Debt consolidation involves transferring the balances from multiple accounts with relatively high interest rates to one account with lower interest. A debt consolidation loan does not reduce debt so much as restructure it in beneficial ways.
Debts are either secured or unsecured. Secured debts are tied to a tangible asset like a car for a car loan or a house for a mortgage. If a borrower stops making payments, lenders can repossess the car or foreclose on the house. Unsecured debts are not tied to an asset. The most common types include credit cards, medical bills and signature loans.
Debt and Credit
Most people get into debt difficulties because credit is easy to get and hard to control. Here are some warning signs that debt may be getting out of hand:
- you can only make the minimum payments on your loans and other debts each month.
- you apply for new credit cards to pay off old ones, thus rotating, but not retiring, your debt.
- you are near the limit on all your cards and accounts.
- you are being denied new loans because of your bad credit history.
- you have had to resort to bad credit financing.
The rule of thumb when using credit is known as the 20/10 Rule: Don’t borrow more than 20% of your annual net income and don’t let your loan monthly payments get higher than 10% of your monthly net income. For example, if you take home $4,000 a month, your total payments on credit debt should be no higher than $400 (excluding your mortgage and second mortgage).
Learn more about other steps you can take, in addition to debt consolidation, by visiting www.badcreditsecondmortgagenow.com. There, you can also get a free quote on a debt consolidation loan to see if it could be a step in the right direction for you.
Friday, September 21, 2007
Thursday, September 13, 2007
Global Crossing announces 2002 milestones, 2003 outlook - Business
Global Crossing announced that it reached several significant corporate milestones in 2002 and is poised to capture market share as it finalizes its restructuring and emerges as a revitalized, healthy business. Global Crossing reported achieving key financial, operational, network, customer and service milestones, while offering an outlook for 2003.
Global Crossing's makeover has been marked by a greatly improved financial performance in a difficult environment. Global Crossing met performance targets in 2002 for cash in bank accounts, Service Revenue, Service EBITDA and maintenance and operating expenses. The performance targets were established for Global Crossing (excluding Asia Global Crossing) in the operating plan presented to its creditors in March 2002. These financial results are preliminary and unaudited.
Achievements include:
- A healthy cash position throughout 2002. Global Crossing ended the year with $782 million of cash in bank accounts, well above the $611 million targeted in its operating plan. Approximately $393 million of the December2002 cash in bank accounts was unrestricted cash.
- Service Revenue of $2,878 million in 2002, $160 million over the operating plan.
- Service EBITDA for 2002 at $(243) million, an improvement of $12 million on the operating plan.
- Operating expenses, including third-party maintenance costs, of $1,074 million for the year, an improvement of $8 million relative to operating plan targets.
- A significant reduction in operating expenses, excluding third party maintenance, from an estimated $1.5 billion in 2001 to $916 million in 2002.
- An even more dramatic reduction in cash paid for capital expenses, from approximately $3.2 billion spent in 2001 to an estimated $89 million for new commitments in 2002.
- Workforce reductions in 2002 that saved Global Crossing an estimated $215 million in payroll. Global Crossing ended the year with approximately 4,300 employees, compared to approximately 8,000 employees in January 2002.
- Closure and consolidation of 279 facilities during the year, shedding more than four million square feet for an annualized cost savings of $130 million.
Key 2002 network milestones include:
- Network availability remained at 99.999 percent, the highest industry standard.
- Global Crossing's VoIP (Voice over IP) platform, considered the largest in the world, steadily broke its own records, carrying a total of 8.2 billion minutes for the year.
- The amount of traffic running over Global Crossing's IP network, excluding VoIP, grew 200 percent for the year.
- IP traffic volume increased from 10 Gbps to 30 Gbps.
- Global Crossing helped set a new Internet speed record by transferring 625 Mbps of data 7,800 miles in 13 seconds - 7,000 times fast than dial-up - in May 2002.
- Global Crossing's advanced network enables customers in Europe, Asia and North America to implement IPv6, the next generation of IP protocol.
- Global Crossing was ranked among the industry's most innovative IT users by InformationWeek magazine.
Global Crossing focused on customer retention throughout 2002, while bringing new customers onto the network. In 2002, Global Crossing served more than 75,000 customers worldwide, including approximately 40 percent of Fortune 1,000 companies, and the majority of the world's largest telecommunications camers. Six thousand of those customers engaged Global Crossing for IP services.
