Reduce Debt to Achieve Financial Freedom

For consumers who have accumulated debt, researching potential solutions is the first step in the right direction. While seeking out a debt relief option may not be the ideal situation in the mind of the average consumer, it may very well be entirely necessary in order to achieve financial freedom.

Stop Debt in Its Tracks In order to reduce the likelihood of making your financial situation worse, the first step is to make sure you aren’t accumulating additional debt. What does this mean? This means that you should stop using your credit cards, stop allowing your overdrafts to increase, and to stop receiving personal loans from family and friends that will only increase the stress you feel from these obligations.

Analysis First, calculate what your income to cost ratio is for one week. If you are spending more money than you earn, you will have to adjust your spending habits to a more appropriate level. In addition, generate ways that you can save money each week, as well as ways you can cut unnecessary costs from your budget to improve your situation. In some instances, people have to sell their cars, move into more affordable housing, and make a lot of drastic decisions in order to get there selves out of debt. While this may be a potential solution, the important thing is to realize that in the end you still must have enough money left over to live off of and pay back your outstanding debts. Once you have developed a strategy to make the books balance, you can take the next step and begin to assess what debt relief options are available to you.

Consult a Specialist When you are trying to clear your debt, there is nothing more important than seeking professional advice. While you may not be able to afford professional help, you will be surprised to know that there exist many debt consolidation organizations that offer free consultations. A consultant will be able to offer you suggestions on your best debt relief options considering your circumstances. Debt settlement companies can settle credit card debt on your behalf to reduce the total debt that you owe. In addition, these companies offer improved repayment terms and other solutions to accommodate your situation financially. Professionals working for these organizations are also familiar with state debtor laws, ensuring that their clients are not mistreated or taken advantage of in any sense legally.

Bankruptcy Bankruptcy should be the last option for consumers seeking debt relief. The consequences on your credit report are catastrophic, not to mention the strain that bankruptcy puts on you and your family. While some people view bankruptcy as a chance to “start with a clean slate” the majority of consumers are not informed of the consequences. Typically, you will have to turn over all your non exempt property, in many cases this includes your home and any vehicles you may own. In addition, filing Chapter 7 or 13 bankruptcies stays on your credit report for 7-10 years and on your public records for 20 years. As a result, receiving future loans and getting better jobs becomes extremely difficult as you are considered unreliable in the eyes of potential lenders and employers

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The Growing Debt Problem - Has It Gone Too Far?

The majority of financial professionals have known for some time, yet a few have been hesitant to read what it says. Many residents of the United States are getting deeper into debt. Part of this problem likely comes from the cost of owning a home. For a rising segment of homeowners, the financial burden of owning a home is forcing a difficult situation into an impossible one; creating a “foreclosure crisis” that will likely last many years more.

Earlier this year, current numbers released by the Government are showing an alarming growth in the rate of foreclosures. In some areas, of all homeowners who were extended sub-prime loans, the foreclosure rate is as high as 14-20% when 4-6% is considered “healthy”.

This information has been all over the news — the stock market has been in upheaval. Sub-prime lenders traditionally specialize in extending financing to borrowers with credit issues, unable to verify income, employment or other factors that make them a poor fit for conventional loans. In the past few months, many major players in the sub-prime market have sought additional investors or in some cases simply closed their doors and gone out of business. Just as their borrowers were unable to afford the escalating home ownership costs, many sub-prime financial companies found it impossible to absorb the rate of default we are now seeing.

The problem doesn’t stop with the sub-prime market. Even traditional lending institutions are increasing requirements and placing more scrutiny on the loan approval process. This makes us wonder: how did this issue ever happen in the first place?

A fair amount of the responsibility can be laid at the feet of the borrowers themselves. In this age of “bigger is better” many Americans see a large home as an indicator of success. This pushes many buyers into trying to own a bigger, more expensive home without enough thought to the financial burden of owning one. Often buyers push the levels of affordability and end up in a “house-poor” situation or worse.

Blame can also be attributed to some financial professionals. Who is better qualified to know how much debt a borrower can afford? The current debt-to-income ratios are either being ignored, or the types of loans that lenders are providing are poor choices. Loans like 28/2 and 27/3 loans with fixed teaser rates that adjust after 2 or 3 years with a balloon or margin are just a few of the loans that have presented problems for borrowers.

Of course the end result of this mess will be better qualified and better educated borrowers but did things really have to go so far? We've seen foreclosre problems hit most of the large regions we work including Plano real estate, Montgomery real estate and Yorkville real estate. Frankly, I sometimes think they did. Lately it seems like it takes a big shock to get some things back on track. In the mean time, if you are thinking of buying a home in the next few years, it’s important that you start speaking with your local REALTOR or loan officer and make sure your finances and credit scores are in order before you continue with applying for a loan.

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Tips on Securing a Debt Consolidation Loan

It's the day you've been waiting for the last two weeks... payday and the only time when your face lights up and you actually go to the office with a lot of wonderful, dreamy thoughts in your head - such as how fast you'll be able to bolt out of the office and get yourself down the to nearest mall and you can already smell the Caffè Verona® you plan on ordering at Starbucks.

