How Refinancing Your Home Can Benefit Your Future

When you purchased your home, it was without a doubt the single biggest investment you have made in your life. Now that you're a few years into making mortgage payments, you may be thinking refinancing your home is a viable option.

If so, you're not alone, since many homeowners choose to do this each year. Since refinancing your home can change your financial future for the better in numerous ways, here are some factors to keep in mind when mulling over the possibilities.

Lower Monthly Payments

When you refinance, you trade your existing mortgage loan for a new one that will have a lower interest rate. As a result, you will have lower monthly mortgage payments. 

Not only will this help you immediately, but in the future as well, since this will free up more of your money to be used for other things, such as home improvements, paying college tuition for your kids, or other things.

Building Equity in Your Home

When you speak with a mortgage company, such as Fairway PNW mortgage professionals, one of the biggest benefits you learn of regarding refinancing is the ability to build up equity in your home much faster than you anticipated, since you will now have a much shorter loan term. 

In doing so, this gives you the option to tap into your home's equity in the future, which could help to pay for unexpected expenses that may arise as you get older.

Paying Off Your Mortgage Sooner

If you refinance to a shorter loan term, this will let you pay off your mortgage much sooner than you anticipated. This lets you build up your savings for the future since you will save thousands of dollars in interest along the way. Best of all, you will own your home years earlier, giving you tremendous peace of mind.

Pay Off Other Debts

When you refinance, one important factor is being able to use an improved credit score to your advantage. If your credit score has improved since you took out your original mortgage, you should be able to refinance so that you get a lower interest rate. 

In fact, you may be able to choose a cash-out refinance, which will enable you to use the money to consolidate credit card debt and pay if off faster.

Since there are many details involved in getting the right refinancing deal for your situation, always do your homework beforehand and work with professionals you trust. By doing so, you could soon see lower mortgage payments and more savings.

5 Small Businesses That Are Easily Scalable

When starting a small business, most entrepreneurs have a timeline written for expansion purposes. The goal is to create a business with good growth potential.

When considering business ideas, consider scalable businesses as they have a more significant profit margin as they grow. Here are five small businesses that are easily scalable.

Digital Downloads

Digital downloads mostly consist of video games, templates, music, and e-books. It works as one of the most scalable businesses, as there are no delivery costs associated with the product sold. 

Using an online platform like a website, users access the downloads after processing payments. Advertisements of the products are equally done online on the platforms you choose. 

The best part is that with aggressive marketing of the product and offering sampling to ensure that the market is reeled in, it's easy to see an upward growth as popularity increases.

Franchising

Starting a franchise requires having a unique business idea and looking for investors who will buy the franchise. As the franchise owner, you’ll not spend money on operations, staff or, even location. After the business starts running, you’ll profit from the sales. 

However, you want to place guidelines that buyers will follow to ensure that the franchise name is protected. Have a standard model that the buyer must follow for uniformity in business practices.

Blogs, Podcasts, and YouTube

Blogging, podcasts, and YouTube channels work great, and it's a virtual business in which you make all the rules. In the platforms, you talk about anything and everything that interests you. 

Companies associated with a given topic will sponsor you to market their products. The best part is that you do not have to fabricate the results and everything you say and do. 

The other way, it's a scalable business that you get revenue from adverts on the platforms you use as your viewership grows. The larger the audience, the bigger the paycheck.

Rental Properties

If you have a significant amount of money that you don’t know where to invest, rental properties are the thing. After the initial renovations to market standard, at least 90% of the income remains pure profit. 

With property value continuously increasing, your investment return is guaranteed in the shortest time.

Salvage Car Business

A salvage car business grows rapidly, especially since vehicles have become a necessity rather than a luxury as it was considered a few years ago. 

Set a temporary workshop between the towing truck services and a parts shop. Within no time, the business will thrive, and you can set yourself as the point man for second-hand parts.

4 Things You Need to Protect Your Retirement Side Hustle

Having a side hustle throughout your retirement is a fantastic option to increase your income, however, there are a few things you need to get in line to make sure that it is protected.

Most of these things are simply quick fixes that are definitely worth doing to future-proof your side hustle. Invest some time and a small amount of money now and you will reap the benefits in the future.

Choose A Legal Structure

Although you might have already done this, we must mention it to start with. You need to make sure that you have associated your business with one of three legal structures; a sole trader, partnership, or limited company. 

