Finding a Bank That Treats You Fairly

I think it’s fair to say that most readers are looking to get better results with their finances.

One of biggest changes you can make with your money is optimizing your banking system.

Staying with a Big Bank Just Because

If you ask people about their banks I think many would either be apathetic about the no frills of their accounts or upset about being nickeled and dimed with fees.

I understand that banks are a business. They need to make money. On the hand, they are handling our money and we will act accordingly.

When we first got married we opened a joint account at one of the big banks. It was convenient and while the we were going to earning much money, we had a way to pay the bills.

If you read some of my earlier posts you know that we had a horrible time with their customer service and we were getting fees left and right. Nothing huge, but they were eating away at our balance.

The couple of pennies we got every quarter for interest wasn’t doing anything to make us feel better; in fact it felt like a slap in the face. After dealing with it for so long, we decided to switch. However the other big bank wasn’t really an appealing option.

I had read some personal finance sites and heard about online banking. They offered much higher rates and met most of our needs. However it felt like a risk. This bank was completely online.

We worried what we could do if something went wrong. We decided to test the waters and signed up for ING Direct’s Orange Savings account for a few months. After being satisfied with everything we then switched our checking account to them.

It’s been a great decision for us as we have a hassle free banking and bill paying system with them.

Knowing that other couples are looking at making a switch, I wanted to share some tips on how you two can find the right bank or credit union for your needs.

Finding a Bank That Treats You Fairly and Earns You Money

What should you look for in a bank or credit union? That depends on what important to the two of you.

Whatever you choose, please make sure that it’s FDIC insured bank or a NCUA insured credit union.

We wanted the following for our joint checking and savings:

• No monthly maintenance fee: I understand banks have the right to charge what they want, but I expect something in return. With most banks, the fees offer no extra services or benefits for us, so why even get an account with them. We wanted no fees for our checking account.
• $0 required minimum balance: I understand that if one gets a basic savings account, you’re not going to get a great rate. But then if the interest rate is pathetic, why would we want to keep a larger balance with our checking account?
• Free online BillPay service: This is a must-have on our list as we prefer to handle our bills online due to its convenience and control. Late payments are a thing of the past as we can easily adjust dates and amounts as our budget allows.
• Conveniently located ATMs: Whether we went with a bank or credit union we needed a way to access our money after bank hours. Having ATMs nearby is important as we’re trying to avoid fees from out of network ATMs.
• Earn some interest rate if possible: I know that the high interest rates of years ago is gone, but that doesn’t mean we shouldn’t get anything. For our savings we’d like to get a competitive rates. Earning interest with our checking account is not necessary, but it’s nice that we bonus.

For some couples have ATMs close by is more important than interest rates or vice versa.

Make sure that you and your hard earned money get the service you deserve from whatever bank or credit union you choose.

Ally Bank

Ally Bank is a fast becoming a popular bank among financial bloggers for a few reasons.

They offer both online checking and savings accounts and their interest rates have been a bit higher than some of their biggest competitors. They offer everything on our wishlist, including:

• No minimum balance to open an account
• Competitive rates
• Make deposits with Ally eCheck Deposit^SM , online transfers or free postage-paid envelopes
• Real help 24/7 from customer care associates
• Simple online transfers
• Free Online Banking with Bill Pay
• Free Account Alerts and Notifications
• Free Sleeping Money Alerts

If you’re interested in opening a savings account with Ally bank, click here to get started.

Capital 360

We’ve been using Capital 360 (formally ING Direct) for our joint checking and some of our savings for several years now and have been really happy with their service.

Their online 360 Checking account has been a great fit for our budgeting needs and we haven’t had problems with it.

With the addition of paper checks awhile ago, this makes the account practically perfect for us.

Like Ally, ING Direct also has all of the features that we look for in checking and savings accounts.No minimum balance to open an account

• Competitive rates
• Free Online Bill Pay
• Free access at over 35,000 ATMs
• Make deposits with CheckMate^SM , online transfers
• Free Account Alerts and Notifications

You can open a checking account with Capital 360, simply click here to get started and get a $50 bonus!

