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.
Tuesday, January 29, 2008
I Defaulted My Student Loan - What Should I Do?
However, there are alternatives to get back on track and obtain rehabilitation of your student loans with proper negotiations with the lenders or collection agencies. Moreover, it is important to find a solution to your default in order to avoid negative consequences on your credit and raise your score again.
Finding Out Your Debt Status
The first step you need to take is to find out your current debt status. In order to do that you will need to contact the state department of education and inquire about your current debt situation. Once you have been told about the standing of your student loans, you will need to contact the lender or the collection agency depending on the condition informed by the state department of education.
Also, you may want to inquire about the Title IV student debt rehabilitation letter. This document will provide you a permit to continue with your studies. It is provided by the state department of education once the lender or collection agencies confirm that your student debt status is back to normal. The whole process can take between half to a whole year, so you may want to start as soon as possible.
Negotiating With Lenders Or Collectors
Collection agencies are usually willing to negotiate new terms on your debt and the actual lenders will also be willing to negotiate with you since they would otherwise have to sell the debt to collectors at a much lower price. Therefore, no matter who holds your debt, you just need a smart approach and to show that you are willing to get back on track with your student debt payments.
You will reach an agreement with the debt holder and you must make sure that you will be committed to repay your debt because you will not get another chance if you default again. Also, make sure that the state department of education is notified of the timely payments of your debt. Six consecutive and timely monthly payments are needed to obtain the rehabilitation but it may take a month or two more for the whole process to be finished.
Who Is Responsible For Paying Of Debt
This question often rises when it comes to married couples. If your spouse did not apply for the loan, he or she is not responsible for the repayment. The only chance that the lender has to hold someone else responsible for repayment is when the other person applies jointly or as a co-signer. Otherwise the cancellation of the student loan is a personal responsibility of the debt holder.
We point this out because some collectors and lenders try to gather information about other members of the family for their collection practices. And you should be well aware of the fact that they cannot require that information as part of the agreement if the other person did not apply for the loan.
The only documentation that you may be required to submit is your own and is limited to proof of income, residence and other documentation to back up the information you provide like unemployment certificate or payment stubs from your employer.
Finding Out Your Debt Status
The first step you need to take is to find out your current debt status. In order to do that you will need to contact the state department of education and inquire about your current debt situation. Once you have been told about the standing of your student loans, you will need to contact the lender or the collection agency depending on the condition informed by the state department of education.
Also, you may want to inquire about the Title IV student debt rehabilitation letter. This document will provide you a permit to continue with your studies. It is provided by the state department of education once the lender or collection agencies confirm that your student debt status is back to normal. The whole process can take between half to a whole year, so you may want to start as soon as possible.
Negotiating With Lenders Or Collectors
Collection agencies are usually willing to negotiate new terms on your debt and the actual lenders will also be willing to negotiate with you since they would otherwise have to sell the debt to collectors at a much lower price. Therefore, no matter who holds your debt, you just need a smart approach and to show that you are willing to get back on track with your student debt payments.
You will reach an agreement with the debt holder and you must make sure that you will be committed to repay your debt because you will not get another chance if you default again. Also, make sure that the state department of education is notified of the timely payments of your debt. Six consecutive and timely monthly payments are needed to obtain the rehabilitation but it may take a month or two more for the whole process to be finished.
Who Is Responsible For Paying Of Debt
This question often rises when it comes to married couples. If your spouse did not apply for the loan, he or she is not responsible for the repayment. The only chance that the lender has to hold someone else responsible for repayment is when the other person applies jointly or as a co-signer. Otherwise the cancellation of the student loan is a personal responsibility of the debt holder.
We point this out because some collectors and lenders try to gather information about other members of the family for their collection practices. And you should be well aware of the fact that they cannot require that information as part of the agreement if the other person did not apply for the loan.
The only documentation that you may be required to submit is your own and is limited to proof of income, residence and other documentation to back up the information you provide like unemployment certificate or payment stubs from your employer.
How Do I Choose the Best Debt Consolidation Company?
