No one likes the idea of being in debt. Debt usually creates emotional stress, relationship strains and a general feeling of disappointment or failure. Sadly many people who may be struggling with debt make the same errors that can be avoided. By carefully reading this article you can avoid the common debt mistakes and get the personal finance help you deserve.
Lack of a Financial Plan:
If you want to reduce your debt you need a plan. As I have previously mentioned on my blog it is a wise decision to eliminate the debt that has the lowest balance first. To begin with it will give you great satisfaction of reaching your goals and will help you move forward to your next outstanding balance. This method also lowers the number of different bills you have to pay, which will eliminate confusion. If you make a plan and follow it you have already prevented one of the most common debt mistakes.
Spending Too Much:
It sounds obvious but spending too much is the main cause for debt and more and more people spend more than they make. You must eliminate unnecessary costs and avoid purchasing those items you can't afford. If you discover that you are unable to stay on top of your spending it may be time to seek a financial adviser. They can help you avoid those common debt mistakes and provide the personal finance help you might need.
Hiring the Wrong Debt Consolidation Agency:
Everyday we are bombarded with television and radio advertisements that offer debt consolidation services. Some are legitimate and others aren't. The only way to know if a particular agency is right for you is to investigate the company thoroughly. I have heard some company's state that they can lower monthly payments by more than 50% or eliminate debt in under five years. If it sounds too good to be true it probably is. Do a lot of research before you entertain the idea of hiring a debt consolidation agency. Personally I would not recommend seeking this service at all but if you choose to go this route, choose wisely.
Not Understanding Why You Are In Debt:
Certainly this is the most common debt mistake when seeking personal finance help. If you aren't sure why you are struggling with debt or don't know how you got into debt to begin with then how can you solve the problem? If you borrow money for non-essential spending and keep spending money you don't have you must rectify that problem immediately. It is okay to have a home mortgage or college loan but you must prevent unnecessary purchases. The sooner you figure out why you're in debt, the sooner you will begin to eliminate it.
Making The Same Mistakes:
I learned an amazing fact that 80% of individuals who win the lottery are in a worse financial situation two years later. Why? Because they repeat the mistakes they've always made. If you begin to solve your financial difficulties and then fall back into previous spending habits you'll be right back at square one. Understanding your debt, putting those solutions into place and sticking to your plans will help you stay out of debt. Don't repeat what got you into trouble in the first place.
Debt is easy to fall into and hard to get out of. If you avoid these common debt mistakes and seek proper personal finance help you will become debt free quicker than you ever thought possible. Thousands of people are able to work their way out of debt and you can too! Stick to your goals.
Happy Thanksgiving to our Canadian friends!
Saturday, July 28, 2012
Monday, July 23, 2012
Buying a home after bankruptcy
Experienced bankruptcy lately? You may wonder if you will still will be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.
While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.
They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.
This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.
Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:
Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.
After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.
You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.
Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.
Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.
It is very tempting to buy an new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.
But it is not that easy so here are some factors to consider before committing yourself to a new house payment.
The Pre-payment penalty. This penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don't have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.
The Two Year Mark. Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty.
So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.
Borrowing Too Much. This is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don't max yourself out on credit, living right up to the edge of your income.
If your income suddenly drops, you'll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.
Most of us always think that bankruptcy is the end of our credit life. But don not despair because I know some people that have been in to bankruptcy but has been able to get up again and rebuild there credit quickly most of them has even been able to buy a new house.
Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.
Although it may be difficult to find a bank to give you a mortgage it's certainly not impossible. Banks want to make money and you may find one that's willing to take the risk.
While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.
They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.
This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.
Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:
Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.
After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.
You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.
Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.
Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.
It is very tempting to buy an new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.
But it is not that easy so here are some factors to consider before committing yourself to a new house payment.
The Pre-payment penalty. This penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don't have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.
The Two Year Mark. Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty.
So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.
Borrowing Too Much. This is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don't max yourself out on credit, living right up to the edge of your income.
If your income suddenly drops, you'll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.
