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September, 2009:

Unsecured Debt Consolidation Loan: The Smart Way To Get Rid Of Credit Card Debt

If you’re drowning in credit card debt, an unsecured debt consolidation loan could be the lifeline you’re looking for. Vacation spending, emergency spending, even essential items that we can’t pay for in cash, can cause our credit card balances to skyrocket. The problem is, if our income doesn’t meet our expenses, we automatically fall into debt if we continue to spend at that level.
An unsecured debt consolidation loan can clear the decks and pay off all your credit cards. This will reduce your monthly debt payments and guarantee you’ll be out of debt at the end of the term of the loan. However, an unsecured debt consolidation loan will only give temporary relief if you don’t curtail your spending.
To provide genuine, long term financial relief, an unsecured debt consolidation loan should be combined with professional debt counseling and financial guidance. A strict budget needs to be devised that will allow you to live comfortably within your means. If the problem is inadequate income, part of the planning process will need to include strategies to increase your earning capacity. In this case, your budget may simply slow your financial decline and give you more time to get on your feet. If you need to pay for education or training to improve your employment prospects, an unsecured debt consolidation loan may be able to this expense as well as pay off credit card debt. Again, a financial counselor should be able to advise you on your options, help you to establish reasonable goals and assist you in developing a workable plan to achieve them.
Combined with effective financial counseling, an unsecured debt consolidation loan can set you on the pathway to financial stability and a far less stressful life. However, some people make a significant mistake when using an unsecured debt consolidation loan to pay of their credit card debts. They don’t cancel their credit cards! If you don’t cancel your cards, when you come under financial pressure, you’ll be tempted to use them and you probably will. Protect yourself by removing the temptation. An ideal budget will include savings for emergencies to alleviate this pressure safely.
To maximize the benefit of using an unsecured debt consolidation loan to get rid of credit card debt, you do need to shop around. Look for an unsecured debt consolidation loan with the lowest fees and lowest interest rates over the shortest possible term. The best product will save you a lot of money over the term of the loan as well as substantially reduce your monthly outgoings.
Done right, an unsecured debt consolidation loan can save your financial life and in so doing, improve every other aspect of your life as well. Why spend any more unnecessary time worrying and struggling, when the answer is staring you in the face?

Get in Control of your Credit Card Debt

There are some risks involved in using a Credit Card for financing everyday expenses. Credit Card debt is one of the most common financial problems and it is not easily solved. Here are some tips on how to reduce credit card debt and take control over your finances. Vicious Circle Of Debt

The main virtue of credit cards is also the main problem when it comes to uncontrolled debt. Credit cards let you purchase goods even when you do not have the cash to do so. If you have discipline you can use this feature on your advantage by enjoying something you buy today and save to pay for it in a longer period of time. However, lack of discipline will lead you to be tempted to purchase goods without consideration and exceeding your repayment capacity.

Thus, debt accumulates in your balance. If, when payment is due, you can not cancel the balance in full, you will probably pay a smaller amount and finance the rest. This will imply interests that will add up to your balance. If you do not stop buying goods, you will not be able to pay the balance in full and debt will keep accumulating. Time will come when you will not be able to pay the minimum amount on your credit card and you will incur in penalty fees and higher interest rates will be charged on the unpaid balance.

Though exaggerated as it may seem, this scenario is very common and it often leads to default or even bankruptcy. The consequences of such events are devastating to your credit score. Your ability to get finance will shrink till it disappears completely. Recovering from such situation takes many years.

There are however many things you can do to avoid these situations and start reducing your debt till you become debt free. If you achieve some discipline and follow this advice, you will not ever need to worry about your credit again. Avoid Minimum Payments

Most of a minimum payment is interests, thus if you pay only the minimum payments you will not be reducing your debt significantly. The key to success in reducing credit card debt is to pay as much as possible but always over the minimum. By doing so, though it may not show right away, you will end up saving thousands of dollars in interests on the long run.

