Category Archives: Loans and Debt

Get Out From Your Debt and Still Hold Your Assets

For a relatively small debt, living on a budget will be enough for you to cut down your debts and still keep your assets. Otherwise if you owe a lot, living on a budget is merely the first step in the get-out-of-debt process. You will also need to do some or all of the following actions:

Negotiate with your creditors.
Make a list of all your debts and the relevant information pertaining to each one. You should also analyze your budget to figure out how much you can afford to pay on your debts every month, starting with the ones that are the most important.
Ask your creditors to help you keep up with your debts by lowering your monthly payments on a temporary or permanent basis, reducing the interest rate on your debts, or letting you make interest-only payments for a limited period of time.
Never allow a creditor to pressure you into agreeing to pay more than you can afford. Whenever you talk with a creditor, explain clearly why youre calling and exactly what youre asking for. If the first person rejects your request, politely end the conversation and ask to speak with a manager or supervisor.

Consolidate Your Debt
Consolidating debt is a process when you get new debt to pay off existing debt. We know that going into debt to get out of debt may not sound reasonable, but if you did it right, it can be a smart debt-management strategy. To do it right, make sure that these following condition must be met when you consolidate:
The interest rate on the new debt is lower than the rates on the debts you pay off.
The monthly payment on the new debt is lower than the combined monthly total for all the debts you consolidate. The new debt you choose must be has a fixed interest rate.
You commit to not using credit again until the new debt is paid off.

Consult to credit counseling agency.
The advice and assistance of a credit counseling agency can be a great solution when you have a lot of debt and try to take control over it.
Credit counseling agency can especially help when you are still figuring what to do or not too confidence that you are able to improve your finances on your own. A credit counseling agency can
Help you to set a household budget.
Evaluate a budget you have already created previously, and suggesting changes that will help you get out of debt faster and avoid loss of assets.
Negotiate lower payments with your creditors and set up a debt-management plan for you
Develop your money-management skills.
Not all credit counseling agencies are reliable, so take time to choose a reputable one. First and foremost, that means working with a nonprofit, tax-exempt agency that charges you little or nothing for its services.

The Process of Debt Consolidation

Many people, today, are plagued with financial problems, and they do not know how to solve them. Some of them may have lost their jobs, incurred large amounts of credit card debt, or simply do not make enough money for them to cover unexpected bills. While many people may think that the only solution is bankruptcy, this is not true. There is a process called debt consolidation that can help them rise above their financial troubles and lead a worry-free life, once more.

How Does Debt Consolidation Work?

Bankruptcy is not a solution for every person, as debt consolidation can often solve even the worst-case financial situations. Once people decide to opt for debt consolidation, they will need to attend debt counseling with a qualified professional. They will need to bring such paperwork with them as a list of debts and creditors, a list of assets, income information, and a list of all monthly living expenses. Living expenses may include rent, utilities, medical bills, gas and food.

One of the options with debt consolidation is obtaining a debt consolidation loan. This is terrific for people, whose credit has not been severely damaged, as they can combine all of their debts, such as personal loans and credit card debt, into one convenient payment. Another option is for the debt counselor to negotiate payments with their client’s creditors. In many cases, creditors will lower interest rates and eliminate penalties. Clients will make one payment per month to a trustee, who will then pay each creditor.

Pros and Cons of Debt Consolidation

Just as with any other essential decisions in life, people need to think about all of the advantages and disadvantages of debt consolidation before choosing this plan of action. Some of the pros of choosing a debt consolidation plan is that it relieves people’s stress and gives them peace-of-mind. It also offers them an easy-to-manage payment plan with low interest rates and monthly payments.

There are some cons with debt consolidation, as well, with one being that consolidation loans are typically secured loans. This means that debtors will need to provide some form of collateral, such as their house; and if they do not pay all of their monthly payments timely, they could put their homes at risk. Another disadvantage of debt consolidation is that it may be impossible, afterwards, for people to obtain new lines of credit in the case of emergencies.

