Thursday, December 17th, 2009 at
9:47 pm
Having over stepped the comfort zone of most people viewing the live Pay Off Your Mortgage weekly challenge I can understand peoples scepticism on how they too could reach the heights of seeing 91,000 thousand pounds of their money within just 3 years in their bank accounts, or reduced from their credit card and mortgage debt. However unless you are extremely good at income and expenditure control, you will find out if you simply add it up, you tend to spend what you earn.
We hi-light typical everyday scenarios every week on the website and blog about what tend to be the vast majority of peoples spending habits. This is not meant as a criticism, it is all because we tend to do what we see others doing and that is to match our expenditure to our income.
This in no way reflects on the amount of money you earn, there is no rule, or indeed social proof that just because you are on a low income you are closer to bankruptcy than if you are on a higher income. In fact the higher the income homes tend to be the ones with the highest expenditure.
The higher your income, the more money you tend to borrow, and the higher your repayments are per month, so you begin to start the spiral of having to earn more money again to create more surplus money to buy more things. Add to that the peer pressure of success in the eyes of others is having a big house and a flashy car on the drive and you can easily get suckered in to those glittering prizes by using your surplus expenditure on easy monthly payments.
It is the classic buy now, pay later society that we live in today, yet if you asked 95% of the population do they feel better off today than they did a few years ago and they will probably say no.
They may well earn more money than they did, but they have matched, or worse, exceeded that income rise by increasing their expenditure to the point where they are now far less comfortable than they were even a year ago.
The double blow has been the rising costs of oil, food and utilities which are not a choice expenditure, but due to surplus monies being spoken for, they often return to the need to earn more money cycle again and so the spiral increases upwards.
The only way you can stop this life cycle of upward destruction is to:-
1. Stop Adding To The Problem by clearing as much bad debt as possible, including credit cards, loans, mail order and easy monthly payment purchases
2. Learn to get back in control of your expenditure to the point you are freakishly in control of everything that enters and exits your bank accounts
3. Build up a contingency account of at least six to 12 months “Necessities” payments to allow yourself some breathing space
4. Simplify your lifestyle; ask yourself what you really want from life, not just in material possessions because that is what lead you to this point. Life is not about being a Magpie collecting shiny things; get wealthy first, then buy them for cash as a gift for your loved one, if you need a great book on simplifying your life, check out:- Swimming With Piranha Makes You Hungry by Colin Turner
5. Start a part-time business, not only will it focus your attention on building something for your future, it will also focus your attention on creating wealth first, which is the opposite of what most people tend to do.
By: Diane Cossie
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Saturday, November 14th, 2009 at
3:24 pm
Do you see the dust blowing through the deserted town called Sub-prime mortgageville? If you did not already notice this tibdit of information that I will be giving you then you are in for a surprise. Over the next several months a stated income or no-documentation connecticut home loan will have more hoops to jump through to qualify. The industry as already changed so many of the guidelines regarding these loans that your head could burst trying to keep up with the new guidelines. The new changes even impacted the connecticut home equity loan rates as well. Some of the examples of the changes include; eliminating stated or no doc programs for first time home buyers and requiring substantially higher credit scores for borrowers.
As recently as last year in 2006 connecticut homeowners or potential home owners could qualify for a Connecticut home loan for up to four or five hundred thousand dollars from mortgage banks without verifying their income and with a credit score below 600. From our perspective it appeared that qualifying for a connecticut home mortgage required a pulse and the ability to sign your name. I can never understand how someone who cannot prove their income could qualify for connecticut home mortgage with no money down through 100% financing for their first home purchase with lackluster credit scores in the five hundred range. No one had to tell me that it sounded like a bad idea.
From where I sit it seemed like the mortgage industry as a whole was setting the connecticut homeowners up to lose their homes and continue the poor spending habits that most times contribute to the low credit scores in the first place.
Now in fairness to the mortgage industry, stated income loans have been around for over twenty years and were initially created to provide an option for self-employed individuals who often have challenges gathering income information from several different sources. However, even in the good old days the borrower had to have great credit scores as well as put down a minimum of twenty percent to qualify for a connecticut home mortgage loan using this program. The historical data shows that these programs had a high success rate and minimal defaults on the mortgage payments.
Well, let’s fast forward to 2007 and you can see a very different story. We have record foreclosures in connecticut and many lenders that served a vital role in employment for many areas are now shuttered and boarded up. If you want to hear my earth-shattering advice then here it is: buy a home you can afford with your current income. If proving your income is a challenge for any number of valid reasons then you must have excellent credit and be able to verify your income and then you are the ideal candidate for the stated or no doc program. On the other hand, if you plan to get a stated income or no doc loan because your income is not enough to qualify for the program, then you are driving straight towards the dead end sign that leads to financial demise. You must live a life that is balanced between achieving the American dream as well as preparing for your future.
By: Christoper Rivers
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Tuesday, August 11th, 2009 at
8:29 pm
The first thing which a person a person is asked while applying for credit loan is that what is his credit score. Well, someone might end up with bad credit scores even before he gets to know the importance and relevance of the whole thing. Credit cards can make people take huge loans without even letting them realize what importance their credit scores can have in their lives in later stages.
Sometimes circumstances like medical bills, accidents , injuries, disasters, calamities etc can also force people to end up with bad credits. Life does not always goes according to what was planned and the result is that the person might end up with bad credit ratings.
How to find bad credit lenders
Credit lenders may appear as a messiah to the people with bad credit scores. Every other lender in town will refuse to lend money to a person with bad credit, but it is the bad credits lenders who come to aid at those times and grant a loan.
With more people looking forward to owning property, cars, houses etc, the lending business is at its peak, and a large number of people are looking for loans, but many fake companies have also mushroomed up along with the genuine companies, most of these guys operate through the internet and try to make as money by charging high fees, high rates of interests etc. Thus it is very important to distinguish between the genuine and the fake lenders.
Things to know about mortgage loans with bad credit.
The importance of mortgage loans for saving ones house is known by every person, but all of us are not fortunate enough to get good deals on mortgage loans. Most people have bad credit history because of bad spending habits at young age, often the joy of getting ones very own credit card or getting a first job might make people spend without putting much thought into it but these factors eventually lead to debts, his however prevents getting of good mortgage deals, when required in the later stages of life,
But now companies have introduced loan schemes which are specially designed for people with bad credits history.
If someone has missed out on credit card payments or student loan installments then buying a house can seem to be impossible. Getting hold of mortgage deals with good rates of interests depends solely on ones past credit score, those who have faced credit problems should go for mortgage financing with bad credit.
The biggest problem which the people having bad credits face is trying to get loans of any size.
They even face problems while getting a new credit card, leave alone the struggle they have to go through while taking up big loans like house loans or car loans and in today’s world you will merely feel handicapped while traveling if you don’t have a credit card or are not able to rent a car. Through bad credit loans, anyone can take up small loans and get credit cards.
By: Jitesh Arora
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