Loans & Credit Blog

Ten Smart Ways to Spend Your Tax Refund

February 2, 2010

It’s tax season and that means it’s time for W-9s, accountants, and the always exciting tax refund. If you’re anticipating a tax refund you may want to spend some time thinking about where that windfall will go. Need some ideas? Here are ten smart ways to spend your tax refund.

1. Build Up Your Emergency Fund: Experts agree you should have three to six months worth of expenses saved up in an emergency fund. This will help with any unforeseen costs or bills that appear throughout the year.

2. Pay Off Some Bills: It may not be the most fun way to blow your tax refund, but it does make sense. Use your tax season money to pay down that credit card debt.

3. Pay Extra on Your Mortgage: Just one extra mortgage payment each year can significantly lower the amount you pay in interest over the course of your loan. Put your tax refund towards your house payment.

4. Give It Away: If you don’t need the money, give it to someone who does. Then you’ll be able to write your donation off on next year’s taxes.

5. Spoil Yourself: Reward yourself for all the hard work you’ve done by treating yourself to something nice. Maybe there’s a flat screen you’ve had your eye on or you’d love a nice massage. Go ahead and spoil yourself.

6. Make an Improvement to Your Home: Invest in your biggest investment– your home. Take your tax refund and upgrade a bathroom or kitchen. Or make an eco-friendly improvement that will lower your utility bills. When you go to sell you’ll be glad you did.

7. Save it For Retirement: It’s never too early or too late to save for retirement. Sock your tax refund away in a retirement account for when your golden years arrive.

8. Put it Towards Your Kids’ College: Use this money to build up or start a 529 College Savings Plan. It’s a way to save for college without having to pay tax on the interest you earn.

9. Learn Something New: Take your tax refund and invest in yourself. If there a class you could take that may help boost your earning potential, do it. Perhaps there is a conference you can attend that will put you ahead of the game in your field.

10. Pre-Pay Expenses: Often you can get a discount when you pay for an entire year’s worth of insurance or 12 months of a gym membership up front. Take advantage of that savings now that you’ve got the cash in hand to pay up in full.

By Alison | Posted in Money, Tax | Comments (0)

How to Save Money on Tax Preparation

February 2, 2010

They say only two things are certain: death and taxes. And when it comes to taxes, you can be sure you’ll have to fork over lots of cash for the help of a tax professional, unless you follow these tips for saving money on tax preparation.

Get Organized

The less time it takes for a professional to prepare your taxes, the less they will likely charge you. That is why it’s important to come into your meeting prepared and organized. File your bills, add up your mileage log, and organize receipts. The more time you spend getting yourself ready for tax season, the less time a tax preparer will spend filing your forms. This tax preparation checklist from Wells Fargo will also help you get your important papers, documents and files in order before meeting with your tax professional.

Use Coupons

Some tax preparation services offer money saving coupons that will provide you with a discount when getting your taxes done. Print off this coupon and take it in to your local Regional Finance location to receive $20 when they prepare your taxes. Regional Finance has dozens of locations. Find the one that is closest to you.

Wait Until Your Forms Arrive

Your W-2 forms should arrive by January 31, but your employer can ask for an extension that will give them an extra two weeks. Waiting until these forms arrive will help your tax preparer file your tax forms more quickly which could save you money. And it will also prevent you from having to go back a second time and amend your tax return.

Don’t Procrastinate

April 15 may seem like a long time away, but don’t put off doing your taxes. Make an appointment and get it done. If you wait until the last minute you may have to pay extra in order for a tax preparer to help you get your taxes filed in time. And if you file your taxes late, the IRS may issue a penalty.

Review Tax Forms

Once your tax preparer completes your tax forms, review them closely. Any mistakes could be costly because they may result in an audit. Get it right the first time by triple checking all important information so that you won’t have to pay more than necessary for tax preparation.

By Alison | Posted in Money, Tax | Comments (0)

How to Prepare for a Vehicle Emergency During Winter Travel

January 14, 2010

It’s been a rough winter for millions in the US. Whether you’re going across town to grandmother’s house or across the country for a vacation, snow and ice make for dangerous driving conditions which is why it’s important to prepare your vehicle for an emergency during winter travel. Being prepared can save you a lot of time and money during a vehicle emergency.

Create a Break-Down Kit

No one wants to get stranded, but with bad weather it can happen. Prepare for the worst by creating a car break-down kit. Include a blanket, hand warmers, water, road flares, a flashlight, extra batteries, gloves and snacks.

