end up with a meager share in the end. We need to consider all the several factors involved in a class action to help our company make the right decision.

 

Here are the essential aspects of class action settlement we need to understand.

 

Class Action Comes With Expectations

Anytime we want to take up a lawsuit, we must be ready to go the long haul as the lead plaintiff. Once we have identified misconduct on the other party, we have to perform our obligations for the case to proceed. One of our duties is to seek class certification of the case.

 

To obtain certification, we have to prove harm or injuries caused by the defendant. The lawsuit must be within the laws of the state. We also have to show that a class action is the best way of resolving the claims for both the plaintiffs and the defendant.

 

The class action must have the right number of class members joining the lawsuit. An ideal number in most cases is around 21 to 40. Even though the law does not restrict the number of members, all the members joining the lawsuit must have a standard set of legal interests and facts on their claims.

 

Class Action Takes Time and Effort

As mentioned earlier, as a class representative, we have a lot of responsibilities to ensure the success of our suit. These duties require time to fulfill. We have to ensure every class member’s interest is taken care of and actively participate in the lawsuit, requiring you to understand and note the progress fully.

 

We can spend less time on the case when we file it after litigation or settling with the defendant. Before we go for the settlement, we have to ensure it measures up to the damage or impact of taking up the class action. In case of inadequate compensation, we can proceed to file an individual lawsuit and invest our time to fulfill our responsibilities.

 

In the end, the time and effort employed on these cases are always rewarded. We also get paid for the courage to challenge the atrocities of the defendant. The courts determine the amount for the compensation but are not guaranteed. We need a lawyer to ensure the courts grant us this reward.

 

Avoiding Litigation Does Not Help Our Bottom Line

There are a lot of negative perceptions that come with entering a legal battle with other businesses. The truth is that by the time we consider taking a lawsuit, we have already weighed the damage and injuries the defendant has implicated through their actions. Go ahead and take the case. It is the best shot of getting the compensation the other class members, and we deserve.

 

Small Business Need to Hire Outside Counsel

Taking up a class action by a small business is tasking. Unlike big companies with in-house counsel, small companies cannot afford such luxury. To help our chances of winning a class suit, we need outside counsel to face off with the defendant’s counsel.

 

An outside lawyer has the experience of how to file suits, collect and provide evidence, and know how to go about winning a case. The only concern is how to pick the best counsel for our case. We need a firm with a record of winning similar cases. Allowing newly established litigation firms to fight out for us is a gamble that can cost us more than what we are trying to recover.

 

Now that we know the four main aspects of a class action settlement, we realize it is a worthwhile venture. Unfortunately, not many enterprises have the time or expertise to notice the need for a class action. That is why we need a competent financial and litigation firm to investigate, lodge a claim and prosecute the case until we win our class action settlement.

 

Competent firms are experts in identifying and analyzing the possible ways we might be losing out. Once they identify the potential class action, they will guide us on what is possible and how to go about the whole filing process.

 

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Advantages and Disadvantages of Bank Loans

Bank loans are made to help us in times of financial struggle, they are available in many different places within each country so no one has to miss out. There are a range of locations as seen here for this particular loan https://www.towerloan.com/branch-locations/illinois-locations/ which can aid people in a variety of different life events such as weddings, funerals, house moves or home improvements for a few examples. It aids us to get through by allowing us to borrow enough money to settle our problems. In business, bank loans are available to be used in purchasing equipment, inventory and to obtain the funds and operation capital of our business expansions. Also, bank loans are regarded as reliable and honored methods to finance our business, either big or small. However, it can’t be gained that easily. Bank loans can be available only if we can guarantee the bank with finance firms with a long track record and substantial collateral. Aside from that, some banks are strict when it comes to their bank loan offers.

Given that, as citizens and probably business owners, weighing the advantages and disadvantages of having bank loans must be well-thought of. In this way, regrets can be avoided in the end, and more success can be met. Below are only some of the top advantages and disadvantages of bank loans in our life both as citizens and business owners. So, let’s start!

Advantages of Bank Loans

More Control in the Business

The first advantage of bank loans is that it can give us more control in the business. With bank loans, we can borrow an amount that we can use to improve our business, as well as its capability to provide more services or products to the valued customers. Now, as we already borrowed an amount from a bank, we can control the operation of our business, its plan, and its goals in the future. As we hold the money for these things to happen, we can properly dwell with our business and ensure that it’ll reach success.

Moreover, unlike equity finance, banks do not take business ownership positions. Bank personnel also aren’t allowed to be involved in the business operation, whatever it takes. Thus, the control of the business is still left to us as the owners.

