Welcome to Strategies for Life. This blog is dedicated to sharing ways to improve your life from finances to health, relationships to family, telecommuting to getting rich. The posts range from making money online to starting a home based business, getting out of debt to saving for retirement. Resources on working at home, paying for college tuition.
Did you rack up a big credit card debt in college? You have to remember that it takes a long time to Remove Negative Items from your Credit Report! One of my roommates had $5000 in credit card debt. Of course he also wore polo shirts and designer jeans. I think he also had a car payment. My car cost $700 and lasted me for like 3 years. This video is has some good lessons in it about credit card debt. I like the saying "if you live like a professional in college you will live like a college student after you get out of college." What happens is you have fun paying for things like spring break, dinners out, and material items. You rack up a huge debt and you end up pay for it for a long time. One of my spring break trips consisted of a buddy of mine and I driving to Daytona and Fort Lauderdale and sleeping in the back of our truck. It was great we didn't know any better and we were on SPRING BREAK. The trip was cheap.
Did you know if you have $7000 in credit card debt at 25% interest rate you end up having an interest charge of $1750 per year! That $145 per month just in interest that doesn't even count the principle payments.
A few guidelines to remember and these don't just apply to college students.
Don't pay for things that don't last more than a few years with a credit card if you are unable to payoff the card each month. For example, if you don't have the money for the dinner out. Don't put in on the card.
Don't borrow money long term from a credit card company. Borrow money from a bank not a credit card. The rates are much, much lower.
If you cannot get credit borrow money from your parents or relatives. When I say borrow I really mean it. You have to keep track of what you owe them and have a written agreement on how you are going to pay them back.
Thanks for visiting and feel free to leave a comment or idea. By the way I am running a little survey to get my readers opinion on what items I should write more about so please take the survey, it is over on the left hand side of the page. Also for related articles check out the tags below. You might find something usefull. If you enjoyed this post please Subscribe to Strategies for Life.
How to Negotiate With Your Credit Card Company Are you afraid to call your credit card company and ask for a lower rate? Are you tempted to call one of those debt consolidation outfits on the internet and ask for help? Why not try it yourself first. You see if you run a balance on your credit card the credit card company is making boat loads of money off of you. They don't want you to leave. Why not give them a call and ask for a lower rate. Check out this example below on how to ask for a lower rate.
Thanks for visiting and feel free to leave a comment or idea. By the way I am running a little survey to get my readers opinion on what items I should write more about so please take the survey, it is over on the left hand side of the page. Also for related articles check out the tags below. You might find something usefull. If you enjoyed this post please Subscribe to Strategies for Life.
Avoiding Foreclosure - Don't Lose Your Home If you are unable to make your mortgage payment here are some tips to help you avoid foreclosue.
1. Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house. Remember, banks and mortgage companies do not want to be in the real estate business. They are in the loan business. Most banks now days have special departments setup to help you work through a payment program.
2. Contact your lender as soon as you realize that you have a problem. Again lenders do not want your house. They have options to help borrowers through difficult financial times. Have a list of question ready for your call. Make sure you understand what amount you can and cannot pay at this time.
3. Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court. Even if you only owe $5000 on your $200,000 home they bank still owns it and can foreclose on you. Be responsible and address the problem.
4. Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office. The state of Michigan is even running special seminars on avoiding foreclosure.
5. Understand foreclosure prevention options.Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure/index.cfm.
6. Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.
7. Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.
8. Use your assets. Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
9. Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.10. Don't lose your house to foreclosure recovery scams!If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.
