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Purchasing a car is a big deal for anyone. It makes the heart thump in excitement to have that dream vehicle on the driveway. Before stepping on the pedals there are several things a car buyer must know to get the best car loan deal.

First Things First

When buying a car you must know what you can afford. It is better to sit down and review your budget to see how your monthly payment for the auto loan will affect your household.

The rule of thumb is not to go beyond fifteen to twenty percent of the household budget for transportation expenses.

It will also be wise to check on your credit standing since this will be the basis of the interest rates and ultimately your monthly payments. If you have to deal with some financial mistakes then deal with it head on so you can pull up your credit score. It will be beneficial for the auto loan and also for all other financial transactions.

Shopping early for the car that you want is also good since you will have an idea of the price and you can confidently walk your way into the show room. Knowing what to expect is best when buying an old car or the latest model if you have done your homework.

Mistakes to avoid

Car dealers need to earn their living. They will sell at the highest price possible. If you show something that they can capitalize on, then say goodbye to your dollars.

Here are 5 mistakes that a car buyer can avoid:

1. Buying the vehicle not for you –You don’t need to buy a truck if you only drive less than a mile to the grocery. No sports car if you are a family man of four kids. This is a simple rule for the car loan game.
2. Be realistic – if you are about to go gaga on a car try to hold back your emotions. If you have a budget of $25,000 and the car of your dreams is at $35,000, maybe you can still haggle for a lower price. Just don’t expect that you can get it at $25,000.
3. Deals by location- dealers have price differences in every car and in every model. You have to check the Customer Satisfaction index of a dealer or check their complaints records before negotiating with them. Positive records show how you can trust them with the car deal.
4. Broker Assistance- if the tough gets going do not call a broker immediately to help you out. Brokers have special price arrangements with dealers where you will not be on the winning side.
5. Do not celebrate too early – if the dealer gave in to the haggling wait until you enter the business office. Watch out for price add-ons like the insurance and other services.

To meet the dealer head on you must have done your home work before walking in to the showroom. You don’t have to be a hostage but take control of the bargaining. Remember that the first offer is not the best and you can always wait for price split for the better.

If they can’t give what you think is best and feasible, then walk away and see what they do. If they don’t go after you to give you other options then go to the next car dealer and shop for the best deal again.

Popularity: 32%

Going to college was the easy part.  Paying off your student loans is the hard part.  And if you’re not careful, it may take you a lifetime to do it. In the meantime, making your monthly student loan payments for the next ten, fifteen or thirty years will leave you feeling drained.

Some Startling Facts

According to Finaid.org, student loan payments are strangling a lot of college graduates. They offer some startling facts. For example:

• 65% of 4 year undergraduate students graduate with student loan debt.
• The average student loan debt is over $23,000.
• 14.6% of student loan borrowers graduated with over $40,000 in debt.

Instead of spending a lifetime digging out of student loan debt, the smart graduate will work to pay off their educational loans early. By creating a plan and sticking to it, student loan borrowers can pay off a small loan in one to three years and a moderate loan in four to six years.

Five Ways to Pay Off Your Student Loans

Here are five way things you can do to get out from under your student loans early so you can stop paying and start living.

1. Eliminate extras: Cut out designer coffee, movie nights and dinners on the town. You can use the cash you save to pay down your student loan debts.
2. Sell your car: The money you spend on car payments, insurance and gas can be reallocated to lightening your debt load. Use public transportation or get a bike.
3. Move home: Getting out from under Mom and Dad’s thumb may be a dream- come-true. But if you stay at home for an extra year you can chip off a big chunk of your debt.
4. Take a second, or third, job: By taking a minimum wage job and working twenty extra hours a week you can earn seven thousand additional dollars towards your student loans in one year.
5. Sell your stuff: It’s just stuff. And most of it you probably don’t need. Cashing out your trash will help slice your student loans.

What Not To Do

Don’t be tempted or get too creative. You may regret it. Some solutions may seem attractive at first, but in the end, they’re a recipe for trouble. Here are a few tricks you’ll want to avoid:

1. Skipping payments: If you fail to pay your student loans or don’t pay on time, your credit rating may be adversely impacted.
2. Using your credit card or a home equity loan: Rolling your educational debt into another loan won’t solve your problem. It will just create more debt.
3. Cashing out your retirement funds: If you tap into a 401K plan, you’ll likely take a big tax hit. In the end, you’ll end up losing money instead of saving.

Don’t spend the rest of your life paying off your student loan debts. Make a plan and stick to it. If you do, you’ll be out of debt before you know it.

Popularity: 32%

When money is scarce, people may rely on payday loans or cash advances to get them through until the next payday. Although the fast processing and approval time for payday loans make it ideal for emergency situations, there are factors involved that can keep you further in debt. To avoid such a situation, borrowers need to learn ways in which to properly manage their payday loans, which include:

Only accepting the bare minimum needed

If you only want to take out $300 for a payday loan or cash advance, but you are approved for $500, then do not be tempted to accept the higher amount. You may often be offered more than you have requested if your credit rating is ideal because the payday loan company knows you are a low liability. It can also be because you generate enough monthly net income to qualify for higher amounts or have collateral.

You must keep in mind that a higher amount will result in an even higher amount that will need to be repaid. Because of this, only accept the bare minimum that you need to keep the interest rates and other finance fees low on your payday loan.

Ensuring the deadline is met

If you are late with repaying your loan amount and its additional charges, then you will only acquire even more charges. Because the amount of time you are given is relatively short, then you must ensure that the amount you borrow can be repaid completely within that timeframe to avoid late charges.

For those that cannot meet the deadline, you can see if the payday loan company will allow a rollover, which is an extension. However, extending the payday loan will also result in additional interest rates charges and a higher amount owing.

Only using payday loans for emergencies

Although you may be tempted to use payday loans for a luxury item, it is not a healthy decision. Because of the high rates and the short repayment time, you may find yourself further in debt. This is why you must only use payday loans to cover emergency expenses until you next receive your paycheck.

Always remember that payday loans are designed to be short-term loans. As long as you do this and manage the loans accordingly, then you will be able to free yourself from financial trouble as opposed to creating more of it.

Popularity: 16%