5 Tips to Manage your Debt Strategically

Debts are essential in life for most people. They are used to finance essential life expenses, such as paying college tuition fees, buying a car, purchasing a home, and meeting cash shortfall until the next paycheck is received.

The problem with debt is that it can act both as a messiah and as a harbinger of doom. The latter is the case in case a person does not know the right way to manage debt. If debt is not managed well, it can lead to a vicious debt cycle that can take years to escape, and leave you feeling debilitated and overwhelmed. As an example working out mortgage costs and calculating ways to save are good ideas to managing your debt. This site has a nice calculator for people with mortgages in San Diego “san diego va loan calculator

However, there are some smart ways that you can use to manage your debt without letting it become a source of great financial hardship and pain. Take time to examine the 5 strategic tips that are listed below and apply ones that you think will help you the most in managing your debt.

mortgage debt1. Consolidate the Debts

If you have multiple debts, you can save a lot of money by consolidating them into a single loan. Apart from allowing you to ease the burden of loan payment, consolidating the debts will increase the chances that you don’t miss out on any monthly payments. Missing even one payment can negatively impact your credit score, and compromise your ability to obtain loans for important expenses in the future. You can avoid this prospect by consolidating multiple loans.

2. Make Payments Smartly

You should consider making payments for debts with highest rates first as it will lower the total amount you pay to the lender. Also, you should prioritize your debt expenses according to their importance. Always consider making mortgage payment a priority. Next you should take care of secured loans. The unsecured loans should be your last priority as you will incur fewer hardships in case you default on these loans.

3. Take Help of a Qualified Financial Counselor

Many people don’t take advice of qualified financial counselors to manage their debts due to the prospect of paying a fee. But getting help of a counselor will certainly help you avoid getting trapped into the debt cycle.

A qualified debt counselor can offer you experienced advice relating to debt management that will ensure that you stay out of debt troubles. The fee you pay for the expert help will worth it in the end as you will remain out of debt troubles.

4. Budget your Way Out of Debt

Consider making a budget to pay off your debts. You should assess your past expenses and come up with a realistic budget plan. Consider your lifestyle carefully and think of ways you can cut down your expenses.  Simply by deciding to dine out once a week instead of every other day will take a large chunk out of your monthly expenses. The money that you are able to save through budgeting should go towards payment of the debt.

5. Act Wisely!

When it comes to managing your debts, the most important thing you can do is to act wisely. You should assess your current condition and consider strategies that will work best for you. If you are already facing deep financial difficulties due to debt, it’s important to act now and make the right decisions to ease your financial burden.

How Can a Savings Account Help Make you Rich?

Saving money is a great habit. The earlier in life you develop this habit, the more beneficial it is to you. Today, people use savings accounts to save their money. However, did you know that you can grow your money and become rich by using a savings account? No? Well you are about to find out how.

Here, we have selected for you, the best and simple ways steps to becoming rich by using a savings account, so you can enjoy your savings to the full extent and spend them on what you have been long waiting for, such as a new house or a luxurious, relaxing vacation in Hawaii.

However, for these methods to work, you will need to make some changes in your life. As Greg McBride, Bankrate’s chief financial analyst says:

“You really have to know yourself and discipline yourself if you’re going to be an effective saver.”

1. Plan a Goal
If you do not know where you are going, and have no goal in mind, you will have no motivation at all to reach there. Therefore, it is important that you set a goal for yourself—a five year goal is what we would recommend. After each five-year time span, you can revise your goal accordingly.
Once you have researched properly, and have your goal set up and ready, you will be more motivated to save up and spend less from your savings, prompting your savings account to grow at a healthy rate.

2. Change the Saving Process
Generally, what people do when they try to save, is that they pay their bills, spend the money on things they need, and then, if and when the money is left over, they put it away to save. However, this is not a good practice. You really need to think about a specific amount that you want to contribute each month to your savings account, and every month, put the money in your savings account FIRST. After that comes the paying of bills and lastly, the shopping. This method will ensure that you will be saving a proper amount regularly, while also limiting you for spending excessively.

