Getting Rid of Debt – keeping the situation under control

Debt is not confined to people of a certain status or lifestyle. Debt occurs simply when you spend more than you have coming in. This can happen for a variety of reasons – perhaps the car needed a major overhaul, your working hours were reduced or a substantial vet bill had to be paid. Whatever the reason, debt is debt and once in debt it is devilishly difficult to get out.

Debt wins because, in the main, people are conditioned to believe that debt is somehow shameful and something one must struggle on with alone. Of course it is never favourable to be in debt, but the sure fire way to make the situation worse is to either ignore the problem and ‘hope it will go away’, or try and cope on your own.

The sad fact is that debt accrues more debt and unpaid interest compounds into more interest. If you have overused a credit card or have borrowed cash on the card then you will be paying it back at a high rate of interest. The same is true for payday loan borrowing. This being the case there comes a day when, despite juggling and struggling, even the minimum payment is more than you can afford and paying just the minimum will not even make a dent in the balance.

If you have reached this stage and are currently enduring stress-filled sleepless nights worrying about money, then now is the time to take action. Contact one of the many UK debt management companies who are specialists in getting people just like you out of the red and back into the black. Choose a company that is accredited and OFT approved and their debt consolidation experts and IVA advisors will be on hand to help you out of the debt maze in the quickest way possible.

Depending upon how much you owe and whether the loan is secured or unsecured, there will be different options open to you. Your debt advisor will listen carefully to your illustration of your current level of debt and from there will map out a route to being debt free.

You have nothing to lose and everything to gain. Contact a professional debt advisory company right now and make debt a thing of the past.

Is it Ever Too Early To Worry About Debt?

Debt is something that haunts just about everyone that carries it, especially if they’re carrying a lot of debt to deal with. You will need to make absolutely sure that you are looking at your debts from every angle. However, if you don’t already have debt, you might wonder if everything is being a bit overblown. In other words, is there ever a time that’s considered “too early” to worry about debt?

This question often gets asked when children get involved into the picture, because they can’t carry credit just yet. So most people say that kids really don’t have to think about it. Young children still need to learn the value of money, and teenagers need to have as much education about finance as possible. They are going to be going out into a very different world that wont’ always stop to explain every last term to them. So if you know that they are having problems with spending already, you might want to get that behavior in check before it spirals out into something that’s incredible dangerous for them. The more effort that you can put into stomping out the problem before it grows, the better results that you will get in the long run.

The truth of the matter is that it’s never too early to get children interested in the world of personal finance. If you really look at past generations of people, you may notice that there was a strong pattern of being more conscious about money as well as realizing that you can’t always get what you want. Far too often we live in a society where we really do expect everything to be handed to us, and we have a tendency to get upset if we can’t have the latest and greatest. This is different than generations gone by, who realized that sometimes personal sacrifice is what it really takes in order to move ahead in life.

If you have children that are teenaged now, you really owe it to them to try to give them as much information about the world of personal finance right now. Waiting for them to be adults simply means that they don’t have all of the information necessary to make good financial decisions.

Keep in mind that if you really want to take matters into your own hands, you have to remember that you really are your child’s biggest role model. They look up to you and they can see what you do. So the last thing you want to do is make bad financial decisions — this will only make it harder to get them on a better financial path early. Teaching them the power of money through savings and investments can literally change the rest of their life. It might sound interesting that such a basic decision can have so much impact, but it really can![Continue Reading…]

True Organization Comes From Debt Consolidation

If you’re in debt and you’re trying to figure out why you’re in debt, then you really need to start looking at organization. Yes, that’s right — organization matters a lot more than you might realize, and not being organized can definitely give you a lot of trouble later down the road. So if you really want to make sure that you’re going to be able to get things taken care of, now is the best time to make sure that you focus on organization.

For example, you might not think about it this way, but every time you pay a debt late, you’re giving even more money to your creditors in the long run. This is because you will end up paying higher interests rates because you defaulted on the original agreement. When you signed up for the credit card or loan, you agreed to pay on a certain date. You have to make sure that you are paying by this date as much as possible. If you’re late even once, many credit card companies do reserve the right to raise your interest rate.

