FINANCIAL FREEDOM

Your Debt Reduction Planning Tools

With the economy in such a poor state and many people losing their jobs, or having to take less pay, there is a bigger portion of the population that has resorted to living off of credit. When the time comes to pay off your debt and get out from under it all, using debt reduction planning tools can really help make a lot of difference.

Finding the right tools for you and your situation is as easy as surfing the internet. There are many things that you can use that can help you get a clear picture of where you are, a clear picture of where you want to be and, most importantly, a set plan on how to get there.

Debt calculators are one such tool because it will allow you to factor in the amount of interest you are paying on any particular bill. You can use the calculator by determining the date you want to be free and clear and the calculator will figure the amount that you will need to pay every month in order to reach that goal. As long as you don't incur additional debt, such as continuing to use a credit card or line of credit, the calculator can give you an exact time frame for when you can be debt free.

In order to make sure that the numbers you are plugging into a debt calculator are accurate and that you can make those payments every single month, it's important to come up with an exact budget in your debt reduction planning strategy. You need to have a clear picture of how much money you have coming in the house every month and how much goes out every month. Only then can you accurately calculate when you will be debt free.

In order for your budget to work you have to make sure to include everything. If you buy coffee every day when you go to work (and you're not willing to stop doing so) you need to include that amount in your budget. It's easy to remember the big things like car payments and mortgage payments, or the things where you get a bill in the mail every month,but the things that you might have trouble thinking about and including in your budget are things that you don't have to do every month such as dry cleaning, pet expenses, seasonal expenses, etc. Make sure that you take all of that into consideration before you make out your budget. The more accurate your budget the fewer bumps in the road to financial freedom you'll encounter.

Also, don't be afraid to contact your credit card companies and see what, if anything, they are willing to do to help. Just make sure that whatever they do to help doesn't have a negative impact on your credit rating.

There are a lot of tools and methods you can incorporate in your debt reduction planning strategy but the one best thing you can do for yourself and your financial health is to get started right away.

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Outstanding Student Loans

Outstanding student loan is a common and major problem for several students. You can negotiate with your creditors and convince them to reduce or even eliminate your debt, but for this purpose your case should be strong and based on facts. If you are not confident that you will be able to negotiate yourself, you can hire a company to bargain or negotiate with your creditors on your behalf.

Make sure if you are able to pay then don't cheat your creditors as this destroys relations, and if you are not in a position to pay then you should contact your creditors as soon as possible and let them know with your situation. First, ask your creditors to forgive some of your debt as this is a good starting point, and then gradually move forward for further negotiations.

Some creditors may entertain your request and some not, but you should try your best to convince them that you deserve to be awarded some relaxation in loan payments. If your case is sound and make sense, most probably they will consider your request seriously.

Keep in mind it is always helpful that you contact your creditors before they contact you because this shows your sincerity and loyalty, and creditors value such actions. You can also take services of a debt negotiation agency to negotiate your case with your creditors. Before you take services of a debt negotiation firm, make sure that your creditors are willing to work with that agency, and always take services of a competent and experienced agency as any mistake in choosing the right firm can result in denial from your creditors.

Keep in mind that your credit history should be excellent as all the lenders check credit record before giving any loan. So, you should manage to make a good credit history, and always try to pay your monthly payments on time. If your credit history is good, you can better negotiate interest rates with creditors.

College loan consolidation program:

Students take different types of loans with different interest rates during their college life to fund their educational expenses, and after graduation they see a big outstanding amount waiting for them. A college loan consolidation program is the solution to all these problems. This program takes all student loans and puts them in a single loan. This loan allows students to pay a single monthly payment instead of making more than one payments for different loans. Moreover, there are many consolidation programs which offer lower interest rates to students to help them manage their debts easily.

