Monthly Archives: December 2014

Tips For Reducing Debts In 2015 To Achieve Financial Goals Quicker

Every single year more and more Americans fall into debt and for some an even worse fate, bankruptcy. The problem for many is purchasing more than they can reasonably afford or pay off in a quick time. Too many people abuse credit making big purchases without doing the math first and having what I call an exit plan to pay the debt off. Personal debt is often times unavoidable, we have debts for rent or our mortgage, car payments, insurance payments etc. Personal debt is only a problem when we make purchases that dwindle our spending power to the point that all of our income goes into paying off debt.

Reducing our debts and managing them is vital to our financial success and good credit. Your credit score takes into account your debt to income ratio as well as your credit utilization ratio, that is how much of your available credit you have used. Using more than 30% of your available credit will impact your credit score negatively. If you want to qualify for a loan down the road with a good interest rate it is essential to reduce your personal debt.

Reducing your debts is an equal part of will power and common sense. Most times when we fall deep into debt it is our own fault, baring medical debt or veterinary bills, but debts like $4000.00 to a shoe store because you just had to have those 3 pairs of Gucci shoes well that debt is your own fault.

If you want to reduce debt in 2015 just follow these simple rules:

* Write a budget, calculate how much:

Expenses you have, debts and revolving payments.
Spending power you have, that is money that is not going to essential expenses
How much you can afford to place into a savings account.

Once you have this knowledge and you should memorize it, at no point should you ever not know where you stand financally at any point during the year, there is no excuse for not knowing. With this knowledge handy you now know what your spending power is and if you need to resort to using credit you now know how much money you have available to spend on monthly payments to pay off that debt as quickly as possible.

* Resist the urge to over spend

Before you buy anything ask yourself if it is needed and how it will effect your overall finances. Yes you need to live a little, you need to spend some on yourself to make life worth living but if you are spending several hundred dollars on things each week that you do not need you are holding yourself back.

* Examine your credit score and credit cards
If you have accounts with high interest work on finding new credit cards with lower interest or call your credit card company and try to negotiate lower interest rates. You can save anywhere from hundreds to thousands of dollars by following this simple tip.

* Pay off your highest interest debts first.
Take inventory of your debts and what the interest rate on them is, then pay off the highest interest ones first. If you can consider a debt consolidation loan if the interest is in a more acceptable range as not only will you pay less in interest but your credit score will go up. is on a mission to help consumers achieve their financial goals in 2015. We review consumer finance loans, credit and debts and provide tips for borrowers from Texas to Alaska, Massachusetts to Hawaii and everywhere in between.

Short Term Military Loans What Are The Regulations For Active Personnel

Since 2007 active duty armed service members have been protected by the Military Lending Act (MLA). A 2006 Department of Defense audit determined that many service members were being taken advantage of by some short term lenders.

Some unscrupulous lenders would open store front offices near military bases and offer short term loans to members of the military members in financial crisis. Some of the loans issued charged interest and fees of several hundred percent annually. The MLA was passed by a bipartisan Congress and signed into law by President Bush. In 2012, enforcement of the MLA was placed with the Consumer Finance Protection Bureau.

Features of the Current Military Lending Act

The MLA presently regulates three basic types of credit transactions:

• Payday Loans with terms no longer than 91 days and a loan amount of $2,000 or less;
• Auto title loans no longer than 181 days in duration;
• Tax refund anticipation loans.

Under current regulations, a creditor can charge no more than 36 annual percentage rate (APR). The APR includes not only interest charged, but fees included in the loan, including insurance premiums, points, credit service charges and renewal charges.

In addition, the MLA provides additional protections:
• The lender cannot force the borrower of arbitration of the lender’s choosing;
• The lender cannot require the loan be paid through allotment;
• The borrower is entitled to have an itemization of all fees and loan terms provided in writing, as well as an oral explanation of all fees charged;
• The lender cannot waive consumer protection laws.

Future Military Lending Act Regulations

The DOD has found that some creditors are changing loan terms slightly to avoid the protections of the MLA. For instance, payday loans are offered for amounts slightly over $2,000 or slightly more than 91 days, thereby taking themselves out of MLA jurisdiction.

The DOD is seeking to amend the current regulations to bring more short term lending within the scope of the Act. Proposed regulations were created in September 2014 and were published for public comment on September 29, 2014. The Act itself provides the DOD authority to amend the scope of credit transactions.

Under the proposed regulations, the 26% APR rate and current protections would remain in effect. Most closed end credit transactions would now be covered by the Act, except the following:

• Loans secured by real estate;
• Auto loans issued for the purpose of purchasing a vehicle;
• Other purchase money loans;
• Rent to own contracts;
• Credit cards borrowing, if the fees and interest charged are customary and reasonable fees.

In addition, the creditor would be required to inform the potential borrower that he or she should seek other forms of lower interest debt and to engage in credit counseling. There would also be a provision that the lender cannot waive protections of the Civil Relief Act. The amendments are expected to become new regulations after the period for public comment have expired.