However, many of us may come to ask ourselves, which is more important to do first? Repay our existing debts or build on our personal savings? Many of us have a lot of debt, but very small savings. It is not a clean cut decision, it takes a little analysis to figure out which is your personal financial best plan. In most cases it would be best to repay the outstanding debts you have, interest and fees add up after the years and if you are only paying the minimum payments on them it can take many many years to pay them off. One exception to this rule would be if your debts have a very low and fixed interest rate and the money you put in savings is earning a higher interest rate.

However, do not ignore your large credit card and other debts, you will lose in the end. By paying only the minimum amounts due you would end up spending much more than if you paid off quicker and waited to put the money into savings. Interest and other fees add up tremendously over the years if you only pay minimum monthly payment on these types of debts.

Meaning your personal financial condition will get worse rather than better. Your liabilities grow in the debts faster than you save your assets in savings. The end result, having to take your earned savings out and paying off the huge debt anyway. Making the strategy of savings over repaying your debts futile.

The best advice that seems to be given is to repay debts now instead of waiting and putting that money into a savings. Once you have got a control of the debt and have repaid it you can concentrate on savings and building your finances. This way you stay clear of possible defaults or late payments on the debts you currently have. Once you do this you can only end up seeing a bad mark on your credit report and cost you the possibility of receiving loans in the future.

Also once you have freed yourself of the large debts that you have created, you will be able to focus more stress free on building your savings. Having the ability to lock your funds into a better investment and receiving a higher return on your well earned savings in the future.

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Credit card companies are surprisingly happy to work with customers to negotiate various aspects of your account. The key to successfully negotiating with your creditors is to know what you want them to help you with, before you make the call – that way you’ll have a much higher success rate.

Here are some of the best ways to negotiate credit card debt and get yourself back on track financially.

Negotiate for Lower Interest Rates

Many credit card customers are surprised to learn they’re paying far more in interest charges than they thought. This can happen if you’ve missed a payment or been late on payments and your lender has applied a penalty interest rate to your account, along with hefty overdue fees.

This can make it much harder to get back on track with your payments, so call your credit card company and discuss your situation with them. Explain that by reducing the amount of interest you’re charged, you’ll be in a much stronger position to repay the outstanding balance more easily. You’ll be surprised how many credit card companies will consider this option.

Negotiate to Have Fees Waived

If you’ve been stung by late payment fees, over limit fees and other charges that have increased your balance and made it harder for you to keep up, call your creditors once again and ask to negotiate those fees or even have them waived.

Negotiate a Credit Card Debt Settlement Figure

You might find that your credit card debts have spiralled out of your control and you’re no longer able to keep up with the repayments at all. If this has happened to you, you might want to see if your creditor will negotiate a credit card debt settlement figure.

This is where you offer your creditor a lump sum amount of 25%-50% of the total outstanding debt as payment in full for the amount you owe. It might sound strange to offer your credit card company an offer like this, but in reality, the company will understand that it’s better to receive something from you than to risk receiving nothing at all if you file bankruptcy.

Negotiate a Payment Plan

When you’ve reached a credit card debt negotiation agreement with your credit card provider ask for a copy of the agreement in writing. It will show you exactly what the lender has agreed to in an effort to help you with your financial situation.

If this agreement involves reducing the total balance you owe as a lump sum settlement, then you may need to call again to negotiate a payment plan to make sure the amount gets paid. Be realistic about how much you can afford to pay and then stick to your payment amounts to avoid any further problems arising.

Things to Remember Before You Negotiate Credit Card Debt

Remember to be patient and polite, as the person on the end of the phone isn’t personally responsible for your fees. That customer service person is simply doing a job. Besides, you’ll receive a much better reception from the person on the phone if you’re friendly and helpful, as they’ll be more likely to want to help you.

Be aware of what you’re going to offer your creditors before you call. After all, they’re only trying to find a way to get their money back from you, so if reducing your interest rates or waiving your fees will help them do that, they’re more likely to help you.

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Seeking debt management help is a responsible move and it’s the first step in regaining control of your financial situation again. But you should still make the effort to learn as much as you can about controlling your debts and learning how to manage your finances a little better so that you won’t get back into the same bad situation again in future.

Here are our top 5 debt management help tips to get you back on your feet:

1. Reduce Expenses

When most people read tips that tell them to reduce expenses, they immediately think of switching off a light bulb or learning to cook cheaper meals. Of course it’s always a good idea to look for ways in which you can reduce the amount of money you spent.

