How to Decrease Your Loan Interest Rate

Taking out loans is useful for a variety of purposes. You might want to consolidate credit card debt or take care of necessary repairs on the house.

Paying back the loan can start to feel stressful after some time, especially when you look at the interest rates. Fortunately, you can use some strategies to try to get the interest lowered.

Negotiate a Lower Rate

One possible solution is to simply ask for a lower rate. Call the loan provider to find out what options are available. If you have consistently made regular payments or even extra payments, use this information as evidence as to why you might be entitled to a lower interest rate. 

Remember that the loan provider might deny your request, but at least trying this strategy is important.

Refinance Your Loan

Another way for borrowers to get loan modifications is through a refinance. Due to an improvement in your credit score or lower interest rates in the market, a refinance may be available. Depending upon the type of loan you're refinancing, you may be able to get a cash-out option as well. 

For example, when people refinance their mortgages, they sometimes do so with the cash-out option. You can put that extra money toward other home modifications or debt while still getting a lower interest rate.

Improve Your Credit Score

Your credit score is one of the elements on which your interest rate is based. Improving your credit score can, therefore, assist with getting a better interest rate. Take a look at your credit report to find out what factors are hurting your score the most.

Having too much debt without enough available credit seriously influences your score. Try paying off as much debt as possible before asking for a lower interest rate.

Try Again

If you've asked for a lower score and were rejected, you should try again in the future. Interest rates themselves can change, and so can your financial situation. 

In the event that the lender denies your request for a lower interest rate, ask what the determining factors were in the decision. By doing so, you will know what you have to work on before submitting another application for a reduced interest rate.

Don't feel as though interest rates are destroying your financial situation. In many cases, you are not permanently locked into your current interest rate. Explore some possibilities for getting a lower rate either now or in the future.

Is Your Debt Getting the Best of You? How to Decide Which Financial Option Suits You

Sometimes the mortgages and credit card debts can seem insurmountable. No matter how many months you pay, you never seem to manage the large amounts of debt that have accumulated over time.

Debt can be particularly overwhelming if you don’t have a plan for paying it off. It can be discouraging when you owe so much that you cannot even determine when you will get it all paid off. 

And no matter how much money you earn, you may feel like sometimes all you are able to do is pay your monthly bills.

The good news is that there are plenty of options for getting out of debt, and they are solutions that anyone can make use of. If you follow a few simple financial tips, you can pay off your debt and be debt-free in a year or two depending on the amount you owe.

Organize Your Bills

Before you can pay off what you owe, you have to determine your total debt. Analyze your bank statements and your credit card statements from the past 12 months. 

Take note of all the recurring loan bills and other fixed expenses you have. Be sure to include interest rates, total balances, and any additional small payment required on top of the total debt.

Next, you want to check your credit report to see your current loans, lines of credit, and any loans you might have in default. You can check your credit report annually online for free. Be sure to analyze your credit from all three credit bureaus, as some lenders don't report to all three of them.

Once you know what your total is, you're ready to start paying your bills and be on the road to living a debt-free life. All you need to do is follow these simple strategies.

Pay More Than Your Minimum Payment

Analyze your income. See what you can do to earn additional income to pay off your debt, then budget your expenses. Finally, decide on how much extra money you can put towards your debt. Paying more than the minimum amount on credit card debt will save you money.

For example, if you have a $10,000 balance on your credit cards, there's a 17% APR and let's say you have a minimum payment of $350. 

If you only make that minimum payment, it will take you four years to pay off the balance, and you'll end up spending about $4,000 on the interest rate. On the other hand, if you paid $600 a month, you could repay that debt in less than two years and lower your interest rate.

Prioritize Your Smaller Debts

Another option is to make the minimum payment on all your credit cards, except for the smallest one. Then pay as much as you can towards that one. 

This method allows you to eliminate credit card debt quickly. Once you are finished with one, you can quickly pay down on the next one.

Refinance to Lower Interest Rates

Consider refinancing your debt and getting a lower interest rate. This process can save you hundreds of dollars in interest and will help repay your debt off faster. 

By consolidating several loans into one, you usually end up with one smaller payment. You can refinance auto loans, mortgages, and even personal loans.

Save Money by With a Settlement

Another option is to call your creditors and negotiate a settlement. Often you can get a debt settlement deal for a lot less than what your monthly payment is. Again, you can do this yourself or contract that third party to conduct the debt settlement services for you.

