Debt

How short-term loans help your business to grow

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A short-term loan often seems to be the best option for a small-business owner. However, you won’t find any opportunity to escape debt once you’re stuck in a seemingly never-ending cycle of persistent lenders. It often happens – and it’s hard on a business owner. You may accept certain terms that seem agreeable without knowing how it will affect the credit or cash flow of your business. Before you even realize, you might be dragged into this unsustainable and uniform debt burden.

But this doesn’t necessarily mean that you’ll turn insolvent due to your short-term loans. You may actually help push your business in a positive direction if you follow the loan repayment terms diligently or if you utilize the money more cautiously. Prior to applying for a short-term loan, you must consider your spending habits and other associated things. Analyze your cost-benefit and take every step cautiously.

Here are a few important points to consider:

• Generating revenue: Are you eyeing at an opportunity for generating revenue? A short-term loan often helps you catch a good deal or fulfill a great order. Then your interest payments are likely to be matched by the ROI (return on investment). On the contrary, your financial situation isn’t nice when you’re attempting to make a payroll by applying for a short-term loan. In case you aren’t earning an extra amount, you’re bound to be hit hard by the expensive rate of interest.

• Cash flow: Your cash flow tends to get reduced due to the daily loan repayments. You won’t land up in trouble if you can manage the debt schedule for your business. A short-term loan doesn’t seem to be a good option for you when paying it early doesn’t suit your model or if it restricts your options. You may check out for more borrowing options when you have several daily expenses, generate infrequent revenue, or just have a small number of clients.



• Emergencies: Your equipment is broken down by a storm. You lose inventory during transit. Any of your employees turn sick. Assuming such emergencies, sometimes you’re only left with the option of a short-term loan. You’ll need to be absolutely sure of your loan repayment plan if you really want to live life hassle-free. Don’t let your business turn bankrupt by leaving it to risks.

• Paying back in-advance: The risk tends to be lesser when you’ve applied for a short-term loan and you even have the potential to pay it off early on. It often seems complicated when you’re trying to pay off your loan earlier, but then you won’t need to apply for another short-term loan to pay it off. But while repaying it early, you must bear the initial interest and you are also not supposed to utilize another short-term loan for refinancing.

You must brace yourself for unforeseen events and allocate a certain line of credit for running your business. You can pull out of every debt as you repay the amounts that you borrow on time.


5 Things to Consider When Applying For Loans That Are Meant for the Unemployed

A number of opportunities and avenues are created by a job. Achieving a loan doesn’t prove to be a crucial issue when you have a job. However, things turn out to be different when you’re unemployed and required an extra bit of financial assistance. In the absence of an immediate respite, things tend to feel more complicated. You may check out a few variable options if you wish to source loans. Managing your cash flow often becomes tough when you aren’t employed. Likewise, it doesn’t take much time to source funds once you’re able to spot the ideal offers.

Few key factors that have to be taken into account while signing up with a lender:

1. Evaluate All Needs

Loans can be achieved from a number of online lenders. Prior to signing up with an online lender, you must read through the fine print and do some extensive search. Pick deals that match your needs to perfection after evaluating them carefully. Your financial strength determines your ability to secure a loan. A loan application is accepted and the funds released only after your entire financial situation gets checked by a lender.

2. Pick the Best Option

You must choose an option that actually suffices your need. Both the secured and unsecured loans are available to you. The provision of showing any of your assets in the form of collateral helps you to achieve the secure loans more easily. That’s one reason why you must consider the unsecured loans only for a short-term requirement. But in doing so, you might need to bear a higher rate of interest with the unsecured loan. Keep an eye on your current requirement while applying for your loan.

3. Seeking the Assistance of a Guarantor

Seek the assistance of a guarantor if you’re experiencing any challenge for securing funds. The rate of loan approvals enhanced when you have any of your loved ones acting as a guarantor. The guarantor must also possess a sound credit standing and a stable source of income.

4. Achieving Unemployed Loans with Poor Credit

Your credit score is bound to be affected when you fail to repay your loan within the payment due date. This is an important reason behind achieving an inferior credit score when you aren’t employed. Borrowers with bad credit may derive considerable financial assistance out of loans that are meant for the unemployed. These loans can be used for various purposes. It becomes much easier for you to repair your credit score when you repay the dues on time.



