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Looking for ways to save?

Author — Fri, 16 Oct 2009 22:32:58 +0000

(ARA) – The economic health of the country is all over the news, and people everywhere are worried about layoffs, retirement savings and the state of their financial affairs. An unemployment rate above 8 percent has everyone looking over their shoulders and counting their pennies. If you’re worried about what to do if you lose your job or just looking for ways to save money, your first step should be to talk to your bank about how you can make the most of your banking relationship.

Here are some simple tips to help you make the most of your money and utilize all the financial tools available to you:

* Keep track of your money and every dollar you save with services like online banking and alerts. Banks offer alerts to help you prevent unnecessary fees and to give you added protection in case irregular account activity is detected on your account. Use online bill pay services wherever you can to help pay bills on time and avoid late fees.

* Look for easy ways to save. Bank of America’s Add It Up program is a free online shopping Web site that rewards customers with up to 20 percent cash back on everyday purchases. If you need to make a purchase, look online for good deals (that often come with free shipping). With the Add It Up program, when you pay with your Bank of America debit or credit card, you can track your savings online and get cash back to the account of your choice. Remember to use online price comparison sites to find savings as well.

“We’re here to help,” says Matt Boss, senior vice president, mass market customer segment for Bank of America. “We have several ways to help consumers get the most from their money — from innovative cash back programs like Add It Up to easy-to-use tools that show people how to keep track of every dollar.”

* If you’re in your 20s, 30s or 40s, hang tight. Keep making contributions to your 401(k) account and speak with your financial adviser about how to safely balance your investments. Keep in mind that you’re investing in retirement for the long term and try not to panic about day to day numbers or stock market fluctuations.

* If you do lose your job, talk to your bank right away to find out which customer assistance programs are available to you. For example, Bank of America will waive monthly maintenance fees and refund non-sufficient fund and overdraft fees if you lose your job.

* Take advantage of the services your bank offers like rolling over your IRA. The bank can help you maximize your investments at a time when you need it most.

“Especially now, when budgeting matters more than ever, your bank can provide immediate opportunities with saving and spending that really add up and assist customers in managing their finances in the long run,” says Boss.

During difficult financial times, your bank can be there to help. You can start by making a reasonable budget, sticking to it and taking advantage of the financial tools available to help you manage your finances.

For more information, visit www.BankofAmerica.com.

Courtesy of ARAcontent

Financial tips for job seekers

Author — Thu, 08 Oct 2009 13:54:59 +0000

(ARA) – Losing your job is tough. But in the midst of a recession, rebounding and finding new employment is even harder. While uncertainty and doubt may overwhelm you, job loss can be an opportunity to reevaluate your career, take control of your situation and, most importantly, regain your self-confidence.

However, while building a resume and making connections to find a new job are a priority, the first issue most people should address is money.

The following checklist from Thrivent Financial for Lutherans, a not-for-profit financial services organization, provides some immediate tips to stay financially afloat after a job loss.

* Draft a survival budget

Anticipate that you’ll be out of work for at least six months. It’s impossible to predict how long your unemployment will last, of course. But you can control what you spend and save. Tips on increasing your cash flow are also available at thrivent.com/jobchange.

* Make sure you and your dependents have health insurance coverage

It may be least expensive to join your spouse’s plan, if that’s an option. If not, look into COBRA coverage through your former employer. The 2009 economic stimulus package from the federal government requires that a percentage of COBRA premiums be paid by your previous employer for a period of time. Details are available on the U.S. Department of Labor Web site, DOL.gov.

* Examine credit card debt

Contact your credit card company about lowering your interest rate. If you have credit card debt, you may need to make just the minimum payments until you get back to work. If your debt is significant or you are having trouble making even the minimum payments, try to negotiate a payment plan with your creditors. For help managing your debt, learn about Thrivent Financial Bank’s Debt Savvy program.

* File for unemployment benefits

You have a right to receive benefits you’ve paid for. Rules may vary by state.

* Maintain your life insurance coverage

It may be tempting to save cash over the short-term by canceling your life insurance contract. But if you try to resume coverage on a lapsed contract at a later date, you’ll pay more and you may have to prove insurability with a medical exam.

* Avoid drawing upon retirement funds

Resist the urge to dip into retirement savings except as an absolute last resort. Receiving that money now could mean early withdrawal penalties and taxes you hadn’t anticipated. Plus, you’ll lose the potential earning power of that money for your eventual retirement.

