Today I have a guest post for you from David Brown a financial writer the Oak View Law Group. He writes also has written articles for several blogs as well.

You must have come across the ads that claim to reduce your debt by 60% and save you from the annoying collection calls. Well, we are talking about debt settlement. Can it be an effective solution to your monetary problems?

Debt settlement can indeed be the right choice for you if your finances are out of control and lenders are knocking at the door. However, it can also leave you in a bigger mess. Read on before you decide to settle you debt.

• Many debt settlement companies are scams. They take your money but don’t do what they are supposed to do. The fees that they charge are quite high. Moreover you won’t get a straight answer from them regarding the fees. Usually they charge around 20% of the amount that is forgiven. So if you are confident about your debt negotiation abilities then you better call your creditors directly and try to settle your debt.
• Apart from the fees charged by the settlement company, you have to pay taxes on the amount that is forgiven. Clearly you don’t save the entire amount that is forgiven.
• Debt settlement will look pretty bad on your credit report. The credit report may state “debt paid off in less than full amount” Or “settled in full”. However your credit score starts improving after your debt is settled. It is not recommended to take the help of credit repair companies. They mostly vanish with your money without fulfilling their promise. Moreover your credit report will improve only with time. So credit repair does not help much.
• It is not easy to qualify for debt settlement loans. You must be several months behind your payments and must have large outstanding credits to be eligible for such loans. Moreover you must look like an ideal candidate for bankruptcy. In short you must convince your creditors that you cannot pay back the entire amount under any circumstance. Only then you will be considered as eligible for debt settlement.
• It usually takes sometime to settle your debts because of two reasons:

1.      It takes time to negotiate debt with the creditors.

2.      The debtors usually don’t have enough money to pay the settlement amount right away.

While you negotiate with the company interest and financing charges rack up. This adds to your debts and makes your situation all the more wretched. You can also get collection agency calls during this period.

You must understand that debt settlement is not for everyone. It is ideally for people who are heading towards bankruptcy. If you have manageable debts then consider other solutions like debt consolidation. So keep in mind the above points and then decide whether debt settlement is the right answer to your financial troubles.

Can Debt Settlement Rescue You From Financial Crisis is a post from: StumbleForward.com

Today it seems as if there are a million debt relief companies on the internet.  I think I come across a new one almost every day.  However many there are they all seem the same to me.  They offer a quick blurb about their company and then offer a simple sign up as if it were all that easy.

The truth is it isn’t that easy, debt negotiation companies can be a little tricky to work with, just read my post on the  Debtmerica Relief Scam and you’ll understand what I’m talking about.  However, recently I’ve come across a website on the internet called Debt Consolidation Care and I’ve noticed their not quite like the other debt companies on the net.

In this post I am going to give you the good and the not so good low down on Debt Consolidation Care.  I will also show why DCC is different than any other debt consolidation help site.

What Debt Consolidation Care Offers

First off, DCC has a few things different than other debt consolidation companies and the first thing is the community it has.  This site doesn’t establish itself as just a company but rather a community for helping others and one of the corner stone’s in that community is the free forum it offers.  In the forum you can ask questions on anything from debt settlement, collection agencies, payday loans, to even bankruptcy.

Second, the site offers a ton of calculators to help you map out the numbers when it comes to getting out of debt.  They have everything from debt reduction calculators to calculators that will figure your debt to income ratio.

Third, they have a ton of do it yourself articles to get you started.  If you’re looking for info on how to deal with payday lenders, collection agencies, or even how to negotiate your own debts you’ve come to the right place.

Finally, they offer a ranking of what they believe to be some of the best debt reduction companies out there.  These rankings include the top three picks by Debt Consolidation Care as well as a list of all the companies they work with in all 50 states.

What I Liked About DCC

First off, the biggest thing I liked about this site was the fact that they give you the opportunity to do it yourself first.  With most companies the only option you get is a sign up form and a little bit of information on the company.

In fact most companies discourage other from trying to do it yourself because they believe it would be too difficult for you; however you never know unless you try it yourself.

Second, the forums contain a huge community of people to help you out.  If you’ve got a question it will get answered here.  The forums are also a great place to learn a lot of stuff.  I came across a bunch of sticky post inside the forums.  I read one on collection agencies that was very informative and helpful.

