Debt Suggestions

Suggestions on how to deal with debt and stay out of debt

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1. Combine your cable, internet and telephone service. Companies now offer combined services that not only cost less, but offer the convenience of a single bill.
2. Slow down your internet service. I went to the slower internet service option with my cable company and saved $15 per month. And I haven’t noticed a difference when surfing the Net.
3. Send away for and follow up on rebates. After you buy a product with a rebate, send in the form that day. Then mark your calendar to remind yourself to follow up with the rebate company if the check hasn’t show up.
4. Buy a refurbished Mac: I’ve written about this before because it is a great way to buy not only computers, but iPods and iPhones as well. You can check out the details on how to buy a refurbished iPhone. Buy a refurbished MacBook
5. Convert to a gas water heater. They are more efficient and will save you money in the long run.
6. Request a reduction in the interest rate for your home equity line of credit. I did and my mortgage company agreed to reduce the rate by more than 0.50%. And if you are looking for a home equity loan, is a great place to check out available options.
7. Request a reduction in the interest rate on your credit cards. As with home equity loans, credit card companies sometimes are willing to reduce the interest rate. It can’t hurt to ask.
8. Refinance you mortgage. If you can reduce your interest rate by one percent or more, it is often beneficial to refinance. This is particularly true for those with high rates due to less than stellar credit scores. If your score has improved, you may qualify for a better rate. I would start by asking your current mortgage lender about lower rates. Here’s a refinance calculator to help you determine if refinancing is right for you.
9. Get rid of Private Mortgage Insurance. If your down payment was less than 20%, you are probably paying PMI. Once you have a 20% cushion through reducing your debt and home appreciation (yes, prices do go up from time to time), contact your mortgage company to start the process of removing the PMI.
10. Get your books from the library. I love books and read every day. While I buy some of the books I read, most come from the library. Simply put, it’s hard to beat free.
11. Get DVDs from the library. Many libraries now have movies on DVD that can be checked out. If your library offers this service, it sure beats paying Blockbuster or Netflix.
12. Get DVDs from Red Box. If your library doesn’t offer DVDs, get your moves from Red Box. It costs just one dollar per night. You find Red Box locations here. Netflix is also a great, low cost and convenient alternative.
13. Read magazines at the library or online. Too many magazines can cost a fortune. And how many times have you bought a magazine based on the cover and been disappointed by the lack of substance. At the library you can read magazines for free. And many magazines now offer their content for free online.
14. Subscribe to magazines that are must reads. If you must have a certain magazine each month, subscribe. Subscriptions offer substantial savings over the cost at the newsstand. Update: Amazon offers some great deals on personal finance magazines.
15. Buy your car over the internet: Search the internet for information on the car you want and then send e-mail requests to dealers for the best price. Even if the dealer is located in another state, the cost to have the car delivered may still be worth it. I paid $500 to have a Honda Odyssey shipped 500 miles and still saved $1,000 over the best local price available.
16. Request a discount on trash service. For some reason this is a highly competitive business. If you get a better offer in the mail for trash service, call your current trash company and ask them to beat the offer. My trash service has reduced its rates twice in six months to match competing offers.
17. Never pay checking account fees. I hate bank fees. With so many free checking account plans available, there’s no reason to pay a fee. And if the bank happens to charge you one, ask them to reverse the fee or take your business to another bank.
18. Get a rewards card. There are many reward cards that pay out in cash or points that can be redeemed for travel or products. Many of these cards don’t have an annual fee. I recently traveled to my college reunion for free using points earned from a credit card. My favorite rewards card is American Express Gold Card.
19. Don’t pay interest on credit cards. This is obvious, but I soon as you fail to pay off the credit card in full, the high interest payments start to eat away at your monthly budget. If the temptation to spend more than you can pay on a credit card is to great, get rid of the credit card (and ignore the previous tip!).
20. Take advantage of 0% credit card offers. I’ve saved thousands of dollars using 0% balance transfer credit cards. Again, as long as the cards won’t cause you to spend more, they can offer substantial savings. Make sure, however, that you keep an eye on the balance transfer fee, which can wipe out your savings.
21. Replace incandescent bulbs with compact fluorescent light (CFLs) bulbs. These bulbs use 75% less energy and last 10 times longer. They do take some getting used to, and they won’t work in every light fixture. But use them where it makes sense and save energy and money.
22. Drive your car longer. The buy new versus used debate often overlooks the most important factor–how long you own your car. Drive it as long as you safely can for substantial savings.
23. Pay your life insurance annually. Insurance companies charge you more if you pay monthly, quarterly or semi-annually. Pay once a year and you’ll pay less.
24. Pay car insurance semi-annually. At least with my car insurance, they offer quarterly and semi-annual payment options. It costs more to pay quarterly, and twice a year is more convenient anyway.
25. Increase insurance deductibles. Most of us don’t need to be insured for all losses over $100 on our car, for example. Although we wouldn’t want to pay a $250 or even $500 deductible, we could. If that’s you, find out how much you’d save from raising your deductible. I’ve raised my deductibles on my auto insurance and home owner’s insurance and saved a considerable amount.

