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Archive for June, 2013

Financial Mistakes New Graduates Make

Written by Toi Williams on Jun 30th, 2013 | Filed under: credit cards

Many college graduates fail to understand finances as well as they should. Very few take a significant amount of financial courses while they are in college and teachers do not focus on teaching financial management in high school. This leaves recent graduates at a disadvantage when they enter the world outside of college and must fend for themselves financially. Here are some of the most common financial mistakes that new graduates make.

Failing To Obtain A Credit Card

Many recent graduates are wary of getting a credit card, and rightly so. Having a credit card can be a great temptation to spend more than you can afford and is one of the highest priced types of credit to have. Unfortunately, a credit card is one of the best ways to show financial responsibility to creditors and many types of transactions cannot be performed without a credit card, such as renting a car or purchasing plane tickets online. It is important to obtain a credit card with a reasonable credit limit and a low interest rate and demonstrate that you can use this credit card responsibly to build credit for the future.

Maxing Out A Credit Card

Maxing out your credit card is a quick way to get yourself into financial trouble. If any hiccups happen with your finances, you may not be able to pay the minimum payment, which will severely damage your credit score. If you do not have credit available on your card, you may not be able to handle any unexpected financial expenses that may arise. The best way to use a credit card is only charge what you can afford to pay each month. If you must make a purchase that is larger than that, make a plan to pay off the credit card within a few months and stop spending with the card until that balance has been eliminated.


Making A Plan To Pay Off Debt

Written by Toi Williams on Jun 29th, 2013 | Filed under: debt relief

It is nearly impossible to pay off debt without a plan, especially if you owe significant sums to numerous creditors. Although the plan may be subject to infrequent changes, such as when an unexpected expense arises, having a plan ready will keep you focused on the proper path until the debts have been eliminated. It is not difficult to make a plan to pay off your debt. Here are some tips that will help you get started.

How Much Can You Pay?

The first thing that you should do is figure out how much you can afford to pay on your debts each month. To make this figure as high as possible, you may want to consider cutting some of your non-essential expenses until your debts have been repaid. The amount that you come up with should be enough to pay the minimum payment to each of your creditors plus some additional money to help you pay down your debt more quickly.

Which Debt Should Be Paid First?

The next step is to figure out which of your debts should be paid off first. Some people like to focus on the debt with the highest interest rate first so that they will pay less over time in interest. Others like to focus on the debt with the lowest balance first, so they can have the satisfaction of seeing the debt completely eliminated to motivate them to continue. Whichever way you decide to go, make a decision and stick with it.

Continue Paying The Same Amount Each Month

Continuing to pay the same amount each month until all of your debts are paid off regardless of your debt balances is a surefire way to eliminate your debts quickly. At first, pay the minimum on all of your accounts except for the one that you have decided to eliminate first. Once that debt has been eliminated, transfer the amount that you were paying on the first debt to the next debt to increase the amount of the payment you are making. Continue with each debt in turn until all of your debts have been eliminated. You will not miss the money because you will be paying the same amount month after month.


How To Manage Your Fixed Expenses

Written by Toi Williams on Jun 28th, 2013 | Filed under: Uncategorized

When people are trying to save money to pay down their debt, they tend to focus on the smaller expenses that tend to add up quickly if you are not paying close enough attention. While this is a good strategy for most people, it is also important to focus on reducing your fixed expenses as much as possible so that you can save even more. Fixed expenses can be hard to adjust quickly to respond to changing circumstances so it is important to have these expenses as low as you are comfortable with before economic devastation occurs. Here are some tips on how to manage your fixed expenses effectively.

Your fixed expenses can include a number of different things. Many people have debt payments that are fixed, including mortgage payments, student loans, auto loans, and consumer debt payments. Service contracts are another type of fixed expense, especially if you are locked into a contract for a certain period of time, like for cell phone plan contracts, alarm service contracts, and club membership fees. Municipal fees for water, garbage, and sewer services and insurance payments for health care, homes, or vehicles are also fixed expenses that must be paid.

When times are good, it is easy to convince yourself that high fixed expenses are reasonable, but as soon as times turn bad, you will find out how wrong you have been. High fixed expenses eat up the income that you could be using to pay down your debt or saving for your future. Reducing your fixed expenses so that they are more manageable can increase your financial security significantly and allow you to save some money so you can handle unexpected expenses that arise in the future. A two-income family that suddenly has to get by on one income will succeed or fail entirely on the basis of its fixed expenses.

To effectively manage your fixed expenses, you must first know what they are and how much you are spending on them. It is also important to know how long they are fixed for. Once you have identified them, make a plan for reducing them permanently, either by getting rid of the expense or modifying your habits so that they cost less. It is also important to have a contingency plan in place to allow you to pay your fixed expenses in the event of a job loss or inflation increasing the costs of expenses you have little control over.