Third, they had a lot articles but they also had a bunch of great videos showing you how to set up a debt reduction plan, how to avoid bankruptcy and even how to do a payday loan consolidation.  I felt these videos came in handy when just getting started.  It also helps when you can just have someone explain things to you instead having to read a ton of articles.

What I didn’t Like

As powerful as this website can be for someone I still seen a couple of things I didn’t like about the site.  The first was that I was looking for personal reviews and ratings about the debt companies they were talking about.  It seemed the only ranking they had was of three companies they liked the best and that was it.

If I were looking for a debt negotiation company I would want to know what others thought of this company after using their services, however I just didn’t see that here.

I also didn’t like the fact that out of all the companies that they mentioned they didn’t show what their fees are.  I guess it’s just the fact that I’m a numbers kind of guy and I want to know what I’m going to be paying for if I sign up with one of these companies.

It would also be helpful so I could compare companies with each other and see who would actually have the best fees and rates for my situation; instead all I got for each company was a brief description and their contact information.

Finally, I also didn’t like that fact that the reviews they had of the companies they worked with never went through the benefits as well as some of the disadvantages with the companies had.  Doing this would have given a more rounded review of each company when it came to making a decision.

Who Is DCC For

Debt Consolidation Care has helped millions of people get debt free but there are a few people who I feel are really meant for this website.  First off, if you are a do it yourself person when it comes to getting out of debt this site is a great place to find some answers.

This site is also great if you just have a simple question to ask.  You don’t have to call them or even shot them an email; you can go straight their forum and get your answers now.

Finally, DCC is also great for those that have tons of debt and are looking for people to help them solve their solutions before they get any worse.  Sometimes all you need is someone to coach you along the process and give you the guidance to get started.

Are You Ready

Get started now by checking out all of their free content they have available.   However I know that in some cases this just isn’t an option so you may want to consider signing up with a free over the phone consolation to help you get started.   This will also help you to see if this is an option for you as well.

If you would like to get started now just fill out the form below.

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Debt Consolidation Care Review is a post from: StumbleForward.com

Back last year I wrote a review about Debtmerica Relief, a debt negotiation company that helps people get out of debt, and one of the things I’ve been noticing was that a lot of people were claiming Debtmerica and all other debt negotiation companies are a scam.

While I can’t speak for all debt negotiation companies I can speak for Debtmerica Relief. So in this article I’m going to cover a lot of the misconceptions people are having with debt companies like Debtmerica and give you more in depth reasons why they do what they do.

Why Only Unsecured Debt

One of the big reasons people don’t understand about debt negotiation companies is why they only except unsecured debt like credit card debt and not secured debt like a mortgage, and the answer is very simple.

If you were to go 3 months without making a payment on a credit card what could the creditor take away from you?  Nothing, because a credit card is not backed by an asset. When you look at a mortgage it is a secured debt and if you did fail to pay the bank would take you home away.  However, some secured debts can become unsecured debts.

For example if your house went into foreclosure and the bank repossessed it and they didn’t earn enough money from the sheriffs sale to payback the full amount owed they still make you liable for the debt owed.  However, now the debt is not secured because it is not back by an asset now.

Why You Pay One Payment

One of the big claims with Debtmerica and other debt negotiation companies is that the reason you pay them one lump sum payment is so they can disburse the funds accordingly.  While this is true for the most part there is another side to it as well.

Think of it this way when you get a mortgage, who gets paid first, your principle payment or the bank through interest payments?  If you’re not sure just go to any bank and ask them and they will tell you based on almost any normal amortization schedule that the bank always gets their money first.

Debtmerica and other debt negotiation companies are no different.   They do this because they know a lot of people won’t stick with the plan and will probably quit before they complete the program.  So what do they do, they pay themselves first.

Why You Still Get Calls From Debt Collectors

If you’re delinquent on any of your bills for more than a couple of month’s debt collectors will start calling you.  However one of the big misconceptions is that once you start the program the calls will stop.

In reality though it just don’t work that way, in fact they may even call you the entire time you are in the debt negotiation process, or even after you have paid off the debts.

