Points of Consideration Dealing With Debt Consolidation Loans

If you’re looking for a good debt consolidation loan you have a few things to consider. Even if you to need one you still want to be careful to examine and research your potential provider of the loan. There have been cases reported where debt relief organizations stealing installments to get themselves out of debt, and not paying the borrowers creditors.

That would leave you in bad financial shape without any of your debt be cleared, so the best way to combat this is knowing that they have a financial trading number. The person your talking to about your loan ought to be aware of that. If they aren’t, then simply reject any offer they give you.

The next order of business if working out exactly what this will cost you for them to originate your loan. Many of these lenders will under-handedly add on a percentage to your payment amount. Other more devious companies may add more. An example is if your monthly cost is $300 around half of it goes to your debt management company instead of toward your debt. Imagine spending double the actual time is should to clear your debts? Always read the fine print and always ask about the fees and services.

While most companies that offer debt consolidation use some of these techniques, not all do. Some will require their up-front fees or totally wave them if they can get if from the creditor. The best solutions are always to ones that don’t cost you. If you locate a reputable debt management company who will get the fee from your creditor it’s far better for you. You won’t clear your debts in less amount of time, but the monthly payments will be lower.  Always ask about the fees. No answer, no deal.

When you talk to any particular company about finance, you don’t ever want to seem desperate. Don’t let them know how much you can really use the money. That gives some license to take advantage. Speak clearly and be polite. Let them know what you’re interested in is a consolidation loan. Also make them aware that you are currently in contact with several loan companies trying to nail down the best deal.

These shrewd little hints could keep you safe from the ravenous wolves, and able to get the best terms for your situation.

Debt Consolidation Works Like This!

Most people are tempted by loans that carry lower interest rates being marketed by many various insurance providers. They fall beneath the pressure of repaying them along with the various ‘hidden charges’ that came with them. This resulted in people being entrapped into the dark world of debt, racking up lots of debt for interest costs and fees.

Know this, that debt comes at you in many forms. People seek property loans, credit card loans, business loans, and more. Once you miss a payment here and there the whole situation comes down like an avalanche. Next thing you know – foreclosure.

Debt consolidation can rescue people when done right. It is basically taking out a new loan to pay off the existing debts. All your debts get put onto one easily managed monthly payment paid to one company. It can also get you some better interest rates. It will generally take several unsecured loans and roll them into one secured one. This debt will have collateral involved so the lender has less risk. That’s why the lower interest rates.

It’s easy to obtain a loan but much harder to ensure the payments. The market today for businesses is really uncertain. People may predict good financial times and then things turn suddenly the other way. Whenever the economy takes a bad spill, that’s when people get behind, and creditors start with the phone calls and threats.

There is a variety of companies involved with debt consolidation on the market. There are some very legitimate firms with more than adequate expertise in this line of work. They have good insight into debt related issues. These companies are able to help their clients avoid the disasters that can come from too much debt.

Debt consolidation actually carries some good benefits. Your finances become much easier to manage, because now there’s only one payment to deal with. Plus you probably have a lower interest rate and more cash each month in your pocket. Most of the late fees you carried before have most likely been dropped when your debt consolidation company negotiated on your behalf.

Having the options that many companies offer for debt consolidation, people can breathe a big sigh of relief, take a load off, de-stress and enjoy feeling free again. Debt can be a very heavy weight to carry, but thankfully there are programs out there to give you new life when you need it the most.

Changing The Tide of Debt in Your Life – The Battle Plan

In life, debt can be swirling all around you, like the water in the ocean. Does that mean that the tide of debt in your life is necessarily bad? Not at all. Like water, debt can help us get things done. We go into debt in order to get a college education, and we go into debt in order to pick up a house. We even go into debt in order to pick up a great car that will get to work, home, and everywhere else in between. There’s a lot of good that can come out of debt.