You can find additional tips on job interviews, information on job boards and networking, sample resumes and more, including money tips for after you land a job at Thrivent Financial’s Web site www.thrivent.com/jobchange.

“Regaining financial security is a critical part of dealing with job loss,” says Laura Dierke, manager of financial education programs for Thrivent Financial. ”Working in partnership with your family to discuss these money topics can be extremely beneficial.”

The road to a successful job transition will come with many twists and turns. But taking ownership of the situation, moving forward with confidence and taking advantage of the tools available will help you get back into the job market.

Courtesy of ARAcontent

Before applying for auto or mortgage loans, do your research

Author — Sat, 03 Oct 2009 00:19:49 +0000

(ARA) – While the number of auto and mortgage loans issued are down, and the effort it takes to get a good loan these days might seem daunting, there are signs that consumer lending is improving with positive economic reports. And even though dollars aren’t handed out as quickly or easily as they were just a few years ago, it is possible for a person to obtain a mortgage or auto loan.

Signs that consumer lending is improving include:

1. Interest rates remain low.
2. Banks are stronger and evaluating loan requests in depth.
3. Inflation is staying low.

Consumers interested in either a mortgage or auto loan should first review their credit scores to determine whether they can afford the loan. A bad credit score could mean denial or paying a lot of extra money. Federal law requires everyone to be able to access a free credit report from each of the three credit agencies once a year. With that credit report information, you can find out if your report has errors or if you have areas where you can work to improve your score.

“Once you have determined that your credit score will assist you in acquiring a mortgage or auto loan, you need to do some research on the loans available,” says Daniel Wesley at CreditLoan.com. “In the mortgage loan area, you need to investigate whether an Adjustable Rate Mortgage works better or a Fixed Rate Mortgage. And in the auto loan area, secured and unsecured loans are available through direct and indirect financing, giving you plenty of options to research to best fit your budget.”

ARMs are good if you plan to live in your house for only a few years because your mortgage rate will be fixed for a set number of years at a lower interest rate. But they can fluctuate quickly once the time period expires, increasing your payments greatly. You may be eligible for a refinance on the mortgage at that time – make sure you research the terms of your ARM closely.

Fixed Rate Mortgages – while higher than typical initial ARMs – are at a historic low, which has made these types of mortgages very popular. They are also popular for families looking to refinance.

Auto loan interest rates for new car purchases also have fallen from a year ago according to interest.com. Some tips for getting an auto loan include:

1. Check your credit report
2. Know what you can afford in payments
3. Determine whether a low-cost option is really the best idea in the long run

Courtesy of ARAcontent

Surviving the economic roller coaster

Author — Wed, 16 Sep 2009 01:23:10 +0000

(ARA) – It twists, it turns, it goes up, it comes down and it even has the uncanny ability to make many of us feel a bit wobbly and nauseous. The economic roller coaster has taken all of us for a wild ride, particularly over the past year. Unfortunately, 2009 has already proven to have even more twists and turns in store for us.

So what can you do now to help gain back some control over your financial life? Thrivent Financial for Lutherans, a not-for-profit financial services organization, offers the following timeless tips to help you survive the ride.

* Pay down your debt, but don’t forget to pay yourself too.
Generally speaking, the sooner you pay off your debt — especially consumer debt like credit cards — the better off you’ll be. However, also set aside money on a regular basis for an emergency cash fund.

* Track, then manage, your cash flow.
It’s impossible to manage your money if you don’t have a feel for what you take in and where your money goes. A budget can be a real lifesaver in terms of ensuring that you have a solid financial foundation.

* Insure the fundamentals (health, property, income and life).
Everything you own is at risk if your fundamental needs of your life are not properly insured.
A financial professional can assist you in determining the appropriate level of insurance for your specific circumstances.

* Grow your job skills.
Perhaps one of the most neglected of our assets is our job skills. Continually seek to grow and enhance your value to your current employer or potential employers by growing your job skills through continuing education, volunteer experiences and more.

* Direct your bonus or raise toward financial priorities.
If you are lucky enough to have received a bonus or raise, put it towards a financial priority, like paying down your debt, creating an emergency savings fund, continuing education or building your retirement account.

* Invest for the long term.
Given the performance of the equity markets, it may be tempting to discontinue participation in your company’s 401(k) account. Don’t. Letting emotions override sound economic decisions could be a big mistake. It is wise to continue to participate in a 401(k) program, especially if your company is matching your contribution.

