I Had Car Accident - What To Do Now?

You were in an accident now what. Here are some things I learned from my recent experience and reading over few things.

Is any one injured or car is blocking any traffic: Call 911. This is a commonsense thing. But what to capture it here to complete the list.

Do both parties agree about whose fault was it: If there is agreement about whose fault it is then it should be easy to get each others Drive Licence and Insurance Information.

Is it my fault: If it is my fault then I need to notify my insurance company and get the claim registers. If it is other party, then usually they will call you, but since you have gathered the information you may call them as well.

Is Car drivable: Once all the processes with Cops, Fire brigade and Insurance Company is done, move the car or get it towed.

Before Appraiser Take a look at your car: Here is very important thing. Before Appraiser from Insurance Company takes a look at your car, you may want your mechanic taking a good look at it. Get his opinion about what is the damage and whether it is worth fixing etc. This will give you a starting point with the insurance company. If mechanic thinks it is not worth fixing the car then start your research about what is the value of your car right now.

Working with Insurance Company: Once appraiser takes a look at the car, he will notify Insurance company his finding. Insurance company will contact you with the options.

1. Amount to Fix the Car.
2. Amount to Salvage the Car.
3. Amount to Buy Back the Car.

Usually it is two of the above options. Since you have already talked to your mechanic you have good idea which option to accept. And you do have idea about the value of the car as well if it needs to be salvaged.

Is it possible to Bargain with Insurance Company: Every company is different. But it is not that your hands are tied even if it was your mistake.

First get everything in written. What are they considering while offering any kind of payment options. That will be a starting point if any bargaining is needed.

1. Is it possible that insurance company did not cover all the add-on features of your car while providing Salvage Value. Then you can let them know and they should be able to work with you.
2. Insurance company may be giving you little less then market value. If you have some quotes from online agencies about value of your car, you may show them to insurance company if their price is lower.
3. Same way for fixing budget as well. If you have better quotes, you may work with them.

Rental Car: If you have rental car covered in your insurance, then you will be eligible for probably a month worth of rental. Some time insurance company will want you to start paying them as soon as they have notified you of the options available to you. You do want to ask it in written before agreeing to anything or giving away rental car.

Car Needs Fixing: If insurance company agrees to fix the car, do I have to work with same Mechanic that insurance company tells me? No I don't. I can take your car to the mechanic of your choice.

Car Needs to be totaled: If insurance company tell me to total the car. Do I have any other option? Yes, as mentioned above, you may buy back the car for fraction of the cost.

eg. They will say, if we total the car we pay you 7000 dollars. You may purchase it for about 1000 dollars(Deductible and Auction Price). ie They pay you 6000 dollars and give you the car back.

Hope this helps.

Discount Coupon and Codes

Here is collection of some websites where you can find discount coupons for every item on your list.

Electronics:

http://www.newegg.com/ - Thousands of electronic items on sale and free shipping for many of them.

Travel:
http://www.kayak.com/ - Searches for deals on at least 50 different travel websites.

Retail Stores:

Stores like Target, Macy's, JcPenney you name it. There are some stores here that I have not even heard of before !!.

http://www.couponalbum.com/
http://www.retailmenot.com/

These coupons are printable as well as they are in form of a code which can be redeemed online. And there is no registration required.

Grocery:

http://www.couponmom.com/ - Printable coupon. You do need to register though
http://www.couponclipper.com/ - You have to order the coupons. There is minor charge but it is worth it.
http://www.mygrocerydeals.com/ - List of grocery deals in your area.

Baby Items:

http://www.momsview.com/ - Baby items and lot more other coupons.

General:

www.dealcatcher.com/ - List of Daily deals as well as online discount codes.
http://www.slickdeals.com/ - List of Daily deals as well as online discount codes.
http://www.rather-be-shopping.com/ - Online discount codes as well as printable coupons for many merchants.

Get Free Credit Report and Credit Score

Traditionally people had to pay to receive their credit scores. But recently there have been some development in this area due to which we can get our credit scores for free.

