Monthly Archives: June 2014

Tips to Help You Get Out of Debt Starting Today

Insurmountable piles of debt just keep piling up in your financial life, and you’re tired of having to deal with it. From paying bills on time to declaring bankruptcy, options are available.

Don’t Accumulate Any More Debt

Individuals who are in debt often say they will use their credit cards just this one last time. If you are trying to combat large amounts of money owed, do not spend anymore. The only way you can use credit cards is if you pay off what you spend immediately on that same day. This could help you to earn points, which can then be used to pay off the debt.

Pay More Than The Minimum

Paying the minimum on all of your cards is likely to leave you in debt for years. You should choose to send a larger payment to one of the cards and pay the minimum on the others. Two popular strategies involve starting with the card that has the lowest balance and then moving onto higher balances and beginning with the card that has the highest interest rate and then moving on to the lower interest rates.

Consolidate Your Debt

Moving your balances onto another credit card can be a helpful way to save money on interest. You can also look into a home equity loan. If you have equity built up in your home, then you can usually qualify for a certain amount of money. Take that money to pay off your credit card debt. Then, you can pay back that loan over a longer period of time, and you may end up spending less on interest in the end.

Consider Bankruptcy

The above suggestions work when your debt is manageable even if it takes years to handle. However, some recommend looking into bankruptcy if your bills are completely out of your control. Financial consequences do exist to this plan as your credit score will generally be seriously affected. On the other hand, bankruptcy gives you the chance to wipe the financial slate clean and to have an opportunity to eventually start over again.


The mound of debt that you see before you likely looks stifling and jarring. Sitting down by yourself or with your partner to decide which of these options for debt relief makes the most sense for you can lead you to financial freedom in the near future.

Research You Need To Do When Applying For A Mortgage

One of the largest investments you will make in your life will be on your home, and it will likely be necessary to take out a mortgage to acquire it. The life of a mortgage is a long one that can last decades, so it is highly important that you are able to secure the best mortgage possible, and there is crucial research you need to do before you apply.

Know Your Credit Score

Those with low credit scores are not able to receive the best interest rates, and you should know where you stand before you apply. Performance Mortgage & Credit Services Ltd., an Edmonton mortgage broker, suggests reviewing your credit report with a skilled professional to make sure you understand the intricacies. They will assist you in filing paperwork if errors exist as well as provide tips to increase your score prior to applying.

Understand Your Finances

There are a number of things to consider when you are making the determination of how much you can spend. Along with homeowner’s insurance, you must understand that it is crucial to put money in savings. After all, you will no longer have a landlord to call when things go wrong, so carefully plan your budget including all bills you will have at your new home to determine how much you can spend per month on your mortgage.

Cease Credit Inquiries

Every time you apply for credit, the intended creditor will pull a credit report to determine the risk you may pose. This often causes the credit score to drop. Before applying for a mortgage, cease credit inquiries for at least 90 days. The credit reporting agencies recognize when multiple inquiries are made for the same purpose within a short time frame, so shopping around for the mortgage itself will have less negative impact.

Length of Loan

Know how long you wish to pay on the loan prior to applying. If you only plan on living there for just a few years, for example, a 30 year mortgage would not be your best option. Therefore, a shorter term would be ideal, and this will impact your monthly payment. This should be considered as you plan your finances.

Worth the Time

Buying a home is exciting, and it can be easy to get carried away and make mistakes. Before signing any paperwork, it is important that you take the time to do your research so you can ensure you apply for a mortgage that will work for you.

What Exactly Is an Annuity?

It’s very surprising how few people actually know what the word annuity means, and what’s more interesting is that the majority of people actually do know what one is, they just know it by a different name. In short, an annuity is what most people probably know as a pension. You see, the pension itself is the pot of money that you accumulate over your working life for retirement, but the actual plan that pays you money each month thereafter is often known as an annuity. To put it simply, many people will use their pension to buy an annuity.

It’s important to note that not everyone will buy an annuity. Final-salary pension schemes already incorporate a monthly payment in retirement, and the state pension, which is paid to nearly everyone in the UK (subject to some criteria), is not related to an annuity.

Pros and Cons of Annuities 

It’s not necessarily essential to buy one either. The 2014 budget means that individuals with defined contribution pensions are no longer required to purchase an annuity, and are free to get advice on what might work for them, which might include investments like property. Independent advice from companies like PWMS is essential in this regard.

Still, it is expected that most people will carry on buying annuities because, crucially, they have rates of interest to beat inflation. Shopping around to find the best offers is one of the most important considerations before retirement.

Not everyone will get the same product either. Those with shorter life expectancies will receive larger payments each month, because the provider will gamble on the fact that they won’t have to make as many monthly payments. This point is critical to remember – annuity providers do want to make a profit, so they’ll compete to offer the best deals. No two companies are equal in this respect.

Understanding Pensions

It’s very important that you understand your own pension scheme, no matter what stage of life you’re at, but if you’re starting to think about whether or not it’s time to retire, then it’s definitely worth doing research into annuities. They can be a good option if you’re not prepared for the hassle of investment, and don’t want to manage a single lump sum of money. It’s essential that you get yourself clued up beforehand; good advice is priceless, and with annuity rates ranging from terrible to fantastic, it’s really worth knowing what you are doing before you make the commitment.

How To Manage Debt Without Giving Up

It is easy to accumulate debt, but it can be challenging to pay your balances off. Debt can be so easy to accumulate that outstanding balances can easily get out of hand. When your monthly payments become burdensome, it may seem as though you make little dent in your debt reduction efforts. However, before you give up on debt management and reduction, there are a few options to consider.

Reduce Monthly Expenses
As a first step, review your budget to determine if you have any room to reduce monthly expenses. Everything from canceling cable service and turning off your home phone to carpooling to work for a few months may provide you with the extra cash that you need to reduce debt balances. Keep in mind that as you reduce principal balances on credit cards, your minimum required monthly payments will generally decrease. Ultimately, finding a way to pay a little extra money toward principal now can ease the burden on your budget in the future.

Speak With a Financial Expert
If you cannot find a way to reduce monthly expenses on your own, you may seek financial assistance. By speaking with a financial counselor, a debt counselor or a personal accountant, you may learn budgeting tips that can benefit you. It can be difficult to turn to a professional for assistance, but their insight may benefit you considerably.

Consolidate Debt
Another option to consider is to consolidate your debts. This may be completed by refinancing your home or car or by applying for a personal loan. When you consolidate unsecured debt on a revolving term into secured debt on a fixed term, you may qualify for a lower interest. In addition, you may structure the debt on a fixed payment plan with defined pay off debt, and your payments may be reduced.

Consider a Consumer Proposal
If these options are not successful for you, you can consider negotiating debt settlement with a consumer proposal in Mississagua. With a consumer proposal, from a company like Paddon & Yorke Inc, you are asking your creditors to forgive a portion of your debt, and they may also agree to other modifications in your financing terms. For example, they may lower your interest rate, and this may result in reduced payments.

Managing and reducing debt can be challenging, but it is not impossible. There are several steps that you can take to improve your financial standing with debt management techniques. Consider how each of these options can benefit you, and implement them in your life today.