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Are Debt Consolidation Loans An Alternative To Bankruptcy?

admin — Thu, 28 May 2009 06:37:17 +0000

Have you ever wondered what exactly is up with debt consolidation? This informative report can give you an insight into some of the important issues surrounding debt consolidation.

Acquiring too much debt can create a lot of trouble for you. The continuous mounting of your payments will not only leave you confused about how to pay off those bills, but it can slowly take you to bankruptcy.

Debt collection practices, whether by creditors, collection agencies, or attorneys, are a frequent and often emotionally charged source of consumer complaints. Many people finding themselves subject to debt collection may already be experiencing a broad range of financial and personal difficulties. Debt collection problems continue to be a top consumer complaint received by federal and state consumer protection agencies. The federal Fair Debt Collection Practices Act (FDCPA), which was passed in 1977, is intended to prevent abusive, deceptive, and unfair debt collection practices in the marketplace.

Accounts are easily reviewed and updated. Accounts receivables that have been delinquent for a substantial amount of time, 180 days or more, are often purchased by collection agencies, in which case, the agency keeps any cash that it recovers.

If you find yourself confused by what you’ve read to this point, don’t despair. Everything should be crystal clear by the time you finish.

When you opt for debt consolidation, a fair amount of income is cut monthly, which you would have otherwise used for debt repayment. The money left can be used for any other purpose. But, any consolidation advisor will suggest you to eliminate the outstanding debt with this money. It will help you in accelerating the debt elimination process, and you will soon be free from debt.

Getting a debt consolidation loan is not a difficult task, but you need to be honest about the situation with the creditor. Hiding things will not at all result in getting you back on track. Most of the people think that filing for bankruptcy is the easiest way to get out, but it’s not true. The situation will damage your credit score and make the credit report even worse. So, debt consolidation is a better way to tackle the financial crunch.

Bill Collectors really want their money, like the rest of us. The firm gets default judgments in 90 percent of its cases, which are judgments in its favor when a defendant doesn’t respond, he said. Contact them to get the solution for your debt recovery. Contact a consumer lawyer if you are in this situation for advice about your case

Now might be a good time to write down the main points covered above. The act of putting it down on paper will help you remember what’s important about debt consolidation.

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u Can Handle?

admin — Mon, 25 May 2009 06:58:25 +0000

If you are in arrears and it has become enormously tough for you to handle your arrears and repayments to an extent that you cannot handle successfully anymore, then the greatest choice you can consider to turn to is an Individual Voluntary Agreement which is commonly known as an IVA. IVA basically binds you in a deal with the creditor and lets you pay only what you are able to manage rationally (keeping your current status into view).

One of the finest and most feasible ways to evade bankruptcy when you cannot manage your periodic repayments is to get an IVA. When you have an IVA, then you agree with your creditors to make payments on your arrears, and these repayments are merely which you can without difficulty manage and not more than that.

IVA is carried out through an Insolvency Practitioner who has a license. The suggestion made by the consultant is negotiated with the creditors and a resolution is reached. The essential cause due to which you are able to pay anything you can afford is that, if in other situation you are not able to make the repayments, you would have to state bankruptcy and the price of that assert is more for the creditors.

Under a typical IVA, you would agree to pay an amount of money for a specified period of time and the payments have to be monthly. The amount would be as close to what you can afford easily. The greatest advantage of having an IVA is that you would be able to make payments you can afford. This would not only be financially suitable for you but would also keep your creditor from taking any action against you.

The very cause that makes an IVA practicable for you and the creditor is the fact that it saves the creditor from sustaining the cost of filing a claim against you, and you can make payments inline with your circumstance and be money owing free in matter of some years.

Regardless if you have a single creditor or more than one to whom you are in indebted to, you can get an IVA with all of them. This binds you and your creditors in a lawful accord. The Insolvency Practitioner that you employ for the reason of carrying out the accord would make the proposal on your behalf.

This would present you the gain since the payment plan is made by considering your economic condition. Thus, the payments you have to make are closest to your economic status. An IVA is the most apposite way for both the creditor and the indebted to administer the arrears, and it offers the finest way to deal with the arrears.

