Debt Free Solutions You Can Use Immediately

Do you feel frustrated and overwhelmed with debt? I hear you and I feel your pain. Don’t stay stressed out. Do something about it. Find and implement debt free solutions to get you out of this stinking debt hole. Achieve financial freedom once and for all. In this article, I will teach you how. Are you ready? Let’s begin.

 

Know your options. Many people mistakenly believe that bankruptcy is their only option but they’re wrong. There are many other choices available to you. In fact, bankruptcy should only be used as a last resort because it can kill your credit and break your spirit. In addition, it will take years (if not forever) to repair the damage caused by bankruptcy.

 

Do it yourself. Yes, you can tackle your debt with your own methods. In fact, if the total amount of debt is not too great, try talking and working out an agreement with your creditors. They may be able to work out a payment plan that fits your budget. In addition, you may be able to negotiate a lower payment schedule, lower interest rates and even more attractable terms. In fact, many unsecured loans can be settled for 35 to 50% less than the original amount.

 

Get a debt consolidation loan. When you get a debt consolidation loan, you take your existing debt from one creditor and pay it off with funds from another. In return, you are typically awarded with lower interest rates and better terms. In addition, you will only have to worry about one bill.

 

Seek credit counseling. There are tons of nonprofit and profit organizations that offer low cost credit counseling service. Not only can they help negotiate for lower rates, waived late payment fees, and debt settlement offers but they can help you devise a realistic budget as well.

 

Consider a debt hardship. If you have not been able to pay your bills because of job loss, divorce or illness, you may be eligible for a debt hardship. For instance, student loan companies offer economic hardship forbearance and allow you to withhold payments for awhile.

 

In conclusion, there are many debt free solutions to get you out of debt. Simply, know your options, do-it-yourself, get a debt consolidation loan, seek credit counseling and get a debt hardship. By doing this, you can get rid of debt and achieve financial freedom as well. Good luck!

 

 

 

Find More Student Loan Debt Counseling Articles

Credit Card Debt Relief

If you now find yourself living with credit card debt then you are not alone. With the debts rising, it is not surprising that individuals have started to realize the financial problem they have created by the constant and indiscriminate spending they have carried out. Before the situation goes too far, seek a credit card debt relief solution to the problem.

At this point it is important to start as you mean to go on and stop all spending on the card otherwise it will make arranging a debt relief plan much harder to implement. Often, it takes some time to realize the seriousness but credit card debt relief is possible providing certain steps are taken. There are various debt consolidation alternatives available but the three most common options are detailed below.

The easiest method of debt consolidation is where the person still has a good credit rating and uses another credit card that has a low rate of interest where all the debts can be transferred to one card. A good alternative to this option is a consolidation loan at a low interest rate where the debtor can decide exactly how much they can afford to repay every month after the outstanding debts have been cleared.

However, this option means that the cards must still be destroyed or it will be easy to start using them again and running up further debt. While arranging a new low interest rate card or loan to consolidate debts is the easiest option to take, it is also only available if the person’s credit rating is in tact.

If this avenue of credit card debt relief is not available then the next option is to look towards negotiation with the card issuer directly or through a company that specializes in debt relief. Debt relief companies usually have a good track record at this type of negotiation with the usual arrangement of around half the outstanding debt will have to be paid and any balance can be dropped.

The final option is bankruptcy which should not be taken lightly but if the debt is totally out of control and there is no way to escape from the debt trap then filing for bankruptcy may be the only way out. This is the last resort for a debtor because once they declare bankruptcy, their credit standing fails and it will be difficult to get further loans; however, the positive aspect of filing for bankruptcy is it enables a fresh start. Hopefully, the debtor will learn a lesson from this so they do not require relief from their credit card debts in the future as bankruptcy is an option that will not always be available.

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Guide to securing a mortgage loan

Owning a home has always been an essential element of the American dream and one of the most critical investment decisions anybody would make in life. Just before the mortgage crisis, home ownership was so easy and simplistic. This was for the simple reason that due process was not followed by mortgage companies and banks in approval and advancement of loans. The ensuing inability of most home owners to meet their loan obligations, and the consequent foreclosures and its ripple effects on the economy was a wake up call for lenders to review loan approval guidelines and requirements, necessitating a tightening of existing loopholes that were previously abused.

