Resolve Your Debt Before Things Get Out Of Hand

The idea to consolidate all the outstanding loans, straight away into personal loan; is certainly the finest option for anyone who is struggling with acute debt. The thought of debt consolidation occurs in the mind of the consumer, when he starts getting phone calls and emails from various collection agencies. There is a fair chance that the credit report of the consumer will also show “default” if he doesn’t pay back his loan on time.

image source

How does a person get into this debt trap?
Usually when a person spends his money extravagantly and ends up burning through all his credit, is bound to land in a few debts. This is when the things start taking a turn for the worse. Since he doesn’t have any money and he has already used his credit cards, store cards, gasoline cards and picked up some minor loans; he is in debt.

The individual seldom realizes is that he is going to be charged more than what he has spent. All these financial facilitators charge heavy interest on the money that they lend through their financial tools. Very few seldom read through the fine print regarding the rates of interests and the fines levied on the delay in payment; onto the due amount.

All of that capital that he has spent through credit tools has an interest over it. Now, since he had delayed the monthly payments on his credit card bills, there is an additional penalty or fine on the entire calculation. In merely, a month or two; the small amount sizes up to a huge sum. Ignorance and passion for unnecessary things drive a person to this position. At times, other circumstances are also the main contributors to the cause.

What is debt consolidation mean exactly?
This is the procedure of taking a fresh loan from one place, person or agency and paying off all the dues that a consumer may have. This way he gets to get rid of escalating fines and sub-sequential interest on that money. It is a sure fire method to repay all the small credit bills and loans, in a manageable way. Here the instalments go in an affordable sum, while the interest rates are also lower than what the consumer has been paying till now.

Here a vital fact comes into play, which states that one must evaluate all his debts by acutely determining, exactly how much he owes on every debt, including the interest that is charged on those accounts. Some debts even have an interest rate of nearly 25%. These can be taken care by the debt consolidation. This allows more room the consumer to breathe and thereby alleviate some of that stress.

Various benefits of debt consolidation
It is absolutely necessary to maintain an excellent credit score, since it would affect the financial life of an individual; dramatically. All the financial institutions utilize the credit scores to approve or reject the loan applications, of an applicant. Here a bad score may result in a higher rate of interest on the loan that has been approved for; if application gets approved. Here are the three major benefits of debt consolidation;
• Paying off the previous loans.
• Reduce the amount of various loans that were taken previously.
• Making payments on time and keeping the credit score good.

An important suggestion
It is vital to establish a different lifestyle, one that is easy on the budget, early on, so to avoid unnecessary expenditure and landing in trouble. Saving money mandatorily for the “Rainy Days” is essential because that is what will help an individual in tough financial situations. In short, one should save more; spend less.


Kc mouli is a financial consultant to big firms. Crown Money Management one of her clients, while she is also available for individual monetary consulting; as well.

Ultimate Debt Free Tips You Should Consider

Debt Free Tips

Do you wish to clear your debt and become debt free say in 2 years or maybe 5 years time? If that’s the case, have you figured out the best way to have this goal become reality? If you’ll just tally up more positive frame of mind in the direction of your ultimate goal it can really make the dream come true. You are not going to have any worry anymore regarding your debts anymore and you can move forward for your living with sweet sleep every night which is going to have an incredible improvement for your health. Now, just read ahead on this debt free tips for you to set yourself out from the debt.

debt free

There isn’t anything inappropriate by using credit cards and mortgage loans. When come to financial emergency all of us really need those. But at them time we not able to pay back our debts and causing ourselves drown in our own debts, that’s the time we think debts are really bad. Therefore, in order to assist you to getting out from drowning into a sea of debts and help you to set an end for all your debt worries, you should find out now on some effective debt free tips that can carry out such task.

Useful Debt Free Tips

You may study below debt free tips which may effectively help you to reduce or totally get rid of your debts when time pass by.

1. Cut All Your Debts Up

You should definitely make sure to terminate all your credit cards by leaving just one for emergency as soon as you paid all your debts. This not necessary indicate you have to close down all your bank account. You are only blocking your ways to having access to these tempting lines of credit. This will likely prevent you from developing those crazy shopping spree moments that are going to without a doubt make you getting in a pool of new debts again! Men and women are tempted to swipe their credit cards each and every time they go out for shopping. The reason for this is due to they do not consider this is the unpaid bills that keep piling up their debts and make their life miserable. You should determined to get rid of all your credit cards by practicing cash only shopping which can very soon help you to become debt free.

