Ways To Be Debt Free Without Bankruptcy

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It can be frighteningly easy to get into debt, as many millions of people have found to their cost over the last few years. Easy access to cheap credit over the last decade or so, along with a generational shift in attitudes to borrowing, has left huge numbers of people struggling to get by and keep their debt repayments on track.

Of course, the unhappy fact is that for some people their debt problems are simply too pressing and no solution can be realistically found, and for these unfortunate people bankruptcy is often the only option.

However, there are ways to get debt free without resorting to such drastic action, although none of them are quick or easy, no matter what the abundance of advertisements may insist.

The most common method of dealing with debts is to take out a consolidation loan. The basic strategy is to take out enough cheap credit to pay off your existing more expensive debts, leaving you to concentrate on repaying this single new debt, for which you should be having to pay less each month than the total of your previous repayments. Obviously, this is not a quick route to being debt free, especially if your loan was taken out over a long term, but it’s a popular way to relieve the pressure of unaffordable debts. So long as you stick to the repayments, and avoid racking up additional debt, you will (eventually) clear your debt.

A more proactive way of clearing your debts is to use the snowball method, where you determine to make the minimum repayments on all your debts each month, with any extra cash left over being concentrated on repaying just one of your debts. Once this single debt is cleared, you transfer your previous minimum repayment on it to the next debt in the line, as well as keeping up the repayments you’ve been making all along. Once this debt is cleared, you transfer the entire repayment onto the next one, and so on down the line.

The beauty of this method is that your total monthly debt payments will stay the same, but the power of your repayments will grow and grow as your debt gets smaller, and you also have the encouragement of seeing your debts get cleared one by one.

A more drastic move is to enter into a debt management program. This is basically an admission that you can’t cope with your debts, and a plea for negotiation with your creditors. You should be able to come to some sort of arrangement to spread your debts over a longer term, reduce the interest rate you’re being charged, or otherwise ease the burden by restructuring your finances. You can either take this process on yourself, or consult a debt charity or debt management agency who will handle it for you.

The final option is known as an IVA or Individual Voluntary Arrangement, which is actually a form of insolvency. It is in some ways similar to a debt management program in that you negotiate a new repayment deal with your creditors, but the crucial difference is that your new agreement is legally binding and must be signed off by a judge.

Under an IVA, you don’t necessarily have to clear all of your debt, but so long as you stick to the agreement you’ve made in court, any remaining debt will be written off after the five year term of the IVA. Although this is one of the fastest methods of becoming debt free, it’s not a trivial course to take and will impact on your financial future from many, many years, not least through the near destruction of your credit rating.

Debt Settlement – Is it the Ideal Solution

Debt blogger

For someone heavily in debt, there are a few options available to get rid of the debt. Debt settlement is one of the preferred options chosen by many. Another is credit counseling program and the last one being filing for bankruptcy. All these options have their own pros and cons. So how do you know which one is the best for you? Well, if you want to find out if debt settlement is the ideal solution for you, this article would provide you with some information that would help you to choose.

First thing to consider is whether you are already behind your schedule or not. If you find that you have not been paying your debts for more than three months, then this might be the solution for you. A debt settlement company can help negotiate to lower your debt amount with your credit company. Take note that by using this method to clear your debt, your credit report would state your debt as ‘pay by settlement’, instead of paid in full. This would have an effect on your application for loans in the future.

Next, do you have enough funds to pay the debt once you have reached an agreement with the credit company on your new, lowered debt amount? Credit company usually would only be willing to negotiate if they know you are able to pay that amount. If you do not have enough money with you, try to source around by finding part-time jobs or loan from your friends and families.

On the other hand, if you are still able to pay your debts on time, but still have a long way to go before the debt is fully settled, you might want to consider credit counseling instead. This would not leave a negative impact on your credit report. However, if you are unable to pay your debts on time, and do not want to consider bankruptcy, you can opt for debt settlement. Do your research well before signing up with a debt settlement company, and you would be on your way to financial freedom! For more information about debt settlement solutions and debt settlement companies, visit DebtSettlementEssentials.com.

Debt Settlement – The Advantages and Disadvantages of Applying For It

Debt blogger

If you have done enough research on the various options available for people to settle their debts, you would know that typically there are three options that they can choose from. The first one is credit counseling program, second is debt settlement, and the last one is filing for bankruptcy. Of all the three options, debt settlement is the most popular choice among those who want to get rid of their debts. However, this option might only work for some, and not for others. This article would show you the advantages and disadvantages of this method.

