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Some Tips To Help Bring Down Your Debts

There are many ways to help with a bad debt situation. We have tried to give you some pointers some of which you will find useful; some may not be suitable for you personally.
You do need to select any ideas that can help alleviate any current debt problems you may be having. It is better to deal with the situation now rather than wait until you can no longer cope.
This in the end is almost certain to be what will happen, as our nation’s debt crisis seems to deepen week by week. One debt problem that you should certainly consider dealing with is credit cards. Plastic debt makes up a huge percentage of personal debt in the USA.
That is hardly surprising when you consider just how easy it is to obtain a card, and how simple it is to run up increasing balances on multiple credit cards.
You should certainly consider removing credit cards from your debt situation by cutting them up. This may seem drastic but the high interest rates charged by card companies can be crippling on your monthly budget.
Cutting up all but one of your cards is an incredibly useful way of controlling your spending and thus reducing your total debt. Getting rid of all but one of your cards, which you can use for emergencies, is an excellent way to deal with them.
You can then start to pay off each card one by one. By making the maximum possible payment, you can each month to the same card, until it has a zero balance.
You should not consider cancelling your credit cards, as this will have on adverse effect on your credit history. However, putting them out of reach is always a good option for debt reduction.
You should never be late with a card payment as this invites additional fees to be added to your account. There are other fees associated with credit cards that are best avoided. ATM cash machines can involve high fees, especially if you are travelling outside the country.
It is better to withdraw cash from your local bank, equivalent to what you need for the entire week and use that instead of your credit card. This will also help you in reducing the amount of money you spend on items such as groceries or impulse purchases. You should avoid convenience credit that will include fees such as booking your movie tickets on line. These types of payments attract added charges.
If you have several credit cards you should seriously consider using balance transfers to drastically reduce the amount of interest you are paying. You may also wish to contact each credit card company individually and ask them to reduce the amount of interest that you are paying. Otherwise, you may have to transfer the balance to a lower interest rate card. This will often produce positive results from the card company, as they would rather receive less interest, than lose you to another credit provider.
Setting a budget limits for yourself each month is a wonderful tool for controlling and reducing your debts. You should work out exactly how much your monthly outgoings are, including all of your bills and credit payments.
Then calculate how much actual cash you have coming in to the house each month. Any difference between the actual outgoings and income should be used in paying off one of your debts.
This needs to be continued until you have balanced your debts. Even though this could take many months, and even years to complete. The alternative is slipping further to debt until the situation becomes totally out of control and leaving you with few options for eradicating your debts. It may be an unfortunate fact that you may simply not be able to pay off your debts in a reasonable amount of time.
The other alternative is to approach this from the opposite angle. This means that you will need to obtain additional income, perhaps from overtime, or a part-time job, to boost the amount of cash coming in to the house each month.
Not only will additional work hours give you more available money. It will also reduce the amount of time that you have available to spend this additional cash, this in turn will help reduce your debt balance.
If, even this kind of action is not sufficient to resolve your financial problems. You may need to take more drastic action, such as moving home to a smaller house, or possibly two another State. These are serious alternatives, but they may be your only choice should situation get completely out of your control.
Slightly less drastic, and possibly the best solution for many people is a debt consolidation loan. This type of loan will pay off all of your existing debts, including credit cards and any other outstanding financial problems that you have.
All these debts will then be replaced by one single, while monthly payment, that can be as much as 50 or 60% lower than what you are paying to your high interest debts at the moment. These loans are reasonably easy to arrange through an online broker, who will be able to guide you through the process, and perhaps give you a new financial start in life.

Joe Kenny writes for, visit them today for debt help or for debt relief and to debt consolidation loans.
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Understanding Debt Management Services

When some people become overwhelmed with debt and find it hard to pay their bills, they often turn to a debt management service. These services can often be found through credit counselors, and you should only use a service that you’re comfortable with. This service should be more concerned with helping you than with making a profit.

What Do Debt Management Services Do?

