Is Your Debt Getting the Best of You? How to Decide Which Financial Option Suits You

Sometimes the mortgages and credit card debts can seem insurmountable. No matter how many months you pay, you never seem to manage the large amounts of debt that have accumulated over time.

Debt can be particularly overwhelming if you don’t have a plan for paying it off. It can be discouraging when you owe so much that you cannot even determine when you will get it all paid off. 

And no matter how much money you earn, you may feel like sometimes all you are able to do is pay your monthly bills.

The good news is that there are plenty of options for getting out of debt, and they are solutions that anyone can make use of. If you follow a few simple financial tips, you can pay off your debt and be debt-free in a year or two depending on the amount you owe.

Organize Your Bills

Before you can pay off what you owe, you have to determine your total debt. Analyze your bank statements and your credit card statements from the past 12 months. 

Take note of all the recurring loan bills and other fixed expenses you have. Be sure to include interest rates, total balances, and any additional small payment required on top of the total debt.

Next, you want to check your credit report to see your current loans, lines of credit, and any loans you might have in default. You can check your credit report annually online for free. Be sure to analyze your credit from all three credit bureaus, as some lenders don't report to all three of them.

Once you know what your total is, you're ready to start paying your bills and be on the road to living a debt-free life. All you need to do is follow these simple strategies.

Pay More Than Your Minimum Payment

Analyze your income. See what you can do to earn additional income to pay off your debt, then budget your expenses. Finally, decide on how much extra money you can put towards your debt. Paying more than the minimum amount on credit card debt will save you money.

For example, if you have a $10,000 balance on your credit cards, there's a 17% APR and let's say you have a minimum payment of $350. 

If you only make that minimum payment, it will take you four years to pay off the balance, and you'll end up spending about $4,000 on the interest rate. On the other hand, if you paid $600 a month, you could repay that debt in less than two years and lower your interest rate.

Prioritize Your Smaller Debts

Another option is to make the minimum payment on all your credit cards, except for the smallest one. Then pay as much as you can towards that one. 

This method allows you to eliminate credit card debt quickly. Once you are finished with one, you can quickly pay down on the next one.

Refinance to Lower Interest Rates

Consider refinancing your debt and getting a lower interest rate. This process can save you hundreds of dollars in interest and will help repay your debt off faster. 

By consolidating several loans into one, you usually end up with one smaller payment. You can refinance auto loans, mortgages, and even personal loans.

Save Money by With a Settlement

Another option is to call your creditors and negotiate a settlement. Often you can get a debt settlement deal for a lot less than what your monthly payment is. Again, you can do this yourself or contract that third party to conduct the debt settlement services for you.

Consider Filing for Bankruptcy

If none of these options are available to you, consider contacting a bankruptcy attorney. While bankruptcy is not for everyone, it can get you out of large amounts of accumulated debt. Sometimes starting over can be your best option if your debts have become too significant for you to handle by yourself. 

Because bankruptcy comes in many forms, it is usually best to talk to an attorney to see what options are available to you.

There are many different options to get out of debt. However, it is important to remember that your debt should never be ignored since it will never go away by itself. You need to be proactive and use proper judgment to find options to relieve your debt.

What Makes Being Arrested More Costly and How to Manage It

Being arrested is scary and stressful and your interaction with the police officer can make a difference. If you’re arrested, the cost of the arrest is going to cost you more in the end. The following will discuss why being arrested can cost more and how to manage it.

How Much Is The Average Arrest

The average arrest for a felony-level arrest can cost up to $55,400 whereas the average cost for a misdemeanor can be up to $1000. Although the lower amount is significantly less, it can still put a burden on low-income families. 

This does not include the cost of bail that can range anywhere from $40 for personal recognizance and up. If the individual is not able to make personal recognizance bail, they risk not being released from jail and could potentially lose their job.

Your Punishment Can Be Costly

If the court system decides on probation, you will be required to pay fees around %55 per month, not including testing for drugs. Drug testing can be costly from $35-$45 per test. 

If you’re ordered to complete community service, this may also cost you money due to transportation costs. Mandated counseling sessions can also be costly upwards of $10 or more per session. 

