Should consumers pay down auto loans before saving for rainy days?

Over the weekend, Fox Business carried some useful advice about personal finances. A reader had asked whether she should build up her savings in order to provide an emergency fund, or whether she’d be better off paying down her auto loan and other debt. What a good question!

Cheap auto loans

The point the reader was making was that, although there are plenty of cheap auto loans (and other credit) out there right now, the interest rates that have to be paid on them are still almost always higher than the rates you can get from so-called high-yield savings accounts. So wouldn’t it be smarter to pay down auto loans early (or sign up for less debt if you’re looking for a new one) rather than putting money aside for a rainy day?

You can see her point, but the short answer is No! Why? Well, mostly because she was comparing apples and pears.

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In the News: Pell Grant Funding

It may havee to your attention that because of the federal defecit, legislation was in the works to cut funding for federal Pell Grants. When the Department of Defense and Full-Year Continuing Appropriations Act was signed by President Obama, Pell Grants were among the programs to receive cuts, but luckily, not to the extent of other departments.

Overall, the Department of Education saw a cut of $1.3 billion, not substantialpared to the $38 billion in cuts the bill passed overall. Still, Pell Grant maximums remain at $5,550; however, students are now only able to receive one Pell Grant per calendar year whereas the old regulations allowed two grants per year. As always, the grants remain need-based and available to students who show the most need.

One stipulation of these changes is that students must be able to show academic progression.

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Many may use personal loans for DIY projects

It has been reported recently that the DIY project that people have been carrying out over the long bank holiday weekends along with those that many will be carrying out over the summer could lead to an increase in personal loan debt. Many people who are planning to carry out improvements to their homes will be taking out a personal loan in order to do this according to industry experts.

For many people the summer months are the perfect time to carry out repairs and improvements but after several challenging years in terms of finances many cannot afford to pay for them outright. Some people have already said that they will be paying for any improvements on their credit cards, although this provides only a relatively short time to repay the debt without clocking up lots of interest. However, with personal loans the repayment periods are more generous, which means that those carrying out a lot of work on the home will have longer to repay the balance.

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How to Afford the Luxuries You Never Thought You Could Afford

Whether you love the idea of a fancy car, a great condo, an art collection, jewelry, designer clothes, or other luxuries, you may be surprised to find that you may be able to afford more than you thought. Here’s how to find the luxuries you want for less:

1) Find out where people are selling the luxuries you want. There are people living near your area who can afford the luxuries you want right now – and when they get bored with their new toys, they sell them off. Check out estate sales, factory outlets, auction sites, classified ads, and other resources to find the things you want for less than retail.

2) Have a very clear idea of what you want. It’s simply not enough to know that you want designer clothes, for example. What specific pieces and designers do you want? How many items do you want? Create a list and then go online to research how much it will cost. Knowi

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How to Consolidate Your Own Debt

Many consumers consider working with particular debt consolidation companies in order retrieve the debts back, while some prefer to take the do-it-yourself debt consolidation option. When a consumer choose the do-it-yourself option, he or she has to be careful in order to make it certain that he or she is moving appropriately for the purpose of keeping his or her debt under control. If the do-it-yourself debt options are proving beneficial, then the consumer has to pursue some particular steps. If consumers excel in keeping their debt under control, then they can prevent themselves from filing for bankruptcy, stop receiving the annoying and trouble creating debt calls. In other words, this will lead him to road of complete financial recovery.

The consumer can make contact with several debtors for the purpose of negotiating repayment terms.

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5 Things to Know About Mortgage Fraud

- Investigating mortgage fraud is a Top 10 priority for the FBI in San Diego County and among the Top 25 nationwide, said supervisory special agent Johanna Hladun, at the Town and Country Resort & Convention Center on Friday.Hladun was among a panel of experts from the government and lending institutions at the San Diego Association of Realtors annual expo who shared tips and insights on how to avoid mortgage fraud.

For this weeks Five on Friday, we offer five pieces of advice from those officials: