Posted by Money Tips Staff

The answer to this question is somewhat complex and may vary largely from one person to the next. It’s never a bad idea to pay off debt, and while there are many benefits to being debt-free, paying off loans may do nothing, really, to improve your credit score (unless of course you have defaulted on the loan, in which case paying to any degree can only help). The problem is that paying down debt over time, rather than in one lump sum, is actually good for your credit rating, helping to paint a picture of you as a responsible debtor. So by paying early you actually lose the chance to continue improving your credit score. On the other hand, a large amount of debt and a small amount of credit to your name can have a negative impact on your overall score, even if you are making your payments on time and in full. In this case, paying off a loan has the potential to shift numbers in your favor, actually bumping your score up a bit. So is it worth paying? Let’s examine some of the other benefits and drawbacks.

A credit score is a fickle beast, especially in this day and age, with so many forms of credit floating around. All kinds of things can affect your rating one way or another, and debt poses and interesting conundrum. You need to take on debt at some point so that you can pay it off, raising your score and making you less risky to lenders. However, carrying the high debt that comes with many house, student, or car loans will eat up a chunk of your available credit, making you less attractive to lenders and therefor lowering your credit score (although you will slowly buy it back over time by paying off your loan).

Now, if your goal is to improve your credit score as much as possible because it is currently low, you wouldn’t necessarily want to pay off your loan early since it could impact your ability to continue raising your score and showing lenders what a responsible candidate you are for further loans. On the other hand, you might already have other loans that could offer the same benefits (with lower interest rates, to boot). In this case you’d be better off paying your car loan to reduce debt. As a bonus, you’ll save all that money you would have paid in interest. You can invest it, along with the monthly payments that are no longer going towards your car bill, in order to start making that money work for you. And you can switch from full coverage to liability insurance once you get your pink slip (no more pricy payouts for SUV or touring caravan insurance), saving you even more.

In other words, you stand to save a lot and possibly even earn some money if you pay off a car loan early. But is it a good move for your credit? If you already have a stellar credit rating, paying down your debt certainly won’t hurt you. You should really only hold off if you need to build better credit and you currently have no other loan payments to give you the same benefits at a lower interest rate.

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Posted by Money Tips Staff

When a loved one passes away, most want to honor their life with a funeral. Paying for funerals can get expensive quickly and no one would want to burden their family with these costs. If your loved one saved a funeral budget, you’re funeral is off to a good start. For those who have no starting budget or not enough of a budget to cover the whole funeral, there are some ways you could get help.

Start by looking into what’s offered in your community. Some counties offer low-income families help with burial costs. For these programs you have to qualify so call the social services office or the county treasurer for more information. If you’re holding the funeral in a church, or if the deceased was a member of a church, talk to the pastor for help. He or she may be willing to officiate for free or at a very low cost and they might let you use the church for no to little cost for the funeral.

Other government-funded programs, like Medicare, may also be able to offer some assistance. You can also check with your loved one’s employer and life insurance policy to see if there’s any money assistance available to you with funeral costs.

If your loved one paid into social security, contact your local social security office to see if they offer any funeral assistance. It will most likely be a sum under $1,000 but that could cover a lot. The United States Department of Veterans Affairs offers funeral assistance for the families of veterans who have passed away. If your loved one was a veteran you may be able to get some help from them. Look for qualifications and how to apply on their website.

Don’t forget you can always reach out to your family and friends in a time of need. Ask for monetary donations instead of flower and other gifts of condolences from the funeral attendees. Most would understand and be happy to help you if they knew you need it.

You could also get a little creative and sell some of the deceased’s belongings, or your own belongings you don’t need anymore. It’s a way to de-clutter a bit and earn some extra money.

Even for those with a plentiful funeral budget, caskets get pricey. Research caskets for sale and you could save thousands of dollars on a casket. You don’t have to purchase your casket from the funeral home you’re using, if you are. There’s no need to spend a huge sum on a casket if you’re already short on a funeral budget. Especially because there are literally thousands of caskets available for much cheaper. As long the casket you choose fits your loved one, it doesn’t matter how much or little it costs so you may as well find one you can afford.

Plan a funeral that falls within your budget and the funeral will be perfect. Honoring your loved one is more important than how much the funeral cost. But there are options if you have no funeral funds so if you’re worried, try not to. No extra stress is needed in a time of grief.

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Posted by Daniel Ketchum

Working from home is a bit like perfecting one’s art, as it takes time and dedication to be truly successful. In today’s world, the way in which people earn a living has expanded beyond the traditional 9 to 5 office workday. Many people now benefit from telecommuting, which allows for a more flexible work schedule and saves money. If you are thinking about making a change to a work at home position or perhaps creating your own “job” via the internet, there are several things to keep in mind.

The Good News
Working from home allows you to sit back and reap the rewards of cutting expenses for gas, dry-cleaning and even childcare. Working from home can also save you the time spent getting ready for work and commuting to your job. Working from home allows you to dress more casually, and work in a more relaxed setting, which can promote creatively and productivity.

Self Discipline is Required
While working from home has many advantages; a couple of the negatives can be a lack of motivation or discipline. While you may find working in your pajamas an appealing idea at first, it is important to find a middle ground in which work time is clearly differentiated from other time. Also, wearing PJs “to work” each day it may prove less than helpful in the long run. It is important, from a psychological point of view, to draw a clear line in the sand, get serious and get your work done.

Create a Routine
In a traditional office environment, there is a daily routine which is filled up with meetings and work assignments. These are planned out carefully and help keep you on track. This is why it is important that you establish a routine when working from home. This includes meetings via telecommuting, time to complete work assignments as well as time to plan the next day’s schedule. Whether your work at home arrangement involves doing your “regular job” or a portion of it from home, or you intend to start your own work from home business, the same principles apply.

Create a Barrier
One obstacle you may face as you begin to work from home is constant interruptions from family and friends. They often cannot believe that you are not, in fact, unemployed with tons of free time. Creating an office “environment” at home can be beneficial, not only in terms of improving your own self-motivation. It can also offer visual clues to family and friends that your time is valuable. Even if you live in an apartment and do not have an entire room to dedicate to a home office, transform a small corner of your living room into a dedicated space for work.

Daniel Ketchum is a freelance writer on behalf of Houston Apartment Insiders. The Houston Apartment Insiders team works with 99% of the apartment complexes in Houston and can find your next home at no cost to you.

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