Health Questions And Answers | Disease Information | Prescription Drug Answers

Category: Auto Loans

What Happens When You Pay Off Your Car Loan?

A man wearing sunglasses drives his car.

According to the Consumer Financial Protection Bureau, around 2.3 million car loans originate every year. Car loans can take years to pay off. So when you finally pay it off, you might be wondering—now what?

What happens when you pay off your car? What should you do with the money you were previously putting towards your monthly payments? We’ve got a few ideas, but keep in mind that everyone’s finances are different. So while our suggestions might work for some people, they probably won’t work for everyone.

What to Do When You Pay Off Your Car

Firstly, paying off your car loan is a huge accomplishment. So congratulations! Paying off any loan isn’t always easy. And now you finally own your car, which is a pretty big deal.

Luckily for you, the hard part is over. But there are still a few steps you should take after you pay off your car.

1. Get Your Car Title

You usually don’t have to take action for this step. In most states, your lender notifies the Department of Motor Vehicles—or BMV or other equivalent entity in your state—of the title change. Once the paperwork clears, the title is mailed to you.

There’s not much for you to do except keep an eye on the mail. If you don’t get your title a few weeks after paying off your loan, call your lender. You’ll need the title if you ever want to sell your car or use it for collateral when applying for credit.

2. Reconsider Your Finances

If you’re paying off a vehicle and not planning to buy another with a new loan, you’ll have a little more extra room in your budget. In 2019, new car buyers committed to an average monthly payment of around $550. So when you pay off your car loan, there’s a good chance you’ll have an extra $300 (or more) per month.

You might be tempted to splurge on fun stuff or to make large purchases you’ve been putting off. But unless your transportation situation is radically changing soon, you’ll always need a car. And that means you’ll eventually need to pay for the next one.

Plus, owning a car is expensive—even if you’ve completely paid it off. You’ll have to your oil changed, new tires and much more. And that’s just regular maintenance. If you get in even a minor accident, you could have a major repair expense on your hands.

That’s why it’s a good idea to put that some of that extra money in savings. If you end up getting a new car eventually, you can pay for all or part of your next vehicle with cash. That reduces how much you have to finance, which can significantly reduce the total cost of your next vehicle. Another option is to use the money to continue to pay down other debt to put yourself in a better financial situation in the future.

It’s also worth putting part of that cash in your short-term savings. You could easily dip into those funds if you need to get any work done on your car. But whatever you plan to do with the money, take the time to look at your personal budget. That gives you a chance to see exactly where this extra money might make the most difference.

3. Notify Your Car Insurance Company

Notify your car insurance company when you’ve paid off your loan so you can remove the lien holder from your policy. You don’t need to wait until you have the title in your hand to make the call.

This step is important because if your financed vehicle were totaled in a wreck, the insurance payment would go to the lender. Once you’ve paid off the car and own it outright, the payment goes to you.

4. Consider Any New Insurance Options

Most states have requirements for what type of coverage you must carry on your car. At minimum in most states, you need bodily injury and property damage liability that will cover the losses of other people if it’s caused in a wreck that is deemed your fault. There are some exceptions to those requirements, though.

But your lender will likely require additional insurance coverage until you pay off the loan. Many lenders require you to also carry comp and collision coverage. This is the part of your insurance policy that pays for damage to yourvehicle if you get into an accident that is deemed your fault.

Lenders require this extra coverage to protect their investment. They want to know that if your car is totaled, they can recover the value that you owe them. Once you pay off the loan, whether or not you carry this level of coverage might be your choice.

Talk to your insurance agent to find out what your options are and if you can save money by changing your insurance coverage. Just remember that if you drop this coverage and get into an accident, you may have to cover the costs of repairs or a new vehicle on your own.

You can also check rates for auto insurance online. In addition to saving money on your monthly vehicle payment, you may be able to save a lot on your insurance coverage.

Check out auto insurance rates today!

Does Paying Off Your Car Loan Early Hurt Your Credit?

To get out of debt or change your current car, you might decide to pay off your car loan early. Your credit isn’t penalized by making early payments on debt. However, paying off an entire account can cause a small dip in your credit score temporarily. That’s because open accounts with a positive payment history impact your score more than closed accounts with positive payment histories.

Your wallet might also take a small hit depending on how your loan is structured. Find out if your loan includes any penalties for paying off the principle early before you make a decision to go this route.

