Tuesday, November 6, 2018

Credit Score in the Dumps? How to Uncover it’s True Potential



A less than ideal credit score can limit your ability to make larger purchases. There are things that you can do now that will help to improve your credit rating. Here are some of the steps that you’ll want to take in order to uncover the true potential of your credit score.

Schedule Your Payments


Late payments work against your credit score. One solution that will help you to avoid having late payments is to schedule your payments. There are online tools that will help you to achieve this goal. 


The caution with automatic payments is that you’ll need to ensure that you have enough money in your account to cover your expenses. Missed or delinquent payments are just as detrimental to your credit score as late payments.

Stop Revolving Debt


You may have heard the term revolving debt used and wondered what it meant in relation to your situation. This is more commonly seen with the type of debt that you collect by using credit cards. The balance that you carry on these cards adds to your debt load.




If you have too much debt, you’re considered higher risk and this can lower your credit score. Paying off your high interest loans and limiting your use of credit will help to get your credit score back on track.

Learn the Tricks


As with anything, there are tricks that you can learn that will help to improve your credit score. Work with a fast credit repair company so that you can learn these tricks a little faster. 


For example, overextending yourself can lead to you having trouble paying your debt down. You may find yourself making minimum payments and accumulating more debt in order to eliminate your other debts. Over time, this can cause your credit score to drop.

Apply Judiciously


Every time that you apply for credit, it counts against your credit score. This may not seem like such a big deal until you want to apply for something that really matters. Applying for credit judiciously will help you to get the things that you really want. 


It will also serve to improve your credit score if you can show that you can handle your financial situation without having to take out more credit to get it done.

A good credit rating can quickly be lost and take a lot of time to rebuild. Consider these tips if you want to get your credit score back in shape.


Friday, November 2, 2018

Can Your Money Make Money? How to Save for Retirement through Investing



If you have started planning for retirement, you may have already estimated your financial need for the future. This estimate may be based on a projected budget in retirement as well as the use of online retirement calculators. 

If you are floored by the huge amount of cash that you need to save between now and your desired retirement date, you are in good company. The good news is that your money can actually make money for you when you invest it wisely. These are some of ways that your cash can multiply over the years.

Interest


Today’s savings accounts have fairly low interest rates. In some cases, they barely keep pace with the rate of inflation. However, when you stash at least some of your money in a savings account, your bank will make regular interest deposits in your account. 

You will notice that your account balance grows slowly over time as a result even if you do not contribute any additional money to it. Because the rate of return on a savings account is low, however, you should also consider putting some of your money in these other investment vehicles.

CDs


The rate of return on CDs varies by financial institution, the term length and the amount of money that you invest. You will generally enjoy a higher return when you buy a CD with a longer term and a larger investment. 




However, if you cash out the CD prematurely, you may lose money. Therefore, only buy CDs with money that you know that you will not need until the end of the term.

Dividend Stocks


While stock prices fluctuate dramatically, the stock market in general has trended upward over the decades. With all stocks, you profit when you sell them at a higher price than what you purchased them for. This is only one way to profit from stocks. Some companies may a regular dividend on their stock. 

A quarterly dividend is most common, but this varies. You can request dividend reinvestment, which means that you will buy additional shares of the same stock with the dividend that you receive. You can also receive the dividend as cash in your investment account.

Real Estate Investments


Real estate investments can also be lucrative, and rental property is among the most common way to profit from real estate. Real estate investors make money through property value appreciation, and this can be realized when the property is sold or when the investor takes out a cash-out refinance loan. 

If the property is income producing, the investor generally will receive monthly cash flow. Another way to benefit financially from real estate investments is through tax deductions.

As you can see, there are numerous ways for your money to make money for you. A smart idea is to fund your savings account with a reasonable amount of money, and this can serve as an emergency savings account. You can then purchase other investments to create a diversified, balanced portfolio.



Thursday, November 1, 2018

How Older Adults Can Access Their Social Security Benefits



If you work until the age of 66, you will be able to claim your full Social Security benefit for retirement. This age is subject to change, however. Individuals who were born in 1956 will need to wait until they are 66 and four months to claim their full benefit. The retirement age will continue to increase until it reaches 67 for everyone born in 1960 or later.

