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Casual Articles - Debt Management Plans - Debt Survival
If you want to get a debt consolidation loan to repay credit card debt, and you own a home, should you get a new mortgage, or do a cash out refinance on your existing mortgage?Both are forms of debt consolidation; here is how they work.If you own a home with sufficient equity, you could get a new mortgage to pay off the old one. If your current mortgage is $100,000, and you need $50,000 to repay your credit card debts, you could get a new, $150,000 first mortgage. The first $100,000 goes to repay your existing mortgage, and the additional $50,000 goes towards your credit card debt. You end up with no credit card debt, and a $150,000 mortgage.In a debt consolidation loan through a cash out refinance deal, instead of getting a new consolidated first mortgage, you get a new second mortgage. Continuing our previous example, instead of getting a new $150,000 first mortgage, you keep your $100,000 mortgage and get a new second mortgage for $50,000. You are getting cash out of your house, which is why it is called cash out refinancing.Which is a better deal? The answer depends on a number of factors, including interest rates.If your current first mortgage is at a low interest rate, you probably want to keep it in place; borrow the extra money you need with a new second mortgage. However, if your first mortgage is at a higher in
4 - How much will your monthly payment be?
This is an important fact to know because it will affect your budget and you need to know if you will be able to manage the payment with all of your other necessary expenses. As with any expense, if you can't afford it, then you don't want to commit to it.
Can the Credit-Counseling Agency do what it says?
Like any major financial decision, you want to take some time to do research and think about it. Don't simply sign-up at the first meeting with a credit counselor; you may be in for a big surprise.
Here are some further issues you should research:
1 - Confirm concessions
Your Credit counseling agency should provide with a list of what they can do for you by creditor, such as interest rates, elimination of fees, etc. Check with your creditors to confirm that the credit-counseling agency can provide these concessions and whether there is a waiting period for them.
2 - Will your creditors be paid on time?
An important fact to remember is that all of the accounts with your creditors are still in your name and you are expected to pay by the due date. Talk to your credit counselor about when payments are made and confirm that this will coincide with the payment due dates for your creditors.<
The workplace has changed dramatically in the 21st century. Surprised? Of course not. You’ve been hearing terms like empowerment, cross-training, entrepreneurship, reengineering, and downsizing, and so on for quite some time. Like most people who have spent even a minimum amount of time in the workplace, you’ve probably experienced and lived through one or more of the actions listed above.But who is deciding how such actions affect you or your business? Believe it or not, most employees, managers, and business owners are still content to merely react to changes that impact them without really thinking about the long-term consequences. They are under the mistaken impression that the company, government, or someone else, will look out for them and their careers or business.But the workplace has changed dramatically: unless you become proactive and self-reliant in your career or business, you will at some point get a surprise, and it probably won’t be a pleasant one.Think back on the last few years of your work history. What have been the greatest changes and challenges? What has impacted your business or career the most? Have you received the raises, promotions, or profits you deserve? It is important to answer and take action on these questions to gain control of your destiny in the workplace.Begin by taking a hard look at where you began in your caree
In a Debt Management Plan essentially your credit counseling organization takes over the managing of most of your unsecured debts. They directly interact with your creditors in order to negotiate lower interest rates, eliminate fees, prioritize debt payments and arrange what you will pay. The credit counseling agency may be able to help manage most unsecured debts.
Before your sign up for a Debt Management Plan
Before signing up for any Debt Management Plan, you want to take some steps to do research and prepare yourself. The more prepared and informed you are, the better you will understand the process and options that are available to you even before discussing the situation with your credit counselor.
1 - Talk to your creditors yourself
The fact is, many negotiations between a creditor and a credit counselor can be done by you. Before I went to see a credit counselor, I negotiated lower interest rates on all my credit cards, so low, in fact, that even the credit counselor couldn't do better. You also want to have a long chat with your creditors about what other concessions they might be willing to make for you and for the credit-counseling agency you're considering. Creditors want their money and it may be the case that you can negotiate a better arrangement because you know your situation best. As my own situation got worse for numerous reasons, I negotiated with my creditors a second time and was quite surprised that they were willing to eliminate the late fees and arrange a workable payment plan with me.
