4 Steps To Successful Debt Consolidation

Debt consolidating,the very term strikes fear into the hearts of anyone looking to begin this monumental undertaking. Most people have at least a dozen accounts (many find themselves with a few dozen). Some of their accounts are delinquent,closed,charged off,behind,etc. Stacks of unopened account statements,and collection notices pile up in the kitchen and office. What are you going to do now? First,take a deep breathe,you have already taken the first step in taking action to relieve your debt stress by looking for information and getting organized.

Not to say there isn’t a long road ahead,however,facing the music will be the hardest part,trust me,I’ve been there. In 2005 I found myself $25,000,operating a failing mortgage business,looking at foreclosure and could not see a way out. Fortunately,I was able to work through the system,get my bills under control,and now have a manageable debt to income load and have some hard fought tips on how to get back to living within your means. You can start this process with a debt consolidation. Follow these steps and you will find yourself on the right path sooner then you think.

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Debt Consolidating Step One – Gather your financial information

Remember all of those bills piling up around the house I referenced earlier? Yup,going to have to plow through these. I suggest if you know how to use a spreadsheet you consider this an opportunity to increase your skills. The beauty is you only have to find the most recent statements from all of your accounts so you can shred the months (if not years) of all the other accounts. Make sure to include checking and savings account information as well as any debt consolidation company is going to need to look at your ability to pay regardless of the balances. From here on out you will be best served to keep track of your accounts because starting now,you are taking control of your financial future. I would suggest getting this information together as quickly as possible,as it will be a stressful,emotional process best suited for a weekend set aside to plow through it quickly and move into the next stage,checking into the types of debt consolidation programs available.

Debt Consolidating Step Two – Choosing the type of consolidation institution

OK,toughest part over and done. You know where you stand regarding your balances and the size of prize awaiting your dedicated action towards financial success. Let’s take a look at what to consider when deciding on the next course of action,the debt consolidation. Credit status is going to plan a significant part in your strategy moving forward.

Two Scenarios for Debt Consolidation: Good vs. Bad Credit

Good credit (700 & above) may allow you to get a credit card with a low or no interest rate to transfer your accounts balances over to. If you have the ability to pay this new,lower payment,you may be able to avoid additional interest charges! You can pull your credit score from reliable sites such as FreeCreditReport.com.

Another option if you have less then great credit,you may be able to open a line of credit. This can be a risky business however,since the temptation of spending this line on other things then debt consolidation exists and you can find yourself worse off then before. This strategy can sometimes offer better interest rates and terms then a credit card. Along the same lines,student loans offer outstanding interest rates,but you would have to BE a student to take advantage of this.

Lastly,there are the professional debt consolidators. These are the organizations,non-profit or for profit,that have decades of experience in negotiating with major creditors. Once you find one you like,they will be a buffer between you and your creditors,handling negotiations,balance reductions,payment arrangements,the whole shooting match. If you want the quickest,most painless way to handle the debt crisis,these are the guys to go to. Just to be clear,whether they are for profit or not for profit,the company will charge a fee to handle your problem,however,if you are currently paying hundreds of dollars in late fees on several accounts right now,$40 bucks a month for you to stop receiving collector calls and seeing you balances shoot the roof may be acceptable.

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Debt Consolidating Step Three – Shopping for a debt consolidation Company

So know you should know where you stand,whether your score is still hanging in there,or it found a gigantic hole in the floor,you are now armed with the information on what to do next. When you start moving forward with your debt strategy,make sure to shop around. I’m sure you will be excited when you find the company or strategy says ‘YES’ to helping you out,but if there is one company out there,there is most likely another competing for your business. There are going to be variations in terms,interest rates,fees,etc to consider,hence your spreadsheet practice from the first step comes in handy.

A few more of the details to consider would be whether the interest rate adjusts at some point (IE adjustable rate mortgages) and if there are upfront fees. Both of these factors have the ability to throw a nice shiny wrench into your plans if you aren’t careful. However,at this point,you are getting dangerously close to taking the freeway to reducing your debt,make sure you stay aware of the pit stops along the way just waiting to take your newly found self confidence away!

Debt Consolidating Step Four – Choosing an established debt consolidation company

I’m going to assume at this point you either don’t have the credit to get the line,loan,or credit card and have little choice but to go with a debt consolidation company. Trust me,this is better than bankruptcy regardless of what you might hear. The stress relief of having your debts handled by professionals is quite close to priceless.

The bottom line here is make sure you choose a company that’s been around the block,has relationships with major creditors and a positive track record of reducing unsecured debts (such as credit cards) by 40% or better.FloridaDebtReliefHelp.com

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The Benefits and Drawbacks of Debt Consolidation

So you’ve got a mountain of debt and you’re looking for a way out. Sweeping it all up into a debt consolidation loan seems like the most painless way to solve the problem,but before you sign on the dotted line,you need to know whether going through with debt consolidation is going to really help you or not.

