With Montana debt consolidation programs, residents of Montana can begin the positive process of getting their debt under control. The residents of Montana can work to repair their credit score and once again look forward to having a good credit rating and its advantages.
Montana debt consolidation companies are best suited to serve the citizens of Montana. These companies alone have knowledge of all economic, social, political, commercial, legal and other factors that are operating in Montana.
While in reality, the conditions in Montana may not be very different from the factors present elsewhere, it is best to employ the services of an organization that is best geared up to adapt to any possible change in circumstances.
Approaching a debt consolidation company based in Montana, deciding on its credibility, and making a final decision will be very easy and convenient for residents. Obtaining information, developing faith, implementing the plan, seeking advice, and improving the finances will be easiest if both the borrower and the company are based in Montana itself.
Working through Montana debt consolidation, debtors can better manage their finances through lower interest rates with a single monthly payment.
Debtors can also approach debt consolidation companies in Montana via the Internet, as well. There are many companies that offer debt consolidation programs to Montana residents. The terms and conditions each consolidation company offers vary, but can easily be researched over the Internet.
Once the debtor is satisfied with a company, he can approach that company and begin the debt consolidation process.
Shop and compare the many Montana debt consolidation programs available in the market and begin your journey to financial freedom today with a wise decision. You will never regret having spent that extra few hours to find the best company with the best rates and the best understanding of your specific problems.
Talbert Williams 2001-2006 All Rights Reserved
About The Author
Talbert Williams offers free help and referals to help consolidate and eliminate your debt at: www.debt-free-america.com.
debteads@debt-free-america.com
Sunday, November 25, 2007
Why You May Need Credit Card Debt Consolidation
You find yourself in a situation of mounting credit card debt. You have 5 credit cards in your wallet and have been shopping more than you earn. Initially you had no problems managing your funds but it has started to snowball not too long ago. Your spending has been steadily increasing as you find it hard to curb your shopping habits. From being able to pay the full outstanding balances on your credit cards, you are paying the minimum sum each month. Your salary can barely cover your required minimum payments.
This is when you start to realize that you are just unable to cope. You face stress and worry each month when you receive the dreaded statements from your credit card companies and your banks. Then, you begin to panic when you receive calls from the loan recovery department of your banks. Increasingly, you find it hard to keep secret your debt situation from your family members.
What can you do? So how about considering credit card debt consolidation as a possible solution to get you out of this mess?
Credit card debt consolidation simply means taking all your outstanding balances and turning them into one payment. Normally this payment is lower than if you paid all of them individually.
This is what happens in a credit card debt consolidation process. After you agreed on a plan with a debt consolidation company, the debt company pays off your debt to your creditors. You make a single monthly payment to the consolidation company each month. You get to also pay a lower average interest rate than previously.
All credit card debt consolidation loans require some form of credit card and debt counseling. You and your family have to cutback on your lifestyle while you get things back in order. However, the aim of debt consolidation is to have you debt free, with a roof over your head!
About the Author
Elaine Lim used to be a research analyst from a bank and now hopes to share her expertise through publishing information on consumer credit. She hopes to help others in their financial planning, debt management and credit repair. For more free tips and resources, please visit http://www.credit-cards-eguide.com.
This is when you start to realize that you are just unable to cope. You face stress and worry each month when you receive the dreaded statements from your credit card companies and your banks. Then, you begin to panic when you receive calls from the loan recovery department of your banks. Increasingly, you find it hard to keep secret your debt situation from your family members.
What can you do? So how about considering credit card debt consolidation as a possible solution to get you out of this mess?
Credit card debt consolidation simply means taking all your outstanding balances and turning them into one payment. Normally this payment is lower than if you paid all of them individually.
This is what happens in a credit card debt consolidation process. After you agreed on a plan with a debt consolidation company, the debt company pays off your debt to your creditors. You make a single monthly payment to the consolidation company each month. You get to also pay a lower average interest rate than previously.
All credit card debt consolidation loans require some form of credit card and debt counseling. You and your family have to cutback on your lifestyle while you get things back in order. However, the aim of debt consolidation is to have you debt free, with a roof over your head!
About the Author
Elaine Lim used to be a research analyst from a bank and now hopes to share her expertise through publishing information on consumer credit. She hopes to help others in their financial planning, debt management and credit repair. For more free tips and resources, please visit http://www.credit-cards-eguide.com.
Why You Should Choose Debt Consolidation
If debt is currently an issue in your life, debt consolidation really can save you from the stress of bills, debt collectors, and the nagging thoughts of foreclosure or even bankruptcy. Debt consolidation can drastically change your life within weeks, months, or years depending on your current debt situation. Consolidating your debts will allow you to live with peace of mind that you are taking care of your financial obligations while continuing to live a happy life.
Debt consolidation is taking all of your bills and fitting them into one monthly payment. Fitting all your bills into one payment also means one interest rate, which will limit the amount you pay out every month, saving you a lot of money in the long run. Debt consolidation also makes paying off multiple debts easier because the monthly payments can be lowered when you take away insane interest rates. The average debtor pays more interest every month than they do on the actual principal balance of their debt! Eliminating the sky-high interest rates is a good start to getting your debts paid, without going completely broke.
Many people assume when they can't pay the bills it's time to just throw up their hands and consider drastic actions such as foreclosure, repossession and bankruptcy. While there are some extreme cases where bankruptcy would be the best option, foreclosure is almost always avoidable as is repossession. Banks, car dealerships, mortgage companies, and creditors don't like to have to take back property or write off your debts, they would rather work with you on debt consolidation so that they can get back what they are owed and you can go on your way with your credit still in tact. Bankruptcy, repossession, and foreclosure are not easy outs when it comes to debts; in fact, they are choices that will continue to affect you for a long, long time. Consider debt consolidation before making any hasty decisions.
Debt consolidation on your own can be tricky, or downright impossible depending on your credit situation. Luckily, there are debt consolidation companies waiting to help people who are in over their head, just like you! Debt consolidation companies will take your credit report and any unreported debts that you can give them and work out a payment plan for you. These debt consolidation companies often contact each company and strike a deal to lower or get rid of the interest and even split the balance of the amount due. Obviously, lowering or getting rid of interest and part of each debt will limit what you spend each month, enabling you to actually pay the bill.
What's the catch with this type of debt consolidation? Well, there really isn't one. Yes, this is a business and the consolidator does make money because while he takes away the interest that each company is charging, he will charge you interest or a percentage of what you owe. Doesn't seem fair? It is! It works out better for you, because even though you are still paying interest it's just one interest payment for all the debts you currently hold. So, instead of paying twenty seven percent to ten companies you'll pay twenty percent to one company. So, you go from having multiple payments and interest rates to just one payment for all the bills and one interest rate. It works! If you follow the plan, and make your monthly payments debt consolidation will soon have your credit report looking much better than it does right now.
