Archive for February 21st, 2009

Debt Free Help – Ask for it

Saturday, February 21st, 2009
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.



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Be Debt Free-save the Boat From Sinking

Saturday, February 21st, 2009
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.



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