Many business owners feel unnecessarily alone as they try to run their businesses. They depend on their own book keeping methods, as they attempt to stay on top of all the other tasks that need completing by themselves. When it comes to debt recovery practices, it is important to understand that collection agencies are better able to recoup more of your past due monies quicker, more efficiently and professionally than you can on your own.
1. Improvement To Cash Flow
If you're trying to cut costs in your business to try and improve cash flow, then chances are you haven't even thought about hiring collection agencies. After all, if you're trying to cut costs do you really need another expense? The problem with many business owners is that they have their thinking turned the wrong way around.
By outsourcing to collection agencies, you will recoup those unpaid debts quicker and more professionally. Your cash flow will actually improve far beyond the amount of simply cutting back on a few expenses. Monies that have gone unpaid by delinquent debtors is cash that you could be using to sustain or even grow your business further. Certainly, you are already sending out statements, reminder notices and/or phone calls, all at additional costs to you, mind you. When these fail to work, and bills still go unpaid, then its time to consider collection agencies to get the money owed to you.
2. Psychology Of Your Customer
If your customers have already received several reminder letters from you about their outstanding accounts, then chances are they've already realized that you're not doing anything too serious about recovering their overdue debts. They know they owe you the money, so its not uncommon that they should hear from you.
Do you know that once an account goes past due more than 60 days, your chances of recovering that money decreases to around 50%?
It is proven that many customers behave very differently when contacted by an outside collection agency. One reason is because they become concerned about negatively impacting their credit rating. They also believe that collection agencies have the ability to take legal action against them to recover the debt. This is a great incentive which can cause customers to begin making immediate payments and avoid further delays.
3. Debt Collection Tactics
Many business owners find that customers become difficult to track down, especially as the debt ages over time. In today's very mobile society, they either move, change phone numbers, employment, or become generally unavailable to take your calls. Collection agencies are able to use methods of finding your non-paying customers and reminding them of their obligations to pay your bill. Third party debt collection agencies are often able to work with your customer to understand why they haven't paid debts.
As a business owner, you are less equipped and less likely to take the time and talk through your customers financial problems. Collection agencies will often try to understand the underlying reasons behind your customers past due payments. They'll then tailor a solution that works. This can be as simple as negotiating a payment plan so that you are receiving some of your money in smaller amounts over a regular basis.
Collection agencies also have more advanced debt recovery methods. This can include arbitration, mediation, or even further legal action. Allowing outside debt collection agencies to professionally act in your behalf to recoup your unpaid debts for you can prove to be a great solution to get your business running profitably again.
Wednesday, May 20, 2009
Credit Card Debt Secrets - Do They Really Exist?
With household consumer debt at an all-time high, it seems more than ever people are seeking credit card debt secrets to help them get out of their current state of financial hardship. Job losses and pay cuts are also on the rise, which means people simply do not have the funds available in their budgets to get out from under the strain of an enormous credit debt burden. Are there really credit card debt secrets that can relieve the financial stress, or does it really just come down to scam artists touting too-good-to-be-true results from the latest debt consolidation program or financial e-book?
Most people who are in a significant amount of credit card debt have spent a lot of time online researching various options to help their situation. From certain credit advisors who are all to quick to take a huge chunk of your money for bogus advice to costly consolidation programs that can destroy your credit, there is listing after listing in search engine results for the phrase "credit card debt secrets."
However, taking a good look at your personal debt situation and analyzing the terms of your credit cards reveal the so-called secrets to debt reduction that actually work, without costing your more money or further damaging your credit score. Check out these tips below to learn the real credit card debt secrets you need to turn-around your financial situation once and for all:
Make them Ask!
Communication with your creditors is key, especially when you find yourself in a difficult position and unable to manage the amount of your debt. The fact is creditors would much prefer to work with you and create a plan you can handle versus the likely alternatives-non-payment or even bankruptcy. Furthermore, credit companies compete against each other, which means you can threaten to cancel your card and transfer the balance to another company if they are not willing to work with you. So if you have a nasty late fee or an increased APR, call up the company and ask for them to remove the fee or lower the rate. If they do not cooperate, you can hit them where it hurts: moving to the competition!
Change Your Card-Type
This is not changing to a different company, but just asking for a different type of card within the same company. For example, some cards offer a platinum or professional brand of card that offers better benefits, including a lower APR or cash-back incentives. In most cases, if you call your company and ask to change to a different card, they will honor your request. It is in their best interest to keep you within the company rather than lose you to a competitor.
