An older used car with high mileage really doesnt make sense especially if your credit is less than perfect.
Used car question
Here at Auto Credit Express, we recently fielded a question from a borrower with credit problems who obviously had a specific car in mind: I want to buy a 2005 Subaru WRX STI with 108k miles. Is this a possibility without putting 5k down?
But aside from the fact that this person didnt mention what the asking price of the car was or where he or she found it – which is also important – nearly everything else about it leads us to answer that it really doesnt matter how much you have to put down, if you have bad credit there is very little chance you could get a loan for this vehicle.
Used cars and problem credit
The fact that this Subaru is a used car isnt the problem. One of the keys to successfully completing a subprime car loan is picking the right kind of vehicle to finance. Since, for many borrowers, this means choosing an affordable used car, high-risk lenders have no problem simply because its used.
But the operative phrases here are right kind and affordable. In most cases, the right kind means choosing a subcompact, compact or midsize car.
Since we dont know the price, we dont know if this Subaru is affordable (although well look at that later), so lets look at whether or not its the right kind of used car.
Subprime used car lending requirements
So, here are the problems this consumer is facing:
- Although some subprime lenders will finance a 2005 used car, most limit vehicle age to 7 years old or newer because they want the vehicles they finance to be reliable. As a result, this consumer is severely limiting his or her chances of a loan approval.
- Nearly all high-risk lenders limit a vehicles mileage to 100,000 – again, due to reliability issues. This WRX STI is over that limit.
- Because older vehicles are less reliable, lenders reduce the loan term and (generally) raise the interest rate as a vehicle ages. So, even if the price is right, the monthly payment on an older vehicle can be more expensive than on a comparable newer one – which means a 2005 vehicle, even if its acceptable to the lender, might not come with an affordable payment.
- Is this vehicle being sold by a dealership or is it being offered by a private seller? Although we dont know this either, subprime lenders typically lend money indirectly through dealerships and dont finance vehicles sold by individuals.
- Finally, choosing a vehicle before getting approved is not the way its done if the buyer has credit issues. Instead of picking out a car first, the lender looks at the buyers income and expenses and, if the application is approved, sends a payment call to the dealer that lists the maximum payment the buyer can afford. The dealer then matches the buyer up with vehicles in inventory that qualify (in terms of price, mileage and model year).
The Bottom Line
It is very difficult getting approved for a car loan on a 10-year-old vehicle with more than 100,000 miles, especially if the buyer has bad credit. Although an older car with higher miles might seem affordable, subprime lenders perceive these vehicles as high risks for breaking down (a real issue, especially for a high-performance car like a WRX STI).
One more tip: Auto Credit Express specializes in helping borrowers with bruised credit find those dealers that can give them their best chances for car loan approvals.
So, if youre ready to reestablish your credit, you can begin now by filling out our online car loan application.
Contrary to popular belief, it doesnt take years to build credit. If you know how credit scores work, you can achieve a good credit score in less time than you may think. With that in mind, heres what you need to know in order to build your credit as quickly as possible.
How credit scores work
Before you can learn how to build credit fast, you need to understand where your score comes from. There are several different credit scoring models, but the most popular is the FICO score, used by more than 90% of lenders.
Your FICO score is made up of five categories of information, with a weight assigned to each:
- Payment history (35% of FICO score) — The single most important factor in your credit score is whether you pay your bills on time. Late payments, delinquent accounts, collections, and judgments can drag down this part of your score, and the longer you go without any of this derogatory information, the more of a positive impact this category will have.
- Amounts owed (30%) — This doesnt refer to the actual dollar amounts you owe, as much as it refers to how much you owe relative to your credit limits and original loan balances. Keeping your credit card usage low and paying down loan accounts will boost this part of your score.
- Length of credit history (15%) — This category uses certain information that tells creditors how long youve established credit. It takes into account when you opened your first account (even if its been closed), the average age of all accounts, and the age of your individual accounts, among other time-related information.
- Types of credit in use (10%) — This looks at whether you have a healthy mix of credit accounts, such as credit cards, store accounts, mortgages, student loans, auto loans, etc. The theory behind this is that it shows how responsible you can be with any type of credit.
- New credit (10%) — As the name implies, this factors in how many of your accounts were recently opened. If you open several new accounts in a short time period, it could hurt your score. Also included in this category are your recent credit inquiries — the number of times youve applied for credit. Only inquiries from the past year count, so it doesnt take long for this category to become all clear.
