12:27 PM A Shortcut to Debt Free Life

(Best Syndication) There is no magical, mystical and ready-made formula available to lower your debt burden. The best solution is your common sense and having a plan for your own budget. Good plans aiming to reduce debt burden are 80% about your financial behavior and 20% about financial knowledge.

It is not a rocket science that will immediately propel all your debts in one shot. However, reducing your debt burden is easy though it takes time. Your behavior during this period is the greatest factor for the plan's success.

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12:25 PM Lawmakers irate over payday rates

"I still believe that they are the new loan sharks of the 21st century," she said. Stories of quick cash and high interest rates like Medlock's are driving legislation at the Capitol this year to sock it to "predatory lenders." "Not even the mob can charge as high of interest rates," said Rep. Mark Ferrandino, a Denver Democrat who announced a bill Thursday that would muzzle the industry. "This legislation will help hardworking men and women in Colorado who are living paycheck to paycheck."

In what they say is the toughest crackdown on payday lenders in the nation, lawmakers want to cap the annual interest rate on payday loans at 36 percent and prohibit lenders from giving people with unpaid loans more money. Lenders would have to check a database to see whether customers are already in debt.

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12:18 PM Will Rebate Checks Make a Difference

Rebate checks might soon be in your mailbox. As part of President Bush's stimulus package, income tax filers will receive between $300 and $1200 come may. Congress hopes putting money in American's hands will boost the economy, but Senator John DeFrancisco of Syracuse believes this is only a short-term solution, and we need to look towards the future. A recent poll shows American's will spend the money paying bills, filling up the gas tank, and getting out of debt. DeFrancisco says taxes should be lowered instead of a one time rebate check.

Here is more information and some guidelines to find out if and how much you will be getting back.

Source: Associated Press

Beginning this spring, more than 130 million people will get rebate checks from the government in amounts from $300 to $1,200.

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12:15 PM The art of borrowing sensibly

TO THE hard-working mums and dads who have children at ABC Learning Centres, I know from doing brekkie radio this week that many of you are worried.So, what are the ramifications of the company's plummeting share price? There are none – at least none threaten childcare places. However, CEO Eddy Groves can teach us some good lessons. Firstly how to avoid high-risk borrowing and secondly the right way to save for your kids' education, and finally let's look at his hair. What's going on with that? Eddy and his key executives borrowed heavily against their shareholdings in the company, using their existing stock as security (otherwise known as a margin loan).

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12:08 PM Our Debt Settlement Program

The Goal: To help people who are in a dangerous debt situation to ethically and completely solve the problem so they can get back on their feet financially and flourish and prosper in life.

Who do we serve: We help those who are in over their heads with unsecured debt and have no workable way out. Typically, our clients are those who, due to a change in circumstances, (this could be the loss of a job, health problems or some other business situation) find it difficult or impossible to keep up with their obligations. They usually have been barely making minimum payments for some time and due to their circumstances are finding it increasingly difficult to continue to make minimum payments. They are often falling behind in their payments and could be at or near the point of bankruptcy.

What we do: We stop collection actions and negotiate with the creditor on behalf of our client to reduce, as much as possible, the amount of debt they owe. We negotiate mutually agreeable settlements based upon the client’s budget. The client pays the settlement as agreed and we assist with the process from beginning to end. Each settlement offer is made in writing by the creditor and agreed and signed by the client before it goes into effect.

What are the benefits: The client does not have to deal directly with the creditors any longer. For those clients being harassed by collectors the stress level comes down dramatically so the client can concentrate on making money and getting some enjoyment out of life. We actually settle debts at substantially reduced amounts and the settlements are paid off within the constraints of a workable budget for the client. Once all debt is settled and paid the client is now out of debt and can use their financial resources for something more productive.

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11:19 AM Let’s Go to Debt

How about a life without debt? Have you experienced also? If you have, Off course you know the big difference. But don’t worry. Even if you are in a sea of debts right now, you can still come out of it victorious. It is still possible to lead a debt-free life.

1. Prioritize paying your debts. Yes. In order for you to be free of debt, you have to pay for it in full. There’s no other way about it. This is the main solution; the only solution.

2. Get professional help. If you feel that you can’t possibly get out of your debts on your own, there are many companies out there which offer debt management services and debt consolidation. Try talking to them and select the system that will work for you.

3. Prioritize accordingly. Before you spend on anything, think twice about it. You also have to make sure that your monthly debt obligations are always met. Don't pass up payments. You wouldn't want to recede into debt further.

