Posts Tagged ‘debt’
Written on January 28th, 2012 by Samanthano shouts
How can you start off the year better than the last—start managing your money better from the start of it. This is such a simple idea and easy to follow. Take the beginning of this year to chart out a way to have a better grip on your finances.
January is coming to a close, so most of the mood for procrastination should also be coming to a close. Take this time to make a basic outline of how you want the next few months to turn out—financially. Map out all of your usual financial obligations by each quarter or individual month of the year. Let’s get started.
January through March
Get all of your holiday finances in order. By now, all of the credit card charges that you made over the holiday season should be posted and ready for payment. Paying the minimum amount due may suffice; however, paying even 5%-10% more can make a tremendous difference in the long run. Paying off all of your holiday debt should be your ultimate goal.
Look at your calendar and figure out what key events will effect you finances and just jot them down accordingly—a simple title will do to get you started, you can always follow-up with details at another time. It is just important that you get that much done, for now.
Stay on track and pay down that debt.
Tax time is right around the corner. If you have not already, now is a good time to gather up all of the necessary paperwork for filing. Check in with you accountant and discuss the details on what you may need for this year as your needs can change from year to year. Be sure to check in with your accountant early to find out his or her availability.
Start thinking about what you want to do this summer. Will you be going on a vacation? Will you be staying home? If you have children, will you be sending them to summer camp? These are all serious expenses that you should start considering and planning for.
April through June
Spring is in the air and so are new expenses—new spring and summer wardrobe to consider, home repairs and improvements, more holidays and special events to plan for. Parties, graduations, and outings may dominate the latter part of the spring for you and your family. Be sure that you have planned well to meet all of the accommodations you want to offer.
Keep all of this in mind and stick to the financial outline that you have created with your calendar in January.
July through September
Summer is officially here. Your wardrobe has officially changed by now. Be sure to have a hold on any related purchasing expenses and continue to keep up your payment plans. Keep a close eye on your calendar for reference. You should be continuously plotting in details for the general goal titles you have posted on your calendar already.
Big holidays like Independence Day can be quite expensive. Be sure to have a set budget for this. If you are hosting a party, get invitees to bring something to cut down on your own expenses. If you’re traveling to a party, be sure that you have money saved for gas, lodging, and other related traveling expenses. The same goes for family reunions, get-togethers, anniversary parties, and Labor Day.
By the time Labor Day arrives, you should already have your child’s back to school expenses planned out—or perhaps your own back to school expenses to think about. There should be a lot of really good sales going on from late July through August on targeted back to school items.
October through December
The biggest holidays of the year are well on the way—Thanksgiving, Christmas and other religious holidays, and New Years.
By late October and early November, you should really think about how you will be spending your Thanksgiving. Will you be hosting or going to visit someone else? The same goes for upcoming religious holidays, and of course New Years as well.
These holidays usually require the most money effort so plan early on costs for hosting a holiday gathering, gifts, and wardrobe.
Sticking to a basic plan and plotting your way through the year will prove to be a tremendous help. Be sure to modify your calendar with more details and continue to personalize it for new events as you become aware of them.
Written on January 16th, 2012 by Samanthano shouts
Credit cards have been a staple in American homes for quite some time. The current great recession has forced many to utilize credit cards to make ends meet. This is completely understandable and necessary for those that have adopted this practice. However, there are pitfalls that should be avoided at all cost. Activity that can affect your credit score can be detrimental to your ability to access much needed cash later on. Here are a few tips on how to stay on top of what matters most.
Limits
Some credit card users may believe that having a lower monetary limit on his or her credit cards is a good thing. This is certainly not so. Having a lower limit will probably result in you maxing out that credit card much sooner that a credit card with a much higher limit attached to it. This can be interpreted as an undesirable quality in the way you handle your financial responsibilities. Having a balance of $500 dollars on a card with a $500 dollar limit is far worse than having that same balance amount on a credit card with a $1,500 dollar limit.
