Why do banks and other lenders keep lending money to unsuitable, high risk candidates who far less likely than normal to repay the money. There are guidelines set in place that are intended to prevent repayment problems, but many of these are being ignored or bent by lenders for clients. It makes no sense that lenders would act against their own best interests, but that is what seems to be happening more and more often at the moment. A large number of different guidelines that seem to have been standard in the industry appear to have been brushed aside.

This is believed to be so that lenders can take advantage of the increased number of people involved in the property market. The price of property has sky rocketed which means that people need to borrow larger and larger sums of money in order to afford decent property. The lenders are happy to lend extremely large sums of money to those people who wish to enter the property market. This can bind the borrowers to that financial service provider for the rest of their lives, or at least that seems to be the mentality. The focus seems to be on gaining a greater number of clients, without to much thought about how those people are going to repay their loans.

The upward nature of the property market seems to be dependant the willingness of lenders to provide mortgages and loans of increasing amounts. The requirements that the lenders analyse in order to ensure that a loan can be repaid are being altered as well so that a greater number of loans can be approved. This is leading to a skewed picture of the borrower's true ability to repay the loan or mortgage and is contributing to the number of people who are unable to repay their loans. There are a large number of reports of potential borrowers and loan applicants being told exactly what to say on their form to get the largest possible loan available to them.

The length of home loans and mortgages as well as the percentage of the total property price has been increased dramatically over the last few years. This is due to the desperation of people who want to enter the property market but are unable to do so. This desperation leads them to agree to financial terms that are outside their abilities and the effect is that neither side ends up profiting from the deal. The borrowers often end up without their home if they cannot afford to repay the loan, as well as receiving a bad credit record. The lenders may recoup their money, but it takes a long time and can often end up costing them money as well.

In his book, “Success Principles,” Jack Canfield shares a story about working with W. Clement Stone, a self-made millionaire worth $600 million in 1969. He tells how Mr. Stone pulled him aside one day and asked him if he took 100% responsibility for his life. Jack stutters, “I think so.” Stone replies, “This is a yes or no question, you either do or you don’t.” Jack goes on to assure him that he does indeed take responsibility for his life. Stone asks: “Have you ever blamed anyone for any circumstance in your life? Have you ever complained about anything?” Jack admits he has.

Stone then goes on to explain:
“That means you don’t take 100% responsibility for your life. Taking 100% responsibility means you acknowledge that you create everything that happens to you. It means you understand that you are the cause of all your experience. If you want to be really successful, then you will have to give up blaming and complaining and take total responsibility for your life – that means all your results, both your successes and your failures. That is the prerequisite for creating a life of success. It is only by acknowledging that you have created everything up until now that you can take charge of creating the future you want.”

It’s a simple concept, to refrain from blaming and complaining, and yet it’s a challenge to change a habit, especially one that everyone else has. Like sticking to your diet, when everyone else around you is enjoying chocolate cake. It requires you to resist the impulses, tendencies, and trends that don’t really get you where you want to go. Keep reading and you’ll find out how this relates to your marriage and finances. Then I’ll share some action steps to help you become 100% responsible for your life.

Three ways we avoid taking responsibility− especially when it comes to money and marriage

1. We make excuses

Anytime we make an excuse we’re not accepting complete responsibility for our lives. We say things like: That’s just the way it is, I can’t… and I’m just not good with…

And when it comes to our money and marriage:

“My partner never listens to what I have to say, and spends money however he wants, and that’s just the way it is.”

“I just can’t make enough money to support my family, so my partner has to make enough to cover our family expenses, and that’s just the way it is.”

“I’m not good with money, so I just let my partner handle it.”

2. We blame and complain

We blame our spouses for our financial and relationship challenges. We complain about their spending habits and behaviors, that they’re untrustworthy, or too controlling. While we may be speaking some truth, blaming our partner implies that we are powerless to change our circumstances, and so it gives us permission to do nothing. I had one client who wisely told me, “I get so upset with the way my husband controls the checkbook− and I realize now why it’s easy for me to just blame him, because then I don’t have to do anything about it."

3. We make commitments and break them on a whim

Many people, who are thousands of dollars in debt, struggle with making impulse purchases that aren’t in alignment with their financial goals. Others spend time creating a budget only to blow it as soon as the desire comes over them to go shopping, or buy some “essential” purchase. I call this the “I want what I want, when I want it” syndrome.