Yet like water, the tide of debt can turn against us, threatening to wash away everything that we’ve grown to love — even ourselves. When you’re in debt, it can feel like the world is against you, which means that it’s a lot harder to get things done. It’s a lot harder to prove to your friends and family that you are good with money and social approval does have a role in determining our self-worth. We feel bad when people don’t see us as responsible adults.

Like most things in life, you can change the tide of debt in your life, but it won’t be easy. Of course, all of the things that are worthwhile in life are rarely easy. Let’s build you a battle plan, shall we?

First and foremost, you are going to have to face the numbers. Not your friends. Not your family — you. It’s your debt, and despite the fact that there really are circumstances that are often out of your control. You are the one that is going to have to take responsibility for your debt. You are the one that’s going to have to figure out how to make the most out of your finances, even when everything feels upside down. You are the one that’s going to have to push and make sacrifices in order to get things done. If you aren’t willing to make the changes, no one around you is going to be able to force your hand — it’s your debt. Now, we know that a lot of guide swill let you get away with feeling sorry and feeling bad about the situation that you’re in, but we’re not really ones to sugarcoat anything. It’s your debt, and only you can fix it. Only you can make the choice to work your battle plan to the fullest.

So, what do you think the next step is? You need to get help. Even if you only go to a credit counselor in your area that educates you on the ins and outs of personal finance, that’s better than anything. A lot of people really don’t have a solid education in personal finance, and the school system is definitely to blame for that. We’re not saying that there aren’t social, environmental, and even financial factors in the way of you having a debt-free life. However, you can’t rest on those laurels so to speak when it comes time to fix the problem. You can’t blame the media because they sent out cute commercials and nifty postcards to your door about the latest credit cards. By taking those credit card offers and later spending the credit card as you saw fit, you agreed to the terms. (more…)

Can The Urge to Spend Money Ever Be Cured

When it’s time to spend money, are you really ready to do so? Have you thought about all of the angles involved with you spending that money, or are the siren calls of the price tags just too great for you to ignore? If you’re like most people, you probably just go out and spend money. In small amounts, there’s nothing wrong with that at all. It’s your money and you’ve worked for it — why should you get all bent out of shape if you want to shop till you drop?

Actually, there are more than a few reasons to be a little concerned about your spending. You don’t want to get to the point where you are spending so much money that you never really think about other things that you want in the future. Sure, you’ve got the bills paid from month to month, but what about your savings? Does money only have a short stay in your home, like a guest that needs to hit the door in a few days before they become a burden? Or is money simply another silent member of the family, reliable and trusting? The role that money has to play in your life is very important, and you shouldn’t overlook it at all. You just need to step back and see the role that money really has to play in your life.

Can the urge to spend money ever be cured? We think it can, because at the end of the day no one is ever going to fight harder for your goals and dreams than you will. No one is ever going to want your dreams to come true more than you will. A lot of people can be supportive and wish you well, but very well people can actually do what it take sot make your dreams come to life. You have to sit back and think about what you really want to happen.

Do you want a house? What about a car? What about retirement — you know, that phase of life where you aren’t working and you don’t have to answer to anyone? That’s a great way to end life on a sweet note, don’t you think? It’s a lot better than thinking you are going to just work for the rest of your life. There has to be a light at the end of the tunnel that isn’t a speeding train.

If you don’t get a grip on your spending, you can easily go into debt. We can tell you from the experiences that our friends, family, business associates and even random contacts have that getting out of debt is a lot harder than getting into debt. It’s easy to spend; it’s easy to sign up for credit cards that will promise you the moon and the stars. They often hit you with high interest rates the moment you’re late, and fixing a credit score is a lot harder than establishing good credit from the very beginning.

A quick glance over the things that you buy might relate some new lessons to you before you know it. For example, are you buying new things because you’re stressed out? All of the new dresses from the sales rack or all of the watches from the men’s department aren’t going to make your life better. You cannot spend money to overcome emotional problems. Unfortunately a lot of popular media in the world insists that we can do just that, and consumers end up paying the price for those mistakes.

