The 11 Best Money Saving Ideas of All Time - Part 1
by: Palyn Peterson
At any time in history, no matter what the current state of the economy,
no matter what the current trends, no matter what the unemployment rate
is or where interest rates lurk, some money-saving ideas stay true.
Some of you may have heard of these ideas before, others may be entirely
new to you. But whether you are familiar with these super secrets or not,
it will be well worth your while to put them into effect in your own
life. The magic they will work on your financial life is guaranteed. I
urge you to put them to work - any one of these could change your life!
Big changes come from small steps. One plus one does equal two, so if you
add one from eleven different places, you will see big results.
This is a four part series giving you advice on saving your hard-earned
money in a variety of down-to-earth ways. Nothing here is anything that
anyone can't do on a daily basis.
Amazing Money Tip #1:
The great scientist Albert Einstein once said, "It takes a genius to see
the obvious." What he meant by that is that sometimes the simplest things
in life are the most powerful ... but because they are so simple, we tend
to ignore them, and not let them work for us.
One of the simplest but most powerful money making ideas is this: keep a
daily log of everything you spend. Go to the dollar store and buy a
little notebook and carry it with you wherever you go. Write down every
penny - every single penny - you spend. It's as simple as that.
If you do this, you will find something magic happening in your financial
life in just a few weeks.
There is something incredibly powerful about writing down all your
expenditures. It makes the flow of money through your life more real and
exact. It shows you simply and clearly just where you are spending your
money, on what and why. Once you know that, it becomes much easier to
control your spending.
Many people who have taken up this practice have not only learned
something about themselves which they never knew before, but they are
often astounded.
For example, a person could realized through examining their notebook
that they actually spent nearly $2,000 throughout the year on diet soft
drinks, snacks and candy bars! Since their job only brings in $25,000 per
year, they realized that 8% of their entire income was being frittered
away on something entirely frivolous. The person gave up the snacks and
drinks, and found they had enough money to go on vacation the following
year. If you had the choice between snacks or a much needed vacation,
which would you choose?
The point is, it was their daily expense log that helped achieve the
insight and clarity they needed to get control of their finances. That's
what a simple spending record will do for you - it will give you control
over your spending, and thus your financial life. There may be nothing
but a 75-cent notebook and a ballpoint pen between your life of financial
struggle and financial freedom.
Amazing Money Tip #2:
Stop deficit spending! We all know how much trouble Uncle Sam has been
creating spending more money than our country takes in. It's called
deficit spending. Well, don't fool yourself. The same rules apply to you.
Using those evil little plastic cards may be the "American Way," but it's
a darn poor way.
Today, the average credit card holder is carrying $8,000 in plastic debt!
Spending yourself into debt with a credit card is unbelievably easy, as
many of you already know. The reason is psychological. When you give that
clerk a credit card, it's just not the same as handing over a stack of
green dollar bills. Would you as readily hand over a fistful of ten
dollar bills as flip a credit card across a counter? Probably not.
Credit cards put you in the hole and keep you there. Even for people with
good incomes, paying your credit card debt down to zero is amazingly
difficult. And make no bones about it, credit card debt will sap your
financial strength just as readily as an open vein will deplete your
physical body of its very life force. Using a credit card by choice can
quickly turn to using it for need. Once you get to that point, you are
already in trouble.
There is no secret to freeing yourself from the credit card game. You
must take out a pair of scissors today, cut your cards in half, and begin
paying them back, slowly but surely. Be sure to always pay more than the
minimum amount due, even if it is just $10 more. Once you stop adding to
the debt, even small payments will eventually add up. You can get out of
debt if you are patient and disciplined. Once your cards are history, you
must adopt a strict pay-as- you go policy. Instead of buying now and
paying later, save now and buy when you have the full amount.
Once again, this is not rocket science, but stopping credit- oriented
consuming is one of the most powerful financial tools available to anyone
today. Why not pick up this tool and use it?
Amazing Money Tip #3:
Sell your junk. That's right, it's high past time for a major yard sale.
Search through your house or apartment for every single item you don't
need, and could sell at a flea market or yard sale.
Take an inventory. The truth is, most people are astounded by what they
own - and how much money they have tied up in useless stuff. Why let it
collect dust in your attic while it could collect interest in a savings
account.
You could easily be $500, $1,000 ... even $3,000 richer by the end of the
week. As an added bonus, you'd have your place cleaned up, and you will
have a fresh feeling of starting over. A garage sale is an excellent way
to not only clean out your house, but it often gives a psychological
boost that helps people get control of their life and money.
The next of the 11 best money saving ideas of all time will be discussed
in part 2. Until then, take note of what you have learned so far and put
this information to good use. Read and reread this article; I bet you
will notice a difference sooner than you think.
Copyright © by Palyn Peterson
palyn@futureinternetmarketing.com
About The Author
Get the very same internet marketing techniques that many "guru's" are
asking you $200 for -- FREE. Discover 24 necessary techniques. You'll
also receive a free $gift$.
http://FutureInternetMarketing.com/guide.htm
palyn@futureinternetmarketing.com
Sunday, August 2, 2009
Saturday, August 1, 2009
Get a Job! Tips for Organizing Your Resume
Get a Job! Tips for Organizing Your Resume
by: Stacey Agin Murray
Whether you're a Vice President of Marketing or a recent college grad,
your resume is the 'key' to opening the doors of employment. It is an
employer's first impression of you and believe it or not, many hiring
officials spend less than thirty seconds reviewing it. With only fleeting
moments to make a first impression, it is imperative that your resume be
organized.
Polish your shoes, practice your handshake, and take note of some tips
for creating an organized resume that will catch the eye of even the most
weary of HR associates:
* Start by sitting down with your old resume and a timer. Give yourself
fifteen seconds to read it. How far did you get? Were you able to read
the whole page? Besides 'getting your foot in the door,' your goal is
to create a resume that can be scanned top to bottom in less than 30
seconds. It must be organized to punctuate your strengths and highlight
your employment-related achievements. Next, give yourself another
fifteen seconds but this time skim your resume as if you were the
person doing the hiring. What parts stood out? Was it a bold or italic
phrase? Was it a tabbed column of words or a dollar sign? Think about
what words or sections jumped out at you, circle them in red, and use
them within the body of your new resume. For another opinion, take a
fresh copy and ask a friend or family member to do the same.
* On scrap paper, create a chart and write all of your past jobs across
the top of the page. Below each job title list at least 2-4
duties/accomplishments relating to the position. Analyze each of those
and ask yourself: Does this achievement have any relevance to the job
I'm now pursuing? Will the reader of my resume be impressed by the
money I've saved the company/the body of work I created/the skills I've
acquired? If your answer is yes, the next step is to prioritize those
duties and/or accomplishments.
