Posts Tagged ‘Debt Articles’

How to Become Debt Free By Budgeting Your Money

April 24th, 2018 Comments off

Ok, so you have stumbled across create a budget and are probably wondering how in the world to get out from beneath a mountain of debt. This is a problem that plagues many people but the answer is much easier than the actions. Even though it is tough to get debt free, it CAN be done and I will show you how to get there.

One of the first huge steps in becoming debt free is in knowing where you stand financially. Knowing where you are financially means you HAVE TO draw up a budget. Creating a financial budget is EXTREMELY important to your long-term success. For you to get debt free you need to know what monthly income you have coming in and what monthly expenses you have going out every month. My personal budgets take this one step further; you also must take into account expenses that are likely to occur annually, such as vehicle registrations.

What do you put in a budget? I’ll show you what a typical expense budget might look like for the average American.

Rent/Mortgage – $995

Auto Insurance – $120

Auto Loan – $405

Auto Loan #2 – $300

Life Insurance – $64

Water – $40

Electricity – $81

Garbage – $19

Natural Gas – $120

Childcare – $495+

Gasoline – $300

Groceries – $995

Telephone – $40

Cable – $50

Internet – $49

Cell Phone – $99

Credit Card – $99

Student Loans – $101+

Total – $4385++

Looking at the finances shown above, each item taken alone doesn’t seem like too bad an idea. But together things start to get out of control. In the above budget we have almost $4400 of monthly expenses, AFTER taxes. In order to BREAK EVEN on this type of financial budget you HAVE TO be raking in about $70K per year. Keep in mind this doesn’t include children’s doctor’s visits, and all the other annual crap we haven’t even addressed yet, such as enrollment fees, the vehicle expenditures such as registrations and the one off mechanical failures that can cost an arm and a leg. It’s no wonder people are up to their eyeballs in debt. Most people don’t make $70K,$70,000 and most people have all kinds of one off expenditures that aren’t outlined on the above financial budget. In order to know where you can cut back, you must know what you have.

My first assignment for you people out there reading this is to do this very first step. Make a budget and BE HONEST – it will do you no good if it is not right. As soon as we get this done we will be talking about such things as discretionary spending and debt equity. Let us get our financial budgets prepared so we can begin working on a plan to BECOME DEBT FREE!!!

Richard DFO Hijinx has an article showing you how to create a financial budget

Lessen that Debt!

April 10th, 2018 Comments off

From the neighborhood grocery store to the biggest of banks, everyone was affected by the previous years recession. The worlds most powerful financial institutions collapsed right before our very eyes. This created a domino effect that led to smaller companies closing shop and their employees losing their jobs.

But with most people thinking that all this was caused by the biggest businesses, this is only partially true. It all started with the sub-prime crisis. Borrowers with low credit scores were given loans with interest rates so high hundreds of thousands of them, werent able to pay back.

Everybody blamed the Treasury department for the mess. Although they were in charge of lending together with the banks, it was the sub-prime crisis that fuelled this economic collapse. People with bad credit history were allowed to take on mortgages with the condition of higher interest rates in return. That alone made it unmanageable for most which led to the free fall of everything.

In short, the US and the entire world were crippled by one thing, bad debt.

Though getting credit is not always a bad thing. Even the richest governments and businesses borrow money. But it only turns out well if you can manage it correctly. For those who are already unable to repay their loans, it is good advice to start looking for a debt settlement program.

This also gives a sigh of relief to those in debt because it gives them a chance to clear their records while paying off a smaller amount than what was originally being asked of them. This could be possible with the help of these companies that offer debt settlement services. If the debt settlement program eventually works for you, youll be able to keep your house.

In the search for a company that provides debt settlement services, make sure you go for someone you can trust and is easy to work with. Their purpose is to help you lessen your burdens. You can have them organize your different credit card statements and settle it all at once, they can ask your creditors to give you lower interest rates, and they can also assist you to get a better credit standing despite your debt. You wont need to hear from those pesky collectors again!

