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August 2019

Statute Barred Debt

The date in which the limitation period begins is from the last payment made on that agreement. From this information you should be able to determine as to whether your credit agreement is a statute barred debt.

It should be noted that just because it has passed the statute limitation period, it does not mean the debt is no longer existent. It simply means that you can no longer be threatened with court action to repay the old debt.

Even though the lender may now be barred from pursuing the debt recovery, it does not mean that they are not allowed to attempt to recover it. Many debt collection agencies will use underhand tactics in an attempt to re-engage you with your debt.

If you have been approached by a debt collection agency about a debt which you believe to be statute barred, your first action should be not to talk to them under any circumstances. Any acknowledgement of the debt could lead to the debt becoming active again. The debt collection agencies specialise in methods to get you to say, or do something that could re-activate the debt. Remember to say nothing. If they contact you via the phone, simply hang up on them. If they call at your door, refuse to speak to them and simply close the door on them.

If you are served with a court appearance regarding the debt then you should attend that hearing. Failure to do so may result in the collectors winning by default and the debt would then become active again.

Remember, they are simply trying it on as this is how they make their living. Under legislation you do not have to repay the debt once it becomes a statute barred debt.

Finally if you believe that your debt is covered by the limitations Act 1980, or similarly your own province or state legislation’s, ensure that you fully understand your rights. The statute of limitations legislation is there to protect you, make sure you know the rules and how to deal with debt collection agencies should they contact you.

Live A Debt Free Life

Dispose of existing obligations. This is clearly your first stage to carrying on with a debt free way of life. Cut up any Visas that you have at this time on your person or in your wallet. Pay your bills on schedule, remitting as much as you possibly can on the smallest account, submit your regular payment to the other accounts. Continue this process until the debt has been paid, now keep repeating this process with the next smallest bill.

Generate a plan. Each and every individual who exists without debt has a budget and accomplishes it. Without planning for liabilities and odds and ends, individuals over indulge on needless spend on things and all of a sudden, a real emergency comes along. Take an inventory of each months expenses after that create a listing of non monthly expenses. This could be anything from car tune-ups, property taxes, school supplies, or the occasional outings. When you have a defined inventory list, subtract your monthly overhead from your monthly salary and see what is remaining. Give yourself a small salary. Assuming that there’s still cash left over, utilize it to pay progressively on another single account until everything is completely paid.

Keep away from credit cards as if it was a curse. Make the greater part of your buying with money and you will never succumb to the debt snare again. When you are beginning the approach to a debt free existence, you ought to be really careful as to where and how your money is being spent. It’s imperative that you track your tendencies for a time to verify where your cash is constantly squandered, or where you can cut expenses without completely changing your way of life.

After a couple of months have gone by following your expenses, you can verify precisely where the biggest part of your cash is going. You would be amazed at what amount of your spending is accumulating from the purchases of small items. With that extra cash you could be utilizing that extra cash by paying on your bills. That mug of espresso you consume each morning heading to work could be setting back your finances about $10 or more every week. That averages about $40 for every month, and preparing your espresso at home could keep that money in your pocket since you can purchase it for less at the market.

One of the most amazing oversights individuals make in the wake of making a monetary recovery is to permit themselves to fall back into old tendencies. Before they know it, they have built up a mountain of debt again. Now they are heading down that destructive road where they just can’t pay their monthly bills again.

You don’t trouble have Visas in your wallet. Yes, it may feel strange not having a charge card on you, but that is the best way to control your spending. You may need to keep one card in a private place in your home, for purchases that you have need of a charge card. Take some time to consider before utilizing the card, and provided that its conceivable to purchase it with money, then use that option. A card ought not be utilized for each purchase, nor should it be utilized when you feel compelled to purchase something unnecessary that you don’t have enough money to buy.

About Debt Management Plans Work

If you decide a debt management plan is right for you, then you can set up your own plan or employ a credit-counselling agency or a debt management company that can work with you to create a plan, arrange payments with your creditors, and provide advice. Choosing the plan that best suits you depends on how much time, money, and dedication you want to expend to get the plan in place.

