If you are deep in debt and you cannot stand the collection calls from your lenders or creditors any longer, maybe you have already considered filing for bankruptcy. Before you go ahead and discuss the issue with your lawyer, stop for a while and consider some of the hidden traps paving the way to bankruptcy.
Under the legislation of most of the world’s developed economies, a debtor may file for a statement of bankruptcy and, if the statement is granted, he or she may get the chance to reorganize or eliminate some of the debts. The key word here is ‘some’. It’s a common mistake to think that as soon as you file for bankruptcy, you will automatically get rid of all of your debts. For example, a bankruptcy statement does not erase your back taxes, student loans and some of other bad credit loans that you have.
Which is even worse, at some point after you have filed for bankruptcy, your lenders may still file a claim against you and repossess your movable or immovable property. It is true that bankruptcy relieves the debtor from the liability to pay off his or her debts. However, the creditors or lenders may still have the right to foreclose or repossess the debtor’s property unless he or she manages to pay off the entire balance because there is a lien attached.
There are several ways to avoid bankruptcy, depending on one’s financial circumstances. A debt settlement is a good option for all debtors who find it difficult to cover the monthly installments on their debts. Your bank may also offer you a debt consolidation or a bill consolidation program that will slash the interests on your debts.
Alternatively, you may contact a credit counseling agency to help you avoid bankruptcy. Your credit counselor will offer you a plan under which you will be able to cut down interest rates and wave off or minimize interest charges that are incurred because of late payments on your account.
If you opt for payday loan consolidation, you will be able to consolidate several payday loans, replacing them with an reasonable monthly payments.
If you do not want to pay fees to professional debt advisors, you can try to work out your own plan to avoid bankruptcy. It will be a good start if you contact your lenders and try to negotiate lower monthly installments on your debts. Naturally, lenders want to see their loans repaid and may be inclined to negotiate better terms on your payments. This strategy may ward off your financial worries for the time being but in the long run, your debts will prove costlier, as you will be paying more money in interest rates. Instead, you may try to cut down some of your daily expenses and pay more money to your lender or creditor each month. This strategy will help you pay off your debt faster and save you considerable amount of money in interest rate.
Friday, January 29, 2010
Wednesday, January 27, 2010
Top 10 tips on how to save money
“A penny saved is a penny earned,” says Benjamin Franklin. Indeed, with the global economy just having started to emerge from the recession, money saving strategies have gained considerable importance and specific gravity. The ten best money saving tips below will help you manage your household budget more efficiently and with a greater ease.
1. Watch less television. When you are watching TV, you are constantly bombarded with commercials that prod you to spend money. Turn off the TV and you will save a lot!
2. The third money saving advice is called “the thirty day rule”. Quite often, we buy expensive things that we do not really need. Next time you decide to buy something and you are not sure if you really need it, just wait thirty days before making the purchase. Quite often, the buying urge abates with time and thus, you can save a lot of money by abiding to the thirty day rule.
3. Let’s start with the place where you keep your money – your bank. Does your bank really respect you as a customer? Believe it or not, you can save a fortune by answering this simple question. You should choose a bank that does not rip your pocket by imposing high maintenance fees. At the same time, the bank should provide a decent interest on your checking and savings accounts.
4. Never go shopping without first compiling a shopping list. When you are in the supermarket, stick to your shopping list just like the mariner sticks to his compass, or else - you may leave the shop with a whole lot of unnecessary things and an empty wallet.
5. Fast food is not a bargain. Not only is the fast food unhealthy, but it is often quite expensive. Try this: instead of buying a sandwich from the fast food stand near your office, make a healthier sandwich at home and eat it during your lunch break.
6. Plan your holiday carefully and well in advance. You can save a fortune on cheap all-inclusive deals and visit the coolest places for the hottest prices.
7. You can save a lot of money on tax reductions, if, for example, you donate your old clothes and shoes to charities.
8. Always turn off the light when you leave the room. Invest in energy saving solutions for your home. You may buy a tankless water heater, energy saving bulbs, and other appliances that save on energy.
9. Use your credit card only in case of emergency. Buying a pair of Bally’s shoes and then paying them off for the rest of the year is not an emergency. But if you need to pump some gas in your car’s tank and you don’t have enough cash, you can pay by credit card (especially if the next gas station is two hundred miles away). You know what I mean.
10. Look for bargains and deals. However, you should do it only when you really need something. Don’t go shopping for the sake of it. Stick to the money saving tips and you’ll manage your monthly costs more effectively.
Sources: Canadian Banks and Canadian Payday Loans
1. Watch less television. When you are watching TV, you are constantly bombarded with commercials that prod you to spend money. Turn off the TV and you will save a lot!
2. The third money saving advice is called “the thirty day rule”. Quite often, we buy expensive things that we do not really need. Next time you decide to buy something and you are not sure if you really need it, just wait thirty days before making the purchase. Quite often, the buying urge abates with time and thus, you can save a lot of money by abiding to the thirty day rule.
3. Let’s start with the place where you keep your money – your bank. Does your bank really respect you as a customer? Believe it or not, you can save a fortune by answering this simple question. You should choose a bank that does not rip your pocket by imposing high maintenance fees. At the same time, the bank should provide a decent interest on your checking and savings accounts.
4. Never go shopping without first compiling a shopping list. When you are in the supermarket, stick to your shopping list just like the mariner sticks to his compass, or else - you may leave the shop with a whole lot of unnecessary things and an empty wallet.
5. Fast food is not a bargain. Not only is the fast food unhealthy, but it is often quite expensive. Try this: instead of buying a sandwich from the fast food stand near your office, make a healthier sandwich at home and eat it during your lunch break.
