Pay Off Debt Now: 5 Steps To Getting Your Finances in Order
June 30, 2007
In our world of dizzying change, nothing is more true than the time honored statement that circumstances always change.
No where is this more true than with financial issues.
Have you ever borrowed money, or charged up the VISA card at Christmas, all the while telling yourself that you would pay everything off with a coming tax refund or bonus?
Sound familiar. And then what happens when the bonus money arrives?
Let me guess?.circumstances changed, the car needed brakes (or the kids needed braces, etc), and the VISA debt and interest charges keeps piling up.
Unless you have a plan, you will always be caught in the unpredictable grip of "changing circumstances."
This is a slippery slope that can very quickly become serious financial stress. Consider the fact that Americans are declaring bankruptcy at record rates. One in every 100 families is affected by a bankruptcy.
I was on this slope 10 years ago. Declaring personal bankruptcy and filing for divorce went hand in hand.
One of the most insightful moments of the process was preparing a written log for the trustee of all of our spending for the 5 years leading up to bankruptcy.
How To Get a Mortgage If Youre Self-Employed
June 29, 2007
If you are self-employed, work on a contract basis, or have an income that is irregular or comes from multiple sources, it will generally be harder for you to get a mortgage than it is for someone who is an employee and can easily prove their income.
A self-employed person is someone who runs their own business and works for themselves without an employer. Directors of small limited companies, although technically employed on a PAYE basis, will generally be classed as self employed when it comes to applying for a mortgage or remortgage.
With over three million self-employed individuals in the UK, the attitude of many mortgage lenders towards the self-employed population is a problem that can affect a large number of people, even though many self-employed people often earn more than a lot of salaried workers.
The problem stems from the fact that the majority of mainstream mortgage lenders require proof of income when assessing a mortgage or remortgage application. Employed people can use their payslips and P60 as proof of salary, but there is no such straightforward equivalent if you are self-employed.
Why Student Loans are Better Than Credit Cards
June 29, 2007
You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options ?
-With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.
-With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.
-With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.
This is not to say that credit cards do not have a place in your college life. It is good to have one national card (Visa, MasterCard, Discover) on hand to help you build a positive credit history and to provide security in emergencies. When you decide to apply for a card, compare annual fees, interest rates, and introductory offers. And to keep yourself out of debt, try to-
10 Step Credit Repair Guide
June 28, 2007
The process of clearing credit can be laborious and frustrating, but your efforts will be paid for in better financing. Your rights are protected by laws, but you need to take reasonable actions toward your goal of clearing credit discrepancies. You can get the credit reporting agencies to help you instead of hindering your excellent credit quest with these tips.
1. Order credit reports.
2. Check for discrepancies.
3. Note problems and discrepancies in your Credit Dispute Log.
4. Contact disputed companies by telephone. (Contact original debtors, not collectors.)
Log the telephone call with a brief summary of agreements.
Remember to record the name of the contact representative.
5. Follow up with certified letter to original company.
6. Write letters to collectors, dispute bill, send documentation of payment to original company.
7. Fill out dispute form provided by credit bureau.
8. Write separate letter for each disputed item to credit bureaus.
Send letters by certified mail.
Enclose copies of supporting documentation.
9. Use the number provided by the credit bureau and call for progress; have your reference number handy.
10. Keep comprehensive records in your Credit File.
How to Draw a Personal Budget that Works
June 27, 2007
Many people spend their little income haphazardly without any planning and end up getting broke before month-end. They then borrow to make ends meet and end up with more problems that they fail to repay their debts promptly.
However, this is not a prudent way of managing your personal financial affairs. Planning your personal financial affairs through prioritization of needs and budgeting income and expenses is the best way to achieving success in managing your financial affairs.
It is important first to assess your financial needs in the short, medium and long term. What are your financial objectives? What do you want to achieve in the course of time? Do you have any targets? What is your short, medium and long term needs? List all of them down.
Next categorize income and expenses on a monthly basis. Then prioritize expenses into most important, important and most important. You can use any other weighting or prioritization formula that works best for you.
After this assess costs based on consumption per month. Put figures to the expense items. Then write down your income sources and the amount you earn per month from them. List the income on the left and the expenses on the right. Add up income amounts against expense amounts and find the difference to determine surplus or deficit.
