How to Plan a Dinner Party on a Budget

How to Plan a Dinner Party on a Budget?

How to Plan a Dinner Party on a Budget

How to Plan a Dinner Party on a Budget?

It’s a great work, hosting a dinner party. Whether it is your first time or not hosting a dinner party, you will find this article helpful. It tells you what to do before throwing such an event. It illustrates how to calculate the money it requires to launch the party.
And it provides ideas and tips for the dinner. If you will implement such tips, you will likely lift your social clout higher.

What to do Before Throwing a Dinner Party?

Before throwing a dinner party, you have to consider the following issues.

Money: It is very important. Without money, you can find it difficult to host a party. A budget shows how much you need, how to spend it.

Make an invitation list: If you want to host a large dinner party, you need to get an invitation list. The list will help you track how much you will spend on foods and drinks.

Decide the theme and decoration: Choose a perfect theme and decoration for the dinner party. People appreciate expensive glasses, plates, and other dinnerwares. Choose the one to do the trick.

Choose a Location: A nice venue, it is a good option. It earns you respect. For a few people, your house is okay. When choosing a venue, you’ll have to consider the type of invitees. For your friends, your home is okay but for business associates, you should book a nice venue.

Deciding the Date: People are busy…most especially on weekdays. Weekends are the best days for parties. Choose a perfect date, one that is convenient for everybody.

Send Invitations: Ensure you notify everyone on your list. You can send emails. Make phone calls or send messages via SMS, WhatsApp etc. Just make sure that you reach out to people.

Plan Your Menu: Choose the recipes. Make a budget for the recipes. Get them from the market. For friends, you should cook whereas for business associates or a large number of invitees, hire a catering service.

Plan the Entertainment: Spice up the party with some playlists background (music). Energize the atmosphere, with solemn songs. You can hire a keyboardist.

How to Calculate the Money Required Hosting the Dinner Party?

It is a simple arithmetic duty. Let us say the total amount of money you need to launch a dinner party is DPC.

Let Dinner Party Cost, DPC = $ [GC + NGC]

Where GC is the Guest Cost and the NGC is the Non-Guest Cost.

And the money budgeted for each guest’s food and drinks is the Guest Cost. While the money used to rent the venue, hire a catering service, send invitations, and make decorations is called the Non-Guest Cost.

Add the guest cost and the non-guest cost together, and then you obtain the amount of money needed to host the party.

To get the idea better, permit me to give an example. Let us say you’ve invited 10 people to a dinner party. And the money required to get food and drinks for a person is $50.

Then the Guest Cost, GC = $50 X 10 = $500

If the amount of money needed to book a venue, send invitations, hire a keyboardist, and cater for other expenses is $900.

Then the Non-Guest Cost, NGC = $900.

Sum up the GC and NGC, you have the amount required to host such party, which is $1300.

How do you get the money to host a dinner party if you’re broke?

Perhaps you cannot afford to take the money out of your saving; you can take out a personal loan online. There are several online lenders on the internet.

Without leaving the comfort of your home, you can get a loan approved. And before you take out an installment loan online, ensure you have a good job, a good financial standing and a high credit score.

If you can get a co-signer, it makes your loan get approved quickly. Maintain a lower debt-to-income ratio (DTI) as online lenders use it to determine your creditworthiness and how much of loan you can afford.

Taking out a loan will help you finance the party to your taste.

Dinner Party Ideas

With these ideas, your guests will find the dinner party warming.

Write a timeline for the party: Take your time; write a timeline for the dinner party. So that you won’t miss things up. Provide an order that shows how the party would be run. Doing that saves time. Everyone’s time worth planning.

Book a venue, if your guests are formal. You can also host a dinner party right in your home if the guests are informal such as friends and relatives.

To earn a party-like atmosphere, add some music background. Maintain a low volume; don’t let the music interrupt people’s conversation. Just like it is in movies, you can make your dinner party the same.

To reduce your expenses, tell invitees to bring their own bottles (BYOB). Despite this, you should provide some bottles of wine and stock up some non-alcoholic beverages for guests that don’t drink.

Be mannered. Meet people and greet them with gusto. When it comes to a social gathering like a dinner party, such things shouldn’t be taken for granted. Your participation is crucial as the host. Don’t be in the kitchen on your guests’ arrival. Be in charge of the welcoming.

Plan the after-party. If you find it challenging to clean up the mess and wash the dishes, you can hire workers to do it for you. Don’t procrastinate. If you do, your house will suck.

Conclusion

This article is helpful. It shows you how to plan a dinner party on a budget, how to calculate the money it would require, how to cut out the budget and how to launch a successful dinner party.

Choose the right venue. Invite your guest. Choose the right meal. Let them bring their bottles. Provide wine and wine glasses. Play some background music. Make them dazzle and party awesome. Encourage side talks and be yourself.
That’s all.


How To Figure Debt To Income Ratio

How To Figure Debt To Income Ratio?

How To Figure Debt To Income Ratio

How To Figure Debt To Income Ratio?

Debt-to-income ratio is financially crucial and you’ve to figure it out. Most especially if you want to take out a loan. Lenders are often strict with the DTI ratio.

To get your loan approved, maintain a low DTI ratio. If yours is high, this article will teach how to lower it so that you can achieve your goals.

Let’s discuss how to calculate your debt-to-income ratio.

What is an ideal debt-to-income ratio?

Most lenders agree to an ideal DTI ratio. For them, an ideal front-end ratio should be 28% or lower. And the back-end ratio –which includes all expenses-, should not be above 36%.

Nevertheless, lenders may accept higher ratios as often it depends on your credit score, assets, savings, down payment, and the type of loan.

How to get your debt to income ratio?

To obtain your DTI ratio, sum up your monthly loan payments and divide it by your monthly gross income. The result is expressed in percentage.

And here is the complete guide on how to figure out your debt-to-income ratio:

  • Add up your monthly mortgage payment, minimum credit card payment, auto loans, personal loans, payday loans, monthly child support payments, and other debt payments on your credit report.
  • Divide the answer by your monthly gross income. Your monthly gross income is your take-home pay, before taxes and other monthly deductions.
  • Convert the figure you’ve got into a percentage. That’s your DTI ratio.
  • Note that your monthly bills and financial obligations are not required. Don’t include utilities, groceries, insurance premiums, healthcare expenses, or daycare in the calculation because the lender doesn’t need them.

You may be qualified for a $350,000 loan but your DTI shows whether you can afford the monthly payment or not.
To understand the idea read the following content:

How to calculate the debt-to-income ratio?

Be happy, if you obtained a low DTI ratio and be ready to lower it, if you obtained a high one. Your DTI ratio demonstrates the status between your income and debt. Let’s us start the calculation.

