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Thursday, February 19, 2009

Types of mortgages

By Robin Green

In relationship to home mortgage refinancing, there are several different advantages based on your finances individually, here are the benefits that you will be able to take advantage of:

This does not mean that you have to be afraid of borrowing money however. There are many options available for borrowing money, such as reverse mortgages, that if approached with care, can be a great way to achieve the things that you want.

All-in-all, there is a wide variety of different reasons for participating in home mortgage refinancing. Each individual financial situation is different and there are sever reasons for home mortgage refinancing within your situation. For example, if situation financially has improved since you purchased your home, you may now qualify to receive a much better interest rate with a brand new home mortgage refinancing loan.

This is popular, as it offers a hassle-free fixed rate of interest and a predetermined monthly payment plan which doesnt change throughout the tenure of the mortgage plan. Before you buy your house the lender will fix the rate of interest, which will not fluctuate by property trends or any economic environment.

Like conventional loans, mortgages can be repaid in various ways: capital and interest, Interest-only, no capital or interest (reverse /lifetime/equity release mortgages), interest and partial capital, etc. Other kinds of mortgages are second mortgages, refinance mortgages, and bad credit mortgage loans.

Mortgage providers are looking for bigger deposits from first-time buyers, so it is worth saving up until you have a substantial amount to start with. It is a good idea to save for at least a year, and then when you come to get a mortgage, house prices should still be falling.

On the other hand, if you plan to sell your home before ten years you may want to consider an Adjustable-Rate Mortgage. The initial rate of an adjustable rate mortgage is usually lower than that of a fixed rate mortgage to make it attractive because of its risk of fluctuating rates.

Buyers who only plan to owner their homes in the short run or less likely to be hindered by the risk associated with fluctuating rates and usually benefit from the initial discounts that ARM offer.

The home mortgage process, also known as origination, involves several stages: submission of an application and documentation about credit history and income, checking of the documents and credentials by the underwriter, and granting of the mortgage.

A good credit history is very important for securing a home mortgage. Creditors charge some fees for giving a mortgage: entry and exit fees, administration fees and lenders mortgage insurance.

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Saving Money On Self Storage

By Alicia Sarge

Contrary to what's happening in many industries, self storage companies are getting more and more business because of the deepening recession. After all, there are scores of people who have lost their homes or have had to leave their big apartments; they have had to downsize and need a place to store a lot of their belongings. Many look to friends' houses or similar arrangements while they could simply put them in storage. They don't do so because they think it's more expensive than it really is.

First of all, we're talking about an industry where pretty much everybody offers the same thing, making it tough for one company to differentiate itself from another. To solve this, storage unit companies have adjusted their service offerings so that they can ultimately cater to all kinds of needs. So you don't have to overpay for something that you don't need. Their services can be customized to meet your specific needs, at reasonable costs.

Being competitive also entails getting new customers. The best way to reel them in is through generous discounts, and that's what every company seems to be doing. So as a smart consumer, all you have to do is perform some comparison shopping, specify what kind of storage term you're looking for, and you'll most likely find a great deal that fits you and your budget best.

You get a good amount of space versus the price you're being charged. You might be able to get a 100 square feet of space for approximately $100/month. That's a very reasonable amount to pay, considering that your belongings will be protected from theft, pest damage, humidity, and fire. Compared to what those belongings are worth to you, the price might even be a non-factor. Verify that whatever company you sign with, your items will be adequately protected.

If what you need is a long term contract, then you'll be able to save even more money. Of course, it makes no sense to sign up for long term storage if you're not going to need it (not to mention that it would hardly be a money-saving move). But if you really anticipate that your needs are of the long term variety, then by all means mention it, you will most likely get a great deal on your monthly fee.

Finally, the service is very practical. Some companies include the free use of a forklift on the premises. Others offer packaging and shipping services, included in your monthly fee. Those value-added services can go a long way toward making your self storage deal a value-packed one.

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Living within your Means Has Its Advantages

By Paul J. Easton

Most Americans have been there. The Christmas time or the Birthday celebration you have been waiting for is over. And the expense was way out of your budget.

Now, you dread opening that credit card statement. You have charged the gifts and party expenses though you don't have the cash to pay for it. Here comes the moment where your irresponsible spending now turns into a big problem. Debt snowballed quickly into a monster. Maybe, you should look back and stop the problem at its very source.