The benefit of a Debt Management Plan is that all the negotiations are done for you; you simply make one monthly payment to the credit-counseling agency after you sign-up and they pay your creditors; and they may be able to provide a timeline for getting out of debt, which is really what the goal is. In going this route, you may have to agree not to use or apply for credit while participating in the Debt Management Plan.
2 - Find a reputable credit-counseling agency
Finding a reputable credit-counseling agency means research. Many of us have had trouble with debt at one point in our lives, so ask around and see if anyone has had success with a particular agency. Also, if you think you have found one, check with the Better Business Bureau, check online to see if this agency is reputable. Another option would be to, again, talk with your creditors and see if they work with that company. For me it turned out that the agency I chose didn't work with two of the creditors that I owed the most to.
3 - Work out a budget
Before making any financial decision, one of the first and most necessary steps is to figure out just how much money you have coming in, how much is going out, how much of your spending is necessary and how much isn't. Deciding how much money you have coming in is easy, just look at your pay stubs - printed or otherwise.
Deciding how much you have going out is not always that easy and it's important to be honest and calculate everything. First, you need to gather your bills and your receipts for all expenses, necessary and unnecessary. Add everything up to get an idea about how much your spending. Second, list your expenses by necessary and unnecessary; and, no, that $9 movie is not necessary. I was even told by a credit counselor that spending $50 a week on food was too much and that only $20 was necessary. Of course, I was thinking, 'what world are you living in?'. While difficult to do sometimes, you will need to make a decision about what expenses you can eliminate. When you have made these decisions, you will then be able to see your financial situation for the future a little better and be better able to discuss your options with your credit counselor.
Is a Debt Management Plan Right For You?
One thing to remember is that not everyone is eligible for a Debt Management Plan. My own negotiations were so good that the credit-counseling agency could do no better, and in fact the interest rates I was paying were half what the credit-counseling agency could get. You also might be so far in debt and simply not making enough money to afford any but the most essential living expenses and have nothing left over to pay creditors. There are other decisions to be made, though, before deciding to participate in a Debt Management Plan.
Here's what you should cover with your credit counselor beforehand:
1 - Options besides a Debt Management Plan
Everyone needs options and it's always good to have a few. Before you sign-up for a Debt Management Plan, you should know what they are.
2 - Other Credit-Counseling services
Check to see if the credit-counseling agency also provides other money management services, such as help with budgeting. Sometimes our debt is simply due to the inability to budget and manage money well. Education on money management issues can go a long way in preventing further problems with debt.
3 - Impact on your Credit Score
There are some conflicting stories about what happens to your credit score when you sign-up for a Debt Management Plan. When I talked with a credit-counselor, I was told it would not impact my credit score. However, after talking with my creditors, I was told that it would reflect negatively on my report. I was more inclined to believe the creditors because they are, in fact, the ones who report on my payment history, length of history, etc. You don't want anything negative on your report, so find out from both your creditors and your credit-counselor how it might affect it. While you may not be able to avoid having negative entries on your credit report, you should try to minimize the damage as much as possible.
4 - How much will your monthly payment be?
This is an important fact to know because it will affect your budget and you need to know if you will be able to manage the payment with all of your other necessary expenses. As with any expense, if you can't afford it, then you don't want to commit to it.
Can the Credit-Counseling Agency do what it says?
Like any major financial decision, you want to take some time to do research and think about it. Don't simply sign-up at the first meeting with a credit counselor; you may be in for a big surprise.
Here are some further issues you should research:
1 - Confirm concessions
Your Credit counseling agency should provide with a list of what they can do for you by creditor, such as interest rates, elimination of fees, etc. Check with your creditors to confirm that the credit-counseling agency can provide these concessions and whether there is a waiting period for them.
2 - Will your creditors be paid on time?
