A Brighter Future: 5 Reasons to Get Out of Debt

When credit card debt, student loans, or medical bills have become a consistent part of your life, the prospect of getting out of debt can sound overwhelming. But the truth is that no matter how large or small your debts may be, there are time-tested strategies that can help you get back on your feet. And though the road to debt recovery can be challenging from time to time, the end result is well worth the effort. In this article we will discuss a few reasons why getting out of debt is so worth it.

 

1. Access Education. According to the College Board, the average cost of in-state tuition at public universities in the US is a little over $9000 per year. And although scholarships and grants may cover a portion of this cost, the truth is that taking out a loan and/or dipping into savings funds are usually necessary strategies. Getting out of debt is the first step toward helping yourself and/or your kids to achieve those big dreams about higher education!

 

2. Become a Homeowner. Even for people who are quite well-off, a home loan is usually necessary in order to make such a large purchase. This underscores once again the importance of good credit and a low debt-to-income ratio.

 

3. Increase Your Mobility. Another common problem that people with bad credit suffer from is difficulty getting financing to buy a new car. So reducing your debt can be a great way of getting a better ride!

 

4. Prioritize Healthcare. Don't let medical bills be a determining factor in the healthcare choices you make: getting rid of medical debt is easier than you think!

 

5. Invest in the Future. Most financial experts agree that reducing debt is actually a more profitable expense of money than most investments.

 

For more information on reducing your debt in a sustainable way, visit Madison Monroe and Associates online today!

Three Things to Do Before Selecting a Realtor

Buying a home is the dream of countless renters -- and even though owning a home doesn't guarantee financial security, it is oftentimes a good investment. As long as you buy within your budget, make payments regularly, and take care of the house and the property, owning a home can be a great way to increase your net worth while paying for the necessity of living space. That is one important reason why homeownership is such an important aspect of the “American dream”.

 

As much potential as purchasing a home does offer, it can still be an intimidating process -- especially for people who are buying their first home. If you are unsure how to go about buying a house, then this article can help you get through the initial stages of the process up until you have an experienced realtor guiding you.

 

Step One: Research. Here’s the good news: if you are reading this article, then you are already doing something right! If you are planning on buying a home, then you should learn as much as you can about the home buying process, your local real estate market, your local realtors, etc. Knowledge is power, and the more you know about buying a home, the better!

 

Step two: Budget. Most financial experts recommend that your mortgage payments should not exceed 28 percent of your monthly income. With that in mind, check out this mortgage payment calculator to estimate the budget you can allot to buying your new home.

 

Step three: Pre-qualification. Contact banks in your area to get pre-qualified for a mortgage. This process is relatively straightforward -- the banks will simply give you a rough idea of how much you can afford to take out on a loan. If your credit is poor, this may not be enough to buy within the budget you had allocated -- in which case you may wish to work on improving your credit score before beginning the home purchasing process. If you can afford a home within your budget, however, then you are ready to begin searching for a qualified realtor to begin the home purchasing process!

5 Health Conditions Associated With Excessive Debt Problems

It’s easy enough to see how illness can cause debt. Even for the financially responsible, an unexpected health condition can lead to thousands of dollars in insurance deductibles and medical travel expenses, and this doesn’t even begin to cover the financial impact that needing to take time off of work can cause.

 

What might not be as obvious, however, is that the relationship between debt and illness goes both ways. In other words, not only can illness cause debt -- debt may actually be a contributing cause of illness, as well.

 

A recent BMC Study on Public Health came to this exact conclusion, stating that “indebtedness” was impacting patients negatively by causing stress, impacting their relationships, and causing them to make unhealthy choices such as skipping checkups and eating poorly.

