Advertising
Advertising

6 Reasons Refinancing Your Car Make Good Financial Sense

6 Reasons Refinancing Your Car Make Good Financial Sense

When you’ve had a car for a long time, it’s almost expected that you’ll keep making the same payments you always did. Refinancing is a process that is usually associated with houses. However, refinancing your car could save you hundreds each month. It’s possible to refinance with the original loan provider but that doesn’t mean you can’t shop around before making that choice. It’s important to remember that refinancing, for homes or cars, isn’t for everyone. Before you actively seek this option, be sure to determine the value of your loan (how much you have left) and the value of your car. Here are six reasons why refinancing your car is a smart decision for you and your wallet.

1. The length of your loan is longer than five years

If your original loan is set to last longer than five years, chances are that you’ll actually be paying more interest than the principal. Refinancing may be able to reduce the length of your loan so that you pay a value closer to what you signed up for. And if it’s possible or helpful for your finances, you can refinance your loan for an even longer term to get lower payments.

Advertising

2. Your credit score has risen

Depending on what your score was when you got the car, your interest terms may not have been the best. As with most credit-related purchases, a higher credit score will get you a better interest rate. This improvement could be the difference between a few hundreds of dollars each month. You can check your credit report before applying for the refinance to see whether it’ll be worth it or not.

3. Car interest rates have fallen

As with the economy, interest rates can get really high or really low. For this, timing will be important on when you choose to refinance. If you’re unsure of what the rates look like, you can research and get the information for your local area as well as cities nationwide. This will help your decision. You can also find out the current trends so you’ll know whether to wait a while longer or act immediately.

Advertising

4. You didn’t get the lowest rate possible

Credit scores and ratings are not unchanging or permanent in any way. There are various factors that will determine whether or not your score will gain or lose points. Maybe your credit was shaky or new when you got the car. And if not that, it’s possible the economic conditions weren’t really favorable. Even worse, if you bought a new car and got talked into what sounded like a great deal by a talented salesperson, it’s worth looking into your loan terms. Time, interest rates and credit scores change. So that means you can also change the conditions of your loan to help get the most of your money.

5. You financed with the dealer where you bought the car

The rates being offered by dealers are typically higher so that they get a larger profit from each sale. So probably what they offered was a higher rate than what other lenders would give you for the same price and vehicle. If that’s the case, you can definitely seek other lenders to get a lower rate. Various banks and credit unions may offer lower rates. However, there might be a membership required before you can take advantage of their deals. Check with your own financial institution and see what they’re willing to offer you.

Advertising

6. You need to lower your monthly payments

This is one of the most common reasons why it might be time to refinance your loan. Maybe your financial situation has changed for the worse and it’s just hard to keep paying for your car. Whether it’s an employment issue or the stress of additional bills, a refinanced loan may help your monthly costs. Financial institutions are great places to seek advice on how and where to cut costs and you might be driving one. If you need to rearrange your monthly payment plan without pushing your budget to the limits, refinancing your car might be one of your best options. By using this process, you be able to reduce some of your monthly financial pressures.

Featured photo credit: 1860391 via pixabay.com

Advertising

More by this author

Sasha Brown

Seasoned Blogger

11 Obvious Signs He Wants to Marry You 11 Signs He Wants to Marry You (Even You Are at the Early Stages) 11 Must-Follow Natural Health Blogs for 2017 11 Must-Follow Natural Health Blogs for 2017 11 Tools to Help You Keep Track of Your Remote Employees 11 Tools to Help You Keep Track of Your Remote Employees 7 Ways to Effectively Cope With Emotional Stress Seven Ways to Effectively Cope with Emotional Stress 10 amazon review sites that will get you really good deals 10 Amazon Review Sites That Will Get You Really Good Deals

Trending in Lifestyle

1 20 Time Management Tips to Super Boost Your Productivity 2 30 Fun Things to Do at Home 3 10 Things Only Those Who Travel With Friends Understand 4 20 Creative Ways To Say Thank You 5 Expert Advice That Will Teach You How to Increase Your Metabolism

Read Next

Advertising
Advertising
Advertising

Last Updated on November 19, 2019

20 Time Management Tips to Super Boost Your Productivity

20 Time Management Tips to Super Boost Your Productivity

Are you usually punctual or late? Do you finish things within the time you stipulate? Do you hand in your reports/work on time? Are you able to accomplish what you want to do before deadlines? Are you a good time manager?

If your answer is “no” to any of the questions above, that means you’re not managing your time as well as you want. Here are 20 time management tips to help you manage time better:

1. Create a Daily Plan

Plan your day before it unfolds. Do it in the morning or even better, the night before you sleep. The plan gives you a good overview of how the day will pan out. That way, you don’t get caught off guard. Your job for the day is to stick to the plan as best as possible.

2. Peg a Time Limit to Each Task

Be clear that you need to finish X task by 10am, Y task by 3pm, and Z item by 5:30pm. This prevents your work from dragging on and eating into time reserved for other activities.

3. Use a Calendar

Having a calendar is the most fundamental step to managing your daily activities. If you use outlook or lotus notes, calendar come as part of your mailing software.