The post What Happens When You Pay Off Your Car Loan? appeared first on Credit.com.

Source: credit.com

4 Questions to Ask Yourself Before Leasing or Buying a Car

When you’re looking for a new car, it can be difficult to decide whether buying one outright or leasing one for a period of time makes more sense. It’s true that cars only go down in value the longer you own them, but there are still some solid arguments for owning one outright rather than essentially renting one.

Car-related decisions can be stressful, and there’s a lot you need to know before buying or renting, but don’t worry. If you’re in the market for a new car and aren’t sure which way to go, you can use the following questions to help you make the best decision for your situation.

Question 1: How Much Will I Be Driving This Car?

If you only need a car for weekend adventures and plan to use public transportation or to carpool during the week, then leasing might be the better option for you, if you can get a good deal. Most lease contracts come with stipulations on how many miles you can put on the car while you’re using it, but if you’re only using it for a few quick trips each week, you likely won’t come close to hitting that mileage mark. Still, you’ll want to pay close attention to that number if you do end up going for a lease. Always ask what happens if you go over the mileage count, since the penalties can be steep. On the other hand, if you have a lengthy commute to get to work and you need a reliable car to get you there—or you just aren’t interested in tracking miles—buying might be better for you.

Question 2: What Do I Plan to Use It For? 

You probably wouldn’t go into a car purchase intending to rough up the car, but stuff happens, so you’ll need to decide what you plan to use your car for to know if leasing is right for you. If you lease a car, the dealer generally allows normal wear and tear upon return at the end of your lease, but you’ll be charged extra if they think the car has been more weathered. Be sure to get the specifics from the dealership on what exactly they consider “normal” wear and tear, and if that doesn’t match your plans for the car—if you plan to off-road in the Colorado Rockies on most weekends, for example—it might be better to buy.

Question 3: How Long Do I Plan to Keep It?

One appealing thing about leasing a car is that most car leases end after three years—so you have the opportunity to upgrade to a new model every three years if you’d like. Of course you could buy a car and upgrade that way, but it can be harder to deal with the sale of a car than it is to just turn your lease back over to the dealer.

Question 4: How Much Can I Afford to Put Down?

Most lease agreements will come with lower down payments than buyer agreements have. In some cases, if you lease a car, you may even be able to negotiate with the dealer to skip a down payment altogether. (Keep in mind, though, that this will likely result in higher monthly payments.) Either way, if you really need a car now, and you don’t have the cash for a decent down payment, then going with a lease may put you in the driver’s seat faster than if you waited to buy a car.

Buying a car is a very personal decision, and whether you lease or buy will be determined by a number of factors. At the end of the day, buying a car is almost always the cheaper option if you need a car for the long term, but signing up for a short-term lease can be a solid option depending on your needs. Putting in a little bit of extra thought before searching for your next ride can ensure you make the right decision.

Whatever move you decide to make, be smart in how you approach car buying or leasing. Don’t forget that having good credit will improve your car-buying experience, so before you make car-related decisions, check your credit and see where you’re at. You can always check your credit for free at Credit.com.

Image: istock

The post 4 Questions to Ask Yourself Before Leasing or Buying a Car appeared first on Credit.com.

Source: credit.com

10 Under Sink Storage Solutions You Need in Your Life

Keeping your house organized is no easy task and the space under the sink is no exception. It’s often easy to forget about the storage under the sink as it’s mostly covered and hidden.

However, it can and should be just as organized as any other part of your house. Here are 10 under the bathroom sink and under kitchen sink storage ideas.

Under kitchen sink storage ideas

The kitchen is one of the most used rooms in any house or apartment. The only thing that makes a kitchen more enjoyable is when it’s clear of clutter, under the sink included.

Here are some clever under the kitchen sink storage ideas for you to try.

kitchen sink storage

1. Hang bottles with tension rods

Tension rods are one of the best under sink storage solutions. They can be used on virtually every surface and also can be fitted to almost any size area. Once they’re in place you can hang cleaning supply bottles from them to free up space from the bottom of the cabinet.

One of the best things about tension rods is they’re not permanent and they can easily be removed and reused through the house.

2. Use file holders to add storage

File holders aren’t just nifty organizers for the paper on your desk — they make great storage for under your kitchen sink. They’re pretty inexpensive and easy to find at your local paper store or Target.

