Be Debt Free

Steve Smith


Consumers looking to get to grips with their finances during the first few weeks of the year should avoid unnecessary spending, an industry expert has reported.

According to James Ketchell, spokesperson for the Consumer Credit Counselling Service (CCCS), hitting the high streets in the quest for a bargain should be the last thing people do if they are aiming to get their spending under control. He suggested that in funding a trip to the January sales using a credit card, shoppers may find that their ability to manage their money comes under more pressure. This could well see people develop further fiscal difficulties at a time when homeowners may already be struggling with various spending demands, for example personal loans, household bills and overdrafts in the wake of heavy spending over the festive period.

He said: “In the new year, especially if one’s had a really expensive Christmas, the first thing to do is to not go to the sales. Because there’s nothing worse than having a big credit card debt and piling on another load of debt. The most important thing, really, is to set oneself a timetable for repaying any credit card or store card debt that people have gained over the Christmas period - and try to stick to that as much as possible.”

In turn, he claimed that creating and sticking to a budget is a particularly important thing that people should do at this time of year. By doing so, it is possible that consumers will be able to identify which areas their money is being spent on and if there any areas in which expenditure can be reduced to allow more to put towards paying back loans and credit cards. Mr Ketchell also advised those who find that they are under particular financial strain to consider seeking guidance from an independent advisory service.

He went to claim that the number of insolvencies is set to rise over the course of 2008, as more Britons develop problems paying back loans, plastic cards and other demands on their spending. However, the CCCS representative added: “Bankruptcy seems to have a very bad stigma attached to it and people for that reason do not go through with it.” Alternatively, those who are worried about their ability to manage their money may wish to consider applying for a debt consolidation loan. In taking out such a loan, it may be possible that borrowers will be able to avoid incurring the damage that their credit file would face should they file for bankruptcy, which may include limiting their access to cheap loans and other types of competitively-priced credit.

By applying for a debt consolidation loan in the first few weeks of 2008, consumers could discover that they are able to pay off numerous demands on their spending quickly and generate more disposable income. Last month, Owen Roberts, head of MyCallcredit, advised Britons to take the time to consider how they will manage various demands on their spending. He stated: “We should all take time to make sure our Christmas spending doesn’t leave us with a financial hangover in the new year.”

Lovable


Its not anyones but their own fault for getting themselves into debt. Now I know their are differ situations so let me explain myself correctly:

Now I understand if you had a reduction of income and now ur not able to pay back debt. But why didnt you plan for these situations in the first place. Why did you go and charge what you cannot afford? After all that is one reason us Americans are in so much debt…. living outside our means. IF YOU CANNOT AFFORD, DONT BUY!!!

Now some exceptions are understandable:

Medical reasons, lack of education in order to obtain a good job to survive, using credit for LIVING EXPENESE, and im sure many reasonable explanations.

My point is why do many people with debt complain about their creditors when they new what this debt could do to you. Especially people with fairly great incomes.

Example: A couple is making $9000/month net income. One of them loses their job so now they down to $5000/month, yet they have 35k in unseucred debt. Living a great life with a great mtg, 3 car pmts ( new vehicles) and they still complain and whine about thier debt, their creditors , the economy. That just does not make sense to me. First of all, with this income you shouldnt even hae to use credit cards, why cant people just live within their means and adjust your life style with what you can afford!!!

Im just wondering what all of you have to say. Doesnt it make you angry that you would want to have the same luxuries and priviliges and people with great jobs and incomes do not appreciate?? Many people do not even own homes or even a vehicle. Why are we Americans so selfish??

Do you agree?
I will be asking this question frequently becuase i am really interested in different opinions.

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Regina Maniam


The essence of being debt free is dependent on one’s ability to keep the expenses less than the total income of the household. Being able to budget will go a long way in keeping you debt free. Those who are very good at budgeting can even come up with savings even if they have meager incomes.

The problem sets in when a person fails to make an efficient financial plan and his expenses exceeds his earnings. When this happens, a person has no choice but to borrow money to make up for his financial deficiencies. Borrowing once or twice because of a mismanaged financial plan is normal but when borrowing becomes a regular thing, it can put a person in serious debt problems.

A person who borrows money from another is said to be in debt. The debts of a person can be minimal or it can reach up to millions depending on the credit limits of this person. Sometimes, a person who has assets but isn’t liquid can use these assets to get cash. Under this term, the person can be indebted for an amount less or more than his assets.