In conclusion, while there a couple of disadvantages to debt consolidation, there are many more terrific advantages. While the impact of consolidation on the debtor’s credit report may be negative at first, it will be positive in the long run, if people make their payments on time. With the advantage of having just one manageable payment per month, rather than several payments, and reduced interest rates, debt counseling and consolidation makes perfect sense for anyone in financial difficulty.

Congress Debt Talks Fall Short Again

The debt talks Congress has held as a result of the failure to meet the debt ceiling deadline over the summer have failed at their intended purpose of creating a deficit agreement. Lawmakers have reached a standstill and much of the talks have devolved into partisan bickering. If the talks don’t change direction by the deadline on November 21, this will result in over $1 trillion in cuts to many social programs and military spending.

This is not the first time government leaders have had problems cooperating to come up with solutions to the nation’s debt crisis. The talks between President Barack Obama and Speaker John Boehner fizzled out with no lasting solution for the American people. And the Bipartisan Deficit Commission, formed earlier this year, also made insignificant progress towards the goal of saving America’s financial future. Just using the previous year as an example, it should be clear to many Americans that their government does not have a proven track record of cooperation towards the greater good. Instead, many Americans may feel let down by their government leaders, who just don’t seem to be able to see eye to eye.

Things tend to be much simpler for individuals when they’re looking to solve their debt problems. Sometimes, when one consumer is looking for help managing his or her finances, short term loans are a popular option. Among the most popular types of short term loans are collateral loans, which allow a borrower to give something they own to a lender temporarily in exchange for a loan. And in this category of loans, car title loans are one type of loan that consumers choose because they often find the process easier than other loans. Car title loans don’t require a credit check, and come with lower interest rates and longer repayment periods than other short term loans. For comparison, “check advance” loans often charge interest rates approaching 1000% APR and usually need to be paid back within a week. Further information about title loans is widely available online. But the best source for information is industry blogs, such as those that are found on and

Obviously, the entire government will not be able to solve the country’s debt problems by taking out car title loans. It would be a nice thought, but when you’ve got a gross debt of over $15 trillion, short term loans simply aren’t going to do it. The only solution to America’s deficit problems is for Congressional leaders to begin working together and cooperating across party lines instead of plain old “politics as usual.” With the country’s economic future in the balance, politicians should learn that these games are not helping anyone.

Income Tax Relief on Income Tax Debt in Canada – Who Qualifies

If you have an income tax debt in Canada, at times it can feel paralyzing. Income tax debt in Canada can grow at an alarming rate. Unlike our counter parts in the US who often turn to criminal action to enforce non-compliance, the Canada Revenue Agency relies heavily on imposing interest and penalties to penalize taxpayers who file late, fail to declare income or improperly declare expenses.

Once late returns have been filed or past returns have been re-assessed by the Canada Revenue Agency, their first step will be to assess a penalty on the tax debt. The Canada Revenue Agency’s next step will be to calculate interest on the income tax debt and penalties going backwards to the tax year when the tax debt occurred. The end result is that the taxpayer can end up owing more to the Canada Revenue Agency in interest and penalties than the principal tax debt. For example; an income tax debt of $20,000 may end up being more than $40,000 once the interest and penalties have been calculated.

In Canada, a taxpayer can apply for income tax relief under the Income Tax Act. This does not mean that the principal tax debt can be reduced. However, the Canada Revenue Agency can cancel all or part of the interest and penalties.

One way that a taxpayer can qualify for income tax relief under the taxpayer relief provision is because of extraordinary circumstances. Penalties and interest may be waived if an event has occurred that was beyond the taxpayers control and was the cause of the non-compliance. Some examples of extraordinary circumstances are natural disasters (fire, flood etc), a civil disturbance, a serious illness or accident, serious emotional or mental distress, the death of an immediate family member etc

Another way that a taxpayer can qualify for income tax relief on an income tax debt is if they are suffering from extreme financial hardship. If the taxpayer can substantiate that they cannot pay because of job loss, they cannot pay the interest charges but could pay the principal tax debt, payment of the interest charges would interfere with their ability to provide basic necessities like shelter, food and transportation; in these cases the Canada Revenue Agency may waive all or part of the interest and penalties owing on the tax debt.

