Financially Overcoming a Job-Loss

Getting a new job isn’t a cake walk either. Evidently, the signs of worry show up. But if you thought that’s the end of the road, you got it all wrong. Job loss is common, so are its ways to cope with it. You just need to wise up money-wise to recover.

First, if you’ve heavy outstanding bills and debts, go for debt consolidation. It reduces your monthly payments, and also helps you to make a single monthly payment by tacking all debt into one loan. A single loan is always easier to handle in financial crisis as it’s lower than the total payable amount on several loans and bills. Therefore, you get a chance to organize your finances, without any debt woes.

Next, ensure that you have fully received your entitlements from your employer. Some companies have redundancy packages, offering financial advice, outplacement, and career opportunities. Use it if you can.

Then you must reorganize your budgets to meet the situation. The same earning-to-spending ratio wouldn’t stay; therefore, you may fail to pay for your mortgage or credit card. In such a case, be explicit and negotiate fresh payment terms with your creditors.

Don’t make rash financial decisions that may land you in hot water. For instance, push aside all plans for holidaying or buying a new car when you’ve just lost a job. Also, avoid using all your payout to pay off your loans as you’ll have to survive on that money till you find a new job.

You must also change your lifestyle to get over the crisis. Forget being the same party animal or impulsive shopper that you were before. On a positive note, job loss allows you to look back on life and re-evaluate yourself. A job loss also helps you reconsider your career plans and future, which you wouldn’t have done otherwise.

If this thought isn’t cheerful enough, and you’re still having creases on your forehead, seek professional help. Get a financial advisor to plan your finances. Alternatively, go for counseling.

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The Real Story Behind Credit Cards

by Carmin Olivier

A credit card can be an asset to your lifestyle, but if not handled carefully it can become a liability, especially if you find it so convenient and easy to use that you lose control of your spending. This short guide will help you understand how you can use your credit card so it works to your advantage, not against you.

A credit card can:

1. Offer free use of funds, provided you always pay your balance in full, on time.
2. Be more convenient to carry than cash.
3. Help you establish a good credit history.
4. Provide a convenient payment method for purchases made on the Internet and over the telephone.
5. Give you incentives, such as reward points, that you can redeem.

On the other hand, credit cards can:

1. Cost much more than other forms of credit, such as a line of credit or a personal loan, if you don't pay on time.
2. Damage your credit rating if your payments are late;
3. Allow you to build up more debt than you can handle;
4. Have complicated terms and conditions;

A credit card is first and foremost a flexible payment tool accepted at 30 million locations worldwide, and if the card balance is paid off every month, then no interest is charged on purchases made so, essentially, short-term credit is granted without the consumer paying any interest. Among its many features it provides:

1. Access to unsecured credit (no collateral required against amounts charged)
2. Interest-free payment from time of purchase to the end of the billing period
3. Instant payment of purchases, allowing for instant receipt of goods and services
4. 24/7 access
5. Fraud protection

However before you decide to use your credit card, carefully consider all of the factors and weigh them against your personal needs and values. Handling money and credit cards wisely is a talent few of us are born with. But it is a skill that can easily be learned. The place to start is with budgeting. It's simply an organized way of managing your finances, basically, it gives you an overall picture of where your money is coming from, when it's coming in and how it's being spent. A budget should be flexible, changing according to your circumstances.

Budgeting helps us achieve short-term goals like paying the monthly bills on time; it's also for longer-term financial goals like buying a home, a car, paying for an education, a wedding or a holiday. When you take control of your financial affairs, you're more confident about the future.
A budget is key to financial control. It gives you a "Polaroid picture" of where you stand financially and where you're heading.

Credit card control tips

1. Use a low or no-fee credit card and save on the annual fee that some companies charge.
2. Only charge to your credit cards what you can pay off in full when the bill comes.
3. You might not use your credit card as much if you start believing that you have to pay off your entire balance at the end of each month.
4. A good way to help to reduce what you pay on your credit card is to search for a card with a lower interest rate. Many financial institutions now offer at least one of these types of cards.
5. Remember that when you take a cash advance on your credit card, the interest starts accumulating immediately and not on the due date of your credit card bill.
6. Also keep in mind that if you make only the minimum monthly repayment you may never get out of debt.

