Credit Archives - Penny Thots

10 Effective Ways To Reduce Your Student Loan Debt

Student loans are an enormous economic burden for Americans, coming in right behind mortgages as the largest kind of consumer debt. And although student debt is often used as a political talking point, you can rest assured that for now, your student loans aren’t going away. There are, however, some ways you can reduce the burden of your student loan debt by pursuing better loan terms, shorter repayment periods or lower monthly payments. Here are 10 potential ways to improve your student debt scenario. 10 Tips To Reduce Student Loan Debt #1. Ask For Employer Assistance Government employers have long offered loan repayment assistance or tuition reimbursement programs. But more private companies are now initiating student loan assistance … [Read more...]

Ways Your Bad Credit Is Affecting Your Car Loan

Having bad credit is one thing, but getting a car loan while having bad credit is another. Your credit score has a big impact when trying to get a new car loan, as lenders usually look at your credit report before deciding if they will finance your car. Although some companies offer bad credit car loan, it is always wise to keep your credit score in great shape, especially if you are fond of borrowing from lending companies. This is because your credit score and report determines if you are capable of paying a loan back. People with a high credit score usually make their payments on time, thus, they have a high probability of paying their future dues before the deadline. And as a result, they rarely have issues with getting approved for … [Read more...]

Your Complete Guide For Increasing Assets And Decreasing Liabilities

There are two ways to increase one’s net worth: increase assets or decrease liabilities. That is all there is to it. It really is a simple equation in principle but very difficult in practice. This is because we are conditioned by the media, our friends, and many other external influences to think that we need this or that such that when we spend our hard earned money on these items, we really aren’t doing anything to increase our net worth. Why Track Net Worth? Tracking your net worth gives one an idea of financial progress. It is calculated by adding up all of our assets and then subtracting the sum of all of our liabilities. The resulting number is your net worth, which can be positive (meaning you own more than you owe) or negative … [Read more...]

3 Reasons To Pay Attention To Your Credit Score

Most people don’t spend a lot of time thinking about their credit scores. There are so many details to keep track of in life, and a credit score might seem like a figure that doesn’t have much relevance to everyday life. However, your credit score is a layer running beneath your whole financial life. It determines whether or not you’ll be able to borrow money (and at what price), how much access you’ll have to good housing and jobs, and how much money you’ll likely be able to save over your lifetime. We’ll break down these ideas below to help you appreciate the importance of a credit score. 3 Reasons To Pay Attention To Your Credit Score #1. Borrowing Money Your credit score is perhaps most relevant to the price and availability of … [Read more...]

How To Handle Debt & Maintain Your Mental Health

It’s no secret that most people feel lousy when they’re in financial trouble, and one of the biggest financial stressors seems to be debt. When you’re in debt, simple tasks like going to your mailbox, where you anticipate finding an avalanche of bills or overdue notices, can bring on stress. If you relate to this feeling, you aren’t alone. According to a Time article, there are a plethora of Americans in an excessive amount of debt. In fact, the Federal Reserve reported at the end of 2015 that, on average, an American between the ages of 18 and 64 has $4,717 in credit card debt. So aside from being a burden on our wallets, what does this debt do to us? “Financial issues are a common source of stress,” Dr. Jay Winner, director of the … [Read more...]

6 Signs That You May Have Too Much Debt

Personal consumer debt has reached such high levels that if it were a disease the World Health Organization would have announced a pandemic; a dangerous one, like avian flu or the plague. Since debt is not an illness and the main institution that is supposed to monitor it profits from its rising levels we tend to ignore the symptoms until, in some cases, it is way too late. There are straight forward ways to know, once and for all, whether you are in debt and how much: you work out the 4 numbers I was telling you about in my previous post. I know that most of you won’t, though. How do I know? I know from experience – certain knowledge is painful and we tend to do everything possible to avoid pain. So today, I am not going to ask you … [Read more...]

Do Balance Transfers Actually Create Indebtedness?

A balance transfer is a great option to work down your debt by moving it from an existing credit card to one that charges low interest or even 0% for a specified period, thereby helping you save money. For example, if you have accumulated credit card debt at an average rate of 18% interest and you switch the balance to 0% interest card, you will pay just the principal on your debt until the promotion period ends, which could be as long as three years or longer. It works like an interest-free loan. Now, doesn’t that sound like a great deal? But don’t get too excited yet. Issuing companies are smarter than you think. They offer you 0% because they can find plenty of ways to make again if you make mistakes or don’t stick to the … [Read more...]

Easy Steps You Can Take To A Better Credit Score

Having a good credit score is important for several reasons. Lenders reward loan applicants who have higher credit scores with better interest rates. You can save thousands of dollars over the life of a loan simply by having a lower interest rate. A higher credit score can also help you qualify for a car or home loan. Some places of employment, such as businesses in the financial industry, may require that their employees have fair credit ratings. There are several ways that you can raise your credit score. Choose Cards Carefully Several stores offer special promotions for customers who will open an account with them. It can be tempting to sign up for these offers when you are making purchases at a store. If you do not have any credit, … [Read more...]

The Downsides of Loan Modifications

Have you heard that a loan modification could be the answer to your dreams? In some cases, it decreases mortgage payments and protects your credit score. However, on the other side, there are significant risks you take regarding your credit, especially if not approved for the modification. Here are the six downsides to a loan modification. The Program Will Not Help You If Unemployed The first downside of a loan modification is to realize, you may not qualify off the bat. The purpose of a loan modification is to help reduce your mortgage payments based on your pre-tax income. However, while unemployment is income to you, it is not considered the qualifying income under the Home Affordable Modification Program. Submitting Lower Payments … [Read more...]

Debt Crisis 101: Seven Steps to Taking Charge

Debt is a bad thing, true. But this is not all. Probably the worst thing about debt is that it creeps upon you and surprises you; so when most people discover that they have debt, they are already in crisis. Now, I have always believed that crisis is a good thing: we need crisis to change dramatically and grow. Many great and beautiful things are born out of crisis. However, we are only human and the first human reaction to crisis is often panic. Don’t panic! Just follow these seven steps to take control of your debt crisis! 7 Seven Steps To Overcome A Debt Crisis Step One: Look At Your Income and Expenses Look at your income and expenditures; if you have looked recently, look again – this time properly. Make sure that you really know … [Read more...]