Feature Article Debt Elimination Is A Process
Author: Ocha Nix
Americans are carrying more debt than ever. Debt elimination should be a high priority for anyone in debt today. It is reported that today's consumers are more likely to have debt problems than in the past. It is also likely that the situation will only grow worse if left unchecked. Debt elimination is fast becoming a highly sought out means of improving one's lifestyle. With the right debt elimination system you can get out of debt fast and without filing bankruptcy. If you are finding yourself at the end of your rope financially, if you have a heavy burden of debt on your shoulders and are looking for a debt elimination system, the first thing you must understand is that debt elimination system is not a debt consolidation system. The goal is to become debt free and not to just consolidate your debt. Debt consolidation is not debt elimination. After all, how do you think debt consolidation companies stay in business? Its a billion dollar industry and the debt consolidators want you to stay in debt. This is why you should look to a good debt elimination system instead. Debt elimination is a process and not a program as programs come and go. A debt elimination system or process is designed to completely eliminate your debt producing a debt free lifestyle for you to enjoy. You deserve to be debt free and not have that burden weighing you down. A good debt elimination system can do this for you. Without a debt elimination system, the stress you debt can cause you and your family can be overwhelming to a point that it can destroy your health and the continuity and enjoyment of the family. Debt elimination is a system that works in such a way that you can eliminate your debt in a very short time. Debt is a real enemy and a debt elimination system or program can strike down that enemy allowing you regain your freedom and enjoy your family again. You can take the stress and worry out of your life with a good debt elimination system. There are many debt elimination systems available but only a few truly work to eliminate your debt completely. So if you are burdened by heavy debt, then I urge you to learn how you can eliminate your debt today. If you are serious about wanting to eliminate your debt, I highly recommend that you learn more about debt elimination. http://www.infoesource.com/debt.html Ocha has been in sales and sales management for over 24 years. He is currently in marketing and support in the distribution industry. Working with OEM companies he has helped them reduce their cost by improving their processes by eliminating wasteful spending. He says that his online business gives him more enjoyment than any sales job he has ever held. http://www.infoesource.com/debt.html |
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Feature Article Debt Elimination 4
Author: Roy Thomsitt
Planning For Debt Elimination Without Surplus Cash Previously we looked at using surplus cash each month to chip away at those outstanding loans, on our long road to debt elimination. But what can you do if there is no surplus cash every month? So, you have examined your monthly outgoings, and there is nothing to cut out in the way of expenditure. Or you can make some savings, but it just brings your outgoings and income into balance each month, whereas before your outgoings were in excess of the income. Well, at least you have made some progress by bringing income and expenditure into equilibrium. But where does that leave you in your debt elimination challenge? It is probably time to focus on those debts, and see what can be done to bring down the cost of those loans, and the monthly repayments. It may still be possible to plan for debt elimination in 5 years, especially with your newly developed anti debt mindset. Taking out another loan will not, of course, bring instant debt elimination. However, it may be that a debt consolidation loan will give you a chance to structure your plan over a 3, 5 or 7 year period. With the right approach, this may be an excellent opportunity to improve your finances no end, resulting in debt elimination at the end of the loan period. The key will be in whether you are able to reduce your total loan repayments, and whether you are then able to set aside those savings each month. Let us look at a simple example, of a consumer who has two credit cards and two other loans. He owes a total of $11300, and has a minimum monthly payment of $346. Let's say he is able to obtain a new consolidation loan at 10% annual interest, and would have repayments of $240 per month over 5 years, a saving of $106 per month, or $6360 over the 5 year period. That is a significant amount to put away each month. Enough for a replacement second hand car? No need for any more loans? In which case, debt elimination, by our definition excluding the mortgage, could be achieved within that 5 year period. There are, of course, millions of permutations of figures, so you will have to consider your own. But the principles are always the same. Living within your budget, planning ahead, and saving for any future purchases in cash. That's a simple formula. All it needs to accomplish debt elimination is your new mindset; the mindset that does not want debt, borrowings, loans to be a part of your future life. The mindset that has patience in clearing the debt, and is able resist new purchases of optional items until the cash is available. It is worth always remembering, if you cannot to afford to pay cash for something, then you cannot really afford it at all. The only exception is the house, where the investment potential and rent saving alter the financial viewpoint. Once you have the cash-save mindset, you have all you need to clear unwieldy and expensive debt from your life, once and for all. This debt elimination article was written by Roy Thomsitt, owner of the Eliminate credit Card Debt Now website. |
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Feature Article Debt Elimination 3
Author: Roy Thomsitt
Planning To Achieve Debt Elimination Once you have started the process of changing your debt mindset to be against taking on consumer debt, then that is something you need to continue until it becomes the norm in your life. In some ways it is like stopping smoking; trying on will power alone is not enough, you need to get to the source of your problem and permanently change it. That is why self hypnosis can be successful with stopping smoking; it reaches the subconscious mind and re-educates it. With debt elimination, it is the same; to succeed permanently you need to have changed the way your mind works, not just consciously, but sub consciously too. In parallel to changing your mindset, you need to plan your debt elimination strategy. This will depend on you precise financial situation: your level of debt, monthly income, monthly commitments, overdue debts and so on. So, I cannot make specific suggestions for your circumstances, just give a few pointers to what you can do to head down the road to debt elimination. You may well get some benefit from debt counseling or financial planning advice at this stage, but that depends on you. Your chances of achieving debt elimination within, say, 5 years, will depend a great deal on your own efforts, so if you can get through this part alone, then that may strengthen your chances of success. Budgeting For Debt Elimination You need to take a long hard look at your present financial situation and how it is likely to evolve into the future. For debt elimination to succeed, you need to be in control of your finances and keep your finger on the pulse all the time. The starting point should be a list of your monthly outgoings. If you are unsure of any item, then monitor it for a month to see. For example, you may not know exactly how much you spend on food and other items from the grocery stores each month. Just keep a record of them for a month to see what your monthly expenditure is, but in the meantime use your best estimate. You can then compare your monthly outgoings with your net income, and this will be the basis of your budget as you develop a plan for debt elimination. You also need to compile a list of your debts; how much is outstanding, what the monthly payments are, and what the interest rate is. As an example, let us say you have a net monthly income of $2500, and your total outgoings, including debt and credit card repayments, are $2300. This means you have $200 to spare. With your new, anti debt mindset, you want to use that $200 spare to get your most expensive debts cleared first. There is a good chance it is the credit cards that are most expensive, so you can target the most expensive credit card ie the one with the highest interest. You owe $600 on that card, so in 3 months you can clear it. When cleared, you can move on to the next most expensive. Depending on your debt level this could be a long process; that's why you need to plan it out and see how you will cut down that outstanding debt level over the coming months and years. So long as the total debt level is reducing, you are heading in the right direction. Also, take a close look at those monthly outgoings. Are you sure there's nothing that can be cut out or reduced? Of course there is, unless you've already gone through that process recently. Be ruthless with this new mindset of yours; it really is worthwhile, knowing there will come a day when you don't have to worry about the odd few dollars here and there. Highlight those budget items that are unavoidable, and make sure you pay those first every month, or at least have the money earmarked. If you rank your debts in order of interest rate cost, and go for the highest first, you can work through them one by one. Need a morale boost to get you off to a good start? Then choose the loan with the least outstanding, and clear that first. It may not be the best financially, but if it gives you that quick satisfaction, so the sacrifice may be worth it. Debt elimination is not going to be an overnight happening. You need to be prepared to plan for a few years. 5 years is always a good period to plan for in business, and can be too in your personal life and finances. You may be amazed at the transformations you can achieve in 5 years. But above all, you need to maintain that anti debt mindset. After all, that is what will bring you to the debt elimination pinnacle. In the next article, we consider what to do if there is really no spare in your monthly budget. This debt elimination planning article was written by Roy Thomsitt, owner and part author of the Eliminate Credit Card Debt Now website. |
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Feature Article Debt Elimination 3
Author: Roy Thomsitt