Local Banks and Credit Unions

I realize that online banking isn’t for everybody. In fact, for those looking at great customer service may not to look far.

Smaller, local credit unions and banks can be a perfect solution.

My mother made the switch from one of the big banks to a credit union and she has loved it! She feels like she has a partner with her finances.

Saving has become much easier and the competitive rates they offer has her paying down debts faster and investing for her future.

Not sure what credit unions are in your area? Please visit the National Credit Union Administration (NCUA) to see your local options.

If you live in North Carolina, check out Coastal Federal Credit Union and State Employees’ Credit Union.

Thoughts on Working Smart for Your Money

Whatever your banking choice, please make sure it suits YOUR needs.

Have your money to grow hassle free while you two take on other financial goals together.

I’d love to hear how you have taken some action and improved your finances. Have you made adjustments with your banking, budgeting, or investing?

Just a heads up, this post does contain affiliate links for Ally and Capital 360.We use both banks ourselves for our banking needs.

In the spirit of full disclosure, I also have a small savings account with a credit union  

This article by Elle Martinez first appeared on Couple Money and was distributed by the Personal Finance Syndication Network.

Millions of Federal Student Loans Lining Up to Be Eliminated and Borrowers Repaid

As a consumer debt expert for decades I’ve developed a pretty good sense of reading the tea leaves of debt. Sometimes this means making some sense out of puzzle pieces well in advance of assembly.

I’m getting that same strong sense that student loan debtors are on the verge of a bold new ability to discharge massive amounts of federal student loan debt for some very good reasons. The primary reason is they’ve been duped.

Student loan debt has typically been very, very problematic. Young people, their parents, and grandparents have been placed on the hook for massive amounts of debt that for some will burden them the rest of their lives and actually leave them broke in future retirement.

This level of debt, which most incorrectly assume can’t be discharged in bankruptcy, is retarding household formation and robbing people of the ability to save early for retirement.

In the student loan debt situation it isn’t so easy to point a finger at a single bad guy. All cogs of the system have blame to bear in the current student loan crisis. From well intentioned parents who push their kids to go to college that probably shouldn’t, to people who think student loan debt is good debt, to colleges that charge higher and higher tuition and facilitate the loans, to incompetent servicers who give borrowers bad advice on how to deal with loan problems.

Gerri Detweiler, director of consumer education for Credit.com said, “Student loans can be incredibly confusing. Most students have a hard time keeping track of the loans they have, much less figuring out which ones are eligible for what type of relief. Add to that servicers who sometimes give flat out bad advice and it’s no surprise consumers give up or end up making bad choices.”

Curtis Arnold of CardRatings.com said, “I have three kids in college and grad school and, even though I’ve been a nationally recognized expert for 20+ yrs, I have found the student loan industry to be perplexing. There are so many types of student loans and so many changes that have occurred in the last few years, that it’s downright confusing.” The lack of clarity over student loans is why most students look to the school to facilitate the financing. Which they will gladly do.

Arnold went on to say, “I can not agree with the commonly held notion among many financial experts that student loan debt is “good debt”. In fact, I would argue in some respects, student loan debt is worse than credit card debt.” And he is right.

And the concern over student loan debt is not one for just the younger members of our population, but a growing concern for those over 50.

But a couple of recent events have made me believe a simple but easy answer to eliminate their student loan debt may exist for a vast number of federal student loan borrowers.

Recently the Department of Education brought a section of federal law to light that would allow federal loans to be eliminated if, “the borrower may assert as a defense against repayment, an act or omission of the school attended by the student that would give rise to a cause of action against the school under applicable State law.” For more information on this, click here.

And if this approach to eliminating student loan debt is successful the borrower would be eligible to receive any amount paid towards the loan and the school would have to repay the federal student loan back to the Department of Education.