Take, for instance, Mr. Gideon’s mortgage monthly payment is $2000, his car loan monthly payment is $1000, and other debts he pays monthly cover $1000.

So, sum up all his monthly debt:

His monthly debt = $ [2000 + 1000 + 1000] = $4000

But, Mr. Gideon monthly gross income is $12000

Now, let the debt-to-income ratio be DTI:

DTI = [Monthly Total Debt Payment] / [Monthly gross income]

DTI = 4000/12000 = 0.33

DTI = 0.33 X 100% = 33%.

So, Mr. Gideon’s debt-to-income ratio is 33%.

Using this method, calculate your debt-to-income. If your answer is high, you should read the next section. It’s helpful.

From this calculation, one can conclude that:

  • The bigger the debt you pay monthly, the higher your debt-to-income ratio.
  • The bigger your monthly gross income, the lower your debt-to-income ratio.

Let’s proceed to the next section.

How to lower your debt-to-income ratio?

So, you’ve calculated your DTI ratio but it’s high. Don’t worry. You can lower your debt-to-income ratio as it’s explained below.

  • Maintain a Low Budget: Develop a low budget. Do not make unnecessary purchases. Monitor your spending. Stock up money to pay down your debt. If you continue on a huge budget, you’ll find it difficult to reduce your DTI. The more your debt, the more the debt-to-income ratio.
  • Set up a Debt Payment Plan: There are two payment plans for a debt. One is the snowball method and the other is the avalanche method (also known as ladder method).

With a snowball plan, you pay down your small credit balance at first, and then you make minimum payments for the rest. Whenever you pay off a small balance, you go for the smaller, then to the next smaller and then on and on till it is cleared.

The avalanche method is based on higher interest rates. So, whenever you pay off the highest interest rate, you go for the next highest interest rate, on and on till it is cleared.

Ensure you stick to any of the plans you choose.

  • Lower your debt: High-interest credit cards should be lowered. And if you pay your bills on a regular basis with a good financial standing account, this may work. Contact your credit card company. Ask a way to reduce the rate on your plastic. If you don’t have a good financial standing account, this may work for you. Transfer the high-interest balance from your existing card to a new one with lower rates. Here is another option that it also works. Take out a personal loan to consolidate the high-interest debt so that it will become a personal loan with a lower interest rate. This is how to pay off debt fast with low income.
  • Don’t accumulate more debts: Quit making large purchases on your credit cards. Stop increasing your debt. Taking more loans drives up your DTI ratio and it hurts your credit score. Let your mind focus mainly on clearing your debt, not enlarging your debt.

How lenders view your debt-to-income ratio?

Often, lenders are strict with debt-to-income ratios and borrowers with a high DTI find it hard to get an approved loan. The DTI requirement varies from one lender to another as each loaner has its debt-to-ratio standards.

Creditors like personal loan issuers do not count on the DTIs but mortgage loan providers do. In most cases, the mortgage lenders accept 43% as the highest debt-to-income ratio.

However, some personal loan providers offer a loan to borrowers with 50% DTIs or more. Maintaining a low DTI ratio will help your confidence to negotiate a credit card debt.

Conclusion

This article is useful. It’s an article you need if you want to take out a loan to pay off a credit card debt. It shows the reasons why you need to figure out your debt-to-income ratio. It emphasizes how lenders use your debt-to-income ratio to evaluate your ability to afford a loan and above all, it shows you how to lower your debt-to-income ratio, if it is high.


How To Plan A 60Th Birthday Party On A Budget

How to Plan a 60th Birthday Party on a Budget?

How To Plan A 60Th Birthday Party On A Budget

How to Plan a 60th Birthday Party on a Budget?

Woohoo! You’re now 60. You’ve got to prepare a big party for it.

This birthday should be remarkable, awesome and memorable. What do you think?

Even if you want to run a low budget, you need to plan a budget for the party.

And this article will show you how to plan your 60th Birthday Party on a budget. Let’s begin.

How much money do you need to budget for the birthday party?

A good party plan cannot be made without having some money budgeted. And this section shows you how to calculate the amount of money needed to launch your birthday party.

Birthday Party Cost (BPC) = $ [GC + NGC]

Where, GC is the Guest Cost, and NGC is the Non-Guest Cost.

The amount of money required to cater for your guest’s needs at the birthday party is the guest cost. And it depends on the number of guests present at the party.

To know how much that would cost, you need to create a list of your invitees and ensure that you have included the names of relatives, friends, workers, and close persons that you would like to see at the latter.

You should also create an extension for uninvited guests.

Calculate how much it would cost to cater for a single person that would be present at the party. Do the arithmetic and term your answer as Guest Cost (GC). So,

Guest Cost = $ [(NAL + 0.15 X NAL) X CP]

Where,

NAL = Number of attendees or invitees on your list.

CP = Cost of catering per person or invitee.

The amount of money required to prepare a venue, rent chairs and tables (rental services), rent party space, make a birthday cake, entertain, and cater for other issues that are not directly linked with the guest is termed as the Non-Guest Cost.

Non-Guest Cost, NGC = $ [VC + RC + BcC + EC + OC] + 0.15 [VC + RC + BcC + EC + OC]

Where,

VC = Cost for the venue

RC = Cost for the rents (chairs, tables, plates, spoons, speakers, iPod, and the likes).

BcC = Cost for making or buying a birthday cake.

EC = Cost for entertainment, DJ, and related entertaining rants.

OC = Other Costs.

Take for example; Mrs Alex wants to calculate how much it would cost her to launch her birthday party. She expects 50 people at the party. And the amount of money needed to give food, drinks and takeaways to each person that would be present at the party is $15.

She needs $200 to rent a venue and a party space, the chairs and tables cost $50 on rent, the birthday cake costs $80, the costs to hire an entertainer is $200, and the costs for other issues is $30.

So, Mrs. Alex’s Birthday Party would cost; BPC = $ [GC + NGC]

The Guest Cost, GC = $ [(NAL + 0.15 X NAL) X CP] = [(50 + 0.15 X 50) X 15] = $862.50

The Non-Guest Cost, NGC = $ [VC + RC + BcC + EC + OC] + 0.15 [VC + RC + BcC + EC + OC] = [200 + 50+ 80+ 200 + 30] + 0.15 [200 + 50 + 80 + 200 + 30] = $644.00

Thus, the Birthday Party Cost = $ [862.50 + 644.00] = $1506.00

As a result, Mrs. Alex needs to budget $1506.00 for her coming 60th Birthday. You can also do the same to calculate the amount of money you need to launch your 60th Birthday.

How can you get the money to launch your birthday party?