Planning To Achieve Debt Elimination Once you have started the process of changing your debt mindset to be against taking on consumer debt, then that is something you need to continue until it becomes the norm in your life. In some ways it is like stopping smoking; trying on will power alone is not enough, you need to get to the source of your problem and permanently change it. That is why self hypnosis can be successful with stopping smoking; it reaches the subconscious mind and re-educates it. With debt elimination, it is the same; to succeed permanently you need to have changed the way your mind works, not just consciously, but sub consciously too. In parallel to changing your mindset, you need to plan your debt elimination strategy. This will depend on you precise financial situation: your level of debt, monthly income, monthly commitments, overdue debts and so on. So, I cannot make specific suggestions for your circumstances, just give a few pointers to what you can do to head down the road to debt elimination. You may well get some benefit from debt counseling or financial planning advice at this stage, but that depends on you. Your chances of achieving debt elimination within, say, 5 years, will depend a great deal on your own efforts, so if you can get through this part alone, then that may strengthen your chances of success. Budgeting For Debt Elimination You need to take a long hard look at your present financial situation and how it is likely to evolve into the future. For debt elimination to succeed, you need to be in control of your finances and keep your finger on the pulse all the time. The starting point should be a list of your monthly outgoings. If you are unsure of any item, then monitor it for a month to see. For example, you may not know exactly how much you spend on food and other items from the grocery stores each month. Just keep a record of them for a month to see what your monthly expenditure is, but in the meantime use your best estimate. You can then compare your monthly outgoings with your net income, and this will be the basis of your budget as you develop a plan for debt elimination. You also need to compile a list of your debts; how much is outstanding, what the monthly payments are, and what the interest rate is. As an example, let us say you have a net monthly income of $2500, and your total outgoings, including debt and credit card repayments, are $2300. This means you have $200 to spare. With your new, anti debt mindset, you want to use that $200 spare to get your most expensive debts cleared first. There is a good chance it is the credit cards that are most expensive, so you can target the most expensive credit card ie the one with the highest interest. You owe $600 on that card, so in 3 months you can clear it. When cleared, you can move on to the next most expensive. Depending on your debt level this could be a long process; that's why you need to plan it out and see how you will cut down that outstanding debt level over the coming months and years. So long as the total debt level is reducing, you are heading in the right direction. Also, take a close look at those monthly outgoings. Are you sure there's nothing that can be cut out or reduced? Of course there is, unless you've already gone through that process recently. Be ruthless with this new mindset of yours; it really is worthwhile, knowing there will come a day when you don't have to worry about the odd few dollars here and there. Highlight those budget items that are unavoidable, and make sure you pay those first every month, or at least have the money earmarked. If you rank your debts in order of interest rate cost, and go for the highest first, you can work through them one by one. Need a morale boost to get you off to a good start? Then choose the loan with the least outstanding, and clear that first. It may not be the best financially, but if it gives you that quick satisfaction, so the sacrifice may be worth it. Debt elimination is not going to be an overnight happening. You need to be prepared to plan for a few years. 5 years is always a good period to plan for in business, and can be too in your personal life and finances. You may be amazed at the transformations you can achieve in 5 years. But above all, you need to maintain that anti debt mindset. After all, that is what will bring you to the debt elimination pinnacle. In the next article, we consider what to do if there is really no spare in your monthly budget. This debt elimination planning article was written by Roy Thomsitt, owner and part author of the Eliminate Credit Card Debt Now website. |
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Feature Article Debt Elimination 2
Author: Roy Thomsitt
The First Step To Debt Elimination Regardless of your personal and financial circumstances, your education and your background, the chances are the first step you need to take in debt elimination has to take place in your mind. The Western mindset, especially in the US and UK, is firmly fixed on consumer debt. It is the way you have been reared in a debt ridden society. To be realistic, let us assume that total debt elimination is not practical, nor necessarily desirable, from a financial point of view. The one major exception is in buying a house. When you buy a house, very few people are likely to be in a position to do so with cash. Unless they have inheritance, are very wealthy, are moving down the house market, or moving from an expensive to a cheap area, people buying a house will require a mortgage. There can be considerable financial gains in the long run from taking on mortgage debt. Firstly, you have to live somewhere, so living in your own home is more