15 Apr

Creative Uses of Your Economic Stimulus Check

Author: Ryan  |  Category: Uncategorized, auto, auto dealers, auto financing, auto loans, automotive news, autos, bad credit, bad credit auto loans, bad credit loans, bills, budget, budgeting, car buying advice, car buying tips, car dealers, car loans, car news, cars, credit, credit bureau, credit card debt, credit cards, credit fixing, credit news, credit repair, credit reports, debt, debt consolidation, debt relief, debt settlement, debts, economic stimulus, finances, financing, fix credit, general, how to buy a car, irs, loan, loans, monthly budget, new car buying tips, new car dealers, new car loans, new cars, news, online credit repair, online loans, payday loans, stimulus check, tax refunds, tax returns, taxes, unsecured loans, used car dealers, used car loans, used cars, vehicle financing, vehicle loans, w2

What does the government do when the economy slows down during an election year? Give money back to the hard working people of the country. Car Loans are not the only thing we could think of to spend the money on. With only a couple of weeks or so until the money starts going out, many people have already started to think about what they will do with the money. The staff at WashingtonAutoCredit.com has outlined some great ways you can spend your “free money”.

The first step is to figure out how much money you can expect. The IRS has created this handy payment calculator. We *think* we figured it out, for most people. An easier way to estimate your stimulus check is to figure the number of wage earners (1 if filing individually, and 2 if filing jointly) and multiply that number by $600. Add $300 for each dependent (child) and that is the total you *may* receive. ****SEE DISCLAIMER BELOW****
So a family of 4 with 2 kids and 2 working adults could possibly see a check of $1800…if our calculation is correct. That much money could be used for lost things with short term benefits or long term benefits. You could pay down your credit card balances. You could contribute money to your IRA. You could buy that big TV you have been looking at. The possibilities are endless.
More and more, we have been hearing people say they want to use that money to buy a new car. Many of our customers are using this stimulus injection as a second tax refund and plan on spending it the same way. Wouldn’t it be better to actually use the money toward something with more long lasting benefits? If you have bad credit, and you need the extra money to get approved for a loan to rebuild your credit, that could make sense. However, if you are just using the money to get a slightly lower car payment…don’t do it. In Washington, we find (on average) that every $500 down affects your car payment by about $10 per month. Obviously the term and interest rate can make that number higher or lower, but $10 is a decent round number.
Why blow all of your “free money” on an auto loan when it has such a small affect on the monthly payment amount? We highly recommend using the stimulus money to help with your future. That is why we came up with our top five uses of your stimulus money.
5. Pay off old bills. - There is no time like the present to pay off old collections, medical bills, credit cards and other debts.
4. Donate to Charity. - Karma can be a good thing. Giving the money to a deserving charity can be very rewarding.
3. Home Improvement. - If you own your own home, spending a little time in money in certain areas of your house can increase your homes value, and make the place more enjoyable to live in.
2. Fund your IRA. - The limit on IRA contributions went up to $5000 from $4000 this year. Might as well start contributing now.
1. Vacation. - Okay, so there are not any tangible long term effects. However, a vacation can help you relax and focus. Both of which can help you do your job better, make more money, and contribute to your bottom line.
***DISCLAIMER - The writer of this blog is in no way affiliated with the IRS and their interpretation is not a representation of the actual amount (if any) you will receive. This estimate method may be wrong. The only way to get a true estimate of your check is to use the IRS calculator.
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02 Feb

Tax Time = Car Time

Author: Ryan  |  Category: auto financing, auto loans, bad credit, bad credit auto loans, bad credit loans, bankruptcy, car buying tips, car loans, credit, financing, irs, loans, online loans, tax refunds, tax returns, taxes, w2

Get approved for an auto loan at Washingtonautocredit.com

Congratulations! Another year is behind you and another W-2 is on the way. If you have not already received your W-2, you should any day now. Employers are required to mail them by January 31st. Since millions of Americans get refunds every year, most of the people receiving the refund start planning what to do with it months ahead of time. Should you go on vacation? Payoff old bills and credit cards? Put it down on a house? Or do what thousands of people do every year and use it to help buy a car?

For millions of Americans, tax refunds represent the ONLY time every year when they will have $1,000-$3,000 (or more) at one time, in one lump sum. It is predictable and many people rely on it.

This year, do something intelligent with your tax refund: use it to better your future. Spend it on something that will give you positive long term benefits, unlike a TV, furniture, vacation, clothes, or some other quick waste of money. There are several uses of your tax refund that will help you become more financially sound.

Instead of blowing your tax refund on a senseless purchase, use your 2007 tax refund to focus on your financial well being. If you have bad credit problems, look to rebuild your credit. Developing a stronger credit history now can save you thousands of dollars in the future. One of the best ways to reestablish your credit is with an auto loan, as long as you make your payments on time. It is amazing what 12-24 months of on time auto loan payments can do to help raise your credit rating. If you are interested in applying for an auto loan on-line, try WashingtonAutoCredit.com and start building your credit right away.

Another option to improve your credit score is to use your tax refund to payoff or pay down your credit cards. Using as little as 20% of your credit limit can start to lower your score, so start by paying off your higher interest balances and then focus on paying off one card at a time. Eventually, you will have much less revolving debt and your scores should improve as your balances increase. In addition, your monthly debt payments will decrease and you will have more money to do things you like.

If you are getting a refund, you have a big decision ahead of you as you get ready to file your taxes. Make sure you think about your long term goals, and try to figure out how your refund will be able to help you achieve them.

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