Finance: The Debt Free Lifestyle

The Debt Free Lifestyle

Written by John Cook

Many people have been taught that you cannot get ahead without debt. We are also inundated with advertising telling us we can have anything we want. All we need to do is put it on our credit card.

We have become an impatient society, we want it right now. We have lost repparttar ethic of working for what we want.

It is not how much money you make; it is what you do with it. By living without debt you can actually have a higher income since you are not paying out interest, you are actually getting paid interest on invested money.

All debt is not created equal. We will classify them as good debt and bad debt.

To simplify repparttar 111748 classification we will say that good debt is a loan for something that you could sell at any time and repay repparttar 111749 debt. This narrows down good debt to a home loan and possibly a home equity loan.

A bad debt, of course, is a loan on anything that will lose value.

Let's take a look at some debts that we would consider bad debt.

Home equity loans are in repparttar 111750 gray area. They could be considered good debt if they are used to repair or improve your home, but you would be a lot better off to just save up repparttar 111751 money for repparttar 111752 project. Home equity loans become bad debt when used for purposes other than home improvement or maintenance. In other words a bad home equity loan is for anything that does not add to repparttar 111753 value of your house. Do not jeopardize your home by taking out a home equity loan on unnecessary items.

One possible good use for a home equity loan is when repparttar 111754 interest rates are low. You can use a home equity loan to refinance your mortgage. Home equity loans generally have lower costs than conventional home loans.

California Bad Credit Mortgage

Written by Carrie Reeder

California is a beautiful place to live There is no doubt about that. But, to live in California you must pay repparttar

price, which is sky high real estate prices. Renting, as opposed to buying in California, can save a little bit of money. However, renting has repparttar 111747

disadvantage of not building any equity. As home prices in California continue to rise, you may want to be a homeowner and take advantage of repparttar 111748

home appreciation factor. If you're going to be paying a lot of money to live in California anyway, you might as well be making some money on top of it too, right?

Now, if you have bad credit and are trying to get a home loan for California home prices, this may seem like an impossible situation. Home prices are high and if you already have poor credit, repparttar 111749 fact that you need to be approved for such a high loan amount can be an added difficulty when trying to get a home loan.

However, there is hope. There are so many programs available today to help people with recent bankruptcys, collections and even foreclosures, obtain mortgage financing. There are nationwide mortgage service companies that can either approve you directly or get you in touch with a lender who can approve you.

Here are some suggestions of things you can do to aggressively help yourself get qualified for a mortgage loan in California, with a bad credit history:

1. Pull your credit and review it - Pulling your own credit will not negatively affect your credit score like having someone else pull it will. For a list of repparttar 111750 links to repparttar 111751 three major credit bureaus, click on repparttar 111752 link at repparttar 111753 bottom of this article. Look over your credit history and make sure that everything is reporting accurately. Sometimes, something as small as an account being reported as currently being due as opposed to being included in a past bankruptcy can be repparttar 111754 difference of 10-15 or more added points to your credit score.

Make sure every account that is closed is reported as being closed. Make sure that every account that was reported in a bankruptcy is reported that way, and not being reported as money still owed. If you have small collection accounts, try to pay them off and then fax confirmation that repparttar 111755 account was paid off to repparttar 111756 major credit bureaus so that they can adjust your credit report right away. Editing this information on your credit report is easier than ever today because all three major credit bureaus now make it possible to dispute and inaccuracies online. You could pull all three reports, dispute all inaccuracies and be done in less than an hour now. Just a few years ago, it used to take hours or days to fill out all repparttar 111757 necessary paperwork.

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