You can also compare how different companies charge for their services. Some companies take off a certain percentage of the amount you pay to your creditors. Others collect payment from you when they have done the settlements in your behalf while some companies ask to get paid first before they even start assisting you. Talk to different people. Ask around for their recommendations. Do so as soon as possible so that debt gets cleared as soon as possible as well!

My name is Mike Edwards and I am a professional writer with a good knowledge of the Debt Settlement Program that Christian Debt Consolidation offer. I have also been very impressed with the Debt Settlement Services they offer and suggest you check them out.

Tips to Help You Eliminate Debt

March 12th, 2018 Comments off

Sadly there are many people who are dealing with a huge amount of debt. The statistics surrounding debt in American are astounding, and if you are in debt yourself, it’s time that you learn how to eliminate debt. If you are trying to figure out where the money went and how you ended up so deeply in debt, it’s time to take a closer look at your financial situation and then find a way to pay off debt. Here are some top tips that can help you to get back in control of your finances so you can get rid of that debt.

Establish the Amount of Debt You Have Before you can even begin clearing your debt, you first need to determine exactly how much money you owe. Because you may not realize just how much you do owe, you need to sit down and do some figures in order to determine what the total amount is. However, even though you may find the result to be shocking, it’s important that you don’t become despondent, but rather, you should realize that you now have a goal that you can work towards.

No More Spending When You Cannot Afford It One of the biggest causes for people accumulating debt is that they tend to live well beyond their means. One of the first things you need to do when you start trying to pay off your debt is that you need to put a stop to spending money on things you simply cannot afford to buy. If you don’t have the money for it, then simply don’t purchase it.

Start Saving Money One of the best ways to clear debt is to start saving money. Essentially, you should aim to accumulate at least enough savings to cover three to six months worth of expenses. Doing this will essentially provide you with a bit of a buffer in case of an emergency, such as an accident or unemployment. By having some money saved, you’ll be able to get through a crisis should it happen, without ending up even further in debt.

Buy with Cash Buy with cash if you want to eliminate debt. It’s easy to start spending more money when you only have to pull out your credit card. When you pay with cash, you are more likely to be careful about what you spend, avoiding overspending. It’s good to just avoid charging if at all possible so you can get yourself on a cash basis, which can aid you with getting out of debt.

Avoid Minimum Payments When you only make the minimum payments towards your debts, the vast majority of that money goes towards paying off the interest rather than the debt itself. In order for you to get ahead, you need to pay more than the minimum whenever possible.

Enter Into Negotiations In the vast majority of cases, creditors will be more than happy to negotiate a deal with anyone who is facing large amounts of debt, particularly if they are serious about clearing it. Essentially, if you’re serious about clearing your debt, then it would be in your own best interest to get in touch with your creditors in order to determine whether or not they are willing to accept a reduced amount, or perhaps, at least lower the interest rate. In fact, many creditors will waive the interest altogether. Remember, creditors also realize that it’s in their own best interest to work with you or else they could end up being on the loosing end.

Try to Increase Your Income In many cases you may find that you need to increase your monthly income in order to get rid of your debt. If your current situation does not allow for you to be able to pay off your debt, then you have no option but to look for alternative means of earning some extra money. This could mean you either begin looking for another job, or of course, you could try to find a second job in order to boost your current monthly income.

For more useful articles about eliminating debt visit my How to Eliminate Debt Blog. Take action today so you can live a better tomorrow.

Debt Consolidation: The Plain Simple Truth

November 1st, 2017 Comments off

With an average American household today running anywhere from $10,000 in debt a huge part of that is credit card debt. Living well beyond your means has totally taken its toll. There is a great sinking feeling that will come naturally to individuals mind that standard people like you and me are going broke and seeing the inevitable happening to them when they see that they owe some monthly payment toward their credit cards adjusted only the interest they owe and the total principal due remains the same. In fact it produces month after month as any interest that remains unpaid is added up to the principal amount. This is the problem. You are revolving debt and it will not go on forever. The problem should be taken care of today. Take a good look at what the interest rate you are paying on your credit cards and you’ll be surprised on the crazy 20% percent you’re paying per annum.

