Purposeful Credit Solutions

10/28/2024

This is 60! I remember agonizing over 25! Here's to 60 more years!

08/09/2023

o The new student loan repayment program contains a lot of information, so I decided to create several posts on the new, revised student loan payments, any pending lawsuits, and loan forgiveness programs.

o The most drastic change is the SAVE program. The Saving on a Valuable Education (SAVE) plan replaces the existing Revised Pay as you Earn program.

o The SAVE program will still use your income and family size to determine your payment, but your monthly payment can significantly decrease compared to the previous income-driven repayment plans.

o Starting next summer, borrowers on the SAVE Plan will have their payments on undergraduate loans cut in half from 10% to 5% of their income.

o The biggest change in the student loan program is how interest is capitalized on your loans. Under previous rules, most borrowers could not pay the principal on their loans until any accrued interest was paid in full.

o Under the SAVE plan, your loan balance will not increase due to unpaid interest.

o For example, if your monthly payment is $100 and the monthly interest accrued is $60, your loan balance will not increase due to the accrued interest.

o The first step in applying for the SAVE program is to contact your loan servicer immediately to begin the application process.

o If you are in default, NOW is the time for you to contact the Federal Student Aid program and begin the process of changing your default status.

Questions? Comment below and share with your friends and family.

08/08/2023

My mom has been gone for over three years, she passed at the start of COVID. We finally get to celebrate the amazing woman she was next Saturday. I didn’t think I would be so emotional 😢

Love you Mama!

05/31/2023

05/18/2023

CAR BUYING.

I recently found a car-buying influencer on Facebook Reels and he shared these important tips:

**Decide on the car you want and start online shopping from HOME. DO NOT GO INTO THE DEALERSHIP. Call or email dealerships and negotiate the price. Car salesmen are skilled negotiators, they routinely persuade people to buy cars that are overpriced.

**When you find a car you want online, that price will be the cheapest. It's important that you use that online price to negotiate with other car dealerships.

**. Find at least twenty dealerships to negotiate your purchase, some will flatly refuse the price, others will try to match the price and even go lower.

**. Do not go into the dealership until you have negotiated the price. Once you arrive, test drive the car and finalize the deal.

** You shouldn't be spending hours at the dealership trying to purchase a car. It should take less than an hour.

Comment below with questions.

04/20/2023

When you are in the midst of the struggle, there will be people saving thousands of dollars, buying homes, and achieving 800 credit scores. This month you've paid your rent on time and bought groceries, and your credit score surpassed the 500 mark. Amid your struggle, you keep asking yourself, what am I doing wrong? I'm here to tell you, you are doing everything right!⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Just six months ago, your rent was several months behind, you were standing in the food line, and the government moratorium was the only reason your gas and electricity weren't turned off. It's easy to feel like you can't be part of the financial success conversation when you barely paid your cell phone bill!⠀⠀⠀⠀⠀⠀⠀⠀⠀
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I'm here to tell you that your success may look different, but it matters! It's easy to succeed when you have a steady paycheck and pay your bills. But when you have no job, three kids to feed, and overdrawn your checking account, you stood in faith and pulled yourself out of your financial disaster. Hold your head up; you're still in the game!

03/28/2023

Five Tips to Improve your credit score in 30 Days:

1. Reduce your credit utilization to less than 5%.

2. Request credit limits for all of your credit cards.

3. If you're rebuilding your credit, you must add new accounts to your credit profile; click on the link https://purposefulcreditsolutions.com/financial-products

4. If your credit utilization is high (over 40%, add a new credit card to lower your overall utilization.

5. If your credit score is in the high 600s, apply for a no-APR balance transfer card and pay all existing credit card balances.

03/13/2023

I've partnered with a licensed IRS-enrolled agent, who has over 20 years in tax preparation, debt resolution, and audit representation. Click on the link below for a 15-min consultation. https://calendly.com/purposefulcredit

03/01/2023

Happy Wednesday!

I was involved in a minor accident in January, and my passenger side door was damaged. It's finally getting repaired after waiting for months. I got a 2021 Nissan Altima as a rental on Monday, and I must confess; I’ve changed my mind about buying a car in the distant future.

I have a 2008 Honda sports coupe; it needs a paint job, and I need to fix the AC. The total cost will be $4,500. The engine runs well, but when you have an older car, the expenses increase.