Even if you are incarcerated, the fees can get up there such as fees for meals, canteen, grooming services, phone calls, laundry services, etc.

The Cost of Lawyers

Getting an attorney should be on the must list after getting arrested, but comes at a hefty cost. An attorney for a criminal case can cost $25,000 or more and some lawyers charge a minimum retainer fee of $5,000 just to get started on your case. 

If you are a low-income family, you may have the fee reduced by getting a public defender where the court covers some of the cost.

Bail Bonding Agent

A bail bonding agent can help get your life back together. They will help with expedited bail bonds to get you out of jail fast and back to your life as much as possible. 

The bail bonding agent will help explain the process and gather all the required information for you to be released from jail. Although there is a fee for a bail bonds agent to help you get out of jail, it will help you continue to manage your arrest and charges by getting back to your normal life, job, and family to assist you.

Getting arrested is stressful and can put a damper on your life. It’s important to get back to normal by contacting a bondsman to get you out of jail to work towards recovering from your arrest.

Money-Saving Tips to Lift Your Finances in 2021

2020 has been one of the toughest years of most of our lives. The Covid-19 pandemic wreaked havoc on the world and impacted almost everyone in some way. It has been emotionally, mentally, and physically taxing for some and financially straining for others.

Businesses that saw their revenues take a plunge during the pandemic had to let go of a major portion of their workforce. People who lost their jobs or were furloughed in this period had to learn the art of saving money.

Flash forward to today, things are slowly improving and the economy is getting back on its feet. But even without a threat of a pandemic and economic recession, money-saving is a good skill to possess.

If you’re someone who wants to master this art, 2021 can be your year. All you need to do is to follow tried and tested money-saving strategies. 

Be it searching for discount coupons, using financial apps, or making small investments, there’s plenty of things you can learn to lead a financially stable life.

Here’s how you can go about it.

Best money-saving tips to stick to in 2021:

Following are some of the best money-saving tips you should apply in 2021:

1. Create a new budget

It may sound cliché, but to have a great financial year you must have a fresh start. Your first step should be creating a budget from scratch. We all know budgeting is the foundation of a financial tree. 

Your financial needs are specific to you. This means you cannot imitate somebody else’s footsteps to achieve your financial goals. You need to create a system that works for you.

You can get inspired by the people with a successful financial life. However, pick only those habits that work for you. If you want a budget that is easy to follow, make it natural and specific to your financial needs.

To create a budget that works for you, follow the following steps:

• Get a hold of the basics:

Before creating a budget, you must know the basics including your income and your expenses. Keep track of your current cash flow to create a new budget.

• Three pillars of an effective budget:

Every effective and successful budget requires three pillars including automation, tracking your expenses, and an emergency fund.

• Add your values to your budget:

Your budget should be personal to your financial needs. Therefore, before creating a budget, you must identify your values and incorporate them to create a budget that works.

• Select the right budgeting principles:

Choose the right budgeting principles to adhere to. Not every budgeting principal will work for you. Select the principles that suit your lifestyle and your financial goals.

• Create a frequency budget:

Breaking your budget into smaller chunks makes your financial goals more achievable. Dividing your budget into a smaller pay-check-sized frequency budget will make it easier to keep track of where your money is going.

To create a budget that works, you need to set achievable financial goals. This way you will not burn out and quit when your budget doesn’t work for you.

2. Do a “No spend” month challenge:

This money-saving hack is as simple as it sounds. All you need to do is not to spend anything for a month. This does not include essentials for example groceries, fuel expenses, utility bills, rent or mortgage, and insurance payments. 

All you need to do is to say no to additional expenses for a month.

You can cut down various expenses such as non-essential products, coffee, pre-prepped lunches, takeaways, meal deals, movie tickets, and more. 

You should set yourself an end goal and cut down extra expenses to save a fortune. The “no spend” month challenge will put you on the right track to achieve financial goals.

It will be difficult in the beginning but will get a lot easier as days pass.

3. Invest smartly with fintech:

If you want to grow your capital, you should invest smartly. Today, various technologies enable better finance management. 