Consider Filing for Bankruptcy

If none of these options are available to you, consider contacting a bankruptcy attorney. While bankruptcy is not for everyone, it can get you out of large amounts of accumulated debt. Sometimes starting over can be your best option if your debts have become too significant for you to handle by yourself. 

Because bankruptcy comes in many forms, it is usually best to talk to an attorney to see what options are available to you.

There are many different options to get out of debt. However, it is important to remember that your debt should never be ignored since it will never go away by itself. You need to be proactive and use proper judgment to find options to relieve your debt.

The 2020 Quick Guide To Solve Debt Quickly

Struggling with debt has reached epidemic levels in America. According to recent data, there is massive growth in consumers' ratio approaching credit card companies to declare a debt settlement. 

The majority of these consumers have been facing many problems because of non-response from their credit card companies, making them more pessimistic about trusting banks and lenders.

Where To Turn?

Today, the U.S. economy has a severe problem, with millions of families facing many issues due to their increased dependency on lines of credit. However, they are facing financial issues and a lot of mental and physical stress, due to which they have resorted to bankruptcy. 

With this, it is a common practice among consumers to choose debt settlement programs because this process of debt elimination can help them avoid many problems in the future.




Now, if you consider these facts, you will see a clear picture. Debt settlement programs are a legitimate solution to these issues, and consumers can easily avoid many financial problems, such as having precious personal items repossessed. 

These programs help consumers consolidate their loans into a single loan amount that can be manageable and paid down quickly, which can be done by approaching a legitimate relief service.

Who to Trust?

First of all, do your homework and know which companies are sincere and yet another parasite out for your blood. That might be dramatic, but it's shocking how many of these companies prey on struggling families and individuals.

Not only will a lot of credit card or lending companies refuse to negotiate or settle a debt with you, but a lot are also unwilling to deal with individual debt relief companies as well. This is because of their dubious dealings in the past. 

It's crucial that you study up on these companies. Read any reviews you can online, look them up in the Better Business Bureau, and ask any friends or colleagues if they have dealt with any companies like this in the past.

There are also simple red flags to look out for. Like promises or "guarantees." Debt settlement companies can't promise to settle all of your debt for a certain reduced percentage (no one can). There is no "new government program available" that helps bail people out of their credit card debt. 

It would help if you also were wary of any company charging fees before they settle any of your obligations. This is important because you shouldn't have to pay anything until you reach a deal that you agree to. They also can't stop all debt collection phone calls or lawsuits. And a reputable debt collection company will never tell you to stop communicating with all your creditors.

What Can Debt Relief Companies Do For Me?

Once you do settle (so to speak) on a company you know you can trust, they can help you sort out exactly what you need and don't need depending on your specific situation. They should know which loans or debts should be tackled and which should be left alone (for now).

When consolidating what you owe, a company may be able to get your interest waived altogether, reducing your principal balance, having monthly payments reduced into a single payment that you can manage, and only have you pay off a fraction of the total amount you owe.

While some drawbacks can include your credit score is affected and possibly getting approved for credit in the future, the positives most likely outweigh these. You can avoid filing for bankruptcy and the looming prospect of repossession. Not only that, but did you know it also costs you money to file for bankruptcy? 

You can save thousands or tens of thousands of dollars that you otherwise would have had to pay not only in your balance but in interest, and you also get the added benefit of ending those harassing phone calls and emails every month or every few weeks.

The burden of debt settlement can be a long and scary road, but these are things you can do and avoid to make the journey easier. Remember that your debt does not define you, and you can always take your debt back into your hands and settle it the way you need to.

Smart Ways to Pay of Your debts Before 30

Let’s face it - no one enjoys being financially burdened by loans and debts that take up so much of our paychecks each month. Every time you take up a new loan, you are faced with more debts to pay, so less flexibility on your available cash, and more stress.

Below, we share with you some tips to help you pay off your loans before you hit 30.

Start Taking Up Side Gigs

The extra cash will always help, instead of idling away your spare time you can make more money instead. Work a second job on the weekends and do not be afraid to start small.

As you gain more experience working your side gigs - writing, painting, or even manual work like waitressing - you can start earning more.

Use a 50/30/20 Budget

Need some tips on allocating your budget? Try allocating 50% of your paycheck to necessities such as rent, food, and fuel. 30% goes into the things you might want to buy, while another 20% goes into paying off your loans.



This budgeting method is the right way for you to have a relatively flexible budget as opposed to setting a fixed amount of cash for yourself each day.

Pay Extra When You Can

If you are one of the lucky few whose monthly loan repayments are all affordable, why not chip in a little extra now and then?