1. https://www.annualcreditreport.com - This is government sanctioned website and they allow you to receive you credit report free once a year from all three credit agencies.

Myself and my family has used it and we have been able to identify some discrepancies in our credit history and have been able to get them corrected. Other people from who I have heard have also mentioned similar things.

2. www.quizzle.com - You can get your Experian score for free. I have not tried this yet, but it is on my list to try out soon. What I have heard though is that they do try to market some products to you every now and then. As long is you can stay away from purchasing the products, service for getting credit score is free.

Save on Prescriptions

We are shelling out billions of dollars on prescription drugs. A consumer survey found that as many as 30-40 percent people are skipping medication due to cost. Here are some easy way to save on prescriptions.

Choose Generic:
Most of the generic medication are almost same in strength as brand name counter parts. Thyroid and Blood thinning medications are probably something you should consider taking brand name or specifically prescribed by your physician. Else generic works just as well.

Pharmacy like wal-mart,target,Walgreen's etc are coming up with 1$ per week for generic plan. They have 100s of medicines covered under this plan.

Use Mail Order:
Mail Order might be allowed under your plan and it might cost you only a fraction.

Know your plan:
Do proper research on your drug coverage plan. Certain companies do not cover prescription allergy medication with argument that over the counter allergy medicines works equally well.

Free Samples:
Don't be ashamed to ask your doctor about free samples if needed.

Get Help:
Here are some websites with helpful resources.
http://copays.org/
http://pparx.org/ - Pharmaceutical companies helping patient with certain medicines. Check this website for Prescription Assistance Program.

Home Made Gifts - Gift Baskets

Gift Baskets can be very versatile Home Make Gifts. They can be customized to suit any taste.

Below are some of the examples of various gift baskets. And quick and easy tips about how to make them yourself. With very little effort you may turn simple and easily available items into Classy Gift Baskets.

Lets start with basic items needed to create a gift basket.

• Container - Wicker Basket,Planter,Tray etc. There is really no limit to what you may use as container. You may even use a cup or mug as a container for a small gift basket. !
• Filler Material and Shreds - To fill bottom of the basket and to put between gifts.
• Small individually wrapped gift items
• Ribbon,Bow, Gift Card
• Some small decorative items
• Cello Bags or Plastic Wrap - This wraps are not necessary but if used, they give Gift Basket very classy look.

Now simple technique to assemble the gift basket.

• If container is too deep, place some filler material like brown paper or flower foam etc.
• Place shreds between individually wrapped gift items. Use transparent tap to keep them in place. Based on the type of the gift basket different shreds might be used.
• Gifts can be purchased or even home made.
• Tie bow and small decorative items around the container to give it final touches.
• Finish off the gift basket with Cello Bag or Plastic wrap.

Enjoy.

Tips to Save More and Live Better

In this difficult economy, it is easy to get carried away and to think that you will have to give up your life style. But if you really think about it there are ways that will help you keep your life style and still save a bit for future.

1. Purchase gift cards for less and use it for yourselves !!

I just bought Talbot's gift card from http://www.plasticjungle.com/ . It was 317 dollar worth gift card and I purchased it for 219 dollars !!. ie. almost 30 % less.
You may purchase 25 dollar worth Panera Bread gift card for 20 dollar. ie. 20% less!

2. Use Coupons.

Combine cheap gift cards (as mentioned above) with coupon for the same store and you got your self a great deal. You may get stuff for almost 50% off.

http://www.coupons.com/
http://www.valpak.com/

are some great source for coupons.

3. Shop at consignment stores.

Consignment shops don't only carry used items. They carry items that department store needs to get rid of to make space for new items. Perfectly new items marked down almost 50-70% . You may find cloths,furniture, appliances , jewellery at consignment shops.

Burlington Coat Factory and SteinMart are upscale consignment stores. This is where you may purchase CalvinKlein, Donald Trump, DKNY brand clothings for at least 50% off. Sometimes even 70% off. Ross and marshalls are also simillar consignment stores. Not that upscale though. All these stores also carry wide variety of baby, maternity and house hold items as well.