You may think that you have so much debt you cannot possibly afford to repay even on a debt consolidation plan. You'd be surprised what these companies can get done on your behalf. And, if your debt is that outstanding you can work through the process slowly, a few debts at a time. There is nothing wrong with the process taking a while, as long as you keep up with the process and intend to actually pay off your debts. Getting your credit where it should be does take time, but it's worth it. Your credit is your buying power, and each payment you make gets you closer to having more of it.
Worried that the companies you are dealing with won't work with a debt consolidation company? You'd be surprised. Yes, the companies will loose a little bit of money compared to if you showed up with cash to repay the debt tomorrow, but in the long run it's better for them to take a debt consolidation deal than not. Most companies figure they'd rather get a portion of your debt back and settle the deal than not get anything back at all. Getting seventy five percent of your debt back is more reasonable to them than to keep paying debt collectors to contact you and try to get the money back. All in all, any money is worth striking a deal over, and that is why a debt consolidation company can really get you where you need to be. They are professionals and they know how to get companies to agree to their terms.
Debt consolidation companies will usually work with you to get your debts paid off within a reasonable monthly payment. Each month you'll make just one payment, reducing the time and stress of paying the bill, and each month you'll be a step closer to financial freedom. Paying off your debts, through debt consolidation or otherwise will take a weight off your back that you may not even realize is there. No one wants to have unpaid debts, but sometimes life gets in the way and it happens. It happens to the best of us. But, don't be too proud to consolidate those debts and get back on the right track. Open up your local phone book, or get online and find a debt consolidation service in your area. Contact a debt consolidator not with shame, but with pride, because you are stepping up to do the right thing.
About the Author
Jeff Dragt has been helping all kinds of people become debt free. For a free consolidation quote visit. http://www.californiadebtconsolidation.net
Debt consolidation is taking all of your bills and fitting them into one monthly payment. Fitting all your bills into one payment also means one interest rate, which will limit the amount you pay out every month, saving you a lot of money in the long run. Debt consolidation also makes paying off multiple debts easier because the monthly payments can be lowered when you take away insane interest rates. The average debtor pays more interest every month than they do on the actual principal balance of their debt! Eliminating the sky-high interest rates is a good start to getting your debts paid, without going completely broke.
Many people assume when they can't pay the bills it's time to just throw up their hands and consider drastic actions such as foreclosure, repossession and bankruptcy. While there are some extreme cases where bankruptcy would be the best option, foreclosure is almost always avoidable as is repossession. Banks, car dealerships, mortgage companies, and creditors don't like to have to take back property or write off your debts, they would rather work with you on debt consolidation so that they can get back what they are owed and you can go on your way with your credit still in tact. Bankruptcy, repossession, and foreclosure are not easy outs when it comes to debts; in fact, they are choices that will continue to affect you for a long, long time. Consider debt consolidation before making any hasty decisions.
Debt consolidation on your own can be tricky, or downright impossible depending on your credit situation. Luckily, there are debt consolidation companies waiting to help people who are in over their head, just like you! Debt consolidation companies will take your credit report and any unreported debts that you can give them and work out a payment plan for you. These debt consolidation companies often contact each company and strike a deal to lower or get rid of the interest and even split the balance of the amount due. Obviously, lowering or getting rid of interest and part of each debt will limit what you spend each month, enabling you to actually pay the bill.
What's the catch with this type of debt consolidation? Well, there really isn't one. Yes, this is a business and the consolidator does make money because while he takes away the interest that each company is charging, he will charge you interest or a percentage of what you owe. Doesn't seem fair? It is! It works out better for you, because even though you are still paying interest it's just one interest payment for all the debts you currently hold. So, instead of paying twenty seven percent to ten companies you'll pay twenty percent to one company. So, you go from having multiple payments and interest rates to just one payment for all the bills and one interest rate. It works! If you follow the plan, and make your monthly payments debt consolidation will soon have your credit report looking much better than it does right now.
You may think that you have so much debt you cannot possibly afford to repay even on a debt consolidation plan. You'd be surprised what these companies can get done on your behalf. And, if your debt is that outstanding you can work through the process slowly, a few debts at a time. There is nothing wrong with the process taking a while, as long as you keep up with the process and intend to actually pay off your debts. Getting your credit where it should be does take time, but it's worth it. Your credit is your buying power, and each payment you make gets you closer to having more of it.
Worried that the companies you are dealing with won't work with a debt consolidation company? You'd be surprised. Yes, the companies will loose a little bit of money compared to if you showed up with cash to repay the debt tomorrow, but in the long run it's better for them to take a debt consolidation deal than not. Most companies figure they'd rather get a portion of your debt back and settle the deal than not get anything back at all. Getting seventy five percent of your debt back is more reasonable to them than to keep paying debt collectors to contact you and try to get the money back. All in all, any money is worth striking a deal over, and that is why a debt consolidation company can really get you where you need to be. They are professionals and they know how to get companies to agree to their terms.
Debt consolidation companies will usually work with you to get your debts paid off within a reasonable monthly payment. Each month you'll make just one payment, reducing the time and stress of paying the bill, and each month you'll be a step closer to financial freedom. Paying off your debts, through debt consolidation or otherwise will take a weight off your back that you may not even realize is there. No one wants to have unpaid debts, but sometimes life gets in the way and it happens. It happens to the best of us. But, don't be too proud to consolidate those debts and get back on the right track. Open up your local phone book, or get online and find a debt consolidation service in your area. Contact a debt consolidator not with shame, but with pride, because you are stepping up to do the right thing.
About the Author
Jeff Dragt has been helping all kinds of people become debt free. For a free consolidation quote visit. http://www.californiadebtconsolidation.net
Why You Should Pay Your Credit Card Debt Immediately
With everyone spending more than they save, it's no wonder that credit card debt is at an all time high. But just because everyone else is in trouble doesn't make it a non-issue. Credit card debt not only ruins your credit score, but it can also hurt your future and your sense of security as well.
The precious credit score
The newest number that everyone is talking about is their credit score. With a good credit score, you can get better credit card offers, better interest rates for houses and cars, and you can get bigger loans than others with lower credit scores. And the truth is that most people don't know what their credit score is.
When you carry high balances on your credit cards, these balances are reported back to the credit reporting agencies that in turn make adjustments to your credit score. If you have large balances, it looks like you're living beyond your means and thus you're not a good candidate for future loans and your score is lowered.
If you have low balances (less than 50% of the limit) and pay your bills on time, you will raise your credit score.
Making larger investments
If you dream of owning a home or a new car, you need to pay down that credit card debt. In order to get these kinds of large loans, banks need to know that you are responsible with money and will be able to pay off your loan as you promise. By having credit card debt, it seems as though you aren't able to live on what you can afford and thus will probably not be reliable with paying off your loan.
