Getting Out Of Debt And Using Available Resources

More Ways to Save Money

You Can See Debt Relief

It’s not easy to get out of debt, but it may not be as hard as you think. First and foremost, take a look at your budget and figure out what the expendable items are. Let’s say you’re a breadwinner in a house of four—two adults, two children—and that you pay a regular mortgage. You likely are financing a vehicle as well.

If your mortgage is $1,500 a month, your financed vehicle is $500 a month, food and gasoline cost you $150 a week, and you have miscellaneous expenses that come to about $600 a month, then you’re looking at $3,200 in spending, or $38,400 a year. This means your minimum salary has to be in the $45+ range to see any kind of profit after taxes.

But let’s say you’ve been just barely getting by on $36,000 a year for the past five years, and your debt average has ballooned to $137,000. In those five years, you’ve paid $90,000 on your house and $30,000 on your vehicle. If you’re still paying on either, it’s time to sell them both.

The Possibilities

If you are able to sell your mortgage, your car and between the two see at least $70,000, you’re doing well. A way to increase your possible investment recoup could be to expand the value of your property before you sell.

You can add between $10k and $20k just by installing a 5.1 kWh solar energy system. You’ll additionally get a tax break, and if you are savvy enough to install the system, you can do it on your own for about $5k, bringing in a two to four-fold profit.

Cut out another $20k for a number of expenses. One, you’re going to have to move—but if you’re downsizing anyway, you’ll want to have a number of garage sales as you go about optimizing your debt relief strategy. Either way, these things have associated costs. Two, you’re going to need a vehicle to get around.

Three, for between $5k and $10k, you can find a full-sized motorhome in very decent shape. Four, you need land to park it on so you can live utility and rent free for the next five years—though you’ll have to figure out a workable septic situation and a water supply. All these things can be done for around $20k total; call it $25k to be safe.

A New Strategy

Now you’ve got a place for you and the family to live in for a few years while you escape the debt gremlins. Plus, you can immediately pay $60,000 against your $137,000 debt. Now you only ow $77,000, or about 26 months’ work.

If you’re not paying a mortgage, and you’re not paying for your car, suddenly your $3,200 a month costs drop to $1,200 for food, gas, and miscellaneous expenses.

Everybody in the household can spend $300 a month, and you can put $24k a year against your debt. In three years and two months from the time you start living like this, your debt is gone.

Personal Applications

This hypothetical assumes the $137,000 figure includes accumulated interest throughout the five years you’re paying it—you’ll need to sit down with a debt specialist and figure out specifics of your personal situation. Debt resources are integral here.

One well-known resource is http://www.debtacademy.com, an organization that has amassed a collection of resources that is quite expansive and designed to help clients out. With help like this, and the discipline to maintain a cost-effective living strategy, you can escape debt and retain assets.

Whole vs Term Life Insurance

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Life insurance coverage is one of the most important purchases that you’ll ever make for your loved ones. Because life insurance is such a vital investment, it’s important that you find the best life insurance plan for you. There are several different key factors that you will need to consider to ensure that you’re getting the best coverage for you.

One of those factors is the type of plan that you’re going to buy. There are several kinds of insurance plans that you will need to choose from. All of them have different pros and cons that you will need to compare before you pick a plan. It can be confusing deciding which one is going to be the best for you, but there are some simple questions that you can ask about your life insurance coverage that will lead you in the right direction.

The Coverage

The biggest difference between the two plans is the type of coverage that they provide. Each family is different, and every person is going to need a different type of life insurance protection.

With a term life insurance policy, you’re only getting life insurance for a certain amount of time. These plans are bought with an expiration date attached to them. After that date, they are no longer active and you don’t have insurance protection. If you want to have life insurance, you will need to purchase a new plan. Term life insurance policies come in just about any length, anywhere from 2 years to 30 years.

Whole life insurance, on the other hand, is a permanent form of coverage. That means that the policy is never going to expire. As long as you pay the monthly premiums for the policy, you will have insurance protection. For anyone that doesn’t want to worry about having to reapply in the future, whole life policies are an excellent option.

