Thursday, July 3, 2014

Exterminating Your Credit Card Debt On Your Own

The debt phenomenon is plaguing the entire US economy and though the US government has just raised the debt ceiling to avert the risk of yet another national debt default, what is the actual condition of the laymen? How high is their personal debt ceiling? Are they taking any particular steps that can help them contain their spurring expenses? It has been seen that there is a sudden rise in the number of people who are rushing to professional companies to get out of debt but is it the only way out? Can’t the debtors take some solid steps towards their rising debt problems so that they can get back on the right financial track? Well, there are ways in which you can eradicate your high interest debts on your own. Check out some steps that you may take to reduce your debt burden and live a debt free life.

Craft a frugal budget

Most people think that frugal budget is nothing but pinching your pennies but this is far from being true. Living a frugal life is nothing but spending your hard-earned bucks on the necessities and not on the wants. You must learn to distinguish between wants and needs so that you can prioritize your expenses while buying yourself things. A budget can help you track your monthly income and expenditure and thereby assist you in monitoring your savings. Evaluate the budget at the end of the month so that you can make changes wherever necessary.

Credit Card Debt

Make a list of your debts

Unless you make a list of the total amount of debts that you owe, it is impossible for you to take any solid step towards removing it. Take a pen and paper and write down the principal amount, the interest rates and the due dates on all your accounts. This will enable you to get a clear idea of the total amount that you owe the principal amount and the interest rates in detail.

Save enough money

You must save enough money so that you may be able to build an emergency fund that may come of use when you meet sudden financial emergencies. Spend less than what you make in a month so that you can lead a life that is within your means. Make sure you spend at least 10% of what you earn in a month so that you can at least have enough money with which you can repay debt with ease.

Restrict the usage of your credit cards 

You must restrict the usage of your credit cards as much as possible so that it is easier for you to stop accumulating further debt. Carry cash instead of credit so that you can easily avoid the risk of falling in high interest debt. Buying something with credit must be a way that should be adopted only during an emergency.

As you continue taking the above mentioned steps, you must make sure that you negotiate with your creditors too. You need to tell them about your financial hardship so that they can negotiate and alter the terms and conditions on your loan and make it favorable for you. You can effortlessly get out of debt by making simple monthly payments to them.
Carry On Reading.....

Saturday, June 7, 2014

Put the money saving habit as a framework of your life

For lack of sufficient financial knowledge many people don't realize the importance of saving money. Other way round people who gained stable wealth made contributions to different personal funds compulsory and this is one of the main reasons of their success. Unfortunately young people usually don't have another teacher who will help them to master all financial issues except of life experience. But it is vital to equip yourself with the knowledge of what money is and how to deal with it in the most efficient way. 

money saving habit

Money saving strategy is not just frugal habits development and buying only the cheapest things. Of course it will help you to collect some amount but here is also important what you are saving for. Unless you are easily able to afford buying any luxuries of life frugal habits are your loyal assistants on this route. Here are some directions which are worth disbursing your money to.

1. Emergencies. Not any person is insured from unexpected events which bring financial challenges. Of course if you don’t have an insurance policy but still in case you have money expenses put a drain on your wallet. Using the service of even best cash advance lenders entails huge repayments of the interest. But if you create an emergency fund and put there some percentage of each paycheck you will not just be able to overcome financial challenges and to avoid tension which is connected to the lack of cash but also to get a profit in the form of bank percentage on your deposit account.

2. Investments. Saving money on a bank account is a good deal but the yield percentage is too low that is why part of your income should be invested. There are different options to invest money starting from launching a business and ending with buying and selling stocks. Before you chose investment tools and strategies you need to get much knowledge about how to do it effectively in order not to blow off all your money.

3. Fund for special events.
Events like wedding, buying a car, tuitin and so on require large sum of one-time payment. Unless you have high incomes from your investments salary will not be able to cover such expenses. In order to avoid taking out a bank loan, repaying huge amount of interest, risking to build the debt and to spoil a credit score it is better to think about it beforehand and to collect the necessary sum by conserving part of each paycheck.

