Tag Archives: savings

Tips On How To Buy Your Home Without A Home Loan

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Mortgages are the biggest contributor to people’s poor finances. In fact, mortgage payments can absorb a significant portion of people’s monthly income. Failing to pay mortgage bills on time can have a detrimental effect to your financial situation because failure to pay generally results in additional interest charges and late fees. People who are struggling to get by often seek help from easy cash sources such as quick cash loans, which can add to their negative financial position if they are unable to pay the associated fees. When in a tough financial situation you may wonder if it is even possible to own your own home without more debt.

The good news is it is possible. However for this to happen you need to use less conventional ways of buying a home which are more difficult and require more time. It’s easy to apply for a home loan. But to pay for your home in cash is much more challenging.

In simple terms, all you need to do is save the amount your home costs in cash so that you can buy it without getting a home loan. Houses cost a huge amount and this is the challenge. You will need to be incredibly determined to save so much money, but here are some tips to make it a little easier for you.

1. First, open a bank account which is solely for house savings.

2. Next allocate an amount every month from your salary that will go automatically from your pay directly into the house savings account. This could be an exact dollar amount of your income, or a percentage of it. For example, $2,000 per month or 25% of your monthly income. Employ whichever method works best for you, however it’s important to manage your money so that you know you can afford the amount you have put aside that month for the house savings. Save the absolute maximum amount that you can afford because every dollar you save means you are a dollar closer to affording your house.

3. Having another source of income will significantly help in saving. Consider getting another job, part time or full time, depending on the capacity and time you have. Alternatively you could consider developing a business on the side which you can manage from home around your hours of work. Starting a business is associated with a lot of risks so make sure you have a strong business plan, limited capital is required to start it, and you keep the business as simple as possible. Taking on a second job or running your own side business means you will have a significant additional income each month to add to your house savings account. The money from these side jobs can be put entirely into the house savings account, or at least a large portion of it.

4. Adjusting your lifestyle is the most important thing. This is the time to spend your precious money wisely and practice frugality. Cut back on your costs and expenses to only the absolute essentials. You will have to go without a lot of things while you save for a house. You will have to cease expensive habits like smoking a packet of cigarettes a day or buying clothes from up market boutique stores. The money saved from changing your spending habits might seem small and insignificant on a daily basis, but when you add these savings up over several years, they make a surprisingly large amount.

Although it may take years and years to save enough money to buy a house, it is possible. You need to be very disciplined and focused to save the amount your house costs and avoid falling into the mortgage trap. Remember to be smart with your money and think of easy cash sources which will contribute significantly to your house savings.

CEO Criticises Greedy Credit Card Companies

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CEO of Guardian Group Financial, Gary Forrest, has called for responsible consumer lending as a survey shows 25% increase in average credit card debt; BoE base rate 0.5% with APR’s up to 29.99% In a worrying turn of events, the average person’s debt to credit cards, store cards or bank loans in the UK has risen to £6,400 (excluding first mortgages)a survey released June 23rd 2009 by YouGov for Guardian Group Financial shows.

Forrest said: “The shocking increase in average levels of personal debt is already taking its toll – over half of adults with these debts in the UK are actively worried; with some are losing sleep.   And only 23% have told their partner about their debts!  Guardian and it’s sister company Credit  Issues calls on credit card companies to be much more responsible lenders.  Putting up interest rates is definitely not the way to go about it!”

Guardian can advise on debt management plans for all those experiencing any sort of debt problem, while Credit Issues has successfully challenged credit and store card debt as well as unsecured personal loans, often clearing the entire balance by using the Consumer Credit Act 1974.

The survey shows another shocking trend.  The third and fifth largest areas where people are incurring debt on their credit cards are food and utilities respectively.This should be read as a very serious warning sign.  Since April,  the Bank of England base rate has stayed at 0.5%.Consumers increasingly need help to face up to and manage their debt problems and regain their lives – not to receive yet more pressure from the credit companies.

This dangerous trend has to cease. In the last six months, despite the Bank of England base rate of 0.5%, 12 credit cards have increased their interest rates, including AMEX, Bank of Scotland, Capital One Bank, Halifax and Nationwide BS.  Some cards have increased charges by as much as 10%.  Capital One Bank’s APR can be as high as 29.99%.