Step 1. The purpose of this first step is to bring you back to reality. You must know exactly how much money you owe and to whom you owe it.
* Collect all of you unpaid bills and any other evidence of your outstanding debts.
* List each outstanding bill on the same sheet of paper. In separate columns, include the invoice or account number, amount due, name of the creditor, and the date the bill can be paid in full without incurring additional finance charges.
* Total the amount due column.
* Total the number of creditors.
* Total the number of bills.
Are you surprised or shocked? Of course, most will be shocked by the scope of their debt. Regardless of your reaction, you now (perhaps for the first time) have an exact accounting of your current debts. Debt help Considers this to be your guide, because it shows exactly how much money you currently owe, and by what date you must pay.
Step 2. This step employs a powerful visualization technique that actually enables you to visualize an end to your current debts.
* Mentally consolidate your bills. Do not think of your debt as a series of separate bills. Consider all your bills as one large bill to be repaid. As you diligently repay each component bill, your large bill becomes smaller.
* Mentally consolidate your payments. Do not consider your individual payments towards separate bills, consider them one large payment towards your one large bill.
* Debt help shows why you must continue making the same size payments regardless of how many bills are repaid. As bills are paid in full, more money is available to pay other bills, but only if your payments remain the same.
* You must pay your bills in the order of their higest monthly payments. This allows you to apply the most amount of money to the next bill and reduces your debts in the shortest amount of time.
If your large bill becomes smaller each time you make a payment while the size of your payments remains the same, the net result of this strategy is that each successive payment has a greater impact upon the size of your debt.
Debt Example: Say you have two bills, one for $250 and one for $750. Together they total $1000. You can afford to pay $500 per month. If you pay $250 towards each bill, the small bill will disappear after the first payment and the larger bill is reduced to $500. You still have $500 available for the next payment. If you maintain the same size payment, you will completely eliminate the remaining bill with the next payment.
Step 3. Now it is time for a course correction - you must alter your spending habits. Regardless of the cause, be it problem debt or chronic debt, you must be willing to change your spending habits and if necessary, seriously alter your lifestyle.
* Establish your long-term financial goals. It took months or years to reach your current level of debt. Since you cannot wish yourself out of debt nor can you count on winning the lottery, you must adopt, reasonable financial goals. The more you pratice meeting even limited financial goals. The more confident and in control of your life you will feel. This in turn enables you to meet longer-term goals successfully.
* Establish credible short-term goals. Short-term means tomorrow! Durning the next 24 hours you are not to incur any new debt.
* just get through one day, then another. You get the idea. The impact of this - trail by fire - is to immediately boost your confidence by preventing your debt from expanding. This prepares you for the serious commitment to complete debt reduction ahead of you.
* Establish realistic intermediate term goals. These goals should find you becoming comfortable with the basics of debt reduction. Your goals are to implement the plan, grow more confident as you watch your debts grow smaller and begin to realize that you can become debt free.
* Establish, well defined, long term goals. As you master these debt reduction techniques , you will be firmly committed to effecting, permanent chance in your financial condition. Not only can you see yourself debt free sooner, but also you can realistically see yourself accumulating wealth. You are in control of your financial well being. You are no longer a debtor - with debt help you are on the road to complete debt freedom!
* Prioritize your spending. Eliminate impulse purchases. Buying on impulse addresses your wants not your needs. Seek alternative methods to pay for goods and services:
* Barter: You may be able to barter anything of value including your time, for something of value to you.
* Learn to live with less. you must learn to live with the extremely limited financial resources you have available, instead of the unlimited ones you pretended you had. Remember, a sacrifice is a trade-off. You give up something now; you are rewarded later. Denial, on the other hand, has no reward. it is punishment.
About the Author: Debt Help is run by Vincent Dail. They review and then list some of the best debt elimination, programs, software and books available online!
Thursday, September 22, 2005
Mortgage Debt Elimination
Morgage Debt Elimination shows that if you fall behind on your mortgage, you must contact your lender immediately to avoid foreclosure, dont wait 2 or 3 months. Most lenders are willing to work with you if they believe you're acting in good faith and the situation is temporary, please tell the truth.
Some lenders may reduce or suspend your payments for a short time, mortgage debt elimination shows you that when you resume regular payments, you will only have to pay an small additional amount toward the past due total.
Other lenders may agree to change the terms of the mortgage by extending the repayment period to reduce the monthly debt. Ask whether additional fees would be assessed for these changes, and calculate how much they total in the long term.
If you and your lender cannot work out a plan, contact a housing counseling agency. Some agencies limit their counseling services to homeowners with FHA mortgages, but many offer free mortgage debt advice to any homeowner who's having trouble making mortgage payments.