The mortgage loan approval process today places more burden on the prospective home owner, to ensure that all necessary information needed to back up the loan application are readily available. The lender needs to have all material information (facts and figures) to prove that the mortgagor (loan applicant) has the ability and resources to fulfill the loan obligations.

An individual seeking to buy a home by reason of the existing strict regulations, have to get a mortgage loan pre-approval or pre-qualification which involve an assessment of the individual’s financial standing by which the lender decides if the individual is qualified and how much loan the person could secure.

The following factors are taken into consideration by the lender in reaching a decision in approving or denying a loan application. The loan applicant’s debt profile, consisting of such commitments as auto loans, student loans, credit card payments are calculated against the anticipated monthly mortgage costs to determine the person’s ability to sustain the mortgage loan.

Another key issue is the individual’s credit history. An individual’s credit report is a reflection of the person’s financial discipline. The lender needs to know if the loan applicant has a history of credit payment defaults as well as defaults in payment of utility and other bills.

The applicant’s income is also a very important determinant of the success or failure of a loan application. The lender has to be sure that the loan applicant’s P.I.T.I (Payment, Interest, Property Taxes, Insurance) does not exceed 28% of the person’s pre-tax monthly income. Further to this, the lender is also interested in the applicant’s job history. The lender needs to be sure that the applicant has maintained a steady job for a reasonable length of time.

Finally, the loan applicant has to show evidence of availability of cash in lieu of the down payment which may range from between 5% to 20% of the loan sum. This is in addition to the closing costs which cover such fees for land survey, credit checks, title insurance, inspection and appraisal.

In the case of a first home buyer, it is advisable to seek the advice of a realtor for detailed explanation of what to expect in the loan application process. It would also be necessary to discuss with a mortgage broker in view of the need to get a pre-approval or pre-qualification.

Uchenna Ihejirika

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How to Decide if Debt Settlement is Right for You

Know what you owe

Most people don’t truly know how much debt they’re actually in. Knowing how much debt you really have is the first step towards getting out of debt. Make a list of your unsecured debts, including credit cards, unsecured loans, and medical bills. Figure out how much you owe, what the interest rate is, and what the minimum payment is each month. Are all of your accounts current or do you have any that are in collections? Are you continuing to add new debt on to the pile?

Know what you make

Next, you have to figure out how much money you’re making each month and how much is actually available to pay towards debt. This involves making a budget, keeping track of your spending, and knowing where your money actually goes. Once you’ve at least got an idea, take a look at your list of debts again. Is it possible to pay the minimums on your debt without going over budget or is there simply not enough money to cover all your bills? Is a better-paying job a possibility or could you take on a second job for extra income?

Know what your options are

Do you have money saved that you could possibly use to pay off some of your debts? Have you tried calling your creditors to see if they can work out a payment plan? Have you considered a debt consolidation loan, debt management plan, and/or bankruptcy? Are you considering debt settlement because you think it’s going to be a quick fix for your debt problem or do you truly feel as if you have no other better option?

Understand the process and its consequences

If you’re at the point where you’re considering debt settlement, then you probably have an idea of what it entails. Do your research so that you understand your rights and you have at least an idea of what’s going to happen. Know that your creditors may sue and if they do, what can happen. Know that your credit score is going to take a serious hit if it hasn’t already and that even though you may get rid of the debt, it will likely take years to repair the damage to your credit. Know that collection agencies will hound you constantly. Know that any debt that is forgiven may affect your tax liability later. Learn as much about the debt settlement process as you can so that you can be prepared for what may happen.

If you’re considering using a debt settlement company, do your research

There are companies that will offer to help you settle your debt for a price. Some of these companies are legitimate and they can help you but the consequences will still be the same. You may be better off to do your research and attempt to settle your debt on your own.

Debt settlement is not for everyone. It requires patience, courage, and a clear head. It’s not a decision that should be made without first evaluating your situation as completely as possible. You can eliminate your debt and pay less than you owe but the long-term effects are worth considering. There is no easy way to get out of debt and it’s up to you to decide if debt settlement is the most appropriate solution to your debt problem.