Hence, there are many advantages of consolidated loans like you can use this loan to pay off all your previous student loans, you will be paying a single amount per month instead of more than one amounts for different loans, it will be easy for you to remember one due date instead of many due dates for different loans. So, this is the best option for a student to fund his/her educational expenses with affordable interest rates

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Controlling Your Debt: How To Boost Your Credit Score

A credit score acts much like your high school report card. It features a three-digit “grade”, which reflects a person's credit worthiness to potential creditors, banks, insurance companies, mortgage companies and even employers. The higher your score, the greater will be your chances of availing credit. Here's how to control your debts, and boost your credit score.

Review Your Creidt Report

Ther are three major cretid reporting agencies today, and through these agencies, you can get a copy of your credit report, for you to closely evaluate it. Just like using a fine- comb to weed out tangles and loose hair, you need to review your credit report with a keen eye for incorrect data, or any inconsistencies. Check out any incorrect payments, credit limits, or collection data that you strongly feel is not yours. It's a fact that some typing errors or numerical glitches often show up on some credit reports; therefoe you need to get a copy of your credit report at least once a year.

Pay Your Obligations On Time

Always make sure that you pay off all types of debt or bills on time. Late payments or any delinquencies will truly have a major effect on your credit score. If you forget to pay one or two of your bills on time, prepare to have some red marks or black eyes on your credit history. To steer clear of any delinquencies, try setting up your bills for automatic withdrawal from your personal ckeching account, so that you won't have to deal with any collection agency in the future.

Balance Your Credit Card Spending

Regardless of whether you have one, two or three credit cards, remember to spend wisely and balance your credit card obligations. If you don't have the money to pay an existing credit card balance at the moment, try getting a loan from a family member or relative, so that your debts can be wiped off from your card, and your credit score also gets a helpful boost.

Never Do Loan Shopping

Whenever you continually shop for loans, or submit to as many lenders within just two weeks, your credit score will surely suffer a major drop. Try to do a cluster of loan inquiries within a proper period of time, like one every two weeks, so that your credit score remains strong, and won't have to suffer major drops in credibility with lenders.

According to credit experts, a credit score of 300 to 580 indicates that you'll only get approved for loans which offer very high interest rates. A credit score of 651 to 710 means that you'll be able to avail of credit at moderate interest rates, while a score of 751 and up indicates that you'll be able to get the most competitive and flexible loan packages available in the market today.

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How to use assertiveness in collections of debts

Being assertive means that you are able to stand up for who you are and what you want. You may know that you might not always get this but you have done all that you can to try. Finding out what you can do to be assertive in collections of debts that people around you may owe will give you strength and power to get what you want and feel better about it.

You need to use your assertive training for being strong when it comes to collecting debts. You have to figure out what you want and then devise a plan to get just that. It is not always nice, but in some cases, you may have to put a little bit of force behind your efforts and make it happen for you. There is nothing wrong with wanting to be paid for things that you have done or if you have loaned people money. You honored your part and now you have to get others to honor theirs.

Do you know that when you are assertive in life, you will get more things accomplished and have a better outcome in life? It can happen for you and with the right tools and training, you can make other pay you what they owe and move on. It may not be easy to stand up in this type of situation, but you will feel better once you have. Sometimes it is not always about the money that is owed, it is the principal and the fact that you want to be respected from others around you.

You need to get on top of things. You have to be more assertive with the way that you live your life. You do not have to be mean or be rude to do this. All you really have to do is make yourself known and show others how you are feeling about something. If you are owed money, you should make sure that you do what is necessary to make them see how serious you are about it.

Make things happen for you. Do not wait for the person to come to you and pay. You may have to go to them to get what you are looking for. There is no reason why you should have to wait for debts to be paid. You need to get assertive and use this feeling to collect your debts and make things happen for you.

Take advantage of everything that you can. You should not pass up opportunities to make things work in your advantage. If you see an opportunity, you should grab it. You are the only one that can make your goals of collecting debts happen for you. There is no reason to worry about how others will view you when you are being assertive. You are doing this for yourself and it is important that you are following through on your actions. Remember you do not have to be rude or pushy, you just have to be assertive and you will see that this emotion will get you where you need to be.