Good credit doesnt have to take long
As you can see, most of these categories can be positively influenced in a short period of time. Obviously, the length of credit history category takes years to capitalize on, and by definition the new credit category wont be stellar when youre just getting started. However, these categories represent just one-fourth of the total.
To establish an excellent payment history takes years, but you can create a good history fairly quickly. The actual FICO formula is a well-guarded secret, but you might be surprised how much of an impact a few months of on-time payments and no adverse information can have.
The Amounts owed category is perhaps the easiest way to have a quick impact on your credit score. Once you open a credit account, simply keeping your balance low as a percentage of your available credit is all you need to do. Experts generally say that usage of 30% or less is good, and lower is even better. People with the highest credit scores tend to use a single-digit percentage of their credit limits, so if you get a credit card with a $1,000 limit, carrying a balance of less than $100 could be a highly effective way to boost your credit.
Types of credit in use is a tough category to crack when youre just starting out. After all, you probably wont have a mortgage, auto loan, and several credit cards at first. Still, something is better than nothing, and if you can establish just a couple of account types (say, a credit card and department store account), you could see your score rise rather quickly.
So, while an excellent credit score takes years of responsible habits, it is possible to build a good credit score in a short period of time.
The best plan of attack
The best way to build (or rebuild) credit is to establish an account and use it responsibly. For those just establishing credit, this usually means getting a credit card, and there are several cards out there designed specifically for first-timers.
A secured credit card can also be an excellent way to get started. In fact, this is how I established my own credit years ago. Since youre required to put down a security deposit equal to your credit limit, its not difficult to get approved for these, even with a lack of credit history. They report to the credit bureaus just like a standard credit card, and tend to have more favorable terms than other starter credit cards.
Once you open an account, and use it with the credit scoring formula in mind, you might be surprised how much credit you could build in a short amount of time, which can make your large financial purchases like a house and car both easier and cheaper.
August 2nd, 2015 in
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ATHENS/BRUSSELS An International Monetary Fund study published on Tuesday showed that Greece needs far more debt relief than European governments have been willing to contemplate so far, as fractious parties in Athens prepared to vote on a sweeping austerity package demanded by their lenders.
The IMFs stark warning on Greeces debt came as Prime Minister Alexis Tsipras struggled to persuade deeply unhappy leftist lawmakers to vote for a package of austerity measures and liberal economic reforms to secure a new bailout.
In an interview with state television, he said that although he did not believe in the deal, there was no alternative but to accept it to avoid economic chaos.
The IMF study, first reported by Reuters, said European countries would have to give Greece a 30-year grace period on servicing all its European debt, including new loans, and a dramatic maturity extension. Or else they must make annual transfers to the Greek budget or accept deep upfront haircuts on existing loans.
The Debt Sustainability Analysis is likely to sharpen fierce debate in Germany about whether to lend Greece more money. The debt analysis also raised questions over future IMF involvement in the bailout and will be seen by many in Greece as a vindication of the governments plea for sweeping debt relief. A Greek newspaper called the report, which was initially leaked, a slap in the face for Berlin.
Late on Tuesday, a senior IMF official, who spoke on condition of anonymity, said, We have made it clear … we need a concrete and ambitious solution to the debt problem.
I dont think this is a gimmick or kicking the can down the road … If you were to give them 30 years grace you are allowing them in the meantime to bring down debt by … getting some growth back.
German Finance Minister Wolfgang Schaeuble said in Brussels on Tuesday that some members of the Berlin government think it would make more sense for Athens to leave the euro zone temporarily rather than take another bailout.
The Greek Finance Ministry said it had submitted the legislation required by a deal Tsipras reached with euro zone partners on Monday to parliament for a vote on Wednesday.
Assuming Athens fulfils its end of the bargain this week by enacting a swathe of painful measures, the German parliament is due to meet in a special session on Friday to debate whether to authorize the government to open new loan negotiations.
The dramatic deterioration in debt sustainability points to the need for debt relief on a scale that would need to go well beyond what has been under consideration to date – and what has been proposed by the ESM, the IMF said, referring to the European Stability Mechanism bailout fund.
An EU source said euro zone finance ministers and leaders had been aware of the IMF figures when they agreed on Monday on a roadmap to a third bailout.
A ONE-WAY STREET
In the interview on Greek state television, Tsipras defended the deal he signed up to, saying it was better than the alternative of being forced out of the euro zone.