At the end of the day, you have to decide what type of consumer you’re going to be. But you don’t have to make these decisions all by yourself — you can always get the help of a professional in order to really make sure that you are on the right track with debt and spending.

Have you ever tracked your spending? A lot of people think that they know how much they spend, only to be shocked when someone else crunches the numbers and finds out that they really aren’t saving as much money as they should.

Does saving have to be hard? Not at all — in fact, many savings accounts have automatic withdrawal. The moment your paycheck hits you can always set up a trigger to automatically move part of the money into your savings account. This is something that can be changed in your direct deposit so that you aren’t going to have to risk overdraft fees just because you’re trying to save money — that wouldn’t be right or fair at all!

So, the takeaway lesson here is that when you’re really ready to live a better financial life, you can — the urge to spend money needlessly really can be cured!

Don’t Leave Your Options On the Table

If you’re in debt, then it does without saying that you’re probably pretty stressed out. You’re probably wondering what you can possibly do to get out of the situation that you’re in. You might even be worried about not being able to handle everything on your plate, and that’s okay. You don’t have to handle everything on your plate at once. You just need to prioritize and then attack the problem in pieces. Everything can be overcome with time and patience, and your debt problems are no exception.

When you’re in debt, you might not want to actually look at your debt by the numbers, but that’s really what you have to do. It can even be a pretty emotional process as you have to dig through all of your bills, everything that you owe someone else. But it’s necessary in order to really know not only how much you owe, but who you owe it to. Sometimes when the debts pile up and switch hands through debt purchases, it can be even more stressful. We start thinking that there’s really no way that we could ever get out of debt, but that’s just negative self talk that’s going to push you further away from your goal.

If you need a word, here it is: options. You need to just stop and look at your main options.

If you don’t have a lot of debt, we can tell you that bankruptcy really isn’t your best option. For one, the hit to your credit is so long lasting that you won’t be able to really achieve any of the goals that you have on the table, like buying a house or even a new car. Unless your debt problems are caused by medical bills, we definitely suggest avoiding bankruptcy if you can really help it.

That leaves debt settlement and debt consolidation. These are good options for people that have small to moderate amounts of debt that want to clear it up as fast as possible. You don’t have to be super rich to take this option either — as long as you have regular income you are going to be able to take care of your debt over time and get it paid off.

Does that mean that you need to call up Chase Bank and start making demands? Definitely not. For one, the credit card companies really have no incentive to make a deal with you if you’re just on your own. IF you are really thinking about debt settlement or even just debt consolidation, you really do need to get an advocate on your side. You need someone that ahs done the negotiation process a thousand times and thus are not afraid to get dirty if that’s what it takes to win the negotiation round. You need someone that isn’t afraid to ask tough questions or to remain firm. You shouldn’t beat yourself up if you’re really not as good of a negotiator as the pros. Remember that you don’t work with the credit card companies day in and day out, but the best debt consolidation experts do all of the time.

Debt consolidation brings a lower interest rate, which means that you will have a lower monthly payment. This means that you will have better chances of actually paying your debts on time. This in turn improves your credit score; because you’re actually paying your accounts rather than just assuming that you have no way of actually taking care of the problem. That’s a hard pill to swallow and we suggest that you try to avoid it as much as possible — getting help with your debt is much better than just assuming that you have no recourse at all.

In order to pursue debt consolidation, you are going to have to let someone else look at all of your debts in order to come up with a battle plan. It’s very important that you’re as honest as possible. If you hide debts or mess with the numbers, you will essentially be giving your debt specialist an uphill battle when it comes to getting your needs handled properly. Anything that the credit card companies can use to stall, they definitely will. There’s no reason that you should have to put up with that, so make sure that you give the right information the first time.

Is it a tough road to travel? Definitely — debt puts a lot of stress on you and your family but you don’t have to walk down the road to a debt-free life on your own — why not pursue professional debt consolidation today?

Credit Cards Are a Tool – How Sharp Are Yours?

