Not too long ago, I was constantly looking for ways to increase my income just so I could improve my lifestyle temporarily. Working extra hours so I could go out on the weekend more often. Or taking odd jobs so I could afford to get a cool new cell phone. It took me a long time to realize that I was getting virtually no where financially and if I didn't keep busy at all times I would begin to fall behind on my bills, or overspending one week would set me back for months. I was constantly working to afford my lifestyle.
If my previous situation sounds like what you're going through now, you're in luck. Now is the perfect time to get out of debt and to start acquiring wealth. Now is the time you should be cutting back on your expenses in a big way. For me gas and the cost of going out had to be cut down dramatically. I simply didn't go out some weekends and instead spending the extra time developing my business. I then went over all my credit card and bank statements for the last 6 months and canceled any subscriptions I wasn't aware of. Somehow I ended up with subscriptions to about 6 magazines that I don't remember signing up for. This saved me $80. $80 doesn't seem like a lot but it's just enough to pay for small expenses.
Cutting down on expenses means cutting down on credit card payments. I was able to do this with little hassle by canceling all my cards. Even the ones with balances on them. After I canceled my monthly payments dropped dramatically. I made my goal to pay of 25-50% of my total balance every month and I was out of credit card debt in no time.
Many people are assumed to be wealthy because they have the nicest car in the neighborhood and you always spot them sitting in front of their big screen. This is very untrue. Many people living with all the extra luxuries often times actually deep in debt and have no wealth at all. Just possessions and debt. Acquire enough wealth so you don't have to trade your time for money at a day job. Eventually you should be able to live off the wise investments you made months, years, or even decades later.
Start acquiring wealth now. The longer you are able to hold healthy financial habits, the easier it gets to acquire wealth. As you make more progress and make more and more smart investments, managing your money is no longer a chore but rather an opportunity to expand your wealth without risk to your lifestyle.
Thursday, January 31, 2008
Debt Consolidation Tips - Consolidate Your Debt Today
Most Americans these days are wading through a pool of debt. In fact, some studies show that the average American is carrying around $20,000 in debt. This is frustrating and can be enough to throw you into bankruptcy or bad credit city! You may want to consider some serious debt consolidation. Here are some of the best debt consolidation tips that you can use to help lower your debt and payments.
Home Equity Loan
One great way to consolidate your debt is to get a home equity loan that is enough to cover the entire amount of all of your credit card debt. Sure, you will have to pay a payment every month, but chances are you will have to pay a lower payment than you are paying with your credit cards or other debt payments. The other benefit is that you will only have one single payment to worry about and your credit cards will be paid off. This is a great way to ensure the maintenance of your good credit score and will be an easier bill to pay each month.
Bank Loan
You can also approach your bank in order to try and get a loan to cover the debt on your credit card or other debt payments. It is likely that you can get a lower payment than your other bills combined, and of course, you will only have one payment to make each month rather than several. The thing you need to watch for when it comes to a bank loan is the interest. If your interest is at a fair rate, by all means go for it. However, if the interest will be higher than most of your debt payment interest, you may want to consider other avenues to pursue debt consolidation.
Many banks are now offering programs that are designed to help their members pay off credit card loans. Through these programs, you can get special terms. One of these terms may include a lower interest rate than a typical loan, or even lower than what you're paying to your creditors through the several bills that you pay monthly. If you want to avoid taking a loan, you may want to approach your bank and find out if they have a program like this that you can take advantage of.
Debt Consolidation Organizations
There are many not-for-profit debt consolidation organizations that you can go through in order to consolidate your debt. They work like this - you give them your monthly credit card and other debt payment statements and they pay your creditors. Then, you will pay them back just like a loan. The benefits include getting a lower interest rate, a lower payment and a longer period of time to pay back the loan. Of course, along with that, you are able to maintain a good credit rating by having your payments all paid off. This can be a great way to consolidate your debt.
Having a ton of payments to pay every month can be a real pain in the neck. Just the interest rates on these loans can be enough to slowly push you further and further into debt until you are struggling to breathe. By utilizing the avenues above, you can effectively consolidate your debt and feel free from the wading pool of debt.
Home Equity Loan
One great way to consolidate your debt is to get a home equity loan that is enough to cover the entire amount of all of your credit card debt. Sure, you will have to pay a payment every month, but chances are you will have to pay a lower payment than you are paying with your credit cards or other debt payments. The other benefit is that you will only have one single payment to worry about and your credit cards will be paid off. This is a great way to ensure the maintenance of your good credit score and will be an easier bill to pay each month.
Bank Loan
You can also approach your bank in order to try and get a loan to cover the debt on your credit card or other debt payments. It is likely that you can get a lower payment than your other bills combined, and of course, you will only have one payment to make each month rather than several. The thing you need to watch for when it comes to a bank loan is the interest. If your interest is at a fair rate, by all means go for it. However, if the interest will be higher than most of your debt payment interest, you may want to consider other avenues to pursue debt consolidation.
Many banks are now offering programs that are designed to help their members pay off credit card loans. Through these programs, you can get special terms. One of these terms may include a lower interest rate than a typical loan, or even lower than what you're paying to your creditors through the several bills that you pay monthly. If you want to avoid taking a loan, you may want to approach your bank and find out if they have a program like this that you can take advantage of.
Debt Consolidation Organizations
There are many not-for-profit debt consolidation organizations that you can go through in order to consolidate your debt. They work like this - you give them your monthly credit card and other debt payment statements and they pay your creditors. Then, you will pay them back just like a loan. The benefits include getting a lower interest rate, a lower payment and a longer period of time to pay back the loan. Of course, along with that, you are able to maintain a good credit rating by having your payments all paid off. This can be a great way to consolidate your debt.
Having a ton of payments to pay every month can be a real pain in the neck. Just the interest rates on these loans can be enough to slowly push you further and further into debt until you are struggling to breathe. By utilizing the avenues above, you can effectively consolidate your debt and feel free from the wading pool of debt.
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