Explain Your Financial Hardship
Since we have established that credit card companies want to keep your business, it makes sense that they will want to work with you even if you have lost your job. Why would they want to work with you when you are broke? Because they would rather have a little of your money than none of it, credit card companies are often willing to ease your loan terms, eliminating fees and even lower minimum payments to get you through an especially difficult time of job loss or pay cuts. Again, this is better for them than the scenario in which you quit paying altogether or file for bankruptcy.
Keep in mind that credit card companies are businesses. Just like any retail store, they want to keep your business and prevent you from going to a competitor. For these reasons, they are often willing to bend some of their rules to keep you as a customer. The most important credit card debt secret of all is simply communication with the creditor. By respectfully explaining your financial situation and making requests for breaks, you are more likely to keep your credit in good-standing, even during a time of hardship.
Most people who are in a significant amount of credit card debt have spent a lot of time online researching various options to help their situation. From certain credit advisors who are all to quick to take a huge chunk of your money for bogus advice to costly consolidation programs that can destroy your credit, there is listing after listing in search engine results for the phrase "credit card debt secrets."
However, taking a good look at your personal debt situation and analyzing the terms of your credit cards reveal the so-called secrets to debt reduction that actually work, without costing your more money or further damaging your credit score. Check out these tips below to learn the real credit card debt secrets you need to turn-around your financial situation once and for all:
Make them Ask!
Communication with your creditors is key, especially when you find yourself in a difficult position and unable to manage the amount of your debt. The fact is creditors would much prefer to work with you and create a plan you can handle versus the likely alternatives-non-payment or even bankruptcy. Furthermore, credit companies compete against each other, which means you can threaten to cancel your card and transfer the balance to another company if they are not willing to work with you. So if you have a nasty late fee or an increased APR, call up the company and ask for them to remove the fee or lower the rate. If they do not cooperate, you can hit them where it hurts: moving to the competition!
Change Your Card-Type
This is not changing to a different company, but just asking for a different type of card within the same company. For example, some cards offer a platinum or professional brand of card that offers better benefits, including a lower APR or cash-back incentives. In most cases, if you call your company and ask to change to a different card, they will honor your request. It is in their best interest to keep you within the company rather than lose you to a competitor.
Explain Your Financial Hardship
Since we have established that credit card companies want to keep your business, it makes sense that they will want to work with you even if you have lost your job. Why would they want to work with you when you are broke? Because they would rather have a little of your money than none of it, credit card companies are often willing to ease your loan terms, eliminating fees and even lower minimum payments to get you through an especially difficult time of job loss or pay cuts. Again, this is better for them than the scenario in which you quit paying altogether or file for bankruptcy.
Keep in mind that credit card companies are businesses. Just like any retail store, they want to keep your business and prevent you from going to a competitor. For these reasons, they are often willing to bend some of their rules to keep you as a customer. The most important credit card debt secret of all is simply communication with the creditor. By respectfully explaining your financial situation and making requests for breaks, you are more likely to keep your credit in good-standing, even during a time of hardship.
Get Out of Credit Card Debt - Is it Really Possible?
Yes, with a certain amount of determination on your part, it is possible to get out of credit card debt. It has to be said from the start that without careful planning it's not an easy task and you have to stick firmly to your plans to get results.
Determination and planning play a huge role in alleviating your existing credit card debt, but we all know, in order to feel determined we have to have some kind of motivation or reason to get out of debt in the first place. A good way forward is to start by asking yourself a few questions about what's in it for you.
What positives results will you achieve if you can get out of credit card debt?
In which way will these things make a difference to your life for the better?
Is getting out of credit card debt really going to be beneficial to you?
The answers to these questions will help you to build up your level of determination. Let's face it, simply the fact that the nagging emails and phone calls from the credit card suppliers will come to an end, has to provide the motivation you need to increase your determination to get out of credit card debt and lead a less stressful life. Make a note of as many reasons as you possibly can and take a long look at the benefits you will receive by eliminating your credit card debt. This list will help you to stay strong and continue in your quest to be debt free.
Planning the way in which you get out of credit card debt is the next step. Once more, make a list of your existing debts and the APR's you are currently being charged. When all these owed amounts are added together you will be aware of exactly how much you owe in total. You should also take into account any extra fees you are paying due to settling your monthly minimum later than your statement due date. This needs to be avoided in the future to help you with your plan to get out of credit card debt. The next part of your planning should involve taking a look at your current financial position. Work out how much time you need to settle your debts in full and the monthly payments you can afford from your budget.
