Kerrrrrunch! That’s the sound of your vehicle as it skids on an invisible patch of black ice and into a tree. Luckily you aren’t hurt, but you have a real fender bender, and of course, because you are struggling to get by, you’ve only got basic insurance, and you’re not covered.
So, you get a friend to tow you to the shop, and you reel back in amazement as the guy there quotes you the price of the repair. No way can you pay that before your next pay check comes in, and that’s two weeks away. If you can’t drive your car, you can’t get to work, and if you can’t get to work, you are definitely not going to be the boss’s favorite. In fact, you might lose that ever-so-hard- to- find job.
Don’t worry. Immediate help is at hand in the form of a payday loan. Payday loans are designed for just this kind of life emergency. Sure, they cost a bit, but not as much as losing your job would, and the cost is actually pretty reasonable because the unsecured loan is only for a couple of weeks. You can even get a payday loan on line these days, just as long as you have a job and a bank account. It’s fast, discreet and easy and the people on the other end won’t make you feel small.
OK, you and your family are going to be eating Ramon noodles for the next couple of weeks so that you can pay the loan off when it comes in, but at least you can get over your emergency. Within an hour, you’re back at the shop, cash in hand, and paying for the repairs you need.
What do credit card companies want? Seems like an obvious question, but think about it. They make money in two ways. They charge merchants a commission when you use your card (which is why you can often get a cash discount) and they make money on the interest that you pay each month on the outstanding balance.
So customers like me are a bit of a drag. I use my credit card a lot, but I pay if off religiously at the end of each month. I don’t think I’ve ever paid a penny interest to my card companies. So I am not a great bargain for them.
No, the person they are looking for runs their card up to the limit, and pays the minimum, or a bit more, each month. They love it if you have more than one card, even better if you have a few store cards – many seemingly different cards are in fact all owned by the same companies.
What they don’t like is if you fall badly behind. The odd month is OK, because they can slap a nice big penalty on you – more money for them. If you start not to be able to pay at all, then the screws will tighten. Nasty letters, threatening phone calls, even visits to your home. At this stage, don’t hesitate. Get a debt consolidation service to help you consolidate debt and sort out your problems. They are the pros, and you need a pro to go face to face with your creditors, if you’re going to come out of all this with a reasonable financial position.
And when you do – try not to get into debt again!
When the economy was at its peak, many consumers were spending beyond their means and piling on debt and seeking out debt consolidation services seem to be the norm now. By the time the financial markets began stumbling in 2008, Americans had accumulated over $12 trillion in debt. This fiscal suicide was propelled, in most part, by the credit crisis of that period. Homeowners had signed their life savings away for oversized homes and excessive credit card purchases.
Since that time, household debt has fallen by $1.4 trillion. According to a recent Federal Reserve report, not only have overall mortgage balances dropped, but so have the number of delinquencies and foreclosures. While Americans seem to be paying down their mortgages, they have amassed more school loans, purchased additional cars and increased their credit card debt.
Debt is not always bad, so long as buyers learn to manage their finances and make sound purchasing decisions. If they’re already over their heads, they can still turn things around. Here are a few steps they can take to manage their finances and avoid sinking further in a pool of credit:
• Credit Cards. To avoid needless extra charges, pay your balances in full every month. What many people are not aware of is that interest rates are compounded on unpaid balances. If your credit cards have already been maxed out or you’re paying the minimum amount, find a credit card that offers low interest rates and consolidate your balances to reduce your monthly payments.
• School Loans: Make your payments timely. If you have extra money on hand, use it to make an additional payment to principal. If you work for an employer who reimburses tuition costs, take advantage of that opportunity. Consult your debt consolidation loans lender about alternative payment options and negotiate the interest rate.
• Home Purchases. There are many tools available online that help buyers calculate an affordable price range for home purchases. These tools rely on factors such as salary, outstanding debt, and standard of living. Existing homeowners can make payments toward the principle to reduce their home price. Finally, consider refinancing when interest rates are low and reducing the length of the loan. Avoid purchasing extra points to reduce your interest rate though. In the long run, the savings don’t really add up.
Managing credit is one of the most important skills you can acquire to ensure financial health. Knowing your income, budgeting your expenditure, ensuring that necessities are paid for first, creating a savings fund, buying luxuries only when you have a surplus – these are the ABC’s of good budgeting.
But when times are good it’s easy to get carried away and simply borrow too much money. The ABC gets thrown out of the window – after all, there’s always more money coming down the line – isn’t there? The answer to that question for many people, in the kind of hard times we are living in, is “No.”
Bad spending habits are easy to acquire and hard to loose. That’s why so many people today are calling on debt consolidation services to help dig themselves out of the financial mire. Mortgages, re-mortgages, personal loans, credit card and store card debt, can mount up to frightening proportions when jobs are lost or working hours are cut.
The phone calls, letters and even visits to your home by debt collectors can make life a living nightmare – especially if you are trying to conceal your problems form you nearest and dearest. The answer is to face up to things, and let a debt consolidating service take over all these seemingly insoluble problems on your behalf.
