Category Archives: Debt Consolidation

5 Ways To Kill Your Debt Forever

debtDebt not only weighs you down but also your mental stability. When the debt increases it brings your motivation down and for that you have to curtail down your debt to the maximum level. To clear the debts for the ensuing year is always a healthy habit. It is not easy to clear off all the debt at one go but there are ways by which you can clearly kill off your debt by some effective measures and methods. It is your choice whether you want to go the difficult path or the easy path. It also has benefits in the long run.

1. Remove isolation – sharing your sorrow of debt with others generates a calm mind. System of support is required to a large extent. Encouragement is what you will get by sharing your vows and many a times the support system offers ready solution for bringing down your debt level. Relief will be in your side when you get the proper solution from various heads. Get ideas if you cannot think.

2. Cutting down on expenditure – expenses which are mounting up day by day has to be cut down and then you will be able to bring down the level of debt. When you know where your money goes you will be able to track down the expenditure. Though it may appear to be laborious but it is an important factor. It is your own finance which has to be checked from time to time. Useless expenditure that you can do away with should be applied.

3. Acting right at the moment – delaying your payment of debt is extremely disadvantageous for the future as the debts will add up and then it will become difficult to bring the level of debt down. If you are unable to save for clearing off the debt store it up in bank for future use and also for a safety measure. Release of the burden off debt when it is just beginning to grow.

4. Generate more income – if the problem is low income and less saving then you can find ways to generate more income. If you already have sufficient income but unable to take save for paying debt then choose alternative source of generating income so that it becomes easy to clear off the debt. If you have spare time, use it wisely to finance for your solution and if that is not helping you you can sell something which you think is not as valuable to you to ease of the burden from your head.

5. Discipline yourself – you can set aside the money for debt each day and then be automatic with it. Be quick to discipline yourself as it will help you in dealing with the debt that you have to clear off. Motivation is important but as opposed to it dedication along with discipline will take you long way. Callous behaviour in killing debt brings animosity with your brain that has to be removed at all levels.

Which Debt Solutions Are Most Effective?

When the only light at the end of the tunnel appears to be an oncoming train of financial devastation, debt recovery solutions may seem impossible. With so many apparent options, what is the right thing to do? The answer is easy: What works best in your situation?

While the answer is easy, it’s a process to identify the best method. Because every situation is unique, only you can decide what will pull you out of this desperate situation quickest and without a bank robbery felony charge.

Pay Highest Interest Rates First?

Some people say to start with the highest finance charge when looking to pay down debt. But what if that is your biggest debt that takes the biggest portion of your monthly budget…like your mortgage?

Even with today’s low interest rates, someone could be struggling with a high interest rate mortgage. After all, a homeowner can only refinance when the bank deems them a good risk. If finances have been bad for the past few years, there may have been no chance for refinancing.

The housing market might show signs of recovery today; however, plenty of people still suffer with a mortgage that isn’t commensurate with the value and could never sell it for what they borrowed. Repossession rates have been high.

If you don’t have a high rate mortgage, or any mortgage, you may want to start paying down debt by reducing extraneous spending and paying extra on the highest interest rate loan or credit card. This could save hundreds of pounds over the course of the loan or debt and allows for the payoff to be measured in months rather than years.

If you do have a mortgage that could stand a lower interest rate, paying off high interest credit cards or loans may increase your chances of a bank approving a refinance. It’s a win/win.

Snowball Debt Payments?

If you find yourself in a situation where your most difficult and pressing debt burden is your highest interest rate, such as your mortgage, and there is no way to pay more than you already are, you may want to consider the debt snowball method instead.

If you have a small loan or bill that you just pay a small amount each month, reduce your extra spending money and apply it to that bill. You’ll only free up a small amount once it’s paid off, but that amount can then be applied to the next bill. The concept of debt snowball is that you pay off smaller items first so that budgeted amount can be applied to increasingly bigger bills until you are able to pay large amounts on bigger debt burdens.

Time for Drastic Measures?

When finances are critical and there truly is no way to budge in any direction, it’s time for some serious action. You might find that holding a big yard sale and selling items on Gumtree or similar websites may draw in cash that is desperately needed.

If you live alone you may want to consider renting a room so you can share utility and rent expenses. If the option exists, you might want to consider giving up a costly apartment and rent something cheaper or even move back home with parents or other relatives. During this time, use other debt solution strategies to pay down debt. You can explore various debt solutions at Consolidated Credit.

Don’t Be Afraid to Ask for Help!