4. Retirement fund. You have heard much about the necessity to save some money on your retirement and treat it seriously. Governmental maintenance will not let you enjoy your life in a senior age if you don't have other income sources. Once you feel your feet on the ground start making contributions to the retirement fund.

Such approach to money will help you to easily collect the necessary sum to pay for all needs and wishes. Moreover this is a perfect way to gain everlasting wealth. So take charge of your life and don't let it just pass by you.
Carry On Reading.....

Wednesday, June 4, 2014

Are You Budgeting for Your Retirement?

Budgeting is a skill we can all use in a multitude of ways to ensure we have a better lifestyle and a better financial outlook on life. This article explains how budgeting can also help when it comes to our retirement years.

Budgeting is useful in lots of different ways. We can use it to ensure we don’t live beyond our means on a monthly basis. We can use it to free up extra cash when we need it. We can also use it to plan ahead so we can find some additional cash to save up for the future.

The latter example is particularly appropriate here as we can also use this example to help us amass enough cash to put into a healthy pension pot. Budgeting will help you in lots of ways when it comes to your retirement and the sooner you can start using this method the better.


For starters a budget will help you put away as much as you can to build up a healthy pension pot as quickly as possible. The more you have in your pot the easier it is to build up a bigger fund to draw on when you retire. Even budgeting an extra £20 a month could make an enormous difference over the space of two or three decades. Taking the time to sit down and plan your budget with the future in mind is a very good idea indeed. You can also plan your budget for the present day at the same time, so you can really get hold of your finances.

Another good point to note is you can make more than one budget. Obviously you can assess your finances now to see how much you can afford to put away for later. But you can also consider what you would like your finances to be like when you retire, so you can better plan for that time.

This isn’t easy to do, especially if your retirement is still a decade or two (or even more) away. However you can set goals for that time and use these to help you plan ahead. For example do you aspire to take a world cruise when you eventually retire? Perhaps you would like to go to Australia for six weeks to visit relatives you have never have a chance to see while you are working? These goals are admirable but you will need the cash to make them happen. 

When you start putting this information down on paper you can start to see whether your current plans are going to steer you towards achieving those goals. If you need to improve on the amount you have in your pension pot you might consider pension transfer options among other things. Whatever you do you can see how important it is to start budgeting and to use this planning tool wherever you can.

Budgeting isn’t difficult but it never seems like the most important thing you could be doing, does it? Take heed though – if you do sit down and get started with a budget plan you will feel empowered by the results. No matter how much or how little cash you have and whether you choose pension transfer options or not, you will feel better knowing the facts and working with them.
Carry On Reading.....

Thursday, May 15, 2014

How to Get Great Insurance Deals for Your New Home

If you are moving into a new property in the near future, you will no doubt be thinking about getting a decent deal on insurance. This article provides suggestions that will help you in this respect, to enable you to get the deals you really want.

Every home needs insurance. It helps you protect your property and your belongings in case anything dire should happen. While contents insurance isn’t compulsory it does protect you against theft and the loss of your belongings in other situations as well. Buildings insurance is definitely required because it will cover your actual bricks and mortar home if anything should happen to that. No one wants to think anything could happen to their home, but if it did at least you would know you had cover.

Flood insurance

The question is how you can find the best deal for your needs in terms of insurance. There are lots of insurance companies to choose from and this can make things challenging when it comes to finding a good deal. However if you spend some time researching the various opportunities and companies available to you, it becomes easier to see the wood for the trees, so to speak.

The first thing to think about is whether you want to get your buildings and contents insurance from the same company. Many people do this because it is possible to get a discount if you do. However don’t be lured in by a discount without checking the small print first. Make sure you do get the cover you really need above all else.