A consolidation loan could pay off your entire credit card debits at one go and it comes at a low interest of only 13% per annum.. This will work out to a great saving of 15% on your rate and is a bigger reduction on your interest that you outgo with you monthly payment that’s as much as 60% of what your paying. Those who have paid $1000 every month as monthly payments can now look to pay a small amount of $400 only. It’s the best of both worlds by leaving you more money each month in your hand and give you a better financial position by paying off your debts. You can expect to become debt free and be a lot happier. All this could happen with financial prudence and care.

Remember if the interest rate has got to be lower you have to provide collateral which might well be your house. If you do not really take enough time to make these payments on time you could lose your home it’s really that simple. Remember that the lender can do what they want if you default on the loan because it’s fully secured and those are the terms you signed on. Now a proper financial discipline should be maintained with respect to your credit cards.

If you instill proper financial discipline you be able to complete your loan and become a happier person because of it. One pitfall that many people get into is since your due have be fully paid you might be tempted that you can continue to spend like you did in the past with your credit cards. If you do this you’ll run the risk of running into even more debt. Only this time you would have nothing to pay them off and that will be the route to bankruptcy.

Also remember you are still in debt and your roof over your head is in stake. Carefully select a lender with clean records for your debt consolidation loan. You can barter for better terms and check out all the options before you make a decision that will make your life better.

Next for more great information check out our site Debt Consoldiation Loans For Bad Credit

The Best Ways to Get Out of Debt

September 12th, 2017 Comments off

You might have heard that there are a million ways to make money. Likewise, there are probably just as many ways to get out of debt, but when it comes to achieving that goal honestly and effectively, your options are reduced. Here, we will explore three of the best ways to get out of debt without having to resort to debt avoidance techniques like bankruptcy or fraud (yikes). The first two will probably not come as much of a surprise, but the last one will certainly help expedite your efforts.

One of the most popular ways to get out of debt involves creating a budget and finding ways to reduce expenses. The money you save on expenses, whether $10 per week or $400 per month, can be used to pay down overall debt. When relying on this method, you often make sacrifices to your lifestyle. Instead of eating out twice per month, you eat out once. Instead of buying the expensive brands, you buy the cheaper. Still, this is definitely one of the five best ways to get out of debt.

When it comes to popular ways to get out of debt, looking at increasing income is definitely in the top three. This is because it is relatively easy to do in some cases. To earn more income, debtors can either take on a new job at a high rate of pay or they can get a second job. Ideally, the extra funds earned are paid toward debt. What makes this option a little more difficult, particularly at times like these, is that getting a new job offer could require updated skills or knowledge, and in some cases can mean extended travel. These expenses are often offset by the higher earnings.

Our third recommendation uses both of the previous strategies. In other words you would reduce expenses while simultaneously increasing income. For example, suppose you spend $500 every month on expenses. This would mean cutting back, say, 20% or $100 and spending only $400 instead. As well, assume you earn $2,500 every month after-tax. You would want to find additional work that would improve cash flow by, say 5% or $125. At the end of the year, the $100 in savings and $125 in extra income would result in additional debt payments of $2,700! It may not seem like a lot on its own or after every month, but after a full year, the repayment amount clearly adds up and has an accelerating impact on your total debt.

Hopefully, these three popular ways to get out of debt have given you some inspiration and insight into how easily you can work your way out of debt. Clearly, these are not top-secret tactics. In fact, they are easily executable and once you put such tactics into practice you may even uncover other ways to get out of debt. The point is that taking action should come first and if any of these three methods can help, then please go ahead and get started today.

To learn more
ways to get out of debt visit How To Repay, Chris Blanchet’s website where only original materials are published. Alternately, for an abundance of debt-related information, you may visit
Debt Consolidation where Chris is a regular contributor among a dozen or more other experts in the field.