We have helpful finance management advice on debt, loans and credit cards

Unmanaged spending using credit cards are the number one root cause that drives most of people into credit card debt. If you are current in debt and thinking of having a debt free life in near future, you need to start to look into your debt seriously; steering clear of unwanted debt is a great way to manage your finances and relive the stress cause by debt. Here are some debt free steps which you can put in place as your New Year's plan:

1. Change Your Spending Behavior

You cannot become debt-free if you spend more than you earn. It's that simple! Financial stress relief is called "money in the bank" or "positive cash flow". You need to know where you money goes; this can be done by list down your regular and non-regular expenses. Think twice for any item which you plan to buy, ask yourself whether it is a need or an optional item.

2. Have Your Budget Plan

Make a budget plan for yourself and eliminate or at least reduce optional stuff such as entertainment, dinner at restaurant and luxury vacations. Plan your budget according to your financial capability and spend according to your budget. You will be able to achieve your debt free goal if you can plan for a positive cash flow, which means that you spend less that what your earn.

3. Pay Your Bills On Time, Every Time

Managing monthly bills is an essential part of staying debt free and maintaining a good credit rating. If you find this difficult, come up with a system to ensure that bills are not paid late. For your current credit card debt, you may get help from finance experts such as credit counseling or debt consolidation services; they are widely experience in help people in debt management.

4. Set Your Financial Goals For Long-Term and Short-Term

To change your spending behavior may be difficult, but if you set your financial goals, both for short- and long-term, it is easy to make the necessary spending cuts to get what you really want. So set your realistic financial goals for year 2007 and a few year down the road; and manage, control and cut unnecessary expenses so that your can achieve your financial goals.

5. Plan For Adequate Emergency Savings Fund

You never know what will happen tomorrow, there may be some emergencies which will need a lump sum of money instantly, such as medical bill due to major illness and accidents; money to cover to income shortages such as temporary loss of job. Three to six months' worth of bare-bones living expenses should shield you from most of these problems. Make the savings your habit.

6. Learn to Invest Your Money

Investing can make our money earn more money and keep you out of debt. Learn to invest with your money to grow it. There are many investment plans available in the market, range from insurance, to mutual fund, to stock market. Investment can make your grow your money; in contrary, it may cause you loss your money as well. Normally high gain investment will have higher risk than low profit investment. You need to understand your own risk profile and select the investment schema that meet your risk profile. You can start your learning by taking a class, find a referral to a great adviser or just start reading. Do it your way, but do it; and start now!

So, these are some tips for Your Debt Free Plan. Wish you have a Happy and "Debt Free" New Year.

Home buyers who want to build a property for themselves or for investment purposes, can find it a challenge to compare flexible loans that will offer them the best deal as there are many variables. A loan for building a home is called a self build mortgage, and there are several different types of self build mortgages available in the market place.

Differences between a Self Build Mortgage and a Traditional Mortgage

To compare flexible loans for a self build, the differences between a self build mortgage and a traditional mortgage first needs to be understood. The main difference is that self build mortgage money is released in stages as the building progresses, rather than as a single amount. The success of the loan application is not entirely dependent on financial circumstances, as with a traditional mortgage, but also on the quality and credibility of the presentation. Mortgage lenders will want to ensure the project is properly planned and produced by suitably qualified professionals. They will use the plans to assess the value of your plot of land and the end-value of your self build scheme. A thorough cost analysis needs to be made along with an itemized budget. They will also take into account your enthusiasm, experience, confidence in completing the building within the timescale laid out, and the reasons why you want to do a self build.

Currently there arent any self build loans for 100% of the entire project cost. They range from 50 -80% of the land value, and therefore you require some capital to begin with. There are 2 methods by which the money can be released during the build: at the end of each stage, known as arrears stage payment, or at the start of each stage, known as advance stage payments. The advance stage payment mortgage is more popular as it gives a positive cash flow during the building process.

Before you compare flexible loans, have a carefully drafted expense plan so you know exactly how much you need to borrow, and aim to acquire a flexible loan with the lowest percentage of interest, with payments over the shortest practical period.

Important Factors to Consider When you Compare Flexible Loans

There isnt an easy way to compare flexible loans for a self build mortgage because there are so many factors to consider, and what may be suitable for one homebuyer may not be suitable for another homebuyer. However, the important factors to consider when you compare flexible loans for your self build mortgage are:

What is the maximum loan-to-value (LTV) available?

Who will assess the valuation of the land and property? How much will it cost?

Are the staged payments made in advance or in arrears of each stage?

Will you need planning permission in a detailed or a summarized format as a condition of an advance loan?

Are there charges for multiple inspections and valuation surveys before funds are released?

Is the lender flexible if you have to alter the design of your self-build home?

Do you need a warranty or another type of structural insurance? Most lenders also require site insurance to protect against damage caused to the building during construction and theft of materials.

Are there any early termination/completion/redemption fees?

Can you manage you own construction or does the lender stipulate you must have an architect or a project manager for the build?

What construction conditions are attached to the loan?

Conclusion

There are many variables with a self build mortgage and as there is no quick way to compare flexible loans for your needs, an independent mortgage broker can guide you to the right flexible loan for your needs.