Debt Relief Options
There are four traditional debt relief options: credit counseling, debt consolidation, bankruptcy, and making credit card payments. Give
Freedom Debt Relief (FDR) a call to find out about their "Debt Reduction Program", and why it is the best solution for most of consumers.
FDR is confident they can lower your monthly payments when compared to credit counseling organizations, especially since many of those companies work with, and are funded by the very creditors that are harassing you- and they split the interest profits at your expense.
FDR knows that getting a debt consolidation loan puts your assets, car, and home at risk. They also haven't found anyone who actually comes out ahead by borrowing money, since the debt is not actually reduced since you are dealing with the interest on the loan.
Bankruptcy is serious business. Yeah, you may keep creditors at bay, but it stays on your credit report and record for 7-10 years, and has the social stigma of being a scar that will follow you for the rest of your life. The actual court records can last for your lifetime. Have fun trying to get a new home, a car, a lease, or insurance with that black mark on your record.
And, I've already blogged about how paying the minimum payment due on credit cards is one of the worst ways to manage your life.
If you want to find out about the alternative to actually reduce debt, check out FreedomDebtRelief.com.
Labels: Debt
MSN Money's 12 Necessities that drain your cash
I have hotmail and yahoo e-mail accounts and part of the daily ritual is reading the MSN or Yahoo headlines and social stories. Sometimes I resist clicking on the crazy headlines, like "WAS George Washington the first president?" and "Why it's better to rent than to buy", but other times I can't resist. Since I have been ranting about how American love to spend money on luxuries like the
iPhone, I clicked on
12 new 'needs' that drain your cash.
Before I go on, I just want to say that most of the Yahoo and MSN articles are really paid advertisements or promotions for new books or websites. That being said, this list was pretty solid. I will give my comments after each one.
1- Daily latte (Starbucks). I agree with this. Is it necessary to get "special" coffee at Starbucks or now at the freakin' corner gas station? Home brewed not good enough for you? How about skipping on coffee all together and drink tea or something else which is a lot cheaper?
2- Cable TV. I agree with this. If you HAVE to get cable (or satellite) you'd better get basic. The premium channels are a rip-off, especially that you can rent all those cool HBO or Showtimes TV series on DVD. Cable bills kill families.
3- Manicures/pedicures: Suggesting to your wife or girlfriend to stop doing this is a one-way ticket to the dog house. But seriously ladies...just think about cutting it down and doing it yourself.
4- Botox: Truthfully, monthly Botox treatments seems to be a filthy rich thing and I don't know any middle or lower class people that spend money on that.
5- Bottled water: I agree. If you live in a city that has clean running water, you are wasting your money. If you live in a city that warns against drinking tap water, boil it first and save tons of money.
6- The second car. Probably the most controversial thing on this list so far. It takes a lot of planning to just have one car in a marriage (and with kids), and many times it is truly a need. Granted, two cars does drain the monthly budget, but this one takes a lot thinking and planning about- and would probably cause a lot of arguments.
7- Cell phones. Regular DailySkew readers know that I am against cell phones. Some families have 4 of them. Time to think about prepaid ones.
8- Lawn service. Average cost is $65 to $90 per week. You may want to...gasp...do it yourself?
9- Clothes. They last a long time. So why do we keep stockpiling them? Again, try telling your woman to stop buying new clothes, shoes, or handbags, and see what happens.
10- Private school. A huge myth that is worth $8,000 to $35,000 a year.
11- Expensive birthday parties for your kids. Some kid parties get out of control. You need to plan fun activities without throwing cash into it. Kids don't care!
12- Pet grooming. Pet's vet bills are astronomical, so you can save by doing your own grooming.
Of course, if you don't have a family of your won or pets you don't have to worry about a lot of them. I don't predict any changes in the habits of Americans any time soon, regardless of the state of the economy. However, it is good to at least THINK about where your money goes every month, and if you really NEED something.
Labels: Debt, society
Get out of debt
Do you have any
Debt Management Plans?
Having debt is actually necessary to function in society- after all, who has money to buy a house, car, or college all at once? Without loans it is just not possible for an average citizen to try and better his or her life.
That being said, getting too far into debt can be avoided by budgeting smart, maintaining employment, and not making unnecessary purchases with numerous credit cards. Making the minimum credit card payment is not good at all. Missing payments will bury you even deeper. Skipping on a mortgage payment is begging for home foreclosure proceedings to commence.
One major step I take to avoid bankruptcy is to make my payments on time every month. The payments are sizable, too. It's the only way to chip away at the interest fees.
Now, if your debt is very deep and complicated, and you are struggling to budget yourself, a UK company like Abacus Debt Management can help you make
one affordable payment to them, which is distributed to your creditors. Many times, this new payment is half of your existing payments, but obviously will depend upon individual circumstances.
Unlike an IVA, debt management is an informal agreement, which does not involve courts and does not require high minimum debts.
Labels: Debt
Why people can't get out of debt
Although I have lived from paycheck to paycheck at times in my life, I've never had issues with drowning in
credit card debt. I realize I am extremely lucky in that respect. Part of the reason why I never had to deal with
Bankruptcy is because I keep my expenses low every month, and save money for the inevitable emergencies.
However, some members of my family and my co-workers have been struggling with running up credit cards because they don't have enough paycheck cash from week to week. This forces them to buy the cell phones, cars, computers, toys for their children, shoes, and pocketbooks on credit, in addition to juggling school loans and mortgages. With the price of gas increasing and the difficulty of selling a home right now, many of my co-workers and family members are feeling the crunch and need
Debt relief and
Debt help.
A site like
BillsIQ will analyze your financial health, and give you pointers on what types of
Debt consolidation would work best for you.
For example, if you are just paying the minimum amounts for your credit cards every month, you are actually digging yourself in a bigger hole. If you make late payments or skip payments, your credit score is going to take a hit. In the United States poor credit is like invisible chains that prevent you from achieving your dreams.
Labels: Credit Cards, Debt