The more you pay off each month, the less interest you pay, and the faster you will finish your loan repayments. Having some freelance jobs, as mentioned above, will help you to make extra payments now and then.

Focus on Smaller Loans First

If your loans start to seem a little daunting, you can implement the snowball method. This method describes how you can pay the minimum balance on all your debts, but pay extra for the smallest loan that you have.

When you have completely paid off the smallest loan, you move on to the second smallest one. Eventually, you will find yourself settling bigger and bigger debts, and you will be highly motivated to continue.

Utilize Cashback Programs

Some shopping platforms and banks offer cashback programs for your expenditure. Utilize these where you can, and shop only when these programs are provided so that you are maximizing each dollar you make.

You can also hop on to loyalty reward programs in your nearby supermarket or grocery store. The more you spend on your daily needs, the more you will be rewarded for it.

Consider Loan Consolidation

It can be challenging to manage financing a car loan, a mortgage and other debts at the same time. If you have a good credit score, you may be eligible for debt consolidation.

Compare several debt consolidation services and choose the one with the lowest interest rate so that you will only have to pay one debt instead of multiple payments.

Review Your Finances

Take a look at how you have been spending and review your financial goals, both short-term or long-term.

When you have a clearer idea of what you are striving for, it is easier to budget out expenditure for the coming months while you pay off other debts.

Should You Jeopardize Your Nest Egg to Repay Your Credit Card Debt?

The total outstanding value of US credit card debt is now over $1.02 trillion. This places a significant burden on total US household debt, and amounts to a debt burden of around $7,000 per household. It is encouraging to note that less than 50% of US households have any credit card debt whatsoever.

If we exclude these households with no debt, then the average credit card debt for indebted people amounts to $15,624. While this figure is substantial, it is also much lower than it has been in 5 years. Consider the following average credit card debt balances among debt carrying households since 2013:

• 2013 – $16,319
• 2014 – $15,876
• 2015 – $15,692
• 2016 – $15,810
• 2017 – $15,654

These numbers paint a skewed picture of the actual debt burden. Over the years, the average household debt may have declined among debt carrying households, but the overall level of debt has increased substantially. Simply put, more people are sharing the debt burden than ever before. 

This is largely due to an era of ultralow interest rates which made borrowing cost effective for so many US households. The percentage of US households carrying credit card debt has increased from 38.1% in 2013 to 45.6% in 2017, and this trend shows no indication of slowing down. 


With unemployment hovering around 4.1%, and the US economy booming, spending is on the up and up. Easy access to credit has facilitated a credit boom, even after banks and financial institutions clamped down post global crisis.

If You Are in Debt, How Should You Pay for It?

Naturally, there are concerns about how best to manage debt. Several options are available to reduce the debt burden, notably switching (transferring) debt from high interest credit cards to lower interest credit cards. 

This method is heavily promoted in the media, and by credit card companies, but it comes with a caveat: There are costs involved in transferring balances from one account to another. All the pros and cons should be weighed up against one another.

Other options include using a savings account such as a 401(k) for retirement to pay down credit cards. This is generally not advisable, since it will cause disruption to your retirement nest egg, and there are various penalties and tax consequences to contend with. 

An important consideration when it comes to credit card debt is that it is unsecured debt. This means that it can generally get discharged in a bankruptcy filing, and assets cannot be attached to its repayment.

Perhaps the most pressing question for the 50+ generation is why the debt still exists? Debt elimination, debt management, and debt consolidation options are readily available from multiple bank and non-bank entities. Sometimes, it may be a good idea to discuss the situation with a financial planner.

What’s the Worst That Can Happen with Unsecured Debt?

If there is absolutely no other way to repay credit card debt, and you risk ruining your credit profile, it is possible to use a 401(k) loan to repay credit card debt. These loans are much more cost-effective than credit cards, and the interest that you pay goes directly to your own account. 

On the plus side, there is no negative effect on your credit score. Experts do not recommend taking money from retirement to pay down credit card debts, since money in hand is more valuable than access to credit that can easily get taken away from you.

Other ways to consolidate your credit card debt include home equity loans, unsecured personal loans, and balance transfer cards. These methods should be assessed on their merits, given that there are pros and cons associated with each of them. 

It is never advisable to transfer debt from an unsecured line of credit to a secured line of credit such as a mortgage loan or a home equity loan.

You stand to risk a lot more than your credit score if you cannot make the repayment. The balance transfer card option is a viable solution provided your credit score is high. Be advised that the interest-free component will cease after 12-18 months. 

