Free Advice On Debt – Tips To Reduce What You Owe

Today, thousands of people owe money to various lending institutions. That number is growing at a very fast rate. The sad part is that over half of them are unable to repay their debts; hence, they turn to debt management agencies for assistance.

If you cannot afford the fees charged by the debt management agencies, you can search for free advice on debt on the internet. The internet has everything you need to get started. Listed below are a few tips on how to get out of debt.

Don’t get into more debt

The first thing that you should do is stop getting into more debt. Use cash to pay for all your purchases and limit the use of credit cards to emergencies only – a new iPad Mini or iPhone 5 is not an emergency. You should also come up with a monthly budget and stick to it.

Spend less than you earn

The main cause of debt among young people is spending more than they earn. Such people use credit cards as a source of extra income rather than a convenient way to shop without liquid cash. As a result, they end up in more debt than they can handle and the high interest charges that come along with it.

Therefore, if you want to reduce your total debt or get out of debt, you should make sure that your total expenditures are less than your total net income. That way, you will have control of your finances and you will be able to service your debts without any problem.

Reduce the interest rates on your debts

Some people have credit cards with high interest rates. For instance, having a credit card with interest rates as high as 30% doesn’t make sense. It is even worse if you are struggling with debt. People with credit cards with such interest rates end up paying the interest instead of the principal amount. Therefore, you should contact your creditor and renegotiate the rate. If you are not in a position to renegotiate with your creditors, you can hire professional debt negotiators and let them negotiate on your behalf.

Increase your income

Do everything you can to increase your monthly net income. You can take a part time job as a tutor, music teacher, babysitting, blogging, or working overtime. The extra income should be used to pay off the debt. The harder you work, the faster you will clear your debts and live a debt free life.

Be Realistic

Although you want to clear your debts as soon as possible, you should be realistic about it. There is no way that you can clear debts that you accumulated in three years within one week. You should balance paying your debts with living a comfortable life. It goes without saying that you will have to make sacrifices in order to clear your debts. However, you should not go overboard with the sacrifices.

Prioritize your debts

Make a list of all your debts and decide which ones should be cleared first and which ones are not urgent. It would be advisable to clear the debts with the highest interest rates fast and remain with those that have a relatively low interest rate.

Seek professional assistance

There are very many debt management agencies across the country. Do your homework and select the best agency. The debt management company will help you come up with a plan to reduce your debt significantly or get rid of your debt completely.

Basically, there are three main options of getting out of debt, debt consolidation, debt negotiation or debt settlement and bankruptcy. Your specific situation dictates the option that best suits you. There are very many sources of free advice on debt but these are main tips.

Debt Consolidation Tips for Millennials

Extraordinary costs for education, endless digital gadgetry, and the ease of getting credit cards means that the average Millennial carries debts that are difficult to pay off. Bachelor’s degrees that reward students with minimum wage jobs and thousands of dollars in student loans burden millions of Millennials.

Consolidating debts may help reduce the time it takes to pay debts in full because consolidation usually offers an interest rate reduction. Credit cards with interest rates above 20% make it almost impossible to make a dent on a big balance, but consolidation is an answer to high interest rates and debt.

Steps Before Consolidation

Consolidation usually means working with a debt consolidation company or speaking with various creditors to make special arrangements. Before making those calls, there are a few housekeeping items to handle. Consider the following in advance of consolidation:

Check your credit. Make sure that your credit report is accurate. You don’t want to end up consolidating accounts opened due to identity theft or mistaken identity.

Get a job. Fox Business suggests job of any kind is better than none, even if it pays minimum wage. Some consolidation options aren’t available if you’re unemployed.

Bring accounts up-to-date. Accounts that are over-the-limit or late complicate the consolidation process. Try to bring them current before consolidation.

Make a list of debts. Write down balances, interest rates, and minimum payments for each account and have this information on hand when making calls.

Don’t close accounts. It might be prudent or necessary to close an account eventually, but don’t do so before consolidation. Complete the consolidation process first and then decide which accounts to close.

Choosing Consolidation Type

There are a few methods available for consolidating debt, and Millennials will want to compare the cost of each before choosing which path to take.

1. Credit card consolidation

Most credit card companies offer balance transfer opportunities which promise a low interest rate when balances are transferred from other cards. Call each credit card company and inquire about balance transfer offers. If one card company offers a better rate than another, try to use that rate as a bargaining chip to get an even lower interest rate with another creditor.