desirable than renting for the rest of your life. Secondly, if you are lucky the capital growth on the house over the years will increase your underlying wealth, in a way that cannot happen with rented accommodation, which has the opposite affect. So, let us assume, for the purpose of this article, that by debt elimination we mean the elimination of all your consumer debt, except your home mortgage. You may well find that, if you can change your mindset to be against borrowing to feed your consumer desires, that mortgage will be paid off much sooner than your average contemporaries. When you reach that stage, then there is every possibility that your debt elimination will become total, and your mindset will be so changed that there is never a need to take on any new debt. Changing The Mindset To Support Debt Elimination You are unlikely to find it easy to alter your attitude towards consumer debt. After all, it is the way you have probably been brought up, surrounded by easy credit. However, changing that mindset is both possible and financially desirable; debt elimination is achievable if you can successfully get through this first stage in the process. So, how do you change the way you think about debt? Now, I am talking purely about consumer debt, not borrowing money to start or expand a business; about using debt to satisfy your material desires earlier than you can really afford them. Business finance can, and often does, justify itself through increasing your wealth at a faster rate than the interest charges decrease your wealth. Consumer debt, on the other hand, is guaranteed to reduce your financial well being. When you borrow money to spend on consumable items, such as holidays, and diminishing assets, such as cars, then your wealth building is undermined; your assets are reduced over time. That, really, is the key to altering your mindset to favour the elimination of debt from your life. You need to: 1. Be aware that consumer debt is not good for your financial well being. You are increasing the bank's assets, and decreasing your own, by spending on credit. 2. You need to resent the fact that the banks make money out of you, when it should be the other way round. It's your hard earned money we're talking about here. By giving constant focus to those two things you may develop a mindset that is shifting towards debt elimination. You can then give yourself greater strength in your determination by convincing yourself that, not only is debt elimination possible in the long term, but it will bring with it many rewards: 1. You will feel financially comfortable and in control; it really is a great feeling as those around you drown themselves in debt. 2. Over the years you will accumulate significant wealth compared to those earning the same amount but whose debt has always been out of control. 3. You will be able to walk in to a travel agent and pay cash, or debit card, for each vacation, while the person behind you in the queue will probably pay by credit card and then struggle the whole year to pay it off before the next vacation. 4. You will be able to walk into a car dealer and negotiate the best possible price for a new car as a cash buyer, knowing that the cash is your own and not the bank's. 5. You will be saving regularly for all your needs, while paying off your mortgage within the term. All the while, your wealth will be accumulating, not being stripped bare by interest charges. Imagine, in 10, or even 5, years' time, a comfortable financial life with no pressures. You may not be a millionaire, but beside your peer group you will be a beacon of financial stability and growing wealth. It's a long term process, but once you have the mindset, the journey can become a smooth one, with good planning and determination. Debt elimination really can be the final goal. In the next article I will look at planning to eliminate debt. This debt elimination article was written by Roy Thomsitt, owner and part author of the Eliminate Credit Card Debt Now website. |
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Feature Article Debt Elimination 1
Author: Roy Thomsitt
If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all the debts disappear. You would probably wish even harder for that magic wand if you were falling behind with, or at least struggling hard to keep up with, the monthly payments on those debts. The notion of debt elimination, though, is in most cases a fanciful one, at least in the short term. If you have debts of $15,000, where will you suddenly find $15,000 for the elimination of those debts? If you have debts of $30,000, how can you suddenly just wipe out that amount? Realistically, you have little hope of reducing your debt balance to zero in the short term, if your debts are anything like that sort of level. Unless they win the lottery, or come into some inheritance money, the average person cannot suddenly find such sums. If your debt situation is really bad and out of control, then you may be considering bankruptcy. That may wipe out your debt, but it can be a very unpleasant process to go through. The laws vary greatly between countries, but can sometimes be quite draconian, and greatly inhibitive for your future actions relating to money. Debt elimination by bankruptcy is an extreme which, if at all possible, is to be avoided by those who have pride and wish to make a genuine attempt to resolve their debt problems and plan a better financial future. Also, if you have debts out of