A hundredload of worry will not pay an ounce of debt. ~George Herbert
At this time, the idea of your debt may consume every one of your thoughts and emotions. If you attempt to think about something else, you receive a call from a rude collector and your worries and uncertainties become the forefront of your mind.
This daily stress can really make you lose sight of the unique person that you have become. Your favorite pastimes, interests, and hobbies may seem like a nostalgic distant memory. It almost seems like your sole purpose is to pay off debt.
Although this intense dedication to pay off debt is extremely noble, try not to forget the meaningful aspects of life and the person that you have become. Despite your financial crisis, you still have your friends and family and you can still recall positive memories that you share with them. You are still allowed to play your favorite CD, read an intriguing novel, or watch your favorite sitcom when you want to relax. Small pleasures such as these may be the diversions that we need, especially on difficult days. When the pressures of our money situation become unbearable, relaxing occasionally may give us strength and perseverance to accomplish our goals.
Dealing with stress effectively can also prevent anger and bitterness. As most of us know, life involves good and bad experiences. Instead of dwelling on the negative, think of your current situation as a learning experience.
Do not automatically assume that enjoying yourself requires a significant amount of money. It is true that it may not be realistic to book a lavish vacation or make a weekly appointment at an upscale spa. As mentioned previously, simple activities such as listening to music and reading can be relaxing. You also may want to explore what your local community has to offer. Summertime is a great time for free concerts and walks in the park. Taking the kids to the playground or going out for an ice cream cone can also give you a break from thinking about debt.
Tuesday, September 30, 2008
Wednesday, September 24, 2008
Renting Tips pt 2
Don't alter the property.
The lease should also state what the landlord's rules are on making alterations to the property. One of the downfalls of renting is that most property mangers do not allow tenants to paint walls or make permanent changes to rental property without written permission. Even if you do receive written permission to paint, for example, you will usually have to change the color back to the original before you move out, which can be a hassle. Before you make improvements such as install an air conditioner or a dishwasher, consider the fact that you may not be able to take these items with you when you move. This can be an especially costly endeavor if you do not plan to live at the property very long.
Take care of your property.
When moving in, note any damage that is already visible on the property so you do not get charged for the repair when you move out. Upon moving out, make sure you leave the rental property in the same condition as when you moved in. For example, clean, vacuum, and fill small holes in the wall with spackle. Many apartment complexes also require that you have the carpets professionally cleaned before moving out. You are more likely to receive the majority of your security deposit, which is usually equivalent to one month's rent, if you follow the move-out instructions.
With the money you save from renting instead of buying you could start to manage your debt and pay off your credit card debt.
The lease should also state what the landlord's rules are on making alterations to the property. One of the downfalls of renting is that most property mangers do not allow tenants to paint walls or make permanent changes to rental property without written permission. Even if you do receive written permission to paint, for example, you will usually have to change the color back to the original before you move out, which can be a hassle. Before you make improvements such as install an air conditioner or a dishwasher, consider the fact that you may not be able to take these items with you when you move. This can be an especially costly endeavor if you do not plan to live at the property very long.
Take care of your property.
When moving in, note any damage that is already visible on the property so you do not get charged for the repair when you move out. Upon moving out, make sure you leave the rental property in the same condition as when you moved in. For example, clean, vacuum, and fill small holes in the wall with spackle. Many apartment complexes also require that you have the carpets professionally cleaned before moving out. You are more likely to receive the majority of your security deposit, which is usually equivalent to one month's rent, if you follow the move-out instructions.
With the money you save from renting instead of buying you could start to manage your debt and pay off your credit card debt.
Tuesday, September 16, 2008
Renting Tips pt 1
Despite difficult financial times, the National Multi Housing Council reports that the apartment industry is not affected. In fact, affordable rental units will be coming available as desperate sellers try to rent out units that are just not selling in the current market, according to Bankrate.com, an online financial resource. Therefore, the number of renters is expected to increase. If you are currently renting or expect to sign a lease in the near future, below are some tips that you may want to keep in mind.
Renting may be a good financial move.