There are certain short-term pleasures in life like travels, expensive clothing, and the latest electronic gadgets. But these short-term pleasures can cause you long-term pains. Constant overspending can bring your life down without you knowing it.

Living within your means is the simple solution to today's problems. It is simple yet can be enough for you to take back control of your finances. It is always disadvantageous to carry more debt than you can handle paying. Here are some of the reasons why you should keep the expenses at bay and pay down your outstanding loans as hurriedly as possible.

One reason is that you will pay less in total interest. Interest is basically like a rent you pay a lender for the use of its money. In this case, the longer you keep the money, of course, the more rent you will pay. And paying the minimum is like maintaining a debt for life while paying the finance charge every single month.

Another reason is that you will be able to borrow more economically. When lenders calculate the interest rate at which you can borrow, they always consider the amount of debt you are carrying now. They also factor in the ability you can repay it. The bigger your balance or debt load, the bigger risk you will default on your payments too. In this case, a higher interest rate will be charged by the lender.

Starting today, pay off some debt especially the high interest debt from your credit cards. Doing this saves you a lifetime of interests and qualifies you to a lower interest rate in the future. Pay your debt and start living within your means now. It surely has its advantages.

For more information on financial directory, get FREE Articles Tips at Get debt-free today with tips on how to get rid of debt here. Start improving your personal finance today.

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Turning Profit From Investment Property In The UK

By Chris Channing

The majority of consumers view an investment property as a piece of property that is rented out to tenants. In reality, there is so much more to investment property in the UK than meets the eye. Knowing the intricacies of turning profit from the land can build fortunes for entrepreneurs.

One type of land investment that is less risky, but takes more time to make profit from, is "land squatting." Land squatting is the process of buying up land outside of certain "hot spots," - and then waiting for the surrounding community to grow until it encompasses the purchased property. This type of investment is usually reserved for those who already have a fair sum of funds, as it requires that a piece of land be held for several years at least.

Leasing out a piece of property for business use is handy for easy money with relatively little maintenance. The business obtaining the lease will usually assume upkeep of the property, and most businesses like to keep a good reputation so they keep up on such duties. The only real thing to worry about with a commercial lease for the investor is the taxes each year that are due, which are essentially negligible compared to profits.

A commercial property has many benefits, but residential properties have their own. Residential properties are easier to obtain, and are usually more abundant in most locations because of zoning. Residential properties are usually best for the beginning investor, since they don't require as much starting capital, and usually have a fair payout in exchange for involvement with the tenants.

If one can obtain property near well-traveled roads or intersections, it may be used for marketing purposes. Billboards and other forms of advertising media have become increasingly popular in cities and surrounding suburbs. It turns a quick, easy profit- and has relatively little expenses. There is a moderate initial cost to pay for the structure, and the supplies for putting the ad in place, but these are minimal compared to other ventures.

Renovating property and reselling is another common venue of gaining profits. Property that may be downtrodden in some shape or form can be worked until market value is significantly increased- such as the case with the "house flipping" craze. This takes skill in renovation, however, and is also slightly riskier if a mortgage is being taken out to buy the land in question.

Closing Comments

Property investment has many opportunities, certainly much more than listed here. It's recommended that those interested in turning a profit from property investment check out a few books, go online, or visit local experts for more information. It may take some work, but the payout is truly excellent.

Mistakes with Multiple Credit Cards and Buying a Car

By Paul J. Easton

Having too many credit card accounts? That's one of the biggest mistakes you are probably making. Treat your credit cards as if you treat your money in your savings account. If you have one savings account only, why get multiple credit card accounts?

Just when you thought it is the right thing to do to open another credit card for that major purchase, check ways to finance it in a less costly manner. You can probably get a much lower interest rate with a home equity loan or a bank loan. It is always worth doing some research before that big decision.

As an indication that you may not be a good debt manager, a maxed out credit limit on one of your cards is a situation worth avoiding. Carry only one credit card or two at most. And always use credit cards as little as possible.

Buying a car with a small down payment and financing it can be a convenient way to own your dream car, just until you found out that dream turning sour after a few years.

Buy your new car with a substantial down payment. If possible, hold off the plan on buying that new car until you raise that amount needed for a bigger down payment. This is because the savings on the interest over the long term will be very significant. And as for the research part, always compare deals to get a better rate with an independent lender.