2003 Outlook
Having successfully met many challenges in 2002, Global Crossing is now firmly focused on emerging from bankruptcy, growing its business and increasing revenues while sticking to its newly streamlined cost structure, and continuing to leverage its next-generation global network. Upon emergence, Global Crossing will have a substantially reduced long-term debt load.
Sorrento Launches Restructuring
Sorrento Networks, supplier of intelligent optical networking solutions for metro and regional applications, announced the execution of the definitive restructuring agreement with its convertible debenture holders and the Series A preferred stockholders of its optical networking subsidiary, Sorrento Networks Inc. (SNI). The Company also announced that it filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) for shareholder approval of the capital restructuring, its reincorporation as a Delaware corporation, and anew employee equity incentive plan.
Highlights of the Definitive Agreement
The terms of the definitive agreement with the debenture and Series A holders are substantially similar to the terms previously announced by the Company in December 2002. The Company's $32.2 million in convertible bonds will be converted into common shares of the Company and into a portion of $12.5 million in secured convertible debentures that pay interest of 7.5% per annum and mature in August 2007. In addition, all Series A preferred shares will be converted into common shares of the Company and into a portion of the $12.5 million in secured convertible debentures. The outstanding Series A "put" of $48.8 million against SNI will be withdrawn. Certain Series A preferred stockholders will also receive a total of $600,000 in additional convertible debentures to pay certain legal fees.
Global Crossing's makeover has been marked by a greatly improved financial performance in a difficult environment. Global Crossing met performance targets in 2002 for cash in bank accounts, Service Revenue, Service EBITDA and maintenance and operating expenses. The performance targets were established for Global Crossing (excluding Asia Global Crossing) in the operating plan presented to its creditors in March 2002. These financial results are preliminary and unaudited.
Achievements include:
- A healthy cash position throughout 2002. Global Crossing ended the year with $782 million of cash in bank accounts, well above the $611 million targeted in its operating plan. Approximately $393 million of the December2002 cash in bank accounts was unrestricted cash.
- Service Revenue of $2,878 million in 2002, $160 million over the operating plan.
- Service EBITDA for 2002 at $(243) million, an improvement of $12 million on the operating plan.
- Operating expenses, including third-party maintenance costs, of $1,074 million for the year, an improvement of $8 million relative to operating plan targets.
- A significant reduction in operating expenses, excluding third party maintenance, from an estimated $1.5 billion in 2001 to $916 million in 2002.
- An even more dramatic reduction in cash paid for capital expenses, from approximately $3.2 billion spent in 2001 to an estimated $89 million for new commitments in 2002.
- Workforce reductions in 2002 that saved Global Crossing an estimated $215 million in payroll. Global Crossing ended the year with approximately 4,300 employees, compared to approximately 8,000 employees in January 2002.
- Closure and consolidation of 279 facilities during the year, shedding more than four million square feet for an annualized cost savings of $130 million.
Key 2002 network milestones include:
- Network availability remained at 99.999 percent, the highest industry standard.
- Global Crossing's VoIP (Voice over IP) platform, considered the largest in the world, steadily broke its own records, carrying a total of 8.2 billion minutes for the year.
- The amount of traffic running over Global Crossing's IP network, excluding VoIP, grew 200 percent for the year.
- IP traffic volume increased from 10 Gbps to 30 Gbps.
- Global Crossing helped set a new Internet speed record by transferring 625 Mbps of data 7,800 miles in 13 seconds - 7,000 times fast than dial-up - in May 2002.
- Global Crossing's advanced network enables customers in Europe, Asia and North America to implement IPv6, the next generation of IP protocol.
- Global Crossing was ranked among the industry's most innovative IT users by InformationWeek magazine.
Global Crossing focused on customer retention throughout 2002, while bringing new customers onto the network. In 2002, Global Crossing served more than 75,000 customers worldwide, including approximately 40 percent of Fortune 1,000 companies, and the majority of the world's largest telecommunications camers. Six thousand of those customers engaged Global Crossing for IP services.
2003 Outlook
Having successfully met many challenges in 2002, Global Crossing is now firmly focused on emerging from bankruptcy, growing its business and increasing revenues while sticking to its newly streamlined cost structure, and continuing to leverage its next-generation global network. Upon emergence, Global Crossing will have a substantially reduced long-term debt load.
Sorrento Launches Restructuring
Sorrento Networks, supplier of intelligent optical networking solutions for metro and regional applications, announced the execution of the definitive restructuring agreement with its convertible debenture holders and the Series A preferred stockholders of its optical networking subsidiary, Sorrento Networks Inc. (SNI). The Company also announced that it filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) for shareholder approval of the capital restructuring, its reincorporation as a Delaware corporation, and anew employee equity incentive plan.
