Does Debt Really Take Time to Clear?

Any quick search on Google will lead you to a lot of frustration sometimes, especially when it comes to the world of credit. You’ll see a lot of advertisements for clearing your debt s fast as 30 days from now, while others will tell you that your credit card problem will be erased in less than 72 hours.

Those offers sound pretty good, but unfortunately that’s all they really say. If you’re not careful you’ll find yourself facing even further trouble as most of these fly by night operations charge a pretty penny to get you to sign up with them. It’s a lot of wasted time, a lot of wasted money, and there are better options out there.

Let’s go back to the original question: does debt really take time to clear? That depends on the method that you choose. You can take roads that shorten the overall time it takes to pay back your debts, but you’re not going to see a massive change overnight. In fact, you will want to take the time to really heal not only your credit score, but the way you see credit in the first place. Personal finance skills are the key to a rewarding life, and if you’re not careful with your budget you’ll end up making your life a lot more difficult than it really needs to be.

The best thing that you can do for yourself is to see whether or not debt consolidation is an option for you. For starters, debt consolidation does exactly what the name implies it does. It rolls all of your eligible debts into one low monthly payment with a much lower interest rate.

In fact dependent upon your age, you may even be eligible for an interest rate that is fixed for the rest of your life. Anyone consolidating debts over the age of 55 have access to payment free mortgages which can be used to clear their liabilities. In such scenarios equity release is used for debt consolidation purposes & removes the necessity for future monthly payments, thus alleviating the family budget.

Real debt consolidation companies have a lot of experience when it comes to working with the credit card companies. While credit card corporations hate taking a hit when they could be getting the entire debt from you, they also realize that it’s a lot better to get at least part of the money than to have to forfeit all of it. If you declare bankruptcy, they can’t technically go after you if you have no assets that can be seized. Since they want to avoid forcing you into bankruptcy, many credit card companies are actually more than happy to negotiate.

So why don’t they negotiate with you? Well, first and foremost they know that you are more afraid of them than the other way around. They know that you’re going to be afraid and stressed out, so they go ahead and try to get as much as they can from you — including the late fees, accrued interest, and any other fees they can legally stick you with. Is that right? No, and that’s exactly why you need a strong financial advocate on your side!

When you’re ready to move forward, the choice is easy — debt consolidation can really help you pay down debt faster and move closer to the debt free life that you deserve!

Does Debt Have to Keep You Up at Night

If there’s one thing that we’re all fighting, it would have to be debt. Debt is one of those things that can really sneak up on you, so if you are just now realizing that you’re carrying a lot more debt than what you really should, you aren’t alone. A lot of people are finding that they’re really carrying around just too much debt than what they can afford. Of course, it’s easy to blame the media and even the lenders for having such lax standards in the past in terms of approving people for credit. But it’s important to take some responsibility for your spending. If you don’t take responsibility and you find that everyone else is at fault but you, you will just go back to the same patterns that you engaged in to get into debt in the first place.

Of course, we can’t be terribly judgmental about this, because everyone’s debt story is going to be unique. If you have a lot of medical bills, then that really can’t be helped. On the other hand, if you know that you’re primarily in debt because you were out shopping and buying things that you don’t need, that’s an incredibly different story. Debt is definitely relative, but all debt can really hurt you if it spirals out of control.

There’s no reason to feel like it’s impossible to get out of debt, and if your debts are keeping you up at night, you really just need a good plan to change things for yourself. No one is going to care about your debts more than you do. But staying awake at night is only going to hurt your body and make it harder to heal in the long run. So if you really can avoid getting worked up, you’re going to be in a much better position than someone that isn’t thinking along these lines.

It’s important to realize that you don’t have to keep debt to yourself. Many of us are still operating in the world where we think that we can’t talk to our friends and family about debt. If you’re in a family structure right now and you’ve been hiding your debts from your kids or your spouse, it’s time to come clean. Even though they might be a little upset since you’ve hidden it to yourself so long, there’s no reason for them to just gang up on you. They can understand that debt is a pretty serious topic, and it means that you have to take it seriously. So you may actually have a lot more support for your situation than you think.

But it doesn’t stop there. Your local council in the UK can actually help you clear up some debts, as they have experience with this type of thing. UK finance is a little different than US finance, but the basic points are the same.

We also have plenty of debt repair and financial help tips on this site, so make sure that you look around!

Building Your Financial Philosophy, In a Nutshell

We are a nation at war, but you might be shocked when you find out the enemy is actually us. Yes, we would go and whine about the rise of the media enticing us with everything from diamond necklaces to flashy new cars. However, we still have the power to resist those things. We have the power to resist social pressure. But when you feel lost and confused and everyone seems to be having fun, you naturally might want to follow suit.

