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Month: May 2019

Avoid These 3 Pitfalls Of Debt Relief

If you have found yourself buried under the burden of credit card debt,you can rest assured that you are not alone. The average American household is carrying $8,000.00 balance on their credit cards. This fact and our current economy is driving more and more people into bankruptcy. You may be finding it harder and harder to make your credit card payments on time.

Credit card companies continue to aggressively market their lines of credit because they make a lot of their profit on the interest and other fees associated with keeping people in debt such as late fees and overdraft fees. Many people get drawn into the introductory offers of low interest rates and later realize that the rates have gone up considerably once the initial time period has gone by. So you are behind on your payments,or straggling make them on time,what do you do now?

Many people today who have found themselves in this position are now seeking some sort of debt relief. As you approach the many options available to you there are a number of pitfalls to avoid.

1) Avoid Bankruptcy. Bankruptcy can destroy your credit for as many as seven to ten years. This can make it almost impossible to get a mortgage or a car loan. This should always be considered a last resort after all other options have been exhausted.

2) Avoid paying up-front charges. As you are seeking either debt consolidation or any of the many alternative methods of debt reduction,be aware that many companies charge up-front for their services. You have options here. The company needs to demonstrate that they can reduce either your interest rate or your monthly payment before they can get paid.

3) Avoid accumulating more debt. This may sound obvious but what I am suggesting here is that you step back and take a serious look at how you got into the situation that you are in and make changes in your spending habits. Set up a budget and commit to following it.

If you have found that you are unable manage your own debts then you can hire the services of a credit counseling agency. The counselor can help you work out a payment plan with your creditors. The counselors with their experience and skill can help you build a budget that you can live with and that helps you make your monthly payment obligations on time. They review the financial situation with you,before offering a debt relief option. They are the experts and they negotiate with creditors on your behalf to lower the outstanding balance to pay off.

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The Ways To Get Your Debt Under Control

If you’re in big trouble with debt,it can feel as if you were trying to climb Mt. Everest while carrying a 75-lb. backpack and with no end in sight. You try your best but your credit card statements just keep piling up and those debt collectors just keep calling and harassing you.

If you’re typical

If you’re typical,you want to do the right thing. You want to pay off those debts but you just can’t see how this would be possible. You may even be experiencing some physical symptoms as the result of the stress you’re feeling. So how could you achieve debt relief?

Debt consolidation

One way to get your debt under control is through debt consolidation. The two most common ways to do this are through a loan or a debt management plan.

A debt consolidation loan

Depending on your circumstances,you might be able to get a loan large enough to pay off all of your debts. Of course,the more you owe,the harder it may be for you to get a loan. If you have an asset such as a house that you could pledge as collateral,you may be able to get a second mortgage or home owner’s equity line of credit big enough to pay off all your debts. You would have a lower monthly payment than the total of the monthly payments you’re making now but it would probably take you five years or longer to pay off that loan.

What’s a debt management plan?

A debt management plan is where you sit down,evaluate all of your assets and debts,and then put together a plan for repaying what you owe. Of course,once you determine how you’ll repay your debts,you will need to contact all of your creditors and talk them into accepting your plan. As an alternative to doing this yourself,you could go to a local credit-counseling agency for help. A credit counselor would then review your finances,help you develop a payment plan and negotiate with your creditors to have them accept it. You would then send the counseling agency a check each month and it would then pay your creditors. While this can provide some immediate debt relief,you will have to surrender all of your credit cards and make sure you make those monthly payments regularly and on time.

Debt settlement

A third way to get debt relief is through a strategy called debt settlement. You contact your creditors and offer to settle your debts on the spot – for much less than you actually owe. You will need to stop making payments for probably six months before you contact your creditors and you must be prepared to negotiate hard. You will also need to have the money in hand to make the actual settlement. In other words,if you were to settle a debt for $2,500,you would need to have that $2,500 ready to either wire to your creditor or to send to it in the form of a cashiers check.

File for bankruptcy

The ultimate way to get debt relief – in just three to six months – is to file for a chapter 7 bankruptcy. This would clear most of your unsecured debts,such as your credit card debts,but would leave a mark on your credit report that could haunt you for up to 10 years.

Only you can decide

Which of these options would be best for you to achieve debt relief? That’s a decision only you can make. It’s important to weigh the pros and cons of each of these alternatives to ensure that whichever you select will help you get debt relief the quickest and easiest.

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Exactly how do I know if I am “on course”

By John Sage Melbourne

You will need to be able to evaluate if you get on track with your economic goals or conversely,stopping working to accomplish the goals you have set for myself.

Consequently you will need to ask on your own,what are the results that I expect along by doing this as well as am I achieving these? Otherwise,why not? Then follow up with a strategy to correct the problems. Currently below’s the catch! Ask on your own these concerns before they are called for,before the problems or obstacles turn up. The suggestion of this procedure is to expect obstacles as well as problems beforehand. To wait up until you have know that you are stopping working to accomplish your goals is often too late as it suggests that you are often reacting to scenarios reactively as well as after the problems have occurred. This is definitely not like a aggressive anticipatory strategy of managing problems before they come to be a issue.

You will require the nerve to move forward

Building wide range takes nerve. Building wide range calls for “psychological nerve” to break out of our old “self photo” as well as the stereotypes that we have cast for ourselves.

Building wide range calls for psychological maturity to preserve as well as build upon your existing wide range or financial investment profile.

John Paul Getty was at once the richest man on the planet. He also created a book entitled “Just how to be Rich”. At the end of the very initial page of his book Getty mentions “splendor” is at least as a lot a matter of personality,of viewpoint,overview as well as attitude,as it is of cash”.

His point when he created the word “Just how” in the title had to do with an psychological as well as intellectual “state of being” as much as any kind of “exactly how to” guidebook for being an oil mogul.His point is that wide range is a feature of that you are or that you have become as well as the buildup of wide range is a direct repercussion of the kind of personality you create of on your own over an extensive period of time.

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Understand that there will be obstacles

No rewarding or interesting trip lacks obstacles as well as this definitely puts on the objective of wide range structure. As you develop wide range you will find out that obstacles exist to make you a more powerful as well as more qualified person as well as investor. When you initially set your economic goals they are likely to have gone to a level that was a stretch but were achievable. They were not gaols that were difficult to accomplish. When you have succeeded there is always another collection of gaols waiting. You now recognize what is possible. It is time to extend once more,developing real as well as sustainable wide range for the long term.

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