I recall the words of two husbands who attended one of my “Financial Dating” workshops:

“If I head out to the mall with my kids, I’ll easily blow $50, without giving it a second thought. When it comes to my kids, I don’t always consider the big picture, like what my wife wants, what’s good for our family and how much we have in the bank.”

“I’ll write my budget, and calculate how much money I should spend in each category and yet, if something comes up in the moment, like say my wife wants to go out to dinner, I’ll do it, regardless of whether or not I’ve already spent what I budgeted for eating out. If I want something, I’ll go out and get it, budget or no budget.”

Likely you recognize some parts of yourself in the comments above. Taking 100% responsibility means taking the road less traveled−it requires us to break the habitual patterns of excuse-making, blaming, complaining, and acting impulsively against our better judgment.

Despite the challenge, we can be light with ourselves about it, laugh at our tendencies, and still walk the difficult, but rewarding path of change. For now, I invite you to dive into the actions steps below, and enjoy the life of success that W. Clement Stone spoke of when he taught Jack Canfield about taking 100% responsibility.

Action Steps

1. Track your excuses. Write down or keep a mental note of when and how often you make excuses, complain, blame and do things impulsively, against your own better judgment. Notice what you say to others, and what you tell yourself that keeps you from taking 100% responsibility.

2. Create new habits. Make a point to interrupt the speech and actions that don’t support you. Interrupt excuse-making, blaming and complaining, and replace them with “I statements” about how you feel. Keep the focus on yourself - your feelings, your desires, your actions. Find ways to prevent impulse spending: use personal financial software like Quicken to track spending, so you can identify spending patterns that don’t support your top financial goals.

3. Get support. Ask your spouse, family member or close friend to help you notice when you’re blaming or complaining. Ask them for help sticking to your commitments and spending plan. If you’re ready to move at quicker pace, consider one-on-one coaching. Email me for more info.

Banks in the UK are creaking under the strain. They are being bombarded by demands from thousands of angry customers reclaiming all charges taken from them by the banks over the last 6 years. This all follows a case last year when a customer took a bank to court to claim back these bank charges. The bank failed to appear at court to defend the claim and the court ordered the bank to refund him all the charges. The story soon spread and has mushroomed into a media frenzy on the subject, as thousands of customers join the revolt.

The mass media coverage has also led to The Office of Fair Trading (OFT) to launch an investigation into the level of bank charges. In April 2006 the OFT ordered credit card companies to reduce their charges for late payments and over limit fees to a maximum of £12.

The original court case against the banks was taken by a solicitor. He claimed that the charges levied by the bank constituted a financial penalty which is unlawful in the UK for non-negotiated contracts. This relates to a 1915 law. The terms and conditions of an account form a non-negotiated contract. Under the law, banks are only allowed to reclaim their actual financial loss in relation to a breach of contract. This means if a customer goes into an overdraft situation, and the banks send out a computer generated letter, they are only allowed to claim the cost of producing and posting this letter. Banks generally charge £28-£40 for such breaches. They often apply this same charge every day that someone remains overdrawn and for every cheque and direct debit they do not pay during this same period. These charges are widely thought to be disproportionate to the bank's actual cost of managing the overdraft, and therefore represent a penalty which is unlawful.

UK law allows anyone to claim through the courts all monies owed to them for a period of six years. Although the banks have defended their charges to the media, they have yet to defend a court action against them. This is because they would have to clearly demonstrate in court the actual financial loss incurred for each charge they apply. If a case was found against them, they would be forced to repay all charges to all customers for the past 6 years. It would also destroy their fee charging structures, which is thought to be no more than a profit generating mechanism. Last year these penalty charges netted the banks £4.5bn in profits. Rather than risk this in law, the banks have been repaying customers who complain, without admitting liability.

However, the banks are not simply refunding everyone. They wait until court proceedings have been issued against them by a customer before paying, in the hope that many will not see the 'procedure' through and drop their claims. In the meantime, and until they either try to defend a court action and lose, or the OFT force them to reduce their charges, they continue to levy them on probably the most needy people who are already finding it difficult to manage their money.

Credit cards have had a big impact on our lifestyle. And with the popularity of online shopping fast on the rise, the significance of credit cards is expected to increase even more.

Also known as plastic money, credit cards are a replacement for cash. It is much easier to fit this small card inside your wallet than to carry a large amount of cash. Better still, you can buy items with credit cards and if you need cash, you can always withdraw it from an ATM.