You can get the money from your saving, children and close friends. And if you need much more, you can take out an online personal loan.

You are expected to pay back in installments over a period of time with the interest applied on the latter.

60th Birthday Party Ideas

You can have your 60th birthday as good as having the 18th birthday, despite you’re aged. Just implement the necessary ideas, and you will find yourself experiencing the moment, and you will get people around you enjoying it greatly.

  1. Outsource the Preparation: It is your 60th birthday. The entire family is happy for you. Outsource the works to your children. Enlist relatives that will go beyond eating at the party. Works like buying stuff from the market, booking a venue, and the likes can be done by your people.
  2. Send Invitations: A 60th birthday party can be akin to a bridal party. Send the invitation card to people. The invitation card may have photo series of yours since you were a baby up until now. On the invitation card, you should have your name, address and venue, date, time, email address and a phone number.
  3. Decoration: A nice birthday theme and decoration can make your birthday look beautiful. Choose the dressing code and decorative theme. Ensure you get the best outlook that fits.
  4. Prepare a Song: You should sing a personal song at the party…even if you are bad at singing. Everyone will be there to see how happy you are. Ensure you do make them feel who you really are.
  5. Prepare a Speech: It is good to give an inspiring and ever-powerful speech at such an event. The speech should last at least 15 minutes. In this speech, you should tell stories, educate people, embarrass your mistakes over time, and move the audience with your oratory ability.
  6. Gifts and Donation: If you have enough money, make a donation. Give money to an orphanage home. Announce the donation at the party. Mark your 60th birthday with charity. Contribute to the world’s goodness. Make your audience understand the need for love.
  7. Dance to the Music: Before the day, choose the playlist that you like the most. Give it to your DJ before the day. As the dancing moment comes, step up to the dancing space, lift your heart with gladness, shackle your memory, and find a reason to dance.
  8. Free Gifts: Inscribed a brand like “YOUR NAME @ 60” on clothes, bucket or any presentable material, and freely give them to everyone that comes for the party. Doing so will make the day unforgettable. Materials like handkerchiefs, towels, buckets, T-Shirts and the likes can be used.

Conclusion

With this article, you can plan a memorable 60th birthday party. It shows you how to calculate the amount of money the party demands, how to budget the money and what to do to make the party go awesome.


How to Plan a Cocktail Party on a Budget

How To Plan A Cocktail Party On A Budget?

How To Plan A Cocktail Party On A Budget

How to Plan a Cocktail Party on a Budget?

If you want to entertain friends or business associates, launching a cocktail party is good. It is the right option.

But to have an awesome cocktail party, you need to have planned for it. In this article, you will be shown how to plan a cocktail party on a budget.

If you adhere to this guide, your entire guest list will recognize the full worth of your effort to arrange the latter. And your social clout will rise.

What do you need to consider when planning a cocktail party?

You can’t believe how simple it is to organize a cocktail party until you start preparing for it. Here are the things you need to consider when planning for a cocktail party.

  1. The Party’s Date: On weekdays, people are often stressed out. And having a cocktail party on a working day is not the right option. Weekends are the best days to have a cocktail party…especially at night. It makes a perfect sense when the party lasts at least 2 hours
  2. Book a Venue: Cocktail parties are not birthday parties. They are formal. House parties are not an option. A hotel or a restaurant will do.
  3. Invitees: Who will you invite? Make a guest list. If the party is meant for having fun with your office mates, business associates or to reunite your college long-seen friends, get a list of their names. It is needed when making a budget for the party.
  4. Send Invitations: Send the listed invitees invitations. Notify them -latest a week before- of the party. Everybody likes his schedule. Ensure that you will notify them promptly.
  5. Plan a Budget: After you’ve sent invitations and the right people have been notified be ready to prepare a proper budget. A budget that is good. Good in the sense that it will help do two things. One, a budget shows how much you will spend. Two, it tracks your spending as the preparation for the party goes on.

How to Calculate the Money You Need to Launch a Cocktail Party

Money is important when it comes to budgeting. Without money, no party can be launched. You’re about to read everything you need to calculate the amount of money to host a cocktail party.

Let us say, the required amount needed to have an awesome cocktail party is CPC:

So, Cocktail Party Cost (CPC) = $ [GC+NGC]

Where the GC is the Guest Cost and the NGC is the Non-Guest Cost.

So, what do Guest Cost and Non-Guest Cost mean?

Guest cost is the sum of money needed to cater to the cocktail party’s guests and it is usually determined by the number of invitees expected at the latter.

Guest Cost = $ [(NAL + 0.15 X NAL) X CP]

Where,

NAL = Number of attendees or invitees on your list.

CP = Cost of catering per person or invitee.

While the non-guest cost is the money required to book the venue, rent chairs and tables (or party space), cater for entertainment, and pay for expenses that are not directly linked with the party’s attendees.

So,

NGC = $ [VC + RC + EC + OC] + 0.15 [VC + RC + EC + OC]

Where,

VC = Cost for the venue

RC = Cost for the rents.

EC = Cost for entertainment, DJ, and related entertaining rants.

OC = Other Costs.

Take for example the cost to cater for the food and drinks for each person at a cocktail party is $30 and 10 attendees are expected the party.

Then, the Guest Cost, GC = $ [(NAL + 0.15 X NAL) X CP] = $ [(10+0.15X 10) X 30] = $330.00

But, the costs to rent a venue and hire a catering service are $100 and $150 respectively. The money to get a DJ is $200, and other expenses will be covered with $50.

Then, the Non-Guest Cost, NGC = $ [VC + RC + EC + OC] + 0.15 [VC + RC + EC + OC]
NGC = $ [100+150+200+50] + 0.15[100+150+200+50] = $ 575.00

Therefore, the Cocktail Party Cost (CPC) = $ [GC+NGC] = $ [330.00 + 575.00] = $905.00

Using the steps illustrated in the example, you can calculate the amount of money you need to launch a cocktail party. Your cocktail party budget must include the budget for food, decorations, entertainment and other necessary issues.

How to Get the Money Budgeted for the Party

You can get the money from your savings. If you are broke, you can take out a payday loan online. Taking out such a loan is the best option when it comes to seeking money to meet personal needs.

Cocktail Party Ideas

Alcoholic wines are the labels for any cocktail party. Your guests can get drunk. Reserve plenty of ice for them. Mixers like orange juice, cola are also needed. Hire a bartender that will mix the wines for your guests.

If you want to look professional at hosting a cocktail party, ensure your guests with some coffee at the end of the party, because drunken guests will find it helpful.

Ensure you have everyone’s taxi company’s phone number. With such contacts, drunken guests can be handed over to a safe driver instead of driving under the effect of alcohol.