3. Your Deposits should be Greater Than Your Withdrawals
It is one thing to spend money on emergencies; it is completely another thing to spend lavishly on something that you can live without for the time being. The best way to get rich using your savings account is to live below your means. Take a tip from millionaires.

According to Dr. Thomas J. Stanley, co-author of “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy,” most millionaires don’t live luxuriously—rather, they tend to live well below their “means” and save more than they spend.

4. Apply Your Own Methods in Your Daily Life
You can put certain limits on your spending, such as eating out only twice in a week, or spending on a bag once every three months, etc. This method will make sure that you spend less and retain more, leaving you rich later on!

Facing Problems Paying for Your College? Here are 5 Unusual Ways You Can Take Help Of

College tuition fees have increased remarkably in the past few decades. According to Mark Kantrowitz, senior VP at Edvisors.com, the parents of college students did not have to deal with student loans in the past. People worked their way through college and the average debt was much lower than it is today.
The average student that had graduated in 2016 has racked up $37,172 in student loans. The student loan debt weighs down the ability of these students to buy a home, save money for emergency expenses, or invest in a business.

Despite the rising college costs, there are ways that you can use to finance your studies without falling into a debt trap. Below are five unusual and off beat methods that can help you pay for college fees without having to resort to costly traditional loans.

1. Consider Taking Peer-to-peer (P2P) Loan

Peer-to-peer lending works by matching private lenders directly with the borrowers. You can find a lot of P2P sites that are especially aimed for students. These sites consider SAT scores, GPA, college fees, and the student’s major to determine charges on the loans. Prospective students with excellent educational track record can obtain P2P loans at cheaper rates as compared to traditional loans.

2. Make Smart Use of Rebates

Jonathon Hood, a student at Auburn University, had been able to finance nearly all of the tuition fees by using rebate checks and cards. He had got hooked to using rebates after Black Friday shopping with his father, and then spent years perfecting the technique of making the best use of rebates. He encourages students to google ‘free after rebate’ offers on sites such as Newegg.com and Fatwallet.com, and follow the rebate guidelines to get their rebates accepted. The ingenious way of using rebates helped Hood to pay for college without resorting to debts, which is certainly an unusual method that you can apply to pay tuition fees.

3. Take Part in Clinical Studies

A particularly good way to obtain money for college fees is to participate in clinical trials. This is how Ginger Dean, a graduate of Marymount University, financed her degree. She took part in medical trials at a clinical facility located near Baltimore, and was paid $300 to $750 per session. Dean suggests that you should look for listings of clinical study on Craiglist.org. You can also look at ClinicalTrials.gov to view studies that are looking for participants. Also, if your university has a medical or physiology department, you can enquire if they are actively recruiting individuals for a study.

4. Become a Caddy

Another great way to finance your tuition fees without resorting to loans is to consider becoming a caddy. Steven D. of University of Wisconsin-Eau Claire says that he earned about $80 plus tip at a private country club for every two bags he carried for 18 holes of golf. During summers, he was able to make as much as $10,000 just by carrying bags around the golf course. Through this strategy, he not only was able to cover the tuition fees but also got to meet famous celebrities and sportspersons such as the basketball superstar Michael Jordan.

5. Serve the Army for Uncle Sam

Those of you with a daring and adventurous spirit should consider enlisting in the army to pay for college fees. With the Armed Forces Military Tuition Assistance program you can be able to pay 100% of the tuition fees without resorting to debts.

The above unusual and creative ways can help you in financing your college fees without being trapped into a debt hole. Just remember that debt is not the final solution to your financial problems. You can find a lot of different ways to raise money for your college fees by thinking outside the box.

What Are Yielding Bonds? And Why Do People Buy Them?

What are yielding bonds?

In simple terms, the concept of yielding bonds or bond yield could be defined as the amount one earns on the sale of a bond. It is the return on the bonds which determines if the yielding capacity is high or not. The bond, which is one of the fundamental financial instruments, has a potential to earn interest for the holder and upon the maturity the repayment is due as well. The concept which determines the yield of a bond is basically the amount earned on the bond, calculated after taking out the price of the bond from the equation.

