Thursday, January 31, 2013

Power of the Mind: The Best Approach to Debt Relief

In the book entitled “The Seven Habits of Effective People” by Stephen R. Covey, he mentioned one interesting habit that can prove to be useful when getting out of debt: begin with the end in mind. This particular habit implies the power of our mind. If you want something so bad, visualize it and you will find that everything about you will start gravitating towards it.

For anyone who had been in debt or is still battling to get out of it, you can attest to the fact that there is nothing in your mind but how much you still owe. The constant calls from your creditors make it even more difficult to concentrate on other things. When you lie awake at night, losing sleep over your credit obligations, you know that you need to change something.

While finding a debt relief option to help you out of your situation is important, you need to realize that setting a goal should be your first step. For instance, your goals could be to be debt free in 5 years. Or it can be financial freedom in the same time frame. It has to be something specific. Your goal has to be something that you want to happen to your life, a dream or an aspiration.

Once you have defined your goal, you need to envision it and keep it in your thoughts at all times. The book mentioned that things are actually created two times. The first creation happens in the minds while the second creation is the physical one. By putting in your mind what you want to happen or what you want to achieve, you are connecting the mental to the physical.

The reason why this is important for your debt relief efforts stem from the fact that getting out of debt is highly influenced by your attitude towards it. No matter how effective the program is or experienced the debt relief professional that you hired, if you cannot commit to it, then you are fighting a losing battle. Either that or it will be extremely difficult to get out of debt.

When you begin your day with the end in mind, you condition yourself to act based on what is in your thoughts. If you think about being debt free, then your mind will condition your body to work towards that goal. It will be easier to correct bad spending habits and stick to the budget that you created for yourself. Living a frugal life will not be a problem because your mind can easily adapt around this lifestyle.

When your mind is focused on your goal of achieving a debt free life, you will be surprised at the expenses that you can let go and the habits that you can change.

Wednesday, January 30, 2013

How to Get Your Small Business Out of Debt

In the general sense, small business debt is similar to consumer debt. In fact, if you are the sole proprietor of your company, then your personal finances is oftentimes linked to your business. In most cases though, the debts incurred by a business is greater than that of the average consumer. Also, you may find that the debt relief process is a bit different.

Almost all types of business is in debt, one way or the other. However, it becomes threatening if you observe your debts are continually growing without any hope of paying it off. If your revenues are not showing signs of improvement and your overhead can no longer be lowered, then you know that you are in trouble. It may be time for you to consider looking for a debt relief program to help you out.

When you have incurred a significant amount of small business debt, it means a couple of things. One of them is having your revenues fall short of your expectations. If you borrowed your capital money, that may have rendered you unable to meet your payments. Another reason for getting into debt is having your overhead expenses exceed your profits. Or your product may not be performing as much as you want and you have exhausted your funds on marketing campaigns.

Before you call your lawyer to refer you to a bankruptcy lawyer, consider your alternatives first. If you think that eliminating your debt can keep it afloat, then the solution to your financial problems is a small business debt relief. There are ways for you to salvage your business without getting the 10-year stigma that bankruptcy usually has. This is a double edged sword for sole proprietors too because their personal finances may be affected when they file for bankruptcy.

But before you choose, analyze how much you can afford to set aside for debt payments. Some business owners choose to get a bigger loan to pay for the smaller ones. The goal is to stretch their debt over a longer period. That would mean a smaller monthly payment that may help redirect funds into other expenses that can help increase profits. If you think that you don’t have enough to cover your debt payments, debt settlement is also another option that you can take. It involves settling with the creditor so they agree to let you pay for a percentage of your business’ debt. After that payment, they will forgive the rest of what you owe.

Regardless of what debt relief option you will choose, make sure that you study your business plan carefully. If you are just starting out, you may want to reconsider your processes. Maybe there is a different business model that can allow you to lower your overhead expenses. Not only that, you should also consider if your product or the service that you are selling is really marketable. If not, you may have to change that altogether. These are only a few of the things that you should consider to get your company out of debt. Just like in consumer debt, you need to go to the source of the problem so you don’t get into the same situation again.