No child should be allowed at a cocktail party. Every attendee should not bring their children to the party.

Do not offer much food at a cocktail party. Nobody eats much at such a party. Just ensure wines are available. Even if food will be served, prepare a menu for seafood, finger foods etc.

You can also spice up the party by offering sweets.

This goes for every party event. Always prepare more than you expect.

Conclusion

This article is helpful as it shows you how to plan a cocktail party, how to calculate the money to be budgeted and cocktail ideas that are trendy and fun!


How To Consolidate Credit Card Debt With Bad Credit

How To Consolidate Credit Card Debt With Bad Credit?

How To Consolidate Credit Card Debt With Bad Credit

How to Consolidate A Credit Card Debt with Bad Credit?

At first, you wanted a credit, but it later turned into an overwhelming debt. It is inevitable and it can happen to anybody. Knowingly or unknowingly! As a result, you lie into your bed awake every night, because of the credit card debt.

Everybody take out debts. You’re not alone. There are ways out. They worked for others and as a result, they will work for you. Don’t worry. With this article, you’ll gain control over your finances, you’ll erase your debt, and you’ll find it easy to sleep again.
Let’s begin on how to consolidate a credit card debt with bad credit.

How To Pay Off A Debt Fast With A Low Income?

To pay off a credit card debt you’ve to consolidate the debt. And by taking out a personal loan online, you can do that. A single payment attracts a lower interest rate compared to that of the credit card debts.

Is It A Good Idea To Consolidate A Debt With A Personal Loan?

Taking out a personal loan may not be the best consolidating option for you because there are other options that need to be checked. Let’s us discuss those option with their pros and cons, so that you won’t find it complicated when making a decision on what method to use. At first, let’s get a list of the other options of credit card debts’ consolidation.

What are the other ways to consolidate a credit card debt apart from a personal loan?

There are other ways to consolidate a credit card loan apart from using a personal loan. The listed options are other credit card consolidation options:

  • Using a balance transfer credit consolidation.
  • Taking out a 401(k) loan to pay off a credit card debt.
  • A home equity loan or a line of credit can also be used to consolidate a cc loan.

Is there a way to consolidate a credit card debt without hurting your credit?

No!

There are many options to consolidate a credit card debt, but there is no best way to consolidate the latter. Some can just be the best option for your specific condition or be less risky than the other options. Ensure you understand the potential risks of an option before taking it.

Before we discuss each option, much must be discussed on your debt-to-income ratio, credit reports and scores. They are crucial because using the wrong option to consolidate a debt can hurt your credit.

How to Figure Out Your Debt-to-Income Ratio

To obtain your debt-to-income ratio, sum up your monthly loan payments and divide the sum by your gross monthly income. If it looks good, you’ll find it easy to get a loan.

How to check your credit reports and scores

Check your credit reports. Evaluate their accuracies. Ensure there is no error because an error on any of your credit reports can be disastrous. It can cost you a disqualification for the debt consolidation help you need. Ensure you dispute any error you find on any of credit reports.

Where can you get your credit reports from?

You can get your full credit history and the listed reporting agencies can provide you with your credit reports for free:

• TransUnion
• Equifax
• Experian

With a free credit report summary from any of the listed agencies, you’ll understand where your credit stands and that will help you choose the best consolidation plan for your situation.

What’s next? … Considering each credit consolidating option.

Methods of Credit Card Debts Consolidation

#1. Personal Debt Consolidation Loans

A personal loan is better than a credit card debt. Turning your credit card debt to a personal loan is a good option.

A personal loan interest rate is better. It charges small interest rates compared to that of credit cards which the latter varies from time to time.

Credit cards are revolving credits designed for short-term repayments whereas a personal loan can be paid back on the long term.

Consolidating your credit card debt into a personal loan is a nice decision as the latter has a constant interest rate with no variation.

With a personal loan, you’ll find it easy to sleep at night.

Just take a personal loan online, without leaving the comfort of your home and pay off your credit card loan once and for all.

Online lenders have credit requirements. Meet the requirements. Ensure you have an excellent credit score. With that, you will be qualified for a personal loan with a fast approval.

Before applying for a debt consolidation online, verify the lender. Check out your potential lender with the Better Business Bureau. Also contact the Attorney General’s office, the Department of Banking, or the Financial Regulation to know if the online lender is a registered business of your country.

Be cautious. Be alert to risk. Never trust an online loaner that pledges to grant a loan regardless of your credit. Stay away from an online lending platform that demands a huge upfront before granting a debt consolidation loan as well.

#2. Use a balance transfer credit card

This is another working method which is paying off your cc debt with a balance transfer. You’ll be rewarded by a credit card company when you transfer the balances from your credit card (with a high-interest rate) to a new credit card or a credit card with a lower interest rate. The reward is an introductory 0% interest rate on the transferred balances. This can also happen sometimes with your purchases.

This method is like a coin. It has its good and bad sides.

Pros:

With a balance transfer, you can avoid paying the huge interest attached to your old credit card.

Cons:

For every transfer, there is a fee. The fee is usually 3% of the balance transfer or $5. To worsen it all, some lenders restrict borrowers from using this method.

#3. 401(K) Loan

You can also erase your debt by using 401(K) loan. But it’s not the best option for an employer-sponsored account.

However, it may be an option, if and only if the other debt consolidation methods do not work for you.

A 401(K) loan doesn’t show up on a credit report when taken out. The pitfall comes if you can’t repay. And it comes with a bulky penalty plus taxes on the unpaid balance so that at the end, you’ll have to pay a higher debt.

A 401(K) loan is scheduled for 5 years. If you lose or quit your job, such loan has to be paid in 60 days.

Pros of using 401(K) Loan:

  • Comes with a lower interest rate.
  • No traditional application; it’s just as easy as borrowing money from yourself.
  • No credit check; The loan doesn’t show up on your credit history.

Cons of using 401(K) Loan:

  • Reduces retirement funds because taxes are not removed until you want to retire.
  • Comes with a bulky penalty plus taxes if you can’t repay.
  • Repay within 60 days if you lose your job; no mercy.

#4. Home Equity Loan or Line of Credit (HELOC)

Do you own a house? If yes, take out a home equity loan or a line of credit, and use it to pay off your credit card debt.

But here is the difference between a home equity loan and its line of credit. The home equity loan comes with a fixed interest rate whereas the line of credit offers you the chance to borrow the money you need again and again, but with a variable interest rate.
A HELOC comes with a draw period. And the draw period is the amount of time you can withdraw funds from a credit or take out an equity loan without repayment. But after the draw period, you’re responsible for the loan repayment. The draw period ranges from 5 to 20 years, but it is 10 years most of the times.

