Tips And Guide For Debt And Loan Management

There are a few of reasons, why you should refinance the loan of your home. People sometimes see mortgage refinance as a method to take the advantage of low interest rate, which enable them to pay lower monthly mortgage payment. Some other people use refinancing to use a shorter-term mortgage, which allow them a fast way to build equity. If you have build sizable equity in your home, you may use refinancing by using fund available for home improvement and other necessities, like children education fund and debt consolidation.

These benefits may look attractive to you, but you may wonder if refinancing will be worth it and you may also feel rather unsecure about this.

Yous should not worry too much, because refinancing process is actually very simple, it basically involves paying your entire mortgage loan and then take a new on on the same house. Of course, your new mortgage loan must have lower interest rate and at term that suit your needs. It is also possible that obtain a totally different kind of loan, such as switching from ARM (adjustable-rate mortgage) to fixed rate mortgage.

Most likely, you are going into this cost-cutting process with a sour attitude. Money is tight, cutting back is not fun, and admitting you made mistakes is not easy. Yet, as with anything else in life, if you attempt to get out of debt with a negative attitude or while carrying around bad feelings, the chances of success are diminished. In many ways, getting out of debt and living below your means can be enjoyable instead of miserable. Cutting back will require that you change some habits, but if you keep in mind that your old habits are probably what got you into trouble in the first place, replacing them with new ones can be a fun adventure. It’s all a matter of having the right attitude. Spencer’s grandmother had an apropos saying in this regard. Always a witty and active woman, Gram was eventually forced by age and ill health to live in a senior community. One day, Spencer went to see her. He asked how she was doing. She was silent for a second, looked at Spencer with a twinkle in her eye, and said: “I’m in good shape … for the shape I’m in!” That is the type of attitude we are suggesting.
We know it is not easy; if cutting back were in your blood, then this book would not be in your hand.
However, we cannot emphasize enough that you have to do some things differently if you are to get out of debt. Starting with a positive attitude makes the process easier.

Let’s see how a positive attitude can affect the bottom line. Aside from mortgage payments, food costs for a family are probably the largest item in the family budget; depending upon the size of your family, food costs can be bigger than car payments. It is not difficult to reduce the cost of food. Bulk and discount stores are easy to find. What is difficult is getting out of the habit of paying for convenience. Although it may be much easier to buy tonight’s dinner at the corner store down the street, planning ahead and buying at a less expensive supermarket can save you a lot of money every month.
A key concept to reducing your food bill could be called “shop and stock.” Buy food when it is cheaper and stock it away until you need it. You can dramatically reduce your food costs by doing so and still eat what you like. Shop for food at a less convenient and less expensive market. Buy in bulk. Buy on sale. We especially recommend buying on sale. When you shop, look for items that you regularly use that are on sale, even if you don’t need them. Freeze them or put them in the back of your cupboard. Shop and stock. If you get really good at this, you need never pay full price for anything again, because everything in the market eventually goes on sale. If a favorite item goes on sale, buy it, even if you don’t need it at that moment (feels like old times, no?). Although it might seem odd to buy things you don’t immediately need, the savings are realized in the future when you do not have to buy that chicken that was on sale two weeks previously. Susan started shopping this way and saved an average of $40 a week feeding her family of five. She then earmarked that extra $160 a month to pay down her credit cards and paid off one of them within a year. Who knew that creamed corn on sale could do battle with the mighty MasterCard and win?
There are plenty more ways to save on food costs:

• Buy markdowns. Day-old bread and pastries are usually half-price.

• Use coupons. Coupons can save you a lot of money, but they can also be a hassle. If you find coupons for a thing you use consistently, they can save you lots of money.

• Buy in bulk. As a general rule, the more you buy of an item, the less each individual portion costs. Bulk purchases of rice, beans, flour, chicken, cheese, and vegetables can all be divvied up into smaller portions and frozen or stored in plastic containers. If you think that you don’t have enough room or people to buy in bulk, buddy up with a friend or relative and shop together. Just be sure to avoid thinking that you really need 48 granola bars!

• Buy generic. Mark was a struggling director forced to live on almost nothing because of his choice of professions. He learned to buy some generic foods and sundries to save money. Now, although he directs television shows and makes a bundle, he still buys generic because he sees no difference in quality. If you eliminate the need for convenience, you can still eat the same foods you always have at a fraction of the cost.

