6 Tips to Clear Your Debt Before You Retire

retirement (Photo credit: 401(K) 2013)

Many people have big plans in mind for their retirement. In the UK there are thousands of over 50’s in debt, and many of them will retire with debts. Debt can be a hard habit to break in our consumer culture, even for those over 50. It’s important to deal with your debt before you retire and have a fixed income. You’ll need to create a retirement plan to clear your debts before you retire. If you’re in debt and would like to clear those debts before you retire the following steps could help you get control of your debts: 

1. Don’t pile on the debt.

If you have debts, don’t start piling it on with more debts. It’s simple advice; if you have debt you should avoid getting deeper into debt. Avoid taking out any more loans, especially incising payday loans. Even a very small loan can start a vicious cycle of debt that could hinder your chances of clearing your debt. You should also avoid buying things on credit cards, that’s a sure way to build your debts. 

2. Calculate your income

Add up your regular monthly bills. So add up your monthly expenses, this includes food, gas, the cost of running a car and other necessities. Then subtract this amount you earn to calculate how much money you have left to cover and payback your debts. You can then find out how long it will take to clear your debts. 

3. Pay the lenders

Make sure you pay all your creditors in full and on time. It’s always best to avoid any extra unnecessary debts due to late fees from creditors. 

4. Consider consolidation

If you have many multiple debts you should consider a consolidation loan. Even if you have a bad credit score you could get a bad credit consolidation loan to pay off all your debts and put them into on monthly payment. Having just one monthly repayment makes paying back your debts much easier and you should be able to get lower rates. 

5. Save Money

You can pay off your debt quickly if you stop spending money on things that you don’t necessarily need. If you save money, you could put that extra money toward paying back your debt before you retire. Sure it will be extremely tough to cut your spending, but you’ll be better off in the long run and at least then you could retire debt free.

6. Use extra money wisely

When you get extra money, you should use it to clear your debts. So if you have an unexpected amount of money, like a bonus at work or some kind of inheritance, use it wisely. Be clever and avoid the common mistake of using the extra money to treat yourself; use the money to pay off your debts.

Get started today and hopefully these six tips help you become stress free and clear of debts before you finally retire.

How NOT to Use Your Credit Card

Credit Card (Photo credit: 401(K) 2013)

Credit card flyers that come in the mail have a specific purpose. They are aimed to secure credit worthy individuals to apply for their product, a credit card. From each transaction the consumer completes, the card company is paid a fee by the provider. 

But, credit cards have other ways to make money and the biggest revenue stream is you, the card user. There are a number of ways that credit card companies use to make you a productive profit center. You must remember that credit cards are not issued by generous companies looking to help you out. Credit cards are issued to reap profits.

The agreement between a credit card provider and a credit card user is a contract. You will be encouraged to read the agreement or contract thoroughly. The card issuer does not care if you do. In many cases, it is in the issuer’s best interest that you not read the details accompanying your credit line.

In truth, once you sign the contract, you are indebted. That means that you have to use the card to keep the credit line open. That is fine as long as you really understand what the credit card issuer expects or demands of you.

According to Yahoo Finance, there are numerous pitfalls that credit card companies expect will ensnare users. Once you have read the credit provider’s terms of use or contract, you will be required to sign the document before the card can be issued. Don’t be surprised if the card’s contract looks cumbersome and difficult to read, much less comprehend. This is a symptom if the industry.

Below are pointers that Yahoo Finance and other consumer protection agencies suggest you avoid.

Protect Your Card – The convenience of a credit card is undeniable. They are easy to use and unburden you from having to carry cash. However, physically losing a credit card can cause a loss of time and many headaches beyond belief. Keep you card in a safe place and always know where it is. If you should lose the card, immediately call the provider, explain your dilemma and suspend or terminate the card.

Non-Guaranteed Rates – Don’t be fooled by 0 percent interest rates or seductively low interest rates. While that possibility may have lured you to the provider, realize that those rates are for a select group of users with outstanding credit. If you do get a good rate, there will be specific dates or events that can trigger the rate increase and penalties. Penalties and late fees are where credit card companies reap the biggest profits.

Preferential Cards – Credit card lenders have designed alluring Gold, Silver and Platinum themes that are for “elite” users. Don’t be swayed by the flattering offer. A credit card is a credit card and all cards should be evaluated on their merits; including Rewards, Interest Rates and other terms.