What’s even worse is that if you’re not late on their payment but late on someone else’s and your original creditor finds out, you will end up having your interest rate raised in many cases. This is legal to do, and they will not hesitate in doing it if they can get away with it.

You just need to always make sure that you’re staying organized. Credit consolidation can help because the organization steps are taken care of for you. We know that everyone is getting busier and busier than they were in the past, so if you find yourself with no time to really keep track of all of this important information, you really do need to make sure that you start focusing on the bigger picture so that you don’t hurt your finances further.

While there are some associated fees involved with credit consolidation companies, the value that they provide goes far beyond the fees. What’s also nice is that instead of charging you up front, many companies just roll their fee into the overall monthly payments that you’ll be making. They can then turn around and get the money to all of your creditors automatically, without you having to do anything else.

Again, it might seem that you’re not doing as much work as you probably think that you need to do, but trust us — it’s still very important to make sure that you focus on the other parts of your life that got eaten up by worrying about your finances! It’s really not a bad thing to let someone else handle a piece of your life, if you really think about it — why not check it out for yourself today? You’ll be glad you did!

How Savings can reduce Debt Problems

Everyone should have some savings of some sort. Whether its £100 or so in an Internet savings account or £2,000 tied up in a bond, the need to have some extra funds is essential for a debt-free existence. But according to a new study, 11million adults don’t have any savings at all. Does this mean they are more prone to debt? Possibly. After all, where would you go if you had to pay an urgent bill but had no money?

In such situations, taking out a payday loan can seem like a convenient option. But more often than not, it can exacerbate an already difficult financial situation. Whereas if you had savings to fall back on, you would have less need to rely on a payday loan company at all. But with all the different saving accounts out there, which ones should you choose?

ISAs

These are tax-free saving accounts which earn good rates of interest, partly because the money is tied up for 12 months and cannot be withdrawn during that time. The maximum amount you can put into an ISA per year is around the £5,500 (as of 2011/2012 tax year).

Instant Access Savings Accounts


This is great for emergency funds. You can withdraw money at any point without having to pay a penalty although interest rates tend to be lower.


Regular Saving Accounts

The most basic of saving accounts, these are ideal for first time savers who want to put a certain amount of money away each month, although there are certain restrictions as to the amount you can invest and the number of times you can withdraw money.

In the meantime, for anyone who is experiencing the worry of being in debt and are unable to even think about putting money aside into a savings account, debt management companies can help to significantly reduce monthly repayments.
Depending on the amount of debt you owe, debt consolidation experts will talk you through the options which are best for you, which may include a debt management plan or an IVA.

A debt management plan is great for anyone who can commit to regular monthly payments whereas an IVA – Individual Voluntary Arrangement – is more suitable for someone who owes more than £12,000 and needs a longer time to pay it off. Both plans are sorted by the debt management company who liaise with your creditors on your behalf, ensuring that both parties reach a mutual agreement.

Once your debts are cleared, make sure you celebrate by putting some of your hard earned cash into a savings account, to save for a rainy day: you never know when you may need it.

At What Price Do We Receive Victory Over Debts

Ignoring the emotional side of life is a recipe for disaster. Everything we do is ruled by emotion. Think about your debts — don’t you want to be debt-free in order to be there for your family? To have more time to spend with your mates? To be able to take care of the special someone in your life? Debt robs you of all those things and hurts you in the long run.

Yet a lot of people try to only think about the logical side and they fail to realize the power of emotion in the matter. Debt is very emotional — you’re always going to feel like there’s no way to actually get things done and that can really cripple you before too long.

Now is the time to recover emotionally. In order to get out of debt, you have to first handle the emotional side of it.

If you are a person that likes to reflect, one of the first things that we recommend to you is to actually take a journal of all of your thoughts. It sounds silly, but you might find that you’ve been holding back a lot of feelings about your debts. It can be scary to open up that much, but it can all be worth it in the end when you really want to make sure that you can take care of anything that happens to come your way. It’s not like we’re saying that anyone has to see your journal or even comment on it.

