Click here for instant access : http://www.12path.com/WhatLiesInYourDebt/ What Lies In Your Debt? Here is some more information on What Lies In Your Debt? : "Most people tend to ignore...
Monday, December 29, 2014
Student Loan Debt | Student Loan Debt Relief | How to Control College Costs | Student Debt Relief
http://mobilocityohio.info Don't graduate with a mountain of bills. Learn to control your college expenses right from the start. This book can student loan d...
Sunday, December 21, 2014
Gun control
Our state Illinois is a joke, everything in this state has not worked, we are not getting out of debt, were getting more into debt, maybe it's time we get rid of tha people who work for this...
Saturday, December 20, 2014
Tips On How To Control Holiday Credit Card Debt
The best way to avoid bad debt is to plan your expenses, set a definite budget, and stick within your limit. Visit: http://www.badcreditresources.com/article...
Monday, December 1, 2014
Thursday, November 27, 2014
Make Saving Money Part of Your Family's Budget
Do you find yourself envious of those who have a savings account? Have you ever found yourself having to charge unexpected expenses on a credit card because you don't have any money saved? If you lost your job, would you have any savings to cover your living expenses?
You may really want a savings account, but aren't sure how those who have one actually do it. Maybe you've tried, and just don't seem to have anything left over each month for savings.
Financial experts across the board recommend having a savings account, however. So how do you go about it? Here are some tips for making saving money a part of your family's budget.
Pay Yourself First
One of the reasons many families feel they can't afford to save is that they don't seem to have enough left over after everything's paid. But what if you put money into your savings account first, and then tackled your other expenses with what's left? Think in reverse! It might help to make it a percentage, say 10%, of your income. You'll learn to mentally note this so that you recognize right away that a $1000 check is actually a $900 one.
Windfalls
Has anyone ever asked you how you're going to spend a certain amount of money? Maybe it's a pile of cash you received as a gift, a tax return, a bonus from work, or some other way that you receive money over and above your usual income. A key to saving is, don't earmark the windfall! Instead, put it in your savings account (unless you have an emergency need for it right away) and use as needed. This requires some discipline, especially if someone gives you cash as a gift and wants to know what you spent it on. But this habit of putting windfalls into the bank is a great way to jump-start your savings account.
Study Your Budget
There's nothing like a budget to show you where you can cut back and save more. Review all those optional expenses - cable, eating out, phone apps, whatever - and see where you can trim unnecessary expenditures. Then move that money over into savings.
Split the Costs
When it comes to involving your kids in the family budget, include them in expenses, too. Various lessons, sports and extracurricular activities can cost a lot of money. If your child wants to get involved in something like this, have a portion of the expense (such as for equipment or uniforms) come out of his or her allowance or birthday money. This helps not only to save money but also to encourage your kids to think before committing to an activity.
You may really want a savings account, but aren't sure how those who have one actually do it. Maybe you've tried, and just don't seem to have anything left over each month for savings.
Financial experts across the board recommend having a savings account, however. So how do you go about it? Here are some tips for making saving money a part of your family's budget.
Pay Yourself First
One of the reasons many families feel they can't afford to save is that they don't seem to have enough left over after everything's paid. But what if you put money into your savings account first, and then tackled your other expenses with what's left? Think in reverse! It might help to make it a percentage, say 10%, of your income. You'll learn to mentally note this so that you recognize right away that a $1000 check is actually a $900 one.
Windfalls
Has anyone ever asked you how you're going to spend a certain amount of money? Maybe it's a pile of cash you received as a gift, a tax return, a bonus from work, or some other way that you receive money over and above your usual income. A key to saving is, don't earmark the windfall! Instead, put it in your savings account (unless you have an emergency need for it right away) and use as needed. This requires some discipline, especially if someone gives you cash as a gift and wants to know what you spent it on. But this habit of putting windfalls into the bank is a great way to jump-start your savings account.
Study Your Budget
There's nothing like a budget to show you where you can cut back and save more. Review all those optional expenses - cable, eating out, phone apps, whatever - and see where you can trim unnecessary expenditures. Then move that money over into savings.
Split the Costs
When it comes to involving your kids in the family budget, include them in expenses, too. Various lessons, sports and extracurricular activities can cost a lot of money. If your child wants to get involved in something like this, have a portion of the expense (such as for equipment or uniforms) come out of his or her allowance or birthday money. This helps not only to save money but also to encourage your kids to think before committing to an activity.
Tuesday, November 18, 2014
Getting Started On Your Family Budget
Are you ready to get started on a family budget? Are you overwhelmed? It can seem complicated at first - how do you categorize everything? What about expenses that fluctuate or aren't monthly? The best thing to do is take a step back and look at some practical steps toward formulating your family budget. Here are some tips.
Estimates and Actuals, not Ideals
Remember that your budget is a tool, not a dream machine. Goals are important, but a family budget should first focus on the numbers you're dealing with. That's the basic first step. Once you have a grasp on that, you can begin a bit more idealizing, such as saving for vacations, desired items, etc.
Start with Your Net Income
First, figure out your net income for each month. This means your income minus taxes, insurance, 401K deductions, and so forth. If you are self-employed, subtract estimated taxes, insurance costs, retirement account savings, etc. At this point, you just need numbers.
Expenses - Keep Categories General
Next, figure out your monthly expenses. If they vary, figure out an average by looking at the last three to six months' worth of expenses. For instance, if your electric bill was $150 last month, $140 the month before, and $175 the month before that, then you can estimate a monthly expense of around $155 for electricity. Alternatively, you could take the highest amount, $175, and go with that.
It's a good idea to keep your categories as general as possible while still preserving clarity. Otherwise, you might get confused or overwhelmed by all the "hair splitting." For example, instead of having "food, paper products, drug items, etc." as categories, you can lump all those expenses under "groceries." Items like "pet supplies" can be their own category, but you might want to include vet bills in that category. Here are some suggestions for categories:
* Charitable giving
* Payment off debt
* Home (mortgage, rent, property tax, insurance, repairs, etc.)
* Vehicle
* Utilities
* Health Care
* Birthday and Christmas gifts
* Cushion (this is money set aside to offset surprises, mistakes, or unexpected expenditures)
* Personal (eating out, hair appointments, etc.)
Stop and Look
At this point, stop and take a look at what you've got so far. Are your expenses greater than your income? It's time to cut back significantly, or find another source of income (or both).
Actual Expenses
So far, you have two columns - income and estimated expenses. Now you need to add another column: actual expenses. Keep track of the real numbers each week over the next month and see how much/if they differ.
Now you're well on your way to a workable budget!
Estimates and Actuals, not Ideals
Remember that your budget is a tool, not a dream machine. Goals are important, but a family budget should first focus on the numbers you're dealing with. That's the basic first step. Once you have a grasp on that, you can begin a bit more idealizing, such as saving for vacations, desired items, etc.
Start with Your Net Income
First, figure out your net income for each month. This means your income minus taxes, insurance, 401K deductions, and so forth. If you are self-employed, subtract estimated taxes, insurance costs, retirement account savings, etc. At this point, you just need numbers.
Expenses - Keep Categories General
Next, figure out your monthly expenses. If they vary, figure out an average by looking at the last three to six months' worth of expenses. For instance, if your electric bill was $150 last month, $140 the month before, and $175 the month before that, then you can estimate a monthly expense of around $155 for electricity. Alternatively, you could take the highest amount, $175, and go with that.
It's a good idea to keep your categories as general as possible while still preserving clarity. Otherwise, you might get confused or overwhelmed by all the "hair splitting." For example, instead of having "food, paper products, drug items, etc." as categories, you can lump all those expenses under "groceries." Items like "pet supplies" can be their own category, but you might want to include vet bills in that category. Here are some suggestions for categories:
* Charitable giving
* Payment off debt
* Home (mortgage, rent, property tax, insurance, repairs, etc.)
* Vehicle
* Utilities
* Health Care
* Birthday and Christmas gifts
* Cushion (this is money set aside to offset surprises, mistakes, or unexpected expenditures)
* Personal (eating out, hair appointments, etc.)
Stop and Look
At this point, stop and take a look at what you've got so far. Are your expenses greater than your income? It's time to cut back significantly, or find another source of income (or both).
Actual Expenses
So far, you have two columns - income and estimated expenses. Now you need to add another column: actual expenses. Keep track of the real numbers each week over the next month and see how much/if they differ.
Now you're well on your way to a workable budget!
Sunday, November 2, 2014
A Healthy Outlook to Family Budgets
Having a family budget means, for some people, whipping out the calculator at every purchase, or viewing the budget on their mobile device in the grocery store. For others, a family budget is just a formality and they never really glance at it. Between these extremes are those who sort of use their family budget with moments of obsessive adherence, or those who try but give up altogether because they go crazy trying to keep track of all the details.
Where's the balance? How can you maintain a healthy outlook without obsessing or ignoring your family budget?
Here are some tips on how you can cultivate a healthy outlook regarding your family budget.
Flexibility
For those who tend to err on the obsessive side, it is a good idea to remember to be flexible with your budget. Of course, flexibility does not mean ignoring your parameters. But it does mean you can take a little from one area and cut back in another when necessary.
Get Your Family On Board
Nothing can make you frustrated with a budget like lack of family participation. Family members might just rack up expenses without giving the budget a second thought, leaving you to tear your hair out trying to balance it and cover the expenses. If the whole family is included and on board with the budget, it can improve everyone's outlook.
You Don't Have to Keep Track of Every Penny
Some people avoid a budget because they don't want the stress of keeping track of every cent spent. They're right - that is stressful. But it's not the only way. Look into budgeting in a general way, or simply work out a list of expenses, income, and how much you have in the bank right now.
Customize
Don't be afraid to get creative with your budget, and customize it for your family's needs. Your outlook is likely to be a lot healthier if your budget is suited for your income, expenses, and personality. Your family dynamic should be taken into consideration when you form your budget.