It’s time to end the tension between we the consumers and the credit card companies. Well, to some degree. We’re not saying that credit card companies are always right and consumers are just plain wrong. However, we are a bit concerned when people feel that credit cards are evil. We do get a bit more concerned when we find that people feel that credit cards should be outlawed (yes, we’ve seen it said online), and we’re even more concerned when people feel like they would just be better off going cash only.

There are so many mistakes here that we don’t even know where to begin. So let’s go ahead and start from the top: credit cards are just a tool. Tools can’t be good or evil. They’re neutral entities in the great sea of life. So when you assign them an alignment towards good or evil, you’re really making a big deal out of something that really isn’t. Do you get mad at the hammer when you accidentally drive it through a wall, or do you assign blame where it belong s — on your shoulders.

Deceptive advertising is a very touchy subject, but we believe that there is some level of responsibility that the credit card holder needs to take as well. It can’t just be a matter of blaming the credit card companies and expecting to get bailed out. Wall Street gets bailouts, but that doesn’t mean that you need to run in with your hand out. If you’re having debt problems right now, it’s important to look at the root of the issue rather than think a bailout or any corporate windfall is going to make your true credit issues go away.

The reason why most people feel that credit cards are a bad idea is because they’ve gotten “burned” in the past. However, when that shiny credit card comes in the mail, did you really read the fine print or even attempt to? In the digital age, there really isn’t any excuse for ignorance anymore. If you’re not sure about a section of a credit card’s legalese, you can definitely find someone to answer your questions and concerns. Is it always going to be free? Not always. There will be times where you will need to get serious legal assistance in order to know what you’re getting into.

In its simplest form, a credit card is actually the start of a contract. In order to use the card, you’re agreeing to be bound by certain terms. Generally speaking, this is to pay the credit card company back for them letting you spend their money. If more people thought about credit this way, their debts would be smaller. A lot of people have the assumption that credit cards are for frivolous purchases that just can’t wait, and that’s not the case.

It’s a tool, people. How do you want to use your tool? That’s going to be the real question that you should answer.

We’re not saying that you can’t ever treat your sweetie to a romantic dinner on American Express, Visa, or MasterCard’s dime. However, we do suggest that you keep those things to a minimum. You don’t want to wake up and find that you owe a lot of money for something that isn’t really going to get you ahead in life. While that’s not a pleasant or even a popular viewpoint to take, we think it’s necessary.

The bottom line is that we all get 24 hours in a day to create the life that we ultimately want. What you do with your time, money, energy and spirit matters. If you want a great life, then you need to continue seeing credit cards as a tool. Look back on your purchases — are those purchases sending the message that you see credit cards as a tool, an evil, or a crutch?

When you’re charging everything to your credit cards to make ends meet, that’s when you’re building up into a problem that could overwhelm your family for a long time. Credit problems don’t just go away – you can’t just hide and hope that they will stop pursuing you. If you refuse to pay the credit card companies back, you are breaking your initial contract.

This is another arena where feigning ignorance of the rules is unlikely to get you any special treatment. For one, you need to understand that if you use their credit card, then you will be bound by their rules. It’s really as simple as that. If you have a problem with a credit card company’s terms and conditions, then you are always advised not to charge even a penny to their card. Borrowing even a dime of their money really isn’t the way to go.

If you want to use credit cards as a tool to pick up travel reservations, that’s one thing. If you want to use it as a way to treat friends and family special for a night, that’s not a bad idea either. However, when you’re maxing out all of your credit cards, that’s a bad sign and you should definitely try to avoid that as much as possible.

Remember that credit cards cannot force you to do anything — they cannot make you behave in one way or do things a different way than you already do. You might be swayed by the idea of reward points, miles, or free hotel stays. However, those are things that you have to decide are worth it. If you’re not into that at all, then you will really want to make sure that you use your credit cards sparingly.

The road ahead is long, but it doesn’t have to be an impossible road. Make sure that you are tracking your credit card spending and making sure that “treats” are low on the list and convenience is moderate. If you want to book your travel plans on your credit card, that’s perfectly fine — but do mark sure that you can pay that card off in full when the bill comes due. That’s the best way to stay out of trouble from the start!