So if you take out the line of credit ensure you pay more than your minimum payment. Doing so will reduce the principal. After the draw period, you would have avoided the dent of the overall debt.

Pros:

  • Comes with a lower interest
  • No credit check

Cons:

  • Lose your house, if you fail to pay.
  • Long repayment terms; sometimes 10 years or more.

Conclusion

This article is helpful. It shows you how to erase your credit card debt fast with a low income, and it tells you how to do such thing by considering many options.


How To Pay Off Debt Fast With Low Income

How To Pay Off Debt Fast With Low Income?

How To Pay Off Debt Fast With Low Income

How To Pay Off Debt Fast With Low Income?

Have you taken out a personal or payday loans online and now you’ve been trying everything you could to pay off the debt with a low income? Perhaps you have a huge debt on your credit card and you’re scared to death because your monthly earning can’t afford it.

Now, what shall we do? You owe a loan but, you are earning a low income and as a result, you are finding it difficult to pay it off. You’re not alone. Though we’re far apart, I know how you feel. You lie in bed awake at night, because of them.

Your debt weighs you down. Don’t be confused. Don’t worry. You’re about to solve the problem. You’re about to know how to pay off debt with a low income. That’s exactly what this article is about.

Let’s get started.

How to Get Out Of A Debt on a Low Income

Loan repayments can take years if the borrower doesn’t know how to get out of it. Nonetheless, you can get out of your debt. Yes, it seems difficult but with this section, you’ll find it easy to do so. The latter provides you with tips to pay off your debts faster. As we proceed, each tip will be explained.

Don’t Take More Debts: Live within your limits and handle your money. Don’t spend beyond your means. Stop using your credit cards. Freeze them. Don’t make things harder. If you increase your debt, your financial life will squeeze and you’ll be hurt badly. Focus on the debt you owe and put all your strengths to pay down the latter. If you grow your debt, you’ll find it difficult to bear with it.

Create a Debt Hierarchy: On a list, arrange your debts in order based on their interest rates. Higher interest rate debts should be at the top. Pay the first on the list, then the second and so forth and so on.

This is an effective way to get out of debt in time. With a debt hierarchy plan, you’ll find it easy to control your finances and know what to do at a specific time in terms of a loan repayment.

Interest is crucial. It can increase your debt payment. It does it drastically. Permit me to give an instance.

A credit card debt of $15000 at an interest rate of 21%, is expected to get a $500 minimum repayment per month. The loan repayment will cover 8 years and 2 months (98 months) and that attracts an interest of $11350.56

That’s how bad an interest can be. So, it is wise to pay off the debt with the highest interest rate by using a debt consolidation method.

Reduce the Interests: You may ask: “Why should I lower my interest rate?” You should. It helps you get out of a debt faster. Just process a balance transfer. Move the balance from your credit card to another bank’s credit card account.

If you do that, the new bank will reduce the interest on your balance but before doing that, check a list of the credit card companies. Evaluate their lower interest rates for new customers. Choose the best out of them. It’s that easy. Also, ensure that you have read the company’s terms and conditions so that you don’t fall for a bait.

Break the Extravagant Habit: Live on a low budget. Don’t spend much as you know that you are on a debt. Only spend on worthy things. Minimize your spending and cut the fast food. Quit the parties as well.

Sell Your Old Properties: If you really want to get out of debt fast, sell goods you have, but you don’t need. It’s a quick way to raise a fund which you can use to pay down your debt.

Just check your house. Look into your wardrobe. Gush out the old-fashioned trends of clothes you no more wear. Gather the old electronics you no more use. Check your garage. Get car parts. Gather all kinds of stuff that litter your house without any specific reason. Sell them off and raise money. Use the fund to pay off your debt.

And you know something? The Internet is helpful. There are plenty of online marketers ready to help you sell your old properties. Contact one of them and make a deal. Sell your stuff. Have your money and pay off your debt. It’s that simple.

Find a Part-time Job: Expand your source of income. It will help you raise money. By doing so, you’ll find it easy to pay off your debt. Take up part-time jobs on holidays. Do seasonal jobs. Earn more money. Be dynamic and flexible. Get some extra cash, accumulate it and extinguish your duties.

There are seasonal greenhouse works. There are farm works, emergency plumbings, online freelancing and many other temporary works. Get one. It’s within your reach.

Perhaps you think all these things are stressful and you want to back down. Read the next section and understand the reasons why you need to get out of the debt asap.

Why do you need to get out of debt?

Do you want to become debt free? Don’t back down yet. Being in debt can be terrible. Use all the tips you were provided earlier to get out of a debt as fast as you can. Don’t be discouraged because it takes a lot of work. Yes, it takes effort. Give it what it takes.

Open your eyes. Close them. Look inside you. Imagine how your life will be if you were debt free. Get a paper. Write down the reasons why you need to get out of debt fast. However, the common reasons are mentioned as we proceed.

Let’s begin.

  1. A debt can stop you from saving money. Get out of it and you’ll be free to plan your financial life.
  2. Being on debt, prevents you from spending on whatever you wish. Make a purchase you don’t really need and you’ll feel guilty because you just increased your debt. But if you were debt free, you could freely spend on things you enjoy without any blame.
  3. Debt can wake you up at night. It can make you lie awake all night as it can lead to extra stress. Stress can damage your health in a way that it could lead to a heart attack. It can cause migraines so get out of it and save your life.
  4. A debt can take your properties away from you. Your mortgage lender owns your house. Your auto loaner owns your vehicle. Your tuition loaner owns your career. Until you pay off your debts, you cannot be left in peace.
  5. Most importantly, a debt can squeeze your credit score. And it’s the major reason why you need to get out of it. Much is discussed on this issue in the next section of this article.

How A Debt Affects Your Credit Scores

Debts can eat up your financial life as they can affect your spending power. Deaden your financial clout and you could find it hard to even borrow money because your credit score will be affected negatively. The greater your debt, the lower your credit score.

The credit score is important. It shows how close or far you are to balance your debt. Pay up your debt and you’ll get a better credit score. Don’t pay up your debt, and you’ll get a bad credit score. Let your credit score rise. Lower your credit utilization and don’t let your credit score suffer. Meet your monthly debt payments and void losing credit score points. Don’t let your debt be delinquent. It can cause a lasting damage on your credit score which can take several years for it to repair. It is preferable to consolidate your debt or take up credit counselling as they cannot affect your credit score severely. Just ensure you are debt free.

You know. The thing has two ways. Firstly, your credit card can be on a revolving debt. In that case you’re permitted to borrow as much as you want until you reach your credit limit. Keep in mind that with this situation, your interest rates also grow bigger. Secondly, you have taken out an installment loan. Here, the interest rate is fixed and the monthly repayment is also constant.