Mortgage Basics for First Time Home Buyers
June 26, 2007
Anyone planning to take out a mortgage for the first time will most likely find the job a little daunting, not least because the financial jargon can often be very difficult to make sense of. As with any major financial decision, it is essential to fully understand every aspect of a mortgage plan before making a commitment. It’s also vital to simply do the math, to calculate exactly how much each type of mortgage will cost for the overall life of the loan, how long it will take to repay, and what the monthly repayments will be. Buyers would be wise to make the financial calculations before choosing a home, to get a clear picture of exactly how much home they can really afford to buy. More information is available at http://www.money-smash.com
One of the most important decisions to make is choosing the term of the mortgage. Most fixed term mortgage plans work on either a 15 or a 30 year period. Generally speaking, a 15 year plan means the monthly repayments will be higher, but less interest is paid over the long term, so often the mortgage will work out cheaper over the life of the loan. A 30 year plan will normally mean more interest in the long term, but the monthly repayments will be lower, which may mean the borrower can afford to buy a more expensive home.
What You Should Know About Home Equity Loans
June 25, 2007
A home equity loan is essentially a type of second mortgage. You’ll be borrowing money against the value of your home. This carries risk, but can be worth it in the end if you know what you’re doing.
The most common type of home equity loan is a “closed end” home equity loan. This type of loan essentially allows you to borrow a certain amount of money against the value of your home. You cannot borrow more money on the same equity loan, so if you need more money later, you’ll have to try and take out another loan.
Most people find that getting a home equity loan can go a long way toward helping them to get out of debt. Since you’re borrowing money against your house, there is a greater chance that you’ll end up with a lower interest rate than you’re used to. This will probably result in a much lower monthly payment than most other loans.
One reason to get a home equity loan is if you are in a lot of debt and have several high interest payments to make each month. If you can get enough money in an equity loan to pay off your other debts, you’ll be able to effectively consolidate all of your debt into one low monthly payment.
14 Common Credit Mistakes
June 24, 2007
Establishing credit and wisely managing your credit becomes easier when you know how. You’ll feel empowered by taking knowledgeable steps towards good credit, and you’ll be on your way to purchasing real estate and greater financial freedom.
If you plan to finance real estate, either as a home buyer or an investor, avoiding these common credit mistakes will help you with your credit score and save you money in loan costs.
14 Common Credit Mistakes
1. Using expensive or undesirable types of credit costs too much and is negatively scored.
2. Accumulating too many lines of credit or too many credit cards causes credit report remarks like “too much consumer credit.”
3. Only paying the minimum due keeps balances too high.
4. Being maxed out on any credit card or line of credit causes deep drops in scores.
5. Taking cash advances costs higher interest and extra fees.
6. Exceeding limit and having to pay over-limit fees is a negative with creditors and causes “high proportional amounts owed” remarks on credit reports and subtracts credit score points.
7. Paying a day or more late causes unnecessary late fees and often increases interest rates.
Dont Let The Good Times Bury You
June 24, 2007
It is vital to get rid of debt while things are going well. Yet the opposite is usually the case. Human nature is such that when we find ourselves living in good times, we let down our defenses. With our lives going great we seem to make the worst decisions. It’s not hard to understand why this happens. We believe things will always be better in the future, "When I’m done with school, When I get a better paying job, I’m sure I will get that promotion."
With this attitude, that extra lump sum of money, or the raise at work, is used as a springboard to increase your personal debt. After all you can now afford better this, bigger that. You assume in your linear view of life that tomorrow will take care of everything. You don’t become concerned with your debt load, until you no longer can make the payments.
When you begin to feel the squeeze of debt, you want some quick fix to get you out of trouble. Unfortunately there are no quick fixes for debt that will leave you (or your credit report) unscarred.
How a Commercial Mortgage Can Help Your Business
June 23, 2007
A commercial mortgage or commercial remortgage is a business loan which is secured against a commercial property.
Commercial mortgages are often used to buy business premises, such as offices, shops, restaurants, or pubs.
But they can also be used to buy other business assets such as plant or machinery.
As well as being a useful way of financing the purchase of business premises for a new business, commercial mortgages can also be an excellent way of funding the expansion of an existing business.
A commercial mortgage can also be used to fund investment in land or property which will be used for commercial purposes.
A commercial mortgage can be used to buy most types of commercial buildings, such as shops and offices, for both new and existing businesses.
The interest rates on commercial mortgages tend to be lower than the interest rates on unsecured business loans and the repayment terms are usually longer. This makes them useful for all sorts of business financing requirements.
What About a Remortgage?
If you already have a commercial mortgage on your company’s business premises, you might find you could benefit from remortgaging.