2. Come Out With A Workable Plan

List down all the loan companies that you have debts with them and the amount you owed for each of these loan companies. Set yourself down, grab a pen and paper, write down all of them and make them into a list. The list should contain all the necessary information like the loan companies’ name, the amount you owe, and the due date of payment for each of them. By writing out the list, it will help you to enable yourself to go into the right track. Making realistic plans will assist you to stay away from the interest piling up and at the same time help to repay your debts in time. These debt free tips definitely can help you to live a debt free life forever if you make them into daily practice..

Debt Free Tips For Your Ultimate Goal of Free of Debt

You shouldn’t think for a long time by never getting any action since these debt free tips actually work! What you need to do is just follow these easy debt free tips and share with others after you set yourself debt free. You should have faith in yourself as many people have practice these methods and proven that these debt free tips are work.

Build an Emergency Fund When You’re Already in Debt

Are you financially prepared for an emergency? More than a quarter of all Americans have no savings stored up, and nearly three-quarters lack enough savings to cover six months of expenses, a 2013 Bankrate survey found. Being financially unprepared for an emergency leaves you vulnerable in the event of a job loss, a sudden medical or car expense or a natural disaster. The result can leave you struggling to pay for short-term necessities while damaging your long-term credit. Your best insurance against this scenario is building an emergency fund to prepare for the unexpected.

Set a Savings Goal

How big should your emergency fund be? For many years, experts recommended you save enough to cover three to six months of lost income. But in a post-recession economy, the National Foundation for Credit Counseling advises you save enough to handle nine to 12 months of expenses. This can buy you time in case you need to look for work while covering rent, insurance, credit card payments and other bills.

Start Small

On a tight budget, saving up the equivalent of a year’s income may seem daunting. In this situation, experts like financial writer Michele Lerner recommend setting aside a more manageable amount per month, such as $100 or 10 percent of your paycheck. If necessary, you can finance this with measures such as adjusting your tax withholdings, doing part-time work, selling services, holding yard sales or renting out a room or vehicle. To automate your budgeting routine, you can arrange to directly deposit your allocated monthly amount into a savings account.

Cover Your Debts

If you have debt, you may be able to grow your emergency fund faster by paying down some of what you owe first. High balances and interest on your credit cards and loans can eat up money you could otherwise be putting into your savings.

Financial expert Dave Ramsey recommends that after you establish an initial emergency fund of $1,000, you should begin paying off your non-mortgage debts, starting with your lowest balance first. The resulting decrease in your monthly payments will give you extra money you can then put toward increasing your emergency savings fund. If you’re owed money via a structured settlement, consider inquiring with a company like J.G. Wentworth to sell your future settlement payments for a lump sum now. That money could then be used to pay down your debt and build your emergency fund.

Increase Your Savings

After you’ve paid down some of your debt, you can continue growing your emergency fund to the recommended level. This can then become a foundation for building your lifelong savings. Fidelity Investments recommends you save at least eight times your ending salary to ensure you don’t outlive your savings. As a rule of thumb, for most people this amounts to saving 10 to 15 percent of your income, with appropriate adjustments based on factors such as age, spending and investments.

Implementation of Effective Debt Management Strategies

If you want to know how difficult it is to effectively manage debt, you don’t need to look any further than the U.S. Federal Government.

For decades we’ve been spending more than we can afford and continually running up our debt by trying to please everyone and making emotional decisions about where and how to spend money when we finally do end up with surpluses. Sound familiar? It shouldn’t surprise anyone that a large portion of the American population is just as bad at balancing our budgets as the people we elect to do it.

debt management
debt management

The difference is that the federal government is so huge that no one is really going to push them around. Random people aren’t quite so lucky, and if you’ve ever missed a few payments or managed to accumulate a ridiculously high credit card bill, you know just how annoying collection companies can be, and how hard it is to pull yourself out of that hole.

But that doesn’t mean it’s impossible and if you follow these tips consistently, you’ll pull yourself out of debt in no time…or at least minimize the pain.