The debt management service transfers payments from their clients to the creditors. In return, they may take out a commission from the transfer or will receive fees from the lenders. While debt management services may work with a wide variety of different loans, they usually focus on debt that is unsecured. They are different from credit counseling services. Those with auto loans or mortgages are usually not referred to debt management companies.

Consolidation of Your Debts

Many debt management services offer debt consolidation loans. All of your bills and outstanding debts are combined into one bill. Once this has been done, it is up to the debtor to make the monthly payments on the loan. If the debt management service reduces the interest or balances on your loans, this can effect your credit. Many lenders will view you as being a high risk client when looking at extending future credit. Despite this, the effect on your credit is less than things such as continuous late payments. A debt management service is also an excellent alternative to filing for bankruptcy.

What’s In It For Them?

It is common for debt management companies to earn up to 10% of the money transferred from their clients to the creditors. This along with the fees paid to the debt management companies from the creditor can lead to very large profits. As can be expected, some companies will try to abuse their power by persuading clients to sign up for a service which is driven by profits instead of helping them manage their debts.

Save Some Pennies For Those Rainy Days

Because many people find it hard to adapt to a debt management service, emergencies may come up where money is needed. It is important to find out what will happen if you miss payments before you commit to using the service. Each company is different, and some companies may have large penalty fees for customers who don’t make their payments on time. With the rise of debt management services, people have often been advised to look for institutions that are non-profit. The idea was that organizations for profit would focus more on profits than with helping clients manage their debts.

Profit or Non Profit?

Despite this, many debt management services that are for profit will advertise themselves as being non-profit. Using a non-profit organization doesn’t guarantee you will get better service than you would from a for profit organization. It is best to use services that are accredited with the National Foundation for Credit Counseling. Accredited services are not likely to charge outrageous fees or attempt to take advantage of their clients. Before you look at a debt management service, you should call your creditors to see if they can lower your interest rate.

Getting a Cheaper Rate

Many credit card companies will lower your interest if you call them and inquire about it. It may also be possible to use a standard lender as opposed to a debt management service. Under some circumstances it may be necessary to file for bankruptcy. You could also get an unsecured loan to pay off all your debts if your credit is good.

You should also be wary of debt management services which are late making your payments. If this occurs you should immediately call them and get an explanation. Your credit can be damaged if they make your payments late, and if they are charging you high fees you should cancel their service and look at other options.

Joseph Kenny writes for the Personal Loans Store and offer more information on debt consolidation loans and other loan topics available on site.
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What Is The Better Option: Consolidation Or Negotiation Of Debt

Today, unfortunately, many people find themselves under debt and are struggling to find a way out of their situations. There is no shortage of plans and schemes out there offering a way out of debt. At this time, it should suffice to deal with two major approaches to solving your debt problems and alleviating your financial woes. The first one is debt consolidation while the second is called debt negotiation. Either may prove to be an effective means to remove the weight of your debt load.
Debt Consolidation
If you are considering debt consolidation, you have a few options available to you. Many credit card companies and creditors offer customizable debt repayment plans can consolidate all of the debt and put it under a single payment that has a lower interest rate. There are also debt consolidation companies that specialize in the area of debt assistance. If you apply with one of these services, all or most of your outstanding debts are consolidated into a single monthly payment. This payment is typically lower per month and is offered at a lower interest rate than most creditors will allow.
Since this payment will be at a better rate and cost than you would have paid to credit card companies, you will likely save money each month, which can then be applied to future payments to pay the debt off faster. The big plus that most people attach to debt consolidation plans is that you will be able to silence the voices of multiple creditors as long as you consistently pay the new arranged payment amount with the consolidation company or other provider.
One of the cons of using debt consolidation is that you will be required to cancel all of your current credit cards that are represented in the consolidation plan. There are also fees associated with the plan, such as administration fees, that will affect the amount going towards the actual payment of your debt. Many fees are set at flat rates or set rates for each representative creditor. Bear all of these factors in mind.
Debt Negotiation
Another term for debt negotiation is debt settlement. This is an option that is often related to debt consolidation because most of those who choose to negotiate or settle their debts have shown that they are unable to keep up with the monthly payment associated with a consolidation plan. The person who believes they will not be able to pay that minimum amount, may want to look into debt settlement options to reduce credit and debt issues.
It is an attractive option for many people who have serious debt loads because they can essentially stop paying their creditors if they’ve enrolled with a debt negotiate company. These companies represent the client and work to negotiate a settlement price to wipe out the debt with the creditor. Any payments you make to the debt negotiation company are saved in an account for future use to pay off the negotiated settlement. This is usually a one-time payment that clears the client’s debt load.
One notable drawback with these types of services is that your credit score is often lowered by association with the company for the duration of the relationship. Of course, to offset this, most of the settlement companies will have the creditors gather a new credit report that that notes the total payoff of debt. Furthermore, any other negative effects on your credit can be fixed by credit repair services many of which are offered by the debt negotiation companies.