This issue is compounded if credit card users with very low limits have several low monetary limit credit cards. Having several cards that are maxed to the limit can be quite damaging to a credit rating.
These types of cards are more typical of store credit cards than bank credit cards.
Credit card users should look to use only about 30 percent of his or her total monetary credit card limit. The more you have to use, the better—this will likely result in a much more favorable credit rating score.
Interest Rates
Credit card interest rates can be quite daunting. Typical rates are currently at 18%-25%. That is extremely higher than most people can afford. What a lot of credit card users don’t know is that it is possible for these rates to be lowered—or switch to another card that does not have such a high rate. Some consumers have been able to reduce rates to 7%-8%. Contact your credit card company to find out how you may be able to get a lower rate.
Be Alert
Making payments to your credit card company is very important. However, most modern people are continuously multitasking and completely busy—this may leave very little time for managing payments, even when you do have the money to pay.
Most credit card companies have some sort of payment reminder alert system that you can utilize to make sure that you make your payments on time. Go to your credit card company’s website and sign into your account. Within your account you should find options that allow you to set up a payment reminder alert that will be sent to you on a timely basis. This can be sent to your email address or directly to your mobile phone. The choice is yours.
Keeping these few tips in mind while handling your credit card management can be quite helpful and save you a lot of money and headaches in the long run.
Resources:
Financially Fit: http://www.finance.yahoo.com
Main St.: http://www.finance.yahoo.com
Written on October 26th, 2011 by Samanthano shouts
College graduates have been having a really hard time of it lately. Unemployment is high and moral has been low. Trying to consider how to repay college loans in such an economy is more than challenging. The Obama administration has recognized this and has asserted a plan to help out college students with repaying college loans.
The Obama administration is going to ratify a college loan repayment cap in January 2012 instead of waiting to do so in 2014, according to a recent Reuters article. The cap would be at “10 percent,” of the college student’s income. This is a much welcomed and needed boost for our nation’s college graduates. At the very least, this plan is a start.
This is an independent change that does not have to have the approval of Congress for it to go forward.
According to the article, there are more Americans with college loan debt than with credit card debt right now. The amount of college loan debt is expected to increase and “exceed 1 trillion dollars this year, according to the Federal Reserve Bank of New York.”
The loan changes are expected to be announced this week by President Obama.
There will be more changes for students with this plan as well. According to the article, there will be ”debt forgiveness,” after twenty years. Currently debt forgiveness is set at twenty-five years. The plan will also offer a loan bundling deal for some students. The plan will also allow for interest payment reductions for qualified students that choose to participate in the program.
Only a minimal amount of Americans in college loan debt are currently making use of the college loan “repayment by income” programs that are now in place. The administration is hoping that this will increase use of the program, while reducing the amount of monthly debt that students have to pay back.
Most people go to college as a way to elevate themselves to a skill set that will make him or her highly valuable to potential employers. College students work very hard and usually make very little money while in school. This is all done with an implied promise of success. However, today’s job market is so sparse. It is simply difficult to get a job that can allow for being independent, much less able to repay back significant college loans. The disparity among other reasons, have summoned low expectations for the future of American college graduates.
The Associated Press has reported that more than any other decade before, the “2000’s,” has proved to be an especially tough economic crunch on college students and their families.
College students were a huge force in getting Obama elected. Perhaps this has added to a persuasive atmosphere and called on the attention of those that can make a difference. Being able to pluck some of the more fixable issues out of the vast pool of economic despair may be a step in the right direction.
Resources:
Associated Press: http://www.ap.org
Reuters: http://www.reuters.com
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Filed under Cost Of Living, Loans
Tags:American dream, college, college loans, cost of livng, debt, economy, education, employment, finances, jobs, loans, money, new cap on college student loans
Written on September 23rd, 2011 by credit2meno shouts
A home is likely to be the largest expense you have, and it is also one that you are the most proud of. As you pay off your home, you will start to build up equity in it. This allows you to have money that you could borrow against later on. Getting a home equity loan seems to be a very common theme out there right now.