The main advantage of having a credit card is convenience but if you're not good at budgeting and managing your finances, the over-use of credit cards can leave you with a debt that's very difficult to pay back. Take this friendly advice...

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10 Guide Questions for a Better Financial Life

"You answer my questions with questions..." The lyrics of the song "Question" strike me often.

What does it really mean? So, each of us has the ability to find the answer to any question. They key is to ask the right questions. If you're frequently asking yourself, "Why was I so dim-witted to get into debt?", your mind will provide an answer like, "Because you're a loser."

You should remember that your brain will keep working on your question subconsciously until you obtain an answer. We've all had the experience of waking up in the middle of the night with the answer to something you were thinking about earlier in the day. The quality of the answer is directly related to the quality of the question. A better question is "What action can I take today to start reducing my debt?" Your brain will ponder this until it returns an answer. like a concerned friend. That may be something like, "Get financially organized. Look through all my credit card statements and see if I can determine if any one card is better than another."

According to Scott Bilker, the founder of DebtSmart.com, here are 10 questions whose answers will guide you to a better financial life:

1. What action(s) can I take today to start reducing my debt?
2. How can I start making more money within the next 5 days?
3. What can I do to start saving money?
4. What did I learn about finances today?
5. What day, this week, can I commit to going to the library and researching my financial options?
6. How can I use my computer to improve my life financially?
7. How can I double my income within one year?
8. What dreams did I have when I was younger that I should revisit today that would improve my life?
9. Do I have the right amount of insurance?
10. How can I enjoy the process of working to reduce my debt?

Now find the answers...


Related site: Pinay Questions (filipinastudes.blogspot.com)

Success Factors for Becoming Debt-Free

Perhaps you have noticed that debt is nasty and importunate. Debt has a sticky feature, like chewing gum that gets in your hair and wedged into the tread of your sneakers. It's like a splinter you can't get out . The harder you try to get rid of it, the more of it there seems to be. When you dislodge a chunk, you can't believe how much is still left and how hard it is to clean out. It's not an illusion -- or a sign of your own personal failure -- that debt is so sticky. Once you're in debt, researchers have established, you're much more likely to stay in debt for a extended period.

Resolving to get out of debt is easy; actually getting started is a bit harder. But the real ordeal is sticking with your plan. Here's what makes an effort succeed.

Persistence
It's the secret element that is as imperative as, possibly even more important than, finding the funds: persistence. The idea was that each person would race against herself to pay back her debt -- not against each other. You work at your own pace, and everyone's pace is different. It doesn't sound much different than making those monthly payments on your own. In other words, there's no question that debt tends to persist, and you have to cultivate an extraordinary persistence of your own to deal with it.

Accountability

Determine and recognize exactly how much you owed and how much you were paying, and regularly update your progress (or stumbles). If you don’t update your records, you fail. You tell yourself that this is your pursuit and no one’s gonna think and work as determined as you will and can do. We all know that feeling, whether from being on a diet or a too-strict budget. You've tightened your belt to the point that you're afraid to loosen it, lest you go hog-wild crazy. It's a valid fear, and being aware of it is your best defense.

Because most people make a simple but drastic mistake when they borrow from their cards or homes: They don't think about having to repay the money with after-tax dollars. If you feel like your debt is dragging you down and you don't know how you'll get out from under, maybe it's time to put on your running shoes. Ready, set . . .

Reinforcement

In a world where senseless shopping and fashion pursuit always get a gold star, it's hard to find any support for putting money toward financial freedom instead of feeding that plastic monster. To that end, reward yourself (not monetarily) whenever you overcome the temptation. How? That’s easier than looking for the money. You just got to be sensible and resourceful because there is more to life than buying the items or services that you thought are important.

It's not necessarily the big-ticket items that sink your budget. It's the steady onslaught of little ones. Sometimes you need to take drastic steps if you want a dramatic improvement in your financial life.

