Everything costs something, even money. The price of money is the interest paid. In the case of your “idle” funds (savings account, money market, CDs, savings bonds, etc.), you want to be paid for someone else using them. When you borrow money (mortgages, car loans, credit cards, etc.) the bank wants be paid for your privilege of using their money.
Ascertain your affordability. You must understand that when you set out to make a major financial decision, you must be ready with everything. Prepare your budget. Deduct all your expenses and current loan payments from your gross monthly income. You must consider all the major future expenses like college fees, marriage, holiday trips, etc. If you have a balance enough to make easy car loan payment, only then think of buying a car.
Cars lose value instantly when purchased, and the longer a loan, the less car you own each year. Considering most buyers trade in a car in less than five years, the banks offering the long loans are making a bundle on the long, drawn out interest charged over the years on a car that is seldom worth what a buyer ends up paying.
What happens if you do have your car repossessed? You do still have to drive your kids to school and get to work. What do you do now? Well, as you probably are well aware, once your vehicle is repossessed it becomes very difficult (nigh on impossible) to finance another car. You will either need to pull the cash together or have a friend or family member give one to you. The one thing you probably didn’t think about, however, was the fact that your earlier repossession was going to make your auto insurance rates skyrocket.
The next step in securing bad credit auto financing is to prepare the documentation. This includes proof of employment and income. Remember that with a house, the value of the property doesn’t change when the new owner takes possession, but with a car, the value drops when you drive it off the lot. That is why the people giving http://refinancecarloaninfo.org/ have to be so picky about who they finance.
The Federal Reserve is going to leave the Federal Funds rate in its 0 to 0.25% range. The big issue is if they will go beyond that and engage in a second round of quantitative easing (aka QE2), or buying of longer-term assets (with money created from thin air), and if so how big the program will be. I am expecting a program of about $100 billion per month and lasting at least six months. QE2 should head off any threat of deflation and should help boost the economy, but it is far from a silver bullet. Additional fiscal stimulus would be much more useful to the economy than additional monetary stimulus, but politically it looks extremely unlikely that we will get any more fiscal stimulus, and indeed there is a likelihood of an anti-stimulus fiscal policy being put in place.
Be honest with yourself. So it looks like you spend $500 less than you earn every month… Hooray! Before you celebrate, however, take a look at your expenses again. Are you paying off your credit cards every month, or only making partial payments? How about your mortgage: is it a fixed rate or a negative amoritization loan, which means your mortgage is growing? It’s important to realize the true meaning behind your income and expenses, and if you aren’t paying off your debts, your monthly surplus means nothing. Oce you get those debts wiped off, then it’s time to celebrate!