The Cost

The most important part of selecting a kind of life insurance is looking at the price of the coverage. The price is one of the first questions that applicants ask when they are shopping for insurance coverage. It’s important that you get the best plan for you at an affordable rate. A life insurance plan shouldn’t break your bank every month.

If you want to get the most affordable life insurance coverage, then a term insurance plan is going to be a better option. Term insurance policies are going to be much cheaper than a whole life plan. In fact, whole life insurance is going to cost around three times more than a temporary form of coverage. In most cases, applicants are surprised to see how affordable term insurance plans can be.

Additional Benefits

There are a couple of unique advantages to each of these types that you should be aware of when you’re looking for life insurance protection. With a whole life insurance plan, you can take advantage of the cash value that is built up inside of the policy. The longer that you pay the monthly premiums for the plan, the more value the policy has. You can use the value of the policy to secure a loan or to borrow against if you need money in the future. You won’t get this option with any of the term insurance plans.

Term plans have a few benefits as well, but the most notable one is that you can tailor them to fit your life insurance needs. One of the main reasons that people buy life insurance is to give your family the money that they need to pay off your mortgage if something were to happen to you. With a term plan, you can purchase a life insurance policy that matches the length of your mortgage loan. That way, you’ll ensure that you aren’t paying for an additional coverage that you don’t need.

Deciding Which Type is Best For You

Before you decide which type is best, you will need to review some important areas of your life. Look at things like your debts, final expenses, and the people that rely on your annual income. These are some of the main purposes of your life insurance coverage.

Because you never know what’s going to happen tomorrow, you shouldn’t wait any longer to get the insurance protection that your family deserves. If something tragic were to happen to you, and you don’t have life insurance, your family would be stuck with all of your bills and other final expenses, which is going to make the situation a thousand times worse.

Finding What You Need in a New City

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Every year millions upon millions of people move to a new city. The reasons for relocation vary from person to person, but the U.S. Census Bureau has been tracking that information for nearly 20 years. They’ve narrowed down 19 core reasons for moving into three categories:

·  Family needs

·  Job-related

·  Other housing

In other words, many people are moving to improve their family life, career or housing situation. No matter why you moved, once you’re in a new city you’ve got to begin building your new life. That starts with getting a few necessities squared away.

Getting Your Medical Needs Covered

Find a New Doctor

Everyone can benefit from having a primary care physician, especially if you have an HMO health insurance plan or a chronic illness. Finding a doctor you can trust can be a tedious, stressful process. Start by asking your current doctor for recommendations. HealthGrades.com is another free resource for finding a new doctor. You can search by specialty and location then read the reviews and credentials for nearby medical professionals.

Find a New Pharmacy

Once you’ve found a new physician you’ll need someplace to fill your prescriptions. Fortunately, there’s a search tool for that which allows you to find a pharmacy near you – just click on pharmacy near me. Just type in your new address and the tool will give you a list of all the local pharmacies.

Find the Closest Hospital

Another piece of information you hope you never need but nonetheless is good to have is the location of the closest hospital to your new home. However, keep in mind proximity isn’t the only consideration. If there’s an emergency, you need medical attention fast.

Use Google maps to find the closest hospitals and emergency rooms. If there’s more than one, map out the distance but also pay attention to traffic. You may find that the closest option isn’t necessarily the quickest option.

Find a New Dentist

Even if you only see the dentists for semi-annual checkups, they play a vital role in your overall health. Again, you can ask your current dentists for suggestions to speed up the process of finding a reputable professional.

Getting Your Financial Needs Covered

Some people move to reduce the cost of living. But where are you going to put all the money you saved? Banking is largely virtual now, however, you can still benefit from having a bank you can go to and speak with people face-to-face.

If you plan to stay with your banker use their website or give customer service a call to find out about local branches. People that bank with a credit union may be able to use a sister branch without having to close their current account. Check with your credit union to make sure your local credit union is compatible.

Getting Your Education Needs Covered

If you’re a college student or have school-aged children, educational facilities are a top priority. You’ll need to start the enrollment process ASAP (or at least as soon as you have documentation with proof of your new residence). But before you can do that you’ve got to find the school you want to attend.

