Money Smart Genie

MONEY BLOG: it is not about how much money you have, but how you manage your money.


Leave a comment

MORTGAGE APPLICATION REQUIREMENTS: Latest update

I have been in contact with the few mortgage advisors and numerous developers and I would like some tips I got directly from them:

  • Lender will be most interested to check how you manage your finance in the last 3 months;
  • You can borrow maximum of 4.5 x your salary to purchase a property;
  • Not every mortgage lender will take into account your outstanding debts;
  • Cash deposit is the king when it comes to mortgages.

Mortgage

CONCLUSION:

  • Save as much as you can for your deposit – if your salary x 4.5 plus minimum 5% deposit does not cover the purchase cost, the only option for you is to increase the amount of deposit.
  • Be on your best behaviour in the last 3 months before you decide to apply for mortgage.
  • Having debts is not the end of the world but it always advisable to have less debts.

MORTGAGE ON YOUR MIND? MORE HELPFUL BLOG POST ARE COMING SOON! SUBSCRIBE!!!


Leave a comment

HOW I STOPPED ‘BARCLAYS CARD’ PRE-APPROVED CREDIT CARD APPLICATION LETTERS

I just want to express mine, as a person, concerns over 2 letters for pre-approved credit card application from BarclaysCard in the last month. 2 LETTERS IN ONE MONTH. 

When I have received a 2nd letter, I have decided to take an action to stop these letters.

Firstly, I went on Barclays website and started LiveChat. I was asked to call BarclaysCard call centre.

Then when I got through to someone on the phone, I was told they will put me through marketing department in order to stop those letters.

During my conversation with one of the customer service executives in the marketing department, I was told that they cannot locate my ‘profile’ therefore they will have to create one in order to help with my query.

I told advisor on the phone, that I am concerned where their company – Barclays Card – got my details. He said it is quite normal as ALL BANKS ARE SHARING THEIR CUSTOMERS DATA WITH OTHER BANKS. Really?

I was asked questions such as address, my name and surname – these were details that I have agreed to provide.

I refused to give them my date of birth – I told them to make one up, as all I wanted was to stop marketing letters to my address under my name and my real date of birth would not make a difference.

It took me 21 min 07 seconds on the phone to BarcalsyCard customer services + waiting time on LiveChat to stop marketing.

I hope I won’t be receiving their marking letters which apparently are send out on monthly basis. And if I ever will want to get their credit card, I will certainly do that myself.

I LEARNED SOMETHING NEW!

Gitana


Leave a comment

WORK OUT YOUR MONTHLY BUDGET IN 7 DAYS

1. List your Income: salary/or salaries if have second job, interest on your savings.

2. List all of your Direct Debits: the amounts and the dates it comes out of your account.

3. List bills, debts payments (if not included in Direct Debits).

4. Your income – spending = money leftovers.

5. Set a budget for main expenses: food, travel/car etc.

6. Everything that is left after these expenses, use to pay your debts or put into savings.

7. Predict your expenses: use the budget to make whole list of possible expenses for next month, so you know how much you will have to which expenses before you get paid.

NOW THAT YOU WORK OUT YOUR BUDGET, YOU ARE IN CONTROL OF YOUR EXPENSES.


Leave a comment

25 ‘Get out Of Debts’ Tips

25 Get Out Of Debt Tips is also available in PDF file.

  1. Savings – Debts = Real Money You Owe
  2. List all your ‘Debts’: loans, credit cards, mortgage etc.
  3. List minimum payments you have to make weekly/monthly on you debts.
  4. Make a list of days when you make payments.
  5. Set up direct debits and ensure that you have money in your account on listed days to make debt payment and to avoid bank charges.
  6. Review your bank and credit card statement and see which payment you could cancel or avoid paying: Cancel unnecessary direct debits, memberships,
  7. If have more than 1 debt – use Snowball Method to repay debts.
  8. Switch from ‘Phone Contract’ to ‘Pay-As-You-Go’.
  9. Stop borrow money to buy things. If you can’t afford to buy something without borrowing – getting a loan or using a credit card – DON’T BUY IT.
  10. Pay back your debts above minimum payment.
  11. Credit card – is not your money.
  12. Your lender will see you reaching your credit limit as a poor money management and it will probably will affect your credit score.
  13. Stay below 50% of available credit.
  14. Keep only 1 credit card.
  15. Avoid eating out – cook at home instead.
  16. Start paying with cash/debit card.
  17. The less debt you have, the more you can save.
  18. Built credit score & avoid getting into debt by paying off your credit card balance every month.
  19. Set a budget: know how much money you will spend on your debts, food, bills, car/travel. Anything that is left use for paying off your debts.
  20. Download app on your phone or tablet and keep debt details up-to-date.
  21. Keep a spreadsheet of your balance=savings-debts.
  22. Being debt-free is an achievement, so be proud of yourself and make sure you will never be in the same position again.
  23. Set goals: calculate how long it may take to repay debts with using money you can set aside every month.
  24. Pay on time and if you can’t, call your lender.
  25. Read lender’s ‘Terms & Conditions’.

FEELS GOOD TO BE DEBT-FREE


Leave a comment

WHAT IS A ‘CREDIT SCORE’?

  •  Everytime you attempt to apply for credit product, the lender will assist a risk of lending money to you.
  • credit scoreCredit Score is your creditworthiness.
  • Higher credit score lowers lending risk: people with a high score are more likely to be granted credit at better rates.
  • Credit score predicts your future behaviour based on your past borrowing data.
  • Poor credit history is just as bad as little credit history.
  • To build good credit score is to be responsible with credit.

NOW YOU KNOW!


Leave a comment

HOW TO STOP BORROWING MONEY?

  1. Hide your credit cards.
  2. Start paying with cash/debit card.
  3. Everytime you have an urge to buy, keep asking yourself:’Do I need this? Do I need this?’. And if you have slightest doubt, run out from that shop as fast as you can and go home. Avoid urge of buying what you don’t need. Avoid going to place where you know you will have to spend money.
  4. Do it for 1 week, and then continue for another week and that’s it – you have a new habit of paying for your purchasing without borrowing money.

HOW PROUD ARE YOU RIGHT NOW?