And if you do get the loan, the interest rate is much higher for the borrower that has credit card debt. In case you can't pay off the loan, the bank will want to make more money off you when you do make payments.
Your sense of security
No one needs the added stress of whether or not they can afford to pay the minimum balance on their credit card. And with a little planning a discipline, credit card debt can be managed and eliminated.
You can start with cutting up those credit cards and start using 'real' money to make way for the future that you deserve–houses, cars, and a good night's sleep.
About The Author
Beth Derkowitz recommends Find Credit Cards for finding a BankFIRST credit card that's tailored to suit your financial needs. See http://www.findcreditcards.org/issuer/bankfirst.php for more information.
bethderkowitz@gmail.com
The precious credit score
The newest number that everyone is talking about is their credit score. With a good credit score, you can get better credit card offers, better interest rates for houses and cars, and you can get bigger loans than others with lower credit scores. And the truth is that most people don't know what their credit score is.
When you carry high balances on your credit cards, these balances are reported back to the credit reporting agencies that in turn make adjustments to your credit score. If you have large balances, it looks like you're living beyond your means and thus you're not a good candidate for future loans and your score is lowered.
If you have low balances (less than 50% of the limit) and pay your bills on time, you will raise your credit score.
Making larger investments
If you dream of owning a home or a new car, you need to pay down that credit card debt. In order to get these kinds of large loans, banks need to know that you are responsible with money and will be able to pay off your loan as you promise. By having credit card debt, it seems as though you aren't able to live on what you can afford and thus will probably not be reliable with paying off your loan.
And if you do get the loan, the interest rate is much higher for the borrower that has credit card debt. In case you can't pay off the loan, the bank will want to make more money off you when you do make payments.
Your sense of security
No one needs the added stress of whether or not they can afford to pay the minimum balance on their credit card. And with a little planning a discipline, credit card debt can be managed and eliminated.
You can start with cutting up those credit cards and start using 'real' money to make way for the future that you deserve–houses, cars, and a good night's sleep.
About The Author
Beth Derkowitz recommends Find Credit Cards for finding a BankFIRST credit card that's tailored to suit your financial needs. See http://www.findcreditcards.org/issuer/bankfirst.php for more information.
bethderkowitz@gmail.com
Why You Should Take Advantage Of Student Loan Debt Consolidation
You went to college, and you have your degree. And now that you have a job, you are making your own money, which means you have your own bills to pay. College probably wasn't free, and it certainly wasn't cheap. You probably had to take out several student loans in order to pay for your tuition, books, even your living expenses. So now that you have graduated, you are faced with the prospect of paying back several loans at a time. This can be quite overwhelming. It can be difficult to keep track of several different monthly loan payments with different interest rates. That is why student loan debt consolidation is a good thing to consider.
When you consolidate your student loans, you are combining them into one loan. This has many benefits for you, including only 1 monthly payment rather than several to keep track of, and one low interest rate for the entire amount. Also, you can take longer to pay back the loan, which will help keep your monthly payments lower. In the long run, you will save money by choosing student loan debt consolidation, because you won't be paying several varying interest rates on several loans.
Another huge advantage of student loan debt consolidation is that it is beneficial to your credit rating. If you have several loan payments to keep track of and pay per month, the chances of you missing a payment are much higher than if you have just one loan payment to pay monthly. And missing student loan payments is nothing to mess around with. If you get behind on your loan payments, you run the risk of having property and possessions revoked, and your credit rating will be damaged for a very long time. Therefore, if you are someone who might not be able to keep track of several student loans at a time, you should consider student loan debt consolidation!
Going through the student loan debt consolidation process is not difficult, and takes very little time on your part. There are many reputable lenders (especially on the Internet) that will help you through the process, either online or over the phone. Once you choose a consolidation company to handle your loans, the process usually doesn't take any longer than 45 days (you should continue to pay your loan payments until the consolidation is final). How a student loan debt consolidation works is the consolidation company pays the balance on all of your existing student loans, and then lumps the entire balance of them into one loan. Then an interest rate is determined. Usually, this is based on an average of the interest rates for your previous student loans. The advantage, though, is that once an interest rate is locked in, the rate remains unchanged until the balance is paid off. With unconsolidated loans, the interest rate is subject to rise ever July.
Student loan debt consolidation seems like an ideal way to pay back your student loans in a manageable and responsible way. You only have to deal with one lender, you only have to deal with one low interest rate, and you only have to deal with one monthly payment. And, you will save money in the long run, because you are not paying the extra amounts in interest that you would be paying if you did not consolidate. In addition, your credit rating will remain at a good level, which you allow you to make major purchases at lower interest rates throughout your life.
About the Author:
Learn the essential information for picking the right student loan service at Student Loan Services
Source: www.isnare.com
When you consolidate your student loans, you are combining them into one loan. This has many benefits for you, including only 1 monthly payment rather than several to keep track of, and one low interest rate for the entire amount. Also, you can take longer to pay back the loan, which will help keep your monthly payments lower. In the long run, you will save money by choosing student loan debt consolidation, because you won't be paying several varying interest rates on several loans.
Another huge advantage of student loan debt consolidation is that it is beneficial to your credit rating. If you have several loan payments to keep track of and pay per month, the chances of you missing a payment are much higher than if you have just one loan payment to pay monthly. And missing student loan payments is nothing to mess around with. If you get behind on your loan payments, you run the risk of having property and possessions revoked, and your credit rating will be damaged for a very long time. Therefore, if you are someone who might not be able to keep track of several student loans at a time, you should consider student loan debt consolidation!
Going through the student loan debt consolidation process is not difficult, and takes very little time on your part. There are many reputable lenders (especially on the Internet) that will help you through the process, either online or over the phone. Once you choose a consolidation company to handle your loans, the process usually doesn't take any longer than 45 days (you should continue to pay your loan payments until the consolidation is final). How a student loan debt consolidation works is the consolidation company pays the balance on all of your existing student loans, and then lumps the entire balance of them into one loan. Then an interest rate is determined. Usually, this is based on an average of the interest rates for your previous student loans. The advantage, though, is that once an interest rate is locked in, the rate remains unchanged until the balance is paid off. With unconsolidated loans, the interest rate is subject to rise ever July.
Student loan debt consolidation seems like an ideal way to pay back your student loans in a manageable and responsible way. You only have to deal with one lender, you only have to deal with one low interest rate, and you only have to deal with one monthly payment. And, you will save money in the long run, because you are not paying the extra amounts in interest that you would be paying if you did not consolidate. In addition, your credit rating will remain at a good level, which you allow you to make major purchases at lower interest rates throughout your life.
About the Author:
Learn the essential information for picking the right student loan service at Student Loan Services
Source: www.isnare.com
Working Toward a Debt-Free Lifestyle
As debt becomes a greater factor in the day-to-day life of more people, many wish that they could arrange their lives so as to completely eliminate their personal debts. Though it may seem like little more than a pipe dream, it actually is possible to eliminate most if not all of your debt and live the debt-free life that you've longed for.