You may find simillar consignment stores for furniture in your area as well.

Shop for floor models while purchasing appliances, electronics etc. They are slightly used and most of the time look new. You can easily get 20-30% off on floor models.

4. Credit Card for Cash Back

If you carry balance on your credit cards and best bet is to transfer your balance on credit cards charging low interest. If you do not carry balance then it will be good idea to use credit cards that provide cash back. Many credit cards provide cash back between 1-5%. Sometimes during some promotional period they provide even 10% cash back !

http://www.creditcards.com/ is a website that will let you compare credit cards side by side for options such a cash back, rewards, yearly fee etc. Make sure you do not use any card that charges yearly fee.

5. Brownbag at least twice a week
A family of 4 can save up to 200 dollars per month by either eating at home only twice a week or brownbagging. Eating at home/Brownbagging does not really mean you have to cook at home. You may do that, and that will save you even more. But you may just as well get frozen family meals from wholesalers like COSTCO or SAMS club. Here is the math. You spend at least 20 dollars for family of 4 every time you eat out. And this is like cheapest thing you can get. You may end up spending even more. If you get a 10 dollar worth frozen ravioli from COSTCO, it will last two times for dinner. Thus making it little over dollar per meal per person. You may add a little home made salad or soup and make it a complete meal.

Saving Money Paying Off Debt - 0% APR Balance Transfer Credit Card

How much money you are spending every month carrying balance on your credit card. I read somewhere that if you make only minimum payment it will take you at least 7 years to pay off 2000 dollars !! You are just paying interest most of the time. This money can be very well used some where else.

Monthly Payment: Pay more than minimum required payment. So that you make sure you are paying something toward bringing down principle and not just paying interest.

Balance Transfer: Using 0% APR balance transfer credit card is another good thing. Search on Internet and you will find many card with 0% Balance Transfer APR, no yearly fee and maximum 75 dollar balance transfer charge. (There are some that charge as much as 300 dollars. You do want to avoid them.) Usually they provide this rate for 6 to 12 months. Once this term ends interest rates do shoot up. You do want to make sure that this new interest rate is not higher than your current credit card. Or you may just want to move your balance on another card after the end of the free term.

We have a friend who used this card to pay off almost 10000 dollars debt without paying almost nothing in interest.

Lower Interest Rate: If have been paying regularly and not been late, you may also work with your credit card company to lower the interest rate. That could slash your interest payment as much as 50%.

Loan Modification - Frauds and Follow Ups

Since I wrote about loan modification some time back. (http://consumerzoneblog.blogspot.com/2008/10/loan-modification-reduce-monthly.html)

I was thinking should not banks be making it much easier to do loan modification? Why ? Because they want our interest money. They do not want to foreclose our house. And guess what, just some time back I saw this announcement from some of the biggest US banks.

http://money.cnn.com/2008/10/31/news/companies/jpmorgan_mortgage.ap/index.htm?postversion=2008103114

It says JP Morgan will modify mortgages. They would like to avoid foreclosures of about $70billion worth loans !!

They are going to open couple of counselling centers across the nation and provide most needed to relief to their customers . The most hurt are the customers who had ARM loans, which has adjusted to a very high APR in recent times.

So now that banks are making it easier to do Loan Modification, there is still no limit to scam artist would do to part you with your hard earned money. One simplest thing to keep in mind is, anyone offering help for upfront money are worth keeping away from. Actually better yet, just run away from them.

There is this article that talks about simple steps you may take yourself to apply for loan modification of you bank does not have any direct program.

http://www.zillow.com/blog/mortgage/2008/10/25/the-new-breed-of-scam-artists/

Income Replacement Funds for Retirees

Came across some new funds by Fidelity and Vanguard. They are in-effect Income Replacement Funds.

Here is the idea behind the funds. Once retirees give up their regular paycheck, they need to decide where the money will come for daily expenses.Also making sure their nest egg does not run out during their life time.

Fidelity is offering 14 of such funds. These funds "liquidate money" over certain schedule. Basically our savings and gain return back to us over the lifetime of the fund. There is not guarantee about how much monthly income we will receive. It would depend on performance of the portfolio in which Fidelity invests.