Budget thoroughly, then follow it religiously.
Budgets are great and all, but they’re only useful insofar as you make yourself stick to them. Exhibit A, once again, is the U.S. government, which constantly comes up with budgets that have “shortfalls.” Basically, that’s a fancy way of saying they’re spending more than they expect to earn.

When you budget, the first thing you need is to do so using real numbers instead of estimates (a site like is great for this) so that you’re not regularly spending more than you should without knowing it. Once you have those real numbers, it’s all about willpower and accountability in terms of following your plan.

Identify and eliminate unnecessary expenses.
Sure, you love that cup of Starbucks every day but in a month you’re spending over $100 for coffee that you could just as easily drink at home or at the office. And maybe your cable bill was worth $100 per month before you had a baby, but now that you’re lucky if you get to watch more than a few hours a week, doesn’t it make more sense to just stream Netflix and Hulu ($7.99 per month each)?

Most of us have quite a few things that we could cut out of our lives and still bequite happy. While you’re making that budget mentioned above, keep an eye out for places where you can trim the fat and make cutbacks that will help you to pay off your debt faster.

Pay down debt before you save.
When people find themselves in debt, many times one of the first reactions is to want to save up money so that this kind of thing doesn’t happen again. Generally speaking, saving is a great idea, and something that everyone should start doing. However, if your debt involves any kind of payments with high interest rates (like every single credit card ever), it’s far smarter to pay them down first with every extra penny you have.

Why? Because of that annoying interest.Saving instead of paying it off means that you will actually be losing money even while the amount of money in your savings goes up.

The exception to this rule is if you are in debt due to student loans or a mortgage payment. Because the tax deductions are so generous for those types of debt and the interest rates tend to be relatively low, it makes more sense to slowly chip away at the amount you owe rather than paying it off as fast as possible.

In the end, paying off your debt quickly and effectively largely comes down to being able to curb your impulse to buy and putting any spare money that comes in toward the debt. When you owe money, that tax refund isn’t a reason to go shopping, it’s an excuse to make an extra payment on your credit card that month. Getting out of debt isn’t fun, but the sacrifices you make to get through it are a lot better than having that debt hang over your head even longer.

Is There Such a Thing as “Good” Debt?

Most people believe that being in any debt is a negative thing. This was never more evident than after the hard-hitting recession of 2008, when overspending ways, living beyond one’s means, and heavy borrowing caught up to millions of Americans. While many are still trying to work their way out from under the debt, and personal bankruptcies just now coming down from record highs, it’s easy to view debt, in any form, as being a bad choice.


However, not all debt is bad debt. It’s almost impossible for us to live debt-free in a modern world. Most of us are unable to pay for a house or a college education in cash. While it wouldn’t be considered strictly “good debt,” the borrowing of money to pay for certain experiences and expenses are considered necessary to the improvement of your life and future. Those types of debt ultimately enhance your life in the long run, and therefore are worth the interest rates and temporary burden.

What are some forms of “good debt”?

Student loans. Most families aren’t able to pay for college tuition and other expenses outright. Student loans are often the only way many households are able to afford higher education. However, as this is an investment in your or your child’s future, as further education generally leads togreater income potential, student loans are generally considered “good debt.”

Mortgages. Like college educations, most households aren’t able to pay for a house up-front, in cash. However, property is also considered an investment, as homes generallyappreciate over time. Mortgages tend to have lower interest rates than other debts, with the interest being tax deductible. And the relatively low monthly payments frees up the rest of your income for emergencies and other investments. As a mortgage is an investment into property that can improve your overall financial standing, this is a loan that is worth borrowing. Try to put down as much as possible without completely depleting your cash reserves so that you’ll pay less interest over time.

What’s considered “bad debt”?

Credit card debt. Universally held and universally reviled, credit card debt is the enemy of a sound financial plan. As of 2012,the average U.S. household has nearly $15,950 in credit card debt. Credit cards have a higher interest rate than most loans, and often is not an investment in something tangible that you can liquidate to pay off the debt. Credit cards are often used to buy things that aren’t investments and quickly lose their value. They’re also often used to purchase things that you don’t need, and can lead to you living beyond your means. Remember a deal is not a deal, if you’re paying high interest rates on it for years to come. Find out more in regards to debt solutions by visiting National Debt Relief’s site.

