get rid of debt

The Tips to Living in a Debt Free Life

November 11, 2013 by editor

One of the greatest things that a person can achieve is to have a debt free life. When you have been in debt for a long time, you feel like a completely new person when that debt has disappeared. It is commonly assumed that a person will run out and get him or herself in debt as soon as the debt has disappeared.

A person in debt will learn to adopt a few characteristics through the process of achieving a debt free life. These traits can help those who desire to become debt free to get there.

Know the Details

One of the most important parts of obtains a debt free life is being able to notice the details. The individual that makes it all the way to the debt free goal is one that pays close attention to their finances. This includes their earning, expenses, and their bills, how much they are saving, and what they invest. Developing a budget, knowing exactly what their balances are, and always stick to them is what makes a person able to find the way into a debt free life.

No Addictions

To someone trying to get out of debt and then to a person who is already tasted freedom from debt financial addictions. It is important to remember that in order to continue with a debt free life that the expensive toys do not bring happiness. A person tends to live a simpler life, a more family focused life once they have gotten out of debt.

Even though shopping is not physically as addictive as a drug or alcohol addiction, it is still a destructive way of life. Shopping addictions can cause problems while still in debt and even more problems when you have freed yourself from debt. One way that many people combat their shopping addictions is through paying with only cash. Being cautious not to spend more than what you have is a discipline that allows a person to enjoy a debt free life.

The Dangers of Credit

A person who has been debt free knows the value of not having any debt. They know that even though credit can be helpful at times it is also something that can easily turn dangerous. The financially perceptive know that there are benefits to having credit there are also many dangers that can take away your debt free life.

Patience is Pragmatic

It is known to many individuals that in order to have a debt free life you need to be willing to be patient. Along with being patient, one has to have the determination to make those tough decisions. Knowing that when you don’t have the money you will wait and with patience gain all of the things that you desire in your own time.

Pragmatic is important because through the process of becoming debt free you gain the true meaning of what value is. Be sure to compare before purchasing, to be willing to cut coupons or wait for sales. The individual always looks for the items that are functional rather than flashy.

The Future is Bright

It is important to remember that taking on new debt is not always a bad. Being hesitant to take on new debt however with careful consideration, and some investigations you will be able confidently see a safe future.

Some people know that debt is still debt, even when it comes to a debt like a mortgage. Being cautious for every little bit of debt but practical about them all.

Calm, Cool, and Self-Reliant

Maintaining a debt free life is something that many take pride in accomplishing. It shows a self-reliance to know that you are not allowing your debt to be controlling you.

Saving your money for that large purchase or for a rainy day is within your limits. Having confidence that you are no longer defined by the things that you own or by the debt that you are in. Self-confidence lets other know your status far more than the monetary things that you own. Knowing that you no longer are making excuses and have taken responsibility to create a debt free life for yourself and your family can be intoxicating on its own.

It is important that no matter if you want to become debt free or have just stepped out into a debt free life that you continue to work hard in achieving your goals. Be sure to share your journey with others to help inspire them to begin the same path that you are taking can be the motivation that keeps you in a safe place. Continue to maintain the life that has gotten you to the point that you now are. Don’t be afraid if something unexpected happens, just get up, dust off your hands, and remove that stumbling block from your path.

How to Get Out of Debt Even With Bad Credit

August 14, 2013 by editor

Having a lot of debt or bad credit can make it hard to do many things. Whenever a person has a lot of debt they tend to try to reduce that debt. Bad credit can limit your options when looking into ways to reduce your debt. Learning how to get out of debt with bad credit can be beneficial to anyone.

What is Bad Credit and how it hurts you?

It is important to know what bad credit actually is. It isn’t a sign of your financial troubles; it doesn’t have to define you. It only means that in the recent past you had trouble making payment, missing them or making them late.

Bad credit can make your options to reducing your debt more limited. Balance transfer credit cards might be an option that is closed to you. Also, loans are harder to get with bad credit. Lenders are choosey about whom they loan money to. This can be difficult if you want to pay your debts off through a loan consolidation programs. Look for other ways to get out of debt with bad credit.

Options that Might Help

There are some options that might help one who is learning how to get out of debt with bad credit. It is important to know that these options, debt management or IVA, can impact your credit rating. You may have no other choice when removing debt. Monthly payments can be an option that might not affect your credit rating.

Monthly payments:

If you’re able to make your monthly payments make sure you continue to do so. Reducing your debt in that fashion is always an option and it will only repair your credit not hinder it more.

Debt Management:

Debt management is an option of how to get out of debt with bad credit when you’re unable to afford your monthly payments. This program is when you are asking the lenders of your unsecured debt to reduce your monthly payments. This can help you make progress on debts while allowing you to still be able to adhere to mandatory monthly responsibilities.

IVA (Individual Voluntary Arrangement):

IVA is similar to debt management in that it can help by reducing the amount spent on debt each month without removing funds from your monthly essentials. IVA is different from debt management because it is a legally binding as well as IVA can possibly write off portions of your debt.

All these options can help you to figure out ways to learn how to get out of debt with bad credit. There are several steps that might help you along the way.

Taking Control of Your Debt

As you discover how to get rid of debt with bad credit, you realize that you need to take control of your finances. By having control of your finances you are able to better know your monthly expenses and debts. There are some steps that can help you when taking back your financial situation.

Step 1: Evaluate your budget.