In the past few weeks data on school performance has been made publicly available through two excellent websites; CollegeScoreCard.ed.gov and Propublica Debt by Degree.

The resulting set of data from those two sources is frightening.

Last week I traveled to Ball State University, after a very gracious invitation from Dan Boylan, where I spoke to a group of students about debt. As part of my presentation I took a quick look at the reported data about Ball State University and another school in the region, to compare results.

I think you would agree that the value for money Ball State University delivers is good. Their cost is below average while their graduation rates and salary after attending is higher than average.

But notice that the average national graduation rate is about 50%. That means half of students never earn the needed degree to receive the maximum benefit of enrolling in school. I’ve seen statistics that show up to 75% of people with student loan debt never graduate when you factor in all types of schools.

So the observation I think is most important from this data is it is quite possible an argument could be made that schools have unfairly misled students into federal student loans when they knew in advance they would never be able to deliver even average performance.

Let’s look at two examples that I spotted during my trip.

Ivy Tech Community College – Indianapolis, IN

Ivy Tech came to me because of some excellent advertising they were doing at the bottom of the TSA bins I had to use at the airport. The ads were bragging about the value of attending and how much it would help students towards future salaries and success. But the data reported paints a different picture.

While the average annual cost of attending Ivy Tech is much lower than average, so are the graduation rates and salary. The data reports only 9% of students graduate after six years.

But in the IVY Tech ads I saw, there certainly was not any claim that 91% of students sold into the school would not obtain the advertised benefit. – Source

Following attendance, 53% of students are not repaying their federal loans. The school made the money but the government is on the hook.

Martin University – Indianapolis, IN

Another Indianapolis area school I discovered on my travels is Martin University. Students who attend Martin University are more likely to come away with an even worse result. – Source

Martin University tells the public their mission is, “Martin University’s Vision is to be a Haven of Hope, a Community of Support, and a Premier Leader among Institutions of Higher Education.” – Source

But when it comes to the performance numbers, Martin costs much more per year than either Ball State University or Ivy Teach. According to ProPublica the total cost per year, including tuition, books, and living expenses is $22,038. Low income students paid on average $17,631.

The median level of federal student loan debt is $42,247 per student and the graduation rate is just 12%. The nonpayment rate on federal student loans is reported to be 85% and 57% of past students, six years after graduation, earn less than $25,000 per year.

The average median monthly student loan debt payment for Martin University students is reported to be $469.03 and most students pay the tuition with federal loans.

Arguments That Will be Made

Some low performing schools will make the argument that they serve a disadvantaged population that is less likely to graduate for a number of socioeconomic factors. I completely understand that position.

Other schools will say they have no control over the seriousness or ability of the students they enroll. I understand that as well.

But the reality is students and their parents are trying to make an investment in themselves and the future. Schools are encouraging students to enroll and will gladly suck in all the easy loans they can deposit from federal and private loans. Up till now, they have not been very accountable to the purchaser for delivering the product they sold.

But if a school is either not achieving the average performance of schools and does not disclose the odds are significantly not in the favor of the student, it seems boldly withholding that information is an unfair and deceptive practice. Fraud maybe?

Why would anyone enroll at the more expensive and lower performing school?

In Indiana, Martin University is not the only school facing poor performance data.

Schools like the Art Institute of Indianapolis have a much higher annual cost and average graduate salaries in the $25,200 range.

It’s not going to be long before attorneys start to see the massive patterns of performance and practices that could qualify for federal student loan discharge as explained here.

Attorney Carl E. Person seems to agree their is an issue to explore here. He said, “Students (and their guarantying parents) before starting to take the course have been defrauded by schools because they don’t tell the students and their parents that the course of instruction does not enable its graduates from the program to earn sufficient income to pay the tuition and maintain a minimum standard of living.”

Think about the situation like this, would you buy a car that only had an 11% chance of achieving the goal of getting you to work?