An important fact to remember is that all of the accounts with your creditors are still in your name and you are expected to pay by the due date. Talk to your credit counselor about when payments are made and confirm that this will coincide with the payment due dates for your creditors. The Gift of Gratitude
Gratitude might seem like a soft or even an obvious subject to you. Perhaps you would rather read about a leadership lesson or a marketing approach or even a motivational technique. If that is what you are thinking, I urge you to read on. I don’t think you will be disappointed.From the time we are little kids we are taught to say thank you. It is one of the first things we learn. We are taught to say thank you because our parents know that showing that simple appreciation is polite behavior and because it is the right thing to do. This lesson is one of the most valuable we learn from our parents – one that we should definitely be thankful for.WarningThere are many ways that we can and should show our gratitude as adults in a business or professional setting. I will share several of them with you, and they will be very valuable to you, if they are used with the right spirit and attitude. Approach them from an authentic attitude and you will reap more than you sow. Consider them as techniques or ploys and you risk being seen as insincere or manipulative.Some IdeasGiven that caveat, here are some tangible ways to show your gratitude to others in a business or professional setting.• Say Thank You. Simple as that. When people do things for you or that you appreciate, say thanks. In person or on the phone, always say it when you ca
The benefit of a Debt Management Plan is that all the negotiations are done for you; you simply make one monthly payment to the credit-counseling agency after you sign-up and they pay your creditors; and they may be able to provide a timeline for getting out of debt, which is really what the goal is. In going this route, you may have to agree not to use or apply for credit while participating in the Debt Management Plan.
2 - Find a reputable credit-counseling agency
Finding a reputable credit-counseling agency means research. Many of us have had trouble with debt at one point in our lives, so ask around and see if anyone has had success with a particular agency. Also, if you think you have found one, check with the Better Business Bureau, check online to see if this agency is reputable. Another option would be to, again, talk with your creditors and see if they work with that company. For me it turned out that the agency I chose didn't work with two of the creditors that I owed the most to.
3 - Work out a budget
Before making any financial decision, one of the first and most necessary steps is to figure out just how much money you have coming in, how much is going out, how much of your spending is necessary and how much isn't. Deciding how much money you have coming in is easy, just look at your pay stubs - printed or otherwise.
Deciding how much you have going out is not always that easy and it's important to be honest and calculate everything. First, you need to gather your bills and your receipts for all expenses, necessary and unnecessary. Add everything up to get an idea about how much your spending. Second, list your expenses by necessary and unnecessary; and, no, that $9 movie is not necessary. I was even told by a credit counselor that spending $50 a week on food was too much and that only $20 was necessary. Of course, I was thinking, 'what world are you living in?'. While difficult to do sometimes, you will need to make a decision about what expenses you can eliminate. When you have made these decisions, you will then be able to see your financial situation for the future a little better and be better able to discuss your options with your credit counselor.
Is a Debt Management Plan Right For You?
One thing to remember is that not everyone is eligible for a Debt Management Plan. My own negotiations were so good that the credit-counseling agency could do no better, and in fact the interest rates I was paying were half what the credit-counseling agency could get. You also might be so far in debt and simply not making enough money to afford any but the most essential living expenses and have nothing left over to pay creditors. There are other decisions to be made, though, before deciding to participate in a Debt Management Plan.
Here's what you should cover with your credit counselor beforehand:
1 - Options besides a Debt Management Plan
Everyone needs options and it's always good to have a few. Before you sign-up for a Debt Management Plan, you should know what they are.
2 - Other Credit-Counseling services
Check to see if the credit-counseling agency also provides other money management services, such as help with budgeting. Sometimes our debt is simply due to the inability to budget and manage money well. Education on money management issues can go a long way in preventing further problems with debt.
3 - Impact on your Credit Score
There are some conflicting stories about what happens to your credit score when you sign-up for a Debt Management Plan. When I talked with a credit-counselor, I was told it would not impact my credit score. However, after talking with my creditors, I was told that it would reflect negatively on my report. I was more inclined to believe the creditors because they are, in fact, the ones who report on my payment history, length of history, etc. You don't want anything negative on your report, so find out from both your creditors and your credit-counselor how it might affect it. While you may not be able to avoid having negative entries on your credit report, you should try to minimize the damage as much as possible.
4 - How much will your monthly payment be?
