Entries from October 2011 ↓
October 18th, 2011 — Debt Consolidation
A student loan can be a real lifesaver for persons needing financial aid, who might not otherwise be able to afford the cost of getting an education without getting a loan; but a student loan can be a nightmare to repay, especially if the recipient of the loan only used the loan for a few semesters but did not actually go on to finish his/her degree. Even if the recipient received a degree and is qualified to work, the difficulties of finding a job in the current economy still poses a major problem and student loans become huge burdens rather than an investment. Paying off a student loan can be an incredible burden that forces the recipient to scrimp and save to make the payments, even if he/she did finish a degree and does fine a job, not even bankruptcy will defer the payments; so here are a few options that are available to persons who want to once and for all be rid of their student loan debt.
Make Faithful Payments
The most obvious method of getting rid of student loan debt is to faithfully make the payment, paying more than is required whenever possible; this might not always be possible however and your student loan debt becomes due a few months after you are expected to receive your degree, whether you are employed or not, so if your payments are due and you are unable to pay them because of unemployment or some other problem, here are some other avenues you can try for getting rid of the debt.
Join the Peace Corps
A good way of eliminating or decreasing your debt is to join the Peace Corps, VISTA, or teaching in a designated low-income school for five years or more; teaching will pay you up to $5,000 working for the Peace Corps or VISTA will rid you of 15% of your loan for each year that you are in the program. You won’t earn a lot while working in these programs but at least you will have 15% less to pay on your loan with each year that passes.
Consolidate Your Loans
If you have more than one loan to repay, consolidating them is a good idea as this will mean you only have one loan to repay and the interest loan will usually be lower; the overall amount you will have to pay may increase however, so before making a decision to consolidate your student loans, carefully evaluate your current and prospective rates and terms to see if you will benefit or not.
Refinancing
As with consolidation, refinancing may mean that you pay more overall but refinancing may make the month-to-month payments easier to handle since you may have a longer time to pay off the loan and lower your monthly payments; again you will want to evaluate which option is most beneficial to you and bear in mind that refinancing may not work for you unless you have a good credit score, as you may not be able to refinance, or your rates won’t be as low if you have a bad credit score.
For more information, read Loan Guaranty and Consolidate Your Student Loans.
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October 17th, 2011 — Debt Consolidation
If you have a home mortgage you’ve probably thought about how things would be like if you were to pay it off and be free from the monthly payment hanging over your head each and every month. However their are times when you should and should not pursue this option, and this article I’m going to cover 3 reasons when you should.
When You Have No Other Debts
First off, if you have all of your debts paid off then paying off your mortgage would only be the next logical step. This means you have no other high interest debts such as credit cards, personal loans, or even a car loan. The reason you’ll have these debts paid off first is because they will usually carry much higher interest rates. On top of that mortgages also carry some special tax treatment. In fact any interest you pay on your loan will be tax deductible in most cases whereas no other debts get this special privilege.
When You Are At The Beginning Of Your Loan
The second reason you should consider whether to pay off your mortgage early is if you are in the first 10 years of a 30 year fixed mortgage. The reason this is the best time to pay extra money towards your mortgage is because it’s in the first 10 years of a 30 year fixed mortgage when you’ll pay the most interest, and it’s also the time you could save the most money and pay your mortgage down a lot faster. So if you have the extra cash this could be the perfect time to pay down that mortgage early before you get hit with all the extra interest payments.
When You Are Retired
Finally, the last reason you need to consider paying off your home mortgage early is when your retired. The truth is most retired people are having to live on less and less these days. In fact with social security in a tailspin and government spending out of control the only chance you have to getting a good retirement is to pay off all of your debts so you don’t burden your golden years. On top of that as a retired person you’re more likely to pay higher taxes since you don’t have a 401k retirement plan to contribute to or any dependent children at home anymore to help lower your tax burden.
In the end if you fit these three different situations you may want to consider a plan on how to pay off a 30 year fixed mortgage in 5 to 10 years as your best option to paying the least amount of interest and saving you the most money overall. So get started today towards a life without a mortgage now.
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October 11th, 2011 — Debt Consolidation
If you thought identity theft could not get any worse and that with all of today’s technology identity theft would simply go away, you were wrong. In fact, technology has just made it easier for hackers to skim credit cards, run email phishing schemes, and steal personal information from business computers. But technology is not the only thing leading to higher numbers of this crime. The high unemployment in the United States has seen a direct correlation with more identity thefts, as criminals get more desperate to make an extra buck.
Police across the country are saying that many people are stealing social security numbers so they can use it for employment. You may not have heard of this kind of identity theft, but it’s even more perilous to victims because it can go unnoticed for a long period of time. Sometimes, a person wanting to get a job will use the wrong social security number on purpose and only be off by a few digits so they can say it was a mistake if they get caught. Often, false names are also given and many employers never do serious checks to discovery that the person is using a false identity on his or her application.
With unemployment numbers around 9%, more jobless individuals are getting desperate to feed their families and earn a living and are turning to this life of crime. It’s easier to have more anonymity with identity theft and it can even be more lucrative than other forms of crime, but the devastating effects are just as harmful, and police are cracking down on this crime with even greater vehemence. A person guilty of identity theft can face charges of a first-degree misdemeanor but can even get hit with a felony depending on the crime and how the information was used. The unemployed are definitely not doing themselves or society a favor by ripping other people off with stolen credit card numbers and social security numbers.
