Debt is not something you want to have. It makes doing anything very difficult. Want to go on a vacation? Then you may have to pay off the credit card first. Want to move somewhere else, you may have to deal with the equity on your home and owing on it if you bought it for more than you are selling it for.
So, how do you keep debt from becoming a problem in your life? How do you stop this ugly monster from rearing its ugly head in your life?
Here are five things you can do to eliminate debt and keep your life free and easy with finances.
1. Budget: You should try and budget as much as you can. Budget everything you spend money on and make sure you include all the money you make. You should try and cut costs with your budget as well. Look at the money you are bringing in and sending out and make the right decision. A budget is one of the most important things you can have at your disposal.
2. Pay off current debts. You should save money with your budget and then use that money to pay off your debts. The less you pay on debts, the more money you will have. You may think of paying off debts as money you will never see, but for every dollar you don’t pay in payments and interest, that is another dollar you now have at your disposal for other things.
3. Don’t use so much credit. Debt comes from credit and the more you use credit, then the more interest you pay and the more debt you have. So, instead of buying something you may not need on credit, just wait and buy it with cash. Do you need that new car, or that bigger house? If you really don’t then save your money and don’t bring that extra debt into your life.
4. Build savings. With all your spare money, begin building a savings. A savings is a great way to keep away from debt. Even if you don’t have any money on your credit card, but have no savings, you are in danger of debt. What happens if you have to pay $1,000 in car repairs? If you don’t have the money you have to use credit. That is now $1,000 you have in debt. However, if you have the money in savings, you can use that as your cushion and pay off the bill without using any credit.
5. Get insurance. Insurance is the best friend you have to keep debt from becoming a problem in your life in many ways. With insurance, if something happens you did not plan for, like an accident, injury, death or disability, you don’t have to worry about not being able to pay the bill or make the money you used to. Insurance is your safety net away from debt, so you should use it whenever you can.
Use these five tips and you can keep debt from becoming a major problem in your life.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Thursday, May 28, 2009
Tuesday, May 26, 2009
How do you cut back on expenses to pay debt?
Debt is something nearly everyone has to deal with from time to time. Often, debt can become so great that the only way out seems to be bankruptcy. For anyone, this is a very tough situation to be in. So, how can you keep yourself from falling into a debt spiral? There are several ways you can do this, but one of the best is to start cutting back on your expenses.
Cutting back on expenses is not always easy. It can be difficult to cut back on expenses you have become used to having. You may not want to cut back because it may seem to hard to get by without those expenses. It can be hard to go without some expenses, but it can be much harder to go without credit as you get older in life and to go through bankruptcy.
The first thing you need to do is make a list of all your expenses. Include everything in that list so that you can look and see all the expenses that you have. Then, make another list, based on the first list, of all the expenses that can be removed from your life. Do you really need cable television? Do you really need to have a latte each day? You can cut out these expenses and save hundreds if not thousands of dollars every single year by doing so. Make sure they are things you can cut out. You can’t cut out electricity so don’t try and remove those expenses.
Now, make a list of the expenses that you can’t get rid of but that you can cut back on. These will be easy expenses to find because they are expenses like electricity, water, gas, heat, food and more. You can’t get rid of these expenses but you can cut back on them. Look for ways to save money by using coupons for food, not using the heat as much, turning off lights, limiting water use and more.
Once you have made these lists, you will find that each month that goes by, it becomes easier and easier for you to keep those expenses out. Before long, you will enjoy cooking at home over going out to eat. You will enjoy reading or spending time with the family rather than watching television, and you will feel good about cutting back on energy use because it saves you money and helps the environment as well.
Cutting back on expenses is one of the most proactive things you can do to help yourself with debt. You can get rid of debt before it gets out of hand because you will be saving money. Saving money means less debt and more money that can be paid to your existing debt. It is a win-win situation and it is a situation that you should take advantage of if you want to save money and save yourself from getting into debt. Don’t let your expenses drag you down.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Cutting back on expenses is not always easy. It can be difficult to cut back on expenses you have become used to having. You may not want to cut back because it may seem to hard to get by without those expenses. It can be hard to go without some expenses, but it can be much harder to go without credit as you get older in life and to go through bankruptcy.
The first thing you need to do is make a list of all your expenses. Include everything in that list so that you can look and see all the expenses that you have. Then, make another list, based on the first list, of all the expenses that can be removed from your life. Do you really need cable television? Do you really need to have a latte each day? You can cut out these expenses and save hundreds if not thousands of dollars every single year by doing so. Make sure they are things you can cut out. You can’t cut out electricity so don’t try and remove those expenses.
