The Downsides of Loan Modifications

loan modificationHave you heard that a loan modification could be the answer to your dreams? In some cases, it decreases mortgage payments and protects your credit score. However, on the other side, there are significant risks you take regarding your credit, especially if not approved for the modification. Here are the six downsides to a loan modification.

The Program Will Not Help You If Unemployed

The first downside of a loan modification is to realize, you may not qualify off the bat. The purpose of a loan modification is to help reduce your mortgage payments based on your pre-tax income. However, while unemployment is income to you, it is not considered the qualifying income under the Home Affordable Modification Program.

Submitting Lower Payments Hurts Your Credit

You should realize that once you apply for the loan modification program, the lender may ask you to make a lower monthly payment for their “trial period”. This reason could be to ensure you can handle the payment. However, partial payments are reported as such and that can have a negative impact on your credit score. If approved, be sure your lender corrects your report. If denied the loan modification, the negative marks will remain on your report. [Read the full article]

Types of Investments

types of investments

When it comes to investing, there are various types of investments that you can choose from. So many in fact, that it can be overwhelming for many investors, both new and old. In this post, I am going to talk about the different types of investments that you can choose from and then do my best to help you narrow the list down into something more manageable so that you can match the best return with the appropriate risk for each one. Different Types Of Investments Since … [Read the full article]

Defeat Dodgy Employers – Make A Claim

smallclaims

Accidents are like buses – you wait for one, and suddenly you’re hit with more pain than a Stone Cold Steve Austin smack down.This world of hurt will always arrive at the moment you least expect it. And in workplaces, a simple accident could prove more harmful than a stumble in your home.When you’re working in a dangerous environment, safety regulations have to be respected. Yet thousands of businesses allow their employees to be hurt every year – in entirely … [Read the full article]

Summerizing Your Home To Lower Utility Costs

lower utility bills

Most people think about winterizing their home to help it be more heat efficient during cold weather and lower utility costs. Summer utility bills can sometimes exceed winter utility costs, however, especially if you live in a very hot climate state. There are several things you can do to stay comfortable through the hot weather where the A/C unit will not cause anxiety every time the bills roll in. Even if you have no problems affording the high utility bills summer … [Read the full article]

Active vs. Passive Investing

passive investing

When it comes to investing, I embrace buy-and-hold investing with mutual funds and ETFs, also known as passive investing. You may be asking what exactly is passive investing and how does it differ from active investing? Or better yet, what is active investing? Well, I’m glad you asked. This post is going to walk you through both types of investing and show you why if you want to be a successful investor, passive investing should be your choice. Passive Investing & … [Read the full article]

Finding An All Inclusive Resort For You

all inclusive

When you go on vacation, you have 2 options: go all inclusive or pay as you go. There are definitely pros and cons to each one and depending on who you are and what you enjoy doing, this will ultimately determine which option you should choose.The only problem with going the all inclusive route though is that many vacationers pick the wrong place to stay at and end up paying more than they would have if they had just stayed at a regular resort.In this post, I am … [Read the full article]

Cell Phone City Interview

Microphone

The other week I was approached by Cell Phone City to take part in their Savings Guru series. In this series, they interview influential personal finance bloggers on a regular basis. To be included in the group is a truly an honor.So what is the interview series all about? Every week (roughly) a new post is on blog with the interview. You get to learn a lot about the person and some really cool personal finance tips along with it! You can check out the full list of … [Read the full article]

Homebuying At It’s Most Basic

If you are thinking about buying a home for the first time, this might sound like a monolithic undertaking! Believe me, it’s not. Well...you will have to sign a lot of paperwork and spend a lot of time on the phone. But at its most basic, it’s something people have been doing forever. And if your one cousin can figure it out, you surely can too.Renting versus buying have various pros and cons. On the one hand, you’ve got the simplicity of renting. You don’t have to … [Read the full article]

When You Can’t Afford Organic Foods

can;t afford organic food

When you have a tight food budget, it is not always practical to shop for organic foods as they typically cost a lot more to purchase. While many may want to shop organic, their food budget just simply can’t support the desire. With all the processed foods and GMO foods now taking up 70 percent of supermarket shelves, what can a consumer do, especially when facing a small food budget with rising food costs? … [Read the full article]

Savings Challenge Update #5 – Noticing A Trend?

saving challenge june

Well, it seems that the trend of this year is continuing when looking at bringing in extra income. While there was some serious volatility in my monthly reports early on this year, things seemed to have settled down lately. While that might seem like a good thing, if you aren't hitting your goal, then it really isn't so good. Let's take a look at the month of May to see how I did and then talk about things moving forward. … [Read the full article]