control, you may be considering debt negotiation. While this will not lead to debt elimination, it may help reduce the immediate pressures and make it easier to eliminate those debts some time in the future. Of course, with lower amounts of debt, you have more of a chance, so it really does depend on both the debt level and your personal situation as to whether it is feasible to reduce your debts to zero in the foreseeable future. In the longer term, it is definitely possible, but there again the difficulty level will depend on the amount of debt and other personal circumstances. What Are The Steps To Eliminate Debt? Your precise steps to debt elimination will depend on your current financial situation and other personal circumstances. However, there are some broad steps that you can follow which can help you achieve debt elimination with patience and determination. The follow up article will discuss the steps you can take This debt elimination article was written by Roy Thomsitt, owner and part author of the Eliminate Credit Card Debt Now website. |
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Feature Article Debt Elimination
Author: John Cook
If you're reading this article right now I'm sure that you are looking for a debt elimination system that will help you get out from under you personal mountain of debt. Hopefully you're not looking for the magic pill that will suddenly dissolve your debt problem. I'm afraid that I have to tell you that there is no magic debt elimination system. We get into debt either by our poor spending habits or by not being prepared for unexpected expenses and often a combination of the two. It is not uncommon to hear of someone who has poor spending habits and a somewhat manageable debt load who has had an unfortunate event that puts them into a financial tailspin. To get out of debt and stay out of debt you must change your attitude about how you spend money or you will never stay out of debt. Getting a debt consolidation loan or going bankrupt will not help you. You must change your spending habits. You have to make up your mind that you will spend less than you earn or you will just go back into debt again. There also are those who do not excessively overspend but they are not prepared for unexpected expenses. They may have little or no debt when suddenly something happens that takes them deeply into debt. This can be an illness, an engine blowing up in your vehicle, a tree falling on your house or any number of catastrophes. Knowing this, the first step in getting out of debt is to change your attitude. You must decide that you will no longer accept living in debt and unprepared for life's uncertainties. You must decide that whatever it takes, you will do it. Without this intensity it will be difficult for you to succeed. Without this intensity new cars and the shiny advertisements will draw you back into debt. Remember, the first step to staying debt free must be an attitude change. John Cook is the author of Finance For Families.com, a website designed to assist families in making smart financial decisions. The burden of seemingly insurmountable debt is destroying too many families. You can read more at http://www.financeforfamilies.com |
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Feature Article Debt Management Solutions - Avoid Debt Elimination Scams?
Author: Carrie Reeder
Acquiring a large amount of debt is burdensome. Because of high monthly payments, many people are unable to make minimum payments. Failure to pay credit cards results in late fees and higher interest payments. Although skipping credit card payments may be tempting, this does not eliminate the problem. In fact, this makes the situation worse. Getting Control of High Credit Card Balances Eliminating debt is the only solution for gaining control of your high balance credit cards. Individuals with low credit card balances are generally able to handle monthly payments. Moreover, these people may pay more than the monthly minimum. Thus, they have the opportunity to reduce, and ultimately eliminate debt. Of course, if you are barely paying the minimum balance, which is usually the finance charges, your credit card balance may only drop a couple of dollars a month. In some cases, your balance may increase. This occurs when your finance charges are more than the monthly minimum. Beware of Debt Elimination Scams Many companies advertise debt elimination solutions. Perhaps you have seen grant programs advertising free money to pay bills. While these ads appear tempting, it is important to realize that getting a grant to start a business requires patience and effort. With this said, getting a grant or free money to pay bills is impossible. Another common debt elimination scam involves companies claiming that they can eliminate your debt legally. According to these organizations, credit card companies, mortgage companies, and banks charge interest and other fees illegally. Thus, you are waived of your obligation to repay debts by looking for loopholes. After you pay the debt elimination company a typical fee of $2,000, you are sent a document to present to your creditors. Supposedly, this document releases you from repaying debt. Document titles may read, "Bond for Discharge of Debt," "Bill of Exchange," and "Redemption Certificate." Do not fall for this scam. The documents are fake. Sadly, after a person gives the debt elimination company thousands of dollars, they are still required to repay debts.