There are laws which provide that a person can never be forced to render services as payment for his debts. This is already called undue servitude which is prohibited by the laws of some countries. However, there are situations when the person who is in debt opts to settle his obligation by rendering his services.

This can happen if a person is so talented in his craft like painting and he opts to pay for his debts by creating a painting of the creditor or the assignee of the creditor. Sometimes, a person can pay his debts gradually or on an installment basis.

When a person dies, the law has provided for a hierarchy of preferences in the payment of such debts. Of course, payment of taxes to the government will always come first. The second priority for debt payments includes funeral expenses of the deceased and the payment for the wages of people.

Debt is really just a simple concept. It provides that a person who borrowed something from another is duty bound to pay that debt. However, the concept of debt becomes more complicated with the introduction of other concepts like mortgage, interest rates and other charges. Interest makes most debts double or even triple in amount. More often, the interest rates due for a certain debt is even higher than the principal amount borrowed.

A person who wants to get credit can do so in the form of a loan. A loan can either be secured to unsecured. A secured loan means the debtor borrowed some money and supported by collateral or a security for the loan. The security or collateral can come in the form of a house and lot, a car or any asset of the debtor. An unsecured loan means otherwise.

Most creditors require a security before granting a loan because it gives them something to hold on to or to forfeit in case the debtor defaults in payment. When the debtor fails to pay the debt within the agreed timeframe, then the creditor can foreclose the security or the collateral.

However, having an unsecured loan doesn’t mean that the debtor can renege on his debts. When the debtor fails to pay his loans, the creditor can still run after him by filing a case in court. When this happens, the debtor who has no cash can sell some of his assets to pay for his outstanding loan.

Being in debt is common even for the rich and the famous, the only difference between them and the common people is that their debts can be in the millions since they have more assets to support their loan. Unsecured loans most often have higher interest rates to make up for the lack of security.

Even third world countries are indebted to more developed countries. However, the debts of a country can go on forever because they keep on paying their loan but they also get new credits as their credit ratings go up.

There are instances when a pure lack of understanding of debts and hence managing debts has led people to get into worst debt situations than necessary. It is important to understand debt so that you can get to be as debt free as possible.

Catherine Brown


Being debt free is almost like a dream for some and more and more people are seeking help to become debt free. The concept of having credit available, using it wisely or not at all, saving religiously and planning for the future has become alien in our society. Some financial experts explain that living debt free means having no debt at all, but the definitions of debt free vary depending on who you ask. Debt free help is available widely, from financial planners to information on the internet. While some describe as not having any debts at all to others it means using credit productively and controlling the debt.

Freedom from debt is a lifestyle choice

While not having any debts is obviously the main goal, for the more pragmatic amongst us controlling debt is the best that we can realistically hope for. How is anyone apart from those born with a very large silver spoon in their mouth supposed to get on the property ladder without getting into the single largest cause of debt - the mortgage? Every family who wants to lead a debt free lifestyle needs to do so by having a committed frugal household budget plan.

To become debt free one has to distinguishing between needs and wants. In a materialistic society such as ours it is easy to be caught up by the glamour of advertising campaigns and spend a small fortune that you do not have on products you will never need.

Strategies to becoming debt free

The strategies for becoming debt free include avoiding usage of credit cards, loans and other credit to fund purchases. Mortgage debt consolidation, equity loans, credit card debt consolidation, debt settlement, debt management plans, and debt acceleration plans are some of the many different debt managing programs available for those borrowers who are struggling with the heavy monthly payments towards different debts.

Whilst each one of those debt management methods is may be relevant to you, the surest way of avoiding the need for such remedies is to always think before you buy .Do you need this or do you just want it. If the latter is the answer, particularly if you need credit to buy it then just leave it in the store.

You can also use the debt repayment accelerator plan to become debt free. This plan accelerates your the debt repayment capacity on the basis of the family budget and the priority of the debts. Also making weekly rather than monthly payments can have an effect.

Debt consolidation services – helping you to simplify the process

If you do have a debt problem and envy the debt free life of others the first thing you should do is seek the advice of a professional debt consolidation services company. Many of these companies have very highly trained staff and can have you back on the right financial track very quickly. Also try to adjust your attitude to one which will bring and keep that debt free lifestyle.

Budgeting – the key to a debt free life

Depending on the nature of your job and the family expenditure, you have to establish a perfect family budget in order to have some surplus cash available for the repayment of debts. If you are a couple, it is important that husband and wife sit together to work out and agree to the family budgets. Both the husband and wife of a family have to consult each other in deciding about which expenditure is most important and which is least important and has to cut down expenses accordingly. This will serve as a foundation for a debt free plan of a family. Debt free help can also be obtained from Credit counseling agencies, which help people in debt related issues.