In this case, reducing expenses means to find a way to reduce the amount of interest you’re paying on your outstanding debts. Most people are paying far more in interest charges than they should be. By consolidating your high interest debts over to a lower interest loan, you can reduce the amount you pay in interest. You could even reduce your monthly repayments, which can help your cash flow each month.

If you don’t qualify for a low interest rate credit card balance transfer, you might consider consolidating your outstanding debts into a tax-deductible home equity loan.

2. Put Your Interest Savings to Good Use

If you’ve managed to reduce the amount of interest you pay each month and lower your monthly repayments, be diligent about putting your interest savings back towards reducing your debt levels.

Even paying a few extra dollars above the minimum payment amount will help your situation enormously in the long run. You’ll be reducing your balances and staying on top of your payment obligations more easily.

3. No More Credit

If you’re already having trouble managing the debts you have, it’s important you stop paying for new items on credit. Stop using your credit cards at once. Don’t apply for new credit.

Find ways to pay cash for the things you need out of your income each pay period. For bigger purchases, use the interest-free option of putting them on lay-away and pay them off over a period of time.

4. Change Payment Times

If all your repayments are due monthly, but you get paid bi-monthly or even weekly, see if you can alter your repayment times. A big part of the reason why many people fall behind on their payments is that they attempt to find enough cash to make a full monthly payment at the end of the month.

Even though these people might receive regular income each week, or each second week, their money is spent on other bills during those weeks. By the time the monthly repayment falls due, the income amount isn’t usually enough to cover the full payment.

A good way to avoid this problem is to change your repayment frequency to match when you receive your income. For example, if you’re paid every second Friday, try to make a smaller repayment on your credit card bill every time you get paid. By the end of the month, make sure the smaller payments you’re making add up to at least the minimum payment due.

This can be a great way to keep on top of your debt management efforts and make it far easier for you to budget.

5. Seek Professional Debt Management Help

If all else fails and you really can’t find a way to make some of the easier debt management help tips work for you, it may be time to seek out professional credit counseling.

Always try to look for a non-profit counseling firm, as they get most of their funding from creditors, not from charging you outrageous fees. Before you agree to any services at all, make sure you find out in advance precisely what services you’ll receive.

Ideally, you should receive counseling, debt negotiation services, a debt repayment plan and some solid budgeting advice, and you should receive agreements for these services in writing before you go ahead. You should also take the time to check that the counseling organization is a member of any professional bureaus, such as the Better Business Bureau.

Once you’ve entered an agreement, you won’t have to worry about paying multiple bills each month. Instead, you write one check to the organization and they’ll distribute your money to your creditors on your behalf.

When your payment arrangement is in place, your credit counselor should then call your creditors. They’ll try to negotiate with them to reduce your interest rates, lower any penalty fees and waive any late fees in an effort to help reduce the amount of debt you have to repay.

Debt management help is readily available, but always make the effort to work on some simple things you can do for your own financial situation first. Learning to manage your own finances responsibly can sometimes be frustrating, but it will mean you’re less likely to get into the same bad situation again in future.

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Before you apply for your first home mortgage, prepare your finances so you have the best possible chance to impress your bank. Here are some quick tips to help you qualify for a home loan more easily.

Gross Monthly Income

Your lender will look carefully at the gross monthly income for all borrowers. This is the amount paid to you before taxes are deducted. If you’re applying on your own, provide pay stubs to verify your income amount. If you’re applying jointly with a partner or spouse, make sure you provide evidence of all income you each receive.

The bank will calculate your affordability based on the net income amount you receive, less any existing repayment obligations you have, less an amount allocated for living expenses.

The maximum amount you can borrow will reduce if you have credit card payments, personal loan commitments or other loans to repay. Conversely, the amount you can borrow can increase on your existing income by reducing your debts.

Credit Score

Your bank’s lending assessor will look at your credit score closely to determine what kind of customer you’ve been with your previous creditors. If you have a history of paying your bills on time and managing your debts well, you’ll have no problem.

However, if you have some blemishes on your credit report, spend some time catching up any past due bills. Reduce the balances on your credit cards and get your finances in order.

Employment History

Your lender will want to know the details of your employment. This will include how long you’ve been employed in the same industry or line of work. You can still apply for a first home mortgage if you’re fresh out of college or trade school, as long as your new job relates to the line of study from which you graduated.