Make a list of your expenses this will include your obligations to debtors, rent or mortgage, monthly utilities, as well as food, gas, and other necessary needs.
Make a list of your debtors; include credit cards, personal loans, and outstanding bills.
Make a list of the average amount paid per month on your expenses.
List other expenditure, such as entertainment, and any other non-necessary expenses.

Step 2: Find extra funds.

Evaluate where you spend extra funds, review your non-necessary expenditures. Determine which of those purchases are able to be reduced or cut out every month. Pack a lunch rather than buying one every day. Money that you save through reducing funds can be extra money sent to creditors to remove the loan quicker.

Step 3: Cut out high interest debts.

Look at the list that you created with your debts listing the specific details of every creditor. Look at the interest rates of each of your debts. Determine which debt has the highest interest and make the extra payments towards that debt. Continue to pay minimums on your other bills, but add the extra to the highest interest in order to remove that debt first.

Step 4: Research other options.

Be sure to research other options like ways to consolidate your debts. Settle your accounts that are in collections removing them from your credit score. Look into loans from credit unions or other lenders to help pay off all old bills and only have one debt.

Individuals can to learn how to get out of debt with bad credit with only a little research and some determination to better their financial situation. It may not be an easy road but the outcome is always worth it.

Can Debt Management Save Your Retirement?

June 4, 2013 by editor

Retirement should be a time of relaxation, peace and comfort. If you think about it, debt should have no room in it. So if you are looking down the road into your retirement and you see that your debts are threatening to be a part of it, you need to seriously consider debt management.

While the other types of debt relief option can also help, this is probably the best one for a lot of reasons.

First of all, if you are about to retire, you are under a deadline. If you really want to get rid of your debts before retirement, debt management can make that happen in less than five years. Of course, this does not involve mortgage and student loans – which are quite significant. But for your credit card debt, medical bills, utility bills and other personal loans, you can count on debt management to help you pay them off before retirement. That way, if you have to postpone your retirement to keep the steady income pouring in for your debts, it will not have to be too long.

Another reason why this is helpful is it keeps your debts from being too stressful. This debt solution will enlists the help of a credit counselor who will advise you on the best way to pay off your debts. Together, you will create debt management plan that will be based on your financial capabilities. You will stretch your term so that you are allowed to make smaller contributions towards your debt. The counselor will take charge in negotiating with the creditor to accept this new payment plan. All you have to do is to sit back and concentrate on producing a monthly income.

Aside from the guidance, you will also be relieved from the stress of handling too many accounts. Once your debt management plan is approved, all you have to do is to send the total monthly payment to the counselor. In turn, they will distribute your payments to your various creditors. That will make your life a whole lot easier. Stress can lead to a lot of health ailments so given the fact that you are not as physically strong as you were, this is something that you want to avoid.

Since debt management will allow you to send lower monthly payments, you have more money to deposit to your savings. Although your debts will be paid off, you still need your savings to help you survive. Remember that you will no longer have a steady income once you retire. With the rising cost of living and medical fees, your Social Service benefits may not be enough to cover them. By growing your savings, you will have extra money to spend on your retirement.

Remember that if you have the determination to solve your debt problems, you can have the best retirement that you can ever hope to experience. But the bottom line is, you have to start now. Do not delay it any further since the longer you wait, the harder it will be for you to recover in time.

Best Option For Credit Card Debt Relief

April 11, 2013 by editor

The best option for credit card debt relief involves getting rid of two things: high interest and irresponsible usage.

Let us begin with the high interest rate. These plastic cards are notorious for accumulating into a big amount in a fairly short amount of time – at least if you continue using it without any payments. If you are currently watching helplessly as your credit card debts are continually increasing, you need to get debt relief help and you need it fast. Even if you are paying the minimum amount stated on your bill, that will not get you anywhere. At the very least, you are only paying of 4% of your total balance. It will take you decades to complete your payments.

One debt relief option that you can benefit from is debt consolidation. It comes in two ways. You can opt to get debt consolidation loans that involves borrowing money that is big enough to pay off your credit card debts. Aim to get a low interest loan so that you get smaller monthly payments. By eliminating the high interest of the credit cards and the fees usually associated with it, you can lower your monthly payments even by half. You can also make steady monthly payments for a maximum of 5 years – since most personal loans are paid off by that time. Of course, the key is the low interest rate that can only be achieved with a good credit score or a collateral.

If you have neither, your other option is debt management. This involves getting the aid of a debt counselor who will review your debts and the finances you will use to pay it off. They will help you come up with a debt management plan that will be submitted to your creditors for negotiation. They will even negotiate to lower your interest rate and if they reach an agreement, that will help you make better progress on your debts.

But while the high interest rate is removed, another aspect that has to be eliminated is your irresponsible use of these cards. If you do not correct these mistakes, you may find yourself deep in credit card debt once more.

Getting rid of bad spending habits should be part of any debt relief program. You need to begin by knowing how much you can really afford to spend. Ideally, using a cash only policy will help you stay within your means. But if you have to use credit cards, make sure that you have the cash in your bank account to pay for the whole balance on the card once the bill comes in. The only way you can eliminate the high interest on your cards while continuing to use it is to pay for it once the billing statement comes in.

Read all the fine prints indicated in the card contract that you will receive after applying for a card. Or if you lost that contract, research or call the credit card company to learn about the fees and charges associated with every activity on your card. And if you know that you cannot control yourself, try not to bring your cards when you go out on regular buying trips. This is how you become a responsible card holder.