It is only temporary

Next, if we borrowed an amount from a bank through a loan and we finished paying it on time and contract, it’ll literally come to an end. So, bank accounts are temporarily depending on the amount we borrowed, as well as the agreed amount of dividend payments in a certain period. Once we have finished paying our loan, we’ll no longer be obliged to be involved with the bank lenders and the bank itself. With this, we can enjoy running our business more while we earn.

Tax-Deductible Interest

Lastly, bank loans have tax-deductible interests. Additionally, this is best with fixed-rate loans wherein interest rates are not changing during the loan course. With that, loan service payments will remain the same throughout the loan’s entire effectiveness. Also, with these, it can be easier for us to plan and budget our monthly loan payments. With the additional help from a spreadsheet for computing our future payments in the business, our business life can be managed easily and effectively.

Enough with the advantages, let us now proceed to the disadvantages of bank loans.

Disadvantages of Bank Loans

Tough to Qualify

The top and greatest disadvantage that we can possibly encounter with bank loans are that it is tough to qualify. Here, it will be hard for us and our business unless there is a valuable collateral or a substantial track record such as real estate. This is because banks are being careful when it comes to their clients. They see to it that the clients have the capability to pay loans and to ensure that there will be no losses or defaults. Moreover, business borrowers will be required to provide personal guarantees wherein assets are seized when failure or being unable to pay the loans came to happen.

High-Interest Rates

When it comes to businesses, there can be an increase in terms of the interest rates as well as insufficient bank funding. Often, businesses face this kind of concern, and it isn’t wise to just grab it. High-interest rates in bank loans will never be helpful to fund our business. Instead, it will only make it more difficult for us when paying the loan. So, we better be wise when choosing the bank offering bank loans with interest rates.

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Signs We’re On Our Way to Becoming Millionaires

Millionaire! Yes, it is a big, mouth-watering word. Who doesn’t want to become one! None, I guessed it right. I have met many people in this world – businessmen, businesswomen, music artists, and athletes – and none of them says no to cash, not even the clergy. That is because money seems to be everything in the world we live in: factual! Now that all of us want to become millionaires, what signs should we watch out for? Of course, not all of us can be millionaires; it is simply not possible. For those of us who are “called and chosen” (join me in being a Christian here) to be millionaires, here are the signs that we are on the right track to making this big dream come true.

 

We Have a Sixth Sense: the Power of Saving

All of us know that we cannot become millionaires without the power of saving; I mean saving money. Dreaming to become one without saving to achieve the goal is akin to chasing a mirage. It doesn’t matter the amount of income we get, whether it is mega or meager, saving a part of it is essential to building a bankroll, which will eventually see us become millionaires. Knowing how much we should save from our income to get to the mark we want is vital here, and it may just be a matter of countdown before we acquire that  huge status. Setting a monthly budget is an excellent way to go about this. From the budget, you can be able to know our recurrent expenditures and see how much we are left with that should go into our savings kitty.

 

We Always Aim Higher

Allow me to call this shooting for the moon. That means we will land among the stars even if we missed the target. To put it simply, if we are aiming to save $100 a month, then we should aim $150, for instance, so that even if we don’t achieve that, we will still land on the minimum mark. Aiming higher motivates us to get down to work.

 

We Start Investing While We Are Still Young

Life is short, and we can’t just afford to wait. Forget  about wanting to start a business at 30; the earlier we start interacting with the business world, the better. If we are diving into investments in our teens, then that is a sign that we are destined to become millionaires. We should not wait until we have started raising families. Remember, a family comes with greater responsibilities, and we may be ”pushed” to start investing instead of being ”pulled”. The former simply means that our financial problems are the driving factor. In such circumstances, we are likely to spend everything we earn, and this is a very bad sign.

 

We Thrive Even in Difficult Circumstances

It doesn’t matter what we are going through, we always see opportunities to make money. During the Covid- 19 pandemic, for instance, there are people who made fortunes out of this situation. I call them Covid millionaires. Guys in my hometown were making masks like nobody’s business, and they were really making a kill out of it. Yes, I mean the ability to see a business opportunity where there seems to be none.

 

We Are Always Creative and Innovative

Are we able to come up with something new that people will like? What about improving on what already exists with an aim of diverting the attention of customers to our business? That is what creativity and innovation mean. If we have these abilities, then nothing should really stand in our way of becoming millionaires.

 

We Know the Difference Between Essentials and Non-essentials

This is where many people make mistakes. Must I eat chicken every other day in my home? Must I drive a car at this point in time? Knowing what is essential and what is not is something that those of us who are destined to become millionaires will want to consider. With a clear plan of where we are heading to in our mind, we should be able to tell the things we need now and those that can wait. Call this delaying gratifications.

