Crosby Finance

If you’re in debt, you know how it feels to want to hide each time the phone rings. You know how frustrating it is to speak with creditors who only want money that you just don’t have and you know what it’s like to dread getting your mail. Opening more bills and letters from creditors is very difficult when you just can’t do anything about it. Luckily, there are some things you can do for debt. Here are some debt relief tips that will help you when you are in need.

Get Rid of the Credit Cards -

Do not use credit cards. For those who are already having debt troubles, credit cards are like a noose just tempting you to hang yourself. Get rid of them. If they’re not paid off, take each bill from the highest interest rate to the lowest and pay as much as you can, with the bulk of the payment going to the highest interest rate card. So, pay as much as you can on that bill and pay the minimum on the others until the first is paid off. Then, continue down the line. Cut the cards in half if you must - just get rid of them. This is your first step to being debt free.

Pay with Cash -

When you pay for things with cash, you know what you have and it’s easy to see what’s left. When you use a check or a debit card or even a credit card, your spending could add up very quickly and leave you with a mountain of bills that you can’t afford to pay. As a rule of thumb, only pay for things when you have the cash with you to pay. This way, you are able to closely monitor what you have left and what you’re working with. It helps keep you from overspending and causing overdraft charges and other bills.

Seek Grants or Gifts -

Each year the government sets aside millions of dollars to be given away in grants to those who need financial help. Debt relief is one of the many reasons for applying for a grant. Apply for debt relief grants or ask to receive gifts from those that are close to you in order to help you overcome your debt situation. You can apply for a grant for free and you don’t have to pay the money back at all. You’ll have to include the amount of money you need as well as what you will use it for.

These are just a few of the options you have when you feel as if you’re drowning in debt. Don’t forget that you’re certainly not alone - millions of Americans are in debt and you are also not helpless. Use the options above to overcome your debt.

A month ago I wrote about Americans who, despite carrying an average household debt of $8,500, continue to spend, spend, spend and rack up further debt. It’s apparent–at least to me–that we have no problem spending money, even if it’s money we don’t have.

With that post in mind, do you recall recently getting a letter from the IRS informing you about the new “economic stimulus plan” and the resulting $600 (single) to $1,200 (married filing jointly) check that will soon be coming your way? Clearly the way out of the economic toilet this country is in–which, by the way, is a direct bi-product of Americans spending more money than they actually have–is to encourage people to spend MORE money.

God forbid the IRS send a letter saying that the reason the country is perched on the edge of a recession is because you people don’t know handle your money so we’re going to send you $600 and you’re to put it towards any credit card debt you have or, if you don’t have any debt, deposit it immediately in your savings account.

No, instead our fearless leader tells us that if we go spend this money it will “boost our economy and encourage job creation.” Uh, yeah. For many American families it will play out like this:

“How are we ever going to pay off this $25,000 of credit card debt?”

“Hey–a check for $1,200 just magically showed up in the mailbox. Let’s go buy a new TV! And everyone knows you can’t get a good TV for less than $2,500 so let’s just put it on the credit card and go do something fun with the $1,200.”

The government knows that if they give people any length of rope at all, many of them will use it to further hang themselves financially. What a masterful plan: using consumers as pawns to “stimulate” the economy by saddling themselves with more debt–and acting like you’re granting them a great favor in the bargain.

Oh, and how about the irony of the whole thing: this generous government subsidy comes at a time when Federal budget deficit is already up more than 60% over last year–$263.3 BILLION as of March 12, 2008.

Hey–it’s only money.

Research has found that British pensioners have a combined debt of £57bn and many still have mortgages to pay off as they are entering retirement.

A leading pension provider has said that there are a total of 1.1 million retired homeowners who are still making monthly mortgage payments, with the average debt being £38,000.

One in eight people in retirement have a debt of more than £50,000 that they owe on their mortgage and the average unsecured debt owed by pensioners is £5,900.

Another factor that is not helping the level of debts that pensioners are facing is the fact that some also have financially dependant children, around one in 12 of those questioned said that they were still paying out for their offspring.

The research also looked at people who hadn’t yet reached retirement and found that many still had a long way to go before they were to have cleared their mortgage debt.

The pension provider said that their research had shown that 42% of 50-59-year-olds still had their mortgage to pay off, with the average debt being £54,300. Among the 60-64-year-olds, 25% had an average mortgage debt of £42,800.