All you have to do is adhere them to the inside of the cabinet door and you’ll have yourself some extra storage. It’s a great place to put extra towels, dish brushes or sponges for easy access.

3. Organize with bins

When organizing, you can never go wrong with a good old bin. They make a great space to neatly organize and group everything into their own neat place. Once everything has its place you can easily stack them to create even more cleared up space.

Another tip is to label them so that you don’t have to waste time sifting through each one when you’re looking for one thing.

4. Expand storage with a Lazy Susan

Let’s all thank Susan for being lazy and inventing the lazy Susan. It’s one of the most helpful and fun storage hacks on the list. They come in a variety of sizes to fit under any cabinet and make finding what you’re looking for super easy. The best part is you just place all your supplies on it and you’re done!

5. Install cabinet towel holders

Similar to tension rods, cabinet towel holders offer extra space in your cabinet while keeping it organized. They’re very easy to find and even easier to set up and can be used in a variety of spaces around the home, including under your kitchen sink.

All you have to do is remove the packaging and attach the hooks to the door part of your cabinet. Once you’ve done that hang anything from them like cleaning supplies, extra towels and even your cleaning gloves.

Under bathroom sink storage

Similar to the kitchen sink, the bathroom sink is another space that can be difficult to organize. Fear not we’ve got you covered there, too! Here are some great tips for how to organize under your bathroom sink.

bathroom sink storage

6. Store hair tools with PVC piping

When you think of PVC piping under the bathroom sink, storage probably doesn’t come to mind. PVC pipes are a great way to store hair tools such as curling irons, flat irons and their cords. Since they come in a multitude of sizing, you can perfectly fit your tools to the pipe. When you have a perfect size the only thing left to do is attach it to the inside of the cabinet doors.

7. Declutter with sliding shelves

Sliding shelves are a great way to de-clutter under your bathroom sink. They create more space to store items, such as hair products and tools, toilet paper, etc. One of the best things about sliding shelves is the easy access to everything without having to dig through all your things.

8. Create extra space with cabinet door bins

Creating extra storage in small areas is a great way to accomplish all your organizing goals. One way to add extra space is to add cabinet door bins. They’re extremely easy to adhere and also can be removed easily when you’re done using them. They also hold quite a bit and are a great place to put your products, brushes, towels and more.

9. Utilize bins and caddies

As mentioned above, a bin or a caddy is one of the most useful tools to create a clutterless space. Get a large bin specifically for towels and toilet paper and they usually take up the bulk of under sink storage. Use smaller bins for other supplies and stack them to create ample, organized space.

10. Hang caddies over the cabinet door

Hair tools can take up a lot of space under your bathroom sink. One of the best ways to combat bulky hair tools is an over-the-door caddy. They make some specifically for hair tools that easily slip over the door for easy access and assembly.

Do’s and don’ts of under sink storage

You can store a number of items under your bathroom and kitchen sink. Although, there are some items more suitable for under sink storage than others.

under sink storage

Things to safely store under your kitchen sink

  • Sponges, cleaning brushes, gloves
  • Cleaning supplies, such as glass cleaner, dishwashing pods, soap. When storing cleaners underneath the kitchen sink, keep in mind who is in your household. If you have small children that enjoy exploring cabinets you may consider placing cleaners out of reach or adding childproof locks on the door. Another idea is to place all your cleaning supplies on a rubber tray in case of spills for easy cleanup.
  • Trash bags
  • Trash can
  • Recycling can

Things to safely store under your bathroom sink

  • Toiletries, such as extra toothbrushes and paste, deodorant, contact solution
  • Toilet paper
  • Towels
  • Hairstyling tools
  • First aid kit

Things to avoid putting under the kitchen sink

  • Bug spray
  • Oven cleaner
  • Lightbulbs
  • Food

Things to avoid putting under the bathroom sink

  • Jewelry
  • Medications

Organize under your sink

Organizing is never an easy task, however, with the right guidance, it can be a little easier. Use these under the bathroom and kitchen sink storage ideas to create a nice organized space for yourself.

The post 10 Under Sink Storage Solutions You Need in Your Life appeared first on Apartment Living Tips – Apartment Tips from ApartmentGuide.com.

Source: apartmentguide.com

Powered by WordPress & Theme by Anders Norén