For elementary, middle and high schools there’s no better resource right now than GreaterSchools.org. You may be limited to certain public schools in your immediate area, so keep that in mind if you haven’t found a place to live yet. Another thing to consider is routes to the school and whether bus pickups will be an option.

Getting Your Social Needs Covered

After all the work involved in making a move, you deserve a break. Depending on where you move there could be more entertainment options than you’ll ever get around to enjoying. So how do you go about finding the best entertainment that’s still affordable? Here are a few places to try.

Public Parks – Public parks are the quintessential place for free entertainment. Check the city’s website to find out which parks are open to the public. Don’t forget to check the events calendar for

Local Libraries – Libraries regularly host free readings and events in addition to loaning out free reading material.

Local Sport Centers/Teams/Athletic Clubs – Sports are a great way to bring a community together for a little fun.

Meetup.com – Meetup.com is the go-to resource for finding clubs, get-togethers and groups that enjoy your favorite pastimes. There are even groups of people who are new to a city.

Now get out there and start enjoying your new city!

Obtaining A Co-Signer Can Lower Loan Interest Rates

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Increase The Likelihood Of Loan Approval With A Co-Signer

A given bank is going to work so that its interests are protected. This is their most prime prerogative. There’s not going to be much leeway in approval for loans as a result—well, not as there was in recent years, anyway. Fannie Mae and Freddie Mac were programs which approved many who couldn’t afford certain loans.

The thing is, when a bank can’t get the money back on a variety of loans, that bank will eventually implode. Without securing their own investments—because interest makes an approved loan an investment on the part of the bank—then the bank is putting itself at serious risk.

In today’s loan environment, strictures have tightened the coffers of many lending agencies. If you’re going to take out a loan, you must be approved; and sometimes your credit isn’t requisite to your needs. If you can, opt for personal loans which require no collateral. By researching online for a signature.loan you’ll see how beneficial they can be. On the other hand, you can go with cut-rate lending agencies, but such loans come at high interest.

Getting approved for a loan at high interest is a lot more like defeat than victory, because high interest rates can double your principle in as little as a year’s time, if you sign with the wrong people. But unless you’ve got some way of increasing your own credit, this may be your only option.

However, if you’re able to partner with a cosigner, then you’ll be able to increase the financial security through which the bank sees your potential. A cosigner can in many cases double your “credit”, and make it possible for you to get approved for loans where otherwise this would have been impossible.

Increasing Investment Opportunities And Diminishing Debt

Going the co-sign route is a brilliant choice for those who have little to no credit, or have never taken out a loan before. College students looking to escape traditional student loan solutions can have a parent co-sign. Business partners can work together to increase their investment capital.

Additionally, if you’re already in debt, getting someone to co-sign on a consolidation measure can actually end up making payment of that debt more manageable through the reduction of adverse interest.

DebtConsolidation.loans provides this info on applying for debt consolidation loan with a co-signer: “One common way to get a lower interest rate on a loan is to add a co-signer who will also be responsible for the loan should you not be able to make payments.”

With someone acting as a cosigner, the bank can see your debt with new eyes. They don’t have to be so adroit in the protection of their interests. This can help you get out from under the thumb of adverse debt with greater expedience, leading to financial independence.

Getting a debt consolidation loan basically means obtaining a loan to pay off the disparate debt which is already your responsibility. But because of the “pass-the-buck” nature of this measure, banks level some amount of interest to such a loan in order to protect their interests. Still, it’s better than multiple separate interest rates.

Critically Considering The Numbers

If you’ve got five loans at 3% interest, then it’s like having one loan at 15% interest. If you can get a debt consolidation loan that lowers that loan to 7% interest, you’ll likely save thousands. If you can get a cosigner to lower that interest to 4%, then you’ve dodged 11% of your previous interest expenses.

Granted, you’ll likely be in a different kind of debt to the person who co-signs on your loan, but many agree this is much to be preferred over being in debt to a financial institution.