Now, make a list of the expenses that you can’t get rid of but that you can cut back on. These will be easy expenses to find because they are expenses like electricity, water, gas, heat, food and more. You can’t get rid of these expenses but you can cut back on them. Look for ways to save money by using coupons for food, not using the heat as much, turning off lights, limiting water use and more.
Once you have made these lists, you will find that each month that goes by, it becomes easier and easier for you to keep those expenses out. Before long, you will enjoy cooking at home over going out to eat. You will enjoy reading or spending time with the family rather than watching television, and you will feel good about cutting back on energy use because it saves you money and helps the environment as well.
Cutting back on expenses is one of the most proactive things you can do to help yourself with debt. You can get rid of debt before it gets out of hand because you will be saving money. Saving money means less debt and more money that can be paid to your existing debt. It is a win-win situation and it is a situation that you should take advantage of if you want to save money and save yourself from getting into debt. Don’t let your expenses drag you down.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Thursday, May 14, 2009
Do you understand your credit card interest rates?
It is very important that as a credit card holder, you understand credit card interest rates. Credit card interest rates are not as simple as simply charging interest on your credit card purchases as in four percent on whatever you owe. It is a bit more complicated than that and the inability of many people to understand this is what leads them to getting deeper into debt. Credit card interest can add up quickly and create a vast amount of debt before you know what has happened.
Typical interest rates can vary immensely and often it depends on what the credit card loan is secured against. If the credit card is secured against a home, the interest can be as low as six percent. An average credit card interest rate is about 12 percent. That being said, depending on your credit history and the risk associated with giving you a credit card, you can have an interest rate as high as 36 percent, which means that you owe 1/3 of everything you buy on your credit card each month. If you spend $300 on your credit card, you pay $100 in interest that month. That is a lot of interest.
Credit card interest rates are usually expressed in terms of annual percentage rate, which is compounded daily or monthly. While it has the word ‘annual’ in it, it is not an interest rate that is paid over a stable balance during the course of a year. The interest is compounded over the course of a month to get a more accurate representation of money owed on interest. If you make a $100 purchase on your credit card and pay it off a week later, before the billing period is completed, you would not pay interest on that purchase if it was not for the APR. However, if it is charging APR so that it is a daily representation, the credit card company can collect interest on that purchase, even though you paid it off.
APR interest rates can be relatively low, but sometimes it can get as high as 29.99 percent for daily compounding and 34.48 percent for monthly compounding over 12 billing periods and 365 days.
Thankfully, there are laws in place to prevent you from paying excessive interest on your credit cards even if you have good credit. Usury laws limit the amount of interest that can be charged and keep the interest rates strictly regulated so that there is a system in place for the agreement of interest rates, the calculation of interest rates and the discloser of interest rates. The United States has relatively strict laws for usury, but some countries, especially in the Middle East, have laws against charging any interest.
Interest rates exist to provide money to credit card companies so they can loan you money. They want to make a profit and interest rates are how they do it. However, they can be a thorn in your side so if you want to keep yourself from falling behind on interest rates, understand them and you can protect yourself when you make your credit card purchases.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Typical interest rates can vary immensely and often it depends on what the credit card loan is secured against. If the credit card is secured against a home, the interest can be as low as six percent. An average credit card interest rate is about 12 percent. That being said, depending on your credit history and the risk associated with giving you a credit card, you can have an interest rate as high as 36 percent, which means that you owe 1/3 of everything you buy on your credit card each month. If you spend $300 on your credit card, you pay $100 in interest that month. That is a lot of interest.
Credit card interest rates are usually expressed in terms of annual percentage rate, which is compounded daily or monthly. While it has the word ‘annual’ in it, it is not an interest rate that is paid over a stable balance during the course of a year. The interest is compounded over the course of a month to get a more accurate representation of money owed on interest. If you make a $100 purchase on your credit card and pay it off a week later, before the billing period is completed, you would not pay interest on that purchase if it was not for the APR. However, if it is charging APR so that it is a daily representation, the credit card company can collect interest on that purchase, even though you paid it off.
APR interest rates can be relatively low, but sometimes it can get as high as 29.99 percent for daily compounding and 34.48 percent for monthly compounding over 12 billing periods and 365 days.