This is an important fact to know because it will affect your budget and you need to know if you will be able to manage the payment with all of your other necessary expenses. As with any expense, if you can't afford it, then you don't want to commit to it.
Can the Credit-Counseling Agency do what it says?
Like any major financial decision, you want to take some time to do research and think about it. Don't simply sign-up at the first meeting with a credit counselor; you may be in for a big surprise.
Here are some further issues you should research:
1 - Confirm concessions
Your Credit counseling agency should provide with a list of what they can do for you by creditor, such as interest rates, elimination of fees, etc. Check with your creditors to confirm that the credit-counseling agency can provide these concessions and whether there is a waiting period for them.
2 - Will your creditors be paid on time?
An important fact to remember is that all of the accounts with your creditors are still in your name and you are expected to pay by the due date. Talk to your credit counselor about when payments are made and confirm that this will coincide with the payment due dates for your creditors.<
Instilling urgency in a prospective customer can make the difference between achieving a sale and losing it altogether. If your prospects cannot vividly see personal benefits from taking action, there will never be the sense of urgency needed to follow your suggestions.Closing is the logical conclusion of a demonstration of your products and services. Make certain that you ask enough open-ended questions to know for certain that you are applying the correct solutions to the exact problems and needs you have uncovered from your questioning. Through this process, the answers to your questions should give you all the levers you need to create a sense of urgency in your prospects.Urgency can also be created when prospects can take advantage of special pricing on packages or bundles of products for a limited period. Make certain that all special offers or time constraints are pointed out to your prospects so that they can feel the need or urgency of making a decision today. If service charges will be increased or interest rates will change soon, use this information to set the stage for a positive and timely buying decision.You can also create urgency by asking your prospects how much it will cost them not to take action today. If a suggested product will help them make money or avoid losing money, show them exactly what it will cost them to leave this problem un
3 - Work out a budget
Before making any financial decision, one of the first and most necessary steps is to figure out just how much money you have coming in, how much is going out, how much of your spending is necessary and how much isn't. Deciding how much money you have coming in is easy, just look at your pay stubs - printed or otherwise.
Deciding how much you have going out is not always that easy and it's important to be honest and calculate everything. First, you need to gather your bills and your receipts for all expenses, necessary and unnecessary. Add everything up to get an idea about how much your spending. Second, list your expenses by necessary and unnecessary; and, no, that $9 movie is not necessary. I was even told by a credit counselor that spending $50 a week on food was too much and that only $20 was necessary. Of course, I was thinking, 'what world are you living in?'. While difficult to do sometimes, you will need to make a decision about what expenses you can eliminate. When you have made these decisions, you will then be able to see your financial situation for the future a little better and be better able to discuss your options with your credit counselor.
Is a Debt Management Plan Right For You?
One thing to remember is that not everyone is eligible for a Debt Management Plan. My own negotiations were so good that the credit-counseling agency could do no better, and in fact the interest rates I was paying were half what the credit-counseling agency could get. You also might be so far in debt and simply not making enough money to afford any but the most essential living expenses and have nothing left over to pay creditors. There are other decisions to be made, though, before deciding to participate in a Debt Management Plan.
Here's what you should cover with your credit counselor beforehand:
1 - Options besides a Debt Management Plan
Everyone needs options and it's always good to have a few. Before you sign-up for a Debt Management Plan, you should know what they are.
2 - Other Credit-Counseling services
Check to see if the credit-counseling agency also provides other money management services, such as help with budgeting. Sometimes our debt is simply due to the inability to budget and manage money well. Education on money management issues can go a long way in preventing further problems with debt.
3 - Impact on your Credit Score
There are some conflicting stories about what happens to your credit score when you sign-up for a Debt Management Plan. When I talked with a credit-counselor, I was told it would not impact my credit score. However, after talking with my creditors, I was told that it would reflect negatively on my report. I was more inclined to believe the creditors because they are, in fact, the ones who report on my payment history, length of history, etc. You don't want anything negative on your report, so find out from both your creditors and your credit-counselor how it might affect it. While you may not be able to avoid having negative entries on your credit report, you should try to minimize the damage as much as possible.
