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How To Get Out Of Debt & Stay Out

December 18th, 2016 Posted in financial education, financial literacy
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The decision to get out of debt is always a good one, but it’s often hard to know where to begin – especially if the debts you have are quite large.

While the scary numbers will cause many people to bury their head in the sand and choose to ignore it, taking the first step to eradicating the debt from your life is a crucial step in the overall process, and one that, if you stick to it, will help create a much better relationship with money in the future, even if it wasn’t taught to you as a child.

Below are some tips on how you can begin to, not only get out of debt, but actually stay out.

  • Get honest with yourself: so many people are afraid to open bills as they start mount up, but this avoidant behaviour can lead to serious problems down the road, so no matter how scary it seems, you need to open those letters and face them head on. In most cases, the idea of something is much worse in our head than it is in reality, and you normally find that it’s a loss less intimidating once you know what you’re dealing with, and that it’s a lot less in terms of numbers, too. You need set aside a couple of hours one day and go through everything you owe, then either write it down, or put together a spreadsheet.
  • Make a plan: if you’re going to pay off all your debt, then you need to really make a strict plan for yourself that you know you’ll stick to. How you choose to pay things off is really up to you – you can choose to pay small amounts towards each debt, or you can focus on one debt at a time, but what’s important is that you have a plan with a deadline that you can realistically achieve.
  • Reach out to those you owe to: this is actually a pretty important step that many people overlook because they either find it too scary or don’t think there’s any point in doing it, but in actual fact, reaching out to those you owe money to can help you in a big way. All you do is either write to them or call them, and explain your situation.

You can ask them for a payment plan and really let them know that you’re ready to pay everything back. In most cases, they will be more than happy to work with you, and typically they will waive the interest as long as you stick to the payment plan you agreed with them. As interest that keeps adding up is really one of the biggest issues when controlling debt, then this can make a huge difference.

  • Consolidate: if you just want to be done with the debt as quickly as possible and bring everything into one single payment instead, then looking for a way to consolidate your debt is a good idea. There are a few ways to do this: one would be through a loan from someone like Enness Bridging Finance – the other would be to speak to a debt consolidation agency who work on your behalf with the companies you owe money to. Usually these companies can get the interest, and instead of giving you a cash loan, they basically take on the debt and then you agree to pay them a small monthly amount which they divide across all of the people you owe money to. Doing it this way obviously takes longer than a loan, but it’s a good way to go if you can’t afford to pay back a loan or have trouble obtaining credit.
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Don’t Be Ripped Off: Unmissable Advice You Need Before Paying Out For A Service

December 14th, 2016 Posted in Money Tips
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When you need some work doing to your property, it can be an expensive time for your family. After all, you might have to pay out a fortune for a service. In fact, it’s sometimes best to get some money advice before getting yourself into debt paying out for a service. And you also need to be careful about the business you are going with for the service. After all, you don’t want to end up getting ripped off. Here is some unmissable advice you need before paying out for a service so that you don’t get ripped off.

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Always research the business first

It’s best that you do some research about the company before you agree to let them work in your home. After all, you don’t want to choose a business that will do a poor job and end up leaving you out of pocket. Therefore, look online and check out their website. You should be able to work out if they are a legitimate company from their online presence. After all, so many companies now have a website and social media page if they are a good company. Also, you might want to ask around friends and family just in case they know someone who has received work from the company before. That way, you can feel happier that you are not making a financial error with the enterprise.

Make sure you have the quote in writing

Before you agree to the service, you need to make sure you have a full quote in writing. That way, you know exactly how much you have to pay out for. After all, you don’t want to get any costly surprises at the end of the work. Otherwise, you might not be able to pay the company, and it can lead to financial woe for you. On the quote, you need them to write exactly what they are planning to do. That way, if they don’t do what they promised, you have a document that you can take to court. And then you can claim off the company’s assets so that you can get your money back; you can get asset searches by a pro investigator to ensure they are worth suing! And make sure you both sign the quote so that you can’t be accused of not making it a binding contract. Remember to always read the small print too, so that they don’t have any clauses which allow them to charge you more!