Below you'll find basic information on ways to reduce or eliminate most of your debt, repair your credit, and keep what debt you have remaining under control so that it no longer controls you. Becoming debt free might take time, even years... but in the end, it's worth it.
Becoming Debt Free
The first step toward becoming debt free is realizing that you're in debt, and that it's out of control. This might seem like common sense, but there are a lot of people who fail to realize that they have problems with debt until the problem has gotten too bad to be easily remedied.
Once you realize that your debt is starting to spiral out of control, you can begin to do something about it... and that begins with creating a budget.
Budgeting
Creating a budget is easy... staying with a budget is more difficult. Sometimes creating a budget to help you get out of debt means that you're going to have to give up some of the liberties that you've been taking with your expenses and will have to do without a few of the various perks that you've become accustomed to.
If you make sure that you include a "debt relief" fund in your budget you may find that after a while working with your budget is becoming easier... that's because the debt relief fund is going toward paying your outstanding bills a little at a time, and as they are getting paid off you're ending up with more money to work with after your monthly bills have been paid.
Building Savings After you've begun repaying your previous debts, you should begin thinking about the future. Open a savings account if you don't already have one, or if you do have one then use it. Continue to make payments toward your old debts, and put a little bit of money aside each month... it doesn't have to be much, because even a little bit will add up over time.
Try not to access your savings unless it's a major emergency, so that as you get rid of your old debts you're also building up a reserve to help take care of new ones.
Managing Credit Cards and Loans Eventually, you'll be able to pay off your previous debts... but what happens when new debts arise? When applying for credit cards or loans in the future, take care in making sure that the interest rates and monthly payments are within the realm of what you can reasonably pay without straining your finances.
Loans and credit cards can be good, and can help to rebuild your credit after past problems... just make sure that they don't become problems themselves.
Credit Repair
As you slowly pay off your previous debts and make sure that current credit lines don't fall behind, you may find that your credit score is slowly starting to improve.
Though it will take time, making on-time payments to current accounts and clearing past debts will fix your poor credit... as the older negative reports begin to expire, you'll even begin to have good credit. Just make sure that you take care of your credit, and don't let it get out of control again.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the author:
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans. co.uk website.
Below you'll find basic information on ways to reduce or eliminate most of your debt, repair your credit, and keep what debt you have remaining under control so that it no longer controls you. Becoming debt free might take time, even years... but in the end, it's worth it.
Becoming Debt Free
The first step toward becoming debt free is realizing that you're in debt, and that it's out of control. This might seem like common sense, but there are a lot of people who fail to realize that they have problems with debt until the problem has gotten too bad to be easily remedied.
Once you realize that your debt is starting to spiral out of control, you can begin to do something about it... and that begins with creating a budget.
Budgeting
Creating a budget is easy... staying with a budget is more difficult. Sometimes creating a budget to help you get out of debt means that you're going to have to give up some of the liberties that you've been taking with your expenses and will have to do without a few of the various perks that you've become accustomed to.
If you make sure that you include a "debt relief" fund in your budget you may find that after a while working with your budget is becoming easier... that's because the debt relief fund is going toward paying your outstanding bills a little at a time, and as they are getting paid off you're ending up with more money to work with after your monthly bills have been paid.
Building Savings After you've begun repaying your previous debts, you should begin thinking about the future. Open a savings account if you don't already have one, or if you do have one then use it. Continue to make payments toward your old debts, and put a little bit of money aside each month... it doesn't have to be much, because even a little bit will add up over time.
Try not to access your savings unless it's a major emergency, so that as you get rid of your old debts you're also building up a reserve to help take care of new ones.
Managing Credit Cards and Loans Eventually, you'll be able to pay off your previous debts... but what happens when new debts arise? When applying for credit cards or loans in the future, take care in making sure that the interest rates and monthly payments are within the realm of what you can reasonably pay without straining your finances.
Loans and credit cards can be good, and can help to rebuild your credit after past problems... just make sure that they don't become problems themselves.
Credit Repair
As you slowly pay off your previous debts and make sure that current credit lines don't fall behind, you may find that your credit score is slowly starting to improve.
Though it will take time, making on-time payments to current accounts and clearing past debts will fix your poor credit... as the older negative reports begin to expire, you'll even begin to have good credit. Just make sure that you take care of your credit, and don't let it get out of control again.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the author:
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans. co.uk website.
Worried About Debts?
Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?
You're not alone. Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. Your financial situation doesn't have to go from bad to worse.
If you or someone you know is in financial hot water consider the options below. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future.
Developing a Budget: The first step toward taking control of your financial situation, is to do a realistic assessment of how much money you earn and how much money you spend. Start by listing your income from all sources. Then, list your "fixed" expenses – those that are the same each month – like mortgage payments or rent, car payments, and insurance premiums. Next, list the expenses that vary – like entertainment, recreation, and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education. Your public library and bookstores have information about budgeting and money management techniques. In addition, computer software programs can be useful tools for developing and maintaining a budget, balancing your cheque book, and creating plans to save money and pay down your debt.
Contacting Your Creditors: Contact your creditors immediately if you're having trouble making ends meet. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you.
Managing Your Auto and Home Loans: Your debts can be unsecured or secured. Secured debts usually are tied to an asset, like your car for a car loan, or your house for a mortgage. If you stop making payments, lenders can repossess your car or foreclose on your house. Unsecured debts are not tied to any asset, and include most credit card debt, bills for medical care, signature loans, and debts for other types of services.
Debt Consolidation: If your objective is to reduce interest rates and lower your monthly payments, avoid bankruptcy, consolidate your bills and have one monthly payment, or simply get out of debt the fastest way possible, then a debt consolidation loan could provide the answer.
Are you paying out too much every month for your credit cards, store cards and loans? Then why not replace them all with one, lower, convenient repayment through a consolidation loan?
Consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.
Secured on your UK home, low cost, low rate, cheap, low interest debt consolidation loans can sweep away the pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment – one calculated to be well within your means.
With a Debt Consolidation Loan you can borrow from �5,000 to �75,000 and up to 125% of your property value in some cases.
A UK Debt Consolidation Loan is a low cost loan secured on your UK home. It frees up the spare capital (or equity) in your home to repay your store card and other debts.
It can reduce BOTH your interest costs AND your monthly repayments, putting you back in control of your life.
Debt Consolidation Loan rates are variable, depending on status
Your monthly repayments will depend on the amount borrowed and term.
You may freely reprint this information on your website provided the following caption remains intact.
�This information courtesy of http://www.directonlineloans.co.uk Click here to see full range of loans.�
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available online secured loan via the http://www.directonlineloans.co.uk website. To find a loan that best suits your needs visit http://www.directonlineloans.co.uk
You're not alone. Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. Your financial situation doesn't have to go from bad to worse.
