How To Better Manage Your Budget And Avoid Debt

Marriages break down over finances, banks harass you regarding them, and the stress can drive you on the brink of despair. Feel like it’s the time to take the reins in your hands? The good news is that you can. Just combine a little bit of common sense with a pinch of planning, and you have the fastest grip on your ‘dough.’ Below are the top ten ways to take good care of your finances:

  1. Start with a plan. First of all, jot down all the facts of your fiscal life – how much money is coming in, how much are you spending, how much are you saving, how much do you owe somebody, etc. This will require you to bring out all the bank statements, utility bills, credit receipts, etc. Then divide the list into how much you want to put under each heading. Be realistic while doing so, though. You cannot get along on only 20% of your salary and save 80% of it! Then, start off on achieving your set target. Again, it has to be realistic and should allow for any variable costs that you may have.
  2. Involve the family and your better half in planning your budget and savings. Listen to what everybody needs. Listen to their suggestions and involve them in filing receipts etc. so that they know how much you all are spending versus how much you have to. This will make them more comfortable with any changes you might propose.
  3. Categorize your savings into emergency funds, your children’s college funds, retirement savings and leisure fund. This way you will have a cushion whenever the need arises. For example, your children will not have to miss college if they do not get scholarships or they do not inherit an estate from that old great grand aunt. Emergency funds should at least be three months worth of expenditure.
  4. Record your savings. Keep records of what you are spending money on. Is there a way to cut down on this spending?
  5. Cut down on your credit card use, because once you are hooked on buying things using credit, you would always be paying off high-interest debt. You do not have to stop totally, but realize what you can pay back in a logical timeframe.
  6. Expensive gifts are always the biggest financial shock. Cut down on the price and improve the experience. Be creative and give gifts that are more than hefty price tags.
  7. If you are planning on mortgaging a house or buying a car on a bank loan, first consider if you would be able to pay for it without changing much of your lifestyle. Consider what small changes you can make and if that would affect your family.
  8. Cut down on expensive leisure activities. Spend more quality time together.
  9. Do not treat away all your perks and bonuses.
  10. Teach your children how to manage their funds because an early start is always a good investment.

Follow these guidelines and you’ll be well on your way to living a debt free life.

How To Improve Your Poor Credit Score In Order To Get A Loan

Consider this: You have just a few weeks left in which you have to repair your credit score. You want to boost your score in order to be eligible for a loan with a very low-interest rate and with no income verification. Therefore, do you know the proper steps to achieve this? This is what we’re going to talk about in this article.

Bad credit score has several consequences in your loan application. You might not be accepted because you are considered as a high-risk borrower or you can get accepted to a loan that has very high interest. Low credit score will always get you high-interest rate loans. Creditors and lenders may even charge you additional fees for having a poor credit score because they know that you are a great risk.

You can start boosting your credit score by seeking professional counsel and help. Credit experts will guide you to create a proper game plan that you must follow. However, you have to pay their service of repairing your credit. Repair of your credit will start by getting your credit score from the three credit bureaus. Equifax, Experian, and TransUnion are the three credit bureaus that calculate your score and they differ from one another most of the time. A credit score is the most vital basis in your application for credits and your score determine any other loans, interest rates, and other loan requirements. Credit history in your credit report is the one that directly influences the score.

Therefore, you should obtain a copy of your report from the credit bureaus. Now that you have both the credit report and score, you should know that the quickest way to improve your credit score is by making a move to remove the negative items listed in your report. Disputing is the process of removing any derogatory items and this is your right according to the Fair Credit Reporting Act. By disputing means, you are telling the creditors that you have already paid off these collections. As you dispute it to the credit bureaus, they will inform the creditors about it, and they have 30 days to investigate it. Showing proof of payments to the creditors will make the investigation faster.

Another way on how to improve your credit score quickly is by paying bills on time and you must make it a habit. Delinquent payment will harm your score and if you miss to pay them, you should take corrective action as soon as possible. As you pay all your unpaid bills, ask for a payoff letter or deletion letter. These letters are your proof that you have already paid the collection. Also, ask if your creditor will delete items that you have already paid for this action will increase your score fast.

For preventive measures, think twice if you are applying for opening or closing credit account. If you add or remove credit card accounts rapidly, your score may go down. Therefore, you should take it slow like closing old and unused accounts once in every two months or more. In addition to that, never spend more than 30% of your credit card limit for spending more than you really need hurt your score.

Credit score improvement is not as easy as you think. It is a continuous effort that needs time and persistent from you. You should take appropriate action to improve your score like the ones listed here.

What To Consider When Choosing A Financial Planner

Before you hire a financial planner, you should conduct an interview and ask a lot of questions so you can determine whether he or she will be able to handle your accounts effectively. It is important to ask about the type and amount of experience possessed by any prospective financial planner. You will want to know how many years they have been active in the industry. It will also be necessary to learn which firms for which they have worked. You may wish to have the prospective planner articulate some of his or her previous experiences in the field, and what types of things they learned and how they will apply that knowledge to new clients. Should you be seeking a planner who will provide investment guidance, you may wish to find a professional who has experience in navigating clients through economic downturns.

The term “financial planner” means different things to different people and it is essential that you get clarification as to exactly what qualifications the candidate has. For example, you can determine whether they hold such titles as Certified Financial Planner or Chartered Financial Analyst. Holding these titles is indicative of having completed comprehensive examinations and illustrate a dedication to the profession. You should also establish what plans the candidate has for professional advancement course to stay abreast of changes in the field of financial planning.

Services the candidate is offering.

