Get Rid Of Your Credit Card Debt And Start Investing

Eliminate credit card debt from your life, and you will eliminate a lot of
problems from your life. It is very easy to be trapped by credit card debt;
everybody loves that plastic.
Getting out is a different story. Yes, it is complicated, but it is not
impossible. You may only need a little help in doing so.

If you do not have too much credit card debt, the first thing you may want
to try to do is take advantage of zero interest rate offers. Pay down your
interest rate debt and put the balance on a zero rate card, then start to
pay off the principal. This will work if you have good credit, since the
credit card companies will make you this offer. Just remember that this is
an introductory offer, usually for about six to twelve months; if you make
large payments on this card, you will be able to pay the whole loan off
during this period and be done with credit card debt altogether. If your
credit card debts are large, this solution will not work, since you will not
be able to make large enough payments to pay the debt off before the end of
the introductory period.

The solution if you have high credit card debts is to use is either a home
equity credit line, or obtain the services of a credit counseling company.
You will choose a home equity line of credit if your credit card balance is
very high and you are paying high interest rates on those balances. By using
your home as the collateral for a loan, you will obtain an interest rate
which is much more favorable than the high credit card interest rates. You
then pay off the balances on your credit cards and just pay the mortgage
bank for your equity loan. The other option to consider is the services of a
credit counseling firm or a credit elimination firm. The role of a credit
counseling firm is to negotiate with your creditors to lower your monthly
payments to make them affordable for you. The first thing they will try to
do is get the interest rates lowered so that you are paying off part of the
principal each month, instead of just paying interest. A credit elimination
service should really be considered as a last ditch effort if you consider
your debt an extreme case. These companies will try to negotiate lower
balances on your debt, so you don't have to pay off as much and you can get
out from under. However, since the credit card companies are not getting all
of their money, you will not be considered a good risk for the future.

So you see you can get rid of your credit card debt. It may take some
research, a measure of determination and a lot of phone calls, but it is
much better than being drowned in those bills each month because you only
pay the minimum.

About The Author: Focusing on informating about investing, Johnathan Bakers
writes articles principally for http://www.debtania.com . You can find his
articles over at http://www.debtania.com/howtoeliminate.html and other
sources for eliminating credit card debt knowledge.

Try To Consolidate Debt Before Bankruptcy

People who have debt problems very often give in to unsupported myths and
hearsay without ever taking the time to truly understand the law, and the
implications of bankruptcy. So those people who have huge debt need to be
aware of a couple major factors before running off to file bankruptcy on a
whim.

It's common to hear that bankruptcy will affect your chances of getting a
line of credit. In this market, many lenders are willing to take just about
any chance due to the fact that the market has become so competitive.
Naturally, the interest will probably be much higher, and the amount of
credit much lower, but regardless, it is possible.

As for the chance at owning a home, it's been known for lenders to approve a
mortgage in as little as 18 months after a person has filed for bankruptcy.

Here's how your bankruptcy can affect you and your money. Most of the
savings and pensions are exempt in bankruptcy from your estate. Therefore
these accounts are safe and will not be liquidated. If you have tax liens
that are not paid, those are usually not forgiven. This is something that
you should think about before filing for bankruptcy.

You should look for a a good financial adviser or credit counselor to help
you form a financial planning strategy.

It's not easy to decide to file for bankruptcy. You've probably gone through
a lot just trying to avoid it at all costs if you're like most people, but
there comes a time when even trying to consolidate debt does not work. After
every other option seems to be exhausted, it may be time then to find a good
bankruptcy lawyer.

The best way to find a bankruptcy lawyer is through a referral.
Perhaps from family members or friends who have done the same.
They should be able to give you a good recommendation since they've gone
through it themselves. If you have seen first hand through these people how
the lawyer has conducted himself competently, then you can probably feel
good about obtaining him for his services.

If there is nobody that you know to recommend a lawyer, or if you just don't
to go asking around, then the local yellow pages under 'attorney' should
help you find someone in your area rather easily. Be sure that the lawyer
you choose can handle your case without the burden of an already tight
schedule and heavy case load.

Once you schedule a consultation don't be afraid to ask him questions. He's
there to help you, not scold you as it sometimes feels. Give he or she the
details of your case, let him address the questions you might have, and find
out what his fees are.

Now you're on the road to fixing your financial situation.

If you don't have a bankruptcy lawyer in mind, you may want to consult the
yellow pages in your phone book. Bankruptcy lawyers are listed in a special
section under "attorneys". When choosing a bankruptcy lawyer, you need to
keep a few things in mind. You want to choose an attorney who does not have
such a heavy case load that he can not handle your case. Try scheduling an
initial consultation. When you meet with your potential bankruptcy lawyer,
make sure to ask questions. Take time to discuss your case, address any
questions you might have, and discuss his rates and fees.

