Sudden Debt…What to do, what to do

If you read the “public record” in your daily/weekly newspaper as frequently as I do, you’ve probably seen how more and more of your friends, neighbors and local residents are having to resort to “bankruptcy” proceedings. Perhaps you’re in that group, too. Such a time, causes food for thought…

Sudden debt can crash unexpectedly into the lives of almost any of us at any time.

We can be going along through life quite happily–and then bang! Without warning we find ourselves in debt and it’s well… so sudden!

Debt is also something that many of us have been told since childhood is a bad thing! In fact, there was quite a stigma attached to it-it was almost like having a “Scarlet Letter” carved into your forehead.

And that just adds to your woes.

Here you are, unexpectedly in a traumatic situation and you get hit by the double whammy of sudden debt; not to mention the guilt!

If you think it will never happen to you don’t be too sure.

For instance, think of something as simple as an accident. It doesn’t even have to be your fault; you are unexpectedly hospitalized for a couple of months. Do you think while you’re laid up there in your hospital bed it’s just possible that making the payment for your credit card bill might be forgotten?

And what happens when you forget to make one or two of your monthly credit payments?

Those nice friendly guys at the loan company who so recently as last month wanted to increase your credit card limit now turn into Don Corleone and the boys from Mob! They start to slap on late charges and the horrendous interest now starts to attract interest on itself and, and…

Well, you get the picture.

So what do you do when you find yourself facing sudden debt?

The first thing is not to panic. Easy enough to say, I know, but panic really isn’t going to help. Just stop and think of a plan of action.

Before you do anything else at all, contact the companies to whom you owe the money. Explain the situation you’ve found yourself in and ask what they can do to help. Some, not all, but some companies will freeze the interest, especially if you’ve always had a triple A credit rating in the past.

And a worst case scenario? Assume your creditors aren’t helpful. If you find that is the case then start to look at some options.

Although not the most ideal consideration, do you have a family member that can lend you the cash to pay off what you owe? With payback of interest included, of course! If not, what about your bank? Ask them for a loan that you can repay over a period of time with which you feel comfortable. That way you can begin to gradually get back some control which will allow you to begin to chip away at that sudden debt. And you’ll be able to feel a lot better about the situation and yourself, as well.

Yours in deciding the best ways to handle sudden debt,

Beat the Credit Card Blues: 5 Super Strategies For Breaking Dangerous Spending Habits

Since we’re coming into the last quarter of the year and Christmas buying is just around the corner, it may be time to review our credit standing. Particularly, since we know that many of us consumers continue to struggle to get out from under our credit debt.

In fact, the average American is carrying almost $2,500 in credit debt each month. These financial consequences can be critical, and long lasting.

But think about this for a minute. For a consumer paying only the minimum payment of $50 a month on a $2,500 credit card bill, (at the average 16-percent interest,) they are paying off a mere $10 of principal. There’s another $40 being added on in interest EVERY MONTH. So in only one year of paying minimums, they still owe $2,380. Now imagine if the credit bill is $15,000 or more…the word dangerous is certainly appropriate.

Want to do things differently?

Want to put your debt on a diet? Try these five super strategies and break your dangerous spending habits today:

1. Step away from the counter. Give yourself a time-out when you feel the temptation to make a purchase. For an item over $100, put it on hold, and leave the store. Let the idea sit for 24 hours, and then ask yourself whether you really need the item: the answer is likely “no.” For clothing and other purchases, put the item on the 10-minute hold rack. Walk away, get a drink or a snack and decide if you really need it or just impulsively like it.

2. Set goals. Decide how quickly you want to reduce your debt, and how much you can afford to pay down each month–but don’t stop there. Set financial goals that involve “positive” incentives, too, such as savings and vacations.

3. Start canceling cards. How many credit cards do you really need?
Most people need at least one to handle payments that can’t be made easily any other way–and you may need two, depending on where you usually shop or travel and which card is accepted.

4. Lower your limits. Save yourself the grief of overspending and not being able to afford it. Most people don’t know that you don’t have to accept the maximum credit limit that your issuer is willing to provide. Choose the limit that you’re comfortable with, and tell your credit card issuer – in writing – that you don’t want any automatic increases. That way you stay within your budget.

5. Consolidate. If you’re dealing with several cards with debt, look for a financial institution and apply for a consolidation loan. A loan such as this, at a competitive lower rate, will allow you to make one convenient monthly payment that is far lower than your various cards and will give you a fresh start.

While the inclination might be to cancel all of your credit cards once and for all, the credit card, managed sensibly, is a opportunity to show establish good credit.

And when in good hands, they aren’t all bad!

Yours in consolidating,”

Tips To Help Reduce Your Debt, Part 2

In yesterday’s post, I provided several “tips for reducing debt” and said I’d be back today with a few more. Well, it’s “today”, so here they are.