5. Checking Out Online Opportunities

Applying for loans online yields a few nice offers for you when you’re able to keen to achieve guaranteed loans aimed at the unemployed. You don’t need to go through a lot of documentation and paperwork for achieving the funds as the loans add much to the convenience of online borrowers. Apart from this, you’re needed to fill out your basic information over the internet. The loan amount is transferred to your account immediately after your credentials get verified by the lender.

 


Installment loan options for small businesses – How can you pitch into the market?

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No matter how big or small your business is, starting a business or growing it will require lots and lots of money. This is why the biggest challenge faced by the startup organizations is lack of funds and financing options. As compared to the grown-up organizations, such financial dilemmas are common among the startups as they usually lack enough money to initiate a business. Although it is true that taking out installment loans is difficult but at the same time there are resources that you can turn to.

Now that you have to pay back the monthly payments in regular monthly installments of principal and interest rate, installment loans can really work well for the startups. You just have to know where to look for the best loans for funding your startup business. Here are few options that you may take into account.

Creating a business plan before approaching the lenders

Before you start off with an active search for the startup installment loans, the foremost thing that you need to keep in mind is to create a solid business plan. When you introduce your business to the commercial lenders, they often ask you to show your business plan so that they may get to know about your products and possibility of achieving success with your product. Henceforth, it is critical enough for you to write a business plan and impress the lender to believe that you’ll be able to make timely repayments on your loan.

Approach the SBA

The Small Business Administration, since the 1940s, has been assisting the startup business firms to operate in a successful manner. Besides offering them expert advice and other resources, their loan programs also insure most of their installment loans that are issues within America. Usually the SBA favors long term installment loans because they offer you the opportunity to take cash and the repay the loan over a longer time period, when your business grows.

Credit unions and banks are also a viable option

While credit unions and banks are interesting sources of commercial loans, it is also a fact that they will have strict lending policies. Banks are more concerned with the risks that follow while starting a new business rather than considering the rewards. If bank loans don’t have an SBA guarantee, this can be challenging for the startup business firm. You should become habituated with rejection and try to grasp the fact that this is not something personal.
Seek help of friends and family

Though this is the most overlooked option but your friends and family members can be the most wonderful sources of startup installment loans. Any near and dear one you approach may have the capability to finance you new venture and offer you financial help. Still they are willing and able and the best thing about them is that they offer low terms and rates which are reasonable for the business owner who is already drowning in several other financial challenges.



Therefore, whichever option you may choose to obtain loans for your business, you should try your best to repay your loans on time so that this doesn’t affect your credit score and keep you from getting future lines of credit at a reasonable rate.


Thinking About Debt Consolidation?

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If you’ve been dealing with credit card debt, or other unsecured forms of debt, and times have gotten tough, you may be considering debt consolidation. While this option is indeed a good fit for many, there is no such thing as a one size fits all solution to debt. With that said, there are a few things that you should consider when thinking about moving forward with a debt consolidation loan or program.

What Is Debt Consolidation

Debt consolidation, in its most basic of explanations, is just what it sounds like. It is the consolidation of multiple debts into one single account. However, when you break it down, debt consolidation does much more than turn multiple payments into one. Ultimately, there are two basic types of debt consolidation:

  • Debt Consolidation Loan – A debt consolidation loanis exactly as it seems. It is essentially a new loan provided to those with multiple debt accounts for the sole purpose of paying these accounts off and combining them. The goal with this type of loan is to reduce overall interest by combining several high interest loans into a single, lower interest loan. Ultimately, this reduces the minimum payment required and creates a fixed payment schedule, not only making it easier on a financial level, but on an accounting and organizational level.
  • Debt Consolidation Program – Those who cannot qualify for a debt consolidation loan, often look to debt consolidation programs. Based on the idea that the borrower is going through a financial hardship, debt consolidation programs differ greatly from loans. With these programs, a debt consolidation company is generally granted power of attorney over your accounts. This means that they make the decisions and payments for you. From there, the company will negotiate a lower interest rate based on your financial hardship and willingness to pay the take a proactive step to ensure that your debts don’t go unpaid. Once lower rates are negotiated, the debt consolidation accepts a single payment encompassing all minimum payments and fees associated with the program, later dispersing the payments to the lenders which hold the accounts.