Keep in mind that banks often view regular job changes to various different industries badly, as it could be a sign that you’re not able to hold down a long term job. While they’re negative towards frequent job changes, this doesn’t apply if you’ve been made redundant or if you’re changing positions within the same industry.

Down Payment

While it used to be possible to apply for a first home mortgage with no money down, these types of loans are becoming scarcer. If you know you’re going to buy your first home soon, work through your budget and begin putting money aside into a savings account.

The more money you can put towards your down payment, the more lenient your bank will be on your application. Your savings history can show your bank that you’re disciplined enough with your income to handle the responsibility of a mortgage.

Get the Best Deal

Before you apply for your first home mortgage, spend some time getting your finances and documentation in order. Then shop around to find the best deal to suit your needs. A mortgage broker can help you sort through the home loan options available.

You might find you qualify for one of the flexible credit solutions offered by many lenders, such as a FHA Loan or a VA Loan, or another such program that could help reduce the fees associated with buying a home and setting up your first home mortgage.

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In most cases, you can only settle on unsecured debts, such as credit cards, store cards, student loans or medical bills. You’ll also need to know whether you’re trying to negotiate with your credit card company directly or whether your debt has been allocated to a debt collection agency.

Settling Credit Card Debt with the Credit Card Company

If your account is still with your credit card company and you’re being hounded by their collections department to make a payment, you might want to consider settling your credit card debt with them directly.

Be aware that your account should be more than 90 days past due before they will consider even discussing the option of a debt settlement agreement with you. If your account is already at this point, then you can call your credit card company and offer them an amount of money that is 25-50% lower than the total amount you owe them as payment in full.

Most of the people who work in the collections department at your credit card company have been trained to try and get a payment out of you while you’re on the phone. They may also be disinterested in talking about a debt settlement with you. Be polite and patient with them and explain that you are not in a financial situation where you can afford to pay the full amount.

Credit card companies understand that it’s often better for them to receive any amount from you rather than for them to receive nothing at all if you file for bankruptcy.

When you reach an agreement for an amount of the settlement, get this information sent to you in writing. You should also be sure you don’t offer more than you can realistically afford to pay. If the amount is larger than you thought, you might consider arranging a payment plan to repay the amount you agreed upon over the next few months.

Settling Credit Card Debt With a Debt Collection Agency

If your outstanding debt has already been handed to a debt collection agency, the process for settling credit card debt may be a little different. Instead of calling the debt collection agency on the phone, write to them with your offer. Send your letter by registered mail and request a receipt. Include your name and account details and total amount owing on your correspondence and always keep a copy of everything you send for your own files.

Keep in mind that debt collection agencies are used to settling debts at pennies in the dollar, so you should begin your negotiation amount at no more than 25% of the amount you owe, preferably less. For example, if you owe $5,000 you should open your negotiation for a settlement amount at $1,000, which is 20% of the debt.

When you’ve reached an agreement for settling credit card debt with the collection agency and you have the agreement in writing, write back and negotiate your credit rating with them too before you make your payment. You don’t want the agency to list your debt settlement as a ‘paid collection’. Instead, try to get them to agree to enter ‘settled’, as this can be less damaging on your credit.

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Other structures to sell properties in non-conventional manners have also become popular.  Two examples are assumptions and ‘subject to” deals.  The problem is that most conventional mortgages contain acceleration clauses that allow the original lender to call in the entire amount due early if the property is transferred to a third party without its consent. In reality, as long as the regular mortgage payments are made on time and in full and sent in the name of the original buyer, “Subject To” agreements are never discovered by the original lender so there is no problem; nevertheless, the threat of the debt being called in overhangs most “Subject To” contracts.

The Wrap-Around Mortgage is a compromise between these two methods of passing on an outstanding mortgage to a new buyer. In such an arrangement, the seller (the person that owns the property and is liable for the outstanding mortgage on it) accepts a secured promissory note from the new buyer for the balance due on the property’s original mortgage plus whatever profit the seller is receiving and in exchange extends a secondary mortgage to the new buyer. Since the entire arrangement is formalized, it amounts to a method of seller-financing that allows the seller full landlord rights over the property, including the right of foreclosure should the new buyer default on the secondary mortgage. The new buyer sends his monthly payments to the seller, who in turn sends the appropriate amount to the original lender that holds the primary mortgage on the property.