Peter Kenny is a writer for The Thrifty Scot, please visit us at Debt Consolidation and Bad Credit Remortgage
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Debt Consolidation: Do it yourself

There are many consolidation agencies out there offering their services and promising to solve your debt problems just by joining their programs. There are many companies that do what they promise for a fair price and will help you recover from a bad credit situation. However, if your situation is not so complicated, you can carry out your own debt consolidation process without too many hassles.

If you do not have too many creditors and different types of loans and credit cards, solving your debt problems does not have to be so complicated. You can save the money a debt consolidation company will charge you and solve your financial difficulties by yourself.

Debt Negotiation

The main part of a debt consolidation program is debt negotiation. What you need to do is to contact the lenders and try to speak with someone who has the ability to decide over your debt. This can usually be done with personnel from administrative or legal departments. Customer Service will not help you on this matter; just ask them to put you through to the proper department.

Once you have contacted the lender, you need to make things clear. You have to state that you are unable to repay your debt under the current terms and that you need to have your debt rescheduled under more advantageous terms in order for them to get their money back. Do not mean it as a menace, you need to sound concerned, they need to understand that you want to pay but you can not and that if they are flexible enough they will be able to recover their money without entering long and costly legal processes.

Unless the lender holds a real estate guarantee, chances are that they will tailor a new loan with favorable terms so you can retake your monthly payments without sacrifices. If you are convincing enough you can get all the debt created due to punitive fees and interests eliminated and a new loan reschedule to suit your needs.

Get A Loan For Consolidating

Another thing you can do, either instead or after debt negotiation is to obtain a loan for a considerable amount repayable over a long period of time so you can use the money to cancel outstanding debt and end up with a single monthly payment with a lower interest rate. By doing so you will get the same results as a debt consolidation company handling your payments. You will have a single monthly installment to worry about and you will also save thousands of dollars on interests over the whole life of the loan.

Doing this after debt negotiation is better, since you will already have reduced your debt substantially after debt negotiation. If you add to that reduction the money you save by exchanging your current debt with a single debt consolidation loan, you will really improve your financial situation and you will be able to recover from bad credit within a couple of months.

In order to get approved for such a loan you will need to hold some equity on your home. This kind of loan can only be obtained by applying for a secured loan. A home loan, a cash out refinance loan and a home equity loan are the options suggested by most debt advisors.

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="<a href="” rel=”nofollow”>” rel=”nofollow”>Unsecured Loans and <a href="<a href="” rel=”nofollow”>” rel=”nofollow”>Bad Credit Loans thoroughly you can visit her site <a href="” rel=”nofollow”> If the link doesn’t work, just copy and paste in your browser’s address bar.
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BJB: A Rule To Rule Your Debts

It is essential that you get in control of your finances from an early stage – but does that mean not having any debt? When is it right to take out a new loan?

Quite often when I speak to people in debt I find that they didn’t know what they should or shouldn’t borrow money for. They could benefit from this simple but very powerful rule for their personal finances. It allows them to plan, feel in control and not resent their debts. Quite often it is the feeling of not being in control that gets people down.