Most of us always think that bankruptcy is the end of our credit life. But don not despair because I know some people that have been in to bankruptcy but has been able to get up again and rebuild there credit quickly most of them has even been able to buy a new house.
Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.
Although it may be difficult to find a bank to give you a mortgage it's certainly not impossible. Banks want to make money and you may find one that's willing to take the risk.
Friday, July 20, 2012
Mortgage Refinance Waive Closing Cost
With an unpredictable market, no closing cost refinancing seems like a grand way to get rid of various fees related to securing a new home mortgage. Obtaining a home loan can be expensive. Applicants may find that refinancing too is no different and that the charges are the same for both.
The closing cost of a mortgage includes payment to the attorney, underwriter, title insurance company, the application fee, and the rate-lock fee. A no closing cost refinance, although one of the best ways to save money on your monthly payments, is not a very well-known method used in refinancing. These can also be offered while refinancing your previous mortgage. Although it sounds like an awesome deal, remember that nothing in life is free, especially from mortgage lenders.
Benefits of Waiving Closing Cost
If you have planned to repay your loan in a very short period of time, then having no closing costs can prove beneficial for you. The shorter time will lower the interest rates insignificantly. Good mortgage lending companies offer options to choose high interest rates with no closing cost or a closing cost with lower interest rates.
Problems with Waiving Closing Cost
The only fee that is waived from the closing cost is the lender's fee. Title fees, insurance fees, and other relevant costs remain the same. This is a gimmick of the mortgage lenders to use the phrase no closing cost' to attract customers in a new loan or refinancing the existing one. The new interest rate is then charged higher by the lenders and also for a longer period of time.
Mortgage lenders who drastically cut closing costs or waive their fees are often noticed to charge higher interest rates on newly issued mortgages. It is also found that the lender offers the buyer the option of changing the closing costs into a credit by adding the cost to the existing mortgage. They then charge the interest rate for that mortgage more than the closing costs.
Borrowers are also unaware of the fact that paying no closing costs does not mean that they need not pay all charges at closing. There are certain third party charges like per diem, interest from the day of closing to the first day of the coming month, interest on the previous mortgage that was refinanced from the beginning of the month till the closing and other recurring costs.
Astonishingly enough, all open fees for no closing cost refinancing are negotiable. When shopping for your refinancing, request a written estimate of all fees before signing with one agent. Compare different sources. Get recommendations and check for complaints. When possible, use a lender who is reliable and trustworthy. Each lender is unique and has different fees and policies. You need to weigh all options available from the lender you have chosen. Remember in the current economy, there have been a number of changes in the housing and finance market. Customers should talk with brokers or mortgage lenders directly to see what options may be available.
The closing cost of a mortgage includes payment to the attorney, underwriter, title insurance company, the application fee, and the rate-lock fee. A no closing cost refinance, although one of the best ways to save money on your monthly payments, is not a very well-known method used in refinancing. These can also be offered while refinancing your previous mortgage. Although it sounds like an awesome deal, remember that nothing in life is free, especially from mortgage lenders.
Benefits of Waiving Closing Cost
If you have planned to repay your loan in a very short period of time, then having no closing costs can prove beneficial for you. The shorter time will lower the interest rates insignificantly. Good mortgage lending companies offer options to choose high interest rates with no closing cost or a closing cost with lower interest rates.
Problems with Waiving Closing Cost
The only fee that is waived from the closing cost is the lender's fee. Title fees, insurance fees, and other relevant costs remain the same. This is a gimmick of the mortgage lenders to use the phrase no closing cost' to attract customers in a new loan or refinancing the existing one. The new interest rate is then charged higher by the lenders and also for a longer period of time.
Mortgage lenders who drastically cut closing costs or waive their fees are often noticed to charge higher interest rates on newly issued mortgages. It is also found that the lender offers the buyer the option of changing the closing costs into a credit by adding the cost to the existing mortgage. They then charge the interest rate for that mortgage more than the closing costs.