If the aggressive behavior that you are portraying is not working to collect the debt that you are owed, at least you know that you tried. You showed someone that you cannot be taken advantage of and that you can stand up for yourself. You will feel better because you did what you had to do and it probably felt good at the time. You will learn from this experience and take more with you for the next time you are trying to collect a debt from someone

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Tips for Getting Out of Debt

Are you looking for tips for getting out of debt? Many people struggle every month to find ways to cover just the minimum payments on credit cards, personal loans, student loans and many other debts. The problem with paying only the minimum is that it's almost impossible to get out of debt any time in the near future.

When it comes to getting out of debt for good, there are several steps you can take. Always remember that it took you time to get into debt, so it will take a little time and patience to get back out again.

Here are some tips for getting out of debt for good.

Building Your Motivation to Get Out of Debt

The key to effective debt reduction is understanding WHY you want to get out of debt. Most people simply think that being debt free would be easier financially. Others simply don't want the stress and frustration of constant monthly repayments eating into their pay check leaving them with nothing left over for themselves.

Regardless of what your reasons for wanting to get out of debt are, it's important you have a strong, valid reason for creating a debt reduction plan. When you can answer the question of why you want to get out of debt with passion, you'll find it much easier to stay motivated.

Determination

If you're truly determined to work on getting out of debt, then you will need to make a promise with yourself not to add any more debt to your current balances. This means not charging anything else to your credit cards and not applying for more credit.

You might think this sounds like an easy step, but the real challenge comes when bills need to be paid or when you've run out of cash at the end of the week. No matter what happens, be determined to stop adding more debt to your balances.

Reducing Balances

If you're paying the minimum payments on your current outstanding credit card debts or other balances, then you may find it difficult to get out of debt quickly. The object is to find ways to pay more than the minimum due to get your balances down as fast as possible.

Reduce Expenses

In order to pay more than the minimum payment due, you'll need to find ways to reduce your current expenses so you'll have more money left over from your pay check each week.

Think about ways you can reduce your current repayment amounts. You might decide to look into balance transfers to lenders offering lower interest rates or you might think about consolidating some of your debts to reduce your payments.

You should also start thinking about other aspects of your spending habits and see if you can find areas you might cut back. Put any extra cash you have towards your outstanding balances immediately.

Increase Income

If you're struggling to survive financially on your current pay check, then you might consider looking at ways to earn a little extra on the side. This extra income should be designated for getting out of debt and put towards your balances each time you receive it.

You might simply hold a yard sale or put some unwanted items on eBay to raise a little extra cash. You could even look at some ways to create a little side-income online.

No matter what you decide, tips for getting out of debt are only going to be useful to you if you take control and make the firm decision to reduce your debts on your own. With patience and determination, you'll be debt free before you know it.

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Federal Grant As Debt Relief

The government offers federal grant and financial assistant to hose who are having problems recovering from debt. Because of the economic crisis affecting the country, there are a lot people who are facing that they cannot pay. Let’s just say that Mother Nature played with you and a hurricane caused destruction to your home and property, how would you be able to recover from expenses incurred for repairs? The answer is, you can try getting federal grant for debt relief.

The government can offer debt relief grants to those who have incurred the debt because of addressing health problems. For those who have incurred debts by pursuing business projects and ventures, there are small businesses associations that could offer debt relief loans which is lower compared with other money-lending institutions.

This kind of federal grant ensures that individuals and businesses would recover from being buried in debt. The government actually have helped some home owners face impeding foreclosure by providing debt grants. But the other side of this grant is that not most people know it. Of course, not too many people knowing abut the grant means lower recipients. Unspent allocation for the grants would be used for other projects.

This money which is used to help the low-income families, actually come from families in the high income bracket. These people would donate money to foundations ad charitable institutions and are used to help low-wage earners and address their needs, in this case, their debts.

To apply for a debt relief grant, consider the following steps.

• Identify how big the money problem is, how much you owe and compare it with how much you earn and how much you are spending. Debt relief grants are there to help out get rid of debt problems, but if the situation arises again the problem can be because you spend too much than what you earn.