He said banks, closed for the past two weeks to prevent a flood of withdrawals that would collapse the banking system, would reopen once the deal had been fully ratified by parliaments in Greece and other European countries.
Tsipras could not conceal the bitterness left by last weekends acrimonious euro zone summit.
The hard truth is this one-way street for Greece was imposed on us, he said.
Lawmakers from his ruling Syriza party and their allies argued behind closed doors about whether to back sweeping reforms the government must ram through parliament as it races to meet the terms of the bailout deal.
A poll in To Vima newspaper showed that more than 70 percent of Greeks believed there was no alternative to a deal and that parliament should pass it.
Having staved off a financial meltdown, Tsipras has until Wednesday night to pass measures tougher than those rejected in a referendum days ago. With as many as 30-40 hardliners in his own ranks expected to mutiny, Tsipras will likely need the support of pro-European opposition parties to muster the 151 votes he needs to pass the law in parliament.
Speculation has grown that the fractures caused by the bailout will be too much for the government to bear and Tsipras will be forced to step down. But he appeared to rule out an early exit or forming a national unity government with opposition parties.
The worst thing a captain could do while he is steering a ship during a storm, as difficult as it is, would be to abandon the helm, he said.
He gave no explicit indications of plans for a cabinet reshuffle, saying only that his priority was restoring stability and that party matters could wait.
Syriza and its right-wing nationalist junior coalition ally held separate meetings to prepare for parliament sittings to pass the laws, which include plans for tax hikes, pension reforms and tighter supervision of the governments finances.
It was a spectacular turnaround for a Syriza party voted into power in January promising to end years of cuts and recession in a country where one in four people is unemployed.
In Germany, the biggest contributor to euro zone bailouts, doubts lingered about whether Tsipras would stick to his word.
There are many people, including in the federal government, who are quite convinced that in the interests of Greece and the Greek people that what we wrote down would have been much the better solution, Schaeuble said when asked about a German proposal on a time-out for Greece from the euro zone.
The Syriza partys junior coalition partner promised support, with the ambiguous caveat that it would only vote for bailout measures agreed before last weekends summit in Brussels, which were less stringent. Opponents of the new measures plan strikes and protests in the coming days.
Ive taken the decision, this is a tough third bailout and I will not vote for it, Despoina Charalambidou, a deputy parliament speaker and Syriza lawmaker, told Vima FM radio.
Why should I resign? I was elected on the basis of a certain manifesto, the Syriza program, which support these positions. Im not giving up my seat.
Another obstacle could be parliamentary speaker Zoe Constantopoulou, who is key to the logistics of the vote and has been one of the creditors most ferocious critics. Tsipras could try to force her out through a no-confidence vote but that would eat up precious time and political capital for the reform bills.
Austrias Chancellor Werner Faymann said a Grexit could not be ruled out despite the agreement, echoing findings by a Reuters poll of 60 economists, some of whom saw at least a 50 percent chance of Greece leaving the currency.
The poll, which was carried out in the 24 hours after news of the agreement broke, also pointed to scepticism about whether the deal was good for both Greece and Europe, and whether Greece had enough assets to sell to meet the terms of the deal.
Euro zone finance officials must find a way to give Greece bridge financing to keep the country afloat while the third bailout package is negotiated, especially to pay back loans owed to the European Central Bank that are due next week.
There has been mounting anger at the government and creditors as many Greeks decry what they see as the humiliation of their country being treated like a European colony.
The pain for Greece continued, with strict controls on withdrawals from cash machines and businesses being squeezed dry. A Greek trade federation called on the government to loosen capital controls to allow companies to make payments owed to overseas vendors, and pharmacists warned they were having difficulties getting supplies.
(Reporting by Renee Maltezou, Angeliki Koutantou, George Georgiopoulos, Lefteris Karagiannopoulos, Dina Kyriakidou, Costas Pitas in ATHENS; Alastair Macdonald, Francesco Guarascio and Robert-Jan Bartunek in BRUSSELS; William James in LONDON; Angelika Gruber in VIENNA; Sumanta Dey; writing by Matthias Williams; Editing by Sonya Hepinstall, Anna Willard, Paul Taylor, David Chance, Toni Reinhold)
August 1st, 2015 in
Personal Finance Topics
| tags: debt relief
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Saving money is a hard goal to achieve if you dont have a specific motivation behind it. If youre having trouble finding the motivation to set aside money from your paycheck, try the Cancun Technique.