Whether you are saving for post-retirement life or to pay for your child’s college tuition, using fintech makes it easier for you to achieve your financial goals. 

 Finance technology helps those who are new to financial management or find it hard to stay consistent with their money-saving practices.

• Fintech solutions for smart investment:

For those who are investing for the first time, it can be a scary experience. However, with the latest fintech tools, it gets easier to automate your finances. These tools keep you on the right track and guide where to invest.

You can create an investment portfolio with fintech. It should be based upon the amount of time you want to keep your money invested as well as your financial goals. 

Having an investment portfolio ensures smart distribution and diversification of money. This distribution is based upon your monthly expenses.

Fintech apps allow you to:

• Invest money in a savings or retirement account
• Automate a specific percentage for every part of an investment portfolio
• Distribute of money based on factors such as tolerance to risk

4. Work towards increasing your income:

No matter which stage of life you are at, you should work towards increasing your income. It gives you financial security and makes it easier for you to achieve your financial goals. it doesn’t matter if you have single or multiple streams of income, you should always try to increase your all-around income. 

Having a plan for the future keeps you on the right track and allows you to achieve your goals faster.

You can increase your income in four ways including:

• Working to get a promotion at work
• Get a pay raise while working at your current position
• Look for a higher pay job
• Invest in a business

5. Comparison shopping:

One of the best ways to save money is to shop smarter. This can be achieved through comparison shopping. Before purchasing an item online, look for its alternatives and compare them in terms of pricing. Compare their pros and cons and choose the option that suits your need the best.

With the entire world under lockdown, it is safer to shop online.

Smarter shopping includes waiting for your desired item to get on sale. One of the common mistakes people make while shopping online is forgetting to compare the store, product, or service.

Various browser extensions provide you access to a variety of deals for various eCommerce platforms. You can utilize Buy One Get One (BOGO) offers and find free shipping on your desired.

One of the best Chrome Web Store extensions you can use is the Amazon exclusive extension. You can use this extension to compare stores and make online shopping a lot more convenient.

6. Using discounts and promo codes:

According to the latest data on coupon redemption, over 90% of consumers utilize coupons in one way or another. Paper coupons were extremely common in the past. 

People used to cut out coupons from newspapers to redeem in-store while shopping for groceries and other essentials. While they are still popular today, digital promo codes are gradually taking their place.

These coupons are available on mobile apps, social networks, websites, and emails. In 2019, over 25 million people in the US redeemed coupons through couponing apps to save money on their purchases. 

Coupons allow people to save money regardless of their social status. If you want to save more money in 2021, you should redeem as many coupons as you can.

Wrapping up!

2020 has been one of the life-changing years for most of the world. The increasing uncertainty is causing more people to get into the habit of saving. 

There are various money-saving tips you can follow to make 2021 one of the best financial years of your life. By following the above-mentioned tips you can add more financial balance to your life.

How Loans Can Keep You From Falling Behind Financially

Many people are currently out of work but still need to pay their bills. This causes people to drastically fall behind financially. Even if you have money saved for a rainy day, an unexpected financial crisis can put you in debt.

Back in the day, you could borrow money from your loved ones to get by and they could live comfortably until you paid them back. However, it's likely that even their finances have become tighter, so they may not be as open to loaning large amounts of money.

Some people may feel skeptical about getting a loan depending on how much research they have done. However, taking out a loan from reputable businesses can be the best financial decision you can make. Here are a few ways loans can improve your financial standing.

Avoid High-Interest Rates.

When it comes to lending options, getting a personal loan is one of the most flexible options available to you. Some companies give you between six months to ten years to repay the loan back depending on their policies. 

When you commit to a long-term payment plan, you also have a fixed interest rate, which is less than having to pay multiple bills at once.

Once you’re in decent financial standing, you can even get in good standing by paying a bit more than your minimum monthly balance. As long as your lender doesn’t require a prepayment fee, you can get ahead while saving hundreds or even thousands in interest.

Consolidate Major Credit Card Debt.

Credit cards are a great thing when you can make the payments on time. Unfortunately, falling behind on bills typically means you’re unable to pay your credit card bills every month. On top of late fees, credit cards notoriously have high-interest rates.

