Dumping your debt
Millions of Americans set a goal for and succeed in paying off their credit card debt each year – is this one of your goals? With a little determination and a plan, you can take control of your credit, and improve your credit score in the process. Here’s how:
Cut the Cards
The first step toward reducing your credit card debt is to stop adding to it. While you don’t have to literally shred your cards, you do need to stop using them routinely. Try one (or all) of the tips below to break this habit:
a) Carry Cash – give yourself a weekly cash allowance for expenditures. You’ll be more aware of how much you actually spend; plus, once you run out of money, you’re more apt to stop spending
b) Use debit, not credit – for times when only plastic will do, use your debit card instead of a credit card.
c) Out of sight, out of mind – keep your credit cards at home and you’ll be less likely to use them.
d) Think strategically – decide on two to four credit cards with which you have a lengthy, positive history, and close any other accounts. Having a few good accounts will boost your credit score, but having too many will hurt it (and may also keep you tempted to spend money you don’t have).
Lower Rates/Cut a Deal
Once you’ve got your spending under control, focus on reducing your interest rates:
a) Negotiate rates – call up your credit card issuers and ask for a better rate. Explain that your plan to transfer the balances to another card unless your rates are lowered. Usually, borrowers with good credit scores can cut their rates by a few points – sometimes as much as 10%.
b) Transfer balances – consider transferring balances from cards with high interest rates to a different card. Look for offers with low introductory rates that are good for at least a full year, with relatively low rates thereafter. Read the fine print and pass up offers from cards with hidden fees or costs.
c) Shop around – do a little investigative work to find the best card offers. Check out www.cardweb.com for current offers.
Reduce Your Debt
Now it’s time to start chipping away those balances. Develop a strategy and make it happen, using the following tips:
a) Sort it out – make a list of each credit card you have, its existing balance, minimum payment and interest rate. Use any of the online calculators listed here to help you determine which card to pay off first: CNN Money Magazine at http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp or Quicken at http://www.quicken .com/planning/debt/
b) Develop a plan – pay as much money as you can on your card with the highest interest rate, while paying the minimum on the other cares. This additional payment on the high-rate card will help to pay off the principal faster.
c) Build a debt snowball – once your highest interest rate card is paid off, take the same amount you’ve been paying on that card and add it to the minimum on the card with the next highest interest rate (this is commonly referred to as “snowballing” or a debt-reduction rollover of your payments). Continue to pay the minimum on the remaining accounts, repeating the process until you are debt-free.
d) Have a back-up – keep one low-interest card put away for emergencies, but maintain a zero monthly balance at all times by paying it off when due.
Think Ahead
Now that you’re debt-free, start thinking even further ahead:
a) Invest – begin to invest the same amount of money you’ve been applying to debt every month. You’ve trained yourself to live on less by paying as much as possible toward your debt each month, now take that philosophy and use it to your advantage, reinforcing that thrift must continue in order to develop a mindset of abundance.
b) Visualize – spend a few moments each day imagining what it will feel like to be debt-free, paying cash for every purchase and looking forward to a comfortable retirement!
TIP: Call 1-888-5-OPTOUT to stop the flood of credit card offers from reaching your mailbox.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
Showing posts with label debt forgiveness. Show all posts
Showing posts with label debt forgiveness. Show all posts
Wednesday, June 24, 2009
Dumping Your Debt
Dumping your debt
Millions of Americans set a goal for and succeed in paying off their credit card debt each year – is this one of your goals? With a little determination and a plan, you can take control of your credit, and improve your credit score in the process. Here’s how:
Cut the Cards
The first step toward reducing your credit card debt is to stop adding to it. While you don’t have to literally shred your cards, you do need to stop using them routinely. Try one (or all) of the tips below to break this habit:
a) Carry Cash – give yourself a weekly cash allowance for expenditures. You’ll be more aware of how much you actually spend; plus, once you run out of money, you’re more apt to stop spending
b) Use debit, not credit – for times when only plastic will do, use your debit card instead of a credit card.
c) Out of sight, out of mind – keep your credit cards at home and you’ll be less likely to use them.
d) Think strategically – decide on two to four credit cards with which you have a lengthy, positive history, and close any other accounts. Having a few good accounts will boost your credit score, but having too many will hurt it (and may also keep you tempted to spend money you don’t have).
