Debt problem


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Debt problem

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Debt problem

  1. 1. However Big a Debt Problem, It Can Be Solved With aLittle Debt ManagementMaybe you are one of many people who is facing a debt problem and are wondering how toclear your debt. There are millions like you who are reeling under the burden of debt. Debtissues should be dealt with head on, or the problem can get out of hand. This could lead tobankruptcy, which is not something anyone wants. Unfortunately, there is no magic solutioneither.With the economy taking a beating, more and more people are feeling the pinch and laggingbehind in their payments, whether it be credit cards, student loans or any other loan.Remember that ignoring debt never benefits anyone. But rest assured that no debt problem isunsolvable. No one ever wants to fall into debt. It happens when we spend money we donthave. There could be frivolous reasons, or you may have had a horrible change incircumstance, like a death, illness, divorce or job loss. Whatever the reason, the mostimportant thing you can do now is become more disciplined in handling your finances.For people who are loaded down with debt and finding it difficult to repay unsecureddebts, debt managment can be the best option. If you are unsure how bad your debt is, start byassessing it. Remember that what counts is your debt in proportion to your ability to repay.The first step to becoming debt free is controlling your spending and adhering to a budget.It can be helpful to know how you are spending your money each month. Write down all ofyour expenses by reviewing receipts and bank statements. Every single expense should belisted. By clearly laying out this information, you will have a much better idea where you canstart saving and how much your debt is costing you.A Debt Management Plan can include strategies like consolidating your monthly paymentsinto one, allowing counselors to communicate with your creditors for you, and encouragingcreditors to reduce your interest rates and waive some or all late fees. This enables you to payoff your debt within a reasonable time frame and reduce how much you pay each month. So ifyou are currently paying an amount you cannot afford, you can reduce those payments to amore realistic figure that you can handle. Moreover, you can keep you accounts open andimprove your credit rating.The purpose of a debt management plan is to get you out of debt as quickly as possible.However, debt management programs cannot slash your interest rate down to zero, cut yourminimum monthly payment by 50% or more nor write off debt in any way. Companies thatpromise to do so should be avoided.Debt management programs have helped many individuals over the years to repay their debtquite easily, and the number of people filing for bankruptcy is diminishing rapidly. It isalways beneficial to repay a reduced amount and to get life back to normal more quickly.
  2. 2. How to Solve Your Credit Card Debt Problem FastIn recent times people are finding it difficult to solve their credit card debt problems. To top that thereare several fraudulent companies that are deceiving consumers. There are quite a few companies thattake fees in advance from their consumers but they never contact the creditors. Credit card companiesquite often say they have not been contacted, even when they intimidate clients of debt settlementcompanies. Some disreputable companies do not contact creditors at all. This causes a lot of problemto the consumers. They are the losers on both ends. They lose their money forwarded as fees to theconsultants; on the other hand their problems also remain unsolved. So, one has to very careful whileselecting a company that provides services in this area.To solve your credit card debt problem fast you can choose the debt relief method. In this method youhave to negotiate with your creditor and strike the best deal possible. In this you must convince yourcreditor to accept a certain percentage of the total debt you owe as a full payment instantly. You canalso get your creditor to forgive a part of your debt while the remaining part is being paid in a shorterspan of time. You can also get the creditor to reduce your interest rate and accordingly increase theterm of repayment.For all the above methods of credit card debt problems you must get in touch with a reliable company.There are many such companies coming up these days. But you must be very careful while choosingthem. A good company will have good consultants. These experts are competent in their fields andwill negotiate with your creditors on your behalf. If you negotiate with your lender it is highly possiblethat you will end up striking a bad deal and you wont be satisfied with it. You have to find trustworthyconsultants who will take up your case with your best interests in their hearts. This way you canincrease your chances of striking the best deal possible and you will be fully satisfied.Check the credentials of the company you are looking to hire. Check with some previous customers ofthe company to see if they are satisfied with the services provided. A reputable debt settlementcompany will be accredited by the United States Organization of Bankruptcy Alternatives("USOBA"), or The Association of Settlement Companies ("TASC"). You must also check whetherthe employees of the company are certified and whether the company has the license to practice inyour area. If there are any discrepancies with the above mentioned information it is better to search foranother company or else your credit card debt problems will not be solved and moreover you mightget into legal hassles unnecessarily.Achieve Security is one of the companies that provide the best services in this regard, so if you arefacing any debt related problems get in touch with them.Are you struggling with financial difficulties and credit card debt problems? Find out how adebtsettlement programcan help overcome credit card debt problems.