About The Author: Focusing recent findings in credit consolidation, Clinton
Maxwell works first and foremost for http://www.debtania.com . You can learn
about his writings over at http://www.debtania.com/negotiatesettlement.html
and other sources for negotiate debt settlement tips.

Consolidate Your Debts With Home Equity Loans

Your home is your biggest asset. It does not just provide you shelter; it
also comes to your aid when you are in financial distress. The equity of
your home, built over the years, can be used to obtain loans by acting as
the collateral. You can find two types of home equity debt, namely in the
form of home equity loans and also in the form of home equity lines of
credit otherwise known as HELOCs. Both of them are described as second
mortgages, because just like the primary mortgage, the equity loan is also
secured by your property. But unlike the first mortgage, the equity debt is
repaid over a shorter span of time. The first mortgage is usually repaid
over a span of 30 years, whereas the equity loan is usually paid within
fifteen years. However, there are exceptions and the repayment period may be
as short as 5 years and as long as 30 years.

The growing popularity of home equity loan generally coincides with the
recent surge in property value and relatively lower rate of interest. Thus
more and more homeowners are turning to home equity loans for managing their
personal debts. Other advantages of the home equity loan also include lower
interest rate and tax deductions, making this mode of debt even more
popular.

So far as the equity rate of interest is concerned, it is slightly higher
than the first mortgage, but considerably lower than credit card loans or
other consumer loan interests. Because your property is used as the
collateral in equity loans, lenders consider them as secure as the first
mortgage.

The tax deduction feature may be the biggest reason behind the huge
popularity of home equity loans. Mortgage debt comes with attractive tax
savings compared to lets say consumer loans, thus it is highly cost
effective to consolidate your other debts with this loan and enjoy lower
interest rate plus tax deduction benefits at the same time.

With these benefits, namely considerably low rates for equity debt and tax
deduction on the interest payments, it is no wonder that a number of
homeowners are utilizing the equity of their homes to meet further expenses
and debts. True, it is a mortgage on your precious home, but if you are able
to pay back the entire amount within a short span of time and you have
stable income, home equity loan is a good option for much needed credit.

About The Author: If you want to secure a Home Equity Loan go to Susan's
site at http://www.superbhomeequityrate.info and
http://www.superbhomeequityrate.info/best-home-equity-line.htm.
You can read more Home Equity articles at http://www.mynicheblog.info.

Students Need To Be Aware Of Debt Management

If you haven't heard, student loan interest is now a tax deductible item on
your personal tax return. On August 1, 2005 the cap on the old maximum
student loan rate was lifted, and the new one was pushed into effect. So
exactly what is going to be the affect on your existing student loan going
to be you may be wondering. How will this now change the end result of the
parent or students tax return?

A lot of the associations that offer student loans told students that their
best bet was to consolidate the existing loans and lock in the new lower
interest rate, while it was still available, so that the new rate would
affect their upcoming tax returns.

The interest rate of a federal subsidized loan does not have the same huge
affect as it does with a private or unsubsidized loan. When obtaining a
deferred payment loan, which will also defer the interest payments on the
loan, can drum up huge amounts of additional debt for the borrower since the
interest actually accrues interest leading to a huge amount of debt very
quickly. So this should tell you the huge effect the new law will have on
those with student loans.

The government, over a span of the last couple of years or so, has tried to
promote the advancement of continued education, therefore allowing a
deduction to be made on the interest payment of student loans.

This deferred payment arrangement will allow the student to borrow the
money, attend to their studies without the worries of payments over their
head, and then after completing their education and obtaining their degree
beginning their monthly payments. These types of deferred payment plans come
in to types from the government; unsubsidized and subsidized.

For students with need of financial assistance, the subsidized is prevalent.
On this type, the government will pay the interest that is accrued until the
time that the student is finished with school. The unsubsidized is the exact
opposite, and the student will be responsible for the interest payments as
it is accrued.

Lenders have become wise to the benefits for them when it comes to deferred
payments plans, in which the interest builds on top of the interest each and
every month, as it builds onto their balance every single month. This
generates huge income for the lender.

The private loan sector has made a frequent business with the deferred
payment loan, due to the fact that they are free of federal lending
requirements that are normally attached to this loan type.

It's usually fairly easy for these lenders to grant these loans because
students don't usually realize the effects that these loans are going to
have on their balance in the beginning, and blindly except and sign a
contract on these terms. Usually at this point in a students life, debt
management isn't a prevalent concern and the lenders are aware of this.
Advice to these students should be to find a good credit counselor to assist
them in looking over their choices before hastily signing on for any loan.

About The Author: Clinton Maxwell writes especially for
http://www.debtania.com , a website with topics around managing money and
finance. You might discover his work over at
http://www.debtania.com/personalloan.html and various other sources for
personal loan to consolidate debt knowledge.