Finally, income tax relief on an unpaid income tax debt may be granted if the cause of the interest and penalties was caused, all or in part, by the actions of the Canada Revenue Agency. Some examples of this are processing delays; errors in material which led the taxpayer to file a return based on improper information, incorrect information being provided to the taxpayer by the Canada Revenue Agency, like errors in processing and undue delays.

An application for income tax relief is an official process that should be handled by a professional if you would like to increase the likelihood of your application being accepted.

Advice on Getting Credit Card Debt Consolidation Help

If you are feeling down in the dumps with huge debts, credit card debt consolidation programs can help you to realize the measures to be taken to clear the dues. While making an important decision, you really should talk it out it with people around you who are experienced enough to help you in your decision making. That means talking to friends, family members, or colleagues who have worked with debt consolidation programs themselves. Get the facts about debt consolidation programs and its various facets.

Go for programs that will resolve your debt issues and keep you out of danger. Every individual is surrounded by various economic problems and each one is equally stark. So when you are pursuing debt assistance it is important that the solution not only matches your requirement but also keeps you at ease.

A debt consolidation program includes a professional who has to his advantage a myriad of tools to use to help you get your monthly income under control. It should be noted that credit rating is very important. A company while consolidating uses primarily loan products to help you combine and manage your debts by reducing it. Your credit rating can have a large influence on what kind of loan you will qualify for and what kind of program to use to in your situation.

Debt consolidation helps you to save a certain amount of money for your checking account, investment account or a savings account. This would also enable you to increase your credit rating.. The procedure of debt consolidation constitutes gathering your multiple rates under one low interest, low payment monthly loan account. If you head for a debt loan, the result will be seen in your credit score as you are eliminating all of those credit accounts and replacing them with one reasonable loan. With the help of a debt professional, you can reduce your monthly obligations to a single loan thus allowing to free up extra cash and use cash to purchase things instead of credit.

Banks and creditors view debt consolidation loans favorably because they know that you will be engaged in some positive ways to repay your dues. The majority of creditors have an inclination to work with debt consolidators helping you to lower your monthly payments or interest rates because they see this as an opportunity to have debts paid in full and in a timely manner.

A profitable debt consolidation program tries to make you debt free.

Top Secrets for Commercial Debt Collection, Revealed

Are you a start-up and facing the problem of commercial debt? Have you given-up after repeated attempts to collect debt from a customer? If your answers to the above questions are yes, let me welcome you to the large family of small and big businesses that also suffer from the similar problem of commercial debt. But sometimes even the most hopeless of commercial debts can be collected. All you need is the right strategy and correct moves. Several collection agencies have been doing this successfully for many years. Given below are some top secrets of commercial debt collection revealed by Ranger Financial Services Richardson, TX:

You are more likely to catch the attention of the debtors, if you write to them in addition to giving them a call. If you call them for debt collection, there are high chances that your calls will not be answered and in rare cases when your call will be attended, they may have a bad attitude. Sending collection letters is comfortable for you and it will provoke debtors to think of debt payment instead of thinking of an excuse to give over phone

Ranger Financial Services Richardson, TX believes in the famous saying, tomorrow never comes. Therefore, ask your debtor to commit a specific date for payment. They may answer that the payment is in process and will be done any time now. Never trust them. Having a specific payment date will set deadline for clients and will make them answerable in case the payment is not done on that date.

Understand that your debtor is avoiding the payment because he may be in real financial trouble. Therefore, it is important to be cooperative with your debtor. Since you both share the common goal of payment of the commercial debt, communicate nicely with each other. Work together to make a repayment plan such as repayment in installments that will serve the purpose of loan repayment without too much of hassle.