If you or someone you know is in financial hot water consider the options below. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future.
Developing a Budget: The first step toward taking control of your financial situation, is to do a realistic assessment of how much money you earn and how much money you spend. Start by listing your income from all sources. Then, list your "fixed" expenses – those that are the same each month – like mortgage payments or rent, car payments, and insurance premiums. Next, list the expenses that vary – like entertainment, recreation, and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education. Your public library and bookstores have information about budgeting and money management techniques. In addition, computer software programs can be useful tools for developing and maintaining a budget, balancing your cheque book, and creating plans to save money and pay down your debt.
Contacting Your Creditors: Contact your creditors immediately if you're having trouble making ends meet. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you.
Managing Your Auto and Home Loans: Your debts can be unsecured or secured. Secured debts usually are tied to an asset, like your car for a car loan, or your house for a mortgage. If you stop making payments, lenders can repossess your car or foreclose on your house. Unsecured debts are not tied to any asset, and include most credit card debt, bills for medical care, signature loans, and debts for other types of services.
Debt Consolidation: If your objective is to reduce interest rates and lower your monthly payments, avoid bankruptcy, consolidate your bills and have one monthly payment, or simply get out of debt the fastest way possible, then a debt consolidation loan could provide the answer.
Are you paying out too much every month for your credit cards, store cards and loans? Then why not replace them all with one, lower, convenient repayment through a consolidation loan?
Consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.
Secured on your UK home, low cost, low rate, cheap, low interest debt consolidation loans can sweep away the pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment – one calculated to be well within your means.
With a Debt Consolidation Loan you can borrow from �5,000 to �75,000 and up to 125% of your property value in some cases.
A UK Debt Consolidation Loan is a low cost loan secured on your UK home. It frees up the spare capital (or equity) in your home to repay your store card and other debts.
It can reduce BOTH your interest costs AND your monthly repayments, putting you back in control of your life.
Debt Consolidation Loan rates are variable, depending on status
Your monthly repayments will depend on the amount borrowed and term.
You may freely reprint this information on your website provided the following caption remains intact.
�This information courtesy of http://www.directonlineloans.co.uk Click here to see full range of loans.�
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available online secured loan via the http://www.directonlineloans.co.uk website. To find a loan that best suits your needs visit http://www.directonlineloans.co.uk
You And Your Debt Against The World.
Anyone who embarks on a debt reduction program should know the rules for success. There are
two. You need to stop adding to your debt. You need to find extra money to pay it off quickly.
You need to know the playing field is not level. The sellers of goods and services have gobs of
information at their fingertips. They know where you live. They have a close approximation of
your income. They are aware of your interests. They also know your buying habits.
The information to which they have access is endless. They know the age of your car through its
registration. The appliances you have because of the warranty cards returned. Where you shop
because of the credit and store cards you have used. How old your mortgage is and what you owe
from public recording of the deeds.
Because they have this information, you end up on a number of lists. The sorting and use of these
lists are an art and science. It is the source of the mail you receive, the offers you are made, and
the advertising to which you are exposed.
This makes for very effective advertising. They can target your �known� wants and desires. Huge
amounts of money are spent to convince you to buy this or that product. You have heard how
expensive Super Bowl ads are each year. They pay this type of money because it works.
Then to top it all off they make it so easy to buy. If you don't have the cash, they provide you
with credit, easy-pay plans, personal loans; anything to make the purchase possible. Many
companies make as much from their financing divisions as they do from selling you their products.
So what do you do? How do you fight this financial onslaught and win? It requires effort and
advance planning. You need to wring all the value you can from your money. Become adept at
making each dollar do the work of two.
You need to budget for purchases. Even if that means that you think about it for just a few
minutes before you plunk down your hard earn money. Justify your purchases; do you need it,
does it make sense, can you do without? These are questions you need to ask yourself. They may
fly in the face of the materialism which surrounds us all, but they need to be answered
nonetheless.
You may find using a purchase-checklist helpful. Anytime a purchase exceeds what you have in
your pocket tick down this list and see if it really makes sense to buy it.
How much is it?
Is this a sale price?
If so what am I saving over regular price?
What will happen if I don't buy it now?
Can I pay cash?
Where will the money come from?
If not cash, what will be the credit cost?
Is it worth it at the price with the credit cost added in?
Does the purchase fill a need or a want? (think hard)
Why do I need this item?
Why do I want this item?
Can I justify this purchase to another person?
What would I say?
Would I accept these reasons from someone else?
This should help in slowing you down. Couple this with not taking your credit cards with you
when you shop. It does take work, but a little extra work is better than being a slave to your debt.
Now with the money you save go to work on your debt reduction plans. Work that side of the
equation as hard as you do the spending side. Place as much as you can on your bills. Reduce and
eliminate them.
(c)2005 David Wilding
About the Author
David Wilding Has for the past ten years worked with groups and individuals to rid their lives of debt. Visit his website http://www.debtattack.com/debt-reduction-plan.html for ideas, tools and strategies for reducing and eliminating your debt.
two. You need to stop adding to your debt. You need to find extra money to pay it off quickly.
You need to know the playing field is not level. The sellers of goods and services have gobs of
information at their fingertips. They know where you live. They have a close approximation of
your income. They are aware of your interests. They also know your buying habits.
The information to which they have access is endless. They know the age of your car through its
registration. The appliances you have because of the warranty cards returned. Where you shop
because of the credit and store cards you have used. How old your mortgage is and what you owe
from public recording of the deeds.
Because they have this information, you end up on a number of lists. The sorting and use of these
lists are an art and science. It is the source of the mail you receive, the offers you are made, and
the advertising to which you are exposed.
This makes for very effective advertising. They can target your �known� wants and desires. Huge
amounts of money are spent to convince you to buy this or that product. You have heard how
expensive Super Bowl ads are each year. They pay this type of money because it works.
Then to top it all off they make it so easy to buy. If you don't have the cash, they provide you
with credit, easy-pay plans, personal loans; anything to make the purchase possible. Many
companies make as much from their financing divisions as they do from selling you their products.
So what do you do? How do you fight this financial onslaught and win? It requires effort and
advance planning. You need to wring all the value you can from your money. Become adept at
making each dollar do the work of two.
You need to budget for purchases. Even if that means that you think about it for just a few
minutes before you plunk down your hard earn money. Justify your purchases; do you need it,
does it make sense, can you do without? These are questions you need to ask yourself. They may
fly in the face of the materialism which surrounds us all, but they need to be answered
nonetheless.
You may find using a purchase-checklist helpful. Anytime a purchase exceeds what you have in
your pocket tick down this list and see if it really makes sense to buy it.
How much is it?
Is this a sale price?
If so what am I saving over regular price?
What will happen if I don't buy it now?
Can I pay cash?
Where will the money come from?
If not cash, what will be the credit cost?