There are many benefits of buying a home. Homeownership has often been equated with the American dream. However, this dream can easily turn into a nightmare for consumers that are not prepared for all of the costs associated with owning a home. In addition to a mortgage, purchasing a home also involves many other expenses such as maintenance, insurance, and property taxes. As a renter, your landlord or property manager is responsible for fixing major repairs like a broken furnace or a leaky roof. Expenses such as these could really break your budget, especially while you are focusing on settling your debts.
Read the lease
If you are required to sign a lease before moving in to an apartment, make sure you read it. Leases usually include quite a few pages of small print and it can be tedious to read. But, keep in mind that you are signing a legal and binding contract and it is beneficial to understand the agreement. Pay close attention to the rent due date, late fees, and the contact information for repairs. You also want to review the policies on terminating a lease. Most property owners do not make it easy for renters. Make sure you understand the provisions in case circumstances arise that do not allow you to fulfill the terms of the lease.
Bill Loughborough is Founder and CEO of Credit Answers, a Texas based debt settlement company. Credit Answers specializes in debt management, credit card debt settlement, debt management and avoiding bankruptcy. Credit Answers is a TASC "Best practices Accredited" organization and serves thousands of clients across the country and settles millions of dollars each month.
Renting may be a good financial move.
There are many benefits of buying a home. Homeownership has often been equated with the American dream. However, this dream can easily turn into a nightmare for consumers that are not prepared for all of the costs associated with owning a home. In addition to a mortgage, purchasing a home also involves many other expenses such as maintenance, insurance, and property taxes. As a renter, your landlord or property manager is responsible for fixing major repairs like a broken furnace or a leaky roof. Expenses such as these could really break your budget, especially while you are focusing on settling your debts.
Read the lease
If you are required to sign a lease before moving in to an apartment, make sure you read it. Leases usually include quite a few pages of small print and it can be tedious to read. But, keep in mind that you are signing a legal and binding contract and it is beneficial to understand the agreement. Pay close attention to the rent due date, late fees, and the contact information for repairs. You also want to review the policies on terminating a lease. Most property owners do not make it easy for renters. Make sure you understand the provisions in case circumstances arise that do not allow you to fulfill the terms of the lease.
Bill Loughborough is Founder and CEO of Credit Answers, a Texas based debt settlement company. Credit Answers specializes in debt management, credit card debt settlement, debt management and avoiding bankruptcy. Credit Answers is a TASC "Best practices Accredited" organization and serves thousands of clients across the country and settles millions of dollars each month.
Thursday, September 11, 2008
Are You Financially Prepared for a Natural Disaster?
Natural disasters such as hurricanes can cause devastating damage. Hurricane season recently began on June 1 and runs through November 30. Experts at the NOAA Climate Predication Center are projecting a 65% chance that the Atlantic hurricane season will be above normal this year. AIR Worldwide Corporation, a leading risk modeling company that helps clients manage the financial impact of catastrophes and weather, report that hurricanes and earthquakes have the potential to cause approximately $500 billion of total economic losses. Although it may not be possible to completely protect yourself from the wrath of mother nature, below are some precautions and valuable information that may help you recoup a portion of your loses if you are a victim of a natural disaster.
Consider flood insurance. According to the Federal Emergency Management Agency (FEMA), flooding is the number one natural hazard. Many people have the misconception that their homeowners insurance will cover flood damage; however, it does not. In fact, FEMA indicates that only 25 percent of the 10 million homes that lie within high flood risk zones carry flood insurance. In order to obtain flood insurance, you must live in one of the 20,000 communities that participates in the National Flood Insurance Program (NFIP), a component of FEMA that handles flood insurance, floodplain management, and flood hazard mapping. For useful information about flood insurance, visit www.floodsmart.gov, the official web site of NFIP. Use this resource to determine your area's flood risk, estimate your premium, and helpful FAQ's concerning flood insurance.
