There is a big difference between looking after your own finances while living alone, or with parents, and living with a partner. The transition can be very difficult, especially if both partners are strongly independent, or one partner is financially weak and the other strong. In fact, it is an area of a new relationship that has many pitfalls if you do not set the ground rules from the start.

It is best to sit down together and quietly plan your finances, even before you get married or move in together. Then, when you do so, it is important to be open with each other, and discuss what may go wrong with the domestic finances if you do not plan correctly. That way, you can work on a plan together, and a budget, and set ground rules for a smooth financial future together. It is sensible to bring the use of credit into that discussion, as there will come a time, maybe from day one, when credit cards and other forms of credit become an issue. Agreement on all relevant credit and finance issues will reduce the risk of problems, arguments and misunderstandings later on.

An early decision to make is whether to keep finances separate or not; deciding, for example, whether to have joint bank accounts or joint credit cards.

The Benefits of Joint Accounts

The advantages of consolidating funds into one current account include:

1. Easier record keeping.

2. Should you apply for a loan at any time, there will be less paperwork.

3. Working closely together on the running of the account may help to solidify the relationship and build trust. It gives an opportunity for both of you to bring out your best co-operative nature.

There is one drawback, though. With two people actively using the account, it is not so easy for you to keep track of the account transactions and balances, especially if you are both using the account a lot. This can be overcome by discussing openly all expenditure the day it happens.

The Benefits of Separate Accounts

Keeping separate accounts will allow each person in the relationship more freedom: each will not need to check with their partner over every purchase. In addition, having separate accounts may create fewer complications in the relationship. It will allow them to maintain a sense of independence, and this can be very important to some relationships.

One negative to a joint finance arrangement is that it can seem unfair. If one partner earns

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People will spend months or even years planning to buy a car. They will work hard to build good credit. They will search for just the right make and model. They will scope out the various dealers and sales staff sometimes even comparing service departments too. Then they will sign on the dotted line for the first loan the sales person offers.

What is wrong with this picture?

It is important to remember that if you have good credit then you are a dream customer to most lenders. Even if your credit is not perfect you are still an attractive client for many lenders.

Repeat this mantra whenever a lender acts as if they are doing you a favor by lending you money: I am going to give them a lot of money. Yes, you are. They can negotiate a sweet deal (sweet for them) and then turn around and sell that loan within the year and make a quick profit. Even if they don’t sell your loan they will make money off you for the next three to six years as you pay interest on your original loan. They are not giving you anything. This is a business deal and the lender stands to make a lot of money so you need to protect yourself to get the best deal you can.

While most lenders tend to make you think you should be grateful to them for taking this huge risk on you, it really is the other way around. A lender can’t lose. If you honor the deal they will make a lot of money and if you don’t honor the deal then they simply take your car back and keep the interest you paid in the meantime!

However there is an even bigger fallacy that lenders like to perpetuate. They don’t want you to know how desperate they are for your business. Look around and you will realize the truth of this. Check out the television, radio, and print ads that abound and you will see that lenders are getting pretty competitive.

That is why you simply must shop around to find the best car loan available for you. In the end you could save yourself hundreds of dollars. Here are five ways to help you find the best deal:

~ Shop around - Get quotes from various lenders. Look at local and national lenders and don’t overlook the internet.

~ Compare terms - Interest rates vary from lender to lender but lenders offer different interest rates depending on the terms of the loan. How long will it be ? How will you make payments (electronic or check)?

~ Tweak some of the optional items that you control, such as the type of insurance you will carry.

~ Adjust your down payment - Sometimes being able to increase the percentage of what you are putting down can make a difference in the lenders terms (similarly buying a less expensive car will work the same)

~ Haggle - Yes! Lenders often act as if their rates are written in stone but this is not the case. This is where shopping around can really come in handy. If you can show that you’ve got a slightly better deal with another lender then sometimes another lender will lower their rate to beat the competitor. Hey it’s worth a try and it recently worked for me!

Just remember that you are in control of your future. You can choose whether or not to accept a lender’s terms. There are a lot of lenders out there so you do not need to sign with the first offer you receive.

