What Is Car Loan Modification?

Most people who take out auto finance base the affordability of their loan on their income and capacity to meet their repayments at the time of financing. Rarely do people anticipate a change in their financial situation, but, when faced with a decline in income, auto loan repayments can often be difficult to meet. This is where car loan modification can help you through a difficult financial position with your credit rating still in good standing.

One thing that most reputable lenders will want to avoid is their customers defaulting on their loan repayments. Chasing up bad debt through the legal system can be costly for lenders and for this reason many of them will be open to car loan modification if you are at risk of defaulting on your finance agreement. Car loan modification is quite simply measures that lenders will be prepared to set up in your loan contract to make your loan more affordable in your current situation. These changes may be short term or long term and will be established on an individual basis, based on the needs of the clients.

The most common form of car loan modification is an increase in the term of your loan. Many lenders may allow you to refinance your auto loan for a longer period of time to help reduce your monthly repayments. This option can often be very beneficial to people who are more than half way through their finance term as the refinancing amount is based on the balance of your loan. This means that you will be refinancing a lower amount over a longer term and so this type of car loan modification can reduce your repayments quite considerably.

If your financial difficulties are caused by temporary unemployment, some lenders may be able to freeze your repayments for a month or two to give you time to find employment and get back on your feet. This type of car loan modification, however, is not available through every finance company and not something that may be openly advertised by your lender so you will need to make inquiries with your lender to see if this is an option that they will consider. If this type of car loan modification is something that you need, then you will also need to be aware of any penalties that may be applied to your loan before you take this option. Some lenders may be prepared to freeze your repayments, but will add the interest rate applied to this period onto your subsequent repayments. So, before choosing this method of car loan modification you will need to gain a good understanding of how it will effect your loan in the future.

If you are struggling to make your repayments and are at risk of falling into arrears, it is a good idea to approach your lender as soon as possible. Finance companies are more willing to negotiate car loan modification for customers who have had a good repayment record than those who have a short history of making late payments.

Top Budget and Personal Finance Apps

Let’s face it, there are some extreme couponers, thrifters, and smart consumers out there always trying to save money and get the best deals. With budgets that much more tight in these tough economic times, it’s okay to get a little help from none other than our smartphone apps. I mean, why not, right? We have our smartphones with us nearly every minute of the day, so this kind of smart budgeting is accessible to anyone. Keep track of your monthly spending, set limits on each category of goodies you purchase, save money, and look up investment ideas and accounts has never been easier. Read on to see how you can always control and be on top of your personal finances. We’ll reveal the top budgeting and smart spending apps for you thrifty shoppers out there!

For one, there are so many budget tracking apps out there, but a really useful one would come with a budget tracker tool that will allow you to view your yearly, monthly, weekly, and daily purchases. You can further categorize them and see visually and through charts and notifications how much you spend exactly in each category. There is also a rollover option for you to transfer leftover funds from previous months or weeks to roll over and won’t mess up your budgeting. Of course, you can always opt out of this option and have a set number of expenses every month.

Another useful app gives you control to add new transactions over your allotted sum of money and spending finances. Pre-setting an overall budget for the entire month, and thereby deducing every time you make a purchase gives you instant updates on the money you have and the money you are losing. These transactions are totally customizable. Currency converters may also be useful if you plan on spending your money in a foreign country. We all get carried away when we travel, but this app makes it easy to stay focused on the budget, even when you’re not familiar with the currency exchange.

Another great app gives you total control over importing your finances onto your phone from an external memory device – your laptop, desktop, or anything with wireless. You can also set a password to manage your personal finances with utmost privacy. Charts and graphs give you short and easy to read summaries of your account activity. You can share these things in the form of PDF, Excel spreadsheet, or import to Google Documents in order to share with your family, business collegiate, execs, or co-workers.

If you are comfortable, some apps may even connect directly to your bank account and give you automatic categorized notifications of your spending. It will constantly update your spending profile and read instant in depth overviews. Any suspicious activity will be announced. Budget tracking is that easy!

In fact, budget tracking has made it easier to keep track of your credit scores, and credit score reports. Why not try to improve your credit score while you are managing your personal finances? If you use the right app, your personal finances will be in a much better place.

