It’s Spring – Time to Review Your Mortgage
Most homeowners borrow extensively to pay for their home. However, even if you get a great home mortgage immediately and make the right choice when it comes to fixed rate or adjustable home loans, that does not mean your decision is over. As the market and your own financial situation changes, you will want to re-evaluate your home loan to ensure that it still meets your needs.
For example, if you did not have perfect credit when you first applied for a home loan, you may now have better credit. Refinancing your mortgage can help you get a better rate. If you applied for an adjustable rate or a fixed rate mortgage and realize now that you could save money with a new type of mortgage, refinancing can help.
Even small changes made to your mortgage now can save you thousands or even tens of thousands of dollars over the term of your loan. At least once a year, therefore, you will want to look at your mortgage and current financial situation. You might even want to make an appointment with a mortgage specialist to review your loan. Look for every possibility for paying off your mortgage faster and for less money. It will save you cash that you can use for other expenses.
However, if you are struggling to make your mortgage payments due to unexpected expenses or a temporary financial setback, taking out a payday loan may seem like a quick fix. But be cautious, as payday loans often come with high interest rates and fees, and can lead to a cycle of debt if not paid back on time.
Before considering a payday loan, explore other options such as negotiating a payment plan with your mortgage lender or seeking assistance from a financial counselor. It is important to prioritize your long-term financial stability over a short-term solution that may create more problems in the future.
Another important factor to consider when reviewing your mortgage is your long-term financial goals. If you are looking to retire in a few years or if you have other big financial plans in the future, you may want to consider paying off your mortgage faster.
One option to consider is making extra payments towards your mortgage principal. This can help you save money on interest and pay off your mortgage faster. You can also explore refinancing your mortgage to a shorter term, such as a 15-year mortgage instead of a 30-year mortgage.
Finally, it is important to regularly review your mortgage to ensure that it still aligns with your current financial situation and goals. By staying on top of your mortgage, you can make informed decisions and save money in the long run.…
A Debt Plan
If you have huge debts you need a solid plan to tackle it all. The best system is a simple step-by-step plan that keeps you out of overwhelm:
Find out how much you really owe. Look at all your bills and read a copy of your credit report. What do you owe, to whom, and by when? Make a list.
Drum up some support. Debt is stressful and having someone to talk to is very useful. Build a support network of friends and family you can turn to as you pay down your debts.
Budget. You need to keep track of what you spend so that you can funnel more towards your debts until they are paid off.
Start an emergency fund. Don’t just put every penny towards your bills. Set aside at least a few months’ worth in a savings account. Otherwise, you’ll just end up in more debt with the first emergency.
Cut spending, increase income – or both. If the debt is bad, you may need to take a second job or stop all unnecessary spending for a while.
Consolidate only if you can avoid new personal loans and credit card charges. Keep in mind that consolidation will only work if you have good enough credit to get a decent interest rate and the discipline to stop all new debt completely.
Dip into savings to pay down debts, but avoid tapping your emergency fund, retirement plan, or home-equity loans. Unless you really nip your debt habits in the bud, it’s easy to deplete your long-term security net and get into even bigger debt all over again.…
6 Ways to Overcome Feelings of Deprivation When Saving and Paying Down Debt
While saving money and paying down debt are important financial goals, it can be challenging to resist the urge to spend money on things you want but don’t necessarily need. Here are some tips to help you fight feelings of deprivation when you are saving and paying down debt:
1) Set Realistic Goals: Setting achievable goals can help you stay motivated and avoid feeling overwhelmed. Break down your goals into smaller, manageable steps, and celebrate your progress along the way.
2) Create a Budget: Having a budget can help you prioritize your spending and make sure that you are putting your money towards your goals. Include some room for discretionary spending, so you don’t feel deprived.
3) Find Frugal Alternatives: Look for ways to save money on the things you need, such as groceries, household items, and entertainment. For example, you can try shopping at discount stores, using coupons, or finding free events in your area.
4) Practice Gratitude: Focusing on the things you already have can help you appreciate what you have and feel less deprived. Take time each day to reflect on what you are thankful for.
5) Find Support: Surround yourself with people who support your goals and encourage you to stay on track. You can also seek support from online communities or financial counselors.
6) Reward Yourself: When you reach a milestone or achieve a goal, treat yourself to a small reward. This can help you stay motivated and feel less deprived.
Remember that saving money and paying down debt can be challenging, but it is worth it in the long run. With some effort and determination, you can achieve your financial goals and feel more secure and in control of your finances.…
Mistakes That Cost You Big Cash
Some mistakes hurt you more than others, but these financial blunders can really bite you in the long run:
Carrying a credit card balance. Paying off your credit card is one of the smartest things you can do. Carrying a balance gets you a hefty interest charge and lowers your credit score.
Too many debts. Multiple debts mean spending more on interest and mean more bills and money out of your pocket. A combination of payday loans, personal loans, and other debt can also become overwhelming and confusing.
Not keeping tabs on your credit score. You should check your credit score at least twice a year to ensure that you have not been the victim of identity theft or fraud. If you have been targeted, you need to act fast to stem the damage.
Not thinking long term. If you’re thinking paycheck to paycheck you may arrive at retirement age with nothing saved up. You need to be thinking of purchases and life decisions you will be making five, ten, and thirty years down the road.
Overspending. Spending too much (more than you earn) traps you in a vicious cycle of debt that is very hard to crawl out of.
Not budgeting. If you’re not planning where your money goes, your money will always have a tendency to disappear on frivolous purchases.…
Bad Debt Moves
Sometimes, people who are trying to pay off their debts land themselves in even deeper water by making the wrong decisions with their debt. Are you guilty of these bad moves?
1 – Switching credit cards to take advantage of an introductory offer and then carrying a balance. After that introductory rate, the rates will soar and if your card is not paid off, you’ll be paying plenty. Plus, you may have temporarily lowered your credit rating by switching cards. Only switch if you know you can pay off the balance before the special offer runs out.
2 – Not keeping lines of communication open with companies you owe money to. If you’re going to be late with a payment, you need to phone in to let them know.
3 – Not checking your credit score. If you never check your score, there’s no way to know whether you are the victim of identity theft.
4 – Robbing Peter to pay Paul. Taking out one loan to pay another leads to ridiculous debt interest rates.
5 – Having a fatalistic attitude. Thinking that nothing will dig you out will not solve your problem. You need to keep at it.
6 – Rolling over payday loans. Carrying payday loans over month to month leads to astronomic interest rates.
7 – Using store cards. Store credit cards have even higher interest rates than credit cards. If you can’t afford to pay in cash, save up for the item.…