How To Turn Debt Danger Into Manageable Monthly Repayments

Sometimes our finances get away from us and we find ourselves in an untenable debt situation. Not only is this harmful to your future financial plans, but it can also be damaging to your mental and physical health. Worrying about your increasing debt and your inability to pay the bills that are piling up can be a nightmare.

If this sounds like your life lately, do not stress any longer. Fortunately, there is some opportunity for relief. This can be found in the form of a debt consolidation loan. If you are unfamiliar with these financial services, here we will discuss exactly what they are and how they can help you to emerge from your debt.

Let’s look at what debt consolidation is and some specific things to keep in mind before moving forward with it.

What Is Debt Consolidation?

Debt consolidation and debt consolidation loans involve taking out another loan large enough to pay back all your existing credit obligations. If you have several different debts that you are struggling to pay back, with debt consolidation you will be able to instantly repay these creditors.

Afterwards, you will only have a single albeit larger loan to worry about. The benefit of this process is that the interest on your consolidated debt is likely much less than some of your existing debts. This is especially true if much of your debt is in the form of credit cards which tend to have extremely high-interest rates. If planned out thoughtfully, debt consolidation can greatly reduce the long-term amount of money that you owe.

What Are The Other Benefits?

Some of the benefits of debt consolidation are immediately obvious. For one, you will now only have one bill to worry about each month. This is great for those who struggle to remember to repay each creditor every month, or even for those who tend to forget who they owe.

Depending on the repayment schedule you have negotiated for your loan, you may now also have a longer repayment window. This will mean a lower monthly payment for your outstanding debts. This can allow you to sacrifice less of your lifestyle while regaining your financial health.

Make sure to prudently calculate the repayment rates and schedule before signing for a debt consolidation loan. While it can be an invaluable tool for getting out a dangerous debt situation, you do not want to make a misstep and end up even worse off.

Are There Any Disadvantages?

There are few real disadvantages to the actual process of debt consolidation. The only downside is that it may be difficult for those in certain circumstances to actually acquire such a loan from a reputable provider.

This is because debt consolidation loans typically require collateral and a reasonably solid credit score. If you do not have access to these things, you may still be able to receive a debt consolidation loan but at much less favourable rates. Alternatively, you may look for a close family member who may be able to co-sign for such a loan though in these cases be sure to plan wisely and know that you will repay the debt yourself.

Reclaim Your Financial Health

Being in a high-debt situation does not have to be a permanent part of your life. You can escape the cycle of unpaid bills by using debt consolidation loans. As with any financial tool, plan wisely and watch your finances closely. Make sure to solve the problems that got you into an unsustainable debt situation before the loan or else you risk running into the same issues down the road.

 

Investing In Your Child’s Future

When you’ve just had a baby, savings are probably fairly close to the top of the list of things you don’t even want to think about, let alone take action on. Just having a baby is financially exhausting. Plenty of people probably warned you about the impact that having a baby would have on your body, but not enough people receive fair warning of just how expensive a new baby can be. Some people put the cost of raising a child as high as $21,000 within their first year. We think that sounds expensive – but we couldn’t swear to it being wrong.

There are excellent reasons for you to force yourself to look into financial products for your newborn, though. Ultimately, all parents want a better quality of life for their child than they’ve enjoyed themselves – and f you get started early enough, you can make that a reality. Making the proper financial provisions for a new baby might not be as expensive as you think; especially if you act as early as possible. For that reason, we’re going to ask you to sit down, fight against the urge to reject the idea of trying to put money aside out of your head for a moment, and look at this brief guide to five financial provisions you should consider making for the youngest member of your family.

  • A Junior Savings Or Investment Account

We list both options here because some people are nervous about the idea of investments. That’s largely because investments are misunderstood. It’s true to say that they can be compared to gambling, but not the same sort of gambling you’d encounter if you were playing mobile slots games. The money you put into the games on a mobile slots website will either turn into a larger prize, or be lost. Winners at slots casino get jackpots, and losers get nothing. Not all investments function in the same way. Some may never grow at all – and that’s the gamble, but many of them will guarantee that they at least won’t lose money. If you’d rather your child’s account experienced a guaranteed level of growth – even if it was a low level – opt for a savings account with a fixed interest rate instead. Don’t give them access to it until they’ve turned 18.