What Killed My Credit

Another thing many people don’t understand is the fact that debt negotiation will likely hurt your credit score.  Think of debt negotiation like a mini bankruptcy, but not with as much of a damaging effect unlike its older brother.

There are two reasons for this,  first debt negotiation companies always get paid first like I mentioned earlier and second they may be purposely not paying one debt so they can pay off another.

Missing a payment or two on a debt can be like the kiss of death to your credit report however it’s not as long lasting like bankruptcy were credit score will be totally trashed for the the next 7 years.

Why Am I Getting Taxed

One of the things a lot of people don’t consider is the tax issues you might face when you go through debt negotiation.  For example, let’s say you have $30,000 of credit card debt and Debtmerica was able to cut $17,000 of your debt off and you only had to pay back $13,000 of your credit card debt.

The result would be that you would still have pay the taxes on the $17,000 of debt.  However, if you want to know how your situation would be effected call you accountant before you get involved with Debtmerica Relief.

What Are The Fee’s

First off a lot of companies don’t usually disclose their fee’s upfront.  With Debtmerica it’s somewhere between 15% to 17% of the total amount of debt applied to the program.  For example, if you had $30,000 of debt in this program you could expect to pay them around $5000 in fees paid monthly.

Now you might be saying is that really worth it or not, and the truth is it all depends on everyone’s situation.  If it saves you in paying $5000 or more in interest payments and get you out of debt sooner it could be very much worth it.

However, I suggest you investigate what all of your fees will be before you sign on the dotted line.  There’s nothing like finding out after the fact that you got ripped off.

Can I Get Sued

The reality is that if you do become delinquent on a debt the creditor has the legal right to sue you for amount owed.  Will it happen is another question though.

I’ve only heard of this happening in very rare instances, but know that it can happen.  I also believe any reputable debt negotiation company like Debtmerica would not likely put you in that situation.

Do You Have A Question

I’ve covered a lot of the questions many people have about Debtmerica and debt negotiation companies but I’m sure I’ve missed something so give me a shout if have a question and I’ll do what I can to help you out.

Chris

This post was recently featured in the Money Hacks Carnival by Mighty Bargain Hunter.

Debtmerica Relief Scam: The Story That Nobody Tells You is a post from: StumbleForward.com

I recently came across a great video that proves my point that timeshares are just a bad investment all around, as I shared with you in my story about Timeshares Only.  Timeshares have cost me thousands of dollars and I’m only doing this to help spread the word that they are a bad investment but don’t take my word for it hear what Dave has to say as well.

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Need I say anymore.

Even Dave Ramsey Says Timeshares Are A Bad Investment is a post from: StumbleForward.com

If you’ve ever read my articles on timeshare scams and timeshare resale scams you will defiantly want to read this article.  Why, because I got burned by this company bad and not just a little, a lot.

You may have heard of Timeshares Only from seeing their ad on TV or on the radio claiming they can help you get out of your timeshare by advertising it for you on their high traffic website.  In theory this all sounds great when you hear what they have to offer but in reality it’s nothing more than a no product, no service scam.

I don’t say this just too bad mouth the company, so in this article I’m going to share my story about the Timeshare Only Scam and why you will want to avoid this company altogether.

Once Upon A Time…

When I first got married I was on top of the world.  I thought I had everything, a great job, a super wife, and a house.  I thought I had it all but instead I was setting myself up for disaster.  I thought I had all the money in the world.  What a big mistake this was going to be for me.

In late November of 2003 I was on my honeymoon in Aruba.  The only reason I decided to go there was because my oldest sister owned a timeshare and said that we could use it free of charge to go wherever we wanted.

While in Aruba we were asked to attend a timeshare meeting.  This was a huge mistake, but at the time I had no idea what I was about to get myself into.  I was strongly against buying a timeshare but after four or five hours of them continually hammering on us we bought one.

We decided it would be great to come back in a few years again or we could even use it to go someplace else.  Things seemed great.

Fast Forward 2 Years…

I had not used the timeshare once in that time, in fact I owed over $600 every other year in maintenance fees, I owed $60 for a membership fee every year, and if I wanted to go to different resort I was going to have to pay an exchange fee.  Add on top of that just the cost to fly to Aruba, it was going to be at least $500 to $800 a plane ticket.