Forgive Yourself and Family Members
Everyone makes mistakes and breaks the budget now and then. Beating yourself up over a budget mess-up is not conducive to a healthy outlook, and neither is nagging and punishing family members. If it's a chronic "mistake," it may need to be addressed in a civil family meeting. But to keep a healthy outlook, let the minor offenses go.
Know When It's a Real Emergency
What constitutes an "emergency" can differ between family members. Dipping into the emergency fund for non-emergency expenses can deplete the money pretty fast. Make sure everyone knows what a real financial emergency looks like for your family.
Where's the balance? How can you maintain a healthy outlook without obsessing or ignoring your family budget?
Here are some tips on how you can cultivate a healthy outlook regarding your family budget.
Flexibility
For those who tend to err on the obsessive side, it is a good idea to remember to be flexible with your budget. Of course, flexibility does not mean ignoring your parameters. But it does mean you can take a little from one area and cut back in another when necessary.
Get Your Family On Board
Nothing can make you frustrated with a budget like lack of family participation. Family members might just rack up expenses without giving the budget a second thought, leaving you to tear your hair out trying to balance it and cover the expenses. If the whole family is included and on board with the budget, it can improve everyone's outlook.
You Don't Have to Keep Track of Every Penny
Some people avoid a budget because they don't want the stress of keeping track of every cent spent. They're right - that is stressful. But it's not the only way. Look into budgeting in a general way, or simply work out a list of expenses, income, and how much you have in the bank right now.
Customize
Don't be afraid to get creative with your budget, and customize it for your family's needs. Your outlook is likely to be a lot healthier if your budget is suited for your income, expenses, and personality. Your family dynamic should be taken into consideration when you form your budget.
Forgive Yourself and Family Members
Everyone makes mistakes and breaks the budget now and then. Beating yourself up over a budget mess-up is not conducive to a healthy outlook, and neither is nagging and punishing family members. If it's a chronic "mistake," it may need to be addressed in a civil family meeting. But to keep a healthy outlook, let the minor offenses go.
Know When It's a Real Emergency
What constitutes an "emergency" can differ between family members. Dipping into the emergency fund for non-emergency expenses can deplete the money pretty fast. Make sure everyone knows what a real financial emergency looks like for your family.
Thursday, October 30, 2014
Get Your Family Onboard With Your Family Budget
You've probably heard that getting everyone involved is important to the success of your family budget. But you may be wondering if that's really necessary, or how to even do it. Here are some ideas and tips for getting everyone on board with your family budget.
Be Open
Sometimes parents try to hide their financial situation from their kids and/or each other. While this may seem like "sparing" the ones you love, in actuality it can cause undue stress on the one family member who does know how bad things are, or how things work financially.
It's true that you don't want to overburden your kids with responsibilities that aren't theirs, but including them in a frank discussion of your financial situation can go a long way toward easing your burden and garnering their willing participation.
The Family Meeting
Call a family meeting to discuss finances. If you've never done a family meeting before, this is a good place to start. It may not be everyone's favorite topic, but it's an important one. Ultimately, your kids and spouse will be glad you included them in the discussion. Another tip on the meeting - try to call it at a time when it doesn't cut into other plans. This should help reduce resentment.
It Affects Everyone
Explain how your family finances affect everyone in the household. Be clear and specific, citing fees, tuition, allowances, groceries, etc. and how they all cost money. There's no need to beat everyone over the head with this information, so to speak; but it gets family members to think a bit about where the money comes from. It's easy to take things for granted.
Cutting Back
If the budget involves cutting back, it's probably a good idea to cut back in areas that affect the whole family rather than just one member. Otherwise, that one person may resent what seems to be preferential treatment of the others, and you've lost your whole-family approach to the budget.
Set Goals Together
As you work to formulate your budget, work on common goals. What would your youngest child like to see as part of the budget? She might say toys. Your oldest child might point to electronic devices as something to include; your spouse may say a nice vacation. Consider everyone's wishes and come up with some realistic, common goals. Not everything is doable, of course; but finding creative ways to get everyone's needs met is what family life is all about.
Be Open
Sometimes parents try to hide their financial situation from their kids and/or each other. While this may seem like "sparing" the ones you love, in actuality it can cause undue stress on the one family member who does know how bad things are, or how things work financially.
It's true that you don't want to overburden your kids with responsibilities that aren't theirs, but including them in a frank discussion of your financial situation can go a long way toward easing your burden and garnering their willing participation.
The Family Meeting
Call a family meeting to discuss finances. If you've never done a family meeting before, this is a good place to start. It may not be everyone's favorite topic, but it's an important one. Ultimately, your kids and spouse will be glad you included them in the discussion. Another tip on the meeting - try to call it at a time when it doesn't cut into other plans. This should help reduce resentment.
It Affects Everyone
Explain how your family finances affect everyone in the household. Be clear and specific, citing fees, tuition, allowances, groceries, etc. and how they all cost money. There's no need to beat everyone over the head with this information, so to speak; but it gets family members to think a bit about where the money comes from. It's easy to take things for granted.
Cutting Back
If the budget involves cutting back, it's probably a good idea to cut back in areas that affect the whole family rather than just one member. Otherwise, that one person may resent what seems to be preferential treatment of the others, and you've lost your whole-family approach to the budget.
Set Goals Together
As you work to formulate your budget, work on common goals. What would your youngest child like to see as part of the budget? She might say toys. Your oldest child might point to electronic devices as something to include; your spouse may say a nice vacation. Consider everyone's wishes and come up with some realistic, common goals. Not everything is doable, of course; but finding creative ways to get everyone's needs met is what family life is all about.
Wednesday, October 15, 2014
Successful Family Budgeting
Creating a family budget is within everyone's reach, but creating a successful one requires some particular methods. Here are some tips to help you create a successful family budget.
Get Everyone on Board
The more inclusive your budget is, the more likely it is to work well for your family. Include every family member who is old enough to understand. A budget affects everyone, and it's a good idea to listen to input from other members of the family.
Leave Room for Luxuries
Some budgets are so tight that it may seem there's no room for any luxury. But if you get a bit creative about what constitutes a luxury, you will probably find you can in fact afford some kind of privilege or luxury. It could be something like buying your favorite brand name item at the store instead of settling for the store brand, or maybe buying fresh fish instead of frozen once a month. Maybe ordering a pizza or Chinese food is a luxury for your family that you can include in your budget.
If you are budgeting with more money, your luxury could be a family vacation or new piece of electronic equipment. The point is to include some kind of luxury in your budget. This helps keep family members motivated and makes the budget easier to deal with.
Get a Good Estimation
To do this, it's a good idea to take your last three months' worth of income and create an average. When in doubt, round down so that surprises will be more likely to be on the plus side. The same is true for expenses - include at least three months of expenses to get a true picture.
Be Patient
It takes a few months for a budget to sort itself out and become habit. There will be bugs that need to be worked out. Understanding this can help you stick with it as it needs tweaking and adjusting.
Software
For some, using software to lay out the family budget can be very helpful. Software that is designed for the purpose may make creating the budget easier.
Combine
As you look at the things that cost you money, remember gas and miles on your car. Combining errands is something most people try to do; but there might be some other combinations that you hadn't thought of. For example, visit out-of-town family members during your vacation.
Distinguish between Optional and Necessary Spending
This distinction is harder to make for some people than others, and it's tougher in some family dynamics than others. What one person thinks of as a "necessity" might be looked at as a luxury by someone else. If you're in doubt, check budget formats and accepted principles in this regard that come from a third party.
Pay off Debts
It's unpleasant, but paying off debts needs to be high on the priority list for your family budget. The sooner they're paid off, the sooner you'll have more money left over!
Get Everyone on Board
The more inclusive your budget is, the more likely it is to work well for your family. Include every family member who is old enough to understand. A budget affects everyone, and it's a good idea to listen to input from other members of the family.
Leave Room for Luxuries
Some budgets are so tight that it may seem there's no room for any luxury. But if you get a bit creative about what constitutes a luxury, you will probably find you can in fact afford some kind of privilege or luxury. It could be something like buying your favorite brand name item at the store instead of settling for the store brand, or maybe buying fresh fish instead of frozen once a month. Maybe ordering a pizza or Chinese food is a luxury for your family that you can include in your budget.
If you are budgeting with more money, your luxury could be a family vacation or new piece of electronic equipment. The point is to include some kind of luxury in your budget. This helps keep family members motivated and makes the budget easier to deal with.
Get a Good Estimation
To do this, it's a good idea to take your last three months' worth of income and create an average. When in doubt, round down so that surprises will be more likely to be on the plus side. The same is true for expenses - include at least three months of expenses to get a true picture.
Be Patient
It takes a few months for a budget to sort itself out and become habit. There will be bugs that need to be worked out. Understanding this can help you stick with it as it needs tweaking and adjusting.
Software
For some, using software to lay out the family budget can be very helpful. Software that is designed for the purpose may make creating the budget easier.
Combine
As you look at the things that cost you money, remember gas and miles on your car. Combining errands is something most people try to do; but there might be some other combinations that you hadn't thought of. For example, visit out-of-town family members during your vacation.
Distinguish between Optional and Necessary Spending
This distinction is harder to make for some people than others, and it's tougher in some family dynamics than others. What one person thinks of as a "necessity" might be looked at as a luxury by someone else. If you're in doubt, check budget formats and accepted principles in this regard that come from a third party.
Pay off Debts
It's unpleasant, but paying off debts needs to be high on the priority list for your family budget. The sooner they're paid off, the sooner you'll have more money left over!
Sunday, October 5, 2014
And Economic Debt Collapse Rogers On Jim The US
Jim Rogers On Economic Collapse And The US Debt. Jim Rogers - US Debt is MUCH bigger than declared! economy, economic, crisis, collapse, dollar, crash, us, d...