Factors such as high unemployment rates and recession are some of the reasons why the bond owners experience lower yields on their bonds. Poor economic growth with consistency and inflation also directly impact bond yield.

Why people buy yielding bonds?

It is the high yield bonds which are most coveted financial instruments, and very rightly so. Here are some reasons supporting why they are favoured by investors:

1) It is all about the high returns

This one goes without saying; people opt for yielding bonds for they are an option much better than the traditional investment options. This happens to be an option offering high payout which helps people enjoy the perks such as interest earned on it along with the maturity payment which only adds to the benefit. Also, it could be sold off when in need, thus making it a win-win situation for the bond holders.

2) It has a chance of appreciation

If the company which has offered the yielding bonds has an improved credit standing in the market, it has a direct impact on the face value of the bonds by raising it. This helps the bond owners to benefit from the high value of the yielding bonds. One of the reasons why people do their research on the company before the purchase of bonds is that it clearly determines the value and high yield of the bonds.

3) More reliable than stocks

The yielding bonds are very much dependable if return on investment is considered, more than stocks. This often creates some ambiguity in the mind of potential bond owners, but the idea is simple; stocks are based on the company’s performance greatly. In fact, it won’t be a mistake to assume that stocks fluctuate based on company’s financial performance which couldn’t be predicted very much beforehand. Yielding bonds, on the other hand, are more secure and reliable for the payout on bonds is pretty must consistent.

Also, the high yielding bonds earn brownie points for the bond holders are prioritized for payments before the stockholders in case of failure of a company. The fluctuation in money market greatly determines the yield but it is also essential to do your homework before signing up for yielding bonds to ensure the foreseen value is what suits your expectations and is a safe choice.

What is a guarantor loan and how it works

There are a lot of things that can come up unexpected and catch you off guard and if you can’t handle them financially, what can you do?

Banks are very strict when it comes to lending money. They take a look at everything and if you seem even the slightest as someone who will have difficulties to pay back the money you borrow, they will deny your application. The reason for this is there are two types of loans, secured and unsecured. Secured loans tie to your assets which the bank is allowed to seize if you can’t pay back what you borrowed, but unsecured don’t.

So, the banks will have to trust you to repay that money. Otherwise it will become a very complicated situation resulting in a long process of attempts by the bank to get their money back somehow. So, what can you do if you’re qualified as someone who is unable to repay the debt. Well, there is a thing called guarantor loan.

Guarantor loan is an unsecured loan which requires you to present somebody else who will act as a guarantor. This person who agrees to guarantee for you will, if you fail to pay back the money you borrowed, have to pay it for you. Guarantor loans can be anything between 1 and 10 thousand dollars and the agreement usually lasts for one to five years.

Now you may ask yourself, who can act as a guarantor?

Guarantor can be almost anyone. You don’t have to be related to this person, it can be your friend or a colleague. All that matters is that this person is financially linked to you.

The reason why a guarantor can be anyone is that the bank doesn’t care for your connection. All that the bank cares about is a good credit history and that the guarantor will be able to pay back what you borrowed. Also, the guarantor usually has to be over 21 years old.

The important part about guarantor loans is that the interest rate is high. There are variables that will determine how much that will be and there is no general interest rate. The rates are determined solely on your credit worthiness. The better it is, the less interest you will have to pay.

As we’ve mentioned above, the guarantor loan is an unsecured loan.

So what happens if you fail to pay it back in time?

IMG_2089-2153-300x200The bank will ask your guarantor to come up with money. If you do so, the bank will probably take it to the court and try to get their money back through legal system. If you’re a person who has been asked to be a guarantor, it is very important that you are well informed about all the consequences and procedures. You are the one who will have to pay the debt should the borrower fail to do so.  So be careful when you’re signing the deal and make sure that a person who you’re guaranteeing for is going to pay it back.

Long-term loans and Student loans

Long term loans as their name says means the borrower has longer period to pay for his loan than in the cases of other loans, the repayment period can even be up to thirty years long. People often apply for it because of the certain expensive and needed things they cannot buy considering their current income such as houses, apartments or cars.