As personal finance blog Studenomics points out, saving money for specific goals is easier than saving just to save. If you want to plan a vacation to Cancun, you can set a target amount, decide how much you need to save each month, and even get excited about doing it. When youre saving because some article on the internet made you feel guilty about spending all your money, its going to be a little harder. Rather than saving because writers online say you need to eat your vegetables, give yourself a specific, tangible goal for the money you want to save:
When you want something, youll save up for it. If you dont want something, youll create excuses. Yes, in the perfect world youre going to have an emergency fund. In real life, you need something to get you excited.
Of course, some goals may be easier to create than others. An easy way to do this may be to tack an extra $1,000 on to your vacation budget in order to trick yourself into building an emergency fund (as long as you dont blow through it on your trip). Saving for retirement may be harder, since the pay off wont come for a long time, but if you can give yourself specific things youd like to do when you retire, you can give yourself a little more motivation to do it.
Why Your Bank Account is Depressing (The Cancun Technique For Saving Money) | Studenomics via Rockstar Finance
Photo by droneplcr.
July 30th, 2015 in
Personal Finance Topics
| tags: saving money
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Home Buyers Face Rising Prices; Values Rise To Within 0.5% Of All-Time High
Home Values Within 0.5% Of All-Time Peak
Home values continue to move higher nationwide.
According to the FHFA Home Price Index, property values rose nationwide in May, marking the 18th straight month of home price growth; and thirty-ninth out of 40. Home values are up 5.6% percent from 12 months ago.
Demand for homes is outweighing supply in many US markets; and, todays mortgage rates are so low that theyve changed the economics of Buy vs Rent for many US households.
Freddie Mac has reported the average 30-year mortgage rate at 4.09%. Low- and no-downpayment mortgages remain readily available, and more than 65 percent of loan applications are getting to closing, according to Ellie Mae.
Its an excellent time to be a US home buyer.
Click to compare todays live rates.
Home Price Index Hits 96-Month Best
The FHFA Home Price Index is a product of the Federal Home Finance Agency (FHFA). It tracks changes in a homes value between subsequent sales. Data is supplied via Fannie Mae and Freddie Mac as part of the mortgage approval process.
The Home Price Index is benchmarked to a value of 100, which is meant to represent the US housing market as it existed in 1991.
In May 2015, the Home Price Index climbed to 222.8 — its highest reading since June 2007.
June 2007 is an important month the history of US housing. That month, last decades housing downturn was only just beginning. Home values had yet to drop in many US markets.
Additionally, the Housing and Recovery Act had yet to be created; and the HARP refinance program was nearly two years from its launch.
Todays home values are just 1/2 percent below last decades valuation peak, set in April 2007, and the most recent Home Price Index shows a housing market in expansion.
Home values are increasing at more rapid pace as compared to last year with demand for homes outpacing the supply of them.
Competition for homes remain fierce.
According to the National Association of REALTORS®, 47% of homes for sale are selling in 30 days or fewer. For todays buyers, its become tough to find great, inexpensively-priced homes.
Thankfully, current mortgage rates are cheap. Freddie Macs weekly mortgage rate survey puts the 30-year conventional fixed-rate mortgage at 4.09 percent, on average, nationwide.
FHA and VA mortgage rates are even lower.
Low mortgage rates give buyers extra purchasing power and expanded home affordability.
Click to get todays live mortgage rates.
Illinois, Ohio, Wisconsin Lead Growth
The FHFAs Purchase-Only Home Price Index rose is up 5.6% from one year ago. The index is at its highest point in 8 years.
Not all states experience the same rate of growth, however. The governments Home Price Index examines the housing market broadly, and does little to capture the specific buyer-seller activity of any one state, city, or neighborhood.
The Home Price Index does group its findings by region, however, and, on a monthly basis, the East North Central region led all US markets in March, expanding 1.1% from the month prior. The region had been last months laggard.
Annually, home price growth has varied by region:
- Pacific : +8.4% (Hawaii, Alaska, Washington, Oregon, California)
- Mountain : +7.8% (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona)
- Middle Atlantic : +0.9% (New York, New Jersey, Pennsylvania)
- East North Central : +5.2% (Michigan, Wisconsin, Illinois, Indiana, Ohio)
- South Atlantic : 6.8% (Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida)
The New England Region, an area which includes Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut is +2.0 percent since last year — the second-slowest rate of growth among the FHFAs 10 tracked regions.
Get A Complimentary Mortgage Rate Quote
Home values are higher nationwide and US mortgage interest rates are down. Todays low rates help to keep US homes affordable for first-time buyers, repeat buyers, and investors alike.
