To Get Yourself Out Of Debt: Debt Consolidation, Debt Settlement Or Credit Counselling Service ? February 16, 2008
Posted by Vedis in : Credit Cards , 1 comment so far
Debt is very limiting. It limits your earning potential by taking away from the money that you can invest and save. Debt will constantly hang over you. The only way to get away from debt is to pay it off and stop using credit.
Here are a few ways to get yourself out of debt:
1. Make a Debt Payment Plan. Many people avoid making a plan, because it involves adding all of your debt together, and the numbers can be depressing and scary. However, knowing that you are doing something about your debt helps to relieve those fears and the nagging worry that you may be experiencing.
2. Consolidate All Your Debts. A debt consolidation loan could be helpful if you ran up your credit cards while you were in business school, or if you have a number of high interest installment loans such as student loans, car loan, etc. This will allow you to roll this high interest debt into one manageable payment.
When you consolidate your debt, you take out a loan to pay off several other debts. This allows you to consolidate the money you owe into one payment.
If you have an easier time making your payments, you can avoid late fees, extra charges, and the bad credit that will inevitably result when you can’t afford to pay regular bills.
Generally this debt consolidation loan will move unsecured credit card debt into secured debt (a home equity line). So if you fail to make payments, you may be in danger of losing your home.
3. Look For Up Credit Counseling Service. Consider consumer credit counseling which will allow you to enter into a debt management plan with your creditors. There’s a possibility to reduce your monthly payments, but you’ll still be able to pay your balance in full. As long as your payments continue to be made on time each month, consumer credit counseling does not hurt your credit.
4. Consider Debt Settlement. You may have read about debt settlement as an alternative to bankruptcy or a solution to your debt.
Debt settlement reduces your debt by negotiating with your creditors. You give the names of the creditors and the amount you owe. The debt settlement company then gives you an estimate for reducing your debt along with a new, lower monthly payment.
To Pay Off Your Debts Fast, Try IVAs, Remortgages, Secured Loans Or Other Debt Management Solutions January 20, 2008
Posted by Vedis in : Credit Cards , add a commentI used to think that declaring bankruptcy may be my only option when my credit card debts snowballed to $63,809 in April 2007. Fortunately after much reading online, I realized that there are so many debt solutions such as secured loans, unsecured loans, remortgages , ivas and debt consolidation loans available to help people like me to get out of debts fast.
You can take care of the situation by setting up your budget, and a debt payment plan. You can also work with your creditors to see if they can lower payments and interest rates for you. But if they don’t work, you may have to consider an IVA.
IVA (Individual Voluntary Arrangement) allows as much as 90% of your debt to be written off. You pay a single, reduced, affordable, monthly payment for a period between 3 and 5 years after which the unpaid part of the debt is written off by the creditors.
You may also be considering a debt consolidation loan to help yourself get out of debt. When you consolidate your debt, you pay off the balances on your credit cards, and other loans with the money that you receive from the new loan. After you do this, you only have one payment to make instead of several.
It may also lower the interest rate and lower your monthly payment amount by extending the term of the loan. However, if something were to happen to you and you were unable to make the payments on your home equity loan, then you could lose your home.
Another alternative is to get a debt management company to manage your debts for you.
Just tell them who you owe money to, how much you owe and how much you can afford to pay each month. They then take over and negotiate with your creditors to agree affordable monthly repayments. They make the payments on your behalf to reduce and clear your debts.
You make one single affordable payment to the debt management company each month and they pay your creditors. With debt management your debts steadily reduce until you have repaid what you owe.
There are many companies offering debt management, so make sure you look for debt management companies like MoneySolve that provide an ethical approach to debt management. That means they will only recommend debt management if this is the right solution for you.
MoneySolve also offers IVAs (Individual Voluntary Arrangements) which can help write off over 50% of your debts, in some cases as much as 90%!
Effective Money Saving Tips December 3, 2007
Posted by Vedis in : Money Saving Tips , add a commentSaving is your best defense against bankruptcy. It insulates you from possible financial loss and gives you the ability to expand your finances and create a money-generating business machine that will help you earn extra.
Your potential to flexing your base income is augmented in ways that is not confined within the walls of basic employment. You can start up your own business, use it for loan purposes and earn interest on them while being used, among others.
But the basics of it all lies in saving – spending less than what you earn and keep something enough for future use and for unforeseen circumstances. (more…)