Payday loans or cash advance loans. Interest rates on payday loans are exorbitant,starting at 300 percent annually (compare that to the already high 25.99 percent on some credit cards and the 3 percent on average mortgages). You are also charged all manner of fees when you borrow the money, and when you are unable to pay the loan. Note: when you take out a payday loan, you have until the next payday to return the money you borrowed, plus the fee, plus the interest accrued during that time period.

Debt gray areas.

Car loans. While a car is often considered a necessity in modern living, how much you borrow to buy an automobile can move this “good” debt to “bad.”A car’s value depreciates steeply from the minute you drive off the lot, so it’s not exactly a long-term investment. However, you can turn around and sell it for the cash to pay off your debt, so at least it is a tangible resource. Also, while a car is necessary, taking out an enormous loan to pay for a top-of-the-line luxury vehicle is not. Get a car within your means to keep the auto loan from going “bad.”

Debt can quickly become unmanageable, so make sure you’re borrowing money to help improve your future or improve your income streams or potential, and that you’re only borrowing as much as you need. Set up a payment plan to help you get out of the debt, regardless of whether it’s considered “good” or “bad,” as quickly as possible. Keep in mind that any form of “good” debt is still debt, and will make a lasting impact on your financial future.

Dave Landry Jr. is a financial expert and money consultant, advising people on smart ways to invest, save and use their money for the past several years. He hopes you enjoy this article and will have a further understanding of debt and its several different shades.

Be A Premier Performer at Tackling Debt

As the housing market slowly begins to recover, many people are looking for ways to recover from the economic down fall of 2008. Many people found themselves in an uncomfortable financial situation and now have to find a solution to overwhelming amounts of debt. Purchasing a home is a huge investment that many people tend to take for granted. While investing in real estate can be a lucrative move it can also be damaging if you do not do careful prior research and planning. Many homeowners find themselves in debt because of poor budgeting and planning.

However, there are a few simple steps you can take to help relieve debt. Taking action as soon as possible can help get better financial control over your assets sooner and quicker. If you find that your loans are becoming too overwhelming to handle it could be a good idea to see a financial planner or speak to your creditors to negotiate a plan that can fit your current financial situation. This infographic by debt relieving tips gives some great tips to help you tackle debt and get back to a more financially stable state.

Debt Consolidation and Short Term Financing

Getting caught in a debt trap can be quite a painful experience; however there is no reason to believe that you’re alone in your plight. Seeking help of effective debt consolidation programs will only be prudent in these cases. Let us discover more about the features of these programs, so that you are well aware what an ideal service should offer you.

squeeze debt consolidation
squeeze debt consolidation


  • These programs help borrowers to bring all their debts under one scheme so that it becomes possible for them to keep track of the total amount of money they owe to all their lenders
  • They also work with lenders towards lowering the monthly rates.
  • Generally promise avoidance of bankruptcy and legal complications
  • Remove over limit fees and late fees
  • Ensure that you are not bothered by lender calls.

Why Do You Need These Programs for Short Term Financing

Though debt management programs are designed to deal with a variety of loans, availing their services as a payday loan borrower turns out to be particularly helpful as these loans carry very high rates of interest and the chances of getting caught in a trap remains high. Therefore, you can easily avail the services of a debt relief program in a bid to take better control over your finances.


Payday loan consolidation program and Consolidation Loans are the two types of debt consolidation services that one can seek aid of. The former implies that you will be able to get rid of multiple debts. The companies work with your lenders to lower the rates. You can pay a single monthly payment to the debt relief company and then it disburses the funds to the payday lenders whom you owe the money, thereby helping you converting your monthly bills in to a single consolidated payment. Late fees and other penalty fees are generally eliminated. Debt Loan Consolidation aids you in paying off several payday loans. After the entire money is paid off, you have to pay back the consolidation loan in monthly installments. However the term of these loans is very long meaning that you pay back much more than you actually owe. So the former stands as a much better option than the latter.