I use it. It’s even better if you can sync your calendar to your mobile phone and other hardwares you use – that way, you can access your schedule no matter where you are. Here’re the 10 Best Calendar Apps to Stay on Track .

Find out more tips about how to use calendar for better time management here: How to Use a Calendar to Create Time and Space

4. Use an Organizer

An organizer helps you to be on top of everything in your life. It’s your central tool to organize information, to-do lists, projects, and other miscellaneous items.

These Top 15 Time Management Apps and Tools can help you organize better, pick one that fits your needs.

Advertising

5. Know Your Deadlines

When do you need to finish your tasks? Mark the deadlines out clearly in your calendar and organizer so you know when you need to finish them.

But make sure you don’t make these 10 Common Mistakes When Setting Deadlines.

6. Learn to Say “No”

Don’t take on more than you can handle. For the distractions that come in when you’re doing other things, give a firm no. Or defer it to a later period.

Leo Babauta, the founder of Zen Habits has some great insights on how to say no: The Gentle Art of Saying No

7. Target to Be Early

When you target to be on time, you’ll either be on time or late. Most of the times you’ll be late. However, if you target to be early, you’ll most likely be on time.

For appointments, strive to be early. For your deadlines, submit them earlier than required.

Learn from these tips about how to prepare yourself to be early, instead of just in time.

8. Time Box Your Activities

This means restricting your work to X amount of time. Why time boxing is good for you? Here’re 10 reasons why you should start time-boxing.

You can also read more about how to do time boxing here: #5 of 13 Strategies To Jumpstart Your Productivity.

Advertising

9. Have a Clock Visibly Placed Before You

Sometimes we are so engrossed in our work that we lose track of time. Having a huge clock in front of you will keep you aware of the time at the moment.

10. Set Reminders 15 Minutes Before

Most calendars have a reminder function. If you have an important meeting to attend, set that alarm 15 minutes before.

You can learn more about how reminders help you remember everything in this article: The Importance of Reminders (And How to Make a Reminder That Works)

11. Focus

Are you multi-tasking so much that you’re just not getting anything done? If so, focus on just one key task at one time. Multitasking is bad for you.

Close off all the applications you aren’t using. Close off the tabs in your browser that are taking away your attention. Focus solely on what you’re doing. You’ll be more efficient that way.

Lifehack’s CEO has written a definitive guide on how to focus, learn the tips: How to Focus and Maximize Your Productivity (the Definitive Guide)

12. Block out Distractions

What’s distracting you in your work? Instant messages? Phone ringing? Text messages popping in?

I hardly ever use chat nowadays. The only times when I log on is when I’m not intending to do any work. Otherwise it gets very distracting.

When I’m doing important work, I also switch off my phone. Calls during this time are recorded and I contact them afterward if it’s something important. This helps me concentrate better.

Advertising

Find more tips on how to minimize distractions to achieve more in How to Minimize Distraction to Get Things Done

13. Track Your Time Spent

When you start to track your time, you’re more aware of how you spend your time. For example, you can set a simple countdown timer to make sure that you finish a task within a period of time, say 30 minutes or 1 hour. The time pressure can push you to stay focused and work more efficiently.

You can find more time tracking apps here and pick one that works for you.

14. Don’t Fuss About Unimportant Details

You’re never get everything done in exactly the way you want. Trying to do so is being ineffective.

Trying to be perfect does you more harm than good, learn here about how perfectionism kills your productivity and how to ditch the perfectionism mindset.

15. Prioritize

Since you can’t do everything, learn to prioritize the important and let go of the rest.

Apply the 80/20 principle which is a key principle in prioritization. You can also take up this technique to prioritize everything on your plate: How to Prioritize Right in 10 Minutes and Work 10X Faster

16. Delegate

If there are things that can be better done by others or things that are not so important, consider delegating. This takes a load off and you can focus on the important tasks.

When you delegate some of your work, you free up your time and achieve more. Learn about how to effectively delegate works in this guide: How to Delegate Work (the Definitive Guide for Successful Leaders)

Advertising

17. Batch Similar Tasks Together

For related work, batch them together.

For example, my work can be categorized into these core groups:

  1. writing (articles, my upcoming book)
  2. coaching
  3. workshop development
  4. business development
  5. administrative

I batch all the related tasks together so there’s synergy. If I need to make calls, I allocate a time slot to make all my calls. It really streamlines the process.

18. Eliminate Your Time Wasters

What takes your time away your work? Facebook? Twitter? Email checking? Stop checking them so often.

One thing you can do is make it hard to check them – remove them from your browser quick links / bookmarks and stuff them in a hard to access bookmarks folder. Replace your browser bookmarks with important work-related sites.

While you’ll still checking FB/Twitter no doubt, you’ll find it’s a lower frequency than before.

19. Cut off When You Need To

The number one reason why things overrun is because you don’t cut off when you have to.

Don’t be afraid to intercept in meetings or draw a line to cut-off. Otherwise, there’s never going to be an end and you’ll just eat into the time for later.

20. Leave Buffer Time In-Between

Don’t pack everything closely together. Leave a 5-10 minute buffer time in between each tasks. This helps you wrap up the previous task and start off on the next one.

More Time Management Techniques

Featured photo credit: Unsplash via unsplash.com

Read Next