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Learn From The Expert: Last Minute Tips On How To Cut Your Tax Bill

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Even though the deadline for filing 2017 self assessment returns online is long past (31 January 2018), it is never too late to get information that can help for subsequent ones. Of course, if you missed the deadline, you may have to pay a penalty, unless you have a really good excuse, such as a long stay in the hospital (with hospital records to back it up), but for subsequent tax filings, the following minute tips from personal finance experts will help you cut your tax bills in the future.

Cut your tax bill when you donate to charity –

If you are an additional or higher rate tax payer, you can legally cut down your tax bills by being charitable. You are essentially killing two birds with one stone. Donating for a good cause and slashing your tax bills. When you add up your charitable donations on your tax returns, you can claim tax relief. Mathematically, you can save 25p on every £1 charity donation. Not only can you earn tax relief from major charities, you can also lower your tax bills by sponsoring minor events like scouts or brownies at your children’s school. All in all, you get to save by giving.

ISAs –

If you are a basic taxpayer, you can earn as much as £1,000 interest on your personal savings without paying one penny in tax. The same thing applies to higher rate tax payers, you can earn up to £500 in interest without paying tax. However, you may need to check the tax certificate for your bank account. The same thing applies to investments. You are entitled to £5,000 a year in tax free dividends if you own any investments outside your pension or personal savings account, although this figure will reduce to £2,000 from April 2018. You can actually save up to £20,000 every year with an ISA without having to pay capital gains tax or income tax.

Better mortgage alternative –

The new property and mortgage rules that will take full effect within a few years will see landlords progressively lose valuable tax relief on their buy to let properties mortgage costs. Before the introduction of this new rule, landlords only have to declare rental income after they have paid mortgages, and this system help cut tax bills by thousands of pounds. But, since April 2017, the method of declaring rental income has changed; meaning a lot of landlord will be expecting significant increase in their tax bills. However, because mortgage rates have dropped in recent years, landlords may be able to make savings by exploring other mortgage opportunities. Additionally, landlords can talk to tax experts to ensure they are claiming all they can against their rental income.

Self employed allowable expenses –

If you are self employed, you can slash your tax bills by taking note of what is called allowable expenses. For every £1 you spend on ‘expenses incurred exclusively in the performance of your business’ you can get 20p back in your wallet. For example, if you work from home and have to travel to London for a business meeting, you can claim travel costs which can cover food and drinks. Unfortunately, the taxman will not appreciate 5 star restaurants in your fillings, but the odd meals and drinks can add up. The secret is to keep track of all these seemingly insignificant expenses. One way to do this is by ensuring you get a receipt every time you carry out these little trips.

Three Critical Investing Tips For Millennials

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As it stands, the millennial demographic is larger than any other generation. Having said that, do they plan and save better for retirement than the other generations? Maybe, maybe not.

As millennials move into the critical earning years of their lives, it’s essential for them to save as much for retirement as possible. While it may be challenging to sock away a significant portion of your paycheck, investing wisely in the market could prove to be very beneficial in the long run.

But how?

Jason A. Sugarman suggests following the following three tips to investing in the right kinds of stocks.

Avoid Trends

Steering clear of fads will yield positive results. Just because you love snapchat, doesn’t mean you should throw all of your money into Snap Inc. We see way too often company’s stock diminishing after an IPO.

In order to avoid this pitfall, consider whether or not a company truly has potential for growth based on personnel and product advancement.

Let the Market Grow With Time

Sometimes, the best advice is to just “do nothing”. In this sense, investing in a mutual or index fund can yield some nice returns in the long-run. This may be a great option for millennials who really don’t have the time to monitor stocks and analyze the market.

It’s amazing how often an index fund will outperform a hand-picked hedge fund (not to mention the high fees that come with actively managed funds).

By removing the guesswork out of investing, indexing is a great way to go. You can also consider a target-dated fund, which rebalances your account automatically with age.

Early is Better than Later, More is Better than Less

As an investor, the biggest benefit that you can have on your side is time. When you’re young, you have leniency to take risks and suffer losses through the turbulence of the market. In regards to your retirement, risk really doesn’t matter that much due to the amount of time that you have on your side.

As history shows us, the stock market (over time) moves in a positive direction. We’re never going to have a 35 year recession. Unless we have some catastrophic event that ruins capitalism, you’re guaranteed to earn money in the long-run.

Investing in the stock market when you’re young is much akin to going shopping and buying something on sale. You’d purchase an item on sale even though you may not wear it until later, right? Millennials should look at stocks in the same light.

Recap 

Sure, investing can be very tricky. Having said that, if you follow these three tips, you’ll be sure to have some nice earnings later in life. Get started today!

Golden State Financial Group Addresses the Two Key Home Loan Modification Myths

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Thousands of people in this country have been able to avoid foreclosure thanks to home loan modifications. No longer do they have the stress of thinking they will have to face foreclosure, wondering whether they and their children will live. However, Golden State Financial Group have noticed that, despite home loan modifications being available and being used, a lot of people still don’t quite understand what they are. This is why they have felt the need to address two of the greatest myths surrounding these programs.