These days' people are more and more prone to getting into debt, probably because money is being offered to us from all directions and a certain amount of personal debt is not regarded as normal. But more and more are getting into the worried stage!
What about those that are tired of always falling behind on payments, if a major chunk of their salary is going towards paying their debts and are tired of pestering collection calls, it is time for these people to find some calmness in their life.
What all of these people need is not another loan to pay, but to get help in the form of a debt consolidation program? To find the best debt consolidation company you will have to shop around and talk with whomever you can who has had this experience.
Two major things that you should look for in this type of a company are experience and expertise. A good way to judge is to check whether the company is registered with the Better Business Bureau. Then check if they have ever had any negative reports.
Another way of judging the company is by reading the customer testimonials. This gives you an idea about their customer service. During this trying financial time you need people to work with that treat you with respect and honesty.
They should stop your creditors from contacting you and they will work with your debt collectors to inform them of the negotiations that will be taking place. Next, the consolidators will help reduce the interest payments to a very small figure, if one at all.
Also, look, at the upfront fee, the payoff fees, their fees, etc. As a smart shopper, you must look at the whole package. Therefore, it is important that before you sign on the dotted line you must read the fine print very carefully.
A good debt consolidation company will offer you a tailor made solution that fits your financial situation. You will then have a personal version to help you to get out of your own circumstance. This type of company ensures that you are out of debt and you should ONLY work with such a company. It will also help you stay out of debt in the future by giving you financial tips and tools and counseling.
Best Debt Consolidation has valuable information worth looking at. A reputable debt company has to be found and I suggest that you start searching now to find one.
What about those that are tired of always falling behind on payments, if a major chunk of their salary is going towards paying their debts and are tired of pestering collection calls, it is time for these people to find some calmness in their life.
What all of these people need is not another loan to pay, but to get help in the form of a debt consolidation program? To find the best debt consolidation company you will have to shop around and talk with whomever you can who has had this experience.
Two major things that you should look for in this type of a company are experience and expertise. A good way to judge is to check whether the company is registered with the Better Business Bureau. Then check if they have ever had any negative reports.
Another way of judging the company is by reading the customer testimonials. This gives you an idea about their customer service. During this trying financial time you need people to work with that treat you with respect and honesty.
They should stop your creditors from contacting you and they will work with your debt collectors to inform them of the negotiations that will be taking place. Next, the consolidators will help reduce the interest payments to a very small figure, if one at all.
Also, look, at the upfront fee, the payoff fees, their fees, etc. As a smart shopper, you must look at the whole package. Therefore, it is important that before you sign on the dotted line you must read the fine print very carefully.
A good debt consolidation company will offer you a tailor made solution that fits your financial situation. You will then have a personal version to help you to get out of your own circumstance. This type of company ensures that you are out of debt and you should ONLY work with such a company. It will also help you stay out of debt in the future by giving you financial tips and tools and counseling.
Best Debt Consolidation has valuable information worth looking at. A reputable debt company has to be found and I suggest that you start searching now to find one.
Monday, January 28, 2008
Consolidation Loans Can Help You Break Free Of Debt
If you are struggling to repay one or more loans and possibly a credit card or two then life could seem like an uphill struggle with no way out. There is a solution to getting your debt under control and reducing your repayments each month but it has to be considered carefully. Comparing consolidation loans and taking one out with a low interest rate can help you to see the light at the end of the tunnel.
A consolidation loan will enable you to take all your existing debts and combine then into one sum. Once this is done you take out one loan and repay off all your creditors which then leaves you paying just one debt and lowering the amount you have to pay each month. A consolidation loan will work to your advantage if you can repay the amount borrowed in a short period of time and the interest rate is low.
Taking out a loan over many years when you only have only a couple of years to repay your existing debts would mean you would be worse off in the long run. However you could pay less each month. If you are in extreme debt then talk with a specialist. There are specialist websites who offer advice and information on the most suitable type of loan for your circumstances.
While usually consolidation loans are offered as secured loans there are other options. The type of loan and the rate of interest you will pay will basically depend on your credit rating. If you have an excellent credit rating you will be rewarded with the cheapest interest rates and best deals. A poor credit rating would probably mean you would have to take a secured loan or bad credit loan and pay a higher interest rate.
