Written by Toi Williams on May 30th, 2013 | Filed under: debt relief
Long term debt is often defined as debt that will take one year or more to pay off. There are many different types of long term debt that may be carried, including home mortgages, car loans, student loans, and significant credit card debt. Tackling your long term debt can be a frustrating endeavor, but with patience and perseverance, you will eventually be able to pay off these debts and begin building wealth. Here are some things that you can do to help yourself handle your long term debt.
Figure Out How Much You Owe
The first thing that you need to do to get a handle on your long term debt is to figure out how much you owe. Without knowing the amount you need you repay, you cannot create an effective repayment plan that will help you get rid of these debts permanently. Create a list of creditors you owe, the amount that you owe each one and the interest rate that is being charged to the debt. This will give you a good overview of what you are facing so that you can target your debts in a reasonable manner to get them all paid off.
Keep Yourself Motivated
Many repayment plans fail because the person stops being motivated to continue their repayment plan. While attempting to pay off high debt levels can be frustrating, it is nothing compared to the relief you will feel when these debts have been completely paid off. Keep yourself motivated by rewarding yourself for reaching certain milestones, like a nice dinner out when a credit card is paid off or a night out on the town once you have reduce your debt by $3,000. By building these rewards into your repayment plan, you have something to look forward to for a job well done. Just make sure that your celebration does not incur more debt.
Written by Toi Williams on May 29th, 2013 | Filed under: loans
If you have had some problems with debt in the past, you may think that it will be impossible for you to buy a home in the future. Fortunately, you will not be shut out of the housing market even if your finances have taken a hit because of your debt. There are programs available that can help potential homeowners purchase a home with little money down, relaxed credit score requirements, and a moderate income. Here is what you need to know about buying a home after debt has damaged your finances.
FHA home loans are a good option for purchasing a home if you credit has been damaged in the past. These loans are insured by the Federal Housing Administration, but they are made by private lenders who have been approved by the government to make the loans. These loans can be used purchase various types of housing, including single-family homes, duplexes, condominiums, cooperatives, and manufactured homes. However, the cost of the home cannot exceed the maximum value dictated by the rules of the FHA program, which is $417,000 for a single family home in 2013 for most counties and $729,750 in high-priced counties where it is difficult to find affordable homes.
FHA loans are generally the best home loan alternative for borrowers with imperfect credit or low down payments. For an FHA loan, you may be able to get away with a down payment of as little as 3.5% of the purchase price of the home. The funds for the down payment can come from any source the borrower can obtain, including gifts from relatives, employer funding, or charity sources. Credit score requirements for FHA mortgages are also much more relaxed than conventional loans. Although the lending standards have become more stringent due to the fallout of the recent housing crisis, these loans are still the best option available for many borrowers.
Written by Toi Williams on May 29th, 2013 | Filed under: Uncategorized
Investing is a good way to invest some of your income to receive a substantial return that can help you eliminate your debts quicker. Unfortunately, many people that are carrying debt are afraid to jump into investing because they are scared that they do not know enough to be successful at investing. Knowing some simple investing concepts can help increase their confidence in their investing ability and help them understand what they are doing with their investments. Understanding these investment concepts could help them earn more from their investments so that they can eliminate their debts.
The concept of compounding interest is fairly simple to understand. It is basically the act of interest being added to an account balance and the new balance in turn earning interest in an unending cycle. This cycle increases the balance of the account more rapidly than if the interest was withdrawn so that only the original balance of the account earned interest. It uses the power of time to make your money increase on its own instead of you having to work to replenish the funds on a regular basis.
The power of compounding interest only works if you leave your money alone to grow. By leaving the money in the account to continue growing, you increase the amount of money earning interest in the account each year. Over time, the interest piles up on itself to be worth more than the original value of the account. The amount of interest earned over time can be quite impressive when viewed as a long-term investment.
You must also understand how to allocate your assets if you want to be successful with investing. When investing, you will want to spread your money across a broad range of investments so that a downturn in one particular investment will not completely wipe you out. The way that you allocate your assets will determine the amount of return you receive on your investments.
The key decision in asset allocation what percentage of your dollars to put in stocks and what percentage to devote to bonds. Stocks are riskier than bonds, but the returns they earn can be considerably larger. A good mix of both will provide you with a starting point to begin investing for your future.