Highlights of the Definitive Agreement
The terms of the definitive agreement with the debenture and Series A holders are substantially similar to the terms previously announced by the Company in December 2002. The Company's $32.2 million in convertible bonds will be converted into common shares of the Company and into a portion of $12.5 million in secured convertible debentures that pay interest of 7.5% per annum and mature in August 2007. In addition, all Series A preferred shares will be converted into common shares of the Company and into a portion of the $12.5 million in secured convertible debentures. The outstanding Series A "put" of $48.8 million against SNI will be withdrawn. Certain Series A preferred stockholders will also receive a total of $600,000 in additional convertible debentures to pay certain legal fees.
Rent-Way, continuing breakneck - consolidation activity - Consumer Electronics
Rent-Way, continuing breakneck pace of consolidation in rent-to-own (RTO) industry, agreed last week to buy Daytona-based Champion Rent;als for $70 million plus assumption of S18-million debt. Rent-Way said deal, expected to close by Feb. 1, will add immediately to earnings and will be financed by loan, although agreement hasn't been finalized.
Acquisition will give Rent-Way access to new markets in Ala., Ark., Ga. Chain shares markets with Champion in Fla. where latter has 33 stores and competes with Rent-Way in Jacksonville as well as Va. and Ohio. Rent-Way plans to keep Champion's 145 stopes, including 25 outlets opened in 1997, in expanding base to 382 front 187. Champion purchase, combined with acquisition of 50-store Ace TV that's expected to close this week, will increase chain's RTD market share to 4% from 2.5%, spokeswoman said. Rent-Way plans to continue acquisition binge with goal of achieving 6-10% market share by 2000, spokeswoman said.
Acquisition will give Rent-Way access to new markets in Ala., Ark., Ga. Chain shares markets with Champion in Fla. where latter has 33 stores and competes with Rent-Way in Jacksonville as well as Va. and Ohio. Rent-Way plans to keep Champion's 145 stopes, including 25 outlets opened in 1997, in expanding base to 382 front 187. Champion purchase, combined with acquisition of 50-store Ace TV that's expected to close this week, will increase chain's RTD market share to 4% from 2.5%, spokeswoman said. Rent-Way plans to continue acquisition binge with goal of achieving 6-10% market share by 2000, spokeswoman said.
Tuesday, September 11, 2007
Debt Consolidation Quotes - Look For The Best Before Taking The Plunge
A research on debt consolidation quotes is extremely necessary before you begin with your debt consolidation program. With credit card debt reaching an all time high, debt consolidation has become an industry in itself. You will find that you have thousands of options available for you if you really do want to begin with a suitable credit card debt consolidation scheme. Most firms will offer you a free debt consolidation program. They will offer you debt consolidation counseling and guide you through the entire process of rediscovering your financial well-being with debt consolidation. However, you must find the best debt consolidation program that will suit your needs. Being wary of firms that are not qualified, enough to guide you through the process is extremely important otherwise in your bid to consolidate your credit card debt you could end up worsening your financial condition.
What Are Debt Consolidation Quotes?
As you have read, debt consolidation is fast becoming an industry by itself. The reason probably lies in the fact that with a huge number of credit card companies coming into the market the number of people using credit cards and often-owning more than three credit cards each has gone up exponentially. Most people use credit cards without really realizing that the money they spend using credit cards may not immediately show on their monetary accounts but once they start showing they also begin incurring an incredibly high rates of interest. With free debt consolidation programs, you can figure out the best debt consolidation quotes available in the market. These debt consolidation quotes are issued by a number of companies that buy off debts from credit card companies and then offer to accept money from clients to settle their debt at rates that are much lower than the money that they actually owe the credit card companies. Your debt consolidation counseling is sure to guide you through the entire process.
How To Find The Best Debt Consolidation Quotes
You credit card debt consolidation counseling service is bound to help you out with this one. You must look for the best debt consolidation program so that you can get to know about the best debt consolidation quotes. It would also be a useful think to look over the internet for the best options that you can avail. You might be able to get a better offer online than those that you are finding otherwise. It is extremely important for you to find the best debt consolidation quotes so that you can embark successfully on your journey towards debt elimination.
What Are Debt Consolidation Quotes?