What Are Your Options if You Need to Claim Early?


If you start collecting social security benefits before the age to receive full benefits, you get a smaller payment. Currently, you receive 25 percent less than if you wait until full retirement age to begin collecting benefits. For most people, it makes sense to wait until you reach the full retirement age to begin collecting social security.


What if You Need to Retire Early?


It is estimated that one in every four workers will become disabled before reaching retirement age. In cases where this happens, you may qualify for disability payments. To qualify for social security disability, you must have a medical condition that will prevent you from working for at least a year, or that will result in your death. 




If you have a partial disability or a short-term health condition, you do not qualify for this benefit. You must meet the definition of disability as it is spelled out by the social security administration and be younger than the full retirement age. Certain family members of the disabled may also be able to collect disability payments.

What is the Process for Applying for Social Security Disability?


If you believe that you or a family member qualifies for social security disability, you can fill out an application online. The process to collect disability from the social security administration can be lengthy and complicated. 


It often makes sense to contact one of many social security lawyers to speed the process along. It is not uncommon to initially be rejected for disability, but for the payments to be granted on appeal.

What Happens When You Reach Full Retirement Age?


If you are still receiving disability payments when you reach full retirement age, your payments will convert to retirement benefits. When most workers retire, their social security is based on their previous 35 years earnings. 


To prevent years spent collecting disability from lowering your retirement benefit amounts, the Social Security Administration ignores the years spent collecting disability when determining your benefits.

The process of applying for social security benefits can be overwhelming and intimidating, particularly if it is happening at a time when you are already facing a health crisis. 


Having someone to help walk you through the process can provide emotional support at this critical time. Someone familiar with the process can also make sure you have the paperwork necessary to get your claim submitted properly.


Wednesday, October 31, 2018

Budgeting for a Family: Ways to Work Toward Financial Freedom



When you have a family to provide for, it's essential to make sure you do everything you can to plan for the future. Not only is it important to have the necessities like food, clothing and shelter, but it's also best to create a life that you all can enjoy. 

Whether you'd like to go on a family vacation, out to the movies or make an investment, it's good to have the financial freedom to do so. In order to make it happen, you'll want to have a budget in place. 

In addition to a budget, there are ways you can create wiggle room so that your family can achieve the financial freedom you desire.

Use coupons


Get creative about the ways you create more room in your budget. Grocery shopping for a family is completely different from grocery shopping for yourself. You'll spend a lot more money. In order to keep costs low, it's good to shop in bulk. 

However, it's also great to use coupons. Now, there are tons of coupon apps you can download in order to get the discounts you desire. When you're shopping online, it's a good idea to download various widgets and apps that'll feature different discounts before you purchase the items in your online shopping cart.

Create passive streams of income


Passive streams of income are essential in order to build wealth. If you don't have various vehicles set in place, it's time to start building them. If you're an excellent writer, consider writing a series of eBooks. 




Upload them to the sites of major book retailers, and promote them consistently in order to earn money. Invest in the stock market or in the foreign exchange market.

Readjust your bills


Reconsider your cable bill. Get rid of a few of the luxurious amenities for a little while. If you're in a bind and you're a homeowner, you might want to consider shifting the interest rate on your mortgage loan by switching to a home equity loan. In some cases, this can be a really helpful move to allow you some breathing room.

DIY


Do your own manicures and pedicures. Style the children's hair yourself. Cut your own grass. There are certain tasks you can do on your own as they will help you refocus that money into more lucrative investments.

As you work hard to turn this goal into reality for your family, you might get discouraged along the way. There will probably times when you'll lose motivation, and feel compelled to give up. 


However, think about the fact that you're working for more than just yourself. You're working in order to help your family experience a better future. When you're able to keep things in perspective, it'll be easier to continue on the journey to financial freedom.


Saturday, October 27, 2018

Understanding How to Use Collateral for a Secured Loan



It is important to be able to have access to loans when you need them. Sometimes you will need to provide a lender with collateral in order to receive the favorable loan terms that you are looking for – this is typical of secured loans. 

