Browsing Tag

smart debt

Debt

4 Quick Strategies For Paying Off Student Loans

Build a Solid Budget

It can be hard to adjust a budget to include a loan payment, especially if you’re not used to making one. A good rule of thumb is to separate your budget by the 50-30-20 rule: 50% of your monthly take home income toward living expenses, 30% to discretionary funds, and 20% to debt repayment and savings. Depending upon how many loans you have and the interest rate, you may need to get aggressive and contribute 30% to debt repayment and 20% to discretionary or “fun money”.

Try and find something that works for you, but that allows for you to make progress on your loans.

Set up a Great Debt Snowball

Repeat after me: Paying off as much as you can now will pay off big time later, to prevent compound interest from accruing.

One great way to accomplish this is by setting up what is called a “debt snowball.” In the debt snowball, you list all of your loan amounts and putting those with the highest interest rates at the top. The idea is to put all of your extra money to paying off the highest rate loans, and then when that one is paid off, on to the next loan, and so on and so forth. The advantage to this is that you could save thousands on interest.

The only downside to paying down loans with the highest interest rate is that it can take a long time for someone to pay them off and feel successful. So, if it makes more sense to you to pay off smaller loans first in order to feel accomplished and empowered, then by all means- do so. Many find this ”reverse snowball” approach essential to keeping motivated with debt payoff and avoiding debt fatigue.

February 26, 2015

Debt

Quick And Easy Tips On How You Can Cut Spending To Reduce Your Debt

Once you start noticing that your credit card debt (or any other debt for that matter) is getting out of hand, you need to start looking for the best debt settlement strategy for your set of circumstances. You may already be in the red or are steadily on your way there, but a few adjustments to your expenditures and some sound advice can get you back on the right path.

Cutting your expenses

If you have not already done so, you need to find ways to avoid spending money. Here are a few ideas:

Sell your second car

If you have two cars, you should certainly sell off one of them. This will get you some quick cash, which you can use to reduce your debt as well as cut back on your expenditures by thousands of dollars each year. Granted, it is quite the adjustment but well worth it.

1. Smart grocery shopping

Take advantage of the sales in your local grocery store to stock up on the non-perishables and foods that you can freeze. If you stock up two months’ worth of food, you will cut down on your monthly shopping to just perishables, which will save you a lot of money.

February 24, 2015

Debt

The Do’s And Don’ts Of Unsecured Personal Loans

An unsecured personal loan can be a blessing to a consumer who knows the do’s and don’ts of the loan process. An unsecured personal loan is generally a lump sum cash payment that a consumer can obtain without providing the lender with collateral. Collateral usually consists of security items, such as a car or a house that some lender require their applicants to offer up for security on the loan. An unsecured personal loan can provide a consumer with the cash that he or she needs for a wedding, a vacation, pay down credit card debt or whatever reason. However, choosing one lender blindlymay mean missing out on savings when you repay the loan. The following provides tips on the do’s and don’ts of unsecured personal loans:

Do Check Credit Score First

A consumer should not apply for an unsecured loan until he or she receives a clear picture of the current credit rating. A credit score can affect various aspects of a loan such as the interest rate and repayment length. A consumer might be able to increase the credit score and place himself or herself in a higher bracket before applying for an unsecured personal loan. Disputing strange accounts and paying off debt can raise a credit score rather quickly. The credit bureau may remove suspicious accounts within 30 days. A removed account can boost a consumer’s credit score significantly.

January 9, 2015

Debt

How To Find The Right Bank For Your Personal Loan

When you need to make a personal purchase such as a vehicle, a personal loan may be your only option for purchasing the item. A personal loan allows you to get the cash you need to purchase an item that you would like. Most individuals will use a personal loan to purchase a high ticket item that may cost a few thousand dollars. A personal loan has advantages as you can get the cash you need and have a low interest with low payment. This can allow you to make your purchase without going in to debt. It is important to find the best bank for a personal loan yet many people have no idea how to get started. Below are a few tips on how to find the right bank for your next personal loan.

Low Interest Rates

One of the features you should look for when searching for a bank for your personal loan is low interest rates. You want to have the lowest rate possible so that you can pay less in interest and more on the principal. This way, you will pay off your loan quickly and be able to enjoy your new item without a monthly payment. Different banks offer different interest rates based on loan plans so you need to do your research before making a final decision on which bank to use.

January 3, 2015

Debt

Using Your Car To Fix The Central Air Unit Of Your Home

With the summer months upon you, the lack of proper air conditioning can make you miserable. This mental state could affect everything from how you interact with the family to the choices you make in your career. Those that are unable to get a night’s rest can become irritable and irrational. This can all happen thanks to your central air conditioning unit being inoperable.

Many people are on strict budgets and are barely able to get by. Without the money to put into repairs, the home can become sweltering hot. Sure, you may install fans in the windows or an oscillating unit in the bedroom. However, there is a good chance that you’ll wake up in the middle of the night drenched in sweat and unable to get comfortable. Without the upfront cash to pay the repairman, how are you able to get your life back on track?

June 9, 2014

Older Posts

Newer Posts