Written by Toi Williams on May 24th, 2013 | Filed under: mindset
Receiving a large amount of money unexpectedly can be a great thing for you and your financial situation, but it can cause unexpected problems as well. In many cases, the first thing that people think about is all of the things they will be able to buy with their new found wealth. Unfortunately, this could be a recipe for financial disaster, as the money could be wasted on things that do not really bring a lot of benefits to your life. If you are fortunate enough to receive a windfall payment, you should take a step back, take a deep breath, and really think about the best ways to use the money to make sure you are financially secure in the future. Here are some things that you should think about.
Pay Off Your Debts
If you are carrying debt, the first thing that you should do with a windfall payment is pay off your debts. Debt has a way of overshadowing other financial issues that you may be facing and will restrict your ability to use your income in the best ways financially. Using your windfall payment to wipe out your debt will give you a clean slate to start fresh and begin building wealth for the future. If your windfall payment is not enough to cover all of your debt, focus on the debts with the highest interest rates first to reduce the amount of interest you are paying to creditors.
Save Money For Retirement
Once you have eliminated your debts, you should focus on saving money for your future. If you have a retirement account, contribute as much as you can to it so that the money will be available for you when you need it after you have retired from working. If you do not have a retirement account, now is the perfect time to begin one. There are rules about how much you are allowed to contribute to these accounts to prevent wealthy individuals from sheltering their income tax free, but the limits are high enough that you can put a hefty chunk of money away for the future in an interest earning retirement account.
Written by Toi Williams on May 16th, 2013 | Filed under: saving
Nearly everyone is interested in saving more money, but it can be difficult to do when there are so many other responsibilities facing us every day. Fortunately, there are some easy techniques that you can use to save more with little effort. These techniques can be used alone or in combination to create a savings plan that is both effective and efficient. Here are some savings techniques that you may want to try.
Spend The Bills, Keep The Change
One way to save money effortlessly is to limit your spending to the bills in your wallet and keeping any change to save for the future. While you are out during the day, put any change you receive in your pocket and deposit this change in a savings jar or piggy bank when you get home in the evening. You can easily save a couple hundred dollars per year using this method and you will not even miss the change you are saving.
Put Unexpected Money In Your Savings Account
At certain times during the year, most of us receive some type of unexpected money, like merchandise rebates, bonus payments from work, and monetary birthday gifts. Instead of spending money, put it into your savings account. Because the money was unexpected, there is a good chance that you did not have prior plans for it. It will do you more good being saved for the future than it will being used to buy new clothing or movie tickets.
Keep Making Payments
Many adults have loans and payments that they have to make on a regular basis until the item is paid off. You can save money quickly by continuing to make these payments after the item has been paid off. Instead of sending the check to the creditor, send the check to your savings account instead. You will find that the money isn’t missed because you are just making a payment that you have probably been making for years. The balance of your savings account will be boosted and you will have more money available for your future needs.
Written by admin on May 14th, 2013 | Filed under: Uncategorized
Gone are the days where having broadband internet access in your home had to cost a fortune. These days, having an extremely fast broadband connection at home is largely the standard, no longer the exception. Still though, many people find themselves putting up with subpar internet simply because they don’t know a better, more affordable option exists. Do you ever find yourself waiting for YouTube videos to buffer as the video pauses itself every 10 seconds or so? All you want to do is watch the video, right? Well, if you had a better more reliable internet connection that wouldn’t be a problem.
Especially now that broadband home internet plans are bundled in with your cable or satellite TV packages, getting set up can be extremely simple. You may even be able to call your cable company and ask them to add internet to your package, and have it activated instantly. Depending on how your home or flat is set up, you may only need to run a cable from the wall to your computer or router once they activate you and you will be connected just like that. Remember, the cable companies want you to sign up for as many of their services as possible and will often offer you incentives to do so. We have heard of people using codes like “get broadband now” or “cheap broadbanduk” to obtain discounts but it can usually be as simple as just asking for a better deal.
Once you have broadband access in your home, being on the internet will feel like a whole new experience again. Things that used to take you hours to do, like download large music or movie files from iTunes will now be done within a matter of minutes. Don’t be surprised if you start consuming a lot more media because of your easier access to it at the faster speeds broadband provides.
If you decide not to just add an internet connection to your existing cable package, you will need to shop around and do your research. Go for a company that gives you the best value in terms of speed vs price. If you aren’t a heavy downloader then you be able to save a bit of money by not going for the absolute fastest speed. Also, remember to make sure your bandwidth is unlimited, otherwise if you use the internet too much, you might end up seeing some shockingly high extra charges on your bill at the end of the month.