Debt Elimination tips
Some more obvious than others, they all have some truth to them…
- Spend less than you earn - obvious, yes, but not everyone does
- Don’t overpay your debts - keep some for regular expenses too!
- Create a realistic budget - include a buffer while you allocate every dollar
- Stop borrowing - bye bye credit cards
- Track your expenses - and stay within that budget
- Pay yourself first - 10% is the norm
- Pay more than the minimum - this is a big one (see our finance calculators)
- Avoid eating out - you’ll save more than you think
- Build up an emergency fund - do this first
- Only buy with cash - if you haven’t got the cash you can’t afford it
Examine your expenses and eliminate the unnecessary. And keep a goal in mind.
Do I need a Debt Consolidation Loan?
As radio show host and consumer advocate Clark Howards puts it…
“It’s been my experience that when people do a debt-consolidation loan, all they really end up doing is rearranging the deck chairs on the Titanic. With one transaction, their credit card bills suddenly stop, and those people then say, ‘Oh, how nice, it’s all so tidy now, I now just have everything on one convenient bill.’”
Britons Problem Loans Catching Up
In the UK, it’s estimated that about one million people have “problem” unsecured debts. At an average of £25,000 each, that amounts to a grand total of about £25bn.
About 60% of this money is owed on credit cards, with the remainder being mostly personal loans.
The UK credit crunch experts suggest there will be fewer refinancing solutions — such as re-mortgaging and homeowner loans — available to those struggle with debts, as banks and building societies tighten their lending criteria.
Dealing with Credit Card Debt
Credit Card debt is a major issue for America, next to the subprime mortgage issue. With nearly $1 trillion outstanding on credit cards, and no sign of improvement in sight as nearly half are paying only the minimum monthly payment.
And considering the average credit card rate, you’re only getting deeper in debt, not paying it down. Many have used home equity loans to take care of their credit card troubles in the past, an option no longer available.
So what are your options? Pay it down! By taking the minimum amount due, and doubling it, you could actually pay off your card in about 3 years. You could also contact the card company, but this one doesn’t typically amount to much. If you’re deep into debt, it might be time for credit counseling.
UK Credit Crunch Coming
Growing interest rates, utility prices and food bills are forcing consumers to change their lifestyle in the UK, and to start cutting back on their spending.
Foreclosures Jumped Over 50 Percent in Last Year
Over the last 12 months home foreclosure filings surged 57 percent, says real estate data firm RealtyTrac.
Last month the states of Nevada, California and Florida led the way in foreclosure filings, default notices, auction sale notices and bank repossessions. And according to RealtyTrac, the peak has yet to be reached.
One in every 538 U.S. households living in single-family dwellings received a foreclosure filing in March. The single-family dwellings can include condominiums.
Bankrupcty on the Rise
As consumers struggle with higher mortgage payments and other debt loads, bankruptcy filings jumped 38 percent last year compared with 2006.
Poll says American Economy tied to Rebuilding Iraq
Economists suggest the U.S. economic downturn is tied between Iraq and the downturn reflects a growing public perception that individual economic anxieties must stem somehow from the unpopular war.
“If we can spend $10 billion a month rebuilding Iraq,” states House Speaker Nancy Pelosi , “we can spend $15 billion a year in our own country to put Americans back to work and strengthen the long-term competitiveness of our economy.”
In a recent poll, 71% agree of Americans say government spending in Iraq is a factor in the economic downturn.
Equifax continues Eastern Expansions
Equifax, the Atlanta-based credit reporting company, bought a 28 percent stake in Russian credit data firm Global Payments Credit Services. In February Equifax had announced a partnership with CRISIL, a risk and ratings agency, and one of India’s largest conglomerates, Tata Group. It’s been mentioned by senior management an interest includes India, Russia, China and Mexico to come into the Equifax fold.
Debt and Credit Counseling
Interesting article on credit counseling and keys to finding a reputable firm.
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