• Based on your current situation, check what debt grants are available for you. You can check the debt grants offered by the government by going to the city hall, or you can inquire about private institutions that offer debt grants.

• Know the application procedure and follow it. There are debt relief grants with just very simple application process, while there are others which require you to write a grant proposal. Some grantors would even require you to provide your financial records like your monthly expenses, income and also number of dependents.

• History would also have an impact on the result of your debt grant application. It is important to provide information like previous grant applications, this makes sure that everybody is given a fair chance to get the grant. If you just had a grant previously, there would be less chances that you will get the grant again.

• Remember that not everybody would be able to receive a grant to ease of the debts. Social Services would be there to identify if you are really qualified for the grant application. Income, the incurred debt and the monthly debt payment is considered.

The government can have grants that can help you bail out of your debts, but federal grants do not cover expenses or costs for buying or purchasing services or properties, unless otherwise stated in the regulations. It is important to avoid these scenarios from happening again to make sure that you continue a debt-free life.

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The Ugly Truth Behind Credit Card Debt

Credit card debt is one of the leading causes of financial crisis in America and for most part of the world. Indeed, lots of focus by economic experts are geared towards analyzing the benefits or disadvantages posed by the use of credit cards. There are also several factors that are involved with credit card use that could impact the way an individual manages his or her finances.

Is Credit Card Important?

Several individuals are enticed to secure their own credit cards because they are lured by the many advertisement claims about how it can make your transactions a lot easier. While credit cards do offer a few benefits, it is outnumbered by the financial discrepancies caused by owning a credit card.

What many people do not realize is that using credit cards to pay for their transactions or bills actually result in them spending more. In fact, the same can be said even if you are religiously paying your bills on time. So you can just imagine what those credit card owners who aren't making punctual payments are going through financially!

Credit cards are beneficial in a few instances such as having convenience of extra finances for emergency situations, or safety during travel. However, the interest rates can be quite a burden on some families who earn only minimal income each month. Also, there is the possibility of misuse since it creates a false sense of financial security that often ends up in people having massive credit card debt.

Cash or Credit Card?

Budgeting is an essential aspect of handling your finances. This is often neglected when people have to rely on credit cards to make their purchases. Therefore, some people are on a toss-up between which is the better means of making financial transactions, either on cash or through credit card. Here's what would help you decide more effectively.

Imagine yourself paying on cash during purchase. There is an emotional attachment to that money, which you have worked hard on earning, that makes you unwilling to let go of it. However, the case is different with using credit cards for purchase. There is none of that emotional attachment and you can simply swipe away without remorse.

Using credit cards to make your purchase instead of paying on cash could end up in you spending about 12 to 18 percent more than the actual value for the item if you paid with actual cash. Imagine how much could have gone onto your savings!

Teenagers and Credit Cards

Credit card companies are targeting teens on their ad campaigns, however it is not a good prospect for parents, especially if you want to teach your kids on how to become responsible with their personal finances. This is more true based on the fact that teenagers have the tendency to be impulsive and with credit card in hand, it creates that false sense of financial security that they can afford anything they desire. Instead, make them work hard to achieve something they want, especially in the material aspects.

Financial Security

If you want to achieve more financial security, credit cards is not the way to go as it exposes you to risks of acquiring credit card debt. But if you are going to opt for one, make sure you have an effective and practical approach at spending. There are a few advantages offered by using credit cards but it does not make an effective replacement for cash whatsoever, unlike most credit card holders believe.

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Is the consolidation of your debt the right choice for you?

Brought by the present financial circumstances, majority of the people are ascertaining their expenditure to find out in what area they can tighten their belt. Many consumers are considering debt consolidation as a viable option to lowering their monthly payments. Having extra money can reallly help as everything from gas to groceries is costing more.

When Should I Consolidate?