Is it worth it at the price with the credit cost added in?
Does the purchase fill a need or a want? (think hard)
Why do I need this item?
Why do I want this item?
Can I justify this purchase to another person?
What would I say?
Would I accept these reasons from someone else?
This should help in slowing you down. Couple this with not taking your credit cards with you
when you shop. It does take work, but a little extra work is better than being a slave to your debt.
Now with the money you save go to work on your debt reduction plans. Work that side of the
equation as hard as you do the spending side. Place as much as you can on your bills. Reduce and
eliminate them.
(c)2005 David Wilding
About the Author
David Wilding Has for the past ten years worked with groups and individuals to rid their lives of debt. Visit his website http://www.debtattack.com/debt-reduction-plan.html for ideas, tools and strategies for reducing and eliminating your debt.
You can eliminate debt, but it's hard work and it takes time
If you watch any television at all, you have probably seen ads for companies that promise that they can get you out of debt quickly - perhaps in as little as one year. It sounds great - they've got a staff of professionals with years of experience who can assist you with your debt problems. They'll tell you how they can get your creditors to accept much less than you actually owe - perhaps as little as half of your outstanding debt. And they will do it all for a small fee.
Wow! Sounds great, doesn't it? Just pay a small monthly fee and your debts will be cut in half! It does sound great, until you take the time to ask yourself "Why would my creditors be willing to accept only half of what I owe them?"
That's a really good question, isn't it?
Here is how these debt elimination companies work. You meet with them and agree to pay some fees up front. There may be a one time application fee and there will probably be ongoing monthly fees, as well. They will then instruct you to send a monthly amount to them to cover your bills. They may or may not deduct your monthly fee to them from this amount. You may assume that they will then negotiate your debt with your creditors and pay them from the money you send them. Well, it doesn't really work that way. In all likelihood, they will just sit on the money, and probably for quite a while. If you have been paying your bills regularly, even if you have only been paying the minimum amounts, your creditors are happy. They make tons of money off of people who pay only the minimum amounts. And as long as you are doing that, they have no reason to negotiate with you. So your debt elimination service is going to tell you to send money to them and to ignore any communication from your creditors. After your bills have gone unpaid for a few months, they will then negotiate with your creditors in order to get them to lower your balances.
There's just one problem with this - if you haven't been paying your bills, it's going to wreck your credit report. There's no such thing as a free lunch, and if you don't pay your bills for any reason, you are going to be reported as a nonpayer to the credit bureaus. You may be able to have your debt lowered, but you'll find it nearly impossible to get credit again anytime soon. And worse, any money owed that is waived by your creditors will be treated by the Internal Revenue Service as taxable income, so you'll have to pay taxes on the amount of the bills that you didn't pay.
And you'll still be paying monthly fees to that company you hired to "help" you. There are better ways to get out of debt than by hiring companies that advertise on late night television.
About the author:
Talbert Williams offers debt consolidation referrals and advice on debt settlement, debt relief and debt consolidation. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com
Wow! Sounds great, doesn't it? Just pay a small monthly fee and your debts will be cut in half! It does sound great, until you take the time to ask yourself "Why would my creditors be willing to accept only half of what I owe them?"
That's a really good question, isn't it?
Here is how these debt elimination companies work. You meet with them and agree to pay some fees up front. There may be a one time application fee and there will probably be ongoing monthly fees, as well. They will then instruct you to send a monthly amount to them to cover your bills. They may or may not deduct your monthly fee to them from this amount. You may assume that they will then negotiate your debt with your creditors and pay them from the money you send them. Well, it doesn't really work that way. In all likelihood, they will just sit on the money, and probably for quite a while. If you have been paying your bills regularly, even if you have only been paying the minimum amounts, your creditors are happy. They make tons of money off of people who pay only the minimum amounts. And as long as you are doing that, they have no reason to negotiate with you. So your debt elimination service is going to tell you to send money to them and to ignore any communication from your creditors. After your bills have gone unpaid for a few months, they will then negotiate with your creditors in order to get them to lower your balances.
There's just one problem with this - if you haven't been paying your bills, it's going to wreck your credit report. There's no such thing as a free lunch, and if you don't pay your bills for any reason, you are going to be reported as a nonpayer to the credit bureaus. You may be able to have your debt lowered, but you'll find it nearly impossible to get credit again anytime soon. And worse, any money owed that is waived by your creditors will be treated by the Internal Revenue Service as taxable income, so you'll have to pay taxes on the amount of the bills that you didn't pay.
And you'll still be paying monthly fees to that company you hired to "help" you. There are better ways to get out of debt than by hiring companies that advertise on late night television.
About the author:
Talbert Williams offers debt consolidation referrals and advice on debt settlement, debt relief and debt consolidation. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com
You Don't Have To Declare Bankruptcy To Deal With Your Debts
Considering filing bankruptcy? If your finances are in ruins and you're considering filing bankruptcy, there's a few things you should know.
Bankruptcy is not your only option. Millions of people credit is devastated by bankruptcy every year. Though filing a Chapter 7 Bankruptcy will clear you of any obligation to creditors, it is devastating to your credit and will ride your credit report for ten years.
There are several alternatives to bankruptcy depending on your current situation. You may consider:
Debt Consolidation- Debt Consolidation is an easy and timely alternative. A Debt Consolidation Counselor will evaluate your current situation and past debt and develop a budget for you.
They will negotiate payment options with your creditors and simply provide you with the alternative to make one easy monthly payment to them and they will disburse the payment among your creditors. The benefits include:
* Usually, a lower monthly payment
* Lower percentage rates
* Debt payoff in a timelier manner
* Less contact from creditors or no contact from creditors
* You will be able to keep your credit at satisfactory standards versus the harsh impact a bankruptcy would have on it
* You're able to obtain new credit
* And with the money you save with the advantage of a lower monthly payment plan you can contribute to a Savings Account or Retirement Account
The above benefits are just a few of the benefits of Debt Consolidation versus Bankruptcy.
Another alternative is a Personal Loan or Debt
Consolidation Loan. This is one large loan to pay off smaller loans or debts. With one large loan, you will normally have a lower percentage rate and a longer pay off period. The benefits include:
* The ability to pay off debts in full
* No more harassing phone calls from creditors
* Your credit will be saved from derogatory accounts and collections * Low percentage rate
However, in order to obtain a Personal Loan or Debt Consolidation Loan you will need satisfactory credit. Though there are alternative to filing bankruptcy; in some cases, bankruptcy is the only option.
Before deciding whether to file bankruptcy or consolidate, consult a financial advisor. He or she should be able to give you advice after evaluating your situation and current credit standings.
=================================================
Discover the debt consolidation alternatives to
Bankruptcy. Find out useful advice and information. Click ==> http://www.debtconsolidation-easy.com/
About the Author
** Attn Ezine editors / Site Owners **
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include my resource box as listed above.