Borrowers are also unaware of the fact that paying no closing costs does not mean that they need not pay all charges at closing. There are certain third party charges like per diem, interest from the day of closing to the first day of the coming month, interest on the previous mortgage that was refinanced from the beginning of the month till the closing and other recurring costs.
Astonishingly enough, all open fees for no closing cost refinancing are negotiable. When shopping for your refinancing, request a written estimate of all fees before signing with one agent. Compare different sources. Get recommendations and check for complaints. When possible, use a lender who is reliable and trustworthy. Each lender is unique and has different fees and policies. You need to weigh all options available from the lender you have chosen. Remember in the current economy, there have been a number of changes in the housing and finance market. Customers should talk with brokers or mortgage lenders directly to see what options may be available.
Tuesday, July 17, 2012
Cash Advance - How To Compare Them
Are you currently thinking about acquiring a cash loan? Then you will do well to think about the examples below if you are afraid to land yourself in big difficulty...
1 Do you actually need this payday loan? Or, is it just to fulfill a flimsy desire of yours? There are crisis situations that might ever happen -- It is smart then. However, if you would forgo it without dire consequences, then don't take it
2 Are there any other better less expensive alternatives for you to obtain advantage of? Can a relative or friend advance you some money? Explore less costly alternatives before going for cash loans (they are costly).
3 How much can you actually afford to eliminate from your next paycheck devoid of starting a destructive circle for taking cash loans? Believe me, it is easy to gather a payday loan. What isn't easy is paying off.
Bear in mind that you have recurrent expenditure -- Things that you must pay for by next payday. Would you have enough to handle this cash loan after paying off them or would you be forced to ask for an expansion or even take yet another cash advance (That's a vicious circle forming)?
Make a decision in advance what you'd have to sacrifice from your next expense plan to fulfill up with your reimbursement obligations.
If you have settled these after that comes the shopping...
What are their lending criteria? Make certain you take plenty of time to go through them initially before trying. If you are declined by one company, it becomes a little bit more difficult for you to acquire a good deal from another provider.
In addition, don't apply to a lot of lenders all at once. There is a data-base that shows providers you have applied to. Pick one, investigation their criteria, if you're satisfied with their conditions and are certain you can qualify, apply.
1 Do you actually need this payday loan? Or, is it just to fulfill a flimsy desire of yours? There are crisis situations that might ever happen -- It is smart then. However, if you would forgo it without dire consequences, then don't take it
2 Are there any other better less expensive alternatives for you to obtain advantage of? Can a relative or friend advance you some money? Explore less costly alternatives before going for cash loans (they are costly).
3 How much can you actually afford to eliminate from your next paycheck devoid of starting a destructive circle for taking cash loans? Believe me, it is easy to gather a payday loan. What isn't easy is paying off.
Bear in mind that you have recurrent expenditure -- Things that you must pay for by next payday. Would you have enough to handle this cash loan after paying off them or would you be forced to ask for an expansion or even take yet another cash advance (That's a vicious circle forming)?
Make a decision in advance what you'd have to sacrifice from your next expense plan to fulfill up with your reimbursement obligations.
If you have settled these after that comes the shopping...
What are their lending criteria? Make certain you take plenty of time to go through them initially before trying. If you are declined by one company, it becomes a little bit more difficult for you to acquire a good deal from another provider.
In addition, don't apply to a lot of lenders all at once. There is a data-base that shows providers you have applied to. Pick one, investigation their criteria, if you're satisfied with their conditions and are certain you can qualify, apply.
Friday, July 13, 2012
Unemployed? Credit Card Debt Consolidation Makes Sense
Being in debt is bad enough. Being in debt because of unnecessary splurges is worse. Being in debt and unemployed can be a special sort of hell. Faced with mounting bills, the first thing an unemployed person should do is figure out ways to reduce the monthly debt load. Trimming monthly budgets to the bare bones is one way, but housing, food, fuel, utilities, car upkeep, and medical expenses can be trimmed only so far. Credit card debt should be high on the reduction list.
