get out of debt

The Benefits of Debt Consolidation in Arizona

August 6, 2013 by arizona

Modern society presents us all with a virtual minefield of opportunities to take on more debt than we can easily handle. Do any of these “debt enhancers” sound familiar:

An unsolicited credit card with a low interest rate that skyrockets after a year, or if you’re a single day late with a monthly payment!
A layoff or unexpected gap between employment contracts
The uncovered expenses of an automobile accident
The loss of one income in a two income family
The gift a loved one really desires, when “no” is not an option

And this list doesn’t even include the costs of the numerous impulse buying opportunities that highly skilled and well paid marketers are constantly tempting us with. If you are a young person already carrying the burden of Student Loans, or anyone else facing credit card debt problem, take a moment to talk to trusted friends or relatives. It is more than likely that almost everyone you know has taken advantage of the benefits of debt consolidation at some point during their lives. Most will say that debt consolidation was a smart thing for them to do at the time. The ones that care about you will also caution you that using a debt consolidation loan to allow yourself to run up still more debt is a REALLY bad idea!

Here are some factors to consider if you are thinking about a debt consolidation loan:

Debt Consolidation Loans Can Lower the Cost of Getting Out Of Debt

One of the principal benefits of debt consolidation loans, of course, is that the interest rate is almost always lower. More of your money goes to paying down your actual debt, and less goes to profit for the lender.

Homeowners who use a second mortgage as the vehicle for achieving the benefits of debt consolidation may reap the additional benefit that the interest they pay on their debt consolidation loan may be tax deductible.

Debt Consolidation Loans Can Get You Out Of Debt Sooner

The combination of low minimum payments and high interest rates can make progress on paying down some credit card balances nearly impossible. People sometimes find that the monthly interest charge added to their balance, plus the few new purchases they simply had to put on the card, more than wipe out any reduction in the outstanding balance from the small monthly payments they make. Properly constructed debt consolidation loans assure you that each monthly payment will result in at least some progress toward reducing the balance.

If your debt consolidation loan allows it, making occasional payments, even small ones, between your scheduled payments, can significantly shorten the time needed to pay off the loan. Talk to your lender for the surprising details.

Debt Consolidation Loans Reduce Stress

Keeping track of the balance due on a half dozen consumer loans with different payment dates each month can be a real nightmare. With a debt consolidation loan you have just one single payment to worry about, saving you time and anxiety. You always know the exact amount you must pay, and the date that one payment is due. Having the payment automatically deducted further simplifies matters.

Some who have struggled with too much debt, and too many payments, for too many years, insist that the most single most important benefits debt consolidation brought to them was ending the embarrassing and humiliating collection calls that always seemed to come when guests were in the home or dinner was on the table.

Debt Consolidation Loans Make Wise Investments Possible

Life is a precious gift. There isn’t much we can do to change what has happened in the past, but there is much we can do to shape the future. One of the principal benefits of debt consolidation is that it can provide the cash flow to make meaningful investments in the future that would otherwise not be possible. These investments may be in the form of minor home improvements that lower fuel consumption cost while adding to the resale value of the home, or educational opportunities to increase future our earning potential.

Importantly, part of that extra cash flow may also be used for increased contributions to an IRA or the 401(k) plan offered by your employer. Today’s typical American can expect to live to 85 or older. Social Security and Government health benefits are intended to cover only a portion of our post retirement living expenses. Getting money safely invested in a tax sheltered retirement account is vitally important, and the earlier one starts, the better. Yes, that does mean you should start saving for retirement even if you are still paying down old debts.

Remember, however, that you will not enjoy the benefits of debt consolidation if you are unable to manage impulse buying, or if your household budget contains fixed costs such as mortgage payments, real estate taxes, or similar costs associated with the maintenance of a second home. In cases where the benefits of debt consolidation alone are insufficient, the services of a professional budget advisor may provide the best path to regaining control of your current and future financial security.

How To Make Your Get Out Of Debt Plan Easier

June 1, 2013 by arizona

Debt is a tough situation to be in. You experience stressful nights and frustration because you cannot spend your money the way you want it to. That is because you have to prioritize your debt payments. The repercussions of ignoring your debt is too great .

But just as it is tough to be in debt, getting out of it is tougher. You have to exert self control, determination and discipline to be successful. The key to achieve debt freedom is to approach your debt relief with a plan. If you just throw caution in the wind and dive headlong into debt payments, you could find yourself losing your way as you progress.

Of course, making a plan is for nothing if you cannot follow it. Given that, here are a few tips to make sure that your debt out of debt plan is easier.

First, make a realistic plan. This can be achieved by basing it on your budget. Consider your income and the various expenses that you have when you create your budget plan. It is very important that you choose the priority expenses that you will pay off first and eliminate those that are not really necessary. The goal here is to know how much you can afford to set aside as your debt payment fund. While cutting back on your expenses is important, you should make sure that you will not overdo it. Try not to make your life too miserable.

Which leads us to the next tip in making your debt free quest motivating: do not completely remove fun activities. If you know that you need to spend on some fun activities, allow yourself to indulge and put that in your budget. Just shift your money around so you can afford it. There are many ways to do this. If you love the outdoors, look for cost efficient ways to enjoy that. If you want to hang out with friends, organize a backyard barbeque on weekends or a movie marathon day and have everyone chip in on the food. You get to spend time with them without the usual expense that it will cost to dine in a fancy restaurant.