Resist, friends. Resist and resist hard. That type of thinking leads to a lot of spending, which leads to a lot of debt, which naturally leads to a lot of regret and shame. It’s better to actually make sure that you’re doing everything you can to follow a more righteous path – the path of the conscious spender, the path of the conscious saver, the path of someone that knows exactly where they’re going without even having to look at the map. Why? Because the roadmap is in their hearts, minds, and souls. When you believe in something that deeply, there’s nothing stopping you from making big things happen. So where are you going to go from here? You’re going to create your financial philosophy.

You see, we have a roadmap of our very own, but it’s customized to fit our situation. You might want different things, and we don’t fault you for that at all. You just need to make sure that you can pull off your hopes and dreams. Having a blueprint is nice when it comes time to add someone new to your life. You can openly discuss your thoughts about the future with confidence, knowing that even if things don’t work out — your financial future is secure.

Have you ever looked at someone in public that seems to be so carefree, even when the market is uncertain? You can probably bet the farm that this is someone that has their financial blueprint and they know without a doubt where they are going. You will gain that type of confidence too.

Speaking of social conditioning, you shouldn’t be surprised if your friends suddenly get a little chilly knowing that you’re trying to do something special with your life. You will be shocked at how many people tell you that you’re paranoid, or you’re overthinking things. These will most likely be the same people that watch their entire lives change because they have no emergency fund, and no other savings to speak of. (more…)

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?

When does debt consolidation make sense?

If you’re one of thousands in the UK looking for a way out of debt, you will surely have heard about debt consolidation. There are many good reasons for this: Debt management plans involving debt consolidation have become an important tool to curb bankruptcy and put debtors in control of their finances again. The reason why debt consolidation has proven so particularly successful is because it is, at least on paper, a strikingly simple procedure: Rather than having to deal with a plethora of creditors, your various payments are consolidated into a single one, payable to a debt management agency. As part of the process, monthly instalments tend to be lower than before and stretched out over a longer period of time. Ideally, you will find yourself with more time at your disposal to focus on your work and family and you will no longer need to worry about creditors hassling you and there not being enough money at the end of the month for even the most basic purchases.

And yet, debt consolidation is anything but a panacea. Although there are cases, when debt consolidation can lead to a lower overall debt burden, this usually isn’t the case: Most creditors wish to be compensated for extending the lease of their loan and this means having to pay off more overall.

There are, therefore, very clear guidelines as to when debt consolidation makes sense and when it doesn’t. Here’s an overview of the most important points to consider before speaking to a debt consolidation agency:

Debt consolidation does not make sense …

… if your current income situation is highly volatile and if it doesn’t look as though it will substantially improve any time soon.

In cases like this, debt consolidation can mean that you are merely running up more debt by extending the lease of the loan, while not being to pay it off anyway. If you know that you cannot meet your obligations, you should seek serious bankruptcy advice and perhaps even opt for a controlled personal insolvency instead.

… if you can actually meet your obligations on the basis of the current payback scheme.

Debt consolidation is not a financial tool to be toyed around with or to be applied casually if it seems convenient. Rather, it offers help for those in serious debt trouble. If you can meet your obligations, why try to find a new solution which may actually end up with you paying more than previously agreed to?

… if it distracts you from paying off your debt.

Because debt consolidation usually means having to pay lower monthly instalments, you will typically have more money to spend on entertainment and leisure. Whether or not this is a good thing depends on your attitude to spending: If you can trust yourself to put the money to good use by putting it on the bank, for example, then this makes sense. If you know you’ll instead waste it on a night out with the lads, then you should reconsider whether debt consolidation is really the right choice for you.

Debt consolidation, however, makes sense …

… if you have a stable income, but just not enough money to pay off your current monthly instalments.

In this case, changing your current debt plan to meet your financial possibilities is a great option. Creditors will naturally be interested in avoiding you going bankrupt and will be likely to agree to a change in plan if this means you’ll be able to pay them back in full.

… if you’re running a serious risk of going bankrupt.

Debt consolidation can keep you from having to apply for insolvency and allow you to maintain a strong credit rating. If this means having to pay off more overall, then that is certainly a benefit worth paying a premium for.

… if you have multiple loans.

It is by no means unusual for many households to have piled up debt with many different sources. The disadvantage of this lies not only in the actual money owed, but also in the fact that having to deal with a plethora of creditors is a cumbersome process wasting a lot of valuable time and resources which could be better spent thinking of ways to improve your situation. Debt consolidation can take a considerable weight off your shoulder and create a situation where you can actually keep track of your finances again.

… if you believe a renegotiation can get you a better deal.

In some cases, debt consolidation can actually lead to a lower debt burden. This is by no means a given, but there may be reasons to believe you stand a chance.