Bankruptcy

The legalities of bankruptcy can be confusing. Let’s discuss a few of the basics to help provide you an overview. Even if you don’t think you ever might need to file, this information can be helpful in general for discussing finances with others or even just reading the paper. Chapter 13 is the simplest personal type of bankruptcy. It is the mildest; as it helps you pay off some of your debts and allows you to keep certain assets. This kind of bankruptcy is important for home owners, because they will be allowed to keep their house. It protects you … Continue reading →

Credit Counseling

Do you think you need to go to a credit counselor? The first step before you decide is to run a budget or plan to help you get out of debt on your own. If you can’t see any easy solution, a credit counselor can help – just be sure to go to the right one! Unfortunately there are more than a 1000 different credit counseling services in the United States, and not all of them are actually helpful. These kinds of services are geared just toward unsecured debt, like credit lines and credit cards. If your main problem is … Continue reading →

Short Sale?

Unfortunately many home prices are starting to drop across the country. The real estate bubble has officially burst. In addition, the past 10 years saw record numbers of re-finances, home equity loans and lines of credit. What does this potentially add up to? Financial disaster if you need to sell your house quickly. Many homeowners have borrowed against the growing equity in their homes. Now that equity is shrinking, and for some to the point where they owe more on their homes than the house is worth. While this can be okay if you plan to keep your house long … Continue reading →

Should You Borrow as Much as You Can?

When it comes to taking out a loan for your house or for a car, the bank will give you an amount that they are willing to loan you. Many people mistakenly think that banks would not risk giving you too much money, and go ahead and borrow the entire amount. Too often these people later find themselves in a pinch as expenses rise or their job situation changes. Here are three areas to look at when it comes to borrowing money for expensive purchases. 1) The first area you should look at is how much can you really afford. … Continue reading →

Paying Ahead

Have you ever paid extra on your loans? Generally people just simply add extra money to their check and figure that everything is going to work out fine. One common misunderstanding is that the people need to specifically apply the extra to the principle of the loan. This is the most effective way to pay down your debt quickly. If you are considering doing this you should speak to your bank and make sure that the following three things are not happening. 1) Some banks simply take that money and apply it to the next payment that you make. This … Continue reading →

Paying off your Mortgage Early

Have you ever considered whether you should try and pay off your mortgage early? Many people have. But, a mortgage is different kind of debt than most… so it is good to evaluate all the advantages and disadvantages before you make that leap. The first consideration is other debt. In almost every case, before you ever consider making extra payments on your mortgage you should first focus on all your other debt. In almost every instance, whether it be a credit card, student loan or car, that debt is costing you more to keep in interest than a mortgage. What … Continue reading →

Thoughts on Debt

Given all our recent discussions on credit cards, I felt it was only fitting to also discuss debt. In today’s credit-charged world, our “dreams” are often only a charge card away. While at first this may seem like heaven, all it takes is an overzealous spending spree or unexpected financial problem and your credit card debt can quickly turn your dream lifestyle into instant hell. While there is a time and place for credit card use, ultimately financial success means avoiding debt. Over time, building too much debt can actually lower your standard of living. At first, accumulating expensive material … Continue reading →

Net Worth

Have you ever taken the time to figure out your net worth? Most people haven’t, but it is an easy formula and often quite interesting. Your net worth is a snapshot into your current financial picture. In order to calculate your personal net worth, you either want a calculator and paper or a spreadsheet program. Some budgeting software packages also have a net worth document. Basically, your net worth is the comparison between your assets and liabilities. For an individual, your assets are the things you own. This could be anything from a possession like a house or car to … Continue reading →

Paying Off Loans

If you have debt and are looking to start paying it off, then you need to evaluate where to put your money first. For those with a couple of loans, this process may only require a piece of notebook paper. But for most of us with a variety of loans and debts, create a spreadsheet to compare the variances between them. These differences will help you decide which loans need to be paid off first. Start by lining up all your sources of debt. Common types include: *Mortgage *Home Equity Loans *Lines of Credit *Credit Cards *Student Loans *Automotive Loans … Continue reading →

Debt Free! Now What?

If you are close to paying your debts off completely or just recently have, you may be wondering what to do next. It is true that you can start to live a little more comfortably. However, it would not be wise to fritter away all of that extra money in your budget. Here are five suggestions on what to do with the extra money. 1) Begin saving for a great vacation. You have earned it. You worked hard to pay off your debt and made many sacrifices. It is time to reward yourself. It is important that you reward yourself … Continue reading →