You should seriously consider consolidation for your debts it you have several credit accounts with high interest rates and high balances. Having a large principle amount on your credit lines with high interest rates means that approximately 90% of your monthly payment is going towards interest, this means that it is going to take years to pay the principle amount off and cost you thousands of extra dollars over the life of the loan.

What Are My Options?

There are a few ways that you might want to consider for your debt consolidation. A home equity line of credit is not only one of the fastest ways, it's also one of the simplest. That would be when the person loaning you the money enables you borrow money from the difference of your homes worth compared to what you owe. With 30% of equity and with a good employment record, every lender will be glad to issue you a credit line like this.

You may want to consider refinancing your home with a cash out option. What you are doing here is remortgaging your home and receiving the equity amount back in cash. If you have a high-interest-rate mortgage on your home, you may find this choice extremely useful. Currently, the interest rates are incredibly low, which may not hold true for the months to come.

How does this process work?

Fill out an application from the lender to start the loan process. A regulation application and a financial form are the papers alot of lenders have you fill out. To fill this form out you will need all your income, savings, debt, and credit line information so you should have all that information together.

Getting It Done

Accomplishing The Task When you've decided to consolidate debt, you might wish to go to the bank where you do your banking. Since you are already an established customer, they may be more likely to give you a loan of this type. Searching the internet will also yield many excellent alternatives. They will take a look at any options available to you after you take a moment to quickly and securely complete the forms. Reducing monthly payments and increasing the speed by which you get out of debt are two good reasons why anyone with high-interest loans should investigate debt consolidation.

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Ten Ways to Simplify your Life and Lower Debt

You should shop for quality insurance. Ask your friends for their recommendations. Do they like their insurance representative? Does the insurance agent seem to be responsive to their needs? Is the agent easy to contact? How long have they had this agent handling their insurance?

Determine your real needs. What types of insurance will you need in retirement? Consider medical, dental, free or low cost coverage. Look at your medical bills and see the types of services you were charged for? Do you anticipate needing surgery or more heath care?

Get several quotes. Even if a company is recommended by a friend or relative, you might want to get at least three quotes so you can make a comparison of the services and fees. Check the Better Business Bureau (BBB) website for any complaint. Also check the rating of the insurance company. Among the commonly-known rating financial agencies are Moody's and Standard & Poor's.

Be prepared to answer a long series of questions as they relate to your health.

Ask about annuities, Medicare, Medicaid, Medigap, prescription drug payment assistance, long-term care insurance, travel insurance, etc.

How stable is your current income flow? Do you currently own financial products? Are you wondering whether you should cash out any of your financial products? Ask your rep if you should refinance your home or not.

There are many reasons to save money. One main reason is retirement. Today you cannot live off of social security alone. Another reason to save is because there are situations ahead. Straight if your kid are quiet in high day-school, college is not far off, and neither are cars and graduation parties. Other acceptable argument to protect is because you understand you are going to want bigger, better things soon. You understand soon you are going to want that bigger house, or that better car, or that boat you have been dreaming of. Save now so all of those are an option. Another reason to save is because of the unexpected things in life coming toward you. For example there is job less, illness, or home repairs. These are all goods you are going to require saved small change for. According to bankrate.com, "Americans at present expend extra than they deserve. Savings are less than nil. But you are able to break out of that mold all on your own and reap the advantages of sensitivity at liberty and free"

Here are some real ways to save, and save aggressively. First of all, pay off all of your credit cards. That credit being open is an amazing opportunity, character uplift, and safety net. Debt is suffocating. Next, make sure you budget your income so your cost of living is as low as possible in contrast to your income. That is, if you calculate your bills, your gas, food, and extra spending, it is much less than what you are bringing in. With that extra money, you save. Put it in a savings account and act like it does not exist. Another great way to aggressively save is to have a roommate. If you are single, this is a great way to literally split your bills in half. Carpooling is also a great way to save money and split a bill in half.