Prioritise your debts

Prioritizing debts is a great start to becoming debt free. List all the amounts you owe by interest rate rather than the balance. Put high-interest loans at the top of the list. Now concentrate on paying off the debts at the top first. You will save more by paying off these expensive loans first, while keeping up the required repayments on the others.

Consider consolidating your debts

Debt consolidation involves combining higher-interest debts into one, lower-interest loan – in most cases this means folding them into your mortgage. Consolidating high interest personal loans and credit cards can be a sensible strategy, reducing your interest repayments significantly. But remember, you generally extend the term of the debt, and this may mean paying more interest long term. Debt consolidation is not for everyone.

While there is a lot of debt free help available from industry experts and also on the internet, it is easy to get confused and become complacent. Design a strategy the meets your individual requirements and follow the steps diligently on your path to becoming debt free.

Travis Newman


As soon as one hears the word ‘debt’, the immediate feeling or thought that flashes the mind is ‘bad’, and gets the treatment of an enemy to be evaded or destroyed at all costs. But debt has assumed the position of an unavoidable evil in the present day modern society. Due to social pressures individuals are tempted to make more expenditure to lead a lavish lifestyle. The aim and objective of a specialized professional debt help is to make individuals totally debt free and not to make them fall further in deeper debt trap.

Having huge debt and bad credit does not mean that the individual cannot lead a life with self respect. There is nothing to feel guilty about having enormous debt. There is no need to conclude or arrive at a judgment on indebtedness as worse, since any prejudiced opinion may cause an individual caught with stress, fear, anxiety, and head ache. It is a popularly accepted principle that the obsession which is constantly focused ultimately gets expanded and grows further. The aim in debt relief should be to get out of the debt which is an important job to be done in the beginning. Paying off the creditors with meticulous planning and action is the only way to deal with rising debts. There is no need to develop stress or anxiety about living and spending beyond resources and means. There is nothing to feel uncomfortable or painful on discussing the topic of debt and money. The subject of money or debt management is not conventionally taught in any business school, but has to be learnt by actual practice. An effective training on debt management can be learnt from friends, families, neighbors, TV shows and co-workers. They all pass on their outdated beliefs and opinions based on their experience which have to be filtered while applying them to solve the present day debt problems.

Without treating or concluding debt as good or evil, a workable and practical solution can be explored based on financial situation and circumstances. Becoming debt free is the real and actual freedom and economic independence with which one can live in peace. In our day to day affairs, everyone wishes to offer credit, be it a grocery store, local bank or petrol station. Though credit, as a tool, serve all the purposes of life, it should be kept under tight control and restraint according to budget.

To become totally debt free, first of all there should be an admission of debt and need of a strong will to become free. Only when the whole of responsibility of debt is owned, a long lasting solution can be attempted. A road map, plan and strategy have to be designed to walk freely and not fall in further debt trap. The mind should be kept open to find a permanent solution.

A resolution against debt should be drawn psychologically and no more new entry of debt should be added to the existing list of debts. A paradigm shift can be brought about by having a change of outlook in beliefs, attitudes and habits on buying products and services on credit. Attitude and outlook about credit/money serves the mind to make fresh choices in support of financial freedom. If one is not able to control expenditure to become debt free, expert and professional debt help should be sought immediately to save the boat from sinking.

James Banks


Living with debt can be a truly frightening prospect. Not only do you have to live with the constant humiliation and embarrassment of being branded as a person irresponsible with money matters by people who do not know any better, but your financial future is also put at stake. If you have a family, how will you keep on providing for their needs if your income is constantly eaten up by debt and there is not enough money to go around to address these needs?

If you are facing amounts of debt that you believe is enormous enough to be considered overwhelming, you should begin to take some steps to relieve yourself your debt. Plan out your debt reduction scheme and seek help. You can get the debt reduction assistance that you need by approaching a lawyer who specializes in debt reduction and settlement, or a third-party debt settlement agency. You can, of course, deal with your debt reduction alone by going directly to your creditors and negotiating a debt reduction scheme that is acceptable to all parties involved, but a third-party expert will be able to guide you more easily through the process.

Debt reduction, however, takes a lot of conscious effort. You have got to want it badly enough to be able to actually see the effects of any debt reduction plans you implement in your life to take place. Wanting it badly means making a conscious effort to change your lifestyle to suit your means and your altered financial status.

