If you want to stop relying on lenders and creditors to get you through the month, then it’s time to learn about debt free living. Follow these eight steps to live debt free. Many of the steps are small and can make a big difference.

1.       Create a budget and stick to it.

Financial experts recommend that you spend a certain percentage of your monthly income on the necessities, leaving the remainder for savings and incidentals. Reserve 35% of your budget for housing, 15% for transportation, and 15% for food.

2.       Pay more than the minimum on your credit cards.

If you only pay the minimum on your credit card debt, you might only be covering the interest. Pay more than the minimum to achieve debt free living.

3.       Check your credit report.

The last thing you want is to have your credit ruined because of a forgotten debt or because of identity theft. Take a peek at your credit report every 12 months to make sure all things are in order.

4.       If you want something, save money for it.

Need new siding on the house? Want to take a trip to Paris? Wishing you could give all the kids their own iPads? Save money for the extras and pay for in full right away.

5.       Look at all your debts and pay them in order of size.

List every debt you have in the order of size. Pay off the smallest debt first and work your way up.

6.       Have a rainy day savings.

It’s recommended that you have 9-12 months of income in a savings account just in case. If you are often tempted to dip into that rainy day account, move the funds to an interest bearing account at a different bank where you do not have a checking account or debit card.

7.       Call and ask for lower interest rates and payment plans.

Many lenders and creditors will lower your interest rate or create or adjust a payment plan, but you have to call and ask. You may also have to prove your facing financial hardship.

8.       Ask for help.

Along with asking for lower interest rates and payment plans from creditors and lenders, ask a financial advisor to help you get on the path to debt-free living. Many professionals charge a fee for this service, but you might also find free help from organizations such as the Salvation Army. They will show you how best to handle your existing debt and give you advice on other money-saving tips such as health savings accounts, IRA contributions, and more.

This is a guest post by Allison Murray. Allison recommends finding more information about debt free living at Dialog.Scarborough.com.

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Selecting a house is already a daunting task, but finding the finances to buy the house you want can lead to additional stress. As a first-time homebuyer, you need to know the important elements involved in buying a house, such as acquiring financial assistance. As you may already know, buying a house is a huge and expensive investment. For this reason, you will need the assistance of a lender to finance such investment- unless you can pay the full price of the house upfront.

With that said, you need to acquire a mortgage loan from a trusted mortgage provider. Choosing a mortgage is the first step towards owning the house you’ve always wanted. This process can become frustrating and stressful, especially if you are not well prepared. To help you understand what happens when you apply for a mortgage loan, here is a four-step guide to help you with your application.

Step 1: Examine Your Finances

You must first come up with a good estimate of how much mortgage you can afford. There are a number of lenders who are very eager to make your home application very enticing to help you qualify for a higher mortgage rate. Unfortunately, they might offer you a deal that is more than what you can afford. For this reason, it is best to have a budget.

You can come up with your budget by evaluating your income, expenses, and your monthly payments. After subtracting your expenses and monthly payments from your income, the amount left is how much mortgage you are capable of paying every month. Aside from the monthly mortgage, you must also take into account other expenses, such as insurance, taxes, and homeowner association dues.

Step 2: Correct And Improve Your Credit Score

Your credit score is one of the factors that a lender must evaluate. A high credit score will allow you to borrow money at a lower mortgage rate. To help you achieve a good deal, you must check your credit score. You can do this by getting your full credit report.

If your credit score is low, you must take the time to correct it. For instance, you can spend a couple of months paying your debts on time. You must also check for any errors or inaccuracies in your credit report. If you found any errors, you must immediately make the necessary corrections. Remember that you cannot immediately achieve a high credit score overnight; thus, you must take your time and exert your effort in preparing your credit score.

Step 3: Shop For A Loan

After you have done the first two steps, it is time to shop for a loan. You can look into the mortgage rates offered by banks, mortgage brokers, and online mortgage providers.

• Banks: They offer a traditional form of mortgage funding. They are also more trustworthy and reliable since banks have recognizable brand names, and their fees are very competitive against lenders. Unfortunately, some banks lack a broad range of loan programs, which may translate to higher interest rates and fees.
• Mortgage brokers: They can offer a wide variety of loans; thus, they can tender low interest rates. Additionally, individuals with a not-so-impressive credit rating can still apply. The downside is that mortgage brokers are usually more expensive than other funding options.
• Online mortgage providers: This mortgage option also offers a wide variety of loans. The biggest disadvantage is that they do not offer face-to-face services.

