Dave Ramsey’s Baby Steps

Popular personal finance expert Dave Ramsey doesn’t give advice based on pie in the sky theories; he’s lived it. He was a millionaire at the age of 26 when he lost it all in just three years. After digging himself out, he began sharing what he had learned with others through books, seminars, and a popular radio show. Ramsey focuses on helping people dig out of debt and gain control of their financial futures. His method uses a series of baby steps that he walks his followers through. Here’s a summary of those steps: 1. Build a “Baby Emergency Fund” … Continue reading →

Payday Loans for Times When Cash is Short

Payday loans are there to help a person make ends meet. The reason is simple. Many people simply have too much of the month left, or the week, when the paycheck is gone. For these people payday loans are a way of borrowing and stretching the budget a bit. With a payday loan a consumer will form a relationship with a payday loan company. This will involve filling out an application form and providing bank account information. Payday loans are paid back to the lender using a check, which is post dated, so the checking account information is needed. It … Continue reading →

Make a Plan to Get Out of Debt

Being in debt can feel like a terrible burden, particularly if bill collectors are calling. It can begin to seem that the debt will never be retired or that we are working only to pay bills. If you are in debt there are some things that you can do to ease your load and eventually, become debt free. 1.Understand what caused your debt. In some cases the cause of debt is unavoidable. Perhaps it is the result of a catastrophic illness, accident or divorce. These events may come on suddenly leaving little time for planning. Other times it is simply … Continue reading →

Understanding a Piggyback Loan

UNDERSTANDING A PIGGYBACK LOAN Although not for everyone or all situations, piggyback loans can be beneficial for people who have a second mortgage. The second mortgage is a loan of which rights subordinate the first mortgage. For instance, you might have a first mortgage with one Mortgage Company, which takes first place. However, you might have taken out a second mortgage with the same or a different company by which you borrowed money against the equity of the home. With a second mortgage, if you were to sell your home, the mortgage holder would be paid off before the second … Continue reading →

Is using home equity to pay off credit card debt a good idea?

Using home equity in the form of home equity loans or lines of credit has become very commonplace in our society. Home equity is touted as the answer for everything from remodeling the kitchen to sending a kid to college. One especially popular use of home equity is to pay off other types of debt, particularly credit card debt. But is it a good idea? By far the best argument in favor of using home equity to pay off debt is a purely financial one. It often makes mathematical sense for two big reasons: 1. Because the debt is secured … Continue reading →

Equity or Refinance?

If you are thinking about taking out an equity loan then you have several decisions to make. For instance, with an equity loan, typically a bank will set its rate based on the shortest-term market rate. In addition, an equity loan includes closing costs although generally less expensive than closing costs you would pay with the first mortgage loan. With a home equity loan, you need to know why you want or need this type of loan. For instance, it might be to help pay off credit card debt, it could be to secure a lower interest rate on the … Continue reading →

Avoid Credit Counseling Scams

Avoid getting caught in Credit Counseling Scams! Yes, hundreds of consumers a year get sucked into these counseling scams for improving your credit. But watch out for them. Not all of them are really going to help you. Most just want your money. There are several ways you can be sure that it’s the real thing and not a scam. First, check to see if the company is legit. You can do this by getting online if you have a computer or going to your library and typing in the company name in the search engines. Read a few reviews … Continue reading →

A Look at the New Bankruptcy Laws

This is an overview of what will change with the sweeping changes recently made by Congress to bankruptcy laws. For the most part, the new laws affect Chapter 7 and Chapter 13 bankruptcy proceedings. The bill has exceptions for victims of Hurricane Katrina (extending the time for the changes to take effect for affected people). Below is a list of the changes most likely to impact individuals, even though how the law will be interpreted by judges and bankruptcy trustees has yet to be seen. Effect on eligibility. Formerly, the debtor in question could choose between Chapter 7 and Chapter … Continue reading →

5 Ways to Use Your Home Equity Line of Credit

For most of us our home is our most valuable asset. When a large financial need arises, you can make this asset work for you by securing a home equity loan or line of credit. There are several benefits of a home equity line of credit. For example, this type of loan gives you access to a lump sum of cash for big ticket expenses like home renovations, the purchase of a car or college education. In many cases, the interest is tax deductible. Home equity loans and lines of credit offer you the flexibility you need to meet a … Continue reading →