Low rates cant last forever, though. Get a complimentary mortgage rate quote now. Rates are available for online at no cost, with no social security number required to get started, and with no obligation to proceed.
Click here to get rates.
July 29th, 2015 in
Personal Finance Topics
| tags: home finance
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MUMBAI: Fullerton India – the Indian arm of a wholly-owned subsidiary of Singapores Temasek Holdings has received permission to operate a housing finance company – Fullerton India Home Finance.
The new mortgage company will largely cater to affordable housing in the lower and middle income segments through Fullerton Indias widespread branch network. The new company will provide customers access to a diversified loan portfolio across Loan Against Property, Mortgage Loans and Home Loans. The average ticket size for these loans will be in the range of Rs 6-7 lakhs, the company said in a statement.
Fullertons entry into housing finance comes at a time when most other multinational have exited the business by selling their local units. AIG was the earliest to exit and farmed out its home finance company into Indo Pacific Housing Financce which was purchased by LT Finance. In 2012, GE Housing Finance was sold to Kolkata-based Magma Fincorp. According to reports ICICI Bank is looking to farm out its stake in ICICI Home Finance to investors. The other major groups awaiting a licence from National Housing Bank are Hinduja Housing Finance and Bajaj Housing Finance.
July 29th, 2015 in
Personal Finance Topics
| tags: home finance
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Sometimes a simple idea makes so much sense, you have to wonder: Why didn’t folks think of this sooner?
Here’s an excellent example: Increase the value of federal nutrition benefits, such as food stamps, if families use the extra money to buy healthy options like fresh fruit and vegetables, especially at farmers’ markets.
This is one of those rare public policies where everyone wins. No trade-offs or downsides. Families stretch their food budgets while improving their diets. Farmers sell more produce. Society benefits through reduced health care costs.
Oren Hesterman, president of the Fair Food Network in Michigan, wrote last year in The Hill newspaper: “Boosting the amount of fruits and vegetables consumed by vulnerable populations is critical. These are the very same people who are disproportionately likely to suffer from type-2 diabetes, hypertension and heart disease. And how is that treatment for those diseases paid for? Often with Medicaid or Medicare.”
“We can quite literally pay the farmer now instead of the doctor later,” he writes.
This is federalism at its best, with variations on the theme bubbling up in different localities. One of the pioneering projects started in Takoma Park, Md., a Washington suburb, when a man named John Hyde was selling baked goods at a farmers market in a wealthy neighborhood.
Just a few miles away lived a community of poor Hispanic immigrants, who seldom patronized his stand. So in 2007, Hyde created the Crossroads Farmers Market, located it closer to the low-income families, and raised $7,000 from the National Watermelon Promotion Board to subsidize their purchases.
It was a “total gamble … a crazy radical idea,” says Christie Balch, who runs Crossroads. The Department of Agriculture called Hyde the day before the market opened and told him, “What you’re doing is illegal.”
Fortunately, Hyde had influential friends, including a senior official at the department, who called his bosses and said: “What do you think the Washington Post would have to say about your trying to prevent poor people from eating fresh fruits and vegetables?”
They backed down. Now, more than 500 markets in 30 states utilize some form of subsidy program. The systems differ a bit, but basically work this way: A shopper who qualifies for food stamps (officially called the Supplemental Nutrition Assistance Program, or SNAP) tells a clerk at the market how much she wants to use from her benefit account. Say it’s $15. That amount is deducted from the shopper’s SNAP card, and the clerk gives her coupons worth $30, which can be spent like cash.
“We don’t have to buy the $1 bag of Cheetos. We can spend a little bit more on healthier things: fruits and veggies,” Melissa Davis of Lehi, Utah, told a local Fox station.
Vicki Zilke, a farmer who sells her produce at a market in Ypsilanti, Michigan, told YES Magazine: “I make more money, I expand my business, and then I can hire more people. If I hire more people, I then improve the bottom line of my community. It’s a ripple effect.”
These are not just isolated anecdotes. The Union of Concerned Scientists and the Center for a Livable Future at Johns Hopkins published a joint report that concluded: “Incentives for fruit and vegetable consumption could reap enormous health and economic benefits over time.”
There’s one problem: Subsidies are expensive, and each market has to raise funds to finance the bonus coupons. Here at Crossroads, the annual $55,000 budget comes from a mix of private donors, foundations and local governments, but Balch expects that when fall comes, accounts will run low and subsidies will have to be trimmed.