The Honda had 23K miles when I bought it in 2011; I paid it off years ago and didn’t want another $500 monthly commitment. I have since changed my mind. My rental has many safety features I do not have in my Honda.

I have blind spots when I’m trying to change lanes in my Honda. The Nissan has a rearview camera and keyless remote; more importantly, the Nissan has more room in the car’s interior.

I will start looking for a new car in about a year. I’m paying off debt and want to save money for a decent downpayment.

Here are my suggestions when buying a car:

Buy a quality, newer, used car (no more than 2-3 years old). My new car budget will be around 30-35K; I plan to keep it for at least fifteen years.

When you budget for a new vehicle, consider the increased car insurance premiums in your budget.
If you buy a used car, I strongly suggest your purchase a warranty. Some used cars need a new engine at 70-80K miles.

Two years ago, used cars were more expensive than new cars. It’s always best to create a budget when purchasing a vehicle; sometimes, buying a new car is economical.

If you haven’t purchased a new car in a while, what are your suggestions when purchasing a new vehicle?

01/20/2023

This morning I was on the phone with Covered CA for my health insurance, AAA Auto because of a traffic accident, and Lexis Nexus to lift the freeze off my credit report.

I had to wait on hold to speak to someone at Covered CA, who transferred me to the Medical office because my Medical application had to be denied before enrolling in Covered CA for the upcoming year. I noted my calls in my planner with the date, time, and the people I spoke to.

I had to call Geico and AAA for thirty minutes to track down my adjuster’s name and phone number. The person who hit my car has been texting me for information which I refuse to give. It’s an easy claim, but I have yet to hear from AAA. I left a message for the adjuster and wrote in my planner the date and time I left the message.

I had to call Lexis Nexis (Sage Stream) to unfreeze my consumer reports. I noted my calls with the date, time, and the person I spoke to.
✔️Whenever you are conducting financial business, you must keep track of the following:
✔️Date & time of when the call or contact was made
✔️The person you spoke with
✔️Details of the conversation (including if you were transferred and spoke to someone else, was the call dropped, and any information that was given)
✔️If you received an email regarding the conversation, create a folder in your email and save the email.
✔️Any USPS mail that is received should be scanned and uploaded to that same folder.

You must be your own financial advocate. Over the years, I have had favorable financial outcomes because I took the time to document conversations and used those notes to file a complaint.

It doesn’t have to be complicated; make notes of the conversation on a sticky note, and put the sticky on the date in your planner. If there is ever an issue, then you have your notes to document precisely what you did. If you have to speak with a supervisor, you know exactly what happened and who you spoke to.

Do you have any comments or questions about recording notes from financial transactions?

01/17/2023

Only sign a contract once you fully understand the contract's financial obligations; contracts include leasing agreements, credit cards, auto loans, timeshares, homes, gym memberships, etc.

You can't just walk away from contracts because it's too expensive or you don't feel like paying creditors anymore; you will be sued!

Being a good steward of your money means understanding the contract's financial terms and the ramifications if you don't fulfill those terms!

Attached is a vehicle contract; review the loan terms:

The Annual Percentage Rate (APR) – 23.99% - the interest rate is defined as the cost of extending credit based on your creditworthiness. In this example, the vehicle purchase is $14,789.11.

Finance Charge – the total cost to finance your vehicle. The vehicle cost is $14,789.11; you will pay $10,984.49 in interest, and when the car is paid off, you will pay $27,073.60

Monthly Payment - $429.56

What if the contract terms changed and the interest rate was 8%?

Here are the loan terms:

Total Loan Amount $13,489.11
Downpayment $1,300.00

Total of 60 Loan Payments
$16,410.63
Total Loan Interest $2,921.52
Total Cost (price, interest, tax, fees) $17,710.63

The monthly payment is $279.50. Because the interest rate decreased from 23.99% to 8%, you save $150.05 per month, and the monthly payment is much more affordable.

If you want to improve your finances, you must be your own financial advocate. You must understand every facet of a contract; if you don’t, ask questions and demand clarification. If you’re still uncomfortable, then walk away!

When a contract exceeds your budget, and you know you will struggle to make the payments, you have two options. Walk away from the transaction or find a side hustle for extra income.

If you blindly sign and refuse to understand the repercussions of your decision, it can haunt you financially for years to come.

What parts of a vehicle contract do you not understand? Comment below.