Lastly, leave the hassle on the experts i.e. collection agencies. There are many small collection agencies that will help you collect a commercial debt for less than $30. This a very small price to pay if you have a big amount in stake. Ranger Financial Services Richardson, TX recommends hiring a good debt collection agency to collect your debt if you have failed to do so after repeated attempts. This way, you will not have to waste your time and still you can get repayment for your commercial debt.

Read More Concerning Procedure For Credit Card Debt Elimination

An easy Helpful Process for Credit card Credit card debt Elimination

Poor with bank cards? With tough economic problems getting in credit card debt is not the most convenient point these days. So do you think youre in charge card financial debt? Properly dont be troubled. Here is often a simple procedure for bank card debt elimination.

First of all sit down and publish just how much you owe with every credit card you might have. This is the single most important issue when subsequent the method for credit card debt elimination. Once youve this pinned down youve an idea of just how much you owe every company. Then determine which debts will be the least difficult to pay off and which ones cost curiosity. The stage right here is usually to slowly and gradually commence having to pay back a few of that funds whilst minimizing losses. This process for bank card debt elimination just isnt about magically fixing all of your debts but about taking 1 thing at a time. In case you have more than a single credit card start together with the stability that has the highest rate of interest. Then move on to your following card.

Keep a track of how you spend your funds. This can be a treatment for charge card credit card debt elimination Allocate a portion of cash flow to pay off debts. Go through your credit card bills and uncover out in which your funds is put in. Lower down on products that are not essential. This treatment for bank card credit card debt elimination is all about acquiring out of charge card credit card debt instead of obtaining ways to shell out a lot more. So whilst you are paying out off your credit card debt be sure to are only purchasing only the essentials and saving the remainder of the cash to pay out the financial institution again. Be sure you Publish down what you shell out. Ever previous dollar This way you recognize wherever your cash is heading and you will soon see how much of cash is put in obtaining factors that can be offered up correct now. Obviously many of us like to indulge ourselves inside the very newest trends but should you be in debt you wont die without them. You will nonetheless undergo significantly in case your charges will not be paid. So take heed to your assistance presented in this method for credit card credit card debt elimination.

Finding out of bank card debt just isnt as hard when you would believe its. All it calls for is diligence and a firm hand. Follow the couple of straightforward measures supplied by this treatment for charge card financial debt elimination and you will soon be debt free.

Debt Problem Warning Signs

Many Americans have over spent during the last 3 years. It has created a major credit problem for most. Here are some important indicators to help you see if you are on the verge of major debt problems:

You have little or no savings – Very often, people fall into bankruptcy because they have some unexpected expense. If you have no savings built up, it means that any medical emergency, car accident or other unforeseen challenge will have to be paid for on credit.

You only make minimum payments on your credit card debt – When you only pay the minimum balance on your credit card debt, you are practically giving you money away to credit card companies, lenders and banks. You accrue the most interest on your credit card debt making minimum payments, and thus you really are not solving your debt problems.

You continue making credit card purchases, even though you are trying to pay off those same cards – If you were trying to bail the water out of a boat, you wouldn’t put it back into the ocean would you? The same logic applies to credit card debt; if you know you have a debt problem, put the plastic away until you can get the balance down to either zero or at least a manageable number.

You have at least one credit card or line of credit that is near or over its credit limit – A sure sign of a potentially major debt problem is when your lines of credit are all used up. If you do not have enough money in your paycheck to fund your expenses, and you have used up all of your credit lines, what will you turn to in order to make ends meet? Debt problems often begin to become obvious when a consumer has no money left just before rent is due, or a car payment. This is when you have nowhere to turn since all your credit cards are maxed out.

One last sign of debt problems is when you are occasionally late in making payments on your bills, your credit cards and other monthly expenses – Once you are late once, it becomes okay to be late a second time. Part of the snowball effect is when a consumer gets so overwhelmed with their debt problems that paying bills in general becomes too much. Soon enough, all of the mail begins to take on a pink tone (meaning Past Due notices) and potential debt problems become massive debt problems.

