:idea: Debt Loan
Let's look at tried and true ways to manage your debt that won't leave you scrambling to meet unrealistic goals. Perhaps the most important component of debt consolidation is canvassing your cash flow system to determine where you are losing money, how much your money you are losing per month, at what rates you are losing that money, and how your spending habits have evolved over the past six months to two years.
Debt consolidation experts can help you with the accounting. But doing a budget is essential to any debt consolidation mandate. In other words, until you name the problems you have, you won't be able to identify discrete solutions that can fit neatly with your financial goals. Of course, debt consolidation is complicated because most individuals lead somewhat unpredictable lives.
Even married couples on fixed incomes with few debts and numerous assets can get into financial troubles, since the tumultuous economy continues to evolve around them. Interest rates go up, impacting mortgage payments, which in turn impact monthly budgets, for instance.
The way to deal with this constant economic change is to create a budget that's flexible enough to allow you a degree of debt consolidation and yet provide enough “free cash†in your accounts to let you reach your goals comfortably.
In other words, you can't budget out every dollar you spend (under most circumstances), since the time cost benefit of doing so generally doesn't make sense. For instance, if you spend 30 hours every month figuring out what you spend down to the penny, you are likely wasting at least a dozen hours that you could otherwise be using to work (and thus earn more money), invest (and thus make your money work harder), or simply have fun.
Another debt consolidation idea is to draft a savings plan that will slowly accumulate an emergency fund for you and your family. Budget experts recommend that this fund should store up at least six month's worth of living expenses, but don't try to sock away all that money at once.
Allocate a certain amount of cash in your budget per month for your emergency plan, and protect that money from your general spending accounts. And finally, look into a debt consolidation loan to help you reduce reliance on expensive creditor loans and simplify the planning process.
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WOW!! Good advice! I have been looking around for ood, legot consolidation/settlement companies. Some sound great..until you read the 'fine print'. Any ideas??
If settlement is the way you want to go, you can DIY. Lots of resources on the debt forums.
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I've been looking around the forum. Very good information, for, me, to 'start out with'.
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Settlements ARE good, for some. Just make sure that the company does what they say they are going to do. I've 'seen' some nightmares, on this forum. Not saying the Settlement Companies, on this forum, are bad. Just reading from the experience of others. Also....wanted to add, in MY 'sitaution' I'm settling ALOT of my debt myself......good that CA's are willing to work with me!!
I rather consolidate than settle. It puts less impact on my credit report & score...
There is a difference when it comes to debt settlement. Settlement is opted for only when the individual has no other options left and has to go for bankruptcy. Settlement is the last weapon to keep bankruptcy away.
Consolidation can be done but one needs to be in a position to make those payments. There is no waiving off of amounts I guess(correct me if I am wrong). However in case of settlement...it is tried to be paid off at 40% to 50% of the actual debt. The fees attaches are also forgiven. Lenders agree to this because they are getting some amount back atleast. Otherwise if the debtor files bankruptcy he might not get back anything. So once you explain your condition to the creditor and relate that you have no option but settlement they usually help you more than willingly.
Thus there is the necessity of having a negotiating power to DIY. Engaging a settlement company is ok but the amount that will be devoted behind them can also be utilised in paying the debt within a shorter span.
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Sometimes I think I'm in, " the worst financial shape". But...when I read some of these posts, I feel pretty 'good' about my situation. By that I mean...I've seen people post that they are have no where to live, their property was re-possed, etc. If these people din't want to help themselves and get advice, they wouldn't be here. God Bless them!!
There are people in worse situation. They cant even complain. We are really grateful to this forum for offering such an opportunity to share because we care :)
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I agree. Giving advice, to others, and Vice-versa, ( being personal experience), is probably the best help we can get/give.
It is always very important to understand that money does not come for free. It is highly necessary to utilize in an economic way. Most of us are submerged in debt. In order to lead a debt free life first we have to get rid of the problem of over spending. In case due to unavoidable circumstances if we fall into debt then its very important to go through the right program to get out of it.
Consolidation or management or settlement it depends on the financial condition that you are facing.
I would say that as long as we and our relatives are healthy we're good. Everything else can be taken care of one way or another. I often complain about this and that but sometimes when I see people that are visually impared ot somehow disabled, or addicted to drugs I understand how lucky I actually am and that my problems are nothing compared to what other people are going trough.