 

We’re Risk Takers

We can’t become millionaires if we are not ready to take risks, in terms of investment. In fact, the ability to take risks could be the main difference between a successful entrepreneur and an average business-minded person, who lives from hand to mouth.

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Ways To Be More Sustainable With Fashion

While we often think about flying, eating meat, and using disposables as some of the biggest offenders of climate damage, the fashion industry is actually one of the biggest contributors. In fact, your fashion has a pretty substantial carbon footprint. You can learn more about the term ‘carbon footprint’ over at https://www.cooleffect.org/how-to-reduce-greenhouse-gases-a-guide-to-understanding-your-carbon-footprint if you are unsure as to its meaning. This will give you a greater understanding of its relevance to the fashion world and allow you to better understand the reasoning behind my following top tips for staying fashionable, but remaining sustainable.

Avoid fast fashion

Paying a proper price for your fashion items, be it by choosing to skip the cheap wristwear and buying an expensive watch, or other fashion items, means it more likely came from an ethical source. “Fast fashion” is clothing that is made very very cheaply, from low-quality materials, by people who are underpaid and overworked. It is sold quickly and in great quantities to keep up with the latest trends on the catwalk. Although it may seem like buying a dress for $10 is a good deal, it is very harmful to the environment, not to mention the people working in the sweatshops to produce it. Though it can be difficult to avoid fast fashion if money is tight and you are looking to save money. You could look into websites like Raise which can find discounts for better clothing and help you avoid fast fashion.

Take care of your clothes

It’s not just about buying fewer or more responsibly sourced clothes, but taking care of them too. Follow the washing instructions so that you can get the best possible wear out of them.

Wash the eco-friendly way

As well as taking care of your clothes, you can do it in an eco-friendly way. Wash on 30, 40, or cold as much as you can. You can also buy a bag to put everything in that catches the microfibers and plastics that come off your clothes and would otherwise go straight into the ocean. You can then remove them from the bag and put them in the trash. Once it’s done, hang it up to dry on an outside line or an indoor drying rack. Skipping the dryer can also extend the life of your clothes, saves on your energy bills, and reduces your carbon footprint.

Does it spark joy?

Take a leaf out of Marie Kondo’s book and go through your wardrobe. With each item, hold it in your hands, really look at it, and ask yourself “does it spark joy?”. In this way, you can be more minimalistic, which is better for the planet. Only buy clothes that you need and will wear often.

Repair

Sometimes you get holes in clothes, it happens. It’s no reason to throw them out. Grab a needle and thread and sew them, or take them to a tailor who can mend them professionally for a more complicated tear. You may think it’s not worth the money, but is it worth adding to landfill otherwise?

Upcycle your clothes

Okay, so sometimes clothes really are past their best. I know I had several pairs of pajamas and leggings that almost turned to dust after I sewed them up three times in the same place. My favorite use for them is as rags or produce bags. Pajamas with a drawstring waist make for the perfect produce bags, and the rest can be cut up and used as cleaning rags. I also like to cut old cotton clothing into squares and hem the edges to make handkerchiefs, or even re-usable ‘un’paper towels. Alternatively you can look at buying upcycled apparel if your sewing capabilities aren’t quite up to scratch!

Buy second hand

One of my environmental resolutions was to buy all my clothing second hand (okay, maybe not underwear). You’d be surprised at the things you can find in thrift stores online and offline. The Salvation Army, Good Will, Vinted, eBay, Facebook Marketplace, ThredUp, Craigslist, and good ole local consignment stores and church thrift stores. There are some real goodies among the racks, and for such bargain prices!

Buy ethically

Sometimes buying secondhand isn’t always viable, or maybe you just can’t find what you want. There are lots of ethical stores online, although the clothing here is much more expensive, and not accessible to everyone. Hopefully in time, the more people that buy ethically, the more the price will come down! These items are often made from recycled materials like plastic, or from responsibly sourced materials made by workers that are properly paid.

Sell and donate

Instead of letting your closet fill up with stuff you don’t wear or has gone out of fashion, regularly go through Marie Kondo style. Anything you don’t need anymore, sell online on places such as Vinted or ThredUp, or simply donate to a charity store like Goodwill.

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Being Aware Of Financial Scams

There are enough things to be concerned about when it comes to finances without worrying about financial scams and fraud. Yet, this is something that I have found has become increasingly more prominent and has created a need for awareness.

 

Targeting Seniors

Anyone can become a victim of a financial scam, but seniors are more vulnerable. One of the reasons why is because they are far more trusting. They also may not have access to the technology that can keep them informed about the many different scams.