For unpaid credit card debts, you could face a loss of credit lines and a reduced credit score. You will however get to keep your existing assets, pending further litigation.

Family Finance: What To Do If You Are Drowning In Debt

Millions of families in the world have problems with overwhelming debt. Once a person is underneath the rock of overwhelming debt, it becomes burdensome to get from under it. 

Fortunately, some solid solutions still exist for climbing out of debt. The following are six things the household head can do to regain financial composure:

Cut the Cards

The first step toward regaining financial footing is to stop spending. That may mean cutting the credit cards in half, but financial freedom will be worth the small sacrifice. Get rid of cards you don’t really need, but only use to make extra purchases.

Obtain a Credit Report

The next step that a consumer should take is obtaining a copy of the credit report to see how bad the situation really is. A consumer can take steps like disputing foreign accounts and charges if that person wants to climb out of overwhelming debt. 

Take a Counseling Course

Free credit counseling courses can help a homeowner to develop healthy spending and payment habits. Some people have to take counseling before they can file for bankruptcy.

Consolidate

A debt consolidation is something that a consumer can do, but the person has to have a credit score that is still acceptable. Some financial companies will provide a high-risk consolidation loan. However, the provider may offer the loan at a high interest rate.

Sign up for Debt Management

A debt management program is another option that one may have for recovering from overwhelming debt. A debt management program involves a third-party specialist who negotiates with the lenders and then then makes payments toward the creditors on behalf of the client. 

Debt management companies usually charge a monthly fee for their services. Debt management is a good choice for a person who has more than two open debt accounts and had various interest rates on each account. The arrangement can even out the interest and keep the person’s financial plate clean. 

Speak to a Bankruptcy Attorney

Bankruptcy may be a good solution for someone who has a low annual income and truly cannot pay the bills. A Chapter 7 bankruptcy is for a consumer who does not have money left over after calculating the disposable income. 

A Chapter 13 bankruptcy is one that requires the consumer to come up with a repayment plan and offer to pay a percentage of the debt over time. It’s important to speak with a bankruptcy attorney like those at Morrison & Murff when dealing with major financial problems. 

Dealing with debt can become a major burden for many families. Without self-discipline and help from experts, it may feel impossible to overcome financial problems. These tips can help you get back on the right track and control your finances.

Debt Solutions: How to Get Your Struggling Finances Under Control

If you are struggling with finances, it can be difficult to get them under control and get a handle on your debt, but there are ways to do so that don't take a lot of effort.

Set a budget

Budgeting is important especially now in days. Having a budget allows you to have better control over your personal finances in terms of how you save, invest and how you spend your money. One reason your finances may be out of control is that you aren't keeping track of how much money you are spending. 

If this is the case, you need to set a budget. Do a monthly accounting of all your must-haves, such as car insurance, food, rent and utilities. Once you have done that, decide how much you have left over. If you are spending more than you are taking in, make cuts where you can.

Look for ways to save

Discretionary income should be the first place to cut if you are spending too much. Eat out less and go to fewer movies and concerts, for example. There may be other ways to save, too. For example, if you aren't bundling services, such as phone, cable TV and Internet, you are probably missing out on discounts. You might also be able to save on those services by not paying for more than you need. You may find you don't need unlimited data and texting on your wireless phone or unlimited movie channels through your cable service.

Use credit sparingly

You need to have good credit, but credit cards often make unnecessary purchases more tempting. Many people think that they can buy something now and pay it off later when they have more funds. The problem with that sentiment is, is that kind of mentality becomes a habit. It becomes a bad habit to the point where you find yourself in credit card debt because you’re spending too much now and paying it off later and not having enough money to do so. If you are using your credit card like free money, you are headed for trouble. 

Credit cards should only be for emergencies or for things you can pay back right away. If you are using your credit cards to live beyond your needs, you need to stop right away. Also, if you have too many credit cards, you might want to consider closing some of those accounts and limiting yourself to one and maybe two credit cards if necessary. Keep in mind that you do need credit. There might come a time where you need to take out a loan to buy something such as a house, but you need good credit, which is why you should only use your credit cards sparingly to make sure it doesn’t get out of control.

Consolidate debt

If you are carrying credit card balances, you likely are paying high interest rates. To get better control of this debt, you should consolidate the balances onto cards with lower rates. If you do so and concentrate on paying down the balances, you can slowly eliminate your debt and take better control of your finances.

