Get Debt FREE and Raise Your Credit Score!

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The only way to raise a credit score is to pay off your debt or at least reduce it to an acceptable level! I recommend paying off high interest rate  credit card debt first.They can suck the life out of your finances! As for those, "magic cure" credit repair commercials you hear and see promising a quick fix, their scam is even greater than high interest rate scam your credit card company is charging you!

What steps do you need to take to build your credit score to the highest level possible? How can you secure a mortgage with a lower interest rate? Use my common sense guidelines provided below to get rid of the debts that have reeked havoc on your chances for a lower-interest mortgage on your dream home.

1.) Pay Your Bills on Time – All the Time!
I know, I know – this isn’t always easy. But, lenders of all kinds look for reliability on your part. Since loaning money is a risk for them, they look for signs that you have a reliable income and the discipline to pay your bills over time. When they see those signs, they say to themselves, “Hmmm, this person looks like a good risk to me; therefore, he or she deserves a lower interest rate.”

2.)  Do Not – I Repeat! – Do Not Open Unnecessary Credit Cards!
People sometimes open credit card accounts in order to increase their available credit. Absolutely avoid this temptation! It’s simply too darned easy to charge for items you don’t really need, and, before you know it, you’re back in debt or have increased it to an unreasonable degree.

3.) Budget, Budget, Budget!
Financially, this is possibly the most “unsexy” task there is, and yet it’s the most vital and important one you can possibly undertake! YOU need to figure out where you stand financially. Budgeting will allow you to get rid of debt, improve your credit score, and shape a low interest rate financial future for you!

4.) How Much Debt is Too Much?
Here’s the first question to ask yourself in terms of budgeting: How much debt is too much?
Actually, there’s a standard financial formula that allows you to answer that question. This formula is called the debt to income ratio, and what it does is measure your net monthly income against your debt.

Here’s an example:
"George” has a net monthly income of $2000 and his monthly debt payments are $500.
So, to get his debt-to-income ratio, George divides $500 by $2000 and gets this ratio:
500÷2000 =.25 (25%)
  
Is this a good ratio?
Well, financial experts generally agree that debt expenses should be 25% or less of your income. George’s ratio is reasonable but could be better.So, what’s the ratio of your debt to your income? Figure that out by taking the next step.

5.) Calculate Your Debt-to-Income Ratio
You can answer that question by completing the following tasks:

Task 1: Analyze your bills from the last month. Add up all the fixed expense items (rent, mortgage, car payments, child support, loan payments, etc.)

Task 2: Review your credit card bills and add up the minimum payments owed on each card.

Task 3: Figure out your monthly take-home pay (net salary).

Task 4: Divide your monthly fixed expenses by your monthly income to get your debt-to-income ratio.

What percentage did you get? If it’s 25% or greater, then it’s definitely time to budget in order to reduce or eliminate your debt.

 I’d be happy to discuss some more in-depth  budgeting tips and provide you with information on mortgages at the same time!

Understanding the Difference Municipal Tax vs. Township Tax in the Greater Cincinnati Area

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Most homeowners don’t realize this but you pay different taxes based on where you live and work. So to help you understand the difference between the various taxes you pay accordingly, I wanted to share some examples with you. That way the next time you move you can consult with me and get some additional insight as to what might save you money throughout the year, every year.

Sycamore, Anderson, Simms Township Residents Spared Additional Taxes

If you have established your residence in these townships you will not have to pay an additional city tax for living in the area. Despite working in another area – you are still not charged additional taxes. For example, if living in Blue Ash and working in Blue Ash you are paying a 1% Blue Ash tax. If you live in Blue Ash and work in Downtown, you are paying 2.1%.

Similarly, if you live in Anderson Township and you work in Anderson Township as well, you would not be responsible for any additional municipal taxes – rather you are simply paying federal and state taxes.

Working in a Municipality Will Not Eliminate Taxes

If you are working in a municipality but living Downtown you would still be responsible for the 2.1% tax since your place of work is located in a tax area that is subject to city tax.
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If you are considering a new home and have the flexibility to choose a township, it might be a good idea to consider one of these locales and consequently save money on taxes. This is particularly ideal for self-employed people, business owners or telecommuters that are looking to move.

I look forward to helping you with this or any of your real estate needs and welcome your inquires. Call me today!

Home Warranties Offer Peace of Mind to Existing Homeowners and Buyers Alike

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Most people have heard of home warranties being purchased at the time of sale but did you know that you could also obtain a consumer-direct home warranty? In fact, despite costing just a little bit more the benefits far outweigh the added cost over and beyond the standard buyer or seller policy. In the “few hundred dollar” range, these policies provide protection against major problems with appliances, systems or both – depending on the policy type.

Of course, as is with many insurance products, there are the typical policy exclusions so when you go to inquire about one of these products be sure to request a copy of all exclusions to understand exactly what coverage you will be getting.

If you would like to learn more about obtaining third-party underwritten insurance policies to cover your appliances and systems – we invite you to contact us today and we’ll be happy to share some of our recommended vendors. Since the insurance companies are part of a profit-generating industry, here are some tips for dealing with them:

1. Call during off-peak times. When filing a claim, set aside about a half hour to complete the telephone procedure and more if calling during the morning, lunchtime or late afternoon.

2. Keep track of everything. Document the name of everyone you speak with, the time and dates of each time called and the exact nature of the conversations.

3. If you feel you are not getting anything done or that progress is slow with your claim, ask to speak to the manager in charge when you call.

4. Choose to submit your claim on the telephone rather than via email for a faster response.

5. Keep your cool. If you end up dealing with an unresponsive or worse, rude customer service person – try to be calm but remain consistent.

6. Get creative when you need additional help. District managers of home warranty companies make themselves more accessible to real estate agents so if you need extra help, contact your agent.