30 Jul
2010

Stigmatized homes are any homes that have public perception. They may be homes which were once affected by criminal activity, a suicide, a murder, an oil spill, or any other activity that is considered unfavorable. Long after the clean up of the home is complete, however, the stigma linked to a home lingers.

Some buyers consider stigmatized homes a bargain. They may not care what previous owners did in a home and since stigmatized homes often sell for below market value, savvy buyers sometimes want to buy. In many cases, it is much easier to get a mortgage on a home that is selling below market value. It is easier to enjoy instant equity in a home selling below market value. And, of course, many buyers are not superstitious and do not care that a home has a “history.”

On the other hand, if a buyer becomes a seller, stigmatized homes can be harder to sell –  even years after an event has taken place. Such homes usually take longer to sell and sell for a lower price. Some sellers with stigmatized homes even find themselves facing after-the-fact lawsuits if they failed to disclose some of the flaws of a home – and this can include disclosing a home’s history.

30 Jul
2010

There are some red flag signs that could indicate you need to take your finances to the experts:

1) You’re too afraid to look your finances in the face. If you don’t know your credit score or are afraid to open your bills, you may be in denial. You may be so far in debt that you cannot face the consequences. A debt counseling agency may be able to help you face facts and get on track.

2) You cannot pay your bills and do not know how to pay your bills. If you cannot organize your finances or do not know how you will pay your next bills, a credit repair specialist or credit counselor may be able to help you create a budget and plan your finances.

3) You are facing collection calls and cannot make the accounts current. If you are far in debt and are facing collection calls, credit repair companies may be able to help you stop the calls and create a plan for digging out.

30 Jul
2010

It happens to everyone some time: you feel as though you are making the right decisions, but you just can’t set aside enough money for savings or for paying down your loans. If you feel like your finances are hopeless, here’s what to do:

1) Take a look at your finances. Are they really that bad? Do you have some savings? How much do you earn? What are your assets? What hope is there in your career? What are you worried about? You may find that your finances are in better shape than you thought. Even if they are not, at least you know where you are starting from.

2) Consider what resources you have to change things around. Work with pen and paper, creating a list of all the reasons why your situation is not as hopeless as you might think. List all the good qualities and skills that might translate to a better income later on or think of all the untapped ideas that might make you cash. Then, make a list of everything in your life you are grateful for. If you still feel hopeless, volunteer an afternoon at a soup kitchen. Often, feeling financially hopeless is about attitude. As long as you see that things are not so bad and as long as you see that things can change, you will not feel so hopeless and you will be able to take steps to improve your financial situation.

3) Focus on one small goal at a time. Rather than trying to launch your career, save towards retirement, pay down your student loans, and buy your first home, try to take things one step at a time. Focus on one goal – such as improving your credit score or paying down your payday loans. Once that goal is accomplished, move on to the second goal.

29 Jul
2010

If you want to get ahead financially, pay down your personal loans, and put money aside, you need to focus on bringing in more money as well as focus on savings. Savings alone will not suffice, because:

1) If you focus on savings only, you get into a scarcity mindset. When you focus on tightening your belt, you usually feel like you are depriving yourself. This may work for a bit, but eventually you will want to indulge yourself with a new gadget or purchase. Plus, if you are only focusing on saving, you can only save so much, so there is a financial glass ceiling that you will hit each time. When you save and bring in more money by increasing your income, you feel more abundant and you focus on having more money, not spending less. This subtle difference can make you feel more positive about money and about the positive changes you are making to your finances.

2) If you combine savings with more cash, you get explosive results. Savings alone will help, but when you combine more income with savings, you get enough money to pay down your personal loans and put towards savings.

3) It feels great to bring in more cash. When you get creative about bringing in more money, you feel more in control of your finances and more hopeful about your future.

29 Jul
2010

It’s a financial truth that everyone knows at heart: to get ahead financially, you need to spend less than you earn. Spending less than you earn allows you to stay out of consumer debt and allows you to stash cash away in a buffer account. If you’re not living below your income level, you are likely living paycheck to paycheck or even relying on payday advances or credit cards to see you through to your next payday. The stress and money wasted is just not worth it.

If you want to spend less than you earn, the first step is to look around your neighborhood. Are you surrounded by people in a higher income bracket? If so, you are probably paying more than you can afford for housing (your largest expense!). Look for an affordable home and work to pay off your mortgage (if you own your home) as quickly as possible. The equity you will build will give you a nice security blanket.

Next, look at your clothes, transportation, and habits. Are you trying to impress and buying things that you have to charge or finance slowly? Maybe it’s time to rethink your purchases. You are not your possessions. By choosing more affordable options, you’re not impressing anyone less – and you’re making financial choices that will protect you in the long run.