Some schools will say they are not selling degrees but education and a benefit is obtained by people who take any class. But that’s not what the vast majority of students hope to achieve. They don’t enroll to take a few classes and dropout. They enroll to earn a recognized degree and build a better future based on the degree. The schools should tell the students what the chance is of that actually happening before they sacrifice their financial future to some slick advertising.

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

My Car is All Worn Out. What Should I Do?

Question:

Dear Steve,

I need two new cars(used cars) but I don’t know if I should fix these old cars or trade them in and buy 2 used ones. My 2007 Kia Optima has 165K miles on it and wont pass inspection-needs catalytic converter and new tires (maybe $1500?). My ex-wife has Kia Sedona with 100K miles and needs new transmission (Maybe over $3k).

These cars are paid off and we both desperate NEED cars, more so, me. With no car loans right now, I barely pay my bills every month. And I only have a little over $2k in savings.

I also just had a car accident that was 100% their fault and received a check for $1500 for damages.

My ex-wife does not do a lot of driving but I do a ton unfortunately. Do you have some financial advice of what my best option to do is for this very stressful situation?

Thanks so much!

George

Answer:

Dear George,

Well you gave me a couple of important clues. You said you currently do not have any car payment but you are barely getting by and have little in savings. I also get the impression you are not living lavishly and don’t have much to trim in the budget.

So we have to piece together a solution that does not increase your transportation costs and still allows you to have reliable transportation. I’m not sure that’s possible.

Both of your cars seem to be cared for but have worn out critical components. When vehicles reach the end of their affordable or useful life the options are to fix them up or ditch them. They reach a point where fixing them just gets you a free membership in the Repair of the Month club.

I could not help but notice that you are trying to come up with a solution for you and your ex-wife. You know I’m pretty good at what I do but figuring out an answer for two now separate and divided households is beyond my pay grade.

I’m a big fan of buying used, rather than new cars but your situation is a bit different. In your case, with limited additional resources, I like new cars with good value and awesome warranties.

New car financing from manufacturers can be obtained with really great rates and here is how to do that. A new car will give you the financial protection from a major auto repair over the next few years. Sometimes the advice you always hear about never buying a new car just doesn’t apply to every situation.

Not long ago I actually had a chance to borrow and drive one of the least expensive cars available today. Sure, it was laughingly small but all four of us adults fit in the car and it was a surprisingly brisk ride. In fact, I even took a picture of the Chevy Spark we borrowed because it was so unusual.

The car starts at $12,170 (I know, who ever pays the base price) and the U.S. Department of Energy reports the car gets 30 MPG city and 39 MPG highway. With your insurance check in hand and your beater to trade in there might be a deal to be had on this or a similarly inexpensive car like the Nissan Versa, Mitsubishi Mirage, or Ford Fiesta.

So lets look at the costs and cost savings to see how buying you a new car might make sense and cents.

According to Fuelly.com, drivers with a 2007 Kia Optima like yours generally say their combined fuel milage is in the 28 MPG range. Real drivers in the 2015 Chevy Spark are reporting 36 MPG.

Now you say you drive a lot. In my book a lot would be 2,000 miles a month. Hey, I’ve got to use some number for the calculations. At 2,000 miles per month your Kia would burn about 71 gallons a month while a car like the Spark would burn 55 gallons. At current prices that would save you about $34 a month and if fuel prices go up the savings are even bigger.

Chevy is offering 0% financing and if you qualified your payment, based on $13,000 would be $180 a month. But really it would be $146 a month if you factored in fuel savings. You’d have to check on what your insurance cots would be.

According to Chevy, the Spark has a 2 year or 24,000 mile scheduled service program so you wouldn’t have to pay for any service for the next year or so based on your driving. It also has a 5 year or 100,000 of roadside assistance and powertrain warranty.

Look, I’m not suggesting you should blindly run out a buy a new car. But what I am suggesting is that we have to look at a solution where you are not pouring good money after bad and whatever you decide to do allows you a better chance of less transportation problems and costs moving forward.