Lower Rates/Cut a Deal
Once you’ve got your spending under control, focus on reducing your interest rates:
a) Negotiate rates – call up your credit card issuers and ask for a better rate. Explain that your plan to transfer the balances to another card unless your rates are lowered. Usually, borrowers with good credit scores can cut their rates by a few points – sometimes as much as 10%.
b) Transfer balances – consider transferring balances from cards with high interest rates to a different card. Look for offers with low introductory rates that are good for at least a full year, with relatively low rates thereafter. Read the fine print and pass up offers from cards with hidden fees or costs.
c) Shop around – do a little investigative work to find the best card offers. Check out www.cardweb.com for current offers.
Reduce Your Debt
Now it’s time to start chipping away those balances. Develop a strategy and make it happen, using the following tips:
a) Sort it out – make a list of each credit card you have, its existing balance, minimum payment and interest rate. Use any of the online calculators listed here to help you determine which card to pay off first: CNN Money Magazine at http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp or Quicken at http://www.quicken .com/planning/debt/
b) Develop a plan – pay as much money as you can on your card with the highest interest rate, while paying the minimum on the other cares. This additional payment on the high-rate card will help to pay off the principal faster.
c) Build a debt snowball – once your highest interest rate card is paid off, take the same amount you’ve been paying on that card and add it to the minimum on the card with the next highest interest rate (this is commonly referred to as “snowballing” or a debt-reduction rollover of your payments). Continue to pay the minimum on the remaining accounts, repeating the process until you are debt-free.
d) Have a back-up – keep one low-interest card put away for emergencies, but maintain a zero monthly balance at all times by paying it off when due.
Think Ahead
Now that you’re debt-free, start thinking even further ahead:
a) Invest – begin to invest the same amount of money you’ve been applying to debt every month. You’ve trained yourself to live on less by paying as much as possible toward your debt each month, now take that philosophy and use it to your advantage, reinforcing that thrift must continue in order to develop a mindset of abundance.
b) Visualize – spend a few moments each day imagining what it will feel like to be debt-free, paying cash for every purchase and looking forward to a comfortable retirement!
TIP: Call 1-888-5-OPTOUT to stop the flood of credit card offers from reaching your mailbox.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
Millions of Americans set a goal for and succeed in paying off their credit card debt each year – is this one of your goals? With a little determination and a plan, you can take control of your credit, and improve your credit score in the process. Here’s how:
Cut the Cards
The first step toward reducing your credit card debt is to stop adding to it. While you don’t have to literally shred your cards, you do need to stop using them routinely. Try one (or all) of the tips below to break this habit:
a) Carry Cash – give yourself a weekly cash allowance for expenditures. You’ll be more aware of how much you actually spend; plus, once you run out of money, you’re more apt to stop spending
b) Use debit, not credit – for times when only plastic will do, use your debit card instead of a credit card.
c) Out of sight, out of mind – keep your credit cards at home and you’ll be less likely to use them.
d) Think strategically – decide on two to four credit cards with which you have a lengthy, positive history, and close any other accounts. Having a few good accounts will boost your credit score, but having too many will hurt it (and may also keep you tempted to spend money you don’t have).
Lower Rates/Cut a Deal
Once you’ve got your spending under control, focus on reducing your interest rates:
a) Negotiate rates – call up your credit card issuers and ask for a better rate. Explain that your plan to transfer the balances to another card unless your rates are lowered. Usually, borrowers with good credit scores can cut their rates by a few points – sometimes as much as 10%.
b) Transfer balances – consider transferring balances from cards with high interest rates to a different card. Look for offers with low introductory rates that are good for at least a full year, with relatively low rates thereafter. Read the fine print and pass up offers from cards with hidden fees or costs.
c) Shop around – do a little investigative work to find the best card offers. Check out www.cardweb.com for current offers.