If you want to see whatever debt reduction plan you take to succeed, you should learn to manage your money. Set an itemized budget every month, taking into consideration all the usual and necessary expenses you and your family would have to make in order to live. More importantly, you should stick to this budget.

Another way you can get through your debt reduction plan is by avoiding impulsive spending. Impulse spending is probably what got you into debt in the first place. Whenever you feel like buying anything, ask yourself first if the item you want to buy is something that you need or something you just want. In that way, you will be able to control your spending.

Aside from controlling your spending, if you want to live through your debt reduction plan, you should live within your means. Buy only what you can afford to buy and give up branded or luxury items that you used to enjoy a lot before. If you are fond of dining out with your family, for example, a better alternative that will match your current financial status would be to go on a picnic with a picnic basket full of your own home-cooked food. It will even be more special that way.

When living through your debt reduction plan, make sure that you check your bills carefully. An error in a billing statement that is reported immediately can save you a good deal of cash. Also, be punctual in paying your bills so you would not have to be charged interest payments.

Follow all these and you will still be able to live comfortably while going through debt reduction.

Check these links to learn more:



http://www.commercialdebtcounseling.com

http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml

Abhishek Agarwal


It takes no time to get into debt. In fact it’s as easy as it gets, but coming out of debt can be a real tough thing to do. Reduction of debt in a credit card is a much needed step in getting out of debt, no matter what type of debt it is. What it needs is discipline and planning in how you spend your money.

Reduction of debt in a credit card starts by reducing your credit card expenditures. The first and most important trick to reduce debt in your credit card is to leave your credit cards at home. Leave home with only cash. This way of shopping removes your impulse shopping, and makes you take a much closer look at your purchases.

If it is something you really need and you don’t have the cash for it, you will return home to get your credit card, and then return to make the purchase. But you will discover, that more times, then you won’t bother going back to the store – now that’s spending control. It is probably the most effective method of reducing credit card spending.

The second effective way of reducing your credit card debt is consolidating your debt by moving it from a high Annual Percentage Rate (APR) credit card to a lower APR card, which is an excellent way on saving on interest and thus having your payment go a lot further to reducing your principle. If you have a credit card offer you’re an APR of 0% for 4 months you can enjoy other great incentives.

If you aren’t comfortable doing your own reduction of debt, you can always employ the aid of a credit card debt assistance company, who can outline all your options, and then you can decide which method you think you’d like to use.

There are other ways to accomplish reduction of credit card debt. You can contact your credit card for assistance in lowering your APR to reduce your debt load. This works for many people. If you don’t get the answer you want from the first person who answers the phone, just keep working your way up until you find someone who can help you. If you are working with a debt councilor they’ll take care of it for you.

Also remember, there are professional people out there who can provide you with some great advice on credit card debt reduction.

Debt Reduction - debtreduction123.net


 

 

We’ll examine four ways you can get your debt settlement under control and start working back on the road to financial recovery.

 

1. Communicate with your credit card companies. Ask each credit card company for help. They aren’t likely to forgive you your loan, but they may be willing to cut down your interest rate. If your interest rate is presently 12% or high, ask if they would be willing to cut their rate in half. Why would they consider doing this? Well, creditors do not want you to default on your loan and they want their principle back. Sure, a nice fat interest charge would be ideal too, but if they sense you are ready to default on your loan, you can expect that a lower rate will be offered instead.

 

2. Think over debt consolidation loan. You can pull all of your debt together into one account, preferably one featuring a fixed, low interest rate. You can use the proceeds from the debt consolidation loans to pay back your other creditors and then make monthly payments back to the loan consolidator.

 

3. Home refinancing. Refinancing your loan may be just the debt reduction help you need as the funds saved by you each month with lower mortgage payments could be used to pay off other debt. Caution: you are placing your home “at risk” if you opt for this choice.

 

Debt consolidation loans will save you money in interest repayments and save you from debt problems. Before you apply for one of many debt consolidation loans that the financial institutions offer, make sure you know the “fine print”. Debt Mediators take care of that for you.

Christina Costa


Whether your retirement seems decades away or just around the corner, it is something we have dreamed about at one point in our lives.

Have you had the daydream where you give that final notice and within weeks are on a plane to somewhere tropical to start your vacation for the rest of your life?

Also known as the “golden years,” retirement might not seem so golden if you find yourself with a mortgage to pay off, medical insurance, auto loans, country club expenses and the cost of living.