One of the international market players leading this payment system is MasterCard. MasterCard credit and debit cards are the brands marketed by MasterCard Incorporated. MasterCard with its network spread in about 210 countries across the world is one of leading credit cards in the world and the number two payment system in the US.

The MasterCard credit cards are quite popular as a premier brand. Simply known as MasterCard, they are one of the most preferred and trusted credit cards with the consumers. MasterCards are issued by several partner banks and are designed to target different financial and credit situations.

MasterCards, like other credit cards, are of four types: standard credit cards, credit cards with rewards programs, specialty credit cards, and credit cards for bad credit.

Standard credit cards are readily available and issued. They are also the most common form of credit cards. Credit cards with rewards programs are offered for the benefit of certain section of people. You get rewards in terms of points or discounts when you purchase items with your MasterCard. Credit cards for bad history are secured credit cards designed for those customers with a poor credit history. Giving special attention to students and people in big businesses, MasterCard issues special credit cards suiting their credit requirement.

JPMorgan Chase and Citigroup are the two largest shareholders of MasterCard. The following credit cards are some of top brands from MasterCard:

Citi® Platinum Select® Card has climbed the popularity chart with its 0% APR on balance transfers and purchases for 1 year. The regular APR is also very reasonable at 11.24%. Another enticing feature is its free and secure online account management. It also carries no annual fee.

With Citi® Diamond Preferred® Rewards Card, you can earn 5,000 bonus points after the first purchase. Also get 5 reward points for every dollar on purchase at supermarkets, gas stations and drugstores. This reward card from MasterCard is worth its 13.24% regular APR. There is also a 0% APR on balance transfer for 12 months.

If you are looking at additional benefits and perks, MasterCard has HSBC Platinum MasterCard. Some of the benefits offered are extended warranties, unlimited purchase protection, and travel accident insurance. It carries no annual fee. There is no APR on both purchases and balance transfers for 12 months. The regular APR is 11.24%. Other benefits are free online bill payment, secure and free online account management.

For music lovers, MasterCard has Universal Entertainment MasterCard®. Cardholders can earn 1 Universal Point for 1 dollar spent on purchases and 2 points on select purchases made at Universal hotels, theme parks, and resorts and redeem those points for Universal products such as DVDs and CDs and also admission at theme parks. There is no APR on balance transfer for up to 6 months. The regular APR is 13.99%.

For people who love to sit behind hot wheels can opt for GM Card®. With this card you can earn 5% toward the purchase or lease of a new GM car, truck or SUV. There is 0% introductory APR for 12 months. Free and secure online account management is also offered.

Other popular credit cards from MasterCard are Universal Entertainment MasterCard®, Continental Airlines World MasterCard®, and Marathon® Platinum MasterCard® from Chase.

Bank charges in the UK are so high that many have claimed them to be unlawful. Banks often charge between £25-£40 if someone falls into an unauthorised overdraft situation. Many charge this amount every day you are in overdraft, and charge a similar amount for every cheque, direct debit etc they do not pay and also for letters they send you to inform you of your position. The effect of these charges can worsen your overdraft, meaning even more charges will be added to your account. This is thought to be grossly unfair.

Bank charges are thought to be disproportionately high to the actual cost of the bank to administer your overdraft. Any charge over and above the actual cost of the action is deemed to be a financial penalty. These penalties are unlawful in non-negotiated contracts, such as the terms and conditions of your bank account. It is possible to reclaim up to six years bank charges, if they are deemed unlawful

Thousands of people have already reclaimed millions of pounds of unfair bank fees from their banks. Most have had to file a court claim for the charges, before the banks will pay up. However, to date, the banks have failed to defend any court action taken against them to reclaim the fees. This is because they would find it extremely difficult to prove that their actual loss for sending you a computer generated letter about your overdraft cost them £35. Also, if they lost such a court case, then the flood gates would open for claims against the banks, and their lucrative charging structures would be doomed. Banks in the UK make over £4.5bn per year profit from these penalty charges.

At present the Office of Fair Trading (OFT) is investigating the level of bank charges in the UK. They are due to issue their report soon and are expected to demand that the banks cut their charges to a lower, fairer value, or face court action against them from the OFT. Last year the OFT ruled that credit card companies had to reduce their fees to a maximum of £12 for any breach of contract by the customer. They have until 30th May 2007 to comply or face the courts.

