FINANCIAL FREEDOM

Your complete guide to achieve financial freedom. Proven tips, tools and tactics for you to achieve financial freedom. Make money, save money and effectively manage your money.

Tips To Avoid Bankruptcy

Written by Dian Herdiana on 7:22 AM

When individuals or businesses cannot meet with their financial obligations, many make the assumption that the only solution is bankruptcy. That is not always the case though.

If the right steps are taken from the beginning, you can keep yourself and your family out of financial trouble and away from bankruptcy.

First off, start by educating your children. Many of us growing up weren't presented with the tools and knowledge to establish and maintain good credit and keep away from the scare of bankruptcy.

Parents need to be honest with their children about finances. Teaching children that hard work, no matter the job, has its rewards and if you spend on a budget, there
will never be a fear of bankruptcy.

Establishing a budget is also key in the prevention of bankruptcy. You cannot spend what you don't have. Many people today have multiple credit cards and are in essence spending money they don't actually have, plus more for interest.

So much so that people are paying off credit cards with credit cards and causing a terrible chain reaction. Spend what you can afford, after the bills are paid.

But you will want to make sure you have something socked away for an emergency. Something along the lines of two thousand dollars is a good base to have stored away for an emergency.

It is another step to take to keep out of financial trouble. Probably the most important thing though is to watch your bank account. Don't get yourself into a
situation where you are overdrawn.

The fact is more than a third of adults rely on their banks overdraft to keep them going on a month-to-month basis. Such actions are ones that lead individuals on a path to bankruptcy.

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Why Consolidate Your Student Loans?

Written by Dian Herdiana on 7:52 AM

Once you have graduated from a college or university, you need to start thinking about the loans you needed to get through these years. They must be paid back in a timely manner in order to keep a good credit rating for such times when you may need another loan to purchase a home or car. For some students who have a few student loans to repay concurrently, it can be a financial drain on their family finances. That is where student loan consolidation comes in.

Student loan consolidation basically consolidates all your student loans into one loan so that it is easier to manage and make payments. When you are getting a student loan consolidation whether from the government or the private market, your existing student loans are paid for and erased by the student loan consolidation lender.

The balances are transferred to the new student loan consolidation. Thus you start a new loan and only needs to make a single payment each month.

There are many advantages to using student loan consolidation. The interest rates will be lower since it takes the average interest rates of your previous student loans. Thus due to government legislation, the maximum interest rate cannot be higher than 8.25 percent.

It becomes a lot easier to manage a single student loan and payment is easier. The repayment options are quite flexible. For federal student loan consolidation, you can opt to start repaying after you have graduated from school. There are also several other options.

Another beneficial side effect of student loan consolidation is that it can also improve your credit score. Since you are effectively clearing all your old student loans and taking a new one, your credit score will increase and this is important if plan to take other types of loans in the future.

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Quick Easy and Costly is Advance Cash

Written by Dian Herdiana on 6:37 AM

Have you at all been in the kind of monetary situation where you are going to do anything for some extra money but you still managed to get by in all events? Bear in mind how you just got by because that could be a lifesaver to hang on to.

Cash advances are not things that have to be infatuated lightly where you think "oh an simple way to get some extra money, let's do it." They are not things that you are going to use and be satisfied about unless you are able to build the repayments that are laid out for you in the contract that you sign when you apply and profit the money.

Advance cash is immediate and simple to get no substance what your monetary condition is, but the major thing to bear in mind is that most men and women who get these cash advances are able to make the periodical repayments and they do not get into any trouble for not making the repayments. This is where numerous men and women are going to not succeed and get into trouble; not making the periodical repayments are able to verify to be costly to you and your relatives. You don't desire to put your relatives under any unnecessary pressure or any strain because it isn't their difficulty -- you are the one making the monthly repayments so you have to make sure that you are able to make the repayments before even thinking about applying for a cash advance. Otherwise it is going to be more costly than you think and the amaze you receive is going to not be the cash in your account it is going to be the repo man coming to your door asking for your belongings. Do you really want that hassle if you are not able to make the repayments? Obviously you are going to require a huge cash advance before that happens.

Think before you make a decision; these decisions are able to be life altering and there is no going back once that contract is signed. Check the small print and remember the most important little pieces of information that they want to hide are in that small print, so read carefully.