Obama Debt Forgiveness – New Laws Could Save Consumers 50% to 60% on Current Debt Balances

Debt collectors usually experience great business when people are having a difficult time paying their bills, since they rely on making making through the never ending ring of the telephone. However, in the recession we are now in, one that could be the worst in decades, the unimaginable is going on: people that usually go after the money are now losing some themselves.

After credit card companies have aided in making the tremendous consumer debt what it is today, they are now coming to understand that many Americans are having an extremely difficult time paying their bills when due, while the economy gets worse.

This has made lenders and the collectors they employ frantic to get every cent they can, before the situation becomes even worse, and they will do this even if it means they have to lose money themselves. More and more, they are allowing payments to be stretched to unimaginable lengths, and they are taking dimes, or even pennies on the dollar, and considering it paid off.

These predatory lenders are not just being helpful. All they are really doing, is attempting to cover their own behinds. Credit card companies and banks are getting prepared for a huge amount of defaults on credit cards, and they are fighting with each other to get their money first. They also consider the fact that the faster people can get their debts paid off, the sooner they will be able to begin borrowing money again.

Although many banks are cutting credit lines, hiking up card fees, and just wary on lending in general, others are actually allowing their customers a little room to move. For example, Bank of America has said that they have waived late fees, dramatically lowered interest rate charges, and for some, they have even reduced loan balances for greater than 700,000 people that held their credit cards in 2008.

Since a greater number of people are getting more in debt, cards like Chase and American Express are doing the same thing for many of their customers. All of the major credit card lenders are telling their collection agents to allow for greater leeway in helping customers that are in dire straits.

People who usually make their money based on the total amount of money they recover, have said people that have had problems and have had to obtain payment extensions, have at least doubled over the past few months. There have also been situations where people who borrowed money, and were about to go over the edge, were given deals that allowed them to pay only 30 to 80% of the money they owed.

This situation is the opposite from a few years ago, when most of the time, consumers fought and lost against credit card companies. In the current situation, as debts continue to soar into the stratosphere, the lenders are the ones that are crying uncle.

$395 billion in bad loans, are what credit card lenders expect to have to write off in the proceeding five years, as reported by the Nilson Report, which is an industry newsletter. This is comparable to the approximate $275 billion that has accrued over the past five years in credit card debt. It is getting more difficult to collect debts such as these. Many times if this happened in the past, lots of consumers would use their home’s equity to have a way to pay off credit card loans, or they may have used retirement money, used a debt consolidation loan, or simply asked a friend or family member for help. With the state of the economy being what it is today, consumer have no recourse.

Since they are terrified that people that pay their bills on time may stop, the lenders do not want to say that they are accepting less than the total payment due. Whereas the gigantic loan modification programs that are going on, take thousands of mortgages at the same time, the way credit card customers are being helped is still on a case by case scenario.

Now, lots of debt collectors are letting many borrowers that are behind, take a year to pay off their debts, instead of the standard six months. There are also many lenders that are getting in touch with borrowers as soon as possible, so they do not have to write off the account. Even others are talking to customers they fear might soon get behind in their payments. Much like when credit card companies were trying to be the very first card people used, they are now in the situation where they are attempting to get paid before any others.

The banking industry is now beginning to lobby regulators, so that it is more beneficial to lenders to extend payment terms or forgive indebtedness, since it is projected that millions of additional consumers will be defaulting on their credit cards in the next few months. There was a credit card loan modification recently that was not accepted.

Through this rejected plan, lenders would have been able to forgive around 40% of the total owed them by borrowers over the next five years. The accounting rules that are in place now, say that lenders have to report the loss right after default, but the new plan would have let lenders wait until the part of the debt had been repaid to report it. By doing this, they would be able to write off less later down the road. Borrower would have also been able to defer any tax payments that were owed on the debt that had been forgiven.

In 2005, major changes passed to bankruptcy legislation, and the industry ferociously lobbied, and this seemed to have harmed card debt collections. The mean debt that was discharged in Chapter 7 bankruptcy has grown three times the amount since 2004, according to credit card industry data. In a Chapter 13 bankruptcy, secured lenders such as auto finance companies often shove out lenders that are not secured, like credit card companies, and this has went on and assisted in the card lender’s willingness to settle.

Although settling on a deal will avoid credit card cancellation or possible bankruptcy, it will also make the borrower’s credit score dip very low for as many as seven years, and this will make it extremely hard and costly to get any new loans. This will make the person’s average credit score drop 70 to 130 points, where the strongest borrower have one of 700 or greater.