Washington has finally woken up to the possibilities here. Last year’s farm bill provided $100 million in seed money, and this spring, about one-third of that was dispensed to underwrite local experiments.
The Forsyth Farmers’ Market in Savannah, Ga., won a grant to establish a “mobile market” that will deliver directly to low-income “food deserts” where fresh produce is hard to find. Greensboro, NC, will try out a “customer rewards program” that encourages repeat shoppers.
The Rhode Island Public Health Institute will start “nutrition education and cooking demonstrations.” New Orleans will set up a subsidy system at Circle Foods, “a locally and minority-owned grocery store.”
This is exactly what many voters want from government: Efficient programs that leverage the energy and creativity of local initiatives.
This is beyond politics. This is about improving health, helping farmers and saving money — all at the same time. Who can be against that?
July 27th, 2015 in
Personal Finance Topics
| tags: saving money
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Pay packets of highest paid stars are up by a fifth and the workforce hits 18,900 – but BBC bosses still insist theyre saving money!
- The BBC employed 18,974 people last year paying an average of £52,000
- The corporations bill for TV talent rose by £14million to reach £208million
- And the wages of the best-paid stars – believed to include Gary Lineker and Graham Norton – soared by 21% compared to last year
- Director-general Tony Hall vowed to defend the BBC and claimed it will raise £1billion by selling programmes abroad
Katherine Rushton, Media And Technology Editor For The Daily Mail
08:04 EST, 14 July 2015
20:43 EST, 14 July 2015
July 26th, 2015 in
Personal Finance Topics
| tags: saving money
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(NBC) — Many members of the US armed forces pay a financial price for their service to the country, often carrying higher credit card debt and owning fewer assets than civilians, a new survey shows.
The survey done for the National Foundation for Credit Counseling (NFCC) found that veterans and active duty personnel and their families often face unique circumstances, such as frequent relocation and deployment, which can put a significant strain on their finances.
This is a serious problem, said Susan Keating, NFCC president and CEO. The issue of financial stability for those who serve our country is a real concern.
The NFCC survey looked at people who took part in the foundations Sharpen Your Financial Focus program to deal with debt. They found that when compared to all the participants in the program, the average military family had:
– 7 percent higher unsecured debt balances, or $400-$500 more than the average.
– 16 percent fewer tangible asset ($11,000 less).
– 15 percent higher monthly debt-related expenses ($200 more).
I think this higher-than-average burden of debt leads to some significant financial constraints on these military households, said Stephen Roll, an Ohio State University researcher who analyzed the data for the NFCC.
And with the continued reduction in forces, the situation may get worse, as more service members try to find civilian jobs.
These families are facing a loss of income from unemployment or underemployment, as well as bad credit from high debt or financial mismanagement, Roll told NBC News.
People strapped for cash often make questionable financial decisions. Previous research done by the NFCC found that 60 percent of the nations service members have used alternative, non-traditional lenders, such as payday lenders, to make ends meet. This makes them more vulnerable to fraud or high-interest predatory lending.
Help is available
The average military member who contacts a credit counselor has accumulated about $10,000 in consumer debt. In many cases, they are required to seek help by their commanding officer in order to maintain their security clearance.
Bob Fixott works with military families at the nonprofit Consumer Credit Counseling Service office in North Little Rock, Ark. He says the people he sees are pretty stressed out.
Families with only one spouse in the military, often have to live on a single income. And frequent relocations make it difficult for the other spouse to find a good-paying job, he says.
Another problem: When someone joins the military at an early age, they may not have the financial skills to manage their money properly.
Now all of a sudden, theyve got a bunch of money coming in and they spend it all, because they dont have a spending plan in place, Fixott said. Some of these people have never learned how to make a budget.
The NFCCs Susan Keating wants military families to know help is available – often free or low-cost. Programs like Hands on Banking (a joint program of the NFCC and Wells Fargo), for example, offer education and assistance for active duty service members and veterans.
With counseling and financial education, savings rates go up, credit scores go up, and overall debt goes down, Keating said.
To find a certified non-profit financial counselor near you visit www.nfccdebtrelief.org/military.
July 25th, 2015 in
Personal Finance Topics
| tags: bad credit
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5 tips for saving money at Starbucks
Starbucks raised its drink prices, but heres how to recoup the loss and save a little extra.
July 24th, 2015 in
Personal Finance Topics
| tags: saving money
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