I agree, debt is our commonality here, isn't it something that a bad thing can bring so many people together, I look forward to being here and sharing my miserable experience. I am slowly but surely working my way out of some really bad financial decisions. It is great to have a place to come to for advice and just to vent sometimes, not to mention all the support that is offered on this forum.
I like that commonality word, good or bad, we share this common bond. I like the advice given by the original poster, many different options there, so if one don't fit one of the other ones might, good post, are you going to register and continue to join us here on the forum?
We all do have debt in common, LOL, debt is the reason that I went looking for help and found it on these forums.
I hear you there...debt seems to be never ending. the only thing we can do is try to manage it the best way we can. just paid off our cards and now more is on there with online shopping for Christmas etc. I won't use my debit because i'm scared. at least with a credit card they're easier to work with should something happen.
Could you just explain why you are scared with a debit card. What do you think can be a threat possessed by a debit card?
Maybe because you have better backing with a credit card if you information is stolen, alot of card companies have that policy, where I don't think alot of debit cards do, you would have to file disputes through your bank and go through more hassle trying to get your money back. That is just my guess.
It is alot easier to dispute with a credit card vs a debit card. You can just call the credit card company while the bank is alot of paperwork that you have to file personally at the bank, pain in the rearend.
yea I had to go through that a couple of months ago. I was a horrible experience.
So debit card is a pain. I want to know how many credit cards do you normally keep?
I have one debit card, one credit card and one paypal card. I use the paypal for all online purchases because I know it is very secure. I only use the credit card for travel expenses, I use the debit card for most of my shopping like groceries and etc. With all make sure that you note what you have spent to make sure the correct amounts are coming out. I use a check book register for each one, it is just easier that way.
wE HAVE THREE CREDIT CARDS lOWES, DISCOVER AND A STORE ONE. WE ARE PLANNING ON PAYING TWO OFF AND CLOSING. WE ARE KEEPING THE DISCOVER THOUGH . I HEAR OF PAYPAL ALL THE TIME. I ORDER FROM THE NET BUT HAVE NO CLUE HOW PAYPAL WORKS.
Paypal is a secure pay system that will allow you to pay for items and then pull the money from your bank account. I use it all the time to purchase through ebay and other online purchases. I have never had a problem with it. If you have other questions, just yell.
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I have a Paypal debit card, too. It IS a very good card. You can 'attach' your bank account with it, and it's 'secure' when you use it. No fees, etc. like a credit card.
Paypal is safe..
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Paypal seems like the it's one of the ONLY cards that are safe. Ya know? I just had to replace my bank debit card, because someone got my Debit Card number and made an unauthorized purchase.
Wow sd chargers what did you do. I hear that your own bank is less likely to back you up as a credit card place. That is sad if it is true. Goodnatured..I was always told that you needed to open an acount and then use that money. My brother started a paypal account recently and didn't explain very well. I myself have always been afraid of ebay. I heard once that it is the worst site for contracting a virus. Is that true?
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FIREYONE...what do you mean " what did I do?" I have a Paypal debit card...1) I think it's safer than having 'regular' credit cards and 2) the 'bad credit, credit cards' have WAY too high of an % rate. I DID have a 'bad credit' card at one time. Just got to the point the % was killing me.
I think for online purchases, paypal card is the most secured and convenient one. Paypal debit card has in fact no annual fees and interest rates that are associated with credit cards. For other expenses like travel and grocery one can always use a credit card.
I use paypal all the time, paypal will alert you if there is something suspicious going on and you are insured for your money through them.
They sound like a really awesome place to use.
Yes goodnatured, I too agree with the fact that paypal is the safest way to make online payments because we need not disclose our credit card numbers with the merchants while shopping online. Moreover we can also keep track of all our payments made through paypal.
I am new to all this paypal stuff but I can definately see the good in it.
I have been using paypal for years, I have to say that it is a very secure site, I have never had any problems, I have had unauthorized billing on ebay that paypal has caught and reversed it before it hit my bank account. They would send me an email to alert me to this. I think it is one of the most secure sites as far as your money goes.
I really hear a lot of good things about paypal. Even my computer illiterate bro has an account there. I just do not do much online purchasing.
I use it a lot, especially when I buy on ebay.
I don't go to ebay. Idf I was really looking for soemthing I couldn't find I might. That is all I would need is to be able to shop at home.
Hiiii
Hiiii this is Mauli Dave visiting on this site for the first time and found its really interesting.
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Mauli