* Consider time, not timing.
When will you need the money? The strategy of someone 25 years away from retirement versus just one or two is obviously going to be different. Make sure your portfolio is rebalanced and is appropriately diversified for your risk tolerance, but also make sure you are ready to take advantage of a market rebound.

* Build your financial knowledge.
Read financial publications, listen to financial shows, talk to friends and financial professionals. The more you know, the better decisions you will make concerning the financial choices you have.

* Talk with loved ones about location of financial documents.
It is especially important for senior parents and adult children to discuss this matter. Every family will differ regarding their comfort level around discussing specifics of end-of-life and healthcare issues, but all families should, at a minimum, inform their loved ones where specific financial documents can be found (e.g., health care directives; long-term care and life insurance policies; pension and retirement account information).

* Meet with a financial professional and work with a strong company.
A financial professional can be invaluable in helping you create and track a financial program appropriate to your goals. Work with someone you trust; someone who has an excellent reputation and plenty of positive references. Ask the right questions to make sure the company or companies you will be working with are strong and stable.

* Live generously.
It is easy to get caught up in everything going on in our world. Don’t forget to give back. Make financial donations when you can and look for opportunities to volunteer and share.

For more information, go to www.thrivent.com.

Credit crunch insomnia

Author — Fri, 21 Aug 2009 19:46:56 +0000

Survey reveals new financial worries keeping people awake

(ARA) – If you lay awake late at night worrying about your finances you’re not alone. The credit crunch is taking its toll on sleep habits, with Americans losing valuable shut-eye every night, according to new research from The Body Shop. Nearly half of people interviewed claim they are getting a worse night’s sleep than before, mostly thanks to the economic downturn.

Conducted in March, The Body Shop Sleep Survey of more than 1,000 people reveals the extent of sleep lost each night across the country as men and women toss and turn worrying about the economic crisis. Twenty-eight percent of people are suffering from at least one hour of less sleep each night than in previous years, with men more badly affected than women. And one in eight people are losing at least two hours more sleep per night than before the credit crunch kicked in.

Money Worries Are No. 1 Sleep-depriver

Not surprisingly, research carried out by The Body Shop reveals that money worries are the No. 1 sleep-depriver, cited by 38 percent of those surveyed. Furthermore, Americans are also having restless nights worrying about their families.

High up the list of things stopping people from nodding off at night are worries relating to:

* Job security (21 percent)
* Food bills (16 percent)
* Paying mortgage or rent (15 percent)
* Cost of heating bills (13 percent)

Sleepy and Less Productive

Sleep deprivation has a negative effect on productivity and stress levels. At a time when people are worrying about financial security, most people said that lack of sleep made it hard for them to concentrate, while 31 percent said it was more difficult to focus at work. Worryingly, the effects of sleep loss have been cited as being similar or worse than the effects of drinking alcohol to excess.

Twenty percent of people say they are more likely to argue with their partners when they are sleep-deprived, while a few have even admitted to snapping at strangers.

Sex is Snooze Solution, Say Men

So what’s the solution for a peaceful night? Sex, according to men. A frisky quarter of men revealed that this is their antidote to sleeplessness, compared with just 12.9 percent of women. However, topping the poll of sleeping aids are age-old remedies of hot baths and hot drinks, while counting sheep remains a popular alternative.

Sleep S.O.S.

The Body Shop Deep Sleep Dreamy Pillow & Body Mist could be the answer the nation’s insomniacs have been waiting for. This quick-drying mist-spray is packed with a soothing medley of chamomile, jujube date, geranium, juniper and patchouli essential oils to promote tranquility for a deeper, restful night of sleep. Applied to the pillow or body, the mist employs special encapsulation technology that allows bursts of active fragrance to be released throughout the night to aid more satisfying sleep.

For more information, visit www.TheBodyShop-USA.com.

Courtesy of ARAcontent

Tips to save money

Author — Fri, 21 Aug 2009 19:36:52 +0000

(ARA) – Everyone is looking for ways to save money these days, and there are hundreds of tips for cutting costs. But make sure you are prepared to do some research and make comparisons between companies and products, otherwise you may end up spending more money than you save.

Here are some tips for saving money:

* Eliminate stamps, envelopes and checks from your life. Take advantage of the many online banking and bill-paying programs available. Keeping digital records can also help you better organize and monitor your finances, which can help you better control your spending habits.

* Comparison shop online. For example, if you’re looking for a baby car seat, type in “baby car seat” into a search engine and start looking for the best prices with the best products. Make sure you check out consumer reviews, safety articles and even blogs for information. Get your calculator out, because sometimes the special deals promoted on product sites end up costing you the same — or more — than a regularly priced item.

