Tuesday, October 28, 2008

You want to Solve Your Debt or Not?

So, how to do that and how its works?

Now's the time to devise a spending plan that reduces your debt and sets you up to pay on time, every time. If you're having difficulty making payments, be proactive. Call your creditors and negotiate to keep your accounts current and from being reported as delinquent or "bad debt." You can ask for reduced monthly payments or even change due dates to balance out your monthly bills.

The same strategy can be used for fixed-loan payments. Remember, though, that this is a short-term strategy. You'll pay more interest to extend the repayment schedule, but it allows you to stay current and save your credit rating. Use the extra money to pay off debts one at a time, gradually increasing payments to other debts.

Deal with any collection accounts. Unpaid collections are worse than paid collections. You can negotiate a payoff settlement that reduces your bill, plus demand that all derogatory remarks are removed from your credit report or at least reported as paid in full. Be sure to get all agreements in writing before sending off your payment.

Ps: Sometimes, you will feel hard. But its better you try it than not doing anything right?

Saturday, October 25, 2008

Debt, Credit and Solution

This is 5 Step that can help you improving your Credit Rating.

1. Order your credit reports.
2. Examine your reports carefully.
3. Double-D strategy -- dispute and document.
4. Solve and dissolve debt.
5. Add stability to your credit file.

Ps: Please think without think how you want to waste your money. This is nice solution that might be can help.

Monday, October 20, 2008

2 Reason That Cause You to be a Debt Disaster

First : Failing to alert creditors about a financial hardship

You heard the rumor: Layoffs are coming to a department near you next week.

Don't wait until it happens to worry about how to pay your bills. Do some damage control right away.

Try this: "The best time to negotiate is before the problem spirals downhill," says Cunningham. Call the credit card company and explain the problem you're about to have. Ask if they could temporarily lower your interest rate or extend your payment deadline. Some issuers have in-house help programs that provide such short-term services to customers.

2nd : Thinking of 'budget' as a dirty word

The word may call to mind tedious self-trickery meant for those with low incomes, but everyone can benefit from deciding on certain amounts for spending -- and sticking to the amount. It also makes sense to budget for known future expenses, such as quarterly insurance premiums, college textbooks and rent. Not saving up in advance means you'll have to charge expenses or cut into funds set aside for necessities. Budget these fixed costs while you can handle small financial pinches.

Debt Plans

Break free from the cycle of debtwith the help of the debt specialists!



Friday, October 17, 2008

Use Home Equity Loan Method

This is one worse way you can make and try if you want..

Use a home equity loan to pay off credit-card debt

Lenders love to tout home equity loans and lines of credit as a way to pay off your plastic. You'll even see some personal finance journalists parroting the company line that such loans make sense, because home equity rates are typically lower than the interest rates you'd pay on your cards -- and the interest is usually tax deductible.

Americans have been taking this advice with a vengeance, cashing out more than $2 trillion of the equity in their homes between 2002 and 2005, according to SMR Research and Freddie Mac. Comparatively low home-equity rates, and stubbornly high credit-card rates, have convinced millions that this is the way to go.

The only way this maneuver really helps you, however, is if you stop using your credit cards to run up debt. Otherwise, you're just digging yourself a deeper hole.

Unfortunately, the ability to live within their means is beyond many people. Nearly two-thirds of the people who borrowed against their home equity to pay off credit cards had run up more card debt within two years, according to a study by Atlanta research firm Brittain Associates.

Oh, sure, you can borrow more against your home to pay off the new debt -- thus whittling away the amount of equity that's available to you in an emergency, and ensuring that you continue to pay hundreds or thousands of dollars a year in interest to your lender. The credit-card balances you should be paying off every month instead get stretched out for years, ultimately costing you more in interest -- even with the tax savings.

Ps: Its risky. But its up to you want to try or not.

Saturday, October 11, 2008

Advantages and Disadvantages of Debt Consolidation

What do you know about Advantages and Disadvantages of Debt Consoludion?

Debt Consolidation:

Consolidating your existing debts is another viable option to get out of debt. Prior to taking the debt consolidation route take a look at its pros and cons.


* You have to make just one payment at the end of each month. It has been noticed that the average citizen pays 12 different creditors every month. Therefore, it becomes very difficult for the individuals to figure out whom to pay. With the help of debt consolidation all your debts are being combined, this makes managing your finances much easier.
* Debt consolidation can significantly reduce high interest rates.
* With reduced interest rate and one monthly payment, the amount you have to shell out each month is decreased significantly.
* If you are planning to use a first or second mortgage as a debt consolidation loan then the interest is tax-deductible.


* Reduced monthly payment indicates easier load to bear and more money left over at the end of the month. This might tempt you to take on more debt.
* Even though the interest rate is reduced, the repayment period is extended. Thus, you may end up spending more money than what you would have if you had kept each individual loan.
* You can lose everything. If you take out a secured consolidation loan against your home and you miss two to three payments, in that case you might even lose your home.

Ps: I believe, my husband now about this one.

Thursday, October 9, 2008

How To Get Out from Having Debt?

Did you know how my Husband manage to get out of debt until today? Looks this. Even its not all his method. But this some method really works to him.

1. Avoid new debts

When you are already in debt, do not involve into more debts. This will increase your debt burden and lead you to more trouble. While you are already missing your regular payments yet taking newer debts, debt handling becomes a difficult task. Sometimes the situation can even go beyond control. It might be so critical that you end up declaring yourself as a bankrupt.

2. Spend less

Each penny counts; save every dollar. If you are seriously planning to pay off your pending debts, start to become frugal. But, do not change your way of life suddenly, it might create an adverse effect. Read as many frugal tips you can, and try to follow them effectively. Efficient budgeting can save you some bucks to reduce your debts faster.

3. Increase your earning

Earn more. If required, take up part time jobs or try other ways, for extra earning. Add itional inflow of money can help you to clear off your debts quickly, and become financially free.

4. Extend your learning

Finance, is the most important part in your day to day life. Try to know about it as much as you can. Researching on finance, reading good financial books and magazines will make you more experienced and well-versed in managing finances. This will help you to handle your pending debts proficiently.

You just need to get a good understanding of the 3 step formulae, and apply it effectively. This will help you to accumulate sufficient money to clear your pending debts. The process will be effective when you are determined and confident in following the three steps.

Ps: Worth to try. But the result is in your hand.

Monday, October 6, 2008

Get Out of Debt

What you will think after this see this picture?

Ehm..interesting huh??