Credit Card Debt

Fastest way to become debt free

Fastest way to become debt free

Eleanor Simpson is a debt counselor for Franklin Debt Relief, the leading company in debt settlement programs for consumers.

Are you looking for the fastest way to become debt free? Bankruptcy is no longer the best option, since the 2005 overhaul significantly reduced the number of consumers who qualify for financial relief. Balance transfers or ten-year consolidation loans are not quick fixes either. You could always work another job or sell your possessions, but the extra effort and stress is often not worth the payoff. Fortunately you have access to experienced debt relief  professionals who will work with your creditors and can slash the amount you owe by up to 60%. Debt settlement services can help you become debt free in as little as 12 to 36 months. If you are behind on your credit cards, store cards, personal loans, etc. by 90 days or more, your creditors want money and they will settle to obtain it. Depending on your situation, you have two plans from which to choose: lump sum settlement or periodic payment settlement.

In a lump sum settlement, the debt relief service negotiates with individual creditors and collection agencies to find a
single, final payment that will end their harassment. This payment is typically 40 – 60% of your balance and completely satisfies the debt. A lump sum settlement typically takes four to twelve months and then the debts are marked as settled on your credit report.

The second option is a periodic payment settlement. In this scenario, your debt relief service still negotiates with your
creditors, but you will continue to make payments until the settlement threshold is met. This option is convenient for
people who cannot afford to make a lump sum settlement payment, but it does take two to five years to complete. A
periodic payment settlement is still a better option that attempting to make minimum payments on high-interest credit
cards to become debt free.

Working with debt relief services is the fastest way to become debt free. Use the experience of these financial professionals to navigate complex legal requirements and convince your creditors to work with you. By negotiating a simple settlement agreement, you can gain a fresh start to your financial future.


3 Tips For Making Your Debt Reduction Plan Work In 2011

One of the most popular New Year’s resolutions is to set a goal for getting out of debt. Sadly, it’s also one of the hardest to achieve. Not because it takes any special training or techniques. But because it usually takes a person many years to get deep into debt – and it will take a lot of time to get out, too.

But there are some very simply ways to improve your chances of making it work in 2011. Most importantly, if you come up with an actual plan to make your resolution come true, you’ll be way ahead of most people. You won’t get out of debt just by hoping it will happen. Or just by working a little harder at it.

If you follow these 3 tips, you’ll be much more likely to be able to cross “getting out of debt” off your wish list for 2011:

1) Attack smallest debt first, so you “see” results.

There’s nothing less motivating than having a goal and not seeing any progress. That’s why it is so important to work on paying off your smallest debt first. Commonly known as the “debt snowball” method the idea is to pay off your smallest
debt first, then when that is paid off take the money you were using for that debt and add it to the next biggest debt. And your payoff will start to grow much like a snowball or bottom of a snowman. The motivation from paying off the first debt should keep you going, even when New Year’s Day is long gone and your resolution long forgotten.

2) Write down a series of goals you can actually reach.

If you’re struggling with money it’s easy to think “I don’t need to write down my goals, I know money is tight and my credit card bills are a constant reminder.” But that’s the negative way to look at it. The positive way is to write down your goals and put them in a place you can see on a regular basis. And when you reach a goal – no matter how small – cross it off so you can feel yourself being successful. So that’s why it is critical to break down your goal into small steps (such as making each of your monthly payments, or paying down your debts in $500 or $1,000 increments, anything that is meaningful to you). And make sure you write down each and every step. The more goals you cross off the list, the more likely you will be to reach the big one at the end!

3) You MUST find ways to spend less & earn more.

Take out your bank or credit card statements and look for as many expenses as you can to eliminate – eating out, buying stuff you don’t really need, buying stuff you really can’t afford, monthly subscriptions you can live without, lesser cell phone or cable TV plans – you get the idea. And look for ways to make extra money too – get a part-time job, sell stuff you don’t use, have a tag sale, start a simple home business like lawn cutting or house sitting or pet walking. Be creative!

If you follow these steps, your chances of making your debt reduction plan work are much better. But make sure to give yourself a “pep talk” every once in a while to keep yourself focused. Share your goal with a friend or family member who will support you during your tough times. An remember to reward yourself once in a while – not with a large screen TV or cruise – but maybe lunch out with a friend you don’t see that often, or an inexpensive piece of clothing to make yourself feel better.

So don’t forget to have some fun while you are working on your serious goals!

If you need more help with your credit card debt, check out Debt-Tips.com. You’ll find lots of strategies for getting out of debt and tips on various debt relief programs that can help you fix your financial problems.


How To Get The Best Balance Credit Card Rate

Anyone who is serious about saving money will search for the best credit card rate. It is one of the most important things you can do to save money with your credit card. There are some tips you can follow that will allow you to get the best rate possible.

Recommendations For Finding Out How To Get The Best Balance Credit Card Rate

  • Get a copy of your credit report – Your credit report and the corresponding score is your business and your responsibility. You can get a copy of your credit report that will list your credit history and detail all that you have done with your credit. Check you report for any errors or discrepancies. These may take some time to clear but it is worth it as it may help to increase your credit score.
  • Analyse your spending habits – Look at how much you spend on your credit cards each month. Ask yourself if you are a person that pays off the balance each month or do you let it carry over to accumulate more interest. Paying off your balance in full each month is a benefit to your credit score. This tells the credit bureau that you are able to manage your credit cards responsibly.
  • Shop around – It is important to look over several different cards before making a decision. You will want to look at annual fees, late payment fees and other maintenance fees. These fees can add up so make sure that you aren’t overloaded with fees even though you may have a lower rate. Don’t only look at the offers that come in the mail but also do some research on the Internet where you can also find some great deals.
  • Use your card carefully – If you plan to use your credit for balance transfers or for purchases, you should be aware of what the terms are for the card so you aren’t saddled with more fees than you had anticipated.

