NLIC.org

Javier Said:

Do you agree that we’re all up the creek?

We Answered:

I think those are just a few examples of things happening that are about to "hit the fan." I am worried about unemployment, even though my fiance nor I have ever been on it. It is winter, and many people will be hurting with the jobless rate so high. I am also worried about all the Republican governors we now have after the midterms, including my state. They will be slashing the budgets, social programs for the poor first of course. Haley Barbour said on Cspan he will be ending community mental health crisis centers and public mental health centers. These are places that poor people with mental health problems really need, and they are already underfunded and overworked. We will have more people on the streets and more crimes when these people cannot get the help they need, and I really hope other governors do not take Mr. Barbour's example.

Lisa Said:

How likely are mortgage companies willing to change due dates or payment dates?

We Answered:

I'm wondering if I should post this, as I thought it was common knowledge but...

Most mortgages give you a 15 day grace period. That means that even if your payment is due on the first they will not consider you late until after the 15th. I always pay my mortgage on the 15th (for no good reason at all). The insurance probably has some type of grace period too. Credit card companies definitely do NOT, but some will change your due date if you ask.

Carla Said:

I turned myself in to Obama's fascist Website, how about you? Everyone turn themselves in! What will they do?

We Answered:

Anyone who answered this question just to say "that's too long, I'm not reading that" is an IDIOT. These are the apathetic lemming that will follow this administration blindly, right off the cliff, dragging the rest of my country down with them.

Our nation is being blatantly and overtly hijacked right under our noses, because of people who don't care enough to read even a question as long as this one, let alone seek the truth for themselves. You should all be sterilized. Oh, wait, our new science czar has already proposed that. Or was it the health czar? Or the green jobs czar?

What this country really needs is a qualification test to be certified to vote. A citizen should be forced to demonstrate a minimum level of awareness and understanding about what is going on in the world and what it means before being allowed to make a decision on it.

Elizabeth Said:

Why do you think Obama's "Deficit Commission" completely ignored the $800 B the U.S. spends on defense?

We Answered:

While Congress is constitutionally mandated to financially support the military, I'd say many conservatives agree there is waste to be found amongst funding in any given military-related project. No reason (and yes I'm calling YOU out g) to lump all conservatives with a false belief that we wouldn't be willing to agree to appropriate cuts there.

Renee Said:

Has 0bama finished giving all our money to rich people yet?

We Answered:

I miss Bush ( this statement alone is going to get people mad ). But no, Obama will be done when he has destroyed America within itself and runs to Germany asking for a second chance. I mean... Obama would never do such a thing... he's a great fraud... I mean person.

Linda Said:

Did McCain stall bail-out to cause another keating-style S&L situation?

We Answered:

I believe the republican are totally at fault for this crisis

Tanya Said:

What to do with cash and loans?

We Answered:

So far, you've done some good things here. You have 6 months of living expenses in cash on hand, you are contributing to a 401k, IRA, and kids college. That's great. Now, let's tackle the debt.

$14,000 in car debt...that's the easiest loan to get rid of financially, but the most difficult to get rid of emotionally. In other words, you bought a car you really like can't afford. Sell the car and take about 5 or 6 thousand out of your stock market investments to buy another car with cash. That still leaves you with $6,000 in stock market investments and all $6,000 of your savings.

Now, as far as the rest of the debt goes, there are two methods most financial advisers recommend on getting out of it. The first method is the "debt snowball" method. This is how it works:

* List all debts in ascending order from smallest balance to largest. This is the method's most distinctive feature, in that the order is determined by amount owed, not the rate of interest charged. However, if two debts are very close in amount owed, then the debt with the higher interest rate would be moved above in the list.
* Commit to pay the minimum payment on every debt.
* Determine how much extra can be applied towards the smallest debt.
* Pay the minimum payment plus the extra amount towards that smallest debt until it is paid off.
* Then, add the old minimum payment from the first debt to the extra amount, and apply the new sum to the second smallest debt.
* Repeat until all debts are paid in full.

In theory, by the time the final debts are reached, the extra amount paid toward the larger debts will grow quickly, similar to a snowball rolling downhill gathering more snow (thus the name). The theory works as much on human psychology as it does on finance; by paying the smaller bills first, the individual, couple, or family sees fewer incoming payment requests as more bills are paid off, thus giving the impression that they are making headway towards debt elimination.

The other method is to list debts highest to lowest according to their interest rate and paying off the balances in that order. Everything else is the same as the first method.

The second method tends to be the one that saves you a little more money in the long run, but the debt snowball method let's you see the progress you are making and is less likely to be given up on.

You can speed up the process even more by temporarily stopping your 401k contributions until you get that debt paid off.

If you really, really want to keep the car you have, just work it into the snowball plan.