4. Control your money. Control means you aren't going to spend on the spur of the moment. You will be more conscious on how your earnings are spent. You won’t focus on the luxuries. Instead, you will dwell more on the necessities of life.

5. Use your credit card sparingly. A credit card is something so powerful it can help you or break you. Choose not to be broken by a credit card. Use it wisely. Don't use it for unnecessary and small purchases. Always pay with cash when you have it. And if you have more than two credit card, please make sure to close them. Don’t have credit card more than two.

6. Stay out of debt. In cases where you can put off applying for a loan, do it. If you can save instead of calling your loan agent, settle for that. Loans are simply excess baggage in the long run. Don’t apply for one unless you really have to.

7. Save. Not just for rainy days but always. Your savings is going to be important in times of emergencies and times where you want to make a big purchase. Save as much as you can in any way you can.

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6:02 AM Debt relief 101 for Understanding your options and avoiding the scams

Debt Consolidation
The most well-known form of debt relief is debt consolidation. The principle behind debt consolidation is that by combining the many small debts, many of which are very high interest such as credit cards, under a single lower interest loan, you can get control of your debt. Under the single lower interest loan, the overall cost of servicing the debt, that is your total monthly payment, is lower than the combined total of the many smaller debts. That at least is the theory behind all debt consolidation programs.
Many programs go further, however, by limiting your discretionary spending. The theory goes, that because you have accumulated so much debt through your own uncontrolled spending, the debt consolidation lender will in effect act as your accountant too. The limitations placed on you by debt relief programs range from prohibiting major purchases like as a new car or home, all the way to those organizations which take your paycheck before you get it, and then dole out to you the remainder. While the latter version sounds intrusive, and certainly it is, it may prove for some individuals the best option as it will force a rationing of discretionary spending. But one thing you can count on with almost every debt consolidation program is the requirement that you cut up all of your credit cards. As credit is the number one contributor to consumer debt today, that isn't all that bad of an idea.

Creditor Negotiations
But debt consolidation isn't the only option available to those in debt crisis. Another option is to hire a creditor negotiator. These services, usually under the name debt management or debt managers, mediate negotiations between you and your creditors in the hope of lowering your total debt. In effect, these individuals bargain with your creditors, threatening them with the possibility of you seeking bankruptcy (in which case they get almost nothing) to try to get them to lower the interest rate, or the principle of your debt. This can be a very effective method for those unable or hesitant to secure a new larger debt through a debt consolidation loan.
The problem with both of these options is that they do not come for free. While many organizations present themselves as non-profit or even public servants, the reality is that almost every agency is in business because of the profits they can make off of you. For example, many individuals in need of debt consolidation are so thankful to find a willing lender that promises to lower their monthly payment, that they fail to examine closely the loan contract they are offered.

The Negatives and Scams of Debt Relief Programs
A common scam is to hide huge "service fees" or "debt consolidation fees" in the principle of the loan. So, if for example you have $50,000 in outstanding debt, your debt consolidation lender may provide you with a loan as high as $80,000, where the extra $30,000 is comprised almost entirely of fees. The lender then extends the loan out for years and years, so that your monthly payment is actually lower and as a result you do not ask any questions. Another, even more devious scam is to vary the interest rate over the life of the debt consolidation loan. For example, the lender might offer you a loan in which for the first two years the interest rate is an extremely low percentage, say 4%. But very quickly, the interest rate balloons to something like 15% at which point you will no longer be able to make payments and must go back to the lender and "consolidate your debt" once again. But debt consolidation lenders are not the only one's trying to scam you. Creditor negotiators seem to offer a problem-free solution to your debt troubles. They offer to negotiate with your creditors, making the process seem infinitely more complex than it actually is. In truth, many individuals can simply negotiate with creditors themselves. The threat of bankruptcy is very real for many lenders, and as a result many are willing to offer you alternatives to the current high interest rates they are charging you. By cutting out the middle man credit negotiator, you can save much by way of charges, for the rather minimal hassle of calling the creditors yourself.
Both debt consolidation and debt management services fill important niches in a world where consumer debt is increasingly prevalent. It is important to remember, however, that these companies make money off of you. And because the industry is in a stage of rapid growth there are a great number of companies working on the edges of the law if not engaging in outright predatory lending. By entering the world of debt relief you are entering the world of scam artists and sub-prime lenders. Educating yourself before you enter the arena is the only way to ensure that you attain the best debt relief for you.

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5:59 AM Debt Consolidation Stop Foreclosure-2

This would causes the homeonwer firstly, losing one of thier most valued investment, their home; secondly their credit rating would be severely affected. Foreclosures can stay on their record for up to 10 years; it makes it almost impossible to purchase another home.