When all this is done, its time to check out the numerous balance transfer offers which are open to you and discover the most beneficial one for your needs. All you have to do now is ensure you meet your monthly payments in a timely manner thus avoiding any added fees for late payments.
Determination and planning play a huge role in alleviating your existing credit card debt, but we all know, in order to feel determined we have to have some kind of motivation or reason to get out of debt in the first place. A good way forward is to start by asking yourself a few questions about what's in it for you.
What positives results will you achieve if you can get out of credit card debt?
In which way will these things make a difference to your life for the better?
Is getting out of credit card debt really going to be beneficial to you?
The answers to these questions will help you to build up your level of determination. Let's face it, simply the fact that the nagging emails and phone calls from the credit card suppliers will come to an end, has to provide the motivation you need to increase your determination to get out of credit card debt and lead a less stressful life. Make a note of as many reasons as you possibly can and take a long look at the benefits you will receive by eliminating your credit card debt. This list will help you to stay strong and continue in your quest to be debt free.
Planning the way in which you get out of credit card debt is the next step. Once more, make a list of your existing debts and the APR's you are currently being charged. When all these owed amounts are added together you will be aware of exactly how much you owe in total. You should also take into account any extra fees you are paying due to settling your monthly minimum later than your statement due date. This needs to be avoided in the future to help you with your plan to get out of credit card debt. The next part of your planning should involve taking a look at your current financial position. Work out how much time you need to settle your debts in full and the monthly payments you can afford from your budget.
When all this is done, its time to check out the numerous balance transfer offers which are open to you and discover the most beneficial one for your needs. All you have to do now is ensure you meet your monthly payments in a timely manner thus avoiding any added fees for late payments.
How to Lighten Your Debt - Try Credit Card Balance Transfers
Credit card companies are losing so much nowadays because of the recession. This is why interest rates are rising, late fees, and other penalties are being piled up on consumers. So many people are looking for a solution to their seemingly impossible unpaid debt. One solution people use are credit card balance transfers. If you have a big debt on one card, you can open up another and transfer your balance to that one.
Wait a minute, does this sound logical? Why would anyone who already has bad debt in one card open up another credit card account. This is a special case however and doing this will help lessen your debt significantly.
The credit card industry is very competitive. There are more than two hundred major U.S. credit card companies in existence. This is the key to why the balance transfer was invented in the first place. It's because credit card companies would love you to sign in with them and leave their competitors, they offer credit card balance transfers for free. Once this process is complete and your debt is transferred to their bank, you will be given a longer time frame (which is usually half a year) wherein your new bank will be charging you way less than your original bank. Sometimes, the interest rates of these kinds of deals can be as low as one percent or even zero percent.
Now can you see how this process can save you lots of money? It is sort of like a reset button on your soaring interest rate. Once you do the transfer, you will be given a breather and you will be able to recuperate and concentrate on earning more money. This is a great tactic for people whose debt is starting to grow and whose interest rates are getting jacked up due to defaults. All you have to do is make sure you end your original account afterwards and you can rest easy knowing your debt isn't growing while you sleep.
There is a catch though. You need to do some good research. You have to read and fully understand the terms and fine print of the new account you are transferring your balance to. There are instances when banks hide charges within the miniscule print and technical jargon. There are also instances when a bank will have a transfer fee that is proportionate to the amount of the credit card balance transfers. Depending on your situation, this might cost you a lot more and you might not save any money at all. Just see if there is a limit or a cap on the fee if your transfer is large. And as usual, you have to check the bank's yearly charge. These banks might give you a small interest rate but will charge a lot for the annual.
Wait a minute, does this sound logical? Why would anyone who already has bad debt in one card open up another credit card account. This is a special case however and doing this will help lessen your debt significantly.
The credit card industry is very competitive. There are more than two hundred major U.S. credit card companies in existence. This is the key to why the balance transfer was invented in the first place. It's because credit card companies would love you to sign in with them and leave their competitors, they offer credit card balance transfers for free. Once this process is complete and your debt is transferred to their bank, you will be given a longer time frame (which is usually half a year) wherein your new bank will be charging you way less than your original bank. Sometimes, the interest rates of these kinds of deals can be as low as one percent or even zero percent.