Take advantage of sources of cash

If you are getting payments through a structured settlement, lottery winnings or other financial vehicle, you can work with a company like myLumpsum.com to sell your future payments and get a lump sum payment, which you then can use to pay down debt faster.

With a little planning and effort, you can get your spending under control, which will then allow you to pay off debt and no longer have to struggle with your finances.

Four Mistakes to Avoid During Debt Consolidation

Many American families are being financially destroyed by debt. With the recent economic slumps and increases in interest rates, many people saw what they’d thought was manageable debt become a mountain that loomed over their future. Debt consolidation offers hope for people in this situation.

Debt consolidation has certain pitfalls, just like every other financial decision. The following are four of the most common mistakes that people make when going through this process.

Paying More to Consolidate

Many people assume that they will automatically save money in debt consolidation. This is not always the case. While the monthly payments may be lower, they often come with higher interest rates. Even if the interest rates are lower, paying over a longer period of time leads to more interest paid over time. Use an online debt consolidation calculator to see whether you will save money in debt consolidation or end up paying more.

Another way you could end up paying more is by using an inexperience debt consolidation company. Acting too quickly and failing to investigate a company’s claims can result in you paying far more to consolidate your debt than you should. Additionally, this course of action often results in constant harassment from bill collectors, adding even more stress to the debt consolidation process.

Not Dissolving Credit Accounts

If you decide to go forward with consolidating your debt, you would do well to be fully committed. An expert from Faber Inc says it’s much harder to break out of debt when you have credit cards and accounts in use. Immediately after these accounts are paid off, they should be closed. Failing to do this could lead to ending up deeper in debt than when you started. The best way to avoid the temptation to fall back on credit is to remove it completely—this may result in some serious restructuring of your budget, but will be the best move in the long run. 

Using Your Home or Other Major Assets as Collateral

Many people use a home equity loan or refinancing to consolidate their debt. It's easy to see why this sounds attractive. Mortgage rates are relatively low, often far lower than credit card interest rates. However, you are putting your home on the line for an amount of debt that is usually nowhere near its value. If you ever cannot make the payments, you risk losing your home over a relatively small amount of debt. For most people, this is much too risky to attempt if there is any chance that payments may not be met on time. 

Keeping the Same Lifestyle

Debt is often a symptom of a much larger problem. If you routinely rely on credit, you are not living within your means. Examining your average monthly expenditures and using this to create a budget plan is a great way to get started on cutting back. Make changes to your spending and your expenses to avoid acquiring new debt while you struggle to pay off the old. Maintaining these new spending habits will also result in long-term savings and a much healthier financial future. Many people who find themselves deep in debt worry about repeating the cycle for years to come—by forming healthy financial habits now, you can avoid a future in debt.

Debt consolidation can help people to dig themselves out of a hole. Because of this, many people don't pay attention to potential drawbacks of the process. Educate yourself before beginning this process to avoid these common mistakes, and debt consolidation can help put you on the path to a healthy financial future.

Great Tips for Credit Card Debt Relief

Credit Card (Photo credit: 401(K) 2013)

After you have dug a hole into your credit cards it can seem almost impossible to get out. Although you might feel like you are in a bind with your credit cards, there are a lot of options available to you. Just start thinking about the future and leave the past behind you. 

What you have to do is think about how you are going to get your finances in order, rather than dwelling on your current financial position. Take a look at this article to see what you can learn about figuring out how to pay off you credit cards for good. Read on for some great tips on credit card debt relief.

The first thing you want to do is find out how much debt that you have. Once you can figure out how much debt you have you will figure out how much money you need to make to get yourself out of debt. This is a good way to understand what you need to do in order to get your finances in order. 

You can figure out how much you make a month and how much you spend on bills. Write out a budget for yourself and try to calculate how long it would take you to pay back your credit cards. This should give you a clear idea of how long it will take you to clear your credit card debt.

If you feel like it is going to take too long for you to pay off your credit cards, then you are going to want to look for another job, pick up more shifts at work, or consider working two jobs for a little while. All of these options are going to help you get more money regularly that you can use towards paying off your credit cards. 

It takes a little sacrifice to get yourself back on your feet and to eliminate the debt that you have created for yourself. Yet if you are serious about eliminating your debt, then you are going to sacrifice a little to get ahead.

Consolidation is always an option for you, and it helps you establish yourself further. Buy yourself a little time by consolidating your credit cards and having a budget that works for you. All it takes is a simple phone call to your credit card company, and you can have them consolidate your loans. 