Nowadays, women are taking leading roles in the workforce. In many households they are breadwinners and collectively generate substantial wealth. Being mother is even tougher. Not only are they one of the breadwinners and parent, they are also responsible for all the household chores. As they become more assertive in the workforce, it is imperative that they also become more confident in managing personal finances. However, while prioritising tasks, inevitably, it's financial planning that comes last on the list. Unfortunately, one really can't afford to do that. Planning is vital for the financial health of the entire family.

One big problem is that today people live in a world of plastic and, for all practical purposes, we do not respect or understand the value of cash. Easy access to consumer credit and multiple means of payment, ranging from credit cards, online bill payments, cheques, and automatic deductions from salary and bank accounts, have all contributed to a cashless system that loosens the control on total spending. On many occasions, our impulses get the better of us.

Very often, we spend our hard-earned money guided by our feelings instead of reason and rue our decision later. Many a time, by spending indiscriminately on the child we end up seriously undermining our own and our child's financial stability. Financial planners will confirm that this is reason enough to start worrying. For it's the unplanned and easily forgotten expenses that can run the best laid financial plans aground.

But before you begin the journey to financial freedom, determine where you are financially. Make an approximate, if not exact, assessment of your assets and liabilities. In case your assets are greater than your liabilities, then you have a positive net worth or else you have a negative net worth. In this case, the choices are to cut expenses, increase income or do both.

HOUSEHOLD BUDGETING

It is widely felt that if we understand and follow the basic principle of "Household Budgeting," we can change our life forever. Our life will be less stressful financially and we shall be taking our first major step towards "financial peace of mind". It is an easy principle to understand; however it may be diffIcult to follow. The best way to sort out one's financial life is to budget expenses. The crux of budgeting is to know your monthly spending needs and habits.

Track your cash flow to see what comes in and what goes out. So, first take account of the post tax take-home money that you earn. Then collect all your bills, credit card statements, cheque book statements and receipts for anything you buy with cash, whether petrol, LPG, groceries or takeaway Chinese. At the same time, you should be able to log in expenses under major heads like school fees for the period. Clothing, eating out, entertainment and holidays are heads of expenditure which need to be carefully watched.

One must try one's best to keep spending on these items within the limits imposed. You must also monitor your ATM withdrawals, decide how much to take out each week and stick to it and then make it last. The idea behind the whole exercise is to rein in spending: if loose spending is to be done, do so from the profits generated by you from your investments, not income.

MINIMISE SUDDEN CASH BURDENS

Typically living a credit-fuelled life means you are leveraging your future income. But while following the system of using cash for purchases, once you have used all your cash, there will be no spending until your next paycheck. This is tough! No credit/debit cards?

Another way is to get two sets of envelopes, one for monthly needs like food, medicine, utilities and the other set for periodic payments like insurance, property tax or gifts. Put the exact amount allocated for monthly spends into each envelope. When you need groceries, for example, take the labelled envelope along, so that you know how much is spent and how much is left over for the rest of the month.

There is no question then of overshooting the budget. For periodic payments, divide the annual spend by 12 and put away the required amount every month. Make sure you allocate enough money to pay your rent/mortgage, utilities and any other fixed expenses you may have. This way you also minimise sudden cash burdens such as a tax payment rearing up at the end of the year. Do this for as long as it takes to grasp budgetary discipline.

PRACTISE SAVING

Many people also practice the simple yet very effective technique of saving. So start saving, at least 10 per cent of your income. Less will do, as the idea behind it is to get into a savings habit mode. Once into the habit, save consistently and increase the amount as per need. You will have to find many new ways to manage your cash and the first few weeks will be the toughest. You may even run out of cash before your next payday. However, after several weeks, it will get easier to manage your cash and you will be surprised to find extra cash available before your next paycheck.

GENERATE INCOME FROM SAVINGS

Once your budget has created a pool of savings, view it as an investible surplus that you now need to begin working on. Make your money work for you by investing the accumulated surplus and you will find that the returns generated have come handy for you one day. Review your investment surplus periodically to ensure that you are not missing chances to accumulate more.

SUMMARY

Proper planning for future financial needs is critical to financial security. We all need to watch where our money is going during any given period of time. For people who have ample wealth, the exercise is optional. But for the rest of us, we have to do this because our money is going astray. Very often it is used up for obtaining objects and services not truly important to us and completely out of sync with our long-term financial goals.

Here are a few tips to take care of overall financial planning:

- Budget for immediate expenses with a contingency fund that covers living expenses for four months.

- Insure life and medical expenses

- Leverage debt to build long-term assets like a home.

- Invest for your child's education and your own retirement needs.

