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Subject: How to Manage Your Debt Loan
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Fri Aug 24, 2007 10:02 am
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 Debt Loan
Let's look at tried and true ways to manage your debt that won't leave you scrambling to meet unrealistic goals. Perhaps the most important component of debt consolidation is canvassing your cash flow system to determine where you are losing money, how much your money you are losing per month, at what rates you are losing that money, and how your spending habits have evolved over the past six months to two years.
Debt consolidation experts can help you with the accounting. But doing a budget is essential to any debt consolidation mandate. In other words, until you name the problems you have, you won't be able to identify discrete solutions that can fit neatly with your financial goals. Of course, debt consolidation is complicated because most individuals lead somewhat unpredictable lives.
Even married couples on fixed incomes with few debts and numerous assets can get into financial troubles, since the tumultuous economy continues to evolve around them. Interest rates go up, impacting mortgage payments, which in turn impact monthly budgets, for instance.
The way to deal with this constant economic change is to create a budget that's flexible enough to allow you a degree of debt consolidation and yet provide enough “free cash” in your accounts to let you reach your goals comfortably.
In other words, you can't budget out every dollar you spend (under most circumstances), since the time cost benefit of doing so generally doesn't make sense. For instance, if you spend 30 hours every month figuring out what you spend down to the penny, you are likely wasting at least a dozen hours that you could otherwise be using to work (and thus earn more money), invest (and thus make your money work harder), or simply have fun.
Another debt consolidation idea is to draft a savings plan that will slowly accumulate an emergency fund for you and your family. Budget experts recommend that this fund should store up at least six month's worth of living expenses, but don't try to sock away all that money at once.
Allocate a certain amount of cash in your budget per month for your emergency plan, and protect that money from your general spending accounts. And finally, look into a debt consolidation loan to help you reduce reliance on expensive creditor loans and simplify the planning process. |
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sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1334
1 Magic Points
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Subject: debt
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Fri Aug 24, 2007 11:21 am
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| WOW!! Good advice! I have been looking around for ood, legot consolidation/settlement companies. Some sound great..until you read the 'fine print'. Any ideas?? |
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Morningstar
Joined: 17 Apr 2007
Morningstar's page
Posts: 601
11 Magic Points
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Sat Aug 25, 2007 3:34 am
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If settlement is the way you want to go, you can DIY. Lots of resources on the debt forums.
_________________
I don't dream since I quit sleeping |
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sdchargers_63
Joined: 13 Aug 2007
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Posts: 1334
1 Magic Points
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Subject: debt
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Sat Aug 25, 2007 7:06 pm
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| I've been looking around the forum. Very good information, for, me, to 'start out with'. |
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sdchargers_63
Joined: 13 Aug 2007
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Posts: 1334
1 Magic Points
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Subject: debt
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Mon Sep 03, 2007 4:36 am
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| Settlements ARE good, for some. Just make sure that the company does what they say they are going to do. I've 'seen' some nightmares, on this forum. Not saying the Settlement Companies, on this forum, are bad. Just reading from the experience of others. Also....wanted to add, in MY 'sitaution' I'm settling ALOT of my debt myself......good that CA's are willing to work with me!! |
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smilenyc07
Joined: 23 Sep 2007
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Posts: 39
2057 Magic Points
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Sun Sep 23, 2007 5:56 pm
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| I rather consolidate than settle. It puts less impact on my credit report & score... |
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Laura
Joined: 21 Jun 2007
Laura's page
Posts: 1402
34547 Magic Points
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Mon Sep 24, 2007 5:37 am
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There is a difference when it comes to debt settlement. Settlement is opted for only when the individual has no other options left and has to go for bankruptcy. Settlement is the last weapon to keep bankruptcy away.
Consolidation can be done but one needs to be in a position to make those payments. There is no waiving off of amounts I guess(correct me if I am wrong). However in case of settlement...it is tried to be paid off at 40% to 50% of the actual debt. The fees attaches are also forgiven. Lenders agree to this because they are getting some amount back atleast. Otherwise if the debtor files bankruptcy he might not get back anything. So once you explain your condition to the creditor and relate that you have no option but settlement they usually help you more than willingly.
Thus there is the necessity of having a negotiating power to DIY. Engaging a settlement company is ok but the amount that will be devoted behind them can also be utilised in paying the debt within a shorter span.
_________________
Regards,
Laura. |
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sdchargers_63
Joined: 13 Aug 2007
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Posts: 1334
1 Magic Points
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Subject: debt
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Tue Sep 25, 2007 11:32 am
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| Sometimes I think I'm in, " the worst financial shape". But...when I read some of these posts, I feel pretty 'good' about my situation. By that I mean...I've seen people post that they are have no where to live, their property was re-possed, etc. If these people din't want to help themselves and get advice, they wouldn't be here. God Bless them!! |
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Laura
Joined: 21 Jun 2007
Laura's page
Posts: 1402
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Wed Sep 26, 2007 4:27 am
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There are people in worse situation. They cant even complain. We are really grateful to this forum for offering such an opportunity to share because we care 
_________________
Regards,
Laura. |
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sdchargers_63
Joined: 13 Aug 2007
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Posts: 1334
1 Magic Points
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Subject: debt
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Thu Sep 27, 2007 1:42 am
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| I agree. Giving advice, to others, and Vice-versa, ( being personal experience), is probably the best help we can get/give. |
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Laura
Joined: 21 Jun 2007
Laura's page
Posts: 1402
34547 Magic Points
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Thu Sep 27, 2007 4:19 am
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It is always very important to understand that money does not come for free. It is highly necessary to utilize in an economic way. Most of us are submerged in debt. In order to lead a debt free life first we have to get rid of the problem of over spending. In case due to unavoidable circumstances if we fall into debt then its very important to go through the right program to get out of it.
Consolidation or management or settlement it depends on the financial condition that you are facing.
_________________
Regards,
Laura. |
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smilenyc07
Joined: 23 Sep 2007
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Posts: 39
2057 Magic Points
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Fri Sep 28, 2007 1:30 pm
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| I would say that as long as we and our relatives are healthy we're good. Everything else can be taken care of one way or another. I often complain about this and that but sometimes when I see people that are visually impared ot somehow disabled, or addicted to drugs I understand how lucky I actually am and that my problems are nothing compared to what other people are going trough. |
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goodnatured
Joined: 03 Nov 2007
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Posts: 3735
10 Magic Points
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Sun Nov 04, 2007 2:48 am
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| I agree, debt is our commonality here, isn't it something that a bad thing can bring so many people together, I look forward to being here and sharing my miserable experience. I am slowly but surely working my way out of some really bad financial decisions. It is great to have a place to come to for advice and just to vent sometimes, not to mention all the support that is offered on this forum. |
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Dadummy
Joined: 15 Nov 2007
Dadummy's page
Posts: 637
13 Magic Points
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Sat Nov 17, 2007 1:19 pm
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| I like that commonality word, good or bad, we share this common bond. I like the advice given by the original poster, many different options there, so if one don't fit one of the other ones might, good post, are you going to register and continue to join us here on the forum? |
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goodnatured
Joined: 03 Nov 2007
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Posts: 3735
10 Magic Points
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Sun Nov 18, 2007 12:22 pm
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We all do have debt in common, LOL, debt is the reason that I went looking for help and found it on these forums.
_________________
Goodnatured,
http://cashinpocket.synthasite.com/
for all the ways I make $$ online |
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