At this point I started realizing that owning a timeshare was almost the worst thing I could have spent my money on.  So I decided to sell my timeshare, however there was one problem with this, how do you sell a piece of property to someone you can’t see or touch?

Fast Forward 3 More Years…

After 5 years of owning this timeshare I had not used it once and it was burning a hole in my pocket.  In fact, my debt situation was really starting to catch up to me and fast.   So one day on my way home from work I heard a commercial for Timeshares Only.

So I checked them out and gave them a call.  They informed me that they would advertise my timeshare on their website for a onetime fee of $600.  At this point I was willing to try anything.

Now before I go any further I will admit Timeshares Only is a legit company however they are not like a broker for a real estate company were they only get paid when you sell.  Timeshares Only is just an advertising company, that’s it.

Fast Forward To The Present Day

After a year or so I didn’t get one phone call, email, or even a letter in the mail.  They had pretty much collected the fee and entered the witness protection program not to be seen or heard from again.

This is when I realized I had been taken again.  What a mess I had created, if I had only said no that day I was asked to buy that timeshare, but it was too late now.  In the end I learned a few very valuable lessons.

• Timeshare are not worth squat.  When I tried to sell my timeshare in the resale market I realized that no one was getting paid for what they had originally bought them for.  The reason for this is because a timeshare is not ownership in a piece of property but rather ownership in a piece of time itself, a week to be exact.
• They will get their money one way or another.  If you think just paying the timeshare off is the only expense you are dead wrong, they will get you coming and going with membership fees, exchange fees, and maintenance fees.
• Nobody wants a timeshare. In the end Timeshares Only ended up costing me $600 and no results.  So how did I sell my timeshare you might ask?  I sold it back to the resort I bought it from at 10 cents on the dollar.  Ouch!  I know I lost out big but at least I was able to rid myself of it before I had put any more money into it.

Don’t Waste Your Money On Timeshares Only

In the end timeshares only did exactly what it said it was going to do.  Did they say they would actually sell your timeshare, no.  Timeshares Only is a lost cost and should be avoid along with every other timeshare resale company.

If you are looking for another option to selling your timeshare check out the links I left at the beginning of this post.  They include a few ideas you can try to sell your timeshare without getting ripped off.

Chris

This post was recently featured on the carnival of personal finance by Taking Charge.

The Timeshares Only Scam is a post from: StumbleForward.com

Recently, I got an email from my good friend Brad over at Enemy Of Debt, telling me that he’s running a contest at his site for the month of March called, The March 2010 Manage Your Money Challenge.

The Challenge

The challenge is simple, complete a budget for 31 days to get your finances in order using Pocketsmith, an online calendar based budgeting system.  To do this all you have to do is sign up for a free account an you’re in.

I’m personally getting involved because I know I can definitely use some help with my budget and lately I been looking around for a new budgeting system and have decided to see what this was all about.  Don’ t get me wrong I would definitely like to win some prizes but if all I would achieve is a solid budget that works I wouldn’t be disappointed one bit.

I also know how valuable this budgeting system could be to others so give it a shot and check it out, you can learn more about the Manage Your Money Challenge here.

Current Prize List

As of the time of this writing their are several prizes available, however I’ve been reading the comments and others are donating prizes all the time, so who knows how many prizes their will be in the end.  Here is the current prize list as it stands.

Weekly Prizes (March 8th, 15th, 22nd, 29th)

• Financial Peace University DVD Lesson: Cash Flow Planning (8th) $20 Value
• Financial Peace University DVD Lesson: Dumping Debt (15th) Awesomely inspirational!
• Financial Peace University DVD Lesson: Relating With Money (22nd)
• Financial Peace University DVD Lesson: The Great Misunderstanding (29th)
• Financial Peace University Lifetime Membership Kit that Dave Ramsey is sponsoring. ($110 value)
• Total Money Makeover (Dave Ramsey) book
• Financial Peace Revisited (Dave Ramsey) book
• Financial Peace Junior Kit (ages 3-12)
• No More Dreaded Mondays (Dan Miller) book
• A Gift To My Children (Jim Rogers) book
• $25 Gift Card (Staples)
• $25 Gift Card (Amazon)
• Two iPhone “Pay Off Debt” Debt Snowball Apps
• Two Android “Pay Off Debt” Debt Snowball Apps

As you can see the prizes are great.  You can also donate a prize if you want just check out the link above.  That’s all for now see you in the challenge.