If you’re not the journal type, being around people that are going through debt is a good thing. There are plenty of support groups that can help you around the UK, or even in the United States if you happen to be established there.

Everyone has a right to make sure that they can overcome debts. You might want to think about the root causes behind why you were in debt in the first place. Sure, it’s tempting to just assume that you’re never going to be out of debt, but is that really the case? For example, you might be in debt right now because you wanted to have the best of everything — whether or not your budget actually agreed with you. It’s better to really make sure that you can move past that by realizing that life isn’t really about having the best of everything to the point where the things that really matter are threatened. Sure, you might want to get a great house, but if you can’t afford the mortgage it stands to reason that you won’t own the house for very long.

It’s a time where you really need to focus on the way you want life to be, rather than constantly thinking that you don’t deserve great things. You might have gotten into debt over medical issues — there are ways to overcome this as well. Look into assistance that the hospital can give you — there are options out there.

You’re going to have to start lifting your voice and demanding to be treated fairly. You are not your debts. You are not your bank account.

It is said that there are two great times to plant a tree — 20 years ago, and today. Choose today to start getting out of debt. Choose today to start building a financial blueprint that matters. Trust us — you won’t be disappointed!

Finding Beautiful Pockets of Extra Income to Pay Down Your Debts

It’s a great time to be alive, though you might not believe that because you have to pay down debt. The truth is that while debt reduction takes up time, money, stress, and energy, the reality is that it’s a good time to be paying debt right now. That’s because there’s a lot more information out there about really making a good run in the world of debt elimination. There are more forums where people are sharing their tips and strategies for finally getting out of debt, and there are thousands of articles about the subject. It is possible to get out of debt and live an amazing life, but you have to really want to do that. You have to really want to step out of your comfort zone and pursue that debt of getting out of debt.

The problem here is that a lot of times people feel that there’s really no way that they can ever escape the heavy toll of debt, but this doesn’t have to be that way. Actually, if you really change your perspective you’ll find that there are a lot of ways to get out of debt just by adding a little extra money to your bottom line.

There are two ways to do that — extra income from a side job or small business, or shaving money from your budget and redirecting it to your debt reduction plan. Your budget may be filled with things that you can remove in order to put them towards paying down your debts. For example, if you’re like most people you probably have a few magazines that you’re subscribed to — but you never read. That’s a lot of money being thrown away when it could be going towards getting you out of debt, not taking away from the money you need to accomplish this goal!

What about your grocery bill? Surely you and your family eat things that you really don’t need but you like to have around. Convenience foods tend to be very expensive when compared to foods that are fresh and require cooking. Sometimes you really need to spend more time in the kitchen to feed your family this way, but what if you could actually save a lot of money.

Yes, there are shows that talk about saving money through clipping a lot of coupons, but most people aren’t going to have time to do that type of thing. You’re going to have to focus your energy elsewhere in order to make absolutely sure that you can afford to get your debt reduction plan up and running.

Cutting out the unnecessary expenses from your budget can free up a lot of money, but there’s also something special about building a little side income to help reach your goals. If you have a skill to sell to other people, you can certainly use this as well. Don’t feel like this is the only way that you could ever possibly get things done — that’s just not true! However, you should see this as one more tool that you have in the fight against debt. Why would you ever want to waste another moment standing still when there are so many things to get done?

You can also turn towards the Internet if you want to make more money. You can offer your skills online and wait for people to get back to you. Publish that you’re available for work on just about every channel that you can find. If you’re on Twitter, then you can certainly talk to people there. In addition, you can also go ahead and pour over some of the freelance sites like RentaCoder (for programmers) and oDesk (for just about everything else). You’ll have to pay your dues and work up the ladder, but there’s definitely money out there.

Many webmaster forums are also looking for people with computer skills, so don’t overlook them while you’re looking around for work.

