TIPS AND TRICKS FOR SAVING MONEY AND REDUCING STRESS WHEN YOU TRAVEL

If you have to travel with any type of frequency you may be all too familiar with how stressful and expensive it can be. Delayed flights, layovers, lost luggage, and screaming children can leave you wanting to pull your hair out before you even leave the tarmac. You may have found yourself asking yourself “How can I reduce stress and save money when I travel”. Fret no more! Thankfully this helpful guide will provide you with some real world tips and tricks to help you save money the next time you travel. Consider one of these great tips the next time you need to skip town.

ALWAYS BOOK YOUR RESERVATIONS AS FAR IN ADVANCE AS POSSIBLE

If you know you have a trip upcoming you are better off booking your flights as soon as you know the dates. This will ensure you get the best possible rates on your trip. If you have been booking with the airlines directly you are likely not getting the best possible deal. Instead head on over to expedia, orbitz, price line, kayak, or sixt. They usually have better deals than their competitors. They do so by buying up a huge block of reservations or tickets from the airlines and hotel industry, organizing them, and then passing the savings on to their customers. No matter where you need to go buying ahead of time is always a solid option for saving the most money.

IF AT ALL POSSIBLE AVOID TAKING ANY CHECKED BAGGAGE WITH YOU

In the early years of the airlines would take as many checked bags as you would bring with you and store them under the hull of the plane for free. Those days are over. Many airlines are charging in excess of fifty dollars per bag when you fly. The easiest way to forgo this unnecessary fee is to pack everything into your carryon bags. If you can stow it in the overhead compartment it will be free. The airline also can not lose your luggage if you don’t give them any.

 

What is the Maximum Auto Loan Interest Rate in Pennsylvania?

Pennsylvania does not have a set of usury laws like many other states. That may lead you to think that lenders are charging outlandish rates as if it were the Wild West, but the state has legislation that sets the maximum rate for cars of two years and newer at 18%.  For cars older than two years, the maximum rate is 21% for consumer vehicle financing contracts (source link). Let’s have a quick look at who may face the maximum rate, how it will affect your loan and payment, then wrap it up with a few options that you have if you are required to pay the top interest rate for an auto loan in Pennsylvania.

Who Faces the Highest Rates?

In most cases, the only borrowers who face the maximum interest rate in any state are those with bad credit. With an auto loan, general bad credit does not necessarily mean you will have to pay the maximum interest rate. Auto lenders will look specifically at your past use of car loans before assessing your exact interest rate. If you have a history of late payments on car loans or a repossession, you have a very good chance of paying the maximum interest rate possible; if your loan is approved at all. On the other hand, if you have made mistakes in every aspect of your credit except your past auto loans, you may qualify for a slightly lower-than-maximum interest rate.

Total Interest Paid and Monthly Payments

You are going to take two hits to your wallet when paying the maximum interest rate on an auto loan in Pennsylvania: total interest paid and a higher monthly payment. Let’s model a loan to show you what we mean. The loan is for $25,000 at six percent with a term of 60 months. Over the life of that loan, you will pay $3,999.20 in interest and have a monthly payment of $483.32. Looking at that same loan: if the interest rate were today’s prime rate of just 1.99 percent, you would only pay $1,285.08 in interest and the payment drops about $50 a month. Now imagine if you have to pay 21% or 18%!

Your Options

With bad credit time is on your side. Well, it is if you have stopped making credit mistakes. Late payments and repossessions fade over time. Late payments will begin to fade six months after you start making all of your payments on time. If you have stopped making late payments because you have no open credit accounts, then you are going to want to obtain a credit card to start building a positive payment history. With bad credit, you may have to find a secured card with a small limit. That will help, just be sure to avoid a pre-paid card. Pre-paid cards are not reported to the major credit agencies, so will not improve your credit. Once you have obtained your card, make your payments on time and never let the balance get higher than thirty percent of the credit limit.

Your second option is to shop your loan. Many people who have bad credit think that they have to use traditional brick-and-mortar banks. That is not true. There are many reputable auto lenders online who specialize in approving bad credit auto loans. These specialty lenders chose to operate online to keep costs down so they can offer loans to lower credit scores in the most cost effective way possible. Good luck with your search for a car loan!