For example, let's say you are an administrative assistant listing
relevant duties and achievements from your last job. This is your
newly-brainstormed, non-prioritized list:
* answered phone calls
* created and color-coded filing system to support VP of Sales
* coordinated supervisor's travel arrangements
* saved Sales department $12,000 by researching companies and switching
office supply vendors
Now, take a moment to prioritize your list. Which description should be
listed first? Which of the four will quickly catch the reader's eye?
Depending upon the type of job you're applying for, if you saved your
former company any money or increased their productivity in any way, that
fact should be listed first.
Now read the list:
* saved Sales department $12,000 by researching companies and switching
office supply vendors
* created and color-coded filing system to support VP of Sales
* coordinated supervisor's travel arrangements
* answered phone calls
Always position your strongest achievement first. Either they'll be
impressed and move on or think 'Wow!' and continue reading directly
below. An eye-catching first statement will positively affect every
statement listed beneath it so choose wisely.
* Use Bulleted Lists. As opposed to a sea of text, a bulleted list
focuses the eye to a specific area on the page. They are often used to
highlight your accomplishments instead of hiding them within bulky
paragraphs.
Example:
Saved Sales department $12,000 by researching companies and switching
office supply vendors. Created and color-coded filing system to support
VP of Sales. Coordinated supervisor's travel arrangements. Answered phone
calls vs.
* saved Sales department $12,000 by researching companies and switching
office supply vendors
* created and color-coded filing system to support VP of Sales
* coordinated supervisor's travel arrangements
* answered phone calls
Remember, one of your goals is to make reading your resume as easy as
possible. The reader's eye will dart straight to the bullet and focus on
what is written to it's immediate right. If you want to hold the reader's
attention, use 'action words' (verbs) next to a bullet (see example
above). Employing strong action words will assist the reader in
visualizing you carrying out those tasks for their company.
To an HR official, an organized resume can be interpreted as the sign of
an organized person. An organized person has the potential to have an
organized desktop, organized file cabinets and organized work habits.
These are skills and qualities that employers desire in an employee. If
you can present a company/organization with an organized resume it will
put you one step ahead of your less organized competition.
BONUS TIP:
* Do not make 100 copies of your resume until at least one other person
has reviewed it for errors and inconsistencies. Five minutes of
'editorial prevention' can mean the difference between getting an
interview or getting a rejection letter.
About The Author
Stacey Agin Murray, professional organizer and owner of Organized
Artistry, LLC, transforms 'mess' into 'masterpiece' with patience,
organizing know-how, and a sense of humor. For more articles and to get
your FREE e-list of 'Top Ten Tips for Organized Living' visit
http://www.organizedartistry.com
stacey@organizedartistry.com
by: Stacey Agin Murray
Whether you're a Vice President of Marketing or a recent college grad,
your resume is the 'key' to opening the doors of employment. It is an
employer's first impression of you and believe it or not, many hiring
officials spend less than thirty seconds reviewing it. With only fleeting
moments to make a first impression, it is imperative that your resume be
organized.
Polish your shoes, practice your handshake, and take note of some tips
for creating an organized resume that will catch the eye of even the most
weary of HR associates:
* Start by sitting down with your old resume and a timer. Give yourself
fifteen seconds to read it. How far did you get? Were you able to read
the whole page? Besides 'getting your foot in the door,' your goal is
to create a resume that can be scanned top to bottom in less than 30
seconds. It must be organized to punctuate your strengths and highlight
your employment-related achievements. Next, give yourself another
fifteen seconds but this time skim your resume as if you were the
person doing the hiring. What parts stood out? Was it a bold or italic
phrase? Was it a tabbed column of words or a dollar sign? Think about
what words or sections jumped out at you, circle them in red, and use
them within the body of your new resume. For another opinion, take a
fresh copy and ask a friend or family member to do the same.
* On scrap paper, create a chart and write all of your past jobs across
the top of the page. Below each job title list at least 2-4
duties/accomplishments relating to the position. Analyze each of those
and ask yourself: Does this achievement have any relevance to the job
I'm now pursuing? Will the reader of my resume be impressed by the
money I've saved the company/the body of work I created/the skills I've
acquired? If your answer is yes, the next step is to prioritize those
duties and/or accomplishments.
For example, let's say you are an administrative assistant listing
relevant duties and achievements from your last job. This is your
newly-brainstormed, non-prioritized list:
* answered phone calls
* created and color-coded filing system to support VP of Sales
* coordinated supervisor's travel arrangements
* saved Sales department $12,000 by researching companies and switching
office supply vendors
Now, take a moment to prioritize your list. Which description should be
listed first? Which of the four will quickly catch the reader's eye?
Depending upon the type of job you're applying for, if you saved your
former company any money or increased their productivity in any way, that
fact should be listed first.
Now read the list:
* saved Sales department $12,000 by researching companies and switching
office supply vendors
* created and color-coded filing system to support VP of Sales
* coordinated supervisor's travel arrangements
* answered phone calls
Always position your strongest achievement first. Either they'll be
impressed and move on or think 'Wow!' and continue reading directly
below. An eye-catching first statement will positively affect every
statement listed beneath it so choose wisely.
* Use Bulleted Lists. As opposed to a sea of text, a bulleted list
focuses the eye to a specific area on the page. They are often used to
highlight your accomplishments instead of hiding them within bulky
paragraphs.
Example:
Saved Sales department $12,000 by researching companies and switching
office supply vendors. Created and color-coded filing system to support
VP of Sales. Coordinated supervisor's travel arrangements. Answered phone
calls vs.
* saved Sales department $12,000 by researching companies and switching
office supply vendors
* created and color-coded filing system to support VP of Sales
* coordinated supervisor's travel arrangements
* answered phone calls
Remember, one of your goals is to make reading your resume as easy as
possible. The reader's eye will dart straight to the bullet and focus on
what is written to it's immediate right. If you want to hold the reader's
attention, use 'action words' (verbs) next to a bullet (see example
above). Employing strong action words will assist the reader in
visualizing you carrying out those tasks for their company.
To an HR official, an organized resume can be interpreted as the sign of
an organized person. An organized person has the potential to have an
organized desktop, organized file cabinets and organized work habits.
These are skills and qualities that employers desire in an employee. If
you can present a company/organization with an organized resume it will
put you one step ahead of your less organized competition.
BONUS TIP:
* Do not make 100 copies of your resume until at least one other person
has reviewed it for errors and inconsistencies. Five minutes of
'editorial prevention' can mean the difference between getting an
interview or getting a rejection letter.
