Money

Are You Financially Prepared for a Divorce?

Finance

Would you save money to prepare for a divorce? A survey showed that two-thirds of Americans are unprepared financially in the event that their marriage reaches a dead end.

TD Ameritrade’s Financial Challenges of Divorce and Widowhood survey gathered information from 2,000 adults between 37 years old and above. The respondents also said that they have not prepared for the possibility of becoming a widow or widower.

The Truth Hurts

It might seem counterintuitive to tie the knot and then save for a potential divorce, but statistics indicate the ugly truth. An estimated 4 out of 10 married couples in the US decide to break up, while widowed Americans account for around 25% of people 65 years old and above.

If you live in New York, the first thing you should do when making financial plans includes looking for divorce lawyers in Long Island or New York City. The state may have the lowest divorce rate in 2016, but it does not imply that it may continue in the future.

Financial Plans

Census data revealed that only nearly 13 out of 1,000 New York married couples divorced in 2016. Experts believe that this may be due to alimony laws in the state. David Lynch, TD Ameritrade managing director and head of branches, said that having a financial plan is essential for when all else fails.

This will help you when the time comes that experiencing the burden of alimony laws might be a better option than remaining married to your spouse. Lynch described a financial plan for divorce similar to how we spend for other emergencies, such as possible disabilities or illnesses, in the future.

When you start saving for a potential divorce, it should not necessarily mean that you expect a failed marriage. You should consider it as a safety net since it is common knowledge that ending your marriage will require you to spend a lot of money.

A Key to Becoming a Debt-Free Home Owner Sooner

Finance

Man pulling out pocket as a sign of no moneytAs the U.S. inches its way farther from the disastrous effects of the Great Recession, mortgage rates have dropped considerably and reached historic lows over the past few years. However, the market remains completely unstable, resulting in its rates going up and down. These changes make it a bit worrisome for many mortgage borrowers, especially those with adjustable-rate loans.

Refinancing: An effective home loan cost-cutting technique

The good news is there are still several ways for you to cut back on your housing loan expenses. You’ll find reputable and reliable lenders offering great deals when it comes to their Salt Lake City refinance programs. With refinancing, American Loans explains that you can minimize the financial burden of your current mortgage, ultimately setting you free sooner from this massive debt you have.

Swapping from one type of mortgage to another (when it makes financial sense)

There are a number of reasons borrowers decide to switch their adjustable-rate mortgage to a fixed-rate one, or vice versa.

For instance, those who originally planned to stay short-term in the house they took out a loan for decided that they would rather spend their lifetime in the same place. Due to initial intentions, they opted for an ARM. In many cases, this type of mortgage doesn’t make the most financial sense, especially with the surprising increases in the interest rate.

If you combine that with the shorter term of the loan, it means greater monthly payments. In case your situation is similar, then refinancing your current loan for a fixed rate may be your best option.

Reduced risk of non-payment to prevent incurring more debts

Through ARM-to-FRM refinancing’s monthly payment reducing benefit, you can worry less about the possibility of missing your dues or resorting to paying insufficient amounts. As a result, you won’t incur penalties and other unnecessary expenses.

Over time, as you continue making good on your promise to pay, the amount of debt you’ll have will consistently shrink. You’ll be nearer to living a debt-free life as a homeowner sooner than you think.