In any case, you must meet your monthly repayments. You have not to miss a single one so that you will not fail to repay your debt. If you do, it’s a terrible mistake and it can damage your report because your lender will send a report to the credit bureaus. The harm remains on your credit history for several years.

Stop enlarging your debt. Know the amount of money you owe, with its interest rates. Make sure to follow a good budget plan that will get you out of the latter as fast as possible. Cut your expenses and pay off your debts. Consolidate your credit cards with a balance transfer and take up temporary jobs to raise the funds to pay down your debt. Just be debt free.

Conclusion

This article is helpful as it shows you why you need to get out of your debt, how to get out of the latter, and how your debts affect your credit score. Even with a low-income, you can pay off your debt fast by keeping in mind all the aforementioned criteria.


How To Plan A 21st Birthday Party On A Budget

How To Plan A 21st Birthday Party On A Budget?

How To Plan A 21st Birthday Party On A Budget

How to Plan a 21st Birthday Party on a Budget?

Your birthday is at the door. It’s about to knock. You’re now 21. It should be celebrated. You’re now an adult. It is a leap that must be marked with a memorable party.

Nothing should stop you from launching your 21st birthday party…not even a fear or the lack of money. With a proper budget, you can have a nice party. And this article shows you how to plan your birthday party on a budget.

How much money do you need to budget for the birthday party?

The required amount to be budgeted for your birthday party is BPC:
Birthday Party Cost (BPC) = $ [GC + NGC]
Where, GC is the Guest Cost, and NGC is the Non-Guest Cost.

Let’s discuss the guest cost and non-guest cost.
Guest cost is the amount of money required to cater for the guests at the birthday party. It shows how much you need to fund everything to satisfy your friends, siblings, and other attendees at the event. The GC depends on the number of guests you will invite.

On a budget, a birthday party that attracts 60 attendees should be more expensive than the one that attracts 16 attendees. Get the number of guys you want at the party. Make a list of names of relatives, friends, and peers that you want them to be present at the event.

After getting the attending number, determine the party’s worth. Decide the types of drinks, foods, presents, and take away snacks. Calculate how much it costs to get the package for each person. Then multiply the number of people on your list with the calculated cost.

To avoid disappointment, add at least 15% of the number of invitees on your list. You know…your invited friend may bring his/her fiance or an uninvited guest.
Do the arithmetic. And term your answer as Guest Cost (GC). So,

Guest Cost = $ [(NAL + 0.15 X NAL) X CP]
Where,
NAL = Number of attendees or invitees on your list.
CP = Cost of catering per person or invitee.

The Non-Guest Cost is the amount of money required to cater for the venue, rental (like chairs and tables) or party space, birthday cake, games, entertainment, invitation cards, and other issues that do not have any direct receiving link with your guests.
So,

NGC = $ [VC + RC + BcC + GC + EC + OC] + 0.15 [VC + RC + BcC + GC + EC + OC]
Where,
VC = Cost of the venue
RC = Cost of the rents (chairs, tables, plates, spoons, speakers, iPod, and the likes).
BcC = Cost of making or buying a birthday cake.
GC = Cost of buying games like chess, scrabble, videos games, and the likes.
EC = Cost of entertainment, DJ, and related entertaining rants.
OC = Other Costs.

Take for example; David wants to know how much he needs to budget for his 21st birthday party. The cost to satisfy a single person at his birthday will be $20. And he expects 30 attendees at the party. The venue costs $100, the rentals cost $120, the birthday cake costs $65, the costs to hire a DJ is $150, and other things cost $10.

So, David’s Birthday Party Cost = $ [GC+NGC]
The Guest Cost, GC = $ [(NAL + 0.15 X NAL) X CP] = [30 + 0.15 X 30] X 20] = $90.00
The Non-Guest Cost, NGC = $ [VC + RC + BcC + GC + EC + OC] + 0.15 [VC + RC + BcC + GC + EC + OC] = [100 + 120 + 65 + 0 + 150 + 10] + 0.15 [100 + 120 + 65 + 0 + 150 + 10] = $510
Thus, David’s Birthday Party Cost = $ [510 + 90] = $600.00

You can’t know how easy budgeting is, until you start. It is very simple. Study the steps illustrated in this section. You can use those ones to arrive at the amount of money your birthday requires.

How Do You Get the Money to Fund the Party?

You can get it from your pocket. If you are broke, you can get it from your relatives, friends, or parents. If they can’t offer you the money, you have to take out a payday loan online as it one of the best type of loans to seek to fund a birthday party.

How to Reduce the Budget?

Perhaps you want a lower budget. Then you should have your birthday party at home. Venues are expensive. You can have a house party. But, you may not be allowed to make the noise that you would like and you will have to be responsible for such service.

And if your mom is a good cook, there is no need for a catering service. You just need to money to buy raw food, drinks and the birthday cake. Rent a good speaker, instead of a DJ. Let your friends do the DJ’s job.

Cleaning up after party can be difficult. But you and your siblings should do that. If you would be having your birthday party at home, don’t you think you have to spice up the party with some ideas?

21st Birthday Party Ideas at Home

Nobody loves being bored. You can make your guys have much fun, even if you won’t take them out. Right from your home, you can spice up the party:

  • Playing Board Games: You can play board games with your friends. Games like chess, monopoly, and scrabble are good for house birthday party.
  • Playing Video Games: Playing video games is one of the best ways to catch fun when having a birthday party at home. You can play soccer games, GTA, Super Smash, or Super Mario.
  • Swimming: If there is a swimming pool at the house, you can launch a swimming race. It is also a way of making the house birthday party awesome.
  • Taking Pictures and Videos: If you want to run a low budget party, do not hire a photographer. Everyone have phones and they can take as many pictures as they want. You can make videos using your smartphone. Doing this will also make it lively.
  • Telling Stories: You can make your birthday memorable by asking each of your invitees to tell a story about you in just a few minutes.

Conclusion

This article shows you how to plan for your 21st birthday, how to calculate and budget the money needed for the party, where to get the money, and how to spice up the party with 21st birthday party ideas.

Happy birthday to you in advance, and may your day be filled with happiness.


How To Plan A Sweet 16 Party On A Budget

How To Plan A Sweet 16 Party On A Budget?

How To Plan A Sweet 16 Party On A Budget

How To Plan A Sweet 16 Party On A Budget?

So, your youngster is now 16. You’ve done a nice job. I’m happy for you. But this can be his last birthday before he leaves for college. So, these are his last days at home. This birthday must be remarkable because any other birthday after 16 could be done at the campus, and you won’t be there.