If you haven’t, you might face issues later down the line, so getting this right if you haven’t already is important.

When you register yourself as self-employed, you will automatically become a sole trader. If you face any debts, this does mean you are responsible and your personal assets could be at risk if you can’t pay them. 

Another option if you have joint ownership with someone else is to register as a partnership. There are different types of partnerships depending on your business, some with fewer obligations than others.

Finally, you can set up a limited company, where your personal assets are separate from the business assets. This is a big advantage, but there are many more legal obligations involved that you need to learn about. 

If you are unsure, there are so many different guides online or you can discuss this with a business advisor to make sure you are making the right choice.

Protecting Your Intellectual Property

If you have developed a new product, service, or brand for your side hustle, it is important that you protect it by trademarking your intellectual property. 

This could be anything that you have created, from brand names to new technology, products, or symbols. Not only will this make sure that you protect your own business and ideas from being ripped off by other people, but you will also make sure that you’re not infringing on other people’s businesses so you don’t face any legal issues later down the line. 

Even if your business only generates a small amount of your income, this is a really important step regardless to future proof the business.

Have The Right Insurance

Every business should have some kind of insurance, and if you don’t, you might find that you come to regret the decision later down the line. 

It is best to work with a broker for this, to make sure that you find the right insurance depending on your specific side hustle. If you work on a credit basis for your side hustle, you might need whole turnover insurance if your business is particularly high risk. 

Perhaps for your specific business, you will need property insurance, liability insurance, workers compensation insurance, the list goes on!

The best piece of advice we can give you is to go to a broker and they will be able to assist you with getting the right cover for your business at the right price.

Make Sure You’re Paying The Right Tax

No matter how big or small your side hustle is, you need to report your earnings to the government. This income will be classed as self-employed income, so it is important you report anything to the HMRC or another relevant governing body. 

Tax is a very complex thing to get your head around, so it is always worth contacting a professional accountant to make sure you aren’t paying too much or too little tax. 

This will make sure that your business isn’t hit with any huge and unexpected tax bills in the future!

Final Thoughts

If you invest in these things now, it will certainly be worth it in the future. Protect your retirement side hustle and your future!

How to Get Out of Medical Debt

Medical debt is a major financial burden that millions of people are currently struggling with. While you might feel overwhelmed by your medical bills, there are a few steps that you can take to reduce your debt, lower your payments, or even have your debt wiped out entirely.

Collect and Review Paperwork

It is an unfortunate fact that a relatively large percentage of medical bills have errors, and some studies have shown that as many as 75 percent of patients aren’t being billed correctly. 

That is just one of the many reasons why you should always review all of the paperwork that you receive from the hospital. You must also ask the hospital for an itemized list of all the charges so that you can dispute any errors.

Contact the Hospital

The next step in the process is contacting the hospital directly to discuss your bills. As long as your bills haven’t been sent to collections, you might be able to negotiate new terms with the hospital’s billing department. 

Most hospitals want to retain the debt so that they profit from it, and they could help you come up with a more affordable payment plan that doesn’t destroy your finances.

Apply for a Medical Credit Card

Acquiring a medical credit card is another option that you should consider if you can’t negotiate with the hospital. Medical credit cards tend to have very low interest rates and much lower requirements for applying. 

Some medical credit cards even offer zero percent APR for upwards of two years, and that will give you plenty of time to focus on your finances and rebuild your credit.

Consider Bankruptcy

While these other options can be very useful for some patients, there may come a point when it is time to consider bankruptcy. Filing for bankruptcy will allow you to restructure your debt or even wipe it out entirely, and that process should be off your record in a matter of years. 

To read more about your bankruptcy options, you should head to a reputable legal site that will allow you to learn about the pros and cons of each chapter of bankruptcy.

Ongoing debt can become a life-altering burden, and that is why many people will ignore it for years as it spirals out of control. If you have been struggling with medical debt, then it is time to come up with a long-term plan for getting out of debt and rebuilding your finances.

Ways to Get the Funds You Need for Your Mortgage

Paying the mortgage can be a difficult task, especially when you've had a change in your job situation or if the taxes on your property keep going up.

Thus, you might have found yourself in a situation where you need to get extra funds for your mortgage. Fortunately, you have plenty of options to pursue.

Check for Cash Rewards

When you're a little bit short on cash and need a short-term solution for this month only, see if you have any cash rewards available that you aren't currently using. 