As you have read, debt consolidation is fast becoming an industry by itself. The reason probably lies in the fact that with a huge number of credit card companies coming into the market the number of people using credit cards and often-owning more than three credit cards each has gone up exponentially. Most people use credit cards without really realizing that the money they spend using credit cards may not immediately show on their monetary accounts but once they start showing they also begin incurring an incredibly high rates of interest. With free debt consolidation programs, you can figure out the best debt consolidation quotes available in the market. These debt consolidation quotes are issued by a number of companies that buy off debts from credit card companies and then offer to accept money from clients to settle their debt at rates that are much lower than the money that they actually owe the credit card companies. Your debt consolidation counseling is sure to guide you through the entire process.
How To Find The Best Debt Consolidation Quotes
You credit card debt consolidation counseling service is bound to help you out with this one. You must look for the best debt consolidation program so that you can get to know about the best debt consolidation quotes. It would also be a useful think to look over the internet for the best options that you can avail. You might be able to get a better offer online than those that you are finding otherwise. It is extremely important for you to find the best debt consolidation quotes so that you can embark successfully on your journey towards debt elimination.
Debt Consolidation - Understanding Credit And Debt
Debt consolidation involves transferring the balances from multiple accounts with relatively high interest rates to one account with lower interest. A debt consolidation loan does not reduce debt so much as restructure it in beneficial ways.
Debts are either secured or unsecured. Secured debts are tied to a tangible asset like a car for a car loan or a house for a mortgage. If a borrower stops making payments, lenders can repossess the car or foreclose on the house. Unsecured debts are not tied to an asset. The most common types include credit cards, medical bills and signature loans.
Debt and Credit
Most people get into debt difficulties because credit is easy to get and hard to control. Here are some warning signs that debt may be getting out of hand:
- you can only make the minimum payments on your loans and other debts each month.
- you apply for new credit cards to pay off old ones, thus rotating, but not retiring, your debt.
- you are near the limit on all your cards and accounts.
- you are being denied new loans because of your bad credit history.
- you have had to resort to bad credit financing.
Debts are either secured or unsecured. Secured debts are tied to a tangible asset like a car for a car loan or a house for a mortgage. If a borrower stops making payments, lenders can repossess the car or foreclose on the house. Unsecured debts are not tied to an asset. The most common types include credit cards, medical bills and signature loans.
Debt and Credit
Most people get into debt difficulties because credit is easy to get and hard to control. Here are some warning signs that debt may be getting out of hand:
- you can only make the minimum payments on your loans and other debts each month.
- you apply for new credit cards to pay off old ones, thus rotating, but not retiring, your debt.
- you are near the limit on all your cards and accounts.
- you are being denied new loans because of your bad credit history.
- you have had to resort to bad credit financing.
Sunday, September 9, 2007
Credit Card Debt Consolidation
You have enjoyed using your credit card. Now its time to get serious and pay up!
There are two choices when tackling credit card debt.
• Pay first the balance with the highest annual interest rate. Most financial experts recommend this strategy. It does not matter if the principal is lesser than the other cards. Your principal does not change but if you continue to pay a high interest without making a substantial dent in the principal amount, then you are just wasting money.
• Continue to pay minimum on the other credit card debts even as you pay that priority card to avoid surcharges. When you are done with the first card, move on to the next one using the same method.
• Aggressively attack your credit card debt. Double or triple your minimum payments. Or better yet, if you do have the money for it, pay all your balances in one swoop and get it out of your life, fast!
• An alternative plan is to pay the lowest balance first regardless of how much the interest rate is. This is preferred by some because it knocks off a few bills off the list in a shorter time. Another reason is that the debtors feel more gratified and motivated to see that they are making a quick progress. However, this is not widely advised because although you remove a few debts, the interest will still pile up on your other balances.
Most credit cards charge around 12% to 18%. At this rate, you are better off paying your balances in full every month. You are just prolonging your agony every time you pay the minimum. Be smart and pay up!
Once you start paying your credit card debt, do not compromise. Stay with your plan and watch your balance inch down to zero. Read your bill statements thoroughly and understand how your interest rate is calculated.
Tips on getting the best deal out of your credit cards:
• If you decide to transfer your balance to a new card with an introductory offer of low interest, make sure you pay all your balances before the offer expires. When that period lapses, the interest can shoot up the roof and you will soon be paying for more than what you actually bargained for.
• Be punctual with your payments. Some card companies will charge you with the regular interest rate if you do not pay on time. This drawback will put you further behind your repayments. Also, find out if that low interest applies to both your old balance and new purchases.
