by Admin | Mar 1, 2017 | Finance
Before you take any action, however, you need to know exactly where you stand financially. Look over all your outstanding debt – credit cards, car payments, mortgage or rent, student loans – to help you determine where you are and which obligations have priority. These tips from Wells Fargo can help you responsibly manage your debt and strengthen your credit situation.
* Organizing debt: Not all types of debt affect your finances equally. Collect recent statements from all your creditors. Write down the creditor, amount owed, monthly payment and interest rate on your account. Knowing which debts have the highest minimum monthly payments and interest rates will help you determine which debt is costing you the most.
* Prioritizing payments: Examine where you can cut back on expenses, and put that money toward your debts. Try paying off your debts with the highest interest rates as quickly as you can, while continuing to pay at least the minimum due on all of your other debts each month. Once you’ve paid off the credit card with the highest interest rate, put that money toward the next highest.
* Calling creditors: If you can’t make a payment or need to make a partial payment, talk to your creditors about setting up a payment plan you can afford. You may be surprised – many creditors will be willing to work with you to find a solution.
* Refinancing your mortgage: If interest rates have dropped since you took out your mortgage loan, consider refinancing to lower your monthly payments. If refinancing isn’t an option, consider other options to repay your loan more quickly. For example, sending additional principal payments with your regular payments decreases the loan balance and reduces the overall interest owed.
* Seeing a credit counselor: These professionals will need to see all your financial material so that they can help you explore your options and make a plan to get you out of debt. To find a reputable credit counselor, Make sure the credit counselling agency you choose is in good standing with a provincial or national credit association, such as Credit Counselling Canada. Be sure to also check their standing with the Better Business Bureau. Make sure the credit counselling agency is not the subject of any serious unresolved complaints, such as not paying creditors on time or making false promises to clients.
* Consolidating your debt: You might want to consider combining all of your debts into a single loan. This allows you to pay off your debt with one monthly payment, which could be lower than all of your previous monthly payments combined. It will also make it easier to keep track of your debt. Keep in mind that a debt consolidation loan simply transfers the debt to a new lender – you’ll still have debt. Additionally, if your consolidation loan has a longer repayment period, it could increase the total amount you repay. You can pay the loan off faster, of course, by making more than a minimum payment each month.-
There is hope if you are in debt. Creating a manageable plan to chart a path out of debt can give you confidence in knowing that you are in control of your finances and improving your credit health. For more information, visit the Wells Fargo Smarter Credit Center, www.WellsFargo.com/smarter_credit.
by Admin | Feb 22, 2017 | Buying, Real Estate Information
Preparing to buy a home requires more than just a down payment. Before you purchase property, take time to understand your available mortgage options and balance your debt load. Thorough planning and smart budgeting now can help you avoid running into high debt or repayment problems down the road.
Farhaneh Haque, director of mortgage advice at TD Canada Trust, says that first time home buyers should answer three important questions before they start hitting any open houses this season.
1.) Do I understand the process?
It never hurts to meet with a mortgage specialist to learn more about the home buying process and the different mortgage options available, such as fixed versus variable rate mortgages, flexible repayment schedules, and even mortgages that offer cash back. Before falling in love with a home, consider getting pre-approved so you know what you may be able to afford and avoid getting disappointed by falling in love with a home that is outside your price range.
2.) What is my personal debt load?
If you have other obligations like a car payment or student loan, ensure you are taking on a mortgage that you can manage within your total budget. Try using an online debt management calculator to help determine how much debt you can reasonably take on based on your income, current debt payments and expenses.
3.) Can I afford my mortgage and save for the future?
Sometimes home buyers take on more debt than they can manage and quickly find themselves “house poor” – with no money left for future savings or a rainy day. Before you take the leap into homeownership, crunch the numbers to ensure your budget reflects the lifestyle you want after you move into your new home, and you are clear on what sacrifices you may need to make to continue to live comfortably and save for your future.
by Admin | Feb 15, 2017 | Tips and Tricks
(BPT) – Living a greener lifestyle isn’t just about conserving natural resources, it’s also about saving money. Whether you’re renovating your existing home, or building from the ground up, you can create a home that’s more efficient, cost effective and “green.”
1. Insulate against air
In terms of heating and cooling, a well insulated home conserves the most energy by creating an airtight seal, locking out any potential hot or cold air drafts. To properly insulate, replace old windows and doors with more energy efficient options, such as triple-pane glass, and add extra insulation to the walls, roof and basement.
2. Make energy-efficient choices
Inefficient appliances can cause a spike in your gas, water and electric usage. For a simple change, choose LED bulbs for all your light fixtures. To conserve even more energy, opt in for high-efficiency upgrades for your larger appliances, like refrigerators, dishwashers and clothes dryers, and install water conserving bathroom fixtures to help cut down your home’s overall water usage.
3. Maximize natural light
When you’re able to rely on natural light for most of the day, the cost of your electric bill decreases. If you’re renovating, think about ways you can incorporate new window openings to increase the amount of natural light your home is currently receiving. If you’re building, think about incorporating an open floor plan with lots of windows to maximize the flow of natural light from room to room.
4. Design it to last
Trends come in and out of style quickly. For the larger architectural features of your home, choose design elements that will stand the test of time – reducing the likelihood of another renovation. Leave the trendy design choices to smaller decor pieces that can easily (and inexpensively) be switched out when it’s time for a change.