Wednesday, October 1, 2014
Customise Your Budgeting
Your family budget does not necessarily have to fit a template - even if you do use a template, you can customize it. A budget that really fits your style and family dynamic tends to be a lot easier to stick with, and can even be fun! Here are some tips for making a creative, customized family budget.
It's Your Budget
Get your whole family to participate in creating the budget to make it really yours. Create common goals and brainstorm for fun and creative budgeting ideas.
Cookouts
The great American cookout is a great way to have an "outing" while saving money. If you grill seasonal garden vegetables, it's an even bigger money saver. Get creative - you can grill inexpensive, "ordinary" foods and make them seem like a treat. For example, mix up some flat bread dough and cook it on the grill. You can even do pizza on the grill!
Go "Shopping" for What You Don't Need
This can be fun as a family. When you're out running errands or at the mall, make a point of pointing out all the useless things you see that you don't need. Some people can have a lot of fun with this - they find the craziest looking clothes, for instance, and laugh about how much they don't need them and how much they're saving. It's fun, but it also teaches your family some important lessons about needs versus wants.
Creative Savings - a New Take on the "Swear Jar"
Have you heard of a "swear jar"? Some families who are trying to improve their language will institute a swear jar. Any family member who swears has to put a quarter into the jar. Get creative with your family - is there something your family would like to improve on that could use a "swear jar"? Here are some ideas:
* Every time your child talks back he or she has to put a quarter in the jar.
* Playing video games, watching television, and other entertainment media "costs" 50 cents for every half an hour.
* Family members must pay a quarter each time they don't put away their shoes, toys, or whatever item always seems to be left on the floor each day.
* Complaining about dinner will cost family members 50 cents each.
Another method is simply never to spend change. When you pay cash for something, always use paper money - if the total is $5.26, give the clerk $6. Then put this change into the jar. You'll be amazed at how this can accumulate over the year, especially if you use cash often.
DIY Videos
Make use of all those online tutorials to fix minor problems around the house. Try typing your problem into your search engine and look for tutorials. It's amazing how much information is on the internet, even for solving obscure problems.
It's Your Budget
Get your whole family to participate in creating the budget to make it really yours. Create common goals and brainstorm for fun and creative budgeting ideas.
Cookouts
The great American cookout is a great way to have an "outing" while saving money. If you grill seasonal garden vegetables, it's an even bigger money saver. Get creative - you can grill inexpensive, "ordinary" foods and make them seem like a treat. For example, mix up some flat bread dough and cook it on the grill. You can even do pizza on the grill!
Go "Shopping" for What You Don't Need
This can be fun as a family. When you're out running errands or at the mall, make a point of pointing out all the useless things you see that you don't need. Some people can have a lot of fun with this - they find the craziest looking clothes, for instance, and laugh about how much they don't need them and how much they're saving. It's fun, but it also teaches your family some important lessons about needs versus wants.
Creative Savings - a New Take on the "Swear Jar"
Have you heard of a "swear jar"? Some families who are trying to improve their language will institute a swear jar. Any family member who swears has to put a quarter into the jar. Get creative with your family - is there something your family would like to improve on that could use a "swear jar"? Here are some ideas:
* Every time your child talks back he or she has to put a quarter in the jar.
* Playing video games, watching television, and other entertainment media "costs" 50 cents for every half an hour.
* Family members must pay a quarter each time they don't put away their shoes, toys, or whatever item always seems to be left on the floor each day.
* Complaining about dinner will cost family members 50 cents each.
Another method is simply never to spend change. When you pay cash for something, always use paper money - if the total is $5.26, give the clerk $6. Then put this change into the jar. You'll be amazed at how this can accumulate over the year, especially if you use cash often.
DIY Videos
Make use of all those online tutorials to fix minor problems around the house. Try typing your problem into your search engine and look for tutorials. It's amazing how much information is on the internet, even for solving obscure problems.
Friday, September 26, 2014
How To Stick To Your Budget
So you have a family budget. There's only one problem - you haven't stuck with it! Maybe your budget is nicely outlined and detailed, but sits unused on your computer or in your desk drawer.
Formulating a budget is a challenge, but once you have it done, it doesn't do any good unless you stick with it. Of course, sometimes you do need to compromise, and your budget does need to be somewhat flexible. But you can periodically tweak and adjust your budget and still stick to it. Here are some creative and even fun tips for sticking with your budget.
Have a Look-See
Maybe your budget didn't work out because it didn't fit your needs. Take a fresh look at your budget and ask some of the following questions:
* Is it too detailed? You might find it exhausting trying to keep a budget that has dozens of categories.
* Is it too simple? If your budget is too general, you may have let it slide because there just weren't enough details to get a true grasp on your finances.
* Does your budget include alternatives? If your family is not the creative type, you may have had trouble coming up with alternatives to the budget cutbacks. For instance, if your budget revealed that you needed to cut back on eating out, and you didn't have an alternative plan for what you were going to do instead of eating out, you might have slipped up and deviated from your budget. For some people, this is natural; others need to write in alternatives.
* Are you realistic about your income? A budget may fail if your income section is more about goals and ideals than actuals.
* Are there rewards? A budget should have some rewards worked into it - a vacation, a movie out, or a new pair of shoes.
Include Fun Alternatives
As noted above, having alternatives to fill the void created by cutbacks is helpful to keeping your budget. Having creative and fun alternatives may be even more helpful. Here are some ideas.
* Instead of eating lunch out, pack a fun lunch Bento-style.
* Lunch-in can be a fun picnic, indoor or outdoor.
* Staying home for dinner can be fun if it involves a cookout or, if you're really in the mood to be creative, experimenting with a homemade solar oven.
* Cutting back by getting rid of cable need not be too painful - high-speed internet access is generally a whole lot cheaper than cable, and the family can have fun gathering around the computer for movie night online.
* Instead of going to the movies, make your own. Have a family make-a-movie night and put on plays, puppet shows, or what-have-you. Capture the fun using your digital camera or webcam.
* Look up how to make your own skin cleansers, household cleaners, and even shampoo online. Learn how you can make these things for pennies, saving by shunning store-bought versions and having fun in the process.
Sometimes, just getting creative and customizing your budget to fit your family can go a long way toward encouraging everyone to stick with it.
Formulating a budget is a challenge, but once you have it done, it doesn't do any good unless you stick with it. Of course, sometimes you do need to compromise, and your budget does need to be somewhat flexible. But you can periodically tweak and adjust your budget and still stick to it. Here are some creative and even fun tips for sticking with your budget.
Have a Look-See
Maybe your budget didn't work out because it didn't fit your needs. Take a fresh look at your budget and ask some of the following questions:
* Is it too detailed? You might find it exhausting trying to keep a budget that has dozens of categories.
* Is it too simple? If your budget is too general, you may have let it slide because there just weren't enough details to get a true grasp on your finances.
* Does your budget include alternatives? If your family is not the creative type, you may have had trouble coming up with alternatives to the budget cutbacks. For instance, if your budget revealed that you needed to cut back on eating out, and you didn't have an alternative plan for what you were going to do instead of eating out, you might have slipped up and deviated from your budget. For some people, this is natural; others need to write in alternatives.
* Are you realistic about your income? A budget may fail if your income section is more about goals and ideals than actuals.
* Are there rewards? A budget should have some rewards worked into it - a vacation, a movie out, or a new pair of shoes.
Include Fun Alternatives
As noted above, having alternatives to fill the void created by cutbacks is helpful to keeping your budget. Having creative and fun alternatives may be even more helpful. Here are some ideas.
* Instead of eating lunch out, pack a fun lunch Bento-style.
* Lunch-in can be a fun picnic, indoor or outdoor.
* Staying home for dinner can be fun if it involves a cookout or, if you're really in the mood to be creative, experimenting with a homemade solar oven.
* Cutting back by getting rid of cable need not be too painful - high-speed internet access is generally a whole lot cheaper than cable, and the family can have fun gathering around the computer for movie night online.
* Instead of going to the movies, make your own. Have a family make-a-movie night and put on plays, puppet shows, or what-have-you. Capture the fun using your digital camera or webcam.
* Look up how to make your own skin cleansers, household cleaners, and even shampoo online. Learn how you can make these things for pennies, saving by shunning store-bought versions and having fun in the process.
Sometimes, just getting creative and customizing your budget to fit your family can go a long way toward encouraging everyone to stick with it.
Friday, September 19, 2014
Do You Need an Emergency Fund?
Some may question the necessity of an emergency fund. After all, is it really necessary? How do you go about it? Does it need to be a huge amount? Here are some ideas and suggestions that should help answer these questions.
Is an Emergency Fund Necessary?
Generally speaking, yes, an emergency fund is necessary. What form it takes can vary, but it is a good idea to have an emergency fund. Such a fund can help you avoid high-interest debt, and it helps reduce stress. After all, life is full of changes - many of them sudden and not good - and having that "cushion" can help you feel ready and calm.
How Do You Go about Creating an Emergency Fund?
First, determine your expenses. Look at three to six months' worth of living costs and count on saving that much in a fund. This can help you keep your standard of living for a time if you lose your job, or it can cover a large expense such as vehicle repair.
Then determine how long it will take you to save that much and how much you have to take out of your paycheck each month to reach that goal.
Once you've determined how much you need to save and how long it will take to save it, it's a good idea to change your mentality to put payments into the emergency fund before you pay for anything else. If you can do it by automatic deduction, go for it - see if you can have a portion of your paycheck taken out and put into a savings account. Otherwise, make it a habit to put money in your savings first and foremost, and then take care of your other expenses after.
What If You Have Low Income?
Even if you have low income, you can set aside something each month. Try saving a percentage of your income, such as 5 or 10 percent. It may take you longer, but it will accumulate.
Does It Have to Be Huge?