A specialist can always find the best deals based on your particular circumstances. They will be able to scour the whole of the market and gather quotes from some of the best lenders to be found online. While you could search yourself an individual does not have access to the same lenders as a specialist does or commands the same attention. A specialist can find you quotes to compare immediately, so all you have to do is read the terms and conditions along with comparing interest rates. The key facts that come with the quotes should be focused on as they hold information which can make a difference when comparing.
No two consolidation loans are ever the same, the rate of interest that is charged will vary from lender to lender. The basis of which is your credit score, the amount you wish to borrow, the length of the loan and how much the lender puts onto the loan above the Bank of England base rate. The interest rate, length of the loan and the total amount that will be repayable will be included in the small print. It is also here where you can find additional costs and these can make a huge difference to the outcome of the loan.
A consolidation loan will enable you to take all your existing debts and combine then into one sum. Once this is done you take out one loan and repay off all your creditors which then leaves you paying just one debt and lowering the amount you have to pay each month. A consolidation loan will work to your advantage if you can repay the amount borrowed in a short period of time and the interest rate is low.
Taking out a loan over many years when you only have only a couple of years to repay your existing debts would mean you would be worse off in the long run. However you could pay less each month. If you are in extreme debt then talk with a specialist. There are specialist websites who offer advice and information on the most suitable type of loan for your circumstances.
While usually consolidation loans are offered as secured loans there are other options. The type of loan and the rate of interest you will pay will basically depend on your credit rating. If you have an excellent credit rating you will be rewarded with the cheapest interest rates and best deals. A poor credit rating would probably mean you would have to take a secured loan or bad credit loan and pay a higher interest rate.
A specialist can always find the best deals based on your particular circumstances. They will be able to scour the whole of the market and gather quotes from some of the best lenders to be found online. While you could search yourself an individual does not have access to the same lenders as a specialist does or commands the same attention. A specialist can find you quotes to compare immediately, so all you have to do is read the terms and conditions along with comparing interest rates. The key facts that come with the quotes should be focused on as they hold information which can make a difference when comparing.
No two consolidation loans are ever the same, the rate of interest that is charged will vary from lender to lender. The basis of which is your credit score, the amount you wish to borrow, the length of the loan and how much the lender puts onto the loan above the Bank of England base rate. The interest rate, length of the loan and the total amount that will be repayable will be included in the small print. It is also here where you can find additional costs and these can make a huge difference to the outcome of the loan.
Debt Consolidation Personal Loans - A Way Towards Reducing Your Tensions
You can always go for a debt consolidation personal loan if you are having multiple debts to be handled at a certain quantum of time. It helps you combine all your debts into a single debt and that too with a lower rate of interest.
Debt consolidation personal loans are available both as secured and unsecured loans. You can go for a secured one if you are having some asset to be placed as collateral as they are available at a lower rate of interest compared to unsecured one. Since no collateral is required in case of unsecured debt consolidation personal loan you are charged higher rate of interest as there is a risk involved in that. You can have an amount ranging from £5,000 to £75,000 and can have repayment tenure of about 5 to 25 years depending on the amount borrowed.
Due to competition in the market you can get the loan at a lower rate of interest. You can get it at further lower rate by opting for a secured one. It helps people who are having bad credit history, defaults, bankruptcy etc. But if you are having bad credit record then the rate of interest will be slightly higher. There are many institution where you can get a debt consolidation personal loan like banks, financial institutions etc. You do not have to search the market for such loan you can get a better lender on internet itself. Then you choose the lender which suits you best.
If you are lenient in repaying the loan it can affect you credit record. But debt consolidation personal loan helps you out from this situation. With this loan you will have to pay only one monthly installment instead of a long list of repayment every month so it releases much of your tension.
Summary
Debt consolidation personal loans are meant for those who are suffering from long list of debts. This loan consolidates your entire loan into a single debt which you have to pay monthly and that too at a lower rate of interest. Both secured and unsecured type is available. You can choose the one according to your convenience.