About The Author
Stacey Agin Murray, professional organizer and owner of Organized
Artistry, LLC, transforms 'mess' into 'masterpiece' with patience,
organizing know-how, and a sense of humor. For more articles and to get
your FREE e-list of 'Top Ten Tips for Organized Living' visit
http://www.organizedartistry.com
stacey@organizedartistry.com
Friday, July 31, 2009
Shocking Facts - What Debt Settlement Companies Don't Tell You
Shocking Facts - What Debt Settlement Companies Don't Tell You
by: Denise Hall
If you're thinking about using a debt consolidation or debt settlement
service to help you get out of debt faster and save money on your monthly
payments, make sure you do your homework before choosing a company. There
are definitely shams and scams out there.
First let me say that debt consolidation is *not* the same as debt
settlement/negotiation, which most people don't realize.
Debt settlement companies charge hundreds of dollars as an initial "admin
fee" to set up your account, plus a monthly service fee. The fees vary
depending on the company and the amount of your debts.
Such companies take your money every month, but don't make monthly
payments to your creditors! Instead, they put it in a trust account,
negotiate your debts with your creditors, then make a lump-sum payment
when there's enough in your account to pay a creditor in full.
That can take *years* depending on the amount of debt you have with each
creditor. Meanwhile, you can be sued by your creditors and your wages can
be garnished! (Or just don't make payments to your creditors. You'll end
up in the same spot without paying someone to help you get there!)
Settlement companies don't ask your creditors to stop all interest, late
fees and overlimit fees from accruing. That means while the negotiations
are ongoing, your bills will continue to grow! So if you're sued and a
judgement is brought against you, you'll owe more money than before!
And shoddy companies, which there are alot of, don't tell you *any* of
this up front. I call it "getting permission by ommission" because they
simply don't tell you how their program works *before* you sign an
agreement with them. Or after, for that matter. But if you ask the right
questions, eventually you'll figure it out. (Or when the crap hits the
fan. Whichever comes first.)
Let me give you an example of how debt settlement works.
Let's say you have $20,000 in unsecured credit card debt. You owe $10,000
to one credit card company, $6,000 to another and $4,000 to a third. You
agree to a 5 year plan where you pay $250 a month to the settlement
company. (After all, $250 a month for 60 months is only $15,000, so
you're saving $5,000 and you'll be debt-free in 5 years, right?)
The admin fee will cost you $750. Your first 3 monthly payments go
towards that and nothing gets put into your trust account until your 4th
month.
The settlement company keeps $50 of your $250 payment each month for the
service fee. That means $200 a month is being added to your trust account.
Most debt settlement companies claim to be able to negotiate your debt
for about 50% of what you owe. So let's use the lowest credit card debt
as an example.
If you owe $4,000 and your creditor agrees to accept $2,000 as payment in
full, it will take 10 months at $200 per month to have enough in your
trust account to pay off just that one credit card.
But remember, your first 3 payments to the settlement company only paid
the admin fee. That means your first credit card settlement is 14 months
*after* you started sending them money.
So what's the problem? It's simple. Your creditor won't agree to accept
half of your actual debt unless, or until, it can be paid in full.
Otherwise, you're expected to make your normal monthly payments.
Since you don't have $2,000 in your trust account, and you won't have it
until more than a year after you stopped paying your creditor directly,
they'll probably take you to court and request that your wages be
garnished long before you have that $2,000 built up.
And what about your other creditors? Well, they'll be waiting even longer
to get their money from the settlement company. The $6,000 debt will take
15 *more* months to pay off, assuming your creditor waits that long and
agrees to 50%. And that $10,000 bill? You do the math.
On the other hand, if you signed up for a 3 year plan with the settlement
company, your debts would be paid off sooner. But, the question is, will
your creditors wait that long? Probably not.
The facts are, you can negotiate with your creditors yourself. Most will
agree to take a smaller monthly payment from you and stop all interest
and fees from accruing. And, of course, you'll save thousands of dollars
in fees to a settlement company.
Before signing up for any service, please be sure you check out the
company thoroughly. And don't let the words "non-profit" fool you either.
Alot of debt settlement companies claim to be non-profit.
Going back to the example above, if you pay them $15,000 over a 5 year
time frame and they settle your debts at half of what you owed, they'll
make $5,000 from you. I'd call that a profit, especially since they might
not have actually helped you in any way.
Most companies will allow you to cancel your account and get a refund of
what you've paid, less the non-refundable admin fee and the monthly
service fees. If you feel you've been mislead about their program, don't
hesitate to argue til the cows come home. File a complaint with the
Better Business Bureau or hire an attorney if you feel you're getting
nowhere.
You can visit the Better Business Bureau's website (http://www.bbb.org) and find reports on hundreds of companies. Here's a
small listing of companies that have poor reputations with the BBB:
National Consumer Debt Council LLC - Irvine, CA (A.K.A. NCDC, United
Consumer Law Group)
Financial Rescue Services - Burbank, CA
Debt Legal Services - Anaheim, CA
American Debt Relief - Los Angeles, CA (A.K.A. A M Debt, American Debts
Relief, Debt Relief)
Please be very cautious when choosing a debt help company and ask lots of
questions before agreeing to anything. If you find they're evading your
questions, run fast and run far. There are reputable companies out there,
so keep looking until you find one.
About The Author
Denise Hall is the owner of Home Business on a Budget which specializes
in tools and resources for your home business needs. Visit
http://www.home-business-on-a-budget.com today. Subscribe to Home
Business on a Budget Newsletter for weekly articles, tips, information
and resources. To Subscribe mailto:hbb_newsletter@a1ebiz.com
If you would like to receive her new articles when they are written,
please mailto:denise_hall@freeautobot.com
This article may be reprinted in its entirety with this resource box
included.
dmh0226@voyager.net
by: Denise Hall
If you're thinking about using a debt consolidation or debt settlement
service to help you get out of debt faster and save money on your monthly
payments, make sure you do your homework before choosing a company. There
are definitely shams and scams out there.
First let me say that debt consolidation is *not* the same as debt
settlement/negotiation, which most people don't realize.
Debt settlement companies charge hundreds of dollars as an initial "admin
fee" to set up your account, plus a monthly service fee. The fees vary
depending on the company and the amount of your debts.
Such companies take your money every month, but don't make monthly
payments to your creditors! Instead, they put it in a trust account,
negotiate your debts with your creditors, then make a lump-sum payment
when there's enough in your account to pay a creditor in full.
That can take *years* depending on the amount of debt you have with each
creditor. Meanwhile, you can be sued by your creditors and your wages can
be garnished! (Or just don't make payments to your creditors. You'll end
up in the same spot without paying someone to help you get there!)