Wrap-Around mortgage agreements can allow the seller to find a buyer that might not qualify for original financing from the original lender, thereby expanding the pool of potential buyers. Further, if a Wrap-Around Mortgage is used in conjunction with a lease purchase agreement or an option, it can circumvent the threat of the original lender exercising the primary mortgage’s acceleration clause to call in the debt early. For the buyer, the primary advantage is that they get a much stronger right of residency and possession of the property than they have with a “Subject To” contract, while at the same time avoiding the qualification requirements of the original lender (the financial institution holding the primary mortgage).

The only real risk to such agreements is to the new buyer as there have been cases of the seller not sending in payments to the original lender. The result of such a situation is that the original lender forecloses, resulting in the new buyer being evicted while the seller disappears. Therefore new buyers should be prudent when exploring the possibility of entering into a Wrap-Around Mortgage Agreement with a seller and should check into the seller’s background and financial position. Any legitimate seller should be forthcoming about their financial position, so if the seller is reluctant to provide background information, the buyer should consider this a strong warning of potential problems.

Also if you’re not already familiar, it’s always good to keep your knowledge fresh about 1031 exchange rules.

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The first step is to open up an online trading account. Pick the best online stock broker by researching who has the highest quality services for you, and then sign up. One helpful place toto consider using a broker is sharebuilder.com or any other broker. You may be interested in reading articles in magazines with financial information for reviews on the best online brokers available. Some examples of such magazines are Barron’s, Smart Money, or The Wall Street Journal.

The second thing you want to do is to fund your trading account by sending in a check or doing a direct deposit or wire transfer. You will have to check with the broker to see what funding options are available. You definitely need capital in order play the stock market. If you are new to this whole concepts you can start with $400-$2000.  If you have anything lower than that it will be hard to purchase large amounts of stocks. Keep in mind the more shares you have of particular stock, the more cash you will make. You should also prepare yourself for losing money as this will happen when the stocks you purchased drops. Remember, trading online stocks is a gamble and you will win and lose.

Once you have money in your account, you want to begin observe and study the market for a few days or weeks. Get a good view on how the market goes up and down daily. Do not just jump in. Check the NASDAQ, S&P, and DOW, and make sure they are going up. They will keep changing, they never stay the same.  Rally days may be good for you since you already have funds in the market. You want to sell your stocks on rally days, not buy them. Check out Fast Money and get an in depth look about online trading.

Purchase stocks in bulk if you foresee that particular stock making profit. Make sure you place a limit order when giving your order. This will allow you to pick the price when you are buying and selling a specfic number of shares at set price. When the market sets the price this is called a market order.

Once you place your order, wait a couple of days. If you feel it is the right time to sell then you can place a limit sell order for your shares. In example if you bought 600 shares at $1,800 and sold 600 at @2040 you will have made a $220.00 profit.

Understand the stock market can be a scary but interesting feat. Many people have gotten on the bandwagon and have made considerable gains. Remember though, do your research on how to buy and sell stocks, before you play.

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There are several types of annuities investors can consider and they can become a valuable part of any retirement savings portfolio if they’re done correctly. Unfortunately, they can also have some disadvantages if you’re not aware of the types of annuities you’re dealing with.

Below are some basic pros and cons of annuities explained:

Pros of Annuities

1) Tax Advantages - Annuities can offer investors some good tax advantages. This is because the tax is deferred until after you’ve started to withdraw your funds, which can be ideal for many people who anticipate that they’ll be in a lower tax bracket by the time they retire.

2) Guaranteed Return - If you’ve chosen to use fixed annuities, you can receive a guaranteed rate of return on the money you invested. In most cases, the rate of return can often be lower than other comparable types of investments, such as the stock market or mutual funds, but the risk to your investment capital is also inherently lower.

Variable annuities can also sometimes offer a guaranteed rate of return, but you could find this option will also include investments that are based on stocks or mutual funds. These additions can improve the rate of return you thought you were guaranteed if the markets rise, but if the markets fall, you don’t receive any less than the guaranteed floor amount.

3) No Maximum Investment Amount - Another good advantage of annuities is that you aren’t restricted by a maximum investment amount as you are with 401k or IRA accounts. This can be ideal for any investor wanting a tax deferred investment in which to invest as much money as possible.

Cons of Annuities

While there are some very good advantages to investing in annuities, there are few disadvantages you should consider before you jump in at the deep end.