Now can you see how this process can save you lots of money? It is sort of like a reset button on your soaring interest rate. Once you do the transfer, you will be given a breather and you will be able to recuperate and concentrate on earning more money. This is a great tactic for people whose debt is starting to grow and whose interest rates are getting jacked up due to defaults. All you have to do is make sure you end your original account afterwards and you can rest easy knowing your debt isn't growing while you sleep.
There is a catch though. You need to do some good research. You have to read and fully understand the terms and fine print of the new account you are transferring your balance to. There are instances when banks hide charges within the miniscule print and technical jargon. There are also instances when a bank will have a transfer fee that is proportionate to the amount of the credit card balance transfers. Depending on your situation, this might cost you a lot more and you might not save any money at all. Just see if there is a limit or a cap on the fee if your transfer is large. And as usual, you have to check the bank's yearly charge. These banks might give you a small interest rate but will charge a lot for the annual.
Debt Management Plans
If you've ever been unemployed before, then you know how difficult it is to stay on top of your bills. It's especially difficult when you have an unusually high amount of financial obligations to repay. At a time when the unemployment rate is at its highest, many debtors seek the help of debt management plans to help them consolidate and lower their payments so they can at least make an effort to keep their credit in fair standing.
It's good to know that there are specific loan options available for people who are unemployed. Although these types of debt management plans resemble that of regular, personal loans, minor variations differentiate the two. What makes these loan options favorable to people without jobs is that without financial help of this nature, they would have no other place to turn to for assistance with relieving their debt.
Although, when looking for these types of debt management plans, you should be aware because some companies that offer these types of loans do so with the idea to raise interest rates well above the norm. Instead, you should look for a company that uses their consultants to educate the borrower the best way they can about what can be expected when using loans specifically geared toward the unemployed borrower.
Mind you, the difference between a personal loan and an unemployment loan is the interest rate. While the interest rate shouldn't be outrageous, you should expect to pay a bit more. The reason for this difference is that a person without a job already has two credit strikes against them. One, is that the person is without a job, therefore really has no means to repay the loan back until they are employed once again. The second is that you already have a great deal of debt at stake and if you're not able to repay the loan, the firm will be at risk.
It's good to know that there are specific loan options available for people who are unemployed. Although these types of debt management plans resemble that of regular, personal loans, minor variations differentiate the two. What makes these loan options favorable to people without jobs is that without financial help of this nature, they would have no other place to turn to for assistance with relieving their debt.
Although, when looking for these types of debt management plans, you should be aware because some companies that offer these types of loans do so with the idea to raise interest rates well above the norm. Instead, you should look for a company that uses their consultants to educate the borrower the best way they can about what can be expected when using loans specifically geared toward the unemployed borrower.
Mind you, the difference between a personal loan and an unemployment loan is the interest rate. While the interest rate shouldn't be outrageous, you should expect to pay a bit more. The reason for this difference is that a person without a job already has two credit strikes against them. One, is that the person is without a job, therefore really has no means to repay the loan back until they are employed once again. The second is that you already have a great deal of debt at stake and if you're not able to repay the loan, the firm will be at risk.
Friday, May 15, 2009
Debt Control - How it Works
Living on borrowed time and credit is one of the quickest roads leading to bankruptcy. Prior to the market crashes and financial crisis that hit on a global scale, loans and credit cards were easily available. This lead to an over dependency on credit purchasing. Today, increased personal debt resulting from excessive use of credit cards and uncontrolled spending habits are the leading reasons behind why most individuals and families are finding themselves in a financial mess. A mess which if left unchecked will eventually spiral out of control. What is equally alarming is the fact that financial mess and mismanagement is slowly becoming the leading cause behind couples and families breaking up.
While the future may seem bleak, all is not lost. With a little prudence and control, debts and financial problems can be controlled and resolved. Agreeably debt control and management is hard work and requires above all immense patience and self restrain at every stage, it is not an impossibility. Here are some facts about debts and ways in which you can learn to take control of your finances and life as well:
Credit card debts are the leading cause behind financial problems - Plastic cash is easy and empowering, right? Well, unless you have the proverbial "hen that lays the golden eggs," you might want to differ. People the world over are reeling and cracking under the pressure that unwarranted and uncontrolled spending through credit cards brings. And if you think paying the minimum due every month is going to get you out, well calculate what you pay in interest and principal and see if you can justify shelling out thousands of dollars in excess to your borrowed or due amount.
If you already are in the trap or still like to have the option of having plastic money then here is what you can do to save yourself from going over:
· Try and avoid charging meals, travels and vacations unless you know for sure you can replace it in a month or two. A better way is to simply plan ahead and put some money aside for such expenditures.
