How inflation is devaluing your home

As the economic climate continues to look dismal, the bright spot for many is that they own their own home and property has always been viewed as a good investment for long term gains.

Unfortunately, whilst this has always been true in the past, the current rate of inflation means that the true value of a house is far less than it would seem to be.

Some research has suggested that when inflation is taken into account, the worth of a typical house is around 8.5% less compared to 1979. Not a great return for over 30 years of investment.

However, owning property is still far preferable to renting for most and for many, the peace of mind that owning your own home brings is worth the risk of deflation.

But how do you calculate how much your home is worth and how should you consider financing a mortgage?

There are different ways in which to arrive at the value of a home and this can be one of the reasons why prices can vary when a professional assessment is carried out.

There are two main approaches – the market value approach and the sales comparison method.

The market value evaluation process attempts to reach what the value of the property would be if there were no additional external factors to consider, such as the need for a fast sale. It takes into account all of the usual factors such as condition, size, facilities and location and bases the valuation on that.

The sales comparison approach does take all of the above into account, but also considers what similar sales in the local neighborhood have been like and reaches a price compared to what other properties sold for. This is the most common approach with professional property valuers.

For those not planning on moving but interested in finding the likely value of their home, there is an online calculator available from the Federal Housing Finance Agency.

Whilst this calculator does not provide any individual valuations, it can provide an indicator of how the price of your house is likely to have changed based on the original purchase price, time of sale and location. This is obviously only intended as a very rough guide.

Those looking to finance a mortgage should first set their budget with the help of a

A mortgage calculator can help to work out what the impact of a larger deposit would be on repayments and how much wiggle room there is in the budget in the event of interest rate changes.

Those with a lower credit score may not find it as easy to finance a mortgage as in previous years, as the market for this was hit very badly by the recent financial crisis. This has made lenders far more cautious about extending credit to individuals with a less than perfect credit score. It is still possible to obtain credit, but the interest rate will be higher, making repayments more expensive.

The only way to avoid this is by either having a co-signer on the agreement, or by having a hefty chunk of savings available to put down as a deposit.

A mortgage calculator can help to work out the costs and a comparison website can help pinpoint lenders who are willing to consider those who have problems in the past.

Guest Post by MoneySuperMarket

How to cut back and pay off your debts

In today's economic climate, it seems that most everyday Americans are finding it more difficult to make ends meet. The cost of living is rising but wages are frozen and redundancies are common.

Everybody knows that it is a real positive to be pro-active and gain more financial security but how can you find ways to pay off your debts?

Firstly, gather all your paperwork together and calculate how much debt you have and the interest rates you are paying on these loans. Use a loan calculator to find better alternatives.

Then look at your expenditure per month and divide this into two categories, fixed and variable. Fixed expenditure includes costs such as rent or mortgage payments that stay the same and cannot be changed easily.

Variable costs include all those items that you enjoy but in all honesty, could live without. This category could include expensive gadgets and games, the latest fashions or designer ware. Input the cost of these into the loan calculator and see how you could benefit if you used this money to pay off debts.

Whilst it may be lovely to have these things, know that it is even better to pay for them without being in debt. So for now, make a sacrifice to stop purchasing these items.

At the same time, make a promise to yourself that when you are free from debt, you can have all the treats you can afford with your new found disposable income! This should give you some motivation to work towards that happy day. Use the loan calculator to help you estimate when this day will be for added motivation!

Next, look at your food bills and think of ways to reduce these costs. You can save money by only having takeout food or dining in restaurants on rare occasions.

At other times, it can work out cheaper to buy cupboard staples in bulk. Milk, for example, can be frozen, so if it is on special offer, stock up on cartons.

The same goes for toiletries and washing products, which we always need throughout the year. For even more savings, buy the store's own brand labels rather than branded goods.

Join online websites that detail where to find coupons for money-off when shopping. Get a cookery book and begin making batches of hearty soups, casseroles and stews.

Buy lower cost cuts of meat, such as braising steak, that taste delicious when cooked in the oven for a couple of hours. You can also fill out meals with beans and lentils.

Remember how our grandmas would turn nothing into something? Be the same! Make do and mend, whether it is food or clothing. Use dinner leftovers for the next day lunch and repair clothes when they are damaged.