Taking out a personal loan allows you to combine your credit card debts and pay them off in a shorter time period. Even if you still have a remaining balance, you’ll ultimately pay less money than if you don’t consolidate your credit card bills and utilize a loan to pay them off. Best of all, you can raise your credit score, which creates a large number of financial opportunities for you.

Like any lending option, personal loans can have ups and downs. However, they are a great way to help yourself when you're in a financial bind. 

Be sure to do plenty of research so that you can find a reputable personal loan company like Right Trac Financial. By taking the time to identify your options, you will be able to find a variety of different loans that can help you maintain financial stability.

How to Decide When It’s Time to Sell Your Home

Selling your home is not an easy decision. You will require to consider several factors and also be ready to leave the place you have known to be your home for years. 

Here are things that can help you decide whether it is time to sell your home.

Your Home Has a Positive Equity

Equity refers to your home’s value minus home loans. Having positive equity is one factor that can help you decide if it is time to sell up. 

Consider whether, after selling your home and clearing the mortgage balance, the remaining amount will cater for a new home’s deposit, the cost of moving, and sale settling.

You Feel Emotionally Prepared

Am I ready to move and sell my house? If you have been actively searching for modern real estate lists and wishing to live in one of them, you are ready to vacate. 

Selling your home may be overwhelming since you need to prepare it for sale. You should also be ready to digest any negative feedback the potential buyers, realtors, or home stagers give.

Your Family Has Outgrown Your Home

If you bought your home when you were still single and now have a family, you might require a bigger house. If you find that your kids require their bedrooms or your parents have moved into your home and need their own space, it might be time to sell your home.

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You Are Financially Prepared to Move

Apart from equity, it is important to have some savings in your account. Do not depend solely on your equity because the costs tend to stack up pretty fast. 

When deciding to sell your house, you should consider the moving cost, cost of repairing your home before advertising it for sale, and the amount of the new mortgage. Ensure that you do not have any debt and have enough cash to sustain you for a few months.

You Want to Downsize

When kids mature, they move out of their parent’s home, which makes the home so huge for their parents. If this is your case, you may decide to sell your home since managing the upkeep

does not make sense. You can choose a cozier but smaller home that doesn’t make you feel empty.

Finally, if your finances are in order and the current market suits you, it might be time to sell your home. Selling your home might be beneficial to you, so consider the above things when making this huge decision.

Tips for Affording a Better Home for Your First Purchase

Buying a home for the first time is one of the most financially difficult processes you're ever likely to go through. If you have things lined up in advance, though, you should be able to afford a home you truly love. 

Here are four tips for affording a better home on your first purchase.

Clear out Old Debts First

Before you buy a home, it's a good idea to clear out some of your other debts. Car loans, credit cards, and student loans will all put a monthly drain on your finances, limiting the amount you can afford to put toward a house payment. 

If you retire these other debts, though, you will be able to pay a higher monthly amount for a better property.

Save up a Significant Amount for Your Down Payment

Assuming you have good credit and a decent income, the price of the house you can buy is mostly limited by the amount you're able to put down. 

As a result, it's a good idea to build up a large down payment fund before you begin seriously looking at houses. If you have to, you can use all of this fund to buy a more expensive home. 

If you find something you like at a lower price, you can instead use the extra money for improvements or to reduce the amount you have to borrow when you buy.

Have an Experienced Real Estate Agent in Your Corner

When it comes to getting the best price on a house, few things are as important as having a good real estate agent. An experienced agent can help you put together a reasonable offer on the house and determine what the seller will likely accept. 

Working with an agent who knows your local market will make for a smooth buying process and the best possible final price.

Don't Skip on the Home Inspection

In addition to making sure the home, you're buying is safe and up to date, a home inspection is an invaluable tool for price negotiations. If an inspector finds previously unidentified problems, you may be able to negotiate for a lower price that reflects the true condition of the property.

As with your agent, it's important to choose an experienced and reputable home inspection contractor.

With these four tips, you should be able to afford a great property. A bit of planning and preparation goes a long way, so going into the purchase process with everything lined up will give you the best chance of snagging a great price on your future home.