Aside from this you also need to consider whether you need more specialised insurance. For example if your property is situated on a known flood plain, you will probably need flood insurance. UK properties suffered greatly in these areas at the beginning of 2014, and this was not the first time they have gone through severe flooding situations. When you have flood insurance UK you have the peace of mind of knowing you are covered in the event that the rains come down and the rivers burst their banks and affect your home.

Of course whatever type of insurance you are looking for, the key is to try as many different companies and comparison sites as you can. If you go for the first site you find that gives a decent quote, you won’t know whether another site might offer an even better quote you could take advantage of. This means you need to take your time looking round, and very often you will be rewarded if you do.

One final point worth noting concerns the small print. No one enjoys reading it but it is all there for a reason and it is essential that you take the time to read through it. You would hope never to need your insurance anyway, but if you did you wouldn’t want to discover a clause that prevents you from claiming as you intend to at the moment.

Whatever type of house insurance you are looking for, using these tips will help you find a policy you will be happy to pay for. This will make it easier to get the best deal and the best cover for your needs as well.
Carry On Reading.....

Thursday, March 20, 2014

Six IRS Caution Signs

It’s nearly impossible to pinpoint exactly what will trigger an IRS audit since the agency tries its best to keep industry secrets under wraps. Nevertheless, there are a number of signs which are known to be, across the board, massive red flags for an investigation.

The three basic types of IRS inquiries are matching, examination, and finally audits. Most of us are well aware of what an audit is, but what about the other two?

 Six IRS Caution Signs

The IRS database uses copies of your 1099s and W-2 forms to match the income noted on your return. If an error has surface don your 1099 showing the wrong amount, then it’s your responsibility (and no one else’s) to have the issuer redo the paperwork with the factual information. An examination is just that—the IRS needs additional personal information to authorize a claim/deduction.  

Disproportionate Donations

The IRS keeps a careful eye on the proportion of your income you give away in relation to nationwide averages for your income bracket. To put it simply, you’re not allowed to evade taxes by writing-off large philanthropic contributions. Likewise, you’re bound to raise eyebrows if you fail to submit Form 8283 for non cash donations exceeding $500. For that reason it’s crucial to file the proper paperwork and keep copies of all tax-related documents!

Rental Properties

In lieu of the recent economic downturn, the IRS has enacted a number of protocols to combat losses from passive real estate investors who offset their income using these “failed” investments. Since the early 90s, the number of real estate professional audits has risen significantly. To clarify, a “failed” investment is one that is either causing the investor the lose money in the short run because of high monthly expenses and depreciation or one that nets an overall loss at the time of liquidation. In order to legally write off losses, IRS regulations require you to spend more than fifty percent of your time or at least 750 hours each year in real estate related tasks.

Offshore Accounts

The term ‘offshore account’ may conjure up images from a James Bond or mobster flick in your mind, but to an IRS agent all it signals is tax evasion. Individuals with undisclosed foreign accounts face severe IRS penalties if they’re caught stashing away their bucks. The law states that any offshore account totaling more than 10k must be reported with FinCEN Form 114 and/or Form 8938.

Overinflated Income

The statistics suggest that only 1 in every 100 individuals gets IRS audited, however the odds change as your income bracket goes up. People earning $200,000 or more have an audit rate somewhere around 3.26 percent. That’s equivalent to about 1 in 30 tax returns. This isn’t in any way an attempt to discourage you from earning more, but just be aware that the IRS does take these factors into consideration.

“If your income has risen dramatically in the past year, or fallen dramatically, your return may be likely to trigger an audit, simply based on a computer scoring system called the Discriminate Function System, which rates potential for mistakes or dishonesty based on similar IRS returns,” says Lawrence Levy, CEO of Levy & Associates.

Writing-Off Vehicles

If you think you can sneak your “business vehicle” into your yearly write-offs, think again. Unlawfully declaring 100 percent business related use of your vehicle can be punishable by more than just a slap on the wrist. If you do decide to fully-claim the automobile, be sure to list the depreciation on Form 4562, keep timely records of all mileage, and related expenses. Heads up though—you can’t claim maintenance expenses plus insurance and other costs if you’re going by the IRS’ mileage rate.