Chris

Get Your Budget In Order And Win Some Prizes is a post from: StumbleForward.com

Back about 4 years ago while I was working in financial services I came across an individual who had an extremely huge amount of debt.  In fact, they had so much debt that they couldn’t even pay all of the minimum balances on their credit cards.

At the time I came across them this person, they were in the beginning stages of going through bankruptcy.  When we got together for our appointment I asked her why she was considering bankruptcy.  She said it was the only way she knew she could get out of debt for good.

The reality is that bankruptcy wasn’t the only answer in her situation.  There are other options available but she was not aware of them.  In fact after further questions I asked if she would interested in other debt relief options but her lawyer had her convinced that bankruptcy was the only answer.

In this post I’m going to take some time and share with you 5 debt relief solutions you should consider, including bankruptcy.

DIY (Do It Yourself)

The DIY debt relief option is by far the cheapest way to get out of debt but not necessarily the easiest.  If you are considering this option there are a lot great places to get some self guide help.   You can start by checking my debt plans page where you can get articles that explain how to set up your own debt snowball plan.

I also recommend you check out the Dave Ramsey Baby Steps Plan.  This plan is a time tested tried and true way of getting out of debt.  However, it’s not just a way of getting out of debt but also a plan that will change your life from top to bottom.

The plan has seven steps, they are as follows:

1. Save $1000 to start your emergency fund.
2. Setup a debt snowball plan and pay off all debts except your mortgage.
3. Fully fund your emergency fund with enough cash to cover all of your bills for 3 to 6 months.
4. Save 15% of your income for retirement savings.
5. Build your child’s college education fund.
6. Pay off your home mortgage.
7. Give back to others.

Now obviously I could have gone into greater depth with each option but that would make this post over 5000 words easy, so if you would like to learn more about this option check out the link above.

Debt Consolidation

Debt Consolidation is the process of combining multiple debts into one bigger payment, usually through your home mortgage or a home equity line of credit.  If you have a lot of extra equity in your home this can be a great option.

There are a lot of advantages to doing this such as cutting down high interest rates on your credit cards, car loans, or personal loans.  You will also gain the advantage that you will be able to deduct your interest off your taxes with your home loan.

However, with all the positives there are some down sides to doing this as well.  In fact this is one of the issues the individual I spoke about in the beginning got into.  Tapping into your homes equity can incur some huge financial risk.

If the debt would get out of control and you could not afford to make the payments you could lose your home altogether.  This solution also doesn’t solve the problem of why you got into debt in the first place.  Without changing your spending habits you could find yourself in a cycle of repeatedly falling back into debt.

Consumer Credit Counseling

If you’re looking for debt relief help that involves getting someone to help you out on a one on one basis this option may be for you.  Credit counselors will help you in all kinds of financial situations like credit counseling, housing counseling, bankruptcy counseling, and even giving help with your financial education.

They will help you set up a debt plan and help you work though it.  They also are helpful in keeping you on track of your goals.  Unlike the DIY option where it’s all up to you to stay focused on your debt plan, the credit counseling option provides a coach to help you work through your situation.  .

If you’re interested in learning more about this option you can check out The National Foundation for Credit Counselors.  There you will be able to get in contact with a certified credit counselor as well as other great financial tools like setting up your own budget calculators, and consumer tips.

Debt Negotiation

Debt Negotiation is the processes of having someone negotiate a deal with your creditors to lower the amount of debt you owe.  For example, if you have a credit card with a balance of $5000, the debt negotiation company might be able get deals were you only have to pay back 40 cents on the dollars.  Meaning you would only owe $2000 of the $5000.

It doesn’t always work this way.  Some creditors may not be willing to work out a deal at all.  It all depends on your situation and if you even qualify.

To qualify you need to meet certain criteria.  First off, they only accept unsecured debt like credit cards, personal loans, and even unpaid medical bills.   Second, you usually need around $7500 to $10,000 of debt to be accepted, and finally you need to be facing some sort of hardship such as foreclosure, bankruptcy, or even the illness of a family member.