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Feature Article Debt Consolidation Loan - A Way Of Debt Elimination
Author: Gracie Bishop
People's responsibilities for debts have been just tracked down by the government and the lenders. However for better debt payment, lending bodies could do a lot to help people with shaky mathematics understand the consequences. Law makes it obligatory for everyone to pay off their financial obligations and dues well to the stipulated terms and conditions. Wake up call for a lot of people before they find themselves with massive debts, a program of debt consolidation loan has been configured by the lending authority. It is all very well to make comments like; the individuals should take the blame for getting into debt, or have no time for those who get themselves into debts. What most readers fail to grasp is that even the most disciplined individuals due to unforeseen circumstances can end up in debt. Not all debtors got themselves into debt blindly. Under the condition of the debt consolidation loan, borrowers are optioned with secured and unsecured forms. It is just rightly rely upon the borrowers either the method is best suited to their financial upkeep. The former borrowing provision contains collateral placing, whereas the latter lending option is made devoid to pledging placing. Both of the provisions are best designed out to assist debtors in an organised way. To this prospect, obtaining has become quite handy these days, since there is a great presence of lenders online and offline. In which, processing through online is preferred. For entire of the processing, a creditor is selected. The creditor makes a calculation and then charted out a single monthly repayment scheme. Upon doing so, debtors find this debt elimination processing well under their control. Some people say that there should be a ban on small loan companies that charge ludicrous amounts of interest. People have just lost their homes and families through debt and they have to start again. Individuals get caught up the credit trap due to banks and loan companies making it all too easy to get credit. People should learn from their mistakes and I would not be making the same again. Those who say that they have no sympathy with people like should see the light and open their eyes to what is going on around them. They do not realise that even the most financially disciplined can get caught up. Gracie Bishop is associated with UK Debt Consolidations. His articles helps you to find Debt Consolidation Services even if you have poor credit history. For more information about Debt consolidation loan, online debt consolidation, secured loans, debt consolidation mortgage visit on http://www.ukdebtconsolidations.co.uk/ |
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Feature Article Debt relief from debt consolidation
Author: Jakob Jelling
By Jakob Jelling
http://www.cashbazar.com
If you are up to your neck in debt, there may seem like there is no relief in sight. In fact this is not necessarily the truth. There are ways to take all of your stifling bills and roll them up into one neat package by using debt consolidation in two very popular forms Home Equity Loans, Refinancing Loans, and a Consolidation Credit Card. All of these instruments provide the debtor with one thing "relief" from the current debt by shrinking it down to a single manageable debt.
Using home equity to consolidate debts
One of the popular methods of debt consolidation today is the Home Equity Loan. What happens is that the debt is extinguished using the equity from a homeowner's home. A loan is created outside of the mortgage in order to satisfy the debts. Should the homeowner default on the loan, their house is in jeopardy of being foreclosed upon if that loan is not satisfied with a specified amount of time.
Refinancing loans
People often consume the debt by rolling it into a new mortgage. This way the house costs more money to the borrower, but the debt is extinguished at close and the debt is neatly rolled away into the mortgage securely. Upon settlement of the loan, the debts are paid in full and satisfied. The clock on the mortgage is reset to day one.
Credit card consolidation
A low interest credit card is offered to the borrower to include any outstanding credit and loan balances. The interest rate is a low fixed rate for a period of up to one year, upon the year's end it will resume at its normal rate. Upon acceptance and terms the account should be closed once paid in full and payments be made directly to the new credit card provider. Some people have been able to master paying off one credit card with another to keep the debt revolving and interest rates low. Some people fail to close out the previous creditors account and run them back up again as well.
All three of these options provide solid relief for the debt and help them reconstruct and manage their debt better.
About the AuthorJakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate. ...
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Feature Article Debt Elimination Fast!
Author: Ephram Lucas
How would you like to be debt free in only a few years, including zero mortgage debts?! Sounds too good to be true? Well check out this easy debt elimination plan from www.nodebtever.com - the plan the Banks DON'T want you to know about! First off, you need to do a little groundwork. Those debts took some time to build, so getting rid of them involves a little concentration.
Get your last half year's bank records together.Ignoring taxes, bills already paid etc, mark every entry that could in theory be reduced. It will help if you group like for like stuff together (a spreadsheet is good for this) for example, clothes, entertainment, groceries etc. What you are looking for is a way to shave 10% or more off each of these items. Make a list of ideas for each category. This is easier than it might sound - for example, in the 'Groceries' section, make a note to buy unbranded Supermarket generic products, rather than the big brand high cost versions. The amount you think you can save by doing this is your 'war chest' against debt.