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Habits and How You Got There

Written by Dian Herdiana on 6:36 AM

The situations we find ourselves in and in particular where this involves financial difficulty are often caused by the habits that we have. Humans are habitual beings and most actions in our life are caused by the habits that we have adopted which are very often difficult to break.

None more so than habitual spending on the wrong things or the things that we don't need but feel we want.

This is going to take a bit of work on your part to have an honest look at the way that you spend money and see if there are any habits that are attached to your spending that caused you to get in your current financial strife.

This might be as simple as having the desire to have the latest fashion clothing at all times or to be seen in a brand new car.

It could be that you prefer to eat out all the time rather than cook your own meals at home because that is something that you've always done.

There could be any number of habits that are causing you to spend money were you shouldn't.

What is causing you to spend money when you should be saving?

What is causing you to go into debt and the stress that goes with it for the sake of having what everybody else has or what currently happens to be trendy?

You could just be in the habit of buying the wrong food every time you go shopping simply because you don't have a shopping list written in advance where you know exactly what you should be buying and sticking to that list rather than buying whatever takes your fancy.

Sit down with a pen and paper and write down the areas where you think habits are affecting your life and your decisions with the handling of your finances. Most people if they are honest will be able to come up with a reasonably long list of things that are affecting their decisions in life and once these are revealed you can go about changing them and thereby changing your whole lifestyle where you understand the importance of the balance that will bring about health, happiness and financial well-being.

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Consolidating Your Debt

Written by Dian Herdiana on 6:33 AM

Consolidating your debt can help you to manage your debt more easily by helping to pay off many creditors at once with the use of another loan.

While this is generally only a transfer of debt from one place to another you can often get better interest rates on these new loans, particularly if you get it through your bank as a personal loan or by using your home as equity and that in itself can save you money.

By consolidating your debt at a lower interest rate you will be able to reduce your debt faster and in the process have the ability to pay off your high interest debts sooner.

It might also give you the capacity to grip superiority of saving money by beginning your loan repayments bygone and occasionally you can get discounts for well-paid debt on time.

Having one loan rather than a number of individual debts can make your budgeting a lot easier and can also reduce the number of debt collectors who could be calling at your door seeking payment of outstanding debts.

If you do decide to consolidate your debt then calculate precisely how much you need, to cover the various debts that you want to clear, and use the new loan to pay off that debt in a second if not you may be tempted to use the money elsewhere and in doing so make even more debt.

It might even be worthwhile having your new consolidated debt payable over a longer term to reduce your monthly payments and help you to focus on other more important or higher interest debts sooner.

The whole idea of debt consolidation is to improve your financial position and you should be looking at ways that you can do this. You must make sure that the interest payable on your new consolidated debt is fixed at a rate that you can budget for as it is too risky getting a variable interest rate loan where the rates could rise and leave you in a more difficult position than you would have been had you not consolidated.

If you are working with a credit counseling agency then discuss your intentions with them beforehand and get their expert advice on what the best solution for you will be.

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Child support

Written by Dian Herdiana on 8:40 AM

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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Gain Control With Budget

Written by Dian Herdiana on 6:43 AM

Once you have calculated precisely how much money you owe then it's time to make a budget that is going to assist you to use your income more efficiently by covering all your necessary expenditure and working towards the elimination of your debt.

A budget can be prepared in a book or more effectively online using a program such as Excel.

Now when you prepare your budget you need to take into account everything that you can think of relating to income and expenditure and this budget will need to be updated on a regular basis as more things come to mind when there are changes in your financial position.

This is why it makes it a lot easier to use a program such as Excel where totals can be added quickly and you will be able to see in a matter of seconds which direction you are going in and whether the steps that you have made have resulted in positive changes towards your financial well-being.

Where you are unsure about specific parts of the budget such as how much money you spend per week on food and other essential items, you will have to make an estimate initially until you are able to take notes the next time you go to the shops and see precisely how much you spend.

Once you get some of these figures you will be able to determine whether you are overspending in particular areas and what you can do about reducing such expense.
Your food shopping is one area where you can save a considerable amount of money because most people don't have any strict limits on their food spending.

Once again changes can only be made if you know precisely what you've been doing in the past and where you can make the changes in the future.
It might mean that you have to completely change the types of foods that you are buying and often the benefit of doing this is you improve your health along the way by buying food that is better for you.

Budgeting is your way to gain control over your finances once again. In fact it is the only way for you to gain control. It is a lot easier than you might expect and once you begin to use a budget you will wonder how you ever managed your finances in the past without having a budget.