One last hint: It might be best to go through this process before you’ve found the car of your dreams! You can get preapproved for a car loan with many lenders and that removes the pressure and worry of losing the car of your dreams while you negotiate with a lender. It also puts you in the driver’s seat when you are negotiating to buy that dream car when you finally find it if you already have a loan ready to go.

You can find more information at Answers About Loans and Answers About Family Finance.

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You’ve been making monthly mortgage payments for so long that the checks almost write themselves.

But have you become financially complacent, failing to consider ways to decrease your payments or overall debt?

Here are 5 secrets to paying off your mortgage in the shortest possible time.

1. Get a Mortgage “Tune-Up”

You take your car to your mechanic several times a year to keep it in optimum running condition. The same principle applies to your mortgage, according to Ron Chicaferro, president of Thornburg Mortgage Home Loans, based in Santa Fe, New Mexico.

“Homeowners really need to do a mortgage ‘tune-up’ at least once a quarter,” he says. “To be a savvy homeowner today means more than just locking in a low-interest rate. Borrowers need to know if they’re paying too much for security they don’t need and if their lender is charging them unnecessary fees. When it comes to saving money, it pays to know when it’s right to refinance and to ask lenders about innovative mortgage products that can reduce monthly payments. There’s nothing like a mortgage tune-up to save homeowners cash.”

2. Pull the Switch

As interest rates rise, homeowners with adjustable-rate mortgages (ARMs)which have become increasingly popular among consumers who want to keep monthly payments lowmay want to consider switching to a fixed-rate mortgage.

“The gap between long- and short-term rates has narrowed, making even hybrid ARMswhich are fixed for an initial periodnot as good a deal as they used to be,” says Valerie Patterson, senior editor of RealEstateJournal.com. “Now is a good time for homeowners with adjustable rates to consider refinancing with a fixed-rate mortgage.”

Of course, a great deal depends on how long you plan to remain in your home, as well as the cost of refinancing, Patterson notes.

3. Trouble in Paradise?

Money problems and debt are key contributors to today’s high divorce rate, and most families take a financial hit after a couple parts company. As the lawyers jockey for position, a critical question emerges: Who gets the house? (And the mortgage payments)

“If you own a home, the mortgage is likely your most significant monthly payment,” says Brad Stroh, co-CEO of the San Mateo, California-based Freedom Financial Network, LLC, a company that specializes in debt resolution services. “Be certain you understand how you’ll resolve monthly mortgage payments and how you’ll divide the home’s valuewhether one partner buys out the other now or the home is to be sold after children are grown.”

4. The Early Bird Catches the Penalty

If you receive a sudden windfall and decide to pay off your entire mortgage earlier than planned, make sure there is no penalty for doing so. You always want to secure a mortgage that specifies there will be no penalty for paying it off early, but if you happened to miss this clause in the contractsomething you’ll definitely want to avoid in the futurethink twice before writing a check.

Speak with a certified financial plannersomeone with nothing to gain from whatever decision you maketo determine the best way to handle this situation.

5. When the Unexpected Happens
If you suddenly lose your job or suffer an illness that will create a temporary hardship, it may be difficult to keep up with mortgage payments. Protect your investmentand prevent foreclosureby working out a forbearance agreement with your lender.

“A forbearance agreement allows for a temporary change, such as loweringor, in some cases, eliminatingyour payments for a specified period of time,” says Andrew Housser, Stroh’s partner and co-CEO. “In order to agree to this, your lender must be convinced that your hardship is temporary and that you will be able to get back on track in the future. Otherwise, they may view forbearance as merely delaying the inevitable.”

Other options, according to Housser, are:

A loan modification, which serves as a permanent change in terms.

A “deed in lieu,” which lets you offer the deed to your home to prevent foreclosure.

Sale of your home.

Refinancing your mortgage for a lower interest rate or monthly payment.

Don’t make the mistake that will cost you your home: saying nothing and defaulting on payments.

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Mortgage Relief specializes in assisting Australian families with mortgages by making their monthly repayments more manageable and decreasing their overall debt and total interest paid over the life of their mortgage. Mortgage Relief is a mortgage refinance provider that it part of Australia’s largest Debt Relief

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