Get Out of Debt: How to Lower Credit Card debt will help you look differently at your approach to becoming debt free.

To lower your credit card bills and become debt free stop brainlessly sending in minimum monthly payments to your credit card and start sending in weekly payments. If you carry a balance on one or more credit cards, start paying a weekly payment instead of a monthly minimum payment.

To lower your credit card bills, put your credit card payments on a weekly recurring auto-pay schedule with the bank instead of paying monthly. If you are in credit card debt and carrying a balance each month, this is a definite recommendation for you to consider.

Corporate America has done a beautiful job of training us to pay bills once a month. While you’re paying your minimum payment once a month, interest is accruing DAILY on your credit card balance. Take a moment and think about that last sentence. If you are carrying a balance, the credit card company is adding interest daily.. daily.. daily. To improve your cash flow and counteract this, you obviously need to reduce the balance you’re carrying.

For example, if you normally pay $100 each month, now you will pay $25 each week. It doesn’t cost you any additional money per month but WOW will you start to see the finance charges slow down. Pick one credit card that you are trying to pay off and send a little extra money to this card each week while you continue to send the minimum to the other cards each week.

Just because the credit card company says you owe them once a month; you need to think differently about how to lower your credit card debt. Paying weekly instead of monthly is a simple step to thinking differently.

There are few problems in life that can be more damaging than poor credit. Poor credit translates into a low credit score, causing all manner of trouble for American citizens.

A low credit score can have very damaging effects on one’s financial life and well being. For example, a low credit score can mean higher interest rates when purchasing a home.

Higher interest rates on a home mean a higher house payment. Having a house payment start at a high level means that one will not be able to afford as nice a house as he or she would if he or she were starting with a high credit score.

Some people with low credit scores would like to refinance the home they do own, but are unable to because the interest rate they receive will make their house payment too steep.

Even with the abundance of credit card offers most of us receive in the mail, those with low credit scores do not have the opportunity to obtain a credit card. Credit cards are often portrayed in a negative light, but they do have their uses.

For example, take the case of a family with a low credit score and no credit card who would like to go on a vacation. This family would run into two problems when attempting to plan the vacation.

For starters, the family would have much difficulty obtaining a reservation for accommodations. Most hotels and vacation rental companies require a credit card number to reserve a room or vacation home.

Secondly, the family would not be able to make a reservation for a rental car. As with accommodations, rentals on cars can only be made with credit cards.

If someone with poor credit would take the necessary steps to increase their credit rating, many benefits would immediately be in place.

Suddenly, this person would be able to make reservations for vacation accommodations and rental cars. When attempting to purchase a car, he or she would be able to obtain financing easily and with a lower interest rate.

When house hunting, this person would realize that he or she could afford a nicer home with the same payments he or she was making previously without an increase in monthly house payment.

Basically, those with higher credit scores are able to live more cheaply than those with lower credit scores. Those with higher credit scores have saved countless dollars over their lifetimes while those with lower credit scores needlessly spend money.

In addition to financial burdens, those with low credit scores must deal with other inconveniences.

Many people with low credit scores do not make their payments on time. Therefore, they must deal with phone calls from debt collectors that can be embarrassing and frightening.

So, how can a credit score be repaired? There are certain steps individuals can take that will help them start on the road to credit recovery.

The first step is to know what is in the credit report. There are three agencies that handle credit reports and information should be obtained from all three.

Once armed with knowledge of the credit report, an individual is ready to take action.

By writing letters and calling the credit agencies, credit scores can increase. These means of communication must be well planned and be executed in a calm and professional manner.