Proper licensing and credentials are required for many services. Lacking proper licenses, financial planners may not offer insurance or securities products such as mutual funds or stocks nor offer investment advice without registrations with state or federal authorities. Some planners are only eligible to give advice in particular areas such as tax matters or financial planning, while others are not licensed to sell financial products but can offer financial planning advice on a broad range of issues.

Does the planner has close ties to promoters of financial products?

Such promoters encompass stock brokerages, insurance carriers and financial institutions. You need to know the kinds of clients and circumstances any potential adviser typically prefers. It is useful to learn whether they adopt a unified approach, crafting a comprehensive plan aimed at achieving a wide range of client objectives, or whether they are narrower in their expertise. A critical element when it comes to determining whether you have found a good fit is whether you and the planner have a shared investment philosophy.

Inquire the fee structure for the planner’s services.

Actual cost will likely be determined by the goals and desires of the client, though any reputable financial planner ought to be capable of offering a rough guess regarding probable pricing. Information necessary to conduct a thorough analysis of any fee structure includes the professional’s hourly rate, flat fees charged for particular types of services, and commission structures for any product purchases made as a result of professional advice received.

Licensing and credentials.

It is not uncommon for financial planning professionals to render opinions and advice on securities products even though they do not possess the proper licensing to do so. Certain states may have no licensing requirements for such work, but in all cases, it is important to know if a financial planner possesses all relevant credentials for the work he or she undertakes. Licensing involves rigorous exams and continuing education requirements which must be met to maintain the appropriate credentials. It’s important to be cautious and aware of the fact that licensed planners may be nothing more than salespeople wearing the disguise of planner or adviser.

4 Ways To Pay Off Student Loans Effectively

If you’re going through college in the US, you’re bound to have some student loans to your name, whether it be a lot or a little.  And sure enough, you are not the only one! Millions upon millions of young adults are diving into debt as we speak for an education that will allow them to gradually pay off that debt in the future. What to do? How to speed up paying my debt?

Well like anything in this world, if you want something to get done, it takes determination and focus. If you want to pay off that loan as quick as possible, there are certain things that can be done.

  1. If you aren’t someone who is going to make a ton of money in your profession, it is important not to take on a lot of debt and extra payments that you don’t need after you graduate. Don’t buy that expensive car! Live at home for a year or two after college! Having a car payment, a house/apartment payment, buying expensive toys are going to take money away money that could go towards paying off your loan. Live simply, and focus the majority of your money into that monthly loan payment!
  2. There are websites out there that do help. is a newly launched site that charges you $1.00 to submit a picture that shares good news happening in your life, and then in turn that money goes back to helping people pay off their student loans. It’s a very cool and creative site… and worth going for a chance to get your loans paid.
  3. Do NOT use a credit card!!! If you are someone who loves to spend money then having a credit card is the worst thing you can do! Credit cards are for spending cash that YOU DO NOT HAVE! Not to mention that people who are fresh out of college will probably have to pay high-interest rates on that card. So if you are using credit cards to buy furniture, expensive toys, clothes, etc. all you are going to be doing is focusing your money to pay off your Visa or MasterCard, and not your student loans. Want to know an easy way to establish some credit?? Get a gas card and use it to fill up your car. An easy way to establish some credit.
  4. Pay more each month than just the minimum payment. If your monthly payment is minimum $200, try and pay $500. Pay as much as you can each month, but do try to pay more than just the minimum. Interest rates are pretty low for student loans, but it is still an interest rate, and for every month that goes by that rate is building more and more debt. So pay as much as you can when you can! But be sure you still have money for food, rent, etc.

These are just a few ways to help you pay off your debt faster.

Tips For Choosing The Right Student Loan

When choosing a student loan, there are a lot of options available to us so it is important to go about it the right way, so here are a few tips on how to choose the right student loan for you.

Feel the FAFSA

This is a free application for federal student aid, so make sure you analyze it properly if in case you are interested in winning a loan.

Private student loan comparison

Put your ears on the ground and eyes on the price when comparing private student loan by taking into consideration the key elements that are favorable.

Creation of private loan alternatives

Why can’t you come up with some other alternatives for your fees apart from private loan? Think of government subsidies, work study, part time job plus other ways of getting your fees rather than putting your eggs in one basket!

Get knowledge of your loan options

Take time and find out where your loan standard stand for your expectations to right because it will be a rude shock on your side when the result is inadequate.

Confirm interest rate

Hurry-hurry has got no blessing and that is the reason why it is very sensitive to verify the rate of interest on your fees before signing.

Ensure if loan capitalization is applicable

Lenders operate under different rules and it is good to know if your lender will capitalize on that loan or not.

Capitalization effects

The chances are that capitalization will increase the amount of monthly payment vs the amount owed. If you get a lender who will capitalize annually then you are on the safe side rather than lenders who do it after 3 weeks or 6 months.

Repayment assistance options

Graduated repayment indicates that your loan monthly repayment starts at a lower point and continues to tick up as your earning increases. On the other side, forbearance is the deferment of your repayment due to inevitable circumstances. When picking the repayment assistance alternatives, it is advisable to select what best works for as the beneficiary.

Pick a lender with good customer service

The customer service is vital for customer inquiries and information just in case one wants to get in contact with the lender for more updates. Learn how to play on the safe side by ensuring the customer service of your lender is easily accessible.

Key Reminder

Weigh federal vs private student loan. Anyone who wants to land on his feet must put on a scale the value of forgone alternatives. Try and deflate all your federal student loan chances before picking on private student loan. Remember to look before you leap because, every choice comes with a consequence.