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Long term loans

The long term loans people take for the purpose of buying a real-estate are also called Mortgage loans. The credit history of a borrower is one of the most important conditions for the approval of the loan. If you do not have a perfect credit history you cannot hope for the lowest interest rates, instead you will have to accept a little higher interest rates and maybe some additional risk.

When applying for a loan, you should pay attention on the type of the interest rate your bank or credit union offers. Interest rate can be fixed interest rate or variable interest rate. Fixed interest rate means you monthly payments will be the same for each month. The interest rates or bank’s fees won’t change no matter what. Unlike these variable interest loans means that the interest rate and fees amount can grow over the certain period of time, resulting with you paying different monthly rates and not in a better way. Monthly payments will be higher and higher with each month which may lead to you paying a much bigger sum of money for bank’s interest rates and fees than for the thing you used your loan for.

Also longer repayment period means more monthly payments which again means more interest rates – more monthly payments for the same thing you want to buy may seem like a right thing to do, smaller monthly amounts right? Have in mind that this can also result with a higher interest rate expenses.

Student loans

Other than cars and houses, long term loans are used for education, college and university expenses, since often they are too high and really talented students often cannot afford this themselves, so they turn to loans as one and only option. Student loans can be federal or private, and if you are choosing which one you should apply for, the answer is Federal student loan which is in every way better then the private one. Lower interest rates, the possibility of forgiving and canceling the loan, and not to mention Income Based Repayment methods, which are the best option, it means your monthly payments will be determined according to your income amounts.

However, there are certain conditions you have to fulfill so that you could have your federal loan granted. You will have to be a successful student or oblige yourself to working in some federal company for certain amount of years which can be great because than you would not even have to return your loan. Private student loans are offering slightly higher interest rates and without any possibility of canceling or forgiving it. And when you are applying for a private student loan be sure it is not the one with the variable interest rates and compare interest rates to other banks and credit unions nearby.

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Choosing between a fixed-rate mortgage and a variable-rate mortgage

If you have decided to buy a house, it is highly likely you are also looking for a loan agreement to help you pay the house’s value. One of the most common types of loans for such purpose is mortgage. Mortgages come in a variety of forms, they offer different terms and conditions, but they can all be divided into two basic types: fixed-rate mortgages and variable-rate mortgages. In this article, we will deal with the differences between the two, but also with their advantages and disadvantages.

A fixed-rate mortgage

The name itself says it – with a fixed-rate mortgage, also known as a traditional mortgage, the interest rate does not change over the whole period of mortgage repayment. This means that the monthly installment of your mortgage debt will not rise over the years, no matter the market conditions and other factors that might influence the interest rate.

This type of mortgage has both advantages and disadvantages, but let us start with the advantages. First of all, since the interest rate does not change over the years, it means that the installment will always stay the same, and it makes it much easier and more secure to distribute your money and plan the financial moves. It is especially good if you plan to stay in the home you have purchased and if you have signed a mortgage agreement on long term – because it is more stabile and it is not unpredictable like variable-rate mortgages.

When it comes to disadvantages, it can happen that general rates go down, but the interest rate you pay will stay unchanged. If you wish to take advantages of lower interest rates, you have to refinance the mortgage, which includes another loan and may end up as a complicating venture and reduce your equity on the house.

A variable-rate mortgage

The term is again self-explanatory: with variable-rate mortgage (also known as adjustable-rate mortgage), the interest rate fluctuates over time in accordance with the official financial index rate. This means that the amount of monthly installments changes as time goes by, getting higher or lower than the initial payment amount.

Just like a fixed-rate mortgage, a variable-rate mortgage also has some advantages and disadvantages. On the plus side, every variable-rate mortgage offers the initial rate which remains unchanged and it is lower that the interest rate of fixed-rate mortgages. This makes it easier to manage the debt over the first several years and to save up some money. Also, if the rates go down, the same will happen with the interest rate of your mortgage, which means that the monthly instalments will be smaller.