This nice simple rule has worked for me for years and helps to decide what you can and cannot afford, when it is right to borrow and when it is not.

It draws from my economics background and my professional accountancy training – but despite that it’s very simple!

Accountants talk about things such as “amortisation” and “useful economic lives”. This means that if you buy an asset such as a building or piece of equipment the cost gets spread over several years – over its “useful economic life”.

Economists have a different language (you may have noticed!) and they talk about ‘utility’ – ie the satisfaction you get from consuming a particular product or service.

But what has this got to do with debts and loans?

Well my simple rule comes from both of these concepts combined.

The result is what I call the rule of “Benefit-Justified Borrowing”!

Of course being an economist at heart, I shorten this to the “BJB” rule.

So what does it mean? Quite simply this: only borrow money to fund something that will continue to give you some satisfaction or benefit over the life of the loan that is funding it.

In other words borrowing should only be justified by the benefits that will flow to you in the future from what you have purchased.

Think of it like this – you are buying a reservoir of satisfaction, benefit or enjoyment that will last for several years and this is the reason that you can justify a loan to fund it. To the economist you are deferring your consumption and you are deferring the funding of it. A perfect match!

That’s all a bit abstract – so let’s look at some examples:

Buying a house – it’s unlikely that you can pay cash for it – so you have a mortgage. This fits the BJB rule because you will derive benefit from living in the house over the life of the debt.

Furniture – let’s say that a piece of furniture will last you for 10 years and you fund it by a loan. Again this fits the BJB rule very well. The next question is how long the loan term should be. You could choose to have a loan over any period up to 10 years, although in reality you would probably want it to be less than 10 years – as it would be sensible to take into account what the furniture might be worth in the future. If it was likely to be worth nothing after 5 years then this would be the sensible maximum term of the loan.

Vacations – this is a great example. Many people go on vacation and thoroughly enjoy it but then have expensive credit card debts for months afterwards. This is where the resentment can kick in – you get to a point where you are desperate for the next vacation but can’t afford it as you are still paying off the last one! This is depressing – and cancels out the original enjoyment!

If you follow my BJB rule you will never fund a vacation with debt because when you are paying off the debt you are no longer getting any satisfaction or benefit from the purchase you have made – the vacation is over.

This is where good old-fashioned discipline comes in – save up first for things that do not have a future benefit.

Imagine you have followed the BJB rule. You are going on vacation, knowing that it is all paid for, with cash in your pocket in accordance with the budget you have set. You can go away with a clear conscience to enjoy a relaxing break – and then when you come back there is no debt hanging over you to pay off!

The last example is your usual day to day living costs. You will hopefully realise that this would not meet the BJB rule! It should never be funded by debt. If you are building up long term debt to fund your day to day food and living costs then you urgently need to address this issue and should seek some help and advice without delay.

So does this rule mean never use a credit card? Not at all – short-term loans can have their place – but it does mean only use it when you understand how you will pay off the debt.

So like all good rules the BJB rule has this one exception. Occasionally it is necessary to use short-term debt such as a credit card to get over temporary and short-term cash-flow difficulties. Life rarely goes according to plan and you may just be a month away from having completed your savings plan.

A good example is back to the vacation – clearly it would be ridiculous to cancel it because you were short of savings by one month! Using a credit card means that you don’t have to have saved up every last penny before packing your cases.

However using a credit card should be in the context of a solid plan to pay off your debt within a couple of months of your vacation. You have already mentally spent that money for the next month or two.

Clearly this exception to the rule is about a small shift in timing and is quite different from building up medium to long-term debt that is not benefit-justified!

So from now on follow the “Harper BJB rule” and match the debt to your enjoyment and you shouldn’t resent a debt again!

Copyright (c) 2006

Not All Debt is Bad

So you are in debt-who isn’t these days? We live in a society that encourages people to go into debt. Credit card commercials tell us that a trip to Jamaica is just what we need, regardless of whether we can afford it. (That’s what your gold card is for, right?)