Prepare your home for a disaster. Depending on which disaster is more likely to strike in your geographical area, take steps to reduce the risk of damage. For example, if you live in an area that is prone to hurricanes, install hurricane shutters on your windows. In regions that experience earthquakes, secure objects like bookcases that could easily fall. You may also want to consult a building inspector for suggestions on home repairs that could prepare your home for a disaster. Certain home improvements may also lower your homeowner's insurance premium. According to the Insurance Information Institute (III), it is a good idea to make sure you have enough insurance to rebuild your home and replace all of your personal belongings. You may also want to consult your insurance company about Additional Living Expenses (ALE) coverage, which pays for the additional costs of living away from home such as hotel bills and restaurant meals while your house is being repaired or rebuilt.
Fires may affect any home, so installing smoke detectors may be a good idea. The American Red Cross recommends that you contact your local fire department to see if they make free house calls. In some cities, a fireman may visit your home to evaluate your property and make fire safety suggestions.
Plan ahead. Visit www.ready.gov, the official web site of the U.S. Department of Homeland Security (DHS), for a printable emergency supply list. In addition to items like prescriptions and non-perishable food, USHS also recommends that you include copies of insurance polices and bank account records in a waterproof container. Although you may be on a budget, you may consider keeping a small amount of cash on hand or a small roll of quarters in case phone lines are down and you have to use the pay phone. For insurance reasons, you may also want to make a list of your valuables. The Insurance Information Institute also recommends consumers visit the site www.knowyourstuff.org to download free home inventory software.
Be aware of assistance programs. FEMA offers many assistance programs to those affected by disasters. Visit www.fema.gov and click on the "Apply for Assistance" link to familiarize yourself with the procedures. Depending on the type of emergency situation, you may qualify for a number of their programs including Disaster Legal Services, Disaster Unemployment Assistance Program, and the Emergency Food and Shelter Program. Your local branch of the American Red Cross may also provide you with basic needs such as food and clothing immediately following a disaster. Visit www.redcross.org for more information.
Bill Loughborough is Founder and CEO of Credit Answers, a Texas based debt settlement company. Credit Answers specializes in debt management, credit card debt settlement, debt management and avoiding bankruptcy. Credit Answers is a TASC "Best practices Accredited" organization and serves thousands of clients across the country and settles millions of dollars each month.
Consider flood insurance. According to the Federal Emergency Management Agency (FEMA), flooding is the number one natural hazard. Many people have the misconception that their homeowners insurance will cover flood damage; however, it does not. In fact, FEMA indicates that only 25 percent of the 10 million homes that lie within high flood risk zones carry flood insurance. In order to obtain flood insurance, you must live in one of the 20,000 communities that participates in the National Flood Insurance Program (NFIP), a component of FEMA that handles flood insurance, floodplain management, and flood hazard mapping. For useful information about flood insurance, visit www.floodsmart.gov, the official web site of NFIP. Use this resource to determine your area's flood risk, estimate your premium, and helpful FAQ's concerning flood insurance.
Prepare your home for a disaster. Depending on which disaster is more likely to strike in your geographical area, take steps to reduce the risk of damage. For example, if you live in an area that is prone to hurricanes, install hurricane shutters on your windows. In regions that experience earthquakes, secure objects like bookcases that could easily fall. You may also want to consult a building inspector for suggestions on home repairs that could prepare your home for a disaster. Certain home improvements may also lower your homeowner's insurance premium. According to the Insurance Information Institute (III), it is a good idea to make sure you have enough insurance to rebuild your home and replace all of your personal belongings. You may also want to consult your insurance company about Additional Living Expenses (ALE) coverage, which pays for the additional costs of living away from home such as hotel bills and restaurant meals while your house is being repaired or rebuilt.
Fires may affect any home, so installing smoke detectors may be a good idea. The American Red Cross recommends that you contact your local fire department to see if they make free house calls. In some cities, a fireman may visit your home to evaluate your property and make fire safety suggestions.