· Avoid falling into the "minimum payment due" option trap on your card. Like I pointed out earlier, if you do that you will end up paying an inflated amount on your total due. Yanking the band aid in one go is painful, however it is quick.
· Resist the urge to swipe for every purchase you make. When you have to pay in actual hard cash, it makes it a lot simpler to talk yourself out of excessive or unnecessary expenditures. In fact you will be surprised at just how quickly you can come up with reasons "why not to buy." Something about handing over your hard earned money over the counter I think. Well, if it can help rope in spending habits why not?
· Once you are done with the payment of a card, cut it into two and cancel it. Condition yourself to live for a while without a credit card. It is not impossible. Our parents and their parents did it and they lived longer!
· Paying or clearing all your credit card dues can be exhilarating and you might be tempted to apply for a higher limit or a new card. If you can do it once, you can do it again right? See, now that is exactly the kind of thinking that got you into this mess in the first time place.
Loans, student loans, mortgages - While applying for these loans don't go with the first option that comes your way. Wait, shop around and go with the best deal. Even then, borrow an amount that you know for sure you can pay off. Once you have a loan to clear, work towards clearing it as soon as possible. The best way to go about would be to borrow one loan at a time so paying for it is easy. Borrowing against your 401 (k) or a home mortgage is best avoidable unless absolutely necessary.
Expenses Vs earnings - A good way to keep tabs on your expenses is by keeping detailed accounts of what, how and where your money goes every month. In one column write out your earning and the other your expenses. Your aim should be to have a positive balance even after you have accounted for all your bills and expenses. Keep that money aside and let it build up. Remember controlling your expenses is the first step towards a debt free life. Besides saving that little money every month will eventually yield a buffer or cushion fund.
While the future may seem bleak, all is not lost. With a little prudence and control, debts and financial problems can be controlled and resolved. Agreeably debt control and management is hard work and requires above all immense patience and self restrain at every stage, it is not an impossibility. Here are some facts about debts and ways in which you can learn to take control of your finances and life as well:
Credit card debts are the leading cause behind financial problems - Plastic cash is easy and empowering, right? Well, unless you have the proverbial "hen that lays the golden eggs," you might want to differ. People the world over are reeling and cracking under the pressure that unwarranted and uncontrolled spending through credit cards brings. And if you think paying the minimum due every month is going to get you out, well calculate what you pay in interest and principal and see if you can justify shelling out thousands of dollars in excess to your borrowed or due amount.
If you already are in the trap or still like to have the option of having plastic money then here is what you can do to save yourself from going over:
· Try and avoid charging meals, travels and vacations unless you know for sure you can replace it in a month or two. A better way is to simply plan ahead and put some money aside for such expenditures.
· Avoid falling into the "minimum payment due" option trap on your card. Like I pointed out earlier, if you do that you will end up paying an inflated amount on your total due. Yanking the band aid in one go is painful, however it is quick.
· Resist the urge to swipe for every purchase you make. When you have to pay in actual hard cash, it makes it a lot simpler to talk yourself out of excessive or unnecessary expenditures. In fact you will be surprised at just how quickly you can come up with reasons "why not to buy." Something about handing over your hard earned money over the counter I think. Well, if it can help rope in spending habits why not?
· Once you are done with the payment of a card, cut it into two and cancel it. Condition yourself to live for a while without a credit card. It is not impossible. Our parents and their parents did it and they lived longer!
· Paying or clearing all your credit card dues can be exhilarating and you might be tempted to apply for a higher limit or a new card. If you can do it once, you can do it again right? See, now that is exactly the kind of thinking that got you into this mess in the first time place.
Loans, student loans, mortgages - While applying for these loans don't go with the first option that comes your way. Wait, shop around and go with the best deal. Even then, borrow an amount that you know for sure you can pay off. Once you have a loan to clear, work towards clearing it as soon as possible. The best way to go about would be to borrow one loan at a time so paying for it is easy. Borrowing against your 401 (k) or a home mortgage is best avoidable unless absolutely necessary.
Expenses Vs earnings - A good way to keep tabs on your expenses is by keeping detailed accounts of what, how and where your money goes every month. In one column write out your earning and the other your expenses. Your aim should be to have a positive balance even after you have accounted for all your bills and expenses. Keep that money aside and let it build up. Remember controlling your expenses is the first step towards a debt free life. Besides saving that little money every month will eventually yield a buffer or cushion fund.
