Discover Debt Freedom!

Get Out of Debt and into Wealth

Archive for August, 2012

Why Is It Important To Set Financial Goals?

Written by Toi Williams on Aug 31st, 2012 | Filed under: mindset

Saving money is as much psychological as physical.  Learning to save money is about creating good habits and breaking bad habits that cost us money.  Some people save money with the goal of eventually owning their own home in mind.  Others choose to save money for traveling during retirement, taking an exotic vacation, or having a healthy emergency fund.  Having financial goals will help you keep your mind on track help you reach your targets much more quickly.

Motivation

It is very difficult to get motivated about saving unless you know what you are saving for.  Having financial goals gives us something to strive for and accomplish.  Reaching financial goals gives us a sense of pride in what we have been able to achieve.  It does not matter what the financial goal is as long as it is important to you and is something that can help you resist immediate gratification and unnecessary spending.

Identify Priorities

Setting financial goals can help you identify what you would be interested in saving for and how much money you will need to save to accomplish each goal.  Although your first saving priority should be saving for emergencies, the next financial goals on the list are generally for desired items that can be saved for on a short-term basis.  This allows you to avoiding using credit cards and other loans to obtain the items that you want and reduces your expenses down to the actual cost of the items you choose.

Long Term Saving

Long-term financial goals, such as saving for a child’s college education or saving for retirement, allow you to save smaller amounts of money over a longer period of time to reach the goal by the time the money is needed.  These goals are often the most difficult to meet because of the length of time before the money is needed.  You can strive to meet multiple financial goals simultaneously, and as one goal is met, it can be replaced by a new goal to strive for.


Avoiding These Money Mistakes Can Save You Thousands

Written by Toi Williams on Aug 26th, 2012 | Filed under: mindset

Making mistakes with your money can be a very costly accident, ruining your financial stability and credit score with ease.  Many people fall victim to these common money mistakes on a regular basis and keeping these mistakes to a minimum is key to building wealth for the future.  Most mistakes are simple to avoid once you know what they are and changing the habits that lead to these mistakes can save you thousands each year.  Here are the most common money mistakes and how they can be avoided.

Buying Things Impulsively

If you are buying things impulsively during your shopping trips, then there is a good chance that you are wasting a lot of money.  Impulse purchases are generally made on items that you do not need and may never use.  Advertising and store displays are designed to entice you into purchasing these items and most people would rather keep the purchase instead of going through the hassle of taking it back to the store to get your money back.  Make a list of the items that you need before heading out to the store to go shopping for anything and stick to this list while you are in the store to reduce impulse spending.

Carrying A Balance On Your Credit Card

Credit cards can be financially devastating if they are not being used correctly.  High credit card balances take a large portion of your monthly income to service the debt and pay off the interest charges that continue to accumulate as long as a balance is carried.  It is important to pay off credit card balances as quickly as possible to minimize the amount that you pay in fees and interest charges.  Try to pay off the balance of your credit card each month and make a plan for paying for large purchases within a set amount of time.


The Media’s Perspective on Cash Pay Loans

Written by admin on Aug 23rd, 2012 | Filed under: saving

Payday loans have been seen in a negative light be the media. Over the years, cash pay loans are thought to bring about a “cycle of debt” with consumers who resort to this type of loan. The mass media sees easy quick payday loans online as a trap to individuals and claims that they charge too much interest. As such, the advantages of quick loans same day are not seen in a positive perspective. However, there are a lot of factors that can prove that payday loans are of great help to people who are in need of emergency funds.

Advantages of Payday loans

Lending companies ensure that individuals who apply for cash pay loans can repay the loan by completing all the requirements before releasing it. This would mean that people are amenable to the interest rates on the loans they have applied for. These quick loans same day approval processes are beneficial for those who have urgent needs of financial assistance. As long as you have an active account and you are a regular employee, your application will be approved and released within 24 hours. These factors can assure the lenders of repayment on the scheduled time. It is also important to take note that payday loans are available on the Internet. There is no need to go to the lender’s office and file for an application. All you have to do is to find the right lending company online to submit your requirements.  When a borrower cannot make the repayment on the scheduled date, payments can be rolled over to the next month to give more time for individuals to repay the amount. Lenders give out detailed information on the added interest rates when such incident happens.