4 - How much will your monthly payment be?
This is an important fact to know because it will affect your budget and you need to know if you will be able to manage the payment with all of your other necessary expenses. As with any expense, if you can't afford it, then you don't want to commit to it.
Can the Credit-Counseling Agency do what it says?
Like any major financial decision, you want to take some time to do research and think about it. Don't simply sign-up at the first meeting with a credit counselor; you may be in for a big surprise.
Here are some further issues you should research:
1 - Confirm concessions
Your Credit counseling agency should provide with a list of what they can do for you by creditor, such as interest rates, elimination of fees, etc. Check with your creditors to confirm that the credit-counseling agency can provide these concessions and whether there is a waiting period for them.
2 - Will your creditors be paid on time?
An important fact to remember is that all of the accounts with your creditors are still in your name and you are expected to pay by the due date. Talk to your credit counselor about when payments are made and confirm that this will coincide with the payment due dates for your creditors.<
Isn’t it time for you to accept Master Card credit card payments? Think of all the places where you shop and how you, as well as other customers, generally pay for things. Isn’t it true that a majority of transactions are made with plastic credit cards? If you do not provide this payment option to your customers, they just may find another vendor who will. E-commerce has advanced into the 21st century. If you don’t hurry up, you could be left behind and lose the support of clients who are keeping pace with the technological movement.Why should you accept MasterCard credit card payments? Because customers expect it. The average consumer owns four credit cards and carries a monthly balance of over $1,000. People enjoy the convenience of paying for gasoline at the pump rather than going inside. They want to pull out a card in the fast food drive-through instead of rooting in their wallets for the correct bills and change. No one enjoys paying monthly ATM user fees or stopping by the bank to withdraw cash before going shopping. It is much easier for most of us to pay with plastic and then write a check for the monthly account statement. As more businesses adopt this payment method for a variety of products and services, you may find that you will lose customers to vendors who provide this service, thereby depleting your client base and shriveling your revenues.Failing
Here's what you should cover with your credit counselor beforehand:
1 - Options besides a Debt Management Plan
Everyone needs options and it's always good to have a few. Before you sign-up for a Debt Management Plan, you should know what they are.
2 - Other Credit-Counseling services
Check to see if the credit-counseling agency also provides other money management services, such as help with budgeting. Sometimes our debt is simply due to the inability to budget and manage money well. Education on money management issues can go a long way in preventing further problems with debt.
3 - Impact on your Credit Score
There are some conflicting stories about what happens to your credit score when you sign-up for a Debt Management Plan. When I talked with a credit-counselor, I was told it would not impact my credit score. However, after talking with my creditors, I was told that it would reflect negatively on my report. I was more inclined to believe the creditors because they are, in fact, the ones who report on my payment history, length of history, etc. You don't want anything negative on your report, so find out from both your creditors and your credit-counselor how it might affect it. While you may not be able to avoid having negative entries on your credit report, you should try to minimize the damage as much as possible.
4 - How much will your monthly payment be?
This is an important fact to know because it will affect your budget and you need to know if you will be able to manage the payment with all of your other necessary expenses. As with any expense, if you can't afford it, then you don't want to commit to it.
Can the Credit-Counseling Agency do what it says?
Like any major financial decision, you want to take some time to do research and think about it. Don't simply sign-up at the first meeting with a credit counselor; you may be in for a big surprise.
Here are some further issues you should research:
1 - Confirm concessions
Your Credit counseling agency should provide with a list of what they can do for you by creditor, such as interest rates, elimination of fees, etc. Check with your creditors to confirm that the credit-counseling agency can provide these concessions and whether there is a waiting period for them.
2 - Will your creditors be paid on time?