And I’m also not saying you should buy the Chevy Spark. There are several cars to choose from in the entry level range.

While a new car does increase some of your costs it also reduces some and most importantly, gives you a better chance of having reliable transportation for a longer period of time with a manufacturer warranty to protect your financial risk of major repairs.

As far as your ex-wife goes, have her write to me and I’ll tackle her situation separately.

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If you have a credit or debt question you’d like to ask, just click here and ask away.

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

Can I Save Money Losing Weight?

Too many visits to my doctor recently have convinced me it’s time to do something about a problem I’ve ignored for years: obesity.

I’m obese — according to BMI and the medical charts at my doctor’s office, and it’s a problem I haven’t wanted to come to terms with until now. Losing weight should help solve a lot of my medical problems, and as a personal finance writer, I’m wondering if losing weight will also help me save money.

My goal is to lose 50 pounds within the next 365 days — or about a pound a week. If I get there, I’ll still be overweight, but at least I won’t be as fat and will have a better starting point to hopefully someday get to a normal weight.

Unfortunately, I’m not alone. Nearly half of U.S. adults are expected to be obese by 2040, according to a report by the Center for Retirement Research at Boston College.

Saving money with weight loss isn’t my ultimate goal, of course, but it gives me a bit more incentive and another angle to write about that readers may learn from.

While I’ve just started this year-long quest, there are some things about trying to lose weight and saving money that I’ve quickly come across, and others that I’ve researched. Here are some ways I hope to save money by losing weight:

Fewer doctor’s visits

I’ve been going to a chiropractor for years for lower back pain. He used to charge $25 per visit years ago, but that’s now up to $40. Every time I make that payment I leave his office thinking of many other ways to spend or save that $40.

I recently started lap swimming, and that $40 would almost buy a monthly pass at my local pool.

Having extra money also opens up all kinds of investment options, including building up an emergency fund and funding retirement.

Along with the chiropractor bills, there are visits to my medical doctor and my healthcare plan co-pays that add up. Throw in a prescription drug that I hope to be off after losing some weight, and I’ve got maybe $100 a month on average to either save or spend elsewhere.

A report by the Centers for Disease Control and Prevention found that people who are obese incur $1,429 more in medical costs annually than people of normal weight.

Being overweight or obese increases the risks of other medical conditions, including:

• Coronary heart disease
• Type 2 diabetes
• Cancers
• High blood pressure
• High cholesterol
• Stroke
• Sleep apnea
• Osteoarthritis

Dining out less

In search of beignets.

It can be difficult to show restraint when dining out. Waiters are pushing alcohol, appetizers, desserts and other things to eat and drink throughout a meal, providing temptation to eat more. Even if you only order a main course and drink water, it can be difficult to cut calories, though you’ll save money.

I haven’t been to the Cheesecake Factory in years, partly because its portions are so huge and calorie counts so large that it seems like the last restaurant to go to if you’re trying to eat less.

Taking home half of a restaurant meal is one way to save calories — and money if you eat them in place of a meal at home. But how often does a take-home box of restaurant food taste even half as great as it did when it was fresh?

My solution is to simply eat out less and to make more meals at home. This often requires planning, or at least making do with whatever you have in the kitchen, but I think it will lead to less calories and less money being spent dining out.

I admit this is easier said than done. Going out to eat can be a worthwhile treat after a week of meal planning and cooking at home. Someone else can do the prep work, cooking and cleaning, and a restaurant can often offer better meals than I’m capable of making — or at least dishes I haven’t considered trying to cook.

But dining out less is a goal worth trying — for my health and for my wallet.

Insurance

Life insurance companies are looking for the least amount of risk when insuring someone, and obesity is a health issue that they prefer customers not have.

Only smoking is worse than obesity for the health effects and higher life insurance costs. Stop smoking, as I’ve written elsewhere, will add more years to your life — 1.5 years for men and 1 year for women — but obesity will take away most of that gain.