Ignorance is not bliss when it comes to money matters. People should be aware of the investment avenues, which can enable them to manage money. We should spend on luxuries but at the same time keep some money for rainy days. We should save and not spend recklessly keeping in mind the uncertain future. It calls for development of a sense of discipline to overcome the urges.

With instant approval faxless payday loans you can get the cash you need almost instantly! That's right, just a few steps and the cash you need will be on its way.

Here's how instant approval faxless payday loans work. You complete an online application and usually within minutes, your loan is approved or denied. There's no live person-to-person contact, and you have complete privacy.

You'll need basic information to complete your application. Your employment, your home, address, your social security number and your drivers license number is usually required, so be sure to have it handy before you begin your application. A copy of your most recent pay stub is also necessary. All of this information is verified, so make sure to enter your information accurately.

Specific bank information is also required. Your banks routing number and your account number will be necessary in order for the funds to be deposited. You must be the owner of the account where the loan amount will be deposited. Once you've entered all the information and your loan is approved, the money will usually be deposited into your account within twenty-four hours.

** Make Sure You Understand What Happens After Your Instant Approval Faxless Payday Loans **

The interest rates charged on most of these instant approval faxless payday loans are usually very high. Some may be as high as thirty percent. This interest is monthly, not annually. For example, suppose you borrow two hundred dollars. At the end of the first month, you would owe $260.00 or thirty dollars for every one hundred you borrow. . Interest continues to accrue until you pay the balance owed.

Instant approval payday loans can be very helpful in case of emergencies. Emergencies do happen. If you're just behind on a bill, try to work out a different arrangement with your creditor.

If there is an uncommon situation in your life that's preventing you from paying those you owe, talk with them. Explain your circumstances and try to make an agreement you can accept. This can save you much in high interest rates. Most creditors will work with you if you just talk openly and honestly with them. Don't avoid the situation.

While instant approval faxless payday loans can be the solution in some cases, it is usually better to try another route, unless you're willing to pay the higher interest rate. Make sure you understand your obligation before you accept the loan. Make sure you understand the full amount you'll be paying back before you choose this type of loan.

Saving pocket money is what we are all attempting to accomplish each day of our lives. With the way, the world we face combative challenges all the time and the unemployment rates are soaring higher. Still we can save money at the laundry, stop smoking and so on.

Utility room expenses:

You can save money each week. Instead of visiting the laundry, mat three or four times a week, start going to the laundry once each week. Try to save $2.00 or $3.00 each day or week so that you can have it for purchasing your own washer and dryer. Rather than spending money on drying clothes bring some of the attire home with you and hang in on a line, especially on sunny days.

Some of us are restricted from hanging cloths outside insomuch as of rules and regulations in our areas. Rather than hang your cloths outside you can buy cloths bars and await things like tiers and permanent press things on hangers to hang dry. The less amount of cloths in the dryer the less it will cost you to dry them.

Smoking:

If you stop, smoking now you can save $50.00 each week. Smoking is bad for your health and can cause diseases, such as black lung cancer. Save pocket money by tossing those cigarettes and that lighter in the garbage can and spare your health too.

Gas station:

The price of petroleum these days is around $2.79 per gallon. If you are voyaging 10 or 20 miles twice in one day and on for two record and make a trip to town for milk you have traveled a total of 50-60 out-of-the-way* when 20 would have done it all.

Saving Money on Pets:

Do you have cats? Cats sometimes have high maintenance fees attached. We often associate pets as our truelove knot as we love puppies and kittens. A roost* is large enough for a single pet but keep it down and only have one to save expenses. Get you pet fixed to save money.

A single trip to the veterinarian may cost you $100 just once a year for their shots and worm antiseptic...

Perk from saving $120.00:

You could pay that doctor bill you did not have cash to pay last week. If you save $130.00 by cutting back on the anti-static sheet, going to town once, a week and taking only one pet to the veterinarian you can pay your bill to miss late fees.

Save money by paying your bills on time. If you pay your bills on time, you will cutback the expenses of late fees. Late fees can ring up on the cash register so pay those bills on time.

Saving money is to heave a sigh of relief as well as something that is easier said than done. Some of us have no problem saving a few pennies for rainy days, yet others find it difficult to hold up, especially when cash is low. One of the best ways to save money is to recycle. In fact, in various areas of the UK, if you do not recycle you are penalized.

Recycling has become very in vogue these days. The landfills are getting full and it is hard to dispose of paper product, soda or beer cans, plastic, and garbage bags.

