Family: Spending More Than You Make

Spending More Than You Make

Written by Terry J. Rigg

When you spend more money than you make each month you are bound to have money problems very quickly. The bad part is that most of us never realize we are spending that much until it's too late.

How many times have you used repparttar credit cards to buy a TV, school clothes and supplies, fixed repparttar 110352 car, or any number of things and not realized that you just exceeded your monthly income. You may have even realized it but thought there is always next month.

Credit cards are repparttar 110353 biggest culprit but they aren't repparttar 110354 only way to spend more than you make. Things like payday loans or car title loans also come to mind. Paying $15 to use $100 for a week doesn't seem too bad. However, when you consider that you are paying almost 400% in interest over a years time these loans make interest on credit cards look like a great deal.

Normally, installment loans have a lower interest than either credit cards or payday loans but they can still cause problems if you aren't positive that you can make repparttar 110355 payments each month.

I consider a house payment and repparttar 110356 purchase of a car repparttar 110357 only real legitimate reasons for paying interest. Very few people have repparttar 110358 means to make these purchases with cash. If you aren't careful you can still get yourself into trouble by buying or renting more house that you can afford or having car payments that don't fit your budget.

Add A Few Dollars To Your Mortgage Payment

Written by Terry J. Rigg

Many of us don't believe that a few dollars can make a big difference. In a lot of cases that is true. But when it comes to mortgages or any other type of loan, a few extra dollars can save you Big Bucks.

The chart below gives examples of three different loan terms and what paying between $75 to $100 more a month would do to repparttar mortgage. It is based on a $100,000.00 loan at 7% interest.

---------------------------------------------------------------- YearsInt Rate Payment InterestTotal of PaymentsSavings

307% $665.30$139,508.00$239,508.00 N/A Round Payment to $750.00 $93,994.86$193,994.86$45,513.14This loan would be paid off in 259 months instead of 360.

---------------------------------------------------------------- 207% $775.30$86,072.00$186,072.00 N/A Round Payment to $850.00 $69,409.58$169,409.58 $16,662.42This loan would be paid off in 199 months instead of 240. ---------------------------------------------------------------- 157% $898.93$61,789.40$161,789.40 N/A Round Payment to $1000.00 $50,517.67 $150,517.65 $11,271.73This loan would be paid off in 151 months instead of 180. ----------------------------------------------------------------

By adding $84.70 to your 30 year loan you can save $45,513.14 and pay repparttar 110351 loan off in 21 1/2 years.

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