From the monthly archives:

August 2009

For a long time, it seemed like banks were handing out mortgages on silver platters. Even those with not-so-good credit could find a lender who would work with them. This seemed like a dream come true for those who wanted to become homeowners. But when the housing market went south, lenders began to be more cautious.

Today’s housing market is a far cry from what it was just a couple of years ago. Fewer lenders are willing to serve those who do not have excellent credit scores. Those who are fortunate enough to get a mortgage without perfect credit have to contend with higher interest rates.

But looking for a great mortgage deal is not a lost cause. For those with good credit, there has hardly been a better time to get a mortgage. Interest rates are low, and lenders are willing to compete for the business of well-qualified borrowers. Here are five things you can do to get a good deal on your mortgage.

1. Carefully examine your credit report. If there are errors, report them to the credit bureaus. If your credit is less than perfect, start working on building it up right away. Catch up on delinquent accounts, and make all payments on time for a few months. These measures can make a big difference in your interest rate.

2. Compare rates online. You can find rates for many lenders on the Internet, and some websites allow you to compare rates and terms side by side. Even if you don’t like the idea of borrowing from an online lender, you can find rates for banks with branches in your area. At the very least, this will give you an idea of what to expect.

3. Visit some lenders in person. Most offer several different programs, so it pays to sit down and discuss your needs and finances with them. Determine the best deal a lender can offer you, and get it in writing. Then visit more lenders and compare results.

4. Don’t forget the local banks. Smaller banks tend to minimize their losses by only working with highly qualified borrowers. This means that they can afford to offer lower interest rates.

5. Remember that there’s more to a great mortgage deal than a low interest rate. Make sure you understand the terms of the loan, especially when it comes to other costs such as points, closing costs and private mortgage insurance (PMI). If these costs are high, they could negate the effects of that stellar interest rate.

Getting a good deal on a mortgage can be a time-consuming task. But the rewards may be measured in thousands of dollars. In today’s housing market, it literally pays to shop around.

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Getting into debt is a very easy thing to do. But getting out of debt is much more difficult. When you let debt get out of control, it can take many years, and often many thousands of dollars, to get it all paid off.

But if you have a plan, getting out of debt doesn’t have to be too painful. Here are ten things you can do to pay off those bills quickly.

1. Sell your unwanted stuff. Most of us have a lot of things just sitting around collecting dust. Many of these items are worth at least a little bit of money, and some may be worth quite a bit. Put them in the paper, have a yard sale or sell them on eBay. Then put every penny that you make toward paying off your debt. This won’t bring you ongoing funds to pay off your debt with, but it will help you put a dent in it and avoid some interest.

2. Start a side business. Even those who work full time can usually find the time to participate in some money-making activities after work or on the weekends. Do some babysitting, detail cars or make crafts and sell them. These activities can generate money to put toward your debt until it is paid in full without the pressures of working a second job.

3. Make money online. You can do so in a number of ways, including taking surveys, blogging or providing services. Use the money you make to pay off your debts.

4. Rework your budget. We can all find room for improvement. Even small items such as that daily cup of coffee on the way to work can make an impact. Cut the fat and put the money you save toward your debts.

5. Sell your car. If your car payment is a burden, selling it and buying something more affordable will leave more money in the budget (and more to pay off other debts).

6. Snowball it. This method involves paying as much as possible toward your largest debt until it’s paid off, and in the meantime making only minimum payments on everything else. When the first debt is paid in full, apply the amount you were paying on it to the next smallest debt in addition to its minimum payment. Keep doing this until your debts are all paid.

7. Consolidate your debts. If you have a lot of high-interest debt, consider transferring the balance to a low- or no-interest credit card. This will give you one monthly payment instead of many and lower your minimum payment and interest. But you still need to pay as much as possible each month to achieve maximum savings.

8. Pay bills weekly or biweekly. If you get paid every week, send in ¼ of the payment each week. If you get paid every other week, send ½ each time you get paid. This could save you interest, and you’ll end up making an extra monthly payment each year.

9. Negotiate with your creditors. If you’re having trouble making your payments, some will offer lower interest rates and reduced minimums.

10. Talk to a credit counselor. They will negotiate with your creditors on your behalf, and can often get deals that creditors won’t offer directly to debtors. When it’s all said and done, you can make one monthly payment to the credit counseling agency and they will forward payment to your creditors. With their plan, you could be debt free in a fraction of the time it would otherwise take.

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How to Set Up a Realistic Financial Plan for Teenagers

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If you have a teenager, you know that they’re not exactly the most frugal creatures on the planet. Most have not had to work for their money while growing up, so they may not appreciate money as much as adults who know how hard it can be to come by. And with the peer pressure [...]

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Advantages of Electronic Bill Presentment and Payment (EBPP)

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Selling Stuff on eBay: Does It Really Save Money?

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There was a time when people had to do some legwork to sell their unwanted items. They could have a garage sale, which requires a great deal of planning and setting up. They could put it in the paper, which was pretty easy but cost money and required the arrangement of times for customers to [...]

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How Much Down Payment Should I Have?

August 24, 2009

For many people, owning a home is something that they hope to achieve one day. Being a homeowner gives one a sense of accomplishment, and it offers more freedom than renting. But there are certain expenses that can stand in the way of owning one’s home. One of the biggest is the down payment.
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Credit Card Debts Dragging You Down?

August 23, 2009

According to the American Banker’s Association, the average American family carries $8,000 in credit card debt. While a lot of companies claim they can magically make this debt disappear, there’s no substitute for formulating a realistic plan to get it paid off. High interest rates and late fees can complicate matters, so it’s [...]

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Why Not Rent Something Out to Pay For It?

August 23, 2009

Many of us have wanted to purchase something, but couldn’t bring ourselves to justify paying the high-ticket price for it. One thing you could consider is trying to rent it out. By renting your dirt bike, four-wheeler, flatbed, camper, or even your cottage or a spare room in your home, you can pay off your [...]

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