 

Medical Scams

One of the common types of scams that I personally am the most concerned about lies within the medical industry.

 

  • Health Insurance and Medicare:

Most US residents know they are entitled to Medicare once they reach age 65. What can happen is a person can pose as a Medicare agent and gather all types of personal information from a senior. Or some have more elaborate schemes where they will set up bogus clinics. Seniors will attend these and receive inferior medical care. The perpetrators of this will then bill Medicare and keep the payments.

 

  • Prescriptions

I have found that many seniors have become quite familiar with the internet and will use it for different shopping needs. One of these may be for getting a lower price on prescriptions. The scam here is that the senior can receive the wrong drugs. Or useless ones. Or they make a payment upfront and never receive the drugs. They are too embarrassed to report this so that they will accept the loss of the payment.

 

Burial Scams

Most would agree with me that all scams are horrid, but this one is alarming. Senior enter into funeral and cemetery contracts thinking they have protected their loved ones from having to deal with this.  Here I have outlined a variety of different scams that fall into this category.

 

  • The grieving widow or widower: Scam artists will attend the spouse’s funeral who has passed and made friends with the surviving spouse. They may spread this false friendship out over time where they drain the victim of assets and money. Or they may make it a quick hit where they will tell the spouse that the deceased owed them money. The grieving person is not thinking straight and may pay this bogus debt with no proof it exists.
  • Escalation of Funeral Costs: Another despicable scam is by funeral homes that are experts at draining the survivor of as much money as possible. They do this by convincing them to buy the most expensive services. One being the casket, which is normally expensive anyway. The survivors are extremely vulnerable at this time and will tend to buy into whatever is presented to them.

Phone Scams

Seniors are particularly vulnerable to phone scams. Quite often, they cannot clearly hear what is being said to them, and they will fall for all types of likes. Scammers are very good at preying on the seniors who are often lonely and are just glad to hear another voice. After a little bit of sweet-talking, the senior may end up making some hefty donations to a whole gambit of phony charities.

 

  • The Sharing Scam

This is called the “Pigeon Drop” the scammer will create an elaborate story of how they found some money. All perfectly legal, according to them. They want to share their good fortune with the senior who they have targeted on the telephone. All the senior has to do is make a “good faith” payment to the scammer. In many cases, there will be a second scammer who will act as the banker who will take this good faith payment.

 

  • The Fathom Accident

A scammer will get to know some basics about the senior’s family. With this knowledge, they will later contact the senior with an urgent request for money to be sent because a relative has suffered a mishap and is in the Hospital. This scam works well when the scammer has learned that one of the seniors’ family members is going out of the country for a holiday or business.

 

  • Mortgage Scams

Many seniors own their homes, and they are mortgage-free. Some scammers will capitalize on this and try to get the senior to take out a bogus mortgage. Some using the reverse mortgage as a way to create a scam.

 

I know it can be very difficult for seniors to stay aware of all the different scams that they may be subjected to. My suggestion is to not do anything financially without the assistance of a trusted family member.

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How To Get a Loan With a Poor Credit Score

I think we both agree that last year was a tough year. A global pandemic wreaked havoc across the globe and led to many people losing their jobs and businesses As a result, they were unable to pay their mortgages and settle their credit card payments. This led to a bad credit score. Maybe you were a victim of the above-mentioned issues and you need to get a personal loan.

Also, it could be that you have a bad credit score due to other reasons and you are wondering how to get a loan since most financial institutions will check your score before deciding whether to offer you a loan. If you are in such a predicament, then I will detail some of the steps I took to get a personal loan while having a bad credit score.

Be Careful

If you have a bad credit score, be careful about the lenders you approach since scammers and shady companies want to pray on your desperation. One red flag I assess for is companies that are more than willing to offer me a loan even before you apply. Some of these lenders will either charge me exorbitant interest rates or use my financial information for fraud.

Also, avoid title loan and payday loan lenders. They are predatory lenders and target people like me who have limited loan and credit options. Though they will give me the loan, they will charge me astronomical interest rates. I might end up paying up to 30 times more in interest. Instead, try to find an alternative. If you are a veteran, check to see if you have the minimum credit score for va loan since this most likely will have a better interest rate than a payday loan.

Talk to Your Bank

If you have a good relationship with a financial institution, now is the time to capitalize on the relationship. They might be willing to offer you a loan even with a bad credit score. This tactic may not work with a large national bank (like in my case). However, this might also be an indicator that you need to assess your banking needs and look for financial institutions that have products that match those needs.