Loan brokers want us to borrow up to 125 percent against our home equity. Even the federal government just had its first balanced budget in a generation and now faces the enormous task of paying off over trillions of dollars in debt.

Yet not everyone is in debt. Many people know how to deal with money. Their debts are manageable, and they have money in the bank. That sounds nice, doesn’t it money in the bank? That is what you deserve. In order to get there, however, you are going to have to change some of your thinking about money and learn a few new methods of dealing with it.

Why Are You in Debt?People who are not in debt think about and treat money differently than the rest of us. They know a few things about money and debt that escape the rest of us. Let’s call them the “financially literate.” If you can begin to relate to money as they do, you will be well on your way to a life that is not only debt-free, but also prosperous. What we hope to do in this book is to show you some of their secrets so you can adapt a few of these ideas and tools to help you get out of debt.

Do not feel too badly if you are not good with a dollar, a lot of people aren’t. Money literacy is not taught in schools, and too often parents are too busy trying to dig themselves out of their own financial hole to help much either. Yet, unfortunately for many of us, we learn more about money from our parents than anywhere else. The good news is that learning how to get out of debt and become more financially literate is not all that complicated.

The first step in the process is to figure out how you created so much debt, because if you don’t figure out how and why you got yourself into this pickle, you might get out of debt, but you certainly won’t stay out. So the first question to ask yourself is: Why did you go into debt in the first place?

Sometimes going into debt is unavoidable, but often it is not. When money is tight, you have several options; going into debt is just the easiest. Instead of choosing more debt, you might have decided to work overtime and make more money, or possibly you could have tightened your belt and spent less money. Debt was not your only choice.

There are many reasons people go into debt: some are good reasons, and some are bad. It doesn’t matter. Did you buy luxuries you could otherwise not afford? Did an illness or a divorce set you back financially? Was debt your way of dealing with some other sudden, unexpected expense? When you look at the reason why you went into debt, the important thing is to notice whether your spending habits follow a pattern. If you can see a pattern, you need to address that pattern as much as the underlying debt.

Consider Mark and Diane. They both make a good living: he’s a psychiatrist, and she’s a psychologist. They have two kids to whom they are devoted. They send both to private school, which costs a total of $15,000 a year, and both kids go to summer camp. This expense adds up.

Mark and Diane don’t buy luxuries, they don’t travel much, and, except for the kids’ expenses, they are very frugal. Yet the only way they can pay for everything is by going into debt. They use their home equity line of credit and credit cards to stay afloat. Although they would like to move to a less expensive neighborhood, they can’t because they have no equity in their home, so they are stuck.

What are they to do? If they are going to get out of debt, something in their lives is going to have to change. The private school is going to have to go, camp may be out, or they are going to have to start making more money. The same is true for you. If you want to get out of debt, you are going to have to identify why you went into debt and change that behavior or pattern.

Good and Bad DebtDebt in and of itself is not a bad thing. Both of us (the authors) were able to start our own businesses because of debt; Steve began his own law practice, and Azriela began her own entrepreneurial consulting business. So we understand what debt is and why some debt is great debt.

Debt allows you to do things you otherwise normally could not do, such as start a business, go to college, or pay for a home. Debt constructs buildings and funds investments and entire corporations-even the government is funded by debt. The trick is to foster debts that help the cause and banish the ones that don’t. Not all debts are bad debts.

Good DebtDebt that helps you, enriches your life, is manageable, and is not a burden can be called good debt. For example, student loans are good debt if they enabled you to get through school and further your life goals. They are bad debt if you dropped out of medical school after one year to become a writer. A good debt helps; a bad debt hinders. We want to help you get rid of that bad debt.

Other examples of debt that may be considered good include:1. Home loans. A mortgage can be a great debt. Not only does it permit you to own your own home, but it also allows you to build home equity. People who are financially savvy earn interest and equity. People who are not financially savvy pay interest and create money for others. For example, charging groceries means that you will pay about 17 percent interest on items that will be consumed within a week. A financially literate person would never do that.