Settlement companies don't ask your creditors to stop all interest, late
fees and overlimit fees from accruing. That means while the negotiations
are ongoing, your bills will continue to grow! So if you're sued and a
judgement is brought against you, you'll owe more money than before!
And shoddy companies, which there are alot of, don't tell you *any* of
this up front. I call it "getting permission by ommission" because they
simply don't tell you how their program works *before* you sign an
agreement with them. Or after, for that matter. But if you ask the right
questions, eventually you'll figure it out. (Or when the crap hits the
fan. Whichever comes first.)
Let me give you an example of how debt settlement works.
Let's say you have $20,000 in unsecured credit card debt. You owe $10,000
to one credit card company, $6,000 to another and $4,000 to a third. You
agree to a 5 year plan where you pay $250 a month to the settlement
company. (After all, $250 a month for 60 months is only $15,000, so
you're saving $5,000 and you'll be debt-free in 5 years, right?)
The admin fee will cost you $750. Your first 3 monthly payments go
towards that and nothing gets put into your trust account until your 4th
month.
The settlement company keeps $50 of your $250 payment each month for the
service fee. That means $200 a month is being added to your trust account.
Most debt settlement companies claim to be able to negotiate your debt
for about 50% of what you owe. So let's use the lowest credit card debt
as an example.
If you owe $4,000 and your creditor agrees to accept $2,000 as payment in
full, it will take 10 months at $200 per month to have enough in your
trust account to pay off just that one credit card.
But remember, your first 3 payments to the settlement company only paid
the admin fee. That means your first credit card settlement is 14 months
*after* you started sending them money.
So what's the problem? It's simple. Your creditor won't agree to accept
half of your actual debt unless, or until, it can be paid in full.
Otherwise, you're expected to make your normal monthly payments.
Since you don't have $2,000 in your trust account, and you won't have it
until more than a year after you stopped paying your creditor directly,
they'll probably take you to court and request that your wages be
garnished long before you have that $2,000 built up.
And what about your other creditors? Well, they'll be waiting even longer
to get their money from the settlement company. The $6,000 debt will take
15 *more* months to pay off, assuming your creditor waits that long and
agrees to 50%. And that $10,000 bill? You do the math.
On the other hand, if you signed up for a 3 year plan with the settlement
company, your debts would be paid off sooner. But, the question is, will
your creditors wait that long? Probably not.
The facts are, you can negotiate with your creditors yourself. Most will
agree to take a smaller monthly payment from you and stop all interest
and fees from accruing. And, of course, you'll save thousands of dollars
in fees to a settlement company.
Before signing up for any service, please be sure you check out the
company thoroughly. And don't let the words "non-profit" fool you either.
Alot of debt settlement companies claim to be non-profit.
Going back to the example above, if you pay them $15,000 over a 5 year
time frame and they settle your debts at half of what you owed, they'll
make $5,000 from you. I'd call that a profit, especially since they might
not have actually helped you in any way.
Most companies will allow you to cancel your account and get a refund of
what you've paid, less the non-refundable admin fee and the monthly
service fees. If you feel you've been mislead about their program, don't
hesitate to argue til the cows come home. File a complaint with the
Better Business Bureau or hire an attorney if you feel you're getting
nowhere.
You can visit the Better Business Bureau's website (http://www.bbb.org) and find reports on hundreds of companies. Here's a
small listing of companies that have poor reputations with the BBB:
National Consumer Debt Council LLC - Irvine, CA (A.K.A. NCDC, United
Consumer Law Group)
Financial Rescue Services - Burbank, CA
Debt Legal Services - Anaheim, CA
American Debt Relief - Los Angeles, CA (A.K.A. A M Debt, American Debts
Relief, Debt Relief)
Please be very cautious when choosing a debt help company and ask lots of
questions before agreeing to anything. If you find they're evading your
questions, run fast and run far. There are reputable companies out there,
so keep looking until you find one.
About The Author
Denise Hall is the owner of Home Business on a Budget which specializes
in tools and resources for your home business needs. Visit
http://www.home-business-on-a-budget.com today. Subscribe to Home
Business on a Budget Newsletter for weekly articles, tips, information
and resources. To Subscribe mailto:hbb_newsletter@a1ebiz.com
If you would like to receive her new articles when they are written,
please mailto:denise_hall@freeautobot.com
This article may be reprinted in its entirety with this resource box
included.
dmh0226@voyager.net
Thursday, July 30, 2009
Slam the Door on Debt
Slam the Door on Debt
by: ARA Content
http://IHateFinancialPlanning.com offers ten
tips to help you get out and stay out
(ARA) - According to American Consumer Credit Counseling, Inc., the
average balance on a credit card is $7,000, offering an average interest
rate of 18.9 percent.
Additional statistics show that the average household has 10 credit cards
and, not surprisingly, over half of those households report having
trouble paying their minimum monthly payments.
Common indicators of a debt problem include not knowing the state of your
personal finances; not knowing how much you owe or what interest rate you
are paying; missing payments; having poor savings habits; using one
credit card to pay another, or living paycheck-to-paycheck.
For many Americans, the statistics and debt problem indicators hit even
closer to home with the conclusion of the holiday shopping season and the
onset of the ever-dreaded tax season. Facing debts is one of the major
barriers for people in dealing with their personal finances.
One organization that understands the problems associated with debt
management is IHateFinancialPlanning.com
(www.IHateFinancialPlanning.com), a Web site intended for the 3 out of 4
Americans who hate financial planning. The site offers helpful tips for
eliminating debt and staying out of debt in the future.
"Millions of Americans love the instant gratification of using their
credit card and hate thinking about the serious consequences of
accumulating debt," says Randy Schuldt, a vice president with
IHateFinancialPlanning.com. "Debt can paralyze people from moving
forward. But, with a solid plan and the right tools, paying off their
credit cards and eliminating their debts can be tolerable and even
enjoyable."
Numerous options are available for those who are struggling to shut the
door on debt. Declaring bankruptcy is not necessarily the best option.
Sites such as IHateFinancialPlanning.com provide advice, tools and
resources for those needing assistance. Visitors to the site also have
the option of e-mailing their questions and receiving a free answer from
a professional with no strings or sales pitches attached.
To help you get started on the road to less debt and greater
gratification, IHateFinancialPlanning.com offers the following tips:
Put Yourself First
That's right! It sounds a bit surprising, but according to Debtors
Anonymous (www.debtorsanonymous.org), it's critical to take care of
yourself while eliminating debt. No, this doesn't mean that you can go on
a spending spree if you are feeling depressed. Instead, get plenty of
rest and eat well to keep energized while focusing on your goal of being
debt free.