If you have yet to secure a loan with collateral, then you may not understand how the process works. There are specific things that will be accepted as collateral, and knowing what they are as well as the benefits are important.

Why is Collateral Necessary?


Collateral is necessary for loans when the lenders need assurances. Sometimes people with less than stellar credit will need access to loans. If the lender deems the loan to be risky, then having collateral in case something goes awry will limit their risks. 


This makes it easier for them to justify giving you the loan, and it can wind up giving you more favorable terms.

What Are the Benefits of Using Collateral for a Loan?


There are various benefits to using collateral to get a secured loan. The most apparent benefit is that it allows people with less than perfect credit to get the loans that they need. 


This can lower the interest rates of the loan and will also make the approval process go smoother. If you want to get a loan, and your credit score is less than 700, then it might be in your best interests to use collateral to make things as manageable as possible.

What Are the Negatives of Using Collateral for a Loan?


The negatives of using collateral for a secured loan are pretty easy to understand. You are using your assets to secure the loan, so if something goes wrong, you could potentially lose those assets. 




If your vehicle is being used as collateral to secure the loan, and you don't pay it back, then your car could get repossessed. Also, sometimes these loans are long-term, and you can get stuck paying interest for a long period of time if you don't plan ahead.

What is Accepted as Collateral?


The type of collateral that is accepted for a loan will depend on the type of loan that you are applying for. Generally speaking, there are three types of loans that you will be able to seek out – personal loans, business loans or commercial finance, and auto loans. Each of these three types has differences with the types of collateral that you can use to secure a loan.

Personal loans allow you to use real estate, home equity, vehicles, and even your paychecks as collateral for a loan. There are also cases where savings accounts, investment accounts, and valuables are accepted as collateral. The most common collateral that is used for these purposes is definitely real estate, vehicles, and home equity.

Business loans allow people to use similar things as collateral but will also add in a few options. You can use business assets such as inventory, machinery, or a blanket lien as collateral. Auto loans will allow you to use the car that you are purchasing as collateral, or other vehicles that you already own. No matter what type of loan you are applying for, the value of your assets will need to be determined before moving forward.



Friday, October 26, 2018

So I Bought a Home—Now What? What to do After You Downsize



Many individuals and couples facing their retirement years consider downsizing into a smaller home. Once the decision is made and you purchase a smaller residence, the adjustment can be perplexing. Here are a few tips to help you manage your downsized living quarters.

Pare Down Your Belongings


If you’re like most people, you probably don’t need all of the items you generally keep around your home. Make use of worthy charities in your area to donate needed items. 

You may also want to consider having your belongings upraised or sold through an estate sale company. This could help with getting rid of unwanted or unneeded pieces that still have life left in them while earning you some cash.

Change Your Mind-Set


Living in downsized quarters requires a certain alteration in thinking. You may no longer need an elaborate wardrobe for work. Maintenance tasks may be lighter. Before making purchases, you’ll need to take more care about whether items will fit, will look out of scale or will take up too much storage area


These are mental adjustments that may feel constricting at first, but they will soon become second nature and leave room for new experiences instead of belongings.

Personalize Your Space


Some changes and improvements are obvious, like a different color scheme for the interior or new flooring. You’ll want to make the new place your own to help you feel at home there. 

Researching and connecting with reliable contractors in the area can help you make improvements and upgrades to your new home without the stress of doing it yourself.

You may want more cabinets for hobby items, shelving in the garage for projects, or better lighting for your favorite activities or areas. A smaller space may require some creative thinking and smarter use of built-in storage.


Maximize Your Storage Areas


Consider the many ways you can utilize space in your new quarters. Many new products are now on the market that can help you to use overhead space in your garage, create more efficient closet space or organize your kitchen. These products can help you maximize storage areas in your home.

Downsizing is a smart idea that many people choose after their children have left home or retirement suggests a more laid-back approach to daily living. Following these tips will help you to make your new living space more comfortable and will allow you more time to engage in activities you most enjoy.



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