29 Jan 10 Last Resort Debt Solutions

If you find yourself very deep in debt, you only have two choices to resolve the problem: file for bankruptcy, or try and consolidate the debt. Filing for bankruptcy is a last resort, as that road will only lead you to more heartache and the scar you make on your credit will be almost impossible to heal. But some debts are too large to finance and successfully pay back. You have to weigh both options to see whether or not your debt is manageable, or if hitting bottom to start over is the best option.

The first step you should take is assessing your credit report. This will give you an accurate record of how badly your debt has damaged your credit score. You’ll also give an idea of how widely your debts span, and where exactly you owe money. The typical credit score is in the high 500-600s, anything slightly lower is manageable, but if you’re in the 300s that’s a severe problem. 300 is basically as low as it gets, at this stage it’s time to rethink your strategies.

Try to examine your monthly finances and see what you can cut to increase how much money you can pay out to eliminate your debt. Try and find as much as possible, so that you can live relatively comfortable, but also putting as much into the debts as possible. Paying off interest is a pain, and the worst part of debt, so you have to make sure you can pay well over the interest amounts, otherwise you’re just maintaining your debt.

If you find that consolidation won’t provide enough relief from interest rates, to pay off the debt within a number of years, bankruptcy might be your only option. Bankruptcy should always be a last resort, but if you’re so deep in debt there’s no way to dig yourself out, it’s almost a necessity. Your credit will be severely damaged, but any damage can be repaired as long as you don’t make the same mistakes the second time around.

Tags: 300s, Accurate Record, Consolidate Debt, Consolidation, Credit Report, Credit Score, Debt Solutions, Debts, Eliminate Debt, Filing Bankruptcy, Filing For Bankruptcy, Heartache, Hitting Bottom, How Much Money, Interest Rates, Last Resort, Scar, Second Time, Two Choices

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09 Jan 10 Careful Considerations When Buying A Home

When you’re a first time home buyer, there are a lot of mistakes you can make. Avoiding those pitfalls is difficult, because sometimes you don’t know a pitfall until you’ve been ensnared into one. The best thing you can do is try and be as informed as possible. Do your research, and prepare as best you can, and maybe you can avoid any unfortunate circumstances. Here are a few tips that will help:

-Have a good idea of how much money you have available to spend. The last thing you want to do is get into a bidding war that greatly exceeds your means. Part of the reason for this recession is too many people living beyond their means, don’t become one of them. Buying a house you can’t afford is never a good idea, so set an absolutely final mark on how much you’re willing to pay. Then, DON’T go over that price.

-Don’t be afraid to ask for professional help when considering home options. But don’t turn to a real estate dealer for help, because their interests are concentrated towards selling the home to you. A real estate agent’s job is to make any house fit for you, whether it’s really the right choice or not. You can’t trust a salesperson to provide you with unbiased information or opinions.

-Buying a home is a major decision, treat the decision as such. You shouldn’t buy a home on a whim, because chances are you’ll be living there for some time. Shop around so that you can find value for money, acceptable locations, and a house that you’ll be happy with in the long term.

-Make sure that you always have an inspector chosen by you investigate the house before even considering purchase. The problem with using an inspector provided by a real estate agency, is that they are more likely to be slanted in the opinion of the agency. Finding an independent third party guarantees a fair and unbiased assessment of the property.

Tags: Bidding War, Buying A Home, Buying A House, Careful Considerations, First Time Home, First Time Home Buyer, Home Options, How Much Money, Pitfall, Pitfalls, Real Estate Agency, Real Estate Agent, Recession, Right Choice, Salesperson, Third Party, Time Home Buyer, Time Shop, Unfortunate Circumstances, Whim

Filed in Home & Family, Home Appraisal, Real Estate Appraisal with 0 Comments

31 Oct 09 Creating A Personal Budget

Creating a personal budget is necessary for every family. Only through a budget can you determine how much money you are taking in, opposed to how much you are spending. Through a personal budget you can avoid going into severe debt, pay off your current debt, or set up a plan to save more money for a rainy day. It’s always a good idea to keep a close look at your finances, and a personal budget will set you up to do just that. Here is a plan that’s focused on clearing up any debt that you may have:

The first step is to keep a good record of every purchase you make, so that you have an accurate number of how much you spend. This way you can avoid overspending, putting more money than you’d like on a credit card, or overdrawing in your bank account. Try to keep a finances journal which tracks all of the purchases you make, utility bills included, but not credit card or other debt bills. Any money that you pay out for a whole month should be recorded.

Now you take that number and add up 11 more months of spending the same amount. This gives you a rough idea of how much you spend on average. Then take that final number and subtract if from your net income. Your net income is the amount you make after all taxes are paid and taken out.

From there you want to list any debts that you have, from credit cards, home loans, etc. This way you have a good idea of how much you are actually in debt. And from the money left over from your expenses vs. net income you can calcuate how long it will take you to pay off that debt, within your current budget.

From here you can figure out if you’re comfortable with the rate in which you’re paying off your debts. You can also formulate a new plan, by changing a few of your monthly spending habits, to free up more money to spend on your debts. Either way, now you’ll be in control of your budget, and you can get a better idea of where you’re going from here.

Tags: Accurate Number, Control, Creating A Personal Budget, Credit Card, Credit Cards, Debts, Family Budget, Finances, Home Loans, How Much Money, Net Income, Rainy Day, Rough Idea, Spending Habits, Utility Bills

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29 Jan 10 Last Resort Debt Solutions

09 Jan 10 Careful Considerations When Buying A Home

31 Oct 09 Creating A Personal Budget

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