For those who do not qualify for a traditional mortgage due to lack of cash-in-hand, there is still a way to finance a reasonable home that requires zero down payment with underwriting that is more flexible than traditional mortgage lenders. There is one catch though – the home you wish to purchase must be located in a rural area. Location is a factor but the US Department of Agriculture is indeed offering an alternative for home buyers to afford a home of their own.

What Is a USDA Loan?
There are two types of USDA loans: direct and guaranteed. The type of loan you apply for will be dependent on your household income. Direct loans are suited for low to very low income families and the funds come directly from the government. Guaranteed loans (502 Loans) are issued through traditional lenders but have 100% backing of the US government. Both loans offer 100% financing that may also include financing the closing costs, meaning borrowers will be able to purchase a home with no money down.

Who Qualifies for a USDA Loan?
Eligibility varies by state but the USDA website offers several tools to help determine your eligibility. First, you can see if you qualify for either of the loans offered by the USDA and then you must see if the home you are looking to purchase falls within an approved rural area. Different states have different rural classifications and a rural property does not mean you must purchase a farm. Typically, areas with a population of under 10,000 will be deemed as rural but you must check with your local USDA office first.

How Much Money Can You Get?
There is no limit on the amount of the loan you can receive from the USDA but the application process will include an in-depth overview of your income, expenses, debt ratios, and credit history to determine how much you can afford to pay in a mortgage. Applicants do not need to have perfect credit to qualify but a credit score above 620 is expected. Once the initial evaluation process is complete and you qualify with the standards of the USDA, applicants will be given a loan amount for which they have been approved so they can proceed with finding a suitable home.

How to Apply
Applying for the loans can be done by contacting a local USDA Rural Development office and requesting a pre-application packet. After initial approval, depending on the type of loan you are to receive, the mortgage process is not unlike traditional lender processes for buying a home. Mortgage applications are to be completed and applicants must provide all necessary financial paperwork to avoid delays in processing.

To find out more about the USDA loan program, visit the USDA official website to see if you qualify for a no-money down loan program. 

How so, you ask? Well, let me tell you why:

Saying No To Others

Guilt is the driving force behind people’s inability to say no to others. In our lifetime, we will likely be asked to do a number of things we feel obligated to do. While we may always feel obligated, we might also feel uncomfortable doing the things we can’t say no to, especially when it comes to finances.

Have you ever been asked by a friend or family member for a loan? Do you regularly donate more money than you have for your kid’s fundraising efforts? Have you spent money you didn’t have because of peer pressure? Situations like these may seem out of your control but if you begin to practice the art of saying no, it will get easier.

Many people spend more than they can afford because they want to please others and be helpful. However, with the current state of the economy it is becoming more socially acceptable to say no. It has become necessary for people to really take stock of their financial situation, their time management skills, and their stress levels and more often people are finding that no is not a four letter word.

The only way to perfect your ‘no’ is to know when to use it. If you are being pursued to volunteer time or donate money that you just don’t have, be polite but strong in your decline. Let people know you appreciate the opportunity to help but be upfront about the fact you just can’t do it. It can be uncomfortable for awhile and people may at first be put off, but you must respect yourself and take on only what you can handle. Set limits to what you can do with your time and how much you can donate and adhere to these limits. You might be surprised to find yourself back in control of your finances and your time.

Saying No to Yourself
After the debt crisis of the last few years, people have begun to realize the consequences of not being able to say ‘no’ to themselves. Careless buying habits, not creating reasonable budgets, and spending more than they earn are the main causes of the consumer credit issues people are just now beginning to deal with. So many consumers are overwhelmed with debt, filing for bankruptcy, and not being able to make ends meet because they ere unable to say no to themselves.

‘No’ is not a word anyone really wants to hear but it is necessary for people to be able to control their finances. Consumers need to learn how to budget their income and expenses. Living within your means requires that you change your spending habits and learn to say no to yourself. Set savings goals for big purchases and work to establish a savings account. Eliminating debt will also help to build your financial knowledge and confidence that will make saying no even easier as time goes on.

It does take a strong person to fully understand their capabilities. Over-committing yourself financially and personally will no doubt lead to debt, stress, and general unhappiness so make a commitment to lead a more stable, more effective life just by saying ‘no’.

If you ignore an IRS notice, and don’t pay your tax liability in full or make an alternative payment arrangement, the IRS is able to take collection action against you. This is something you want to avoid if possible. Refer to Topic 201 about “The Collection Process” on the IRS website for more information on this.

If you owe more than you set aside throughout the year for taxes and do not have enough money to pay your tax bill in full, the IRS will work with you. Making an arrangement with them is a much better option than avoiding the situation and hoping it will all just go away.