The worse off the situation the easier it will be for the negotiators to convince the creditors that you won’t be able to pay back the money.  If you’re interested in this option check out my reviews of two debt negotiation companies, Debtmerica and Debt Relief of America.

Bankruptcy

I decided to leave this one for last because it should always be your last option, in fact I believe if you have enough will to survive you should never have to consider this option.  This option is in a lot of ways the big brother to debt negotiation.

With bankruptcy though, all of your debts will be negotiated by lawyers and your creditors, not just the unsecured ones.  This is known as a chapter 13 bankruptcy.  This is how almost all bankruptcies are done anymore.  The days of having all of your debt wiped clean are long gone. With the new bankruptcy laws in place you will have to pay back at least a portion of your debt back.

The truth is bankruptcy is a life changing event.  You will have bad credit for at least 10 years; it will also go on any record that bares your name, so when you go to apply for a job your employer will know about your financial history.  It will follow you everywhere you go like the plague.

What makes it even worse is that most people who go into chapter 13 bankruptcies fail to stick with it, resulting in even a bigger problem; you now have ruined credit and no money.  This can be a mentally challenging time, and if bad enough could result in depression.

Truthfully, I would try the other four options first before I would ever consider bankruptcy; however it is your choice.

Which Option Would You Choose

If you have or had a severe debt problem which debt relief options would you try?   Leave a comment and share your stories.

5 Debt Relief Options You Should Consider is a post from: StumbleForward.com

People are refinancing like crazy these days, in fact I just refinanced a year ago myself.  Rates have been at their lowest since the early 2000’s.  Refinancing is a big buying decision and should not be taken lightly.

In this post I’ve taken all of my knowledge I’ve learned over the years and combined it all into this post to give you the three best refinance tips to help you save a ton of money.  These are not tips I’ve learned just as a consumer but also as loan officer myself.

It’s Not All About Interest Rates

The first thing I want to point out, of my refinance mortgage tips, is that refinancing your home mortgage is not all about getting a lower interest rate.  There are many other things that contribute to you saving money on a mortgage.

Here’s what I mean.  Look at the mortgage graph to the right, the vertical column is the payment.  The horizontal row is the years the loan will last.  The purple color represents the interest paid out on the life of the loan.  The peach color is the principle you pay over the life of the loan.

According to the graph you are making just over a $1000 payment on your loan.  In the first 5 years how much interest are you paying?  In the graph above nearly 90% of every payment you are making is going to the bank as an interest payment.

The reason I point this out is because if you were to refinance on average every five years just because the interest rate was lower you would be starting the whole cycle over again paying the bank a substantial amount of interest.  This is why I never suggest refinancing just because the interest rate is lower.

Instead of refinancing to a lower rate, refinance to a lower number of years.  You may be able to cut your mortgage down to a 20 0r 15 year term and still keep the same payment.

Always Put 20% Down

You may have heard the expression, “you should put 20% down on your mortgage.”   So why is this?  The reason has to do with private mortgage insurance ( also known as PMI).  So what does this have to do with your mortgage?  To answer that I will define PMI, here is what Wikipedia says.

Lenders Mortgage Insurance (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. Typical rates are $55/mo. per $100,000 financed, or as high as $1,500/yr. for a typical $200,000 loan.

This is why you need to have 20% equity in your home.  Let me explain; let’s say you have $200,000 home loan and less than 20% in equity.  The total bill for PMI each year would be $1500.  That’s a lot of money that could be save elsewhere, not in the banker’s pocket.

After 30 years of making that payment it adds up to $45,000!  That’s a ton of money you could have saved for retirement, your kid’s college fund, even taken that nice vacation but instead gave it to the bank because you didn’t know any better.

Now, you might be asking, “but Chris once the loan balance drops below 80% LTV ( Loan to Value) the PMI Payments will stop, right?”  This isn’t exactly true.  In fact most lenders won’t drop it unless you notify them about it.  Cutting this out of your mortgage payment will save you a lot in the long run.

Make Improvements Over Time

Improving your curb appeal is an easy refinance tip that will add tons of value over time.  However, there are things you can and cannot control.  Let’s start with the things out of your control.

