Debt Help Menu

Thursday, June 11, 2020

The Benefits of Debt and Bill Consolidation


Debt and bill consolidation is the same. When a person owes more than he makes, his stress levels rise, the collection agencies pester him, and he usually ends up running a world of emotional delusion to escape. It seems we can never win in a high-paced world, but the fact is debt consolidation has helped thousands around the world to reestablish their lives. 

One of the most important tasks debtors must carry out to achieve in debt consolidation is keeping away from complications. When debtors have bills that are behind merely because they didn't have the cash to repay the debts, then their stress will build. Some people may go on a binge, spending instead of paying their bills, and procrastinating instead of working to restore their credit. 

These people may believe that after three, seven, or ten years the problem will end since the credit reports remove any pending debts after seven years and any bankruptcies after ten years. The fact is, the problem doesn't go away the problems only get bigger. Yes, it is true: after three years, if you manage to pay off a debt, then the debt is removed from your credit report. In addition, yes, it is true if after seven years you failed to make payments the debt is removed in most instances from your credit report. 

Furthermore, it is true that in many cases, after ten years, bankruptcy is removed from your credit report. If you have the patience to wait this long, can tolerate the hassling phone calls and letters, and don't mind worrying about going to court for this long, then by all means procrastinate. 

Bills and debt consolidation is optional, however, bill and debt reduction is your best bet. You can do this by start paying as much every month on your bills as possible to reduce your debts.


Monday, June 8, 2020

Budgeting For Emergency Funds?




Emergency funds are considered to be a necessity as far as financial security is concerned since it can provide one with financial resources that one can resort to and depend on when an emergency arises such that when one is sick and have the burden of paying huge medical bills, or unexpected home or major car repair. 

When one has no emergency fund, one can be obliged to acquire debt on your credit card that might take several years to repay with interest that would later cost so much more.

However by putting an extra thirty to fifty dollars every month in an individual “emergency savings account” one can be secured with what emergency the future may bring. In doing this, it is recommended that one regards the emergency fund as an additional bill, to be punctually paid each month.

Yes, one can and should budget and allocate the extra money for an emergency fund, as this is very significant when one refers to his “financial future”. Here, the goal is to create savings from budgeting your income; the emergency savings should ideally be equal to at least three months your living expenditures. 

What's important is that you should steadily put a certain amount of money aside, and only use it for real emergencies. 

Not like an investment, the success of one’s long-term savings funds does not really count on the amount of return or interests but on placing a fixed amount of money away constantly and steadily so as to have immediate access to it at all times.

In spite of one’s financial status, the initial step in the process of constructing an emergency fund is by knowing where your money is presently being consumed or spent. 

When one recognizes and determines where one’s earnings are spent, then it will be easy for one to choose and make a decision where to trim down expenses. In other words, the budget.

Budgeting is putting or setting aside money for anticipated and unanticipated future use.  It is here that one sets up a goal so as to save.  So set an emergency fund as your goal.

Checking, savings, money market accounts, and “certificates of deposits”, are great places to keep one’s cash that might be needed on quick notice. 

The amount saved from budgeting can either go to your savings goal, emergency fund, or both.  One could utilize the money saved from budgeting financial expenses by saving half of it to your savings account and half of it for emergencies. This way, you achieve your goals in savings and at the same time put in funds for emergency use.  It’s your choice.

Thursday, June 4, 2020

The Debt Fight – Ways Avoid Bankruptcy


It’s not hard to do.  One day you feel like you have all the money and financial security in the world.  And then it happened, maybe not too quickly either.  You may have had a family emergency, you may have been injured, you may even have got carried away over the years, and regardless it happened.

Debt can creep up on you and you may not be able to catch it until it’s too late.  Many think to themselves, “How did this happen?”  Well, the answer to that isn’t so easy to explain.  The average household is somewhere around $9000 in accumulated debt.  Sometimes, if anything, this debt can seem to be a huge emotional burden as well.  Debt can break families apart; debt can make it seem hopeless for any sort of a future.

There is a practice that anyone can start doing to avoid debt and bankruptcy.  Many people do not realize that debt can so easily be fixed and they can enjoy good credit again.  That is probably because there is no “easy” way.  For starters, even if you aren’t in debt, it is of utmost importance that you start to build a budget or financial plan.  This plan should involve goals for erasing your previous debt.  These goals should be time related and specific.  You must always have a plan to accomplish any goals in life.  

How does financial planning save you from debt?  Well, for starters, it is a plan to keep you from going deeper into debt.  Not only that, but you should also make a plan that you can “live” with that will slowly reduce your debt over time.  You may think of things to include in this plan such as keeping only one credit card.  This will keep you from paying annual fees and only pay the interest off of one single card instead of many.  Another idea to add to this plan could be to pay your credit card bills each at maybe twenty-five dollars over the minimum payment and to always pay ten days early.  These are practices that will not only help you get out of debt and avoid bankruptcy and worry, but they will also help build your credit score at the same time.

If you are to the point that you can’t even afford to do this, there are other financial options and institutions to help you with your debt problems such as debt consolidation and consumer credit counseling services.  Debt consolidation is the process of combining or “consolidating” all your debt into one single monthly payment at a lower interest rate.  You may want to also visit a debt negotiator who will work with the credit card companies to lower your actual owed balance.  Debt consolidation and debt negotiation are two basic options to avoid bankruptcy.  