You can also head down to your bank and see what they have to say about consolidating your credit card debt for you.

Use the tips for credit card debt relief shared above. Do not let credit cards scare you any longer. With the right amount of motivation you can find a way to pay off your credit cards in a timely manner. Planning ahead is the key towards figuring out how to pay off your credit cards. 

You now know what to do in order to relieve some of your financial debt. So dedicate yourself from here on out to practicing healthy credit card habits and pay off your credit cards as soon as possible.

Get your Credit Card Debt under Control for 2014

Credit cards are the culprit of far too many debts across Australia. Most people think long and hard before even considering a personal loan, but will rarely think twice when it comes to applying for a credit card. Intentions are good, and things go well to start with, but as the debt climbs and the monthly repayments grow the debt can soon become unmanageable if you don’t keep things under control. If you find yourself in a situation like this and you’re struggling to free yourself from your credit card debt, then take the first step today and discover what you can do to start diminishing your credit card debt right now.

Consider Debt Consolidation

Most people who are in a difficult situation with credit card debt often have more than one card, and sometimes have personal loans and other debts too. With this many payments to make each month it often ends up that you can only make the minimum payment off each debt – which in most cases will only cover the interest payment and doesn’t reduce your debt.

This is a vicious circle to be in, as you can easily end up continually paying interest and never reducing your debt. If you’re in a situation like this then debt consolidation could be the answer. By consolidating all of your debts into one debt with a manageable payment you can actually start working on paying off the debt you owe, rather than just paying interest charges every month.

Having all of your debts consolidated into one makes it more manageable and gives you a lower interest rate to work with, allowing you to get your debt paid off more quickly.

So, how do you find the best solution?

The most difficult step is often the first one. Once you have made started the process you will find things just get easier and easier, until one day your financial freedom is obtained. It’s advisable to always speak with a debt consolidation specialist in your area as they will be able to analyse your financial situation and put forth the best solutions for your circumstances.

Debt consolidation isn’t something which you should enter into lightly or without professional advice and you can end up making your situation worse, so make sure you seek advice from a professional if you are in any doubt at all.

Stop worrying about your credit card debt, take some solid action and get you can get your finances under control and fully manageable during 2014.


Author Bio: Nathan Rossiter is a regular contributor of money saving tips and debt advice. When he is not busy working with the team at DebtConsolidation.com.au he enjoys keeping up-to-date with the latest news from the world of Finance, and the occasional game of FIFA 2014!

Seven Easy Schemes to Clear Off Debt from Credit Cards

Credit card debt, this is one of the main problems that common people face concerning their finances. Having credit cards are tempting, these can make you spend more than what you actually earn. Excessive use can lead to more bills to pay with crippling interest rates and finance charges; making impossible for others to get out of debt. There is no automatic remedy for credit card debt but there are few steps to take in order to become debt free.

All you need is planning and budgeting, sooner you’ll find yourself getting out of credit card debts even faster than you can imagine. Study these seven steps to be able to pay your credit card bills sooner.

1) Make a list

List down all your credit cards, outstanding balances, interest’s rates, and required minimum payments. Do this so that you can easily track down your total debt.

2) Arrange from highest to lowest

The bill with the highest interest rate must be at the top, and so on, making the lowest at the bottom.

3) Calculate the total amount

Compute for the total amount of minimum payments billed for each card. So you will know how much monthly budget you’ll need for credit card payment amortizations.

4) Set a priority payment

Although there is a minimum amount being set for minimum payment, you must still desire to pay debts faster. In order to clear debts quickly, add extra payments for each credit card due.

5) Pay off one at a time

Clear off one credit card bill faster. Begin from the number 1 on your list because higher interest rates will cost more bill amount. This means, pay more than the minimum amount if you have extra cash.

6) Create a payment pattern

Continue doing this process up until the first credit card debt is paid off. Once it’s cleared continue with the second card but follow whatever amount you paid with the first one.

7) Repeat steps 1-6 until all your credit card debt have been paid off

It is important to understand how minimum payments work. When your total bill decreases, your minimum payment also decreases. That is why; it would take many years before you can actually clear off your debts if you will just stick to paying the minimum amount. So, the secret is to always increase your payment. Make it double or triple the amount. Just ignore the required minimum amount, stick to your plan. In less than a few months, you will notice that you finish paying credit card debts one at a time. Although this process will take time, be patient enough because it might take months or years before you can say you’re debt free. If you want to speed up the process, you can pay all of your debts whenever you have much money. You can also avail of balance transfers. These usually have smaller interest rates.