* Look for coupons and coupon codes. This is an invaluable tip, because there are thousands of codes available for your use when shopping online. Go to www.shopaneer.com and search for discounts, free shipping offers and buy-one-get-one-free offers by product, store, category or the item you’re interested in.

Shopaneer has more than 10,000 special deals submitted by users, stores and companies. Any expired coupons are immediately removed from the site and there is a report button if you find a coupon that doesn’t work. If you are a frequent user, you can take advantage of the new coupons tab, so you don’t miss out on any of the fabulous deals.

* Bargain for swaps or special prices. This is where the junk lying around your house can become someone else’s treasure, and vice versa. Posting your unwanted items on auction or swapping Web sites can bring in extra cash, and bidding on an item can help you get a lower price than buying it at a store. Either way, you’re saving money.

* Use the Internet for any of those minor costs that can add up over time. For example, calling directory assistance for a phone number can cost as much as $1 per use. But with a quick search on the Internet, you can find the phone number and address without any extra charges. Or if you need to buy gas, it’s cheaper to search the gas price postings online before you head out the door so you’re not overpaying or wasting gasoline trying to find the best price.

Courtesy of ARAcontent

Is it time to take the money out from under the mattress?

Author — Wed, 19 Aug 2009 19:29:56 +0000

(ARA) — There it sits in the mail pile or in your e-mail in box, waiting to be opened — your dreaded 401(k) or bank statement. While the specter of the sad statement doesn’t necessarily haunt all of us, you would have to search long and hard to find someone who has not been directly affected in some way by the economic chaos of late.

The market rollercoaster ride has caused many Americans to reach the end of their collective rope and pull their money out of the market. While the money has not necessarily gone under the mattress or in the coffee can, billions of dollars are sitting on the sidelines or in money market funds that offer little to no yield.

“There are options out there for investors who want to get back in the game, but play it conservatively,” says Jim Thomsen, executive vice president, member services, for Thrivent Financial for Lutherans, a not-for-profit financial services organization. “Even with those conservative options, consumers should expect no less than 2 to 3 percent in return.”

So the question of what to do next is on the minds of many. For those of us who like to dip our toes in the water before jumping in, but hope for some level of return on our risk, Thrivent Financial offers advice about what financial products might be worth checking out now.

Money Market Accounts and CDs

Simple, tried and true … or at least they used to be. The act of regaining enough confidence to put your money back in the bank is a big step for those who have lost their trust in the system. Look for a bank with federal deposit guarantees which will give you the peace of mind you need to know your money is safe.

Money market accounts are a great choice for those looking for an interest rate that can grow in direct correlation with the amount of money you put into your account. Completely liquid and like a standard checking account, you can write checks out of a money market account at any time. In addition, money market accounts offer a greater return than a standard savings account under most market conditions. Retail money market accounts have been very stable even given the market turbulence of late.

CDs usually require a greater upfront deposit and in return you will usually receive a higher rate of return than with a money market account. Keep in mind that in most cases you cannot access the money you put into a CD before the maturity date without a penalty. However, some companies now offer a flexible CD which gives you the ability to withdraw up to half of the initial investment without a penalty.

Annuities

Long used as a tool for retirement planning, fixed annuities are undergoing a surge in interest as a tool for those looking for a predictable source of income. The fixed annuity is actually a contract with an insurer in which the insurer agrees to repay your money plus interest in a lump sum or over a period of time you select.

Fixed annuities pay interest at a fixed rate, which is usually established when you purchase your annuity. A fixed deferred annuity may be right for you if you want guaranteed, dependable growth and plan to take the money out down the road. Otherwise, look to a fixed immediate annuity for income payments that will begin right away. Either way, as annuity guarantees are backed by the claims-paying ability of the insurance company, look for a company with a high rating.

Interestingly, while not as conservative an option as fixed annuities, some companies are starting to note a renewed consumer interest in variable annuities. Variable annuities values can fluctuate over time, according to the performance of the underlying investment options and fixed accounts selected.

“A renewed focus on variable annuities could be a sign that consumer confidence in the market is starting to bounce back,” Thomsen says. “Variable annuities with features such as dollar cost averaging, in which the owner puts a set amount of money into the variable annuity sub-account of his or her choice on a monthly basis, is proving to be a popular choice. It is an easy way to ensure that you are well-positioned to take advantage of a market rebound.”