Tip: Remember that credit scores tend to take a slight dip if one credit card is maxed-out and others have zero balances.

2. Personal bank loan

A traditional loan from a bank may come with an interest rate that’s half the amount of a credit card. These loans often require a good credit score so Millennials with bad credit due to unemployment or other financial problems might have trouble getting a bank loan. Also, a low credit score might mean a high interest rate, which would reduce the opportunity to get the debt paid off fast.

Tip: Make sure you take into account each of the fees charged by the bank. Your low interest rate and savings might erode if the bank charges large origination fees.

3. Consolidation loan

There are loans available from banks and other lenders that are designed as a consolidation loan that will wipe out balances on credit cards and create a single monthly payment. Stewart Bradley, posting on GenY Finance journey, says these loans are also available for student loans and can help torpedo high interest rates to get loans paid much faster.

4. Credit counseling agreement

There are companies that deal solely with debt consolidation and will negotiate with creditors and arrange for a single monthly payment option. These companies charge a fee for their services; however, they do all the negotiation on the debtor’s behalf.

This option may not result in actual savings, but it’s the best way to lower monthly payments. TopTenReviews suggests that credit counseling and debt consolidation might be the only option for Millennials who are facing bankruptcy.

Make Changes Beyond Debt

Consolidation is a valid strategy for reducing debt and getting out of the red, but successful debt reduction requires a change of overall behavior. It’s important that bad spending habits don’t create another problem after you’ve already worked to get rid of old debt. Make the tough choices. Sell your new car and buy a used one. Quit that expensive gym membership and start jogging around your neighborhood for free.

Millennials are presented with so many easy ways to spend money, and most have to deal with huge student loans. But debt reduction isn’t impossible. Taking control of spending and choosing a debt consolidation strategy is possible for any Millennial with big debts.

10 Money-Saving Tips to Make Debt Settlement Easier

Debt settlement allows you to settle your debts, making one low monthly payment, and to get out of debt in a shorter amount of time than by paying back your balances in full. With debt settlement, the savings are often greater than with debt consolidation. While credit card debt can be expensive and stressful, getting out of debt doesn’t have to be. If you think that you can’t afford a debt settlement payment every month, think twice! This article, the second of five, lists 10 easy ways to save money for your debt settlement program.

1. Make saving money a game, not work. Just feel good about all the money that you are saving and you will attract more situations into your life to save even more money.

2. Give up the daily or weekly lotto. The odds are against you, and you will save money in the process. For example, if you are spending $5.00 every week on the lottery, that’s $260 a year. Use the money more constructively, such as applying it to your debt settlement program.

3. Watch fees, because they are everywhere. If your checking account doesn’t have overdraft protection, the charge for insufficient funds now averages $34.00 per transaction. And according to, “Some banks even charge a fee each day an account sits in arrears.”

There are also ATM transaction fees, ATM balance inquiry fees, point of sale usage fees, monthly service fees on checking accounts, late fees on utility bills, and much more. These all add up over time.

4. Buy generic or store brands instead of brand names. For example, the price for a 42 oz. box of generic oatmeal is now $2.69 at one East Coast supermarket chain. Comparably, the store brand is $3.59, and the brand name is a whopping $5.39. Is your calculator available?

5. Buy fruits and vegetables that are in season. You can pay as little as 99¢ for a pound of seedless grapes when they are in season, and as much as $3.99 a pound when they are not.

6. You are probably paying too much for your cell phone. Consider changing to a cheaper plan.

A debt settlement client made just one change in his spending habits and saved about $900 a year. This was enough money to cover 3½ months of payments for his debt settlement plan:

Michael admitted that he had once been paying about $100 in monthly cell phone charges. Before joining a debt settlement program, Michael let his cell phone plan expire, and for good reason. After starting the debt settlement process, Michael changed to a pre-paid cell phone plan and now pays about $25 a month instead of $100.

According to Michael, “I knew that I was paying too much on the old plan, but I was too lazy to make a change. I am now saving about $75 a month on my cell phone bill, which adds up to about $900 annually. This $900 can be applied to about 3½ months of payments on my debt settlement plan. I’d rather be paying less for my cell phone and applying the difference to my debt settlement program. What it all comes down to in the end is what is really important and what isn’t.”

7. Keep a distance from lavish, high-roller friends. You really don’t need a large screen TV in every room or the latest electronics gadget.