The obviously better option is to seek professional help to prevent foreclosure from taking place and find ways to catch up on their mortgage payments. The leader in the foreclosure prevention industry is Intermark Media - the premier source for homeowners who are 90 days or more behind on their mortgage. Their experience is unparalleled in providing financial services for homeowners online. All a homeowner have to do is fill out a short form here and one of thier foreclosure prevention counselors will call back for a free no-obligation analysis. They have a 98% success rate in saving their client(homeowner)'s home to boast about.

Their clients includes homeonwers with bad credit rating and homeowners who are already deep into the foreclosure process. Foreclosure is a frightening process that no one wish to go through. Unfortunately, there are times when we get into tough situations that prevent us from making payments. Fortunately, there are helps available. If you are one of those homeowners who are 90 or more days behind on your mortgage payments, you owe it to yourself to get in touch with Intermark Media The sooner you fill out the form, the faster you can receive your free consultation and the quicker you can get back on track.

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5:58 AM Debt Consolidation -1

Foreclosure Prevention is an option consumers are not aware of when they face the foreclosure process. It’s a well kept secret that foreclosure proceedings can be stopped up to an hour before the sale of one’s home.
There are only two options a homeowner can take if he/she is several months behind their mortgage payments. Option one is the foreclosure option. This is the option that no homeowner would want to take. However, this is the legal means that their lender can use to force the sale of their home, if they do not make their mortgage payments on time.

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4:51 AM Student Loan Debt Solutions

The figures for students opting for loans are only going higher as each year passes by. Not only that; with the escalation in the cost of tuitions, the amount borrowed is also at an all-time high. But despite that, the list of student defaulters is low. This is due to the fact that today there are many solutions for student indebtedness and students are better-informed of how to implement these solutions.

The wisest solution is that of loan consolidation. A student can bundle up all the federal loans that may have been borrowed during the educational period into a single loan, with a single rate of interest. When a student consolidates loans, then the rate of interest locks in at the current rate and hence, the student does not have to suffer the rising rate in the future. Consolidation also saves the student from having to deal with more than one creditor.

Consolidation is a seemingly viable option, but the student must do some research to find out whether it would really help. Sometimes with consolidated loans, the interest reductions are not much and the student must think whether it is worth making the effort to get the loans consolidated. The Student Assistance Act of 1965 has facilitated students with huge loans to extend their tenures of repayment up to as many as 30 years. But though this gives an ease of repayment to the student, it will pile up a tremendous interest for such a long tenure.

The best option seems to be debt forgiveness. There are several socially benefiting organizations that the student can work with to get the loans forgiven. Students may work as doctors, nurses, teachers, or may join the armed forces or work in voluntary institutions such as the AmeriCorps or PeaceCorps to get their loans forgiven. The amount of loan forgiven depends on the period of service the student provides. However, the catch here is that the student must think whether working for a higher paying institution may help to get the loan repaid faster.

There is also an option of rehabilitating loans. After 12 monthly payments to the lender, the student may request the lender to sell the loan off to someone else. Once this is agreed upon, the student has 9 years to repay the loan. Filing for bankruptcy is a possible, though very difficult, process. To be declared bankrupt, a court must be ascertained that the student will not have even a minimal standard of living for a major chunk of the repayment period, were the loan to be repaid.

Student loans cannot be completely eliminated. Hence, students must try to repay them as soon as possible. It helps to take up a job immediately after graduation. There are students who are still unemployed when the grace period is coming to an end. This is a catastrophic situation. In fact, lenders provide discounts to students who manage to repay their loans on time.

Students must learn debt management techniques. Becoming aware of the sticky situation they are in often helps to solve the situation.

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4:49 AM Reduce And Eliminate Your Debt?

Easy access to money means people are borrowing more money. Borrowing more and more money eventually leads to a situation of unmanageable burden of debt. People's spiralling debts have given rise to a new and growing industry.

Consolidate all your debts into one. The debt consolidation service combines all your debts into just one debt as illustrated by Mr & Mrs James case:-

1) Credit Card debts $4,900 @ 27.5% apr

2) Personal loans $9,700 @16.7% apr

3) Arrears on mortgage payments $3,300 @ 5.5% apr (house may get repossessed due to these arrears)

4)Store Card bill/debts $2,300@33.34%

5) Gambling debts by Mr James $13,500@22% apr

6) Work Credit Card $1,600@18% apr.

7) Bar Bill (at a local bar) $490

Total monthly payments in respect of the above came to $2,900 per month plus household bills including food costs. Mr James brought home $4,200 per month and almost all of that money went on paying for debts and arrears. They could not live on the measly amount which was left.