Here is another great suggestion. Once you fully paid your car loan, a good way to save for your next brand new car is to keep aside the amount the same to the monthly amortization you were paying your lender. Put this into a high-yield savings account. Because you are used anyway having only that available cash while you have monthly amortization, there will be no problem and your money will grow fast in your savings.

You'll be surprised how good you are at getting ahead of debt if you only avoid the two mistakes above. With that in mind, it is time to start building a financial nest egg for the future.

For more information on financial directory, get FREE Articles Tips at Get debt-free today with tips on how to get rid of debt here. Start improving your personal finance today.

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Basic Ideas On Finding Credit Card Consolidation

By Nicky Svengali

Here are some suggestions on researching easy credit card debt consolidation:

- When considering credit card debt consolidation it's essential to ascertain whether lower periodical payments or an overall step-up in savings is being sought. This is an fundamental consideration because while consolidation can lead to lower periodic payments (when a lower interest consolidation is obtained to pay back higher interest debts) there is not always an overall cost saving. This is because interest rates alone do not determine the amount which will be paid.

- The amount of debt and the consolidation term figure prominently into the equation. As an example, consider a debt with a relatively short term of five years and one with a lower rate but a much longer term. In this case, if the term of the credit card consolidation is ten years the repayment of the original debt would be stretched out at an interest rate which is only slightly lower than your original rate. In this case it is clear the client may end up paying much more in the long run. This kind of decision forces the client to settle whether overall savings or lower periodical payments is more significant.

- Most companies who offer credit debt consolidations should not expect any collateral against them; they look at you and what your credit and employment history say about you. If you have been making regular payments to all your creditors and if you have a solid work history those factors can work in your favor, establishing that you, as an individual, are a good risk.

- There are also providers out there who will give you an unsecured credit card debt consolidation in spite of your credit and employment history, if you need a clean slate. Instead of a long line of creditors ringing and posting letters and constant reminders that you owe money, you have one responsibility, one periodic payment.

- Imagine the long-term savings just by eradicating late and over-limit fees. Be aware, though, that providers attach higher interest rates to unsecured consolidations. They take a larger risk when they lend cash without security, and to counterbalance their interest rates will be higher than on credit debt consolidations with collateral. Consolidation amounts by necessity are therefore limited to lower amounts. Depending on the lender, the limit on the amount they will lend may be as low as 1,000 smackers or as high as 20,000 quid.

- Companies are able to stay in business by covering their risk with higher interest rates than they offer on secured debt. But this can still translate into lower periodic repayments for you, particularly if your credit cards carry high interest rates to begin with and you've fallen into the trap of paying late and accruing late-payment fees. Those vanish when you repay that debt with the money from your competitive loan and you may be able to negotiate a better interest rate.

- Get a transcript of your credit report. Call For a fresh transcript annually to guarantee that there are no errors even if you believe you have a top notch rating. If you find a mistake, get hold of the credit bureaux immediately by letter to request that item be removed. You should also get hold of the creditor that supplied the inaccurate information to the credit bureau as well, and make them modify it. Beware of challenging _true_ items in your credit report. Also beware of disputing a mistake or debt that is nearly seven years old (or whatever time it takes for items to be cleared, locally, from your credit record). Your debt may have been sold off to a debt-chasing firm, and your hassling them will make your case 'live' again, and may provoke them into coming after you. Let sleeping dogs lie!

- If your debts are just too overpowering then get help from a _non-profit_ credit-counselling service. They will help you in working out a repayment plan, or a credit debt consolidation agreement. It is not the most pleasurable choice when trying to repair bad credit, because it prolongs your poor credit score, but it is a healthy way to go about it. Private, for-profit lenders are working for their own good. Yours is secondary.

I hope these few basic pointers will be of some use to you in researching worthwhile credit card consolidation.

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How to Budget When You're Running Out of Money

By Jesse Mecham

I was speaking with my mother-in-law the other day and she mentioned that she doesn't budget because she knows she'll be in the red. She was basically implying that it wouldn't do any good.

A mindset like this terribly prevalent. I suppose that's a valid concern. Why would you budget when there isn't enough money? Read further to find out exactly why.

Despite the fact that the bills are sky-high and your available funds are low -- when you'll take the time to consciously look at those available funds and make the decision BEFOREHAND about what your money should be doing. Do NOT throw in the towel on this! Take a hard look at your money and give it focus: clothes, food, electricity, miscellaneous, etc. This exercise is vitally important.