  • A Pension

Talking about a pension for someone who’s just been born might sound a little crazy. The only thing they have in common with pensioners is that they’re wrinkly, and some of them are bald! In an ideal world, we wouldn’t have to talk about pensions for children. Our world is sadly far from ideal – we’re currently heading for a pensions crisis that may rob the next generation (and the one that comes after it) of many of the retirement benefits the current generation is looking forward to. The best way to ensure your child stands a chance of receiving a reasonable pension when they’re older is starting one while they’re still young. To put the benefits in financial terms, if you were able to pay $3,600 per year into a pension fund until your child was 18, and then it was left until they were 60, upon reaching 60 that pot would be worth $1m. This assumes that the pot would grow at 5% per year, which is reasonable for a pension fund.

  • Life Insurance (for you)

We’d all like to assume that we’ll be here to see our children grow up. It’s a sad reality that some of us won’t be. Even if you’re from a family with no history of medical issues, you could be knocked down crossing the street tomorrow, and that would be it. None of us can ever say that we’re totally safe from an accident, and that’s what insurance is for. If you’re comparatively young, fit, and healthy, you could obtain hundreds of thousands of dollars worth of life insurance for $10 per month or less. It wouldn’t replace you if you weren’t around anymore – and your child would, of course, miss you terribly – but you could at least enjoy the peace of mind that comes with knowing they’ll be financially looked after even if you’re not there to see it.

  • A Regular Bank Account (as soon as they’re old enough)

Do you wish you’d known more about the value of saving money when you were younger? So do we. Make sure your child won’t also answer that question in the affirmative when they’re your age. As soon as they’re old enough to have a bank account, open one up for them. Instead of giving them pocket money in cash, transfer it into their bank account. They’ll soon get used to the idea of seeing how money builds up, and how putting a little away each week or month contributes to a much larger pot. Let them spend a little when they want or need to, but always have a conversation about what they’re spending the money on. Also make sure they work out how much they’ll have left once they’ve spent their money, and how long it will take them to build their savings back up again. This is the only way to teach the value of money.

  • A Piggy Bank

You probably weren’t expecting to see this here – but it’s just as important as all the others! Money shouldn’t just be something that children see on a screen. We might be heading towards a cashless economy, but we’re not there yet, and we don’t expect to be there within the next ten years either. That means cash will still be around when your child is growing up, and they should develop a positive relationship with us. Who among us didn’t love raiding their piggy bank when we were younger to see how much we had for candy and toys? If money is held in banks all the time, it’s boring, and it becomes a chore. If it’s a chore, it’s less likely that your child will have a positive relationship with it. If approached with the right mindset, managing money can be fun – and it all starts with a classic piggy bank that a child can squirrel loose change away in. You can worry about the insurance, the pensions, and the savings accounts. That’s the serious stuff. Let your child have fun with the less serious side when they’re young!

 

Millennials Are Turning to Social Media to Learn How to Invest

As more of the world’s business can be conducted online, millennials remain the most connected generation alive. Social media provides an active pulse for what’s happening in news, sports, entertainment, so why wouldn’t the same concept be true for investing? There are plenty of apps that feature robo-advisors to help young people make better investment decisions, but none of them operate as a social network for investors. StockTwits is the only service of its kind that features a focus on investing and teaching its increasingly younger audience the best practices for managing money.

What is StockTwits?

StockTwits started as an off-shoot of Twitter, implementing the dollar symbol ($) before stocks to include stock data in tweets. Since then, the service has morphed into its own platform that is no longer reliant on Twitter but operates much the same way. Users can sign up and create a profile to begin sharing their investing ideas. There’s a lot of chaff to wade through as plenty of people are pushing products and services on StockTwits, but plenty of legitimate day traders, swing traders, and hedge fund managers maintain active accounts for sharing their trading ideas.

How is StockTwits Used?

