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Achieving Financial Freedom & Early RetirementOver my lifetime there has been one quote that my Dad has mentioned at least 1,000 different times.

“You have two choices!  You can work for your money, or you can have your money work for you!”.

For most this is easier said then done.  I created this site to help others with their path to financial freedom.  I hope to do this by proving useful tools, resources, and personal experiences.  Click Here To Continue Reading...

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Early Retirement

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Tips To Increase Your Credit Rating

Ready To Increase Your Credit Rating?

Maintenance of a good credit report is important to get cash advances if you are confronted with impromptu expenses. This is possible if you train yourself to use your credits in an appropriate manner. Spare time to review your past credits and identify the unwanted expenses .If you bring a discipline into your spending you can certainly maintain a good credit rating. Read more.The article covers.

  • Top Tips to Improve Credit Rating
  • Pay you bills on time and consistently
  • Keep balances as low as you can
  • Manage your credit accounts wisely
  • Best Ways to Improve your Credit Rating

Before we set on to discuss the tips to improve credit rating, let’s accept a few truths. That regularly reviewing of your credit report needs to be given equal importance as medical checkups. You can draw ideas to improve your credit rating from reviewing your credit report. Rest assured all scoring procedures take into account that every person misses a payment or two in his life time.

Unfortunately, many who are under stress because of bad credit rating don’t know how to improve credit rating. Most of them confuse this to erasing the errors in their credit report. You can use the following list of tips to improve your credit rating. Mind you, you will have to diligently follow them, if at all you want to see any results.

Pay you bills on time and consistently

Paying your bills on time and very consistently is the foundation stone on which you can build upon your steps to improve credit rating. The regularity clearly reflects your financial stability and intentions to payback your debts. These payments will steadily show-up on your credit report as paid on time.

Keep balances as low as you can

Suppose you are paying your monthly credit installments. It is wise to pay as much as will be possible so that your unpaid balance, if any, will be low. This will send a strong signal to your creditors of your financial recovery. Secondly, the low unpaid balances can, at best accrue a small interest, which is easily manageable.

Manage your credit accounts wisely

How well you manage your various credit accounts matter a lot. One foremost thing to keep in mind is that, you will want to begin paying off from the highest debt account and move down the order. Please pay attention to include that debt account which has the highest interest also. Apart from quickly reducing the debt in key accounts it shows finance management abilities. This is a strong indication that you are on the path to recovery and from there would most certainly rocket your way to a stronger credit rating.

Income-Based Repayment (IBR) for a Federal Student Loan

The federal government’s income-based repayment program (IBR) for student loans allows qualified borrowers to tie their monthly federal student loan payments to their discretionary income. A new version of the IBR program called “Pay As You Earn” took effect on December 21, 2012 (it was originally scheduled to be phased in during 2014, but the Obama administration took regulatory measures to make it available sooner). The potential for IBR to change the landscape for college borrowers is enormous. According to the U.S. Department of Education, as of last October, about two million borrowers had applied for IBR.

What exactly is IBR for a Federal Student Loan?

Under the Pay As You Earn program, monthly federal student loan payments are based on income and family size (your payment is readjusted each year based on changes to these criteria). Payments are equal to 10% of your discretionary income, and payments are made over a period of 20 years, with all remaining debt generally forgiven after 20 years of on-time payments (loans are forgiven after 10 years for those in qualified public service if all payments are made on time and other requirements are met).

Note: An earlier version of IBR capped monthly payments at 15% of discretionary income and offered loan forgiveness after 25 years.

How do I qualify for IBR?

Not everyone is eligible for IBR. To qualify, you must meet several requirements:

1. You must have an eligible federal student loan. Loans eligible for IBR include federal Stafford Loans (subsidized and unsubsidized), Direct Loans (subsidized and unsubsidized), PLUS Loans made to graduate or professional students, and consolidation loans (that don’t include underlying PLUS Loans made to parents). Loans not eligible for IBR include PLUS Loans made to parents, consolidation loans that include underlying PLUS Loans made to parents, and private education loans from banks or other lenders.

2. You must be a new borrower as of October 1, 2007, and you must have received a disbursement of a qualifying federal student loan on or after October 1, 2011.

3. You must have a “partial financial hardship.” You are considered to have a partial financial hardship when the monthly amount you would be required to pay on your federal student loans under the 10-year standard repayment plan (i.e., fixed monthly payments over 10 years) is higher than the monthly amount you would be required to pay under IBR.

The Department of Education has an IBR calculator on its website that you can use to determine whether you are likely to qualify for IBR and to estimate what your IBR monthly payment would be (www.studentaid.ed.gov/ibr). The calculator considers your federal student loan balance, adjusted gross income (AGI), federal income tax filing status, family size, and state of residence. However, for an official determination of your eligibility for IBR, or to apply for IBR, you’ll need to contact your loan servicer. If you are unsure who holds your loans or who your loan servicer is, you can find out more at the National Student Loan Data System website (www.nslds.ed.gov). You’ll need your Federal Student Aid PIN to sign in to the database.

A word of caution

IBR sounds like a gold mine, right? Well, there are some things to be aware of. First, with IBR, you may pay substantially more interest over the life of the loan than you would under a standard 10-year repayment plan because you are paying your loan over a longer period of time. Second, you must submit annual documentation to your loan servicer so your monthly payment amount can be reset (if necessary) each year. Third, and perhaps most significant, you may owe federal income taxes (and possibly state income taxes) on the amount of the loan that is forgiven after 20 years. For more information on IBR, visit www.studentaid.ed.gov/ibr.

How To Manage Debt Effectively

In the current it seems that a lot people are still sinking into debt, even though the loan companies have become very strict on who they lend money to. This article was intended to give you tips on how to manage debt effectively.