In the situation where there truly isn't enough money, you'll still be rattling off obligations and the money will have dried up. That doesn't mean the work done didn't produce any fruit! When you set priorities to your money, you're maximizing exactly what it will be doing and your dollars will stretch further. That's key in starting and learning how to budget.

The second step is to be certain you're recording every single penny that you spend. Realize that even if you're spending and driving a deficit, the task of recording your spending MANUALLY will mitigate the deficit-spending as much as possible. Your total deficit will be much lower as a result and you'll be in a better position than had you not done it at all.

Manually recording what you spend helps reinforce awareness, and reconnects you psychologically back to your money. In this day and age, marketers, banks, and card processors want us to spend and spend without regard for our personal financial situation. This is no way to budget or manage your money! The exercise of recording your spending will make you (painfully) aware of where you should cut back.

So remember, looking toward the future and then writing down what's happening currently will help you budget in any circumstance. You'll keep the pain to a minimum and will buy yourself more time to execute a longer-term plan to get you operating in the black on a consistent basis.

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Several Tips To Assist You In Maintaining Your Healthy Credit

By Frank Froggatt

If your credit is sound and you don't even desire to discover yourself in need of a repair or consolidation service, keep track of your record and stay up to date with the activity on your report. Some people have awful credit because they didn't watch out for changes or anomalies in their credit reports.

Your perceived creditworthiness is the deciding factor when applying for a car, home, or any different loan. What you possess on your report tells future loaners whether you can be trustworthy to pay them back.

Most people do not realize that landlords, employers and companies checks credit reports before making a decision on whether or not they can give a contract or a job. The scores and credit report can aid companies decide whether you pay your bills on time or if you have registered for bankruptcies. By doing so, they can use the info on your credit report as a prospective marker of your credit worthiness.

Although keeping up a good credit report can be quite a challenge rather challenging, there is no sounder way to keep you risk-free from debt than by carefully observing your spending and incessantly staying on a budget. Budgets are principal as they can help you in managing your finances, tapering your debt and building a sound credit history.

If debt management is what you need, the above scenario will function to shrink debt if you are sincere about cutting back on expenditure and remaining on a comparatively demanding budget. Make sure you include all your debt (exact figures are required-- no estimates), then establish your budget from there. Trim unnecessary expenditure wherever manageable and stay with theplan.

Make sure to pay your bills on or before the day they're expected to avoid late fees and if manageable, try to pay more than the minimum necessary payment.( In full would be ideal) And never skip payments, ever. These, with your budget plan will help you keep or sustain you accounts in sound standing.

Another step you can take is not to exceed your credit boundary. The available credit is the amount left on your credit line ordinarily interpreted by the difference between your credit limit and your outstanding balance. Constantly recall to keep the balance lower than the limit of the credit. Additionally, make sure to add any charges you made after the closing date to your outstanding balance included in the monthly statement; doing so can help you find out just how much credit you have left.

In summary, take hold of your funds. Establish that budget, curb expenditure, make timely payments, drastically scale down or stop using charge cards entirely until you are in the black and resolve to abide by the plan. Follow through to culmination and you'll find out you've developed a strong credit history.

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Options to Get out of a Financial Rut

By Paul J. Easton

You may be struggling with unsecured debts today and you have decided to pay off your credit cards fast. In current times, doing so can be done with several options but it is still important to remember that any plan of paying off your credit card debts must always include restraint on your future spending to avoid another cycle of debts.

One option available you can use is cash-out refinancing. If your goal is to pay off credit cards, you can take out a mortgage using your home equity with a larger principal than your current credit card debts. By then, you will available cash to pay your credit cards.

With cash-out refinancing, you will no longer have any credit card debt so you eliminate the monthly credit card payments. You also avail the lower interest rate on the mortgage which means you save quite a bit in interest every month.

If you do not want to use your home equity to pay off your credit cards, one option you can use is a personal loan. A lender can provide and approve you for a personal loan to repay your credit card debts. This is much like the situation suing with home equity loan. The difference, however, is that the loan is not secured by your home. This means that you will have a higher interest rate than you would if you use a home equity loan. The good news is that the credit card rate is normally still lower than those with credit cards.

Lastly, this last plan is for you to develop a budget. This step is crucial for you to take control of your financial situation. Have a realistic assessment of how much money you have as an income and how much money you spend every month.