Call the local office of the Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency near you.
For More Infomation Visit: Mortgage Debt Elimination They review and then list some of the best debt elimination, programs, software and books available online!
Some lenders may reduce or suspend your payments for a short time, mortgage debt elimination shows you that when you resume regular payments, you will only have to pay an small additional amount toward the past due total.
Other lenders may agree to change the terms of the mortgage by extending the repayment period to reduce the monthly debt. Ask whether additional fees would be assessed for these changes, and calculate how much they total in the long term.
If you and your lender cannot work out a plan, contact a housing counseling agency. Some agencies limit their counseling services to homeowners with FHA mortgages, but many offer free mortgage debt advice to any homeowner who's having trouble making mortgage payments.
Call the local office of the Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency near you.
For More Infomation Visit: Mortgage Debt Elimination They review and then list some of the best debt elimination, programs, software and books available online!
Payday Loans: How They Really Work!
Payday loan companies gives the borrower the amount of the check minus their fee (They get their money up front).
Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed for every $50 or $100 loaned.
A cash advance loan secured by a personal check - such as a payday loan - is very expensive credit.
Let's say you write a personal check for $115 to borrow $100 for up to 14 days. The check casher or a payday loan lender agrees to hold the check until your next payday.
And, if you extend or roll-over the loan - say for another two to four weeks - you will pay A Fee Each Time you get a extension.
Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed.
Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis) which when you do the math can be very high.
Top 5 Alternatives to Payday Loans!
1. There are other options. Consider these possibilities before choosing a payday loan:
2. When you need credit, shop carefully. Compare offers. Look for the credit offer with the lowest APR - consider a small loan from your credit union or small loan company, an advance on pay from your employer, or a loan from family or friends.
3. A cash advance on a credit card also may be a possibility, but it may have a higher interest rate than your other sources of funds: find out the terms before you decide. Also, a local community- based organization may make small business loans to individuals.
4. Compare the APR and the finance charge (which includes loan fees, interest and other types of credit costs) of credit offers to get the lowest cost.
5. Ask your creditors for more time to pay your bills. Find out what they will charge for that service - as a late charge, an additional finance charge or a higher interest rate.
If you decide you must use a payday loan, borrow only as much as you can afford to pay with your next paycheck and still have enough to make it to the next payday.
For More Infomation On PayDay Loans Visit: PayDay Loans They review and then list some of the best debt elimination, programs, software and books available online in 2005, Including Free Articles, Special Reports and More!
Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed for every $50 or $100 loaned.
A cash advance loan secured by a personal check - such as a payday loan - is very expensive credit.
Let's say you write a personal check for $115 to borrow $100 for up to 14 days. The check casher or a payday loan lender agrees to hold the check until your next payday.
And, if you extend or roll-over the loan - say for another two to four weeks - you will pay A Fee Each Time you get a extension.
Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed.
Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis) which when you do the math can be very high.
Top 5 Alternatives to Payday Loans!
1. There are other options. Consider these possibilities before choosing a payday loan:
2. When you need credit, shop carefully. Compare offers. Look for the credit offer with the lowest APR - consider a small loan from your credit union or small loan company, an advance on pay from your employer, or a loan from family or friends.
3. A cash advance on a credit card also may be a possibility, but it may have a higher interest rate than your other sources of funds: find out the terms before you decide. Also, a local community- based organization may make small business loans to individuals.
4. Compare the APR and the finance charge (which includes loan fees, interest and other types of credit costs) of credit offers to get the lowest cost.
5. Ask your creditors for more time to pay your bills. Find out what they will charge for that service - as a late charge, an additional finance charge or a higher interest rate.
If you decide you must use a payday loan, borrow only as much as you can afford to pay with your next paycheck and still have enough to make it to the next payday.
For More Infomation On PayDay Loans Visit: PayDay Loans They review and then list some of the best debt elimination, programs, software and books available online in 2005, Including Free Articles, Special Reports and More!
Reverse Mortgages Learn The Facts First!
Reverse Mortgages, Most Common Features:
Many offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.
Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the end of a pre-selected loan term.
Generally, a move is considered permanent when the homeowner has not lived in the home for 12 consecutive months. So, for example, a person could live in a nursing home or other medical facility for up to 12 months before the reverse mortgage would be due.
However, be aware that:
Reverse mortgages tend to be more costly than traditional loans because they are rising-debt loans.
The interest is added to the principal loan balance each month. So, the total amount of interest owed increases significantly with time as the interest compounds.