The Sign-up Promotion – Without doubt, you will receive many special credit card promotions this year. Watch out for offers to transfer credit card balances to another provider. These offers either offer a high transfer fee or an interest rate that will keep raising the bar. If the offer is too good, it probably is just that. Read the fine print.

Not Quite Pre-Approved – Advertisements that arrive with the “pre-approved” label are misleading. You can assume that pre-approved means that the provider has your name and address and might consider issuing you credit. You will go through the same application process as every other provider will require.

Identify Rewards – Rewards are a dicey subject. Credit card companies often make misleading promises regarding Rewards for Usage incentives. Be sure that you understand all the terms of the Rewards offering before you apply for the card.

Credit cards are a way of life. If you understand your obligations to the provider, you are in a good place. The convenience of a credit card is undeniable. If you can pay your full balance before the due date, a credit card can be your best friend.

Author Bio:

This article was contributed to 50 Plus Finance by Mark Scott. He writes for SwiftMoney which provides payday loans UK and he loves sharing his insights on various online publications. You can find more details about Swiftmoney on Google+

Useful Guidelines to Increase Your Credit Score and Get Rid of Debts Faster

Factors contributing to someone's credit score, for Credit score (United States). (Photo credit: Wikipedia)

Many of the folks don’t really understand that there are several practical credit repair guidelines that could aid them to precisely nullify the damage, and improve their credit score, when they get a very low credit score due to some genuine reason. Debt collectors really don’t fancy you to comprehend these secret tips for the reason that they would probably get less work, if everyone starts recognizing the importance of these guidelines, and learns to execute the same to increase the credit score.However, you do get several privileges, and at the same time debt collectors do have some standard rules, and regulations that they should follow sincerely all the time. 

Ensuring No Errors in Your Credit Report

The first, and the foremost thing that you should do to increase your credit score is to check the negative points that are associated with your personal credit report are deadly accurate, or not. Every now and then, it has been observed that a simple, negligible error present on the credit report of a person is actually what that leads to a significant dip in the credit rating of that particular person.

Get a Copy of Your Credit Report from all Agencies

Demand all the 3 vital credit agencies to dispatch a replica of your standard credit report, and then carefully look at all the particulars that are entered in your report to make sure that there are no errors whatsoever. In case, you discover any error either small or big, immediately bring that to your credit bureau attention by writing about the discovered mistake to them, so that they can inspect it, and finally solve the mistake.

Getting the Erroneous Records Fixed Quickly

No one really wish erroneous observations to be the major reason behind their low credit rating; hence, this is the foremost thing that you are supposed to completely avoid at all costs. Whenever you are conversing with a credit agency, you should keep up all your details, and documents filed properly, and the best idea is to mail an official letter to them via any certified email service, and save a copy of the mail sent for your own records.

Be Assertive If Your Requests Are Not Entertained

The credit agency should inspect all factual errors, and come out with a reply within maximum thirty-days, but at times your particular case may get misplaced or it is simply aren’t ahead of everything, hence it is always recommended to uphold your own set of records for future reference. Also remember that you’re not an assistant functioning for the credit agency, this data significantly influences several important aspects of your everyday life, so your must be very assertive when you are dealing with such agencies.

You must still be precisely polite, and professional, but make sure not to converse with them as if you are requesting them to do a favor for you, since it is more significant than that. You just want a small or a potential error fixed in your credit report, and at time you may have to be very aggressive to compel the credit bureau representatives to realize it. As per law, the credit agency will have maximum of 45-days to reply to your query, but in most cases it has taken considerably more time than that stipulated time limit. So, don’t be shy to threaten them to take legal action after the stipulated duration of 45 days.

The Bottom-Line

Down the line at some stage in the near future, you may plan to get a new car or buy property, and for that you may be required to apply for a financial loan; if you have a really bad credit rating, you may even fail to get the loan that you are looking for. So, it is always advisable to follow all the above discussed secret guidelines to have a healthy credit score.

Author Bio

This guest post is written by Ann Boulette, who has been using these simply tips to take care of her credit repair, and she has managed to boost her score tremendously over past 2 years.

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More Ways to Lower Your Car Insurance Costs

A car crash on Jagtvej in Copenhagen, Denmark. (Photo credit: Wikipedia)

Owning and maintaining a luxury car is not a joke these days. There are so many hidden costs that you don’t take into account when you decide to buy a car. Rising gas prices, regular servicing and maintenance and insurance premiums can leave you with a hole in your pocket. 

