Avoid Debt – Advice on avoiding debt & bad credit issues

Cut your monthly expenses to get out of credit card debt

October 17, 2014 by · Leave a Comment 

Have you noticed that when your unpaid credit card balance goes higher, the credit card company wants you to pay more each month? If you have a higher balance on your credit card, let’s say around $20,000, there comes a day that paying your monthly minimum due becomes a burden on other expenses. Climbing out of credit card debt is no easy task.

  • Carefully review your family expenses.
  • Find ways to cut your expenses.
  • Make note of your utility bills and see what ways you can slash them.
  • Review your monthly grocery expenses and start shopping at discount stores to cut it and use coupons as much as possible.
  • Is that vacation you are planning is necessary? Can you afford it with a $20,000 or more credit card debt? Use that money to reduce your credit card balance and postpone your vacation for few months.
  • May be you can avoid those birthday parties and other expensive occasions for a while.
  • Getting out of debt should be a family affair. Get everyone involved and let them help to cut monthly expenses.
  • Make a monthly budget and stick with it. You will be out of your credit card debt in one or two years.

How to Save for a Home Purchase

October 10, 2014 by · Leave a Comment 

A home purchase can seem so far away if you don’t have the money on your right now. When faced with ambiguous goals, it’s easy to say that it’s just not for you and move on to something else. But home ownership is within your grasp! You need a savings plan, that’s true, but there has never been a better time to start the journey of buying a home. Rates are low, and you stand to gain over your own lifetime.

Set a Goal

The first step is to set a goal to buy a home. You do that by figuring out how much home you can afford, which begins with analyzing your current expenses and income. Once you have figured out how much money you can potentially save in your current situation, focus on hitting that goal. It sounds simple because it is, but you have to figure out ways to pay yourself first.

For example, account transfers work well for automated payments. If you set up a transfer to occur each pay period, you will never need to worry about setting money aside for a home because it will already be there. However, where you save your money is just as important as how you save it.

Interest Bearing Accounts

You’re going to need a substantial down payment unless you can afford monthly payments for an FHA loan, which would only require about 3.5% of the purchase price down. Your best rate for a low risk account will be somewhere around 1%, but that is definitely better than nothing. Save regularly, and pool every penny. You will hit your goal if you stay focused.

By Kuba Jewgieniew, stock broker who used his passion for data to fuel a real estate business and lifestyle brand. Today, Realty ONE Group is one of Inc. Magazine’s fastest growing brands in the United States.