Mutual Funds

For those who might be ready to be a bit more aggressive with their investments, but still are looking for something on the more conservative side, limited maturity bond funds and municipal bond funds are two types of mutual funds that warrant a closer look. Limited maturity bond funds invest in corporate, government and municipal bonds as well as asset-backed and mortgage-backed securities. They often have a higher risk/yield than money market funds, and lower risk/yield than longer-term bond funds. Municipal bond funds generally invest in a diversified portfolio of municipal bonds and offer income that is exempt from federal and, in some cases, state income tax.

While there is no “one-size-fits-all” answer when it comes to what to do with your money now, there are several options to consider that can help you get back in to the game without taking too much risk. Talk to your financial professional, go to www.thrivent.com, or call (888) 834-7428 to learn more about what you can do next.

Courtesy of ARAcontent

Five Tips for Retirement Planning in a Challenging Economy

Author — Sat, 25 Jul 2009 02:12:50 +0000

(ARA) – “What do I do now?” This is the question that is being asked by everyone from baby boomers on the cusp of retirement to 20-somethings who have just started their retirement savings. Today’s volatile market has left everyone in the dark.

“Challenging economic times call for a return to basic principles, like a commitment to personal savings, seeking professional advice to help investors assess their personal situations, and employing a holistic approach to retirement planning,” advises Christine Marcks, president of Prudential Retirement.

A thoughtful approach to preparing for retirement is important for all individuals, no matter how far off retirement might be. Prudential has developed “The Four Pillars of U.S. Retirement” as a framework to discuss how Americans can prepare for and live in retirement.

For most Americans, no single pillar will be sufficient to meet retirement income needs. Now more than ever, to save and plan effectively for a secure retirement, individuals should consider how Social Security, workplace-provided programs, personal savings, and retirement choices will affect their ability to live comfortably in the future.

Here are five back-to-basics tips to help Americans get their retirement plans back on track in this challenging market:

1. Know the options and outcomes for drawing your Social Security benefits.
If you are nearing retirement, be sure to understand your options and how you can maximize your Social Security benefits. Be clear about the tax implications of early or delayed benefits.

2. Continue to leverage and maximize your workplace-provided programs.
If you aren’t already, enroll in your workplace-sponsored defined contribution plan –401(k), 403(b), etc. — if one is available. You should contribute at least enough to get the full benefit of a sponsor match. This is not the time to “leave money on the table.”

Also consider in-plan investment options, such as target-date funds, automatic asset-allocation programs, and even guarantee-based vehicles that can protect savings and income and offer a guaranteed retirement paycheck.

3. Make the most of your personal savings.
Despite the uncertain economy, remain calm. Follow the basic principle of investment diversification, which continues to be an important element of any financial plan. Work with a financial adviser to appropriately allocate assets based on age, risk tolerance and years to retirement.

4. Assess — and maybe reassess — your retirement choices.
The current downturn may require you to re-examine key retirement choices, such as when to retire or where to live. A tax-efficient approach to taking retirement income can play a big part in how long your retirement assets will last. Understand the financial implications of your desired lifestyle and consider which choices make sense for your personal situation.

5. Seek advice from a financial professional.
If you don’t already have a financial adviser, a trusted friend or peer can be a good source for referrals. Schedule a time to have a conversation with a professional who can provide you with detailed advice about planning for your future retirement.

“Planning for retirement now by taking the back-to-basics approach is very important,” says Marcks. “In a down economy we must all take a realistic position on how different areas of our retirement are affected in order to have a bright financial future.”

Take the first step today and visit www.prudential.com.

Prudential Retirement is a Prudential Financial business. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company, Hartford, Conn., or its affiliates.

Courtesy of ARAcontent

Tips to stay financially afloat

Author — Wed, 15 Jul 2009 20:56:36 +0000

(ARA) – With job loss at its highest rate in more than two decades and financial systems crumbling, Americans are dealing with the aftermath of a perfect storm of economic events. According to a new survey, one in four people (25 percent) say they’re worried about losing their jobs in 2009, and there is no better time for consumers to batten down their financial hatches to prepare for that possibility.

“For consumers, part of weathering this storm will be ensuring that they have the proper financial umbrella,” says Lucy Duni, vice president of consumer education at TrueCredit.com by TransUnion. “There is no better time for consumers to put their finances in order and prepare for the possibility of losing their source of income.”

In addition to polishing their resumes and portfolios, current and future job seekers should make sure their financial reputation reflects their desirability as a potential employee, since the survey, commissioned by TrueCredit.com and conducted by Zogby International also revealed that nearly one in six human resources decision makers (16 percent) say their company uses a pre-employment credit report as part of the screening process for potential employees.