So, take your time and make the latter unforgettable for your child.

And for you to plan a sweet 16 Birthday Party on a budget can be challenging. But this article is helpful. It makes the planning processes clear, easy, and exciting.

How to Determine Your Budget for the Party

Having a party without a budget can bruise your bank account. Ensure you know how much the party requires. Cut out the budget by implementing cheap, sweet ideas.

Plan the budget with your child. Don’t do it alone. Give him the power and free will to choose. And you should discuss with the latter how much you can afford from what he has chosen. Enforce boundaries on everything that the birthday party needs as your budget depends on the guest list. It shows the number of guests that are likely to be present. As a result, you should compile a guest list if you haven’t. And remember, the more the guests, the more the party will cost.

At first, set an imaginary number of people you can cater for, and let your kid fill the latter with friends. Doing so will save up money.

How Much Money Costs A Sweet 16 Party?

If you can do some arithmetic, let the required amount of money to be budgeted for a Sweet 16 party be SPC:

Sweet 16 Party Cost (SPC) = $ [GC + NGC]

Where, GC is the Guest Cost, and NGC is the Non-Guest Cost.

The money to be spent on getting foods, snacks, and drinks for the guest is called the guest cost and the just mentioned can be calculated by using the formula below.

Guest Cost, GC = $ [(NAL + 0.15 X NAL) X CP]

Where,

NAL = Number of attendees or invitees on your list.

CP =    Cost of catering per person or invitee.

While the non-guest cost is the amount of money that will cater for other expenses apart from the guest cost. It can be obtained by using the formula below.

 

Non-Guest Cost: NGC = $ [VC + RC + BcC + GC + EC + OC] + 0.15 [VC + RC + BcC + GC + EC + OC]

Where,

VC = Cost of the venue

RC = Cost of the rents (chairs, tables, plates, spoons, speakers, iPod, and the likes).

BcC = Cost of making or buying a birthday cake.

GC = Cost of buying games like chess, scrabble, videos games, and the likes.

EC = Cost of entertainment, DJ, and related entertaining rants.

OC = Other Costs.

To give you an idea of how to use those formulas, permit me to cite an example. If the cost to get food, snacks, and drinks for a single person invited to his sweet 16’s party is $20 and you have 30 attendees on the guest list, you will have.

The Guest Cost, GC = $ [(NAL + 0.15 X NAL) X CP] = [30 + 0.15 X 30] X 20] = $90.00

And let us say the venue costs $100, the rentals cost $120, the birthday cake costs $65, the costs to hire a DJ is $150, and other things cost $10.

Then, the Non-Guest Cost, NGC = $ [VC + RC + BcC + GC + EC + OC] + 0.15 [VC + RC + BcC + GC + EC + OC] = [100 + 120 + 65 + 0 + 150 + 10] + 0.15 [100 + 120 + 65 + 0 + 150 + 10] = $510

Thus, the Sweet 16 Party Cost = $ [510 + 90] = $600.00

You can reduce the budget by hosting a house party instead of renting a restaurant or a party space.

Where can you get the money for the party even if you don’t have?

You know how much money you want to spend and how you will spend it, but how can you get the money? Where can you get the money from? If you can’t get the money from your savings, you don’t have to disappoint your child.

You can take out a personal loan online. Without leaving the comfort of your bedroom, you can get a loan approved for the party.

Ideas for Sweet 16 Birthday Party Activities on a Budget

You can make your child and his peers experience a memorable party with the ideas highlighted as we proceed.

  1. Set a Perfect Time and Location for the Party:  Choosing a time for the party can be daunting if your child’s date falls on a working day. So, the perfect time to have a birthday party on a working day is the PM Hours. Ensure your child notifies all his friends of the party’s time before the day.

As you prepare for the birthday, get a location and book the venue. Perhaps you want to run the party on a low budget and in that case you can consider using your home.

  1. Book a Catering Service: Perhaps you want to have a very large sweet 16 party; you should book a catering service. And if you can cook for the expected guests, then cook. Prepare the food ahead of the party’s time.
  2. Write the Party’s Timeline: Just like an order of the program.  Make up a timeline for the party. It should show how the party will go. From prayers to music, to movies, to serving foods and drinks, to cutting a cake, and most importantly to the party’s end.
  3. Playing Games: Games like chess, monopoly, and scrabble can be used to spice up a sweet 16 party. Teenagers like playing video games these days. You can create a time space for them to play video soccer games, GTA, Road Rash, Super Mario, or any other interesting game.
  4. Make them tell stories: Everyone has a powerful story. Your child’s birthday can be a place to tell those stories. That is what makes the day unforgettable.
  5. Music and Dancing Performance: The right person to choose the music playlist is your child. He knows what his peers dance to.

Conclusion

We’re done. You are free. Proceed with the preparation. Make the party awesome, memorable, and remarkable. It may be your child last birthday at home. He will leave for college soon, remember!


How To Get An Apartment With Bad Credit

How To Get An Apartment With Bad Credit?

How To Get An Apartment With Bad Credit

How To Get An Apartment With Bad Credit?

When it comes to looking for an apartment for rent with your bad credit, you might feel a little stressed out for bad credit can affect the rental process in a major way. In fact, you may even be denied the rental of a specific apartment due to your poor credit score – even with perfect rental history and reasonable salary. If you’re dealing with bad credit and are afraid that the latter will prevent you from obtaining the apartment you desire, then keep reading – you have options! If you’re in need of a little extra money in order to sign your lease, an installment loan online for bad credit may be a good option for you.

 

7 Tips for Renting an Apartment with a Bad Credit

So, you’re attempting to rent your ideal apartment with a low credit score? Here are 7 top tips to help you succeed:

 

1. A Recommendation Letter

Your first step in obtaining the apartment you want is presenting your potential landlord with recommendation letters. Such a letter can come from several sources, including previous landlords, roommates or even your bank establishment. The objective here is to demonstrate that you are responsible and fully capable of paying your bills on time. Furthermore, your employer can write a letter informing your potential landlord of your stable revenue.

As a first step, this helps demonstrate to your potential landlord that you’re serious about renting responsibly. More so, not only are you easing your landlord’s mind, arriving prepared for your apartment appointment will increase your chances of creating a responsible impression.

 

2. Don’t Lie about your Credit Score

It’s important to be completely honest with your potential landlord. There are many reasons as to why you may have a bad credit – and you should take the time to explain the latter. Perhaps you made a poor financial decision previously, your credit utilization may appear very high or there might even be a mistake amongst your report! A landlord’s rules and requirements are not necessarily set in stone, as long as you can explain your situation and provide the supporting proof. Keep in mind that generally, this tactic works best when dealing one-on-one with an individual landlord rather than trying to rent with a large management company.