You will probably start to enjoy the challenges and rewards of living in such a prudent way. With the excess money, you can pay off debts more quickly and feel satisfaction as each payment is completed.

When you need a break, websites that offer deals such as Groupon and Living Social can provide a low-cost way of enjoying a special meal or occasion.

There is nothing better than the feeling that you are taking control of your debts and money. So take up the challenge and start creating a happier, healthier financial future today!

Personal Loans for Credit Cards

Do you have a large sum of credit card debt?  Are you paying 15% or more in credit card interest each month?  If you are and have been making your payments on time and still have good credit, you may want to consider applying for a personal loan to pay off the credit cards.

Many people apply for personal loans to consolidate their credit card debt.  There are several advantages to doing this.

• You will only be making one payment a month.  If you have five credit cards with outstanding balances, you have to make five different payments a month.  Consolidate with a personal loan, and you are now only making one payment per month to service your credit card debt. 
• You will probably pay a lower interest rate.  One of the main advantages to consolidating through a personal loan is that you will most likely pay less in interest.  This can significantly reduce the overall amount of money you have to pay to completely clear the debt. 
• You will have fixed payments and a clear payoff deadline.  If you take out a three year personal loan, you know exactly when you will be completely free of your debt.  In addition, you are paying the same amount every month, so more money will go to interest throughout the life of a loan.  Credit card companies continue to reduce your minimum payment the lower your balance goes.  If you continue to pay only the minimum, it could easily take ten to twenty years to pay off the credit card.

Many people find it helpful to take out personal loans to pay off their credit card debt.  If you do so, just make sure to quit using your credit cards so you don’t run up the balances and find yourself further in debt.

Does low income mean poor nutrition?

With the economic troubles the United States is seeing, many American families are watching their budgets drop. That means they have less money available for their housing, food and other expenses.

Even with options such as balance transfer on credit cards easing the debt burden, the grocery shop can make a big dent in the monthly expenditure.

As incomes drop, the budget for food shrinks as well. Food is one household item that can fluctuate, depending on what you buy. You cannot control what your rent or mortgage payment is each month, but you do have somewhat of a say in how much you spend on food.

Many families that have seen their incomes plummet try to make up the difference by cutting out expensive foods. That means they can no longer buy items that are healthier, such as lean meats, whole grains, fresh fruits and vegetables and even dairy products.

The cheapest way to fill an empty stomach is to use energy rich starch foods that are often sweet and nutrient poor. Lower income houses typically purchase things such as cereals, potatoes, fatty meats and pasta.

It is typical for families with higher incomes to buy things such as seafood, low fat milk, fresh vegetables and other healthy items. It is true that having a healthy diet can be expensive if you just focus on the higher cost, luxury items.

Some nutritionists say that the ability to shop for healthy foods can be equal for everyone if the consumer is willing to make an effort and savings can be made.

If you have credit card debt, looking for a Balance Transfer offer can free up a little money to spend on healthier foods.

If consumers are willing to follow nutritional and dietary guidelines, they can succeed in having a healthy diet. The key point in this goal is to have the knowledge and time needed to follow through.

Many families drive through a fast food restaurant because they are short on time. They can also order off the dollar menu and feed an entire family for less than $10. It is fast, it is easy and it fills their stomachs.

Rising food costs are a problem for every family, but there are nutritional foods available that are also affordable. It may take a little time and research, but even low income families can eat in a healthy manner.

The most important aspect of buying healthy food is to compare when you shop. If you want to buy carrots, you can buy a large 5-pound bag and save money over buying the baby carrots that are already peeled.

Ready to serve foods are convenient, but you often pay a higher price. If you are willing to peel a few carrots and put a little extra work into your food, you can afford fresh vegetables that will last longer and taste better.

There are many healthy fruits that are affordable as well. Bananas and apples can often be bought in bags and bunches, which reduces their price. If you want to drink juice, buy the frozen concentrate to save money on your budget.

Food assistance programs have rapidly increased over the recent years. After families pay their household bills, they often simply do not have the balance transfer to cover food costs.

If assistance programs are not an option, you can still buy healthy foods as long as you pay attention to what you purchase, compare prices, shop carefully and stick to your budget. Even just making a list and sticking to it can help with the family shop.

Guest Post by MoneySuperMarket