In short, no. An emergency fund does not have to be massive - but it certainly should cover unexpected expenses. To determine the size of your fund, consider what sorts of emergencies you'd want covered by the fund. Remember that buying insurance may be a more cost-effective way to guard against emergencies, too - evaluate the scope, likelihood, and potential cost of possible emergencies and this should give you a clearer picture of how large your fund needs to be.
Is an Emergency Fund Necessary?
Generally speaking, yes, an emergency fund is necessary. What form it takes can vary, but it is a good idea to have an emergency fund. Such a fund can help you avoid high-interest debt, and it helps reduce stress. After all, life is full of changes - many of them sudden and not good - and having that "cushion" can help you feel ready and calm.
How Do You Go about Creating an Emergency Fund?
First, determine your expenses. Look at three to six months' worth of living costs and count on saving that much in a fund. This can help you keep your standard of living for a time if you lose your job, or it can cover a large expense such as vehicle repair.
Then determine how long it will take you to save that much and how much you have to take out of your paycheck each month to reach that goal.
Once you've determined how much you need to save and how long it will take to save it, it's a good idea to change your mentality to put payments into the emergency fund before you pay for anything else. If you can do it by automatic deduction, go for it - see if you can have a portion of your paycheck taken out and put into a savings account. Otherwise, make it a habit to put money in your savings first and foremost, and then take care of your other expenses after.
What If You Have Low Income?
Even if you have low income, you can set aside something each month. Try saving a percentage of your income, such as 5 or 10 percent. It may take you longer, but it will accumulate.
Does It Have to Be Huge?
In short, no. An emergency fund does not have to be massive - but it certainly should cover unexpected expenses. To determine the size of your fund, consider what sorts of emergencies you'd want covered by the fund. Remember that buying insurance may be a more cost-effective way to guard against emergencies, too - evaluate the scope, likelihood, and potential cost of possible emergencies and this should give you a clearer picture of how large your fund needs to be.
Monday, September 15, 2014
This is When You Need To Take Control and Budget
Do you really need a budget? Isn't that just a boring list of numbers that means you never get to spend money on what you want?
A budget is really just a way to take control of your finances. It does not necessarily mean you can't ever spend your money on what you want; it just means you spend your money smarter. In fact, if you are always denying yourself and never buying anything you want for fear you can't afford it, a budget could be liberating. Dealing with real numbers tends to be a lot less stressful than dealing with vague impressions of your income and expenses.
So how do you know if you need a family budget? Here are some tips to help you know if you need to form a budget.
1. Your credit cards are never paid off.
If you are paying only the minimum balance on your credit card, and/or using one credit card to pay off another, then it's time to work out a budget to get out of that hole.
2. Money "burns a hole" in your pocket.
Do you feel like you have money for a moment or two, then it's gone? This could mean you have too many expenses, or that you are too quick to spend on wants rather than needs.
3. You don't put any money into your savings, or you are random about how much and when you put money in.
Having a savings plan is an important aspect of financial management. If you don't have any regimented plan for putting money into savings - say the first 10% of your net income always going to savings, or all bonuses from your workplace going straight to savings - then your savings will tend to languish as you keep spending on things you want.
4. You don't have a savings account at all.
If you don't have any savings or emergency fund, it may be a sign that you need a budget. A good family budget can help you make savings a priority.
5. You're always saying, "I can't afford it."
Do friends ask you to go out to lunch, or to an event, and you say you "can't afford it" all the time? This may be true, or it may not be; forming a budget will help you know what you really can and can't afford.
6. You never seem to have enough.
Money can be deceptive - what seems like "plenty" can suddenly be not enough. Forming a budget can help you get a grip on what you really have; you may be pleasantly surprised that you do actually have enough, or that it's feasible for you to make some strategic cuts so that you will have enough.
A budget is really just a way to take control of your finances. It does not necessarily mean you can't ever spend your money on what you want; it just means you spend your money smarter. In fact, if you are always denying yourself and never buying anything you want for fear you can't afford it, a budget could be liberating. Dealing with real numbers tends to be a lot less stressful than dealing with vague impressions of your income and expenses.
So how do you know if you need a family budget? Here are some tips to help you know if you need to form a budget.
1. Your credit cards are never paid off.
If you are paying only the minimum balance on your credit card, and/or using one credit card to pay off another, then it's time to work out a budget to get out of that hole.
2. Money "burns a hole" in your pocket.
Do you feel like you have money for a moment or two, then it's gone? This could mean you have too many expenses, or that you are too quick to spend on wants rather than needs.
3. You don't put any money into your savings, or you are random about how much and when you put money in.
Having a savings plan is an important aspect of financial management. If you don't have any regimented plan for putting money into savings - say the first 10% of your net income always going to savings, or all bonuses from your workplace going straight to savings - then your savings will tend to languish as you keep spending on things you want.
4. You don't have a savings account at all.
If you don't have any savings or emergency fund, it may be a sign that you need a budget. A good family budget can help you make savings a priority.
5. You're always saying, "I can't afford it."
Do friends ask you to go out to lunch, or to an event, and you say you "can't afford it" all the time? This may be true, or it may not be; forming a budget will help you know what you really can and can't afford.
6. You never seem to have enough.
Money can be deceptive - what seems like "plenty" can suddenly be not enough. Forming a budget can help you get a grip on what you really have; you may be pleasantly surprised that you do actually have enough, or that it's feasible for you to make some strategic cuts so that you will have enough.
Thursday, September 11, 2014
Some Budget Tips for Debt Control
Have you been talking about a family budget, but aren't sure where to start? Sometimes it's good to start with the basics, such as the basic outline for a budget and the categories you want to include. Here are some tips to help you formulate a simple family budget.
Income
The first place to start in the outline of your budget is with your income. There will be some estimating here, no doubt; but make sure it's estimation, not dreaming, say experts. The income area of your budget is not the place to write down ideals. Simply take a look at your net income over the last three months and estimate an average monthly income. Or you might have income that changes very little month-to-month; it should therefore be pretty easy to figure out your monthly income.
Expenses
Your next category should be expenses. It's good to include enough detail that you have a grasp on things, but splitting your expenses into dozens of little categories will probably only frustrate you. Try to make your categories fairy general - "entertainment," for example, is a more general category than "computer games, movies, cable, and DVDs" listed as separate categories. There will probably be more estimation here than in the income category.
As you break down your expenses into understandable categories and numbers, remember that charitable giving or any giving away of money should be also listed as an expenditure.
Actual Expenses
Estimation gives way to "real" numbers when you write down your actual expenses during the month. This is the last section of your budget plan. Keep a running tally of your expenses for several months, and then look at where you are.
Some Basic Principles
In budgeting, there are some principles that are considered basic. Here are some of them.
* Distinguish between wants and needs. This can be a hard one, but it's vital for a budget to function properly. Beware of convincing yourself that a want is a need when it isn't - you may just be trying to find an excuse to buy the item. Real needs are things like clothes, food, and shelter; but designer clothes, gourmet food, and a palatial dwelling are more like wants!
* Expenses should not exceed income. You may find yourself surprised the first time you do a budget and discover that you actually don't make enough money to cover your expenses. If you discover this, you need to look carefully at your income section and see where you can increase it, and look just as carefully at the expenses and see where you can make cuts.
Income
The first place to start in the outline of your budget is with your income. There will be some estimating here, no doubt; but make sure it's estimation, not dreaming, say experts. The income area of your budget is not the place to write down ideals. Simply take a look at your net income over the last three months and estimate an average monthly income. Or you might have income that changes very little month-to-month; it should therefore be pretty easy to figure out your monthly income.
Expenses
Your next category should be expenses. It's good to include enough detail that you have a grasp on things, but splitting your expenses into dozens of little categories will probably only frustrate you. Try to make your categories fairy general - "entertainment," for example, is a more general category than "computer games, movies, cable, and DVDs" listed as separate categories. There will probably be more estimation here than in the income category.
As you break down your expenses into understandable categories and numbers, remember that charitable giving or any giving away of money should be also listed as an expenditure.
Actual Expenses
Estimation gives way to "real" numbers when you write down your actual expenses during the month. This is the last section of your budget plan. Keep a running tally of your expenses for several months, and then look at where you are.
Some Basic Principles
In budgeting, there are some principles that are considered basic. Here are some of them.
* Distinguish between wants and needs. This can be a hard one, but it's vital for a budget to function properly. Beware of convincing yourself that a want is a need when it isn't - you may just be trying to find an excuse to buy the item. Real needs are things like clothes, food, and shelter; but designer clothes, gourmet food, and a palatial dwelling are more like wants!
* Expenses should not exceed income. You may find yourself surprised the first time you do a budget and discover that you actually don't make enough money to cover your expenses. If you discover this, you need to look carefully at your income section and see where you can increase it, and look just as carefully at the expenses and see where you can make cuts.
Monday, September 1, 2014
The "Do It Yourself" Debt Snowball Method
The debt snowball method is one of the most effective methods for paying off personal debt, period. Instead of taking a purely logical approach, the debt snowball approach actually makes the whole process of paying off debts much more psychologically easy and satisfying.
Here's how the debt snowball works.
==> An Overview of the Process
Take out an Excel spreadsheet and list out all your debts. Make sure to include the name of the creditor, the amount you owe, the annual percentage rate, the monthly minimum payment and the payment date for each debt.
Sort your list by the total owed. The smallest debt is the debt you'll work on first. Unlike other systems which advocate paying off the highest interest debt first, the debt snowball method works by paying off the smallest debt first.
This works because paying off that small debt gives a real sense of achievement. That momentum and enthusiasm can be channeled towards paying off the next largest debt, then the next and so on and so forth.
But that's not all.
You start by paying off the smallest debt. You do so by paying as much extra towards the debt as you possibly can, while still making the minimum payment on every other debt you owe.