If you have multiple credit card, check which of them has the highest interest rate and if you can not transfer the balance, pay as much money as possible in that card and only the minimum on the others. Once the balance is fully paid, return the credit card and continue with the next higher interest credit card. This way, you will be saving a lot of money on interests too. Cut On Non-Essential Expenses

At least till you reduce your debt substantially, you need to lower the amount of money you spend on non-essential expenses. Buy only what you specifically need. It is important that you make some sacrifices, in the future you will be able to retake those expenses and you will have avoided worse problems than pilling up bills and debt like default or bankruptcy. Consolidating Your Debt

If all this does not work, you can request a consolidation loan to pay off al your debt and cancel your credit cards or contact a debt consolidation agency to negotiate with your creditors new repayment plans with lower and affordable installments. However, this should only be done as a last resort since it may affect your credit score negatively.

Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about <a href="http://www.speedybadcreditloans.com/credit-card-consolidation.html” rel=”nofollow”>Credit Card Consolidation and <a href="http://www.speedybadcreditloans.com/free-online-debt-consolidation.html” rel=”nofollow”>Debt Consolidation you can visit her site http://www.speedybadcreditloans.com/
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Learn How to Avoid Bankruptcy and Become Debt Free

Many events may drive you to bankruptcy. Actually, except in certain situations, bankruptcy is nothing but the result of a buildup of unfortunate financial decision and unexpected events. Nevertheless, there are ways to prevent it and to keep debt at a reasonable level in order to maintain a healthy financial situation. Planning Ahead

Unless you are a fortune-teller, you can not foresee what is going to happen in the future. Therefore, you should start preparing for the unexpected. It may sound pointless but the truth is that if you have enough savings you will be able to avoid getting in debt most of the time.

In order to be prepared for what may happen, you should always make a budget and stick to it as tight as possible. Within the budget you need to include all your income and expenses, including your debt installments and an average of credit card payments.

You should make a plan for reducing your debt progressively. If you can take a low interest loan to pay off your credit card debt, then you should make payments above the minimum in order to keep reducing your debt. You need to always pay at least a little more than the interest charged for financing.

An excellent idea is to leave round numbers in your balance. For example if the overall debt is $2423.15 and the minimum payment is $380.57 then, you can pay exactly $423.15, so the amount you owe would be $2000, which is an amount easy to trace in the budget. Order Your Payments According To Importance

Even though the above idea is useful, you should always pay more than the minimum in your credit card balances. Moreover, you should pay as much as possible since credit cards carry the highest interest rates. First of all you should pay for essential services and expenses. But immediately after that you should try to cancel the highest interest debt.

Though you should check the interest rates charged along with any other costs and fees. The usual priority order according to the interest rate charged is: Payday Loans and Cash Advance Loans, Credit Card Balances, Personal Loans, Car Loans, Home Equity Loans and Mortgage Loans. If feasible, you should try to get rid of the first ones as soon as possible without neglecting paying the others, especially those who are guaranteed by an asset such as mortgage loans and home equity loans. Consolidation Loans

If you can request and get approved for a consolidation loan, the main problem would be solved. You will use the money to cancel high interest debt like payday loans and credit card balances. Afterwards you should avoid incurring into more debt and you should always keep your budget balanced. After Debt Reduction

After you get rid of your debt, or even when you have it under control you need to start putting some money aside in order to save for any unexpected event. This way, you will be able to avoid getting yourself into the vicious circle of debt again. If you ever need to use that money, make sure to rebuild your savings fast as soon as the unexpected event’s consequences have passed.

