Debt Consolidation Help

Posts Tagged ‘Debt reduction’

Well dear readers, if any of you are out there. I am back to update and continue with this journey of debt reduction.? It’s been eleven months since I closed this blog down. I honestly did not expect to come back to it. I started another one but depression and illness is a terrible thing, and I found myself too overwhelmed with daily life to manage anything else. But in the last few weeks much has changed, to the point where I am ready to return to work and to blogging and am ready to get stuck into paying off debt.

So I guess I owe you guys an update of sorts. ?

Our credit card debt has increased to over $50,000.? We chose to keep DS in college and lived off our credit cards. Yes it’s a bad decision, but we made it believing it was temporary and also selling up and renting wasn’t an option either. We also had increased medical costs related to Dad and I and of course I still had ongoing business expenses, even though I couldn’t work much. Unfortunately my income protection insurance payment was missed when I was in Sydney with Dad for surgery, and so I was unable to claim on it, even though I had paid it every year for the last 6 years.

Certainly the best news is that? I am about to start work at a full time job on a very good income, just under six figures. And all that income will go towards paying off debt. Considering we’ve been living (& debting) on < $40,000 for a few years now, we feel like we have won the lottery!

I no longer have our old faithful car. DH was in an accident a few months ago and it was written off. We got less than $2000 for it and have not replaced it yet. So a new car is also on the agenda at some point.

DS is now finally able to claim youth allowance so that free’s up approximately $200+ a week of our income. DD is preparing to move out in the new year.

My Dad has deteriorated a lot. He now no longer recognises me at all. He has health problems and may need more surgery in the future.? He just sits most of the day in his chair, in his own world. He needs reminding to eat now. I am hoping to get down and see him soon. I have not been able to visit much due to my own health problems over the last year. His costs are not covered by his pension and so we pay any excess bills incurred for him.

So what are our goals?

Well DH and I have decided we are ready to downsize our home to reduce the stress of debt and upkeep. We are going to work on reducing our debt and getting the house finished over the next 18 months ready for sale. Our plan is to buy a small house, hopefully debt free, and then to concentrate on saving for retirement and enjoying some travelling.

I will update our financial figures accurately at the end of the month. I know that our amount of credit card debt is shocking, I’m sure some people will judge and criticise. Don’t bother, the last year has been hell. I want to put it behind me. But one of the reasons I decided to come back blogging is that I think real life stories need to told, and they don’t always go to plan, or run smoothly, or have happy endings. I’m just as curious as anyone else to see what the journey ahead brings.

The two most famous legal debt reduction options are debt settlement and bankruptcy. Both these options are considered as legal debt reduction options and both carry advantages and disadvantage. The decision of whether you want to go for liability settlement or insolvency depends on your current financial situation and the benefits you want to gain by using a certain option to gain relief.

I haven’t got round to doing a progress report for the month.I’m just so backlogged with everything, and still not well. I’m working a bit more, but it’s hard! I am still only doing about half my usual workload and I feel really worn out by the time I get home.

I am taking a week off and going down to see Dad soon. He has more specialists appointments to go to. I gues I am trying to make the very most of what time we have together while he knows who I am ( at least when I tell him). I have hired a different house right on the beach for a week. It is only costing me $570, and it’s way more important than debt reduction right now.

It overlooks the water and has a nice flat concreted path down to the beach so with some help and if he’s having a good day I can get Dad down closer to the water. every time I see him he has gone down just that bit further. He is now in the locked dementia unit and having mood swings and more health problems.

I guess it’s hard to focus on finance at the moment. I’m working on my health, keeping my business afloat some interesting internet projects. The truth is I need a break, a good month off type of break, but I just can’t take it at the moment, so the week with Dad coming up will have to do.

I have applied for a 0% balance transfer on the remaining credit card balance which should get approved today, then I’ll update my tallies.

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Consolidate, Before It’s Too Late.

Credit cards have revolutionized the purchasing experience since Diners Club released the first credit card in 1950.