Another option to avoid bankruptcy is Consumer Credit Counseling.  Consumer credit counseling is usually a non-profit consultation service by creditors that can work to help you get out of debt in numerous ways.  They will also be able to pull up your credit report and work to see just how you got into debt in the first place.  If you have a spending problem or budgeting problem, they may be able to offer solutions to help you fight debt and rebuild your credit.

Either way, you decide to fight debt it is always important to take action none the less.  Always start with a financial plan and that will give you an idea of what you need to do to stay debt-free.

Deciding On A Credit Counselor



Generally, you will find that there is more credit card debt help available than is actually needed. Just flip through the newspaper and you would be surprised by the number of advertisements related to credit card debt help. Every now and then, there are articles on credit card debt and credit card debt help. 

Television channels are full of ads related to credit card debt help. There are websites and magazines that are dedicated to credit card debt help. You also hear about the topic of ‘credit card debt help’ being discussed in parliament. 

There seem to be policies/laws being formed for credit card debt help. All kinds of suggestions seem to be floating for credit card debt help. Everyone, even some of your friends, have a piece of advice related to credit card debt help. All banks seem to offer credit card debt help in terms of various loan types (generally short term loans) at low rates.

So, credit card debt help is readily available and in fact, even unwanted credit card debt help or advice will flow into your ears. However, not every one offering credit card debt help is proficient enough to be able to provide proper credit card debt help that will suit you. 

So you do need to understand some basics about credit cards and credit card debt, before you actually go looking for credit card debt help or before you start helping yourself out with your credit card debt. So you should try and understand how the credit card suppliers bill you, how the interest is calculated on your credit card balance and how your credit card debt grows. Understanding all about APR goes without saying. 

Even if you think that you had gone through all this stuff at the time of choosing your credit card, you should revisit these concepts to make sure that you still know them. If you decide against going for professional credit card debt help, you will need to understand these concepts in even more detail. 

All these concepts will become handy when you are comparing various balance transfer offers (for example). Moreover, the knowledge of these concepts will also be helpful in making the discussions with credit counselors more fruitful. 

So credit card debt help really starts with developing a better understanding of credit cards and other concepts related to credit cards (irrespective of whether you go for external credit card debt help or not).

Money Savings on Food




Thinking of cutting down your expenses on food? Then you should read the following tips. They will surely help you in reducing your food expenses. They are by no means comprehensive but they will be very useful. 

For coffee drinkers

It is a good idea to re-use the grounded coffee once. Using coffee grounds two times or more will not greatly affect the taste of the coffee. It is highly encouraged to do this using a filter that is permanent and avoid the paper variety. Keep the grounds refrigerated until using it the following day. 

For bread lovers

Grocery stores sell bread that was made the day before at a much lower price. There is nothing wrong with eating bread that was made the day before since it still is good to eat. If you have a lot of space in your refrigerator, store a lot for bigger savings. If you will eat the bread, you can defrost it using your microwave oven. Re-heat it every 30 seconds to prevent the edges of the bread from getting too hard.    

When buying from the grocery

Before going to the grocery, you should have already made a list of all the things that you really need. Prioritize basic goods and avoid buying things that you do not really need. Observe the prices indicated on the displays. Remember, branded products cost considerably more than store brands. It is also a good idea to keep the receipt of your previous trip to the grocery and make it a basis for your purchases on your next trip. To have higher savings, buy more of the product. You can always store it in your refrigerator or in the house to minimize your trips to the grocery store.

When eating outside

If you are going to eat in a pricey restaurant, the best time for you to go there would be during lunch. Food during lunch usually costs less and this will be to your advantage. When staying at the hotel on your trips, it is a good idea to check if they also include breakfast in your total room charge. You should also find out where the locals eat. Chances are, they will eat where the food is great and the price is even better. When going around, carry with you some snacks. A chocolate bar, chips, and cookies will go a long way while strolling around. 

Eating cheaply does not necessarily mean eating bad food. Look around and you will be surprised at the options you can choose from. Take time and consider your choices so that you will not only eat a lot but save some money also.       

Tuesday, June 2, 2020

Is There Such Thing As Free Debt Consolidation?



Free Debt Consolidation?

Free debt consolidation - yea right! The fact is, nothing in life is free, which is exactly why you should be dubious of any advertisements that claim to offer "free" debt consolidation. In most instances, you can get a free quote or else a first-time counseling session. And in most instances, the first-time counseling session is to lure you into the company's agreement. 

Debt consolidation is a procedure that can take years to hash out. In most cases, people with bad credit or current debt problems often believe there is no way out. They may go online and find a source that will help reduce their debts, believing that the amount of their debts is lower. Since few companies will lead many to believe this is true, it is important that you know that the debt consolidation companies are only reducing your rates of interest.  

If you own a home and want to use the equity to refinance, you may want to understand that a good number of the Home Equity Loans will actually land you deeper in debt. Once you are bound to the contract, you will find the complications are more frustrating than when you first applied for the loan. 

I brought this up because many homeowners will refinance their homes without looking into the details first, believing they are consolidating their bills. They may feel they are getting something free since the amount on the mortgage appears reduced. However, if you take out a loan to consolidate your mortgage, you are only stepping into another debt. 

Be advised that some mortgage contracts stipulate that if you refinance your home during the contract agreement, you may face penalties, which may include paying off your first home, your second home, and the interest rates included. Therefore, if you are considering debt consolidation, consider the entire picture first-and don't ever fall for the bogus claim that any debt consolidation will actually be free.

Follow The Path (hint "its easier")