Ask for references

If you have never heard of the company before, it’s a good idea to ask for some references. After all, you can feel like you are not making a bad error by working with the company. If possible, also ask them for photos of the work they also did previously. If they can’t give you any references or photos of past work, it’s worth looking at a different company so that you don’t make a costly error!

And remember to make sure they have valid insurance. That way, if something goes wrong, they will be able to fork out for the problem to be sorted quickly!

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Are Your Kids Ready For Their Inheritance, Or Will They Blow It All In Vegas?

December 14th, 2016 Posted in financial education, financial literacy for kids, teaching children about money
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Parents often worry about their inheritance. Most of the time, they’re concerned about the amount of tax that they’re going to have to pay. But they’re often frequently worried about how their children will manage their money once they’re gone. After all, they’ve spent their whole lives building wealth – it would be a shame for it to all disappear overnight thanks to financial mismanagement.

Other parents are worried that gifting a lump sum to their kids will rob their children of ambition. What’s the point of working hard and trying to find fulfilment if you’ve already won the lottery? As a result, more and more parents are looking for ways to prepare their children for suddenly coming into contact with wealth.

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One example of parents trying to avoid issues around inheritance can be found in the example of CNN anchor, Anderson Cooper. Cooper is the son of successful fashion designer, Gloria Vanderbilt, who is believed to be worth more than £150 million, according to Forbes. Anderson went on the Howard Stern show in the US and told the radio host what he thought about inheritance. He said that he didn’t believe in inheritance and called it a curse, saying it was an “initiative sucker.”

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So what should parents do if they’re concerned with leaving their children an inheritance?

Give Your Children A Financial Test

Parents can gift up to £3,000 a year, tax-free, to their children. Here’s an idea: use these smaller gifts to see how your kids react to receiving a large chunk of money. Do they wisely squirrel it away or invest it? Or do they blow it all in Vegas? It’s a good idea to see exactly how your kids react to having a relatively small amount of money before they inherit the entire $10 million estate.

Get Kids Involved In Your Personal Foundation

A private foundation can be a great opportunity to build wealth and teach kids about money. There are stories all over the internet of parents selling their businesses for a fortune and then using personal foundations to disburse that money over time. In one example, a man sold his business overnight for $25 million. He then created a personal foundation disbursing 5 percent of its balance each year to his children. Each child, however, had to donate 1 percent to their own cause, which the man hoped would increase their work ethic.

This is a good idea for your kids too. When they approach probate purchasers in the future, they’re more likely to put their money into a personal foundation, if they see themselves as stewards of the family estate.

Give Without Giving Cash

There’s an alternative to giving money directly, of course. An estate planning attorney, Jeff Lewis, says that some of his clients have used their money to pay down the mortgages of their children, rather than giving them money directly to do what they want with. Parents can use their annual gift allowance to do things in their children’s lives that will help them to be more financially free and reduce some of the annoying financial responsibilities that come with living independently.

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Having A Bad Credit Score Can Negatively Affect You – Here’s Why

December 13th, 2016 Posted in financial education, financial literacy
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Living the life of luxury and buying what you want, when you want is all well and good until it all finally catches up with you of course. Suddenly, the unnecessary spending seems like the worst thing you could have done and you’ll be tasked with having to explain to your kids why you can’t get them a new school uniform this year.

(Side note: teaching your kids about being responsible with money is hugely important and if you start now, you might be helping them to avoid the very same mistakes you’ve made that have led you here.)

Once you’ve sorted out a way to get food on the table this month, you must, must, MUST continue reading so that you can identify why having a low credit rating is so bad so that you’re determined to fix it.

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  1. Getting loans is going to be an uphill battle

When you have a bad credit score, obtaining a loan seems like an impossible task, and that’s because it usually is. The lower the score, the more you’re going to struggle to find a lender who will offer you a loan.

  1. You’ll be paying higher amounts of interest

If you’ve been applying desperately for loans and being faced with rejection time and time again, to then find that you’ve been accepted, you’re likely to take whatever you can and run with it. The problem with having a bad credit score is that you’ll encounter the really bad deals that come hand in hand with extortionately high interest rates. It’s well known that mortgage providers save their best loans (the ones with the lowest amount of interest) for buyers who have both a good credit score and a hefty deposit.