8. Consider paying your life insurance annually. Did you know that insurance companies charge you more if you pay monthly, quarterly or semi-annually? Pay once a year and you’ll pay less.

9. Traditional boxed cereals can be expensive. Consider eating oatmeal instead. It’s cheaper and healthier.

10. Your paycheck may be a lot smaller after you figure out how much of your spending is work-related. Cut out the daily latte, blueberry muffin, and eating out for lunch. Expenses like these really add up over time.

This article has listed 10 money-saving tips that can make your debt settlement program easier. While credit card debt can be expensive and stressful, getting out of debt doesn’t have to be. Make saving money a game, and you will attract more situations into your life to save even more.

Three California Divorce Attorney Tips On Debt Relief

1. Marriage Takes Effort

While the authors of this article certainly understand the arguments that couples may have against signing a prenuptial agreement prior to beginning their matrimonial journey, we nonetheless must remind all prospective spouses about how difficult the process of divorce and disposition of assets (and debt loads, as well) may be, especially given the laws regarding community property enacted by the California legislature decades ago. The prenuptial agreement has become increasingly commonplace for all types of couples, regardless of their economic backgrounds, and it’s not hard to imagine a time in the not too distant future wherein this sort of arrangement – however cold blooded and mercenary it may currently seem – would be the rule, rather the exception.

Even if you decide to forego the aid of a legally binding document protecting your rights and limiting your liabilities in the worst of all possible scenarios, we strenuously urge all couples to at least keep some vague record of purchases and subsequent debts for mutually obtained credit card balances. Not only will this be of great usefulness during tax season as you peer through receipts, you may end up depending upon such a ledger during the process of divorce and (what may be unbelievably bitter)California credit card debt settlement.

2. Til Debt Do You Part

Consumer finance counselors and divorce lawyers alike around the state of California are unanimous in their calls to sever all credit card debt linkages well before a couple ever begins the process of separation in earnest for reasons that shall become obvious the more you both learn about the potential troubles that may arise from jointly held creditor accounts. Most notably, if one member of the past partnership cannot hold up his or her end of the agreement and fails to avoid bankruptcy declaration, the entirety of the debt onus shall immediately fall upon the pocketbook of the more fiscally responsible husband or wife.

Even if you have previously instituted some legal parameters within the divorce agreement that forces your former spouse to be held personally liable for credit card debt otherwise held jointly, keep in mind that the only way to realistically force the ex to take charge of his or her obligations would be further court actions, necessitating additional attorney costs. Regardless of your plans, however, you certainly want to at the very least cancel the accounts, and, if this would be applicable, block the ex (or any member of the family) as an authorized user of the credit card debt account.

3. Do Some Snooping

Investigate all available information, and make sure the articles you’re reading are accurate and up to date. Much as the state government of California has achieved a certain reputation for dynamic and trend setting legislation – particularly regarding such areas of public policy as debt relief and marital dissolution – the elected representatives in Sacramento are just as famed for constantly tinkering with the guiding regulatory practices, and you’ll want to make sure that you do not base any decisions upon data that’s been rendered obsolete.

Furthermore, while the divorce or debt settlement web sites with the largest number of visitors (the first ones to show up after typing in a query to the search engine) should be trusted to maintain readership through the quality of their analysis and credibility of their research, even the most reputable of portals occasionally lets through an erroneous interpretation of a statute that may seem initially insignificant but, through the end of the process, prove decisive in terms of credit card debt relief efforts.