Before you rush out and get one though, you have to think about the pros and cons. There are many reasons why you may decide a home equity loan is right for you. Do you have repairs you need to make to your home? If so, then these funds can help you with fixing it up. You will also be able to consider such funds if you want to add a deck or another room to your home.
A home equity loan can be money you use to help your child get a vehicle or to help cover the cost of you going back to school. Not everyone qualifies for financial aid or student loans. Yet a lack of funding shouldn’t hold you back from furthering your education.
If you have been out of work for a while due to the economy, you may be tempted to get a home equity loan. Yet that can be tough to repay if you don’t have money coming in. You really want to check out various programs by lenders if you aren’t able to continue paying your bills. The last thing you want to do is owe too much on your home and then you go into foreclosure.
Another common reason for people to consider a home equity loan is to get out from debts that have accumulated. The funds can help them to pay off medical bills, credit cards, and any other forms of unsecured loans. The problem though is that if the homeowner doesn’t stay out of debt they could be headed for trouble.
If they pay down the debts, but then charge more they will end up in a very serious financial situation again. Then they will also owe the additional funds for the home equity loan. At the same time, they won’t have that to fall back on to help them out of debt the second time around.
If you feel that a home equity loan is right for you, check with various lenders. You want to find out what the amount is that you have in equity from your lien holder. Don’t take out more equity than you really need. Find out what the interest rates will be on the home equity loan. If it is less than what you are paying on your credit cards then it could be a good option to consider.
Written on September 14th, 2011 by Samanthano shouts
Highest in Decades
The American dream has been a driving ideal for those born here, and for immigrants seeking a better way of life. Along with this sentiment is a common vision, of this better way of life – a beautiful three-bedroom house, with an emerald green lawn, white picket fence, and friendly recipe-sharing neighbors. Perhaps the dream has had some new additions or modifications such as having a larger apartment within a bustling city, and a room with a view. All in all, it adds up to a want for the most desirable contemporary life experience.
The Associated Press has released information from a Census Bureau report regarding a study conducted in 2010. It states that almost one out of every six Americans is living in poverty. That is a huge amount of people: over 45 million Americans are. This is up by .8% from 2009.
The reasoning for such increasing numbers is the lack of jobs in America today. As I have reported recently, the unemployment rate in the US is rising at an exponential rate. According to the report, the last three years have had the highest increase rate from any three-year timeline since the ‘80s, and the highest amount of Americans living in poverty since the late ‘50s.
For these reasons a lot more Americans have had to rely on social services such as welfare, and food stamps. Reuters has reported the same amount of people on food stamps – 15%. Up “74% from 2007, just before the financial crisis and a deep recession led to mass job losses.” However, some of those receiving these food stamp benefits may be working as the underemployed. These are astonishing numbers – absolutely incredible.
Hopefully, Obama’s job plan will be acceptable and get Americans back to work. Economists are fully behind his plan. However, some are still reluctant to change financial “growth forecasts” for the remainder of this year, and going into the next. Predictions are still being “trimmed at a percentage point,” according to reports (AP). The US needs to produce about one-quarter million jobs on a monthly basis, to even begin to combat the high unemployment rate. A “rapid” job creation increase is what Americans need, according to the same report. Without that, we may continue at the currently over 9% unemployment rate.
At any rate, we need something extremely positive to happen quite quickly.
The census has determined that those living on less than approximately “$22,314” for a household of four, and less than “$11,139” for any one person are considered to be living in poverty.
