Debt Relief

Let’s Talk About Debt

February 23, 2012
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The following is a guest post from Suzanne of CareOne Credit No, I am not joking, I really want to talk openly about debt.  For many American’s living with economic challenges has become quite normal. Of course, most of us don’t really view the stress of mounting credit card debt as a ‘challenge’, but more of an inconvenience to be dealt with eventually…like retirement. Paying off or consolidating debt is one of those things on our to-do lists, something we resolve to work on with the New Year etc.  But, it’s not something we actually deal with, not until we have to. It is the lack of familiarity with their options that holds most people back from finding debt help.  It can be confusing to understand the difference between debt consolidation, debt management, debt settlement, bill consolidation, loans and more. The only well-known way to get rid of debt is bankruptcy and that is not really a solution as much as a last resort. So let’s make this a reality.  Take a few minutes, get online and do some research.  There is a wealth of information available on; blogs, providers of debt relief services websites, and reviews sites, all talking

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5 Steps To Fix Financial Failures

November 28, 2011
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5 Steps To Fix Financial Failures

While surfing blog comments at other personal finance blogs, I came across a story of a reader. Which reads like below. A couple of years ago, I was doing well when it comes to finances. I knew I was doing better than a lot of my friends and family. I was having a good job. Everything was actually really, really great. Then recession came—and my world, as well as the others’, came tumbling down. The start-up company wasn’t able to pick itself up and it had to close down, leaving me with no job at all. My wife was also laid off from her job. No matter how much we searched for work, no one would like to take us! For seven months, we weren’t able to do anything, and before we knew it, our savings dwindled. We could hardly pay our utilities, much more our credit card bills. The invincible feeling I had dissipated; and I was left with anxiety, panic, and self-pity. For over a year, we were struggling, depending sometimes on the help of friends and family. I haven’t faced financial failure in my life so far. Somehow I managed to get around with single income. But,

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Save Money by Paying Your Debt Faster

October 18, 2011
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Paying debt at the minimum rate is not only a waste of time, it’s also a waste of money. You can save thousands of dollars, by paying off your debt faster. It may seem counterintuitive – to pay off your debt faster, you have to spend more money. That’s true, but you’re only spending the extra money in the short-term, a much shorter period of time compared to how long you’d be paying your debt if you stick with the minimum payments. Not only can you save money by paying off your debt faster, you can maximize the benefit of paying your debt off faster by investing your payments once your debt is completely paid off. How Much We Spend on Interest No matter what kind of debt you have, part of your monthly payment goes toward interest. That portion of the payment does nothing to reduce your payment. So, for example, if you have a $1,000 credit card balance and a 12% interest rate, your monthly interest charge would be about $10. When you make a $50 payment, your balance only goes down by $40. The other $10 goes toward interest. This happens month after month but on a larger scale if your debt balances are higher.

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You Are Debt Free, Can You Remain Debt Free?

September 5, 2011
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You Are Debt Free, Can You Remain Debt Free?

Have you looked at your health insurance documents lately? If not, you might want to do so. Your health coverage could end your debt-free adventure at any time. I have an Aetna policy with a $5,250 in-network deductible. So far this year (fortunately) SMB and I haven’t had to visit a doctor or hospital. But if either of us gets sick, we have to shell out money from our pocket up to this maximum. (I am not discussing the ways to choose a health plan, so don’t get distracted.) The point here is, whatever your out-of-pocket maximum may be, are you prepared to pay it off? Do you have that money? You have worked very hard and now you are debt free; a big congrats! Now the next big hurdle is to remain debt free and continue to build wealth till you become financially independent or till you die, as simple as that! Pundits will suggest don’t use credit card and you will remain debt free, what if you are on low income and can not cough up emergency cash without borrowing money? An illness is just one of the ways your debt-free life can be cut short. There are thousand of

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Wise Use Of Credit Card Can Help You Avoid Debt

July 20, 2011
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This is a guest post from Paris Mitchell who is contributory guest columnist for various websites and communities including Oak View Law Group. She has completed Masters in Finance and is currently working with an Investment company located in California. she has written many articles on topics like mortgages, refinance, credit-card-debt-consolidation, credit-card-debt-relief, credit-card-debt-settlement, bankruptcy, working from home, investment opportunities, etc. Credit cards can apparently seem to be convenient for the consumers. But the susceptible consumers are exposed to high risks due to bad spending habits as they spend more than they can afford. A considerable number of US consumers have multiple credit cards, and each card has a large amount of outstanding dues on it. So, the debt stricken consumers opt for credit card debt settlement programs to pay off their owed amount. The cardholders should get a formal training on personal finance management. This will help them to behave responsibly towards their finances and avoid debt that will lead to build a good credit score. The consumers should remember that handling credit in a prudent way can make them economically cautious and can avoid associating with frauds. Here are the 3 basic tips to keep in mind before an individual decides to apply for a credit card Check for hidden costs The consumers

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Your Credit Cards And Their Hardship Programs

June 23, 2011
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Your Credit Cards And Their Hardship Programs

Steve recently lost his job at a sporting goods manufacturing company, he has 3 credit cards each with high balances. He now lives on emergency fund and a little help from his wife’s income as a play school teacher. They have two children of age 10 and 6. Because of a combined debt of $25K he has to pay $500 per month to keep his credit card active and score in-tact. He has the below options in front of him Declare bankruptcy – In order for him to continue to look for decent jobs, he can’t do that Settle his debt – Since he lives on emergency fund, he doesn’t have the money needed to settle his accounts A little side business to continue to pay minimum due amount – This will hamper with his preparation for job interviews. A side business that earn $500 per month is not an easy task. Talk to a credit counselor - Getting help from credit counselor, surely this is one of the best ways to deal with the situation, read more about Credit Counselling. But it is not the best option available for you, a simple effort can bail you out of the

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