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IVA Advice

Posted by | Posted in Uncategorized | Posted on 01-07-2011

Getting into debt can be difficult for one to get accepted by creditors. An IVA is a solution available to get creditors to give you a plan you can afford. Getting iva advice is important because debt problems will not disappear on their own; they must be dealt with as soon as possible.

When getting iva advice, the first thing required is to get all the information together on who you owe money to including companies and financial institutions. Once you have all the information about your debts in one detailed document, the next thing to do will be to choose which debts have the highest priorities. You must decide which debts should be paid off first and which will affect you the most if time is an issue.

With an iva, you will be required to pay off as much debt as you can afford for a certain period of time after which all the remaining debts will be written off. Getting iva advice is important because it is a better alternative than declaring bankruptcy. There are several options available when seeking iva advice; call centers are available and there are practitioners which are also available to help you out. It is best to seek as much iva advice as soon as possible which will allow you to have more time to pay off your debts. Most iva advice is free when contacting a call center. They will help you make your plan to propose it to creditors who will normally give you a plan that is affordable to you.

One of the great benefits of receiving iva advice is that most of the debtors will have their interest rates frozen. This will allow you to only pay off the loaned amount without have to pay off the high increase of interest.

Correcting Your Debt Problem

Posted by | Posted in Debt Management | Posted on 17-02-2011

Dealing with ones finances is never easy, especially when you have a debt problem.  A debt problem is created when you end up spending more money than you spend on a consistent basis.  It is certainly possible that one might be forced to operate on a negative cash flow for a short period of time, but if you are unable to turn it around by increasing your income andor cutting your expenses then having a debt problem is inevitable. Some simple steps can be followed that will help you get your finances back on track and out of the red.

1. Spend Less Than You Make

Financially savvy individuals do not spend everything they make.  At the top of their financial priorities is savings.  These people are wealthy for a reason.  They didn’t spend every last dime they made. Don’t overlook this principle.

2. Make a Budget

The first step to eliminating your debt problem involves creating a budget.  A budget is a lot like a diet – neither does you any good if they are not followed. When creating your budget you should map out your monthly cash flow.  The cash flows will include both your expected sources and uses of money, also known as your income and expenses.  If you do not have a good understanding of where your money is coming from and where it is going you will never be able get on top of your debt problem. Thus it is also important to implement a budget as a tracking mechanism.  You should record and track your expenses each month.

Towards the end of each month you should analyze your financial situation.  Did you spend more then you made?  Where were your biggest expenses?  Can these expenses be curbed?  As you are analyzing your budget, you have to look for the fat that can be cut away.  For instance, if you find you spent a lot of money eating out then you can easily curtail that habit and eat in more.  That will save you money and help your bottom line. Your budget should be repeatedly reviewed and fine tuned in this manner each month.  Slowly but surely you will notice your monthly expenses decreasing below your monthly income level, creating some extra income.

3. Form a Debt Repayment Schedule

e you have created extra income, you can begin to address your debt problem.  Typically you will want to apply your excess money to the highest cost debt first.  Say you have debt on 3 credit cards with rates of 20%, 18%, and 12%.  To begin with you will want to pay the minimum monthly amount on each card, and apply all the extra income you have each month to the highest rate card (20%).  Once you have paid this card off, you will then take the monthly minimum amount you were paying on the 20% interest rate credit card plus the monthly surplus of money and apply it to the next highest interest rate card (18%).  Continue on till this card is paid off, and then do the same with the last card.

Make Saving a Habit

When you have paid of your debt problem the next step is to begin saving your extra income.  At this point it would be wise to begin taking the amount of money you were applying to your credit card payment and put it into savings.  You can continue to live the lifestyle you have grown accustomed to as you create a nice little nest egg for yourself.  The key to saving your extra income is being disciplined, and making saving both a priority and a habit.

As you probably know financial stability is priceless.  If you want to avoid a debt problem then you must remain in control of your spending habits, ensure that you are saving money each month, and continue to work hard.  Overcoming a debt problem isn’t always easy, but it can be done with hard work and discipline.

A Debt Consolidation Program To Relieve Debt

Posted by | Posted in Debt Management | Posted on 23-10-2009

Debt consolidation programs are good if you are paying on several different loans. They can make your life easier by giving you one monthly payment. Your monthly debt decreases if the program you use for debt consolidation stretches your payments over a long period of time.  Paying less every month will free up some extra cash.
A successful strategy sometimes is to use a debt consolidation program. With these programs you can manage various high-rate revolving debts with one payment. Let’s say you have several high credit card balances with high interest rates. With the debt consolidation program, you will be able to lower the interest rate you’re paying and manage the debt better.