The statue of liberty has a greeting meant for all that have chosen to live here. It states: “give me your tired, your poor, your huddled masses yearning to breathe free. The wretched refuse of your teeming shore. Send these, the homeless, the tempest-tost to me, I lift my lamp beside the golden door!” Now it seems that we are the tired, the poor, and “huddled masses yearning to breath free…”
Resources:
Associated Press: http://www.ap.org
Reuters: http://www.reuters.com
The Statue of Liberty – Ellis Island Foundation, Inc.: http://www.statueofliberty.org
Yahoo! News – The Lookout: http://www.finance.yahoo.com
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Filed under Cost Of Living, Currency, Income
Tags:American dream, American poverty rate, cost of livng, debt, economy, employment, finances, growth, jobs, money, poor, poverty
Written on September 13th, 2011 by credit2meno shouts
Avoiding collection calls won’t get them off your back. You have to take action when you can’t pay your bills. Too often, the lenders are seen as the enemy but they are really just trying to get what is due to them. Of course they should be treating you with respect when you talk to them on the phone. Being late on bills isn’t just cause for them to harass you.
If you can’t pay your bills on time, contact who you owe and let them know. They may be able to have you pay an interest only payment for a few months. You won’t pay anything on principal. Then they will tack those payments on to the very end of your loan. They may be able to reduce your payment as well into smaller amounts, but you will have to pay for it over a longer period of time.
Still, being able to get your debts reduced can ease the monthly burden of what you have to pay out. As your circumstances improve, you can start to pay more to the lenders once again. If you owe a large amount of money, you may be able to get a lump sum settlement. This will pay off what you owe and then you can be free and clear from it.
When you accept such a settlement, make sure you get something in writing that verifies what the agreement will be. That way you have some proof should the attempt to come after you again in the future for the remaining balance.
You want to do all you can to avoid your bills going to collection agencies. When that happens you may have to pay legal fees and fines on top of what you already owe. This will only compound the problems that you have. When creditors don’t hear from you, they will assume that you don’t care. They may freeze your bank account or they can garnish your wages to get what you owe to them.
There are plenty of debt consolidation companies out there, but you do have to be careful. Many of them charge high fees and that is money that could be going to pay down your debt. They can negotiate balances, but you should be able to do that on your own with many creditors.
You may find that consolidating your debt though is a good idea. You will want to carefully evaluate the overall cost of it. If the rate of interest will be low enough, it could save you a large sum of money. You may find that getting a home equity loan can help you to pay off your debts. Then you can start over with a clean slate and have peace of mind. You don’t want to worry every time your phone rings that it is someone trying to get you to pay a bill.
Written on September 12th, 2011 by Samanthano shouts
How Things Are Looking Right Now
Stocks went down today, as the fear of a real financial collapse in Europe overwhelms investors, according to an article in the Associated Press today. It seems that Greece is the frontrunner of their worries right now. And any country that has is holding any bonds for Greece right now, like France, may get dragged down with poor credit ratings in the mix up. This could assure a gloomy outlook for the European banks for quite some time. This is creating yet another reason for American Economists to worry – as a collapse in Europe may cause further economic trouble for the US.
Is Anyone Doing Well?
The only rises noted today were in technology, education publications, and a Casino resort. Bank of America was noted in the report as having a small rise that is believed to be due to an announcement of restructuring to combat costs.
Up and Down
Some experts have noted that the market is changing so rapidly that the best thing to do may just be nothing at all. However, with no reconciliation in site, it seems to be quite challenging to just sit still and watch.
Reports of European Economists suggesting that Greece declare bankruptcy has had some mixed reviews among experts. Some authorities have noted that bankruptcy is the best solution for Greece right now, while others have noted it is simply not possible for them to do at all. And yet others have noted that Greece will inevitably recover and does not need to take drastic solutions, according to the AP report. With all of this being said, Greece is still looking forward to a “bailout” from a “multibillion bailout fund.” However, European officials are not “convinced” that Greece is actually meeting the mark on depleting their debt: with the current agreements they may have to do so, according to the report. In defense, Greece has noted that they will have extra revenue by raising “property taxes,” over the next 24 months, according to the report. This is probably what is adding to the confusion and is creating a global uproar as well. Serious concerns are growing in the US as it is believed that a detrimental trickle affect is bound to occur here if any European country “defaults,” or loses its credit standing. This is a lot to think about.