Out-of-control finances may seem overwhelming and depressing with no possible solution. Before throwing in the towel, consider asking for help.

Do you know someone who seems to have good money management skills? Does your place of worship offer counselling or other services that you could utilize free of charge? Does your company offer employee assistance?

Take time to seek help. Sometimes all it takes is a new perspective to generate ideas on how to tackle the problem and develop a game plan.

 

Taking Steps to Improve Your Budget

Proper budgeting should be near the top of any person’s priority list. Elaine McPartland from Consolidated Credit explains that a few simple steps are all you need to follow to keep within your means.

If you’re like millions of Americans, there’s a good chance that money is at least a little tight right now. The worldwide economic collapse caused consumers around the world big financial trouble, with unemployment, reduced hours, pay cuts and increases in costs. As a result, many consumers have turned to credit in order to try and get by until their situation improves. Slowly but surely, you fall further and further behind as your credit card bills increase with your rising balances.

In order to improve your budget, you need to make sure your financial outlook is in balance. Your income, debt, expenses and savings all need to be balanced in order to maintain a healthy financial outlook. So how can you tell if your budget is out of balance?

In general, debt payments should not take up more than 36% of your income. This includes all of your debt payments, including your mortgage. Unsecured debt, such as your credit cards, should use up no more than 10% of your income each month. Your savings should also be around 10% of your monthly income. Following that, you simply need to make sure that your other expenses don’t use up more money than what you earn.

If your debt load is high, there’s a good chance that you are struggling to stay ahead and you have little money left over for savings. In order to improve your financial outlook, you need to reduce your debt load. Short of paying off your car or selling your home, the easiest way to do this is to reduce your credit card debt load. The less credit card debt you have, the lower your minimum payment requirements each month. This can go a long way to improving your budget outlook.

In order to reduce your credit card debt load quickly, you need to implement a targeted debt reduction strategy or look into options for debt consolidation. If you have cash flow available in your budget, you can use that money to make extra payments on one credit card debt at a time until each debt is paid off. Each debt that’s paid in-full will free up more money in your budget for debt reduction. You gain cash flow and momentum in order to eliminate all of your credit card debt as quickly as possible.

If you don’t have the cash flow available or your debts are too high to use a debt reduction strategy within your budget, then you need to reduce your debt using an alternative method.  Debt consolidation allows you to consolidate multiple credit card debt payments into a single monthly payment at the lowest interest rate possible. With low interest, you save money each month on added interest charges and pay less each month to improve your budget. Since the interest is so low, you can actually get out of debt faster even though you are paying less each month.

Tips on where to make a debt help application

Today it is very difficult to meet all the ends. You struggle every day to maintain a good standard of living. It becomes more frustrating if a debt has to be paid off. Hence, certain agencies have come up to help you when you are collapsing in debt.

There are many companies who offer loans to consolidate your debt. You need to apply for the loan and if you satisfy all their criteria, they will pay your debt. Just gather some knowledge about the rates of interest, terms and conditions before you go for the loan.

You can take government’s help to pay back your debt. You have to fill up an application form for the grant of debt relief. You can obtain the grant application form online. After filling the application, print it and submit it along with the photo copies of all your documents. Submit the application on time and get rid of the debt.

How to select the right debt management company

These days there are many kinds of loans that are available. Moreover there is no need to clear off one loan to apply for another. As a result what happens is that most people end with a couple of loans running against their names simultaneously.

More often than not, it becomes quite difficult to keep a track of all these loans and as a result people end up deferring in their payment. Managing loans become a really tough task. That is exactly where a debt management company steps in. In case you have accumulated debts, a debt management company comes in to negotiate with the lending institutions on your behalf.

So how do you really choose the right company? The best way to do so is to take the advice of friends and family who have probably taken help from one of these institutions. Before making a deal with someone, ensure you do your own research as well.

What is debt stacking?

Finance, Loan, Debt stacking,Debt-Stacking is the way to reduce ones debt in the shortest time possible with the same amount of money which is going out as repayment of debt each month. The principle of debt stacking implies payment of one debt after another but not both at the same time. In other words it can be stated as after payment of one debt utilizing the amount to be used to same debt at a later date for the payment of another debt. The following steps would enable a person to perform debt stacking better:-

Do not indulge in creating new debts.

Make a list of all the existing debts and arrange them according to their earliest clearance i.e. which one can be cleared of early.

Make Payments for the minimum amount required on all the debts until the first one is cleared.
Finally, after few years when all the debt would be cleared the saved interest on the debts paid off can be invested.