Recycle your plastic bags that you get from the grocery reservoir. Many tribes altogether toss the bags in the garbage failing to realize they can save money. Why not reuse the clean bags you get from the store. In addition, if you purchase groceries at Save-a-Lot to save money. You can save additional cash by bringing your bags back to the store, rather than buying new bags each time.

Reuse you clean bags from the store by using them for wastebasket liners. Know something else that can crochet save the bags and have your friend crochet you a rug to put in forward of the back door to catch the mud and dirt heretofore it get on the carpet. This will save money you from buying wastebasket liners and save the carpet from getting all stained from dirt and mud being tracked in.

Do not waste that food that your brood is throwing in the garbage they did not like. Just put a little bit on their plates or teach them to set about out little they can always have more.

Freeze leftovers from your meals for a rainy, cold, and nasty day. Make a pan of soup with what is liberal from other meals. You can refreeze meat once it has been cooked and vegetable can be frozen as well. Leftovers with a little seasoning make a great hot meal and it is quick to fix.

Recycle you aluminum cans instead of throwing them in the waste disposal unit. It only takes minutes to rinse them out and drain dry. Once they are rinsed and dry, smash them, and put into a garbage bag. Right now a large garbage bag will give you around $5.00 or more to put in the temporary agency for a rainy day. You don't have to waste gas to take just one bag to recycle wait until you have 3 or 4 and take them to sticks* when you go to the doctor or grocery store the next time.

By recycling, we can save a lot in stretch fill and put the money into the bank for a rainy day if you need to use it you will have it. Saving can be fun at intervals do not listen to what your neighbor gab*s hardly they see you smashing cans. They are probably pondering over; "why didn't I understand about that."

Save on your monthly telephone bill by not making so many long distance calls if it is not necessary. Buy yourself a prepaid phone card to use for those call in the subsequently boonies to talk to your family.

When the ring up card is strung out* up you altogether will not be capable of to make any more until you have the extra money to buy another one. Some call cards cost less per nick of time than your phone service will charge you.

Become artistic in saving money and you will discover many things that you can save by utterly using a dwarf amount of your time and effort.

If you are one of many consumers who have surpassed their spending limit and are feeling the pressure of debt collectors or have suffered the closing of their credit cards, we can give you some interesting hints as to what can be done in these circumstances. It’s true that it takes some patient negotiation and effort on your part, but it is absolutely repairable.

If You Are A Tenant

Not being a homeowner makes things a little harder for you, but there is always a way. The possibility you have in this case is an unsecured personal loan. There are loan brokers or lending companies that specialize in unsecured personal loans for people with bad credit. We must admit that by now, your credit report will have begun to show each payment that you missed or paid late.

As a first step, you will have to know exactly how much you owe, how much could be written off for a prompt payment and therefore, how much the loan will be for.

Conditions

Unfortunately you are learning the hard way, so this will surely be a one-time-lesson that should get you on track towards a better control of your spending. It is important to give these matters a high priority and look around for the mildest conditions available for your situation. A difference of one per cent or even half a percentage point in the interest rate will mean a lot to you, since you are counting every cent and distributing your scarce cash as best you can.

The Length Of The Loan

This factor is also very important since one year more in length will mean a bunch of dollars more in your hand every month. If things change while the loan is in force, you can always refinance for a shorter period and get over with it faster. Remember that you are trying to get out of bad credit, so it is very important that your payments, whatever they are for, are never late and if possible a day or two in advance.

Getting Prepared

If you feel that you are not decisive enough, get someone to help you out, with an opinion or even going with you to the interview with the loan agent. Doing your “homework” means re-editing those old school techniques of taking note of what is being offered, asking questions about what you don’t know, not giving a definite answer yet and studying the situation at home, if possible with a copy of the contract that you will eventually be signing.

Good Company

The ideal person to study this up with is your spouse, since you are both on the same boat and have to bail out together. However, it is important not to be alone and since a financial advisor also costs money, a good, knowledgeable friend or co-worker will do.

A loan is not just “free” at the moment of closing: It has some fees that have to be paid. Maybe your lender will agree to spread them over your monthly payments, but some of them will have to be paid at closing time.

Things Begin To Happen

Once you have defined who will grant you the loan, start to distribute the payments and stick to your decisions. You are in the process of replacing many debts for just one, with a more manageable amount and the certainty that you are running out of the ditch fast. This behavior will shortly improve your credit rating and will prepare the way for a much more interesting future.