Start by having a list of all your income from all sources and all the corresponding expenses especially the fixed expenses every month like rent and car payments. List too all the expenses that vary like entertainment and clothing.

Writing down a list of all your expenses is a truly great way to track your spending patterns. This gives you the opportunity to identify necessary expenses and prioritize the rest of them.

For more information on financial directory, get FREE Articles Tips at Get debt-free today with tips on how to get rid of debt here. Start improving your personal finance today.

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Bonds, The two major types, and which one suits you better

By Graham McKenzie

If you wish to take out a bond than you have several options you must consider. For beginners, you need to understand the two major types of bonds, which are fixed rate interest bonds and bonds that constantly fluctuate the interest.

Fixed rate bonds have existed for years and will continue to exist, because individuals, especially home owners, want a steady interest rate. They are not willing to do the math and break down the interest throughout the years. They just want one, solid rate of interest.

Most fixed rate bonds run between twenty to thirty years, which is definitely a long time. A lot of people would rather stick to something around fifteen years, which is fine if they have a higher than average equity along with an income sufficient to meet the higher monthly payments.

Obviously, it would make a very ideal situation if clients could individual call out a number of years and the bank would offer a bond for that period, but that is not the case. Banks are willing to offer bonds in five year increments, staring with fifteen which is becoming more popular. Another common number is twenty five years which is a reasonably agreement between the bank and client.

While I mentioned earlier that most individuals are drawn to fixed rate bonds, it should also be noted that a certain group of people prefer interest rates that fluctuate. This is probably the appropriate and smart way to handle a loan. Individuals who prefer this type of bond can bend and break with the economy and enjoy more flexibility with the bank as the bond progresses.

The homeowner may wish to request an adjustment with the interest based on the current economy. The bank is more than happy to meet this request, but will charge fees for doing so. It's worthwhile to make the request if you can afford the fees.

However, you also run a risk of seeing a higher interest rate with bonds that fluctuate the interest. It's one of those up and down, rollercoaster rides. Like Forrest Gump said, "you never really know what you're gonna get."

A lot of people would rather avoid the risk of inflated interest rates, and instead turn to a fixed interest rate that they can depend on.

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Top Free Credit Report Secrets

By Anne Ahira

Getting your annual free credit report is easy! The Federal Trade Commission has acknowledged the fact that identity theft is on the rise, and that more and more individuals are discovering incorrect items on their credit reports.

This is why persons shall now obtain one Free Credit Report from whichever of the three "major" credit reporting agencies in the United States yearly

These organizations enclose TransUnion, Equifax, and the ever-popular Experian. All you have to do is actually request the inform from every of the groups once each year. Once you make the request, in some weeks, you shall get your annual free credit report.

If you desire to create the procedure of getting your annual free credit report a little easier than going to several personal credit group you can do this by visiting the Federal Trade Commission's website. From this website, you afford be redirected to

Despite the fact that it is true that you can go to this website forward on your own for your free credit report, it is vital to carefully watch what you are typing to ensure that you land on the proper page. If you miss just one letter, you possibly will end up arriving at a website that is set out to scam and spam persons who are searching to acquire a free credit report.

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Things You Need To Know Before You Sign For Your New Mortgage

By Rick Greene

Economic times are tough. Because of the fact that properties don't rise in value and in some cases even drop in value, homeowners are worrying about the debt they incurred on their house.

The next few months, many fixed rate mortgages are set to be renewed. You will get an offer from your lender for a new mortgage. Be sure to check this thoroughly. Banks have taken a lot of hits lately. Luckily for them, the government has decided to pump billions and billions of tax dollars into their companies. Despite these 'rescue plans', banks have yet to recover completely.

Before you go into the negotiations for a new mortgage, be sure to check what fees are quoted. Many mortgage fees have gone up the last couple of years. Also, if your credit score has gotten worse in the last few years, you may be confronted with a higher interest rates and higher monthly payments. If, on the other hand, you have equity in your home and a pretty clean credit history, you can get ready to negotiate with your lender.

You need to be aware of the fact that lenders want to keep their clients with clean payment histories. They appreciate the fact that these clients are reliable and favor them over the occasional price shopper. This can help you in the negotiations.

Before you go and negotiate with your lender, do your homework and browse the Internet for information. It's easy to find the current average interest rates for your type of mortgage and see what deals are out there. Know upfront what you can expect.

