Wednesday, February 17, 2010

9 Simple and Fast Ways to Get Out of Debt

How to get out of debts?

Sometimes it is vitally important to stop adding more to your debt as soon as possible. Here are some quick ways to improve your current financial situation and get out of debts.

1) Change your attitude to life, money and expenses.First thing you should do if you feel trapped into debt is to change your mind and attitude to what is going on around you. Either you are the master of your life or your life tells you what to do. Take a deep breath, sit down and reconsider your life goals. Find out what can be done right now to improve your situation.

2) Set up a Repayment Plan. After you have finished the first step, think a bit and compose a financial plan. Put your sources of income and expenses. List all your debts and bills like rent, mortgage, food expenses, and put a limit on it. Start paying off your debts with the highest rates first and go down your list. As you settle your debt, remember to pay yourself first. You do not really need any software, for that, just a simple notebook and pen.

3) Get rid of your credit cards. Putting your credit cards away is one of the best steps you can take to get out of debt quickly. I have heard of a man who developed an interesting approach to it. He literally froze his cards in a pan of water. When he wanted to use a credit card he took the pan away and waited for the ice to melt, thinking whether he really needs to use the credit card. Also you could just destroy all your cards keeping just one card for emergencies. Meanwhile avoid closing your credit card accounts because doing this can lower your credit score.

4) Improve your current income by finding a second job. Find another source of money. Think about what you can do better than others or about what you like to do. Start searching for opportunities. You will be very surprised of the true amount of hidden opportunities surrounding you. If you do not know where to look then ask people to help you. Having found one or two more sources of income you will significantly improve your financial situation.

5) Avoid paying fees whenever possible. Set yourself a rule: "If something is available for free, I am not going to pay for it". Reuse and recycle everything that is possible. Get rid of "luxuries." Make a few sacrifices, and you will find the extra dollars needed to increase your debt payments dramatically.

6) Renegotiate terms with your creditors. Call every credit card company whose cards you have and ask them if they could lower your interest rate or offer you some special interest on balance transfer. Repeat with all the credit cards you have.

7) Consolidate all your debt payments on a new loan. Get a new loan to pay off all your debts and have just one payment to make. Simplify everything what is available. The new loan should have a smaller payment and a lower interest rate. Consolidate all your loans onto the cards that offer you the best interest rate.

8) Pay more than the minimum. Get rid of the habit to pay only the minimum required each month. Paying the minimum only extends your agony. Pay as much as possible every month. If your minimum payment is $80, double that to $160. Take a close look at your regular expenses - you can find the money. Such increased payments will save you hundreds, if not thousands, in interest payments.

9) File Chapter 13 or Chapter 7 bankruptcy. In case you have tried everything above and nothing helps you then use this last remedy. Bankruptcy might be the only way for you to get a fresh start. There are some variations in these two different types of bankruptcy but Chapter 7 Bankruptcy offers a quicker solution for you to get out of debt.

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If you need some additional help on your current financial situation I would recommend you apply to debt relief specialists.

9 Simple and Fast Ways to Get Out of Debt

Sunday, February 14, 2010

Robert Kiyosaki and His Financial Education

Robert Kiyosaki has made a real breakthrough with his series of books on financial effectiveness. Nowadays he is a successful businessman, who is reading lectures and writing books. He developed a set of games that are dedicated to financial education for people of all ages.

Robert Kiyosaki, a successful businessman

From Robert's books we learn that there was time when he was completely broke.

He and his beautiful wife Kim even used to sleep in their car for several weeks, because they had no money to pay the rent for their apartment. Then they joined their heads and elaborated a life plan which had some important life goals and some certain steps to achieve them. As we can see his success was not a lottery jack-pot but instead of that it is the result of well-planned step-by-step actions.

What is Robert Kiyosaki's biggest secret?

The secret is that anyone of us can become as rich as he is, we only need to listen to his advice, wish to learn new things and believe in our abilities. Many of us have either personal shyness or are just too lazy to set new goals and achieve them.

As for me I am firmly concerned that any man can get everything what he can dream about in his life. We just need to believe in ourselves. Many of us just do not understand the fact that nobody lives twice. If it is so then why not spend our lives striving for our biggest goals?

Your first step to your goals is to start some financial education. This does not mean that you will have to go to college. Of course not.

The easiest thing to do this is to have a look at this Debt Relief FAQ.

You can find Robert Kiyosaki or me (Slava Rybalka) on Twitter.

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Robert Kiyosaki and his financial education

How Signature Loans Can Save Your Credit Score – Part 2

Usually, people get an unsecured loan for a one time medical fee or a vacation. Unsecured loans are usually up to $10,000 and it's still a good amount in case you need such money. When your credit is good, shopping around for the best interest rates for an unsecured loan is advisable. Frequently, the best rates for an unsecured loan are offered through credit unions. If one has an existing account with the credit union, obtaining an unsecured loan should not be problematic.

Banks and credit card companies assess the creditworthiness of the borrower before handing over cash without collateral. Those who have lower credit scores tend to have less luck obtaining an unsecured loan, and if they can get one, they may be assessed high interest rates, since the lender is taking more of a risk.

There are some lenders that specialize in lending to consumers with less than ideal credit.
These types of signature loans usually come with higher interest rates than those offered to applicants with better credit. Another alternative for signature loan seekers with a low credit score is to have someone with better credit co-sign the loan. Having a more credible applicant sign the loan along with you, gives the bank additional guarantee that the loan will be repaid. A co-signer can also help you get a lower interest rate for your loan.

Defaulting on a signature loan can be detrimental to your credit, making it hard for you to get additional loans in the future. Since there is no collateral backing the loan, you are obligated to pay it, even if you run into financial trouble. If, for some reason, you are no longer able to make your payments as agreed, you should alert your lender as soon as possible. The lender may have a hardship program that can help until you are once again able to make payments.

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How Signature Loans Can Save Your Credit Score - Part 1

When in debt you may think of getting money from any possible source. One of such source is called a "unsecured loan" or a "signature loan".

An unsecured loan is obtained without any assets that have been pledged by the recipient as security on the value of the loan. In other words it is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral.

A person obtaining it agrees to pay back the loan within a set term and signs documents attesting to such. This type of loan can also be called a signature loan.
If you have a bad credit you can still apply for a signature loan - also they call it unsecured. Unsecured Personal Loans are in fact the loans on the consumer's signature.

The simplest unsecured loan is a personal loan from a friend or family member, with an I.O.U. as signature of agreement to pay it back. Another common type of it is a purchase made on a credit card. Each time a person makes a credit card purchase, he or she signs a form which authorizes the payment and stands as an agreement to pay the money borrowed. When the person has obtained the credit card, the terms and size of the loan are predetermined. Student loans are also considered to be unsecured.

To determine your eligibility for a signature loan, most lenders use your credit history and debt-to-income ratio. Your debt-to-income ratio is the amount of debt you have versus your income. Lower debt-to-income ratios are more favorable by lenders. Since there is no type of collateral backing the loan, the approval criteria are sometimes more stringent. Many lenders have a minimum credit score and income level required for applicants.

We are going to discuss more peculiarities of unsecured loans in Part 2 of this series.

In case you need help concerning signature loans signature loans you can always contact National Debt Relief specialists.

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