Debt Management Plans work to lower the total due balance and consolidate all debts into one monthly payment, which is affordable. Those who have the financial ability to make monthly payments cannot use this type of an arrangement. Usually creditors supervise these programs. The plan is most beneficial for those who cannot make payments each month because of late fees or high rates of interest. You should consult with the debt management company to figure out which plan suits you best. The company managing the plan will negotiate on your behalf so that you get better rates of interest and terms than otherwise. They will also end harassing calls from creditors so that you can concentrate on finding means of paying the debts and not worry about threats.

However, the first step to overcome a debt problem is admitting that there is a problem in the first place. The company you choose to work on the management plan must offer professionally trained staff that will evaluate your financial situation and assist you in creating a budget to help you manage your debts. You will only need to pay what you can afford once you take care of your principal debts such as your mortgage or your rent.

Info of Free Debt Management

First, you should make a list of your debts, including the creditor, total amount of the debt, and monthly payment. You can use your credit report to confirm the debts on your list. You need to update your list every few months as the amount of your debt changes. If you are late with your payments, you will have to pay a late fee and your interest rate and finance charges will increase. If you miss a payment, do not wait until the next due date to send your payment and send it as soon as possible. If you cannot afford to pay anything more, at least make the minimum payment. The minimum payment will not result in progress but it will keep your debt from growing. When you miss payments, it gets harder to catch up.

Credit card debt should be repaid first. Credit cards with the highest interest rate usually get priority on repayment. Now you can use your debt list to rank your debts in the order you want to pay them off.

When you have limited funds for repaying debt, focus on keeping your other accounts in good condition. You can pay past due accounts when you can afford to do it. Your creditors will continue collecting on your account as long as you have an outstanding balance. Without access to savings, you would have to go into debt to cover an emergency expense. A small emergency fund will cover little expenses that come up periodically. First, you need to create a small emergency fund in order to build up a reserve of six months of living expenses. You can use a monthly budget to plan your expenses. Your budget helps you have enough money to cover all your expenses each month. You can take early action if it looks like you will not have enough money for your bills next month. A budget also helps you plan to spend any extra money you have left after expenses are covered towards paying off your debt. It is essential that you are persistent and committed to your Free Debt Management.

Debt Reduction

They were so ingrained that debt was something I expected to have and since I expected it, it happened. But eventually, I learned that most debt was not helping me and my family. Debt was keeping us broke and keeping us from enjoying the good things in life. It was also the driving force keeping me in the work force long after I wanted to retire. I was a slave to the creditors because I did not have a good handle on managing money and debt.

Growing up with people who expected to be in debt probably did not help me much, but the only person that I can really blame is me. I was not dumb by any means, just uneducated when it came to managing debt.

After I decided to turn things around, I learned two things that helped keep me motivated. The first thing was if you have money, debt is something you never need. The other thing was that anyone can get out of debt. It takes hard work and common sense, not debt consolidation, debt management companies or bankruptcy.

It just takes commitment, some sacrifice and time. If you are willing, you can become debt free. It won’t happen overnight. But then, your debt was not created overnight either. It took a lot of time and a lot of mistakes along the way.

I mentioned mistakes, because I believe that most hard working people get into debt because of mistakes made in planning or lack of planning for the future. And most hard working people will continue to work even after they should be retired and living the good life just to pay for the debt.

So, how do you get out of debt? That is the real question and there are any number of people who have made a business of answering that question. But the fact is, most people are willing to work hard and try to avoid the quick fix because it is their nature to pay their debts. Another part of the problem is that people have difficulty learning from their mistakes and they are doomed to repeat those mistakes and stay in debt. It is also a lesson that is easily passed on to our children.

The first absolutely necessary thing to becoming debt free is to accept responsibility for your financial situation. No one else caused you to accept credit as a way of life. The second most essential thing you need is a plan and maybe a little bit of guidance. If you are building a house, one of the first things you get is a plan and you might want to understand how the house is supposed to go together. Your financial house is no different. Without a plan, you just make the same mistakes over and over again.

Not All Debts Are Bad

Most people generally tend to have more bad debt than good, such as; Credit cards, Car loan, Personal loan, Holiday finance, White goods finance.

Sounds familiar doesn’t it! Don’t get us wrong, it’s not an offence or anything, but keep this in mind – by decreasing these debts, you are more likely to steer yourself in the right path of financial success.