What You Should Consider Before Getting A Loan

There may be a number of reasons why you need a loan. These reasons can range from needing a short term cash fix, through to taking out a mortgage loan on a home. Whatever the reason, however, it is necessary to think through a number of key factors involved in taking out a loan. From understanding the types of loan available, through to whether or not you’ll be able to repay the loan within a specific amount of time, these factors should be considered alongside a healthy degree of caution over whether you need a loan or not.

1 – Types of Loan

Loans are typically divided into secured and unsecured forms. Secured loans are made against an asset such as a home, and have low interest rates, but may be spread out over a long period of time. Unsecured loans, by contrast, are not secured against an asset, and have higher percentage rates. The amount of interest on a loan is set by the lender, and is often relative to national base interest rates set by the Government.

Most people that want a short term personal loan do so with the expectation that they will have to pay a lot of interest. This is the case for payday loans, which require repayment within a month to a few months of the loan being taken out. Other loan options include unsecured guarantor loans, which are loans where the security is provided by a third party for borrowers with poor credit histories.

2 – Duration of Repayments

Perhaps the most important issue to consider when taking out any kind of loan is whether or not you’ll be able to pay back the principal of the loan, and any interest. While it may be tempting to take out a short term payday loan, the rates for these can be as much as 4,214%. Similarly, a long term mortgage loans represents a significant commitment to making a repayment. You need to know that you will be in a position to make regular repayments.

3 – Inflation and Interest Rates

It is also worth keeping an eye on inflation and interest rates. The base rate of interest is currently set at 0.5% as the Government try to curb inflation by encouraging investment. If you have a tracker rate mortgage, you will be able to benefit from this low interest rate. However, you may be hit if you make any investments alongside a loan, which depreciate with low interest rates.

4 – Credit History

The health of your credit history will affect whether or not you are eligible for a loan. Problems with repaying credit card bills, or previous defaults on a loan will result in you having a low credit history, which typically means that a lender will be uncertain about giving you a loan. In this case, you can consider the option of finding a guarantor to cover the security on your loan.

5 – How Much You Need the Loan

Always think carefully about how much you actually need a loan. Is it for an emergency, or for a long term home or car plan? Is it better to save up the money, rather than get into debt, or have to pay high interest rates? The difference between getting a short term cash payment and waiting to save should also be considered if you do decide to apply for a payday loan.

Debt Relief Tips: Ways to Handle Your Financial Situation

A lot of people today are stuck up in a deep financial problem mainly caused by their uncontrollable debts.  If you are one of them, maybe it’s just about time that you consider the following debt relief tips:

1.    Talk to your creditors. In case you have an emergency expense and you can’t pay your monthly amortization for your home or car, it is best to inform your creditors about it.  You can either call or visit your mortgage provider and discuss with them your predicament.  This may also work if you can’t pay your credit cards bills on time.  You should act as fast as you can because once your account is transferred to collection agencies, it will already be difficult for you to negotiate.

2.    Learn to prioritize. This is a very doable tip.  You need to learn to identify your debts that need immediate attention like those that have very high interest rates.  There is also a need for you to prioritize your secured loans as failure to repay these debts may result to foreclosure of property.  This often applies to home mortgages or car loans.

3.    Create a budget. One of the many reasons why many people are having problems with their finances is that they ignore the important process of budgeting.  If you will include this in your monthly practices, you financial situation will surely improve.

4.    Sell a property. If you can’t keep up with the monthly payments of your car, for instance, why not sell it?  This way, you can repay your loan and avoid demerits on your credit record.

5.    Consider a counselling service. Budgeting is not as easy as it seems, especially if you’re not used to it.  If you find this debt relief solution difficult, then you might want to approach a debt counsellor.  A debt counsellor can help you come up with an effective budget.  There are debt counsellors that do not collect any fees and there are also those that charge a professional fee for the services that they render.