Plan ahead. Visit www.ready.gov, the official web site of the U.S. Department of Homeland Security (DHS), for a printable emergency supply list. In addition to items like prescriptions and non-perishable food, USHS also recommends that you include copies of insurance polices and bank account records in a waterproof container. Although you may be on a budget, you may consider keeping a small amount of cash on hand or a small roll of quarters in case phone lines are down and you have to use the pay phone. For insurance reasons, you may also want to make a list of your valuables. The Insurance Information Institute also recommends consumers visit the site www.knowyourstuff.org to download free home inventory software.
Be aware of assistance programs. FEMA offers many assistance programs to those affected by disasters. Visit www.fema.gov and click on the "Apply for Assistance" link to familiarize yourself with the procedures. Depending on the type of emergency situation, you may qualify for a number of their programs including Disaster Legal Services, Disaster Unemployment Assistance Program, and the Emergency Food and Shelter Program. Your local branch of the American Red Cross may also provide you with basic needs such as food and clothing immediately following a disaster. Visit www.redcross.org for more information.
Bill Loughborough is Founder and CEO of Credit Answers, a Texas based debt settlement company. Credit Answers specializes in debt management, credit card debt settlement, debt management and avoiding bankruptcy. Credit Answers is a TASC "Best practices Accredited" organization and serves thousands of clients across the country and settles millions of dollars each month.
Thursday, September 4, 2008
To Lease or Buy... That is the Question
It's a common dilemma: lease or buy, buy or lease, which is better? Everyone who has ever considered leasing has had this question cross their mind. So what is the answer? Is it a good way to lower a bill to manage debt better?
Leases and loans are two different methods of automobile financing. One finances the use of a vehicle; the other finances the purchase of a vehicle. Each has its own benefits and drawbacks.
It's not possible to simply say that one is always better than the other because it depends on your own particular situation and preferences. You must not only look at the financial comparisons but also at your own personal priorities - what's important to you.
Is having a new vehicle every two or three years with no major repair risks more important than long term cost? Are long term cost savings more important than lower monthly payments? Is ownership more important than low up-front costs and no down payment?
So, making the lease or buy decision is not quite cut and dry. There are some things you need to
consider first.
Buying and Leasing are Different
When you buy, you pay for the entire cost of a vehicle; regardless of how many miles you drive it. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company. You make your first payment a month after you sign your contract.
When you lease, you pay for only a portion of the vehicle's cost, which is the part that you "use up"during the time you're driving it. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most states), and pay a money factor that is similar to the interest rate on a loan. With leases, you may also pay extra fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract.
Buy vs. Lease Example
As an example, if you lease a car that costs $20,000, but is worth $13,000 after 24 months, you pay for the $7000 difference(this is called depreciation), plus finance charges, plus fees.
When you buy, you pay the entire $20,000, plus finance charges, plus fees. This is fundamentally why leasing offers significantly lower monthly payments than buying.
Leases and loans are two different methods of automobile financing. One finances the use of a vehicle; the other finances the purchase of a vehicle. Each has its own benefits and drawbacks.
It's not possible to simply say that one is always better than the other because it depends on your own particular situation and preferences. You must not only look at the financial comparisons but also at your own personal priorities - what's important to you.
Is having a new vehicle every two or three years with no major repair risks more important than long term cost? Are long term cost savings more important than lower monthly payments? Is ownership more important than low up-front costs and no down payment?
So, making the lease or buy decision is not quite cut and dry. There are some things you need to
consider first.
Buying and Leasing are Different
When you buy, you pay for the entire cost of a vehicle; regardless of how many miles you drive it. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company. You make your first payment a month after you sign your contract.
When you lease, you pay for only a portion of the vehicle's cost, which is the part that you "use up"during the time you're driving it. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most states), and pay a money factor that is similar to the interest rate on a loan. With leases, you may also pay extra fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract.
Buy vs. Lease Example
As an example, if you lease a car that costs $20,000, but is worth $13,000 after 24 months, you pay for the $7000 difference(this is called depreciation), plus finance charges, plus fees.
When you buy, you pay the entire $20,000, plus finance charges, plus fees. This is fundamentally why leasing offers significantly lower monthly payments than buying.
Subscribe to:
Posts (Atom)
Posts
