TOP 10: Practical Vehicles for Small Budgets

TOP 10: Practical Vehicles for Small Budgets

Buying a car can be stressful when you are not sure which model to look for. Single-parent situations require families to stay within a limited budget. To make it easier for future buyers, we brought together our experts and asked them to draw up a list of the best vehicles. The vehicle selection was based on criteria such as long term reliability, low maintenance costs, quality of resale value as well as reliability after 300,000 kilometers on the odometer. This is very important criteria when people don’t have a fortune to spend on maintenance and fuel, and it is good to know that the vehicle can be sold at a good price if need be.

  1. Toyota Corolla
  2. Honda Civic
  3. Honda Fit
  4. Mazda 3
  5. Honda Accord
  6. Ford Focus
  7. Hyundai Elantra
  8. Hyundai Accent
  9. Nissan Altima
  10. Kia Forte

Alternative Credit: An Interesting Option When Living on a Tight Budget

The weight of parental and financial responsibilities that rests on the shoulders of single mothers is considerable. Most of the time, these mothers struggle with ways to meet the family’s needs with only one salary and very little support. In fact, it is hard to make a good salary when faced with constraints such as getting to the daycare before 6 p.m. or doing homework with the children after supper, while making sure that all basic needs are met. It is not an easy situation from a financial and personal point of view. This is why we must address the credit issue. It may look like an enticing solution to keep your head above water and maybe buy a few luxuries.

In fact, although credit is an indispensable tool used by lots of people with low income to buy vital goods, avoid potential pitfalls. It is necessary to calculate your budget before applying for credit. Find out more about the loan terms and conditions and avoid making an application with your eyes closed. Applications that are not approved have a negative impact on your credit score.

Ask yourself how much you can pay back per month? It is very important to avoid overindebtedness, which would put you in an undesirable precarious financial situation. Given that the financial situation of single mothers is often precarious, their margin of manoeuvre is limited. This is why they must be informed before going down that road. Banks, financing institutions and companies offering financing plans will not calculate your budget for you. It is much easier to get credit than to reimburse it. Therefore, don’t go into debt unnecessarily; think about the terms of repayment and the interest rate of your loan. Credit is not a present; your creditors will claim their money quickly if you are unable to make your payments. You are the only one who knows what your expenses are and the risk of having to pay for unexpected bills. Whenever possible, play as safe as possible when thinking about credit so as not to find yourself spiralling in debt. Be careful when applying for a loan. Read the small print of the contract to avoid unwanted surprises in terms of fees or conditions. And, the total amount of your payments must not exceed 40% of your annual income. Having said this, as mentioned above, you are the only one who knows how much you can afford. Be smart and careful when applying for credit; people in a financially perilous situation are at risk of finding themselves in serious trouble. You don’t want this to happen to you!

Use Credit Responsibly, Especially If You Have Little Income

The weight of parental and financial responsibilities that rests on the shoulders of single mothers is considerable. Most of the time, these mothers struggle with ways to meet the family’s needs with only one salary and very little support. In fact, it is hard to make a good salary when faced with constraints such as getting to the daycare before 6 p.m. or doing homework with the children after supper, while making sure that all basic needs are met. It is not an easy situation from a financial and personal point of view. This is why we must address the credit issue. It may look like an enticing solution to keep your head above water and maybe buy a few luxuries.

In fact, although credit is an indispensable tool used by lots of people with low income to buy vital goods, avoid potential pitfalls. It is necessary to calculate your budget before applying for credit. Find out more about the loan terms and conditions and avoid making an application with your eyes closed. Applications that are not approved have a negative impact on your credit score.

Ask yourself how much you can pay back per month? It is very important to avoid overindebtedness, which would put you in an undesirable precarious financial situation. Given that the financial situation of single mothers is often precarious, their margin of manoeuvre is limited. This is why they must be informed before going down that road. Banks, financing institutions and companies offering financing plans will not calculate your budget for you. It is much easier to get credit than to reimburse it. Therefore, don’t go into debt unnecessarily; think about the terms of repayment and the interest rate of your loan. Credit is not a present; your creditors will claim their money quickly if you are unable to make your payments. You are the only one who knows what your expenses are and the risk of having to pay for unexpected bills. Whenever possible, play as safe as possible when thinking about credit so as not to find yourself spiralling in debt. Be careful when applying for a loan. Read the small print of the contract to avoid unwanted surprises in terms of fees or conditions. And, the total amount of your payments must not exceed 40% of your annual income. Having said this, as mentioned above, you are the only one who knows how much you can afford. Be smart and careful when applying for credit; people in a financially perilous situation are at risk of finding themselves in serious trouble. You don’t want this to happen to you!

Decipher Your Credit Score and Avoid Deteriorating Your Credit Record

Decipher Your Credit Score and Avoid Deteriorating Your Credit Record

A credit score ranges from 300 to 900 points and is impacted by the ratings issued by your creditors. Clients who make their payments within 30 days of payment due date is classified as R1, which is excellent. Clients who make their payments in more than 30 days of payment due date are classified R2, and their rating changes with each 30 day segment. R5 is an account that is at least 120 days overdue while R7 means that the account has been paid further to a debt consolidation in Court or other similar arrangement. Finally, R8 is repossession and R9 is bad debt, placed in collection, absence of an address to find the person or bankruptcy. The higher the credit score, the higher the quality of your credit.

Apply the following guidelines so as not to deteriorate your credit score:

1 – Whenever possible, avoid any delay in payment of any kind. It should be noted that the longer the payment is overdue, the closer the credit rating issued by a creditor will be to R9, and thus the more impact it will have on your credit score. Late payments leave a trail in a credit record for at least six (6) years.

2 – Using on average more than 50% of your credit has a negative impact on your credit score.

3 – It is better to have only a few bank accounts and to keep them for a long time. Changing bank accounts frequently will definitely have a negative impact on the credibility of the applicant.

4 – Also, looking for credit increases the risk of indebtedness, and will have an impact on the risk perception of a potential lender. In fact, the number of institutions asking about your credit report further to a loan application will have a negative impact on your credit.

5 – Having many creditors increases the lender’s risk perception. It gives the impression of instability. It would therefore be preferable to avoid opening different accounts, especially if it is the same type of credit. However, it is better to have diversity in the types of credit used.

Thanks to these guidelines, you will be well equipped to keep the highest possible credit score.