Credit Card Debt Consolidation
The first thing an unemployed person needs to do is quit using credit cards except when it is completely unavoidable. You should limit that use to one card alone. Debt consolidation can work, but only in specific circumstances. For instance, if you have only one credit card, approach that lender and see if you can come to some terms to trim your monthly obligation. If you have a number of creditors, including credit card companies, auto loans, and maybe a few others like them, you should seriously consider taking a debt consolidation loan.
Benefits of Debt Consolidation
Take a look at your situation. If you have more than one creditor, you are making payments to each at different times every month. Your creditors are charging you different interest rates. Each is demanding different amounts as monthly minimums. Paper work alone can amount to a monthly stack of bills, written checks, and a lot of receipts. Debt consolidation will roll all those debts under one loan. You will make one payment a month that will be a lot less than the total charged by a number of creditors. You will have one interest rate. Paperwork and remembering different due dates will disappear.
How to Go About Debt Consolidation
First you need to make a list of all your debts amount owed, monthly payment required, and interest charged. Then you need to approach each of those creditors and work out a one-time cash settlement with each. Creditors, realizing that most of the outstanding debt owed is in the form of interest charges, could be willing to cut your obligation almost in half for a one-time payoff. Once you have these settlements in hand, you need to present them to a loan consolidation lender. You and your financial life will come under intense scrutiny just as it would if you were applying for a home loan. Your credit history will loom large when the lender decides on an interest rate to charge you.
Some Final Words on Credit Card Debt Consolidation
Keep in mind, since they are going to make more money, debt consolidation lenders favor customers with large liabilities. If you are uneasy about making one-payment settlements with your creditors or feel intimidated approaching a debt-consolidation lender, you might want to consider hiring a debt consolidation consultant. Of course, you will be paying them a good sum of money for doing something you can do yourself. Do research, either on the Web or through advice from some of your creditors, to discover a credible consultant to usher you through the process. Unscrupulous consultants are out there who will have an eye on your money and not your best interests.
Soon, you will have reduced your monthly obligations to one single payment a month. If you are unemployed, this can help keep you insulated from foreclosure, bankruptcy, or worse.
Credit Card Debt Consolidation
The first thing an unemployed person needs to do is quit using credit cards except when it is completely unavoidable. You should limit that use to one card alone. Debt consolidation can work, but only in specific circumstances. For instance, if you have only one credit card, approach that lender and see if you can come to some terms to trim your monthly obligation. If you have a number of creditors, including credit card companies, auto loans, and maybe a few others like them, you should seriously consider taking a debt consolidation loan.
Benefits of Debt Consolidation
Take a look at your situation. If you have more than one creditor, you are making payments to each at different times every month. Your creditors are charging you different interest rates. Each is demanding different amounts as monthly minimums. Paper work alone can amount to a monthly stack of bills, written checks, and a lot of receipts. Debt consolidation will roll all those debts under one loan. You will make one payment a month that will be a lot less than the total charged by a number of creditors. You will have one interest rate. Paperwork and remembering different due dates will disappear.
How to Go About Debt Consolidation
First you need to make a list of all your debts amount owed, monthly payment required, and interest charged. Then you need to approach each of those creditors and work out a one-time cash settlement with each. Creditors, realizing that most of the outstanding debt owed is in the form of interest charges, could be willing to cut your obligation almost in half for a one-time payoff. Once you have these settlements in hand, you need to present them to a loan consolidation lender. You and your financial life will come under intense scrutiny just as it would if you were applying for a home loan. Your credit history will loom large when the lender decides on an interest rate to charge you.
Some Final Words on Credit Card Debt Consolidation
Keep in mind, since they are going to make more money, debt consolidation lenders favor customers with large liabilities. If you are uneasy about making one-payment settlements with your creditors or feel intimidated approaching a debt-consolidation lender, you might want to consider hiring a debt consolidation consultant. Of course, you will be paying them a good sum of money for doing something you can do yourself. Do research, either on the Web or through advice from some of your creditors, to discover a credible consultant to usher you through the process. Unscrupulous consultants are out there who will have an eye on your money and not your best interests.