It gave consumers limited credit that, at times, even surpassed their own personal savings. It allowed them to buy items they cannot usually afford with a straight cash purchase. It also provided the convenience of not needing to carry wads of dollar bills.

Thus, on the average, American households possess 4 credit cards or a total of 13 payment cards including debt cards and store cards aside from credit cards. There are, actually, 1.3 billion payment cards in circulation in the United States.

But if you think that credit cards have made the lives of modern American consumers easier, think again.

Statistics show that the average credit card debt for each household per month is $4,800. This lead to 1.3 million credit card holders declaring bankruptcy in 2003.

And if you still consider yourself unaffected by this, then consider this one: upon retirement, most Americans can only expect to receive about 37% percent of their annual retirement income because of debt payment, leaving them to depend on the government, family and charity.

That’s scary. So before you find yourself in the same situation, it might be time to evaluate your credit card debt.

One way of resolving debt that you might consider is credit card consolidation.

So what is credit card debt consolidation?

In a nutshell, credit card consolidation is taking all your credit card debt dues and consolidating them into one monthly payment. This way, you don’t have to worry about managing the payments individually. Aside from that, it may also provide you the additional benefits:

? Reduce interest payments
? Waive late and overtime fees
? Low monthly payments
? Debt relief in a shorter time
? Credit improvement
? Save more money in the long run

You will also need to know that there are actually two major types of credit card consolidation.

First is through a Credit Card Counseling firm. They assist consumers by consolidating all their monthly payments into one single payment and then disperse this to the creditors in behalf of the consumers until they are debt-free.

The other type is through a home equity loan or other secured loan. This is done by exchanging an unsecured debt (such as credit card debt) for a secured debt (a debt backed by specific assets such as real estate).

Now, credit card debt consolidation isn’t a magic balm that will drive all your credit card debt malaise away. But it will make paying all your debt easier and might save you money in the long run.

Consolidate Your Government Student Loans

One of the biggest burdens faced by today’s students is the repayment of expensive student loans. In a day where room, board, tuition, and books can push college bills up past 20, 30, even 40 thousand dollars per year, many students are finding themselves in serious debt upon leaving college. Even with a good job lined up, you may find that you will be repaying your loans well after leaving school, after you are married, and still be paying your student loan off as your children get ready for their college education! Who needs that? You certainly don’t! There may be a way for you to tackle your student loan debt in the form of a government student loan consolidation. Please keep reading for more details.

So, just what is a government student loan consolidation anyway? For starters, it is a type of loan which permits you to take several student loans, pay them off, and make monthly payments to a single lender. For example, if you have 3 outstanding loans with 3 different lenders that are due at 3 different times of the month, you may feel as if you are writing out checks just about every week. In fact, you probably are! Who needs that? You have enough to think about such as managing your hectic schedule; balancing work, family, friends, and the rest of life’s tasks is enough for any one person to handle — wouldn’t it be simpler to pay a single payment each month? You bet it would!

Just where can you go to find yourself a government student loan consolidation? By searching online. Companies advertise their services to consumers and they are eager to do business with you. By shopping the internet you can locate the government student loan consolidation that is right for you. Please keep the following points in mind before selecting your loan:

Loan Rate. Will the loan be given to you at a fixed rate or at a variable rate? Can you lock in a long term fixed rate to make certain that your rate never rises?

Loan Amount. Exactly how much will the consolidator lend to you? Will the amount loaned cover the entire outstanding balance or will you have to pay the remaining funds off with a separate loan? Can you afford to do both?

Loan Term. How long will your loan take to be paid off? Will you be satisfied with making payments years after leaving college and with other responsibilities on your shoulders, i.e., new car loan, your marriage, a family, buying a home? Are there prepayment penalties if you decide to pay off your loan early?

Government student loan consolidations are fairly new and not for everyone. Make certain you understand all the “fine print” before agreeing to a new loan. You can reduce your debt to manageable levels with a government student loan consolidation if you shop wisely.