Word of Advice

Please remember that you should consult at least seven to eight programs in a bid to settle for the one that you think will meet your needs the most. See what kind of reviews has the companies providing these services in your area have earned from users. A few hours before your computer can help you in this regard. However prudent handling of payday loans online no credit check will ensure that you are well on track in escaping a debt trap. Listed below are a few ways to do the same:

Please make sure that you are resorting to abstinence, if needed, in a bid to make sure that you have saved up amply to pay back on time.

Try to seek the aid of an extra source of income.

Make sure that you are tracking the due date so that you don’t falter when it actually arrives.

Author Bio: Rossi is a professional content writer whose expertise on a varied range of topics like finance and health has made him one of the most revered writers in the web world.

Unsecured Debts – Unsecured Future

It seems as though debt and borrowing is constantly part of the news these days, however most people do not have the time to fully absorb what this highlights in terms of the lending markets. Commonplace terminology is being adopted by the masses and many people use phrases such as ‘unsecured debt’, without necessarily understanding their true definition. The meaning is in-fact very simple;it is an amount of money that has been lean to a person, which has not been attached to an asset (such as a car or house) in order to act as collateral. Therefore the debt is unsecured.

unsecured loan
unsecured loan

Some very popular examples of this type of debt are credit cards, payday loans and unsecured loans. The idea behind unsecured borrowing is that, even if you don’t have an asset to back-up your credit, you can still take out a loan. However, these types of loans are often for lower amounts of money and in turn can have higher interest rates. The reason for this is that the lender doesn’t have something solid to claim back should the debtor go into arrears (the debt is not a secure venture for them).

There are many situations where a debtor may choose to use a method of unsecured borrowing. A good example of this might be that you are renting a property and as such you don’t have a home to secure your loan against. Alternatively you may have an emergency at which point you find that you need a little extra of cash because you have not got any savings with which to use.

Ultimately any type of debt will have to be paid back plus its’ accrued interest. When you take out a loan you must make sure that you have the ability to pay back what you borrow and should always make sure that you budget appropriately for this.

What can you do however if you lose your job, or if your income source is decreased through wage cuts or family emergencies?

There are many solutions that are available for people who find that they are struggling with their unsecured debts.Therefore, finding the right solution to suit your needs can seem challenging as there are plenty of options and services to choose from.

One option, which may be best suited to people who do own their own home, is by applying for a Housing Loan. This type of loan is secured against the home owners house and it might be classed as advantageous in terms of consolidating debts because the interest rates for secured loans are quite often lower than that of unsecured debts and you would only need to focus on re-paying one loan rather than lots of separate pieces of credit. Both of these reasons could make the amount you pay per month lower, leaving you with a more manageable monthly re-payment.

People who don’t feel securing their debts against their home could look alternatively at taking out a Debt Management Plan (DMP).This is an informal agreement which is normally set up by a Debt Management Company and through which your lenders would be contacted in order to negotiate a manageable re-payment plan. The advantages of this include how the Debt Management Company will look to lower or even freeze the interest on your debts and that they will look to lower the current monthly re-payments that you are making. As a result you can ensure that your debts will be fully paid back, despite the fact that this is often over a longer period of time and at a lower rate that was first decided when you took out the credit.

There are however many more debt solutions available on the market and which can be utilised by almost anybody in need. Therefore it is always suggested that before making a final decision on how to cope with your debts, you get some professional financial advice.

This guest post was written by Dan Frodsham, Communications Executive for, who specialise in finding the right debt consolidation solutions to assist people in becoming debt free.

How To Make Yourself Free of Debt?

If you are overwhelming in debts and are desperate to get yourself free of debts, you should make a workable plan and strategy to pay back all your debts. The matter of fact is, by using the right and effective strategy, you will surprised yourself by figuring out how much interest you can save for your money. And if you do not know how to come out with a plan and strategy, you can try to use the recommended steps here.

debt free
debt free

List down all your debts

By enlist all your debts you will have a better picture of your current financial status. Without knowing your financial position, you may not really care to get rid of your debt. The list should contained all the debts that you owe with the detailed of their respective amount and interest rates need to clearly stated in it. Never try to miss out any required items and information in the list such as your mortgages, the credit card debts, other loans, and also any cash which might have lent to you by your family or friends.