Yes, you can have the joy of raising children without going broke. No, it will not be easy, especially given their proclivity for saying, “I want one of those!” Larry’s father often told Larry, “My name is not get me, buy me.”
Although we live in a very materialistic society, it is incumbent upon all of us to teach our children well. They will feel the tug of peer pressure, the “need” to have $100 Air Jordans. If you can teach them money literacy early, you will have gone a long way toward saving them years of financial and emotional grief.
Kids learn best by example. If they see you buying new shoes every month, they will want new shoes. If you get the newest computer every six months, they will want the new Nintendo. If they see you being smart with a dollar, they just might learn that, too.
There are scores of ways to have fun with your kids, teach them positive values, and still save money. What is your favorite Halloween costume of all time? It is probably safe to say that it was not some prefab, storebought costume, but rather a homemade, creative masterpiece. Keep that in mind as you strive to give your kids the best without teaching them the worst.
Art projects are a fine example. Children love to make art, to express themselves with pictures when words may be hard to find. Crayons are great for the little ones, and most newspapers sell newspaper end-rolls (just the paper, not the print) for a song just to get rid of it. Add some scissors, glitter, string, markers, beads, and buttons, and you have an afternoon of relative peace and quiet. Maria has a special “gallery” (a wall) where she hangs the best pieces of the week. Why not keep all the packaging you throw away every week? Anything can be a part of a work of art.
Other great, inexpensive activities include

• Cooking and baking. By incorporating children into your kitchen activities, you kill two birds with one stone. They play (for free), and you get some work done.

• Music. Teaching children to love music is a reward unto itself. Whether it be listening to Mozart on CD, playing the flute, or drumming that wooden spoon, music can be a compelling, wonderful, affordable activity.

• Reading. If children learn early enough, they can’t stop. That you can check out endless books for free from the library makes reading that much better. Books can also be purchased cheaply at yard sales, book fairs, and church bazaars. Have children write their own books. Read to your children every day.

• Computer. If you have a home computer, the possibilities are endless. CDs make learning fun and can often be found in the bargain bin at the computer store for a few dollars. The Internet is a vast resource of fun and learning. America Online, for instance, has an entire area for kids only. Install an inexpensive blocking program, and let them go explore the world.

• Sports. Sports can usually be played for the cost of a football, basketball, or Frisbee.

• Games. They need not be expensive. Puppets can be made out of lunch bags. Use old clothes for dress-up. Puzzles are pretty cheap.

• Money. Help them start a business. The kids can solicit neighbors for a summer pet-sitting or pet-washing service. They can wash cars or sell lemonade. They can baby-sit.

Work-related expenses can devour a budget. Utilize these ideas and save a bundle:
Bring a sack lunch. Let’s say that you and your spouse could save a conservative $5 a day each by brown-bagging it three days a week. At the end of a year, you would have saved over $1,500.
Buy clothes on sale or even used. A new silk tie may cost $40. On sale, it is $30. Used, it is $5. The same holds true for a suit or dress. Of course, you must look sharp to get ahead at
work; no one is saying that you should dress like Cosmo Kramer. We are saying that you
can dress your best for less.
Save on dry cleaning. People can spend over $1,000 a year on dry cleaning. If you shop around a bit, it is probable that you can find a convenient dry cleaner that will do the same work for one third less. Having that jacket cleaned every other time instead of every time
you wear it can also save money. Better yet, check the tags before you buy to avoid purchasing items that are “dry clean only.”
Use mass transit. Remember, convenience costs. If saving money is going to become a priority, then something will have to give, probably convenience. Driving to work may be quicker, but gas and parking are expensive, and a bus is a lot cheaper.
Save on coffee breaks. Snacks from home can replace that daily $3 bagel and juice, although giving up your latte may just be too much to ask.
We are not telling you that you must become a miserly saint. As Maude said in the movie Harold and Maude, “You can’t be good all of the time; it spoils the fun!” Pick and choose what works for you.

Plane flights now can be quite inexpensive. By filling planes that are not full and putting people on flights with layovers, Priceline.com does indeed allow you to name an inexpensive price for plane flights (as well as hotel rooms). No-frills carriers like Southwest and United Express are pretty cheap, and ticket brokers sell discounted airline flights.
If you are really adventurous, you can become an air courier. Large companies ship packages every day around the world, and they require someone to accompany the package. That person is you, the air courier. As a courier, you can fly to Europe, Asia, South America, almost anywhere, and do so at a heavy discount. Whereas a flight from New York to Oslo might cost $2,000 roundtrip, on a courier flight it might be $395. Sometimes, in a pinch, it can be free. Pick up a book on air courier travel, and you are off. The downside is that you usually don’t get to choose how long you can stay abroad, and bringing the kids along is impossible.
Other ways to save on airfare include:

• Travel during off-peak times of year.