Lastly, when it comes to saving it is very important to remember you are spending and what is necessary and just a want. For example, calculate how much money you are spending on going out to eat and how much that would equate to for groceries. You would be surprised. Remember how much you are buying that you do not need, that you won't even use that often. Is it worth it right now? Saving and not spending when it comes to wants is exactly what makes it aggressive saving.

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Avoid These Major Money Missteps and Stay Out of Debt

What you can do to avoid getting into debt? Experts say there are certain money missteps that many of us are likely to make. Here are the major money missteps that can easily land you in debt. These are very common missteps that many of us fall into without even knowing it.

Buying a new car

OK, this is not so much a money misstep (unless you really can’t afford a new car, or finance it with a high interest rate) as a preference that can easily get you into debt. Sure, you love that new car smell, the feeling that you are the one adding up the miles, but it is a known fact that new cars depreciate several thousand dollars as within the first year. Save yourself all that money that you’re paying for the privilege of the new car smell and buy a high quality pre-owned vehicle. Many used cars still carry the original warranty—even more incentive for buying a quality used vehicle.

Borrowing from your 401(k) or 403(b)

In most cases, you won’t get a great deal at all. Your 401(k) deals are pre-tax, which means that eventually the money that you put in will get taxed when you withdraw it. Taking out a loan from your 401(k) or 403(b) means that you will be borrowing from pre-tax dollar which will eventually have to be repaid. When you eventually retire and begin your withdrawals, you will be taxed again. If you borrow money from your 401(k) or 403(b), you will effectively be getting taxed twice. Did you know that you are also required to repay the loan in only a few months? If you don’t happen to have the money for repayment, your loan will be treated as a withdrawal. You can expect a whopping 10 percent early withdrawal penalty.

Using your home equity line of credit to pay off your credit card debt

You can lose your home if this doesn’t work out. Credit card debt is often described by unsecured debt, because there’s no real collateral that the credit card company can force you to sell in order to collect on the debt. A home mortgage and home equity loan is known as secured debt because your home is the collateral. But if you fall behind your payments, the lender can easily require you to sell your home in order to collect on the debt.

Avoid buying a variable annuity

When you buy a variable annuity you are making a contract with the insurance company and the money is used to buy mutual funds. Salesmen may try to pitch this kind of investment as a way of buying and selling funds inside the annuity without the tax bills as long as the money is invested. But did you know that you will have to pay income tax on any withdrawals? Plus, if you withdraw any money from your variable annuities before you are approximately 60 years of age, you will also be penalized with a 10 percent fee. So watch out for what may seem like a great deal on that tempting variable annuity. There are often many buried fees that are attached to variable annuities. Make sure to read all the fine print.

Do not finance your new home purchase with a variable interest loan

Avoid those low initial teaser rates for financing your new home. If you can’t afford the home otherwise, you should probably not buy the home. Avoid option adjustable rate mortgages too. This will usually cause your loan balance to become bigger each month as the lender adds the unpaid interest on the balance of your home loan. Watch out for those great introductory rates—they can often turn out to be not-so-great.

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Child support

Child support is a high priority debt that you must pay no matter how difficult your financial position might appear to be.

There are a number of reasons why you need to make child support payments top priority. Quite apart from the fact that your children shouldn't have to suffer for your financial dilemma and the necessity for you to provide them with the necessary support to ensure their welfare is looked after, you also need to be aware of the consequences of not paying child support.

Any child support court order that was written or modified after the 31st of December 1993 will automatically be deducted from your wages if you are employed. If you are self-employed or unemployed you are still legally required to make the necessary payments.

Your failure to do so can result in various different actions being taken against you including debt collectors coming to retrieve the necessary funds, getting issued with a court order to recover the outstanding money or in some circumstances you can be put in jail until you make your past due child support payments.

You can see now why Child support is a high priority debt that needs to be paid before many other debts.

There are State Departments that have wide reaching powers to collect the past due money.

If you can't pay this money then contact them as soon as possible and work out an arrangement where you can pay off the outstanding amount by installments and then include this into your budget and prioritize it accordingly.

