GET DEBT OFF YOUR BACK !

When It’s Raining

The Ideas Are Pouring

On Active Rain

Whether you are a potential home buyer, a renter or you already own your home debt is a burden you can live without.

Last year I started listening to Suzy Orman and Dave Ramsey tout the benefits of being debt free.  Like many Americans today I felt debt was a necessary evil.

I was making higher than minimum payments on credit cards, but my balances still did not go down significantly.

Some of the advice from hard core “debt free” devotees is a little hard to follow, at least for my lifestyle.  You do not have to change ALL your habits to be successful at paying down debt.

Debt is directly translates to your FICO or credit score.  Your credit score dictates the cost you will pay for a mortgage or car loan.  In some instances it prevents you from owning the home of your dreams. 

You can make a significant impact on your score by adopting new habits.

The road to changing my life came gradually.  We will be writing a few articles to give you some ideas.  If you want to improve your credit score and reduce your debt you may find this information valuable.

I started to look at my buying habits. 

Keep a log of everything you spend for an entire month.

Write down lunches, newspapers, magazines, movies, latte etc. 

I was astounded at home much I frittered away. 

I listed all of my “necessary evil” payments. Mortgage, car payment, car insurance, cable, phone service etc.  Looking at the necessary payments I could not see any wiggle room. 

Where will I get additional money to pay down credit card and loan balances?

I decided to investigate the cost of auto insurance.  A word of caution here. 

Many insurance companies base your premium on your credit score.  Inquires by insurance compaines into your credit file can cause your FICO score to go down.

I googled all the insurance companies who do not pull a credit report.  Many national firms will quote you and not base your premium on credit score.

My first call was eye opening.  I was quoted by a national company a premium that was $2300.00 less annually than what I had been paying for years.

The coverage was identical.  Additionally by having the same insurance company write my homeowners I saved an another $500 a year.

I had just paid my annual homeowners premium so I received a $500 refund check.  I was saving about $180 a month on my car insurance under the new company.

The first month I paid $680.00 on my credit card balances. 

That was a nice chunk. What was nicer was seeing a balance go down significantly.

My next project was my phone bill.
I need a land line and a dedicated fax line.  I had unlimited free calling in the U.S. with Verizon. My bill was $90 per month.  My dedicated fax line cost $32.00 a month.

I investigated Vonage.  For $42.00 a month I have all the same features, 2 lines plus international free calling.  A savings of $80 per month.

Two changes in my comfort zone equaled a savings of $260.00 per month that I could use to pay down debt.  That’s an additional $3120.00 to apply to my debt annually.

Look at your own lifestyle.  What can you change? It does not have to be painful.

In subsequent articles we’ll outline more finance strategy.

Find more spare change - Budget Expense

Which credit or debt to pay down first

Balance credit to maximize your score

MARKET UPDATE BY SCHOOL DISTRICT

AUGUST 1, 2009 - AUGUST 31, 2009

ABINGTON HEIGHTS

Chinchilla, Clarks Green, Clark Summit, Dalton, Glenburn, Newton, Ransom, South Abington, Waverly

Units Sold              21

Aver Sales
Price                    $224,621

Median Sales
Price                    $193,900

Aver Days
On Market                  98   

Information provided by Scranton Board of Realtors and deemed to be correct.  Author is not responsible for any inaccuracies or typographical errors.

MARKET UPDATE BY SCHOOL DISTRICT

AUGUST 1, 2009 - AUGUST 31, 2009

SCRANTON CITY

Units Sold              24

Aver Sales
Price                    $93,783

Median Sales
Price                    $91,005

Aver Days
On Market                  85  
Information provided by Scranton Board of Realtors and deemed to be correct.  Author is not responsible for any inaccuracies or typographical errors.

Everyone knows that if you eliminate the middle man you can save money.  Buying milk directly from the dairy is cheaper than buying milk at the grocery store.  Absolutely correct!

Does the same logic apply to the most important purchase you will make in your life? 

You have heard that if you eliminate the Realtor and deal directly with the seller you’ll get a better deal. After all if the  seller saves the commission they will pass the savings onto you, right?. 

It is only human nature that a seller will want every possible dollar out of their home.

            Could you be walking into a sticky spiders web?

