With the current economic crisis, many people are finding themselves in dire financial straits. I have heard from people who, due to bad mortgage and real estate decisions, find that they now owe more than their home is worth, and balloon payments are coming due.
Other individuals have been living on credit cards, charging more than they make each and every month until they maxed out their credit cards, and now they can't get more credit for living expenses. What is the answer?
Every situation is different. Some situations are not as bad as they may seem, while others may be worse than you think. Before making a decision to declare bankruptcy, which will wipe out most of your debt in most states, but leave you in the poor credit risk category for as much as 10 years, contact a credit counselor to see if debt consolidation is an option for you.
Credit counselors have been well trained to determine how to help you to help yourself. So, do yourself a favor and contact a reputable credit counselor as soon as possible.
Showing posts with label debt consolidation. Show all posts
Showing posts with label debt consolidation. Show all posts
Saturday, October 4, 2008
Friday, January 25, 2008
Manage Your Expenses to Get Out of Debt
Manage Your Expenses to Get Out of Debt
One of the ways to improve your credit rating is to manage expenses to get out of debt. Much of your credit score depends on your ratio of debt to available credit. The higher the ratio, the lower your credit score.
It’s very easy to get out of debt; it’s doing what needs to be done, however, that’s the difficult part.
The Problem is How You Feel about Saving Money
Many people find it hard to save money. Don’t make the mistake of thinking that it’s impossible to save. Once you start feeling that your situation’s hopeless, you’ll never be able to pay off your debts. The trick is to think positive; it’s simple but it works.
Be Realistic about Creating a Budget
Don’t eliminate expenditures like there’s no tomorrow. Forcing yourself to live a Spartan existence will only stress you out more and make you less able to pay off your expenses. You need to have your budget work on the first try because it will give you exactly the motivation you need for the succeeding months.
Be Practical about the Budget
It’s okay to leave a little space for personal expenses in your budget if you can afford it. Don’t however overindulge yourself as that will just get you back to square one and with even more creditors pounding on your door.
Focus on the Credit Card with the Highest Interest Rate First
The card with the highest rate is always accompanied by the most demanding creditor. So, for your own sake, it’s better to get rid of the creditor with the most at stake. Then, proceed on eliminating credit card debt until you end up with only the credit cards that have low interest rates and well-mannered creditors.
Cash, Please
Leave your credit cards behind. If you feel that you’re absolutely unsafe without plastic money, take just one credit card with you and no more than that. Credit card purchases are always more expensive than cash purchases. Even if you don’t see or feel it, you’ll save lots of money on interest alone just by paying cash.
Lowering Credit Limits
If possible, ask for your credit card and phone company to lower your credit limit. This will ensure that you won’t go over the budget no matter what you do.
Know the Right Places to Shop
When you’re on your penny-saving days, it’s time to say a temporary farewell to your favorite designer boutiques and your other expensive fancy pursuits. It’s time to cut back on the good life and make use of all the discount coupons you can cut out off magazines.
If you still don’t think you can save money and lessen your expenditures, you still have one more option left to get rid of debt: find ways to earn more money!
Tag: manage expenses get out of debt
One of the ways to improve your credit rating is to manage expenses to get out of debt. Much of your credit score depends on your ratio of debt to available credit. The higher the ratio, the lower your credit score.
It’s very easy to get out of debt; it’s doing what needs to be done, however, that’s the difficult part.
The Problem is How You Feel about Saving Money
Many people find it hard to save money. Don’t make the mistake of thinking that it’s impossible to save. Once you start feeling that your situation’s hopeless, you’ll never be able to pay off your debts. The trick is to think positive; it’s simple but it works.
Be Realistic about Creating a Budget
Don’t eliminate expenditures like there’s no tomorrow. Forcing yourself to live a Spartan existence will only stress you out more and make you less able to pay off your expenses. You need to have your budget work on the first try because it will give you exactly the motivation you need for the succeeding months.
Be Practical about the Budget
It’s okay to leave a little space for personal expenses in your budget if you can afford it. Don’t however overindulge yourself as that will just get you back to square one and with even more creditors pounding on your door.
Focus on the Credit Card with the Highest Interest Rate First
The card with the highest rate is always accompanied by the most demanding creditor. So, for your own sake, it’s better to get rid of the creditor with the most at stake. Then, proceed on eliminating credit card debt until you end up with only the credit cards that have low interest rates and well-mannered creditors.
Cash, Please
Leave your credit cards behind. If you feel that you’re absolutely unsafe without plastic money, take just one credit card with you and no more than that. Credit card purchases are always more expensive than cash purchases. Even if you don’t see or feel it, you’ll save lots of money on interest alone just by paying cash.
Lowering Credit Limits
If possible, ask for your credit card and phone company to lower your credit limit. This will ensure that you won’t go over the budget no matter what you do.