Thankfully, there are laws in place to prevent you from paying excessive interest on your credit cards even if you have good credit. Usury laws limit the amount of interest that can be charged and keep the interest rates strictly regulated so that there is a system in place for the agreement of interest rates, the calculation of interest rates and the discloser of interest rates. The United States has relatively strict laws for usury, but some countries, especially in the Middle East, have laws against charging any interest.
Interest rates exist to provide money to credit card companies so they can loan you money. They want to make a profit and interest rates are how they do it. However, they can be a thorn in your side so if you want to keep yourself from falling behind on interest rates, understand them and you can protect yourself when you make your credit card purchases.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Tuesday, May 12, 2009
Eliminate debt by having insurance.
The only thing that is certain about the future is its uncertainty. To quote another adage, we need to hope for the best but plan for the worst. Surprisingly, many people do not listen to this and end up falling deep into debt because of a lack of insurance.
Insurance is a safety net against debt, but strangely a lot of people do not look at it that way. They see insurance as something that you get in case of accident, without really understanding the point of it. If you are in a car accident, especially if it is your fault, you could end up paying thousands in repairs and possibly hundreds of thousands in a lawsuit. If you are injured and can no longer work, medical bills alone will bankrupt you and result in you falling deeply into debt. If you die, your family may go into debt in an attempt to pay off the debts you incurred in your life and if you get sick, medical bills can mount and increase your overall debt load as well.
If you have $20,000 saved up to protect yourself from debt, then good on you for doing that. However, if you have $20,000 saved up and no insurance of any kind, then you are just inviting disaster to your carefully saved money. One of the most common quotes from people without insurance is “It will never happen to me” Well the truth is that it can happen to anyone, anytime.
Christopher Reeve was most famous for playing Superman. He was in peak athletic shape, the prime of his life and then one day while riding a horse he fell and broke his neck, causing him to be paralyzed from the neck down for the rest of his life. If it can happen to Superman, it can happen to you. Insurance can’t stop you from getting hurt, it can’t stop you from dying but it can stop you from falling into deep debt because of an accident.
If you are young, then life and disability insurance are very cheap because there is a much smaller risk of death or injury in those who are young versus those who are near retirement. As well, if you are young there is a good chance you will pay more for your auto insurance because you have less experience, but you will pay less as the years go by without incident on your record.
No matter the cost and no matter your age, you need to get insurance. You need medical insurance, disability insurance, life insurance and auto insurance. On top of that, you should look at home insurance because the loss of your home can put you into debt as well.
If you want to keep out of debt and eliminate that worry from your mind, then get insurance and let the insurance handle the debt when it springs up and shoulder the worry so you do not have to.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Insurance is a safety net against debt, but strangely a lot of people do not look at it that way. They see insurance as something that you get in case of accident, without really understanding the point of it. If you are in a car accident, especially if it is your fault, you could end up paying thousands in repairs and possibly hundreds of thousands in a lawsuit. If you are injured and can no longer work, medical bills alone will bankrupt you and result in you falling deeply into debt. If you die, your family may go into debt in an attempt to pay off the debts you incurred in your life and if you get sick, medical bills can mount and increase your overall debt load as well.
If you have $20,000 saved up to protect yourself from debt, then good on you for doing that. However, if you have $20,000 saved up and no insurance of any kind, then you are just inviting disaster to your carefully saved money. One of the most common quotes from people without insurance is “It will never happen to me” Well the truth is that it can happen to anyone, anytime.
Christopher Reeve was most famous for playing Superman. He was in peak athletic shape, the prime of his life and then one day while riding a horse he fell and broke his neck, causing him to be paralyzed from the neck down for the rest of his life. If it can happen to Superman, it can happen to you. Insurance can’t stop you from getting hurt, it can’t stop you from dying but it can stop you from falling into deep debt because of an accident.
If you are young, then life and disability insurance are very cheap because there is a much smaller risk of death or injury in those who are young versus those who are near retirement. As well, if you are young there is a good chance you will pay more for your auto insurance because you have less experience, but you will pay less as the years go by without incident on your record.
No matter the cost and no matter your age, you need to get insurance. You need medical insurance, disability insurance, life insurance and auto insurance. On top of that, you should look at home insurance because the loss of your home can put you into debt as well.
If you want to keep out of debt and eliminate that worry from your mind, then get insurance and let the insurance handle the debt when it springs up and shoulder the worry so you do not have to.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
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