Privately Owned or Small Businesses

Owners of small business—especially those that are cash based—are strongly advised to be honest in their declarations. Studies show that these types of business, on average, tend to declare much less than they actually take in. Remember honesty is the best policy when it comes to dealing with Uncle Sam because if he catches on to any misconduct, you’re guaranteed to be the winner at a losing game.
Carry On Reading.....

Wednesday, March 19, 2014

The How to Guide to Bad Credit Car Loans

Having a bad credit rating is not the end of the world. You will see your car loan application approved – provided you meet reputable lenders’ key approval criteria. The following five tips will help.


Always be honest in your application. That means two things: Make true statements and don’t leave anything out. “Lending money is about trust,” says Kyle Rhys from “The lender needs to trust you, and you have to expect your application to be scrutinized. This means the claims you make in that application will be cross-checked against your financial records. It is always much better to paint a true picture in your application, rather than a falsely positive one.”

Bad Credit Car Loans

Credit file

Go to to see how easy it is to access your credit file. Look carefully at the entries in your file, and if you believe any error has been made, contact the company which has made the entry, and discuss the matter.

Bank account

Your bank records will form part of your application. You need to demonstrate sound money management skills. This means: regular income plus not letting your account get overdrawn. In other words, you need to spend less than you earn. Ensure that there are always sufficient funds in your account to meet regular automatic deductions, and try to save each week, if only a small amount. Regular savings are an easy way to demonstrate to a potential lender that you have sufficient income capacity to repay a loan.

Credit cards

Pay your credit card on time – and pay more than the minimum required monthly repayment. This demonstrates two things to the person assessing your application: first, that you take your financial obligations seriously. Second, that your income capacity is sufficient to more than cover your obligations.


Lenders will look for two things here: regular income and stability. If you are a casual employee, you will need to have a significant track record with your current employee. In the case of full-time and part-time employees, you will need to have worked beyond any probationary period in your current employee contract. It will be viewed positively, from a stability point of view, if you have changed jobs only a few times in the past several years.
Carry On Reading.....

Sunday, March 16, 2014

The 5 Biggest Factors That Affect Your Credit

Before we can manage the factors which affect the credit score, we need to know something about the things which relate to the credit scores.

What is the credit score?

 A credit score is a three digit number given to an individual to judge whether he is trustworthy for giving loans for people with bad credit or not. These credit scores are given by the credit reporting agencies that have every financial data of an individual. Whenever someone applies for a loan or any type of finance, then the lender first contacts the credit reporting agencies to check the customer’s credit score and then decide whether they should grant a loan to that person. These scores range between 300 to 700 words, the higher the credit score lower will be the interest rate and lower the credit score higher is the interest rate charged on your loan.

Which are the credit reporting agencies?

Credit reporting agencies are those agencies who maintain all the credit related information of an individual. Each and every person who applies for a credit card or any kind of loans, their information like mode of payments, income, and all other     information’s is there with them. They are in contact with every bank and every financial institution which provides credit and these banks and financial institutions update them with all the information of their consumers each month. There are three large credit reporting agencies in the United States, Transunion, Experian and Equifax whose job is to collect every financial data of consumers, and maintain the information for future in case someone asks for references.

Your Credit score

These three credit reporting agencies never share their information regarding their consumers with each other so while applying for a loan you should go and check your credit history in all the three credit reporting agencies as you may never know which agency your lender will go to.
All business agencies like auto lenders, credit card companies, insurance agencies, banks, use your credit history data provided by these credit reporting agencies in order to know whether you are a credit trustworthy person or not. High credit score would mean less interest rate, but if you have low credit score then, you will be charged with higher interest rates. 

All the lenders also send your reports to these three credit reporting agencies to update their information. Every payday loans no credit check lender is legally bound to regularly update all the information of their current customers to these credit reporting agencies.