Benefits Of Debt Consolidation

At the end of the day, there are several benefits that come with debt consolidation, whether it be a loan or a program. Some key benefits include:

  • A Single Monthly Payment – Financial management resource DebtConsolidation.com found that the average American owns credit cards owns between 3 and 4 credit cards (3.7 is the exact number). Having several monthly bills to follow can be cumbersome. However, debt consolidation offers the benefit of breaking your debts down to a single monthly payment.
  • A Lower Monthly Payment – Another major benefit, especially those dealing with financial hardship, is the fact that debt consolidation will generally lead to a lower overall monthly payment. Ultimately, this allows you to keep more of your hard-earned money.
  • A Fixed Payoff Schedule – Whether you go with a debt consolidation loan or a debt consolidation program, you will be placed on a fixed payment schedule. Usually, debts included in these programs, like credit card debts seem to never have an end in sight. Not to mention, the payments on these accounts can fluctuate wildly. With a fixed payment schedule, you’ll not only know how much money your bill will be each month, but when you’ll finally stop receiving those bills.

Drawbacks Of Debt Consolidation

While perfection is something we all look for, it very rarely exists, and chances are, it doesn’t exist across any debt relief option. There will always be some drawbacks. In the case of debt consolidation, these drawbacks include:

  • Damaged Credit – Often times, debt consolidation can lead to damaged credit. This is particularly the case when it comes to debt consolidation programs, not loans. With the changed terms, the closure of revolving accounts, and the various financial hardship programs likely included, borrowers can expect to see a negative impact on credit. If a loan is the route you plan to go, it can actually improve your credit, but it has to be done right. First and foremost, closing your credit cards once paid off will lead to closure of longest standing accounts and reductions in available credit. These factors can lead to declines. Therefore, to avoid declines in your credit score when choosing the consolidation loan option, keep your other accounts open and in good standing. Just don’t over use them!
  • Amount Of Assistance – With debt consolidation, only so much assistance can be provided, and it is usually provided through the reduction of interest. However, you’ll still owe the same amount of money, and minimum payments will have a limit as to how much they can be reduced. While they will cause more harm to your credit, if your financial hardship doesn’t allow you to make the minimum payment required with debt consolidation, you may want to consider debt settlement.



The Takeaway

The takeaway here is that debt consolidation is indeed a great program for many. However, it’s not the one-size-fits-all solution you may think it is. The truth is that as the borrower, you have many options, and before making any financial decisions, it’s important that you get a good understanding of these options.

 


3 Ways College Students Can Live Like Kings on a Fixed Income

If you’re like most college students, you’re living on a fixed income from student loans – a very small fixed income.

The good news is that this doesn’t have to mean you spend these years just barely getting by. In fact, you can actually live quite comfortably if you know what you’re doing.

3 Ways to Make the Most of a Fixed Income in College

Even though your student loans do cover living expenses, the following will show you how to spend your college years living like in a king.

1. Live with Your Best Friends and Split the Costs of Your Essentials

After college, you’ll find it becomes harder and harder to see your close friends on a regular basis. So, spend as much time as you can with them during right now.

One way of doing this is by rooming together. The more of your close friends you can get under one roof, the less it’s going to cost you.If you get four or more people together, you can even rent your own home instead of just an apartment.

Your savings don’t have to stop there, though.

Split the price for a Costco or Sam’s Club membership and then buy the things you all need in bulk for even more savings. Get everyone to agree on staying in three or four nights a week and making dinner together and you’ll enjoy a great meal fit for a king without breaking your budget.

2. Never Buy Your Books at the Bookstore

It’s no secret that college textbooks cost a fortune.However, you don’t actually have to buy them at your school’s bookstore, where they are sold at full price.

Instead, once you find out what classes you’re going to take next semester, offer to buy a current student’s textbook for more than the tiny amount they’ll get for selling it back to the bookstore. Then you can put the money you save toward living expenses.

Of course, there are a number ofsites that sell college textbooks, too. If you can’t find a fellow student who’s willing to offer you a bargain, someone online probably will.

 

3. Consider a Side-Income

You may not have enough time in your schedule to add more hours at your job or to even take on a part-time job to begin with.

Fortunately, that doesn’t mean you have to spend your college years living like a pauper. These days, there are countless ways to make money on the side when it fits your schedule best.

Some popular examples include:

  • Drive for Uber
  • Take Up Freelance Work
  • Tutor Other Students

The best part about those last two options is that they will most likely look great on your resume after graduation.

You Don’t Have to “Live Like a College Student”

There are plenty of reasons people miss their college years, but the miniscule budgets definitely isn’t one of them. Fortunately, you now know that just getting by isn’t some mandatory credit you have to complete.