The Benefits of Debt Consolidation

1) Instead of writing checks for all your separate bills every month (and remembering to write the bills),you have one bill to pay. If you have trouble remembering due dates and getting all your bills paid on time,debt consolidation can make your life a lot simpler.

Remember,every late payment can cost up to $40 or more,and late payments also do significant damage to your credit rating. Enough damage to your credit rating,and you’ll find your interest rates soaring.

2) If your credit is still good,you can probably get a lower rate on a debt consolidation loan than what you’re currently paying (especially if you have a lot of credit card debt). With the lower interest rate,more of your hard-earned money will go to paying down principle,so you’ll be out of debt sooner.

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The Drawbacks of Debt Consolidation

1) A debt consolidation loan won’t change your spending habits.Debt consolidation can fix the symptom: too much debt,but it can’t fix the underlying cause: You spend more than you earn. Unless you do debt consolidation along with a major change in how you spend (and,hopefully,earn) money,you will continue to rack up more debt.

2) If you do continue to rack up more debt,you will end up in more trouble than before you consolidated your debts.This second drawback to debt consolidation is a bit odd,but it happens to thousands of people: Debt consolidation can seem to make the debt problem disappear,but as soon as it’s “gone” they create a new debt disaster.

The recently-unburdened are suddenly paying less and are finally current on their bills. After all the debt-ridden days are over,it’s hard not to celebrate… by spending more money. So debt consolidation’s benefits can turn into major problems because they take the pressure off. For some of us,it’s the pressure of our existing debts that keeps our spending in line. Remove that pressure,and we go right back to overspending.

3) Getting a bad debt consolidation loan.Here is a short list of things to avoid in any debt consolidation loan.

– Variable rate. This means the interest rate can change any time. Which means that you could end up paying more than you do now.

– Two-cycle average daily balance. A credit card term that is not your friend.

– 20-day billing cycle (versus the standard 30-day billing cycle). Another credit card term that is not your friend.

– Finance company loans. Wolves in sheeps’ clothing.

– Any lender that offers you a large (over $5000) loan without a significant credit check,on the condition that you make a hefty fee up front.

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4) Falling for a debt consolidation scam.These aren’t just “bad” loans – they’re full-fledged fraud. The tricks include:

– Pretending to be a non-profit debt counseling service. If the lender won’t send you a copy of their IRS approval of non-profit status letter,move on.

– Saying they will negotiate a debt consolidation loan for you,so you can use the money to pay off your debts. They tell you to start sending them money every month. You send it. They don’t pay your creditors. You get deeper (MUCH deeper) in debt.

– Contacting you by mail or email,offering you the best deal you’ve ever heard of. If it sounds too good to be true,it is. Respectable finance firms do not send unsolicited email,or even direct mail. They get word of mouth referrals.

5) Getting a fair debt consolidation loan,but not changing your spending/saving/earning habits.This is the double-whammy of con #2. For example,say you take out 80% of the equity in your home to pay off your scorchingly high-interest credit cards. But then,instead of rigorously keeping to the budget you made up,you continue to buy things and you give in to all the new low interest credit card offers that come in the mail. You swear to yourself that the big raise will come any day and your income will double.

Instead,you get fired. Within two months (remember,you never saved any money) you can just barely pay your mortgage,much less your home equity loan,much less your new credit card bills. After a few late payments,the new credit card interest rates vault up to 30% or more,and you stop paying them altogether,along with the home equity loan. The bank can now take your house.

Compared to this scenario,it would have been better to have stayed under the old “mountain” of debt (which now,comparatively,looks like a small hill) and learned the slow,hard lessons of frugal living and finding happiness in life in ways that don’t require spending.

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Dealing With Debts Through Free Canada Debt Consolidation

You can find free Canada debt consolidation through a number of sources. Debt consolidation helps you deal with debt problems without filing for bankruptcy or giving up your property. The debt consolidation help you put your credit report back in order. Many people are skeptical about debt consolidation,thinking it will put them into further trouble. However,debt consolidation is a legal way of dealing with debts,and it is allowed in Canadian territory as well.Eliminate Debt Today!

Canada Economy And Debts

Canada has a rapidly growing economy,with one of the highest per capita incomes in the world. The economy of Canada has increased consumer spending. With a high gross per capita income,people spend more on luxury and other goods. But this has also given rise to problems like multiple debts for a number of people. If you have taken loans for your education,home renovation or vacation,you may be finding it tough to pay them back. Credit cards are another major cause of debts in industrialized nations like Canada. You can deal with debts through free Canada debt consolidation.

