Top 5 Methods to Manage Your Home Equity
January 23, 2008
As your home appreciates in value, you gain equity. You can look at this equity, as a portion of the value of your home, which becomes an asset that is not burdened by debt. Therefore, this is a critical financial vehicle that cannot be ignored.
Let me say it another way. For most of us, your home Equity is likely to be, the primary, unencumbered assets of your own, personal estate.
Here are several things to consider, when managing this critical financial leverage:
1. Retirement
2. Debt Consolidation
3. Home Improvements
4. Equity Lines of Credit
5. Other
1. Retirement:
Personally, I hate debt. I absolutely, positively, detest debt. I do everything in my power to completely eliminate it from my life. Therefore, this first method is my own, personal favorite.
a) Leave it alone. Ignore it. Pretend it’s not there. Forget about it. Live life as if it did not exist.
b) The equity in your home can become an absolutely essential cog in the wheel of your retirement. But in order for it to work its magic, you need to allow it to build and grow, and avoid all temptation to tap into it.
Clean Credit Report: Easily Raise Your Credit Score 100 points
January 22, 2008
Clean Credit Reports, your credit report contains information about where you work, live and how you pay your bills (On time or not). It also may show whether you’ve been sued, arrested or have filed for bankruptcy with in the last 10 years. Companies called consumer reporting agencies (cra) or credit bureaus compile and sell your credit report to businesses all over the world.
Clean Credit Reports, many financial advisors suggest that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you’re considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process, clean credit is a must.
Because businesses use this information to evaluate your applications for credit, insurance, employment, and other purposes allowed by the Fair Credit Reporting Act (FCRA), it’s important that the information in your report is complete and accurate.
Whenever you apply for any type of credit or financing, a credit report is pulled from at least one of the three major credit bureaus. You want a clean credit report to be pulled. While there are hundreds of smaller credit bureaus around the country, virtually every credit bureau is affiliated with either Experian, Trans Union, or Equifax.
The Benefits of Banking Online
January 21, 2008
How many drawers did you have to look through to find a bank statement the last time you needed one? Chances are you did not lay your hands on it as readily as you would have liked. If that is a familiar scenario in your home, help has arrived in the form of online banking. Even if you are among the most organized, online banking offers convenience you can’t beat.
Consider online banking with your credit union for instant organization and access to all of your account information. With online banking, information about deposits, payments, statements, and all transactions is immediately available with only a few key strokes 24 hours every day.
Use online banking to pay your bills, transfer money between accounts and monitor your spending. When you pay your bills online you will need to take 15-30 minutes to set up your vendors (lists of payees, addresses, account numbers, etc.) after that, it takes mere seconds to set up a bill payment. You can opt for automatic payments on a date of your choosing or you can point and click each month. Bills paid via online banking arrive at their destination in as few as two days. You don’t need stamps, envelopes or even a pen. Best of all, online banking compiles and allows you to access your payment history for every vendor on your payee list.
Loan Basics
January 20, 2008
There is more than one type of loan. Depending upon your situation, you might find that what works in one circumstance does not work in another. This means that it is very important for you to educate yourself about different kinds of loans so that you are more prepared when you speak with a lending officer, or with a financial counselor. It is especially important that you understand what the different sorts of loans entail so that you are not pushed into making a wrong decision by a lender that is more interested in a percentage rather than your financial well being.
Understanding the difference between a secured loan and an unsecured loan.
At their very basic, loans come in two kinds: secured and unsecured. Whether you are looking into business loans or personal loans, they will either be secured or unsecured. Credit cards, which are basically consumer loans, are also denoted with these names. However, you will find that most credit cards are unsecured, unless they have a very high limit.
Buying a Home when Rates go Up
January 20, 2008
Many people fret the rising tide of interest rates. You’ll hear things like, "Did I miss the boat? Is it too expensive now to buy a home? How can I afford the house of my dreams? Maybe I should wait! Maybe I should just rent for a while! Maybe the rates will go down in a few weeks. "
Stop! Nonsense, I say!
I bought my first home at close to 9%. Buyers from the 80’s told me I was getting in at a bargain, and anyway, who cares? I don’t. I refinanced long, long, long ago. 9% is just a part of history now.
So, here’s 5 important points you need to keep in mind, when the ebb and flow of interest rates, ebbs up, more than it flows down?