For example, you might have a credit card that offers cash rewards. Check to see if you can cash out on those rewards. Then, you can put that money toward your mortgage. 

Do note that credit card rewards tend to take some time to build, so this solution isn't a useful long-term plan.

Research Relief Plans

Many people aren't using certain benefits that they are entitled to. For example, in the event that you are suffering from the long-term effects of a disease or if you are experiencing struggles with a disability, you might be entitled to compensation or other forms of financial relief. 

Researching programs specific to your needs can help you to find the money necessary to pay the mortgage both now and in the future.

Call Your Mortgage Provider

Sometimes, situations arise where you don't have too many options for getting the money in right now. Thus, you might be tempted to simply ignore the bills. Instead of allowing the problem to grow worse, call your mortgage lender. 

Let the representative know what is going on and when you expect to be able to pay your bill again. The lending company may be able to work out an agreement with you. Do keep in mind that the mortgage may accrue more interest as a result.

Refinance Your Mortgage

While you might have the necessary money to pay the base mortgage, you may be struggling with the interest rate. Looking into refinancing is a smart way to reduce the amount of money you have to pay every month. 

Check into the current interest rates in the area. In fact, if you have equity in your home, you might be able to refinance with cash out, which means you'll have some extra money in the bank. 

You can look to companies like Fairway PNW to find lenders that are willing to work with your needs.

Staring at a mortgage bill while not knowing how to pay it is a frightening experience. Fortunately, help is available if you’re willing to reach out to others for it, or get creative in your methods of getting the necessary funds as quickly as possible. 

Don’t be afraid to seek out cash where you can find it, like from cash rewards you’ve earned. Also, don’t be afraid to get in contact with the people you owe the money to. 

Keeping them informed may make them more lenient or at the very least willing to work with you, as opposed to simply saying nothing and allowing your bills to go unpaid.

Why You Need a Credit Card to Improve Your Finances

A credit card can be a powerful tool for improving your finances. Many experts recommend using a credit card for everyday purchases, little things like groceries or fast food, to quickly build and improve your credit score in preparation for the big things.

That being said, there are also other benefits to using a credit card, such as earning rewards and building a credit history. Here are the reasons you need a credit card to improve your financial situation.

To Build Credit

A credit card is one of the easiest and most effective ways to improve your credit score. This is because every time you make a purchase with your credit card, it is recorded on your credit report. Having more information on your report can only help build up your score (assuming you pay off the balance each month). 

A good trick to this is making small purchases that you can then immediately pay off, such as trips to fast-food restaurants or small amounts of groceries. In no time at all, your score should begin to build and improve.

To Build Wealth

If you're trying to get rich, the best advice is to use credit cards wisely. Purchasing items with a credit card can help you earn rewards that you can use towards things like travel or gift cards. 

You could even use your points or miles towards a valuable item such as a television or new watch. The key is to use your rewards to build wealth instead of just getting free stuff.

To Earn Rewards

Credit cards offer benefits, such as cashback and travel rewards, that other types of financing don't offer. With a credit card, you can earn up to 2% cashback on purchases or travel rewards that you can use towards flights, hotel stays, and more. 

Rewards are becoming increasingly popular with credit card users because they offer great benefits for you to take advantage of.

To Take Advantage of Promotions

Credit cards often come with promotions that allow the cardholder to take advantage of benefits, such as double miles on every purchase. Promotions are a great way to save money and offer cardholders valuable features that you can use for everyday purchases.

To Build Credit with a Minor

If you have a child under the age of 21, getting them access to a credit card can be very difficult. Even when they turn 18, unless they can prove they make their own income, they likely won’t be approved on their own. 

This is because federal law or a credit union, one like FCCU - First Community Credit Union, requires that anyone under the age of 21 be subject to a limit on how much they can spend using their credit card or even approved. 

This essentially means your child, or you yourself if you’re under 21, can’t build a credit history — which can be problematic for someone who wants to build wealth, especially if they begin living on their own at 18.

However, if you or your child are under 21 and want to build credit, you can ask a parent or guardian to add you as an authorized user on one of their cards. 

This essentially allows you to piggyback off their credit history. Plus, since your name will be on the credit card, you will be more likely to use it responsibly as opposed to racking up massive charges and leaving the owner of the card to deal with them.

In conclusion, there are plenty of reasons to use a credit card when paying for things. If you're looking for ways to build credit or want the best way to earn rewards, then using a credit card is the right choice for you.