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Advantages of Loan Consolidation

Loan consolidation is the process by which your outstanding debts and bills will be merged into a single monthly payment. There are many reasons why you should watch out for free Canada debt consolidation. Some of these are listed below.

  • Reduction in the number of payments you need to make every month
  • Faster clearing of debts
  • A sound financial plan that is manageable and within range of your income and lifestyle

    A free debt consolidation company can help you repair the damage to your credit report,so that you do not face problems when applying for a loan in future. Of course,those who offer free Canada debt consolidation will also give you advice on how to avoid loan problems in future.

    Online Debt Consolidation

    One of the best places for free Canada debt consolidation is the Internet. You can find many companies that offer free Canada debt consolidation online. You can even request a free debt consolidation quote for their services. More than anything,you can find the kind of free Canada debt consolidation that suits your financial position. The company might help you negotiate with your creditors so you can get a lower interest rate and increase the period of the debt,or they can help you with a free debt consolidation loan to repay all your previous loans.

    Through a free Canada debt consolidation,you can find the best debt help in Canada.Don't Let Your Debt Consume You

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    Myths and Facts about Debt Consolidation

    Debt consolidation is one of those terms that gets thrown around a lot when people talk about money management and paying down debt. While it is a great strategy (at least for certain people),it is one of the least-understood money management approaches going. In fact,there are at least ten classic misconceptions about how debt consolidation works that people in debt need to have debunked.

    Of all the financial plans available for people dealing with overwhelming debt,this is probably the most valuable and the least understood. In fact,you may already believe some of these common myths. Find out the truth!

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    Myth #1 Debt consolidation is the same or similar to debt management,debt settlement,and bankruptcy.

    Truth Although the terms are thrown around a lot and even used interchangeably,there are some key differences. One things that set it apart is that it is not really a program (you can do it yourself if you want to) but more of a strategy.

    In debt consolidation,you lump all of your debts together and repackage them. Debt settlement and debt management typically involve dealing with a company or counselor and the object is to reduce the amount you owe. Bankruptcy is a legal proceeding that involves a date with a judge.

    Myth #2 Debt consolidation reduces your debt.

    Truth No,it doesn’t. If you owe a total of $80,000 on several credit cards and loans and you consolidate that debt,you still owe $80,000.

    In the strictest sense of the term,debt consolidation does not re-negotiate,settle,write off,or reduce any of your debt. What possible advantage is re-organizing your debt like that?

    If you have a lot of loans at high interest rates,repackaging those higher-interest debts into one larger loan at a lower rate reduces your interest and the amount you have to pay. This means you can either pay less a month or (even better) pay the same amount but get the debt paid off sooner.

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    Myth #3 Debt consolidation will hurt my credit score.

    Truth If you do it properly,it is likely to have no negative impact on your credit score. In fact,it may even improve your credit score! That’s because you’ll be paying off a bunch of smaller loans and any time a loan is paid in full,that helps your credit score.

    Myth #4 Debt consolidation requires getting help from an outside agency or a lawyer.

    Truth While there are companies and counselors in the marketplace who will help you deal with debt (in many different ways),you can also consolidate debt on your own.

    Of course,if you want to handle this on your own,you have to know a bit about how to do it and what the options are. But it can definitely be a do-it-yourself project for people good with money (or who are willing to learn enough to get good with money).

    If you reorganize your debt yourself in that way,it is also not necessarily visible to outsiders. Your bank,the credit bureau,and other parties may not even be aware that you have consolidated debt. (However,if you negotiate or try to settle your debt,that will send up some red flags.)

    Myth #5 Debt consolidation is something for financial losers and lightweights,not for people who know how to manage money.

    Truth This is the most far-out myth. Reorganizing and structuring your debt more favorably is a principle that is used in business and by the super-wealthy all of the time. It is a way of organizing and structuring your debts in a way that is most advantageous to you.

    Myth #6 Debt consolidation is just robbing Peter to pay Paul; you’re just getting more debt!

    Truth It is indeed a way for you to pay off one debt by getting another debt. But not all debts are equal.

    As an example,let’s say that you owe $10,000 and the loan is set up so that you have to pay 22% interest. For example,let’s suppose that I go to my credit union and work out a deal to borrow $10,000 at 12% interest. While both debts are still in the amount of $10,000,the debt at 12% interest is a better deal for me. I won’t have to pay as much per month or,if I make the biggest payments I can,I can pay it off sooner.

    Myth #7 Debt consolidation requires you to be a homeowner.

    Truth There is a grain of truth to this,in that owning a home definitely offers an advantage to anyone who wants to re-structure debt. (It doesn’t matter if your home is paid for or not,but you do need some home equity.) There are ways to reorganize your financial obligations even if you do not own a house.

    Myth #8 Debt consolidation will make it harder for me to get future loans.