Keep a Record and Prioritize
Keep track of every nickel you spend for a month and record amounts spent
in appropriate categories - i.e. housing, transportation, food, clothes,
entertainment, etc. It doesn't have to be a fancy software program - just
a pencil and a pad of paper will suffice. At the end of the month,
analyze where your money is going. Decide if the items purchased are
necessities or niceties. Be realistic. What spending can you eliminate or
reduce in order to reach your goal of being debt free? Perhaps you can
pack your lunch rather than eat out every day, rent a movie rather than
see the latest release, or scale down on your clothing budget. Do you
really need another tie or an additional pair of black shoes?
List Your Debts
Create a list of your debts - the amount you owe and the interest rate.
Make the minimum payment each month - but more importantly, make a
commitment to pay off the debt with the highest interest rate first by
making an extra payment. After you've paid off that debt, apply the
amount you were paying on the old debt to your next debt with the next
highest interest rate. Don't reduce the total debt payment amount just
because one debt is paid off.
Create a Spending Plan
Once you have made a record of how you spend your money and have
concluded which expenses are necessary, then you are ready to create a
spending plan. Start by projecting how much money you will spend in each
category for the month. Change the amount if your situation changes.
Didn't expect to break your arm and dent your vehicle's bumper in the
same month? Make adjustments and move forward. Create a new plan for each
month. This is the best tool to stay in control of your spending.
Remember that some of these tips are appropriate for your lifestyle, some
of them are not. Personalize your plan and keep focused.
Cut Up and Cancel
Get rid of those credit cards! Cut them up and cancel them. Be aware that
when you try to cancel your credit card, the company may offer you an
extended line of credit or a lower interest rate. Do not be tempted! It's
not your glowing personality that entices them to do business with you.
If you can handle having one, keep a credit card for emergency purposes
(which doesn't include a last-minute trip to the Bahamas to beat the
winter blahs). Pay off that one credit card each and every month - or
else be back in the same shipwrecked boat of debt. Minimum monthly
payments are not acceptable.
Debit Not Credit
Love the feel of plastic sliding through your fingers while making a
purchase? Worried you will have withdrawal? Use a debit card that
immediately withdraws money from your checking account. Experience the
feeling of gratification knowing you've paid for the item you just picked
out.
Income-producing Investments
Use credit to purchase items that give you some income-producing
potential. There is such a thing as good debt - a mortgage for a home, a
loan for an education or the start of a new business. Sorry, payments on
an expensive new SUV don't count unless you make a living as a chauffeur.
Credit is Not Income
If you apply for one of the seven credit card applications that arrive
annually in an average American's mail, and receive a $5000 line of
credit, don't consider it a raise. It's not your money and you haven't
earned it. You have simply been given the opportunity to accumulate debt
at the lender's benefit. Americans paid out approximately $65 billion in
interest last year alone. With the exception of your mortgage, credit
payments should never exceed 10 percent of your income.
Shop Around and Be Smart
Take a look at other interest rates. Be smart. Don't finance your car
with a credit card if you can get a car loan at a lower interest rate. If
your current interest rate on your credit card is 15 percent and another
company is offering you 8 percent, contact your credit card company and
see if they will meet the competitor's rate. If not, take advantage of
offers to transfer your higher interest rate cards to lower interest rate
cards. It's worth the time to shop around while you are lowering your
debt.
Save, Save and Then Save Some More
Start saving today. If your credit card payment of $500 per month was
eliminated and you were able to invest that amount in a savings vehicle
earning a 10 percent return, you would save over $1 million in 30 years.
That's real money in your piggy bank.
Leave the Piggy Bank Alone
If you have already started a 401K plan or have a savings account, resist
the temptation of using your investments to pay off your debt. Take
advantage of the good side of interest - the compounding side - and keep
your investments on track. Think long-term, not short-term, while paying
off your debts.
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
EDITOR'S NOTE: For more information contact Maclaren Latta, Carmichael
Lynch Spong, (612) 375-8570, mlatta@clynch.com
or Stephen Dupont, Carmichael Lynch Spong, (612) 375-8525,
sdupont@clynch.com.
Securities available through PrimeVest Financial Services, Inc., Member
NASD/SIPC. Call (320) 656-4300, ext. 64691, for a prospectus, which
contains complete information on expenses and charges. Read it carefully
before you send money or invest. IHateFinancialPlanning.com is part of
the ING Group, a worldwide leader in the fields of insurance, banking and
asset management, with more than 100,000 employees in 65 countries.
by: ARA Content
http://IHateFinancialPlanning.com offers ten
tips to help you get out and stay out
(ARA) - According to American Consumer Credit Counseling, Inc., the
average balance on a credit card is $7,000, offering an average interest
rate of 18.9 percent.
Additional statistics show that the average household has 10 credit cards
and, not surprisingly, over half of those households report having
trouble paying their minimum monthly payments.
Common indicators of a debt problem include not knowing the state of your
personal finances; not knowing how much you owe or what interest rate you
are paying; missing payments; having poor savings habits; using one
credit card to pay another, or living paycheck-to-paycheck.
For many Americans, the statistics and debt problem indicators hit even
closer to home with the conclusion of the holiday shopping season and the
onset of the ever-dreaded tax season. Facing debts is one of the major
barriers for people in dealing with their personal finances.
One organization that understands the problems associated with debt
management is IHateFinancialPlanning.com
(www.IHateFinancialPlanning.com), a Web site intended for the 3 out of 4
Americans who hate financial planning. The site offers helpful tips for
eliminating debt and staying out of debt in the future.
"Millions of Americans love the instant gratification of using their
credit card and hate thinking about the serious consequences of
accumulating debt," says Randy Schuldt, a vice president with
IHateFinancialPlanning.com. "Debt can paralyze people from moving
forward. But, with a solid plan and the right tools, paying off their
credit cards and eliminating their debts can be tolerable and even
enjoyable."
Numerous options are available for those who are struggling to shut the
door on debt. Declaring bankruptcy is not necessarily the best option.
Sites such as IHateFinancialPlanning.com provide advice, tools and
resources for those needing assistance. Visitors to the site also have
the option of e-mailing their questions and receiving a free answer from
a professional with no strings or sales pitches attached.
To help you get started on the road to less debt and greater
gratification, IHateFinancialPlanning.com offers the following tips:
Put Yourself First
That's right! It sounds a bit surprising, but according to Debtors
Anonymous (www.debtorsanonymous.org), it's critical to take care of
yourself while eliminating debt. No, this doesn't mean that you can go on
a spending spree if you are feeling depressed. Instead, get plenty of
rest and eat well to keep energized while focusing on your goal of being
debt free.