Why do sellers want to market their homes alone?

To identify all the motivations would require another series.

Let’s look at two which could impact you adversely.

• The property is over priced

• There are material defects with the property

The seller may justify his/her price by pointing out upgrades to their property?  How do you know those upgrades actually increased the value of the home?  An in- ground swimming pool may have cost the seller $30,000.00, but did it increase the value of the home dollar for dollar?  A Buyers Agent would take the upgrades into consideration when comparing properties.

Won’t the appraisal protect me from overpaying?  Generally, that is correct.  What will you do when the seller says he/she feels the appraisal is inaccurate and won’t budge off the agreed upon sale price?  This could result in a stalemate between you and the seller.

How will you get negotiations back on track?  An experienced Realtor knows how to move this forward working solely in your best interest.

How do you know if the seller is being honest regarding the condition of the property?  Would it be important for you to know the basement gets flooded during heavy rain storms?

In Pennsylvania and many states the seller is required by law to prepare a SELLERS DISCLOSURE.  The disclosure mandates the seller to reveal to prospective buyers, everything the seller knows about the property.  The good - the bad - and the ugly. The disclosure is comprehensive and requires the seller to answer very specific questions for the benefit of the buyer.

When you tour a home with a Realtor in Pennsylvania they supply you with the SELLERS DISCLOSURE.  When you tour a home FOR SALE BY OWNER - does the seller voluntarily supply this document to you?   If not, should that cause you to wonder why?

It could simply be that the seller does not know it is required by Pennsylvania state law.

Without the SELLERS DISCLOSURE you are not fully informed.  How can you structure an offer without knowing the true condition of the property?  If the seller is not aware of this basic requirement - what else don’t they know about completing a real estate transaction?

It will cost me money if I use a Realtor to negotiate for me.  A buyers agent is usually able to negotiate a fee directly with the seller.

A buyers agent does much more then simply negotiate a price.

How much do you know about Real Estate transactions?

Do you know how to protect your own interests?

Are you able to negotiate with the seller from a position of strength?

Can you state your point clearly and make sure the seller knows you won’t accept less?

In following installments we will cover more details and pitfalls that can be associated with a Real Estate sale  Understanding what goes on in a Real Estate transaction will help you to make an informed decision.

On August 30, 2009 at 14:00 PM, you are invited to an Open House at 913 W Lackawanna Ave in Dickson City. If you are looking for a Single-family property in this area, don’t miss this rare opportunity to visit this magnificent property. For a preview of this Single-family property, check out my site at jayneandbonnie.topproducerwebsite.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

On August 30, 2009 at 14:00 PM, you are invited to an Open House at 913 W Lackawanna Ave in Dickson City. If you are looking for a Single-family property in this area, don’t miss this rare opportunity to visit this magnificent property. For a preview of this Single-family property, check out my site at jayneandbonnie.topproducerwebsite.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

On August 30, 2009 at 14:00 PM, you are invited to an Open House at 913 W Lackawanna Ave in Dickson City. If you are looking for a Single-family property in this area, don’t miss this rare opportunity to visit this magnificent property. For a preview of this Single-family property, check out my site at jayneandbonnie.topproducerwebsite.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

On August 30, 2009 at 11:30 AM, you are invited to an Open House at 410 Lake Spangenberg Rd in Lake Ariel. If you are looking for a Single-family property in this area, don’t miss this rare opportunity to visit this magnificent property. For a preview of this Single-family property, check out my site at jayneandbonnie.topproducerwebsite.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

On August 23, 2009 at 14:00 PM, you are invited to an Open House at 1329-1331 Cedar Ave in Scranton. If you are looking for a Multifamily property in this area, don’t miss this rare opportunity to visit this magnificent property. For a preview of this Multifamily property, check out my site at jayneandbonnie.topproducerwebsite.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.

On August 23, 2009 at 14:00 PM, you are invited to an Open House at 1329-1331 Cedar Ave in Scranton. If you are looking for a Multifamily property in this area, don’t miss this rare opportunity to visit this magnificent property. For a preview of this Multifamily property, check out my site at jayneandbonnie.topproducerwebsite.com. Please do not hesitate to Contact Me if you have any questions or wish to schedule a private showing.