The IRS offers 120 days of additional time to pay what you owe. If you can pay in full within that time frame, no fee will be charged for this type of payment arrangement with the IRS.

One of the options to pay what you owe to the IRS is to take out a personal loan if one is available. You could also get a cash advance from your credit card, or just charge it to make the payment of what you owe. The interest rate and fees charged by a bank or credit card are generally smaller than the interest and penalties imposed by the IRS.  Although this is an option, it is important to understand incurring more debt to pay off another debt is not always advisable, unless the fees and penalties from the IRS will be more than the interest charged from a loan or credit card bill.

Installment Agreements or Payment Plans are another option you might consider. These plans make it possible to pay off what you owe to the IRS over time in smaller, more manageable amounts instead of all at once. There is interest charged each month. So, the longer you hold a balance that is due, the more you will pay in the long run. The sooner you can pay it off the better.

According to the IRS website, they accept the following payment options  from sources such as:

• Direct Debit from your bank account

• Payroll Deduction from your employer

• Payment via check or money order

• Electronic Federal Tax Payment System (EFTPS)

• Payment by credit card via phone or Internet, or

• Online Payment Agreement (OPA)

Once you have your bill, don’t delay in using one of the above forms mentioned to get your tax situation in order. Regardless of the way you decide to settle you debt with the IRS, just make sure you do so in a timely manner.

Of course, the entire debt relief industry has come under fire because of the infractions of a few of its members. This is why it is important to properly evaluate every debt settlement company before you decide to turn your financial problems over to them. Failure to perform the quick checks below can result in much more trouble than the avoidance is worth and can multiply your already high debt levels.

Check Accreditation Bodies

There are a number of associations and accreditation bodies that have become recognized for upholding the highest standards of customer service and debt relief practices. They include; The Association of Settlement Companies (TASC), The United States Organization for Bankruptcy Alternatives (USOBA) and The National Foundation for Credit Counseling (NFCC).

Check the Better Business Bureau

The Better Business Bureau (BBB) is the gold standard for customer service and for supporting best practices across several different industries. Within the credit counseling and management industry however, the BBB of certain states has implemented automatic downgrades of ratings simply because of the industry involved. While the BBB is still a good resource a better choice for analyzing a debt settlement company would be an accreditation body that specializes in the industry like the ones suggested above.

Look at the Debt Settlement Fees

Some debt settlement companies charge ‘front-end fees’. This means that they take their cut before the final creditors are paid. This type of approach can be dangerous because it is often accompanied by a mandatory service fee even if you decide to change your mind against settling the debt. It is also sometimes responsible for creditor litigation because the creditors become incensed at the nerve of the settlement company and file for the remainder of the balance owed.

Consult the State Attorney General’s Office

Your state AG office is another valuable resource for information on the debt settlement company you are considering. The Attorney General’s Office is responsible for enforcing consumer protection laws and will keep a record of all offenses that have occurred within the state as divided into industries. If the debt settlement company in question is a repeat offender, clearly you should try to find another alternative.

Visit the Company Website

Finally, the company’s website can also be a good resource for a lot of useful information. The company’s payment policies, its track record for performance as well as membership with associations and boards will be mentioned. The website may also have testimonials of previous satisfied customers to put you at ease. The company’s website however should not be your only source of research as it is not that difficult to put on a good face.

Many groups are pushing for increased regulation of this industry, however until greater consumer protection is available through federal or state regulations, it is up to the consumer to weed out the unsavory characters within the industry. The tips provided here can help get you on your way to properly research a company before making your final decision.

Protecting your privacy is the single most important reason why you should check your credit report. Credit reports offer a great deal of sensitive information such as name, addresses; past and present, social security number, birth date and past and present employment information.    As a consumer you have the right to know who has requested your credit report.   Each time you apply for credit the lender may request a copy of your credit report prior to granting you credit.  Your permission is not needed for circumstances in which you are asking for credit.  If you have not given a party permission to access your report it becomes a matter of compromised privacy for you because they have access to your personal information.   Consumer surveys report that there are approximately 10 million victims of identity theft in this country each year.  Don’t be a victim of identity theft. 

You want to know who has checked or attempted to gain access to your credit report.  Privacy and identity theft are major consumer threats.  It is legal for lenders to check your credit report to approve you for borrowing.  It is not legal for other parties such as landlords, employers or insurance companies to gain access to your report without your written consent.  You have the right to know who has attempted to access your credit history.  When you request a copy of your report it should also contain the identity of all parties who have requested your credit report within the last six months. 