When you apply for a refinance with a lender they have to do an appraisal of your home to figure out the value.  They do this by first seeing your property and then comparing it to several homes in your area to get an estimated value of your home.

The reason this isn’t in your control is because if you live a bad or not so great area even if you have the best looking home around you will not be able to get more value from your home.  This is why it’s so important to buy your home in a decent neighborhood with a low crime rate and good schools.  This can go a long way to improving value by just picking a good neighborhood.

Now let’s talk about what you can control.  There are many things you can do to spruce up your home to get more value out of it.  The first thing you need to do is find out when the appraiser is coming through to check out your home.  This is the person you want to impress to get more value.

They will be looking at many different aspects of your home but here are a few things you can do to get more value from your home.

• Mow the lawn clean and nice.
• Change out dead shrubs or add a shrub bed around your home.
• Put fresh mulch around your house.
• Repaint old windows.
• Caulk around all windows.
• Replace your old roof.

Here are a few things you could do to improve the inside of your home.

• Install new windows.
• Put in new carpet.
• Repaint walls.
• Organize closets and add extra space.

It’s amazing what a little paint and mulch will do for your home.  The best thing is most of these ideas don’t cost much at all, since they are all just minor home repair and improvements.  These ideas will also go a long way to increasing your home’s value and help you pay less in the long run.

Do You Have Any Mortgage Refinance Tips

Feel free to share your home refinance tips below in the comments.  All the tips I shared with you are what I’ve learned through my own personally experience, so what have you learned?

This post was recently featured in the Money Hacks Carnival by Need Money Tips.

3 Refinance Tips That Will Save You A Ton Of Money is a post from: StumbleForward.com

Back a few months ago I wrote an article about how to sell annuity payments in return for a lump sum amount of cash.  However, in that article I didn’t really cover the reason why you defiantly don’t want to sell.  So in this post I want to cover 6 reasons why you should never sell your annuity payments.

Why You Shouldn’t Sell

• Someone told you to sell. The worst part about selling your annuity is the fact this type of industry is not very well regulated.   In fact there are a lot people out there willing to take advantage of you and tell you anything in order get you to sell your annuity to them.  The truth is these people are in business to make money and may be taking advantage of you more than you think.
• Just because you just want to. Selling your annuity just because is not good enough.  When you sell for a lump sum payment you will not be getting the full amount.  You will only get a portion of the funds.  This is what they call a discount, which is usually around 8% to 14% of the amount.  For example, if you had $100,000 in the annuity and they gave you an 8% discount that means you would only keep $92,000 in a lump sum.  You also have to consider the tax consequences of getting a lump sum this big.  Doing this may cost big in taxes.
• You think you have a lot of debt. Sometimes having a lot of debt may cause you to think that it would be better if you sold the annuity payments and would be able to clean the slate in a sense.  However, there is one reason why you don’t want to do this.   If your habits don’t change when you clean up your debt there is a chance you could wind right back up in debt except only now you aren’t getting any annuity payments to help you out.
• You have no money. Having no money is another poor excuse to sell.  In fact, if you have no money there may be bigger reason.  To solve this issue look at how much money you are making and examine what you are spending money on.  Take a month and track every single penny you spend.  At the end of the month look at where you spent your money.  The answer should be pretty obvious, if you find a lot of frivolous spending going on you know where the problem lies.  Cashing in on your annuity will only make the situation worse in this case.
• To invest in a business opportunity. Business opportunities are one thing but using your annuity cash to fund it is a different thing.  Businesses come and go every day, who’s to say the business you are investing in could go belly up in short time.  This can be a huge risk financial especially if you’re depending on this month to help you get through the month.  Instead of selling for a lump sum payment consider setting aside a small portion of those funds this way if the business does go belly up you still have the payments coming in.
• To lend to a friend or family member. This is probably the worst thing you could do with the money.  Helping a family member or friend out is great but if they don’t pay you back there could be more at stake than the loss of your money.  Friendships are the corner stone of life and lending them the money could drive a deep stake between you both.  A good example I have is when I gave my brother $5000 to pay some debts off.  It took me nearly 3 full years to get the money back, not mention the bitterness it caused between us.