Carry Winter Safety Gear

If you’re setting out during less than perfect conditions, consider keeping an ice scraper, small shovel and even some kitty litter in your car. If your car is stuck in the snow the kitty litter may help your tires get enough traction to get out of a difficult situation.

Consider Joining a Motor Club

Since adding extras onto your car insurance policy can be costly, consider joining an automobile club like United Motor Club. Clubs such as these come with lots of great benefits including emergency road service dispatched 24 hours a day, assistance with emergency travel or ambulance expenses, and a travel itinerary service. When winter weather is particularly bad it’s a great idea to have a plan in place in case the unexpected happens when you are out on the road.

Drive for Conditions

Keep tabs on weather reports and drive for the conditions. That means if visibility is reduced or the roads are slick– slow down! You’ll also want to keep your headlights on so others can see you and don’t forget to leave plenty of extra room between you and the cars ahead.

Get a Tune Up

Before you hit the road during bad weather, schedule a tune up, oil change, tire rotation or any other routine maintenance that your car may need. Keeping your car running at its best will help ensure you won’t get stranded in the snow during a vehicle emergency this winter.

Image courtesy of lain Cuthbertson

By Alison | Posted in General | Comments (0)

Financial New Year’s Resolutions and How to Achieve Your Money Goals

January 14, 2010

Year after year there are always two New Year’s resolutions that top most lists: losing weight and improving finances. With more people out of work and feeling a financial pinch, even more New Year’s resolutions are focusing on being frugal. If you’ve made it your goal for 2010 to save more and spend less here are some tips for achieving your money goals so that in a year your pocketbook will be in a better place.

Be Specific

If you want your New Year’s resolution to focus on finances, be specific. Instead of simply saying it’s your goal to save more, be specific by saying you want to save $100 extra each month. You’ll easily be able to tell how you’re doing with your goal and if you’re achieving it.

Make a Budget

First things first– if you want to get your finances in order for 2010 you need a budget. There are lots of free resources that make this much easier than you might think. Check out websites like Mint.com and Wesabe.com. Not only will you be able to easily make a budget but you’ll be able to track your spending. Find out where your money is really going and which areas you can cut back on so that you’ll be able to save more.

Tell Others

Experts say you’re much more likely to achieve your goals if you tell others about them. It makes failing more difficult. Tell friends and family members about your money goals for the New Year. Explain your plan of attack so they can help hold you accountable. You can also create a free online contract at StickK.com so that you’re more committed to those resolutions.

Celebrate Success

Set small milestones for yourself and when you tackle one take some time to celebrate. It’s easy to focus on the negative and let that stop you from achieving your goals– but don’t let it! Celebrate small strides because that is what will ultimately carry you to accomplishing what you set out to do in 2010.

By Alison | Posted in General, Money | Comments (0)

Ways to Get Quick Cash for Holiday Spending

November 30, 2009

‘Tis the season for spending! The holidays are here and that means there are gifts to buy, parties to host and traveling to do. If your bank account is looking a little slimmer than you’d like for this time of year, here are some ways to get quick cash for holiday spending.

Return Old Purchases

Perhaps you bought something you just had to have only to find out you didn’t need it so badly after all. Return past purchases that are still unused or in the package and get gift cards or cash to spend on Christmas gifts for others.

Sell Unwanted Gift Cards

You probably have some gift cards taking up space in your wallet. If you don’t want to use them up, then sell them. Use a site like PlasticJungle.com to unload those gift cards and get what you really need– cash. They’ll buy them off you for a percentage of what the card is actually worth.

Get a Loan

Get some extra cash quickly by applying for a loan online with Regional Finance. It’s quick and easy and could be the perfect solution to get you through the holidays. A wide variety of loan amounts are available and you don’t have to have perfect credit to be approved.

Visit a Pawn Shop

Have some old jewelry, DVDs or tools you no longer want? Then head to a pawn shop and sell your stuff. You’ll unload unwanted belongings and instead walk out with some extra money in your pocket.

Earn While You Search

Try using a search engine that pays you for what you’re already doing– surfing the web. Signing up for Swagbucks takes just a minute and is free. Once you create an account you start earning “Swagbucks.” You can cash Swagbucks in for gift cards or merchandise that will make great gifts this holiday season.

By Alison | Posted in Money | Comments (1)

Should You Borrow Cash from Family? The Pros and Cons

November 23, 2009

Need cash for your kid’s braces, car repairs or a new business you’re starting up? With credit tightening, getting a traditional loan may be tough. If you’re finding cash hard to come by, you may consider approaching family members or friends for some money. But borrowing cash from family has some serious negatives– and some great positives– to consider before popping the question.