The individual dealing with the arrears has the plus that the arrears become fairly easier to handle, and other than the living costs you can spend the funds on paying off the arrears. This establishes that an IVA goes in good turn of both the creditor and the indebted.

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Get Yourself Out Of Financial Trouble

admin — Sun, 10 May 2009 06:03:52 +0000

Its seems that these days there are very few people that don’t have some sort of experience with debt so you would think that we would all be experts in debt management. Unfortunately this doesn’t seem to be the case. Its true that even though many of us have problems with debt for most of our lives we never seem to get round to dealing with its consequences in an efficient manner.

Although debt affects such a large percentage of the population it is still an individual problem at heart and it is up to all of us to ensure that we educate yourselves in solving our money problems for ourselves.

Get out of debt information is readily available these days due to the high number of people with money problems, make sure you educate yourself in debt management so that you can get yourself to a place where you no longer have to worry about your financial situation.

To help you on your way to individual financial freedom here are a few tips to motivate you into action:

1. Learn to spend less than your income – This my sound like a ridiculously simply rule be it is the key to long-term financial success. If you can make a budget each month and stick to it you will quickly find that all other financial problems start to be cured.

2. Throw away your credit cards – For most people credit cards make it far too easy to spend money without thinking about it. When the bill comes a month later we realize that we don;t have the cash in the bank to pay the balance and so, have to start paying the high interest charges.

3. Watch your own spending patterns – If you are constantly unaware of the things you spend your money on then how can you possibly get your cash under control?

Getting to grips with your finances is not difficult if you are dedicated to the task, put in a little effort and you will that you will quickly become a money expert capable of dealing with all financial eventualities.

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Stop Attracting Debt, Forever!

admin — Sat, 24 Jan 2009 08:03:15 +0000

Are you looking for practical tools to eliminate debt? Practical tools that will help create a new and powerful mindset, the abundance mindset? You’re in the right place. Here is an exercise that will set you up as a vibratory magnet for money, regardless of where you are financially. Its a great way to set your vibration to attract more money while paying the bills.

I normally don’t do this exercise with bills because our bills are automatically withdrawn from our necessity account. Instead, I do this exercise when I receive checks, regardless of what size they are.

My most recent check was for $183.42. To make this fun I wrote down 100x that amount. $18,342.00

Then I just closed my eyes and held the image of the new check in my hand with the new amount. It felt like it was really in my hands; I was thinking about what I was going to do with that money.. all the great luxuries I could afford, the gifts I would buy, the places I would visit, the people I would see and the vacations I would take. It felt wonderful. How do I know its working? Because of the feeling, thats how.

Great hearts send forth steadily the secret forces that incessantly draw great events, and wherever the mind of man goes, nature will accompany him, no matter what the path. ~ Ralph Waldo Emerson

Easy as pie, right? Anyone can do this.

Why The Majority of People Can’t Make This Visualization Work

Now most people don’t get this right. It doesn’t work. Here’s the thing:

this is where most people meet shipwreck ~ Wallace Wattles

The problem is conditioning. You’re old thinking patterns get in the way of this being an effective exercise. This doesn’t happen by chance, you’re the one who chooses your thoughts.

Think about having an extra $1,000, $10,000 or $ 100,000, what comes to mind? For most people it’s eliminating debt.

That thinking is going to keep you in debt forever. Want to know why?

Giving power to the thought of debt will always result in more and more debt. It comes from your thinking about it.

Debt payment is an experience that you continually recreate.

What can you do instead?

Eliminate Debt from Your Thinking

Thinking of debt will always re-create more debt. You can’t think your way out of debt. You want to completely eliminate the thought of debt from your mind and start thinking about attracting money. You do that by managing your way out of debt.

How do you do that?

I use T. Harv Ekers JARS System. You can read more about it on my blog (see below). It’s a money management system that works on autopilot. That means you don’t have to think thoughts of debt because there is a system in place to take care of it for you. Instead of thinking debt, you can now think prosperity and abundance.