TrueCredit.com offers the following advice to consumers:

* Drop the Shopping Habit – With unemployment rates skyrocketing, it’s time to examine your budget. Even if you aren’t worried about losing your job, sticking to a strict budget well within your means will create a safety net if something happens to your income.

* Stash Some Cash — In the past, having enough to cover three-to-six months of expenses was considered adequate, but today, aim to stash enough to maintain living expenses for no less than six months. If you do lose your job, your savings will allow you to continue making your payments, and will help you avoid missing payments altogether.

* Live Within Your Means — In addition to saving, you should make paying down debt a priority while you have cash coming in. In terms of credit card debt, shoot for carrying balances that are less than 35 percent of a card’s limit.

* Don’t Be Late — One of the most important contributors to a strong credit history is paying bills on time. Regardless of your employment status, you should try to pay at least the minimum amount due on time each month.

* Limit New Credit – Use restraint when applying for credit, as multiple applications over a brief period of time can negatively impact your credit score. In these tough economic times, you don’t want to appear desperate to lenders or potential employers.

* Know What Employers Are Seeing — Monitor your credit reports to keep tabs on your credit history. If you lose your current job and need to seek new employment, your credit report is one of the factors that potential employers might check.

To learn more about managing your finances, visit the learning center at www.gotruecredit.com.

Courtesy of ARAcontent

Organize Debt Consolidation Quickly and Easily

Author — Sat, 04 Jul 2009 19:52:23 +0000

(ARA) – Until recently, Ken Goins of Woodland Hills, Calif. was like most Americans — he carried a balance on several credit cards. The weight of the balance became heavier and heavier, and Goins just wanted to end his debt.

The average American has 13 credit obligations on record at a credit bureau, and 36 percent of Americans carry more than $10,000 of non-mortgage debt, according to myfico.com.

Credit card debt is often necessary for large or emergency purchases, but as interest rates climb, carrying the debt long term can become unmanageable and unwise. Goins hit that point a few months ago, when he was making little headway trying to pay off $65,000 in credit card debt at a painful 12 percent interest rate.

The downturn in the economy has been a wake-up call to many debt-heavy consumers like Goins. More than ever before Americans are examining their options for paying off debt faster, or lowering sky-high rates. Typically these options include:

* Continuing with minimum payments.

* Playing the costly balance-transfer game.

* Using outside debt consolidation services.

But now, there’s a better option. Consumers are turning to their social networks for affordable financial relief — and a light at the end of the tunnel. A loan from a relative or friend usually means a lower interest rate (which adds up to significant savings over time) and more flexible terms. Because these kinds of loans have been known to strain even the fondest relationship, it’s a good idea to bring in a third party, like Virgin Money, to help document, service and automate the process.

A social loan managed by a third party is similar to a traditional debt consolidation service. For example, consumers can combine multiple high interest-rate credit cards or other debt into one loan. The big difference is that the borrower and lender agree to their own rates and terms. Credit reporting is even available, enabling the consumer to improve their credit score while paying off their now-affordable social loan.

Goins’ friend wanted to help him out with his debt, and had read about how he could make the loan official with Virgin Money. Here’s what they investigated:

* Continuing with his $700 monthly payments, it would take Goins more than 22 years and $120,000 in interest — paid to the card companies — to get him out of debt.

* When Goins looked to his network, he connected with a good friend and a sibling both willing to help him out. For a few hundred dollars in fees, he was able to arrange a loan with each, formalizing the agreement and automating his repayment.

* All parties agreed to a 7 percent interest rate, higher than the two lenders were receiving on their fixed income investments, and significantly lower than Goins’ credit card rate of 12 percent.

* Goins now makes those same payments of $700 a month, but will be done in 11 years for $28,000 in interest — money paid to those he loves.

With a social loan, Goins’ repayment is not only much cheaper, but also hassle-free thanks to Virgin Money’s e-mail reminders, electronic funds transfers, online accounts, year-end reporting and free credit reporting. “We’re thrilled to help consumers get the best deal possible and empower them to be in charge of their debt. That’s exactly what we’re here for. What better way then to get a friend or family member to invest in you?,” says Asheesh Advani, chief executive officer of Virgin Money on the sharp rise in use of the company’s debt consolidation products in recent months.

Learn more about debt consolidation or refinancing at www.virginmoneyus.com.

Courtesy of ARAcontent