Factors which affect the credit score of a person 

Payment History: Your payment history is the most important content to measure your credit score. If your payment records are not good, then you may spoil your credit score to a great extent. Usually credit reporting agencies look at the delays in payment. The greater is the delay; the lower is the credit score. Your payment history is 35% of the whole credit score given to you. 

Using Credit: The Credit utilization is also one of the most important factors used for measuring your credit score. Your total credit balance contributes around 30% in determining your credit score. Credit usage is used for measuring credit score because it portrays the total credit, which you take every month as a revolving credit.  It puts a major negative impact on your credit score if you don’t pay your credit card balance on time. If you pay your credit card balance on time and use less credit then you may boost your credit score positively to a great extent. Some people think that closing a credit card will also improve their credit but it is not so, closing a credit card may spoil your credit score as you will spoil your credit utilization ratio. You should always use less credit and pay  the credit card balance on time to maintain a good credit score.

Period of Credit History: The length of your credit history also affects your credit history. That is why it is said that if you want to close a credit card account then close that account which you bought recently, you should never close that credit account which is the oldest as it may have an old credit history, which shows that you are a good customer and lenders feel safe in lending money to the person with old credit history. Old credit history comprises 15% of your credit rating.

New Accounts: opening a new credit account in spite of having already 1 credit card account spoils your credit score. Opening a new credit account means you are in need of new credit and taking more credit is harmful for your credit score. So it is suggested that you should not open a new credit account unnecessarily. A new credit account contributes 10% of your credit ratings.

Different Types of Credits used: the credit score of an individual is positively affected if you are paying toward all your dues. Paying all your dues timely shows that you are concerned about all your debts and you are managing well from your income to pay toward all your dues on time. If you maintain a regular flow of money toward all your dues then it will put a nice remark on your credit score and you can apply for many loans at one time in the future. Paying toward all dues contribute 10% to the credit score.

If a person manages all the above five mentioned things then he can maintain a really good credit score and  will not have to worry about getting into unmanageable debt.
Carry On Reading.....

Wednesday, March 12, 2014

Are You Investing Or Gambling?

Gambling is often considered as an act of putting something at stake in case of a contingency. When we consider, gambling in the context of investment trading the situation becomes all the more complex and the finances of people come to be at stake. 

Gambling has become a normal practice with the people making investments, however, one requires to be extra cautious of these investments because markets do not function in a set manner and are prone to a lot of changes which are difficult to guess even by the experts.

Hidden Gambling Tendencies

We all react to the market. In fact a lot of news in the markets is based on rumors. No matter how diligent we are when we look at the ways we invest money, there are chances that we get carried away by these sudden news which come with a lot of promises of wondrous results. We may say that we are not into gambling, but if we are engaged in any of these instant decisions we are actually into gambling big time.

Investing Or Gambling

These gambling tendencies do not go with time. In fact, all those who are in the market dealing with trading, they are prone to these gambling tendencies. In fact the companies operating in the space earn a lot using the gambling techniques and hence these are never going to go anywhere rather stay with investments.

Social Proofing

There are a lot of people who are scared to invest in the open market. However, under social pressure a lot of them are seen to invest in the markets. It has been observed that when a lot of people are making investments in the market, the markets are doing well and most of them are earning good, people get influenced by these and are often seen investing into the markets. Thus, these investments are simply because they do not want to be left out of the social circle where they are living.

If you are dealing with stocks and trading in the financial markets, but possess adequate knowledge about the companies you are investing in, you are never into gambling. However, if you get into a financial deal and trading without any understanding of the companies and the trades you have entered into, you are actually into gambling.

Contributing Gambling Factors
Anyone involved in the financial markets can be seen to pass through a learning curve. A lot of times their speculations which may be based on ample research on the payday loans no credit check companies may bear the results but at times these may boomerang too. For those who are not aware of the markets these moves may always look like gambling. However, these are the steps which offer a lot of learning to the investors. Let us look at some of the traits which are evident and indicate towards the gambling tendencies of people.