While credit cards exist, debt also exists. If you will only exercise self-control and practice paying debts on time, you may not go wrong in using your credit cards and not be worried of debts anymore.

Claire Reed is a finance writer for https://www.Loansforbad-credit.co. Claire Reedif is always online. If you have any questions, please, let him know!

Getting Out From Under the Mountain of Credit Card Debt

Credit cards (Photo credit: Wikipedia)

We all know that credit cards are a convenient way to pay for purchases when you're on the go or in between paychecks. According to The Nilson Report, as cited by Forbes, credit card transactions made up for a little over half of total consumer spending in 2012.

Unfortunately, those very benefits also make it incredibly easy to find yourself under a mountain of debt that could take years to pay off. To top it off, you're losing money each month in interest and fees as you pay the balances down. With a little planning, you can chip away at your credit card debt much faster, but you'll need to decide which approach works the best for you first.

Snowball

The debt 'snowball' approach to credit cards is fairly simple. Determine a budget and decide how much extra you have each month to put towards credit cards while covering all your other expenses. Cut out unnecessary spending, such as restaurant meals, as much as possible for now so you have more to put toward your debt clearance.

List all your credit cards in order of total balance from smallest to largest. Each month, put all the extra money you have toward your smallest card and only make the minimum payments on the rest. Once a card is paid off, apply the minimum payment for that card to the next card on the list in addition to whatever you're able to apply based on your budget. As you work your way through the list, you'll see the 'snowball' effect as your payments become larger and larger, working the debt down faster and faster.

The debt snowball method is beneficial in that it's easy to follow, and the results you'll see will encourage you to stick with it. But you may not be paying the debt in the most advantageous way regarding interest using this method.

Interest Order

Under an interest order approach, you'll still need to make a budget to determine what you can afford to put toward your debt, but you're changing the payment order. Instead of listing debts by balance, you'll list the credit cards in order from highest APR to lowest APR. The interest method saves you money by reducing higher interest balances faster, but it isn't as simple as the debt snowball.

Before you commit to a method of credit card debt elimination, try to decide which method is most likely to keep you motivated over the long term. While you can save more over time using the interest order method, it may not be ideal if you're the type of person who needs more immediate results to keep yourself on any sort of program.

On the other hand, if you're a numbers person, the interest order approach may work better for you than the debt snowball method because you'll be keeping a tally of your savings. Regardless of which way you decide to go, make sure to cut as much spending as possible to work down your debt quickly. 

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How Debt Consolidation Can Help You?

English: Day 3 of the protest Occupy Wall Street in Manhattan's Zuccotti Park. (Photo credit: Wikipedia)

What it Means

When dealing with debt consolidation, you’re taking out a big loan in order to pay off other loans of various proportions. Often enough this is done in order to help provide a smaller interest rate or help bring security to a fixed rate of interest. Consolidation can often occur in situations where:

• A company is about to go bankrupt
• Credit card debt needs to be paid off
• Student loans are required 

Most of the time it’s done simply to service a single loan entirely because multiple loans can lead to complications that most people tend to avoid. In addition, debt consolidation can also originate from the creation of unsecured loans that might go into yet another unsecured loan. Usually it takes place when secured loans go up against assets that may serve as a form of collateral (i.e. a house, a car, etc.) The loan’s collateralization give it much lower interest rate meaning the asset owner will then agree to follow foreclosure of the assets to help pay off the loan. 

Bankruptcy Savior

Another good reason to choose debt consolidation, especially if you’re part of a big company that handles a ton of finances, is for the amount of discount that can be gained towards the loan. When a severe situation such as bankruptcy occurs, debt consolidators will more often than not purchase the loan at a far greater discount than the usual base price. If a debtor is looking to be prudent with his or her loans, they can feel free to look around and shop for various consolidators across the countries that are able to pass these savings along. Debt consolidation can ultimately affect the abilities of the debtors and can go on to discharge these very debts while in bankruptcy. These are major business decisions that need to be thought out and considered before making any attempts at an execution. 

Credit Cards

Some people consider debt consolidation as the best choice for when it comes time to pay off a large credit card debt. Credit cards often have carried a very large interest rate, larger even than most unsecured loans that come from a local bank. The ones in debt who have large property such as a house or a car might be able to get lower rates from their loans as long as they are secured and are using a property as a measure of collateral. In this case, the gross interest and cash flow that gets paid towards the debt will be at a lower price. This allows debts to be paid off much sooner which also means less interest for the debtors to pay off over time.