Reverse mortgages use up all or some of the equity in a home. That leaves fewer assets for the homeowner and his or her heirs.
Lenders generally charge origination fees and closing costs; some charge servicing fees. How much is up to the lender.
Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.
Because homeowners retain title to their home, they remain responsible for taxes, insurance, fuel, maintenance, and other housing expenses.
Getting a Good Deal.
If you decide to consider a reverse mortgage, shop around and compare terms.
Look at the:
Annual percentage rate (APR), which is the yearly cost of credit. type of interest rate. Some plans provide for fixed rate interest; others involve adjustable rates that change over the loan term based on market conditions, number of points (fees paid to the lender for the loan) and other closing costs.
Some lenders may charge steep costs, which your lender may offer to finance. However, if you agree to this, you'll take out fewer proceeds from the loan or you'll borrow an extra amount, which will be added to your loan balance and you'll owe more interest at the end of the loan. Total Amount Loan Cost (TALC) rates.
The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs.
It shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. payment terms, including acceleration clauses.
They state when the lender can declare the entire loan due immediately. Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan.
On plans with adjustable rates, they must provide specific information about the variable rate feature.
On plans with credit lines, they must inform the applicant about appraisal or credit report charges, attorney's fees, or other costs associated with opening and using the account.
Be sure you understand these terms and costs.
For More Infomation On Reverse Mortgages Visit: Mortgage Debt Advice They review and then list some of the best debt elimination, programs, software and books available online in 2005, Including Free Articles, Special Reports and More!
Many offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.
Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the end of a pre-selected loan term.
Generally, a move is considered permanent when the homeowner has not lived in the home for 12 consecutive months. So, for example, a person could live in a nursing home or other medical facility for up to 12 months before the reverse mortgage would be due.
However, be aware that:
Reverse mortgages tend to be more costly than traditional loans because they are rising-debt loans.
The interest is added to the principal loan balance each month. So, the total amount of interest owed increases significantly with time as the interest compounds.
Reverse mortgages use up all or some of the equity in a home. That leaves fewer assets for the homeowner and his or her heirs.
Lenders generally charge origination fees and closing costs; some charge servicing fees. How much is up to the lender.
Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.
Because homeowners retain title to their home, they remain responsible for taxes, insurance, fuel, maintenance, and other housing expenses.
Getting a Good Deal.
If you decide to consider a reverse mortgage, shop around and compare terms.
Look at the:
Annual percentage rate (APR), which is the yearly cost of credit. type of interest rate. Some plans provide for fixed rate interest; others involve adjustable rates that change over the loan term based on market conditions, number of points (fees paid to the lender for the loan) and other closing costs.
Some lenders may charge steep costs, which your lender may offer to finance. However, if you agree to this, you'll take out fewer proceeds from the loan or you'll borrow an extra amount, which will be added to your loan balance and you'll owe more interest at the end of the loan. Total Amount Loan Cost (TALC) rates.
The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs.
It shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. payment terms, including acceleration clauses.
They state when the lender can declare the entire loan due immediately. Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan.
On plans with adjustable rates, they must provide specific information about the variable rate feature.
On plans with credit lines, they must inform the applicant about appraisal or credit report charges, attorney's fees, or other costs associated with opening and using the account.
Be sure you understand these terms and costs.
For More Infomation On Reverse Mortgages Visit: Mortgage Debt Advice They review and then list some of the best debt elimination, programs, software and books available online in 2005, Including Free Articles, Special Reports and More!
The Five Most Popular Questions About Bankruptcy
WILL MY CREDITORS STOP HARASSING ME?
Yes, they will! By law, all actions against a debtor must cease
once bankruptcy documents are filed. Creditors cannot initiate
or continue any lawsuits, wage garnishees, or even telephone
calls demanding payments. Secured creditors such as banks
holding, for example, a lien on a car, will get the stay lifted
if you cannot make payments.
WILL MY SPOUSE BE AFFECTED?
Your wife or husband will not be affected by your bankruptcy if
they are not responsible (did not sign an agreement or contract)
for any of your debt. If they have a supplemental credit card
they are probably responsible for that debt.
However, In community property states, either spouse can
contract for a debt without the other spouse's signature on
anything, and still obligate the marital community. There are a
few exceptions to that rule, such as the purchase or sale of
real estate; those few exceptions do require both spouse's
signatures on contracts. But the day to day debts, such as
credit cards, do NOT require both spouses to have signed.
Your bankruptcy lawyer will be able to guide you in this
regard.
WHO WILL KNOW?
Chapter 7 filings are public records. However, under normal
circumstances, no one will know you filed for Chapter 7. The
Credit Bureaus will record your filing and it will remain on
your credit record for 10 years.