Getting Out of Debt with a Personal Loan

Written by admin on Jun 28th, 2013 | Filed under: debt relief

Being in debt can often feel overwhelming. But there are plenty of ways for people in debt to help themselves recover financially. One of these ways is to take out a personal loan. Although this may seem counter-intuitive – getting into more debt to try and get yourself out of it – there are actually some cases in which this can be a wise move.

Paying Off Your Debt

Depending on the size of the debt, many people find that taking out 1st Stop personal loans can help them to clear off all of their existing debt in one go. This is a great choice for people who have several different debts, and who are struggling to meet all of their repayment obligations. By using a personal loan to clear your existing debt you will effectively be consolidating your debt into one, manageable payment, with one rate of interest.

Dealing with Emergency Debt

There are many kinds of debt emergency, but perhaps the most common scenario is when we find ourselves needing to pay off a debt in a hurry. This may be because we haven’t been meeting our repayments, or because we have come to the end of our loan agreement. If you’ve found yourself in this type of situation, a personal loan can help you to deal with your immediate debt obligations in a way that satisfies your lender and gives you a bit more time to sort out your finances.

Preventing Your Debt From Escalating

The best way to get out of debt is to put in place a personal money management system which will help you to reduce your debt steadily over time. This plan may involve finding a new job, getting promoted, or even going freelance, in order to increase your income. But sometimes, maximising your finances means making a small initial outlay, or being able to deal with emergencies as and when they arise.

For example, if you need a new laptop for your freelancing work, a personal loan will help to cover this cost. And if your car breaks down on the way to your job, a personal loan can help to pay for any garage costs which aren’t covered by your insurance.

Being Sensible About Personal Loans

Personal loans can be very useful, but only when we use them in a responsible manner. If you take out a personal loan you don’t need, you will be contributing to your existing debt in an unnecessary and counter-productive way. If you do decide to take out a loan, make sure you go to a reputable provider, and only borrow what you can afford to pay back.


Don’t Spend Money On These Things Anymore

Written by Toi Williams on Jun 26th, 2013 | Filed under: mindset

There are a number of things that people spend money on regularly because they do not realize that they are not getting full value for their money or that they can get the items for free. When you stop paying for these items, you can save a significant amount of money over the course of a year. The money saved can be used to buy household necessities, pay down debt, or be saved for the future. Here are some items that you do not have to spend money on anymore.

Antivirus Protection For Your Computer

Protecting your computer from viruses can be expensive, especially if you are paying a monthly or annual fee. Fortunately, there are a number of ways to obtain good antivirus protection for no cost at all. There are a number of free antivirus software programs available on the internet that will provide you with protection just as good as you would have gotten with a paid service. Online reviews of the services will help you determine which one will be the best for your needs.

Copies Of Your Credit Report

Another thing that you should not spend money on anymore is copies of your credit report. Federal law mandates that every consumer is entitled to one free copy of their credit reports from each of the three main credit reporting bureaus each year. These free credit reports can be obtained from the website www.annualcreditreport.com. By spacing these credit reports out in four month increments, you can monitor your credit all year.

Credit Monitoring Services

Stay away from expensive credit monitoring services that require a monthly fee to alert you to changes in your credit profile. You will be paying much more than the service is actually worth with all of the protections available from creditors today. If you find that you have become the victim of identity theft or someone uses your credit information fraudulently, your creditors may provide you with free credit monitoring for at least one year after the incident.


Generate Extra Income To Pay Down Your Debt

Written by Toi Williams on Jun 16th, 2013 | Filed under: mindset

It can be very difficult to find ways to reduce your expenses to have more money to pay down your debt. There is only so much you can cut and still maintain your quality of life. To solve this problem, many people have started focusing on ways to generate additional income that can be used to pay down their debts. Here are some of the methods used to generate extra income.

Survey Taking

There are a number of companies on the internet that will pay you to give your opinions on their online surveys. The incentives for completing these surveys can range from $1 to $150 depending on the nature of the survey and the length of time it will take to complete the survey. This is a popular way for individuals to earn additional money because the surveys can be taken in the comfort of their own home at a time that is convenient for them.

Freelance Work

There are also many opportunities for freelancing available on the internet. If you have good writing skills or know your way around computer programs, you may be able to find someone that is willing to pay you for using that knowledge. The type of freelance work you pursue will depend on your personal preferences. You may even be able to find enough clients to make freelancing a full time profession.

Seasonal Employment

During certain times of the year, some employers look for part-time temporary workers to handle seasonal jobs. These jobs can include park upkeep during the spring and summer, tax preparation during tax season, or wrapping gifts during the holidays. Although they can be difficult to fit into a traditional work schedule, seasonal jobs are often a good opportunity to earn additional income that can be used to pay down debt.