Through the use of credit card debt settlement companies, debts can be combined into one single payment, and make credit card companies decrease the interest payments and other fees, and also many times the actual principal will be reduced as well. By doing this, the credit card holder can then take off as much 60% off the amount that they owe in debt.

What Stands Behind Capital One Credit Cards and Savings Products?

In the times since the global financial crisis, it has increasingly become a concern as to what the backing of the financial institution that issues your credit card or holds your saving account is. There are a number of laws which regulate the financial system and try to ensure that customers can rely on banks to honour their obligations which can be a particular concern in relation to savings products. Title 12 of the United States Code in part 325 specifies a number of ‘capital adequacy requirements’ in relation to all banks. The aim of these requirements is to force banks to adequately provision of a crisis and ensure that they will remain solvent even if there is a large crisis. Banks must report periodically on their arrangements to show regulators that they are meeting the capital adequacy requirements.

Capital One at the moment is, when measured by asset pool, the 8th largest bank in the United States with balance sheet assets of approximately USD$286bn in 2012. Amongst other distinctions, the company is also one of the largest customers of the United States postal service. Its head office is in Fairfax County Virginia and the current chairman, CEO and President of the company is Richard Fairbank. It is one of the fastest growing banks in American history having been founded in 1988 by the current CEO. Like many banks in the American financial system, Capital One was the recipient of a bail out during the sub prime mortgage crisis of 2007 when it received $3.56bn from the United States Government in exchange for 3,555,199 shares in the company. By the end of 2009, the company had managed to buy the government out of the business.

As well as being involved in credit cards, Capital One has an Auto Finance Division which is a substantial part of the company. An entity known as Capital One 360 is also now in existence having formerly been known as ING Direct on the idea that a bank could perform retail services entirely on the basis of an online model. This division of the company has no branches and only maintains a physical presence in the form of call centres and online processing maintenance facilities. The online bank model seems to achieved some success given that the lower overheads from rent and staff result in lower costs to consumers and therefore a better outcome.

One of the notable characteristic of Capital One is that it appears to have retained an ability to ride out the periodic financial storms which emerge in the world of consumer credit. It has grown consistently throughout good and bad times in consumer finance and continues to grow based on the analysis of its most recent financial data. This history of growth and the ability to ride out financial storms appears to bode well for the credit and savings products of Capital One.

Where to Find Car Loan Low Interest Finance

You may be surprised to learn how much you will be able to save when you take out car loan low interest finance. If you have been working hard to negotiate the best sale price on your new car, you certainly won’t want to negate the savings you make by paying dearly for finance. There are many companies around who can offer you a good deal on an auto loan and, when looking for car finance, you should aim to pay the lowest rate you can.

When looking for car loan low interest finance you should ensure that you consider all options available to you. A lot of people feel more comfortable sticking with their own financial institutions or the larger bank lenders as they seem to think they will be able to provide the best loans at the best rates. This is not always the case. These days there are a large number of non-bank lenders who provide car loan low interest finance.

Probably the best place to start looking for car loan low interest finance is on the internet. The majority of non-bank loan providers operate solely online as it is an easy way to set up their business without having to outlay a lot of capital. These companies also have minimal running costs, so they can afford to offer car loan low interest finance and still make a reasonable profit.

It is important, when searching for car loan low interest finance, that you realize that interest rates can vary considerably between lenders these days. Ensure that you take the time to shop around and get as many quotes as possible, as you may never know when you will come across the perfect auto loan at the lowest price around. It is only by approaching as many lenders as you can that you will have any success in finding car loan low interest finance.

Looking for car loan low interest rate financing is quick and easy when you do it online. Not only can you compare lenders at a time that is convenient for you, but you will only need to enter your details once in order to receive multiple quotes. The other great thing about getting car loan low interest finance online is that the application process is incredibly straight forward. Once you have found a great rate from a reliable lender, you will be able to apply for your loan online by completing a standard application form. Your application will be submitted to your lender immediately and so the processing of your application is a lot faster.

One thing that you will need to be cautious about when getting car loan low interest finance online is that you will need to ensure that the lender you go with is legitimate and reputable. Sometimes a company that offers ridiculously low rates may not be the most trustworthy, so always take the time to find out more about a lender before signing on the dotted line. You can check out the business ratings of various lenders online through the Better Business Bureau or through auto finance review sites.