On the other hand, some people think having a debt is a taboo/ sin/ whatever they want to call it – so they don’t believe in buying a property until they have earned their money to pay their house in cash. That can do – it’s just going to take them longer that’s all. Yes, debt is a risk, it is leveraging the bank, and you may not be able to repay that if you quit/ lose your job.

That’s why without a doubt, you must budget. Manage your finances as early as possible. Good debts are risks worth taking, so you can generate more income. If you don’t take the risk, you won’t know what you can achieve.

Likewise, bad debts are risks too. Having them might be inevitable but sometimes you can prevent it! A simple formula to avoid bad debt is: if you can’t afford it, don’t buy it.

If you decrease your “bad” debts the banks are actually more likely to provide you with “good” debts such as home loans, which if you use correctly, will grow your wealth.

Check That Debt

  • Get interest rate reductions. Ask every creditor to whom you have paid your bill in a timely fashion to reduce your interest rate. If a few of them agree to do so, you will be able to pay off the balances on those loans and cards sooner. You may also have more money to apply to paying off other accounts with the money you save from your lower interest rates.
  • If you get the interest rate on one or more of your credit cards reduced, transfer balances from credit cards with higher interest rates to the card(s) with the lower rate. Check to see if the card(s) with lower rates has any balance transfer fees associated with it. If so, is the spread between the cards with higher rates and the one(s) with lower rates still better when you factor in the transfer fees? If the difference favors doing the transfer, get it done.
  • Get a consolidation loan. If your credit is above average and none of your creditors are willing to reduce your interest rates, consider getting a consolidation loan. These loans often have rates that are significantly lower than credit card rates and often cost less than paying each creditor separately would. Note, however, that your particular situation may require collateral, such as your home, to secure a consolidation loan. Not all lenders require collateral. So, it pays to shop around if you think your credit and financial picture are good enough to earn the loan without collateral.
  • Tighten up your spending. Take lunch to work instead of eating out each day. Cut your cappuccino splurges back from five days a week to three days to zero. How many channels do you really need? Reduce your cable TV package. Use the money you save to pay down your debts. Your flourishing financial freedom will love you for it.
  • This next one might seem to be out in left field, but it really will work. Do you have a qualified retirement plan? Does your employer offer a matching contribution? Do you contribute more to your account than the amount your employer matches? Then, it may be time to suspend contributing above the match for a moment. If your employer will only match your contributions up to three percent of your salary, then, do not contribute more than three percent of your salary.

Outsmart Debt Collectors

  • Make yourself familiar with the rights – No matter whatever the problem is, nobody can harass you or make you feel threatened. Moreover, these companies have many restrictions, which include use of abusive language, nuisance phone calls, misrepresenting the amount of your debt, unnecessary threats, and more.
  • Not to get emotional – it’s better to be straight forward with your collector and try not to ignore their phone-calls, mails, messages, or letters as this would definitely turn the tables in their favor.
  • Find a suitable lawyer – you must find an attorney who specializes in consumer law to represent you in court. Also, you must avoid giving your bank accounts and routing numbers to your debt collectors as by doing this you’ll be allowing them to make direct withdrawals from your accounts.
  • Keep track of phone calls & messages – create a document and note down all the important stuff related to the collector. This actually acts as a proof of settlement or resolution of debts.
  • Make sure the debt is yours – in case you feel that you don’t owe the money, dispute the debt in writing. If you don’t receive a legal notice enclosing that you don’t owe the money, your debt collector cannot make contact with you.

Always remember, when it comes to dealing with debt collection companies, you’ve got your rightful privileges that can be truly useful in turning the tables in your favor. All you need to do is negotiate with the collector before the debt is sold to a third-party collector. Moreover, you must make yourself familiar with the complete debt collection process in order to get an edge over your debt collectors.

How To Gradually Get Out Of Debt

Get Help From A Professional

You can get professional help from financial advisors. Sure, this may cost you some money, but at the end of the day, you may be getting good advice from them, and they could help you save time and stress over planning debt management plan. The process may be slow and it may span across many months, but do realize that you cannot cancel a huge debt overnight? Painstaking measures need to be taken over a course of time in order to limit the damage you take in your bank account and earn enough money to pay off your debt.