Debt consolidation personal loans are available both as secured and unsecured loans. You can go for a secured one if you are having some asset to be placed as collateral as they are available at a lower rate of interest compared to unsecured one. Since no collateral is required in case of unsecured debt consolidation personal loan you are charged higher rate of interest as there is a risk involved in that. You can have an amount ranging from £5,000 to £75,000 and can have repayment tenure of about 5 to 25 years depending on the amount borrowed.
Due to competition in the market you can get the loan at a lower rate of interest. You can get it at further lower rate by opting for a secured one. It helps people who are having bad credit history, defaults, bankruptcy etc. But if you are having bad credit record then the rate of interest will be slightly higher. There are many institution where you can get a debt consolidation personal loan like banks, financial institutions etc. You do not have to search the market for such loan you can get a better lender on internet itself. Then you choose the lender which suits you best.
If you are lenient in repaying the loan it can affect you credit record. But debt consolidation personal loan helps you out from this situation. With this loan you will have to pay only one monthly installment instead of a long list of repayment every month so it releases much of your tension.
Summary
Debt consolidation personal loans are meant for those who are suffering from long list of debts. This loan consolidates your entire loan into a single debt which you have to pay monthly and that too at a lower rate of interest. Both secured and unsecured type is available. You can choose the one according to your convenience.
Free Debt Consolidation - Best Debt Management Technique To Avoid Bankruptcy
Free debt consolidation is one of the best debt relief solutions that can take you out of disaster created by multiple unmanageable debts. You are not the only one who is facing this kind of trouble. A lot of people all around the world have become the victim of easy credit availability and looking for a company that can take them out of this situation. Yes, easier it is becoming to borrow money, more the problems it is creating for people. They keep on borrowing to cater to the demands of modern lifestyle without considering the consequences.
No Need To Have Any Doubts About Quality Of Service
People start realizing only when they become unable to make even minimum payments to various lenders. This is the time when debt consolidation services come to their rescue. Many non profit organizations offer it that can be quiet handy in these circumstances. You should not doubt the quality of service just because they do not ask you to make any payments to them.
Now, you must be eager to know after all how does debt consolidation work and how do these companies manage the things with the same earnings. Well, the answer is that these institutes work by removing the root cause of problem. It is the cost of money that you borrowed that creates trouble for you. that is why they give topmost priority to cutting down the cost of borrowing.
Understanding The Concept
Companies offering free debt consolidation merge all your existing loans into a single loan with much lower interest rate. This single step brings down overall interest you pay every month to a great extent. Your next goal is to bring the monthly installment to such an extent that you can pay it comfortably even after making all necessary day today expenses. You can achieve this objective by stretching the repayment period for newer loan.
Once you realize that things are back in your control now, you start working in a more confident manner. Moreover, after availing free debt consolidation services, you will not have to receive any irritating phone calls from different lenders. Instead, you will have to make only one monthly payment. You can use rest of your time and energy constructively and get positive and better results.
No Need To Have Any Doubts About Quality Of Service
People start realizing only when they become unable to make even minimum payments to various lenders. This is the time when debt consolidation services come to their rescue. Many non profit organizations offer it that can be quiet handy in these circumstances. You should not doubt the quality of service just because they do not ask you to make any payments to them.
Now, you must be eager to know after all how does debt consolidation work and how do these companies manage the things with the same earnings. Well, the answer is that these institutes work by removing the root cause of problem. It is the cost of money that you borrowed that creates trouble for you. that is why they give topmost priority to cutting down the cost of borrowing.
Understanding The Concept
Companies offering free debt consolidation merge all your existing loans into a single loan with much lower interest rate. This single step brings down overall interest you pay every month to a great extent. Your next goal is to bring the monthly installment to such an extent that you can pay it comfortably even after making all necessary day today expenses. You can achieve this objective by stretching the repayment period for newer loan.
Once you realize that things are back in your control now, you start working in a more confident manner. Moreover, after availing free debt consolidation services, you will not have to receive any irritating phone calls from different lenders. Instead, you will have to make only one monthly payment. You can use rest of your time and energy constructively and get positive and better results.
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