Camaraderie

Community spirit -- call it what you will. I think of it as the buddy effect. It’s not like you can talk to your best friend about your financial problems -- or your mom or your sister. So having a forum where you can say, 'I just got a $100 birthday check, and I'm putting it toward my credit card balance” -- and then getting a round of cheers from other people -- it's incredible. You don’t simply struggle on your own, others too are struggling like you do and others have already succeeded. Why don’t you find a common ground to share your experiences and get their push. That's because what getting out of debt requires, more than anything, more than money itself -- is stamina. Not only men, but women should build their stamina around supportive peers.

Pay these Links a Visit:

• Getting A Bonanza: Pay Off Debt Now Or Over Time? [Ask Consumerist] (consumerist.com)
• The Secret to Managing Credit Card Debt (indebt.singlesceneuk.net)
• Recession Solution: Rethinking 401k Loans (abcnews.go.com)
• My Financial Implosion: Recovery is Possible (queercents.com)
• Payday Advances: Controversy and Criticism (ukscams.co.uk)

Protect Your Assets through Proper Financial Management

Your financial status is on a crunch and you are uncertain on the course of action to take. You are terrified of declaring insolvency and dropping all your assets. You feel that even your creditors are bullying you. What are your options under such circumstances?

I believe that your best option is to pursue a debt management scheme. You can facilitate or structure payment of arrears using an arrears management program from an arrears management firm or even a credit cooperative. You can also seek out a fiscal counselor to assist you manage your arrears and there are free counselor services available for you.

Under debt management, your initial consideration is the retention of your properties. This is your first priority, and you have two paths of action to track. The first path of action is to consult a debt management firm. The second is to apply for individual volunteer agreement.

If you go for a debt counselor, they will request for details of the amount of arrears that you are in and what are the properties you have. They will also wish you to tell them if you have a job and how much your income is. They will then contact your creditors and try to work out an arrangement with them. In this, they will endeavor to get the highest section of your arrears written off and will attempt for your properties to stay with you. Bear in mind that debt management covers debts like mortgage payments, credit cards, and any other loans that you may have accumulated. On the whole, the key section of arrears that you owe is the interest that has to be paid against any credit or credit that you have acquired. In case of your mortgage, the arrears analyst will attempt to reschedule the mortgage payments. In case of other loans, they will attempt to reduce the interest charge. Debt counselors will work out a realistic repayment schedule. In this case, you are only required to make a single monthly payment to them. They in turn pay off your debts according to the schedule that they have worked out. In this, you get to retain your assets and also work off your debts.

If you apply for an individual voluntary program, you will have to hire a legal representative and apply for this program in a court of law. Your legal representative will call a meeting of all the representatives of the companies that you owe money from. He or she will try to settle your repayments with them. If 75% of your creditors consent to an amount and a repayment plan, the other creditors eventually have to sanction it. This is how a repayment plan is worked out, and you have to stick with it. You cannot have enough money to default on you repayments. When you agree to follow a debt management plan, you cannot go about acquiring fresh arrears or new loans. In fact, you should carefully plan your monthly expenses, cut down on all unnecessary expenditures, and repay your arrears. Don’t expose yourself to additional risks by acquiring further arrears. If you do this, you can end up losing your properties and no sane individual wants that.

In debt management, if there’s a will, there’s a way. You just have to carefully plan your steps and stick to a more prudent system of running your finances because in the final analysis the help that you can get is as successful as the determination you offer to your finances.

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How to Handle Your Debts

In this time of global recession, there’s such a mounting hitch when it comes to debt. Many men and women nowadays are burying their heads in the sand rather than facing up to the situation that is escalating. There are various things that can be done to rally round your situation. It is vital to face up to your debt. By working out your monthly expenses you can make a plan.

Write down how much your monthly outgoings are. Start with utility bills, rent/mortgage, shopping and any other outgoings you have. Once you have calculated how much you need for all your expenses you can work out what you have left to spend or save for rest of the month. This is a good way of making sure you do not exceed your monthly income.