Devora Witts is a certified loan consultant with several years of experience in the credit area who instructs people regarding credit recovery and approval for personal loans, home loans, consolidation loans, car loans, student loans, unsecured loans and many other types of loans. If you want to understand <a href="http://www.badcreditloanservices.com/bankruptcy.html” rel=”nofollow”>Loans After Bankruptcy and <a href="http://www.badcreditloanservices.com/debt-consolidation.html” rel=”nofollow”>Debt Consolidation thoroughly you can visit her site http://www.badcreditloanservices.com
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Cancelling Holidays and Paying Off Debts. Good Sign or Bad Sign?

If you’re in a hole, stop digging – it’s true of most things, and it’s certainly true of debt. So maybe The Times brought us good news when it announced that 58% of Britons were planning to cut back on their summer holidays, and 19% canceling their summer holiday plans altogether. Maybe it’s encouraging to see people re-prioritising, keeping their money for essential things like rent, food and petrol.
On the other hand, it’s worrying to see so many cutting back on their holidays. Holidays might not be ‘essential’, but many of us see them as an important annual tradition: a reward for a year of hard work and a way to relax and ‘recharge the batteries’ before returning to the realities of bills, debts and work. It’s hard not to wonder how many people aren’t choosing to economize, but cutting back because they simply have no choice.
However you view the statistics, debt isn’t the only reason for these cutbacks. There’s also the credit crunch, the rising cost of living and the weakness of the Pound against the Euro. Cumulatively, these factors are nothing but bad news for people in the tourism industry. And since the travel and tourism industry employs over 120,000 people (according to the Institute of Travel & Tourism), this could well translate into bad news for economy. After the recent massive job losses among home-builders and estate agents, any threat to the travel and tourism industry could easily damage consumer confidence further and reduce the average consumer’s spending power.
On an individual level, of course, the impact could be much more immediate. How many of those 120,000 people are deep in debt – absolutely reliant on their next paycheque just to stay on top of their debt repayments?
It’s a serious problem: many financial experts advise people to set aside at least 3 months’ salary for a rainy day, but how many are able to do that? With record levels of personal debt and escalating cost of living, millions of people are struggling to afford their essential living costs and debt repayments, so saving is simply out of the question.
The ‘silver lining’, the optimists say, is that hardship reminds people of why that safety net is so important. The next time the tough times come around, we promise ourselves, we’ll be ready for them, with our debts paid off and our 3 months’ salary safely in the bank.
Saving, however, is rarely a good idea when there are debts to be paid off. Whatever interest a savings account might accrue, it’s unlikely to be as much as the interest charged on the debts. So for anyone in debt, step one has to be getting out of debt, and the best way of doing that varies from person to person.
Debt management plans, debt consolidation loans / mortgages, Trust Deeds, Individual Voluntary Arrangements, even bankruptcy… Each debt solution comes with its own unique pros and cons, but they do have one thing in common: they all tend to work better when people talk to a debt adviser as soon as they realize they’re in financial trouble. In general, the longer someone leaves it before they look into debt solutions, the harder it’ll be.

What to Expect When Consolidating Your Unsecured Credit Card Debt

If you have a lot of credit card debt that is piling up, you may want to consider unsecured credit card debt consolidation. When you choose this option, you will be consolidating all of your debt into one bill instead of many bills.
But this type of debt consolidation is not just convenient — it can actually end up saving you money. When you decide upon debt consolidation, you are usually struggling to make the payments on all of your credit cards. You may even find that making the minimum payment is too difficult and that you continue to fall behind in debt.
What Does a Debt Consolidation Do?
A debt consolidation company will access your financial situation and contact all of your credit card companies. They will explain to them that you have placed your credit in their hands and negotiate a lower interest rate for you. They may even be able to negotiate away late fees. Most credit card companies will cut their minimum payment when they hear that you are with a debt consolidation company.
The debt consolidation company will then have you pay them a monthly fee that covers all of your debt. They, in turn, will make the payments to the credit card companies.
How Does Debt Consolidation Affect My Credit?
Debt consolidation will affect your credit adversely, but not as badly as a Chapter 7 bankruptcy. The credit cards that you consolidate will be cancelled. Many companies will advise that you keep one credit card out for emergencies. When the debt is consolidated, the credit card company will cancel your card so that you cannot charge any more money. That is the price you pay for getting the lower monthly payment and interest.
What Else Does a Debt Consolidation Company Do?
Most debt consolidation companies will also offer you credit counseling. Their goal is to get you debt free. Your monthly payment must be paid on time and is usually taken directly from a savings or checking account. They will not accept a personal check for payment. You may also pay them with a cashier’s check or postal money order.
Is Debt Consolidation Free?
There is usually a donation charge for debt consolidation, although some states are clamping down on this practice. This is usually advertised as a free service, but often, the company will include a “donation fee” in with the monthly payment. Many consumers do not mind this as their monthly payment is still lower than what they were paying before and they feel that they are making headway with their debt.
An unsecured credit card debt consolidation is similar to filing a Chapter 13 bankruptcy, but without the big hit to your credit rating, and you do not need an attorney.