Debt Consolidation Programs Reminders
A debt consolidation program doesn’t eliminate your debt. All these programs do is move your debt to make it easier to make the payments.  You will have to pay the money back sooner or later since you do owe it.

One problem with a debt consolidation program is you will feel like you owe less.  Your credit cards will again have large amounts of available credit for you to use. Beware of digging yourself into a deeper hole by continuing to add to these balances.

With a debt consolidation loan you may end up paying more in total interest. By stretching your payments over a longer period of time, your total interest cost could possibly be higher. Of course, it may help you more easily manage your current cash flow.

There are risks by using debt consolidation programs. If you’re using a home equity loan or line of credit to consolidate your debt, the consequences of falling behind on the payments can be disastrous. You could lose your home if it is pledged as collateral against your loan.
How to Choose the Best Debt Consolidation Programs
You should shop around to find a program that fits your needs. Local credit unions and banks you already deal with are a good place to start. They are a reliable source and will most likely give you a fair deal. You might also try a bank you aren’t currently working with. Be careful of scams though, when searching the Internet for debt consolidation.

When searching for a debt management company, look for experience, how professional the company is, their assistance and budgeting services. Try to find a local company you can communicate with without having to drive for hours to talk to your counselor.

The debt management industry is unregulated. Scam artist are out there waiting to charge your outrageous fees without informing you of the best solution for your situation. Try to find out some of their customers and talk to them. Get recommendations and research online if possible.
When you team up with a debt management company who is less than above board, you may be left feeling insecure. You should relate well with your counselor and understand what they suggest. That peace of mind should help you pursue your goals and your financial future more comfortably.

Also the debt management company your choose should be a be advise you on how to deal with angry creditors, whether bankruptcy is an option or how to consolidate debt or simply reorganize your bill payment schedule.

Remember, your main goal is to work towards a better understanding of your financial debts. You will want to learn how to take care of your own debts, assets, and financial goals through your counselor’s advice. The debt management and debt consolidation is only stepping stone towards your own financial self-reliance.

Debt Management Program The Easy Way Out Of Debts!

Posted by | Posted in Debt Management Companies | Posted on 21-07-2009

When faced with debt problems, it makes sense to seek help from a debt management agency. Today, there are scores of alternatives available to those suffering from debt problems. It is very important to tackle the debt problems in an organized manner. If you are unable to find a way through the problem, it is advisable to seek help from experts. This will help you get over the problem quickly.
Contrary to the popular belief that loans can ease the debt burden, they in fact create additional pressure on the borrower. If you can keep up with the payments, it doesn’t pose a serious problem. This rarely happens as most of the borrowers lose track of the loans they opt for. The mounting debts and umpteen number of loans add on to the existing pressure.
Debt management program is a boon to such borrowers. This program will guide you to adopt simple solutions which can help you get over the debt problems quickly. Managing debts becomes an easy task. As a borrower, you should have a clear estimate of the amount of debts you owe. This will help you get a fair idea about the number of payments you need to make. Based on this, you can decide upon the amount of loan you need to borrow.

You can opt for a debt consolidation loan which will help you pay for all the debts through one single loan. Instead of making multiple payments for all the debts, you can make a single payment for all the debts. This will help you reduce your monthly outgoings and get a loan at a lower rate of interest too. Over a period of time, you can save a substantial amount of money.
Now, you no more have to worry about the harassing calls of the creditors. You stand to gain in the following ways by opting for this program:

  1. Any kind of borrower can opt for these loans.
  2. You no more have to deal with the creditors.
  3. You can also opt for an IVA which will help you avoid filing for bankruptcy. This, being a legally binding agreement between you and your creditor allows you to freeze your interest rates.
  4. It also helps you lower the monthly payments.

Most of the borrowers fear filing for bankruptcy as it affects their financial life negatively. Lenders hesitate in approving loans to them. They also end up losing all the opportunities. You can get free bankruptcy advice by doing some research online. You need not pay any fees for this. The best feature of this service is that you can get instant solution for all the debt problems and seek more knowledge on bankruptcy too. This is also the safest means of regaining control over your finances.