2. Car loans. A car loan can be a fine debt because you get something long-lasting out of the debt. If you need a nice car for your job (if you are a real estate agent, for example), a car loan may be considered good debt because it helps you in your career. However, a car loan that you cannot afford is a bad debt because it detracts from your life.

3. Business loans. If you can service the loan, and it helps you make more money, the loan is good debt, but if the loan is nothing but a source of problems for you, the debt is bad.

4. Credit cards. Credit cards are fantastic. They are convenient and easy. They can help finance a business or even medical emergencies. The problem with them, as you probably know only too well, is that it is too easy to fall under their siren spell and get in over your head before you know it. That’s when they begin to hurt your life more than help it.

Bad Debt BluesHow do you know if your debt is good debt or bad debt? Easy. Bad debts cause stress. You sleep poorly because of them. They cause fights and foster guilt. Supreme Court Justice Lewis Powell was once asked to define obscenity. Hard-pressed to come up with a definition, Powell uttered the famous line, “I know it when I see it.” The same could be said for bad debt: You know it when you see it, and it certainly can be obscene.

Bad debt seems impossible to pay back. You create bad debt when you charge things you don’t need or when you borrow for things that you consume quickly, such as clothes, meals, or vacations. The things quickly disappear, but the debt has a nasty habit of sticking around, seemingly forever. Bad debts can become very bad debts because of interest and penalties. For example, if you buy a CD player for $200 and don’t pay it off by the end of the year, and your credit card company charges a usurious 20 percent APR (20 percent per year), you owe $220 by the end of the year. If you do this with five items, you owe $1100, and that’s a lot of money.

Money TalksTight for money? Here are some simple ways to save a little extra: Don’t use ATMs at other banks and avoid $2 user fees; cancel your movie channels on cable and save about $20 per month; put all of your change at the end of the day in a jar and save about $50 a month; hold a garage sale and make about $200; cancel your cell phone and save $50 a month.

You can create bad debt when you agree to pay these crazy interest rates that some creditors charge, because the debt seems to grow exponentially. Credit cards are the prime culprit, but they are by no means the only one. High interest can also come with personal loans, business loans, or unpaid taxes.

You know what the bad debt dance looks like, anyone reading this book does: New bills are coming in before you’ve cleared out those from last month. You’re surprised to find that the phone bill is still unpaid. Somehow the dentist was never sent his check. You know what past-due notices look like. Your Visa and MasterCard bills include late payment penalties. The hardware store sends a letter telling you you’re past due and requests that you send a check at once. There is more month left at the end of your money, and payday seems far away. Worst of all, these things don’t surprise you anymore.

Avoidance is a common coping mechanism to deal with a budget that doesn’t balance. The problem is, it can create even more problems than you already have:

Your property could be repossessed. The finance company can come take your car. The electronics store can come take its TV back. You could get sued. If that happens, your wages could be garnished, or your bank account could be levied upon. Imagine your surprise when you go to get that $1,000 out of your checking account to pay your mortgage and you find that it has been seized by one of your creditors.

A lien can be placed on your real estate. Failure to pay a bill now means that a creditor can get a judgment against you and force you to pay it later when you sell your house, only then you will pay it with 10 percent interest per year.

Loss of services. You could lose your insurance or your utility services if you avoid paying those bills.

Yet, as much as you have been avoiding the problem, the truth is that your debts are neither crushing nor hopeless. They are simply a problem-one for which there is a solution. But no one ever eliminated a problem until he or she recognized and admitted that there was a problem. You began to do that the moment you read this articles. As you read it, you will need to begin to formulate a debt-reduction plan that will work for you. As you do, you need to determine which debts are necessary and which are not.

Debts You Want to KeepSteve, one of the authors of this book, is a bankruptcy attorney. One day, an old acquaintance named Bill came into his office and said that he needed some help getting out of debt, but he also wanted to avoid bankruptcy if at all possible. They talked, came up with a plan of action, and Bill went on his way. About four years later, Steve ran into Bill again and asked how things were; Bill relayed the following story.

