Glance through the financial tips for the 3rd week of July 2011
Tip no 1 - Self help is debt help
Completely true! If you are going through debt problems in life, then you should try to solve it yourself. You can browse through different personal finance websites and gather knowledge on the tips to become debt free. This will help you avoid paying the fees charged by the companies offering debt relief programs to the consumers. You won't have to depend upon a third-party to resolve your debt issues. Apart from that, you can gain substantial knowledge on how to manage your finances perfectly. This way you can avoid getting into a debt crisis in future.
Tip no 2 - Rather go to bed without dinner than to rise in debt
This comment by Benjamin Franklin deserves a special consideration in the present economic scenario where millions of consumers are engulfed with debt. You should try to manage your personal finances efficiently. Try to maintain your expenses within your income. Follow a frugal budget in your daily life. Avoid using credit cards to fund your dinner when you don't have money to afford it. You'll not die if you skip one dinner.
Your main motto in life should be to keep your debt problems at a minimum level. Better don't incur debt at all! Lead a simple life and try save money regularly.
Tip no 3 - Consider a lesser mortgage amount than the maximum you can afford
You should determine the maximum home loan amount you can actually afford. This will help you avoid getting debt problems in future. Use mortgage calculators to determine the amount you can easily afford. If you take out a huge loan which you can't possible repay, then you'll definitely get into mortgage debt problems in future. You'll get delinquent on the loan and your credit score will drop significantly. Your lender can foreclose the property against which the loan has been secured. This means you'll lose your property. Surely, you'll not want to get into this kind of a situation in future.
Tip no 4 - Always make a list while going for shopping items and don't buy anything that’s not in your list
Yes, you should note down the items you need to buy in a piece of paper before hitting the nearest local departmental store. Go to the shop and buy as per your list. You will find a wide collection of items displayed in the shop. You may even be tempted to purchase some of the items. But you should resist that urge by all means. It is a sheer waste of money to buy the items you don't possibly need. You should inculcate this habit to your kids also. This way, they will never waste money when they grow up.
Tip no 5 - Before purchasing an insurance policy, go through the policy exclusions
When you go to an insurance company for buying a policy, you should read its terms and conditions thoroughly. Every insurance policy provides you with some coverage and with a few exclusions. You should gather knowledge on both the coverage and the exclusions. This way you can have a clear idea as to what you will actually get from the insurance policy.
For instance, if you work as a salesman for a certain period of time, then don't think that the auto insurance company will provide coverage if you meet an accident. This is because commercial deliveries are usually excluded from such insurance policies.
With proper help you can
- Lower your monthly payments
- Reduce credit card interest rates
- Waive late fees
- Reduce collection calls
- Avoid bankruptcy
- Have only one monthly payment