Category: Financial Planners

By Jim Vrana

Overwhelming credit card debt is a very common problem for many American consumers. Too many people just continue to pay their monthly minimum payments without any knowledge that their debt burden may never go away.

When a person comes to the realization that they are caught in an endless cycle of debt, they may then admit that help is needed. What people may not know is what kind of help is available, and how to find it.

Understanding all of the options to relieve themselves of debt can be very confusing. Choosing the best plan of action can also add the stress caused by the debt in the first place.

One option is debt management. A debt management company will attempt to work with your creditors to lower the interest rates and waive any fees, such as over-the-limit fees and late fees. Please notice the words “attempt to”. There is no guarantee that the creditor will agree to lower the interest rate or waive any fees. Interest rates may actually increase when a credit card company is informed of a financial hardship.

With a debt management program, your budget will be analyzed to determine how much money per month you can part with to pay down these debts, and initiate a plan to make regular payments to your creditor for a specific dollar amount. Once your creditor sees a pattern of regular payments reducing the principal balance, they may agree to lower the interest rates even further.

For a debt management program to be effective, the debt should be paid off within five years. You must be able to continue to make the regularly scheduled payments. Keep in mind that interest will continue to accrue, so your payments are not all being applied to the principal balance. Part of the payments will continue to be applied to interest, as well as any monthly fee charged by the management company.

The debt management company should provide you with an amortization schedule, showing the amount of principal and interest you will be paying each month, month after month. With this schedule, you will be able to see exactly the amount of time it will take to be debt free under the payment plan. Even this schedule can change due to adjusting interest rates, missed payments, or extra payments. If the management company cannot provide an amortization schedule, perhaps you should look for a different debt management company.

If you cannot work out a plan to have the debt paid off within five years, a debt management program may not be right for you. One option to consider is a debt elimination program.

A debt elimination program will allow a person to legally walk away from 100% of their non-secured credit card debt, without bankruptcy, consolidation, or refinancing. A person can take advantage of this program just once. It’s kind of a financial “do-over”.

With a debt elimination program, a person can select which cards to eliminate, and which ones to keep. The eliminated cards can no longer be used. The ultimate goal is to learn how to live without credit cards altogether.

An elimination program does not perform its function overnight. A good program will have you debt-free in 6 – 12 months. It will also include an education on the credit card system, so that it is understood just how and why an elimination program can work.

Student loans, medical bills, and any secured loans do not apply to a debt elimination program. Only major credit cards, signature loans, and unsecured lines-of-credit are applicable. For these types of debts, a true elimination program may be the financial re-start people are looking for.

About the Author: Billed as

The True Debt Advisor

, Jim Vrana’s mission is to educate and empower people to overcome their financial challenges. The time-tested legal procedures used to eliminate credit card debt have been used by thousands of people with tremendous success. Contact: Jim Vrana True Debt Advisor (800) 637-1785

TrueDebtAdvisor.com

Source:

isnare.com

Permanent Link:

isnare.com/?aid=270694&ca=Finances

By Sean Goudelock

Finding yourself in the middle of a bad credit situation is not pleasant at all and some people would rather not acknowledge their indebtedness until it becomes too much to ignore definitely a bad decision. You do not want your bad credit to stretch out for a long period of time. The longer it takes you to fix your credit situation, the more resources it will require and the greater the possibility of you having to give up some or most of your assets. Some people who have left their credit situation to take a turn for the worse have been forced to leave their homes and sell their cars to be able to give something back to their creditors. This is entirely unnecessary if you pay attention to your financial problem right away as it is looming over you. You can fix your bad credit score with a bad credit loan.

Missing out on one or several of your loan repayments for even a short period of time can be a cause for alarm for your creditors especially when it has gotten to the point when they have to put their collection officers to the task of trying to call you up to make a payment. This flags you up for a bad credit rating and will make it difficult for you to avail of most other credit facilities and get approved for certain financial transactions. There are still, however, financial institutions that make bad credit loan facilities available for people who are unfortunate enough to fall into financial difficulty. You can use a loan consolidation facility for people with bad credit but, as you already are in bad light in as far as your creditors are concerned, it would not be possible for you to get rock bottom interest rates. In case you are having difficulties paying off your federal student loans, the national government has consolidation programs with certain concessions you can take advantage of in your attempt to fix your credit situation and improve your credit scores.

Once you have consolidated your bad loans in a bad credit loan consolidation facility or using a federal loan consolidation instrument, you have to make sure that you are able to meet your repayment terms or you will be in even deeper financial trouble than you started with in the first place. Carefully drawing up a sound and realistic plan, taking into consideration your cash flow and projected expenses, is the best way for you to deal with your situation and will give you a roadmap that you can follow. Loan consolidation as a solution to having bad credit serves to decrease the amount of regular loan repayments to match the borrowers cash flow. Being able to follow through with the required payments under your new consolidated loan contract will earn you more points towards your credit score, getting it back to more acceptable levels within a certain number of years of excellent payment history. With prudent money management and disciplined saving, you will be able to succeed in putting your finances back in order, with all your financial obligations properly allocated for in your income and perhaps a little more left to put towards future financial needs.

About the Author: Are you looking for more information regarding

bad credit loan

? Visit

loanconsol.com

today!

Source:

isnare.com

Permanent Link:

isnare.com/?aid=866636&ca=Finances