Have your lender spell out all the fees involved, not just interest rates. You want to know the total cost of changing or renewing your mortgage, so you can make an informed decision. If you don't ask for a complete picture now, there's a serious chance you will get it after the closing has occurred and you've already paid all the fees.

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Don't Overpay Purchasing Personal Checks - Save 50% Online!

By Margaret Black

You're almost out of checks and before you run dry you may be thinking about running to the bank. But you can order checks online and save the middleman bank markup. There is no need to let the bank profit from your purchase.

Banking institutions need to make a profit and markup the price of checks they buy from a check manufacturer. When you order checks from the internet direct from the manufacturer you are buying at wholesale prices. You'll not only save money but are able to order from your own computer saving gas, time and taxes.

There are a great diversity of check designs and categories to look at. You'll be surprised at the varied categories and artists that contribute to designing checks.

You'll save about 50% when you order direct. The quality of checks is no different then the quality of checks the bank sell you. After all you and they will be buying for essentially the same place. The only difference is you have more choices of categories and motifs.

Contact cards, checkbook covers, matching address label as well as various types of check formats are available. Popular side tear, top stub and 3 per page and other personal and business check formats are also available. Your draft checks bookkeeping needs to be vigilantly balanced as you well know. Easy to view accounting check registers are also an important consideration.

Checks are deposited at the bank. Sometimes, when the payee is uncertain about a check, they will cash that check in the bank against which it was drawn.

When there are not sufficient funds to cover the full amount of checks the check will not clear. This bounced check is bad news from a variety of perspectives.

Banks make a bonus when they get bounced checks. Their steep service charges that are imposed make one take quick notice. Keeping accurate records to avoid service charges is essential.

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Be Cautious Bill Consolidation Scams Abound

By Frank Froggatt

There are various debt consolidation parties obtainable that are good parties and will take care of your accounts correctly. Unfortunately though there are many that are cons but appear great from the outside.

There are 2 manners you can be conned by debt consolidation companies. One way to get gypped is the party will require your cash and not give the requitals for you. Although you can easily check to determine if your lenders are obtaining your payments, some people just assume that because the party took the requital that they also sent out the payment.

Another rip off by problematic debt companies is when they receive your funds and don't establish your requitals as agreed. Checking with your creditors to make sure that they are getting paid is simple enough though some people just assume that since the company received their money they'd induce the requitals as agreed upon.

On the other hand there are quality parties out there that do the right things as well, you only have to be thorough. In order to keep your money safe the best thing to do is make a lot of inquiries before you select a company. Make sure any company you are debating on working with is recorded with the BBB and does not possess any complaints against them. You can likewise look for the company on google or google blogs and verify what individuals pronounce about the party. You should also make a point that they can be contacted by telephone.

You should as well find out and make a point you have picked out a party that is a debt consolidation company and not a debt reduction company. The differences are quite sizable and a debt reduction company is going to mar any good credit you might have. They gain resolutions with all your creditors so that you can pay less to get debt free. Ultimately though you will wind up paying greatly because of the awful credit rating.

Absolutely make sure to receive EVERYTHING in writing so you constantly understand what's going on. Keep records on companies receiving your requitals and do your research before you join with a debt consolidation company or program. Likewise debt education can teach you how You can avert making the same mistakes over again.

While debt consolidation is not invariably the optimal choice, it is usually better than debt reduction and there should be less concern about being conned. Just don't give up searching for the optimal spot to execute your business and you will find the respectable companies out there that desire to assist you.

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Personal Finances in Trouble? Consider These Options

By Daniel Atolben

Are you deep in debt and looking for a way out? Are you living paycheck to paycheck, paying bills late and barely scraping by? Managing your personal finances can be tough and there are many people in your same situation. There are some things you can do to help relieve your financial stress.

First off, you should try to repay your debts as you have agreed to. Work out a budget, limit your spending and as you pay off your credit cards, don't spend on them. If you've maintained good credit then see if you can ask for a lower interest rate or transfer your balance to another credit card that has a lower interest rate. Some may offer you a limited time at a low or zero interest which may be what you need to get ahead of your payments.

Look at ways to increase your income. Think about taking up a temporary job to supplement your income. Consider downsizing your lifestyle so you can have more spending money. If you're making payments on your car, then think about selling it and buy a used, dependable one. Think about getting a roommate or moving to a smaller apartment. If you can generate just a few hundred dollars a month then you can bring down your debt in no time.