You need to ensure the accuracy of your credit report.  An inaccurate report can be the difference between getting approved or denied for credit.  Your credit report includes pertinent information about your personal credit history.  Delinquent payments, liens bankruptcies and outstanding debts are all listed on your credit report. Creditors that have granted you credit make regular reports to the credit reporting agencies that produce the credit report.  A survey conducted by a U.S. Public Interest Research Group (USPIRG) in 2004 found that there were significant errors in one in four consumer credit reports. Checking and correcting your report if necessary is your responsibility. It can be both frustrating and time consuming to correct the report, however unless you push for the errors to be corrected do the report may remain inaccurate and negatively affect your credit score. Ensure that your personal information is correct as well as your debts and borrowing history. 

It is important at to be an informed and aware borrower. What you don’t know about your report can hurt you.  Your report determines your credit worthiness in many circumstances in your life.  Issues or discrepancies with your credit report should be addressed immediately through credit reporting agency responsible for your report. 

Here are some tips to save money and develop better record-keeping habits when it comes to your income taxes:

Don’t procrastinate doing your taxes. Weather you do them yourself or use a service, procrastination can cost you money. Rushing to get everything together can cause you to forget important receipts, expenses and potential tax write offs.  Waiting until the last day to file leaves you with out the option to go back and find receipts or information that may help your refund.  Tax time comes every year, prepare for your appointment ahead of time.

Save those receipts.  Save receipts that can be considered potential write offs. If you are not sure save it anyway.  You can throw receipts away if they are not needed but you can’t recreate them. Save even the smallest expense receipts.  These small expenses add up and can change the amount of your return significantly. 

 Keep track of your donations even if you didn’t get a receipt.  Items such as church donations, those few dollars you gave to the local animal shelter or the donated bag of clothes to the goodwill all add up.  Sometimes you are not able or patient enough to get a receipt. Tracking these things on a simple piece of lined paper or in a database can still be sufficient enough to be a write off. You have to have some concrete information such as the organization name, general time frame of the donation and the estimated amount of its worth for this to be a valid expense.  Keeping track even without a receipt can help maximize your refund. 

Organize your receipts. It’s never too late to create a system to organize your receipts. Many things are potential write offs such as rental property, student loans, dependents, and home business costs; to name a few.  You need receipts to prove money was spent and to recoup it at tax time.  Each area of expense should have a tracking system for your receipts that are associated with each area. You can use folders, envelopes or even file cabinets to organize receipts for each expense.  Organizing is the single best way to make the best of tax deductions. 

Ask questions of your tax preparer.  Before you schedule the appointment with your tax preparation service make a list of items that you are questioning as write offs.  Mobile homes, car repairs, even sidewalk repairs may be considered legal and appropriate write offs.  There are many less than obvious expenses that may be fair game to claim on your tax returns. Ask your tax preparer about these questionable items prior to your appointment.  The nice thing about getting taxes prepared by a service is that they will stand behind you if any of these items come into question. 

• Find the right company- Nonprofit organizations have a legal obligation to provide counseling and education services from certified and trained counselors. These individuals understand common problems with credit, debt, budgeting and managing money. It is your responsibility to carefully research any company before moving forward as several credit counseling companies have been sued in the past for lying about their nonprofit status. Check with the Better Business Bureau and other online sources to see if clients who have already worked with the company experienced problems. By weeding out the less reputable companies you increase your chances of success.

• Confirm DMP with creditors- Once you find the right company and set up a DMP, take the time to contact each of your creditors before making your first payment to confirm they have agreed to the DMP. This provides added security that your monthly payment is going to be accepted by your creditors. This is a two step process, the first confirming the DMP has been set up and approved and then following up throughout the process to ensure the creditors are receiving your payments from the credit counseling company.

• Make timely payments- In order for your DMP to work properly, you must hold up your end of the agreement as well. Credit counseling companies not only educate and guide clients in money management, they also communicate and negotiate with creditors to secure more favorable terms. This can include lower interest rates or waived penalties and fees. If you fail to make your payment on time, this can result in increased interest rates and additional fees or penalties that will increase the amount owed, versus reduce your debt balances.

Credit counseling and debt management plans have proven to be a successful combination to reduce debt. Finding a reputable company, following up with creditors and making timely payments will allow you to address your debt and regain control over your personal finances. As with all debt relief options, consumers are encouraged to explore and research all debt elimination methods to find the one that will work for your individual financial situation.

When you are reviewing your credit report, pay close attention to the following areas:

• Address or employment changes- Unless you have recently moved or changed jobs there should not be any changes to your address or employment information. You are looking for changes indicate someone else might be opening accounts in your name, not just a small “typo” where your street name is misspelled.

• Recent inquiries- Inquiries on your credit report should reflect activity that you are aware of and authorized. They should correspond with your applications or requests for credit as well as periodic checks requested by your creditors. If you spot inquiries that you know you did not request or some that are not from your previous creditors or employers, someone might be using your personal information to obtain credit.