Once youre managing your way out of debt, what do you do next?

Think wealth and well being. Think about the magnificent vacations youre going to take, the people you will entertain and the lifestyle you will now enjoy with that big juicy check.

How are you going to spend the money on yourself? How are you going to really enjoy that money so that more can come to you?

If you want more money, then enjoy the money you have now. Enjoy the green energy and more will come.

Attract Money While Paying the Bills

Let’s say you have a water bill for $ 76.34. Now think of this bill as a check for you – and write down 100x that amount, $ 7,634.00.

Now take that new amount and visualize that check in your hand. Just sit there and picture yourself with this new amount in front of you.

Think of something fun and new, something you always wanted to do, but didnt because of a lack of money. Once you get that new image, just hold onto it.

How do you know its working?

You know if this visualization is working if it feels good – thats how. If youre feeling good then youre sending out a high frequency of vibration that is penetrating all time and space. Youre actively attracting more money into you life.

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60-Second Guide to Getting Out of Debt

admin — Tue, 20 Jan 2009 08:02:38 +0000

Imagine being free of debt — no more sleepless nights over mounting credit card balances, no more ball-and-chain of debt feeding your anxieties, and no chance of threats from dreaded collection agencies. You can do it! Here’s the scoop — in one minute flat.

0:60 Resolve to spend less than you make. Make it a habit as fundamental as stopping for red lights. Realize once and for all that if you can’t pay for it today — you can’t afford it.

0:55 Distinguish between Bad Debt and OK Debt. OK Debt has an interest rate well under 10% — preferably with some tax advantages also. In the best case, what you bought with borrowed funds will appreciate in value. Home mortgages and student loans are examples of OK Debt. Car loans are on the border: Hopefully they satisfy the low-rate piece, but automobiles almost never appreciate in value. Bad Debt is everything else — from your Platinum credit card to the 600% loan from Fast Freddy’s Pay Day Loan.

0:50 Pick a winner. Out of all your cards, pick the one or two major credit cards that feature the lowest annual interest rate. Resolve to use those cards for emergencies only. As for the other credit cards in your wallet, remove temptation by taking them out of your wallet. Throw them behind a major appliance, freeze them in a bowl of water, or put them to a shoe box. Do whatever it takes not to use them.

0:41 Gather all the bills from your accounts. Line these up on the kitchen table. Find the minimum monthly payment for each account and then add these up to get an overall monthly minimum. Make a decision to pay this overall minimum PLUS a hefty additional chunk every month — enough to make a solid dent in the outstanding balance of at least one account. If you can’t pull this off, you’ll have to make a drastic move to increase your income or lower your expenses. It’s harsh, we know, but it’s also an inescapable fact.

0:34 Pick the card with the highest interest rate and: Attack! Next, order the latest bills according to annual interest rate charged. Apply the “hefty additional chunk” (beyond the minimum) to the highest rate account(s). Repeat this process monthly until the last Bad Debt account is paid in full.

0:26 Ask for a lower interest rate. Grab a bill from any account charging you more than 14% interest. Dial the toll-free number on the bill and ask to have your rate reduced — say, to 11%. Tell them that you’d really like to stay with them out of customer loyalty (embellish according to your acting skills), but that you have received offers for much-lower-rate cards. Expect to be made very uncomfortable, but stand firm and remember that, to them, you are both a customer and a profit center. You also stand to save a bundle. The more calls you make, the more persuasive you’ll become.

0:18 Be prudent. Be aggressive in paying down Bad Debt, but don’t get so ambitious that you risk missing minimum payments on your mortgage, automobile, or any other secured credit account. (Secured means that if you miss enough payments, the bank can show up and take away the item.)

0:12 Commiserate with others. You’ll find plenty of emotional support and great ideas by visiting debt relief discussion boards. Help others celebrate their debt-free “happy dance.”

0:05 Dance, Fool! You’re done when the Bad Debt is 100% exorcised and you can make remaining OK Debt payments with ease, leaving plenty of budget room for savings.

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