Wise Debt Management Tips To Consolidate Debt

Debt relief characterizes those people who systematically take responsibility for their actions to reduce debt. Schooling oneself in the art of bookkeeping is the beginning of managing your debt into more payable repayments leading to debt consolidation. When you systematically take care of your debt you build a steady cash flow, maintain a healthy credit score as well as remaining on top of any future financial commitments when they are due. How do you use effective debt management techniques to consolidate debt? By making a checklist and knowing which debt needs servicing first before worrying about the next until every debt has been paid and then you start the process all over again. When looking for an effective debt management plan to consolidate your debt be sure to take tiny steps at first conquering your major battles before moving on to minor scuffles. Formulating a list allows you to visualize the task at hand and gives you a better understanding of where you sit. Follow this process with listing accounts with the highest interest rate variable to the lowest. The higher the interest connected to your debt the quicker they can spiral out of control and consume you. Be sure to explore the many options you have at your disposal when looking to service your debt as there are many ways of tackling your debt such as using the equity in your home, applying for a personal loan or investigate lowering the interest on your credit cards with balance transfers. Be sure to investigate all options available to you as you could be surprised with what is on offer. Another method well worth looking at when formulating a debt management plan is to use what some call the ‘snowball’ method. The snowball technique refers to the doubling of payments towards your lowest balance. Let’s explore this other alternative which goes against the grain! Servicing the lowest balanced accounts releases you cash you otherwise had committed to direct elsewhere. Keeping the momentum going by then doubling or tripling the payments on your 2nd lowest balance and service that debt. This technique has a huge effect psychologically building discipline and energy behind the principle of servicing any outstanding debt no matter what the balance is or the interest rate attached to it and thus releasing capital which can in turn be directed elsewhere. The snowball method has its advantages as it shows your creditors that you are able and willing to service your debts with larger payments and this is the time to contact them and request a meeting in order to negotiate a more favorable repayment structure and interest rate or even a personal loan to consolidate your debt. You have nothing to lose to investigate the possibility of refinancing your present accounts into one low interest loan. Once you pay all your debts off be sure you continue to practice sound debt management strategies and remain on top of things! Keep credit cards at a manageable level always paying the full month’s debt and not the minimum balance as they are the highest form credit available and the easiest to lose control of.

Credit Card Debt Help – 3 Tips To Reducing Debt

While getting out of debt may seem impossible, there are numerous solutions available that will help consumers become debt free. Individuals who have acquired an enormous amount of debt may consider bankruptcy as their only alternative. However, this maneuver to alleviate debt is extremely damaging to your credit score. Before filing bankruptcy, consider the following tips to help you reduce credit card debt. Apply for a Low Interest Balance Transfer Many financial experts advise consumers to pay more than the monthly minimum on credit cards. In theory, this plan will reduce your debt. On the flip side, many consumers are unable to pay double their monthly minimums. The best method for reducing debt is lowering interest rates. A low rate credit card equals low finance chargers, which means a larger portion of your payment is applied to the principal. If you have good credit, you may be able to negotiate a lower interest rate on your current credit cards. Furthermore, applying for a low interest balance transfer will help eliminate your debt. Some credit cards offer an introductory low interest rate for a specified period. In some cases, you may pay zero interest for the first six months. Take Advantage of Home Equity Loans and Mortgage Refinancing If you own a home, you may be able to reduce and eliminate debt by obtaining a home equity debt consolidation loan or cash-out refinancing. With a home equity loan, your residence secures the loan. These loans are perfect for good and bad credit individuals. Because home equity loans have shorter terms and lower rates, you can reduce your debt in five to ten years. Mortgage refinancing is another option for reducing debt. Refinancing creates a new mortgage, thus homeowners must be in a position to pay closing costs and other fees. A cash-out refinancing involves refinancing your current mortgage, and borrowing your home’s equity. The cash received at closing can be used for a variety of purposes such as debt consolidation, unpaid utility and medical bills, and other huge expenses. Using Online Debt Management and Consolidation Services Non-homeowners and bad credit individuals may be unable to transfer current credit card balances or obtain funds from a home equity loan or refinancing. In this case, online debt management and consolidation services can help. Debt management counselors will contact your creditors and negotiate lower interest rates. Moreover, the agency will consolidate your debts and freeze your credit accounts. This way, you avoid accumulating additional debt. On average, debt management agencies can reduce your monthly payments up to 60%, and help you become debt free within a few years.