DebtGuru.com (http://www.debtguru.com/unsecured-credit-card-debt-consolidation.htm) offers you free information on unsecured credit card debt consolidation and can point you in the right direction to get your debt management back on track.
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Digging Out of Debt: Baby Steps That Lead to a Big Payoff

If you’re one of the countless Americans who is buried in debt, you’re not alone. But don’t give up hope – you can dig your way out of debt and reclaim control over your finances – and your life.Being buried in debt not only has a negative effect on your bank account, it also leads to a constant feeling of stress and is detrimental to your overall well-being. It probably took you awhile to get to this point, and it will probably take you some time to get out of it – but it’s well worth it, both financially and emotionally. The ‘Snowball’ PlanIt’s not instant and it’s not glamorous, but working your way out of debt can be very gratifying. There are basically three steps.

This ‘snowball’ method takes time and dedication, but it doesn’t take long to start seeing results. If you stick with it, it will work. And the important thing is to not put it off a day longer – start now.Once you start seeing results, and even once you’ve reached your debt reduction goal, it’s important to not return to the old spending habits that got you into trouble in the first place. Basically, you’ll need to make a complete lifestyle change. Trust me, being free from the constant weight of unmanageable debt is a much better payoff than the instant gratification of a new television or exotic trip.

Heather L. Clark is a Web writer and researcher based in Omaha, NE. She keeps in touch with family and friends with funny printable cards, free New Years cards and free kids birthday cards.
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Debt Consolidation Loan: What is this Program?

A debt consolidation loan program combines traditional debt negotiation with a debt consolidation loan so the borrower can get a reduction on his debt via negotiation while at the same time getting lower rates and a single and lower monthly installment with a repayment schedule suit for his budget.

Debt Negotiation

When you fail to repay a loan, the minimum payments on your credit cards or even regular bills, you usually incur in penalty fees and extra interest rates that contribute to a continued growth of your debt. Creditors tend to increase the amount that is owed to them by these means because they have additional costs when you fail to repay but also because they know that eventually they may be forced to resign a portion of the money, thus by increasing your debt they make sure to get as much as possible.
However, since this is a common practice among lenders, borrowers can easily fall into a debt trap with all those penalty fees and abusive interest rates. Debt consolidation agencies provide expert negotiators that know exactly how to deal with creditors and can agree with them a solution to your debt problems. If you have to file for bankruptcy, then they won’t be able to recover but a small portion of their money, so they are more than willing to show flexibility when a negotiator gets in touch with them.

Agreements can reduce your debt by up to a 60%. The main reduction is obtained by eliminating the interests charged over the debt’s principal and the capitalization of interests. Sometimes you can even get a reduction on the principal itself. And though it is not a reduction, you can get an ease on your debt by rescheduling the loan payments into longer repayment plans.