If you are wondering if your finances exhibit any warning signs of potential debt problems, check the above five warning signals. If one of more of these sounds familiar, you should immediately take stock of your finances and see where you can cut back, whether you can make more money or if you need some sort of outside assistance.

Debt Eraser – Simple Debt Reduction And Elimination

People take a variety of loans for a variety of purposes. If you think that you have a huge debt and want to eliminate it, then ask a financial planner to make a debt elimination plan for you. They will look into your revenue streams and the spending pattern. Then they will try to eliminate the smaller debts first.

It’s difficult to eliminate long-term loans; it’s certainly possible to eliminate short-term loans. Stop buying and spending on credit in short term. This will lead to short term debt elimination. For example don’t buy groceries on the credit card. This will automatically lead problems, this advice will be useful for you. Use cash to buy and use coupons for getting a few dollars off on various products. Thus there will be less credit card bill at the end of the month. Use a credit card only when you must.

Get professional help. The best way to know exactly what you need, is to use a professionally recommended debt elimination plan. Contact a quality debt advisor like for example Abacus, which will almost guarantee that you will save yourself money and time.

Consolidate multiple bills. If you have lots of bills to pay each month, you will be amazed if I told you how much extra you are paying unnecessary. The solution is to consolidate all your debt into one loan and pay only one bill a month. This will cause the amount of interest you pay to go down, while at the same time the amount of money in your pocket goes up.

When starting your debt elimination system, be sure to focus on one bill at a time until it’s completely gone. One way is to start with the debt that has the highest interest rate. Another way is to start paying off the one with the lowest balance. Many people have had success paying off the bill with the lowest balance because they can see an immediate reward for their effort. Whichever way you choose, start the process today and you’ll have the debt relief that you deserve!

Debt Consolidation Is debt doing you part

Debt consolidation is the art of snowballing little debts into one giant snowman. However, some debt consolidation companies might even make you believe that theyll actually make the loans go away, or carve out such a wonderful deal that you wont even feel the pain of repayment. Some of their promises include a guaranteed reduction in monthly payments or a near zero interest rate. Hello, who are we kidding out here? Its time for a reality check think of them as no more than a bad joke.

What debt consolidation might do for you, however, is to shift your repayment burden. If you do opt for it, in effect you will be taking a new loan to pay off old ones. Often, the new loan might be secured against some little property you may own, and therefore will entitle you to lower interest rates. Unless youre certain of being able to pay it off, youd do well to seek friends willing to offer you free accommodation once your home is taken over by the creditors!

Still, you might find debt consolidation a viable solution in case youve run up a huge sum on your credit card account. Credit cards typically carry very high interest rates, and if you choose to take a secured loan to clear off your payments, youll probably have saved yourself a few dollars in interest.

Assuming that youve decided to bite the bullet, watch out for the usual pitfalls.

Theres no such thing as an easy loan. If youre what is politely called a credit risk, be sure that no lender is going to dish out the stuff without some pretty stiff conditions. If they make it sound like the loan approval is a done deal, run a mile! Its quite likely that theyre going to charge you some astronomical interest rate, so cleverly packaged you wont even know it.

Beware of smooth talkers. If the company youre talking to promises to take care of everything, make sure they really do. After all, theyre going to get paid for it if not from you directly, certainly from the creditor. Some companies are known to be slack, and land up delaying payments! When that happens, you go from looking bad to worse.

Watch out for predatory lenders. Oh yes, they do exist. Some companies wait and watch till a debtor has dug a little hole for himself, before they make their move. At times like these, the debtor is so desperate hell take any quick fix thats thrown his way, even if it comes at the maximum permitted interest rates.

Since debt consolidation is a double edged sword, in time of need it is advisable to approach the larger or better known companies such as American Debt Consolidation or E-LOAN.But the bottom-line is that you will need to make a fundamental readjustment in your spending habits if you want a permanent solution to your debt problem.