How much interest do you pay on your credit cards? If you are like most people, your credit card interest rates are more than double that of a home loan. In some cases, it can be up to four times the amount. It is almost criminal - the amount charge for interest rates on credit cards and other secured debt.
You are better off to get a line of credit to pay off your unsecured debt. A line of credit will offer you not only a much lower interest rate, but you can write the interest off on your income taxes. You will save yourself, in the long run, hundreds if not thousands of dollars in interest.
If you have outstanding debt, take a look at the interest rates and then consider getting a line of credit. Not only will you be able to lower your interest rates and take an additional tax deduction, but you will also be able to consolidate your debt, making it easier to make your monthly payments.
Take the case of Marcie.
Marcie is a single mom with two teenagers. She has lived in her current home since getting divorced in 1995. There is no longer a mortgage on the home. Marcie always liked the idea of having her home paid off and this gave her great comfort. Unfortunately, it did not help her with her income taxes. She had to pay two years ago instead of getting a refund.
Although Marcie’s house was paid off, she was far from debt free. She owed $8,000 on her car. She also owed on various credit cards as well as some other loans. Marcie’s oldest child was due to go to college in the Fall and she was contemplating taking out a college loan. She discussed this with her banker who suggested that she get a line of credit based upon the equity in her home.
Marcie’s home is worth $230,000. She owes no money. The bank was willing to loan her ...
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...and is always valuable. Undeveloped land has a lot of potential. And if you are looking at land in an area that, today, is undeveloped and considered part of the “country,” chances are that that land will be worth more in 10 years than it is right now.
Take a look at the area in which you live and determine in which direction the growth it moving. You can use your line of credit to purchase land, either developed or undeveloped, in this area. This can end up bringing in more money than a stock investment.
This is the perfect time to invest in real estate. Because interest rates are so low, you can take the equity from your home in the form of a line of credit and invest in your future. You can either purchase land or a dwelling. There has never been a better time than right now to invest in your future with real estate. Make the property that you own work for you.
The article addresses the issue of college debt preventing college graduates from taking out loans on other items such as a car or house. It claims that this statement is false and that within about two years of graduating, students have caught up with their debts enough that they are okay enough to make these purchases. An example used is a study done by TransUnion between two groups; one with college debt and one without. The study results display that the group with student loans ended up have better origin rate percentage with their purchases after two years than the group without
Carneval, director of Georgetown University’s Center on Education and the Workforce agrees that going into debt until you’ll be earning more money is the way to pay for your education. “The only thing worse than borrowing is not borrowing and not going to college at all,” stated Patrick M. Callahan, president of the National Center for the Public Policy and Higher Education. Lauren J. Asher, President of the Project on Student Debt group, states that the financial risk has increased. Ms. Asher points out that more students graduate with at least $40k in student-loan debt, “People lose control of their finances, and sometimes they make choices you wish they hadn’t made.” Darla M. Horn, an organizer of the student-loan-debt art show in Long Island City, NY realized she hadn’t been aware of how much money she had borrowed while in college. Referring to herself as financially illiterate, she found herself “just signing the documents and faxing them
This can actually be one of the most easy ways for meeting your requirements, while clearing a huge debt.
Cindy did not think that she would end up with credit card debt because she had a good-paying job and a good credit score. She paid for a Caribbean cruise that she took with her husband with her credit card. She thought that she would be able
Personal Finance Essay Many students in today’s world believe they need to take out student loans for college. I believe you don’t have to take that path. Student loans are hurting many students who attend jcollege, and I believe that the loans should stop. Any student can get through college and be debt free at the end.
In that year, the number of college graduates was only 432,058 (Sourmaidis) and ever since the demand continually increased as did price. This trend allowed for the student loan crisis to occur, which is a problem we face today. As of 2016, American students have accrued a massive 1.3 trillion in student loan debt. Just 10 years ago, the nation’s balance was only $447 billion (Clements). This ever-present cumulative burden has caused many post graduate Americans to delay important life events such as marriage, homeownership and children because of this substantial encumbrance (Clements).
...ep the money in the bank because the bank is the safest places to keep money. In addition, investing money in stock is the best way to make the business grow because stocks have the highest returns of any asset. Lesson 9 is full of important information about credit -card debt. According to the lesson 9, “The average American household with at least one credit card has nearly $15,950 in credit-card debt”. People borrow a lot of money that they cannot afford to pay back. Falling into a debt is the fastest way that people face because some people use their credit card for meals and vacations, but they cannot afford to pay off their monthly bills. Thus, people should write everything they spend for a month because a lot of people spend thousands of money without thinking about what they are buying in order to start saving the money and reduce the debt quickly.
In an article written by Andrew Lehren, the author provides the bold statement that “the only thing worse than graduating with lots of debt is not going to college at all” (Lehren). In today 's society, many families lack the funds to provide a full ride for their children in terms of college. Due to this fact, many people turn to alternate solutions such as loans or diving straight into the workforce instead of attending college at all. These solutions, however, may greatly affect a person throughout the course of their life. The problem of college debt is increasing rates in regards to tuition, however, fortunately there are various solutions accessible in order to decrease or eliminate the debt that many american students face.
With student debt at an all-time high, parents want loans to be a last resort when in need of money for their child’s college tuition. “Money is a major concern for many high school students (and their parents) who are weighing college options” (Austin). Debt is a serious matter and is a hard thing to pay back. Another controversy with college tuition is not every person gets to have the chance to attend college. With colleges having a monthly payment plan, there could be a possibility that more students would have the ability to experience college and more would graduate with less debt. Rather than the necessity of having the whole college tuition for that school year, students would b...
One of the most common questions in investing is whether you should be investing in stocks or in real estate. The reason why investors invest in one or the other and are happy about the decision is because they have both worked out well though the common factor is obviously the fact that the investor got in and out of the investment at the right time.. In fact, many investors have done well with both and they can both be good investments, depending on the market conditions at any given point in time. A certain amount of financial education and the knowledge of using any investment tool to advantage is critical.
Your chance of making it in the economy of investing will be short lived. Why not invest of a back-up plan on college or a university and get a degree. Thus, later on if stuff doesn’t work out you can always bid in your education for help when rough times are around the corner. Im going to save my money in a high interest saving bank.
Our teenage girl is now an adult, and she still fails to spend her money wisely. She is head over heels in debt, and all the items she purchased have not granted her any happiness. Learning to make money and to spend it wisely, are valuable life lessons, and credit cards are notorious for hindering that learning process. However, credit cards themselves are not completely evil! It all depends on how one uses them. In the end, I will leave you with a rule of thumb for money spending, stated plainly by Thomas Jefferson: “Never spend your money before you have earned
Mortgages, car loans, student loans, and having children, are all situations that can drive families to the overwhelming doom of debt. Debt is mostly overlooked for the simple reason that it may be considered normal. Certain types of debt, like car and mortgage payments, are almost always expected. Debt is sometimes very difficult to evade, especially if money is not managed sensibly. Many families accumulate debt due to overspending, medical bills, and unemployment.
There are two main ways to raise money for a project, growing business, or startup company: debt financing and equity financing. Debt financing includes long-term loans, while equity financing is the process of raising capital through the sale of shares in an enterprise. It is essentially the sale of an ownership interest to raise funds for business purposes. Debt financing allows you to purchase assets before you earn the necessary funds, which can be a great way to pursue an aggressive growth strategy (especially if you have access to low interest rates). Items like mining equipment, buildings, machines, and equipment can all be obtained immediately once a loan is acquired.
... valuable time, energy, peace of mind, and what should have been a normal life, trying to restore my credit and my life.”(Written testimonial of Michelle Brown).