Author: Staff (Page 13 of 14)

      Three Things That Can Severely Damage Your Credit Score

      July 23, 2011 /

      Debt and credit score: even the words themselves are ugly and somewhat scary. Whether it’s our general fear of being graded on anything or the short, staccato sound of the word “debt,” many of us would rather not include those words in our vocabulary. Unfortunately, we have to. Understanding what our credit score is and what factors can negatively impact us can help ensure a healthy financial outlook for our entire lives. Even if you’re currently in debt, it’s a good idea to understand how these three factors can negatively impact your credit rating in a massive way.

      Just a Little Late Is Too Late

      When you consider your credit score, one of the biggest factors that goes into the calculation formula is your payment history. 35% of your overall score is actually based on your payment history. Generally, being late on payments will quickly impact your rating negatively. Luckily, one of the best ways to address a poor credit rating is to make regular, on-time payments. If you have a chance to run your credit report and see multiple entries for late payment, it’s time to figure out a better way to pay your bills on time. Visit plaingreenloans.com whenever you’re in danger of making a late payment. Remember, while not all companies report on late payments, credit companies and many utility companies do.

      Charge Off Doesn’t Mean Gone

      Most people find themselves in the difficult position of being unable to pay one or more bills at some point in their life. Failing to pay your credit card bills has a negative impact on your rating, but it doesn’t stop there. After a predetermined period, companies will “charge off” your debt. This doesn’t mean the debt goes away; it simply means the company does not believe it’s collectible. Having one or more charge off accounts on your credit rating is a red flag for any financial institutions you’re hoping to borrow money from. Instead of not making your payments, visit plaingreenloans.com to help get you back on track.

      Foreclosure – More Than Just Losing Your Home

      With foreclosures reaching epic numbers in the country, more and more people are faced with the word “foreclosure” on their credit report. Unfortunately, it’s one of the most negative items that can appear. If you’ve had a foreclosure, there isn’t much you can do about it, so it is important to work closely with your loan holder to rehab your loan before you get to the foreclosure point. If you are having trouble making a mortgage payment, visit plaingreenloans.com for temporary cash relief.

      Having a bad credit score isn’t the end of the world, but it can make things very difficult. Stop being afraid of the words “debt” and “credit score” and start taking control of your financial future.
       

      Personal Finance

      Basic budgeting for new graduates

      June 4, 2011 /

      The Cleveland Plain Dealer has a good article on basic budgeting for new college graduates, but this advice can apply to everyone. The advice might seem obvious, but unfortunately many people, let alone young people, have no idea about this stuff.

      A smart budget has three building blocks: the money you make, the money you spend and the money you save.

      Once you draft a budget, you may discover your plans outstrip your actual income. The good news: You’re only in debt on paper.

      The real value of a budget is it lets you spot potential money problems and fix them before they hurt you or your credit rating.

      Check out the whole article, and you’ll be on solid financial footing for your life if you learn the basic rules of budgeting.

      Budgeting, Personal Finance, Saving

      American are shedding their mortgage debt

      May 16, 2011 /

      USA Today has a story on an interesting trend:

      Americans are reducing mortgage payments at a record clip, directing cash that once went for debt into consumer spending and savings.

      Low interest rates, defaults and refinancings have shaved more than $100 billion off the nation’s annual mortgage bill — an amount comparable to all unemployment benefits for one year or this year’s Social Security payroll tax cut.

      “This is a form of economic stimulus that goes to Main Street rather than Wall Street,” says Nicholas Carroll, a journalist on consumer finance and author of Walk Away From Debt for a Better Future. When freed from a mortgage payment, people’s first purchases tend to be necessities, such as socks and underwear, he says.

      Homeowners have trimmed interest payments alone by 11% — or $67 billion a year — from the peak in 2008, according to the Bureau of Economic Analysis (BEA). The savings come equally from grabbing lower interest rates and reducing what’s owed by paying down principal or defaulting on loans.

      This is another positive byproduct of the real estate bust. Home prices keep coming down, and more and more Americans are underwater on their mortgages. So many of them are walking away. Homeowners with jobs and good credit are taking advantage of low mortgage rates to refinance and lower their payments.

      This results in more disposable income, so Americans can spend more on typical consumer products.

      Banking, Budgeting, Frugality, Real Estate, Saving

      Tactics for a frugal lifestyle

      May 11, 2011 /

      If you like nice things, it can be difficult to lead a frugal lifestyle – unless you’re willing to work at it! The key is being smart and creative and doing the leg work.

      Here’s a great article on tactics for finding incredible bargains for luxury or designer goods. The author likes watches, so he digs around on the Internet for deals:

      I Love Movado Watches

      Anyone who knows me knows that I love Movado watches and will rarely, if ever, wear anything else. At a $30,000-a-year salary, I certainly can’t afford to shell out $1,000 or $2,000 on a watch. So I had to find a new source. I began scouring Craigslist, eBay, and pawn shops for good deals on watches. I found three Movado watches that were used and paid less than $500 total for all three of them. I recently sold one of these watches on eBay for $600. I now wear watches valued at more than $800 each, and I basically paid nothing for them.

      Give it a try!

      Frugality

      Collapsing home prices are good for the young

      May 9, 2011 /

      Robert Samuelson is usually bringing bad news. He’s a respected economist, but nobody will accuse him of being an optimist. In fact, he’s very bearish on our fiscal future and he believes that life will be more difficult for the next generation of Americans given our massive debt and the inevitable need for higher taxes or cuts in benefits like Medicare and Social Security.

      But he sees a silver lining with the collapse of housing prices. It’s terrible for anyone who bought a home in the past decade, but it’s good news for young people who home to buy a home some day.

      But housing’s troubles may have a silver lining. If you’re a homeowner, the steep fall in prices is calamitous. But if you’re a future buyer, it’s a godsend. What we’re seeing is a massive wealth transfer from today’s older homeowners to tomorrow’s younger homeowners. From year-end 2006 to 2010, housing values fell $6.3 trillion, reports the Federal Reserve. Assuming there’s no sharp rebound in prices — a good bet — that’s $6.3 trillion the young won’t pay.

      Up to a point, the lower home prices merely deflate the artificial “bubble.” But there’s evidence that the declines transcend that. The National Association of Realtors routinely publishes a housing “affordability” index, which judges the ability of median families to buy the median-price home at prevailing interest rates. By this measure, existing homes are the most affordable since the index started in 1970.

      Young buyers “will be able to enter the housing market at bargain prices,” argues NAR economist Lawrence Yun. When home prices again rise, increases will parallel income gains, meaning that the relative burden of housing costs will remain roughly stable, Yun says. He expects only modest increases in interest rates. (A rise of one percentage point — say, from 5 percent to 6 percent — on a $150,000 mortgage boosts the monthly payment about $95.)

      The important thing for young people, however, is learning to avoid credit card debt. If they don’t learn this lesson, lower housing prices won’t matter much as they wont be able to afford a mortgage payment if they’re loaded up with credit card payments.

      Frugality, Personal Finance, Real Estate, Retirement, Saving

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