Reduce Your Debt
Now it’s time to start chipping away those balances. Develop a strategy and make it happen, using the following tips:
a) Sort it out – make a list of each credit card you have, its existing balance, minimum payment and interest rate. Use any of the online calculators listed here to help you determine which card to pay off first: CNN Money Magazine at http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp or Quicken at http://www.quicken .com/planning/debt/
b) Develop a plan – pay as much money as you can on your card with the highest interest rate, while paying the minimum on the other cares. This additional payment on the high-rate card will help to pay off the principal faster.
c) Build a debt snowball – once your highest interest rate card is paid off, take the same amount you’ve been paying on that card and add it to the minimum on the card with the next highest interest rate (this is commonly referred to as “snowballing” or a debt-reduction rollover of your payments). Continue to pay the minimum on the remaining accounts, repeating the process until you are debt-free.
d) Have a back-up – keep one low-interest card put away for emergencies, but maintain a zero monthly balance at all times by paying it off when due.
Think Ahead
Now that you’re debt-free, start thinking even further ahead:
a) Invest – begin to invest the same amount of money you’ve been applying to debt every month. You’ve trained yourself to live on less by paying as much as possible toward your debt each month, now take that philosophy and use it to your advantage, reinforcing that thrift must continue in order to develop a mindset of abundance.
b) Visualize – spend a few moments each day imagining what it will feel like to be debt-free, paying cash for every purchase and looking forward to a comfortable retirement!
TIP: Call 1-888-5-OPTOUT to stop the flood of credit card offers from reaching your mailbox.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
Tuesday, June 23, 2009
10 Mistakes Buyers Make When Purchasing a Home
1. Making an offer on a home without being prequalified: Prequalification will make your life easier - so take the time to speak with a lender. Their specific questions in the regard to income, debt. etc., will help you determine the price range you an afford. It is an important setup on the path to home ownership.
2. Not having a home inspection: Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.
3. Limiting your search to open houses, ads or the internet: Many homes listed in magazines or on the Internet have already been sold. Your best course of action is to contact a Realtor. They have up-to-date information that is unavailable to the general public and are the best resource to help you find the home you want.
4. Choosing a real estate agent who is not committed to forming a strong business relationship with you: Making a connection with the right Realtor is crucial. Chose a professional who is dedicated to serving your needs-before, during and after the sale.
5. Thinking there is only one perfect house out there: Buying a new home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares similar homes that have recently sold, or are still for sale.
6. Not considering long-term needs: It is important to think ahead. Will the home suit your needs 3-5 years from now?
7. Not examining insurance issues: Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.
8. Not buying a home protection plan: This is essentially a mini insurance policy that usually lasts one year from the close of escrow. It usually covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.
9. Not knowing total costs involved: Early in the buying process, ask your Realtor or lender for an estimate of closing costs. Title company and attorney fees should be considered. Pr-pay responsibilities such as Homeowner Association fees and insurance must also be taken into account. Remember to examine your settlement statement prior to closing.
10. Not following through on due diligence: Buyers should make a list of any concerns they have relating to issues such as; crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.
Oh, by the way...whenever you come across people who are thinking about buying or selling a home and who would appreciate the kind of service I offer, I'd love to help them. So, as these people come to mind, just give me a call with their name and business phone number. I'll be happy to follow up and take care of them.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
10 Mistakes Buyers Make When Purchasing a Home
1. Making an offer on a home without being prequalified: Prequalification will make your life easier - so take the time to speak with a lender. Their specific questions in the regard to income, debt. etc., will help you determine the price range you an afford. It is an important setup on the path to home ownership.
2. Not having a home inspection: Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.
3. Limiting your search to open houses, ads or the internet: Many homes listed in magazines or on the Internet have already been sold. Your best course of action is to contact a Realtor. They have up-to-date information that is unavailable to the general public and are the best resource to help you find the home you want.
4. Choosing a real estate agent who is not committed to forming a strong business relationship with you: Making a connection with the right Realtor is crucial. Chose a professional who is dedicated to serving your needs-before, during and after the sale.
5. Thinking there is only one perfect house out there: Buying a new home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares similar homes that have recently sold, or are still for sale.
6. Not considering long-term needs: It is important to think ahead. Will the home suit your needs 3-5 years from now?
7. Not examining insurance issues: Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.
8. Not buying a home protection plan: This is essentially a mini insurance policy that usually lasts one year from the close of escrow. It usually covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.
