Credit Card Fees-Lead To Staggering Amounts Of Debt

Monday, December 17th, 2012

Money is tight for a lot of people, and most of us are forced to live paycheck to paycheck. We also tend to rely on things like credit cards to get us by. This has led to staggering amounts of debt for thousands of people. Credit card debt is one of the primary forms of debt in America because of this. So if you are one of the people in debt, you know how stressful it can be and how much you wish you could claw your way out.

Dealing with all the Credit Card Fees, the endless phone calls from your creditors, the stress of knowing that most of you money is going to just paying off these things, all the while forcing you to continue use them. It is a vicious cycle that can be exceptionally difficult to break.

But while it is difficult to break, it is by no means impossible. In fact there are some fairly simple tips you can use to slowly pull yourself out of the hole of credit card debt.

The first step in getting out of debt is to create a budget. Look at how much money you get every month, then look at how much money you spend every month. If you sit down and look over your expenses, I am sure you will notice a lot of frivolous things that you can cut out to help yourself with those Credit Card Fees. Something as simple as getting a coffee in the morning can really add up.

If you can cut down these unnecessary expenses, you can then take that extra money and apply it to your debt. It may be tempting to throw it at your largest debt first, but this is the wrong move. We need our little victories, and it is also a snowball effect. So if you have multiple credit cards and are in debt with each, look at the one with the least amount of debt.

If you take that money you are saving and put it all towards paying off the lowest credit card, you can make some serious progress and actually pay it off quite quickly. This will give you that victory you need, it will boost your morale as you can see you really can claw your way out.

But that is only the beginning. From there you will want to apply, not only the money you had been saving by cutting back on unnecessary expenses, but also the money you are saving by not having to make payments on that credit card. Now you will have a lot more money every month that you can apply to the next lowest debt.

It is a rinse and repeat process from here on out. You just take the money you save by paying off a card and apply it to the next highest one. It will take a long time to knock out those Credit Card Fees if you are deep in debt, and you may need to do some extra work to get there. But by utilizing this method you can make some serious headway in your fight against your debt.

Dont Lose HopeThere Is Bad Credit Financing

Friday, November 16th, 2012

There was a time, not all that long ago, when it was fairly simple to receive bad credit home loan financing. One of the major providers of such a service was Countrywide. Unfortunately, they were giving loans to high risk borrowers and eventually Bank of America took over. Countrywide were such big players in the market that their absence makes it more difficult to get bad credit home loan financing today.

But don’t lose hope. It is still possible to get this kind of financing, however it will probably take a bit more time to find what you’re looking for.

One of your first tasks is to figure out if you are really a subprime borrower or not. The quickest way to do this is by checking your credit report and finding out what your credit score is. A lot of people are happily surprised to discover their credit scores are higher than they assumed. Those with a credit score of 620 or better will most likely be able to get a traditional loan as opposed to bad credit home loan financing.

But even if you have a score that’s between 580 and 620, there is still something you can do, and that is raising your credit score. Go over your report and look for any inaccuracies that may be corrected. Also, be sure to pay all of your bills on time and try to bring down the total amount you owe all of your creditors. It may take a few months for your credit score to go up, but it will be worth it if it means getting better terms on your financing.

However, these tips may not be enough to get your score high enough, or it may be well below 580. You still may be able to get bad credit home loan financing, but you should be aware that it will come with a higher cost if you do get a loan. In the eyes of a lender, you are a higher risk, and that risk comes out of your pocket. This usually means paying a higher interest rate, and even one percentage point can add up to thousands of extra dollars over the life of your loan.

A good place to start looking is online. Go to your favorite search engine and search for “bad credit home loan financing” to see what’s out there. The internet also makes it easy to compare quotes from several lenders at the same time. You will have to enter some basic information, and then you will be presented with results from different companies. Being able to do a side by side comparison is convenient and will help you to see which offers fit in best with your current situation.

Finally, there is some good news even if you have to pay high rates for your bad credit home loan financing. If you are able to make all of your payments on time, and can improve your credit score over a period of two years, you can almost always renegotiate the terms of your agreement to make them more favorable to you.

America And Responsible Spending-Financial Crisis Of Epic Proportions

Sunday, November 11th, 2012

The United States is headed for a financial crisis of epic proportions. If the words America and responsible spending doesn’t send you into fits of laughter or bouts of despair, I just don’t know what would.

The United States currently owes more than sixteen trillion dollars. That is the number 16 followed by twelve zeroes. Twelve!

I just do not think you can say the words ‘America and responsible spending’ in the same sentence without including the phrase, “yeah, right!”

So what does the average American learn form all of this from our own government? Not much good, let me tell you.

Now, the average American does not owe that much to his creditors compared to the national debt but whoever decided to tell Americans that the American dream was to be in debt up to their behinds was completely misinformed.

What happens to John Q. Public when he gets behind on his bills and can’t find a way to pay them? Someone comes and takes something away from him. His car gets repossessed or his house goes into foreclosure.

Maybe, if he still has some income coming in and hasn’t lost his job yet he can work hard at getting his outstanding debt in order by learning to do it himself or calling a credit counseling service to teach him how to manage his money better.

If none of this works or the debt is just too big then there is also the last resort of Chapter 7 bankruptcy.

The best thing about a credit counseling service is the fact that they will get all of the collection phone calls stopped and will try to negotiate a settlement with the lenders and other creditors.

This can relieve some of the stress of the whole situation so you can have the opportunity to just stop and think about it all clearly for a change. You may even be able to come up with a solution of your own if that happened.

The bad thing about a credit counseling service is the fact that their services do not come free. You have to pay them for helping you out of a bad situation. This may be a difficult thing to do when there is not enough money to go around to begin with.

Anyone can get themselves out of debt if they really put their minds to it. The first thing to do is to free up as much money as you can. I don’t care if it is only five or ten dollars a month.

Pick a bill and send them that extra cash with your regular payment. Then when that bill gets paid off use all of that money to pay off the next one on the list and so on and so on until you are debt free.

America and responsible spending may be out of reach for the government and the country a sa whole but if you set your mind and budget to it, it isn’t for you. Fix your American dream by becoming debt free.