There are many options out there for people who are getting deeper into debt. Regrettably, people are not aware of the options that are available; There are a lot of options available and a debt consolidation loan is one. However, there is a lot of advice available so it would be wise to look into it. A bad debt consolidation loan can be very helpful to some, however if you are looking at getting one, it would be useful to look at more than one loan company and see what deals are being offered.

If you have a poor credit rating it is usual for people to think that it would be a lot harder for them to get help for a loan. This is not always the case and although not all companies can help a few can, making it possible. The interest rates are normally higher if you have a bad credit rating, nevertheless it is still obtainable. In fact some companies use people facing bankruptcy as an example.

Debt consolidation loan means merging your bills into one monthly payment; this is what makes a consolidation loan appealing to many as it takes away the pressure. The monthly amount can be considerably reduced although you will be paying it back over a longer period of time. It should be researched carefully before any decisions are made on consolidating your loans.

Improving your debt will take hard work and dedication this is why a debt consolidation loan shouldn't be taken lightly, much consideration should be taken to make sure monthly payments can be met.

Read Also

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• The Problem of Debt (indebt.singlesceneuk.net)
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On Borrowing – A Curse or A Blessing?

Consumer borrowing has convincingly muscled itself into the 21^st century’s global retail economy. Borrowing money has leveled up its stature as a safe and easy, natural, respectable, time-honored tradition for financing business operating capital, expansion, the purchase of equipment, building up inventory, and to even-out cash flow. In fact, it is the most logical means of financing business and business operations nowadays and it seems that it is no longer feasible to live and stay out of debt. Yet there are those who have remained debt-free and still, many people assume that all debt is bad... even categorically evil. Is it desirable to totally eschew or abstain from debt? Is it realistic to extricate oneself from the clutches of clinging debt! Is debt a curse or a blessing?

Debt is one of the few things in life that cannot be appropriately viewed in black and white! It should be viewed in the full spectrum of color and hue. Just like water, debt can be a great ally if properly harnessed. But it can scratch you for life or even permanently bump off your breath if it is allowed to rant and rave out of control. Typical consumer loans are taken on for years at a stretch to buy items that plunge in value, at times suddenly during the term of the outstanding loan! But too much consumer debt indicates a well-entrenched helplessness to exercise one of the key criteria for long-term success, a commitment to deferred gratification - the willingness to give up something good today in anticipation of something far better tomorrow. This philosophy of deferred gratification points to a person’s superior emotional aptitude. Mature people can exercise deferred gratification with regard to consumer items. Immature people can't, won't or simply don't! And the dividing line often has little to do with chronological age.

On the other hand, a viable business debt - under the right circumstances - can be productive. Money may be borrowed, say at 12%, to engage in productive economic activities that yield perhaps 25% or more. The ability to do this continually leads to burgeoning, upward spiraling profits, which are the cornerstone of sound, vibrant capitalism and the goal of all self-respecting capitalists. However, this could be construed as greed; and unadulterated self-indulgence is cancerously evil. But a healthy desire for profits, as long as it is attained by ethical business practices devoid of scraping others, is not only good, but wonderful. After all, the fair exchange of useful commodities and services for money is the foundation of a vigorous economy. Modern life is centered upon the benefits of profits earned honestly and shared benevolently.

Still, in a viable business borrowing, intelligent restraint should be used. Business owners and managers must use extreme caution regarding borrowing to start new ventures, to maintain cash flow and operations capital in existing businesses, or for expansion. One should try to identify which financial debts are productive, good business-type ones, and which ones are the more common destructive, consumption-type that only make financial institutions richer at your expense! Then embark upon a focused program of debt-eradication within the second group. Either pay off debts in order of the most expensive ones (meaning those with the highest interest rates) first; or pay them off in order of the smallest ones first.The first strategy is mathematically more efficient, but the second is more emotionally fulfilling. Go for the first if you're well-disciplined. Use the second if you're like most of us mere mortals and in need of quick reinforcement through positive feedback! Try your best in crushing the monster of excessive consumer debt and thus rescuing your future income streams from being devoured by this implacable foe. Will you be an intelligent borrower or economic slave?