Yes, you’ll have to pay taxes on your income, but wouldn’t you have to do that with just about any type of income you make? This is something that you’ll just have to deal with if you really want to move above and beyond where you’re at with your debt reduction plan.

Speaking of the world of debt reduction, there’s nothing that says that you can’t remove debt simply by pursuing debt settlement. Many creditors are willing to strike up a deal because they want to get something for their money rather than having to write the whole debt off. Debt collection agencies are the same way -=- if you’re willing to negotiate, they’re definitely willing to listen.

There’s nothing wrong with exploring all of your options if it means that you end up staying out of the bankruptcy loop. While we’re not against bankruptcy, there are so many cases where bankruptcy could honestly be avoided. There’s a lot of scare tactics done in order to make people feel like bankruptcy is really the only option, but that’s not the case at all. Everyone’s situation is going to be different, but if you really feel that you have what it takes to just get out of debt, then the time is definitely know to push forward — why not get started today?

The advantages of debt management plans

Debt management plans are a highly effective tool and probably the best alternative to the frequently devastating consequences of a fully-fledged bankruptcy: If all goes well, they can contribute to keeping your credit rating intact, save you time, reduce psychological pressure and prove helpful in upholding a good relationship with your creditors. One of the reasons why debt management plans are so efficient is because they are simple in principle and offer obvious and immediately visible benefits to both sides. As part of a debt management plan, you are renegotiating both your debt burden and the structure of your debt. You are entrusting a debt management company with dealing with your creditors – instead of managing many different loans with many different creditors, you are henceforth responsible only for a single monthly payment to the company, which then distributes the amount between your creditors. A debt management plan is so strikingly simple on paper, that you may even be tempted to set it up yourself. But is this really a viable option?

There are four good reasons why there are advantages to working with a professional, fee-charging debt management company:

1.    A fee-charging debt management company is working in your interest

Many, especially charities, have criticised fee-charging debt management companies for asking money from those already in debt. And yet, by paying such a company, you are providing them with a very good incentive to keep your best interests in mind – after all, should they prove to be unable to deliver on the goods, you will start looking for a competitor. The more a debt management company can do for you, the better it will fare in the long run.

2.    A fee-charging debt management company has the required connections

Connections are vital in every part of business life, so why should things be different in the debt management sector? Whether or not a creditor is willing to co-operate with you and to possibly reduce the overall amount to be paid back will depend largely on his trust in your commitment to the new plan. Debt management companies can operate as screening entities in this regard. Since they know many of the big credit-providing institutions in person, deals regarding debt management plans are typically struck quicker and more effectively.

3.    A fee-charging debt management company can work more efficiently

A big debt management company has thousands of customers all facing similar problems. This means that they will be able to benefit from so-called economies of scale. Especially the department taking care of the distribution of the money to the various creditors is capable of performing tasks which would costs you hours within no more than a few minutes. As a result, you are freed up from burdensome administrative work and can turn towards the more important duties – time really is money after all.

4.    A fee-charging debt management company may actually end up saving you money

For all of these different reasons, you may end up paying back less when working with a debt management company even after deducting their costs from the equation. In fact, a company like the Debt Advisory Line can proudly claim to save their customers 50% in debts on average. Although this is by no means guaranteed, there is indeed a very good chance that, by speaking to your creditors on your behalf, the debt management company is able to convince them that it is in their interest to bring down the sum originally agreed to.

Zap! Understanding The Debt Reduction Snowball

Debt is something that can be easily compared to weight loss. You see, when you have a massive weight loss goal, you want to get rid of it all at once. However, that’s just not the way weight loss works. You have to focus on the small victories in order to see the large victory take shape. You have to step back and think about all of the things that you actually want. You have to realize that it’s really all about getting to that end goal — by any means that you can think of. You don’t want to sit there thinking that you’ll never get the weight goal accomplished, and you definitely don’t want to think that you’re never going to become debt-free. A lot of people scoff at the concept of “debt freedom”, but the truth is that debt can be like a weight dragging you down deeper and deeper until you can’t even see the light. If you step back and make smart debt reduction choices, you’ll eventually get what you really crave.