We know most people who find themselves in debt will struggle initially to get a handle on things and could end up even deeper in debt if they are not careful. However, there are several ways in which to get debt help to tackle your debt problem.

Top 5 – How To Manage Debt

How to manage debt effectively

Priorities Your Monthly Expenses

No doubt you may have monthly expenses, which you could certainly get rid of. For example get rid of any club/gym memberships, which are not totally necessary. And talking of luxuries you should also eliminate on your takeaways each week. Over the course of a month the cost can really add up.

Get A few Quotes

Next time you go to renew your car insurance, home and content insurance etc then it pays to shop around for the lowest price deal. You can save $100’s by getting quotes online when it comes to renewal time.

Pay more each month

If you already own a number of credit and/or store cards you should always pay more each month. A lot of people tend to pay back just the minimum amount and it could take years to finally wipe the debt. By paying a little extra it could shave off a few years of repayments.

Use 0% Balance Transfer Cards

How To Manage DebtIf your credit rating is good and you also have lots of cards it makes sense to move your debts to cards which give you 0% for extended periods. Lots of companies give out 0% on balance transfers from other cards and they do this for anywhere up to 6-12 months. This can save you lots of interest payments each month and should be a high priority in helping to manage or reduce debts. Check out http://www.creditkarma.com/Zero-Intro-APR/CreditCards to find out cards you will qualify for.

Secured Debt Consolidation loans

Lots of loan companies offer this type of loan. The principle is very easy in that you pool all your debts from credit cards etc into one big loan. This then leaves you with one manageable loan, which you pay back each month. Consolidation loans are very popular but are only useful if you also cut up the credit cards that got you into the debt mess initially. The loans are typically secured on your home so the interest rates are very competitive, and certainly less than a standard credit card. As you can see by consolidating your debts it can save you a lot of money each month.

How To Manage Debt? What’s next?

The above are just 5 ways on how to manage debt. By applying all or even a few of the debt management tips will leave you with a much lower debt exposure month on month. All you need to do now is apply the advice given and start clearing your debts from today. Look at Improve Your Credit In 5 Easy Steps

Help With Debt Problems

Using a Plan To Help With Debt Problems

Getting help with debt problems is the first step on the road to becoming debt free. Regardless of your financial situation you can get out of debt if you are prepared to take the necessary and in some cases painfull steps required. For many people being in debt is a way of life and most people would struggle to make ends meet without their credit cards or in-store charge accounts. Mortgages and car payments are among some of the debts people consider necessary. However, planning for the future may require help with debt problems in the form of a debt reduction plan to have needless debt eliminated or greatly reduced to help through retirement. Additionally, as a family grows their spending increases until it reaches a peak and as the family begins to shrink with children leaving the nest, some of the spending habits do not shrink proportionately.

A good debt reduction plan can help bring spending back into alignment with the family size. For example, cell phones are one of the expenses that can be reduced as children leave the house and strike out on their own. They have had an extra line charged to you, but once gone have their own service and you may still be paying for a line not in use.

Credit Card Debt Problems

Get Help With Debt Problems When credit card bills come due, the minimum payment is typically low enough for people to afford, while allowing them to maintain a high balance. The company makes its income from the interest charged and with many cards the interest rate is so high that by making minimum payments, it can take years to pay off, even if no additional charges are made.

For a debt reduction plan to work, making higher than minimum payments will pay the balance down much faster. For those with little or no experience with budgets, there are many service organizations that can help with debt problems, often for no charge to help put together a debt reduction plan. Others, for minimal fees will also contact creditors and negotiate lower interest or settlements to reduce the overall amount of the debt to help make your debt reduction plan a reality. Understand, when card companies agree to lower accept lower balances the cards will need to returned and the card will be unusable. You will find many resources to help with debt problems on this site. Have a look around to find one that best suits you situation.

Debt Reduction Information

Debt Reduction Information

Debt Reduction Information Using Debts Help

Worried about your debts help is at hand? It was easy to get into financial difficulty when the economy was good and credit was easy. If you have a home loan, auto loans, credit cards and personal loan payments then it can be difficult to get by especially if you loose your job.

You will find that there are a number of debt reduction services available, and if you are a homeowner or person that has good credit, you will get some extra options. And, it is also possible to get assistance even if you are struggling with a lot of debt. You may choose to get relief from a debt consolidation service and thus you will need to get certain debt reduction information to obtain such relief.

Debts help information is meant mainly for people that have identified potential financial problems that are ongoing, or which are likely to occur in the near future and you are thus desirous of putting an end to the cycle of debt. It is ideally suited for anyone having a constantly increasing number of monthly bills to pay and is also useful for those who buy more than they can pay for.

If you want to avoid bankruptcy, you should take some time and search out information from a financial consultant in order to reduce your monthly debts, rebuild your credit standing as well as move in the direction of becoming free of debt and financially responsible once more. You can find debt reduction information from many sources such as reading books, using the Internet, meeting financial planners as well as using software programs as also by checking out financial institutions as well as debt consolidation agencies.

Tools That Provide Debt Reduction Informational

You can check out debts help reduction information from software programs as well as books which are generally designed by professionals that plan finances and these sources are wonderful tools to be used to learn how to become debt-free. They also provide the user privacy as all that they need to do is enter their financial information just as you would give to a financial counselor and get back a report on your current situation as well as the options available to get out of debt as soon as possible.

If however, you need more assistance than these tools provide you, you should check out a consumer debt counselor who will provide you with debt reduction information though at a greater cost than software programs. Nevertheless, you will get more assistance as your current financial situation would be evaluated and you would also get many more debt-reduction strategies to choose from. In addition, they may also represent you with creditors and thus put an end to the troubling phone calls that you would otherwise need to answer.