1. There’s no better time, then NOW!
2. Long Term Investing
3. Creative Financing
4. Uncreative Financing
5. Buying a Home when Rates go Down
1. There’s no better time, then NOW!:
I know it sounds cliché, but it’s true. There’s no better time to buy, then now. Why?
Creating A Realistic Budget
January 19, 2008
Budgeting — ooh, what a scary word! If you want to frighten someone whose finances are out of control, suggest that they tally up their expenses on a piece of paper. We all understand the value of such an exercise, but when it comes to the practicality of putting a budget together, we get cold feet. Budgeting doesn’t have to be so painful, when you have a systematic series of steps to follow.
SET YOUR FINANCIAL GOALS
As with any other area of your life, it’s pointless to start down a financial path if you don’t you have some idea of where you want to end up. What is your REASON for creating a budget? Do you want to pay off your debts? Save for your kids’ college education? Put money away for retirement? Make a list of your financial goals for the next 6 months, year, 5 years, 10, 25 — all the way through to old age. And don’t spend a lot of time worrying about feasibility — if your goal is to be debt free in a year, don’t think about all of the reasons why you won’t be able to make it by that deadline. Just remember, where there’s a will, there’s a way!
Choosing A New Credit Card
January 18, 2008
1. Choosing A new credit card
There are many reasons for choosing a new credit card.
It may be your first card or you may wish to reduce the amount of interest you’re paying each month or if you’re lucky enough to pay off your balance each month you may wish to take advantage of one of the many reward schemes around.
To help you choose we have compiled a set of questions and answers. One thing to consider is that you need more than one new card. For example if you have an outstanding balance and use still make purchases you should consider switching to a balance transfer card for the outstanding balance and a seperate card for the ongoing purchases. This is provided you pay off the ongoing purchases of course.
2. What To Ask - Standard Questions
Scenario : You pay off your existing balance each month Solution : Choose a reward scheme card. These will either pay be cash or may be points that can be used to purchase certain products.
How To Save Hundreds A Month On Your Mortgage
January 17, 2008
When it comes to American spending habits, the sad truth is that most people don’t put their financial assets to the best use. One of the greatest examples of this is the home mortgage. Surprisingly, most people fail to educate themselves about the dangers and the pitfalls of not shopping for the best mortgage. Worst still, many have not taken advantage of low interest rates that could save them hundreds of dollars a month.
In addition to saving large sums of money every month, the homeowner in question would save thousands overall on the standard 30 year mortgage. This is before other cost saving measures such cutting unnecessary services, refinancing a car loan, paying off credit cards (to end the high cost of monthly double digit interest) and changing spending habits. The power of such a rate reduction could be used by millions of American homeowners to reduce debt, invest in retirement, or to simply put money away for an emergency. It is amazing that so many still neglect to utilize these powerful and straightforward techniques.
What Is A Payment Protection Plan?
January 16, 2008
A Payment Protection Plan is an insurance cover you would normally take out when you apply for a loan in order to have peace of mind because no matter how healthy you feel today, nobody knows what lies round the corner tomorrow. Nobody is immune from unemployment or illness, which is why Payment Protection Plans are offered as a means of protecting loan payments.
Payment Protection Plan cover can be added to your loan giving you peace of mind and security of knowing that - in the event of any unforeseen circumstances - your financial commitments are protected.
Each month you will be asked to make a small additional insurance payment. This extra payment will be included with your loan repayment. This small amount paid will ensure that if you lost your job, became ill, or unexpectedly pass away your loan repayments will be paid for you. If the unthinkable happens and you die before your loan has been fully repaid rest assured that the Payment Protection Plan will cover the outstanding balance of your loan. Your family will not be left to repay it for you.
Your Credit Rating and How To Check It
January 15, 2008
There is a lot of confusion surrounding UK credit ratings, credit scores, credit blacklists, credit reports, and credit files. This guide to your credit rating aims to give you the facts you need.
What’s in a Credit File
There are two major credit reference agencies in the UK, Equifax and Experian, who maintain credit files on virtually every adult in the country.
Almost all companies that give you credit terms will supply information to one or both of these two credit agencies.
Therefore, your credit file is likely to contain information on all your existing credit and loan arrangements, such as personal loans, mortgages, credit and store cards, bank accounts, etc. In addition, your credit record will contain information on any late or missed payments and the amount of the original debt still outstanding.
The credit reference agency files also contain electoral roll information for your address and court records relating to you. It is this information which allows prospective lenders to confirm your address and also see if you have any outstanding CCJs (County Court Judgements).