Keep a Record and Prioritize
Keep track of every nickel you spend for a month and record amounts spent
in appropriate categories - i.e. housing, transportation, food, clothes,
entertainment, etc. It doesn't have to be a fancy software program - just
a pencil and a pad of paper will suffice. At the end of the month,
analyze where your money is going. Decide if the items purchased are
necessities or niceties. Be realistic. What spending can you eliminate or
reduce in order to reach your goal of being debt free? Perhaps you can
pack your lunch rather than eat out every day, rent a movie rather than
see the latest release, or scale down on your clothing budget. Do you
really need another tie or an additional pair of black shoes?
List Your Debts
Create a list of your debts - the amount you owe and the interest rate.
Make the minimum payment each month - but more importantly, make a
commitment to pay off the debt with the highest interest rate first by
making an extra payment. After you've paid off that debt, apply the
amount you were paying on the old debt to your next debt with the next
highest interest rate. Don't reduce the total debt payment amount just
because one debt is paid off.
Create a Spending Plan
Once you have made a record of how you spend your money and have
concluded which expenses are necessary, then you are ready to create a
spending plan. Start by projecting how much money you will spend in each
category for the month. Change the amount if your situation changes.
Didn't expect to break your arm and dent your vehicle's bumper in the
same month? Make adjustments and move forward. Create a new plan for each
month. This is the best tool to stay in control of your spending.
Remember that some of these tips are appropriate for your lifestyle, some
of them are not. Personalize your plan and keep focused.
Cut Up and Cancel
Get rid of those credit cards! Cut them up and cancel them. Be aware that
when you try to cancel your credit card, the company may offer you an
extended line of credit or a lower interest rate. Do not be tempted! It's
not your glowing personality that entices them to do business with you.
If you can handle having one, keep a credit card for emergency purposes
(which doesn't include a last-minute trip to the Bahamas to beat the
winter blahs). Pay off that one credit card each and every month - or
else be back in the same shipwrecked boat of debt. Minimum monthly
payments are not acceptable.
Debit Not Credit
Love the feel of plastic sliding through your fingers while making a
purchase? Worried you will have withdrawal? Use a debit card that
immediately withdraws money from your checking account. Experience the
feeling of gratification knowing you've paid for the item you just picked
out.
Income-producing Investments
Use credit to purchase items that give you some income-producing
potential. There is such a thing as good debt - a mortgage for a home, a
loan for an education or the start of a new business. Sorry, payments on
an expensive new SUV don't count unless you make a living as a chauffeur.
Credit is Not Income
If you apply for one of the seven credit card applications that arrive
annually in an average American's mail, and receive a $5000 line of
credit, don't consider it a raise. It's not your money and you haven't
earned it. You have simply been given the opportunity to accumulate debt
at the lender's benefit. Americans paid out approximately $65 billion in
interest last year alone. With the exception of your mortgage, credit
payments should never exceed 10 percent of your income.
Shop Around and Be Smart
Take a look at other interest rates. Be smart. Don't finance your car
with a credit card if you can get a car loan at a lower interest rate. If
your current interest rate on your credit card is 15 percent and another
company is offering you 8 percent, contact your credit card company and
see if they will meet the competitor's rate. If not, take advantage of
offers to transfer your higher interest rate cards to lower interest rate
cards. It's worth the time to shop around while you are lowering your
debt.
Save, Save and Then Save Some More
Start saving today. If your credit card payment of $500 per month was
eliminated and you were able to invest that amount in a savings vehicle
earning a 10 percent return, you would save over $1 million in 30 years.
That's real money in your piggy bank.
Leave the Piggy Bank Alone
If you have already started a 401K plan or have a savings account, resist
the temptation of using your investments to pay off your debt. Take
advantage of the good side of interest - the compounding side - and keep
your investments on track. Think long-term, not short-term, while paying
off your debts.
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
EDITOR'S NOTE: For more information contact Maclaren Latta, Carmichael
Lynch Spong, (612) 375-8570, mlatta@clynch.com
or Stephen Dupont, Carmichael Lynch Spong, (612) 375-8525,
sdupont@clynch.com.
Securities available through PrimeVest Financial Services, Inc., Member
NASD/SIPC. Call (320) 656-4300, ext. 64691, for a prospectus, which
contains complete information on expenses and charges. Read it carefully
before you send money or invest. IHateFinancialPlanning.com is part of
the ING Group, a worldwide leader in the fields of insurance, banking and
asset management, with more than 100,000 employees in 65 countries.
Wednesday, July 29, 2009
How Do You Put a Value on Your Time?
How Do You Put a Value on Your Time?
by: Janice D. Byer, MVA
As a small business owner, does the following paragraph sound familiar to
you…?
“Other than doing the technical ‘fix-its’ with my computer…I do it all! I
have found that this keeps me very limited in growing my business and
taking on new clients. I wish I had someone to help but how can I justify
hiring someone when I can do the work myself…when I have the time?”
This is a very common issue for many small business owners. All the work,
whether revenue generating or not, needs to be done to keep the business
running smoothly.
We need to reconnect with our goals for our business and our vision for
its future. We need to focus on why we started this business in the first
place. Focusing includes deciding how much our time is worth.
But, how do you put a value on your time? How much is each hour of each
day worth, especially when you are doing projects that are not generating
revenue or increasing your customer base?
Is your time worth $25, $50, $100 per hour….or more? When you get busy
doing those tasks that don’t directly generate revenue, consider how much
it is costing you.
For example:
You charge $75 per hour for your services/time. You spend a total of 5
hours trying to catch up on your correspondence…entering information into
a database, typing and re-typing your letters and preparing them to be
mailed.
$75/hr X 5 hours = $375.00 of your valuable time and profit
If it would cost you less to outsource, why not do it? Why not allow a
professional to handle some of your tasks leaving you with more time to
generate revenue?
$25/hr (sample cost to outsource) X 5 hours = $125.00
$375 - $125 = $250 + the $ of the contract you signed while a
professional took care of the non-revenue generating tasks.
Although you are spending some of your hard earned money, you are gaining
so much more. Outsourcing gives you professional assistance, which in
turn saves you both time and money...the two things that most small
business owners need more of.
About The Author
Janice Byer is a certified Master Virtual Assistant and owner of
Docu-Type Administrative & Web Design Services (http://www.docutype.net). See this and other articles on her website.
jbyer@docutype.net
by: Janice D. Byer, MVA
As a small business owner, does the following paragraph sound familiar to
you…?
“Other than doing the technical ‘fix-its’ with my computer…I do it all! I
have found that this keeps me very limited in growing my business and
taking on new clients. I wish I had someone to help but how can I justify
hiring someone when I can do the work myself…when I have the time?”
