|
|
One of the trends taking place right now is a desire to move away from using credit. Another point of interest is the idea that you can get by without a good credit history. After all, if you aren’t applying for a loan, do you really need to worry about what’s in your credit report? Many think that if they already have a home and a car, the credit report doesn’t matter anymore. While it would be nice if this were true, this isn’t always the case.
Your Credit History is About More than Borrowing
In the past, your credit report was mainly used as a way for lenders to determine how risky it would be to loan you money. Now, though, there are a number of people who use a credit history to judge your general level of financial responsibility, even if borrowing isn’t involved. Here are a few of the people who might look at your credit report:
Continue reading Why Your Credit History Matters — Even If You Aren’t Applying for a Loan →
By Kevin M
What’s old is new again—there is risk in carrying a mortgage on your home! The foreclosure wave and forced short sales of the past few years have shown that paying down—and ultimately paying off—your mortgage isn’t just desirable, but perhaps even a completely necessary step toward securing you financial future.
The risk of not paying off your mortgage
The people who are in the biggest hole right now aren’t the ones who’s property values dropped so much as the ones where the value dropped below the amount of the mortgage securing the property.
Let’s say we have two neighbors, each owning a near identical home worth $200,000. Home Owner A has a $50,000 mortgage on his home, while Home Owner B owes $180,000. A recession hits, bringing a 25% drop in home values, and lowers the value of each home owners property to $150,000.
Continue reading Why Paying Down Your Mortgage is More Important Than Ever →
The following is a guest post by Kevin Craig
Bad spending habits are something that every spend-thrift American is addicted to. Easy availability of credit cards and quick access to loans has fanned this fiery practice all the more. And the result is deep debt crisis faced by almost every second person in the US. Though there are several debt settlement companies across different states in the US your own endeavors can save you and keep out of debt.
Does your careless spending habit take a toll on your finances every month and leave you at the mercy of creditors? Why not start taking a little initiative to put a check on reckless expenditures and avoid unpleasant debt problems? Breaking bad spending habits is not a Herculean task. It is all about imposing discipline on your expenses.
Just check out the following three tips to kick-start your cost-curtailment plan:
Continue reading How to Control Your Spending Habits and Avoid Debt →
By Kevin M
The state of the economy over the past few years has called into question on our cultural love affair with debt of nearly all types. The once unassailable notion that home mortgages in nearly any type and in almost any amount were “good debt” has all but crumbled. A mailbox stuffed with credit card pre-approvals—once seen not only as evidence of a sterling credit rating but also as a symbol of our status as solid citizens—is now considered a temptation on a magnitude not seen since the infamous apple caper in the Garden of Eden—resist we must!
But reversals in the job market and collapses in asset values have all served to bring home a point that seemed to be virtually ignored in recent decades: debt has to be paid back!
As had become our happy little way, debts were seldom extinguished outright by full payoff in the time honored way, but rather by rollover, consolidation or the sale of the securing assets. When those avenues are exhausted we’re left with two unpleasant options—payoff or default. OUCH!
Continue reading How Much Student Loan Debt Is Too Much? →
By Kevin M
Rates for fixed rate mortgages are below 4% for a 30 year loan, and down close to 3% for 15 year loans. So is now a good time to refinance? Maybe. And only maybe.
If you have an adjustable rate mortgage (ARM), a funky ALT-A, a variable home equity line of credit that can be consolidated, or most definitely a sub-prime deal, refinancing is a no-brainer. You’ll probably get better terms and a much better rate, so do it and don’t delay. No one ever needed a six month, interest-only ARM 3ith negative amortization in the first place!
It’s not all about rate!
Continue reading Is Now a Good Time to Refinance? →
By Timothy Ng
You can save a lot of money and eliminate your credit card debt faster if you understand the balance repayments of your credit card and the interest you are paying. In this article you can find out how you can save money every month.
Many people get into credit card debt because they simply do not understand interest rates and the actual dollar value that they represent. They also do not understand about the fees and charges associated with the credit card and get caught up in debt before they know it.
Most cardholders start off with good intentions when they are making purchases on their new card and fully expect to be able to pay off the balance at the end of the month. In many cases, however, something comes up and they are unable to make a full payment. In fact, some people end up dragging themselves even further into debt by applying for an online check advance to pay off their debt. Still, some will continue to charge purchases to their card, even though they know good and well that they are just increasing their debt.
Interest rates add on to the balance and the cardholder is suddenly faced with credit card debt. People need to understand interest rates so that they can stay on top of their debt, especially in today’s economy.
Continue reading Minimum Monthly Balance Tip For Credit Card Debt →
It’s easier when you take care of a few things first
By Kevin M
It’s been said that the best way to accomplish a big project is to break it into a series of smaller ones. Paying off credit cards can be as big a project as we can imagine, based on the size of the debt that needs to be paid off.
Often it’s the size of the debt itself that presents the biggest obstacle to even getting started. While it may not be too difficult to payoff $10,000 in credit card debt going from a standing start, a balance of $50,000 will require marshalling all of our efforts and resources.
It’s important to realize that paying off credit cards isn’t just about discipline. A huge part of the project is emotional and you’ll have to do it in such a way that you’re rewarding your efforts by reaching crucial milestones along the way. Take it in stages, stack the deck in your favor, and the whole process will be less painful.
Continue reading Payoff Your Credit Cards – But Set the Stage FIRST →
By Kevin M
Despite the near sacrosanct status of tax sheltered retirement accounts, there are situations in which liquidation makes abundant sense. From the outset, let me say that I don’t advocate raiding retirement accounts except under extreme circumstances.
When to consider tapping retirement savings
My personal opinion is that if survival is at stake tapping retirement savings MUST be on the table. Under certain circumstances it becomes beyond absurd to allow your financial situation to collapse while protecting retirement savings. Retirement savings are, after all, a financial tool and not some sort of gold-plated legacy to be shielded at all costs.
Under what circumstances should we seriously consider withdrawal?
Continue reading Should You Use Retirement Savings to Pay Off Debt? →
|
OutOfYourRut Disclaimers
General: Any information in regard to money, credit, personal finance, or in regard to any other monetary topic, provided or shared on OutOfYourRut.com is presented for information and entertainment purposes only and does not constitute financial advice. It is intended to provide general information only and does not constitute personal financial advice in regard to your specific circumstances...MORE-->
|