Best Method of Settling Credit Card Debt
When it comes to credit card debt, there are several ways to go about solving the problem. Among these are debt management and debt consolidation, both of which have their individual merits and problems. However, choosing which form of debt resolution will work for you will take time and careful consideration on your part. Don't jump into anything without first considering all of the consequences of your choice.
How can debt management help you
Of the ways to resolve credit card debt, a thorough management scheme is easily the most sensible, provided that you get started early enough in the process. Effective debt management revolves around paying on your debt early and often in order to control it and eventually begin paying it down. Creation of a budget is an essential part of debt management, and it requires a steady hand and close attention to detail in order to be done.
Debt Consolidation
Debt consolidation, on the other hand, simply requires a phone call to a consolidation company, a bank or your credit card company. One form of consolidation (an example of an unsecured loans debt consolidation) involves transferring the balance of your debt from card to card, which will theoretically lower both your interest rates as well as your minimum monthly payments. Another form is a debt consolidation remortgage using your house in a secured debt consolidation loan. Either way debt consolidation is often the choice of those whose debt has exceeded their ability to effectively pay it down and can, thus, be construed as a sort of last ditch effort at debt resolution.
Advantages and Disadvantages
The two forms of debt resolution each have much to offer the interested party, and both have their downsides as well. Debt management is all about paying in more than is coming out and, in that sense, requires you to be financially stable enough to make regular payments. Thus, proper debt management is often out of reach for those whose financial state is less than optimal. By the same token, debt consolidation is for those who have nowhere else to go, but it holds the possibility of simply making things worse through hidden fees, interest increases, and the potential to look like a credit risk if you do it too many times. Both consolidation and management have inherent risks that make them iffy in certain cases, but each has much to offer as well, if you're careful.
Need Help or Not
Essentially, what it comes down to is whether or not you need help paying down your credit card debt or not. If you don't, then debt management is your best option. It involves no outside parties or phone calls to your creditors, but instead completely relies on your ability to handle your own debts responsibly. If you are unable to do that, for whatever reason, then debt consolidation is likely to be your ticket out of credit card debt.
Whichever you wind up choosing, bear in mind that it is only a means to an end and not an end in and of itself. Clearing up your debt will still require you to shell out your hard earned money, just in different amounts. Regardless, you will be on your way out of the hole of debt you've dug yourself into.
How can debt management help you
Of the ways to resolve credit card debt, a thorough management scheme is easily the most sensible, provided that you get started early enough in the process. Effective debt management revolves around paying on your debt early and often in order to control it and eventually begin paying it down. Creation of a budget is an essential part of debt management, and it requires a steady hand and close attention to detail in order to be done.
Debt Consolidation
Debt consolidation, on the other hand, simply requires a phone call to a consolidation company, a bank or your credit card company. One form of consolidation (an example of an unsecured loans debt consolidation) involves transferring the balance of your debt from card to card, which will theoretically lower both your interest rates as well as your minimum monthly payments. Another form is a debt consolidation remortgage using your house in a secured debt consolidation loan. Either way debt consolidation is often the choice of those whose debt has exceeded their ability to effectively pay it down and can, thus, be construed as a sort of last ditch effort at debt resolution.
Advantages and Disadvantages
The two forms of debt resolution each have much to offer the interested party, and both have their downsides as well. Debt management is all about paying in more than is coming out and, in that sense, requires you to be financially stable enough to make regular payments. Thus, proper debt management is often out of reach for those whose financial state is less than optimal. By the same token, debt consolidation is for those who have nowhere else to go, but it holds the possibility of simply making things worse through hidden fees, interest increases, and the potential to look like a credit risk if you do it too many times. Both consolidation and management have inherent risks that make them iffy in certain cases, but each has much to offer as well, if you're careful.
Need Help or Not
Essentially, what it comes down to is whether or not you need help paying down your credit card debt or not. If you don't, then debt management is your best option. It involves no outside parties or phone calls to your creditors, but instead completely relies on your ability to handle your own debts responsibly. If you are unable to do that, for whatever reason, then debt consolidation is likely to be your ticket out of credit card debt.
Whichever you wind up choosing, bear in mind that it is only a means to an end and not an end in and of itself. Clearing up your debt will still require you to shell out your hard earned money, just in different amounts. Regardless, you will be on your way out of the hole of debt you've dug yourself into.
