Debt Consolidation Blog

Archive for March, 2011

Debt affects nearly all working people.  Sometime  it’s manageable and sometime it spirals out of control. Here are a few simple tips to help you reign in your debt.

5. Reduce Your Cost Of Living

Reducing your cost of living applies to a lot of things, not just the basics like food, utilities and clothes.

If you’re planning a vacation, cancel it.  Take your vacation as a reward for getting out of debt.  Don’t take one when you can’t afford it.

If you plan on replacing your old TV or getting a new pair of jeans, postpone it until you have more financial freedom.  

4. Get A Second Job… Or Even A Third

It’s not fun to get an extra job or even an extra job on top of your extra job but the prospect of becoming bankrupt or broke is by no means fun either.

Getting an extra job isn’t for everyone, but it will reduce your debt much quicker than having just one job.  It’s a new experience that you might enjoy and stick with after you’re out of debt.

3. Cut Up Your Credit Cards

If you’re in debt, there’s a big chance that credit cards have had something to do with it.  If you want to get out of debt and stay out of it, you need to get rid of your credit cards.  Stick to cash or debit cards.

Never spend money you don’t have, it’s a slippery slope and normally only leads to one sure thing; debt and lots of it.

2. Use Cheaper Stuff

It sounds too simple and too easy but the amount of people who spend more than they need to on the bare necessities is incredible.

By changing to less expensive brands when you’re out shopping for food, clothing, Etc, you’ll save a lot of money.

Saving money this way will not only help you out of debt, but it will also set you up with a life style that will allow you to get the most out of your money after you become debt free.

1. Sell, Sell, Sell

Sites like eBay and CraigsList are great ways to quickly generate money from things you don’t want, or don’t use anymore. Things can be replaced. Sell Sell Sell!

The money you make will help you to get out of debt or at least help reduce it! Clear your clutter for clarity!

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

Do you get irritated or frightened every time your mobile rings thinking it might be a call from collection department of your creditors? Yes, this is the situation facing by many American presently as many are seriously delinquent on debts. It is more frustrating when the debt collector calls you at work over your mobile or work phone. If this is the situation that you are facing then you are at the right place as in this article I decided to let the people going through this situation know how to stop the calls coming in from debt collectors.

As the number of people encountering debt problem during economy slowdown, American congress came enacted a legislation that regulates debt collectors and collection attorney actions and helps in protecting the rights of debtors.

It is very important for every consumer to know about fair debt collection practices act in order to stop the collection agencies from harassing you. Fair debt collection practices act states that debt collectors or collection attorney should not harass debtors by calling them repeatedly over mobile or work and home phones.

According to this act if you want the debt collectors not to call you, then you must request the debt collectors in writing specifying not to call you at home and at work. You should make sure to tell them this when they call you first time and under any circumstance you can not afford to make payments. If they do not stop calling you, then your request should follow up with a certified letter that is accompanied with acknowledgement of the receipt from lender.

After requesting the debt collector to not to call again and again until the time you mentioned in future, even after your inability to pay off the amount, then you can tell the debt collector that you will sue him under the fair debt collection practices act at FTC and the attorney general.

But one thing to keep in mind is that you can not stop the original creditor from calling you in an effort to collect the amount you owe them. The fair debt collection practices act does not apply to original creditors to stop calling you. In this case instead of mentioning fair debt collection practices act, quote state law that is governing original creditors and that has similar provisions to federal act.

Therefore to make them stop calling you further and harass, here are few things that you must that you must take care when you deal with collection agencies.

First, put everything in black and white – this is best way that can be helpful when you are dealing with collection agencies. If possible record your conversation with debt collectors and at the same time make sure you get an acknowledge for the request you made to stop calling you under the act fair debt collection practices act.

Second, if the debt collector does not stop his efforts, remind him that you can raise a compliant against him with FTC and attorney general.

This all is possible only when you have knowledge of fair debt collection practices act. So make sure to have an idea of act before dealing with debt collectors.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.

There are countless people stuck with credit card debt. What started as strictly emergencies became everyday purchases. If you have more credit card debt than you can handle, there are a variety of options available to you. Here is a step by step guide for how to deal with credit card debt:

Find out where you are. The most important part of tackling your credit card debt is knowing exactly how much of it you have. Open those bills, and check your online statements. Tally up your totals and look at the big, scary numbers. You simply can’t take care of a problem without knowing how big it is.

Examine how you got here. Look over your purchase history. Are you using your credit card for purchases that are realistic? Remember that unless you pay off your credit card each month, you are paying interest on any and all purchases. That means the $45 dinner and drinks tab from 4 months ago is now over $70. If you had paid cash that night, you would have saved $25. Look at what you are spending your money on and what you could live without. Did you need a new sweater or television last month?

Make a plan. A budget is not a scary thing. It is not even all that complicated. Just pull out a blank piece of paper and make two columns. Fill out one column for money coming in, one for money going out. Living within your means is the only way to get out of debt. After you see what you have been spending your money on, you will have a realistic view of how much you typically spend on certain items. Consider things you can get rid of while working off your debt.

Tackling your debt. This can seem overwhelming at first, but with some careful thought the whole process can be quite manageable. After you listed everything in your budget, look at what money you have left over. Look at which credit cards or loans have the highest interest rate. After you have paid the minimum on each loan, use the extra cash toward your highest interest loan. This is likely a credit card. If you have defaulted on payments in the past, this could be up to 32%. You can also consider transferring your credit to a lower interest card but make sure to read your credit card agreement. This is not always allowed.

Get Help. With so many people in debt these days, there are plenty of agencies out there willing to help. Always make sure to research any business with the Better Business Bureau before handing over any money. Scams are rampant, and especially with the current credit crisis, it is easy to turn to the wrong business. Protect yourself, but don’t miss out on an opportunity to slash your debt.

Hopefully this will be a lesson you take with you the rest of your life. Living beyond your means is not healthy and can cause you many unwanted results. Nobody likes harassing phone calls and nobody likes living without. Consider a part time job for increased revenue or taking up a cheap hobby while you are working off your debt. Having excess credit card debt is sometimes a necessary evil, but most of the time it is unnecessary. As you are working off your debt consider paying for everything in cash. Wait until you know you can use your credit cards responsibly, until then keep them in a cabinet or in the freezer!

Articles on this site have been acquired from a variety of sources. No content on this site should be considered financial or legal advice.