This is a very common issue for many small business owners. All the work,
whether revenue generating or not, needs to be done to keep the business
running smoothly.
We need to reconnect with our goals for our business and our vision for
its future. We need to focus on why we started this business in the first
place. Focusing includes deciding how much our time is worth.
But, how do you put a value on your time? How much is each hour of each
day worth, especially when you are doing projects that are not generating
revenue or increasing your customer base?
Is your time worth $25, $50, $100 per hour….or more? When you get busy
doing those tasks that don’t directly generate revenue, consider how much
it is costing you.
For example:
You charge $75 per hour for your services/time. You spend a total of 5
hours trying to catch up on your correspondence…entering information into
a database, typing and re-typing your letters and preparing them to be
mailed.
$75/hr X 5 hours = $375.00 of your valuable time and profit
If it would cost you less to outsource, why not do it? Why not allow a
professional to handle some of your tasks leaving you with more time to
generate revenue?
$25/hr (sample cost to outsource) X 5 hours = $125.00
$375 - $125 = $250 + the $ of the contract you signed while a
professional took care of the non-revenue generating tasks.
Although you are spending some of your hard earned money, you are gaining
so much more. Outsourcing gives you professional assistance, which in
turn saves you both time and money...the two things that most small
business owners need more of.
About The Author
Janice Byer is a certified Master Virtual Assistant and owner of
Docu-Type Administrative & Web Design Services (http://www.docutype.net). See this and other articles on her website.
jbyer@docutype.net
Tuesday, July 28, 2009
Credit Report And Correction Techniques
Credit Report And Correction Techniques
by: Virginia Broobin
The three major credit bureaus, Experian, Equifax and Trans Union are
similar and feature a "Credit Score", which is created from credit report
data submitted to them about you. Their report includes where you live,
your bill-paying habits, and bankruptcy and arrest information. The
information compiled by them is used to determine whether you would be a
good borrower. It may also be used by a business to decide whether you
would be a good employee.
Credit report repair involves techniques for removing negative credit
records from your credit report. These are the exact same methods credit
score repair clinics and attorneys may charge up to $3,500 to perform. It
is also possible to outsmart creditors who are damaging your credit score.
1. Many times the creditor does not re-verify in time or the credit
bureau is busy and does not handle your dispute properly. This credit
record must then be deleted from your credit report.
2. Every negative credit record on your credit report can be negated by
you at any time. The credit bureau must reinvestigate and if that item
cannot be verified within a reasonable amount of time, that credit record
must be removed from the credit file (credit report).
3. Challenged credit record when challenged can be erased by mistake.
4. The credit bureau must prove each credit record on your credit report.
If this is not possible, it must be stricken from the credit report. So,
if the credit bureau cannot verify the credit record when investigated,
it must be removed from your credit file (credit report) even if it is
true.
5. It is possible that a very old credit records cannot be verified
because records may no longer exist after 1 or 2 years on credit report.
Your credit score is important for obtaining credit. Your credit score is
important to know, whether you need a new credit card, an auto loan, or a
mortgage. Lenders use your credit scores to decide whether you are a good
credit risk. If you have a high credit score, you are more likely to
obtain the best rates.
To obtain the excellent credit report service, correct your credit, get
FREE online Credit Report, make your Credit Score higher or avoid
becoming a Victim of Identity Theft visit Legalhelper.ws (
http://www.legalhelper.ws ).
About The Author
Virginia Broobin- Financial marketing specialist.
contact@legalhelper.ws
by: Virginia Broobin
The three major credit bureaus, Experian, Equifax and Trans Union are
similar and feature a "Credit Score", which is created from credit report
data submitted to them about you. Their report includes where you live,
your bill-paying habits, and bankruptcy and arrest information. The
information compiled by them is used to determine whether you would be a
good borrower. It may also be used by a business to decide whether you
would be a good employee.
Credit report repair involves techniques for removing negative credit
records from your credit report. These are the exact same methods credit
score repair clinics and attorneys may charge up to $3,500 to perform. It
is also possible to outsmart creditors who are damaging your credit score.
1. Many times the creditor does not re-verify in time or the credit
bureau is busy and does not handle your dispute properly. This credit
record must then be deleted from your credit report.
2. Every negative credit record on your credit report can be negated by
you at any time. The credit bureau must reinvestigate and if that item
cannot be verified within a reasonable amount of time, that credit record
must be removed from the credit file (credit report).
3. Challenged credit record when challenged can be erased by mistake.
4. The credit bureau must prove each credit record on your credit report.
If this is not possible, it must be stricken from the credit report. So,
if the credit bureau cannot verify the credit record when investigated,
it must be removed from your credit file (credit report) even if it is
true.
5. It is possible that a very old credit records cannot be verified
because records may no longer exist after 1 or 2 years on credit report.
Your credit score is important for obtaining credit. Your credit score is
important to know, whether you need a new credit card, an auto loan, or a
mortgage. Lenders use your credit scores to decide whether you are a good
credit risk. If you have a high credit score, you are more likely to
obtain the best rates.
To obtain the excellent credit report service, correct your credit, get
FREE online Credit Report, make your Credit Score higher or avoid
becoming a Victim of Identity Theft visit Legalhelper.ws (
http://www.legalhelper.ws ).
About The Author
Virginia Broobin- Financial marketing specialist.
contact@legalhelper.ws
Monday, July 27, 2009
Details about Refinancing a Second Mortgage
Details about Refinancing a Second Mortgage
by: Allan Young
According to the Mortgage Bankers Association, 2009 will see the amount
of mortgage refinances rise from about $850 billion to over $1.9
trillion. While most of those refinanced mortgages will be primary
mortgages, there are many good reasons to consider refinancing a second
mortgage on your home. If you are making payments on a second mortgage,
also referred to as a home equity loan, refinancing could save you a good
deal of money on your loan repayment.
Why Refinance a Second Mortgage?
The reasons for refinancing a second mortgage are no different than the
reasons for refinancing a primary mortgage. When refinancing a second
mortgage you can potentially lower monthly loan payments, get into a
fixed rate loan from an adjustable rate loan, shorten the term of your
loan, and even get cash back at the closing. In addition to these
reasons, refinancing for a second mortgage also helps to combine your
first and second mortgage into one loan, so that you will have only one
payment to make. Refinancing for a second mortgage can also help to get
rid of private mortgage insurance. It is most important to know that
refinancing for a second mortgage is essentially the same process as
refinancing for your primary mortgage.
Does Refinancing Your Second Mortgage Make Sense?
There are many factors to consider when deciding whether or not to
refinance a second mortgage. Before you apply for a loan, you should
carefully weigh the costs versus the benefits, to see if it makes
financial sense for you. In order for a mortgage refinance to make sense,
most financial experts suggest that you follow some basic rules of thumb:
- A mortgage refinance may be a good idea if the interest rates have
dropped at least one percentage point below your current second mortgage
rate.
