Debt Suggestions » get out of debt http://debtsuggestions.com Suggestions on how to deal with debt and stay out of debt Wed, 07 Jul 2010 01:29:35 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Getting Approved For A Bad Credit Debt Consolidation Loan http://debtsuggestions.com/2010/03/09/getting-approved-for-a-bad-credit-debt-consolidation-loan/ http://debtsuggestions.com/2010/03/09/getting-approved-for-a-bad-credit-debt-consolidation-loan/#comments Tue, 09 Mar 2010 12:10:01 +0000 admin http://debtsuggestions.com/?p=147 As you get to the end of the month, your finances start to get stretched. Maybe an unexpected bill came in, maybe the post delayed your check to the credit card company. However it happened, you’re not alone – most people today will have bad credit, or some strikes against their credit record. It’s important [...]]]> As you get to the end of the month, your finances start to get stretched. Maybe an unexpected bill came in, maybe the post delayed your check to the credit card company. However it happened, you’re not alone – most people today will have bad credit, or some strikes against their credit record. It’s important to remember though that there are still ways to control and manage your debt – with a bad credit consolidation loan.

There are many companies that specialize in providing you with a bad credit debt consolidation loan. Recognizing that you are actively trying to tackle your debt, for many people such consolidation loans are the first step on the road to recovery from bad debt.

Be aware that having bad credit will affect the interest rate companies will offer you. The worse your credit rating, the higher the interest rate. Make sure you compare several bad credit debt consolidation loan companies, to see whether or not the interest rates they are charging are justifiable.

A bad debt consolidation loan will only help you manage and beat your debt if it can offer a competitive rate of interest, compared to your existing debts. Very often credit card companies will gradually increase their interest rates, so a consolidation loan will compare favorably, even with bad credit.

Use financial comparison websites, or the services of a financial adviser, to get an idea of what the average interest rate for a consolidation loan is. Compare this to the rates being offered for a bad credit debt consolidation loan, and then compare the interest rates and conditions from the various providers. Some may offer a payment holiday, or the flexibility of over payments. These can be helpful when managing your debt, but not if they come at the price of a much higher interest rate for the loan.

Once you have chose the provider for your bad credit debt consolidation loan, it’s important to recognize that this is the first stage to eliminating your debt. Make sure you pay your bad credit debt consolidation loan on time, otherwise you will be making your credit situation worse.

If you apply for any more credit cards or loans, these will show up on your credit report, which will have a negative effective on your credit rating. Given you have a bad credit rating to start with, it’s important to work on improving that. The best way is to not apply for further loans and credit cards, and make sure your bad credit debt consolidation loan is paid on time each month.

Credit reference agencies will record these regular payments in your credit file, and over time your credit score will gradually improve. Work with a financial adviser or accountant to work through your income and expenses, and produce a realistic budget. Sticking within the limits of this budget will prevent further debt.

Remember that although paying off existing high interest loans and credit cards will give short term debt relief, it’s the long term debt management you will need to focus on. A bad credit debt consolidation loan along with a manageable budget will help control your finances and reduce your debt.

]]> http://debtsuggestions.com/2010/03/09/getting-approved-for-a-bad-credit-debt-consolidation-loan/feed/ 0 Bad Credit Consolidation Loan http://debtsuggestions.com/2010/01/30/bad-credit-consolidation-loan/ http://debtsuggestions.com/2010/01/30/bad-credit-consolidation-loan/#comments Sat, 30 Jan 2010 14:00:50 +0000 admin http://debtsuggestions.com/2010/01/30/bad-credit-consolidation-loan/ If you have many loans and credit cards and are feeling the weight bearing down on you with the many monthly repayments, then the answer to your problems could be a bad credit consolidation loan. A consolidation loan means that you take out one single loan and pay off all the other creditors and just [...]]]> If you have many loans and credit cards and are feeling the weight bearing down on you with the many monthly repayments, then the answer to your problems could be a bad credit consolidation loan. A consolidation loan means that you take out one single loan and pay off all the other creditors and just make one easy and simple payment every month on the consolidation loan.

However if you have a history of bad credit then you will no doubt have found that getting a consolidation loan to do this and get back on track is a lot harder than it sounds. If you have a history of bad credit any lender is going to be very sceptical about lending you more money, this is when you should go to someone who specialises in bad credit loans and in particular bad credit consolidation loans.

If you can get a consolidation loan then this will make the monthly outgoings easier and help you to save on the amount you have going out each month, particularly if the current loans and credit cards have a high rate of interest on them. However it is essential that you shop around when it comes to getting a consolidation loan and you take into account the amount of time you have left outstanding on your current loans and credit cards in relation to the term of the new loan. While in the short term you could be saving on the monthly outgoings over the longer term it could end up costing you hundreds or thousands of pounds more.