Bankruptcy is not your only option. Millions of people credit is devastated by bankruptcy every year. Though filing a Chapter 7 Bankruptcy will clear you of any obligation to creditors, it is devastating to your credit and will ride your credit report for ten years.
There are several alternatives to bankruptcy depending on your current situation. You may consider:
Debt Consolidation- Debt Consolidation is an easy and timely alternative. A Debt Consolidation Counselor will evaluate your current situation and past debt and develop a budget for you.
They will negotiate payment options with your creditors and simply provide you with the alternative to make one easy monthly payment to them and they will disburse the payment among your creditors. The benefits include:
* Usually, a lower monthly payment
* Lower percentage rates
* Debt payoff in a timelier manner
* Less contact from creditors or no contact from creditors
* You will be able to keep your credit at satisfactory standards versus the harsh impact a bankruptcy would have on it
* You're able to obtain new credit
* And with the money you save with the advantage of a lower monthly payment plan you can contribute to a Savings Account or Retirement Account
The above benefits are just a few of the benefits of Debt Consolidation versus Bankruptcy.
Another alternative is a Personal Loan or Debt
Consolidation Loan. This is one large loan to pay off smaller loans or debts. With one large loan, you will normally have a lower percentage rate and a longer pay off period. The benefits include:
* The ability to pay off debts in full
* No more harassing phone calls from creditors
* Your credit will be saved from derogatory accounts and collections * Low percentage rate
However, in order to obtain a Personal Loan or Debt Consolidation Loan you will need satisfactory credit. Though there are alternative to filing bankruptcy; in some cases, bankruptcy is the only option.
Before deciding whether to file bankruptcy or consolidate, consult a financial advisor. He or she should be able to give you advice after evaluating your situation and current credit standings.
=================================================
Discover the debt consolidation alternatives to
Bankruptcy. Find out useful advice and information. Click ==> http://www.debtconsolidation-easy.com/
About the Author
** Attn Ezine editors / Site Owners **
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include my resource box as listed above.
Saturday, October 20, 2007
Young People & Debt
Most young people who are just starting out are facing an uphill battle against debt. Credit cards, student loans and car payments are just a few of the items that young people are facing nowadays.
Credit cards are the number one cause of debt for people age 18-30. It starts in college with card number one, which then progresses into five or six credit cards to buy new clothes and beer. The average college student graduates with an average of $4500 in credit card debt. This situation is multiplied by higher interest rates on those college cards.
Credit card companies, the smart people that they are, lesson the restrictions on college students getting credit cards in exchange for charging a higher interest rate on those cards. One of the first things young people can do is try to find lower interest credit cards. Sites, such as http://creditbus.com, allow users to search for and apply for low interest credit cards. By obtaining a lower rate, card holders can get more principle paid off sooner.
One other young debtors can find relief is to set budgets. Card holders need to find out how much they can afford to put towards their credit card debt, and then such sites as CNN's debt reduction planner (http:// cgi.money.cnn.com/tools/ ) can help them distribute the money to the cards in such a way as to reduce the debt as fast as possible.
About the Author
Matthew Crist runs a debt reduction blog. You can find more at http://creditbang.com.
Credit cards are the number one cause of debt for people age 18-30. It starts in college with card number one, which then progresses into five or six credit cards to buy new clothes and beer. The average college student graduates with an average of $4500 in credit card debt. This situation is multiplied by higher interest rates on those college cards.
Credit card companies, the smart people that they are, lesson the restrictions on college students getting credit cards in exchange for charging a higher interest rate on those cards. One of the first things young people can do is try to find lower interest credit cards. Sites, such as http://creditbus.com, allow users to search for and apply for low interest credit cards. By obtaining a lower rate, card holders can get more principle paid off sooner.
One other young debtors can find relief is to set budgets. Card holders need to find out how much they can afford to put towards their credit card debt, and then such sites as CNN's debt reduction planner (http:// cgi.money.cnn.com/tools/ ) can help them distribute the money to the cards in such a way as to reduce the debt as fast as possible.
About the Author
Matthew Crist runs a debt reduction blog. You can find more at http://creditbang.com.
Your Debt Checklist
A Debt Checklist is the only sensible way to organize and control your finances. Most people aren't actually aware quite how much debt they possess - in fact, a recent survey found that almost 75% of UK adults were up to �5000 out when asked to estimate their non-mortgage debt. They weren't much better when asked to produce a cashflow statement showing how their hard earned cash was being spent each month!
A Debt Checklist is a plan you can use to get a grip on your finances, and will allow you to understand in black and white, where savings can be made, and how debt can be tackled most effectively.
Obviously, you will have a savings account. If you DON'T, go open one now. Choose a large, reputable bank or loan company so you won't have any problems getting access to your funds when you need them.
Secondly, you need to cut back on your credit card spending. Credit card companies do everything they can to encourage you to spend, and even more to try and cajole you into only paying off the minimum each month, making credit cards the MOST expensive way to borrow money you are ever likely to come across. If you find yourself paying for 'small' items with a credit card, you are asking for trouble. Not only will you be that annoying person in the front of the grocery queue at Walmart paying by card, but you will also rapidly lose ANY idea of what you have spent, and where. Debit cards are SLIGHTLY better than credit cards for these small purchases, but not much - you will still face a terrible temptation to spend more (up to 50% more than paying by cash, if recent surveys are to be believed!)
You MUST pay more than the minimum payment each month - if you don't your debts will be around for a LONG time! It can take over 20 years to pay off a measly $1,000 credit card bill if you simply pay the 2% minimum each month. At the end of this, the interest payments you have made will FAR exceed the original debt! And that, of course, is how credit card companies afford those swanky downtown offices.
If you have dependents, you need insurance. It may seem like an extra cost right now, but believe me, it is 'Murphy's Law' - if you don't have it, you will need it imminently! Auto insurance, Mortgage Payment Protection, house insurance and life insurance are a basic set you need. This point is related to pensions, too. Start as early as you can. If you don't have a pension plan now, start it immediately. The tax advantages just can't be missed. And the earlier you start, the sooner compounding has a chance to work it's magic. And compounding is the secret that will determine if you have a comfortable retirement, or live in a shack, eating beans. And don't try and kid yourself you won't make it to old age - bet you will, and bet you will be surprised how expensive everything is in 30 years!
Read up on money, and money topics. If you understand how cash works, the chances of getting into serious debt decrease dramatically. I'm not saying you have to read the Wall St Times, but an understaning of interest rates and compounding won't hurt.
That's about it for now - Get saving!
About the Author
Dave is a freelancer who contributes to www.NoDebtEver.com the free get out of debt fast site.
A Debt Checklist is a plan you can use to get a grip on your finances, and will allow you to understand in black and white, where savings can be made, and how debt can be tackled most effectively.
