by Adam | Oct 12, 2015 | Credit Repair
It’s so easy to swipe a credit card without thinking ahead about your payments, and before you know it, you may have some serious credit card debt piled up. Because of high interest rates and low monthly payment requirements, without a solid plan of attack it could take you more than 5 + years to get out of debt! However, if you follow these 3 tips, then you could get out of debt in just one to three years. Step 1 – Find or Get a Lower Interest Rate Many credit cards have high interest rates, which means that the majority of your monthly payment amount is paying that interest and not your principle balance. The fist thing you should do immediately is lower your credit card interest rate. You want more of your hard earned dollars going to the principle balance; this will save you many years of payments, not to mention thousands of dollars! There are a few ways you can lower the interest rate: If you are in good standing, you may be able to negotiate a lower interest rate with your card issuer. If they won’t budge, begin looking for a new credit card that offers 0% balance-transfer and a lower interest rate than your current card. Next, consolidate all your credit card debt to this new card in order to get rid of the highest interest rates. Step 2 – Set a Goal How many years do you think it would take to pay off that debt at your current minimum monthly payment? The answer might surprise you! You can tinker with a credit...
by Adam | Oct 5, 2015 | Credit Repair
Many parents are hesitant to let their high school student work, worried that it will interfere with their grades or extra curricular activities. In some cases this may be true, but for most students, working while in school will actually help them learn how to budget their time and money. They will learn successful habits that will set them up for success as adults. The Benefit of Work In lots of ways kids are expected to do more than children of the past. However, by limiting their work experience we are hindering their financial development. The earlier they can learn the skills of time and money management, the better. If we allow our children to make small, supervised mistakes now, they will undoubtedly be more responsible adults later. Finding the Right Job Before applying for a job, have your teen consider the following questions with you: What do I enjoy doing? How many hours a week can I work? What days and times am I available? How will I get to work? This will give you both a great starting place when looking at job openings. A school counselor may also be beneficial to speak with as they may they know of jobs that help fulfill your child’s school requirements and interests. How to Budget Time Successfully Here are some tips to make sure your teen can keep up in school and work. Plan ahead- Do weekly and monthly calendar planning as a family so your teen knows when to ask for time off or is aware of any conflicts. Keep in contact with school teachers and counselors so...
by Adam | Sep 28, 2015 | Credit Repair
Just think for a minute how much of your information is stored on-line, from retail stores, to doctors, to insurance. The more you think of it, personal information about you is all over the web! We are regularly hearing of more and more major companies experiencing security breaches that make millions of customers vulnerable. By using a credit monitoring service you are alerted of any possible threats to your credit, including identity theft, report errors, and your credit score evaluation to help you improve your credit score. Private Information On the Web USA Today pinpoints what information identity thieves can use to gain access your identity and money: User names, passwords, and PIN numbers Social Security numbers Phone and utility account numbers Bank and credit account numbers Employment and student identification numbers Driver’s license and passport numbers Professional license numbers Insurance identification numbers College or university financial-aid form information Protection From Identity Theft Identity theft is a raging fire that is spreading quickly, and the thieves are becoming better and better at it. The sad truth of the matter is that, according to the U.S. Federal Trade Commission, “it takes 12 months, on average, for a victim of identity theft to notice the crime.” By then it is unlikely you will get much resolved. A credit Monitoring service can alert you regularly (by text, phone call or email) so that you can take immediate action if there is even a chance that someone has tried to steal your identity! Reports From all Credit Bureaus A credit monitoring service will provide you with regular reports from Equifax, Experian and TransUnion. Having...
by Adam | Sep 22, 2015 | Credit Repair
Good credit can give you the freedom to make large purchases, take advantage of perks like airline miles, and more. Bad credit, on the other hand, can restrict your financial opportunities. If you want to have good financial credit, it is important to understand how certain things affect your financial opportunities. One thing to consider is your debt to income ratio (or DTI). Keep reading to learn more about the connection between your debt to income ratio and your credit. What Is A Debt To Income Ratio? Your debt to income ratio (DTI) is usually calculated by dividing your monthly debt payments by your monthly income. For example if you make $2500 each month and your debt payments are $700 each month, you would calculate your DTI by dividing 700 by 2500. $700 debt payments ÷ $2500 income = .28 which means your debt to income ratio is 28% When calculating your debt to income ratio, be sure to include car payments, student loan payments, credit card payments, and all other monthly debt payments. What Affect Does Your DTI Have On Your Credit? Your debt to income ratio is not used to calculate your credit score. However, lenders use it when they are trying to determine whether or not to approve you for a loan. It is also used to determine your interest rates on new loans. What Is The Right Debt To Income Ratio? In most situations, the lower your debt to income ratio is, the better your financial opportunities will be. As a rule of thumb, your DTI should not exceed 36%. If you are trying to...
by Adam | Sep 16, 2015 | Credit Repair
The big purchases of our lives – cars, homes, big screen TVs – are typically fraught with anticipation and angst. They have the potential to either wreck your finances, or set you on a good path for years to come. Next time you’re preparing to make a big purchase, consider these 4 tips before pulling the trigger. 1. Sleep on it How do you know the difference between a wise purchase and an “impulse buy?” One of the best ways to find out is to sleep on it. If you’ve reconsidered by morning, then it was probably an impulse buy and you’ve just saved yourself a big chunk of change. But if, after giving it some time, you still decide that this is an important purchase, then you can start considering how to save up for it. 2. Budget for it A big purchase can have a big impact on your monthly budget. You don’t want to deplete your savings too much or risk any overdraft fees. Here are a few options for budgeting for those bigger purchases: Give yourself several months to save up enough money for the purchase, and set aside a manageable amount of money each month Build a cash reservoir into your budget specifically for these types of purchases. That way, when you need to make a larger purchase, the money is already available. 3. Research to find the best deal A little research can save you dozens, if not hundreds, or dollars on bigger purchases. Sometimes a little patience (waiting for a better deal to come along) is the best strategy. Other times you can hunt...
by Adam | Sep 8, 2015 | Credit Repair
If you’ve noticed that you and your partner don’t quite share the same spending habits, join the club. Finances are one of the top sources of contention among married couples. It probably didn’t take long for you to figure out who was the “spender” and who was the “saver” in the relationship, and it’s a good thing you have each other to balance one another out. However, when it comes to combining incomes, bank accounts, taking out loans together, etc. it’s very important that you and your partner have open communication and are on the same page about finances. If push comes to shove, your or your partner’s poor spending habits could damage your credit and substantially increase the risk of bankruptcy. Here are some important topics to discuss together to keep a healthy balance with your money and your relationship. 1. Be honest about your personal financial history As you discover each other’s flaws and realize that gasp! you’re not both perfect, be honest and also empathetic with your partner as you analyze your current financial situations. Your partner will likely want to know the good and the bad and work through it together. Finances definitely fall under the “for better or worse” category, so put it all out there and help make each other better. 2. Budget together Have a budgeting meeting at least monthly to make sure you’re both on the same page about how much is coming in and how much is going out. The cell phone bill or car payment should not be a surprise to either one of you. When you’re both responsible...
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