Debt Solutions Group

How to Get out of Debt

admin — Thu, 06 Jan 2011 01:29:20 +0000

Being in debt can really hurt you. First of all, the constant calls from debt collectors are annoying and not paying bills on time can lead to late fees. The most important issue you will have with debt is having a poor credit score. Having a good credit score is important for securing loans, getting a decent mortgage, and sometime even for a job. I would like to share with you some debt advice that can lead to an increase in your credit score and help you get back on track financially. The first bit of advice I have for you is to gather all of you bills. Place them in front of you so you get an idea of what you have to get rid of. Your next collection is to have all of income from all of your jobs. Once you see what you have coming in and what you have to get rid of, it is time to get rid of your debt. First step is to dedicate one bank account where you will deposit your pay check. Then you will take all of your monthly bills and add up the minimum payment. For example if you have three credit card with minimums of 20, 25, 23, then you know every month you will have to pay 68 dollars. Go call up you bank and set up automatic payments with you bills so they will be covered. Now you will set up a budget. On a separate piece of paper, add up you mortgage, and regular monthly bills like food, water and electricity. Do not forget to add up the monthly bills you just set up. For this next step it will be different for everyone. Go through the first month on this budget and look at what you have left at the end of the month. With the extra money each month you will tackle the rest of your bills slowly. First get rid of all these medical bills that are in collection and then head to any other small bill that you have coming at you. For some it will be gone in two months and others it may be a year to get rid of but they will be gone. Once they are gone, you may increase the monthly amount toward reducing credit card debt. By keeping on top of your credit cards and not missing a payment, your score will be on a slow steady rise. Certain factors that will lower your credit score includes but is not limited to, having a balance close to your maximum capacity, a lot of bills in collection, and late payments. Once you have all of these under control, you will get your credit back on track. One more important tip, while you are on your way to a better credit, do not even think of applying for any kind of credit card. Applying for cards that look into your credit history will automatically lower your ratings. I know if you listen to all this advice, you will be on the road to financial freedom.

Get out of debt with envelopes, no stamps needed!

admin — Thu, 06 Jan 2011 00:02:19 +0000

Envelope budgeting is a great technique if you don’t know how you are spending your money. Like the name suggests it is a simple way to exactly define how much you need or have for a variety of categories in your monthly spending using envelopes to store the money. The theory is: grab your salary, get a bunch of envelopes and write down on each one the things you need to pay for: groceries, telephone, internet, health care and so on. After you created your “must-have” envelopes and if you still have any money left, create some envelopes to enjoy your life too, like: dining out, movies or whatever you like. With that you will know exactly how much you need in your monthly expenses, and you will know for sure how much you have to spend for the “non-mandatory” needs we all have. You can use the envelopes itself, but there is also a lot of financial software out there that uses this budgeting method like Mnvelopes or iBank for Mac. Check out more about envelope budgeting on Dave Ramsey website where you can a lot of other debt advices.

Debt advice for the befuddled: chart out your debts

admin — Wed, 05 Jan 2011 00:03:09 +0000

Many people view debt in one of two ways: it either becomes a stress-factor to get out of debt, or they ignore it. The people who stress over debt often can make an earnest approach to rectifying their debt situation. Those who ignore it face a deadly growing problem that can lead to bankruptcy. Sometimes they do not know how to tackle their debt. The best debt advice is to chart out your debts and put small amounts money weekly toward fixing each one. It is easier than assumed. Take a look at where your money is coming in and look at where it is going out. Create new savings accounts to make them dedicated to debts. Just like a savings account, create a “debt account”. When it reaches enough money to sastify a debt, make the payment in full. Build a budget and stick to it. Inside that budget, build a section for the “debt account”. Put money in to that “debt account” each week. This requires discipline, and if money can automatically be deposited to that account through a workplace direct deposit program, utilize it. Getting out of debt will be quicker than you think by focusing energy on solving your debt problem.