Bill had $30,000 in credit card debt and was behind two months on his mortgage when he left Steve’s office. That day, Bill finally decided that something had to change. He wanted to pay everyone back, put some money in savings, and keep his house. His mortgage was his largest, and favorite, debt because he loved his house.

Bill’s first order of business was to prioritize his debts. Wanting to save his house, Bill called his lender and found out that it had a program that would enable him to roll his mortgage arrears onto the end of his loan. He was therefore able to keep his most important debt and focus his energies on getting rid of the debts he didn’t want anymore.

Bill put together a credit card repayment plan. He started living a bit more frugally, making some extra money by moonlighting, and paying more on his credit cards than the minimum. He was diligent, but not always perfect. Although it took him several years, he finally did get out of debt. He also kept his house and even created a little nest egg. Bill did it, and you can too.

Debts to Get Rid OfIf you want to prosper financially, there are plenty of debts that you will want to wipe out. The most obvious are those where you are paying high interest and penalties, things such as credit cards, lines of credit, taxes, or any other debt that is much higher than inflation. In this articles, you will see how to formulate a plan that will enable you to get out from under these burdensome debts. But as you contemplate this plan, you also need to prioritize certain debts and pay them on time:1. Rent or mortgage. Make paying your rent or mortgage a top priority. Payments on a home equity line of credit or second mortgage are also essential because you can lose your house if you don’t pay.2. Car payments. Make the payments. If you don’t, the car will be repossessed.3. Utility bills. These services are important, and the bills usually have heavy late payment penalties.4. Child support or alimony. Not paying these debts can land you in jail.5. Taxes. Taxes may be put off for awhile if necessary, and we show you how to do so later on in the book, but if the IRS is about to take your paycheck, bank account, house, or other property, you should set up a repayment plan immediately.

The First Rule of Holes: Stop Digging!The goal of this articles is to help you get out of debt within the context of making your life work. You will not be asked to make radical, unreasonable changes in your life because doing so rarely works. Instead, important, sometimes gradual, small but significant changes can make a big difference.

If you are going to start getting out of debt, you have to stop going into debt. One way to start is to begin to wean yourself from the credit card teat if you think that is part of your problem. You don’t have to cut up all your credit cards; that would be impractical and unreasonable. Start slowly, but build up to it and get strong. You can do it. The only way to stop going into debt is to stop going into debt. You might as well start now because the sooner you start, the sooner you will get out of debt. The longer you wait, the longer it will take.

We will show you how to easily trim your budget (well, almost easily) so that you need not incur more debt to stay afloat. But begin now. You are going to have to stop sooner or later. Down the road you will see that this is one of the most important steps you can take in getting out of debt. You will thank yourself for this gift. Remember the first rule of holes: Stop digging!

Long-Term GoalsNow is the time to begin to think about your long range financial vision. What is it you hope to accomplish by getting out of debt? Changing some habits?

Paying off your MasterCard? Probably what you really want is a less stressful life, one that’s free from money worries. But you can have even more. Getting out of debt is one thing, but prosperity is another thing altogether.

You have read this once already, and you will read it again in this book: If you don’t begin to do some things differently, to change the way you think and treat money, you might get out of debt, but you won’t stay out of debt. If you do make some simple changes to your thinking and your behavior, not only will you get out of debt, but you also will get ahead. You will get what you deserve: a life of abundance.

The Least You Need to Know1. Going into debt for essentials makes financial sense; doing so for nonessentials does not.2. Not all debt is bad debt.3. You may want to keep debts that enhance your life and get rid of the rest.4. Stop adding to your debt right now.5. Cultivate a long-term plan of action. offers comprehensive guide to credit reporting, including information on repairing or rebuilding your credit history.


 offers comprehensive guide to credit reporting, including information on repairing or rebuilding your credit history.
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How to Consolidate Credit Card Debt

It is so easy to get heavily into debt on credit cards that you within a few months or even weeks you could find yourself not being able to keep up with the repayments. If this is the case, then you should think about consolidating your credit card debt. Consolidating your debt can make it easier to manage your money problems as well as helping you to save money. Here are some useful hints about consolidating credit card debt.