Let's say the minimum payment for your smallest debt is $100 a month. You decide you can put an extra $200 a month towards that debt as well to get it paid down as quickly as possible.
Once the debt is paid off, however, you now have that $200 a month plus the $100 a month minimum payment that you can now put towards your second smallest debt. Let's say that debt's minimum payment was $150.
Once that's paid off, you now have that $150, plus the $300 from earlier that you can now put towards your third largest debt.
In this manner, the payoff process effectively "snowballs" until you have an incredible amount of momentum and financial power that goes towards paying off your debts.
==> A Few Things to Note
There are a couple things to keep in mind with the debt snowball method.
First of all, some lenders will try to apply any extra amount you pay to your next month's payment instead of applying it towards your principal. Make sure you talk to your lenders to make sure your extra payments are paying off the principal.
Second, the debt snowball method is much more of a psychological approach than mathematical. However, debt repayment is often much more about keeping your spirits up than strict math. Try the system for a few months to make sure that it's really, truly working for you. If it is, then commit to sticking it through until completion.
Finally, and this might go without saying, as soon as you start this process you absolutely must put away all your credit cards. There is no sense in starting this process if you're going to rack up debt along the way.
Here's how the debt snowball works.
==> An Overview of the Process
Take out an Excel spreadsheet and list out all your debts. Make sure to include the name of the creditor, the amount you owe, the annual percentage rate, the monthly minimum payment and the payment date for each debt.
Sort your list by the total owed. The smallest debt is the debt you'll work on first. Unlike other systems which advocate paying off the highest interest debt first, the debt snowball method works by paying off the smallest debt first.
This works because paying off that small debt gives a real sense of achievement. That momentum and enthusiasm can be channeled towards paying off the next largest debt, then the next and so on and so forth.
But that's not all.
You start by paying off the smallest debt. You do so by paying as much extra towards the debt as you possibly can, while still making the minimum payment on every other debt you owe.
Let's say the minimum payment for your smallest debt is $100 a month. You decide you can put an extra $200 a month towards that debt as well to get it paid down as quickly as possible.
Once the debt is paid off, however, you now have that $200 a month plus the $100 a month minimum payment that you can now put towards your second smallest debt. Let's say that debt's minimum payment was $150.
Once that's paid off, you now have that $150, plus the $300 from earlier that you can now put towards your third largest debt.
In this manner, the payoff process effectively "snowballs" until you have an incredible amount of momentum and financial power that goes towards paying off your debts.
==> A Few Things to Note
There are a couple things to keep in mind with the debt snowball method.
First of all, some lenders will try to apply any extra amount you pay to your next month's payment instead of applying it towards your principal. Make sure you talk to your lenders to make sure your extra payments are paying off the principal.
Second, the debt snowball method is much more of a psychological approach than mathematical. However, debt repayment is often much more about keeping your spirits up than strict math. Try the system for a few months to make sure that it's really, truly working for you. If it is, then commit to sticking it through until completion.
Finally, and this might go without saying, as soon as you start this process you absolutely must put away all your credit cards. There is no sense in starting this process if you're going to rack up debt along the way.
Wednesday, August 20, 2014
Reduce Debt With These Three Important Actions
There are a lot of things you can do to reduce your debt. But what are the most important things you can do? If you could only focus your energy on three things, what three things should you focus on?
These are three actions you can take immediately that'll have a dramatic debt-slashing effect on your personal balance sheet.
==> Recruit the Support of Friends and Family
Trying to fight debt all on your own is incredibly difficult. It's especially difficult if you feel like it's something you need to hide.
Getting out of debt isn't a process that happens in weeks. It almost always takes months; often it takes years.
Maintaining the self-discipline and motivation to get you through all the hard times that are bound to come up is very hard all on your own.
But with the support of people who care about you, who can hold you to your word even when the times get tough, the process gets a lot easier.
==> Commit to Pay More Than the Minimum, Every Time
The amount of money credit card companies make off of you if you only pay the minimum amount is astounding.
Try it: plug in your minimum payment, your balance and your interest rate into an online calculator. You might be shocked at just how much more you'd end up paying.
If you want to get out of debt, it's crucial that you start paying more than the minimum amount, immediately.
That often means making sacrifices in other areas of your life. It might mean making coffee at home instead of going to Starbucks. It might mean biking to work rather than driving.
Every dollar saved is a dollar that can be used to pay off your debt.
==> Not Using Credit Cards - At All
Finally, get rid of your credit cards. Or at least lock them in a drawer and give the key to someone else. Don't actually close down your credit card accounts though, as having long-history credit card accounts with low balances is usually good for your credit score.
Trying to get your credit card balances down while you're still using credit cards is a logical fallacy. It just plain doesn't work.
Yet so many people try to do just that. They try to get out of debt, but they don't actually change their spending habits.
Using credit means you're essentially using money that you haven't made yet. If you step away from that mentality and instead only commit to using money that you've already made, that alone will set you on a path to financial freedom.
These are three action steps you can take to reducing your debt today. They're not easy to take, but if you have the willpower to follow through they'll make a big difference.
These are three actions you can take immediately that'll have a dramatic debt-slashing effect on your personal balance sheet.
==> Recruit the Support of Friends and Family
Trying to fight debt all on your own is incredibly difficult. It's especially difficult if you feel like it's something you need to hide.
Getting out of debt isn't a process that happens in weeks. It almost always takes months; often it takes years.
Maintaining the self-discipline and motivation to get you through all the hard times that are bound to come up is very hard all on your own.
But with the support of people who care about you, who can hold you to your word even when the times get tough, the process gets a lot easier.
==> Commit to Pay More Than the Minimum, Every Time
The amount of money credit card companies make off of you if you only pay the minimum amount is astounding.
Try it: plug in your minimum payment, your balance and your interest rate into an online calculator. You might be shocked at just how much more you'd end up paying.
If you want to get out of debt, it's crucial that you start paying more than the minimum amount, immediately.
That often means making sacrifices in other areas of your life. It might mean making coffee at home instead of going to Starbucks. It might mean biking to work rather than driving.
Every dollar saved is a dollar that can be used to pay off your debt.
==> Not Using Credit Cards - At All
Finally, get rid of your credit cards. Or at least lock them in a drawer and give the key to someone else. Don't actually close down your credit card accounts though, as having long-history credit card accounts with low balances is usually good for your credit score.
Trying to get your credit card balances down while you're still using credit cards is a logical fallacy. It just plain doesn't work.
Yet so many people try to do just that. They try to get out of debt, but they don't actually change their spending habits.
Using credit means you're essentially using money that you haven't made yet. If you step away from that mentality and instead only commit to using money that you've already made, that alone will set you on a path to financial freedom.
These are three action steps you can take to reducing your debt today. They're not easy to take, but if you have the willpower to follow through they'll make a big difference.
Wednesday, August 13, 2014
The True Cost of Credit Consulting and Is It Really Worth It?
What does credit consulting really cost?
Believe it or not, when you talk to a credit consulting agency, they often won't give you many of the most important numbers. They might phrase their charge as a monthly amount rather than an interest rate number, artificially lowering the perceived cost.
When considering a credit consulting agency, it's crucial to weigh the potential benefits against the potential costs.
==> A Quick Note on Credit "Consulting" versus "Debt Consolidation"
Debt consolidation is the act of consolidating all your debt into one place. Credit consulting is a wide range of services, one of which is debt consolidation.
Make no mistake, however; many credit consultants will ultimately try to push you towards debt consolidation. They'd much rather make thousands of dollars by consolidating your debt than charging you $50 an hour for consulting fees.
==> What's the Cost of Credit Consulting?
The first thing to consider is how much they can negotiate off of your total debt. Most credit consulting companies will take over the negotiation process with your creditors.
Let's say you owe $50,000. A debt consolidation company may be able to negotiate as much as 20% to 70% off of that amount. For example, they may get your creditors to agree to take only $25,000 and consider your case settled.
The remaining $25,000 is then paid to the debt consolidation company. However, they will often charge a premium on the amount they saved for you. Instead of paying your debt consolidation company just $25,000, they may ask for $35,000.
That's $10,000 in cost right off the bat. However, it's important to keep in mind that they saved you $25,000. In reality, the $10,000 cost is cheap when looked at in that light.
The cost of the negotiations, usually denominated as a percentage of the amount saved, is just one factor to look at.
Perhaps the most important cost to consider is the cost of carrying your debt, expressed as an annual percentage rate. Many debt consolidation companies will be very hesitant to give away this number, opting instead to disclose just the monthly payment.
In reality, most consolidation companies will charge somewhere between 14% and 19% - more than most credit cards.
This is on top of any additional monthly fee and upfront fees they may charge for their services.
==> Is It Worth the Cost?
The real question is whether or not they can save you money in negotiations and whether or not that will cover the cost of working with them in the long run.
Lenders will often be much more receptive to working with a debt consolidation company than with someone who owes them money. They understand that if you're working with a credit consultant, chances are they're not going to get their money if they don't negotiate.
There are many online calculators where you can plug in your monthly payment and your initial principal and figure out what your APR and total interest costs actually are.
Make sure you calculate the payment terms for any plan you're considering. Make sure that amount is less than how much money you're saving by having a credit consultant negotiate for you.
Believe it or not, when you talk to a credit consulting agency, they often won't give you many of the most important numbers. They might phrase their charge as a monthly amount rather than an interest rate number, artificially lowering the perceived cost.
When considering a credit consulting agency, it's crucial to weigh the potential benefits against the potential costs.
==> A Quick Note on Credit "Consulting" versus "Debt Consolidation"
Debt consolidation is the act of consolidating all your debt into one place. Credit consulting is a wide range of services, one of which is debt consolidation.
Make no mistake, however; many credit consultants will ultimately try to push you towards debt consolidation. They'd much rather make thousands of dollars by consolidating your debt than charging you $50 an hour for consulting fees.
