Reasons to Live Debt Free

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

Business Debt

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

Commercial Debt Collection Agencies

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

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

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

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

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

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

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

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