Debt Consolidation Loans after Negotiation
Once a reduction on your debt is achieved you can get even better terms by applying for a debt consolidation loan. The money you get from the loan will be used to cancel outstanding debt so you’ll end up with a single and lower monthly payment. By doing so your debt won’t be a huge burden anymore and you will afford the installments without making sacrifices. There is however, a limitation that you should be aware of.

Secured and Unsecured Loans

Unsecured Consolidation Loans cannot be used to consolidate secured debt. If you have different kind of debt you must resort to either a unique secured consolidation loan to cancel all your debt or an unsecured consolidation loan to consolidate unsecured debt and a refinance loan in order to consolidate secured debt like mortgage loans and home equity loans.

Control Your Debts With Debt Management

Without doubt getting your creditors to agree to reduce monthly payments can be hard as the creditors are often attached to the word no and ofcourse to their profit margins. But to make your creditors agree is not impossible. A Debt management solution through a good debt management company can often help. The advisor at a good debt management company will take time and trouble to convince the creditor that there are valid reasons why you are unable to make full repayments and that you are trying to control your debts with good debt management.
The following are ways by which a good debt management company can help you :-
1. Go through your income and expenditure completing a full fact find.
2. Agree an affordable payment with you that is comfortable to make each month.
3. Prepare a financial statement for your creditors, which is then sent to them so that they are fully aware of your situation.
4. Negotiate payment rates with your creditors so that those who are initially uncooperative are brought on side.
5. Negotiate for interest charges and late payment fees to be frozen.
6. Distribute payments on your behalf.
One more thing you may remember while taking debt management solution is that you can cancel the agreement and be entitled to a full refund of money however this is only if the cancellation written notice is received within 7 days of making the agreement. This is known as cooling off period after which normal debt management solution terms apply.
Once the debt management solution programme is under way you can stop the agreement any time and no penalty is added to it. As such there is no minimum or maximum time contract. The service can be used as long as you want until you feel confident to deal with your creditors again.
Of course no debt is small if you cannot afford it. But debt management solution is helpful for those who have debt amounts typically in excess of two thousand pounds with more than one creditor. Debt management solution is applied to unsecured debts and not to secured loans or utilities, CCJs, mortgages etc which you continue to pay. In not maintaining payments at the agreed level and on the agreed dates your creditor may with draw his support for the plan. But as said prevention is better than cure should be the motto of your clearing debts. Controlling your debts with a debt management solution not only mends your debt but also improves your credit history providing of course that you do your bit and keep up the payments each month.

Geoff Hibbert has over 30 years experience at the forefront of the uk finance markets
http://www.creditrepairuk.co.uk
http://www.thedebtmanagementcompany.co.uk
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Get Out of Debt, Step by Step

If you’re one of the millions of people plagued by debt and struggling just to keep up with your credit card payments and keep your bills paid, you can change your situation. You can get out of debt. It will take time and determination, but if you follow these steps, you will become debt-free.

1. Cancel your credit cards. Call your creditors and tell them that you want to cancel your account. You will continue to get statements and be liable for the existing balance, of course, but you will no longer be able to use the cards to incur new debt. If you have a card with available credit, and you feel you need it for emergencies, freeze it inside a block of ice in the back of your freezer so you cannot use it impulsively.

2. Track your spending. This may be the most important thing you can do to change your spending habits. Write down every penny you spend, on anything. Carry a small notebook or a piece of paper in your wallet, and write down any money that leaves your hand, and what you spent it on. The simple act of recording your spending will help you become more aware of how you spend money. And this will help you change your spending habits.

3. Cut back on personal spending for a time to pay off debts. You will need to both live within your means, and find money to pay off your debts. Aim for not only not debting, but having at least $25 per month to pay on your debt. Write this into your personal budget and find a way to do it.

4. Pay more than the minimum on one account, while paying minimum on others. Make the minimum payment on all accounts except the account with the lowest balance. Pay as much extra on that account as possible.

5. When one debt is paid off, pay that entire amount on another debt. Once you’ve paid off your lowest balance, take everything you were paying on it—the minimum payment as well as the extra payment—and apply it to another account.