6 qualities to look for in the best Credit and Debt Consolidation Programs for 2018

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Life can be quite overwhelming when you are saddled with lots of debt from several creditors. It is best to find a loan program that can help you get your financial situation back on track, especially if you have several credit card balances and high-interest personal loans to pay. Rising debt can make your budget more uncomfortable because of countless repayment dates that you must adhere to. A debt consolidation program will be your best bet because it can help you get your credits organized while reducing your monthly repayments. Here are a few guidelines to choose the right Credit and Debt Consolidation Programs for 2018.

Reputation

When choosing a debt consolidation program, you must consider the reputation of the creditor you are dealing with. You need to find a debt consolidation company that meets the minimum qualifications and upholds set consumer financial laws. You can compare debt consolidation firms based on several factors such as employee certifications, compliance with the federal regulations, average consumer reviews and ratings.

BBB Rating

A good company should have an excellent rating with the Better Business Bureau (BBB). The BBB is a nonprofit organization that promotes ethical business behaviour and monitors compliance of their 400,000 accredited businesses. Consumers that wish to make more informed financial decisions when looking for the best debt consolidation companies can check out the BBB website. Here, they will be able to identify trustworthy firms and check out unbiased customer complaints and reviews on BBB.org.

Qualification

Most financial institutions that offer debt consolidation loans usually set requirements depending on the amount of debt that the client has before they request for the loan. In addition, they will also consider the types of debt that the client has, debt to income ratio, enough monthly income, and the borrower’s ability to meet their set financial obligations. Some companies will require you to only have unsecured loans like medical bills credit cards, and student loans. Irrespective of the company you settle for, they should have loan qualifications that suit your current financial circumstances.

Pricing and Fees

The essence of taking up a debt consolidation loan is to ensure that you have a loan that you can easily handle and pay off. Therefore, you need to avoid debt consolidation firms that offer expensive loan processing fees and pricing. A good company will openly disclose the basic aspects of their credit services such as the loan terms, the consumer fees for the service, and any other information regarding their loan pricing and fees. It is illegal for any debt settlement firm to misrepresent their services or make any false claims regarding what their services are meant to accomplish.

A variety of loan services

With debt consolidation, there is no one size fits all kind of loan. This is because different clients will have varying amounts of debt they want to consolidate and different financial abilities. You need a lender that will provide a wide variety of debt consolidation programs to choose from. This will ensure that you settle for a loan that perfectly suits your budget and financial needs to ensure you eliminate debt over time.

Fixed interest rates

Debt consolidation loans are available in both variable and fixed interest rates. With a fixed rate, you have a more stable option as you will have a monthly repayment that is predictable and safer because you will not have any surprises that you must instantly fit into your monthly budget. Always opt for a lender that offers a fixed interest rate for your loan as it will be more manageable and predictable and you will avoid any surprises.

Affordable payments

The major objective of combining several debts is to ensure that your loan repayment becomes more affordable and manageable. This is why you must ensure that you choose a debt consolidation company that offers you a better and more affordable monthly repayment option. Before you take up any loan, you must ensure that your monthly payments will perfectly fit into your budget. This is crucial because if you cannot afford the repayments, then you will end up inmore financial trouble in the future.

Late or unsuccessful payment charges

Some creditors may not charge you for late payment; however, there are those who will. Usually, late payment fees will include a blend of flat fees and a percentage of the loan amount, and you must pay special attention to the language used to explain these in the loan terms and conditions. Always opt for lenders with reasonable fees and an origination fee that does not exceed 6%, 5% of the entire monthly past due, and late repayment charges of less than $25.

Pre-payment charges

Be sure to check whether your creditor will charge you for making early monthly payments on your loan. This is important, especially if you want to clear your debt early. Most creditors will charge you for early repayment to make up for the interest charges that they lose when you pay the loan ahead of the scheduled date. Be sure to get lenders that do not offer a pre-payment charge.

Legitimacy

When looking for a creditor, you must ensure that you are getting a legitimate debt consolidation loan. This is because there are countless debt and credit consolidation scams in the market today. You must ensure that you get a loan from a legitimate financial institution. You should avoid creditors who ask you for an upfront fee in order to secure a loan. You should always trust your instincts and keep off programs or loans that do not seem right.

When your current debt becomes stressful to handle, it is best to always seek assistance to make your credit manageable. If you are searching for the best debt consolidation company, then it is crucial for you to shop around and check out various available options like balance transfer credit cards, credit card hardship programs, and personal loans. With a good credit score, you can significantly save on interest rates and be able to consolidate all your loans. Take time to compare at least several lenders before making your final decision. This way you will be able to get the best creditor who offers excellent loan terms and choose the right debt consolidation program.