Once you have done this, prioritise the bills as follows:- divide the outstanding debt on each bill by the minimum amount you can pay off each month. The smallest resulting number is your target bill. What you are going to do is continue your normal monthly payments on everything EXCEPT the target. The debt target gets the usual payment PLUS the war chest. You want to POVERPAY the debt each month to break it as fast as possible. Do this each month until the number one bill is paid. Then you move on to debt number 2 - the next smallest result of dividing the bill amount by the minimum payment. This time, of course, you can 'accelerate' the process by applying not only the 'war chest' but also the standard payments you used to pay on target number 1.
You are probably beginning to get the idea! Research from www.nodebtever.com indicates that the average US citizen can pay down ALL their debts in as little as 6 years using this method!
The important things about this method are as follows:-
You want to pay off the debt which will clear first. This allows you to 'accelerate' the process, using each item's payments on the next in the chain as the method matures. You must resist any temptation to focus on the higher interest debts - that is not essential here. If you run into problems (emergency expenditure required, that sort of thing) you can suspend the plan for the minimum amount of time it takes you to deal with the emergency, but then you must resume immediately. Oh, and by the way, DO NOT try to use your retuirement 401(k) funds for this - fund it from income and windfalls only.
About the Author(c) E Lucas 2005. You may reproduce this article on your website or newsletter as long as you include this byline and link to http://www.nodebtever.com www.nodebtever.com , the site for free debt articles and tips on elimination of debts ...
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Feature Article Debt Elimination Fast!
Author: Ephram Lucas
How would you like to be debt free in only a few years, including zero mortgage debts?! Sounds too good to be true? Well check out this easy debt elimination plan from www.nodebtever.com - the plan the Banks DON'T want you to know about! First off, you need to do a little groundwork. Those debts took some time to build, so getting rid of them involves a little concentration.
Get your last half year's bank records together.Ignoring taxes, bills already paid etc, mark every entry that could in theory be reduced. It will help if you group like for like stuff together (a spreadsheet is good for this) for example, clothes, entertainment, groceries etc. What you are looking for is a way to shave 10% or more off each of these items. Make a list of ideas for each category. This is easier than it might sound - for example, in the 'Groceries' section, make a note to buy unbranded Supermarket generic products, rather than the big brand high cost versions. The amount you think you can save by doing this is your 'war chest' against debt.
Once you have done this, prioritise the bills as follows:- divide the outstanding debt on each bill by the minimum amount you can pay off each month. The smallest resulting number is your target bill. What you are going to do is continue your normal monthly payments on everything EXCEPT the target. The debt target gets the usual payment PLUS the war chest. You want to POVERPAY the debt each month to break it as fast as possible. Do this each month until the number one bill is paid. Then you move on to debt number 2 - the next smallest result of dividing the bill amount by the minimum payment. This time, of course, you can 'accelerate' the process by applying not only the 'war chest' but also the standard payments you used to pay on target number 1.
You are probably beginning to get the idea! Research from www.nodebtever.com indicates that the average US citizen can pay down ALL their debts in as little as 6 years using this method!
The important things about this method are as follows:-
You want to pay off the debt which will clear first. This allows you to 'accelerate' the process, using each item's payments on the next in the chain as the method matures. You must resist any temptation to focus on the higher interest debts - that is not essential here. If you run into problems (emergency expenditure required, that sort of thing) you can suspend the plan for the minimum amount of time it takes you to deal with the emergency, but then you must resume immediately. Oh, and by the way, DO NOT try to use your retuirement 401(k) funds for this - fund it from income and windfalls only.
About the Author(c) E Lucas 2005. You may reproduce this article on your website or newsletter as long as you include this byline and link to http://www.nodebtever.com www.nodebtever.com , the site for free debt articles and tips on elimination of debts ...