 

Here are a few of the most common health conditions that debt can help cause and/or exacerbate:

 

1. Anxiety. The link between anxiety and debt should be fairly obvious: we all worry about money from time to time, and for people with clinically significant levels of anxiety, falling into debt can complicate treatment.
2. Depression. Feelings of worthlessness and guilt, inability to focus, and persistent low energy are all listed among the most common symptoms of depression. And, even though a person’s worth is in no way determined by their financial status, society often tells us otherwise. This is just one reason why depression and debt is a bad combination.
3. Blood Pressure. Worry and stress can contribute to high blood pressure, which is one potential explanation of the correlation between high blood pressure and debt. Financial problems often impact people’s diets, however, which could also make a difference. We’ll talk more about that in the next point on obesity.
4. Obesity. Eating healthy, organic food is more expensive than eating canned food. And people who are in debt may be forced to work more than one job, which makes unhealthy fast food an attractive option compared with coming home and cooking after a double shift. And the prospect of paying for a gym can sound flat out ridiculous. These are all reasons why financial problems and obesity tend to go hand in hand.
5. Immunity. Studies also show that people who are in debt are more likely to be immunodepressed. This could be in large part due to the previous four factors listed.

 

Looking to free yourself of debt and live a healthier, happier life? Visit Madison Monroe and Associates online today to learn about our stress relieving debt reduction programs!

How To Help Your Teen Cope With Moving

WHAT IF YOU’RE TEENAGER DOESN’T WANT TO MOVE TO A NEW CITY?

You've got a new job offer across the country and you are planning to pack your things, buy or rent a new home and make the big move. However, when you tell your 17 year old daughter your plans, she lets out a mournful wail and cries that it is not fair. How can you possibly take her away from all of her friends, her favorite hangout spots and the cute boy she just started seeing?

Moving house is a difficult transition and it is even more traumatic for teenagers. The teenage years are an important stage where young adults establish their individuality and independence and during this time their social circle is extremely important to them. Being removed from that against their will can make any teen feel sad, confused, angry and resentful. Also, fitting into a new social scene in a different location can be a challenge for a teen that might be singled out as the “new kid".

How can you help your teen during this transition so that the experience will be easier on them?

Here are some tips that will make the experience of moving cities a little bit easier on your teenager:

Give them as much notice as possible so that they have time to adjust to the idea of moving. They will feel like they have enough time to say goodbye to their friends and close a chapter of their lives.

Try to schedule the move around the school calendar, as moving in the summer is much less disruptive to your teen's life than relocating in the middle of the school year.

Make sure that they have ample time to spend with their close friends before they leave and once you arrive, understand that they might go through a grieving process of missing their old pals.

When you get to your new home, make sure that your teen has plenty of ways to keep in touch with their old friends, such as an internet connection and a cell phone plan.

Encourage your teen to get involved in the community of your new hometown, such as joining sports clubs or attending events. This can help them to make new friends

Can they stay behind? Only recommended for kids 18 and over

In some situations, the better option might be to let your teenager stay behind. If they are in their older teens, they will have finished high school, maybe have a job and be independent people of their own. Perhaps they could stay with a family member or parents of a friend for a while until they are old enough to move out on their own. This might make them a lot happier in the long run, rather than taking them along with you if they really don't want to move.

Below are some links to help you with the transition:

How to talk to an angry teen: http://everydaylife.globalpost.com/talk-angry-teen-5913.html

Make new friends: http://www.lifehack.org/articles/communication/how-to-make-a-bunch-of-new-friends-in-any-new-city.html

Have a job: http://www.youngupstarts.com/2012/09/13/12-compelling-reasons-your-teen-should-work/ 

 

Ways To Pay Off Your Car Loan Faster

Want To Pay Off Your Car Debt Early?

 

We’d all like to live without the monthly stress of car payments. Here are a few pro-tips on how you can make this dream into a reality.

 

• Pay Half your Monthly Payment Every 2 Weeks. As small a step as it may seem, taking this initiative will eventually lead to you making 13 monthly payments per year. Just as importantly, it will help preclude the possibility of making late payments -- mistake that can damage your credit score and lead to pile-on debt.

 

• Round Up. Another small adjustment you can make that will pay dividends in the long run is to round up every monthly payment. According to Experian Automotive, the average monthly payment on a car loan is $493. Paying $500 is just a small sacrifice, (it may require giving up on frappuccino every two weeks), but given enough time this will save you substantial money in terms of accumulating interest.