Obese people who stop smoking may live longer, but the quality of life in those extra years will likely drop because they’ll have related disabilities.

High body mass index, or BMI, can by itself be enough for even an overweight person to be denied life insurance if their height and weight aren’t in good proportion. Even a few extra pounds could be expensive.

Here’s an from example from Christopher Huntley, co-founder of JRC Insurance Group: a 50-year-old man who doesn’t smoke and loses just five pounds from his current 230 pounds at 6-feet-2-inches tall could save 37 percent on a $500,000, 20-year term life insurance policy.

His annual premium would drop from $1,560 to $985 by losing five pounds before a medical exam for a life insurance application.

Earning $100,000 less

I work at home as a freelance writer, and I rarely meet clients in person. Most of my work is done online or over the phone. But I wonder, from time to time, if my obesity is enough to put a potential employer or client off.

Bias against fat people is pervasive, and overweight people earn less, are considered for a promotion less, and are less likely to be hired in the first place than non-overweight people, according to Minnesota Department of Human Rights.

Over a 40-year career, a worker who is overweight is likely to earn $100,000 less than a thinner co-worker, the department found, with women penalized more than men.

The risk of future health care costs could be one reason why employers don’t want to hire obese workers. I go on job interviews from time to time, and this is one issue I don’t want a potential employer to even think about when they look at me.

It’s time to get moving.

This article by Aaron Crowe first appeared on Add-Vodka.com and was distributed by the Personal Finance Syndication Network.

Raising Money Smart and Generous Kids

Looking to raise money smart kids who are also giving? Aja from Principles of Increase shares her experience as a mother of two kids who are both generous and self starters when it comes to money.

More Than Numbers: Helping Kids with Finances

I’m excited to share this interview with Aja about how she and her husband are building up positive money habits with their daughters.  As a mom, I’m curious to see how other families work to get ideas on how we can do a better job with our kids.

Raising Generous and Money Smart Kids

As if she didn’t have enough on her plate as a parent, Aja is active in her community and can be found teaching about personal finance, wealth building, and entrepreneurship in church, high school and business settings. She’s also the author behind Debt Free in 24 Hours. 

Some highlights and takeaways from the interview include:

• Model the behavior you want to see: While it’s good to tell your kids to budget and watch their money, lessons stick when they see you do it.
• Make talks about finances a regular thing: As the family was working towards becoming debt free the girls were surrounded with positive money talk.
• Teach about money on their level: While her daughters may have been too small to understand all of the family budget, Aja and her husband did use opportunities like visiting friends and taking care of neighbors to impart important money lessons.
• Allow your kid to find their niche: Part of life is about exploration. Aja’s girls have an entrepreneurial streak that they encourage.

Resources on Kids and Money

If you’re looking at teaching your children to be smarter and more generous with their money, here are some articles and resources to check out:

• 5 Reasons I Don’t Buy Toys for My Kids
• 5 Ways to Teach Kids Money Principles
• Tips For Giving Kids an Allowance
• The Opposite of Spoiled: Teaching Kids about Money (and More)

Thoughts on Teaching Kids to Give and Make Money

I’d love to hear from you – what lessons are you passing on to your children? How are teaching them? What money habits did you pick up as a kid?

This article by Elle Martinez first appeared on Couple Money Podcast and was distributed by the Personal Finance Syndication Network.

The Right Mindset Is In The Grey Matter

After 9 years of teaching alternative financial models I’ve discovered the critical challenge consumer’s face when trying to absorb and understand the concepts I teach; it is their mindset. If we are to learn anything new, whether it be a new golf swing or financial concept our minds need to be open to accepting something new and unfamiliar, regardless of how contrarian it might appear. If we are to allow our minds and our beliefs to accept something new we need to be in the right frame of mind. Our mindset must tell us; “listen up and pay attention, this could be good”.