Tuesday, January 29, 2013

Do You Need Debt Counseling?

Being in debt can be a nasty situation to be in. Not only do you have to face the embarrassment of admitting that you failed at your finances, you also have to deal with the disappointment that your loved ones will feel.

While the beginning will definitely be tough, making the decision to work on getting out of debt will make the situation better as you go along. It will not be easier, but the feeling of paying off your debts slowly will encourage and lift your spirits up. There is nothing more motivating than seeing your debts get smaller each month you send in payments.

But the question is, how do you get out of debt effectively?

Debt counseling is one of the many options that you can avail. While there may be a lot of selections, you need to base your choice on your financial capabilities.

If you are able to pay for the minimum of your debts and you do not want to have too much effect on your credit score, then debt counseling is the right path for you. This type of debt relief will put you in the hands of a credit or debt counselor that will assist you throughout the whole process. The great thing about having this assistance is they will analyze your finances for you. The counselor will help you come up with a debt payment plan - and make sure that it is based on an amount that you can afford.

This payment plan will stretch your term longer - usually around 5 years. The aim is to make your monthly payments smaller so you have more extra for your day to day needs.

The debt counselor will also help send your payments to creditors. That way, you will not miss out on any payment. You only have to send the total monthly payment and the counselor will distribute the appropriate funds to their respective creditor recipient. Because that particular task had been lifted, you can concentrate on making sure that you meet your debt payments and if possible, increase it so you get out of debt faster.

While it is not a guarantee, your debt counselor will try to negotiate for a lower interest rate. If possible they will also try to have any penalty charges waived off. But this should not be guaranteed to you upfront just to entice you to get their services. If they are not able to deliver, that will make them in violation of the Telemarketing Sales Rule (TSR) that prohibits any debt relief company from making false promises. So be very careful of your choice of company.

All in all, you may find that debt counseling is a great option. However, take note of the qualification on the income. You need a steady and stable source of income to be able to afford your payments. Otherwise, you may have to choose another debt relief option.

Monday, January 28, 2013

Do-It-Yourself Credit Card Debt Settlement Tips

Settling your own debts, especially credit card debt is no easy feat. However, it is doable. If you think that you need to hire a professional debt settlement company to help you out, that will depend on whether you can take the stress or not.

Truth be told, dealing with creditors and collectors can be very frustrating, stressful and downright intimidating. If you understand what debt settlement entails, then you know that it involves defaulting on your credit card payments. That will surely agitate your creditors enough to start making frequent calls.

If you are intent on saving the money for the service fees, then you need to do one thing first: research. Any debt relief option that you will take should be undertaken with a level of education. Know your options. The benefit of a debt settlement company is they have the expertise and experience in handling creditors. The absence of these qualities require you to do your own exploration so you know what you are up against. That can only be done by careful research.

One of the things that you need to read about is the FDCPA or the Fair Debt Collection Practices Act. Creditor and collectors can get really intimidating. While they have every right to collect from you, they are bound by several rules to make debt collection fair and just. They cannot threaten you with jail time or harass you with calls anytime of the day. They are also prohibited from calling you in the workplace - especially if you requested them not to call you there. If you want to negotiate with them, you need to know what they are capable of doing. The FDCPA will give you all the answers to this.

Another tip when doing your own debt settlement is to keep mentioning bankruptcy. Your creditors, while they are capable of suing you in court for what you owe, are actually afraid of bankruptcy. If you have nothing to liquidate (no house or car or any valuable possession), then the chances that they will not get anything is more likely. This will make them more inclined to accept your settlement offer.

Try to be very patient when you are talking to your collectors. Remember that they are only doing their job and you have the responsibility to pay off your debts. It may be true that you did not ask for your current financial crisis - but neither did your creditor. So be patient, kind and try not to lose your temper. Sometimes, you get the best settlement deal if you remained cordial the whole time.