Get rid of your credit cards

If you are determined to reduce your debt, cutting up your credit cards will help. If you do not have them, you can not use them. If this is too big of a move for you, at least think about getting rid of the unnecessary ones. Keeping only one or two, low interest rate cards for emergencies only, is a good idea. Remember if you cannot pay cash for something, then you probably do not need it.

Pay off your debts

If you have already acquired some debt you need to pay off, now is the time to get started. Decide which debt is your smallest and start with that one. Pay on it as your budget will allow.

Once your smallest debt is paid off, you will have a good feeling of satisfaction and accomplishment. You’ll feel empowered because you’ll know you can pay off your debts. Then move to the next smallest debt. It is easier to pay them off one by one, and you don’t feel overwhelmed. And before you know it, all of your debts will be paid and you will feel great knowing you paid them off.

Debt consolidation

Debt consolidation is another option to look at for reducing your debt. Debt consolidation companies, will call your creditors for you, and make payment arrangements for your debts. In fact, many companies will get you one, low, monthly payment to pay each month, until all of your debt is paid off. This, too, will make managing your funds versus your debts much easier.

Financial counseling

Make an appointment with a financial counselor to help you reduce your debt. Some people find that it helps tremendously to have someone else point out the errors in their spending habits. You’ll also find that financial counselors are able to show you how to better manage your money, and how to stick to a budget.

Yours in figuring it all out,

Tips To Help Reduce Your Debt

Reducing your debt probably isn’t your most favorite thought, but with the times as they are now, it’s important that you pay closer attention to where your money goes.

So, I’ve located a series of tips for reducing debt that might be of interest…and I’m adding them here. Tomorrow, I’ll post a few more.

As debt continues to increase in many households across America, more families each year are finding themselves looking for ways to reduce their overall household debt.

For some, this may be easier said than done. Debt reduction requires a lot of hard work and dedication. Especially when you are used to spending money left and right.

Those that are serious and committed to reducing their debt will eventually reap the rewards of being debt free. Reading the following simple tips (today and tomorrow) will give you many ideas on how you can reduce your debt.

Cut back
When you start to cut back on spending, you will find corners that you can cut throughout the month to help you pay off your debts. Simple things, such as:

a) Being aware of all of the electricity you use, and
b) Turning off lights that are not needed as you leave a room

will help reduce your light bill. Therefore, you save a little more money to reduce your debt with. Once you become aware of your spending habits, and start cutting back, you will start to notice more ways to cut back each month.

Budget
Budget your income. List all of your monthly bills and their due dates.

Apply them to your budget, as well as other household needs, for example, groceries, gas etc.

Allow yourself only so much money per month to spend on extras. Sticking to your budget will show self-control, and determination for reducing your debt.

Limit the use of your Credit cards
If you cannot pay cash for it, then do not buy it. If you have to charge something, make sure you can pay the balance in full when your next credit card bill comes in.

Never charge on your credit card to only pay the minimum monthly amount.

You will never get that maxed out credit card paid off that way. The importance of paying your credit card balance in full, cannot be stressed enough.

Stop back tomorrow; I’ll have a few more tips to help you reduce your debt.

Yours in figuring it all out,

P.S. In the meantime, you might want to swing over to my blog, As Long As You’re Here to read tips about Internet Marketing. Or perhaps a brief swing to Lynn Terry’s “Self-Starters Weekly Tips” membership site will interest you.

Little Known Tips To Buying Fitness Equipment

Did you know that buying fitness equipment for your home isn’t really that difficult?

It’s true that the world of fitness equipment can seem like a maze at times and that there are literally hundreds of different types of fitness equipment pieces that might work well for your home arrangement.

However, with a little guidance, the process really isn’t that hard and you will be amazed at the bargains you can find if you just dig a little deeper than the average consumer is usually prepared to.

Let’s look at some tips to help you in your quest for new fitness equipment.

1. Look at used equipment.
This is where some good deals can be found. Fitness equipment can obtain a weird status in a person’s home. They might have been really excited to buy it initially and dreams of a fit body and monthly gym savings might have filled their head.

However, after 3 months, the equipment often sits vacant in that person’s home. Used equipment can be a really good deal due to the fact that it’s often times almost as good as new but now it’s for sale. To you. For cheap. Check out newspapers, Ebay, and other places; compare prices and get a deal.

2. Consider commercial fitness equipment.
Often times, you can buy the same equipment that your local gym has.

Imagine, you can have that same (gasp!) Stairmaster that has dogged you for years at the local Ballys, right in your basement. This might be appealing to some who have the capital to invest in a large piece of equipment. If you no longer have to pay a $50 monthly fee to go to a gym each month, this might be a really smart investment.

So look into commercial equipment, you might be pleasantly surprised.

3. The first two points are almost worthless…
without considering the financing of your new fitness equipment.

When considering financing your new set of fitness equipment there are tons of important factors to keep in mind. You really don’t want to be paying too much for equipment that might be found at a cheaper price (after everything is considered) elsewhere.

Yours in purchasing exercise equipment,