Have you ever noticed how extreme we get with many of the decisions we make in our life? There seems to be no middle ground once we’ve made our decision. We tend to gravitate to and then live at the extremities of our beliefs. Our world becomes black or white; no middle ground. When our beliefs live at one end of the spectrum or another our beliefs become permanent and we tend to defend that position with all of our might. In our vane effort to protect our pride, ego or image, human nature disallows us to deviate from our decisions because deviation equates to an element of failure. This life of extremes prevails with our financial decisions, especially so when the discussion turns to our debt management decisions. In fact, when the debt discussion comes into play often time’s people will hold on to that black or white extreme like it was their first born child. The chosen methodology or strategy becomes the immovable foundation of their debt management and debt repayment strategies.

You may have heard in the past that ALL debt is bad. This is a good example of an extreme mentality. People who live at this end of the spectrum believe they are categorically correct (ALL debt is bad) and there’s nothing you can say to convince them otherwise. Do you know anyone like this? It’s hard to have a meaningful conversation with this type of person. But, if they’re extremism is so right and everyone should live to that extreme then what argument is there for millionaires who don’t have debt (consumer/installment debt), but they have mortgages? From the ‘ALL debt is bad’ extreme; are millionaires financially inept because they carry mortgage debt? Such a heavy handed stance indicates an equally extreme level of arrogance and ignorance. One of my favorite sayings is by Dr. Wayne Dwyer: “The highest form of ignorance is to reject something you know nothing about.”

I’ve heard well respected financial “guru’s” say; “any 65 year old with any mortgage debt is an idiot”. I believe anyone who makes such a statement has no compassion or understanding for the human condition. If a 65 year old has mortgage debt there is more than likely a good reason. There are 101 circumstantial reasons a 65 year old has mortgage debt, but I’m pretty sure it wasn’t in his initial financial plans. If any one consumer has mortgage debt that late in life I can promise you it was due to circumstance, whether it is planned or unplanned. The point; making that kind of extreme judgment on an individual without first learning about and understanding their human condition is appalling.

Here’s the rub; we live within and life exists between the extremes. Nothing in life resides at the extreme black or white end of the spectrum. We live in the grey matter and we continually gravitate within the shades of grey as we manage our way thru life. Take a quick inventory of your debt management beliefs. Do you live by one extreme and discount all others? Can you gravitate towards middle ground to get a better perspective of your options and how to compare the two? Mentally notate those beliefs that live at the rigid extremes and recognize their limitations. You may already exist in the grey matter with your investments. You have to do the same on the debt side of the ledger if you want better results.

When the decision process resides within the grey matter you have more clarity and it is easier to compare and contrast without extreme prejudice. When you stand right in the middle and approach life’s decisions from a balanced perspective you have an equal view of each extreme, of each argument. A balanced perspective allows new light to shine in from both sides. A clear vision of the pro’s and con’s of each precipitates a decision that fits your particular circumstance or situation as opposed to force fitting the extreme into a world it may not belong. We learned this at a very early age: don’t force the puzzle piece to fit, find the one that fits just right. To do this you have to look at all of the puzzle pieces, not just the piece in your hand.

When it comes to decisions about debt management and debt repayment force yourself to reside in the grey matter before making your decisions. Stand in the middle. Don’t be swayed by those who advise from the extremities. Look at your options without extreme influence. Recognize that extreme choices are inflexible and intolerant. Living within extreme conditions ultimately lead to limited results and limited possibilities. Stand in the middle and let some new light shine on your beliefs. With new light comes new perspective. A new perspective will present opportunities that may have not been visible from extremes.

The truth is in the proof!

This article by Bill Westrom first appeared on TruthInEquity.com and was distributed by the Personal Finance Syndication Network.

Saving with a “Salvaged Title” Car

Many families need a reliable, spacious vehicle. For many, new vehicles are unaffordable. According to Kelley Blue Book, the average cost of a 2015 vehicle is over $33k. Ouch. That’s why many are looking for affordable options. Some are considering buying a wrecked vehicle that has been repaired or can be. Prices are drastically reduced, which makes them very appealing. While it may not be an option for everyone, guidance is needed to make the safest choice possible.