    Truth In most cases,it is unlikely that anyone but a forensic accountant could figure out that you have reorganized your debt (unless you go through a debt consolidation company-that could leave a paper trail).

    If you borrow money in one loan and then take out another,more advantageous loan to pay off the first one,you’re more likely to leave a paper trail of somebody who pays off debt responsibly. It is more likely to make you a desirable creditor.

    Myth #9 People who consolidate debt just wind up digging themselves in deeper in debt!

    Truth It is absolutely possible to consolidate your debt and then keep spending and get yourself in a big mess. That’s why you need good information and a plan to pay off your existing debt,manage your finances now,and start planning for your financial future.

    There is no reason that many financial management programs cannot work to get you out of debt for good,but you have to have a plan.

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    Myth #10 Debt consolidation will allow me to write off some of my debts and it will stop bill collectors from calling.

    Truth Let’s take these one at a time.

    Unlike bankruptcy,true debt consolidation will not allow you to write off any of your debt-not a penny of it. Whatever you owed as a debt before consolidation is the amount you’ll owe after consolidation.

    So why would anyone use this approach? Well,it is a new loan and it is structured in a more favorable way than the older loans. You do not get existing debts cancelled or decreased! Now it’s true you can work that out in other debt management solutions (debt settlement lets you reduce debt,bankruptcy will let you write some debt off) but they come at a price. Both of these approaches can have a negative impact on your credit score,will make it hard for you to get future loans,and stay on your record for quite a while. Bankruptcy,in particular,is an extreme solution that involves an actual court proceeding and a judge who has the authority to make certain decisions about your financial situation (including forcing you to sell some items to pay off debts).

    If you regroup your debts in this way,it can only stop bill collectors indirectly. Here’s how: let’s say you have six debts and you’re getting calls all of the time. If you re-organize your six debts into one large loan at more favorable terms,you’ll pay off all of those littler debts. Bye-bye,bill collectors!

    However,if you don’t pay off your new bigger loan on time,the bill collectors will start calling again.

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    11 Reasons To Do A Basic Boating Course!

    Boating is a great adventure on any type of boat and is being enjoyed by many on a daily basis,but with that comes a great responsibility. It is not mandatory to do a boating course at this time but there are some very good reasons to get your self informed about the rules of the road.

    1) You will learn about safety equipment and what you are required to have on your boat before you undertake any boating excursion. This is very important because what you don’t have with you could make the difference between being able to handle a situation or not. Also,that outing for the day could cost you if the sheriff stops you to spot check your boat and fines you for not having all the safety equipment required for your specific boat andBoat Lift

    2) You will learn that driving a boat is vastly different from driving a car. You are dealing with air and water currents. If you have never docked a boat you may think that it is easy,until that is,the current is pulling you in the opposite direction that you want to go. Understanding air and water currents will help you learn how to dock your boat.

    3) Knowing how to work with lines and tying knots is part of boating. You have to be able to secure a boat properly. If your boat gets away,it is amazing how quickly the current will take it out of your reach and you will probably require the assistance of another boater to help you get to it. So learn your knots.

    4) You will learn what the channel markers mean. We learned the hard way the first time we went out on a boat and ran aground outside the markers. We also had no clue what the red and green markers meant on the poles. This you also learn on the course.

    5) There are speed limits on certain water ways but unlike the roads,they may or may not be posted. Ignorance may not be enough to get you out of a ticket.

    6) Using charts for coastal navigation can be a life saver. It’s your road map that helps you stay away from the shallows and shows where all the markers and bridges are,and by using measurements you can calculate the distance and time it will take to get somewhere. It can be valuable tool for navigation.

    7) Just like on the roads,there is the right of way. On a boating course you will learn who has the right of way and why.

    8) Every boat should have a horn. You may hear one long toot or 2 short toot and so on,and you’ll learn what they mean.

    9) There are boating regulations and laws that must be followed by all boaters,for example,(and I have seen this rule broken so many times) you are not allowed to sit on the bow of the boat with your feet hanging over board. There are many more regulations to learn and not knowing them can cost you.

    10) Anchoring a boat is not just a matter of plopping it down to the sand. There is a mathematical technique applied to anchoring that has to do with the size and length of your boat. Knowing how to do this correctly will give you that extra insurance of knowing your boat is going nowhere until you want to move it.

    11) Storing the boat properly. Knowing how to enter and leave from yourBoat Lifts and how to maintain the different types ofBoatlift are important,including top brands like IMM Boat Lifts

    There are different ways to enjoy pleasure boating such as the fast pace of ski boating or the slow pace of a trawler,kayaking or canoeing. In whatever way you want to do it,it is a good idea to know the rules of the road. Then you can avoid potential situations and get on with the fun of being out there with all that sky,sun,water,family and friends.
    Enjoy!

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