Typically, retirement means that you will need less money since your professionally expenses (lunch, clothing, parking, gas, etc.) are now eliminated. However you need to consider that there are other expenses that just might take their place.

It has been estimated that the average American is going to require around 70% of their income earned (in the peak years) for their retirement fund. So let’s say you were making $50,000 a year, now you are going to need about $35,000 in retirement to survive. This may seem like a lot, but take a few things into consideration.

Your medical expenses are going to be higher now because you are older. Now that you are not working, your insurance from your employer is gone. So lets look at a family (of two for example) might have a co-pay of $10 to $20, well their monthly medical expenses could be up to $1000.

Think about all the free time that comes with retirement. You know that has made its way into your dreams, heading out for a 10am tee time or brunch with the girls. The leisure expenses can add up as well.

While working, your monthly expenses probably include a mortgage, insurance, automobile payment and insurance, utilities, food and credit cards.

Some of these expenses will carry over into your retirement. Think insurance, utilities and food, things that you pretty much need to live. Now there are expenses that you can pay off and live without, like the credit cards, mortgage and auto loans. This should be your main priority to focus on before retirement so you can start off debt free.

Credit cards are probably your worst enemy. Start there and get it out of your life. You absolutely do not want to enter retirement with credit card debt and if you do, work now to minimize that debt. Managing your debt has become a huge problem for Americans. Approximately 30 million Americans are struggling with bad credit and that is usually due from credit cards.

Take the time now to analyze your debts. Come up with a plan to get out of debt and pay off all of your credit cards. You will be happy you did.

If you still have an automobile loan or loans, try to get it paid off before retirement. Next to credit card debt, you really don’t want to have a car payment at this point in life. Of course you need a car (think of all that free time that comes with retirement) just make sure to come up with another plan to pay off that car in full as well.

Now for the biggest expense in your life, the mortgage. Of course you need a place to live. That is unavoidable. If you start now, and make extra mortgage payments every year then you will be working to get rid of it. Let’s say you are paying $1000 a month, at the end of the year send them an extra $1000. Or you could break that up into smaller payments each month.

If you have a 30 year loan this method can reduce your mortgage term down to 23 years. Once you have paid the mortgage off that will eliminate your biggest expense, and in the future if you absolutely have to, you can take out a reverse mortgage.

Just remember that a lot of parents will start saving for their kids education before getting out of debt. Keep in mind that your children actually have a stronger earning potential than you do! Your ability to work in this fast-paced, quickly changing world with a high paying job is not as likely as your children.

Also, a good credit rating at this point is really important because you want to be able to use that towards any credit application in the event of emergencies. Getting rid of your debts before retirement will guarantee that you are in good standing.

Debt relief is available for those who need it. If you want to settle your debts before entering into retirement, there are companies who can help. They can negotiate on your behalf and before you know it, you will be on your way to financial freedom. After that, you will be living in retirement, not only stress-free, but debt-free as well.

Debt Free


Are you struggling to work out how you should be dealing with debts? Rest assured you are not alone, as more and more people are struggling to deal with their unsecured debts due to rising living costs and a lack of willingness to lend by most high-street banks.

You don’t have to worry about dealing with debts alone, there are companies our there that are willing to help you leave your debt worries behind and look forward to a debt free future. No matter how much debt you have or how many unsecured creditors you owe money to, it is never too late to seek out ways of dealing with debts.

There are a number of debt solutions on the market which are all designed to help you deal with debts and reduce your monthly payments to your creditors. These include:

Debt Management Programme – The debt management programme is offered by many financial solutions companies across the country. They are designed to offer you a reduced payment to your creditors. Making your unsecured debts more affordable means that you can keep to a good standard of living without having to worry about missing payments to your unsecured debt, but it is likely that the length of time you will be paying back this debt will increase.

Debt management programmes are only really suitable for those with debt which is less than £12,000, if your debt is higher than this level and you are struggling then you may be more suitable for an IVA.

IVA (Individual Voluntary Arrangements) – IVA’s were introduced as a more realistic alternative to bankruptcy for those who are struggling with high levels of debt. Once accepted onto an IVA, the average term is 60 months. During this IVA term you must commit to making a set reduced payment to your IVA. This will be distributed amongst your creditors who will write off any unpaid debt upon completion of an IVA.

An IVA is a legally binding contract between you and your unsecured creditors so it is essential that you continue to make the payments to your creditors so you do not have to risk bankruptcy.

These are just two of the ways which you could be dealing with you debt. The best way to go about dealing with your debts and to become debt free is to get in contact with a company which can offer you the full range of debt solutions.