Friday, May 05, 2006
How to Reduce And Eliminate Your Debt?
Easy access to money means people are borrowing more money. Borrowing more and more money eventually leads to a situation of unmanageable burden of debt. People's spiralling debts have given rise to a new and growing industry.
Consolidate all your debts into one. The debt consolidation service combines all your debts into just one debt as illustrated by Mr & Mrs James case:-
1)Credit Card debts $4,900 @ 27.5% apr
2)Personal loans $9,700 @16.7% apr
3)Arrears on mortgage payments $3,300 @ 5.5% apr (house may get repossessed due to these arrears)
4)Store Card bill/debts $2,300@33.34%
5)Gambling debts by Mr James $13,500@22% apr
6)Work Credit Card $1,600@18% apr.
7)Bar Bill (at a local bar) $490
Total monthly payments in respect of the above came to $2,900 per month plus household bills including food costs. Mr James brought home $4,200 per month and almost all of that money went on paying for debts and arrears. They could not live on the measly amount which was left.
Mr & Mrs James's total combined debt came to $35,790 at an average interest rate of 20.51%. On the basis of average interest rate, over five years the repayments will be $1208.21 per month. There is also the mortgage payments of $890 per month.
The critical issues.
The gambling debt needs to be paid within the next 3 months. The gambling company is going for foreclosure so the risk of losing their home is eminent. Additional costs of food, gas/electricity, fuel for their two cars meant that they need just about $2,000 to meet their living costs.
The family home is at risk of being repossessed. There are proceedings being instituted both by the mortgage provider and the company responsible for collecting Mr James gambling debts.
The debt consolidation solution.
Mr James bought his house 5 years ago for $172,000. He has built up some equity in his investment. A re-valuation priced the house at $265,000. The immediate solution proposed by the consolidation service was to release some of that equity to clear these debts. Mr & Mrs James agreed to live within their means. They had to surrender their cards; in total they had 10 cards between the two of them, and they both agreed never to use them again. With the help of Bank of America, the debt consolidation service released 85% of the equity in their family house and raised $53,250 with the intention of clearing all their debts. The debts were all cleared. Mr & Mrs James paid $750 per months for their new mortgage because of a discounted deal which was negotiated & secured on behalf of Mr & Mrs James.
Mr & Mrs James went through a real ordeal which nearly cost them everything they worked for. As a direct result, they have now set up a debt advise help line to help other American families become debt free. Additionally, they have devised a help yourself guide packed with practical ideas for people to get out of debt first of all and then to remain debt free. Their suggestions and recommendations are:-
1)Don't be afraid to ask for help. The sooner you ask for help the better for you. Because they themselves kept deferring their own decision to seek help, they simply got deeper into debt.
2)Only spend cash from your earnings. Do not use credit cards as an alternative. Apart from James's gambling debts, most of our other debts were from credit card use. Bad idea and bad move. Don't do it.
3)Talk to your partner about the problem and look for a solution. Mr & Mrs James did not talk about it nor did they try to find a solution. A lot of our debt problems could have been pre-empted had we spoke about our concerns and issues.
4)Talk to your creditors, explain the problems to them and ask them for help too. If you propose a sensible solution to reducing or eliminating your debt to them they may agree to it and stop charging you more interest.
5)We did not know about the extra equity in our house until the debt consolidation service suggested that option as a possible way out for us. So, talk and look for solutions by examining all possibilities.
6)Reduce costs and outgoings where ever possible. We spent a lot of money dining out when we could not afford it. When we looked at our goings we were amazed at how much we wasted dining out. So, we curbed our spending by cutting our unnecessary waste.
7)Look for problems in your life and in your relationship. James gambled to the tune of $13,500 because he was bored it came to light when we finally decided to face up to our problems. Remedy these problems as soon as you can.
Debt consolidation service has given us our lives back. We are not likely to be in situation again. We are trying to help others from being in debt and we would ask you in turn to help more people become debt free.
Consolidate all your debts into one. The debt consolidation service combines all your debts into just one debt as illustrated by Mr & Mrs James case:-
1)Credit Card debts $4,900 @ 27.5% apr
2)Personal loans $9,700 @16.7% apr
3)Arrears on mortgage payments $3,300 @ 5.5% apr (house may get repossessed due to these arrears)
4)Store Card bill/debts $2,300@33.34%
5)Gambling debts by Mr James $13,500@22% apr
6)Work Credit Card $1,600@18% apr.
7)Bar Bill (at a local bar) $490
Total monthly payments in respect of the above came to $2,900 per month plus household bills including food costs. Mr James brought home $4,200 per month and almost all of that money went on paying for debts and arrears. They could not live on the measly amount which was left.
Mr & Mrs James's total combined debt came to $35,790 at an average interest rate of 20.51%. On the basis of average interest rate, over five years the repayments will be $1208.21 per month. There is also the mortgage payments of $890 per month.
The critical issues.
The gambling debt needs to be paid within the next 3 months. The gambling company is going for foreclosure so the risk of losing their home is eminent. Additional costs of food, gas/electricity, fuel for their two cars meant that they need just about $2,000 to meet their living costs.
The family home is at risk of being repossessed. There are proceedings being instituted both by the mortgage provider and the company responsible for collecting Mr James gambling debts.
The debt consolidation solution.
Mr James bought his house 5 years ago for $172,000. He has built up some equity in his investment. A re-valuation priced the house at $265,000. The immediate solution proposed by the consolidation service was to release some of that equity to clear these debts. Mr & Mrs James agreed to live within their means. They had to surrender their cards; in total they had 10 cards between the two of them, and they both agreed never to use them again. With the help of Bank of America, the debt consolidation service released 85% of the equity in their family house and raised $53,250 with the intention of clearing all their debts. The debts were all cleared. Mr & Mrs James paid $750 per months for their new mortgage because of a discounted deal which was negotiated & secured on behalf of Mr & Mrs James.
Mr & Mrs James went through a real ordeal which nearly cost them everything they worked for. As a direct result, they have now set up a debt advise help line to help other American families become debt free. Additionally, they have devised a help yourself guide packed with practical ideas for people to get out of debt first of all and then to remain debt free. Their suggestions and recommendations are:-
1)Don't be afraid to ask for help. The sooner you ask for help the better for you. Because they themselves kept deferring their own decision to seek help, they simply got deeper into debt.
2)Only spend cash from your earnings. Do not use credit cards as an alternative. Apart from James's gambling debts, most of our other debts were from credit card use. Bad idea and bad move. Don't do it.
3)Talk to your partner about the problem and look for a solution. Mr & Mrs James did not talk about it nor did they try to find a solution. A lot of our debt problems could have been pre-empted had we spoke about our concerns and issues.
4)Talk to your creditors, explain the problems to them and ask them for help too. If you propose a sensible solution to reducing or eliminating your debt to them they may agree to it and stop charging you more interest.
5)We did not know about the extra equity in our house until the debt consolidation service suggested that option as a possible way out for us. So, talk and look for solutions by examining all possibilities.
6)Reduce costs and outgoings where ever possible. We spent a lot of money dining out when we could not afford it. When we looked at our goings we were amazed at how much we wasted dining out. So, we curbed our spending by cutting our unnecessary waste.
7)Look for problems in your life and in your relationship. James gambled to the tune of $13,500 because he was bored it came to light when we finally decided to face up to our problems. Remedy these problems as soon as you can.
Debt consolidation service has given us our lives back. We are not likely to be in situation again. We are trying to help others from being in debt and we would ask you in turn to help more people become debt free.
# posted by yw6ad @ 1:30 AM 