• Account activity- Your credit report shows the activity of all accounts, including those that are inactive, open or closed. Pay close attention to activity on older accounts which you may not use. It is not uncommon for an identity thief to take over old accounts that people may have forgotten about, changing the billing address and running up high balances. If you have older accounts that you do not use, it might be a good idea to close them to avoid potential fraudulent charges.

• Public records or negative information- Clearly you know whether or not your bills are past due or if you have been sued, face foreclosure or eviction. All of these things are recorded on your credit report and if you see something that isn’t correct, it’s time to take action and find out what is going on.

Basically you want to review all information to check for accuracy. Do not just assume it is a mistake, when what you are looking at could be an indication that someone else is using your identity to run up balances, leaving you to pick up the pieces. It is important that you contact each creditor if you suspect you have been the victim of identity theft. You should also place a fraud alert on your credit reports to stop the opening of other accounts in your name. Filing a complaint with the Federal Trade Commission and contacting your local police department are additional steps you can take as a victim of identity theft.

While lending to family and friends is a complicated matter, especially because of the emotion involved, there are ways to make it work if it’s absolutely necessary. Here are some guidelines to follow whether you are the lender or borrower:

Make It All Business
No matter the relationship involved, any financial transaction that is expected to be repaid should be considered a business arrangement. Without terms in writing, it is likely money will never be repaid timely, if at all. Outline the terms of what is being borrowed and the timeline for repayment. Each person then gets a copy of the agreement. If the terms are not followed, be sure to clarify that further action, including legal means, will be taken to recoup the money.

Be Upfront About Reasoning for Loan
If someone is willing to help out, it is advisable the borrower is upfront about the need for a loan. Many people would be willing to do what they can in a crisis situation but would be more than offended to learn their hard earned money went for something frivolous. Never ask for a loan that isn’t absolutely necessary and don’t be surprise if the lender keeps tabs on your spending.

Prioritize Your Loan
While you need to take care of other bills, paying back a loan to a family member or friend should be on the top of the list. Follow or exceed the agreed upon payment arrangement. Keep the lender updated on any concerns you have about meeting the payment terms. Stay on track to pay off the loan in the time allotted and then refocus on your other debt responsibilities. Lenders should also remain solid on sticking with terms or they risk getting taken advantage of repeatedly.

Find Alternatives
When you are in debt and have no savings to speak of, it can seem like there is nothing else to help you besides your loved ones. However, it is better to exhaust all other resources before approaching those you know for financial help. In some cases, people may not even be willing to lend out money so you need to have back up solutions in mind

Luckily, it seems that many in the nation began to take a real interest and dedication to paying off debts and getting their financial house in order. With credit cards becoming harder to get nowadays, it is wise for people who already have cards to keep them in good standing by paying off balances each month and spending wisely on credit.

For those who still find it a struggle to eliminate credit card debt, there are steps you can still take to find relief. Here is the top tips for paying down plastic debt and eliminating it entirely:

Stop Spending
If you find it too difficult to come up with even the minimum required monthly payment, stop spending immediately. Living on your plastic line of credit is a sure-fire way to stay deep in debt. If you can’t pay for something in cash, don’t buy it. If you are living day to day on credit, seek out a second source of income immediately.

More Than the Minimum
When constructing your monthly budget, make a point to include more than the minimum amounts for credit card accounts. If you begin to expect having to pay more a month through planning, the faster you can pay down the debt. Pay as much extra as you can afford but stick with the commitment to paying more every month, not just when you feel like it. By using this tactic, you can essentially cut years off of your debt payments and improve your credit score at the same time.

Shop for a Better Card
If your credit score is still in good standing but it is getting harder to meet even the minimums, start shopping for a card with lower interest rates. During the recession months, many credit card companies shot cardholder interest rates through the roof. Where once was a 9% rate, there soon was a 25% rate. Now as the industry is trying to rebound, card companies are trying to woo new customers. Check out the many online comparison sites and then transfer your balance to a lower interest card.

Get On the Phone With Creditors
Now that some of the drama in the industry has died down, consider contacting your creditors and ask them for lower rates. They may not want to risk losing you if you have been great about payments in the past. Many will be willing to work with you by renegotiating your card terms.

Find Alternative Sources for Funds
If credit card balances are quickly spiraling out of control, you may need to borrow cash from other resources. Your 401k, life insurance, and savings are all viable sources for cash. You may also investigate a home equity loan to pay off all debts. There are several places you may be able to turn for extra cash, but do so with extreme caution because you can end up losing more than you bargained for by not considering the consequences.