Plan Your Expenses

Well, some of you may be reluctant to hire a professional financial advisor to help you out because of the situation you are in. Do not worry, because you can still come up with your very own debt management scheme. This may require you to sit down and calculate your various expenses, and you may even have to narrow your expenses down to a daily level. It is recommended that you assign a daily spending cap, but do not degrade yourself to eating bread for breakfast, lunch and dinner. You may not be able to eat luxuriously, but you certainly should not have to live like a beggar to clear your debt.

Do Not Spend On Things You Do Not Need

At this stage, you should not be buying things you do not need right now, even if you think it will be some form of investment. This should be a very obvious point, but you will be surprised that some people will still splurge on items they do not need. Their reasoning is somewhat saddening though, because they will tell you that they are spending more because they feel that they are already in a hopeless situation which cannot be rectified, so they might as well go all the way and enjoy life while they can. That is the wrong mindset to have. I hope you are determined to choose the higher way, which is to legally get rid of your debt.

Paying Off Debt

A Pull in Different Directions. Sort of like raising kids, there’s no single “right” way to do it, yet everyone seems to have an opinion on the topic. As a consumer searching for answers, it becomes very easy to get sucked into one camp or another with regards to which regimen to follow. There is no shortage of financial experts, books and methodologies targeting people who need a little financial wisdom. The problem is, many of the pre-packaged debt payoff programs treat the journey to debt freedom as a cult-like religious following rather than a progression towards financial literacy and financial independence.

Rather than adopting a “one-size-fits-all” (one-size-fits-none) approach, it’s important to consider debt, income, expenses, and financial goals in context with the individual’s household, habits, and goals. There are two parts to the debt payoff equation: the math, and the individual’s lifestyle. To be effective, any get-out-of-debt solution needs to address both.

The Method. The math is the easy part. Math is sterile. Math is cold, matter-of-fact. It’s not influenced or affected by opinions or emotion. It’s predictable, with no surprises. Unfortunately, though, it’s also very misunderstood or perhaps intimidating to people who aren’t math-savvy or analytical.

The lifestyle part is what’s difficult. Anyone who has ever made a New Year’s resolution (and failed) knows exactly what that means. People have the best of intentions to improve their plight in life, but along with temptation and the emotional ups & downs of triumphs and setbacks, people’s “wants” frequently win out over their “needs”.

Between the two, it’s essential to find a workable balance. Here’s the meat and potatoes of a good, solid, and livable plan to get out of debt and start making progress towards healthy finances:

  • Brainstorm and Scale Quantities. People are rarely successful if they make drastic changes or quit habits, cold turkey. Little changes cumulatively make big differences. Order the medium instead of the large. Turn back the thermostat two degrees in the winter or up in the summer. Figure out what’s not being used, like land line phones or premium TV channels and scale back. Then figure out the monthly savings, and rather than spend it elsewhere, apply it to debts.
  • Create a Budget. Creating a budget is more than placing planned numbers in rows and columns and then trying to live by them. Budgeting effectively involves brainstorming ways to cut back on costs without cutting back on quality of life. It’s an example of finding the balance between the math and the lifestyle. By applying the savings from brainstorming and scaling quantities down to debt payoff, the household budget allows progress in becoming debt-free without drastic changes to lifestyle.
  • Redirect Cash Flow. Rather than direct depositing paychecks into a zero percent interest checking account, perhaps open a high yield online savings account at 2% to 3% interest. Let the money accrue interest in the account and then move money in batches once or twice per month for bill payments. The end result, simply by rechanneling the direction of cash flow, will add substantial resources to pay down debts without any effort at all.

Some simple habit changes can make paying off debts seamless and easy without having to live on beans and rice for every meal. In most cases, minor changes that require little to no sacrifice will produce the benefit of shaving years and potentially thousands of dollars in interest off of consumer debts.

As a general rule, people embrace habits that don’t deprive them of what they want. So a math/lifestyle balance is the key to sticking to a debt payoff plan rather than systems that rely on raw willpower or require self-deprivation. Taking the time to improve financial literacy can make it possible to “have your cake and eat it, too.”