Put Your Old Objects to Good Use
Sometimes freeing up space in your home is just good for the soul. If you have been a collector or accumulator over the years, no doubt your possessions are crammed into every available nook and cranny. If you are in a situation now where extra money could be used to reduce debt, selling off some of these treasures may be a good way to find some cash, and have some fun doing it. It's an excellent personal debt management strategy and could help you to reduce costs within the home.
First lesson when looking over your space: learn to view objects in it as containers. Containers contain things. Each drawer, room, closet or cranny is in effect a container. There are methods to use when analyzing where to start, one of the most fun is to simply get a big box for each room in your home and mark it "Items to Sell Off". Then, just take one container (preferably a small one to start) in each room and go through it. Make your object to get at least one item for the sale box. The whole process doesn't have to take more than twenty minutes, and at the end of a few weeks, well, your box should be fairly full.
If you'd like to add a second layer to the process, it isn't all that difficult to carry around a rubbish bag too, and put rubbish in it from the container. That sort of de-cluttering really is its own separate process but sometimes doing two things at once isn't impossible. In any event, once the bag is full, empty it into the bin immediately. The rule with rubbish bags is, once they are full, out they go.
It's been several weeks and you've got your room boxes full of interesting items. Now it's time to invite friends over to help you price, and have a bit of wine and cheese in the process. Use standard price tags, as if you
were opening your own store, and mark items about one-tenth to one-fifth market value if they are in good to excellent condition. People appreciate getting gently used one owner items, so make them look their best. Keeping a spreadsheet you'll have a good idea what the sale will realize if you add up all your entries. Sometimes you'd be amazed at what you can do with items you no longer use or need.
Following the regulations for garage sales or home sales in your district, put ads for your sale up, and have refreshments handy for your customers. This can turn into a great repeat home business venture, and chances are you barely scratched the surface in your first venture. So, put your old objects to good use and apply the money you earn toward your debt. It's a great and easy way to help yourself manage debt and achieve a reduction.
After researching into the profound effects of debt across the UK it was clear to the author (David Saltonstall) that some clear headed thinking was required, looking around his home he soon discovered a wealth of treasure which he could sell on eBay! Eureka -- a debt management plan (of sorts) was born!
First lesson when looking over your space: learn to view objects in it as containers. Containers contain things. Each drawer, room, closet or cranny is in effect a container. There are methods to use when analyzing where to start, one of the most fun is to simply get a big box for each room in your home and mark it "Items to Sell Off". Then, just take one container (preferably a small one to start) in each room and go through it. Make your object to get at least one item for the sale box. The whole process doesn't have to take more than twenty minutes, and at the end of a few weeks, well, your box should be fairly full.
If you'd like to add a second layer to the process, it isn't all that difficult to carry around a rubbish bag too, and put rubbish in it from the container. That sort of de-cluttering really is its own separate process but sometimes doing two things at once isn't impossible. In any event, once the bag is full, empty it into the bin immediately. The rule with rubbish bags is, once they are full, out they go.
It's been several weeks and you've got your room boxes full of interesting items. Now it's time to invite friends over to help you price, and have a bit of wine and cheese in the process. Use standard price tags, as if you
were opening your own store, and mark items about one-tenth to one-fifth market value if they are in good to excellent condition. People appreciate getting gently used one owner items, so make them look their best. Keeping a spreadsheet you'll have a good idea what the sale will realize if you add up all your entries. Sometimes you'd be amazed at what you can do with items you no longer use or need.
Following the regulations for garage sales or home sales in your district, put ads for your sale up, and have refreshments handy for your customers. This can turn into a great repeat home business venture, and chances are you barely scratched the surface in your first venture. So, put your old objects to good use and apply the money you earn toward your debt. It's a great and easy way to help yourself manage debt and achieve a reduction.
After researching into the profound effects of debt across the UK it was clear to the author (David Saltonstall) that some clear headed thinking was required, looking around his home he soon discovered a wealth of treasure which he could sell on eBay! Eureka -- a debt management plan (of sorts) was born!
Paying Off Debt One Day at a Time
Every day there is a struggle occurring in our society, a struggle between trying to have a life, and trying to pay all of the bills. Some people are making it but many are not.
When did this occur? It wasn't that long ago that our society lived on cash, not credit. Then a simple plastic card came about and mass debt started. People no longer had to wait to buy the things they wanted. We became an instant gratification society, and with more and more credit available to us it became even easier.
There is a real problem in our society, we are drowning in debt, and it seems to be getting worse. With every big store offering a credit card it has become even easier to go further into debt.