  3. 3. 15 Contributory Factors of Personal Debt ProblemsThe only way you can get out of your debt problems is to understand the reason you got yourfirst debt. Lots of evidences have shown that...You wont be able to save money although yoursalary/income has increased. You wont be able to save although your car debt has been paid.You wont be able to save although your kids already can afford their own life. And even ifyou have 1 billion, right in your hand right now, still, you cant even save a single penny.How could this happen? Why are you still stuck with your debt problems? The reason is, youcan only save money if saving has become an emotional habit. You can only save if you treatyour money in a different way. So these are the 15 contributory factors that cause you trappedin your debt problems. Hope this list can be one of your debt problems advices.1. You bought things that you dont really need.Stop buying! If necessary, avoid the shopping malls! Its because the shopping malls are thesources of your personal debt. There is no reason to spoil yourself with buying all the brandedstuffs you never really need.2. You used your credit card to buy stuffs that you cant afford.If you dont have enough cash to buy it today, then dont buy it! As simple as that. Forcing itwill just cause a credit card problem.3. You think that certain brands define your social status, make you look "trendy", stylish, andso on.A car gets you from place to place. A wallet is some kind of container where you can put yourmoney and your important letters. Sunglasses protect your eyes from the sunlight, while a t-shirt keeps you warm. If you always pay really expensive to get those products just for socialstatus, "trendy", or stylish look, rather than consider about their function, sooner or later,youll be trapped in a debt problem.4. Youre buying a new car every few yearsLook at my previous point. A car gets you from place to place. If youre buying a new carevery few years although your old one still works perfectly well, then you are trying hard toimpress people in a wrong way... And you - yourself, is trapped in one of the debt problems,heading to a bankruptcy.5. You bought something that you can actually borrow or rent.
  4. 4. If you use it only once in a while, why dont you just borrow it from a friend, or why dont youjust rent it? For instance, I almost bought a ladder I will probably use only once or twice ayear, while I can just simply borrow it from my parents.6. You paid a normal price for every products/services that you get.You can save up to 10 million IDR every year, if only you want to wait and shop from theoutlet stores that are giving out discounts.7. You own (or rent) a house that is actually bigger than what you need.When you buy or rent a house thats actually bigger than what you really need, that means youwill spend more money to pay for higher monthly fees, higher maintenance cost, and not tomention the need to furnish the empty spaces. This is clearly, will cause a new debt problem.8. You dont have a budget plan.Do you think that getting and waiting for more money will fix your financial situation itself?If thats what youre thinking, then you are seriously wrong! Its necessary to make a seriousbudget plan, in order to make your debt problems disappear and start building your wealth. Sostart making your budget plan right now!9. You didnt optimize your capital.You have to give a chance for your money to make money (leverage). Every penny you have,dont care how small it is, have to be invested. If you dont invest your capital, then yourmoney will lose its value due to inflation.10. You are married to a shopping-oriented spouse.You wont be able to get out of your debt problems if you are married to someone that alwaysspend the money you have earned. So help your soul mate to be responsible for the financialproblems that are happening at the present, unless you want to undergo more problematic lifein the future.11. You never get any basic money management educationFinancial skills that are needed to handle financial problems were not born naturally. Youhave to get enough education on money management, whether its from formal education orself-education. If you dont try to learn from anyone, then you will be more likely to staywithin your debt problems.12. You have a get rich fast mentality
  5. 5. There are perhaps only 0,01 % of people that got instant wealth, for instance, from parentsinheritance. The rest of the people, that means around 99,99%, didnt get their wealthinstantly. So if you spend your time and money to practice a get rich fast scheme, then morelikely that debt problems, not wealth, that are always going to bind you.13. You have bad habitsDrinking and gambling are perfect examples of so many bad habits that are ever existed,where you decide to exchange your short-time happiness with a long-term misery, which arethe debt problems and also discomfort.14. You wasted lots of your own timeThey said, "Time is money", and let me add something: Time is more precious than money.Time is the biggest thing in life. You can search for lost money, but time is irreplaceable. Soif you are failed to manage your time, then surely you will fail to manage your money... Andyou could get trapped deeper in your debt problems. So focus your time and energy only onimportant issues. Forget the others.15. You dont take a good care of your health.Always take care of your own body and mind! If you dont care about this, then healthproblems will drain your money, and if this keeps going on, surely youll get financialproblems, in the long term.Keep this in mind. Debt problems are actually can be avoided and exterminated before its toolate. It only needs a little effort, education, and determination, to make everything possible.Like I have said before, live a simple life. Dont spend your money only to impress people.Dont live your life with a mindset that wealth is always measured with material things.Manage your money wisely so that its not money that will control you. Make a change!!Kun Umirtu