The police are trying to get the word out that they are ramping up efforts to combat identity theft and making the charges even more sever. And those charges can get even worse if the person has committed identity theft before or if the theft was against a person older than 60 years old. Add that a person can get slapped with illegal use of a computer and other technologies and the charges will begin to pile up.
While not having a job is no excuse for committing a crime, it is apparent that one of the greatest focuses of the country right now needs to be lowering that unemployment number. Each individual also needs to be responsible with his or her information and a good place to start is to get some kind of identity theft protection service. You should shred any personal documents instead of throwing them in the trash, and make sure you cancel all of those credit card offers that can fill your mailbox every day. Even with all of today’s technology many crooks still steal identities by going through the trash and stealing people’s mail, so do everything you can to prevent that from happening. You also need to be aware when surfing online and only buy through retailers you know you can trust and have a good BBB rating.
Jon writes articles informing the public about how they can protect themselves from identity theft with Lifelock reviews and other resources on his website.
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October 3rd, 2011 — Debt Consolidation
The cost of living is continuously increasing and as such, it can be really difficult to make your financial ends meet at times. You are likely to find yourself having to turn to the use of a credit card/other credit options at some point during your life and this is perfectly fine so long as you do not borrow more than you can afford to repay (for this can lead to bankruptcy) and do not borrow for reasons – or in a way – that is contradictory to your Christian values.
The bible might state that:
“No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money.”
(Matthew 6:24)
…but this does not mean your shouldn’t seek financial aid when such is absolutely necessary, or that attempting to keep your head above financial waters will see you become any less loved by or connected with God.
When the pressures of living in a capitalistic economy begin to bother me and I find myself lusting over something that I cannot fund, I turn to the good book for inspiration. I try to keep the following ideology and verses to mind.
Buy Now, Pay Later: Can you keep your Christian promises?
“If man vows a vow to the Lord, or swears an oath to bind himself by a pledge, he shall not break his word. He shall do according to all that proceeds out of his mouth.”
(Matthew 30:1-2)
When you sign your name on the dotted line of a credit agreement, this is the equivalent of you giving your word that you will repay all that you borrow. Borrowing too much will see you land yourself in financial trouble and break this promise to repay. This sin will lead to both guilt and a bad credit rating.
Are you a Christian that buys more than is necessary?
“Then he said to them, ‘Watch out! Be on your guard against all greed; a man’s life does not consist in the abundance of possessions.”
(Luke 12:15)
Before you decide to pursue the option of credit, you must ask yourself whether you are need of extra funds because of a necessity to provide for yourself and/or loved ones or because you are too frivolous with your spending. Man does not need much beyond the roof above his head, clothing on his back and a loving relationship with God and so, if you are borrowing money in order that you can wear designer labels or get your hands on the latest Apple gadget then you are succumbing to the sin of greed. This leads nicely on to the next question…
Are you attempting to keep up with the Jones’?
“For where jealousy and selfish ambition exist, there will be disorder and every vile practice.”
(James 3:16)
If you continually strive to have what others own, you will never find your path to true happiness. The quest to keep up with others will see you borrow beyond your means and disorder in the form of bankruptcy or another struggle is likely. Rather than striving for more than you already have, you should aim to help those who have less than yourself.
Do you donate to those in need often enough?
“The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth.”
(Psalm 37:21)
“The point is this: whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully.”
(Corinthian 9:6)
Giving to others will see you focus less on that which you do not have and the lord shall protect you from harm (like which can occur from financial struggle) in return for your good deeds. A balance between serving your own basic needs and helping those in need must be achieved.
The author of this guest post – Kat Wiley – has found herself dependant on credit cards for bad credit in the past before she found salvation in our lord Jesus Christ.
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October 2nd, 2011 — Debt Consolidation
Business startup loans represent high risk to many financial institutions. People attempting to secure financing for a new company are often frustrated with the process and disappointed with the outcome. Anyone who is looking for a loan to start a new business can eliminate some of the obstacles by doing the proper homework.
When starting a small business, any entrepreneur must first calculate how much money is needed in addition to whatever capital is already on hand. After determining how much money to borrow, the future business owner must prepare the proper documentation to present to potential lenders with the loan application. These documents should include a detailed plan for repayment of the loan. There are several things an entrepreneur can do to increase the chances the lender will approve the loan.
- Take the time to prepare a well thought out business plan. The lender must know exactly how the business owner plans to spend the money.
- Prepare an updated resume showing the experience and skills needed for running a small business. Many lenders will request copies of various financial documents including bank statements and income tax returns dating back one or two years.
- Starting up a new business requires applying for the proper permits and licenses. Every location has different requirements, so it is important to get familiar with local regulations. These documents should also be included in the information presented to the lender. Include any legal documents required for operating a business in the area.
Most business owners will need business startup loans to get the doors open. The process of applying for a loan is time consuming but with the proper preparation, the entrepreneur has a much better chance of obtaining the funds needed to get going. This kind of meticulous preparation will be worth the time and effort when the lender approves the loan.
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