There are so many other areas that are affected by non-payment of child support that can impact on your ability to clear the rest of your debt including the sale of your assets to cover the cost and liens on your assets to stop you borrowing against them to clear debt.

Once your past due amount exceeds $1000 the debt will be reported to the credit reporting agencies and anyone who accesses your credit reports such as creditors, insurance companies, landlords and so on will see that you have fallen behind in your payments and this certainly doesn't help your cause when trying to sort out your debt problems.

Make it your priority and make your life easier in the process.

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Finding A Debt Consolication Free And Non Profit In MI?

If you're seriously interested in knowing about debt consolidation, you need to think beyond the basics. This informative article takes a closer look at things you need to know about debt consolidation.

Hopefully the information presented so far has been applicable. You might also want to consider the following:

Green Path is a debt consolidation free and non profit in Michigan. This debt consolidation firm offers an array of services when it comes to taking control of your finances.
Green Path provides free counseling and budget plans that are customized to the needs of each individual.

Their budget assistance is personal and arranged to fit your lifestyle. To begin with you are asked a few key questions about how much outstanding debt you owe, and how much money you earn. When that is finished you will be given an appointment to meet with a certified credit counselor to talk over your options. You will need to bring statements from all of your creditors and a copy of your credit report. If you do not have a credit report you can purchase one from Green Path.

The counselor will help you to figure out all of your options and provide you with a budget and plan of action. You will have 2 choices, to pay the debts yourself or to pay your debts through Green Path. You will have an opportunity to choose.

If you choose to join a debt management program through this debt consolidation free and non profit in Michigan, the counselors at Green Path will be available to answer any of your questions any time you need help, free of charge.

Green Path has pre-filing bankruptcy counseling for a fee. Anyone contemplating bankruptcy is required by law to seek bankruptcy counseling before they are able to file. By taking advantage of a debt management your counselor will be able to get your creditors to lower interest rates, waive fees, and stop collection letters and calls. You will be able to pay down your balance much faster. You may also be able to get a discount on the debt itself. If you are still receiving collection calls and/or letters after 90 days you should refer the creditors to Green Path.

You will be able to consolidate all of your debts into one payment to Green Path. They will then forward all your payments on to your creditors. This is a great alternative for those with many credit accounts all due at a different time. Your counselor well arrange an easier payment plan for you and also make all of your payments due on one convenient date. After completing a debt management program you will feel the personal freedom of living a debt free life.

Green Path will send you a monthly statement showing how much money was sent to them and when and how much was sent to each creditor. Credit counselors are available to answer any questions you may have. Green Path's credit counselors will work with your creditors to stop repossession, foreclosure and even utility shut off.

Our home and our car are our most important possessions. Credit counselors will make these a priority when calculating how the money will be disbursed. They can help you get back on track so your payments will be brought up to date.

Green Path will work with consistency to make sure all of your debts are paid on time each month. This will improve your credit rating immensely and we all know a good credit rating is paramount if you ever need to borrow money for any reason.

That's the latest from the debt consolidation authorities. Once you're familiar with these ideas, you'll be ready to move to the next level.

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Avoiding Debt Consolidation Scams

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Debt Management: Freeing Yourself from Debt

The most common mistake regarding debt accumulation is that people take it lightly and believe that if they keep paying the monthly quota, they will stay afloat. Though it is not the way to deal with debt, this technique may work for a while, but in time, interest charges will grow, and the person will become delinquent. This worse case scenario happens everyday and everywhere in the United States. Even then people still take it lightly. They even get used to the idea of being chased by creditors or any other agencies. Bearing in mind that this kind of situation also affects your health, peace of mind and your current lifestyle; therefore your life changes radically when you are in debt.

After showing you this particular case, a very common occurrence, you may think that in order to stop the harassment from the creditors and the collection agencies, the only possible solution would be to file for bankruptcy. That is when debt management comes into play, as a hero, who saves the day.

Debt management services can be found anywhere in the Internet. However, not all companies can bring a quality in service. But that is a topic that we will deal with in the future. Today, we will focus on the benefits of debt management.