 

• Never Skip Payments. Some car loans give buyers the option to skip one payment per year, supposedly free of consequences. However, even though you are granted clemency in terms of penalties, you will still be paying extra interest by not paying off your car loan as quickly as possible. Moreover, you will be setting a bad precedent for yourself. Bottom line: if you have a financial emergency, then it’s certainly nice to have the option to skip a payment. But if it’s not a bonafide emergency, just bite the bullet and pay up. Your future self will thank you!

 

• Refinance Your Loan. Getting a lower interest rate on an existing loan may be possible: research loan refinancing to see if this could be the right choice for you!

 

Struggling to make monthly car loan payments? If you’re in over your head in debt, Madison Monroe and Associates may be able to help. Visit us online today to learn how!

 

Tips to help you get approved for a Loan

There are many reasons to seek credit; ranging from car loans, to mortgages, to simple payday advances. If you are aiming to get approved for a personal loan, then there are a few steps that you can take in order to improve your odds of success. These include:

 

• Check Your Credit Score. You must know your own strengths and weaknesses in order to apply for the right types of loans, and this means checking your credit score. The three major credit bureaus in the United States are TransUnion, Equifax, and Experian: you can acquire your current score through any of these company’s websites. In addition to giving you a good idea of where you stand, having a credit report will also allow you to report any errors (which are more common than you might think) thus allowing you to boost your score instantly simply by correcting mistaken information.
• Take Steps to Improve Your Credit Score. Knowing your score will give you a good idea of how much funding you should aim to acquire, and at what interest rate you can expect to be given a loan. All the same, you should make an effort to maximize your score in order to maximize your chances of acceptance. Good ways of doing this include making on-time payments, reducing your amount of debt owed, and consistently maintaining a few simple lines of credit (such as credit cards) in order to build a strong financial “reputation.”
• Choose Lenders Wisely. Many payday advance companies and other “easy-approval” lenders are predatory and downright unethical in their lending practices: be sure to research any potential lenders carefully in order to make a choice that truly works for you.
• Consider Your Debt to Income Ratio. The more debt you currently owe, the more difficult it will be to get approved. The higher your income, the easier it will be to get approved. Understanding this dynamic can help you put yourself in the best position to get approved for the loan you need.

 

Reducing debt owed improves your odds of approval! Visit Madison Monroe and Associates online today to learn more about how you can lower the amount of money that you owe quickly and permanently!

 

 

The Hidden Costs of Vehicle Ownership

Owning a car offers freedom, convenience, and maybe even a bit of status. But it also comes with costs -- some of which are not always so obvious at first glance. So when deciding how much you can afford to spend on that new ride, be sure to take in the costs that go beyond the initial sticker price. Here are just a few common factors to consider.

 

• Interest. Keep in mind that, should you finance your vehicle purchase by taking on debt, you will be paying more than just the sticker price that you see advertised. The interest that you pay on such purchases can easily add up to an additional 25% of the cost of the car itself. (Which, of course, depreciates the moment that you drive away with it, which can make selling off a car later in order to get out of debt problematic.)
• Insurance. Driving without insurance is both illegal and financially reckless, so you should calculate monthly insurance payments when considering what kind of car you can afford.
• Maintenance. Vehicles are bound to experience problems from time to time -- be it as simple as a broken windshield wiper or as complex as a blown motor. Because of this, maintenance costs can vary greatly. It’s wise to always be prepared, and maybe even keep a separate maintenance fund for rainy days.
• Paperwork. Keeping title, registration, and any other relevant paperwork for your vehicle up to date is going to require administrative expenses from time to time: be prepared to shell out about 100 bucks per year on this, depending on what kind of vehicle you use and what purposes you use it for.
• Gas. Fuel-efficient cars aren’t popular just because people want to reduce their carbon footprints -- they are also gaining traction because most American households spend upward of two hundred bucks per month on motor fuels.

 

Are you having trouble keeping up on car payments or other important financial responsibilities? If debt has taken control of your life, it is important to understand that you have options. Visit Madison Monroe and Associates online today to learn more about how you can get out of debt quickly and effectively.