Lastly, make sure you record every communication and agreement in black and white. Never send payments if you do not have a written copy of the settlement agreement. You need to have proof that they agreed to your proposal. A verbal consent or acceptance will not hold much value - unless you were able to record the conversation.

Of course, if things get too complicated, go for a professional debt relief company. They can assist you by handling all the calls for you. That makes concentrating on debt payments easier to handle.

Friday, January 25, 2013

How to Enjoy Abundance Through Frugality

It may sound like a complete contradiction but it is possible to live an abundant life despite your efforts to be frugal. In truth, abundance is not always associated with material things. We only began to associate it with that as we started to get dependent on material things.

All it takes is a different perspective to feel that you have more than you will ever need. Did you know that happiness is actually a state of mind? What makes you happy revolves around certain perceptions that we have about life. We only think that we are happy when we spend a lot of money because that is what we have grown accustomed to. But if you take that away, you will be surprised at the things that you discover will also bring us much happiness. Believe it or not, there is truth in the cliche’ that the best things in life are free.

What need you of all that extra money if your children grow up to be very distant from you? All that time you chose to spend away from your family at the expense of your personal relationship may not be worth it in the end. At the end of the day, those expensive toys and sophisticated gadgets will only be broken and will be long forgotten. But that traditional walk in the park and your constant presence in their lives will be something to remember.

Having just about enough will make you feel abundant if you positively think that it is so. Instead of focusing on the things that you do not have, why not be thankful for the things that you own?

If your budget is not enough to cover for your expenses, then be realistic about it and pull your lifestyle down a notch. Spend only what you can afford and start living within your means. This is where frugality comes into play. Avoid buying things just because society dictates certain trends. Trends fade and get replaced by even more expensive items. Do not be part of the trend unless you have a real need for it.

Create a budget so you can categorize the “needs” expense and the “wants” expense. Prioritize your needs and keep your wants short. Be aware of the things in your life that is really important. For instance, a very expensive vacation is not as important as your children’s education. Why not save half of what you would have spent on their college fund and spend vacation on a cheaper venue? Your kids will definitely appreciate the gesture of saving for their future.

Ultimately, feeling abundant despite the practice of frugality involves defining what role material things play in your life. As mentioned, it is all in how you perceive things. If you believe that your money and the things that it can buy will increase your personal worth, then you are mistaken. Sometimes, having a big home does not define personal fulfillment. If it makes you unhappy because of the mortgage debt associated with it, then it will not feel so abundant after all.

Money is only as good as how you spend it for your personal growth. If it is to boast, then you are missing the whole point of being abundant. Aim for monetary growth but not at the expense of the things that really matter. Being frugal goes way beyond what you spend on. It is in making sure your spending decisions are according what will make your living worth your while.

Find out more about money matter especially when you are in debt. Click here.

Thursday, January 24, 2013

Planning Your Household Budget this 2013

Want to develop new habits for the new year? Your household budget should be a great place to start.

There are various purchases in our household that we have grown accustomed to. However, when your finances are tight and you need to squeeze every bit of savings in order to afford your debt payments, then look for changes that you can implement at home.

It helps to sort through your bills first. Look at your utility bills and think about where you can save more. There are old appliances that do more harm than good in terms of energy consumption. Compute if that old bulky TV can be replaced by the slim LED or LCD TVs. In most cases, the slimmer models consume 50% less than the old and bulky ones. A lot of refrigerators and air conditioners are made to be energy efficient too. Even light bulbs should be bought with the energy efficiency in mind.

Check out cable subscriptions that you do not need. Even magazine subscriptions are no longer needed as everything can be viewed online. Not only will it save you extra money, it also decreases the possible litter at home.