Obviously, you will have a savings account. If you DON'T, go open one now. Choose a large, reputable bank or loan company so you won't have any problems getting access to your funds when you need them.
Secondly, you need to cut back on your credit card spending. Credit card companies do everything they can to encourage you to spend, and even more to try and cajole you into only paying off the minimum each month, making credit cards the MOST expensive way to borrow money you are ever likely to come across. If you find yourself paying for 'small' items with a credit card, you are asking for trouble. Not only will you be that annoying person in the front of the grocery queue at Walmart paying by card, but you will also rapidly lose ANY idea of what you have spent, and where. Debit cards are SLIGHTLY better than credit cards for these small purchases, but not much - you will still face a terrible temptation to spend more (up to 50% more than paying by cash, if recent surveys are to be believed!)
You MUST pay more than the minimum payment each month - if you don't your debts will be around for a LONG time! It can take over 20 years to pay off a measly $1,000 credit card bill if you simply pay the 2% minimum each month. At the end of this, the interest payments you have made will FAR exceed the original debt! And that, of course, is how credit card companies afford those swanky downtown offices.
If you have dependents, you need insurance. It may seem like an extra cost right now, but believe me, it is 'Murphy's Law' - if you don't have it, you will need it imminently! Auto insurance, Mortgage Payment Protection, house insurance and life insurance are a basic set you need. This point is related to pensions, too. Start as early as you can. If you don't have a pension plan now, start it immediately. The tax advantages just can't be missed. And the earlier you start, the sooner compounding has a chance to work it's magic. And compounding is the secret that will determine if you have a comfortable retirement, or live in a shack, eating beans. And don't try and kid yourself you won't make it to old age - bet you will, and bet you will be surprised how expensive everything is in 30 years!
Read up on money, and money topics. If you understand how cash works, the chances of getting into serious debt decrease dramatically. I'm not saying you have to read the Wall St Times, but an understaning of interest rates and compounding won't hurt.
That's about it for now - Get saving!
About the Author
Dave is a freelancer who contributes to www.NoDebtEver.com the free get out of debt fast site.
Your Debt To Income Ratio
To stay out of debt, you must spend less money than you earn. Implementing this financial plan is often more difficult than it would seem. Your debt to income ratio is an important part of your overall credit history. If you spend more money than you earn, your debt to income ratio will be high, making it hard to finance a home or make major purchases. There are two basic factors are used in calculating your debt to income ratio - your net worth and your total debt. There are standard guidelines used in the credit industry to determine if your debt to income ratio is too high. The standard may be a bit low due to the fact that many have an acceptable debt to income ratio but still struggle to pay monthly expenses.
Your total net worth includes your monthly net pay, overtime and bonuses, and any other annual income. Your total debt includes your mortgage, other loan payments or revolving accounts, car payment, credit cards, and any child support you pay. If you divide you total monthly debt payments by your monthly income, you have your debt to income ratio. In the eyes of a creditor, if your debt to income ratio is lower than 36% you are in good financial shape. However, your personal situation, your unique expenses, and your number of dependants will determine how much debt you can reasonably pay each month. If your debt to income ratio is less than 30 percent, you are in excellent financial condition; 30-36% - you will have no trouble with lenders, but should work to bring this number down to 30 or less; 36-40% - you will most likely be able to get a loan, but you may have trouble meeting your monthly obligations; 40 percent or higher - you will need to evaluate your finances and work towards eliminating debts.
Your credit card debt plays a major role in determining your debt to income ratio. The amount you owe on your credit cards has a direct bearing on your credit score. If your debt exceeds your income, your credit score will drop. Many factors go into determining your credit score, all of which are indicators of your overall financial health. Lowering credit card debt is one of the best ways to improve your credit score and your debt to income ratio. The average American has over $8000 in credit card debt. If you are paying the minimum payments each month, this still takes a big bite out of your income. Even if your credit history is excellent, with very few or no late payments, if you have too much debt, you could be denied a loan.
Take control of your credit score by lowering your credit card debt or eliminating it all together. Your credit score will rise and you will lower your debt to income ratio. If you plan to apply for a loan, purchase a new home, or want to buy a new car, you must make sure your level of debt does not exceed more than 36% of your income. In addition, if you have several credit cards with very low or zero balances, you would benefit by closing those accounts and transferring any outstanding balances to a credit card with a low interest rate. Some lenders will calculate your debt to income ratio based on the amount of credit that is available to you. If you have several dependants, you may want to lower your debt to income ratio to around 20% to ensure that you can pay your monthly debt comfortably.
About the Author
This article has been provided courtesy of Creditor Web. Creditor Web offers great credit card articles (http://www.creditorweb.com/creditcards/articles/) available for reprint and other tools to help you search and compare credit card offers (http://www.creditorweb.com/).
Your total net worth includes your monthly net pay, overtime and bonuses, and any other annual income. Your total debt includes your mortgage, other loan payments or revolving accounts, car payment, credit cards, and any child support you pay. If you divide you total monthly debt payments by your monthly income, you have your debt to income ratio. In the eyes of a creditor, if your debt to income ratio is lower than 36% you are in good financial shape. However, your personal situation, your unique expenses, and your number of dependants will determine how much debt you can reasonably pay each month. If your debt to income ratio is less than 30 percent, you are in excellent financial condition; 30-36% - you will have no trouble with lenders, but should work to bring this number down to 30 or less; 36-40% - you will most likely be able to get a loan, but you may have trouble meeting your monthly obligations; 40 percent or higher - you will need to evaluate your finances and work towards eliminating debts.
Your credit card debt plays a major role in determining your debt to income ratio. The amount you owe on your credit cards has a direct bearing on your credit score. If your debt exceeds your income, your credit score will drop. Many factors go into determining your credit score, all of which are indicators of your overall financial health. Lowering credit card debt is one of the best ways to improve your credit score and your debt to income ratio. The average American has over $8000 in credit card debt. If you are paying the minimum payments each month, this still takes a big bite out of your income. Even if your credit history is excellent, with very few or no late payments, if you have too much debt, you could be denied a loan.
Take control of your credit score by lowering your credit card debt or eliminating it all together. Your credit score will rise and you will lower your debt to income ratio. If you plan to apply for a loan, purchase a new home, or want to buy a new car, you must make sure your level of debt does not exceed more than 36% of your income. In addition, if you have several credit cards with very low or zero balances, you would benefit by closing those accounts and transferring any outstanding balances to a credit card with a low interest rate. Some lenders will calculate your debt to income ratio based on the amount of credit that is available to you. If you have several dependants, you may want to lower your debt to income ratio to around 20% to ensure that you can pay your monthly debt comfortably.
About the Author
This article has been provided courtesy of Creditor Web. Creditor Web offers great credit card articles (http://www.creditorweb.com/creditcards/articles/) available for reprint and other tools to help you search and compare credit card offers (http://www.creditorweb.com/).
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