Soon, you will have reduced your monthly obligations to one single payment a month. If you are unemployed, this can help keep you insulated from foreclosure, bankruptcy, or worse.
Saturday, July 7, 2012
The Weekend Millionaire's Real Estate Investing Program by Roger Dawson
Roger Dawson has a host of paper books, audio books and DVDs on various personal, motivational, and financial topics. This time, he has teamed up with a co-author, Mike Summey, for a book to teach the reader about how to make money in real estate. The book is called The Weekend Millionaire's Real Estate Investing Program by Roger Dawson, and Mike Summey. The purpose of the book is to teach people about how to make money in the real estate market by buying investment properties. There are many books, thousands even, on the topic. However, Roger Dawson brings with him over 40 years of real estate experience. During his real estate career, he managed 28 offices, with 540 plus employees. So, Roger Dawson is very versed when it comes to the topic of real estate, and about what works when it comes to investing in real estate, and in making profits.
The reader might become very excited to get mentoring from a book from a real estate master. But before a person quits their day job, they should be warned that this isn't a book about how to get rich quick. This isn't the type of book for those looking to get rich over the course of a weekend. This isn't the book for someone who thinks that this is going to be an overnight process. However, The Weekend Millionaires Real Estate Investing Program will teach people the skills that they need to realize long term profits from an industry that isn't going anywhere, and in which they can succeed, even during any economic downturns that they might witness.
The book goes into common strategies, such as buying distressed properties to sell them at a profit. This is a strategy that has been used by many a great real estate developer. Of course it makes sense to buy low, and then to sell it higher. The property sells higher because the market will go up, and because things can be done to the property to inflate its price. The reader will also learn things in the book, such as how to find great investment properties. Many people might be ready to make a buy, but they have no idea as to where to look. They might also waste a lot of time in their search. The book teaches the investor exactly where to look, so that they don't waste time, energy, or money.
The readers of The Weekend Millionaire's Real Estate Investing Program by Roger Dawson, will also learn how to approach seller. Certainly the book readers will need some guidance and some hand holding in this area. They will also learn some negotiation skills and tools designed to develop proposals that are win-win situations for the buyer, and for the seller. This book will even address issues, such as how to buy properties with no money down, and with bad credit.
There is much more to be learned in the book. As long as the readers are able to manage their expectations, and if they are ready to apply what they have learned into real life situations, then they will enjoy all that they learn, and that they earn thanks to The Weekend Millionaire's Real Estate Investing Program by Roger Dawson.
The reader might become very excited to get mentoring from a book from a real estate master. But before a person quits their day job, they should be warned that this isn't a book about how to get rich quick. This isn't the type of book for those looking to get rich over the course of a weekend. This isn't the book for someone who thinks that this is going to be an overnight process. However, The Weekend Millionaires Real Estate Investing Program will teach people the skills that they need to realize long term profits from an industry that isn't going anywhere, and in which they can succeed, even during any economic downturns that they might witness.
The book goes into common strategies, such as buying distressed properties to sell them at a profit. This is a strategy that has been used by many a great real estate developer. Of course it makes sense to buy low, and then to sell it higher. The property sells higher because the market will go up, and because things can be done to the property to inflate its price. The reader will also learn things in the book, such as how to find great investment properties. Many people might be ready to make a buy, but they have no idea as to where to look. They might also waste a lot of time in their search. The book teaches the investor exactly where to look, so that they don't waste time, energy, or money.
The readers of The Weekend Millionaire's Real Estate Investing Program by Roger Dawson, will also learn how to approach seller. Certainly the book readers will need some guidance and some hand holding in this area. They will also learn some negotiation skills and tools designed to develop proposals that are win-win situations for the buyer, and for the seller. This book will even address issues, such as how to buy properties with no money down, and with bad credit.
There is much more to be learned in the book. As long as the readers are able to manage their expectations, and if they are ready to apply what they have learned into real life situations, then they will enjoy all that they learn, and that they earn thanks to The Weekend Millionaire's Real Estate Investing Program by Roger Dawson.
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