However, car insurance is one aspect which, if carefully thought out and planned, can prove economical and save a lot of your money. Most of us have a very sketchy idea about car insurance policies, and get intimidated by the technical jargon it involves. Here are a few simple tips on how to lower car insurance costs.

For starters, it’s important to shop smart. Compare auto insurance quotes from at least three to four trusted companies. You could also log onto insurance comparison sites to evaluate which company best suits your needs of premiums, cover, services and pricing. Premiums can vary widely based on the make, model and year of a vehicle.

Make sure you provide the insurance company with complete information, especially that which could work in your favor and lower your premium, such as your age, your profession, safety features on the car, your marital status etc.

It’s also a good idea to group all of your insurance policies – auto, home/renters, health, etc. – at one insurance company, in order to earn a multi-line discount. Insurance experts say you could save at least 10% of your total premium this way.

It is believed that raising your deductible (the amount you pay out of your pocket in case of damages before the insurance company kicks in) can significantly lower premium costs. Decide how much you can afford to spend out of pocket, and then adjust your deductible accordingly. This works well for safe drivers with good past records and people who don’t drive their car very frequently.

Safe drivers are rewarded with a better insurance premium. Avoid speeding and stay out of accidents, and you'll save 5% or more on your premium. The ‘good driver’ record really looks great on your report card and subsequently on your insurance premium. Most companies will further reduce your rate every time you go three years without any traffic violation. Also make sure you pay your bills on time and improve your credit score.

Most people are of the opinion that monthly bills are a good idea when it comes to their car insurance. However, experts say that this is just a tactic by the companies to generate income and cash flow on a regular basis. You will end up paying for the convenience with add-on fees without even realizing it. To avoid these extra charges, request to be billed every 6 months or yearly instead. If a large bill in one go makes you worry, then set up your own monthly bill pay and deposit that amount into your savings account each month. When the bill comes due, your money will have accumulated safely.

Your auto insurance probably comes packaged with a lot of extra stuff that they just throw in and most people don’t bother to read. Sometimes there are things in it that you don't need--roadside assistance and car rental coverage being two possibilities, depending on your lifestyle and situation. Go over your insurance policy line-by-line, and ask about removing any coverage that you don't need.

If your car is old and you have paid the loans for it, you could consider eliminating your collision coverage. This is the coverage that pays for any damage that you cause to your own vehicle, and it makes up a big portion of your insurance cost.

Author Bio: 

John works for an insurance company and also contributes to a number of websites in his free time. He enjoys writing about comparing auto insurance quotes, life insurance, travel and health insurance. He is a spirited traveler, a nature lover and an adventure enthusiast who enjoys the thrill of extreme adventure sports such as skydiving, hang gliding, scuba diving and river rafting. 

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Reliable Sources of Income after Retirement

Retirement (Photo credit: Tax Credits)

Time flies and before you know it you have reached middle age and soon after – retirement. This is inevitable and therefore being prepared for it is a must. An important consideration after retirement is to have reliable sources of income to sustain whatever state of health you are in and lifestyle you intend to maintain. The following are some options:

• Savings should be highly prioritized during your working years. Treat your savings funds like money already spent so you won’t get tempted in using it for unnecessary spending. This is the most reliable source of retirement income as you can invest it in a high yield money placement where you draw only the interest earned and keep the principal to generate more income from interests gained. Of course you need to be extra careful in choosing the bank or financial institution where you keep your most valued and hard earned savings. 
• Social Security to date is the major source of income for a greater number of retirees. Relying on this mainly may not provide you a very substantial amount to finance your daily subsistence but it is reliable and steady. Augmenting it with other sources is highly recommended. 
• Pension Annuities are precise instruments that help you transform value of pension into periodic source of income. It is essential to be careful in purchasing a pension annuity as it is a long term contract and can be your reliable source of income after retirement. Choose a reputable and stable financial institution that offers this instrument. You have options to obtain it monthly, quarterly, semi annually or annually. You can also choose to obtain income which remains the same without any fluctuation or one which increases every year through set percentage or inflation. 