The first thing they will do is call off the dogs – they’ll inform all your creditors that they have taken over your affairs, and you can refer everything to them. Then they will negotiate the lowest possible settlement terms for each of your debts, extending payment terms if necessary. Finally they will roll it all up into one manageable payment which you make to the debt consolidation service each month.
It won’t be easy, you are going to have to retrieve that ABC and start sticking to it again, but it will enable you to clear the decks and eventually become debt free.
Debt consolidation loans provide a lifeline to persons and several families who are fighting to manage. If you are now worried about maintaining with mortgage repayments and settling credit card debt, by utilizing a loan consolidator you will be able to bring about a scenario that’s more appealing. Thankfully, even when you’ve got a low credit rating there’s still help available for you.
It’s all too easy to finish up keeping multiple debts. Lenders are nevertheless keen to provide lines of credit to individuals of every income group. The issue is that nowadays the price of living is growing quickly, but wages aren’t growing at the same speed. The outcome of this really is that millions of homes are now falling in to poverty with severe and disastrous results.
If you were to approach regular banks, you might not be satisfied with such a good reaction. To locate where to find the right consolidation support, begin your search on-line at sites such as debtcafe.net. It will not take you long to locate info on these institutions who cater to people in your specific circumstance. Furthermore, using the web you can immediately evaluate your choices.
It is essential to move ahead and consolidate debts only if you’re 100% sure that it is the best actions to take. You need to consult an impartial professional and seek guidance into whether this really is the best choice. For a beginning you should attempt and step back and work-out why you have a difficulty. Possibly it is because the interest accrued on your present loans is extreme, or possibly it is because the repayment dates are spread out to such a degree they are difficult to keep track of.
It might even maintain your interest to take a look at numerous financial planning forums in respect to which consolidation support to use. By investigating the views and ideas of other customers you need to be able to recognize which support and lender would be best considering your current scenario.
Debt consolidation loans can help turnaround a period of economic hardship. When seeking support, be sure that the company you use is initiated and has a great standing. If you’re to choose an on-line establishment, ensure the thing is genuine and not just a rip-off. With the proper strategy you need to be in a position to eliminate the tension and worry connected with numerous debts and a low credit rating.
Credit card debt can be a horrible thing to deal with. The interest on the cards keeps on adding up making the debt more difficult to pay off. The good news is that there are a few ways to deal with this debt to greatly reduce it. While bankruptcy may have crossed your mind, this is not recommended because it interferes with various parts of your life for a long time. Instead, you may want to consider debt settlement or debt consolidation.
You can use these two options to reduce or even eliminate credit card debt. It doesn’t matter how many credit cards you have or what level of debt you have. If you can prove that you are having difficulties with the payments and that you also have a legitimate reason for it, you can apply for either of these methods.
There is a big difference between settlement and debt consolidation but you can actually have both together in a contractual agreement. Debt settlement is when you negotiate with the lenders to reduce the amount of money that you owe them. Consolidation is when you take out a loan that covers all of the separate debts. These consolidation loans usually have lower interest rates and a better payment schedule to help you reduce your debt faster.
There are some financial companies that do all of this work for you. They negotiate with the lenders to reduce your debt. They then offer you a loan to cover these new amounts. They pay the debt and you make the payments for your new loan.
Both the debt settlement and the loan consolidation solutions work for a variety of situations. It is important however to analyze your situation to ensure that either of these two debt solutions are suitable. In the case that you need assistance with them, there is always someone available to help.
Looking up at the massive mountain of credit card debt you have accumulated can be a daunting task. You may ask yourself, “How did I get myself into this mess? How did the balance get so high? I don’t have extra money to pay this down! Did I really need the $250 robotic dancing monkey?” By finding a good credit consolidation service and also changing your bad financial habits now, you can conquer the burdensome debt mountain.
Any kind of debt is debilitating. The most devastating is credit card debt. Unfortunately, there is no quick-fix for the massive black hole of debt that can pile up quickly on your American Express or Discover card. In a society that tends to value instant gratification (as evidenced by our own government’s frivolous spending), credit cards are used by many to purchase the brand new TV or take the vacation to Hawaii that they, in actuality, cannot afford.
By simply paying the minimum payment, it will take years to pay down a high balance. Recent legislation requires all credit card companies to disclose on the monthly statement the amount of time it will take to pay down the debt by only making the minimum payment. First and foremost, it is vital to paying more than the minimum payment. This can be uncomfortable at first, and you will have to make sacrifices in other areas of your budget. The credit card company that holds your debt wants you to only make the minimum payment. This costs you more and makes them more money.
Say you have a modest balance of $500 with a very conservative 15% APR. By making the minimum payment of $25 per month, it would take 23 months to pay off the card! By making such a small payment against a balance with a high interest rate, you are digging yourself a debt hole. Reduce the balance with the most severe interest rate first. This is the account costing you the most money. It can be very rewarding to pay down the most expensive debt first.