Bottled water is also something that you may want to rethink. Did you know that the average household spends an estimate of $300 on this product alone? Think about how much you can save in the long run if you just invest in a good filtering system for your home. Once that is in place, you only have to replace the filters 4 times year - as opposed to buying bottles of water time and again.
While coupons can help you save in your everyday purchase, you need to choose them wisely. Some people misinterpret the use of these discounts. Purchase coupons that you know you will need immediately. A lot us take advantage of the promo even if we know that we do not need them. What happens is we see a discount for a detergent that we want to buy when in fact, we still have a lot at home. We keep the coupon for a later purchase only to forget about it. When we remember it, the coupon is no longer valid. Be sure that you do not spend unnecessarily for coupons that could expire on you. Instead of saving, you may rack up expenses that you end up not benefitting from.

Yet another way to tighten that household budget is to take care of your appliances and even your car. Make sure you maintain them and check them regularly. Taking care of minor problems could save you the huge expense needed when the whole thing breaks down.

It can be quite tedious to track each and every expense but when finances are tight, you don’t really have a choice in it.   Learning the right way of managing your household finances can affect not only your debts, but your future as well. These changes can get you that money to grow your savings too! Find out more about how you can manage your finances wisely. Click Here.

Wednesday, January 23, 2013

Emerging From the Recession with Better Financial Habits

If there is one thing that we got out of the recession, it is the realization that good financial habits can save your future. When things go bad and the economy in general is on a downward spiral, proper financial management can keep you from going down with it.

Here are some of the financial habits that a lot of us learned out of the recent economic crisis.

Value of a supplemental income. This does not only mean a second job. Working two jobs when you don’t have to can be tiring and no one wants that. However, you need to understand that you need more and one source of income. That means you should save up so you can set up a passive income generator.

Savings go a long way. This is where a lot of people are having trouble applying. They would rather enjoy the extra money that they earn. While you have every right to do so, you should be wiser to put aside money for the rainy day. There are two things that you should save up for. One is your emergency fund. This is the money that you will strictly keep your hands off and use only for emergencies. The other savings is the one that you can use for big purchases. If you want to buy a new appliance, save up for it. That is a lot better than using your credit card and putting yourself further into debt.

Finding cheaper alternatives. When most of us found our extra money diverted into our debt payments, we lost our ability to spend for our usual entertainment activities. Despite that, we found ways to enjoy life despite the lack of finances. We learned how to make use of the free facilities in our community centers. We also found better alternatives that will allow us to socialize without spending as much as we used to. For instance, a backyard barbeque is a great option to keep seeing friends.

In essence, frugality gained a renewed importance after the recession. It used to be something that we stay away from because we wanted to enjoy life. Now, we view it differently because we realized how this lifestyle can save us from another economic crisis.

Click Here to find out how you can manage your money effectively to stay out of debt for the rest of your life. You can benefit by learning money management tips from this link:

Tuesday, January 22, 2013

Guide to Building Your Household Wealth

When you are going through debt relief, there are many things that you need to change about yourself. On top of the list is how you spend your income. You need to come up with a budget to understand where every penny goes.

Most of your monthly expenses go to your household. Because of that, this is a great place to begin. You need to try and grow your household wealth by simply spending less. Here is a list of areas that you usually spend on.

First of all, look at your housing expenses. If you are renting a 4 bedroom house and there are only 3 of you (couple and a kid), then you can fit in a 2-bedroom apartment. That will be a lot cheaper on your budget.

Another area that you can look into is your food and groceries. While food should be last on your list when it comes to restriction, you need to consider how you spend it still. For instance, you can base your meals on the promos and discounts in your local grocery store. You can also utilize your backyard to grow your own produce.

For your groceries, you don’t really need those branded detergents. As long as they can clean your clothes and various crevices in your home, then it should work just as well. You can also consider using coupons for things that you need around the house. A helpful tip in controlling what you spend in the grocery is to make a list of what you need to buy and sticking with it. Try to break the habit of going from one aisle to the other without knowing what you really need. That leads to unnecessary expenses.

It also helps to sift through your bills and see what expenses you can cut back on. Inspect your cable subscription to check if you are actually able to use all the channels. If not, you may want to change your subscription.

Your car expenses is also worth looking into. Try to keep up with the regular maintenance checks to avoid the more expensive costs involved when your car breaks down. If your car consumes too much gas, sell it and buy a second hand car that is more efficient in terms of consumption. You should also read about proper driving techniques that does not burn out gas too much.

