Finance & Loans

Balance transfer may help you to get out of debt

Written by: Financial Haze

If you are living from paycheck to paycheck and often have to take payday loans, you know how bad the interest is. Some payday loans charges over 400 percent interest per year. There are many ways to get out of debt. One proven way is to transfer your debt to a credit card that offers zero percent interest rate for a period of time. Yes, there is a catch. Most of these cards charge hefty transaction fee. Often that will be onetime fee that may be high as three percent of the transfer amount. Still it may be a better deal to get out of your debt instead of paying over 18 percent annual interest rates that many cards charges.

A substantial amount of your monthly payment goes to pay the interest charged on your balance. But if you use zero percent interest for a limited time, your entire payment goes towards paying down your debt. In order to receive the maximum benefit of this strategy, you need to refrain from using your credit cards. One other helpful way to make this strategy works is to make a list of all debt and interest charges, and to pay-off highest interest rate debt first with a zero interest card.

Shedding debt to get ahead

Debt consumes many of us. Trying to dig out of a debt hole is not easy and takes time. However, if you plan properly, you can get out of the debt hole sooner than you think. Many adults are burden with credit card and other debt. Young adults coming out of college carry hefty student loans more than ever.

Tracking your expenses carefully will help. Goal is to cut your expenses lower than your earnings. You can invest the difference for better gains now and continue to generate gains into the future. That is one way to accumulate wealth while taking care of debt.

Housing, especially if you have a mortgage, takes more than 40 percent of your income. You can consider other options to cut your housing expense. Consider co-owning a home with a friend or family member. Look at buying a foreclosed home to lower your monthly mortgage and do all needed repairs by yourself while living in the home.

Attack your debt head on. Some start with the highest interest rate debt first. Consider paying debt such as credit card debt that does not come with tax advantages before paying off mortgage and student loans. Stick to a plan of repaying your debt and remember it could take time.

How to get out of debt

It is easier to get into debt but takes lot of effort, time and sacrifices to get out of it. Debt can accumulate much faster than one can pay it off. Car loans, credit cards and personal borrowings can add to a heavy debt load. Debt can get you into a vicious cycle and breaking it is up to you.

Take a look at the vehicle you are driving. Do you need a big vehicle? If the answer is no, get rid of the gas guzzler and get into a smaller car. It will cut your monthly auto loan payment and save on gas too. Having a monthly budget can help. Write down all your monthly expenses and make sure you pay more than the minimum on your revolving debt such as credit cards. Avoid making new purchases or postpone them until you are financially on solid grounds. Periodically audit your expenses to make sure you are spending according to your budget and to ascertain that you are on the right track to become debt free. Each one has a story to tell how they got out of debt and no two stories have the same method or the outcome. Put your mind to it and get out of debt.

Inheriting credit card and mortgage debt

Most expect to inherit big chunk of their parent’s assets. But what if your parents are broke and in debt at the time of their death? Who is going to inherit their credit card and mortgage debt?

Depending of the type of debt, different rules may apply. Husband and wife having credit cards together, may result in surviving spouse inheriting the debt after the death of the other spouse. In some states debt may be community property and as a result any debt accumulated after marriage shared by each spouse. This type of debt is not the responsibility of children after the death of their parents.

If a mortgage is held by husband and wife, the surviving spouse carry the burden of paying mortgage after the death of the other spouse. When both parents who hold the mortgage dies, whatever party that is going to inherit the property may be able to continue the mortgage depending on the provisions of the mortgage loan. Some may think that the loan balance is due in full at the time of the death of owners, but the Consumer Financial Protection Bureau regulations kicks in to provide some protection for the party especially children inheriting the property as well as the mortgage.

How to get Yourself Back on Track After Mortgage Delinquency

A delinquency isn’t something you intentionally brought upon yourself, in most cases, and your willingness to correct the problem will be a benefit for your moving forward. Remain flexible to different terms, and be prepared to do plenty of research about your state’s laws and the process itself.

Remember, the bank doesn’t want to foreclose on you. During the height of the crash, banks were backlogged on properties to foreclose on, and for good reason. Foreclosure costs them money, and it hurts consumers in the long-term. Don’t give up on your dreams, there are ways to get yourself back on track if you’ve lost your way.

Consider a Loan Mod

One of the biggest benefits you have is a loan mod. If you can verify that you’ve lost income, while your spouse or partner has been able to earn “continuous income,” you may be eligible. Of course, these requirements are vastly oversimplified so it’s important to review what the federal government has to say about loan modifications.

The benefit to you is adjusted loan terms that help you get yourself back on track. The disadvantages are a longer loan term and adjusted interest rates.

Short Sale

The bank may agree to a short sale, but they do set the price of the home and that price is typically non-negotiable. Short sales almost always close with an all-cash investor, although it’s not unheard of to do a short sale where the buyer is a first-time home buyer. It is a difficult process, but it does provide some hope to those who are seeking a way out.

Conclusions

Research your state laws and create an open dialogue with your lender. Try to remain polite, and document every interaction you have regarding your delinquencies. Be prepared for a struggle, but the dream of keeping your home is worth it.

:: Kuba Jewgieniew is the CEO of Realty ONE Group, and the founder of Realty ONE Group Cares. Through local charity work, the agents of Realty ONE Group are working toward better communities and brighter futures.