Step 4: Loan Application

Applying for a loan is one of the easiest procedures, especially if you have gathered all the necessary financial documents to prove your claims. You must first fill out an application form with a loan officer. The application form might ask the following details:

• Name
• Social Security Number
• Birth Date
• Present address and address history
• Details of current employment and employment history
• Income, Assets, and Liabilities

After filling out the application form, the loan officer will then run your credit report and check your FICO scores. Additionally, you need to provide proof and other documents, such as paycheck stubs, bank account, tax returns, and investment earnings reports. If the loan officer believes that you are capable of paying the mortgage loan, they will employ a professional appraiser to ensure that the value of the home you want to buy is worth the purchase price.

Contributed by : Hayden Homes is a reputable home building company that offers their readers simple tips and advice on how to get a mortgage loan.

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Some of us work hard, pay our dues, but are still flat broke at the end of the month. Then there are those who seem to cruise through life and they are always doing the things we cannot afford to, despite the fact that they have a worse job and yet still drive a more expensive car than that which we drive. It is okay to feel aggrieved, but when you realise those people are bouncing from one loan to another and are rapidly reducing their spending power, it is also okay to feel a little happier. The problem is that those kinds of people always seem to manage to scrape their way out of a financial mess right at the last minute, but is that any way to live your life.

What is a Good Reason?

We all know the answer, nobody wants to dread letters coming through the door because they don’t know if they are going to be able to pay them or not, that’s why it’s important to make sure we use loans responsibly. That doesn’t mean we shouldn’t get ridiculously in debt for a family holiday to Cancun, it just means we shouldn’t do it twice in a year, although many people do just that. On a less serious note, some people have come up with some crazy reasons for loans that are definitely worth sharing.

Top Five Mad Loan Reasons

1. I want to buy a pet snake, Spider, Monkey or other exotic animal

Fair enough, exotic animals need the correct environment and a great deal of care. Bills at the vets are liable to run into thousands if animals lack proper care, but borrowing a few thousand pounds to kit out a spare room like a Brazilian rainforest is a little eccentric. It’s a little more worrying when there is not spare room and the person states that they live in a one-bedroom flat.

2. A loan for a Friend

One sure way to lose friends is to lend them money. Well, that’s not strictly true. Lending the money is fine; it’s asking them to make repayments that often cause the arguments. If someone cannot get a loan, it’s usually for a reason so you are well advised to leave them to deal with their own problems. Things come to a head when repayments are late and the friend is out on the town every weekend.

3. Borrowing to Invest

In all fairness, most businesses borrow to invest, but that is a lot different from someone taking out a personal loan to invest in a business venture or worse, the stock market. There is no safe investment out there that provides a better income than the cost of a loan; otherwise, the loan companies would put their money into those investments instead of risking it with customers.

4. A loan to pay off  a loan

This is not to be confused with a debt consolidation loan, which in certain circumstances is very useful. The type of loan that is not useful is the kind that people use to cover missed payments, late payments or any other short-term problem. People are far better off when they speak to the company they have a loan with and explain the situation.

5. A loan for Cosmetic Surgery

This is a new one, but both men and women are becoming so conscious of their appearance, they are prepared to take out huge loans to achieve a certain look. The problem is they are rarely satisfied even after spending thousands and of course, the cost rises even higher when interest is on top. Most plastic surgeons offer finance solutions to customers and this is nice little side earner for the practice who already rakes it in with the surgery costs.

Most people are not silly enough to get themselves in a great deal of debt because of something as stupid as the five reasons here, but we are all guilty of putting the odd thing on a credit card when we know it’s not a necessary purchase. The important thing to do is make sure you stay within your means. In other words, live the life you can afford to live and avoid plastic surgery, exotic pets and high maintenance friends if you want to protect your credit record.

William Bancs is a writer who enjoys blogging about his financial experiences and often writes interesting articles to offer advice to help loan companies communicate better with customers.

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One of the best things that people hope for in their lives is to finally own a home of their own. Very few people have the privilege of buying a home and making all the payments at once. Since many people cannot afford this option, people opt to get a mortgage.

The best way to get a mortgage is actually doing so via a mortgage specialist. A mortgage specialist will help you get the right type of mortgage that will fit your needs and assist you to acquire that house you have always wanted.

Who is a Mortgage Specialist?

