With the average American saving around 3.3% it seems like getting out of debt could be difficult. However, in a recent article author Laura Rowley points out,
If savings behavior isn’t changing, consumer attitudes may be. A recent Gallup poll found 62 percent of Americans say they enjoy saving more than spending, while 35 percent reported the reverse. Back in 2006, respondents were split about 50-50 on the question. Moreover, 57 percent say they are spending less money in recent months than they used to, up from 50 percent last July. Among the newly frugal, 38 percent say this spending pattern is the “new normal,” while 19 percent say the budget cuts are temporary.
Rowley goes on to explain that the average American can significantly reduce their debt by using a small portion of their extra income to pay down their debt. In her example she points out that one home owner was able to save $23,900 over the life of the loan by paying $35.86 more a month towards his home loan.
At MoneyDesktop we are passionate about helping people get out of debt as quickly as possible. The best part is, it’s not that hard. Our software shows you where your money is going and gives you step-by-step instructions on how to get out of debt. Results like those mentioned are not uncommon for our users, so if you haven’t already, give MoneyDesktop a try for free today.
Read all of Rowley’s article on Yahoo! Finance here
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Tags: Debt, Debt Elimination, Home Loan
08.Mar.10 
Budgeting, Credit Card Debt, Debt Management, Payoff Mortgage 
Comments (0)
Bank of America may be needing another bailout if it loses their latest lawsuit. This time the bailout would have to be slightly larger than the $45 billion they already received, comprising 30-billion times the world GDP.
Dalton Chiscolm, became angered at BOA after they refused to deposit some of his checks claiming a problem with routing numbers. According to NYDailyNews, “He seems to be complaining that he placed a series of calls to the bank in New York and received inconsistent information from a ‘Spanish womn,’” the judge wrote. “He apparently alleges that checks have been rejected because of incomplete routing numbers.”
The same judge issued an order stating that the suit was “incomprehensible”. Chiscolm’s suit demands damages for his alleged suffering, going so far as to specifically request that”1,784 billion, trillion dollars” be placed as a deposit into his ATM account the next day. Perhaps for good measure, he also demanded an additional $200,164,000.”
Peter Cohan with AOL Beta Finance noted:
“Update. This is not his first lawsuit. In Janaury 2009, Chiscolm sued his landlord for $892 million billion dollars — or $892 quadrillion. In his January complaint, Chiscolm alleged that “Manerment nor mainterntmen had no atcuse’s to go in my apartment what so ever I had to keep a lock no the kichen cabernit.” The court dismissed his complaint.”
photo credit: pixthree
01.Oct.09 Payoff Mortgage Comments (0)
For some time now, Wells Fargo has offered a mortgage acceleration through the use of a home equity account. They package the two as a means of managing finances and paying off a mortgage faster.
This process is referred to as an offset account and involves the use of a home equity line to reduce the amount of interest paid on a mortgage.
According to Wells Fargo, their software lets you:
- Work with your growing asset without reapplying. As principal payments decrease the mortgage loan, qualified customers may become eligible for quarterly increases in their home equity line of credit. Rising market values may also be reflected in annual increases.
- Access funds in many convenient ways. Request a home equity access card or use the convenience checks you’ll automatically receive. You can also go online, visit any local Wells Fargo Bank branch, or speak to our dedicated account representatives.
- Set guidelines that suit your needs and your comfort level. You can choose to decline — or limit the amount of — any increase to your line of credit.
- Plan for life events and make informed financial choices. It’s easy with a simplified monthly statement that combines your first mortgage and home equity account information.
- Factor potential benefits into your financial plan. Unlike other types of credit or some installment loans, the interest you pay on your home equity line of credit may be tax-deductible.
- Convert all or part of your line of credit’s outstanding balance to a fixed-rate, fixed-term advance. You can choose to convert to a fixed-rate, fixed-term advance anytime during the draw period. Depending on the amount you convert, you can have repayment options that may fit your monthly budget and further your financial goals.
Some sites warn that while Wells Fargo is one of the few banks to offer this product, that one may end up with a poor loan rate on their HELOC and may be better off finding a lender with the lowest rate.
This is where Money Desktop can be useful. The Money Desktop software allows a user to use a line of credit as a means of paying off their mortgage early. It’s also significantly cheaper than the thousands one may end up spending in fees to Wells Fargo.
photo credit: TheTruthAbout
21.Jul.09 Payoff Mortgage Comments (0)
A mortgage is generally considered “good” debt because it fills a need (shelter) and is an investment for the homeowner. However, that doesn’t mean you should take the full 30 years to pay off what you owe.
A growing number of homeowners are now paying off their mortgages early, sometimes in half or even a third of the time. Finance experts like Dave Ramsey are even jumping on board the idea of mortgage payoff plans. Why bother throwing extra cash at your mortgage when that money could be used towards other investments?
Here are a few of the best reasons to payoff your home early:
-Save thousands.
By paying down your mortgage, you’ll owe less in interest. Over the life of the loan, that can add up to thousands (or even tens / hundreds of thousands) in savings.
-Protect your loved ones.
By owning your home straight-out, your family members will be in a better situation should you become incapable of working. A mortgage payment can be a heavy burden when there isn’t a steady paycheck coming in.
-Embrace stability.
Putting your money into the stock market may have a better chance at high returns. However, as we’ve seen in the past year, it also presents the possibility of major losses. A home is a more solid investment. Even if the value of the property declines, you still own a real, tangible asset.
-Prepare for the worst-case-scenario.
Mortgage debt is a lot like student loan debt: difficult to get rid of. If you find it necessary to declare bankruptcy, you will probably be required to keep making mortgage payments. Medical debt and credit card bills can be wiped out. But, if you don’t make your mortgage payments your home will fall into foreclosure.
-Plan for an early retirement.
For many homeowners, a mortgage is the biggest monthly expense. Many people work years past retirement age just to afford their payments. Direct your money into paying off your home early and you may be able to retire sooner than expected.
-Achieve independence.
Without the burden of a monthly mortgage payment, you’ll have more money to spend and more freedom to do what you want. Live overseas without worrying about making two payments, rent out your home for extra cash, or take out a reverse mortgage to support you in old age.
Holding on to a home loan does have some advantages, including tax breaks on your interest payments. However, the benefits of deciding to payoff mortgage debt early clearly outweigh the drawbacks.
26.Jun.09 Payoff Mortgage Comments (0)
Rowley goes on to explain that the average American can significantly reduce their debt by using a small portion of their extra income to pay down their debt. In her example she points out that one home owner was able to save $23,900 over the life of the loan by paying $35.86 more a month towards his home loan.