When you know how to get the best balance credit card rate you can go far in saving a lot of money over the long term. Coupled with responsible card use, you will reap the benefits of a terrific credit score and the bountiful use of credit.

This article was written by Timothy Ng. You can read more of his work at Credit Card Finder, where he has a number of comprehensive guides to all types of credit card


Pay Off Your Debt In 5 Easy Steps

You can pay off your debt in 5 easy steps. You might be reading that thinking that it cannot possibly be true, considering how much debt you are carrying. Before you resign yourself to paying high interest rates and making minimum payments for the rest of your life you should at least give this plan a try. Getting out of debt will make you feel better for sure. You will not have to dread looking in the mail box or writing out payments each month. More importantly though, being debt free is the first step toward building real wealth.

Once you know how to pay off your debt in 5 easy steps you can then start saving and investing your extra cash. Not only will you be free of debt but you will also have freed up lots of extra money from your budget. You can then start using that money toward saving for a big investment or purchase that can put you on the road to financial freedom and wealth.

Pay Off Your Debt In 5 Easy Steps

Write a list of your debts – This is one of the hardest steps in the process because it requires you to be completely honest about the financial corner you are backed into. It is a necessary step that can even be liberating. Once you know the full extent of the problem you can set about tackling it.

Separate the debts into categories – You will need to further list your debts so that you know which ones are in default, which carry high interest rates, and which ones you are currently paid up on. This list may be dynamic, so you will continually update as you pay things off or get current with outstanding balances.

Set up a list of priorities – There are many approaches to the order in which you should pay off your debts. Some experts say to pay off the highest interest first while others say to pay off the highest balance first. You may have a personal reason for wanting to pay off a specific debt first. Whichever way you choose to do it, you must stick to it so that you can see the snowball effect of paying off debts which will serve as the impetus to continue on your debt clearing journey.

Make a plan – When you look at your debt and compare it to your income you will have to decide if you make enough money to pay off the balance in a timely manner. If there is not enough money coming in you will have to consider other options like getting a second job or doing a debt consolidation. If you do not know how to do it you might need to get debt counselling from a reputable and non profit debt counselling organisation.

Plan for the future – Now that you have fully assessed your debt you can set a date on which you want to have your debt completely cleared. While it might seem impossible to reach right now, know that you will get there. Once you do you will want to have a plan in place to deal with your extra cash. resist the urge to celebrate by spending money frivolously.

You can pay off your debt in 5 easy steps. All you have to do is come up with a plan and stick to it. Once you are clear of debt your life will be so much better because you will not be burdened with the stress that comes with being in debt. You will also be able to finally start planning for the future with the extra money you have in your budget.

This article was written by Timothy Ng. You can read more of his work at 0 balance transfer, where he has a number of comprehensive guides to all types of credit cards.


Eliminating Your Debt in Most Convenient and Creditworthy Way

Eliminating Your Debt in Most Convenient and Creditworthy Way

Debt consolidation has always been beneficial over bankruptcy as far as creditor’s interest is concerned.  Whereas in Chapter 7 or Chapter 13 bankruptcy, creditors get nothing or very little from the debtor, the debt consolidation system shows positive and systematic money management in favor of them.

Debt consolidation beneficial for both:

Debt consolidation in turn could be extremely advantageous for consumers as the consolidation company would negotiate the reduced interest rate, lower monthly payment, reduced balance, cut off late fees and finally set up the time to be debt free. So in the long run the consumers can save large amount of money. Secured loans like car loans or mortgage loans don’t come under consolidation. Unsecured loans like bank credit cards, department store credit cards can be put into debt consolidation program.

Finally from creditor’s point view, dealing with debt Consolidation Company is beneficial. Here at least the consumer is showing an honest, strong effort to pay off the debt. And, by avoiding bankruptcy debtors can preserve their credit background.

Now for a consumer who is under severe debts pressure can look for either wiping out the debt in total or repaying it over a period of time. So which one to opt between both of the options – Bankruptcy filing or Debt consolidation? If it is the bankruptcy, it permits consumers to remove all of their debt and start fresh. If it is the debt consolidation you can make one payment to a debt consolidation company who in turn would combine your unsecured debts and disperse the funds for you.

Let us analyze which one looks smart and yet creditworthy?

Bankruptcy filings have many odds:

Initially from financial point of view bankruptcy may seem advantageous. But it is not that easy to file a bankruptcy and get relieved from massive dues with little effort. Even if it is Chapter 13 bankruptcy you won’t be complete debt free, it just extend the tenure of the repayment according to your convenience. Moreover Chapter 7 discharge doesn’t apply to the debts created after the bankruptcy filing or so. And, the most negative aspect is the destruction of consumer credit background. Consumer looses the creditworthiness which can pose many problems in future.

Usually after a bankruptcy, a creditor has difficulty establishing credit to the debtor for next seven years. Even if a creditor proposes to extend credit, the interest would be high and credit term would be less for the debtor. Thus from a consumer’s point of view also bankruptcy have several side ill-effects.


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