Either way, you seem compelled to impulsively spend all of that hard-earned cash on something that in all likely-hood you can do without. Like that dress you'll probably wear just once or the Egyptian silk sheets that you've been drooling over ever since you noticed that Jessica Simpson on Newlyweds sleeps on in luxurious comfort. Never mind they are actually worth fourteen hundred dollars... but like you always tell yourself - you deserve it.

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Besides, what's the harm in rewarding yourself for a job well done? You deserve some pampering too. You may even find yourself making plans at some luxurious spa, to sample of their relaxing (not to mention, extremely costly) facials, massages or treatments. After all, you work hard and so you've definitely earned it since you've been stressed out all month long from your hectic schedule and tight deadlines.

On the other hand, have you ever even thought of saving... even occasionally putting a portion away for a rainy day? Have you thought about you future? And if it actually involves those Egyptian silk sheets that you just purchased or the designer coffee that you simply cannot seem to get enough of - is it really worth it? Unfortunately for too many, sooner or later reality sets in and when it does it hits them like a Category 5 hurricane and they wake up they realize (hopefully not too late) how deeply they've buried themselves in an oppressive amount of debt. And they also realize that they have absolutely nothing to fall back on in order to get themselves out.

You could simply hand in the towel and declare bankruptcy (many do) however, an alternative, less stressful and smarter way to go, is to at least initially, look into getting a debt consolidation loan.

The thought of a debt consolidation loan may not be all that enticing to most of the debt saddled, but then again what's the alternative - bankruptcy or paying minimums on your credit cards at 20% interest for the next 20 years?

Unfortunately for those of you who have nothing in your savings or other assets to tap into, it may be your best option and perhaps the first really smart financial decision you've made in quite awhile. You are clearly aware that a ton of companies offer debt consolidation loans, just the fact that you are reading this article attests to the fact that you've done some type of internet search related to debt or debt consolidation.

You just have to be honest about your finances or whatever it was that you were doing with your money (when you still had some) so that whomever you decide to go with to try and secure that debt consolidation loan will be able to provide you with an accurate scenario of your financial present and future. The past is... as they say, history. You really have no choice but to simply move on, walk away from your past mistakes and hope that you've learned something useful.

And then, incorporate those lessons into your future dealings with money and hope against hope that your debt consolidation loan will be approved so that you can take the overwhelming burden of debt you've saddled yourself with and leave it far behind. As you search for a debt consolidation loan make sure you do your due diligence by shopping around and asking questions whenever you feel lost by the "financial jargon" or the whole process in general. If you do your part, you'll greatly increase your chances or working with a reputable company that's not out to take advantage of your current poor financial situation.

A final bit of advice, virtually all Loan Officers work on commission and so it's in their best interest to...

• Make sure you get the loan and
• Charge you the highest interest rate possible and the highest possible fees and still make the deal.

That being said, don't ever take the first quote you get for rate and closing costs as the best deal you can get because it very rarely is. While shopping, make sure the companies you are working with know that your shopping around tell them straight out that you will give your business to whomever can come up with the best deal and who's is up front and honest from the get-go. Never forget that you are in charge (regardless of your current financial state) and if you don't feel comfortable with your lender or what's being presented then simply move on until you find someone who treats you with the respect and dignity you deserve.

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Choose Debt Consolidation Company Carefully for Debt Consolidation Quotes

The debt consolidation market is burgeoning day by day. More and more people are filing for debt quotes to place their debts under best consolidation program. A debt consolidation quote helps you to understand the procedure of acquiring consolidation of your multiple loans from a particular company as well as to learn the terms and conditions, under which the company is going to provide debt consolidation service and counseling.

Limit Use of Credit Cards
An average American keeps at least 5 credit cards in his pocket, which means, at least 5 bills every month, in addition to other bills on household expenses, store bills and traveling expenses. It becomes increasingly difficult to operate all the credit cards and keep track of all the payments that accrue on the cards at different dates. One does not realize the damage, until it is too late and you are neck deep in debts. In such a situation, when you take quotes, you should not jump on the first one which comes your way, instead compare a few quotes of standard companies and then decide on the company whose terms are best suited to your debt consolidation loan.

These quotes are no longer considered means of non repayment by people who are short of cash, i.e. the poor. People of all classes have now accepted debt consolidation, as a part of life, which is used to consolidate all payments to creditors into one payment, and also reduce penalties and other charges levied over months by creditors on non-repayment of dues. Therefore, there is great demand for these programs, and many finance companies, big and small, have entered into this ever growing market in the past 5-10 years.

The internet has become a very good medium of getting debt consolidation quotes. Most of the finance companies on the net do not charge for giving away free quotes. Therefore, you should avoid companies which charge you for quotes, in all probability you will never hear from them again, if you make the mistake of making payments up front. It is however, quite common for reputed companies to ask for a review of your financial condition, like your income, present debts and creditors, before giving their quotes for you to consider. There are other agencies sponsored by the government, which provide you free debt consolidation services. These companies usually work on the principle of no profit no loss and the objective is to provide you relief from the debt burden.