  1. Getting a roof over your head will be rather difficult

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Most landlords will want to run a credit check on you before you both sign above the dotted line and nothing will put a potential landlord off more than a wannabe tenant who has an awful credit score. Think about it – why would they want you living under their roof when you’ve proven in the past that you aren’t great with keeping up with payments or that you require the use of credit cards to help you get by from week to week?

If you do manage to find a landlord who’s happy to let you rent a place, you’ll probably find that you have a much smaller choice as landlords have previously admitted that they save their best properties for those with higher credit scores.

  1. The pre employment credit check isn’t going to be successful

So you’ve wowed your potential new employers during the interview process and they are all set and ready to offer you the job. A pre employment credit check is all part of the usual screening process during the hiring process as your employer will want to ensure that you don’t pose a risk to the business. They’ll be looking to see whether there’s any history of financial mismanagement and if it shows that you have a super low credit score, you might find that you never get that call with the job offer after all, even though you were certain you had it in the bag.

A study found that one in seven people have been told that they were denied a job due to a poor credit rating and if you’re applying for a job that involves dealing with money, government agencies or security clearance, you will definitely struggle to come out on top if your credit rating isn’t looking great to potential employers. You may want to consider using a credit repair agency or getting a full Lexington Law review

  1. Many a missed call

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You might also struggle to get a mobile phone contract. Whilst there are bigger and more important things to worry about (like finding a paying job and a place to live), not being able to have a phone is also a huge problem.Practically everyone these days has a phone and those who don’t are always met with suspicion. Mobile phone and network providers pay close attention when it comes to credit scores and if yours is bad, you’re far less likely to get yourself a month-to-month longer term (usually the cheaper ones in the long run) mobile phone plan.

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Won The Lottery? You’re Not Out Of The Woods Yet!

December 13th, 2016 Posted in financial education, financial literacy
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You might think that after winning the lottery, you’ll never have to worry about your finances again. However, after a little bit of research, you’ll quickly find that this isn’t always the case! Countless jackpot winners through history have found themselves in situations where they wish they’d never even bought that winning ticket! Though your win may have covered a few immediate financial problems, you’re not out of the woods yet! Here’s how to protect your winnings and make them work for you.

Choose Between a Lump Sum or Annuity

This is one of the first things that a lottery winner will have to decide on, and many different factors go into it. With the sheer amount of money you have coming your way, along with the earnings you’d gain from it, you could quickly find yourself in the highest tax bracket, and staying there for a long time. Talk to a financial advisor, and figure out if you’d stand to make more from investing the lump sum than what the annuity will pay over time. Generally, you’ll find it much easier to make projections with an annuity compared to a lump sum. Though the decision may seem like an obvious one right now, there are a lot of factors you’ll need to chew over before settling.

Get Used to Saying No

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If you choose to go public as the winner of a lottery jackpot, you won’t have long before you’re bombarded with messages from various family members, friends from way back, and various other people all asking for your money. One of the less pleasant aspects to being a lottery winner is having to learn to say “no” here and there. You’ll have plenty of time to consider hand-outs which you genuinely want to go ahead with, so don’t feel pressured by all that attention! There are people out there who won the lottery years ago, and are still getting requests for money. A jackpot is a lot of money, and in order to create a solid financial plan, you need to have a period where you leave your winnings relatively untouched.

Don’t Rush Through Financial Decisions

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One of the most common financial mistakes made by lottery winners is that they make large financial decisions without taking the time to think them through properly. Aside from the choice of how you’re going to receive your winnings, investments, and miscellaneous things like structured settlements, the sudden financial freedom can really go to a lot of people’s heads, and lead to some seriously rash behavior. Despite how you’ve always envisioned a win like this, you don’t have to give massive, extravagant gifts, buy luxury homes, or commit to any risky investments as soon as you have access to your money. You should take it slow, gradually learning what it means to have a massively different economic status, before you start thinking about the steps that are going to make the most sense for you and those you care about.

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