Common sense tells buyers to look for light damage; however, most don’t know what should be avoided. With the right professional advice, an informed decision can be made. A professional can determine the extent of damage, needed repairs, and safety factors. Even if the vehicle has already been repaired, it should be properly inspected.

Rodney Goins of Goins Automotive in Shelby, North Carolina has been in the auto repair business for 31 years. As a body repair expert, he has extensive experience in salvage repair. He feels there are four types of damage that should be avoided: all water damage (especially salt water), cowl damage (located at front door hinges), major front-end damage (can damage sensors), and rear damage to hybrid vehicles (can damage battery). Mr. Goins advises that major frame damage should be avoided, but light frame damage can be repaired easier now than in the past. Your body repair expert can alert you to what vehicles should be avoided.

Mr. Goins says other light damage may be acceptable. Examples are light rear damage (except to hybrid vehicles) and hail damage. If you’re considering a hail-damaged vehicle, he advises to inspect for water damage. Another option is a theft recovery vehicle that has little to no damage. A professional can determine safety and extent of damage.

Choose an expert with multiple years of repair experience and favorable reviews. If you don’t know one, contact your local Better Business Bureau. Another option is to find one through social media outlets; ask others for recommendations and then follow up to meet them and inspect their backgrounds. Mr. Goins says not to "be fooled" by certifications; some only require a class and test. Instead, look for salvage experience and familiarity with state laws. Once you find a trusted professional, ask if they will inspect a damaged vehicle. If so, confirm their inspection fee. If possible, it’s best to accompany them during the inspection. This will allow time for questions and concerns to be addressed. If it passes inspection, you can then decide if it’s the right vehicle for you and your family.

If you decide on repairs, create a contract. It should outline repairs, parts, and labor costs, as well as an estimated period for completion and be signed and dated by both parties. In the event of damage or theft, confirm that the shop has insurance and include it in the contract.

Loan requirements vary, and many lending institutions don’t offer loans on salvage vehicles. April Sprague of State Employees Credit Union in Shelby, North Carolina advises that financial institutions have varying policies and procedures; it’s best to check with each one. She adds that lenders want to be helpful and may be able to offer alternate loan options if a traditional vehicle loan isn’t viable. It’s best to investigate options before a purchase is made.

It’s worth noting that title laws vary from state-to-state. For example, North Carolina requires that a repaired salvage vehicle pass an inspection by an official DMV (Department of Motor Vehicles) inspector. If it passes, a Rebuilt Title is issued and it can be returned to the road. Other states may vary, so check your local DMV for guidelines and procedures.

Many buyers have purchased salvaged vehicles with satisfactory results; two of those live in Dallas, North Carolina. Years ago, Jerry Thomas purchased a wrecked 1996 Chevrolet truck. It had light damage to the front and side. He purchased and repaired it for a fraction of the cost of a new vehicle. He felt it was one of his most reliable vehicles ever owned. He added that he later purchased other salvage vehicles with gratifying results. His friend, Ronnie Wiggins, added that one of his favorite vehicles was a 2004 Chevrolet Impala with salvage history. He also had good results and drove it for years. Both said they would purchase another salvage vehicle if the price fit their budget.

If budget restrictions hinder your vehicle purchase, a salvage vehicle may be an option. While not for all consumers, big savings are possible for those willing to take the necessary steps. By following regulations and hiring an expert, a salvage vehicle might stretch your dollars and fit your family needs.

Kelli is a freelance writer who lives on a small horse farm in the North Carolina foothills. She lives with her husband, horses, dogs, and bossy cats. Her hobby is saving money. Today she’s sharing her writing with TheDollarStretcher.com. Visit today for more on how to buy a cheap, reliable used car and buying an insurance friendly car.

This article by Kelli Clevenger first appeared on The Dollar Stretcher and was distributed by the Personal Finance Syndication Network.