Gambling (Trading) for Excitement

If one loses in a trade move, there are bound to be emotions which can that of despair or a sense of satisfaction. Again, if the situation is such that the overall market scenario is negative and it is not only you, but a lot of people who are losing, the feeling of losing cannot be that strong. However, if the markets are in an upward trend but your investments fail to offer you the desired results, you will definitely not be in a good mood. There is a lot of excitement when you are trading, especially in the modern times where the globe seems to be the platform where you can trade. There are no defined boundaries for trading and one can make money even by means of Forex trading.

Trading to Win, and Not Trading a System

If you are looking at the traits of a good trader, you will find that they would make all sorts of investments in the market. It's not about winning every trade they get into in fact, it is earning more than the market performance. At times the market suddenly dives down and investors are set to lose a lot of their money if they act on impulse. However, a good trader would analyze and evaluate the whole situation and hold stocks and investments for some time till the markets stabilize and then act to get the gains or minimize the losses. One should be ready for the losses when they are dealing in the markets.

Loans and trading
There are a lot of people who are seen reacting to the market sentiments and social pressures and invest in the markets. A lot of times people do not have sufficient money and they take loans for people with bad credit to invest in the markets. When the markets are positive, these moves can bear positive results much to the delight of the investors, but as soon as the markets take a turn the loans become difficult to pay and at times people are seen losing their investments completely and are left with heavy loans to pay.
If you are not acting in a methodical way, but acting on impulses and emotions in order to earn profits, there are all the chances that you will lose on the money you invest. This means getting into gambling tendencies and the risking your investments.
Carry On Reading.....

Wednesday, February 26, 2014

Don’t Let Debt Stop You from Investing! Start with $100 or Less

Being mired in debt discourages many people from investing. While debt reduction is a critical priority, investing is also crucial to financial security.

Thankfully, there are several options that can be started for under $100.

Here are 3 choices that may deserve a place in your investment portfolio:

Direct Stock Purchase Plans (DSPP)

Numerous companies offer a direct means for investors to buy shares. These are typically brand name businesses with established market positions.

You can often buy just 1 share of stock to get started and use dollar cost averaging to buy through market changes. Investment Manager Elliott Broidy and other professionals may consider DSPPs to take positions in particular companies. Smaller investors can also use DSPPs in this manner. With a limited budget, you can purchase shares of companies in different sectors to easily diversify.

Don’t Let Debt Stop

The advantages of direct stock purchase plans include low cost, control and household names. However, you will need to manage the investments and make buy or sell decisions.

Mutual Funds

Several mutual funds offer professionally managed portfolios of stock or bonds with low minimums. Different mutual funds have unique objectives, which can range from American stocks to overseas investing, among others.
A mutual fund saves you time from having to research individual stocks and closely follow market conditions.  Mutual funds have expense ratios, which vary greatly and affect your returns. Time should be taken to consider fees associated with the mutual funds you are considering.

Additionally, mutual funds offer little control, as you are turning decisions over to the manager.

REITs (Real Estate Investment Trusts)

Investing in real estate requires capital, market savvy and financing.  Property Developer Isaac Toussie and other experienced investors can themselves face time or money challenges. For those with limited budgets and time, a REIT offers real estate exposure without owning property.

REITs are publicly traded securities that can be bought through a discount broker, often for just one share.You can also earn passive income on a monthly or quarterly basis, as REITs pay out money from collecting mortgage interest and rental income.

Since real estate has a negative correlation to stocks and bonds, buying REIT shares can lower risk in your portfolio.

With monthly and quarterly income, REITs offer an additional revenue source. When real estate in the portfolio is sold for a profit, REIT shares can increase in value. Unlike owning real estate, you can sell shares at any time.

Real estateshould be considered after core investments such as stocks or bonds are made.

Getting Started

Compounding helps those who get started have greater success than delaying. With numerous asset classes available, you can invest according to time horizon, risk tolerance and other personal factors.
Carry On Reading.....