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Feature Article Debt consolidation
Author: Jakob Jelling
Debt consolidation is a concept that most people are aware of and often is a good idea. Basically when consolidating your bills or loans, you combine the total amount owed and make a single monthly payment instead of many smaller payments through out the month. While this is often a good solution to debt problems, there are a few things that need to be considered first.
The first thing to consider is if a consolidation loan is in your best interest. Regardless of how you end up procuring a consolidation loan the basic facts are the same, you are borrowing more than you currently owe to get one monthly payment. Is this convenience worth the extra cost of the fees and interest on a loan for money than you currently owe?
Depending upon your situation there may be several courses of action to consider first. Step one is to take a serious look at you personal budgeting. Do you need to make changes to how you are currently spending your income? If there is too much debt to be repaid at once can you enter into a payment arrangement with your creditors to allow you the time that you need to get ahead?
If you are not able to work your way out of your current situation then you need to look at other borrowing solutions. The first option should be to examine what possibilities you already have. Do you have a mortgage?
If you have a mortgage there may be a few options available to you. First you may be able to increase the amount of your current mortgage. In order to increase the amount of your current mortgage you may have to switch lending institutions and basically re-mortgage your home while other places will simply add the extra amount to your current mortgage. The other similar option you have is to take out a second mortgage on your home. In this case you are borrowing against the equity in your home that you have already built up.
If you do not have a home but do have good credit then you may have other options available to you such as an unsecured loan. An unsecured loan is a good faith loan meaning that the business that lent to you trusts you enough to repay the loan. This type of loan will not impede your ability to buy and sell property since they will not but a lien on your assets. This may be important to you if you are planning on selling your vehicle or other assets in the near future.
Debt consolidation can be a valuable tool if you know what you are doing and how you got to this point. Debt consolidation may offer lower interest rates, lower monthly payments and only a single bill to pay once a month thus making your budgeting easier.
However, the cost of this convenience can be fairly high. Often companies will charge you for settling a loan earlier than arranged thus adding to the total amount owed. Generally consolidated loans payments are less than what you are currently paying. This is because the term is longer than before. Another way lenders make money is by offering loan insurance that you may already have. It always pays to shop around for any product since the company offering it at the time is usually charging more for the convenience of bundling it.
As you can see a consolidated loan can save you money but may not be the best option available to you. The key is to shop around and do your homework. Find out what various companies offer, what kind of interest rate you should expect to pay based upon your credit rating and what alternative options you have available to you. For example you may be able to borrow from your 401K plan and you will not be charged interest on the loan if you make an arrangement to repay the loan with your employer. A 0% interest loan is a much better option than a consolidated loan.
About the AuthorJakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate. ...
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Feature Article Dealing with dual real estate agents
Author: Jakob Jelling
Historically, real estate agents have represented the seller of a property. The seller, after all, is usually the one who pays their commission, and agents therefore have a fiduciary relationship with the seller. This in no way means that agents may operate outside the bounds of the law and ethical conduct of course. It just means that the real estate agent is just that, an authorized agent of the seller for a particular transaction.
More recent trends have introduced buyer's agents, who usually work on a fee basis exclusively for the buyer, and dual agents. Dual agents represent both seller and buyer, particularly in cases where the agent's company is the listing company. Dual agency is legal in most U.S. states; however, most consumer advocacy organizations recommend against using a dual agent. This is because there is an inherit conflict of interest for the agent - they receive a commission based on the selling price of the property. The higher the price, the higher their commission, so their reasoning is that dual agents never really have the buyer's best interests at heart.
If you've decided to work with a dual agent, this will need to be disclosed to both the buyer and seller, and they both have to agree, in writing. Dual agents are bound by law and ethics to treat both buyers and sellers honestly, equally, and fairly. Dual agents can be prevented from divulging confidential information about each party to the other. This could severely harm negotiating positions.
The bottom line in dealing with a dual agent is to remember that the buyer and seller have conflicting interests in the price and other terms of the sale. It's very difficult for an agent to truly and equally represent both parties, since the conflicting interests make that inherently impossible. If you do choose to use a dual agent, be sure the exact nature of your relationship with the dual agent is clear, know what services the agent will be performing for you during the transaction, how the agent will be paid, and how any conflicts that arise will be handled.
About the AuthorJakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate. ...
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