WILL I EVER GET CREDIT AGAIN?
Yes! A number of banks now offer "secured" credit cards where a
debtor puts up a certain amount of money (as little as $200) in
an account at the bank to guarantee payment. Usually the credit
limit is equal to the security given and is increased as the
debtor proves his or her ability to pay the debt.
Two years after a discharge, debtors are eligible for mortgage
loans on terms as good as those of others, with the same
financial profile, who have not filed Chapter 7. The size of
your down payment and the stability of your income will be much
more important than the fact you filed chapter 7 in the past.
The fact you filed Chapter 7 or 13 stays on your credit report
for 10 years. It becomes less significant the further in the
past the filing is. The truth is, that you are probably a
better credit risk after bankruptcy than before.
WHAT DOES IT COST?
Costs for filing your bankruptcy will vary depending on the
type of bankruptcy you are seeking. The rule of thumb is that a
consumer bankruptcy will cost approximately $200. This does not
include attorney fees that can run between $700 and $1500
depending on the nature and complexity of your case. Many
bankruptcy lawyers will give you a free initial consultation.
You can keep the fees down by being well organized and well
prepared. You may also be able to keep the fees down by not
requiring the lawyer to attend the meeting of creditors with
you. Check this with your lawyer. In some states such as
Massachusetts, attorneys must attend the Section 341 meeting
with the debtors otherwise attorneys are deemed to have NOT
represented the debtors.
These fee quotes are mere estimates based on nationally
reported averages and subject to variation and change. Please
consult with your local bankruptcy court and with legal counsel
on fees before commencing any action.
About The Author: Nathan Dawson writes for
http://www.mybankruptcycounseling.com, a great online source
for bankruptcy information
Yes, they will! By law, all actions against a debtor must cease
once bankruptcy documents are filed. Creditors cannot initiate
or continue any lawsuits, wage garnishees, or even telephone
calls demanding payments. Secured creditors such as banks
holding, for example, a lien on a car, will get the stay lifted
if you cannot make payments.
WILL MY SPOUSE BE AFFECTED?
Your wife or husband will not be affected by your bankruptcy if
they are not responsible (did not sign an agreement or contract)
for any of your debt. If they have a supplemental credit card
they are probably responsible for that debt.
However, In community property states, either spouse can
contract for a debt without the other spouse's signature on
anything, and still obligate the marital community. There are a
few exceptions to that rule, such as the purchase or sale of
real estate; those few exceptions do require both spouse's
signatures on contracts. But the day to day debts, such as
credit cards, do NOT require both spouses to have signed.
Your bankruptcy lawyer will be able to guide you in this
regard.
WHO WILL KNOW?
Chapter 7 filings are public records. However, under normal
circumstances, no one will know you filed for Chapter 7. The
Credit Bureaus will record your filing and it will remain on
your credit record for 10 years.
WILL I EVER GET CREDIT AGAIN?
Yes! A number of banks now offer "secured" credit cards where a
debtor puts up a certain amount of money (as little as $200) in
an account at the bank to guarantee payment. Usually the credit
limit is equal to the security given and is increased as the
debtor proves his or her ability to pay the debt.
Two years after a discharge, debtors are eligible for mortgage
loans on terms as good as those of others, with the same
financial profile, who have not filed Chapter 7. The size of
your down payment and the stability of your income will be much
more important than the fact you filed chapter 7 in the past.
The fact you filed Chapter 7 or 13 stays on your credit report
for 10 years. It becomes less significant the further in the
past the filing is. The truth is, that you are probably a
better credit risk after bankruptcy than before.
WHAT DOES IT COST?
Costs for filing your bankruptcy will vary depending on the
type of bankruptcy you are seeking. The rule of thumb is that a
consumer bankruptcy will cost approximately $200. This does not
include attorney fees that can run between $700 and $1500
depending on the nature and complexity of your case. Many
bankruptcy lawyers will give you a free initial consultation.
You can keep the fees down by being well organized and well
prepared. You may also be able to keep the fees down by not
requiring the lawyer to attend the meeting of creditors with
you. Check this with your lawyer. In some states such as
Massachusetts, attorneys must attend the Section 341 meeting
with the debtors otherwise attorneys are deemed to have NOT
represented the debtors.
These fee quotes are mere estimates based on nationally
reported averages and subject to variation and change. Please
consult with your local bankruptcy court and with legal counsel
on fees before commencing any action.
About The Author: Nathan Dawson writes for
http://www.mybankruptcycounseling.com, a great online source
for bankruptcy information
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