Golden State Financial Group on Home Loan Modification Myths

MYTH #1 – Home loan modifications are very expensive

We all need to consider where our money goes and what we spend it on. While the economy is doing better on paper, most families still have to work incredibly hard just to make ends meet. And homes come with a lot of extra costs. If, on top of that, they believe that applying for a home loan modification is an expensive process, they are more likely to avoid even looking into it. They worry that they have to go through the expense of an application only to get rejected, leaving them in even more debt.

Some companies that offer help with applications do charge a lot of money. However, it is easy enough to shop around and find one that works for very reasonable rates, or that even offers the initial work for free. This means that they will only charge you if your application is successful and that there are no upfront costs at all. Once you are approved, there are usually some very interest options to pay that fee as well, such as simply adding it to your new reduced monthly payment.

MYTH #2 – You only need a home loan modification if you are facing foreclosure

This is perhaps the biggest mistake of all. A lot of people believe that, in order to apply for a home loan modification, you must be about to lose your house. They think that is only for those trapped in an extreme cycle of debt and who have nowhere else to turn to. This is a huge myth, and one that is completely untrue. Indeed, anyone can apply for a home loan modification.

These programs are designed to adjust what you pay each month so that it is more suitable to your current financial situation. This means that your monthly payments become more affordable, and you can loosen the belt a little bit. There are different ways in which this is achieve, such as lowering your interest rate, increasing your repayment term, or even writing off some of the principal.

The reality is that financial situations change. Perhaps you have an unexpected medical bill. Perhaps your employer stops overtime provisions. Perhaps a family member is out of work for a while. In any of those situations, you should consider a home loan modification sooner rather than later, thereby ensuring you don’t end up in a financial mess.

How To Improve Your Credit

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It’s essential to have a decent credit score when you are making a big purchase like a vehicle or a house. It can also make it easier to purchase things like electronics, a mattress, or a couch. A good credit score can also help with educational loans or renting an apartment or house. The higher your credit is, the lower your interest rates on anything you borrow will be.

Life can be difficult when you have a poor credit score. All of your loans or credit cards will have very high interest rates. This is assuming you qualify for any credit cards or loans at all. You may be wondering what to do to improve your credit score if you wind up having a poor score. Here are four tips that will help you fix your credit.

Understand What Your Score Is and What It Should Be

Getting a copy of your credit report is the first step you want to take when you’re fixing your credit. With a service like Credit Sesame, you will be able to see a copy of your credit report. This will show you any negative items, any open accounts, and any hard inquiries. A hard inquiry happens whenever a potential creditor does a credit check to see if you qualify for an account.

Use Any Credit You Already Have with Responsibility

If you do have a credit card or loan that is still active, make sure you start using it responsibly. Don’t max out credit cards, and try not to utilize all of the credit that’s available to you. Make sure you are making payments before or by the due date as late payments can hurt your score. You may even want to just use a card for something like gas or groceries and pay it off every month.

Pay Off Any Outstanding Debt You Have

It’s important that you pay debts that you owe. You may still have negative items on your credit report if you had a lot of late payments, but it’s always good to pay debtors what you owe them. You may need to do a credit consolidation or you may need to negotiate with creditors to see if they will accept lower payments.

Be Dedicated to the Cause

You’ll need to be persistent when trying to repair your credit because it’s going to take some time. No one can shoot their credit score up from a 550 to a 750 overnight. You might find yourself getting frustrated as you work to improve your credit, but it’s important that you don’t give up. Be persistent and keep going forward.

These are a few suggestions you can try when you’re in the process of saving money to fix your credit. There are also a lot of helpful resources available online that will educate you and teach you how to make better financial decisions. Most people have made financial mistakes at some point in their lives. It’s important that you don’t beat yourself up about it and you just commit to making it better.

Refinancing Your Auto Loan: Is It Good Or Bad?

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Refinancing your auto loan can be beneficial or detrimental to your current financial status. Sometimes it tends to seem as if it’s the best option for your situation. However, before you refinance your auto loan, consider its advantages and disadvantages.

How Does It Work

Perhaps the best way to learn about refinancing your auto loan is to understand how it works. When you refinance your auto loan, you’re technically replacing the current auto loan that you’re having with a completely new one on different terms. In hindsight, this means you’re essentially going to pay off the current auto loan that you have with a completely new one, usually happening through a completely different lender.

This is a very different process for every owner, so be sure to pay extra attention to how your contracts work by the time you even consider taking a refinanced loan. You can find some options here: https://crediful.com/best-auto-loans/.