Setting up milestones will also motivate you to keep on edging forward. Small successes provide encouragement for anyone going through debt relief. Reward yourself every now and then by marking significant achievements like a certain percentage paid off from your debt. These will help you keep your eye on the biggest prize – debt freedom.

Growing your income is also an effective way of implementing your plan. Of course, you want to find a way to earn without burning yourself out after your day job. Using your hobby to earn extra is a good way to go. Doing something you love will not really feel like work at all. There are also online jobs that you can pursue – that way you can work anywhere. Finding a passive income business will also allow you to bring in more money without exerting too much effort to do so.

By growing your income, you get to increase your debt payments and thus get out of debt faster. It will also allow you to put in money in your savings so you can make your financial security net stronger. The whole point of this is to motivate yourself so you are encouraged to complete your plan.

If things get too tough, use debt management as your way out of debt. You will be helped by a debt counselor who will assist you throughout the whole process.

Change These Habits To Make Debt Consolidation Effective

April 4, 2013 by arizona

Debt consolidation, while it is an effective debt relief option will have to be partnered with the right attitude to be effective. It usually just involves practicing the right financial management skills and making wise spending decisions.

One of the habits that you need to change is your fear of debt. There is nothing that you can do about it but to face the problem that you created. There is no use running away from you debt because ignoring it will only cause it to grow. The longer you fail to settle your debts, the bigger interest you have to pay for it. Not to mention the late penalty charges that will be put on top of it. This is especially true for credit card debts. Find out how much you owe and make the decision to commit to your debt consolidation program.

The next habit that you have to change is to stop acquiring more debt. If you have to change your lifestyle to do that, then go for it. Keep your credit cards so you will not be tempted to use it again. While it is very convenient, it is notorious for helping you rack up a huge amount of debt. Unless you are sure that you can control yourself, store your cards in a place where it is difficult to access.

And if you got used to buying things on an impulse, you have to change that and plan every little expense that you will make. Set up a budget so you can maximize your debt payments. A budget plan will help you monitor where your limited income goes to. Categorize your expenses and set a limit for each. Make sure you keep your budget realistic so it will not be difficult to follow. You will realize how much stress will be relieved from your mind once you have set up a system that will allow you to have an overview of your finances. Sometimes, all it takes is the feeling of being in control of the problem. That gives you the insight as to how you can best pay off everything that you owe. And even when you have finished paying off your debts, this is one habit that you need to continue practicing.

Your budget will help you change another habit that debt instilled in you – spending more than what you can really afford. You need to start living within your means so you can stay out of debt. This coincides with the lifestyle change that you will be forced to do. While it may be scary at first, you will find that there are cheaper substitutes to what you used to enjoy.

Lastly, make a list of your wants and needs. The habit that you need to change here is making excuses to promote your want as a need. This will not help you. Stop thinking that your wants are really necessary for you to survive. You do not “need” a bigger TV and you do not “need” that spa treatment for your personal growth. Just say no to these wants and make better choices to keep your spending within your budget.

The debt consolidation program that you will use to pay off your debts will solve only one part of the problem. The other half will be solved by these habits that you will develop. They will all help you stay out of debt long after you have completed your debt payments.

Why You Need A Debt Counselor

March 26, 2013 by arizona

Hiring a professional to help with debt relief is not always necessary. It really depends on how deep in debt you are and your personal capability to control yourself. After all, you got yourself in this debt situation. If it got to a point when it becomes a problem, you know that you have to change something about how you live your life and how you spend your income. Being in debt goes beyond the payments. That is only part of the problem. Your biggest concern should be to make sure that you identify what caused it so you are never placed in the same situation ever again.

This is probably the reason why some people want help when it comes to solving their debts. Hiring a professional that will advise you and provide you with the guidance needed to stick to your payment plans is one of the best ways to get out of debt. While it will not be easy, it will be a lot easier than dealing with everything on your own.

One of the professionals that you can hire is a debt counselor. Here are the benefits that you will get from these experts.

First of all, you will benefit from their knowledge and expertise. Since you got yourself in this financial crisis, you want to make sure that you get an outside opinion of how you should have been handling your finances. A debt counselor can provide you with this. They will help you analyze your income and expenses and find a way to satisfy your debt obligations despite your limited resources.

You will also benefit from the negotiation skills of debt counselors. To make sure that your money will fit all your credit obligations, you may have to request for lower monthly dues from your creditors. The counselor can help you with this. They will not be emotionally attached to the whole situation and they can talk to your creditor with more presence of mind and calmness. They will not be easily intimidated and besides, they may already have an existing work relationship with your creditors. The chances of them reaching an agreement will be faster and easier to achieve.

Another benefit to gain from the service of a debt counselor is that they will be able to screen all the intimidating and harassing calls that would have caused you a lot of stress. They will take over all communications on your behalf. That way, you will be left in peace to grow your debt payment fund. You can concentrate on building up your reserves so that you will never be placed in the same financial crisis again.

A lot of benefits can be enjoyed if you get a professional to help you out. But remember, they can only do so much. The lynchpin will be how you change your ways. You need to follow what the expert tells you to do. You have to start making the right choices as to where your money should go so that you do not waste it on unnecessary expenses.