 

3. Paying Upfront can go a Long Way!

As you probably already know, having a low credit score presents potential risk to any provider – landlords included. In the case of renting an apartment with a bad credit rating, it is possible that you be requested to pay a security deposit.

You can also consider signing a month-to-month agreement or a three-to-six month lease. If you have a poor credit score, your potential may feel comfortable knowing that they “have an easy way out” in the case that you don’t pay as agreed. Requesting a 12-month lease can be done later on, once a relationship has been established with your landlord.

In certain cases, it may be possible that you be requested to pay a higher per-month fee. In all such scenarios though, paying a little more can go a long way – let’s face it, you just may be signing your dream lease!

 

4. Rely on a Co-Signer

You can always can always call on a little back up if all else fails: a co-signer. The important thing here is finding someone who has a good credit score and who is, of course, willing to take responsibility in the case you struggle paying for rent. By having a co-signer, your potential landlord may feel there is less risk in signing a lease with you.

 

5. Discuss Automatic Payments

Insider tip: Landlords adore receiving rent payments automatically. You can offer your potential landlord to set-up automatic payments for the first of the month when it comes to rent. In other words, your landlord’s bank automatically deducts a specific amount from your bank every month. This can usually be completed online, however, you can equally offer post-dated checks for the duration of your lease.

If you’re choosing this route, keep in mind that demonstrating a responsible payment track record is very important. If you’ve had many difficulties paying on time in the past, you landlord may remain reluctant in signing a lease with you. However, if you come prepared with proof of a steady income, you’re definitely increasing your chances.

 

6. Have a Savings Account

Now, at first glance, this may seem unrelated, however having both a checkings and a savings account is actually very important. When it comes to dealing with a low credit score, having a big salary doesn’t always cut it. Being capable of proving to your potential landlord that you have money set aside is a huge plus and can really set your landlord at ease, seeing you as less of a risk. If you don’t already have a savings account, it’s a good idea to start building one as soon as possible – and to keep building it long term!

 

7. Search for an Apartment without a Credit Check

One of the easiest and simplest ways to sign a lease with a landlord when facing a poor credit score is to search for an apartment landlord that doesn’t perform a credit check. If this is what you’re looking for, aim for apartments owned by individual renters. Such landlords have less of a tendency of performing credit verifications and usually more willing to take a risk in order to fill their apartment complex. On the other hand, large management companies are generally harder to deal with and performing a credit verification is much more standard.


How To Get A Car Loan With Bad Credit

How To Get A Car Loan With Bad Credit?

How To Get A Car Loan With Bad Credit

How To Get A Car Loan With Bad Credit

Obtaining a car loan with bad credit is nothing short of difficult – but it is totally possible. Remember that you have to go into the process with the right facts in mind: You’re going to be paying higher interest than someone with a good credit rating. However, don’t let that come as a discouragement just yet – bad credit installment loans online with guaranteed approval can possibly come to the rescue!

 

Buying a Car with Bad Credit

It’s time to look at the detailed procedure of obtaining easy car loan approval with bad credit in order to finance your next vehicle!

 

1. Verify your credit score

So, you’re thinking about purchasing a new vehicle? Before anything else, check your credit score! Even if you’re still months away from physically purchasing the car, you definitely want to start cleaning up your report before requesting a loan. By doing so, you’re certainly going to improve your chances of being accepted for said loan under good terms. In order to “clean up” your credit report, you need to pay off late accounts, discussing credit errors and increasing the positive information found within your report.

 

2. Improve your bad score

Another reason why verifying your credit score right from the start is in order to visualize exactly what needs improving. It’s actually possible to find credit errors dispersed throughout your credit account and it’s important that you  dispute these. In general, you should give yourself a 30-day grace period in order to have these mistakes looked at and fixed if necessary.

On the other hand, if your credit rating isn’t that bad, then cleaning up is in fact still a good idea. As we mentioned in an earlier article, a good credit rating is market at 700 or higher and by cleaning up your credit account, you just may get pushed over that line!

3. Know Your Budget

Like with everything, being well aware of your actual financial budget is a must. Knowing exactly how much you can spend per month on a vehicle will give you a better idea of what car models you can start looking at and which ones you should stay away from. You can also go deeper into your research by looking at average auto loan interest rates and the car’s cost – this will provide you with a better basis for negotiation.

As you can already start to see, purchasing a car and obtaining a car loan are not out of reach, even if you are dealing with bad credit. Just make sure your using your time wisely!

 

4. Think about having a co-signer

One of the simplest ways to be approved for a car loan with bad credit is through the use of a co-signer with good credit. In the eyes of a lender, a co-signer decreases the risk of lending to someone with bad credit. Although your co-signer is definitely assuming responsibility by signing for a car loan with you, you may actually be capable of obtaining a better interest rate!

 

5. Get  pre-approved car loan

Sometimes, it becomes easier and more realistic to car shop with a pre-approved loan. When discussing with your bank or credit company, don’t forget to question the possibility of taking the pre-approved route. However, this isn’t always possible and if this is your case, you can always discuss different options with your car salesmen. They may have further information on who, or where, you can contact a lender who works with buyers dealing with bad credit.

 

6. Take the time to negotiate!

Let’s face it – you’re not alone in this world with a bad credit score and this is a good thing for you! In other words, you don’t always have to settle for the first “deal” that comes your way. Saving money is possible if you take the time to negotiate a little, especially when it comes to interest rate, annual percentage rate, loan length, repayment penalty and even other additional fes.

 

7. Put money aside for your down payment

A down payment can help in many ways – especially if you can afford one. First of all, not only does this cash go directly towards decreasing the total amount owed on your vehicle, this money is equally interest free. Furthermore, your lender will definitely take your down payment into consideration when weighing the risks of providing you with a loan – even if you have bad credit.

Moreover, the down payment will reduce the size of your monthly payments and can even be the deciding factor in obtaining the car loan that your looking for!

 

8. Say “NO” to the extras!

Alright, if you’re dealing with bad credit, you might have to make a few sacrifices. When applying for a loan, you may not be approved for the highest possible amount and therefore, certain features such as leather seats, a sunroof and air conditioning may have to be crossed off your list. Keep in mind that because of your poor credit, you’re already facing a high interest rate so make sure you know how to say “No” when need be.

In the end, you can buy a car with bad credit if you follow the above steps to the T. Keep in mind that looking at all your options, fueling up on important research and refusing extra add-ons can really save you good money when it comes to purchasing your vehicle. Whether you’re dealing with bad credit or not, budgeting your finances properly and being fully aware of what you can genuinely spend is the first step in purchasing your new ride intelligently.