Getting a debt consolidation loan is an option that is attractive even if you're not in financial peril. This type of loan will pay off your other debts, offer you a lower average interest rate and give you one monthly bill. A debt or credit consolidation loan can be fairly easy to get if you have equity in your home and have a decent credit history.

Another, less desirable option is debt negotiation. With debt negotiation, you or a third party negotiates with your lenders for a lower interest rate, extended payments, and/or lower monthly payments. By doing this, you can afford your monthly bills and you'll have fewer worries. This comes at a price, however. Your credit cards will be frozen until your debt is clear and your credit report will be adversely affected.

There are debt negotiation services available to help you. They usually charge you a monthly service fee but they can help you get your debt under control. They advertise in the phonebook and on the internet. Be wary of ones that sound too good to be true. No one can just erase debt with no repayment unless it's through bankruptcy.

If you don't know the best option for your financial situation then get help from a credit counseling service in your area. They are usually non-profit or not-for-profit so their fees are nominal and they offer you a free consultation. Not only will they help negotiate debt settlement but they can also help you plan out a budget. You can soon be on your way to relieving debt and ending your financial burdens.

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Debt Settlement - What Does That Mean?

By William Blake

We all get into financial situations that we can't handle from time to time. Sometimes the debt we incur is more than we can cope with and we need help. If this applies to you, then debt settlement is one possible solution. However, be aware of all that it entails in order to make an informed decision about whether it is right for your situation.

Once a debt is past due it begins to grow at a rapid pace. This is because of the many late fees, over limit charges and other penalties that are charged to the account each month. If you have not been able to reach an agreement with your creditors you may need outside help.

There are agencies that specialize in helping people settle their debts with their creditors. A specialist can analyze your unsecured debt to see if you are a candidate for debt settlement.

An unsecured debt is one that is not backed by any collateral. It is a greater risk for the creditor because they extend credit to you with nothing to fall back on except your promise to pay. Credit cards are the most common unsecured debts.

Creditors have the right to report your debt settlement to credit reporting agencies. This means that a debt settlement will have an impact on your credit scores. These affects could be somewhat long term so you want to consider this before moving forward with debt settlement.

If the debt settlement agency determines that your debt does not exceed the amount that you could reasonably pay then you will not be eligible for debt settlement. If in your case the amount of your debt does exceed what you could reasonably repay the agency will begin to work up a proposal based on what you can afford.

Interest rates and late fees will be considered first. The settlement agent will see if he can negotiate a reduction of interest charges or the forgiveness of certain fees or penalties to help you focus on repaying the principal amount of the debt.

Once you have enlisted the services of a debt settlement agent all of you dealings will be with that company and you will no longer deal directly with your creditors. You will pay a determined amount to the settlement agent each month and that amount will be distributed by him to your creditors according to the agreements reached.

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Paying your Debts Soon has its Advantages

By Paul J. Easton

Why pay your debt sooner than later? Because when you pay your debt off, you will have greater credit to draw on. Given your current income, lenders calculate how much you can borrow by looking at the amount of outstanding debt you have and how much more you can afford.

If you have a lot of credit card debt or you pay other sizeable monthly installments, it is natural for lenders to be a little wary of letting you borrow more. Pay down all your credit card debts and free up some cash each month. By then, you will qualify for more credit.

By paying down your debt, you will have better cash flow. You will certainly reduce the amount of your monthly installments from now on. As a result, you will have more extra cash for your personal expenses and other extras. With extra cash flow, you will less likely to borrow from credit card companies for your daily needs.

You could have better use of your money if you pay off your debts. Rather than paying the interests in your debt every single month, you could deposit to a savings account where you will earn for yourself interest. Without the debt finally, you can probably invest in a property to receive rental income or earn capital gains when you sell it later.

If you consistently pay only the 2 to 3% minimum amount, you are doing one the greatest mistakes of your financial life. Save yourself from carrying thousands of debt and hundred dollars in interest charges annually. Cut back on minor expenses you don't really need like lunches outside or stop buying coffee to save up money to pay more for your credit cards each month.

So paying only the minimum amount on your every credit card's due will not do the trick. Just make sure you pay the balance off within 30 days after purchase. Carrying the balance will deprive you of the many mentioned benefits above.

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