With this unfortunate trend of taking your mortgage into retirement with you, and the average pensioner income currently standing at £22,900, people are being advised to organise their debts in order to prepare for later life. If people were to still have concerns over their money, it would perhaps be advisable to get debt management advice from an expert.

The pension’s provider said that part of the reason why people still owed money on their mortgage into their retirement was a direct effect from them having to wait to get on to the property ladder, meaning that they start paying off their mortgage a lot later on in life.

A government spokesperson said that the government recognises the importance of making people more financially secure, which is why they have set out a long-term strategy to help consumers manage their finances with greater confidence.

The Fair Debt Collection Practices Act was passed in 1978 as part of the Consumer Credit Protection Act. FDCPA sets out specific things that debt collectors may and may not do when attempting to collect debts from consumers. The Act has several main points that you should know, especially if you are getting telephone calls from debt collectors.

Who the Law Affects

The FDCPA specifically affects “third party collectors” - people and companies who are in the business of collecting debts that were originally owed to other people. In other words, if your credit card company contacts you regarding a debt you owe to them, the federal law may not apply to them - though there may be state laws that do apply to “original creditors”. If your credit card company hands your account over to a collection agency, though, this law does apply to the collection agency.

Your Rights Under the FDCPA

The FDCPA lays out rules about fair debt collection practices. It states when debt collectors may call you, with whom they may speak, what they may say to you and to others and what they must and must not do when contacting you. It also gives you the right to demand that they cease contacting you and that they provide you with proof that you owe the money they are trying to collect and that they are entitled to collect it. Finally, the FDCPA gives you the right to sue if a debt collector violates any of the points laid out in the law. If you prove that they violated the law, you are entitled to damages and up to $1,000.

What Debt Collectors Must Do

Debt collectors must:

- tell you their names and state that they are attempting to collect a debt every time they contact you in any way. They must also inform you that anything you say will be used in their attempt to collect the debt.

- Inform you within five days of their first contact with you of your right to validate your debt

- Provide you with validation of your debt if you request it in writing within 30 days of being notified of your right to validation

- Inform you of any legal actions that they intend as required by law

- Stop contacting you if you inform them in writing that you wish them to cease all communication. Once you have requested that they cease communication, they may only contact you to tell you they are ceasing their collection attempts, or to inform you of legal actions as required by law.

What Debt Collectors May Not Do

Under FDCPA, debt collectors may not:

• threaten you with physical harm
• threaten you with jail
• threaten you with court action that they do not intend to take
• use abusive language when speaking to you
• lie about who they are (for instance, saying that they’re lawyers or that they’re officers of the court if they’re not)
• talk to anyone but you or your spouse about your debt
• publish your name on a bad debts list
• call you at work after you tell them not to do so
• call you before 8 AM or after 9 PM your time
• call you repeatedly and harass you about your debt
• contact you after you inform them in writing that you wish them to cease all communication
• contact you directly after you inform them that you are represented by a lawyer

You Have the Right To:

• tell debt collectors not to call you at work
• tell debt collectors not to communicate with you
• demand proof that you owe the money they are trying to collect
• demand proof that they are legally entitled to collect the debt
• be free of harassment, threats or abuse
• sue in court if a debt collector violates any of the points of the FDCBA

If you ever need to find the address of a bill collector and only have their phone number, you can with this free cell phone lookup resource.

A person into too much debt may not be able to assess his debt-depth. It is always suggested that if you are facing problems with debts, you should consult a debt counseling service.

B<>What Is Debt Counseling?

Professional debt counselors understand your personal finances, identify your financial goals as well as structure your budgets to help achieve them.

If you are facing a bad debt situation or are under too many debts, then such services become a necessity. In such a case, the counselor will negotiate with your creditors about going forward with your outstanding debt or may advice you to consolidate your debts.

For all this help, counselors generally charge a fee from you. However, there are some agencies that provide free debt counseling too.

Benefits Of Debt Counseling

A counselor is a financial expert and is definitely in a position to understand your financial situation better than you. He can give you valuable inputs on handling your increasing credit card debt or develop strategies to successfully manage your household budget.

Once your counselor understands your financial position and goals, he will provide you with tools to realize these. He may give you variety of options and plans, and you can choose the one that best suits you. He also prepares a specific budget for you showing the in-flow and out-flows of your finances. Such services facilitate you to manage your finances and improve your spending habits in such a way that you need not face a bad money situation again.