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Borrowing from Friends and Family

Written by Dian Herdiana on 6:40 AM

There are many factors that you need to consider before borrowing from friends and family.

First and foremost you have to discuss, with whoever you are borrowing from, your financial situation so they are able to make a decision whether or not to lend you money based on whether they are comfortable that you are able to repay them.

There is no quicker way to lose friends or cause family strife than to get in a situation where you have borrowed money from them and cannot pay it back when they need it.

It is also recommended that you only borrow money from people who have excess funds that they have invested elsewhere and where you can pay them interest for the use of those funds so that they aren't losing out on the deal.

In situations like this you will be able to borrow money at a lower rate than you could get from any of the financial lending institutions and the person lending you the money could also get a better return than they would get by investing their money in those same institutions or at the bank.

So it is quite possible it could be beneficial to both parties in the deal but once again I need to stress the importance of total disclosure of your financial position as they need to know that to determine whether they are happy that you are a safe investment or not.

Friends or family should not feel obliged to lend you money no matter how bad your financial position is because it could put them in a similar situation.

It is better fair you to leave the risk with financial lending institutions if you have any doubts whatsoever of paying back the money borrowed from those close to you.

Some people are only too willing to take advantage of the opportunity to earn a little more interest and if that's the case then well and good - they have decided that you are a worthwhile investment. Let them have a look at all your books and your budget and possibly even get them to help you work through your budget and to sort out a plan of repayment for their loan to you.

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Borrowing Against Your House

Written by Dian Herdiana on 4:05 AM

There are pro's and con's for borrowing against your home and they all need to be taken into consideration before you proceed with any additional borrowing.

On the one hand the money you can borrow on your home will be of a lower interest rate than most other forms of loans and this can help you to reduce your monthly repayments by using the house money for clearing more expensive debt. With the ability to spread the term of repayment over a much longer period you can generally make quite an impact on reducing your monthly outgoings.

Use your budget to determine how much you are paying on all your outstanding debt and then calculate what the payments would be if they were all consolidated under the one loan against your house. This will show whether that is the best decision to make to help you manage your finances more easily.

Where house prices are rising, you will have increasing equity in the home that will allow you to borrow more against it since the time you originally arranged your mortgage.

The downside of borrowing against your home is where you are already struggling to make your home mortgage payments and by borrowing more you will be putting your house on the line and risk losing it. You certainly don't want the banks to foreclose on your loan and if that looks eminent then it would be unwise to increase your borrowings.

If you calculate that you will not be able to make the additional mortgage payments then it is better to sell off other items that you have borrowed against to reduce debt elsewhere rather than risk losing your home.

It might also be necessary to consider downsizing on your home and buying something of a lower value so you can reduce your mortgage accordingly until you get your feet back on the ground.

Your home is your most valuable asset and you should always do all you possibly can to retain ownership of it.

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Discover A Favorable Consolidation Debt Elimination

Written by Dian Herdiana on 6:31 AM

How to Discover A Favorable consolidation debt Elimination

There are debt consolidation services for families and ancestors identically. If you are an discrete, before the debt consolidation services are going to setup a program that works with your individual income. a lot of of the services offer private counseling; and others even include mental support while offering you a plan that going to assist you reduce your debts in a timely manner.

a lot of of the online credit relievers are going to put reducing your debts first while they work with your individual needs. They may seek the best solutions, while walking your through the details at the same time. If you have business or personal debts or both, then the few debt consolidation counselors are going to discover away to merge the payments into one periodical installment.

Few debt consolidation services offer to assist individuals to reduce their bills in both business and personal debts to assist them to avoid bankruptcy. The experts are going to negotiate your contracts or else your debts to get the best solution for paying off your debts. a lot of online debt consolidation experts possess degrees and acquaintance in one or auxiliary fields, including law, psychology, and economics nearby other expertise in "lenders credit determination."

If you relate all the knowledge, expertise, and degrees, you are going to see that various of the debt consolidation experts have what it takes to negotiate secured and unsecured debts and creditors. Some of the debt consolidation experts are going to flat relate their expertise-- paired prep their nicely-laid out in the flesh plans--to cultivate a tactic that going to take down the balance owed per month.

As you are able to see, if you are overcome by debts, then the debt consolidation experts may be of great benefit. However, before you receive this expert consultation, you have to first find the right debt consolidation companions, since various organizations for debt relief are not what they appear.

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