However, there are some negative sides of variable-rate mortgages as well. The first one is the shock when the initial period passes, because the monthly installments usually get higher after that period. Also, if the official rates increase, which is often the case, the same will happen with the interest rate of your mortgage and your monthly installment is going to rise.

Finding the Best Payday Loan Site

To find a best online payday loan site there are several things you should know and many more things to watch for. This might be a bit boring article for those who expected praises given to several sites that offer payday loans, and it will be. This article will put more thoughts into the search for a such site, because good examples of those sites are hard to find.

Things about lender you need to know!

In general, you should find three things about a lender: license, interest rate and terms.

  • License should be the primary goal of your search. If a payday lender doesn’t have license then you should be aware of them. Just by operating without a license they are placing themselves above the law. General advice would be to avoid online payday loan sites that are not FCA regulated because you risk a lot with loans taken from those sites.
  • Interest rates some of those online payday lenders offer are truly exorbitant. Some will offer you loans that will be deposited to your account in the matter of hours, but before accepting such conditions be sure to check the interest rate they have. And before agreement on the loan ask them once more about the interest rate you will have to repay. Reason for this last moment check is due to practice in which some lenders list one interest rate on their site and lend you money with different much higher rate. Once you have to pay it they will say that interest rate covers all losses they made by processing you loan application in short time.
  • And read carefully about all terms a lender offers. It comes down to asking yourself some questions and seeking satisfactory answers among the date the payday loan site has provided. If you can’t find answers that suit your situation then that site is not for you.

Many payday lending sites will tell you the maximum amount of money they will borrow you, but small number of them will list the minimum. So ask about that info if you can’t find it on their webpage. Some lenders will avoid risking small amount of money on loans, and they place their minimums on 500 or so dollars.

Repayment period is important as well. Most common repayment period is two weeks, but they may vary in both repayment period and interest rate attached to different repayment periods. Look into this and find out whether you will be able to repay that loan on given expiration date.

Search the web for any comments from customers that took payday loans from that site. Sift through them and find whether the payday loans site is good or bad in dealing with customers.

Some online payday loan sites will require some basic documents and some will not. Place more trust in those that require some documents, because they must check whether you are able to withstand their interest rate and pay them when the time comes.

And always and I mean always check the rating that site has from BBB or Better Business Bureau.

Getting Quick Payday Loans Online

 

When you are in urgent need of money. You do not want to spend time in the application process that can be time-consuming and confusing. There are sites which services are offered exclusively online so that the waiting time and the loan approval is largely reduced. Quick payday loans online are safe because of many reasons. One of the main is that the money is paid directly to your checking account.

You will get money very quickly with quick payday loans online:

Do not hesitate to fill out an application if you are faced with the necessary and urgent funds to cover finance. In case you find conditions suitable for you, please send them a request and they are ready to provide assistance as soon as possible. There, you can pick up fast loans without certification from the company. It needs only 2 minutes of your precious time to fill in the application and money will be on your bank account within 15 minutes.
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They offer fast payday loans online to people who need money in a really short period of time and without complications. When borrowing money from them, you can be sure you’ll get a quick and discreet service. Their application is simple, no unnecessary questions and interfering in your privacy.

When it is the best time for getting quick payday loans online?

download (12)They work online exclusively, so that you can request a fast payday loan at any time. No matter where you are, with just few clicks money can be yours. Their application is supported by the usage of tablets, PCs and smartphones. Thus, they help simplify and speed up the process of getting quick payday loans which you can request online.

You will enjoy their services because of various differetn reasons:

 

1. they will be given to you the same day you requested them
2. you will not have any additional costs
3. they will not require from you any additional certificates of notaries and employers
4. reduced stress is guaranteed
5. Save your time and money

smiling in office
smiling in office

They have worked with over 2 million satisfied customers worldwide and the EU to whom they offer discrete and easily accessible quick payday loans online. After the first time you have made an application and your payday loan is approved, they have provided one more favor for you and it is SMS payday loans where you can ask for money by simply sending a message.

Quick loans online amount the maximum of $900 with a short period of paaying it off. This allows you to solve your financial problems quickly. Thus, contact them if you find yourself in a tough financial situation.