It is time to stop the madness. There are some easy ways to get out of the debt that has occurred in your life.
First, stop using your credit cards. Fairly simple to say, but it seems really hard for people to do. You must control the urge of spending. If you want to purchase something train yourself to pay cash only.
Second, look at all of your credit cards, and put them in order of highest interest rate to lowest. This is the order that you should pay them off. Get rid of those big interest cards first.
Third, set up a payment schedule, where you add an extra ten or twenty dollars onto the first credit card on your list, and only make minimum payments on the others. You will need to make a budget and stick to it.
Fourth, as you pay off a credit card, add that amount to the next card on your list. For example, if your first card had a minimum payment of thirty dollars, plus the extra ten you were paying, you would now pay an extra forty dollars on the next credit card on your list.
Fifth, you have to stop spending on things that you don't need. This by far is the hardest thing to do, as we have created the instant gratification mentality.
Lastly, cut up the cards you don't need. Keep one, possibly two of the larger company cards (Visa, Master Card, etc.), and get rid of the rest. You don't need them.
If you stick to this payment schedule, you will be amazed at how quickly you can pay off debt. It will get tempting to start to buy again as you pay done your debt. But, you have to stop this if you wish to become free of the stress of the bills.
When did this occur? It wasn't that long ago that our society lived on cash, not credit. Then a simple plastic card came about and mass debt started. People no longer had to wait to buy the things they wanted. We became an instant gratification society, and with more and more credit available to us it became even easier.
There is a real problem in our society, we are drowning in debt, and it seems to be getting worse. With every big store offering a credit card it has become even easier to go further into debt.
It is time to stop the madness. There are some easy ways to get out of the debt that has occurred in your life.
First, stop using your credit cards. Fairly simple to say, but it seems really hard for people to do. You must control the urge of spending. If you want to purchase something train yourself to pay cash only.
Second, look at all of your credit cards, and put them in order of highest interest rate to lowest. This is the order that you should pay them off. Get rid of those big interest cards first.
Third, set up a payment schedule, where you add an extra ten or twenty dollars onto the first credit card on your list, and only make minimum payments on the others. You will need to make a budget and stick to it.
Fourth, as you pay off a credit card, add that amount to the next card on your list. For example, if your first card had a minimum payment of thirty dollars, plus the extra ten you were paying, you would now pay an extra forty dollars on the next credit card on your list.
Fifth, you have to stop spending on things that you don't need. This by far is the hardest thing to do, as we have created the instant gratification mentality.
Lastly, cut up the cards you don't need. Keep one, possibly two of the larger company cards (Visa, Master Card, etc.), and get rid of the rest. You don't need them.
If you stick to this payment schedule, you will be amazed at how quickly you can pay off debt. It will get tempting to start to buy again as you pay done your debt. But, you have to stop this if you wish to become free of the stress of the bills.
Get Rid of Credit Card Debt
You can qualify for a free government grant so that you can eliminate your credit card debt today. You need to know that there are many grants that are available to you so make sure you choose the one that will help you get out of debt. It is known that a lot of this free money that is available goes unused each and every year because people than can qualify for it do not know it exist. You do not have to continue to be stressed out over your debt and bills because you can do something about it now. Get out of debt and have a better financial outlook when you get free grant money.
You should also keep in mind that staying in debt and not getting control over your finances is only going to cause you problems. It is better for you to take action so that tomorrow you can wake up without worrying which bills to pay today. It is easy to get into financial trouble and the credit card companies do not make it easy when they keep increasing interest rates for no reason at all. Use a grant that is offered from the government to get your financed under control and in most cases you can get them totally paid off.
Remember that it is not hard to find free grant money but you need to make sure that when you are searching you get the right one for you. There are many grants that are available and finding a grant that will help you to eliminate your debt is your best option. You will be glad that you have taken control over your finances and eliminated your debt for good.
You should also keep in mind that staying in debt and not getting control over your finances is only going to cause you problems. It is better for you to take action so that tomorrow you can wake up without worrying which bills to pay today. It is easy to get into financial trouble and the credit card companies do not make it easy when they keep increasing interest rates for no reason at all. Use a grant that is offered from the government to get your financed under control and in most cases you can get them totally paid off.
Remember that it is not hard to find free grant money but you need to make sure that when you are searching you get the right one for you. There are many grants that are available and finding a grant that will help you to eliminate your debt is your best option. You will be glad that you have taken control over your finances and eliminated your debt for good.
Subscribe to:
Posts (Atom)