Negative: Relationship Strain

Consider the relationship you have with the person you’re thinking about asking for money. Have you and this family member always gotten along? If you’ve squabbled in the past, chances are when you throw money in the mix those fights could get worse. That means getting a loan from this person will put even more strain on your relationship.

Positive: Reasonable Terms

Unlike borrowing money from a bank, when you take a loan from a family member you can agree on the terms. The interest rate isn’t set in stone. Come to an agreement you both can handle and stick to it. You may benefit by not facing penalties and high interest rates like you would have if you’d gone through a traditional lender.

Negative: No Where to Fall Back

In a perfect world you’ll borrow the money and pay it back in the time that both sides have agreed upon. But what if something happens– you lose your job, get in a car wreck or some other emergency. Now you are unable to pay back that loan. Rather than just hurting a huge bank, you are hurting your family member. Have a back up plan for repaying your debt and make sure the person that is giving you the money is financially able to do so.

Positive: Unconditional Love

A bank doesn’t always understand your dreams and hopes like a family member does. If it’s your dream to start a business and a bank won’t give you the money, chances are your family understands your strengths and believes in you enough to help you get going. Not only are they giving you money, but they’re telling you that they believe in you.

The bottom line is, treat this relationship as a business relationship. Stick to the terms that both sides have agreed on and this transaction can go smoothly. But unlike taking a loan from a bank, there is a whole lot more at stake if something goes wrong. Relationships can be ruined over a loan. So don’t take advantage of your family member if you decide to borrow cash from a loved one.

By Alison | Posted in Loans, Money | Comments (0)

Buying a Used Car? What Carfax and Autocheck Reports Will Tell You

November 16, 2009

Buying used cars can save you lots of money compared to buying a new car right from the dealer. But there are some risks involved with buying a used car. It’s tough to tell what the car has been through just by looking at it. Has it been in an accident? Has it had water damage? Is it a lemon? You can easily get some peace of mind by spending a little money to invest in a vehicle history report from a company like CARFAX or AutoCheck. Wondering what you can learn from a vehicle history report? Here is the information you can expect to receive when you purchase a CarFax or AutoCheck report.

How Many Owners Has the Car Had?

The vehicle history records may show when the title was renewed or issued which indicates how many owners the car has had. This is important because if a car was passed around several times that could be a clue that there may be some issues with it. Also, If the car has only had one or two more owners there is a chance that it was cared for better than a car that was owned for a short period by several people.

How Many Miles Did the Owners Drive It?

Along with the number of owners you’ll find out the estimated mileage that each owner put on the car. It’s important to look closely at these numbers because they could indicated odometer fraud if they don’t add up properly.

Where Did the Car Spend Its Time?

If you live in a more mild state, you may not want a car that spent several years enduring harsh winters in Minnesota. There could be additional rust from the sand and salt used to melt ice during the winter months.

Did the Car Experience Damage or Were the Airbags Deployed?

This is one of the biggest reasons to get a vehicle history report. You will find out if the car was in an accident or whether it sustained major or minor damage. If a car has had major damage, even though it’s repaired, there may be underlying issues that remain.

Did the Car Receive Regular Maintenance?

Sometimes the vehicle history report will also include detailed information about oil changes, routine maintenance and servicing. If a car was regularly serviced according to manufacturer suggestions, then you know it was well cared for.

Does the Car Have a Warranty?

If the car is still under a manufacturer warranty the vehicle history report should indicate that.

By Alison | Posted in General | Comments (0)

Need Quick Cash? Alternatives to Payday Loans

November 9, 2009

According to the Center for Responsible Lending, those who use Payday Loans typically receive eight to 13 payday loans each year. Often the loans they are receiving are loan flips where the borrower is getting money to pay a fee and is not receiving any new money. To avoid getting caught in a tough position without being able to pay back your payday loan, consider one of these alternatives to payday loans.

Try Another Lending Institution: There are other easy lending options that don’t carry as high of interest rates as payday loan businesses. If you need less than $2,000 in a hurry, check out the small loan option from Regional Finance. It may be just enough quick cash to fit your needs.

Ask Your Creditor for an Extension: Often people turn to payday loans when they think they have no other option. Be honest and open about your situation with your creditor and ask for an extension. That extra time may be all you need to get the money to pay your debt without getting a payday loan.

Use Your Emergency Fund: Depending on what you need you quick cash for, it may qualify as an emergency. In that case dip into your emergency fund for the money you need, and make sure you replace it as quickly as possible in case another issue should come up.