Once credit agencies have been contacted, the individual must begin paying off debt. The highest interest debt needs to be paid first. Once the highest interest debt is paid, an individual should pay off the next debt with the highest interest rate and so forth.

In addition, there are many books and web sites devoted to helping individuals increase their credit scores. It is worthwhile to explore these options and consult professionals.

Credit scores should be closely monitored by everyone. When one has a low credit score, the individual should take immediate action to increase the credit score. By increasing the credit score, the individual is given the freedom to spend money more wisely while saving money in the process.

A payday loan allows you to receive a cash advance based on the expectation that when you are paid, you will pay the lender back. Finance fees vary between payday loan companies, so it is best to investigate several lenders before filling out an application. Once approved, you can receive your money within hours. Then you just repay your loan on your next payday to avoid any financial problems.

Find A Lender

Before you fill out an application, you should start by comparing lenders. You can easily find information on lenders sites. Look for the lowest finance fees and best terms.

On average you can expect to pay $15 for every $100 advanced. You can borrow up to $1000, but the typical amount is between $200 and $300. Your states laws will dictate how much you can borrow and the terms.

The Application

With online payday loan lenders, you dont have to worry about paperwork. You simply provide your contact information, income level, and checking account info.

For large payday loans, you may need to fax additional documents, such as pay stubs or bank statements. Sometimes you may find better rates with these lenders, so it pays to at least check out their rates.

Besides online companies, you can go to a store front with your financial records and apply. An employee will make copies for the companys records.

Receive Your Money

Your application should only take minutes before you are approved. Your money will then be wired to your checking account if you use an online lender. Traditional payday companies will write a check to you, which you will have to cash at your bank.

Pay Back Your Loan

With online payday companies, you payment will automatically be deducted from your checking account. This payment will include the loans principal and finance fee. If you choose to roll over your loan for another pay period, you will have to pay the minimum finance fee.

With traditional lenders, the postdated check you wrote during the application process will be cashed. If you want to delay full payment, you will need to go to the store to make arrangements.

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.

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.

Lots of people nowadays have their own credit cards to help them manage their expenses. Depending upon their individual needs, they have different means as to how they make use of their cards. But then, most of these people do not take high regard of the proper use of these credit cards. Once this occurs, they usually worry and end up having large amounts of debt – soon not being able to pay for these. With this, those who have credit card debt dilemmas must learn to do away from it inasmuch as they could. 1. Credit card companies have the power to change the terms of the card in as fast as 15 days.

Most of the time, credit card companies’ lending rate is ¼% once the interest rate shifts. But then, there may be times when the companies will change the terms by increasing late payment fee as well as by raising the interest rate. Thus, if you are apt in paying late or in missing the payment, you should try to avoid doing so, as you might end up having doubled or tripled fees.

2. Credit card companies have the tendency to increase the amount of purchase months succeeding the time of buying.

An instance we can consider applicable to this is when you avail of a widescreen plasma at around three months ago. When you bought it at that time, you were given 9.9% apr. But once you do not pay on time, the credit card company will thus reprimand a fee for having done so, and as you see, this can be just as harsh as you can imagine. You do not have a hold of the TV retailer because your credit card company has the capability to do such.

3. Discounts will only be applicable if you are timely in paying.

Balance transfers without interest as well as initial periods can disappear due to any minor omission. Thus, what you can do here is to keep the terms of your card. And if you have interest-free purchases or balance transfers, be in line with your payments to stay away from probable problems.

4. Card payments are not the only ones you have to keep up with.

Every time you miss a payment, these companies will again be assessing your credit score. After that, they will be increasing your interest rate. When you miss a loan payment, expect that your fee will be raised doubled or tripled the original one.

5. Today, credit card companies are gaining profits from you.

Because most people tend to miss the due dates of their credit cards, many companies increase their interest rates. Through this, they nevertheless are earning more from you. With this, if you really want to do away from this scenario, you have to make sure that you are paying your monthly dues on time.

Now, it is with great hope that you learn how to eliminate credit card debts through this article. As you handle your credit card, see to it that you are putting your hard-earned money to good use. Remember, you have the choice. Instead of putting your money in the bank for safekeeping, you may have decided to keep a credit card to help you in your shopping needs, but as you do so, just take note of the wise money handling techniques and you’ll go far.

