Seek Help for the Gambling Addiction
Before you begin dealing with debt, it is imperative you get help for your addiction. It’s been proven in many cases that gambling addicts are less willing to admit their problems than someone with a substance abuse problem. Not only should you get help for yourself, but for the ones who love you; your family and your friends. Take the time to really evaluate your situation, and how it has affected you, your family and the general quality of living surrounding it all.
Cut Off Funding
It could be half to all of your paycheque, a credit card, or maybe you’ve been dipping into your savings. In either case, put a complete halt on any money put towards gambling. Cancelling a credit card is never a good idea, as it worsens your credit situation and lowers your credit score. But in the grand scheme of things, putting a stop to it now rather than racking up another large amount of money is probably for the best.
You Won’t Win Back what you Owe
Statistically speaking, the chances of you winning back what you owe are next to
For effective debt management, first you need to split your expenses into fixed costs and variable costs because you can only control (decrease/increase/cut off) these. Rents, fees, insurance premiums etc. will have to be paid the same way. After that you should prioritize your expenses. Your variable costs could be including a $4 magazine that you buy daily on your way to work. Do you honestly need to spend $80 on magazines every month when the same material is available on the T.V and the internet? Debt repayment can be a painful process when you have to cut down on expenses like these but it is worth the pain.
Another method to manage debt is to consolidate your debts. This means combine all debts and have the interest rate revised by your creditor. For example if you are paying 2% on personal loans category A and 6% on personal loans category B, both taken from the; negotiate with your creditor to combine both loans for an interest rate of 6.5 or 7% in return for a shorter payback period. The 0.5% saving could be worthwhile.
Avoid debt managers if you can because the upfront fees that
Review Your Financial Situation
The first step to beating your debt is to review your current financial situation. You will need to set aside some time where you can review all of your financial ingoings and outgoings along with all the money that you owe to lenders. You can use Internet banking to be able to easily view your statements and get clear picture of your circumstances. You can also review bills and other direct debits which are going out from your account. Always be honest with yourself and write everything down. It is beneficial to create a spreadsheet which contains all of the information on your present financial situation. This step alone will help you to feel clearer on your finances, and you can start to use the information it presents to create a get out of debt plan.
Cut Down on Your Spending
This step is essential if you want to beat your debt. Start looking for ways that you can save money on your current spending. Even the smallest changes can add up to big savings in the long run. Take a packed lunch or home brewed coffee to work instead of
It is important to clear a big part of your debt before you retire. Retirement usually means that you will not have the same income and financial means as you’ll give up on your daily job.
When it comes to debt, credit card loans are notorious for their high interest rates. An average American has a credit card debt of about 3,000$ a year only in interest costs. The minimum payment which you’ll have to make every month comes to 250$. If you have a steady job that pays well, these costs can be easily covered. However, on a pension of 1000$ it becomes a serious financial difficulty.
Many Americans had to take a mortgage loan to afford a house or an apartment. Mortgage loans make a big part of the total debt every household has. Paying your mortgage loan before retirement must be a priority!
Student loans are taken in the hopes that a college degree will help you find a high quality job that pays well. Many see it as an investment. Investing in education is a good idea, but you still have to pay back your debt. Take care of student loans
Freedom to Choose
When you are debt free, the money that you make is your own. Okay, so the taxman wants his share, but all things being equal, you can spend your money how you choose.
What you are not doing is paying interest to corporations which frankly would not notice if you did or not. Don’t get me wrong, businesses need to make money, but I choose to let them use somebody else’s money and hard work, not mine.
What I choose to do with my money is not to work a nine to five job, spend quality time with my wife and dogs and enjoy a full social life with my friends and neighbours.
How would your spending change if a large chunk of your income was freed from servicing your debt?
Would you choose to live any differently if you were debt free?
Earn Interest Instead of Paying It
I find that when I talk to people about finance, the often lose interest, look bored and try to change the subject. However, there is a reason it is called “interest”, because once you understand a little about how
It is not recommended to handle debt negotiations on your own. Debt is menacing and getting the support of your family and friends helps relieving that stress of debt. In fact, the best way to negotiate debt is to hire consultants who can communicate and manage lenders to arrive at a helpful debt settlement.
The handling of debt at its initial stage makes it easier to settle. Lenders should not be ignored, as that would worsen the situation. Do not keep postponing to explain your present financial position to creditors.
Since it is in the interest of all concerned to get a solution, the lenders would do well to cooperate with the businesses to reduce the rates of interest, extend the line of credit and streamline the debt situation. Dealing with a number of creditors drives your focus away from your business. Debt consultants of good reputation are competent to negotiate with creditors and resolve debts for amounts smaller than what is actually owed.
Creditors are scared that they might lose the loaned amount for good. Moreover, they are keen not to show debts in their books of account, and they would be willing to
If they ever take any legal action and become successful at it, they will execute judgment without any hesitation and, in a number of cases, they may seize the property of the debtor. Still, there are extreme situations where they may even liquidate the debtor’s assets. Agencies that take care of debts between companies are able to handle all sorts of issues that surface during the process of delivering their services. They offer a wide range of services, such as getting the payment on checks that have insufficient funds, second placements; skip tracing or other issues pertaining to particular individuals and situations.
A majority of debt collection agencies provide features that cater to specific industries, together with the services they offer. Credit application assistance is on top of the list. This valuable service is offered by most agencies. This program allows agencies to shortlist applicants and to get rid of fraudulent ones before their debts build up. To achieve this goal, applicants should go through a number of screenings, which are based on their credit report. There are also some things they need to watch out for, and these include fake phone numbers, fake addresses, plus other
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
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