• Some cards have a grace period or the amount of days you have to pay your balance before your interest starts accruing. If that is the case, then it is best to pay your full balance within this period and actually save money. • Fees you need to know about before signing up for a card.
• Annual fee – avoid the credit card that charges this if you always pay your balance in full.
• Closure fee – some cards will charge you for closing your account.
• Late fees – pay your bill on time. You can get charged for paying a date late. The interest rate can also increase as a penalty.
Credit cards can build up your credit rating and can come in handy during emergencies. As long as you do not use it excessively, there should be no problems.
Everything you do with your credit card shows up on your credit report. So if something goes wrong and you miss a payment or if you pay less than the minimum, it will show on your credit report. Pay your balances in full and on time. You want to build up your credit standing, not mess it up.
Helpful tips for credit card use:
• Use only one credit card. Choose one that has a low interest rate and a sensible grace period.
• Ask yourself before purchasing with a credit card: Do I really need it? How long will it take me to pay it and is it worth the hassle in the end? What is the actual cost of the item when the interest amount is added?
• Pay the entire balance on time. The balance should not exceed 20% of monthly income. If you cannot pay it in full, then you probably should not have used it for purchasing in the first place.
• Curb your expenses. Cut off expenses that you can do without. Only use your card during real emergencies.
• For every card transaction, subtract the amount from your budget so you can pay your bill when it arrives.
• Never lend your credit card or leave them where anybody can access it. Report it immediately if you find that it is missing.
• Think beyond today. Plan for obligations that might come up in the future so you will be prepared.
There are two choices when tackling credit card debt.
• Pay first the balance with the highest annual interest rate. Most financial experts recommend this strategy. It does not matter if the principal is lesser than the other cards. Your principal does not change but if you continue to pay a high interest without making a substantial dent in the principal amount, then you are just wasting money.
• Continue to pay minimum on the other credit card debts even as you pay that priority card to avoid surcharges. When you are done with the first card, move on to the next one using the same method.
• Aggressively attack your credit card debt. Double or triple your minimum payments. Or better yet, if you do have the money for it, pay all your balances in one swoop and get it out of your life, fast!
• An alternative plan is to pay the lowest balance first regardless of how much the interest rate is. This is preferred by some because it knocks off a few bills off the list in a shorter time. Another reason is that the debtors feel more gratified and motivated to see that they are making a quick progress. However, this is not widely advised because although you remove a few debts, the interest will still pile up on your other balances.
Most credit cards charge around 12% to 18%. At this rate, you are better off paying your balances in full every month. You are just prolonging your agony every time you pay the minimum. Be smart and pay up!
Once you start paying your credit card debt, do not compromise. Stay with your plan and watch your balance inch down to zero. Read your bill statements thoroughly and understand how your interest rate is calculated.
Tips on getting the best deal out of your credit cards:
• If you decide to transfer your balance to a new card with an introductory offer of low interest, make sure you pay all your balances before the offer expires. When that period lapses, the interest can shoot up the roof and you will soon be paying for more than what you actually bargained for.
• Be punctual with your payments. Some card companies will charge you with the regular interest rate if you do not pay on time. This drawback will put you further behind your repayments. Also, find out if that low interest applies to both your old balance and new purchases.
• Some cards have a grace period or the amount of days you have to pay your balance before your interest starts accruing. If that is the case, then it is best to pay your full balance within this period and actually save money. • Fees you need to know about before signing up for a card.
• Annual fee – avoid the credit card that charges this if you always pay your balance in full.
• Closure fee – some cards will charge you for closing your account.
• Late fees – pay your bill on time. You can get charged for paying a date late. The interest rate can also increase as a penalty.
Credit cards can build up your credit rating and can come in handy during emergencies. As long as you do not use it excessively, there should be no problems.
Everything you do with your credit card shows up on your credit report. So if something goes wrong and you miss a payment or if you pay less than the minimum, it will show on your credit report. Pay your balances in full and on time. You want to build up your credit standing, not mess it up.
Helpful tips for credit card use:
• Use only one credit card. Choose one that has a low interest rate and a sensible grace period.
• Ask yourself before purchasing with a credit card: Do I really need it? How long will it take me to pay it and is it worth the hassle in the end? What is the actual cost of the item when the interest amount is added?
• Pay the entire balance on time. The balance should not exceed 20% of monthly income. If you cannot pay it in full, then you probably should not have used it for purchasing in the first place.
• Curb your expenses. Cut off expenses that you can do without. Only use your card during real emergencies.