Juergen Stark’s pending departure is definitely one of the reasons for today’s changes in the market, according to the report. He announced his resignation last week.
Expectations
There still seem to be a lot of conflicting expectations. The combination of an unsure European financial system – including the resignation of a top European banking executive – and the currently weak US economy are making things very unbalanced right now. The market is certainly on a roller coaster ride because of it all. This is a time for extremely skilled investors to make a move, or not do anything at all.
Predictions are flying through the wind, and where they will actually land is not very easy to tell. However, a sudden division in authority or leadership is never a good sign. Systems that are simply out of control will be challenging to harness, and not at all if attempted too late.
Resources:
Associated Press: http://www.ap.org
The New York Times: http://www.nytimes.com
Yahoo!News: http://www.news.yahoo.com
Written on September 10th, 2011 by Samanthano shouts
Linked With Resignation of European Executive
America has been feeling the pinch of rising oil and gas costs in recent months. Political embargos or work stoppage with oil rich countries have served as a catalyst for this trend. For the first time, in a long time, oil prices are down and we can expect to get bit of a break. The reason why may surprise you.
Resignation Domination
Juergen Stark, a top Economist at the European Central Bank, has handed in his resignation according to a report by the Associated Press: Stark will be finishing out his term early. This news has inspired the price of oil to go down as doubts about Europe’s debt crisis increases. Although Stark’s exit has been noted in the article for “personal reasons,” it is believed that there may be a connection to a growing divide among European officials. These ideas seem to have taken to the wind and traveling far enough to make people fear that this change may be an indication of Europe becoming overwhelmed – furthering financial demise in Europe. If European officials cannot agree on what to do about their own issues, the world becomes very nervous and a global chain reaction begins.
How Low
It has also been reported that oil is down by 2%: approximately $.30 cents in New York and $1.30 in the UK.
Reasons for Concern
Europe is a huge consumer of oil. Without a stable European debt recovery plan in place, a trend of low usage will manifest itself. There will be no real way to know if Europe will be able to afford the same supply of oil – or other merchandise, for that matter. This will have a direct effect on the price and distribution of oil, as well as on how Europeans travel. Changes in this behavior could certainly be detrimental to American tourism.
The prices went down due to an anticipated lack of demand, according to experts. This includes heating oil as well. However, it has been reported that the U.S. supply of oil has decreased dramatically because of an increase in demand, recently. Of course this has to be related to the recent storms as well. These were a hindrance to transporting oil, as well as causing a spike in demand, for that particular time. It seems that more oil is on the way from Libya, after a stoppage of over 200 days. However, the amount being sent is hardly enough to keep American consumers satisfied for long, unfortunately.
What Else is Being Affected?
What else is not being affected is probably a better question. As it stands, stocks have been going down and the Dow fell to a significant low at close on Friday as a result. Experts have stated that they expect for stocks to fall even further – possibly pushing America into a deeper recession.
This news is quite startling. According to the experts, Stark’s separation is being seen by some as a telltale sign of worse days to come.
Hope in Sight
If Obama’s job plan actually takes flight, there may be a chance for a trickle effect recovery. Many economists are on his side and believe his bill makes perfect sense and truly will work. It is now up to congress to bring the bill into being. This will pump new life into the American economy. It is believed that this opportunity for rejuvenation will be a promising start for all of us.
Resources:
Associated Press: http://www.ap.org
Canadian Press: http://www.thecanadianpress.com
Yahoo! News: http://www.ca.finance.yahoo.com
Full Story »
Filed under Banking, Currency, Income, Investment
Tags:debt, economy, employment, European Central Bank, European Debt Crisis, finances, jobs, Juergen Stark, money, risk