6. Pay off higher interest debts first, except—start by paying off lowest balance for morale. Many people suggest starting with the account with the highest interest rate, but by starting with the lowest balance, you can see real results very quickly. You can then start paying off your higher-interest accounts. As you pay off the accounts with high interest, your overall debt will increase less quickly, and you can make progress in paying them off.

7. Avoid incurring any new debt. This is very important. While you are working to get out of debt, you absolutely must not take on any new debt. This may be difficult in some cases, but if you are currently having debt problems, another loan is not going to help. You need to find a way to get out of the debt.

8. Start a savings account for a car or other major expenses. As soon as you can, start putting a few dollars a month away to save for major expenses. Increase this as often as you can. This account will be there when you do have a major expense, so you don’t have to go into debt again.

Getting out of debt takes time and effort, but becoming free of your debt and having a good financial picture is one of the best things you can do for yourself and your family.

 

Read the blog http://www.zero-out-my-debt.com for the latest tips and information on debt reduction and how to get out of debt.
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Tips to Minimize Credit Card Debt

Credit card debt is the Number One of debt issues that is not just affecting American households but worldwide in general. Many people are drowning into credit card debt and find themselves hard to get rid of it. If you are in the same situation, praying and hoping for helps from money falling from sky will not save you from continue drowning in the sea of debt. You action to start a debt elimination plan in place is your only way to save yourself from your debt issue. Here are 2 tips to minimum your credit debt that you should consider in your effort of get rid of debt.

1. Don’t Add New Debt While Clearing Your Old Debt

Every one likes to use credit card for purchases because it’s convenient and easy, until you forget about how much money you have in you account and overspend your money. When credit card bills come, only you realize that you have not enough money to pay the amount stated in your credit card statement, you have no choice but paying minimum due to fulfill the credit card agreement requirement. Later, you go out from shopping, again you forget about your financial status and spend again with your credit card.

If you continue this spending behavior, your credit card debt will continue to go up instead of reducing the amount. There is no way to get rid of you debt if you don’t get rid of you credit card first. Hence, if you find that keeping away your credit cards are too hard, take a dramatic action by terminating all your credit cards and exchange them with debit cards so that you only can spend up to the limit where your checking account allowed. Before you call up the banks to cancel your credit cards, read the fine print of your credit card agreement first because some banks will increase your credit card interest rate if you cancel their cards with balances.

The first action to get rid of your credit card debt is to get rid of your credit cards so that you can avoid from adding new debt into your existing debt amount.

2. Minimize The Interest Rate & Avoid The Finance Charges

Credit cards carry different interest rates. If you pay your credit cards’ balances in full each month, then, you don’t really need to care about the interest rate. But, now you are in debt, every extra of interest rate will make you pay more. Hence, list down all your credit card debts and their balances. There are a few options that you can use to minimum the interest charged to your debt. Credit card debt consolidation into few cards with lower interest rate is one the options. Another way is getting a debt consolidation loan which has lower interest rate to pay off your high interest credit card debt. After the credit card debt consolidation, your credit cards now have a full credit limit again. Don’t let yourself be trapped into new debt with these credit cards again.

By combining all your debts into single debt under debt consolidation process, you will have a better focus to pay of your credit card debt and transferring from high interest debt to lower interest debt will save you a good amount of interest. With debt consolidation, your overdue debt will reset back to current and help you to avoid paying the overdue or delay finance charges.

Summary

Credit card debt can be built up really fast, but it won’t go away that quick and it won’t go away if you have done nothing to resolve it. The first step of get rid of your credit card debt is reducing it by avoiding new debt added to it and minimum the interest from rolling up your debt.

Cornie Herring is the owner of http://www.debt-consolidation-1stop.info. Visit Cornie’s website to see more information on Debt Reduction and Debt Repayment.
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