• For every card transaction, subtract the amount from your budget so you can pay your bill when it arrives.
• Never lend your credit card or leave them where anybody can access it. Report it immediately if you find that it is missing.
• Think beyond today. Plan for obligations that might come up in the future so you will be prepared.
Debt Consolidation A Common Sense Solution to Your Financial Headaches
Debt consolidation loans might be the solution to your financial woes.
Do you have difficulties paying your bills on time? Can you barely cope with your increasing debt problems? Many people like you have credit problems and get help solving them. Securing a debt consolidation loan is often the perfect solution.
Don’t feel intimidated by the title; Debt consolidation is a fairly easy and simple process. When a consumer like you has become overwhelmed by bills, he or she decides to merge all debts into one single loan. People usually pay much less interest when they combine everything they owe onto one bill.
If your debt comes mostly from high interest credit card use, debt consolidation might be a good option for you. Many department store credit cards have interest rates of over 20%! Debt consolidation loans normally charge significantly lower interest.
Lower interest rates translates for most folks into lower payments. This has a positive snowball effect. You can begin to balance your budget, satisfy creditors, and begin to repair your credit standing. Here are some simple tips – beyond a debt consolidation loan -- to managing your debt.
First, organize your finances. Find out exactly what your monthly income and expenses are. This step, as tedious as it might seem, Although this can be a depressing and tedious work, you have to do it in order for you to construct a better budget. Your debt problems will not go away if you ignore them. Be completely honest with yourself so you can accurately analyze your financial picture. You will then be able to make the right economic decisions.
Second, after you organize your finances, check to see if your expenditures include non-essentials. Decide what you can live without, and apply the extra cash to paying down your debt.
Third, agree not to secure any more credit. Credit sounds positive, and your spending power will be temporarily enhanced. Unless you plan on leveraging the new line of credit on money-making opportunities, more credit will simply overload you more.
Fourth, build up your savings. It may be difficult to save money if you have debt problems. Try saving a little money out of each paycheck. Money in savings means you aren’t drowning in debt. You will have options for paying off your bills, and you will be working toward financial independence.
Consolidating high interest rate loans might be in your best, well, interest. Every loan payment has two parts. The first part is the principal amount and the other is the interest on the loan. Understand that paying minimum fees due will cause you to pay a lot more in the long run. In a debt consolidation loan, you can have lesser and lower interest rates and cut down quickly the principal. This means your overall indebtedness decreases quickly.
Do you have difficulties paying your bills on time? Can you barely cope with your increasing debt problems? Many people like you have credit problems and get help solving them. Securing a debt consolidation loan is often the perfect solution.
Don’t feel intimidated by the title; Debt consolidation is a fairly easy and simple process. When a consumer like you has become overwhelmed by bills, he or she decides to merge all debts into one single loan. People usually pay much less interest when they combine everything they owe onto one bill.
If your debt comes mostly from high interest credit card use, debt consolidation might be a good option for you. Many department store credit cards have interest rates of over 20%! Debt consolidation loans normally charge significantly lower interest.
Lower interest rates translates for most folks into lower payments. This has a positive snowball effect. You can begin to balance your budget, satisfy creditors, and begin to repair your credit standing. Here are some simple tips – beyond a debt consolidation loan -- to managing your debt.
First, organize your finances. Find out exactly what your monthly income and expenses are. This step, as tedious as it might seem, Although this can be a depressing and tedious work, you have to do it in order for you to construct a better budget. Your debt problems will not go away if you ignore them. Be completely honest with yourself so you can accurately analyze your financial picture. You will then be able to make the right economic decisions.
Second, after you organize your finances, check to see if your expenditures include non-essentials. Decide what you can live without, and apply the extra cash to paying down your debt.
Third, agree not to secure any more credit. Credit sounds positive, and your spending power will be temporarily enhanced. Unless you plan on leveraging the new line of credit on money-making opportunities, more credit will simply overload you more.
Fourth, build up your savings. It may be difficult to save money if you have debt problems. Try saving a little money out of each paycheck. Money in savings means you aren’t drowning in debt. You will have options for paying off your bills, and you will be working toward financial independence.
Consolidating high interest rate loans might be in your best, well, interest. Every loan payment has two parts. The first part is the principal amount and the other is the interest on the loan. Understand that paying minimum fees due will cause you to pay a lot more in the long run. In a debt consolidation loan, you can have lesser and lower interest rates and cut down quickly the principal. This means your overall indebtedness decreases quickly.
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