Media however, do not give the public the right insight on realistic interest rates. Traditional bank loans are considered much better than payday loans. But studies show that traditional bank loans have flaws with regards to the interest rates they provide. Overdraft fees are sometimes added to borrowers’ account without their knowledge. With easy quick payday loans online, repayments are done monthly, thus borrowers are protected from overdraft charges.

Cash pay loans are beneficial to those who have poor credits. Payday loans do not need credit investigation to approve loans. You can send you application through easy quick payday loans online and will be approved within 24 hours.

Unfortunately, the media have contributed pessimistic impression on payday loan. They have not considered instant benefits it offers to individuals who are in need of urgent funds in emergency situations. Cash pay loans are hassle free because of the simple documents and requirements. The fact that it’s a “quick loans same day process”, payday loans are certainly a convenient way for people to solve their financial problems in an immediate manner.

Not all people are certain about their financial status. Urgent need arises when least expected. With the help of this short term process of obtaining cash, we are assured that financial problems will be resolved the soonest possible time. Payday loans are here to stay to help more people during times of monetary emergencies.


Basic Investing Rules That Everyone Should Know

Written by Toi Williams on Aug 20th, 2012 | Filed under: mindset

Investing wisely can be a difficult thing to learn how to do.  Many factors must be taken into account while attempting to reach financial goals and the success of your plan is subject to the whims of the market.  Wrong investment decisions can cost you a lot of money very quickly, but by learning some basic investing rules, you can reduce risk and ensure that your money is working for you effectively.

Keep Things Simple

Some investors run into trouble because they do not fully understand the choices that they are making or are attempting investment plans that are too complex for their financial knowledge.  Keeping things simple at the beginning will help the investor gain valuable knowledge and experience while avoiding complex issues that could be devastating financially.  Focus on choices that are simple and become comfortable with your investments before taking the next step in your plan.

Low Fees And Low Expenses Are Desirable

Over time, the amount paid in fees and expenses on your investments really add up, so look for investments that have low fees and low expenses attached to them.  This allows you to earn more from your investments and keep more of your earnings.  This is especially true for long-term investments that are held for many years.

Research Index Fund Investments

Index funds are considered to be one of the most cost-effective methods of investing.  Index funds are groups of stocks that represent a larger group of stocks or bonds and seek to mirror the performance of a broader market index.  Since they are less complicated to operate and require fewer employees to support, these funds tend to have lower costs than other mutual funds.  Index funds also offer increased diversification and reduce risks posed by a decline in a single stock or industry.


Is Your Credit Card Spending Out Of Control?

Written by Toi Williams on Aug 17th, 2012 | Filed under: credit cards

Outstanding credit card balances are at an all time high in the United States, totaling trillions of dollars for consumers across the nation.  Many people are finding themselves with high levels of credit card debt and few prospects for fixing the situation.  The addition of interest charges and financing fees to the balance of the credit card accounts only makes the problem worse.  If your credit card spending is out of control, try following these tips for getting back on track and reducing those high credit card balances.

Reduce The Number Of Credit Cards Held

Used multiple credit cards on a regular basis is a good way to overspend and find yourself deeply in debt.  If you have multiple credit cards accounts, you may want to consider closing newer accounts or store branded credit cards.  These credit cards are often the ones that get you into the most trouble because you may be tempted to run up the balance or purchase things that you do not really need.  If you do not feel comfortable closing the accounts completely, take the additional cards out of your wallet leaving one that can be used for emergency purposes.

Pay Down High Balances

A high balance on a credit card can reduce your disposable income by a significant amount.  High balances generate high finance charges and interest charges, giving the bank or credit card company tons of profit until the balance is paid off.  Paying off a high balance can take 10 years or more if you are only making the minimum payment required, so pay as much as you can as often as you can to reduce these debts quickly.  Make a repayment plan that pays off the highest balances with the highest interest rates first and continue until each balance has been eliminated completely.


Mortgage Forgiveness around the World

Written by admin on Aug 16th, 2012 | Filed under: saving

Suicides in England were 1,000 higher than expected between 2008 and 2010, which scientists have linked to the recession, of which house repossession after failure to repay a mortgage is a major feature. The International Monetary Fund promotes debt forgiveness as one way countries can recover from the financial crisis. Opponents say that mortgage debt forgiveness would have not only an immediate cost, but could encourage households to default deliberately.