Entertainment expenses are something that most people have trouble giving up. If you notice, most of the expenses on this list are wants. Since they are not really “needs”, you can live without them. But that does not mean you should take the fun out of your life. You only have to look for more cost efficient ways to entertain yourself.

Ultimately, wise spending habits begin at home. If you can build your household wealth, you will find more of your income freed for your debt payments. That will help you get out of debt a lot faster.

Each situation is unique so it helps to find a debt relief company that can assist you in your debt problems. You can get the expert advice of a debt professionals who can look into your financial situation to provide a tailor fit program that you can follow. To learn more, visit National Debt Relief.

Monday, January 21, 2013

Tips to Get Out of Credit Card Debt

Getting out of credit card debt is not as easy as acquiring it. You need to exert a huge amount of self discipline and control. The very nature of credit cards make them an easy temptation to fall into. As long as you do not mend your bad spending habits, you may find yourself unable to cope and get out of this type of debt.

A lot of debt relief companies offer services that will help you conquer your debt problems. While they can certainly make your life easier, fact remains that they are only as effective as your attitude towards the whole debt payment effort. So if you want to solve your credit card debt, with or without a professional, here are the things that you need to do.

First of all, stop using your cards. At least if it is not necessary. We only use our cards if we do not have the cash to make a purchase. That is a good reason not to use it! If you don’t have the cash, that means you cannot afford that purchase. You need to learn how to wait until you have the finances to pay for something immediately. You need to break the habit of relying on your future income for purchases being made at present. If you want to use your cards for the reward points, make sure you still have the cash on hand so you can set it aside to pay your card bill once it comes in. This is a great way of training yourself to live within your means.

You also have to take time to read through the fine prints of your credit card contracts. Make sure the card that has the most balance is the one with the least interest. If you find that you have them on the high interest rate cards, then find out how you can transfer your balance. Just make sure you know about the balance transfer fees and be wary of promotional offers. Research first and ensure you understand the whole process.

Another tip in getting out of credit card debt is paying more than the minimum requirement. This is a great way to shorten your payment period and eventually cutting back on the interest amount that you will pay for. Of course, this is only applicable to those who have a stable income with enough extra to cover more than the minimum payments.

If you cannot cover the minimum payments, enrol with a reliable and legitimate debt settlement company. They can help you reduce the balance on your debt so you only have to pay a portion of it and have the rest forgiven. Read about it by visiting this link:

Sunday, January 20, 2013

Grow Your Disposable Fund Through These Supplemental Income Tips

Debt becomes very stressful when we do not have enough disposable funds to afford the minimum payment requirements. But before you lose hope, there are ways for you to grow your income so you can meet your payments.

One of the best ways to achieve real financial security is to have two income sources. Apart from your day job, you can set up another source that can support any extra expenses that you need to spend. The security of this arrangement lies in the fact that if you lose your day job, you still have another source to get funds for your daily expenses.

Also known as a supplemental income, this will serve as an additional cash source. At the moment, it can help you get out of debt faster. When you are debt free, it can help grow your emergency fund - or finance the things that you want to buy. You want to develop the habit of paying for everything in cash so you are forced to live within your means. This income can help put that into reality.

A lot of great supplemental ideas can be done online. You can take up stock photography, for instance. By taking random photos, you can hone your photography skills and at the same time, earn from it. Allot one afternoon to go to a scenic spot and take photos. Select the best ones and upload them online. Images are needed for a lot of things: content, articles, web design, presentations, newsletters and other things.

Another great supplemental income idea is being a blogger. You can work as a personal blogger or a more professional affiliate marketer. Simply promote a specific niche and find companies related to that. Apply for their affiliate program and put their links all over your blogsite. Every click or successful sale from a visitor that came from your own will generate traffic for you. Once you have set this up, you can focus your attention on growing the traffic on your site.