The role of debt consolidation quotes is important to ascertain credentials of any debt consolidation program that you are considering. Based on different quotes that are offered for free you can select the best program. Debt counseling and free debt consolidation advice also come in handy to help you select the best debt relief option.

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Can Debt & Bill Consolidation Lessen all your Financial Burdens

Are you troubled with the repayment pressures from all ends, then debt consolidation solutions provide fool proof solutions to all your financial needs. Debt and bill consolidation loans are the giant loans which help the debtor to pay of all the smaller loans with higher rates of interest by one giant loan with lower rates of interest, thereby making the life simpler. But while availing such loans a collateral is required as a proof of yours being a no risk candidate. The greatest drawback of the debt and bill consolidation loans is that the authority is imparted to the creditor to seize the property or the collateral in case the money is not repaid back within the allotted time span.

Debt and bill consolidation loans are similar with not much difference. Debt consolidation is to free you from your current creditors and bill consolidation is meant to provide you with finances to pay off your current bills in time. But both of these are blessings in disguise for the people crushed under the extreme pressure of the debts from all sides. Debt consolidation provides with lucid advantages over the traditional loan packages. These loans are secure with lower rates of interest and the loan interest is worked out after taking into consideration one’s financial condition as well as amount borrowed in the form of loan.

Secondly, only one payment has to be done to the creditor, which reduces the hassles about managing accounts and repayments of different creditors. All the loans are mixed into a single loan, which makes the life simpler. The duration of repayment is larger which reduces the amount of monthly payments and hence the debt goes manageable. These days bill consolidation loan is more popular as compared to debt consolidation, with the increased access to mobile systems and personal expenditures.

Before choosing any creditor and the debt consolidation or the billing consolidation proper debt consolidation credit counseling should be undertaken and the rates and repayment time span of different creditors must be compared to obtain the lowest rates of interest and longer repayment time. Again, the interest rates increase as the time span increases, and hence proper budget planning must be done before opting for any kind of debt and bill consolidation. Certain amount of fee is charged for processing as processing fees and specific companies provide it free of cost but there are chances of scams. So, a considerable choice is required to be made before taking any further step in this sector.

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Unsecured Loan for Debt Consolidation

If you have been shopping for a loan to consolidate your credit cards, student loan, or other debts, you may want to consider an unsecured debt consolidation loan. The major difference between a secured and unsecured debt consolidation loan, is that the unsecured loan will not tie up any of your assets. You will be able to consolidate all of your debt into one monthly payment without the risk of loosing any of your current assets.

The first step in the process is to find the lender that best suits your personal needs. The internet is an excellent way of doing this, as it allows you to search dozens of lenders and request free quotes to see which lender will save you the most money.

Once you have narrowed your search down to a handful of lenders, based on the free quotes you have received, you job now is to research these lenders. It is usually a good idea to stick with well know reputable companies who have a proven track record and customer service. However, be sure to do your research online and with the BBB (Better Business Bureau) before agreeing to a contract with any company.

Once you have found a loan, or two, which you are satisfied with, you will need to qualify for it, just like any other loan. Qualifying for an unsecured loan is often more difficult than a secured loan, due to the lack of collateral, such as the equity of a home. However, there are plenty of banks willing to approve unsecured loans, even to people with a less than perfect credit history.

An unsecured loan for debt consolidation can be the simplest way to reduce the stress caused by multiple high interest debts. Reducing all of your debts into one lower monthly payment can give you the edge needed to start paying off your debts once and for all!

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Debt Consolidation Advice: Start Subtracting The Debts

Advice is not that you should feel irritated. Rather it shows the way that you can carry out the task in an easy and straightforward way. Likewise, people caught in the web of debts if perform and follow rational advice can easily disperse or eradicate the debts permanently. With this certain objective in mind, the debt consolidation advice provides simple and lenient process to surmount the bitter phase of life.

Numerous private financial institutions in the market run debt consolidation advice. Moreover, the debt consolidation advice carries into effect its operations under different tags named as debt consolidation management, debt consolidation service, debt consolidation program and such. The objectives of this specific program concentrate to solve the puzzles of debts and rescue the debtors.

Now let us discuss what the outcomes of debt consolidation advice are. Debt consolidation advice renders policy that attains the mettle to disperse the multiple debts in a single stroke. It effectively subtracts the debt burden and all financial issues. Debt consolidation advice brings a great relief to debtors because it gets them obligated to a single lender instead of many. The advice also cut way to get a loan at marginal interest charges.

If you follow the objectives thoroughly and give a microanalysis, then you will come across that debt consolidation advice fuse polices that assist debtors to stable and rebuild the deteriorated credit conditions. You can restore the financial status in future and build a good will with the lenders from the present status quo.

It is the age of technology, and now a day services provided at doorstep or can be experience from home. Just switch the online application method with the details pertaining to credit score. If you wish, you can visit personally for debt consolidation advice. Nevertheless, the online holds the power to provided immediate results to the users thus making use of your valuable time.

Debt consolidation advices can assist you to get out of the unpleasant circumstances and layer a better future.

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