6. Plan your holiday carefully and well in advance. You can save a fortune on cheap all-inclusive deals and visit the coolest places for the hottest prices.
7. You can save a lot of money on tax reductions, if, for example, you donate your old clothes and shoes to charities.
8. Always turn off the light when you leave the room. Invest in energy saving solutions for your home. You may buy a tankless water heater, energy saving bulbs, and other appliances that save on energy.
9. Use your credit card only in case of emergency. Buying a pair of Bally’s shoes and then paying them off for the rest of the year is not an emergency. But if you need to pump some gas in your car’s tank and you don’t have enough cash, you can pay by credit card (especially if the next gas station is two hundred miles away). You know what I mean.
10. Look for bargains and deals. However, you should do it only when you really need something. Don’t go shopping for the sake of it. Stick to the money saving tips and you’ll manage your monthly costs more effectively.
Sources: Canadian Banks and Canadian Payday Loans
Tuesday, January 12, 2010
Get Rid of Credit Card Debt Once and for All
People are getting tired of the downturn in the economy the credit card debt, but it is not improving. If you have credit card debt and can’t see the light at the end of the tunnel then these tips should help you get back on the right track. You just have to be honest with yourself and the people within your family.
1.Asses your credit card debt honestly. It’s not good thinking “it’s ok, I’ll pay this off in a few more months...” Get down to raw figures and actually look at how much you owe in total. It might blow your head off, but at least you’ll know. Now you can manage it realistically. The next step is to find out what your biggest financial drains are a month. If there is anything you can cut out, great, do it. If it means drinking “Rola Cola” for a year instead of Coca Cola it isn’t the end of the world.
2.Next you must do a budget that doesn’t rely solely on more credit. Paying off credit cards and loans with more credit cards and loansmeans you’ll die in debt. You have to determine where the problem is and change it, instead of rolling everything over every month. You don’t lose weight by continuing to eat cake. You don’t get out of debt by continuing to spend the same amount of money.
3.Start saving. I know saving seems crazy when you need to pay off debt, but money that is saved is your money and can get you out of problems in the future. Put a small percentage of your wage each week in to a savings account.
4.Pay off the most expensive credit cards first. You can’t take baby steps here. What’s the use paying off the easy cards? You’ll still have a black cloud over you.
5.Don’t spend more than you earn. Stay in a few weekends a month. Don’t buy anymore clothes for this year. If you need brand name clothing, fair enough, but why brand name food? You’re eating it not wearing it. Turn off all the lights when you leave a room, unplug electrical equipment on standby, use public transport. When you think about it, there is a lot you can do to cut your monthly spending and it doesn’t always have to be that way. When you are out of debt you can up your lifestyle a little.
6.Seek professional help or credit counseling, they can guide you on the best way to take action and put everything in a clear and easy to understand manner.
7.To fight the temptation, once you have paid off any credit cards, cancel them and dance on their grave. The ideal is to end up with one credit card that you only use when you have to and use your debit card for everything else. The key to getting out of credit card debt is to be honest with yourself and make a plan. You need to understand your situation and have a plan of action before it can change.
8.If it all seems too much to manage seek debt consolidation services where your debts are taken on by an organization and you are left with one big loan or card. It doesn’t necessarily make it cheaper, but it is a damn sight easier to manage.
Disclaimer: The information contained in this website is provided as an information service only and does not constitute financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice which takes account of your particular objectives, financial situation or needs, you should consider seeking independent financial advice from a Financial Services Licensee.
1.Asses your credit card debt honestly. It’s not good thinking “it’s ok, I’ll pay this off in a few more months...” Get down to raw figures and actually look at how much you owe in total. It might blow your head off, but at least you’ll know. Now you can manage it realistically. The next step is to find out what your biggest financial drains are a month. If there is anything you can cut out, great, do it. If it means drinking “Rola Cola” for a year instead of Coca Cola it isn’t the end of the world.
2.Next you must do a budget that doesn’t rely solely on more credit. Paying off credit cards and loans with more credit cards and loansmeans you’ll die in debt. You have to determine where the problem is and change it, instead of rolling everything over every month. You don’t lose weight by continuing to eat cake. You don’t get out of debt by continuing to spend the same amount of money.
3.Start saving. I know saving seems crazy when you need to pay off debt, but money that is saved is your money and can get you out of problems in the future. Put a small percentage of your wage each week in to a savings account.
4.Pay off the most expensive credit cards first. You can’t take baby steps here. What’s the use paying off the easy cards? You’ll still have a black cloud over you.
5.Don’t spend more than you earn. Stay in a few weekends a month. Don’t buy anymore clothes for this year. If you need brand name clothing, fair enough, but why brand name food? You’re eating it not wearing it. Turn off all the lights when you leave a room, unplug electrical equipment on standby, use public transport. When you think about it, there is a lot you can do to cut your monthly spending and it doesn’t always have to be that way. When you are out of debt you can up your lifestyle a little.
6.Seek professional help or credit counseling, they can guide you on the best way to take action and put everything in a clear and easy to understand manner.
7.To fight the temptation, once you have paid off any credit cards, cancel them and dance on their grave. The ideal is to end up with one credit card that you only use when you have to and use your debit card for everything else. The key to getting out of credit card debt is to be honest with yourself and make a plan. You need to understand your situation and have a plan of action before it can change.
8.If it all seems too much to manage seek debt consolidation services where your debts are taken on by an organization and you are left with one big loan or card. It doesn’t necessarily make it cheaper, but it is a damn sight easier to manage.
Disclaimer: The information contained in this website is provided as an information service only and does not constitute financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice which takes account of your particular objectives, financial situation or needs, you should consider seeking independent financial advice from a Financial Services Licensee.
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