Debt Clear Direct

by Jorge Lascar

Debt Consolidation Solution – Solving Your Debt Problems For Good

Are you behind on your credit card payment, mortgage, car insurance, or other revolving credit? Have your creditors been calling or writing every other week? Do you stressed out every time the phone rings? Maybe it’s time to find some help with your financial problems. Take the stress out of your life and consider debt consolidation solutions.

What is a debt consolidation solution? This is a plan and educational process to reduce your debt and allow you to go forward with your life. These solutions help you find out what areas of your financial sphere are considered problem areas. A plan is devised according to your unique conditions that will help you follow a path to financial freedom. They also help educate you so that you may follow through with the plan on a step to step basis. This helps you to make the payments on time every time so that you avoid any alternative problems or other possible stressful situations that can occur.

What kind of situation make it necessary to seek solutions for debt counseling or consolidation? You probably need help If you owe thousands of dollars in credit card debt and can only make the minimum payment.

Maybe you can’t even make the minimum payment or you can send a payment every other month. Debt relief or debt consolidation solutions may be of help if you are behind on your mortgage, electric bills, or car payment and insurances. Any one of these situations or more probably means that you need help and advice in paying your bills.

Getting started is always the first step. Choose a reputable company that you feel meets your needs. Let them help you choose the right plan. Follow through with the plan every month.

Pay off your debt and feel stress free. Debt consolidation and debt relief counseling can help you get on with your life.

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by Mad African!: (Broken Sword)

Five Ways To Stay Debt-Free

So if the bills/debt are building up, you’re living paycheck to paycheck, and there is no relief in sight, follow this advice to dig yourself out – one debt at a time.

1. Pay more than the minimum – Many loans are set up so that the minimum payment goes mostly toward the interest. If you can afford it, triple up on those minimum payments. Ex. “if you have $ 10,000 in credit card debt, u r probably paying 15% in interest, and make minimum payments, it will take 25 years to pay off that debt”. You don’t want to be a slave to credit card companies. Good Book: Zero Debt for College Grads author Lynnette Khalfani.

2. Create a credit card payment strategy – One place to start, after making a budget, is to pay off the card with the lowest balance first. If you make a few sacrifies, like skipping happy hour or making one less $ 200 purchase (think gadgets and shoes) per month, those savings can be applied toward the debt.

The same strategy works with lines of credit and personal loans, too. To fight temptation, opt-out of receiving mail-order credit card solicitations by calling 888-5-OPTOUT.

3. Stop spending – NOW!! – As you pay off your credit cards, don’t cancel them. Instead, take all of the credit cards out of your wallet and put them in a jar half full with water. Put jar in the freezer. The idea is to keep the cards out of your pockets and limit impulse shopping. Also, by putting it in the freezer it is not in your pocket, but you have it in a safe place in case you need it in an emergency. While your cards are put away, negotiate with creditors to get better rates. You have to be in good standing to get the most out of this deal, which means continuing to pay your bills on time.

4.

Shop for better rates – When you get a great opportunity for a lower interest rate, go for it. Instead of the 14% or 22% interest rate you’re currently paying, you can transfer to a card that offers you a 6% or 9% rate to save hundreds or thousands over the course of the year. Shop for better rates and take advantage of offers provided by bank, credit union, or other lending institutions that offer low rates for transfer. But don’t bounce around to much because doing so results in too many credit inquiries, which can lower your credit score. Also consider debt consolidation, which is taking several debts and converting them into one monthly payment.

5. Manage your own finances – Whether sharing finances or flying solo, you should always know three things about your debt: (I) How much you have (II) How much it’s costing you, and (III) How to deal with it. If you don’t, it will always cost more than you think and take even longer to pay off. The debt may not go away overnight, but with discipline and by following these few steps, it will shrink a lot sooner.

www.therealcashflowceo.com – Anthony Manganiello, author of the Debt-FREE Millionaire, interviewed by Pat Robertson. He explains that it is possible to become the millionaire you have to potential to become.
Video Rating: 5 / 5

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by NASA Goddard Space Flight Center

The Benefits of Credit Counseling Services

Most Americans are feeling the heat from the poor economy. Many people have fallen behind on their bills, making them feel like they are drowning in debt. Those who want to get their heads above water consider using credit counseling services. Debt management programs can help lower consumers’ monthly payments as well as reduce their interest rates and late fees. Not only does this solution help people get out of debt, but counselors give consumers the resources and tools they need to prevent the debt cycle from happening again. Here is more information about the benefits of these services.

Reduce Monthly Payments

Many Americans only pay the minimums on their credit cards each month. Because their finances are stretched so thin, this is all they can afford.

There are a few problems with this situation, which credit counseling services can help.

1. People are so desperate to make these payments to avoid late fees and a negative impact on their credit score, so they neglect other expenses. A debt management program can reduce monthly payments so that consumers have money to address other areas of their lives.