• Travel Monday through Thursday instead of over a weekend. Cultural events in most cities are practically free during the week.

• Fly standby.

• Give up your seat on an overbooked flight and get a free voucher. Tim books a flight every year for December 23 from Denver to New York (making sure the ticket is exchangeable) without ever planning to go. He goes to the plane that day, happily gives up his overbooked seat, gets a free flight anywhere in the country for being so reasonable, and uses his exchangeable ticket on a flight he will use later in the year.

• If necessary, use compassion fares. Airlines offer discounted bereavement fares if you can show proof of death and explain your relationship to the deceased.

Once you get to your destination, you can save even more money. Go to the local Chamber of Commerce and get a tourist kit; inside will be discounts and lots of great offers. Traveling by bus or subway saves money, and if you will be there for awhile, consider getting a bus pass.
Lodging can be very expensive or very cheap. If you are going to travel overseas, you can exchange homes with a family in the country you are going to. You can rent an apartment instead of staying in a hotel. You can stay in a discount motel instead of a hotel. You can stay in a college dorm instead of a motel. You can camp. Be sure to use any discounts available to you. Seniors are offered discounts on car rentals, airline tickets, lodging, admissions, mass transit, and restaurants. Other groups that are often offered similar discounts are members of the military, students, auto club members, and union members.

David and Leslie took one of their most memorable trips ever when they were young and had no choice but to be creative. They took a train from Los Angeles to Tijuana and hopped a plane to Mexico City, because flying within the country was much cheaper than flying internationally.
Once in Mexico, they grabbed an overnight train to the pyramids (saving on a hotel room). They then took a 24-hour bus ride to Cancun (saving another night of hotel expenses). In Cancun, they stayed at the youth hostel for $4 a night. They hitched south (which is not safe nowadays) and found a room on the beach for $10 a night. There they got engaged with a $25 silver ring David had bought earlier in the trip. They just celebrated their 15th anniversary, and although they don’t travel like that anymore, they miss it a lot.

Eating out need not be so expensive either. Your newspaper is full of coupons for inexpensive meals for adults and families alike. If you eat out often, dining clubs offer two-for-one deals, and discount coupon books sold by civic organizations pay for themselves in meals many times over, if they are used. Other ways to eat cheaply include

• Utilize “early bird specials.”
• Eat a la carte instead of ordering a full meal.
• Share your food.
• Don’t order a drink.
• Go out for lunch instead of dinner.
• Just go out for dessert.

Movies are usually half price for a matinee. If you are patient, that new Mel Gibson movie will turn up at the discount theatres in a few weeks. If these ideas don’t appeal to you, stay home and make it a Blockbuster night. We are so used to spending money for entertainment that it comes as a shock to realize just how much there is to do for almost nothing:

• Go on a bike ride.
• Go to a museum.
• Take a drive in the country.
• Garden.
• Attend a free lecture at a university.
• Go to the library.
• Play a free sport—tennis, baseball, basketball.
• Make art.
• Go to a street fair.
• Go camping.

Going on a date can also be inexpensive if you use your imagination. (When Tom was a child, he thought his mom was telling him to use his “magic nation.”) A picnic in the park or at the beach is quite romantic and a bargain to boot. A walk around the city, stopping for coffee, and browsing in galleries are equally fanciful and similarly inexpensive.
The possibilities for fun, economical dates are endless, if you use your own “magic nation.” Use these ideas to get you started:

• Find a dark cafe and spend the night chatting and drinking.
• Test drive a dream car.
• Explore a new neighborhood.

Movie theatres don’t make their real money at the box office; the concession stand is what you need to be wary of. If you are so inclined, bring your own candy and soda in a purse, and you will save $10. Malcolm pops his own popcorn before going to the movies and sneaks it in, in his backpack. (We told you this could be fun.)

• How and Where to Cut Back
• Take a walk in the woods.
• Fly a kite.

How about this idea: Act as though you and your spouse were going on a getaway for the weekend. Find someone to take the kids, pack your favorite clothes, plan a special Saturday afternoon and Sunday brunch, and stay home. Do it all and have a blast, just do it from home. Dress up, light the candles, feed each other food, trade massages, and go wild. You may end up doing things you have never done, seeing parts of your city you have never been to, and saving a small fortune in the process.