Archive for the ‘Debt’ Category

4 Ways To Get Out of Debt

Tuesday, June 2nd, 2009

Earn some extra money – hold a yard sale.

For thousands of people, the specter of debt is an all too real problem that affects not only their financial life, but the rest of their lives as well. However, there are steps that can be taken to get yourself out of debt, reasonably quickly, despite how much you owe. While the length of time needed to pay off those debts may vary, taking action as quickly as possible can help prevent debt from mounting up further. Let’s take a look at four easy ways that you can get out of debt, starting today.

1. Negotiate with Creditors and Consolidate.

Many creditors are willing to negotiate with you, especially if you have had a good payment history with them. The worst thing they can tell you is no, so it definitely pays to take the time to see if you can’t work out a better arrangement. Credit card companies, for example, will often reduce the interest, or they may be willing to take a partial lump sum on the balance.

If you are unsuccessful in negotiating your debts down yourself, you may want to consider consolidation by working with a reputable debt consolidation or debt relief organization. There are some questionable ones out there, so do your homework and be careful.

Finally, and arguably the best approach, is to get a lower interest rate loan (see #4) that will allow you to zero out your other debt and leave you with one simple monthly payment.

Consolidating your monthly payments and lowering the overall amount of interest you owe can have a dramatic effect on your finances.

2. Get a second job.

If you truly want to get out of debt quickly, one of the best ways is simply to get a second job until the debt has been paid off. You can funnel everything you make from your second job into paying off your debts and get them taken care of in short order. A second job doesn’t have to mean slaving away at McDonalds however.

You may be able to find ways of earning extra income from other avenues, such as leveraging your abilities to find work in your community, or by starting your own business to help you make enough money to pay off your debts in less time.

3. Reduce your junk.

Holding a yard sale may be a slower way of paying down your debt, but there are many ways that you can turn your household items into cash that can in turn be used to pay off your debts. You can sell items on Ebay, put ads in the paper and find people that are interested in buying your possessions. Depending on what you own, you may be able to quickly sell off everything to take care of your debts.

You may also want to consider cutting back on extraneous expenses, getting a cheaper car, and finding other ways to save money. With what you have left over, you can start using it to pay off your debts until you are completely caught up. Don’t let your debt control your life. You can find ways to get it paid off – and quickly.

4. Debt Consolidation via Loanio

Loanio is now open for for business! You could post a loan request there asking for a lower rate and then pay off your higher interest debts.

Loanio is an auction based, peer lending platform where individuals can borrow or lend money to each other. By cutting out “traditional lenders,” and adding an auction based element, borrowers can get lower rates and lenders can get higher returns than other banking options. Give it a try!Borrow money with Loanio.

Photo Credits: 1

Originally posted 2020-10-03 16:40:17. Republished by Old Post Promoter

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Is Some Debt Good For Your Credit?

Wednesday, May 20th, 2009

Does debt improve credit?

There is no doubt about this, first of all: Getting into debt is more than capable of getting you into trouble. Although there is definitely a large downside to debt, borrowing money can also do you some good. Some debt is actually good for your credit, but only if you understand why, and how much debt is good in comparison to when your debt has become too much.

With the help of credit, you can achieve some of your financial goals. Debt allows you to take advantage of experiences and opportunities that enhance your life, like buying a car or purchasing your dream home, going to the best school or taking a cruise around the world. Getting the true value out of your credit has to do with developing a spending plan that allows you to get there in the time frame that you have set, without ruining you financially.

With the help of credit, you can send a message to potential lenders. If you have never had any debt, then you have never used credit before and will not have a credit score or a credit report to speak of. In today’s world, however, it is difficult if not completely impossible to live without credit, because credit is vital for purchasing most big ticket items, like higher education, vehicles and homes. Credit is also heavily relied upon for the purpose of preparing for life’s emergencies. For all of these reasons, having a good credit reputation is going to show potential lenders that you are a good and healthy credit risk by showing that you can handle a little bit of debt. By showing your capability to repay debt, you can put yourself in a good position to attract creditors offering favorable terms and rates.

Credit and debt are also capable of giving people a sense of how responsible you are. If you had no debt or credit history, you would find yourself being disadvantaged in other ways. Should a prospective employer check your credit record and come up empty for example, they may find this strange, and not want to hire you. Without a credit record, employers, lenders and other individuals lose out on a potential way to appraise who you are. Debt and credit are important for getting an apartment, applying for car insurance, buying a home, even sometimes renting a car. Even if you can afford to do some of these things, using debt and credit to create a history of how you handle money is an advantageous option in favor of just using cash for everything. Credit is not only a tool for extra income, but it is also a way to show lenders, employers and other individuals how responsible you are when it comes to borrowing, spending and repaying your money.

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Originally posted 2020-01-19 05:45:46. Republished by Old Post Promoter

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Handling Debt Collection Phone Calls

Thursday, May 14th, 2009

How to Handle Debt Phone Calls

If you are late on a bill, or more than one bill, then you are probably beginning to receive collection calls from people who want payments from you. You may find yourself in the middle of what is essentially a recurring nightmare of callers who are absolutely insatiable and who will not go away. This does not have to be the case, however, because the FDCPA protects debtors from being harassed by creditors, especially when it comes to harassment via the telephone. Armed with your knowledge of the regulations and rules, and a plan of action, there is no reason why you cannot handle the calls before they overwhelm you.

The first step in the process is to decide whether or not you should answer the phone in the first place when your debt collectors do decide to come calling. If a collector has been trying to pursue you, you may find yourself reluctant to pick the phone up at first for a variety of reasons, or if you have already explained to the collector that you are doing your best but you are forced to have the same conversation over and over then you may feel frustrated and unproductive. Collectors can be overbearing, and as a result it can be easy for you to become overwhelmed and frustrated. You do not have to pick up the phone, but your caller ID and voice mail machine are not going to help you solve your debt, and if you want to get out under your debt you are going to need to be willing to talk to your creditors.

Learning how to handle creditor phone calls means that you need to have a script in order to have an effective conversation with your creditors. The most effective key is to have a plan figured out before you make any promises, so that you do not under deliver or over promise. You should never lose your temper, but you should also avoid tolerating any abuse. If you begin to feel overwhelmed at any point during a conversation with a creditor, seeking professional advice from a credit counseling may be a good avenue to take.

You are not the first person to be going through this, and other people have managed to get through their credit problems and debt collections. You will also get through it as well, but only if you have a plan that you can follow, and are patient and willing to work with your creditors. More often than not, if you are willing to work with your creditors, they will be willing to work with you, and this is well worth keeping in mind when your creditors phone you. If you show that you want to make things work, then they will be much more willing to work with you in most circumstances.

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Originally posted 2020-01-13 05:24:05. Republished by Old Post Promoter

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