An important fact to remember is that all of the accounts with your creditors are still in your name and you are expected to pay by the due date. Talk to your credit counselor about when payments are made and confirm that this will coincide with the payment due dates for your creditors.<
re you considering an online store? There are hundreds of ecommerce programs available and choosing one can seem overwhelming. Use this checklist to help you select the right one the first time.It helps considerably to know what you need. This checklist is designed to help you identify the top 10 things you'll need to efficiently run your store:1. Will you be shipping physical products? If so, you'll want to use a shopping cart that can accurately estimate shipping charges. Some can connect with UPS, DHL, FedEx, and the post office to get real time shipping quotes.2. Will you be selling downloadable products like programs, e-books, etc? If so, you'll want a shopping cart that can securely deliver your electronic file without compromising security. Be sure the download link limits the number of times the file can be downloaded and make sure the download link expires. You don't want your products to be downloaded without payment.3. Will you offer an affiliate program? If you expect to offer an affiliate program (which is a great way to build an army of salespeople for free), it's important you use and affiliate program that can be used universally regardless of the shopping cart in use. If you ever change shopping carts in the future you don't want to scrap the affiliate system, too.4. Will you have multiple pricing structures? Many sites offer d
4 - How much will your monthly payment be?
This is an important fact to know because it will affect your budget and you need to know if you will be able to manage the payment with all of your other necessary expenses. As with any expense, if you can't afford it, then you don't want to commit to it.
Can the Credit-Counseling Agency do what it says?
Like any major financial decision, you want to take some time to do research and think about it. Don't simply sign-up at the first meeting with a credit counselor; you may be in for a big surprise.
Here are some further issues you should research:
1 - Confirm concessions
Your Credit counseling agency should provide with a list of what they can do for you by creditor, such as interest rates, elimination of fees, etc. Check with your creditors to confirm that the credit-counseling agency can provide these concessions and whether there is a waiting period for them.
2 - Will your creditors be paid on time?
An important fact to remember is that all of the accounts with your creditors are still in your name and you are expected to pay by the due date. Talk to your credit counselor about when payments are made and confirm that this will coincide with the payment due dates for your creditors.
3 - How do you get account information?
As with any account you open, you need to have a way on checking that status of that account. Find out whether this is possible and how it can be checked - email, phone, etc. Also, find out how often it can be checked and what types of information will be provided. If this service isn't available, you need to find a different agency. Regardless of the service, it's your money and you should know how it's being spent.
After you sign-up for a Debt Management Plan
Debt management is not a passive process. This is your life and your financial situation. You need to be an active part of the solution. A Debt Management Plan only helps you manage your financial obligations to your creditors better. Your active participation can only help you in the long run and will ensure that your financial situation improves for the future. It may also provide a little peace of mind since you will be able to your debt diminishing and continue to monitor whether your credit-counseling agency and Debt Management Plan is doing what it should be doing - eliminating your debt. Active participation means you need to keep in contact with your creditors.
Here are some ways to be active:
1 - When does your Debt Management Plan start?
This is important to know because you want to continue paying your bills until it goes into effect. Your credit rating is affected by your payment history and your goal should be to avoid any negative reports, whether you've had them yet or not. It would be a shame to start a Debt Management Plan to avoid negative reports, only to get them anyway.
2 - Has your Debt Management Plan been accepted?
Your Debt Management Plan only works if your creditors accept the proposed plan. If it hasn't been accepted, then you should contact your credit-counseling agency again before sending them payments.
3 - Is your Debt Management Plan paying the bills?
Check your monthly statements and call your creditors monthly to confirm timely payment, interest rates, elimination of fees, etc. Again, it doesn't do any good to sign-up for a plan only to have it fail in what you've been told it would do and how it would do it.
Since a Debt Management Plan is just a step away from, if a Debt Management Plan isn't going to work for you, you might want to consider bankruptcy. This was the only option given to me by my credit counselor, but I didn't want to consider it. Unfortunately, I could have saved myself a lot of grief by accepting what inevitably did happen years sooner. However, this option should be discussed with a credit-counselor if indeed this is the only option they give you. Regardless of what you decide to do, remember that financial issues can be very emotional, and overwhelming debt is stressful and can have other consequences besides the obvious financial consequences. Also, think about how the financial issues affect those around you; your family, your friends. Talk things over with those who are directly affected. Sometimes a little discussion goes a long way in helping to solve the problem and relieve some of the emotion strain. Lastly, the sooner you seek help, the sooner the emotional strain can be relieved and you can get on with the rest of your life.
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