Who Provides Counseling?

There are many independent debt counseling services, which are affiliated to some national associations. The best consolidation loan providers also offer credit-counseling services as a part of their quote to you.

One of the easiest way to spot them from home is to search on the Internet. There are scores of online debt help services to help you out in your bad time.

But always be sure to get a proper service before making any payments to any such institution.

Watch-Out

There are hundreds of debt counseling services out there, but not all of them are efficient or true. You should watch out for some traits before finalizing on one:

• Make sure that the agency would refund your fees, if you are not satisfied with their services.
• Check for their accreditation with some known customer help association.
• Find out about their success history.
• Make sure that your counselor is familiar with the legal issues associated with debts
• Ask about the duration of the program
• They should be able to provide you several options to choose from.

Debt consolidation loan is a loan that people take to pay off their other existing debts. With the help of debt consolidation loans, the amount owed can be transferred into one monthly manageable payment. It will help in lowering the rate of interest and will also reduce your monthly outgoings.

There are two types of debt consolidation loans - secured or unsecured. A secured loan uses something of significant value as collateral such as your car or house. In most cases it is your home. Until and unless the loan repayment is not fully made by you, the creditor holds the right of your possessions and once the payment is fully done, the right of possession comes back to you. Secured loans have a lower interest rate and are usually opted in cases where larger amounts are borrowed.

If you have a relatively good credit score then you may be able to obtain an unsecured loan. Unsecured loans can be used to get rid off higher interest debts, such as your credit card debt. An unsecured loan is not secured against ay asset hence it comes with higher interest rates. People usually go for it when they borrow smaller amounts

Whether it is secured or unsecured, the debt consolidation loans that you can avail will depend on your credit score. People who have a poor credit can still opt for debt consolidation loans. But, they have to regularly make payments on time and in full because one late payment can bump down their score.

Free debt consolidation service is an option that most people would like to consider, keeping in mind that it is without charge. Free service is not literally at no cost, but they are definitely cheaper than most others are. This is an option, which has a flat charge or it is subsidized by the creditors, and hence, an option ideal for people with poor credit and bad loan performance.

With today’s economy, we are all arrears’ ridden and are paying loans, credit card repayments, store cards etc. This sometimes becomes a nightmare. A consolidation loan is something that most would move to, as this not only merges all existing loans, as the name suggests, but also helps to lower the rate of interest and monthly installments.

This is a solution for people to avoid bankruptcy and make all payments through one central agency with only one single monthly installment. Today, there are many companies offering debt consolidation and some even offer it complimentary. Requesting the help of free consolidation services for debt is a win-win situation for all and perfect for all loan conditions.

These services though one must understand may not be exactly without charge, but will carry a lot less baggage by the way of lower rates of interest, charges etc.

How They Work:

• These are usually non-profit organizations and hence have a flat charge every month, as against a percentage of loan amounts in most cases, which could be as high as even 15%.
• The creditors to ensure quick and early repayments subsidize the services of these companies. This benefit is passed on the debtors, thus making it nearly without cost.

Who Can Go For Consolidation Of Your Debts?

• Anyone, who has more than one loan or credit statement for various things,
• Loan repayment is becoming difficult and so is managing the schedule of cheques, bills etc.

Some familiar situations that one can use as basis for checking whether you are in need for consolidation are:

• Things that usually are on cash are purchased against credit, like daily supplies, vegetables, medicines etc.
• Your mails/e-mails/voicemail etc., are full of reminders.
• The payments for some current bills are deferred to make payments for earlier ones.
• Before the end of the month, you are borrowing more to make both ends meet.

Free consolidation services for debt not only provide liability consolidation, but also help in counseling and educating people for future situations. Many of these free organizations are state backed non-profit voluntary organizations. It is generally seen that, the for-profit consolidation service providers would rather have clients with good credit rating and payment performance, as their loans are better secured. This makes free services a perfect option for the low credit performers.

There are many advantages to this, as not only do they get complimentary counseling, but also avail lower charges for loans that would not be the case with for-profit companies.

While the advantages do exist, one needs to be wary of fraudulent companies. A lot of them misuse the term ‘free’ and take undue advantages of bankrupt customers. They have hidden costs or are aggressive in their approach so as to insist on loans as the only option.