Here’s the best way to go — the debt reduction snowball. Think about it — if you’re like most people, you’re going to be thinking about debt in terms of the biggest, baldest monster out there. That process can work for some people, but the truth is that if you’re like other people, your confidence might not be the best. Think about it — you’ve probably had this debt for years and years and it never seems to really go away. If you’re tracking your net worth, it means that you don’t seem to ever get out of the negatives, even by a bit. Yet now is the best time to start thinking in a new direction. You should actually focus on the smallest bills you have and then make plans to take care of them. It could seem silly at first, but it just might be the gateway to getting the confidence that you desperately need. It’s tempting to think that you’re in control… and then you flip out when you see exactly how much you owe. Instead of panicking, it’s time to remind yourself that this is just something that you have to do is you really want to make sure that you’re going to be okay in the end. It can be hard to face that debt and realize that some of it might be out of your control, but much of it is the spending habits that you have in your life. In order to get out of debt and stay that way, you are going to have to realize that you cannot spend your money on frivolous things that have no value at all. That’s only going to make it harder and harder to actually get anywhere in life. It’s a lot smarter in the long run to make sure that you truly stay focused on your main goal.

So let’s talk about that snowball more, shall we? It’s all about paying the lowest bill first. Yu can take extra money from raises, birthdays, Christmases, or even tax refund money and apply it to the smallest bill. The next month when you get the statement that says you have a zero balance, you need to post it on your fridge. Circle the “zero” amount. Realize that you accomplished something.

As you move through the ladder of debts, you’ll realize that you really do have the power to achieve much in your life. You really do have the power to get out of debt. Above all, that’s the lesson that you need to learn. You should also try to join a support group where people like you are all trying to do the same thing. It’s just something that you will need to think about in the long run — if you’re not careful you’re going to end up being unable to get anywhere with respect to your goals.

You have the power to do so much, but the question is whether or not you’ll actually step up and seize the life that you want. It can be hard to see life after debt if you’ve had it for so long. But trust us — a debt-free life isn’t an illusion, but a reality that you can claim for yourself!

Debt Consolidation: Answer to Your Ballooning Debt

Are you looking for a solution for your ballooning debts?  Do you use a big part of your monthly income to pay off your debt?  Then maybe debt consolidation is the best solution for you.  Many people actually have the same financial condition like yours, and they want to put an end to their problem.

Maybe I sound like a salesman who is about to offer you a product, but I am not.  I just want to help you with your current financial situation.  I want to give you some advices on how you can improve your credit rating.  This is what this article is all about.

The best solution, as I’ve said earlier, is debt consolidation.  What is debt consolidation?  Well, this is the process wherein all your debt or a percentage of it will be merged into a single account.  By availing of this option, you will be able to zero out your debt much easier.  This is very ideal for people with delinquent accounts.

If you currently have an uncontrollable debt or if you have credit cards with a high credit limit, it is a wise idea to try debt consolidation.  You will be granted this debt solution option a lot easier if you have any offers of balance transfer or if you still haven’t used up all your available credit. Debt consolidation has so many benefits, which include lower rates of interest and lower monthly installments.  If you are given the chance to take this great option, grab it as this can really resolve your debt problem and can make give your financial freedom.

There are so many debt consolidation companies nowadays, but it can be very risky to go for just any company because some are scammers while others do not have good service or offers.  This is the reason why you really have to scrutinize every debt consolidation company that you encounter along the way.  Take time to research and compare several companies before settling for one.

There is a big difference between a debt consolidation and debt settlement, although they are both being offered by some companies.  In a debt settlement, a company will negotiate with the credit provider that you are indebted to for lower payments.  This is merely aiming for a reduced debt rather than consolidating all your debt.

You do not have to live indebted forever as you have the option of availing debt consolidation.  Debt consolidation will not only help stabilize your finances, but it will also help you attain financial freedom.