Get a Payday Advance: Depending on where you work, you may feel comfortable enough asking your employer for a payday advance. You’ll get your paycheck a little early and you won’t have to worry about paying large interest fees like you would if you were obtaining a payday loan.

Turn a Gift Card into Cash: Have a gift card in your wallet? You can turn that into cash quickly with SwapaGift.com. They’ve even got certified partner locations around the country where you can take your gift card and leave with cash.

Pawn Something: Pawn shops can be a good resource for getting quick cash. Take unused electronics, DVDs, or jewelry into your local pawn shop and they’ll give you cash for those items.

Credit Card Cash Advance: You may be able to get a cash advance from your credit card. Often you can get the cash by using an ATM machine. Rules differ depending on your credit card so make sure you know your cash advance limit and the interest rates for borrowing money this way.

Image courtesy of stopnlook

By Alison | Posted in Credit, Loans, Money | Comments (0)

How to Get your Tax Refund in Time for Christmas

November 2, 2009

Halloween is over which means the holiday shopping season is kicking into gear. Wondering how you’re going to afford all of those Christmas gifts this year? Put spending money in your pocket by getting your tax refund in time for Christmas shopping. Who needs all that extra cash in April? Why not get your tax refund when you really need it– in time for holiday shopping! Here are a few simple steps to take in order to get your tax refund in time for Christmas.

Find a Tax Preparer

Rather than waiting until 2010 to find a tax preparer, do it now. Look for a company that offers a Refund Anticipation Loan, or RAL. One example of a company offering great RAL service is Regional Finance.

Bring Your Latest Pay Stub

In order for tax preparers like Regional Finance to estimate what you’ll be getting from Uncle Sam in 2010, they’ll need your most recent pay stub. Then a tax preparer will use tax preparation software to estimate your tax refund.

Receive Your Funds

Once the paperwork is filed and you meet the necessary qualifications, you’ll receive your Refund Anticipation Loan in time for holiday shopping. Some companies, like Regional Finance, don’t require upfront fees when you’re receiving an RAL. But other companies may assess a fee up front. Once you get your money you are free to spend it however you wish, whether it’s a new bike for your little one or an iPod for your spouse.

Return to Your Tax Preparer

Once the new year rolls around you may need to return to your tax preparer with all of your tax documents including W-2 forms. You will file both your state and federal taxes at this time.

Pay Back Your Loan

Once the IRS sends you your tax refund check in 2010, you pay back the RAL. Since this is a loan, you will pay interest on the amount you borrowed so make sure you understand the terms of your RAL. Remember, you are paying for the convenience of having your tax refund when you really need it: in time for Christmas!

By Alison | Posted in Loans, Money | Comments (0)

Buying a Car Online Without Getting Scammed

October 26, 2009

More people are turning to the Internet for car buying these days. And why wouldn’t they? The selection is great, you can shop for a car whenever you want and you don’t have to deal face-to-face with car salesmen. Shopping online can be an extremely convenient way to buy a car. But like just about every business transaction, you can get scammed when buying a car online if you’re not careful. Here are some tips to avoid getting scammed when buying a car online.

Avoid the Lot and Shop for a Car Online

Look for Seller History

When shopping on a website for a car, do a little research on the website. Search for the company on the Better Business Bureau website and see if any complaints come up. If you’re using an auction site like eBay.com, look at the seller’s history. Have they received positive feedback? This is usually a good indicator as to how they will treat your transaction.

Talk to the Seller

You may not be able to easily talk to the seller in person, but you should at least talk to them over the phone. Ask them for more details about why they’re selling the car, how long they’ve owned it and whether they’ve had many problems. This will come in handy when you have the vehicle inspected.

Get the Vehicle Inspected

Talk with an independent mechanic and arrange to have the vehicle checked out. This will cost you some money, but it will be worth it. You’ll be able to cross check what the mechanic says with what the seller told you and see if everything makes sense. If you catch the seller in a lie you may not want to trust them with your money.

Get a Vehicle History Report

This is another investment that will pay off in the long run. The seller may tell you that the car has not been in any accidents, but a good way to find this out is by running a vehicle history report. There are plenty of sites that offer this service. A few to consider are Auto Check and CarFax.

Know the Value

Research what the car is worth using a site like Kelley Blue Book. Make sure you’re getting a fair price before signing up for the deal.

Try to Pay Securely

Using a site like PayPal to complete the transaction will help eliminate the chance for getting scammed when buying a car online. You may also want to try to pay with a cashier’s check which limits the amount of sensitive information you are passing on to others.

By Alison | Posted in General, Money | Comments (0)