Check out the 5 financial tips for the 3rd week of September 2012.

Tip no 1 – Having your home and your car insured through the same insurer might attract discounts.

You can be eligible for multiple insurance discounts by getting your home and car insured through the same insurer. Most insurers are happy to give discounts when you purchase more than 1 insurance policy from them. Believe it or not, you can save as much as 20% on your insurance costs if you purchase several policies from the same insurer. Most of the insurers offer both auto and home insurance policies. So, you won't have problem in purchasing the insurance policies. Make sure you compare the premium rates charged by several insurers. This will help to determine if you should stick to your current insurer.

Tip no 2 – Revoke ACH authorization immediately in case you find out that you borrowed from an illegal PDL.

Have you just realized that your payday loan lender is not licensed in your state? If yes, then the first thing that you should do is revoke ACH authorization. You can contact the bank to know the procedure. Once you revoke the ACH authorization, your lender will not be able to debit your checking account in future. Mean while, check how much have you paid in total on the payday loan. Calculate the original amount. If you've paid more than the principal amount, then you're not liable to make any more payments. If you haven't yet paid off the borrowed amount, then make the necessary payments via money order as soon as possible.

Tip no 3 – You can file a motion to vacate a judgment in case you have not been served properly.

Have you received a wage garnishment order recently? Did you have any prior knowledge about it? If no, then you can appeal to the court to vacate the judgment.

Usually, your creditor has to file a lawsuit against you to obtain judgment order. The court judge will issue judgment order against you after your creditor has won the case. If you're not present at the court or you don't give a reply to the summons, then the judge will issue default judgment.

You can’'t possibly know about the court hearing date if you were not served properly. If the court papers were sent at the wrong address, then it is not your fault. You can't fight the case if you don't have any knowledge about it. In such a situation, you can file a motion to vacate judgment.

Tip no 4 – In case you have already been served, you should appear in court and ask for debt validation during discovery.

If a debt collector has filed a lawsuit against you for a debt, then make sure you appear in court with your attorney. Give a proper answer to the summons and be present in the court on the given date. Ask the collection agency to prove that they own the debt during discovery. The collection agency should be able to prove that the debt is really yours. It is not so easy to validate the debt in the legal system. If the debt collector fails to prove that the debt is authentic, then the case may be dismissed altogether.

Tip no 5 – Opening an account with a credit union is a better idea than applying for a payday loan.

Credit unions are a good alternative to cash advance loans. You have to pay high very interest rates on the payday loans. You get into a vicious cycle of debt after taking out a payday loan. On the contrary, credit unions offer loans at much lower interest rates. You can borrow as much as $500 per month from a credit union. You can pay off the loan with small monthly installments.

Next time, you're facing financial problems, contact a local credit union and ask about the available options. Become a member of the credit union to take advantage of loans at affordable interest rates.