==> What's the Cost of Credit Consulting?
The first thing to consider is how much they can negotiate off of your total debt. Most credit consulting companies will take over the negotiation process with your creditors.
Let's say you owe $50,000. A debt consolidation company may be able to negotiate as much as 20% to 70% off of that amount. For example, they may get your creditors to agree to take only $25,000 and consider your case settled.
The remaining $25,000 is then paid to the debt consolidation company. However, they will often charge a premium on the amount they saved for you. Instead of paying your debt consolidation company just $25,000, they may ask for $35,000.
That's $10,000 in cost right off the bat. However, it's important to keep in mind that they saved you $25,000. In reality, the $10,000 cost is cheap when looked at in that light.
The cost of the negotiations, usually denominated as a percentage of the amount saved, is just one factor to look at.
Perhaps the most important cost to consider is the cost of carrying your debt, expressed as an annual percentage rate. Many debt consolidation companies will be very hesitant to give away this number, opting instead to disclose just the monthly payment.
In reality, most consolidation companies will charge somewhere between 14% and 19% - more than most credit cards.
This is on top of any additional monthly fee and upfront fees they may charge for their services.
==> Is It Worth the Cost?
The real question is whether or not they can save you money in negotiations and whether or not that will cover the cost of working with them in the long run.
Lenders will often be much more receptive to working with a debt consolidation company than with someone who owes them money. They understand that if you're working with a credit consultant, chances are they're not going to get their money if they don't negotiate.
There are many online calculators where you can plug in your monthly payment and your initial principal and figure out what your APR and total interest costs actually are.
Make sure you calculate the payment terms for any plan you're considering. Make sure that amount is less than how much money you're saving by having a credit consultant negotiate for you.
Monday, August 4, 2014
What The Hell Is Debt Consolidation??
If you're flooded in debt, one option that you may have heard about is debt consolidation. There are many pros and cons to using a debt consolidation program. Keep in mind that in order to qualify, you generally need at least $7,500 in unsecured debt.
Here's how debt consolidation works.
==> Debt Consolidation 101
The basis of debt consolidation works like this. Let's say you have four different debts, all of which total up to $1,100 a month in debt payments. You simply can't afford the payments anymore.
Instead of defaulting or going into bankruptcy, you go to a debt consolidation company.
The debt consolidation company will turn to your lenders and negotiate a deal to pay off all your loans for you. Usually they'll get a deal for between 25% to 75% off.
They'll pay off the loan, then you'll owe them money instead of your previous lenders.
Instead of having to make four payments, you only need to make one. Your monthly payment is usually significantly lower than your previous monthly loan payment amount.
==> Keep In Mind They Need to Make Money Too
Keep in mind that debt consolidation companies, even if they're a non-profit company, need to make money too.
Some companies will structure their program in such a way that you're actually paying more at the end of the day. For example, they can lower your $1,100 payment down to $700 a month while extending your loan terms by 24 months.
Your monthly payment may be less, but in terms of the total loan term you may end up paying a few thousand dollars more.
It's a trade-off: they need to make money; but if you can't afford the higher monthly payment, then a lower monthly payment with a higher overall payment might be the lesser of two evils.
==> How Does It Affect Your Credit?
Settling a debt is definitely not as good for your credit as paying it off in full. However, it's definitely better than not paying it off at all.
How it affects your credit depends in part on how delinquent you were before the consolidation. It also depends on whether or not the creditor charged off your debt to a collection agency.
If your debt has already been charged off, the charge-off will appear on your credit report even if the consolidation company reaches a settlement with the collection agency.
The act of working with a debt consolidation company does not lower your credit. However, settling for an amount lower than the total you owed, being delinquent on your debt and getting charged off can all add up to negatively affect your credit report.
Apart from the settlement however, these would negatively affect your credit whether or not you consolidate your debt.
These are some of the most essential facts about debt consolidation. It's not for everyone; but if you want to save yourself from bankruptcy it may be the only option.
Here's how debt consolidation works.
==> Debt Consolidation 101
The basis of debt consolidation works like this. Let's say you have four different debts, all of which total up to $1,100 a month in debt payments. You simply can't afford the payments anymore.
Instead of defaulting or going into bankruptcy, you go to a debt consolidation company.
The debt consolidation company will turn to your lenders and negotiate a deal to pay off all your loans for you. Usually they'll get a deal for between 25% to 75% off.
They'll pay off the loan, then you'll owe them money instead of your previous lenders.
Instead of having to make four payments, you only need to make one. Your monthly payment is usually significantly lower than your previous monthly loan payment amount.
==> Keep In Mind They Need to Make Money Too
Keep in mind that debt consolidation companies, even if they're a non-profit company, need to make money too.
Some companies will structure their program in such a way that you're actually paying more at the end of the day. For example, they can lower your $1,100 payment down to $700 a month while extending your loan terms by 24 months.
Your monthly payment may be less, but in terms of the total loan term you may end up paying a few thousand dollars more.
It's a trade-off: they need to make money; but if you can't afford the higher monthly payment, then a lower monthly payment with a higher overall payment might be the lesser of two evils.
==> How Does It Affect Your Credit?
Settling a debt is definitely not as good for your credit as paying it off in full. However, it's definitely better than not paying it off at all.
How it affects your credit depends in part on how delinquent you were before the consolidation. It also depends on whether or not the creditor charged off your debt to a collection agency.
If your debt has already been charged off, the charge-off will appear on your credit report even if the consolidation company reaches a settlement with the collection agency.
The act of working with a debt consolidation company does not lower your credit. However, settling for an amount lower than the total you owed, being delinquent on your debt and getting charged off can all add up to negatively affect your credit report.
Apart from the settlement however, these would negatively affect your credit whether or not you consolidate your debt.
These are some of the most essential facts about debt consolidation. It's not for everyone; but if you want to save yourself from bankruptcy it may be the only option.
Tuesday, July 29, 2014
Little-Known Places to Pay Off Debt and Save Money
Want to pay off debt quickly, but don't know where the extra money will come from? Instead of trying to earn more money to pay off debt, what if you could save money by cutting costs in places you'd least expect?
Here are a few little-known ways to save money to pay off debt.
==> Explore Other Energy and Water Companies
In any residential area, there are usually just one or two energy companies that are heavily marketed. However, that doesn't necessarily mean they have the best or the cheapest service.
Changing power companies isn't difficult, due to anti-monopoly laws. If you find a cheaper company with a good reputation to go with, making the switch can be as simple as making a phone call.
You can save as much as 30% off your utility bills just by making this switch.
==> Disconnect Your LAN Line
If everyone in the house has a cell phone, do you really need that home LAN line? That's an easy $15 to $30 a month you can immediately put towards your debt payments.
==> Buy Generic Products
Is "Kleenex" really that much better than "Generic Tissue?" Is "Kellogg's" better than "Cornflakes?" Is "Colgate" better than "Toothpaste?"
Instead of buying branded products, you can often save as much as half of a product's costs by buying generic brand products.
If you make it a habit to just buy generic products, you can easily save $200 or more a month that can go straight towards lowering your debt payments.
==> Saving on Drinks
If you drink coffee, instead of spending that $3 to $4 on Starbucks, why not just make your own? Your coffee will cost perhaps $0.50 per cup instead.
If you drink soda regularly, avoid the vending machines. Instead, buy your cola in bulk from the supermarkets. This can cut your costs by as much as half to a third.
==> Make One Shopping Trip a Week
Most people make two or three shopping trips a week. That can easily be cut down into just one trip, however.
Have the whole family keep a shopping list. Have it posted on the fridge so everyone can just add anything they need from the store. Once a week, buy everything that's on the list.
This helps save a lot of money on gas. It also prevents things from piling up, especially perishable items. Finally, it saves time.
These are just a few of the many ways you can cut your costs to raise more money that can go towards paying off your debts. Remember that every dollar you save and put towards paying off debts is money multiplied. Applying just one or two of these techniques could make the difference between financial difficulty and smoothly paying off your debts.
Here are a few little-known ways to save money to pay off debt.
==> Explore Other Energy and Water Companies
In any residential area, there are usually just one or two energy companies that are heavily marketed. However, that doesn't necessarily mean they have the best or the cheapest service.
Changing power companies isn't difficult, due to anti-monopoly laws. If you find a cheaper company with a good reputation to go with, making the switch can be as simple as making a phone call.
You can save as much as 30% off your utility bills just by making this switch.
==> Disconnect Your LAN Line
If everyone in the house has a cell phone, do you really need that home LAN line? That's an easy $15 to $30 a month you can immediately put towards your debt payments.
==> Buy Generic Products
Is "Kleenex" really that much better than "Generic Tissue?" Is "Kellogg's" better than "Cornflakes?" Is "Colgate" better than "Toothpaste?"
Instead of buying branded products, you can often save as much as half of a product's costs by buying generic brand products.
If you make it a habit to just buy generic products, you can easily save $200 or more a month that can go straight towards lowering your debt payments.
==> Saving on Drinks
If you drink coffee, instead of spending that $3 to $4 on Starbucks, why not just make your own? Your coffee will cost perhaps $0.50 per cup instead.
If you drink soda regularly, avoid the vending machines. Instead, buy your cola in bulk from the supermarkets. This can cut your costs by as much as half to a third.
==> Make One Shopping Trip a Week
Most people make two or three shopping trips a week. That can easily be cut down into just one trip, however.
Have the whole family keep a shopping list. Have it posted on the fridge so everyone can just add anything they need from the store. Once a week, buy everything that's on the list.
This helps save a lot of money on gas. It also prevents things from piling up, especially perishable items. Finally, it saves time.
These are just a few of the many ways you can cut your costs to raise more money that can go towards paying off your debts. Remember that every dollar you save and put towards paying off debts is money multiplied. Applying just one or two of these techniques could make the difference between financial difficulty and smoothly paying off your debts.