Credit card debt you may never want to carry

Recent financial news indicates that more and more Americans are paying down their credit card debt and stay away from new charges. If you are one of them pat yourself on the back. Credit card debt is one of many debts that one should try to avoid at any cost.

• They carry a higher interest rate. Depending on your financial health, they can carry a hefty interest rate as much as 30 percent. If not paid off the balance at the end of the month, credit card debt can spiral into stratosphere. Think about your credit card debt this way; if you paid off the balance and avoid paying interest, it is 30 percent that you earn on your money.
• Credit cards could lead you to develop irrational financial behavior. Irresponsible behavior on your part leads to accumulating debt and financial cost could lead you to stay trapped for months or years.

How to get out of the vicious cycle is a problem for many. There are many ways to handle the issue. You can get help from debt counselor or discipline yourself to pay down credit card debt promptly. There are other online services that are rapidly becoming popular for helping people with overburdening debt.

Bankruptcy hits individuals, businesses as well as government entities

A job loss, overwhelming credit card debt, interest rate hikes for many of your financial obligations, medical bills, college cost, divorce and many other reasons lead people to declare bankruptcy. Lately, bankruptcy is not just limited to individuals and businesses. More and more cities are also looking at bankruptcy as a way to reduce or even eliminate their financial obligations. The City of Stockton in California and the City of Detroit in Michigan have already declared bankruptcy and are going through the process at this time. Many California cities including Compton, Fresno, Oakland and many others are reportedly looking into bankruptcy to reorganize their financial health.

For individuals with income and debt issues road to bankruptcy is clearly defined in many ways. Law provides the right to a new start. However, their income as well as debt needs to meet certain criteria in order to qualify for filing for bankruptcy. Individuals with serious financial difficulties should not be ashamed to seek bankruptcy protection when needed. However, they may elect to seek assistance from an expert in the field without going it alone. Understanding what the law provides is critical to successful completion of the process.

Your credit score matters

Your credit score tells everything about your finances and therefore, becomes important for many reasons. First lenders constantly look at your FICO score and other credit information before even they delve into your credit history. Based on your credit score they set the rate they are going to charge you for credit cards, lines of credit, mortgage, and even for a car loan. A lower score to them raise a red flag and they may consider you as a high credit risk prompting them to charge you more or to reject your application. Some set lower borrowing limits due to lower credit scores.

Secondly, your credit score not just limited to lenders. If you tried to rent a place recently, you may have noticed that property owners are using your credit information including your credit history and FICO score. This is another reason to pay attention to your credit score. Based on your score as well as payment history, they may set the monthly rent and the amount of deposit you need to give to them to rent. It may even result in landlords denying your application to rent. Late payments not only affect your FICO score but also give reason to landlords to charge you more for the risk they intend to take.

John McAfee: Outlaw or Hero?

Written by Phin Upham

It was November of 2012 when most people got their most recent glimpse of John McAfee, the elusive and eccentric mind behind McAfee antivirus. That’s when Belizean authorities announced that they had sought him for questions in relation to a murder case.

Holed up in his private estate in Belize, McAfee became withdrawn to say the least. He hoarded ammunition, fake passports and piles of drugs. He disappeared almost entirely for a period, sparking an International hunt for the man to answer to justice, but he was eventually cleared of all suspicion.

McAfee left his own company two years after it went public in 1992. They incorporated in Delaware, despite being headquartered in Santa Clara, California. His company went on to change its name to Network Associates before it was purchased entirely by Intel in August of 2010. McAfee is said to be pleased that his name is no longer associated with the product, and has even released a self-deprecating video called “How to Uninstall McAfee Antivirus.” In the video, McAfee is seen snorting a white powder, and surrounded by many beautiful women, further perpetuating the stereotypes that surround him.

McAfee is a technophile who has expressed a disdain for technology, but contradictions are the norm for him. He is frequently concerned with government surveillance, and most of the technology he has conceived since his days with McAfee reflects this attitude.

McAfee currently lives in Portland with his girlfriend, where he is attempting to get the movie rights of his life sold and produced. Perhaps we may get a closer look at McAfee’s version of the truth.

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Phin Upham is an investor from NYC and SF. You may contact Phin on his Twitter page.

Mad Men and American Advertising

This article was written by Samuel Phineas Upham

Mad Men is a popular AMC television show about a group of advertising executives at the transition of the 70s. It begins in the 60s, going through famous events that include the assassination of JFK, but the show focuses on the work the agency does. From the sales process to fulfillment, Mad Men chronicles the tumultuous times of the 1960s through its advertising campaigns.

Prior to the 1950s, advertisers essentially tested out logical arguments on consumers and prodded them for that one that would make them say yes. It was akin to psychological abuse.

It was not until David Ogilvy came to Madison Avenue that the narrative craft of advertising started to take shape. Ogilvy was infamous for dressing his models in character. Bill Bernbach, who hired women, beatniks and immigrants to bring a different perspective to his own work.

It was an age of wit, of being honest and relaxed.

The famous “Think Small” ad of Volkswagon is a good example. The ad is self-deprecating, casting German engineers as detailed to a fault, but it also gives the car some character. The viewer is forced to look closer at the car, which makes them consider more detail.

It was the beginning of the “friendly corporate face.” These ads were creative and inspiring, putting people into the ad themselves. They were immersive, and played off of our emotions. It was also the first time that executives considered the potential value behind the story of a brand.

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