Also take into account that if you go for a secured bad credit consolidation loan that you will be putting your home up against the loan and as such you risk losing the roof over your head.
Always make sure you understand the requirements of the loan and the total you will be paying put and take into account that the interest rate on your consolidation loan may rise in time.

]]> http://debtsuggestions.com/2010/01/30/bad-credit-consolidation-loan/feed/ 0 Get out of debt, with a budget http://debtsuggestions.com/2007/09/21/get-out-of-debt-with-a-budget/ http://debtsuggestions.com/2007/09/21/get-out-of-debt-with-a-budget/#comments Fri, 21 Sep 2007 15:59:09 +0000 admin http://debtsuggestions.com/2007/09/24/get-out-of-debt-with-a-budget/ Don’t spend more than you make! The key to getting out of debt is to not stay in it with the same bad habits. Credit cards are a huge convenience, however it’s much easier to swipe a card than to let go of a 20 dollar bill.

Commit to making a change, you’ve got to [...]]]> Don’t spend more than you make! The key to getting out of debt is to not stay in it with the same bad habits. Credit cards are a huge convenience, however it’s much easier to swipe a card than to let go of a 20 dollar bill.

Commit to making a change, you’ve got to stay motivated.

If possible switch entirely to using cash, it’s a lot easier to stay motivated when you can physically see the money leaving your hand.

Sit down and do some math, figure out how much you owe, how much you make, and your “must have” living expenses.

Once you know how much you owe you can draw up a budget, including a schedule for repaying your debts. Be realistic and work out what you can afford to repay and still stay within your budget.

Be careful with daily spending…if you don’t pay attention to the need to conserve money you will just continue to prolong the problem.

Switch to another credit card company who’s offering no interest on balance transfers for 6 months. This is a good way to buy some time and save on that ever growing interest payment. Be careful though, make sure you read the fine print.

If you’re carrying a large debt, ($3000+) then consider a debt consolidation company. They would love to make money off you, use their greed to get your out of the hole. Shop around and look for the best offer, the first place you find won’t always be the best choice/offer.
Don’t borrow any more money or take on any more debts until you have repaid what you already owe.

A few neat web based budget tools:

indybudget.com
budgetpulse.com
budgetedge.com

]]> http://debtsuggestions.com/2007/09/21/get-out-of-debt-with-a-budget/feed/ 0 Getting Out of Debt http://debtsuggestions.com/2007/09/14/getting-out-of-debt/ http://debtsuggestions.com/2007/09/14/getting-out-of-debt/#comments Fri, 14 Sep 2007 18:48:10 +0000 admin http://debtsuggestions.com/2007/09/16/getting-out-of-debt/ Here are a few suggestions on ways to get out of general debt:

Review your living expenses, decide where you can cut some spending.

A change in lifestyle can be a simple and effective adjustment. I see friends who MUST have their Starbucks daily, so lets do some math:

I sometimes get a Vanilla Bean [...]]]> Here are a few suggestions on ways to get out of general debt:

Review your living expenses, decide where you can cut some spending.

A change in lifestyle can be a simple and effective adjustment. I see friends who MUST have their Starbucks daily, so lets do some math:

I sometimes get a Vanilla Bean Venti size Cappuccino, it comes out to $4.something, so if we round down to $4 even we get $4 x 30 days in a month = $120/mo for something that you can live without. So given the fact I know these friends are spending around $75-$150 a month on Starbucks visits, I see that money spent as covering most power and water bills combined, if not more.

Is that change in lifestyle really going to kill you?

On a typical day at a local cafe near my office I see people spend anywhere from $7-$12 on lunch, and they have great food but it’s nothing they couldn’t live without. Yes, humans have to eat…but look at the math of buying lunch every day vs. making your own lunch.

$8 x 20 workdays = $160 a month to eat out, vs. roughly a third of that to buy the goods and make your own lunch every day. So there you have around $100 a month to put towards paying off that credit card. You also don’t have to totally cut yourself off from eating out, treat yourself to a nice lunch every Friday. You’re still saving a lot of money, and giving yourself a treat. If you happen to have one of those jobs with bad Monday’s switch your treat from Friday to Monday to make your day a bit better. Since you’re saving money, go ahead and splurge a little and treat yourself to a really nice lunch.

With some of the basic savings advice above the money you would save would easily give you a chance to double or triple a credit card payment. Try it for a month, it surely won’t cost you anything so see how much you save. Remembering the saying from my first grade teacher on math problems, “always do the easy problems first, then go back and work on the hard ones” the same rule can be applied to debt…pay off the small debts first, then go back and work on the larger debts. You’ll also feel better about the debt since one or two large debts hanging over your head is much better to manage than a lot of small ones driving you crazy.

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