Know the Right Places to Shop
When you’re on your penny-saving days, it’s time to say a temporary farewell to your favorite designer boutiques and your other expensive fancy pursuits. It’s time to cut back on the good life and make use of all the discount coupons you can cut out off magazines.
If you still don’t think you can save money and lessen your expenditures, you still have one more option left to get rid of debt: find ways to earn more money!
Tag: manage expenses get out of debt
Thursday, January 17, 2008
Credit card debt management
Credit card debt management
Credit cards that are used in moderation could be helpful in managing your finances. This means that splurging through the use of credit cards is almost financial suicide.
Here are few tips to manage the way you use your credit card to prevent you from acquiring debts that could lead to your financial death (excuse the pun).
Tag: Credit card debt management
Credit cards that are used in moderation could be helpful in managing your finances. This means that splurging through the use of credit cards is almost financial suicide.
Here are few tips to manage the way you use your credit card to prevent you from acquiring debts that could lead to your financial death (excuse the pun).
- Planning. Before purchasing any product using your credit card, make sure to provide yourself with a plan on how you will be able to pay for your credit card bills. Prioritize your needs before your wants. Purchasing grand items that you don't really need might give you that temporary high that impulsive buyers are addicted to. But that temporary high would eventually turn to long-term down feeling due to your piled up debts.
- Limit. For you to be able to manage your debts and payments, never go overboard when it comes to your credit limit. If it's possible, it will help a lot if you just use about two-thirds of your limit.
- Statement of account. Keep a record of all your credit card transactions for future reference. In order to prevent inaccuracies of bills and fraud, always remember to check the list of your purchase for the month. If your list and the statement of account do not match, report this to your bank.
- Piled up debt remedies. There are a number of steps you have to do in order to escape these financial problems.
- Determine the amount you need to pay and provide yourself with a plan that would fix your finances without pressure.
- Consider paying the minimum amount to be paid. Then, ask for debt consolidation options that would make it a lot easier for you to pay your debts. If you don’t know how to solve your financial problems, there are financial advisers that could help you with your credit card management. They might offer you financial assistance through bank loans that would allow you more time to pay aside from the debt consolidation method. But of course, remember to research on the agency before getting involved with them. Don't just go saying amen to whatever they offer since there is a possibility that they could cause the situation to aggravate.
- Self-control is the best way to prevent getting debts that you won't be able to pay immediately. But if you're already in the pits, considering the abovementioned suggestions won't hurt.
Tag: Credit card debt management
Sunday, December 30, 2007
Consolidate, before it's too late - Credit Card Debt Consolidation
Consolidate, before it's too late - credit card debt consolidation.
When Diners Club released the first credit card in 1950, credit cards revolutionized the purchasing experience.
Credit card issuers gave consumers limited credit that, at times, even surpassed their own personal savings. Credit allowed them to buy the items they could not usually afford with a cash purchase. Credit also provided the convenience of not needing to carry wads of cash.
Today, on average, American households possess 4 major credit cards, such as American Express, Visa, or MasterCard, or a total of 13 payment cards including debt cards and store cards aside from credit cards. There are, about 1.3 billion credit cards in circulation in the United States.
However, if you think that credit cards have made the lives of modern American consumers easier, think again.
Current statistics show that the average credit card debt for each household per month is $4,800. These high balances lead to 1.3 million credit card holders declaring bankruptcy in 2003.
If you think you are unaffected by this, think again. At retirement, most Americans can only expect to receive about 37% percent of their annual retirement income because of debt payment, leaving them to depend on the government, family and charity.
That’s scary! Before you find yourself in the same situation, it might be time to evaluate your credit card and other debt.
One way of resolving credit card and other debt that you might consider is debt consolidation.
So what is debt consolidation?
Deep in debt? Maybe we can help. Get a free debt quote with LifeLine Debt Solutions and see what we can save you.
In a nutshell, debt consolidation is taking all your credit card debt balances, and often other debt, and consolidating them into one monthly payment. Then, you don’t have to worry about managing each payment individually. It may also provide you some additional benefits:
- Reduce interest payments
- Waive late and other fees
- Low, stable monthly payments
- Debt repayment in a shorter time
- Credit score improvement
- Save money in the long run
You will also need to know that there are actually two major types of debt consolidation.
First is through a Credit Counseling firm. They assist consumers by consolidating all their monthly payments into one single payment and then disperse this to the creditors on behalf of the consumer until they are debt-free.
The other type is through a home equity loan or other secured loan. With this, you exchange unsecured debt (such as credit card debt) for a secured debt (a debt backed by specific assets such as real estate).
While debt consolidation isn’t a magic balm that will drive all your credit card debt problems away immediately, it will make paying all your debt easier and might save you money in the long run.
tag: credit card debt consolidation
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