Sunday, July 27, 2014
5 tips to put you in control of your debt
Admitting your debt situation is the first step to a better financial, emotional and personal life going forward, says debt expert Moeshfieka Botha.
Tuesday, July 22, 2014
Debt Control Tips To Try Before Seeking Professional Help
Going to a debt consolidation agency should be avoided if at all possible. Millions of people all around the world who were in debt manage to climb out of debt - without the help of such agencies. Here are some techniques you can and should try before resorting to debt consolidation.
==> Cut Up Your Credit Cards
Before you embark on any journey to reduce your debt, you need to first stop adding to your debt. From this point on, commit to not spending any money you haven't already made.
Cut up all of your credit cards. If you really must keep one card just in case an emergency comes up, give it to a family member instead.
Instruct them not to give you the card unless you explain the emergency to them and why you really need to take out that extra cash. Apart from real emergencies, from now on you only spend money you've made.
==> Use Cash Budgeting
Make a monthly budget that's significantly less than your total income.
At the beginning of every week, take out the same amount of cash as you've budgeted for the week.
Throughout the week, resolve not to take out any more cash. Don't use your debit card either.
This makes budgeting much more powerful. You can't go over budget, because your budget is being held in cold, hard cash.
==> Use the Debt Snowball Method
The debt snowball method involves paying off your credit cards one at a time, starting with the smallest amount (rather than the highest interest).
Once that amount has been paid off, you can add the amount that used to be the minimum payment on that card to paying off the next card.
Always, always, always pay more than the minimum balance.
==> Use EBay to Take a Chunk Off Your Debt
One great way to kick-start your debt relief program is to raise some extra cash on eBay.
Take a walk through your house, including the garage, the attic and any other storage area. Take an inventory of everything you actually have.
If something hasn't been used in six months or more, sell it. You can sell just about anything on eBay. Some items won't fetch much, but you might be surprised at how much you can get once you put a whole batch of items up for auction.
Put all the money you raise towards paying off your debt.
These are a few things to try before seeking professional help. Doing it yourself is always cheaper and better for your credit than having someone else do it for you. If all else fails, however, seeking professional help is still often a better option than filing for bankruptcy.
==> Cut Up Your Credit Cards
Before you embark on any journey to reduce your debt, you need to first stop adding to your debt. From this point on, commit to not spending any money you haven't already made.
Cut up all of your credit cards. If you really must keep one card just in case an emergency comes up, give it to a family member instead.
Instruct them not to give you the card unless you explain the emergency to them and why you really need to take out that extra cash. Apart from real emergencies, from now on you only spend money you've made.
==> Use Cash Budgeting
Make a monthly budget that's significantly less than your total income.
At the beginning of every week, take out the same amount of cash as you've budgeted for the week.
Throughout the week, resolve not to take out any more cash. Don't use your debit card either.
This makes budgeting much more powerful. You can't go over budget, because your budget is being held in cold, hard cash.
==> Use the Debt Snowball Method
The debt snowball method involves paying off your credit cards one at a time, starting with the smallest amount (rather than the highest interest).
Once that amount has been paid off, you can add the amount that used to be the minimum payment on that card to paying off the next card.
Always, always, always pay more than the minimum balance.
==> Use EBay to Take a Chunk Off Your Debt
One great way to kick-start your debt relief program is to raise some extra cash on eBay.
Take a walk through your house, including the garage, the attic and any other storage area. Take an inventory of everything you actually have.
If something hasn't been used in six months or more, sell it. You can sell just about anything on eBay. Some items won't fetch much, but you might be surprised at how much you can get once you put a whole batch of items up for auction.
Put all the money you raise towards paying off your debt.
These are a few things to try before seeking professional help. Doing it yourself is always cheaper and better for your credit than having someone else do it for you. If all else fails, however, seeking professional help is still often a better option than filing for bankruptcy.
Wednesday, July 16, 2014
How I Changed my Spending Habits
Hi! A couple of you have asked me how to control the urge to shop. The act of decluttering is often easier than keeping new stuff from coming in. Here are so...
SECRET CONSTITUTION HUDES WONT MENTION - GUN CONTROL - PUBLIC DEBT ENSLAVEMENT
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Tuesday, July 15, 2014
What is Better - Debt Relief or Bankruptsy
Is debt relief a better option than bankruptcy if you're having financial woes? There are strong arguments for both sides. There's actually no hard and fast answer to the issue. It depends entirely upon your own financial situation. These are some of the most important things to consider.
==> The Pros and Cons of Bankruptcy
The main major benefit of bankruptcy is that you essentially owe nothing if it's done correctly. You just walk away.
With debt settlement, you still have to cut a sizeable check every month to the consolidation company. With bankruptcy, however, you just don't have to pay anymore.
On the other hand, a bankruptcy will knock your credit score down by 200 to 250 points, turning any credit score into a rock bottom score.
By contrast, debt consolidation which is usually reported by creditors as "Settled" on your credit report will generally only impact your score by about 50 points.
The score isn't the only thing. Future creditors who see a bankruptcy on your report will know you essentially walked away from debt commitments. They're much less likely to trust you in the future.
==> The Pros and Cons of Debt Consolidation
The main drawback of debt consolidation as opposed to bankruptcy is that you're not actually out of your payments. You still have to pay back your debts, albeit a smaller amount.
One huge benefit of debt consolidation over bankruptcy is that it can address many other kinds of debt that bankruptcy can't get rid of, including child support or alimony.
With debt consolidation, if you're working with a credible company, you'll also have someone to take you by the hand and walk you through the debt repayment process.
One of the main things you need to ask yourself before starting any kind of debt relief program is whether or not you can really realistically stick through the program.
Although there are no nationally verifiable statistics on debt relief follow-through rates, many estimate the dropout rate to be around 45%.
In other words, these are people who'll spend months or years going through the process of paying off debt and then end up throwing in the towel anyway.
This ends up costing them a lot of money and delays the recovery of their credit rating.
Debt relief may very well be a better option, but only if you can realistically stick to the plan. If you can't afford to pay even a reduced monthly amount, then you may be better off filing for bankruptcy.
As you can tell, there are a lot of factors that go into weighing this decision. For some, the right direction to go is to wipe their debt clean. For others, that might not even be possible due to the nature of their debt. If you need help making the decision, don't be afraid to ask for a professional opinion.
==> The Pros and Cons of Bankruptcy
The main major benefit of bankruptcy is that you essentially owe nothing if it's done correctly. You just walk away.
With debt settlement, you still have to cut a sizeable check every month to the consolidation company. With bankruptcy, however, you just don't have to pay anymore.
On the other hand, a bankruptcy will knock your credit score down by 200 to 250 points, turning any credit score into a rock bottom score.
By contrast, debt consolidation which is usually reported by creditors as "Settled" on your credit report will generally only impact your score by about 50 points.
The score isn't the only thing. Future creditors who see a bankruptcy on your report will know you essentially walked away from debt commitments. They're much less likely to trust you in the future.
==> The Pros and Cons of Debt Consolidation
The main drawback of debt consolidation as opposed to bankruptcy is that you're not actually out of your payments. You still have to pay back your debts, albeit a smaller amount.
One huge benefit of debt consolidation over bankruptcy is that it can address many other kinds of debt that bankruptcy can't get rid of, including child support or alimony.
With debt consolidation, if you're working with a credible company, you'll also have someone to take you by the hand and walk you through the debt repayment process.
One of the main things you need to ask yourself before starting any kind of debt relief program is whether or not you can really realistically stick through the program.
Although there are no nationally verifiable statistics on debt relief follow-through rates, many estimate the dropout rate to be around 45%.
In other words, these are people who'll spend months or years going through the process of paying off debt and then end up throwing in the towel anyway.
This ends up costing them a lot of money and delays the recovery of their credit rating.
Debt relief may very well be a better option, but only if you can realistically stick to the plan. If you can't afford to pay even a reduced monthly amount, then you may be better off filing for bankruptcy.
As you can tell, there are a lot of factors that go into weighing this decision. For some, the right direction to go is to wipe their debt clean. For others, that might not even be possible due to the nature of their debt. If you need help making the decision, don't be afraid to ask for a professional opinion.
Friday, July 11, 2014
Tax Debt Control
In a tough economy, one organization a lot of people end up owning a lot of money to is none other than the government. Owing more taxes than you can afford is an incredibly stressful position to be in. Fortunately, there are a number of different options you can take.
==> Asking for a Payment Plan
You don't have to pay all your taxes back in full if you can prove to the IRS that you simply can't afford it.
It's called the IRS Form 9465, which is basically an application to the IRS telling them you can't afford to pay all your taxes right now.
You'll still pay them in full, but you pay them off in an installment plan instead. You outline the details of the plan in your form.
For the maximum chances of getting your plan approved, work with a tax professional to write your Form 9465.
Before you file your Form 9465, try to pay off as much of your taxes with a lump sum as possible. Explore all tax cuts and tax write-offs possible and get your total tax amount as low as you can.
The IRS is willing to work with citizens, but it wants to see that you're making a real effort and not just trying to get away with paying less or paying later.
==> When Will the IRS Forgive Your Debt?
There are a few circumstances under which the IRS is willing to simply forgive your debt.
For one, if your total net worth falls significantly under your total debt, you have a good chance of getting your taxes forgiven.
In other words, if your total assets, including cash, stocks, retirement funds, home equity, etc all add up to $100,000 and you owe the IRS $150,000, then you have a good chance of having your taxes forgiven.
Also, if much of your debt comes from real estate or mortgage debt, you might qualify for debt relief under the Mortgage Debt Forgiveness Act of 2007.
Apart from these two conditions, the IRS is rather strict on getting paid. The only other real alternative is bankruptcy, which can often wipe out all your tax debt.
Of course, a bankruptcy is a real black mark on your credit report and should only be used as a last resort.
