The Big D’s of Saving

In times of financial crisis, it can be hard to make ends meet. If you’re living paycheck to paycheck right now, you won’t have enough cushion when disaster strikes, and you will have to borrow money to help you out. And then you will have difficulty paying it off since you will still be living paycheck to paycheck, and then your financial needs will increase, and the list goes on. Below are the big D’s that could help you tweak your budget and spare a few extra for saving. Downsize  If you are having trouble getting by month after month, and the mortgage is giving you additional headache, consider downsizing your home. If you don’t really need a spacious house, maybe you can get a smaller one that suits your budget. You can also check with your mortgage company if they can arrange a new plan for you with lower interest rates in an extended period of time. Downgrade  Check the services that you pay for and identify ones that you don’t really need or those which you can sacrifice. Perhaps you are paying in excess of premium cable channels that you don’t […]
By |April 13th, 2013|Blog|0 Comments

How to Get a Successful Car Loan Application

In whatever kind of loan you’re getting into, being successful doesn’t only translate to having your application approved, but landing the best possible deal. These are some points to remember in order to get the most out of your money when taking a car loan. Request for your credit report. Whenever applying for a loan, the first thing that the lender would look into is your credit rating. If you have a good rating, chances are you can get a deal with the lowest interest. If you are well aware of your credit score in advance, you will already have an idea of how qualified you are and you can negotiate to get the best deal. Meanwhile, if your credit rating is way less than perfect, don’t hesitate to postpone your application. Start paying your other bills on time and fix any wrong entries in your credit report. In a month or two, you’ll improve your score and you can finally apply for a better deal. Estimate the long- term cost. Always remember that lending institutions have already devised and laid out well hidden traps in every deal. So be sure not to get […]
By |April 13th, 2013|Blog|0 Comments

Introduction to the Debt Tsunami

There are three known methods of debt reduction, with the most famous two named as the debt snowball and the highest interest rate first. The last one, which has been existing for a long time but dubbed only recently in the blog “Man vs. Debt”, is known as the Debt Tsunami.   The author had a very beautiful explanation of this strong and appealing name. He compared the approach to the powerful natural disaster, because the debt tsunami method has a strong potential. Like the initial small waves of tsunami that are almost undetectable in the deep waters, your beginning efforts of debt payment may be futile at first. But just like a tsunami that becomes more powerful as the water becomes shallow, your efforts will start to become significant as your debt becomes smaller. The main principle of the debt tsunami method is to use your emotions to create that primal burst of energy in facing your debt, and to get rid of them. That said, the debt tsunami follows the approach of paying off debts in order of their emotional impact in one’s life. Let’s put a scenario to explain […]
By |April 13th, 2013|Blog|0 Comments

Pay Your Debts the High Interest Rate First Approach

Although commonly associated with negative meanings, debt is actually a useful tool. Debt can address immediate needs and help us survive life changing events. However, debt starts to become a problem when not taken care of.   When it comes to battling debt, there are three most referred methods, and one of them is paying off the debt in order of their interest rate. The high interest rate first method often goes head to head against the debt snowball method when it comes to debt reduction wars. While the snowball prefers paying the smallest debts first regardless of the interest rate, the highest interest rate approach, as the name suggests, prioritizes the bills that incur higher interests. In scrutinizing the two methods, the winner will always be the highest interest rate first if you look at it at a financial point of view. By getting rid of those debts with higher interest rate first, you would have saved a good fortune unlike if you have faced them last. This is because you can avoid their interest to compound, and once you have taken out one high interest debt out of the picture, you’ll […]
By |April 13th, 2013|Blog|0 Comments

Snowball Your Way Out of Debt

The Debt Snowball method is one of the three most popular methods of debt reduction, often compared to the other two alternatives, namely the highest interest rate first and the debt tsunami method. Proposed by financial advisor and host Dave Ramsey, the debt snowball is an approach to paying off debt wherein the smallest debts are paid first before larger debts, regardless of the interest rate. The method is named as such in comparison to a snowball. A small ball of snow may actually seem negligible at first, but if you let it roll downhill, it takes in more snow, until it gets bigger and bigger and unstoppable. The Process 1. The first step in the debt snowball is to list down all of your debts in the order of the smallest to the highest debt, regardless of the interest rate. In the event that two debts have exactly the same or close amounts, only then should you prioritize the one with the higher interest rate. 2. Next, you should determine the minimum payments required in each debt. List them down alongside each debt. 3. Devise a budget plan. Make necessary adjustments […]
By |April 13th, 2013|Blog|0 Comments