  • Most people tend to appreciate the appeal of refinancing car payments because of its ability to help them save money.
  • After all, some refinanced car loans are also capable of lowering monthly payments for users.
  • Other refinanced car loans also help users have lower interest rates and even adjust the lengths of their terms.
  • Sometimes, there are other more personal reasons to refinance their cars. These usually range from removing cosigners, and other different factors. No matter the reasons are, it’s essentially important to look at refinanced car loans from the perspective of its potential outcomes.

When To Refinance An Auto Loan

Refinancing your car loan can actually get you a lot of different scenarios. The point of course is clear, in that its primary goal is to alleviate some of the hardships you have with your current loan by hopefully replacing it with a plan that can be of more use to you. Of course, whether or not refinancing your car loan is a good idea depends on how you take these following effects.

If You Need Lower Monthly Payments

A lot of people actually want to refinance their car loans because they need lower monthly payments. Perhaps you’re having a rough time financially and you need more time to recuperate. A refinanced loan can get you in a state where, theoretically, it would be much more convenient for you to pay. This can be done in two ways.

  • The first is to get a lower interest rate than your previous. This normally means extending the length of time you’re going to have to pay for your automobile.
  • Another option is to extend the term of your loan, but chances are this may actually have you paying more in total compared to your total without extension.
  • Some actually have a third option, where they do both. Some lenders are actually considerate enough to allow you to extent both the loan term and the lowered interest.

Reducing Interest Charges or Decreasing Interest Rates

As stated above, you’re actually capable of requesting for lower interest charges and decreasing interest rates throughout the rest of your loan period. This can actually be done with a simple adjustment.

  • The best way to do this is to increase your credit worthiness to your lenders. If you do this prior to your refinancing, then you may potentially be able to get lower interest rates.

If You Need To Change Loan Length

Another way described above is to change the length of your loan. Always remember that you should try to do this is if you want to potentially decrease your monthly payments.

  • Don’t opt for loan length changes as your car depreciates in value every day.

If You Need To Add/Remove A Cosigner

You may actually also be able to remove or add cosigners to your loan. Removal or adding them may have personal reasons, but you’re actually capable of doing these kinds of adjustments when refinancing.

  • If you need a cosigner removed from your loan contract, you can actually opt for refinancing to get this change started.
  • Of course, this also means that the usefulness of your refinanced car loan inevitably depends on your situation. It’s always best to consult with an expert or with a consultant when you have specific questions about how refinanced car loans can affect your finances and credit reports on a more specific level.

Regardless, if you have any plans of refinancing your car loans, always maintain a spirit of caution and always double check if this plan is really for you.

Conclusion

Refinancing your auto loan can be a good option or a bad option depending on your financial status. In order to achieve this life goal of paying off your loan, there are a lot of factors to consider before even getting one. Always remember, however, that refinancing your auto loan must always be according to your current financial plan. Assess your current financial status before refinancing your auto loan.

What about you? Do you think refinancing your auto loan plan is a good idea?

Golden State Financial Group Advises People on How to Get Accepted for a Home Loan Modification

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Once upon a time, only the rich and famous were able to buy homes. Then, mortgages and loans changed, and anybody could apply for one and be accepted. But then the Great Recession happened, and people got into real difficulties, facing the prospect of foreclosure. Thankfully, the Obama Administration became aware of this and ensured people could apply for home loan modifications in certain circumstances. Companies like Golden State Financial Group were formed in order to help people get accepted.

Golden State Financial Group on the Aims of Loan Modifications

If you find yourself in a situation where you can no longer afford the monthly payments on your loan, then you are likely to need a modification. There are numerous ways in which a loan can be modified, including:

  • Stopping the interest rate from being adjusted upward.
  • Extending how long you have to repay the loan.
  • Decreasing your outstanding balance.
  • Adding missed payments to the main balance.
  • Eradicating the term of negative amortization.

That said, it isn’t up to you, as a borrower, to determine how your loan will be modified. Your lender has to be willing, for starters, and they will do all they can to make sure that they get their money back. Unfortunately for lenders, the Obama Administration put regulations in place meaning they almost had to accept loan modification, and this meant that they started to reduce the main balance of outstanding loans. The consequence of this, meanwhile, was that overall property values started to decline. And, worryingly, the US Comptroller for the Currency has reported that, in instances where the rate was modified, delinquency increased.

Of course, for you as a borrower, what matters is that you don’t lose your home. What you need to know is how you can apply for a modification and how it can help you. The best way to do this is to work with a company like Golden State Financial Group. They will contact the loss mitigation section with your bank and receive the necessary application form. They will work with you to determine which documents you have to supply, such as hardship letters, tax returns, and bank statements. As a result of this, the lender is likely to contact you asking for a proposal for modification on your part. If you work with a professional agency, you have more chances of this request being sent out. Work on your own, and it is likely that the lender will simply decline your request.

A loan modification system is out there to help you. But you as a borrower must be responsible and see this for what it is: a helping hand. It is not an easy way out, and it is also not guaranteed that you will be granted a modification. Make sure, therefore, that you know what you are doing and what your lender’s criteria are, so that you are more likely to be successful in your application.

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