Add Your Take On The Situation

So what is your take on the situation?  When or when wouldn’t it be a good time to sell your annuity?  Of all the reasons I’ve listed what would you add?   If you’ve considered any of the above take time to think the situation over before you make any quick decisions.  If you’re planning on selling your annuity make sure it’s for the right reasons because once you sell it’s gone forever.

Chris

6 Reasons You Shouldn’t Sell Annuity Payments is a post from: StumbleForward.com

Recently, if you’ve read my review on World Financial Group, you would have seen a lot of people making comments there.  Some good, some not so good.  In fact some claimed the company is a scam altogether.

In this article I want to prove to you that it’s not a scam but also address why it might seem like a scam to some.  The reason I’m doing this is because I’ve personally worked with the company for four and a half years and not one time did feel like it was some sort of scam.

Why People Believe WFG Is A Scam

WFG does not pay you to recruit.

First off, World Financial Group is a recruiting company.  Everything is based off of this idea.  In fact, they recruit nearly 10,000 people a month.  That’s a lot to keep track of.  Of those 10,000 recruits, 10% of them will only get licensed, and of those that get licensed only 10% of those will make it to the 5 year mark.

Why is this?

Generally speaking there is a high turnover rate in this business, especially if your only working on commission, which they are.  This means you only get paid when you deliver.  This means you have to sell to clients and if you can’t do that you won’t make any money.

By recruiting people it allows someone to break into other warm markets.  I did this all the time and I can tell you this, it is much easier than cold calling or sending mailers.  Don’t get me wrong the other two option work but they don’t deliver nearly as good results.

WFG is not a pyramid scheme.

Secondly, a lot of people are under the belief that the large amount of recruiting they do is considered a pyramid scheme.  So in order to prove that it isn’t I will define a pyramid scheme.  Here is what Wikipedia says:

A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered. Pyramid schemes are a form of fraud.

One, WFG does charge a fee to get started, but it is not in any way ever paid to any person in the company, much less the people who recruited them.  The fee actually goes to the corporate headquarters to get them set up in the system, do background checks and start up materials.

World Financial Group is also a business opportunity, which requires an investment to get involved.  Think about it this way if you were to start your own McDonald’s Franchise you would have to pay them just too even carries the McDonald’s name.

Two, under the definition of a pyramid scheme it also says that you don’t actually deliver any product or service.  World Financial Group has been selling life insurance and securities products for years.  They also give consolations and investment advice.  Need I say more.

WFG reps have licenses.

Third, in order to get paid by WFG you must have a license.  While I worked with the company I had a life and health license and a series 6, and 63 licenses to deal with securities like mutual funds.

These licenses were the only way I could get a paycheck, not through recruiting or some other bull crap lie.

WFG works with large financial institutions.

Finally, World Financial Group is in business with financial companies like Transamerica, Western Reserve Life, Prudential, American Funds, and the list could go on and on but I think you get my point.

These companies would not be in business with WFG if it were some pyramid scheme trying to rip people off.

One Last Thing To Think About

One last thing I want you to think about before I end this article and that is no one can know everything that is going on inside WFG at one time or another.  This also goes with all the other financial institutions.

Even with all the government regulators, quarterly interviews, regulatory compliance meetings, and even up line over sight of all trades it’s always possible to miss something.   There is always a bad apple somewhere, and it’s these people who make the company look bad.

Think of all the bad things you’ve heard about Wal-Mart or McDonald’s.  Great things happen every day within these companies but when just one bad thing happens everyone remembers it like the plague.

WFG is no different, they have helped family after family from falling it financial ruins, but then there’s that one agent who messes up and that’s what everyone remembers, when in reality that has nothing do with the company and is just a onetime indecent.

I know I will catch a lot of flak for saying this but unless you’ve been there and helped families from falling into the financial abyss I don’t think you have any room to talk.  I’ve been there and done it and now there are a hand full of families that I’ve helped that will be better off now all because I took the time to give them a call and ask if they needed help.

I can’t think of better way to help people.  So before you say World Financial Group is a scam take a step back and think before you speak.  You are talking about real American families who are working to support their families and help others.

Chris

Why The World Financial Group Scams Are Wrong is a post from: StumbleForward.com