Users can create a stream of their own stock trading ideas to share with the community, tagging the relevant stocks so their information will show up on that stock’s feed. Most investors use the service to keep their ear to the ground for hot stock tips from major investors that tend to follow the same strategies. For example, hedge fund managers that love the day trading scene will be followed by both day and swing traders who are looking to make some cash from following a ‘celebrity’ investor’s plays. Investors who have confirmed their identity at a company are marked with a verified badge, much the same way Twitter verifies personal accounts.

Is it Valuable?

This question is pretty subjective, but the short answer seems to be yes. A recent interview with the StockTwits CEO revealed that the site’s most active users (52%) are young people between the ages of 18 and 34. These people are most likely to be investors in consumer stock companies like Snap, Apple, Etsy, and cryptocurrencies like Bitcoin. That interview revealed that only 20% of StockTwits’ users are age 45 or older, so it definitely trends toward the younger crowd.

Does it Help with Technical Analysis?

Remember that part where I mentioned people share all their wild ideas? There’s a lot of chaff there to pick through. Rosen himself admits that users share around 10,000 annotated charts a day. Some people share charts to support their opinion or oppose someone else’s, so there’s a lot of spirited debate about stock performance. Professional investors do keep an eye on the platform, but StockTwits should be viewed as more of a zeitgeist for the public opinion of a company rather than a true trading resource. Millennials are using it to discuss the performance of their favorite companies, even if they have no investment stake.

How to Purchase Cryptocurrency with a Bitcoin Roth IRA

The Bitcoin Roth IRA is a unique type of investment opportunity.  While it is known as a bitcoin IRA, it is able to handle all forms of cryptocurrencies. This includes etherium, bitcoin, litecoin, ripple, and so on.  There are some key benefits of investing in cryptocurrencies in an IRA, but you do have to get to know how it works and how to keep your Investments secure.

How to Invest in Cryptocurrency with a Bitcoin Roth IRA

The first step to starting a bitcoin Roth IRA is to apply for an account. Because a cryptocurrency is, by its very nature, digital, you should be able to complete your IRA application fully online as well. Anything that is done online is generally done quite quickly, so none of this should take very long. Once you have opened your account, you will need to send it. The custodian of your Roth IRA should be able to provide you with advice and guidance on how to do that. Sometimes, people transfer money into the Roth IRA and ask their custodian to purchase bitcoin, other times they already own cryptocurrencies and want to place them directly into the IRA.

In order to be able to use a bitcoin IRA, you also need a bitcoin wallet. This is a digital programme in which your cryptocurrencies are stored. It is very important that you use one that is properly encrypted and that offers the highest levels of digital security. Do make sure, therefore, that you do your research in terms of who you’re custodian is going to be but also which wallet is going to get used. Security is of the utmost importance, and you could expect to receive numerous security keys, voice verification, and other forms of ID verification. This will protect your funds against single key losses and single machine compromises.

Because your bitcoin Roth IRA is in fact completely digital, you will also be able to manage your account in that manner. This is another reason why having security keys in place is so important as this means only you will be able to move the bitcoins as per your requirements. Often, this involves multiple machines, which further highlights the importance of encryption and digital security.

If you are new to the  world of cryptocurrencies, Investments, IRA accounts, and so on, then it is vital that you do your research before you sign up to anything. At the end of the day, you are investing your own money and your own financial future and you should have as much security as possible.  Cryptocurrency is incredibly fashionable right now, with many people including financial experts believing it is the way of the future. While it is very much possible that they are correct in this, it is no secret that the most important thing is to have a diverse portfolio. This means you should not focus solely on bitcoin, but rather have that as a percentage of your overall strategy.

Golden State Financial Group Explains the Difference between Loan Modification and Loan Reinstatement

If you have received a letter from your mortgage provider that you must make  Almost Famous, as well as legal fees, penalties, and late fees comma then they are telling you that they wish to reinstate your loan. Essentially, it means that the delinquent amounts have been a default on your part. When this happens, they are entitled to demand that you make payments and if you don’t, they will foreclosure property. In that case, you may wish to consider a home loan modification because this could help you avoid foreclosure. Here, the Golden State Financial Group will explain how reinstatement and modification are two very different things.