Ways to Augment Retirement Income

• Personal pension schemes matched by employers like IRAs and 401k in America can help when you are a disciplined spender but unfortunately for most retirees they tend to overdraw from these sources of retirement income - that they readily deplete it in a short period of time. When real need is there, chances are the money is all gone and they go broke. It is suggested that you treat this source as a monthly paycheck just like when you were working. Draw a monthly amount that will make your reliable source of income last as long as you live along with your partner in life. 
• Rental income from real estate investments can also become your reliable source of retirement income. As long as your property is leased, you have a regular income. It is therefore important to have savings and investments while you are working as this can help sustain you throughout your retirement years. 
• Royalties can also give you some retirement income. This is from patents, books and record you have registered in your name during your working years. 
• Investing in stocks while you are working can also provide you a reliable source of income when you retire. This entails savings during your productive years and wise spending as well. Majority of senior investors though are not so happy with the yield they derive from this nowadays but still it can augment your spending fund when you retire. Get advises from reputable consultants on this field and always be updated on how your stocks are currently doing. 

Circumstantial Retirement Income

• Inheritance for some lucky persons with parents or relatives who are quite well off can help fund their retirement. Of course this should not be relied on 100% as depending on circumstances, you can be written off their will or probably they can outlive you. Think of this only as a surprise if and when it happens. 
• Home equity for some is an inevitable source to fund their retirement. To most, their home is their biggest asset though depending on your needs, it will make you not leave anything to your children as inheritance. 
• Part time work for some is an option especially if they are not careful with their finances. At the time when you are supposed to take it easy in life, you will have to take on part time jobs to finance your retirement. On a positive note, this will make you more active and feel useful that is a motivation to do well in whatever responsibilities you take on for this purpose. 

Being financially ready for retirement can make you live longer. You save yourself from unnecessary stress and make you grow old gracefully. As we all probably know that stress is the number one cause of dreaded diseases - so it is strongly encouraged to save up during your productive years for a stress-free retirement years.

About the Author:

Mackenzie Salis is a freelance writer, a professional blogger and an enthusiast advocating finance awareness via online exposures for 3 years. She is the author of the site: Credit Counseling that can provide all valuable information about loans and warn you against fraud online.

Finding a Mortgage Refinance Advisor

Finance (Photo credit: Tax Credits)

A mortgage refinance advisor is known by several names. In some places, the said profession is also called as mortgage broker or mortgage loan officer. When finding a mortgage refinance advisor, you can use the internet to make the search much easier.

The rates charged by an advisor may vary greatly, so it is highly advised that you shop around. Interest fees and closing costs can affect the price that you have to pay for professional services. However, if you’re dealing with head injury claims, or perhaps you want to purchase a new car and repair some areas of your house, you will need all the money you can get. The best refinance advisor can help you get through and solve your problems right away.

Steps to Follow

When finding a mortgage refinance advisor, there are important considerations. You can follow the steps below to find the best in the industry:

• Use the internet to locate a local refinance advisor that lives within driving distance. By doing so, you can easily schedule for an appointment and meet with the mortgage refinance advisor.
• You have to pick one whom you’re comfortable with. You can create a list of recommendations and references. From there, you can check their credentials. You can even conduct a background check since that is very easy these days.
• Make comparisons especially in terms of fees and charges. The lowest or highest rates do not necessarily mean that you’ve found the best deal. You have to make sure that you’re getting the best services at the most reasonable rate.
• Make sure that you settle all your financial obligations on time to avoid problems. Refinancing should only be considered when there is a dire need for it.

As long as you follow these steps you can never go wrong. You will find a professional you can trust and one that will be able to help you obtain refinancing.

It is best to choose at least four refinance advisors. They will assess your current situation and determine the best solution to your financial problems. Whether you have good or average credit, you can easily obtain refinancing if you have a knowledgeable advisor to help you out.

Some things are better left to professionals especially if it concerns finances. Many people are going through rough times these days. Refinancing with cash is possible or you can also refinance the home or property at a lower rate. Either way, you can address your financial issues.

If this is your first time to consider refinancing and you don’t know the process, a mortgage refinance advisor is all you need to back up your efforts in making the most out of your financial situation.

Why don’t you ask for references from friends or colleagues that may have used the services of a mortgage refinance advisor in the past? These people can help you out. If you are unable to get references, you can always shop around online. Don’t pick the first professional that you find, be sure to look around and compare.

Author Bio:  Barlow Robbins is one of the larger law firms in the South East region with a thriving portfolio of private and commercial clients. We provide a full range of legal services to clients ranging from Commercial Property Contracts, Corporate Tax, Dispute resolution, Insolvency, Mergers & Acquisitions, Notary Public, Family Law, Head injury claim and Personal Injury & Clinical Negligence.

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