- A mortgage refinance only makes sense if you plan to remain in your
house for at least four more years.
- The costs of taking out a new loan plus any penalties for early
repayment of your old mortgage are less than your savings if you
refinance.
- Your financial circumstances have changed enough that you can qualify
for an interest rate that is at least one percent lower than your current
second mortgage interest rate.
How to Refinance a Second Mortgage
Before you decide on a second mortgage, you should first assess your own
financial health. Check your credit report to be sure that it accurately
reflects your current circumstances. If there are inaccuracies or
discrepancies on your credit report that may lower your credit score,
contact the credit bureaus to have the situation dealt with and removed.
If your credit is shaky, do what you can to rehab your credit score. Try
to pay off credit card balances as much as you can, and bring all of your
accounts to current standings. In certain cases, you may have to resolve
to make regular payments on all of your accounts for several months
before actually applying for a mortgage refinance loan.
You also want to decide what your aim is for refinancing your second
mortgage in order to figure out what kind of new loan to seek. For
example, if you want to lower your monthly payment and save money on your
overall mortgage, look for a mortgage refinance with a lower interest
rate. If you want to lower your monthly payment but the overall mortgage
is not important to you, try to refinance into a longer term second
mortgage. If your intent is to pay off your mortgage more quickly, look
for a mortgage with a shorter term. Your monthly payments will be larger,
but you will save a considerable amount of money over the life of your
loan. Lastly, if you want to combine your primary and second mortgage,
look for the lowest interest rates and shortest term that you can afford.
You will also want to get loan quotes from several lenders in order to
find the best deal. You do not have to refinance your current second
mortgage with the original lender, although your current lender may offer
you the best terms. Since each lender has their own criteria for
approving loans and deciding on interest rates, the loans that you are
offered can vary by as much as a full percentage point. It is to your
benefit to shop around and compare several different loan quotes. Not
only will you have a wider variety of choices of loans, but you will also
have bargaining power if you choose to negotiate with a particular loan
company.
Lastly, you want to choose the best second mortgage refinance loan that
you are offered. Once you have all of your loan quotes in line, compare
them carefully to choose the best one for your needs. Be sure to count in
the closing costs and any special incentives offered by the various loan
companies into your calculations. When you have made your choice, contact
the winning lender and finalize the arrangements for your mortgage
refinance.
About The Author
Allan Young is a freelance writer who writes about mortgages and home
ownership, often discussing a specific aspect of owning a home such as
refinancing home mortgage .
The author invites you to visit: http://www.absolutemortgageco.com
by: Allan Young
According to the Mortgage Bankers Association, 2009 will see the amount
of mortgage refinances rise from about $850 billion to over $1.9
trillion. While most of those refinanced mortgages will be primary
mortgages, there are many good reasons to consider refinancing a second
mortgage on your home. If you are making payments on a second mortgage,
also referred to as a home equity loan, refinancing could save you a good
deal of money on your loan repayment.
Why Refinance a Second Mortgage?
The reasons for refinancing a second mortgage are no different than the
reasons for refinancing a primary mortgage. When refinancing a second
mortgage you can potentially lower monthly loan payments, get into a
fixed rate loan from an adjustable rate loan, shorten the term of your
loan, and even get cash back at the closing. In addition to these
reasons, refinancing for a second mortgage also helps to combine your
first and second mortgage into one loan, so that you will have only one
payment to make. Refinancing for a second mortgage can also help to get
rid of private mortgage insurance. It is most important to know that
refinancing for a second mortgage is essentially the same process as
refinancing for your primary mortgage.
Does Refinancing Your Second Mortgage Make Sense?
There are many factors to consider when deciding whether or not to
refinance a second mortgage. Before you apply for a loan, you should
carefully weigh the costs versus the benefits, to see if it makes
financial sense for you. In order for a mortgage refinance to make sense,
most financial experts suggest that you follow some basic rules of thumb:
- A mortgage refinance may be a good idea if the interest rates have
dropped at least one percentage point below your current second mortgage
rate.
- A mortgage refinance only makes sense if you plan to remain in your
house for at least four more years.
- The costs of taking out a new loan plus any penalties for early
repayment of your old mortgage are less than your savings if you
refinance.
- Your financial circumstances have changed enough that you can qualify
for an interest rate that is at least one percent lower than your current
second mortgage interest rate.
How to Refinance a Second Mortgage
Before you decide on a second mortgage, you should first assess your own
financial health. Check your credit report to be sure that it accurately
reflects your current circumstances. If there are inaccuracies or
discrepancies on your credit report that may lower your credit score,
contact the credit bureaus to have the situation dealt with and removed.
If your credit is shaky, do what you can to rehab your credit score. Try
to pay off credit card balances as much as you can, and bring all of your
accounts to current standings. In certain cases, you may have to resolve
to make regular payments on all of your accounts for several months
before actually applying for a mortgage refinance loan.
You also want to decide what your aim is for refinancing your second
mortgage in order to figure out what kind of new loan to seek. For
example, if you want to lower your monthly payment and save money on your
overall mortgage, look for a mortgage refinance with a lower interest
rate. If you want to lower your monthly payment but the overall mortgage
is not important to you, try to refinance into a longer term second
mortgage. If your intent is to pay off your mortgage more quickly, look
for a mortgage with a shorter term. Your monthly payments will be larger,
but you will save a considerable amount of money over the life of your
loan. Lastly, if you want to combine your primary and second mortgage,
look for the lowest interest rates and shortest term that you can afford.
You will also want to get loan quotes from several lenders in order to
find the best deal. You do not have to refinance your current second
mortgage with the original lender, although your current lender may offer
you the best terms. Since each lender has their own criteria for
approving loans and deciding on interest rates, the loans that you are
offered can vary by as much as a full percentage point. It is to your
benefit to shop around and compare several different loan quotes. Not
only will you have a wider variety of choices of loans, but you will also
have bargaining power if you choose to negotiate with a particular loan
company.
Lastly, you want to choose the best second mortgage refinance loan that
you are offered. Once you have all of your loan quotes in line, compare
them carefully to choose the best one for your needs. Be sure to count in
the closing costs and any special incentives offered by the various loan
companies into your calculations. When you have made your choice, contact
the winning lender and finalize the arrangements for your mortgage
refinance.
About The Author
Allan Young is a freelance writer who writes about mortgages and home
ownership, often discussing a specific aspect of owning a home such as
refinancing home mortgage .
The author invites you to visit: http://www.absolutemortgageco.com
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