2. It is difficult for people who only pay their minimums to get out of debt. In many cases, the minimum payment covers the interest that is accrued but barely touches the principal balance. Therefore, it takes longer and costs more money to get to a zero balance and the debt cycle continues. Credit counseling services help consumers create a plan to break this cycle.

Reduce Interest Rates & Late Fees

Every type of loan has an interest rate attached to it from mortgages to credit cards.

The terms of the contract and the rate of interest vary depending on the loan, but one thing is constant: this is how lenders make their money. As far as credit card companies are concerned, it is financially beneficial to them for their customers to be in debt. Credit counseling services can help reduce the interest rates on cards so that consumers can get out of debt once and for all. Late fees are another roadblock that hold people back from fixing their financial situation, and credit counselors work to have these barriers eliminated as well. Once interest rates are lowered and late fees are removed, credit card holders have the liberty to pay down their principal balance and get on the road to financial freedom.

Find More Credit Counseling Articles

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Credit cards are no more a luxury, they are almost a necessity. So, you would imagine a lot of people going for credit cards. In fact, a lot of people posses more than one credit cards. So, the credit card industry is growing by leaps and bounds.

However, the credit card industry and credit card holders are posed with a big problem called Credit Card Debt. In order to understand what credit card debt actually means, we need to understand the workflow associated with the use of credit cards as such.

Credit cards, as the name suggests, are cards on which you can get credit i.e. make borrowings (your credit card debt). Your credit card is a representative of the credit account that you hold with the credit card supplier. Whatever payments you make using your credit card are actually your borrowings that contribute towards your credit card debt.

Your total credit card debt is the total amount you owe credit card supplier. You must settle your credit card debt on a monthly basis. So, you receive a monthly statement or your credit card bill which shows your total credit card debt. You must pay off your credit card debt by the payment due date failing which you will incur late fee and interest charges.

However, you have the option of making a partial (minimum) payment too, in which case you dont incur late fee but just the interest charges on your credit card debt. If you dont pay off your credit card debt in full, the interest charges too get added to it.

So your credit card debt keeps on increasing, more so because the interest rates on credit card debt are generally higher than the interest rates on other kind of loans/borrowings. Further, the interest charges add on to your credit card debt each month to form the new balance or the new credit card debt amount.

If you continue making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt. So you end up paying interest on the last months interest too. Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount which you find almost impossible to pay.

Moreover, if you dont still control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.

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When the economy or personal issues and problems result in a high credit card debt, we often find our debt spread over three or four or more cards. So you may have a Visa, several MasterCards, a Discover card and a Capital One card and maybe many more each carrying several thousands of dollars of debt. The result is an ugly parade of bills from each company each needing a minimum payment that pays the interest and takes just a small amount off of your debt.

If it seems that the debt mountain never seems to go down, thats not an illusion. The situation is not designed to help you get that debt down. Its a cruel mixed message the credit industry sends us because if you have high credit card debt, your credit rating goes down. But even if you have too much debt, the credit card companies just keep raising your credit ceiling and sending more and more credit card offers to lure you into more debt.

The instinct is to keep taking out more accounts and transferring money to those deceptive zero percent offers that expire in a matter of months and leave you with yet another bill to pay that only makes managing that debt even more impossible. If you do get a little money ahead, the instinct is also to pay more down on the debts that have the highest interest rates to try to slow the erosion of your finances due to high rates.

But there is another approach to handling this debt that goes completely opposite your instincts and gives more control to you to begin seeing headway against those debts. But to use this approach, you will have to think with your head, not your emotions and not panic but think about how to get as much principle paid down as possible. This inside out approach to paying down your credit cards is simple and gives you a roadmap to freedom from debt.

First of all, stop taking out more accounts. That only gives another credit card company access to your money. They can charge you membership fees and try to lure you with credit insurance. If you have three or more credit resources already, thats plenty.

Second, use short term offers wisely. If one of your existing accounts offers you a zero percent deal for a few months, take it but transfer a small amount to that account. Then you can focus on paying off that transferred amount and see 100% of your payment go against principle which is the fastest way out of debt.

Third, pick a card and pay it off. It might be the card with the lowest balance which is one you might give the least to so you can respond to the higher level debts. But if you pay that card off, that is one less bill coming in each month and it gives you a great feeling to know you are slowly killing off the monster of credit card debt one card at time.

That brings us to the cornerstone of the inside out method. Instead of paying on the card with the highest interest rate, pay them the minimum payment and put your excess funds against the cards with the lowest rate. In this way you are getting the most bang for your buck with the small amount of extra funds you may have to pay on the debt. That debt will go down more quickly and then you can attack the bigger accounts and begin to whittle away at them too. And by using a smart approach to the credit card debt you have, you take control of the problem and put it on a program to go away. And that will be the greatest feeling of them all.

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