If you're having trouble paying the IRS, first talk to a qualified tax professional to explore all your options. Get your tax bill as low as possible through cuts and write-offs, then see if an installment plan is realistic.
If that isn't going to work, then explore whatever avenues you can to get the taxes forgiven. If you really have no other alternative, then and only then should you consider bankruptcy. However, no matter what you choose, the IRS is the one creditor whose debt you really can't just ignore.
==> Asking for a Payment Plan
You don't have to pay all your taxes back in full if you can prove to the IRS that you simply can't afford it.
It's called the IRS Form 9465, which is basically an application to the IRS telling them you can't afford to pay all your taxes right now.
You'll still pay them in full, but you pay them off in an installment plan instead. You outline the details of the plan in your form.
For the maximum chances of getting your plan approved, work with a tax professional to write your Form 9465.
Before you file your Form 9465, try to pay off as much of your taxes with a lump sum as possible. Explore all tax cuts and tax write-offs possible and get your total tax amount as low as you can.
The IRS is willing to work with citizens, but it wants to see that you're making a real effort and not just trying to get away with paying less or paying later.
==> When Will the IRS Forgive Your Debt?
There are a few circumstances under which the IRS is willing to simply forgive your debt.
For one, if your total net worth falls significantly under your total debt, you have a good chance of getting your taxes forgiven.
In other words, if your total assets, including cash, stocks, retirement funds, home equity, etc all add up to $100,000 and you owe the IRS $150,000, then you have a good chance of having your taxes forgiven.
Also, if much of your debt comes from real estate or mortgage debt, you might qualify for debt relief under the Mortgage Debt Forgiveness Act of 2007.
Apart from these two conditions, the IRS is rather strict on getting paid. The only other real alternative is bankruptcy, which can often wipe out all your tax debt.
Of course, a bankruptcy is a real black mark on your credit report and should only be used as a last resort.
If you're having trouble paying the IRS, first talk to a qualified tax professional to explore all your options. Get your tax bill as low as possible through cuts and write-offs, then see if an installment plan is realistic.
If that isn't going to work, then explore whatever avenues you can to get the taxes forgiven. If you really have no other alternative, then and only then should you consider bankruptcy. However, no matter what you choose, the IRS is the one creditor whose debt you really can't just ignore.
Wednesday, July 9, 2014
Three Ways to Tell if You Need to Consider Debt Relief
When is it time to stop trying to pay off your debts all on your own and instead to seek professional help? There's so much stigma around seeking help with your debt that it can be hard to know when that time has come.
Here are three signs that it might be time to look for outside help with your debt situation.
==> You Can't Make Even the Minimum Payments
Once you get to the point where your debt has built up so much that you can't even pay off the minimum amount on each of your debt accounts, then it's seriously time to look into your debt relief options.
A lot of people will continue to try and pay off their bills on their own, when it's really just not realistic. This fact is often obscured by the fact that different bills come at different times, so it's easier for people to convince themselves that they'll be able to pay that next bill.
But if you add up all the monthly minimum payments all in one place and look at it objectively, you'll get a much clearer picture. If you can't realistically afford to pay the monthly payments for the next six months, then you might want to consider professional help.
==> You're Digging a Deeper Hole
If the amount you owe to your creditors is growing rather than shrinking every month, then you have a serious problem. If you can't resolve that issue within the next few months, then it's time to consider other options.
One common reason people get into more and more debt is because their credit bills are so high that in order to meet the minimum payments, they need to take out even more debt for everyday expenses.
This is a sure-fire path to credit and financial ruin. Rather than following that path to completion, seek professional help.
These are three signs that your finances are deteriorating and that it might be time to talk to someone who can help. Most debt professionals will be happy to have a conversation with you about your options free of cost.
==> You've Lost Track of How Much You Owe
If you owe mortgage debt, credit card debts, auto debts, tax debts, personal loan debts and so on and so forth to the point where you don't even know how much money you actually owe, then it's probably time to look for some help.
Without knowing where you actually stand with your debt, you have just about no chance of getting rid of your debt. The very first step of clearing your debt is knowing how much you owe.
If you can't quantify your debt, chances are it's time to seek professional help.
Here are three signs that it might be time to look for outside help with your debt situation.
==> You Can't Make Even the Minimum Payments
Once you get to the point where your debt has built up so much that you can't even pay off the minimum amount on each of your debt accounts, then it's seriously time to look into your debt relief options.
A lot of people will continue to try and pay off their bills on their own, when it's really just not realistic. This fact is often obscured by the fact that different bills come at different times, so it's easier for people to convince themselves that they'll be able to pay that next bill.
But if you add up all the monthly minimum payments all in one place and look at it objectively, you'll get a much clearer picture. If you can't realistically afford to pay the monthly payments for the next six months, then you might want to consider professional help.
==> You're Digging a Deeper Hole
If the amount you owe to your creditors is growing rather than shrinking every month, then you have a serious problem. If you can't resolve that issue within the next few months, then it's time to consider other options.
One common reason people get into more and more debt is because their credit bills are so high that in order to meet the minimum payments, they need to take out even more debt for everyday expenses.
This is a sure-fire path to credit and financial ruin. Rather than following that path to completion, seek professional help.
These are three signs that your finances are deteriorating and that it might be time to talk to someone who can help. Most debt professionals will be happy to have a conversation with you about your options free of cost.
==> You've Lost Track of How Much You Owe
If you owe mortgage debt, credit card debts, auto debts, tax debts, personal loan debts and so on and so forth to the point where you don't even know how much money you actually owe, then it's probably time to look for some help.
Without knowing where you actually stand with your debt, you have just about no chance of getting rid of your debt. The very first step of clearing your debt is knowing how much you owe.
If you can't quantify your debt, chances are it's time to seek professional help.
Colorado Debt Relief Experts You CAN Have A 720 Credit Score Even After Bankruptcy
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Tuesday, July 8, 2014
Controlling Your Holiday Spending - Good Company
For the next holiday season, make a smart shopping plan! CEFCU Credit Manager, Mark Priess, joins Good Company with tips on how to control your holiday spend...
Learn To Evaluate Debt Control Companies
The debt control field is riddled with scams and companies who are more interested in taking your money than helping you get rid of debt. How do you actually find a debt control company who can help you?
Follow the following tips and you'll have a much better chance of finding a great debt control program to work with.
==> Work with a Non-Profit Debt Control Company
Non-profit debt control companies are much less likely to be just out to make a buck. In fact, many of them were founded because they wanted to create a more helpful system than the one that currently existed.
Keep in mind that just because the company is not for profit does not mean it's free. You still have to pay for their services. They still have to make enough money to pay for their staff, their facilities and other operational costs.
Make sure you either ask the company to see their 501(c)(3) certification or call the IRS directly to verify their 501(c)(3) status.
There are several debt consolidation companies that aren't non-profits who claim to be so. Don't take non-profit claims at face value without verifying it.
==> Research Complaints and Accreditations
Check the National Foundation for Credit Counseling, the Association of Independent Consumer Credit Counseling Agencies and the American Association of Debt Management Organizations to see if the company you're considering is accredited.
If they're not accredited by any well-known organization, you should probably stay clear of them.
Also research the company on the Better Business Bureau's website. If you can't find anything on their business, try giving the BBB a call.
Look on RipoffReport to see if anyone has filed a report on the company.
Finally, Google their name for terms like "Name + review" or "Name + scam" or "Name + results" to see what kind of feedback other people have.
==> Examining Their Fee and Program Structure
Examine what kind of fee structure they're asking for. Is there an upfront payment? Is there an additional monthly fee on top of the interest percentage?
Compare at least two to three companies to get a good sense for what kind of consolidation you can qualify for.
Remember to do your own math. If a company claims they're only charging 8%, but when you do the math it comes out to 13%, that's something you should know before you sign any paperwork. There are plenty of interest calculators online that can make the math very simple.
Picking a debt control company is not a simple or easy process. Your financial future, as well as your credit report, is on the line. Compare several companies, do careful research and at the end of the day you'll come out ahead.
Follow the following tips and you'll have a much better chance of finding a great debt control program to work with.
==> Work with a Non-Profit Debt Control Company
Non-profit debt control companies are much less likely to be just out to make a buck. In fact, many of them were founded because they wanted to create a more helpful system than the one that currently existed.
Keep in mind that just because the company is not for profit does not mean it's free. You still have to pay for their services. They still have to make enough money to pay for their staff, their facilities and other operational costs.
Make sure you either ask the company to see their 501(c)(3) certification or call the IRS directly to verify their 501(c)(3) status.
There are several debt consolidation companies that aren't non-profits who claim to be so. Don't take non-profit claims at face value without verifying it.
==> Research Complaints and Accreditations
Check the National Foundation for Credit Counseling, the Association of Independent Consumer Credit Counseling Agencies and the American Association of Debt Management Organizations to see if the company you're considering is accredited.
If they're not accredited by any well-known organization, you should probably stay clear of them.
Also research the company on the Better Business Bureau's website. If you can't find anything on their business, try giving the BBB a call.
Look on RipoffReport to see if anyone has filed a report on the company.
Finally, Google their name for terms like "Name + review" or "Name + scam" or "Name + results" to see what kind of feedback other people have.
==> Examining Their Fee and Program Structure
Examine what kind of fee structure they're asking for. Is there an upfront payment? Is there an additional monthly fee on top of the interest percentage?
Compare at least two to three companies to get a good sense for what kind of consolidation you can qualify for.
Remember to do your own math. If a company claims they're only charging 8%, but when you do the math it comes out to 13%, that's something you should know before you sign any paperwork. There are plenty of interest calculators online that can make the math very simple.
Picking a debt control company is not a simple or easy process. Your financial future, as well as your credit report, is on the line. Compare several companies, do careful research and at the end of the day you'll come out ahead.
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