- How does Debt management work? -

Debt management is a debt solution method that has several basic elements. Debt management companies help people deal with debt problems. People can receive debt reduction and the counselors from the debt management service will arrange everything for the person to make a single monthly payment instead of several, saving the client time and effort.

- What are the basic elements of Debt management? -

There are two basic elements within debt management: debt negotiation and debt management itself. But there is a third element we call Debt Guidance. It is a way of showing the debtor where he/she can learn ways of staying debt free in the future. We do not only we help you regain financial stability but also teach you how to sustain it.

- Explaining each basic element from Debt management -

Debt negotiation:
A professional negotiator from the debt management service will contact your creditors and make a deal in order to reduce your current debt as low as possible. Creditors find the use of debt management services engaging. They know that people are interested in paying off the original debt, and that is what concerns creditors the most.
Debt management:
The counselor will set up a payment plan for you that would meet your monthly quotas and will also make sure you do not fall behind on your payments and make them on time. It is very important that you do that when it concerns the full amount. Creditors will see that you are serious about paying your debts off.

During your time in the debt management program, you can also get some professional advice from the counselors in order to learn from your current situation and how to avoid it.

- Benefits from Debt Management -

By applying to the debt management program people will get:
- A reduction of debt that has to be paid monthly
- Improvement in your credit rating and your creditors are open for proposals.
- The collection process stops and also any harassment method.
- The debt payment process goes smoothly, and it is based on the client's income

An important point to keep in mind is to be very careful when choosing a debt management company. You should look out for a company that has a respectable web site and a BBB icon on it. A good way to be sure that when dealing with your money will be serious, and that the debt management company is seriously committed to working for you.

We have different articles of interesting topics and current and former clients’ experiences with our programs. Take a look at the different situations on Debt Management debt related topics that people can fall into and how to keep yourself a debt free person.
Check these links to learn more:

http://www.credit-card-debt-negotiation.com/debtManagement.shtml

http://www.credit-card-debt-negotiation.com/debtFree.shtml

About the Author: Jennifer Siegel is a contributing writer to http://www.credit-card-debt-negotiation.com/ Is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy.
For Free Information on Debt Management and Debt Help Consultation, call toll-free 1-877-850-3328

6 comments | Posted in » debt, debt management, finance    

Second Mortgage a Good First Step

A second mortgage can be the first step to climbing out of debt, especially for homeowners who have bad credit. A second mortgage is a loan taken out in "second position" on a property that already has a mortgage. There are fixed-rate loans, adjustable-rate loans and home equity lines of credit (also known as HELOCs). Fixed-dollar-amount mortgages are the way to go when you need all the money at once. A HELOC is a credit line that can be drawn upon as needed up to the limit of the loan.

"Bad Credit" Second Mortgages
Your right to credit is guaranteed by the Equal Credit Opportunity Act. You can't be denied credit based on race, gender, marital status or ethnicity. But how much money you can borrow and how much interest you will be charged will depend on your credit score.

Credit is easy to get and hard to control. Not using it properly will get you a low FICO score from the three major credit bureaus. Generally, a score of 680 or better signifies good credit. Scores in the 680-620 range are still considered good, but will cause creditors to take a second look before lending you money. 620 and lower, and you are in the bad credit range.

Here are some indications that you are in bad credit territory:

Author Bio
Mike Hamel is the author of several books and the Senior Writer for AIM Techs (www.salesandmarketingllc.com), an Internet marketing company that specializes in improving visitor-to-sale conversions using proprietary software and advanced SEM techniques.

4 comments | Posted in » credit, debt, finance, homeowner, mortgage    

Home Equity Can Save You from Financial Crisis

This Wealth Building article is provided by Articleteller - The Free Article Directory http://www.articleteller.com

Cornie Herring is the Author from "StudyKiosk-Credit Basics"- www.studykiosk.com/creditbasics. "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy.

1 comments | Posted in » debt, financial, home equity, income