Debt includes all the money you owe. It can be credit card debt, student loans, mortgages, medical bills and car loans. Most Americans will carry some amount of debt, but sometimes the debt can get to be overwhelming. Learn here how to manage your debt and personal finances.
Monthly Debt Effects Mortgage Loan Eligibility
Any time you take out a loan, whether it is personal, credit card, school, auto, or a mortgage, it lowers the total amount you can borrow to buy real estate in the future. Mortgage lenders take a look at your monthly debt service and subtract that number from the total amount you have available to pay your total debt service.
Tough Choices For Home Owner In Debt
What most folks don't understand about credit these days is that almost no one is turned down. Although your credit score may not be the highest, it may be good enough to get a line of credit or a home equity loan at a fairly decent rate. If you can refinance your mortgage and take out some of the equity that you have, you may be able to do some of the repairs and improvements you need to do to continue living there.
High Debt And Low Credit Score Spells Trouble
A homeowner and business owner has a low credit score and extremely high credit card debt but wants to refinance an investment property. Having high debt and a low credit score is a bad combination to try to get a mortgage. A high interest rate will be the likely result of trying to refinance with the low score and high debt.
Understanding Home Lenders Debt To Income Ratios
When creating a budget it is important to understand what percentage of your income should be going to you housing costs. The 28/36 debt to income ratio is commonly used by home lenders. Lenders will allow you to spend up to 28 percent of your gross monthly income on your mortgage, real estate taxes, and homeowners' insurance premium. The 36 number refers to total debt.
Managing Financial Priorities While In Debt
What is the best day to pay off debt while managing financial priorities? A good start to paying down your debt is getting on an interest-free payment plan while keeping track of every expenditure. The key thing about paying down debt is making sure you keep your credit score as high as possible.
Budget and Save Money to Become Debt Free
If you're drowning in a pool of debt, it may be time to budget and save money. But some money coaches say it's more than budgeting, saving money to become debt free is all about a life-style change. The way to financial freedom includes finding out what you're spending on, deciding which items are most important, building a budget and saving money on things that you can do without. This will help you become debt free and allow you to save money for retirement.
Deal With Holiday Debt
Carrying a load of debt could cause your credit score to suffer. While some consumers will pay off their December credit card bills in full, more than half will spend months paying off the $1,500 in presents and holiday cheer they charged. If you pay even one bill late, you'll be paying for that mistake over and over again. Other credit card companies will use that one late payment as an excuse to jack up your interest rate even if you've never paid a single bill late for that particular credit card.
Completing Debt Management Program And Credit Score
When you get behind in your bills you may decide to participate in a debt management program from a non profit credit counseling agency. What happens to your credit score when you complete the debt management program? If you've successfully followed the debt management program your credit history may look better and your credit score may increase.
Good Advice about Money and Life
Looking for some good advice about money? Try focusing on leading a simple life and staying debt free. Keeping life simple and avoiding debt allows you to spend less mental energy and financial resources on material possessions. In the end, you'll have more than you need, which is a great way to live.
Student Loan Debt Over Mortgage Debt
Should a student who wants to buy a house pay for graduate school with savings or take out a student loan? While interest rates for mortgages are extremely low, interest rates on student loans are even lower. Not only that, but you can defer repayment on your student loans until six months after graduation, and some of the interest is deductible on your federal income taxes.