6.    Consider debt negotiation. This is a process wherein you negotiate with your creditors and if you’re successful negotiating with them, you can lower the principal amount that you’ll be paying monthly and even the interests.  There are also debt negotiation companies that can help you out.

7.    Consider filing for bankruptcy. This is the last debt relief solution that is to be considered.  In case you’ve already tried all debt relief options, but nothing happened, then that’s the only time to go for this option.

Debt Settlement: Five Things You Should Avoid

Debt settlement is a good remedy to eliminate your debts, but not everyone is qualified to avail of this option.  This is actually a better debt solution than filing for bankruptcy, but if you want to give it a try, you have to avoid the five things in order for you not to get caught in a bigger and more serious financial problem, and they are as follows:

1.    Debt settlement companies with exorbitant fees.  You have to watch out for debt settlement companies that collect excessive fees for their services.  A good company usually base their fees on the total amount of the debts of their clients.  For you to land on a good debt settlement company, you have to really do first some research.

2.    Not jotting down debt settlement conversations.   There will be times when you have to communicate with your creditors through phone.  For you to be sure that everything that will be agreed upon will be followed, you have to write down every single detail.  After which, make a copy and send it to whomever you talked to.  This way, your creditors will know that you are serious with debt negotiation.

3.    Settling your fees before signing a contract. Many people tend to forget that they should sign a contract first before paying anything to a debt settlement company.  This is a risky move as the company may not fulfil its promises and that the results may be unsatisfying.  Do not rely on verbal agreements alone.  It is important to put all your agreements into writing and make sure you review them thoroughly before signing it and before making a payment.

4.    Approaching a non-trustworthy debt settlement company. Before choosing a settlement company and if you’re going to do the settlement on your own, you first have to check its records with the Better Business Bureau just to make sure that you’ll be dealing with a trustworthy company that can help you resolve your debt problems.

5.    Immediately agreeing on proposals. Agreeing on proposals so quickly will give your creditors an impression that you are willing to pay any amount.  As much as possible, take your time in making decisions and do not always say yes to every proposal they lay down in front of you.  If you want to know how you can possibly get a good debt settlement deal, you may join forums or discussion groups and get inputs on what you should do.

Different Means to Eliminate Credit Card Debts

Quite a number of credit cardholders these days are having a difficult time keeping up with their monthly repayments mainly because of our current economic condition.  The daily expenses are on the rise and so are the prices of major commodities, but the salaries of people belonging to the middle class are going down.

This greatly affects individuals who are used to having a luxurious life and have not really experienced financial problems.  It was easy for them to purchase plasma TVs, laptops, home theater, luxury cars, and many expensive things that were easy to obtain years before the economic recession began.  However, the economic downfall has not stopped them from using their credit cards as they have to maintain a certain degree of lifestyle, and what they didn’t realize is that they’re slowly being pulled down by their mountainous debts.

If you are in a scenario like this and you want to put an end to your debt problem, here are a few means to do it:

1.    Try availing of the balance transfer option. This is probably the easiest way to eliminate your credit card debts.   Look for a credit card provider that offers low interest rate credit card and transfer all your balances to it.  By doing this, you will only be monitoring one credit card bill monthly at a reduced amount.

2.    Settle 50/50 of your credit card debts. You may choose to settle 50% of your total monthly dues at the start of the month and the other 50% on the last week of the same month.  This will allow you to pay off your credit card debts much faster and you will also be able to reduce the interests.

3.    Stop swiping your credit cards. When you’re in the process of cleaning up your credit card debts, it is important that you don’t use your credit cards anymore, but if this is not possible, simply manage your spending properly and responsibly.  Purchase only what you need and ignore your wants.

4.    Allocate a bigger amount on your credit card with the smallest balance. By paying off first your credit cards with the smallest balance, you will be able to eliminate your credit cards one by one.  However, you should not also forget to pay the minimum amount for your other credit cards.  Once you’ve eradicated a credit card or credit cards from your monthly obligations, practice self-control and refrain from using it again.

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