Here is Fidelity's page with more information on "Income Replacement Funds". They also provide a simple calculator which tells you for given investment what would be approximate monthly income.

http://personal.fidelity.com/products/funds/content/WhatYouCanBuy/income_replacement_funds_overview.shtml.cvsr

Vanguard has also come up with similar funds with little different approach. They are quite new though and at this time there is no telling how they would perform. More on them at some other time.

Loan Modification - Reduce Monthly Mortgage Payment

I just came accross this HOPE foundation browsing through some news.

"The Home Ownership Preservation Foundation" (HOPE).

This foundation helps people avoid forclosures. Their website suggests they help for free. And that they are non-profit and provides HUD approved counselors.

As per their website they do not just provide general guidance, but they also help take you action. And sooner we call them, more options we may have. They might be able to reduce mortgage payment as well as property tax.

It is worth knowing that they do not help with downpayment or mortgage. What they do it help you connect with some local non-profit resources that may be of assistance. They also have relationship with lending agencies and mortgage companies. Due to which they might be able to work out some solution with them.

Here is their website. http://www.995hope.org/

Here is their hotline. 888-995-HOPE

Home Buying (Part 4) - Home Inspection

Home inspection is very critical part of home buying process. Even though you are buying new home it is necessary to get home inspection done. Home Inspectors vary in training and type of things they inspect. It also very by states. There are websites available to find inspectors. Here are some basic things they inspect.

1. Structural System - Foundation, Grading and Damage, Roof Covering, Roof Structure and Attic,Walls, Ceillings and Floors, Doors, Windows, Fireplace and Chimney,Porches Decks and Carports.

2. Electrical System - Service entrance and Panels,Branch Circuits, Heating and Cooling equipments, Ducts and Vents

3. Plumbing System - Water supply system and fixures, Drains, Wastes and Vents, Water Heating Equipments,

4. Appliances - Dishwasher, Food Waste Disposer,Range Hood, Ranges/Ovens /Cooktops, Trash Compactor etc

There are items that may not be covered in this basic inspection.

1. Termite
2. Mold, Meldew, Fungi
3. Lead

Seperate Inspaction/Inspector may be required for above items.

Failure to fix one of the major items came out during inspection could decide whether you want to go further with the house or not.

Here is website I mentioned where you can find out home inspectors.

http://www.ashi.org/

Home Buying (Part 5) - Qualifying for a Mortgage

So our contract on the house got accepted. Inspection came out fine. Or if it had isseus, we took it back to the seller and he was able to handle it to our satisacation. So now contract is accepted by both parties. We need to decide on a closing date and get on to finding best mortgage rates. Lets see what are different morgages available.



1. 30 Year Fix - Most common one. Provides for same payment through out the life of the mortgage and minimum monthly payment. Some lenders may provide 20 or 40 year morgage too.

2. 15 Year Fix - Same as above. But since you pay off the loan in 15 years, your monthly payment will be higher, but you end up paying less interest. This type of loan might be helpful during refinancing. For example you had a 30 year loan and then after a while rates went down (usually atleast rate should go down 1 point to cover for closing costs), you have about 20 or so years left on loan, getting it refinanced for 15 year fix may keep your monthly payment almost same, yes you will finish loan soon and also pay less interest.

3. ARM (Adjustable Rate Mortgage) - This is the kind of interest rate, because of which we are in financial mess right now. Yes it does make in certain scenarios. eg. You are not planning to stay in same house for more than 4-5 years.

4. Interest Only - This is the kind of mortgage where you pay only interest during part or full mortgage term. Capital is paid off at the end of the term or at the end of predefined term.

5. Biweekely Mortgage - Could be same at 30 Year fix mortgage, but it is paid Biweekely. Hence reducing the interest greatly.

There are couple of websites that let you put your information and provided you couple of quotes.

I loved http://www.zillow.com/ the most. No personal information is required. You get you contact the lender you think is best.
Another good one is http://www.lendingtree.com/ . But here you do have to provide all personal information before you can get any quotes.