9. Not knowing total costs involved: Early in the buying process, ask your Realtor or lender for an estimate of closing costs. Title company and attorney fees should be considered. Pr-pay responsibilities such as Homeowner Association fees and insurance must also be taken into account. Remember to examine your settlement statement prior to closing.
10. Not following through on due diligence: Buyers should make a list of any concerns they have relating to issues such as; crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.
Oh, by the way...whenever you come across people who are thinking about buying or selling a home and who would appreciate the kind of service I offer, I'd love to help them. So, as these people come to mind, just give me a call with their name and business phone number. I'll be happy to follow up and take care of them.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
Tuesday, May 19, 2009
How the housing crisis will be resolved
Kind of a snarky article at the NY Times about Countrywide executives being involved with the purchase of distressed loans from the government. The “bad” loans, or toxic assets as some call them are a significant part of the problem with the financial industry in the United States. There really is only one way to clear up that problem, and that’s to get rid of the assets at a price that makes sense for the purchaser, not the value most banks seem to feel the assets are worth.
The “fire sale” prices are what’s necessary to attract private capital to the product, and that private capital is certainly going to be more efficient than a government bureaucracy at turning that product into either a producing loan or selling the underlying home at it’s true current market value.
So why does the Times seem to feel it’s problematic to have major lending executives in charge? The tone seems to be the executives made money through greed on the market’s way up, and now they’re trying to make more greedy money on the way down. Who else is going to have the experience to run that kind of an operation? Reality dictates the need for experienced executives who can quickly determine which loans are salvagable and which properties need to be taken back. There aren’t years available for on-the-job training on how to do this, it’s got to be done quickly and accurately.
I never thought I’d be defending lending executives, but I think the Times has it wrong in this case.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
The “fire sale” prices are what’s necessary to attract private capital to the product, and that private capital is certainly going to be more efficient than a government bureaucracy at turning that product into either a producing loan or selling the underlying home at it’s true current market value.
So why does the Times seem to feel it’s problematic to have major lending executives in charge? The tone seems to be the executives made money through greed on the market’s way up, and now they’re trying to make more greedy money on the way down. Who else is going to have the experience to run that kind of an operation? Reality dictates the need for experienced executives who can quickly determine which loans are salvagable and which properties need to be taken back. There aren’t years available for on-the-job training on how to do this, it’s got to be done quickly and accurately.
I never thought I’d be defending lending executives, but I think the Times has it wrong in this case.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
How the housing crisis will be resolved
Kind of a snarky article at the NY Times about Countrywide executives being involved with the purchase of distressed loans from the government. The “bad” loans, or toxic assets as some call them are a significant part of the problem with the financial industry in the United States. There really is only one way to clear up that problem, and that’s to get rid of the assets at a price that makes sense for the purchaser, not the value most banks seem to feel the assets are worth.
The “fire sale” prices are what’s necessary to attract private capital to the product, and that private capital is certainly going to be more efficient than a government bureaucracy at turning that product into either a producing loan or selling the underlying home at it’s true current market value.
So why does the Times seem to feel it’s problematic to have major lending executives in charge? The tone seems to be the executives made money through greed on the market’s way up, and now they’re trying to make more greedy money on the way down. Who else is going to have the experience to run that kind of an operation? Reality dictates the need for experienced executives who can quickly determine which loans are salvagable and which properties need to be taken back. There aren’t years available for on-the-job training on how to do this, it’s got to be done quickly and accurately.
I never thought I’d be defending lending executives, but I think the Times has it wrong in this case.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
The “fire sale” prices are what’s necessary to attract private capital to the product, and that private capital is certainly going to be more efficient than a government bureaucracy at turning that product into either a producing loan or selling the underlying home at it’s true current market value.
So why does the Times seem to feel it’s problematic to have major lending executives in charge? The tone seems to be the executives made money through greed on the market’s way up, and now they’re trying to make more greedy money on the way down. Who else is going to have the experience to run that kind of an operation? Reality dictates the need for experienced executives who can quickly determine which loans are salvagable and which properties need to be taken back. There aren’t years available for on-the-job training on how to do this, it’s got to be done quickly and accurately.
I never thought I’d be defending lending executives, but I think the Times has it wrong in this case.
Rob Alley, Realtor of The Avery Group at Roy Wheeler
540-250-3275 (cell)
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
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