Here are some ideas for living a credit-free life, if that appeals to you (if it doesn’t, skip this article and don’t start a debate in the comments!).

1. Save an emergency fund. Many people use their credit cards as a sort of emergency fund — if there’s an unexpected expense, the card comes out to the rescue. Instead, use the money you aren’t paying towards debt to build up a healthy emergency fund, keeping you out of debt when something unexpected comes up. Living without credit can be risky, but having a strong emergency fund (aim for $1,000 initially, then build it up to 3-6 months or more of expenses).
2. Save for goals. Once you’ve got the emergency fund adequately covered, you can start saving for other things. Set savings goals for yourself: do you want to travel, or buy a car, or save for college, or renovate your home, or buy a yacht? Decide on your highest-priority goals, and set a dollar figure. Now save towards those goals. Without debt, it should be fairly easy.
3. Get a debit card. If you need to use a credit card in certain situations, such as buying something online, often you can use a debit or check card instead, if it has the name of a major credit company such as Visa or Mastercard. I went several years without a credit card, but using a Mastercard debit card, and had no problems at all. It actually worked every place you would need a credit card, but I wasn’t buying stuff on credit — it was debited straight from my checking account, meaning I would need to have the money first before purchasing anything.
4. Earn interest instead of paying it. The problem with debt or credit is that you waste money paying interest. It eats away at your finances. Instead, make your money work for you by investing it. With the magic of compound interest, your investments will grow over time, meaning that money you would have been paying toward interest is now earning interest instead and multiplying. That’s good math.
5. Buy a car on cash. For those who have been buying vehicles with auto loans all their lives, it may seem impossible to buy a car on cash. But it’s very possible, and many people do it. My grandparents, for example, always buy their cars with cash (and always have, except for their first car 50 years ago). So instead of making loan payments, and paying double the price of the car or more over the term of the loan, they make savings deposits, and end up with the amount it costs to buy two cars in their bank account over the course of five years. This is something I’m trying to do myself — I’m going to use my current car as long as possible, save the amount that I’m now paying for my loan every month (it’s almost paid off now), and then buy my next car in cash. It’ll be a used car, but it’ll be all mine.

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Debt consolidation is becoming a popular way for those who have incurred a vast amount of high interest debt to pay off their existing lenders and make just one payment that is more affordable and costs less in terms of interest each month. It is the perfect choice for those who fear that they might be forced into bankruptcy or for those who are beginning to lose control of their finances.

Lower Interest Rates

There are many benefits to be reaped from debt consolidation. Most folks who consolidate debt are required to pledge collateral, which usually takes the form of a lien on their home or other real or valuable property that they own. Pledging collateral gives the lender a lessened risk of losing money, which is why it is typically written at much less rates of interest than any other loan.

Lower Monthly Payments With Debt Consolidation

It also allows you to make a lower monthly payment each month. Because of the lower rate of interest that you pay for funds used to pay off your lenders, the amount of money that you are required to pay each month is significantly less than what your total combined payments were prior to debt consolidation.

One Creditor To Deal With For Debt Consolidation

It makes controlling your finances much easier because you will be dealing with just one creditor and making just one monthly payment to that creditor. Most borrowers in the U.S. have an average of 10 creditors that must be dealt with each month, which can lead to confusion and tons of time spent writing checks or paying online. One payment is made each month and you are done, which makes it the simplest solution for those who are dealing with multiple lenders, credit card companies, banks, and other financial institutions.

Tax Breaks For Debt Consolidation

There is also the potential of saving even more with your debt consolidation by way of tax breaks. When you go through it, you are essentially taking out a second or third mortgage on your home, in most cases. Interest paid on a mortgage can be used as a tax write off. Interest paid on those high interest credit cards in your wallet, however, is like flushing money down the drain. Tax savings can be significant for those in this process.

Choosing A Lender For Debt Consolidation

If you have made the choice to go forward to garner the many benefits that are offered, your first step should be to find a great lender who can work with you to help you become debt free. There are many options online via the Internet when it comes to debt consolidation, and lenders doing business online tend to have even further reduced rates of interest to offer.

Applying for debt consolidation online is easy and hassle free, with a nearly paperless application that you can complete anytime of the day or night from the comfort of your own home. Additionally, there are a greater number of borrowers approved when working with online lending sources because of the great amount of competition that exists on the Internet between lending institutions.