Home Buying (Part 3) - Bidding On a House

Ok so now I found the house I like and meets all or majority of the criteria thatI am looking for. What is the best way to put a offer? How do I increase my chance of my offer being accepted.


1. Market Condition - Is this a seller's market? Seller may not consider lower price than his asking price. So study market condition before putting the offer

2. Previous Sale Prices of the house - Check what was previous sale prices of the house. Determine current comparables of similar houses in same area. You agent can help you get this information. Analize cost per square footage.

3. Items you would like to stay in the house - Usually permanent fixures like dishwasher , cabinates, bathtubs stay in the house. But there could be window treatments that owner may want to take with them even though they are well fixed !! You should make list of such things and put it in the contract.

4. Items you would not want to stay in the house - Some ugly storage cabinate that must go. Put that also in the contract.

5. Offer Price - Consider house as it with items you want to stay and items that should go away and put the price you think is reasonable.

If seller does not agree with any of the above items he/she can modify the offer and can make a counter offer. This may go back and forth couple of times.

Last but not least, do not get emotionally attached to the house. Be ready for a counter offer. And keep your options open.

Home Buying (Part 2) - House Hunting

So I figured out how much I can efford on a house. Then I went on deciding what all things I should look for in a house.

1. Location - This is one big thing. I came accross some very beautiful houses, but in a rundown neighbourhood. Be sure that how much ever perfact that house is, it will lose its value very soon being in such a neighbourhood. Keep away from such houses. Do you need a public transport? Is this house close it? How about schools? Grocery stores? Hospitals?
2. Features - Look at every aspect of the house. Imagine yourself leaving in the house. Is lighting enough? Does each room have anough privacy? Is kitechen sink in right location !! Yes such little things will also become very important when you start leaving there. This is long time commitment you are making and you do not want to rush into it.
3. Lifestyle - This is again goes with features. If you need a office space or extra bedroom. Do you need a media room or a game room.
4. Size and floor plan - Decide on your needs and see how big house and what kind of floor plan you need. If have guest staying with you often, probably a two story home with master bedroom upstair and a guest bedroom with full bath downsteir will give you much needed privacy.

After deciding on my criteria for a house, here are the websites I used to search for houses.

One of the best sites I found was realtor.com

http://www.realtor.com/

Thsi site lets me search by city/zip code. What I did not though that it does not allow me to search by subdivision. We are looking for specific subdivision and we had to go by zip code and then see if house belongs in subdivision that I need.
Yes this site had biggest database of house that I could see.

There was another site.

http://www.ziprealty.com/

It it kind of similar to realtor.com but it also shows subdivision level information. (Does not let you search by it though!!) But makes it much easier to view all the specifications of the house. I kind of liked this site better than realtor.com in terms of ease of searching, but they still need to build a bigger datastore.

So after two months of search we have figured out which house we like and we are ready to put contract !! Next step -> What to make sure while bidding on a house.

Home Buying (Part 1) - How Much Can I Afford

I just went through my first home buying experince. It was an overwhelming experience. I am going to capture my experience and learning in couple of posts. My first post in this seriese is process to figure out how much I can efford. How much base price and montly installment I can efford. Also how much down payment I can efford.


(Before you decide "how much you can effod" you want to decide whether it is wroth buying or renting. I will talk about this in some other post).

Here are the tools that has helped me a great deal deciding how much I can efford.

This calculator from bankrate.com (http://www.bankrate.com/brm/calc/newhouse/calculator.asp) helps you calculate how much base price of the house you can efford. It does require you to estimate home owners insurance and property taxes, on top of all the earnings and expenses.

Here are couple of articles I used on zillow.com that got me started on home buying process.
http://www.zillow.com/wikipages/Getting-Ready-to-Buy

Starting with renting vs buying which is better, home values and credit scores which helps you decide your budget and readyness to purchase a house.

Looking at these sites and doing calculations, now that I have figured out how much I can efford, I am ready for next step. --> Home Hunting