Mr & Mrs James's total combined debt came to $35,790 at an average interest rate of 20.51%. On the basis of average interest rate, over five years the repayments will be $1208.21 per month. There is also the mortgage payments of $890 per month.

The critical issues.

The gambling debt needs to be paid within the next 3 months. The gambling company is going for foreclosure so the risk of losing their home is eminent. Additional costs of food, gas/electricity, fuel for their two cars meant that they need just about $2,000 to meet their living costs.

The family home is at risk of being repossessed. There are proceedings being instituted both by the mortgage provider and the company responsible for collecting Mr James gambling debts.

The debt consolidation solution.

Mr James bought his house 5 years ago for $172,000. He has built up some equity in his investment. A re-valuation priced the house at $265,000. The immediate solution proposed by the consolidation service was to release some of that equity to clear these debts. Mr & Mrs James agreed to live within their means. They had to surrender their cards; in total they had 10 cards between the two of them, and they both agreed never to use them again. With the help of Bank of America, the debt consolidation service released 85% of the equity in their family house and raised $53,250 with the intention of clearing all their debts. The debts were all cleared. Mr & Mrs James paid $750 per months for their new mortgage because of a discounted deal which was negotiated & secured on behalf of Mr & Mrs James.

Mr & Mrs James went through a real ordeal which nearly cost them everything they worked for. As a direct result, they have now set up a debt advise help line to help other American families become debt free. Additionally, they have devised a help yourself guide packed with practical ideas for people to get out of debt first of all and then to remain debt free. Their suggestions and recommendations are:-

1) Don't be afraid to ask for help. The sooner you ask for help the better for you. Because they themselves kept deferring their own decision to seek help, they simply got deeper into debt.

2) Only spend cash from your earnings. Do not use credit cards as an alternative. Apart from James's gambling debts, most of our other debts were from credit card use. Bad idea and bad move. Don't do it.

3) Talk to your partner about the problem and look for a solution. Mr & Mrs James did not talk about it nor did they try to find a solution. A lot of our debt problems could have been pre-empted had we spoke about our concerns and issues.

4) Talk to your creditors, explain the problems to them and ask them for help too. If you propose a sensible solution to reducing or eliminating your debt to them they may agree to it and stop charging you more interest.

5) We did not know about the extra equity in our house until the debt consolidation service suggested that option as a possible way out for us. So, talk and look for solutions by examining all possibilities.

6) Reduce costs and outgoings where ever possible. We spent a lot of money dining out when we could not afford it. When we looked at our goings we were amazed at how much we wasted dining out. So, we curbed our spending by cutting our unnecessary waste.

7) Look for problems in your life and in your relationship. James gambled to the tune of $13,500 because he was bored it came to light when we finally decided to face up to our problems. Remedy these problems as soon as you can.

Debt consolidation service has given us our lives back. We are not likely to be in situation again. We are trying to help others from being in debt and we would ask you in turn to help more people become debt free.

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7:35 AM Debt Management Solution

Considering that you are assisted by a debt counselor in repaying your debts, it is important that your regularly check with your counselor and your creditors about the payment and the implementation of the discounted rates on your loan. The debt Counselors provide debt solutions by collecting monthly payment from you and paying it to your creditors every month on a negotiated rate which is normally lesser than what you had to pay otherwise.

Things you should always remember before you begin using the debt management program include, do not stop paying the bills, while the negotiation between your creditor and the debt counselor is still on. Continue to pay your bills according to the scheduled calendar to avoid late fees or negative billing.

Once the plan has been accepted by your creditor, contact them and confirm it for yourself before you start sending the loan amount to your debt solution team, i.e. the debt counselor.

Now that you are already using an effective debt solution program and are also paying your bills to the debt management team on time, make sure that they too are paying your bill to your creditors before the due date of your bill. This is necessary to avoid tendering late fees on your bills due to the negligence of your debt solutions counselor.

Ask for monthly statements from both the counselor and the creditor to keep track of the amount that is being credited on your bills. Reviewing these bills will also help you find out how successfully or unsuccessfully your Debt Solution plan is going.

In most situations the debt counselors negotiate with the creditors to waive your late fine, or reduce your interest rate etc. So make sure that these negotiations are being followed and you are not still being charged for them.

The author has been in the financial industry for a considerable period of time and has been assisting quite a few reputed banks and other financial institutions. Now he has his own set up and counsels people on debt related queries. He is also assisting Online Debt Advice {Debt Solution} and their customers on debt related issues.


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