Put your debts into categories

It is possible to categorise the money you owe into good and bad column. Although it can be quite strange as this sound to be but this can be quite important. You should know by yourself that actually not all debt is equal one with another. For example, a loan can be categorise as an investment instead of a debt and thus it can be categorise as good debt. You can’t risk coming to a absurdly high payments on interest rate. In contrast, debts for your credit card don’t provide you with any kind of tax reduction and don’t even provide you with any value of asset. Therefore, credit card debt is categorised as bad debt. For more information, there are additional examples of good debts such as car loan, mortgage, and student loan. In contrast, store card debts can be categorised as bad debt.

Prioritise your debts

When considering arranging your priorities for your debts, you should arrange them in a way that prioritise to pay off all your bad debts by keeping them as the front items while putting good debt at the bottom.

You should listed those item that carry the highest interest rate to be the first in the list for you to pay back. Typically, the first of your list will be those department store cards or credit cards. To work them out, you can try to shift the owing amount from those credit cards which have high interest to those that don’t charge with lower interest.

At the time you finish doing so, you can now start put your attention on those credit cards debts and pay them off. You are able to keep on paying minimum amounts on your other cards while you make as much payments as you are able to on the high interest credit cards.

Change your lifestyle to live below your mean

You are able to try to squeeze on your monthly disposable income in order to churn out a little extra each month. You should try to cut down any unnecessary expenditures each month. This can be achieved by continuing to keep track on where your spend your money by recording all your expenses into the list. By doing so, you are going to get shocked by yourself on how many unnecessary expenditures you been made for years without you realised on them.

Get rid of all your expensive habits and refrain yourself from buying any big ticket item anymore. In a nutshell, concentrate with all the money you posses on paying off your debt. You are the one who in charge of your own money and by consistently repay your debt and one day you will found that you are suddenly set yourself free from any debt.

5 No Brainer Clues for Escaping of the Debt Maze

Building credit is an important part of improving your ability to obtain loans. Unfortunately, it can also get out of control within a short period of time and lead to challenging struggles when it comes to getting the situation back on track. When you’re worried about making your monthly payments or paying down your debts, you can use simple strategies to get back on track.

debt maze

Evaluate Your Situation

Before you can take any steps to improve the situation, you need to determine how much you owe, the interest rates and the amount you pay in minimum payments. According to, you need to identify the current situation before you can develop a real strategy that will allow you to pay down your debts.

Cut Back on Expenses

Although you cannot cut out your debts and basic utilities, you can cut back on certain luxuries. According to, you need to cut your spending habits and start working on enjoying a lifestyle that is more frugal.

If you have unnecessary monthly costs, such as cable TV or satellite radio, then you can cut out those costs or cut back to reduce the cost.

Obtain a Credit Report

After you have organized your finances, listed out the debts you currently have and taken measures to cut back, you need to work on your credit. Obtaining a credit history report is the first step of making improvements because you need to know where you stand and whether your account has errors before you can take further action.

After you evaluate your report and determine that the details are accurate, you can then start working on improving it. A simple way to improve your score is looking at auto loans for bad credit. Obtain a new loan to replace the old car loan. It will help clear out debt and replace it with fresh credit, which will have a positive impact if you make regular payments.

The other consideration is working on making the monthly payments. Even if, you don’t have extra funds in a particular month you should be always paying the minimum amount to keep your credit score as high as possible.

Transfer Your Balances

Although your ultimate goal is eliminating the debts, a simple way to reduce the minimum payment and start working on the plan of action is with a balance transfer. According to Good Housekeeping, you want to lower your current interest rates to make your debts easier to manage; A balance transfer will usually bring you down to a reasonable rate and might allow you one or two years at the low rate. It gives you time to start making real changes.

Refund to Pay Debts

When you receive extra funds, such as a tax refund or a bonus at work, put that money into your debts. Start with the highest interest debts and work your way to the lowest. It will help reduce the amount of money you’re paying on your debts and will have a direct impact on the loan rather than the interest.

According to CBS Boston, if you pay down a $3,000 credit card with your refund, then you will end up saving more than $500 in the next year. That extra money adds up quickly when you aren’t paying extra interest.

Paying down your debts is challenging, but it’s worth the time and effort. When you no longer owe money, you will face fewer financial challenges, and you will have money funds for your special interests in the future.