Advantages:

1. Debtor only needs to pay creditor a small amount from what the debtor actually owes. Usually, the saving is around 40 to 60 percent from the total outstanding amount.

2. It is more hassle-free compared to bankruptcy. A bankruptcy filing would involve more legal procedures and takes longer time to complete.

3. The debtor has the option to negotiate with the creditors by himself, which would save on the fees if a debt settlement company is engaged.

4. This method would result in a single payment to be made to the creditor. Of course this would mean that there would be no more bills and calls from the creditor. This would certainly reduce or eliminate the stress from your daily life.

Disadvantages:

1. A debt settlement would affect your credit score.

2. If you are able to save more than $600 as a result of the negotiation, the saving is subject to tax.

3. Your debt would be marked as ‘pay by settlement’ instead of paid in full in your credit report. This would certainly affect your application for loans in the future.

4. Some of the creditors might be unwilling to negotiate with you to lower your debt amount. Instead, they might start to treat you more ruthlessly.

Given the list of pros and cons above, the pros usually wins as debt settlement provides you with the option of settling your debts with an amount that is within your means. However, do take note that this option is only for those who are unable to pay their debts regularly. For more information about debt settlement program and debt settlement online, visit DebtSettlementEssentials.com.

Secured Debt Consolidation Loans Life Is Now Securer And Safer

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If you have your own property then you will no more have to be worried for your debt loads. From now onwards, for the people who have the capacity to keep their assets as collateral, the debt burdens will appear to be nothing troublesome. This is because now the Secured Debt Consolidation Loans are available for all borrowers.

The most important thing which you have to be able to posses is the capacity to provide security. As these loans are secured in nature, therefore, security is essential. Once you meet it there will be no problem at all. After that whatever big the debts are, however bigger the amount that you wanted; all your problems will be solved. These loans are known for huge money offering systems and also the repayment term too use to be quite long. So, for what else will you have to be tensed?

But these loans are not available to all. You will be considered to be eligible for getting these loans only then when you can prove this to the lender that your debts are multiple in numbers. Also the payable amount should be more than 5,000. So, after qualifying on that you will be able to merge your debts into one through these loans. After uniting all your debts into one, these loans will help you out by making the rates of interests less. In stead of paying the interests for different loans separately, you will be able to pay all of them in one time. So, no need to pay multiple installments and nor will you have to pay multiple interest rates.

Even these facilities are not limited to the good credit holders only. The bad credit holders will get to enjoy equal right and the equal loan amount in the secured debt consolidation loans. Hence, all those allowed poor credit records include arrears, late payment, defaults, bankruptcy, CCJs or IVA.

Rick Russel has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find debt consolidation loan, remortgage debt consolidation loan, bad debt consolidation UK mortgages, debt consolidation mortgage UK,secured debt consolidation loans visit

State Attorney Generals Taking A Strong Stance Againist Harassing Debt Collectors

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With the economic crisis still in full swing, many American families who have typically been able to successfully manage their finances are finding it difficult to keep their head above water. To add insult to injury, many debt collectors have seized upon this economic climate to garner larger profits. However, many States Attorneys Generals have stepped up to try to curb the onslaught from the debt collection industry.

The latest to do so, is Massachusetts State Attorney General Martha Coakley who wants to close loopholes in Massachusetts debt collection rules that date as far back as the 1970s.

Coakley is proposing that regulations prohibiting “abusive” debt collection attempts be modernized by adding cell phone calls and text messages to forms of communication covered by the rules.

She also wants to make debt buyers – companies that purchase debt and then try to collect it on their own — subject to all regulations.

Another change would require debt collectors to make a good faith effort to determine whether a debt is too old to be collected before contacting consumers.

Finally, the attorney general’s office is amending the regulations to make them more consistent with the Massachusetts Division of Banks’ regulation of debt collectors and the Fair Debt Collection Practices Act.

Coakley says the amendments would help ensure that people are treated fairly when contacted about a debt.

A hearing will be held on the proposed changes on May 18, 2011, at 9 a.m. in Boston. Testimony may be presented orally at the public hearing or in writing.

The Fair Debt Collection Practices Act (FDCPA) offers protection from illegal and unethical tactics of the debt collectors. A clear understanding of debt collection laws under the FDCPA will entail you to the power to fight the third party debt collectors.