In the United States, the two government-supported mortgage companies, Fannie Mae and Freddie Mac, together own or guarantee around half of mortgage debt, and their practices tend to become the market standard. The public regulator of the two suggested that as much as a million dollars of public money could be saved by forgiving some mortgage debt. This would reduce the number of defaults and allow householders to contribute more to the economy. Another, unpublished study for the Treasury Department found that greater debt forgiveness would save money. The Treasury recently said that it would refund as much as 63 cents of every dollar of mortgage debt forgiven. Under the Mortgage Debt Relief Act of 2007, cancelled debt on real estate might not be taxable. The Act expires at the end of 2013, but President Barack Obama’s budget proposal for 2013 said it should be extended. People affiliated with the Tea Party would be likely to oppose extension.

A story that emanated from the Latin American Telesur TV channel said that some people in Iceland would have their mortgage debt forgiven. No other mainstream television, radio or newspaper outlet took up the story. A spokesman for the Ministry of Economic Affairs said that the report was false as debt relief measures were already in place. All mortgage holders would receive an increased tax rebate and those in the most severe distress would receive even greater benefits.

In the Republic of Ireland, nearly 50,000 mortgages were in arrears by more than three months as of March. Most were more than six months behind. Morgan Kelly, a professor of economics for University College, Dublin, said debt forgiveness should be urgently considered. It would, he said, cost between £4 and £5 billion. Willie Penrose, the Minister of State for Housing, said that if the figure was accurate, it would be “foolhardy” to not consider mortgage debt forgiveness. In the Irish Times, 10 economists said that debt forgiveness should be addressed. The executive chairman of the Allied Irish Bank said his bank could forgive mortgage debt if other banks did the same. The Fianna Fáil opposition party backed mortgage debt forgiveness in individual cases after a full assessment.

Parliament in Ecuador passed legislation dictating that banks forgive debt on mortgages of as much as £93,000. The measure was intended to reduce the likelihood of a real estate bubble as in the United States and Europe. The president praised the legislation but did not say that he would sign it.

It would appear that there is momentum behind the idea of mortgage debt forgiveness.


Selling your Gold to get out of Debt

Written by admin on Aug 15th, 2012 | Filed under: saving

Gold is currently selling for $1593.60 per ounce. That is amazing when you consider that a few years ago you could have purchased that same ounce of Gold for around $275.00. As the economy continues to sputter and the future of the economy stays in limbo many people are selling Gold to stay afloat.

For many cash-strapped Americans, gold jewelry has become an amazing resource. Getting rid of family jewelry from an inheritance can be painful experience for some while others see it as a great way to take advantage of high gold prices and get rid of UN-used items.

Frank, at Gesner Estate Jewelry in Tampa, Florida, has seen a steady rise in gold selling by their customers. Sellers are trying to make car payments or mortgage payments and are using their gold jewelry to do. Clients come in daily looking to sell gold coins, estate jewelry and even watches to get buy. Sellers can also email Frank at Gesner.com to get an idea of what their jewelry might be worth.

Selling Your Gold for a Reasonable Price

Sellers have many options when it comes to selling their gold jewelry. Sellers can go to local pawn shops jewelry stores, or even sell their items online. The internet has become a great resource for many looking to find out the value of their family air looms.

As a rule of thumb the weight of the gold and the karat will determine the value. A 14-karat gold jewelry piece that ways about an ounce can bring over $925 in today’s market. Sellers should shop around and try to get the most by getting multiple quotes from reputable buyers.

In many cases local, reputable jewelry stores are a great way to go. Sellers can be in and out in as little as 15 minutes. If you are selling you need to make sure you bring your ID as you will be asked for it by the store for documentation.


How To Choose A Lender For The Loan You Need

Written by Toi Williams on Aug 12th, 2012 | Filed under: loans

If you are interested in obtaining loans for yourself or for your business, you may need a lender to help you find the right loans for you. Choosing a lender can be difficult because there are a large number of lenders that have started operations all over the nation.  By keeping some simple tips in mind when looking for a lender, you will increase your chances of being satisfied with the loans available to you and the loan servicing you receive.