In my case, smaller banks and credit unions were more willing to work with me to get a loan. The only downside is that credit unions had some requirements that I had to meet. For instance, I had to be a member, and my location determined my membership. Other credit unions may need membership based on your employer or other criteria. This might look daunting, but some of the criteria are easy to meet, whereas some requirements have a workaround. But, the first step is to know what the requirements are. You can use credit union reporting tools to compare different ones until you find which is the most suitable for you.

Get a Co-signer

When I had a low credit score, I urgently needed a loan to settle a hospital bill, and my bank was unwilling to lend it to me without getting a co-signer. I talked to my brother and he agreed to be my co-signer. This option is risky since it makes the co-signer liable to paying your loan should you default on it. I advise you to discuss all the loan details with the co-signer before, read through the loan agreement terms and the co-signer’s conditions. Once the co-signer is okay with all the details, they will make an informed decision when co-signing for you.

Try Peer-to-Peer Lending

Instead of borrowing from a traditional financial institution, you can use a peer-to-peer lending service. Peer-to-peer lenders connect borrowers and investors who lend out money. The terms of the loan vary, but you receive a lending decision in a short time. Although peer-to-peer lenders might still need my credit history and I have to pass a credit check, they may be more accommodating compared to banks.

Go for Payday Alternative Loans

Steer clear of payday loans and instead explore some payday alternative loans (PAL) offered by credit unions. These are small loans of between two hundred to a thousand dollars and you have a payment period of between one to six months. I once took a payday alternative loan and I got $800 at 25% interest. The interest was high, but at least I was able to get a loan and I did not fall victim to a payday lender.

If you have a bad credit score and you need a loan, then the above tips will help you out.

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Managing Money Through A Pandemic

I like most people never thought that they would ever be subjected to a pandemic. Therefore no thought was given as to how they would manage financially. For those who are experiencing the COVID 19 crisis, money issues for many have become a reality.

 

Loss Of Income

I found that one of the biggest hits for many people is the loss of income because they were laid off from their jobs, mostly due to shutdowns, and for some, this was temporary. Although governments in many countries did offer some supplementary help for many families, this fell short of their needs.

 

Making Some Rapid Changes

It soon became a necessity for many people being financially affected to make some rapid changes.  Which also included me. Some managed this quite well where others panicked and have found themselves in dire situations.

 

What Can Be Done?

Although there is hope on the horizon regarding personal health and protection, this is not eliminating the worry about the financial situation. For this, no vaccination is going to protect them from financial hardships.

 

It means taking a look at the current financial situation and also doing some forecasting for the future. I start by looking at what the present circumstances are. For me, I consider the most important things are putting food on the table and keeping a roof over my head. Two critical aspects to surviving but also two that have become dramatically affected due to the circumstances include the following:

 

Food: There is no shame in turning to food banks for assistance. What will help is to learn how to stretch the food provided for us, as long as possible. It means being more creative with cooking. I have more that I have had more time to do some cooking research and can dedicate more time for food preparation. The key is to use the food in ways that will still be appealing to the family. Most of the foods offered by organizations are based on nutrition and not on convenience in preparing it.

 

Creatively use the leftovers. There is no room for waste during these trying times. Food that is left over should be repurposed into another recipe, so it is used to its fullest extent.

 

For those people who don’t rely on food banks, they should implement frugal shopping. This can be difficult as shoppers don’t have as much access to the number of stores as they do in normal circumstances. Many of us have reduced our shopping trips to protect ourselves from getting or spreading this virus. As a result, we are not traveling around to several stores to take advantage of the weekly bargains.

 

I look at the weekly specials that are being offered at the grocery store that I use, then plan the meals around these specials. This can really save some money.

 

Housing: This is a potential problem that can be a real concern. Even if the landlord is currently restricted from taking action, what happens when the restrictions are lifted? The only viable solution that may be present is to try and negotiate with the landlord now. Be honest as to what your current situation is. For example, if you expect to be recalled to work when the threat is past, let your landlord know this. Then have some type of answer as to how you will make payments to catch up on the arrears.

 

If there is suspicion that there is no negotiating with the landlord, try to have a contingency plan, one that can be implemented if there may be a pending eviction action to be fulfilled in the future. In my case, I spoke with some family members who would be willing to share accommodation with me for a short time. Plan on what you can do for storing your furniture. Do your research now as to what organizations may be available to assist you.

 

It is difficult to be pro-active regarding this housing situation when there are so many other stressors to deal with. But being prepared will help keep things under control and help you better deal with any situation that may arise. Having some plan of action is much better than having to deal with an urgent matter that requires immediate action, and no resources have been sought out. I found that by doing this I have some peace of mind.

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