You can also use present value calculations to determine how much you would need to deposit so you can take a specific amount of money out of your savings account for a certain number of years. This is knows as series of deposit. If you want to take $400 out of your account each year for nine years, and your money is earning interest at 8 percent a year, how much money would you need to deposit now? Part D of Figure 1.4 will help you find the answer. Find Year 9 in the left column and look across to the 8 percent interest-rate column. The value given is 6.247. Multiply this value by the amount of money that you want to take out every year:

$400 X 6.247 = $2,498.80

You need to deposit $2,498.80 now to be able to take out $400 each year for nine years. This calculation is used for retirement.

Some savers and investors like to make regular deposits into their savings. You can also do the same to increase your savings. A series of equal regular deposits is sometimes called an annuity. Use Part B of the chart in Figure 1.4 (future value of a series of equal yearly deposits) to find out the future value of $1,000 a year at 5 percent annual interest for six years. At the end of the six years, you would have $6,802:

$1,000 X 6.802 = $6,802

If your bad debt loan problems are serious and you have little or no income, it could be in your best interest to check whether you’re a candidate for personal bankruptcy. By qualifying for Chapter 7 bankruptcy, which involves the sale of most of your assets, you might be able to wipe out all or most of your debts after bankruptcy, and get a fresh start. To qualify, you have to meet a “means test” to prove your income is within certain state limits. (more…)

If you have a bad credit score or bad credit personal loan, and it’s accurate, you need to know exactly when the items that are triggering it legally must be removed. Then, it’s up to you to make certain the consumer reporting agency removes them. (more…)

If your debt problem is not totally out of control, why not handle it yourself? It never hurts to ask lenders to lower your interest rates. Interest rates typically are not reported to credit bureaus. Some lenders may lower the rate to keep your business.

Do you want to be debt free? Do you want to be to travel the country and around the world without having to pay the bills? (more…)