Ask For Recommendations From Trusted Individuals

Many people choose a lender by talking to family members and friends about which lenders they have used in the past.  If someone that you know has had a good experience with a lender, there is a good chance that you will have a good experience with the company as well.  This is one of the easiest ways to choose a lender because you will know what to expect before ever meeting the person.

Research The Reputation Of The Lender

Another thing to think about when choosing a lender is the reputation of the lender.  Finding out what clients and peers think about a particular lender can typically be accomplished by searching the name of the lender in the search engines of the internet.  This will bring up any consumer reviews about the lender that have been posted online.

These websites allow thousands of people to voice opinions on many different subjects, including lenders and experiences with different lending companies.  If most of the information found is negative, then you should avoid that lender before you have a bad experience as well.

Choose Carefully

It is important that the lender is an honest and reputable lender that has your best interests at heart.  Many people believe that it is best to contact a lender that has been in business for years rather than lenders that are new to the business.  There is the perception that established lenders would not risk their reputation in the industry by taking advantage of customers.


Renting a House in Nottingham

Written by admin on Aug 8th, 2012 | Filed under: saving

Many British companies have their headquarters in Nottingham. Although the city is busy, it has comparatively little crime. Nottingham has an eviction rate more than one-and-a-half times the national average. It has been proposed that £243 million be invested in improving council homes in the city. The Inland Revenue announced that Nottingham was one area where new task forces would be investigating tax evasion by landlords. Properties to rent in Nottingham can be found through Needaproperty.

New Homes Nottingham is a local housing company with an ambitious target of of constructing 5,000 new homes within the next seven years. A quarter of these will be available to rent through Nottingham City homes, which manages 29,000 council homes throughout Nottingham.

Nottingham has moved away from traditional heavy industry and coal mining, leaving the area with an oversupply of terraced housing in poor condition. There is a more industrialised landscape to the west of the city, and house prices there are lower. Employment is now more centred on distribution and warehousing, which is facilitated by good rail and road links. There is a strong housing rental market for professionals and migrant workers. The latter gravitate towards low-skilled occupations such as assembly work, agricultural work and retail.

Anyone seeking rented accommodation in Nottingham can take solace from the fact that the city is cheap. Three London councils have been reported to be considering the relocation of homeless families to Nottingham and Derby, 200km away, because changes to the housing benefit system make it too costly to rent homes for them in London. It is possible that 150 properties will be purchased for needy London families, which might increase to 500.

The prices of flats and houses in Nottingham almost doubled between 1999 and 2004. Prices are higher in the towns of Chesterfield and Newark. According to the Land Registry, the average price of a house in England and Wales was £192,742 in 2006, compared to £150,502 in the East Midlands and £125,062 in Nottingham.

A report by the Audit Commission found that council house allocation in Nottingham had been abused. Employees of the housing service, their partners, relatives and friends had been given housing when they should not have been in 3,000 cases. Some tenants purchased their houses under the right-to-buy scheme. Since then, the system for allocating council houses has been overhauled and senior managers have been replaced.

For students, halls of residence are cheap, although rooms are small, the residence managers are strict, and fire alarms go off at inconvenient times such as 3am. Outside of halls, Beeston has a large student population. There have been three multi-million pound deals for offices which will be converted to student housing, which will benefit people other than students because unsightly buildings will be redeveloped and students will move away from residential areas. Students have protested against their being moved from shared houses to halls on the edge of town, and more than a thousand signed a petition.

Quality of life in Nottingham is improving. Nottingham City Homes found that, for the first time ever, all properties inspected were of at least “two star” standard, with three stars being the maximum. Only 36 percent of estates received two stars in 2007. Paths are clear of weeds, gardens are tidier, there’s less graffiti and rubbish and streets are cleaner. 28 percent of estates were of three star standard, compared to 11 percent in 2007. The organisation also found that there was less crime and anti-social behaviour due to targeted drug operations and “smart watering,” where items are marked with a code which can only be read under a ultra-violet light. Homes that were burgled and whose contents were smart watered have only a 0.6 percent chance of being broken into again.