1) Low Liquidity - Annuities are not a very liquid type of investment. If you can foresee that you may need to use the money you’re investing for other purposes in the future, or if you want to use your investment income for other things, then annuities might not be right for you.

There are hefty penalty fees to consider if you withdraw your money early that can erode the capital amount you have invested. While it’s possible to sell your annuities on a secondary market, you’re often paid less than you could have received if you’d let your investment mature.

2) Higher Fees - You might also find that the fees associated with annuities can be higher than those charged on other types of retirement savings plans and investment options. If you’re trying to maximize your retirement savings, then a typical investor could benefit from increasing a 401K or IRA plan first until it’s maxed and then think about adding an annuity at a later point.

Hopefully this easy guide to the pros and cons of annuities explained makes your investing decision easier to make.

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Roth 401k retirement plans deposits after-tax funds or the money left over after taxes have been deducted from the original amount into the retirement savings account. If the account has been continuously maintained for 5 years before the holder reached 59 ½ years of age, all withdrawals will be tax free for so long as the total of what has been withdrawn is less than or equal to the total of all the contributions you have made to it. In other words, earnings are taxed when they are withdrawn.

Termination of employment or the desire to eventually Rollover to Roth 401k, can be reason for people to do a 401k rollover to ira (Individual Retirement Arrangements). Terminated employees need to do this so that they can continue their contributions on their own. For others this is a necessary step for a roll over to a Roth IRA arrangement. For 401 plans the switch to Roth IRA will involve the payment of taxes. This is obviously due to the fact that from a pre-tax system the holder is transferring to an after-tax system. It also follows that the transition from Roth 401 to Roth IRA can be done without any tax expenses being incurred.

The type of 401k that is right for one person may be wrong for another. This will all depend on how he anticipates his financial status to be upon reaching distribution-eligible age. For instance, young employees who are working hard to further their career should expect their tax bracket to go up by the time they retire. These people will benefit more from the tax less distributions of the Roth 401 system. Being in a high tax bracket upon retirement coupled with the amount that is withdrawn from the retirement savings account will cause the holder of a standard 401k plan to pay enormous taxes.

On the opposite end, people who think their tax bracket will go down as they age, should stick to a standard 401k plan, on condition that they keep constant track of their investments to see to it that their earnings remain constant or improve. What they will be paying in taxes when they retire can be offset by the amount of earnings that they will have made.

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1. Buy only what you can see and touch

Don’t purchase property in Central America based on what might exist in the future.  It’s risky to base your capital appreciation goals on “ifs” such as if a bridge is widened, a new road built or if a big hotel were to come to the area.  Although this form of investing in the “path of progress” is tempting, make sure you know what you are getting into and the risks involved – especially in this post-crisis era.  The smart money is now trending towards completed property with ready infrastructure and away from pre-construction and speculative plays.

2. Don’t buy sight unseen

You never want to buy real estate sight unseen.  It’s vital that you personally check the property options that interest you. It’s a good idea to visit during the off season, which in Central America means the rainy season running from June through November. That way you’ll be able to determine if the location still appeals to you in all seasons and if needed services are available throughout the year.  If you want to be extra safe, check again during the peak tourist season which is December to February for tourists from North Americans.

3. Research the market using different viewpoint and sources

Your property research needs to go well beyond what is available through a sales pitch, a real estate brochure or a hot tip from a friend who just got back from a visit.  You need perspective and information on many levels, from different sources.  Some of the research can be done on the Internet by seeking out independent news sites, online property listing websites and specialist overseas property sites for Central America such as Reveal Real Estate.

4. Begin with your investment goals in mind

There is plenty of real estate on the market in Central America. It makes sense to clarify your investment goals upfront and concentrate on the type of investing that meet these criteria.  Are you interested in investment, speculation or a lifestyle buy?  Do you have the patience and nerve to wait for future development? Or do you need current access to utilities, services and want to be part of a community.

5. Take out title insurance

Title insurance is particularly important when you are buying property in Central America.  Title insurance reassures you that your title has been researched and there are no ownership problems that could hinder your ability to develop or resell the property. Your legal counsel will be required to thoroughly investigate the ownership history of the potential purchase in order to comply with the insurance company’s criteria for issuing their insurance policies.

Above all, take your time.  Don’t rush into a purchasing decision.  The lure of affordable property in beautiful locations can carry people away on an emotional rollercoaster.  Stop. Take a breath.  And make sure you are using your head as well as your heart.

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