Author Bio
Isabella Rossellini is a marketing and communication expert. She also serves as content developer with more than seven years of experience. She has previously covered an extensive range of topics in her posts, including debt consolidation and start-ups.


Could A Bad Boss Get You In Debt?

A bad boss is worth avoiding for a plethora of reasons. They can make your working life hell, they can steal your accomplishments, fail to show any recognition, and can make you fall out of love with your career. But while you might think of soldiering on and tolerating bad behavior until you can make a more positive move, there’s one impact of the bad boss you shouldn’t tolerate: the financial kind. If you don’t acknowledge and prepare for these risks, a bad boss could genuinely get you in debt.

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Not knowing your worth

It might not be enough to get you in debt by itself but being underpaid for your job can certainly contribute to it. If you have the pay to match your expenses, especially if your expenses are higher precisely because of where you live and work, you can and will fall into debt. Learn how to negotiate a higher salary and craft the most irrefutable argument that you can. If they still won’t budge an inch, take your proposal elsewhere.

What free time?

Overtime, especially unpaid overtime, should always be treated with some degree of caution. Sometimes, it’s a way to show your dedication to the workplace and to lend a helping hand when it’s really necessary. But the time and energy you spend adding a little more earnings could better be spent building wealth elsewhere, whether it’s budgeting to pay off existing debts, finding your side-hustle, or investing. If you want to build enough wealth to escape the prospect of debt, you can’t rely on your job alone.

Pay problems

Now we’re getting into the real issue: when a bad boss costs you money. If they are disorganized, or unable to deal with their own finances, an employer’s failures cross into your pay. Though you might get it eventually, the cost of late payroll can add up, putting you in debt, which means you lose more money in the long run. This isn’t just a small error, it’s a crime, and it’s well worth considering the help of a wage theft lawyer if it happens to you often. You might be inclined to forgive an error in pay once or twice, but when it becomes a semi-regular occurrence, you are biting the costs of your boss’s negligence.



Making you sick

Health and safety standards are still a huge concern in the workforce. Many employers are rushing to improve their own, but negligent bosses might run a workplace more inclined to make you sick or see you suffer an accident. Workplace accidents are damaging to the whole business, but that doesn’t mean you should accept the personal costs. Never turn down the opportunity to claim if you’re going to be paying for your own health care because of an injury or illness that’s your boss’s fault.

No matter how much you love the work you do or how much you want to avoid rocking the boat, you shouldn’t let anything get you in debt where you can avoid it. Protect yourself from a bad boss before they get you in trouble they won’t be there to help you with.


Are You More At Risk Of Ending Up In Debt?

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There are certain groups in society that are more at risk of ending up in debt than others. These include, but are certainly not limited to, those with a disability both mental and physical, those on a low income, those freelancing and those with a criminal record. Individuals that fit into these categories are more likely to experience debt in their life for a variety of reasons. If you are part of one of these groups, it is important that you know how to look after your finances and keep them safe and secure. There are a variety of options here to think about so let’s look at a few.

Dealing With A Physical Or Mental Condition

If you suffer from a physical or mental condition, then you are more likely to experience debt for a variety of reasons. The first is that it might impact your ability to work. If that’s the case and you can’t earn an income, then you will definitely struggle to keep your finances in the green. You might think that if you don’t have a disability, then you are in the clear, but that’s not the case at all. It’s quite common for people to develop a disability at a later stage in life. This is typically due to an injury, but it could also be caused by an illness. To protect you from this type of issue, companies like InsureSTAT provide disability insurance. This means that if you ever are impacted by a disability, then you can still get the money that you need to get by.

Freelancing

Freelancing simply means that you are working for yourself without a permanent contract. Now, you might think that this puts you in quite a strong position. After all, you don’t have to worry about getting fired. The problem is that a lot of freelancers actually find themselves working for large companies on a permanent basis without any of the benefits of a contract job. As such, they can be left in the situation where if they are no longer needed by that company, they don’t have any money to get by. Instead, they have to borrow until they can find more work. You might also think that it’s easy to find work as a freelancer, but again, that’s not true. In actual fact, it can be quite difficult to find the work you need because there is so much competition on the market. Handling this is about making sure that you always have a few contracts and a couple different sources of income.

Low Income

Finally, if you’re on a low income, you could easily end up in debt. The key here is to make sure that you are saving as much as possible as often as you can and stay frugal. Budget effectively and do everything possible to save a little each month that you will hopefully be able to build up over time.

