Archive for August 15th, 2007
Managing debt can be challenging, particularly when your debt comes from a variety of sources. Many people have debts in mortgages, personal loans and credit cards. Debt management involves budgeting so you can pay off these debts as quickly as possible whilst having money left to live on.
There are many debt management companies and services which will assist you in budgeting in regards to a debt management plan. They will tell you how to manage debt by coming up with solutions and plans and providing debt management advice. If you are unsure of what to do so solve your debt problems then turning to a debt management center may be the way to go to set you off on the right track to being debt free.
Firstly these companies will do a debt evaluation on you. They will find out exactly what debt you have, what the interests rates and monthly payments are and of course how this all relates to your expenditure and income. Although mortgage and personal loans are relatively simple to manage, credit card debt management is a little more challenging because of the availability of the card to you for further use. Many debt management solutions will ask you to hide or even destroy your credit card so that you will no longer be tempted to use it to incur more debt.
Some tips to control and pay off your debts quicker include having your pay check go straight into the mortgage or credit card bill, always have a budget for the week which includes food, gas and other necessities and of course simply put aside that credit card and never purchase anything unless you have the cash to do so.
August 15th, 2007
You know when you get that offer through the post for low interest rate credit cards and you think “That’s too good to be true!” Well it could be that you are right but you might not notice it till it is costing you a lot of money.
Low interest rate credit cards normally only give out a low rate in order to capture your attention and the offer normally only lasts for around six months. After this the low interest rate credit cards become normal rate credit cards.
The secret to the low interest rate credit cards is all in the small print and how organized you are when it comes to your finances. If you are on top of your finances and you know exactly what is happening on whar date then you are more than likely in a very good position to take great advantage of low interest rate credit cards because it is a great way to purchase products and pay next to nothing in interest. BUT….You have to be organized or it can all turn bad!
Should you take advantage of low interest rate credit cards then you must read the small print in order to know when the introductory offer ends and you are back to the higher interest rate. Most last three, six or nine months. There are ways that you can keep your interest rate down and continue to get that low interest rate credit card that dropped into your mail box.
These include calling your credit card company and asking them for the lower rate that you have been offered by the new company you are thinking of transferring to, this normally kicks them into action to give you the lower rate again. You can swap from one to another and swap between two for as long as you get a good rate you can try all of these methods.
Why the beware of low interest rate credit cards? If you miss that date when it kicks into the higher interest rate then you could end up with a great deal of interest as they recoup the money that they didn’t charge you, this is why we say beware of low interest rate credit cards!
August 15th, 2007
As the cost of living rises normally above that of the average wage rise it is becoming quite common for people to be getting into debt and deeper into debt than would be comfortable for most people. We are going to take a look into how you can help yourself in getting out of debt.
The speed of everyones lifestyle in todays day and age has become one of convenience and a throw away society. This does not help the environment and certainly doesn’t help our bank balances especially when we are looking at getting out of debt.
“I don’t need that I am going to throw it away!” This must be the phrase that I use to use most especially when moving. I moved apartment 3 times in 3 years when I first met my wife and the first time (after a year) we threw away a lot of things that were in some way valuable not only in money value but also in sentimental value. However the second and third of our three moves helped a great deal with getting out of debt and we now have zero debts (not just because of this but it helped a great deal). By selling what we were going to throw away we not only paid for our move but we had money in the bank after paying the deposit as well.
I hear people saying “That’s fine but I am not moving!” OK but I am sure you have a room or a garage full of things that you have been keeping for a rainy day. All of the things in that place you store “stuff” and lets face it in reality it is just stuff, think of the last time you looked at it or the last time you used it. That exercise bike that you got that you never used (I had one so don’t feel bad) can help you in getting out of debt.
Have you looked at your last grocery shopping receipt? I did I was horrified at what I saw, not only was the amount at the bottom of it more than I thought I was spending each week but it was also a great deal more complete junk that was clogging up my kitchen. I was throwing away salad that wasn’t used and basically wasting a lot of what I was purchasing that was fresh when I put it in my shopping cart. By stopping to buy fresh on my way home from work twice a week I was using everything that was in my fridge and (fanfare please) saving $25 a week in food that was going off! This was another major help in getting out of debt.
These are just a few things that helped me and help lots of people in getting out of debt and a few minor changes in the way I did things and making sure that instead of storing for a rainy day I got money for.
August 15th, 2007