You have quite a few opting for free Christian debt consolidation companies, as they feel morally and spiritually supported. These companies are basically a fusion of religion/beliefs with debit consolidation. The atmosphere is also more relaxed. It is important to remember that, schemers exist in all walks of life and just because a religion is attached to a company, its honesty and integrity is not assured.

The thumb rule is that, a thorough investigation is necessary before signing up with any consolidation service for your debts.

Student debt consolidation is an easy way out for students and their parents, who are at a loss with documents and repayment dates every month, thanks to the multiple advances taken for education. Many types of advance loans are available for their education. Broadly speaking, student credit is of two types: Federal Loans and Private Loans. If you are not very sure about the system of Federal loan consolidation, let us get a quick overview here.

Federal Loans

Federal loans are those advances that are sanctioned by the U.S. education authorities and eligible students can easily avail these forms of finance. Again, these are of many types. Some of the more popular ones that can be included in student debt consolidation are as follows:

• Federal Perkins Loans
• Stafford Loans
• PLUS Loans

Many advantages are associated with the Federal form of credit. The main advantage being that these advances come with the US Government guarantee or reliability. Secondly, this credit is exempted from tax, thereby giving the students the benefit of increased cash in hand. Finally, these advances provide the students the facility of deferred payments, incase they choose to become students again. In the worst-case scenario, if the applicant cannot repay the credit due to unemployment or serious illness, Federal advances “might” be excused.

Private Loans

These are all advances that are not taken from the US Government education authorities. They can be taken from a private bank, a friend or relative.

Points To Remember About Federal Loan Consolidation

Federal and private loans cannot be merged. Try to consolidate the former into one program and all the latter into another. Federal loan consolidation, as the name suggests, is for federal loans only. However, not every federal mortgage taken is eligible for consolidation! Firstly, the borrower must be out of school or college when he is going in for these loans. Secondly, the federal advance repayment, which is to be consolidated, must have started or be in its grace period. Finally, an important point is that the consolidated amount should be above $10,000.

Advantages

When you decide to consolidate, you are merging multiple advances into one. Therefore, you will have just one advance under your name and no longer do you have to keep a track of multiple due dates and the exact installment amounts. Since you have just one advance to think of, there are less chances of missing installments and your credit ratings going awry. The main essence this program is that the consolidated monthly installment is considerably lesser than that what the students would have paid without consolidating. In some cases, undergraduates can save up to 40%! Look for federal mortgage consolidation programs that do not check the borrower’s credit ratings. The scholar or his parents, whoever is responsible for repaying, can stretch the repayment over a period of 30 years! Finally, student debt consolidation is a serious matter; always consult an expert before you choose a company to consolidate your debt and sign on the dotted line. a company to consolidate your debt and sign on the dotted line.

It is quite unfortunate that many borrowers like you are receiving debt management advice from the wrong people. The consequence of this action is that it plunges them further into debt instead of helping to deal with their debt problems. But with a good debt management advice, it is possible for you to manage all your unpaid debts and be free from the pain and headaches associated with having lots of huge debts.

It is highly essential for borrowers like you owing a huge amount of money to make use of a good debt management advice. Also, you need this type of advice if you are presently having more than two lenders or lending agencies. Fortunately for you, there are hundreds of agencies out there offering debt management advice service to borrowers like you. These agencies can help you with loans that will enable you pay off all your debts with lots of ease. Many of these agencies are available on the World Wide Web.

The major function of debt management advice is to help you in the management of the little money you have. You are taught on how to control your spending by controlling your desires. Many people who have found themselves in huge debts have found out that they got there through impulse buying. This means that they spent their money without giving it enough thinking. Another thing you will be taught is how to make sue of your credit card. It is sad to note that many people out there don’t know how and when to use their credit cards, then simply type in their credit card info whenever they come across something they like online or offline. This is wrong and plunges you further into debt. This is why you must go for a debt management advice.

Like I said from the beginning of this article, there is need for you to get a good debt management advice from experts in the field. It is not everybody out there saying he or she is a debt management advisor that you should consult. Some of these people are simply not enlightened on how to get you out of and stay away from debts forever. Ensure that the advisor is one that is very concerned about your financial state and wish to help you deal with the problem of debts. He or she should not be primarily concerned about the money to be received. Moreover, it is not wise for you to spend all the little money you have on you on an expensive debt management advice. It is logical that the fee should not be outrageous so that you don’t get further into debt.