A mortgage specialist is a person who has specialized in mortgages and can sometimes act as a liaison between you and the lender. The advice that they can give you is very valuable and comes in handy when it comes down to choosing the right type of mortgage to get.

Why should you get advice from a mortgage specialist?

• You can get the information by yourself but chances are that you will not be able to get a very good deal on your own because you do not have sufficient knowledge in the area of mortgages. They are experienced and so they know the mortgage industry in and out so they are able to give you sound advice about mortgages of all shapes and sizes.
• The second reason why you should take the advice of a mortgage specialist is because today you are faced with a lot of information which can easily misguide you when you are choosing your lender.
• The third reason is because you will be getting the information about mortgages for free. You will get the advice for free because the mortgage specialists can only get paid a commission when they have made a client sign a loan from a lender.
• Many people have poor credit scores and so when they apply for a mortgage, they are forced to pay higher interest rates than the people with good credit scores. The mortgage specialist can assist you to get lower rates from a lender than you would if you tried to do it yourself directly to the lender.
• The fourth reason is so that you can have someone do most of the legwork in terms of the negotiating and paperwork that needs to be done. They do the hard work for you so you do not have to go through it. The mortgage specialist will also become the point of contact regarding all the things that are related to your financing.

Other advantages of a mortgage specialist

You will save yourself a lot of time when you get the advice directly from a mortgage specialist. This is because all the time that you would have spent doing research online can be spent on other things related to the mortgage, all because you decided to get accurate information from your mortgage specialist.

If you are ever faced by a situation where you need to refinance your mortgage, the mortgage specialist will give the right advice and direct you in getting your mortgage refinanced the right way.

The amount of convenience that you will find from getting advice from a mortgage specialist is incomparable to the hassle that you would have to go through if you are going to gather the information for yourself from scratch. Another major advantage is that the mortgage specialist is always aware of new deals and changes in the industry so you can benefit from the most current information about mortgages.

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Investment is the buzz word nowadays and with the volatility and the uncertain global situations, it would be a boon if investments would ensure that you get consistent income over life time, especially when you are nearing your retirement years.  This is where financial institutions like Banks try and sell Annuities. Annuities are financial instruments which provide the benefit of interest accrual along with the benefit of deferred tax.

This means that while the investment accrues compound interest over the course of few decades, there is just a one time tax at the time of withdrawal. The biggest benefit is that the interest is accrued until an age of 80 years or even more, perhaps the longest amongst all other forms of investment.

In a usual process, a bank representative sells annuities of the insurance company which has tied up with the bank. Even though annuities are a safe bet, there are many cases where unsatisfied consumers choose to withdraw from the product which has made this perception rife “Don’t Bank on Annuities”.

Are annuities really not that good?

First and foremost, annuities are not bad and offer unbeatable features in some respects vis-à-vis other products. But, almost selling of any other financial product, there are some agents who abuse the product as they are offered high commissions for it.

Bank Annuities

Earlier, banks used to offer annuities to a customer who wanted a little more than a deposit account. Banks take licenses so that some of their employees can sell the products. Upon successful sale, the employee is rewarded either through bank’s incentive program or through commission.

This results in twin benefits to the bank. The bank is not only able to generate additional revenues but also simultaneously able to maintain its relationship with the customer. Earlier, annuities were offered as the default investment option to consumers, but with the changing trends and newer products, banks with insurance licenses in the modern day world can offer a variety of options to customers.

Question the intent

Unless you have an old and trustworthy relation with your bank, you must raise questions if someone is trying to sell you an annuity scheme. For instance, one can ask why annuities are recommended and not other financial products? You can also ask whether the person selling the scheme has the relevant expertise to give you adequate information or whether the person has the license to provide something other than an annuity. This will only help you in having a better understanding of what you are investing into.

When it comes to putting your faith in money matters, having clarity will help you in achieving financial goals.

An honest person will guide you by explaining both the pros and cons as well as any alternative strategy which maybe better than annuity scheme. What must be really emphasized is that a customer must be made to understand everything.

Conclusion

Annuities were one of the first products which featured into the savings cum investment category. But, some unscrupulous elements have started making investors believe not to bank on annuities. If you can do a bit of due diligence and follow some of the above mentioned guidelines, this can prove to be the safest investment when it comes to providing rich returns.

This post is contributed by Adam Anderson. He has been using payday loans as one of the fastest option to get rid of his financial crunches.

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