With the holidays being over a few months now, many of us are beginning to worry about, not only our extra pounds from stuffing our faces, but the over-spening that we indulge in around the holiday season; ESPECIALLY if the gifts we decided to splurge on showed up on our credit cards statements. That queasy feeling in your tummy isn't from toughts of that nasty eggnog your aunt Betsy made you drink, but from knowing that that credit card bill STILL has multiple charges from later November and December.
In a recent survey by Consumer Reports, 23 percent of all Americans will not pay off their holiday debt until March (right around now!) or even later. This debt interest is estimated to equal roughly 14 billion! Over 25% of Americans rely on credit cards most often when holiday shopping, which contributes to roughly 63 billion charged on credit cards throughout the holiday shopping season.
The average American household has racked up at least 9K in debt already, and the over-use of plastic during the holiday season can be catastrophic to the average family's financial well being.
Isn't it time to come through on that resolution to get, not only physically, but fiscally fit as well? Here are a few good suggestions to get that credit back on track and out from under that looming debt:
1) Stop using your f-ing credit card so much! We all know credit cards can be very tempting, so consider just cutting those dirty mother-funkers up. Close your newer credit card accounts altogether, but make sure to keep those older credit card accounts active, since they may offer you a better interest rate for being such a loyal sucker over the years. Also, if your credit card balance is higher than your checking account...you're screwed! :) Just kidding... But seriously, it may be time to completely abandon the plastic until the amount can be paid in full.
2) One word. Budget. If your current income doesn't cover the old CC payments, then it’s time for a little sacrifice. Track your spending and make sure you count all those little extras like that $4.00 Venti Chai or that $3.00 Combo Meal. Those little buggers can really add up. You’ll be surprised how your cash flow will dramatically increase by skipping the Starbucks fix or packing your lunch like mom used to do for you.
3) eBay baby! Simply put, sell your junk and make some money! There are many companies out there that will actually photograph & list your crap online, and once sold, ship your item for a small percentage. It doesn’t get any easier than that folks. Take that extra dough and make a nice big payment on one of your credit cards. Killing two birds with one stone, priceless.
4) Roll up your sleeves and negotiate a lower rate. Just think: one call to your CC company can often times lower your interest rate substantially, which will help you to brake the shackles of your credit card debt at a much faster rate. The credit card industry is ultra-competitive and they'll more than likely haggle with you, especially if you've been paying your minimum payments on time habitually.
5) Save! Save! Save! Consider opening up a high interest savings account and put away as much as possible. Start by taking $10 to $20 from your normal paycheck, stash it in a high yield savings account, and by year’s end, you'll have saved $500 to $1,000! That extra cash can be used for credit card payments or even for holiday gift buying (now that's thinkin' ahead!). Using these funds for holiday spending, you won’t be so weighted down when January rolls around again next year.
Tuesday, March 27, 2007
Friday, March 16, 2007
Debt Consolidation? Yay or Nay? ... YAY!
There are many reasons why debt consolidation is an extremely helpful way to reduce your debt, take control of your financial situation, and help you lead a life of financial stability.
Oftentimes, individuals incur too many separate bills and loan payments, which lead to many different payments during a given month. The individual may be able to afford the monthly payments; however, remembering to pay all of the payments on a consistent basis can be a difficult task in today’s busy world. A missed or late payment may result in an increased interest rate or monthly payment, late fees, and can even damage one’s credit report. A debt consolidation loan could be your answer; since it takes all debt acquired by different creditors and combines them into one consolidation loan resulting in a single reduced monthly payment. Another option is to hire a third party service provider or a consolidation agency to negotiate with your creditors and handle your payments on your behalf. By allowing an agency to manage this, you get the benefits of only having to make a single payment to the agency once a month, a reduced loan, a lower interest rate, as well as late fees and other charges waived. This fundamentally leads to the individual saving their money, thus increasing future financial freedom.
Another reason why debt consolidation may help you gain the financial prowess you have always dreamed of is extremely high monthly payments for either loans or credit cards that are too difficult to maintain. A high interest rate increases the borrower’s monthly payment, as well as an abridged repayment plan, or even a high loan amount that makes the monthly payment unattainable. By choosing a debt consolidation loan or program, debt negotiators may be able to help you achieve a fixed interest rate, a flexible loan, or a revolving credit plan at a better interest rate. All of these possible results can aid in the reduction of your monthly installments as well as extend your repayment schedule, leaving you with more money at the end of each month.
A debt consolidation loan or a debt consolidation agency can also be helpful if an individual possesses a high number of outstanding loans with differing due dates as well as contrasting end dates. Getting approved for a consolidation loan, once again, will aid in repaying multiple loans that now share one due date and one end date as well as enabling the borrower to deal with just one lender. By hiring the services of a debt consolidation agency, you get the benefit of the agency negotiating new repayment programs with corresponding due dates and end dates on your behalf. These options will help you gain control of your finances by providing one loan due date and end date or a more collective group of due and end dates, which will enable you to budget accordingly and give you the exact timeframe for when your debts will be completely paid off.
Debt consolidation offers many advantages to help you reach financial freedom and it is far less damaging than declaring bankruptcy. You will be able to manage your finances with better accuracy, which will lead you to a more secure financial future.
Oftentimes, individuals incur too many separate bills and loan payments, which lead to many different payments during a given month. The individual may be able to afford the monthly payments; however, remembering to pay all of the payments on a consistent basis can be a difficult task in today’s busy world. A missed or late payment may result in an increased interest rate or monthly payment, late fees, and can even damage one’s credit report. A debt consolidation loan could be your answer; since it takes all debt acquired by different creditors and combines them into one consolidation loan resulting in a single reduced monthly payment. Another option is to hire a third party service provider or a consolidation agency to negotiate with your creditors and handle your payments on your behalf. By allowing an agency to manage this, you get the benefits of only having to make a single payment to the agency once a month, a reduced loan, a lower interest rate, as well as late fees and other charges waived. This fundamentally leads to the individual saving their money, thus increasing future financial freedom.
Another reason why debt consolidation may help you gain the financial prowess you have always dreamed of is extremely high monthly payments for either loans or credit cards that are too difficult to maintain. A high interest rate increases the borrower’s monthly payment, as well as an abridged repayment plan, or even a high loan amount that makes the monthly payment unattainable. By choosing a debt consolidation loan or program, debt negotiators may be able to help you achieve a fixed interest rate, a flexible loan, or a revolving credit plan at a better interest rate. All of these possible results can aid in the reduction of your monthly installments as well as extend your repayment schedule, leaving you with more money at the end of each month.
A debt consolidation loan or a debt consolidation agency can also be helpful if an individual possesses a high number of outstanding loans with differing due dates as well as contrasting end dates. Getting approved for a consolidation loan, once again, will aid in repaying multiple loans that now share one due date and one end date as well as enabling the borrower to deal with just one lender. By hiring the services of a debt consolidation agency, you get the benefit of the agency negotiating new repayment programs with corresponding due dates and end dates on your behalf. These options will help you gain control of your finances by providing one loan due date and end date or a more collective group of due and end dates, which will enable you to budget accordingly and give you the exact timeframe for when your debts will be completely paid off.
Debt consolidation offers many advantages to help you reach financial freedom and it is far less damaging than declaring bankruptcy. You will be able to manage your finances with better accuracy, which will lead you to a more secure financial future.
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