As for a criminal record? That’s a tricky one because it basically stops you from getting work. However, if you look into it, you might be able to get your record expunged, and this will put you in a better position.


Getting Yourself Out Of Deep Water

When it comes to money, it is really easy to become stuck in a bit of a rut. One thing will lead to another and before you know it you’ve got debts up to your eyeballs. Even if you don’t have debts, you can come to a point where you’re barely scraping by from paycheck to paycheck. When it gets to this point, you need to find a way of getting yourself out of deep water. There’s more to life than stressing about money, and most of the time you’re stressing due to things that you have caused yourself. So before you start spiralling completely out of control, here’s the ways that you can get yourself out of deep water.

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Debt

Debt is one of the scariest situations to be in in your life. It’ll seem like there’s absolutely no way out of it, and in a way it can actually consume you. But the sooner you face your demons and deal with it, the sooner things will get better for you. If you’re at the point where you have debts on top of debts and you can’t even meet the minimum payments, you will have to file for bankruptcy. It’s either than or face big fines from the company’s you owe the debts to. Fines that you won’t be able to pay which will just lead to more issues. There are different types of bankruptcy you can file for. To make sure you don’t make mistakes, check out this chapter 13 vs chapter 7 guide. There’s no shame in declaring bankruptcy, and it’ll take more of the stress away from you. If you’re not at the stage where you can’t even meet minimum payments, then you need to work through each one you’ve got bit by bit. Just making the smallest dent is going ease your stress a little. Methodically work out which one you’d like to pay off first, and make sure you’re remembering to make your minimum payment for any other ones.

Paycheck To Paycheck

If you’re living paycheck to paycheck, you really aren’t alone. Whilst it isn’t as serious as being in debt, it is still awfully stressful. But half of the time it is down to the lifestyle choices you’re making, and a few quick changes will solve all of your problems. For example, if you’ve got the most expensive phone contract out there, you’re wasting your money. Cutting down to a more affordable phone contract will give you money to spend on the things you actually need. If you know you’re a sucker for ordering a takeaway to celebrate the weekend, then cut down on these too. Just have one treat night every two weeks and the money you save could be used to put fuel in your car etc. If you live in your own home, then the bills you pay are likely to be what is crippling you. Try and cut down on things such as electricity by turning off all the lights when they’re not needed. Turning off the plugs when you go out is another good way of getting them down.


Welcome the New Year and resolve never to fall in debt again – Preparing for 2018

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During the run up for the biggest festival of the US – Christmas, it is pretty easy for you to brush apart all the debt worries that you were facing. You have got many things to plan for, presents to buy, dinner to cook and New Year drinks. But now as we are all set to welcome the New Year, 2018, it’s high time we start facing the facts. Are you in your overdraft? If the answer is yes, then you’re in debt. In case you’ve reached the overdraft limit, you’re on the threshold of debt. As soon as you enter the New Year, your credit card bills will come down to haunt you.

If you wish to pay off your debts forever, here are few steps that you can take. In case you have got more debt than what you can handle, you can even contact a debt planner. Nevertheless, before seeking professional help, here are few steps that you can take on your own.

• Determine your debts

To start off with, you will require identifying your debts, including the overdraft. You have to make sure you know the amount that you’re paying on the fees, the interest rate and the principal amount. You can this way prioritize what you need to pay off. One of the best ways in which you can do this is by taking a quick look at your credit report.

• Reconsider your expenses

In case you think of sorting out your debts, you have to again focus on spending less amount and paying back more. Do you think you are a big spendthrift? If it is so, then what is the item on which you’re spending cash? Did your income suddenly drop or did you make a small error due to which your penalty fees soared out of control?

• Draw a budget and follow it

Take a close look at your bank statements and know where you can cut down on. Once you get to know these, rethink your habits of making expenses. You can even install financial apps to manage your expenses.

• Negotiate with your lenders

If your debt accounts are delinquent, you can definitely speak to your lenders. In case you owe money on mortgage loans, the lender might come to an agreement with some improved way of repaying your debt amount.

• Choose a debt management plan

If your debts are getting too stressful, you might require seeking third-party help. Sign up with some debt management plan where you have to pay a fixed amount every month. However, don’t just sign up with anyone who offers you a plan. You have to make firm decisions about your debt management plan.

Therefore, now that you know the ways in which you can welcome the New Year with a newly adopted debt-free attitude, you should take into account the above mentioned tips and advices offered by the experts.


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