29 Jul
2010

Most stores offer them – store credit cards that promise great rates, loyalty rewards, and all sorts of perks. Some customers have wallets full of credit cards from their favorite stores. While store cards can be handy and attractive, though, they can also get customers into trouble. Customers with multiple store cards are more likely to carry large debt loads – and those perks may not be as attractive once you read the fine print.

Most store cards do not offer better terms than traditional credit cards. Many offer great introductory programs, rates, and rewards, but when you read the fine print you can see that the long-term rates of these cards are far from great. Also, unlike traditional cards, most store cards are designed to be used in one store. When you travel or want to shop in a different store, you’re stuck – unless you get even more cards. Most experts agree that one credit card is more than enough for just about anyone. Any more than that, and you risk getting stuck with too much consumer debt.

28 Jul
2010

This is the time of year when you need to focus on paying off and paying down your credit card. There are several reasons why now is the right time:

1) The Holidays in the fall. The fall is the start of holidays. From Halloween costumes to Thanksgiving family get-togethers, fall is filled with opportunities to spend. Save now so that you don’t get even further into debt later.

2) Back to school. Back to school shopping is just around the corner and now is a good time to put a little something away for that spending. Also, when back to school season does get here, it will be harder to put more cash towards your credit card, so pay down that debt now.

3) Cheap summer living. Summer means free public events, barbeques, casual get togethers. It even means less expensive clothes – you can live in t-shirts and flip-flops that cost a few dollars and look hip. Fresh produce is inexpensive at farmer’s market stalls. This is the ideal season to tighten your belt a little bit without even feeling the pinch. What you save can go towards your debts, but don’t forget to stash a little away in an emergency fund, too.

28 Jul
2010

The longer you stay in debt (especially with high-interest debt such as credit cards, unsecured loans, and payday advances), the more you will pay in interest costs. When you decide to get aggressive about paying down your debt, therefore, you will want to reduce debt quickly. There are several ways to do this:

1) Sell some things. Do you really need a second car, that patio set, or those bicycles you never use? Do a quick inventory of your life and home and get rid of anything you don’t use or don’t love. You’ll create lots of space and generate money towards your debts.

2) Find ways to make some additional cash. Maybe you can take odd jobs, rent out a parking spot, or upload your photos to a photo site where people can pay for them. Get creative and look around – there are plenty of ways to bring in more cash every month that can go towards your bills.

3) Stop spending. The more you spend, the longer it will take you to pay down your debts. Tighten your belt and vow to only buy what really is needed until your debts are under control.

28 Jul
2010

If you look at the high interest rates bad credit credit cards charge, you may think it’s better to have no card at all. However, this is not the case. Despite the high interest charges, there may be reasons why a bad credit credit card makes sense:

1) You travel a lot. Travel is much simpler with a credit card than without one, because you can charge your hotel room, flight, and other features. Remember: you cannot easily book a hotel room or rent a car today without a credit card.

2) It’s a simple way to boost your credit rating. Having a low limit bad credit credit card can be an easy way to improve your credit rating. If you pay the card on time each month, you will increase your credit rating. If you keep the limit on your card small, you’ll never rack up the charges that can mean huge interest costs.

3) It’s a safety blanket. In some cases, bad credit credit cards are still less expensive than cash advances. They can also be handy in an emergency – such as a car breakdown far from home. Plus, bad credit credit cards are still safer than carrying cash – the good cards come with safety features that protect you when you make purchases.

27 Jul
2010

At this time of year, many families are packing away a son or daughter for college. You don’t want to spend your whole student loan on moving costs. College moving costs can easily add up to the hundreds of dollars, but there are ways to save money:

1) Check out used dorm room items. Everything needed for the dorm – such as desks, chairs, mini fridges – can often be found at great prices if you look for used items.

2) Move less. The less you move, the less it costs, since most moving companies charge by the pound. Find out exactly what your dorm or apartment offers so that you know what you really need.

3) Consider buying most of what you need locally. If you need furniture or other large items, it is usually less expensive to buy these items used locally than arrange to have them shipped over long distances.

4) Move early. Moving in earlier (before all the students arrive) allows you to get cheaper moving rates (since movers are not overwhelmed) and allows you to buy any used furniture items you need in the area at yard sales at cheap prices (and less competition from other students).

5) Do it yourself. Moving yourself (using a rented truck or your own car) is always less expensive than hiring movers. If you need movers (because you are traveling far away), it is easier to move with a friend. Having at least two people use the same movers means a discount.