Debt Negotiation – Tips on How to Get Support With Bad Credit Card Debt

Debt reduction lowers the amount of your balance, which will make the new payments less along with reducing your time period it can necessitate in order to become free from unsecured debt. A huge number of women and men have now been aided with this method. Scores of folks happen to be going through difficulties because of charge card debt. If you are among all of the blessed individuals that are not in this predicament, you’ll see tips on how to steer clear of that. The most effective way to make sure you avoid having issues would be to make use of your bank card limited to crisis situations, and/or in case you have enough cash in the savings account to repay all transactions as soon as statement is delivered. Having said that, should you discover escalating expenses are getting to be tougher to repay, then simply keep reading for a couple of strategies. If you haven’t ever reached a situation where all of your funds will be to pay for visa or mastercard debts, then you’ll need to place a little in a bank account or some other investment option every month, to ensure that you can have capital in case there is an emergency. In this way, you do not need to rely upon charge cards. It won’t take a whole lot of energy to get into problems through charge cards, nonetheless getting out of unsecured debt is going to take even longer should you take a crack at this by yourself. It is a lot easier to eliminate credit card debt than a large number of men and also women think – if implementing the right resolution. For those women and also men who could make more than solely that regular monthly installment, make sure you attempt to settle any financial obligations as soon as possible. By disbursing extra month to month, you could save on interest fees, which in turn brings the total cost way down for your amount you borrow. We’ve been focusing on individuals which are not in a desperate state of affairs. Then again, you will find numerous women and men that won’t be able to send in their smallest payments on a monthly basis. A large number select which statements they’re going to repay month after month, as well as shift the debts with a credit card to another. Quite a few consumers already have thrown in the towel therefore are typically putting up with frightening phone calls and also snail mail from creditors. People should not put up with it. There are various choices for fixing an individual’s predicament as a result of debt. 1. Credit Card Consolidation Loans do not ever reduce the amount of your outstanding debt. These people heap all of it collectively with a brand-new bank loan which you’ll be forced to pay off. This won’t improve your actual dilemma. 2. Non-profit Credit Card Debt Relief organizations are typically connected to the credit card organizations, hence they don’t have your interests as the primary goal. 3. Christian Debt Settlement firms simply have just one mission, and that is definitely to help you get the absolute best consumer debt settlement that will save you as much as possible. Your credit card debt is really decreased, consequently your current monthly payments really are lowered therefore you’ll be able to become free from debt within one year. Virtually all consumers are actually free of debt after only 24-36 months. Are you currently avoiding collectors? Are you presently ignoring the mobile phone whenever it sounds? Halt collector calls and also annoying snail mail! Should you be one of the large number of folks that need help with their particular bank card consumer debt, you need a unsecured debtcredit card debt reduction company so its possible to eliminate unsecured debt. The more you wait, the more late fees will undoubtedly be added to your current debt which adds to the amount of your debt. Please do not delay. Give us a call today and you can consult to a real consumer debt negotiation consultant relating your situation.

7 Tips on Finding a Debt Settlement Company For Your Credit Card Debt

Some people are looking to settle on their credit card debt, but aren’t sure how to how to go about it. There are many debt settlement companies out there that specialize in settling credit card debts, but sometimes it can be difficult to determine if it’s legitimate or not. Some of them are reliable and reputable, others are nothing more than shams and frauds that just want your money. You’ll still be sitting with a mountain of debt while they’ve moved on to their next victim. One way you can be sure you are getting a good deal is to do negotiate your debt yourself with help from sites like If you are thinking of going this route, there are some things you need to know before you commit to a debt settlement company. Here are 7 tips you should take heed of prior to picking one: 1. Within the debt settlement industry, there is a trade association called TASC or The Association of Settlement Companies. This association works with its members so that they will be in compliance with the standards and rules of the industry. If the company you want to use is not a member, then find another debt settlement company. 2. You need to know up front what kind of fees the credit card debt settlement company will charge you. Some of them charge one flat fee. This flat fee is determined as a percentage of your total debt cost. Some of them get this fee each month. They even get it when no settlements have been finalized. The fee should be connected to the result of the settlement and not as a percentage. 3. If you want to know about money back guarantees, they should be at least be good for 30 days. If it isn’t then don’t accept the agreement. Don’t allow the debt settlement collectors to talk you into something less than 30 days. 4. If you ask about commission and they tell you yes—watch out. They might try to railroad you by charging you exorbitant fees. Forget it and move on. 5. When dealing with credit card debt settlement companies, your credit will be affected negatively. If you ask and you’re advised otherwise, then that’s a red flag to not do business with them. 6. Asking how long it will take to finish the credit card debt settlement is like asking when you will stop growing. No one knows the answer to that, and the collectors don’t know the answer about time frames. If they tell you otherwise, they’re lying just to get your business. 7. When you ask about your first settlement, they should tell you that it should be done within 12 months. Anything longer than that is a lie and a fraud. Once you get these questions answered, you should have enough information to determine whether or not you will select them to represent your credit card debt settlement. You can also check with your local consumer division as well as the Better Business Bureau to see if they are legitimate or have numerous complaints against them. It’s better to be informed and educated up front than wait until later to get scammed.