Golden State Financial Group on Reinstatement and Modification

When you receive a letter demanding payment, the content of this letter will vary depending on the terms of your loan. The only thing it can demand is that you pay what is stated in your original loan documents. If you have fallen behind, you must still meet all the terms and conditions stipulated in your contract. No loan document and has any language in it that allows for changes. What this means is that the lender can only collect on your loan or foreclose. Hence, if you have defaulted, the only way to once again be current is to make full payment. Once this is done, your loan will be reinstated and you will not lose your property, presuming you will not default again.

Sometimes, reinstating a loan is almost impossible  simply because of the huge amount due, particularly when adding all the fees. What this means is that you may feel as if foreclosure is the only option left. However, Linda’s May in this case agree to effectively change the language found in your original loan contract. This means they modify it. How they modify it varies comma and could be something like lowering your monthly payments, slightly increasing your monthly payments until you have paid what is due, lowering your interest rates, saving money, or even gifting some of the remaining balance to you.

You may wonder why a lender would be interested in making things easy for you particularly when you are the one who has defaulted. There are actually several reasons for this, including:

The foreclosure process is incredibly expensive for the lender.

It is unlikely that the lender will be able to receive the full value outstanding on your loan by selling your property.

Well the home is in the selling process it will need to be looked after. It is unlikely that you will be willing to do this when you know your home it’s been taken off you.

Lenders don’t actually have their own money, they borrow it from larger lenders. This means that they have money to pay back and they might not be able to do so when they for closing your property.

While in foreclosure, your home is not classed as an asset. This will lead to heavy criticism from government regulators.

How to Save Money: 6 Possibilities to Consider

If you have a sneaky suspicion that you waste far too much money and are looking for simple, yet effective ways to save money, continue reading to discover 6 easy ways to save money.

One dollar banknote isolated on white background

How to Save Money: 6 Possibilities to Consider

1. Make sure that you pay all of your bills, before their due dates

Some companies may charge you a small fee if you fail to pay your bill before its due date. However, on a more positive note, some companies also offer small percentage discounts, for customers who pay their bills on time. Either way, it’s well worth paying your bills a few days prior to their due dates, in order to save money.

2. Consider canceling some of your monthly subscriptions

To work out whether or not you should cancel a subscription, simply divide the amount which you pay per month, by the number of times which you actually use your subscription per month. In order to find out how much you pay, to use your subscription each time.

3. When it comes to grocery shopping, ensure to stick to your shopping list

Get into the habit of writing a shopping list, ahead of each trip to the grocery store. If you can avoid putting impulse purchases into your shopping cart, you should be able to save 20% off your total bill. If you find it hard not to treat yourself, simply limit yourself to purchasing one surprise item, which costs $5 or less.

4. If you find it hard to keep to a budget, start carrying cash instead of a credit card

If you give yourself a budget of $60 for a night out with your friends, you’re guaranteed to keep to your pre-determined budget. However, if you carry a credit card, you may find it far too easy to swipe your card for numerous purchases and may end up spending well in excess of $100! So if you have a problem sticking to your budget, it’s well worth reverting back to using cash instead of a credit card.

5. Pack your lunch, instead of purchasing lunch at a cafe

Even if you kept to a reasonable budget of $7 per lunch, you’d still spend around $1,800 on work lunches per week. When you take into account that most cafe lunches are pricer than $7, by choosing to pack lunch from home, you should be able to save well in excess of $2,000 per year, which is a sizeable amount.

6. Consider selling one of your vehicles

Whether you’re planning a wedding, buying a new home or just need some fast cash, selling one of your cars could be a helpful option. If you live with a partner or spouse and currently own two or more cars, you may want to consider selling one of your cars and using public transport on a more frequent basis. In fact, the average family who sells one of their vehicles ends up saving around $9,000 a year. As you’d be surprised to find out how much you’ll spend on car maintenance and gas costs per year.

So if you assumed it would be a difficult task to start saving more money, think again!