Bad Credit: Options for Refinancing a Mortgage

Like many people, the recession hit me pretty hard. Thanks to a job loss, I got behind on some of my credit cards. Even though I did mange to make the mortgage payment every month, my credit rating nose-dived. While things did get better, I still wondered if it would be possible to refinance my mortgage with bad credit. After talking with a few lenders, I found out that my situation was not unique. I also found lenders who were willing to work with me. I managed to get terms that will save me money over the life of that mortgage. If your credit has taken a beating, don't assume that refinancing is out of the question. I'll share how I researched options and found a lender who offered a good deal. You could find that refinancing your mortgage is within your reach.

Want To Retire Extremely Early? 4 Steps To Start Your Path

Finance & Money Blog

In the United States, the desire to retire at an early age and live a frugal, but rewarding, life on your own terms is a growing movement. FIRE (Financial Independence, Retire Early) represents the most extreme goals of this movement — often helping people become free of the daily work grind as early as their 30s. 

If this idea sounds like something you want to reach out for, here are a few steps to reach your goals.

1. Write Down Your Situation

The first step toward taking control of your finances is to understand them as they really are. Many Americans have no idea of their real assets, complete debts, and their ability (or inability) to live on what they are earning. Credit often masks problems, as does having a variety of bills scattered throughout the month. Put everything together and start making a plan to simplify and exert control. 

2. Examine all Expenses

Once you know what you are currently doing with your money, look for ways to make positive changes. It's no secret that those who want to retire very early must be willing to live a much more frugal life than many choose to. You will need to commit to this lifestyle now if you want to reach your retirement goals.  

Examine each expense to determine if it's worth keeping. Does it add enough value to your life to accept that it works against early retirement? If not, how can you get rid of it? Or can you at least minimize it? 

3. Calculate Retirement Needs

Your current financial picture is only half of the journey toward financial independence. The other half is knowing where you need to end up. Each person's lifestyle and goals determines what their "magic" retirement number is. Use retirement calculators to determine how much you are likely to need and what is needed to get there. Retirement calculators help factor in things like rising inflation and the power of compound interest.

4. Value Your Time

Workers tend to think of things in terms of dollars that they cost. But, in actuality, those dollars represent a certain amount of your time and life energy. If you earn, after taxes and expenses, $20 per hour, you purchase an expensive dinner not with $50 but with two and a half hours of your life. Is it worth that? 

Thinking in these terms helps you reduce expenses, focus on important things, and look for ways to boost the value of each hour of your life. A job that pays similarly to yours, but comes with fewer expenses, for instance, increases the amount you earn for each hour of your time. Passive income sources and investments add more value to each hour, since they build up when you're earning other money.  

As you start following the path of financial independence, you may struggle at first. But, over time, you're sure to discover that being free to pursue your life as you want it is worth all the effort. For more information, reach out to a company like Pralana Consulting LLC


30 July 2019