FINANCIAL HOUSEKEEPING | Disaster-proof your finances
In addition to steps you take to protect your family from catastrophe, consumers should make sure their finances don’t get washed away by disaster too. Unlike much disaster-planning, the financial steps are tough to do at the last minute.
Experts suggest starting with an insurance review to see what’s covered by your homeowner’s and renter’s coverage. Call your agent about flood or earthquake insurance if they are appropriate for your area, and make sure your coverage is up to date with inflation and the value of your possessions.
Next, inventory those possessions, either on video or on paper. Gather your key documents; while originals belong in a safe-deposit box, copies belong in a small “evacuation box.” Finally, top that box off with some petty cash, and you will be better prepared to deal with whatever nature throws at you.
SHORT COURSE | Dealer financing
Sometimes called “on-site financing,” this is financing typically on a car, but sometimes on big-ticket items that is purchased directly from the seller, rather than from a bank, credit union or other financial institution.
The consumer enters a contract with the seller to pay the amount financed at a set rate over an agreed-upon length of time.
While this functionally is just a loan from a different source, consumers should look to see the “dealer finance income,” the chunk of the finance charge that is paid to or retained by the dealer as compensation. Dealer finance income is sometimes referred to as dealer reserve; in some cases, this charge will push the total effective annual percentage rate on the financing higher than what might be available from a bank.