It is also a good idea to tap into a skill or talent that you have. If you know how to cook, offer to cook for family and friends when they have intimate parties. Or you can bake goodies and sell them on the weekend market. You can also set up an online site and get orders from there.

There are endless opportunities to earn supplemental income - just be patient and find out what you want to do with your spare time. Try to chose one that you love to do - just so it won’t feel like work when you are doing it.

But if your income is still not enough to pay for your debts, you can always opt for debt settlement that will help reduce your debts. There are other debt relief alternatives that you can look into. Know your options and see if they can be supported by your current financial capabilities.

Saturday, January 19, 2013

How to Grow Your Website’s Income for Debt Payments

There are two things that will urge you to earn more. One is when you plan on purchasing something very expensive. The other is when you are deep in debt.

If you have to earn extra, you would want something that will require as little time, effort and investment to manage. This is where websites can come in handy.

There are many ways for you to generate income through a website. Teaching you how to make one is an entirely different lesson so we will focus first on how it can earn you money. One thing that you need to understand is you do not need to be a technical genius to accomplish this. You can create your website very easily.

One way to earn through your site is by putting advertisements. There are endless opportunities and different variations to earn through online ads. You can choose pay-per-click or PPC ads. The easiest way is to enroll in a Google AdSense account and they will automatically send relevant ads to your site. When a visitor on your site clicks on an ad displayed in one of your pages, you will earn commissions for that. There is also the cost-per-mille or CPM that measures your commissions based on impressions - not just clicks. Text link ads, RSS adverts, and even renting out ad space can be other alternatives to earn from online advertisements.

You can also try affiliate marketing. This involves a simple blog site where you will post articles that are relevant to a certain product or company that you are affiliated with. You can do a direct promotion of that product. You can also come up with a series of articles that will showcase and highlight the positive qualities of the company you are affiliated with.

Relative to the previous idea, you can create product review sites. Before anyone buys anything online, they usually want to read product reviews. This is something that you can use to earn too.

You can also use your website to sell digital products like ebooks, tutorials and other self help manuals. If you are skilled at something, take time to make a video tutorial or write your tips and ideas. Sell them for a good price. This is a great passive income generator.

If you are skilled at anything, you can also sell products that you made yourself. A painting or a woodwork that you created as a hobby can be sold online for a good price. You could make a business out of that.

Anything is possible if you are just creative enough to figure out your options. For someone who wants to get rid of debt, this is a great option to get to your goals faster. Once you figure out how you will earn from your site, you can proceed to create one and start driving traffic into it.

Friday, January 18, 2013

Signs You Need A Professional To Settle Your Debts

Debt settlement is one of the riskiest debt relief options. The aim of this program is to negotiate with your creditors or collectors to believe that you are in a financial crisis. The intention is to get them to agree to a settlement amount that is much lower than your outstanding balance. Once you have finished paying off this amount, the rest of your debts will be forgiven.

However, you need to realize that the success of your program relies mostly on the creditor/collector. Despite your best efforts, they may not be willing to reduce your
debt. Because of this, you need to be open minded about hiring a debt settlement professional to help you out.

Here are the signs that your DIY debt settlement efforts are not working and you need to start looking for an expert before you continue.

One of the obvious reasons to hire a professional is when you cannot understand how the whole process works. If you have tried to communicate with your creditors/collectors and you seem to be getting nowhere, then it may be best to get someone who knows how it should all go. Try not to dive into this alone if you do not know how to stay afloat. You could end up drowning in your debt as it increases due to late penalty charges (as you will default on payments after all).

In a DIY settlement program, you will try to cut back on your expenses or grow your income in order to grow your disposable fund. This fund is what you will save and grow as the settlement fund that will be offered to your creditor. If this amount is not sufficient, then you may want to ask the help of a debt relief expert. They may be able to point out expenses that you do not really need or they can help negotiate for a hefty reduction on your debts.

If you find that doing your own debt negotiation is stressful, you can unload it to someone who is not emotionally attached to your financial situation. One of the service that will be provided to you by debt settlement companies is taking over collection calls. Relieve yourself of the stress so you can concentrate on growing your settlement fund. If anything, they can help urge you forward even if the creditor gives you NO as their first answer (something that is not unlikely to happen).