What is consolidation?

Consolidation is where you take all of your debts and combine them into one debt. For example, if you have 2 or 3 credit cards with a balance on them, you could get one credit card to cover all of the debts and transfer each balance onto this card. This way all of your debts are covered in one place and you only have one bill to pay.

How to consolidate?

There are different ways you can consolidate your credit card debt. One way is to get out a loan in order to cover your credit card debts and then pay off your credit cards using this loan. Then you can pay back the loan over a longer period of time. Although this is good because the interest rate will be lower than the credit cards, it will most likely take you longer to pay off. Another way is to get a credit card that has a limit that can cover the debts you have, or at least most of them. This way you can put all your debts in one place and pay them off.

Cards for consolidation

In order to consolidate your credit card debt onto one credit card, you need to make sure that you get the right card in order to make it worthwhile. Getting a card with a higher or equal interest rate than you currently have will not make any difference. Instead, look for a card with a lower interest rate that will help you to save money and pay off debts quicker.

0% cards

The best cards to get for consolidation are cards that offer 0% interest on balance transfers. Some of these cards offer 0% for up to one year, which will mean that you will pay no interest on the balance you transfer to the card for a year. This can save you a lot of money as well putting all your debt into one convenient place. For example, if you have a balance of around £3,000 to transfer from 15% cards, with 0% for a year you could save around £200. These cards are especially good if you can pay off the debt within the promotional period.

Cancel your cards

Remember, when you consolidate your credit card debt, it is important to cancel all or some of the cards that you have transferred from. Although cancelling too many cards can hurt your credit rating, it is better to cancel them, as this will stop you from being tempted to use them again and thereby further increasing your debt. If you have 2 or 3 cards with no balance, then get rid of all but one of them so that you have less chance of increasing your debt. If you consolidate your credit card debts correctly then you will make paying your bills easier and save yourself money on interest payments.

Peter Kenny is a writer for Please visit us at Credit Cards and 0% Credit Cards
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Student Loan Debt Consolidation and Other Ways of Dealing With Your College Debts

As a student, you must have piled up quite a number of loans in your pursuit of college education. This worries you to no end as the repayments have become staggering and the responsibility that you now face becomes overwhelming. Good thing you can find relief by merging these debts by way of student loan debt consolidation. This is probably one of the most effective ways in dealing with your debts.

First of all, you have to know the number of your loan, their loan types and the amounts. Then try having your list of prospective lending companies and agents and ask from them the best student loan debt consolidation programs that they can offer to you. Such programs, if you are able to get the right one for your loans, can be the most effective solution to your debt problems.

Those who do not want to get student loan debt consolidation for the debts, they can always try asking for their loans to be cancelled. Such cancellations can be granted, it all depends on the kind of debts that you obtain, the loan amount and the date you are able to avail such loans.  It might be possible that you are able to obtain loans under fraudulent circumstances. If this is the case, then you have the right to have your loan cancelled.

In some cases, the debtor might become sick or disabled, making him incapable of further facing his responsibility of paying up the rest of the loan. He can therefore apply for a loan cancellation. One of the qualified individuals in having their loans cancelled is someone who belongs to the military and other specific groups. Loan cancellation can do well for you if approved. You are able to place yourself in a zero debt situation and be able to have a restored credit.

If student loan debt consolidation and loan cancellation do not appeal to you, there is another way of dealing with your numerous debts. You can ask for a postponement of payments of your monthly installments. This is also known as loan deferment. If you used to be a good payer of your monthly loans, but got derailed because of difficult times, then it is likely that you qualify for this type of debt solution.

Being a student borrower, you are actually afforded many options and ways on which to effectively deal with your debts. Whether it be student loan debt consolidation, cancellation or deferment – one of these best suits your needs. And so it is really up to you to discern and decide which among them you will want to employ.

For more information about student loan consolidation, college loans and private student debts, do visit our Fuss About Loans blog.

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