Debt settlement is one of the best debt relief options for people with a high debt to income ratio. While it is possible to do this on your own, you should definitely heed the signs indicating that you need professional help. If you wish to try out a debt settlement company, get to know National Debt Relief. The first consultation is free so you have nothing to lose when you call them.

Thursday, January 17, 2013

Alternatives to Bankruptcy

Bankruptcy is a scary option so as much as possible, you may want to look for alternatives that will steer you away from it.

Truth be told, there are financial situations that can only be solved by bankruptcy. It will, after all, provide you with a speedy release from your credit problems - at least if you qualify for a Chapter 7 bankruptcy. Filing for this is best for those who has little income or has most of it going to their basic necessity expenses.

However, even if you fit the perfect description of someone who can get a Chapter 7 bankruptcy, you need to approach it with great caution. If you want to escape the stigma that only bankruptcy can bring, then you may want to work a bit harder on your debt by opting for another debt relief program.

The obvious alternative is to grow your income or cut back on your expenses so you have more money to allot to debt payments. The idea is to grow your disposable income. This is probably harder because you will either work longer hours or deprive yourself of the things that you got used to. Getting out of debt really requires some form of sacrifice so it all boils down to how much you can really give up. Some couples end up having the husband working 2 jobs while the wife stays at home to take care of the kids and household chores alone. Some are lucky enough to stumble upon a passive income that provides them with a significant addition to their monthly cash flow.

If your efforts to increase your disposable income is not possible, then hope is not yet lost. You have options like debt settlement that will help reduce the outstanding balance on your credit account. This can be done through proper negotiation with your creditors and proving to them that you are in  a financial crisis. This option can damage your credit score because the whole process involves defaulting on your payments deliberately. However, that decrease will not be as significant as bankruptcy.

Check the reasons why you want to go through bankruptcy. If you just want to stop your creditors and collectors from harassing you, then you should read about the FDCPA or Fair Debt Collection Practices Act. It will educate you on how you should be treated and your rights as a debtor and consumer.

Apart from these alternatives, there are other debt relief options that you can utilize. Know what they are and find out the best program that can help relieve you of your credit problems. Go to National Debt Relief for more information.

Wednesday, January 16, 2013

What Are Your 2013 Debt Resolutions?

We all want to start the year right. The new year always brings forth the feeling of starting anew and being able to make planned changes happen. If you haven’t done your resolutions yet, it is not yet too late. After all, we just a couple of weeks into the new year.

One of the things that you should try to aim for are financial management skills. This is especially true if you are currently struggling with debt. To help you, here are some debt resolution ideas that you can implement.

If you are indeed, deep in debt, you may want to consider a debt relief program. There are several to choose from. Of course, it will depend on your financial capabilities. If you have a steady income and you can pay for the minimum of your credit obligations, debt consolidation is a great program to pursue.

When you have selected the program that your finances can afford, your next resolution is to find someone who can help you. No one can accomplish getting out of debt alone. You need someone who will throw you a rope from the top of the pit that you fell into. It can be a family member, your parents, your spouse or your children. It can also be a debt professional like National Debt Relief. Whatever you decide, choose someone or a company that you can trust and is willing to work with you till the very end.

Another resolution that you can work on is learning how to spend within your means. This is easy to understand yet very hard to implement. You can begin by making the decision not to use your credit card. If you pay for most of your purchases in cash, you won’t have to acquire debts to get something you want. To help you achieve that resolution, create a budget plan and make a commitment to stick to that. This will help you identify where your money is going and how much you can afford to spend for the fun things in your life. It will keep you from overspending.

Lastly, you should learn how to save and grow your emergency fund. This will help you stay out of debt by making sure you have more than enough even when your major source of income is gone. That being said, you need to discipline yourself to buy only the things that you need. Try not to give in to your usually spending whims and think about every purchase carefully.