Student Consolidation

Debt consolidation can also be a part of student federal loans. Existing loans are first bought by the Department of Education. Then, after consolidation, fixed interest is set based on the current rate of interest. If a student puts two or more loan types together into one consolidation loan, weighted average will establish the approximate rate in accordance with the current interest rates.

Debt Management - A Way to Clear Your Debts

Are you worried with huge slice of debts? Are you attempting very difficult to come out the economical debt trap? Everybody might have gone through economical debt relevant problems at least once in their lifestyle. Most individuals fail to obvious their economical obligations because of their bad managing economical debt. 

It can bring pressure, worry, agony and pain, if you are not paying promptly. It is appropriately compared with quicksand which is easy to fall but very difficult to come out, the more you fight to come out of snare the more you are going to drain, if you don’t have an appropriate planning. 

Following is a way to obvious your economical obligations. Few individuals obvious their economical obligations without any battle, but few individuals have to face many difficulties to obvious their economical obligations, all these because of managing economical debt. 

Take advice from managing economical debt services

You can take help from managing economical debt organizations like Fresh Finance who can settle with the lenders as your representative for smallest quantity necessary to obvious your economical obligations. You can take help from managing economical debt organizations because they are expertise in discussing with their years of experience. But you have to pay affordable fee to acquire their facility which is very minimal quantity. 

List out the debts

Create sure that you are record out all the current economical obligations to understand each economical debt and its situations before taking help from the managing economical debt solutions. You should also record out value resources like benefits, investment, home and vehicles. 

Pay off the tiniest economical obligations first

It is better to obvious your small economical obligations which add more interest in the lengthy run. It will reduce the economical debt pressure in the lengthy run. 

Savings plan

According to business experts, you should save at least 20% from your income to meet economical requirements. You can use this stored cash to pay the economical obligations. An appropriate benefits strategy not only helps you to obvious your debts, it can even reduce mental linked to pressure to economical emergency situations. Try to reduce the use of bank credit score cards and applying for new bank credit score cards until you pay off your current economical obligations. 

Budget plan 

You are like immeasurable other individuals who generate income for a living; you can live a simpler lifestyle by setting a price range strategy. You should have a well-planned price range to exercise more control over cash to obvious your economical obligations. A well-conceived price range strategy gives a wide idea on income and expenses. You can reduce the cash you are spending on needless items so that you can pay to obvious your economical obligations. 

Consolidate your debts 

Ask your lender to allow another financial loan to obvious other economical obligations. It brings together the different types of economical obligations for making it simpler. Merging is the best way to obvious your economical obligations without having difficulties very difficult. You can turn all your per month installments to a single transaction. It allows you to pay per month expenses promptly without unable. You can ask for ppi on your payday loan. If you are unable to pay per month installments, PPI statements will get triggered to offer reimbursements. 

Don't Be The Next Victim Of Credit Card Debt Scams!

(Photo credit: Wikipedia)

Overwhelming credit card debt is a horrible problem to have. Unfortunately however, if you are a senior with credit card debt, you've got something else to worry about these days. One of the biggest scams on the market these days is false promises of credit card debt relief. I've heard of several call centers popping up with the intent to fool seniors into thinking they will receive debt relief, only to go out of business 6 months later with incredible profits. 

Are You Scared? … You Shouldn't Be! 

The truth is, there are tons of con-artists out there just waiting to get their hands on your money but, you also have everything you need to protect yourself. When it comes down to it, spotting a scam really isn't that hard to do. Here are some tips to help: 

• Don't Trust Telemarketers – I'm not telling you that you shouldn't give a telemarketer a chance to win your business but, it's important to trust none of them. You should take the time to do your research. Some telemarketers may have the best of intentions but, the option that they provide just isn't best for you. For instance, they may get paid to offer you balance transfer credit cards as a debt consolidation option. During times of overwhelming debt, this would not be best. On the other hand, there are some companies out there that are scams and know it! Before signing up for any debt relief service from a phone solicitation, you should research the company name, read a few reviews and decide if it is a company that you want to work with. If so, do some research on the program they offer and decide if it is best for you, only when you feel you have enough information to make that decision. 
• Use The BBB – Although, I do not agree with many of the practices upheld by the Better Business Bureau and, I don't use them often myself, when it comes to debt relief, they are a must. If there is a company out there that is scamming consumers out of thousands of dollars, chances are, they are not BBB Accredited. If they are, they probably have less than a B+ score. If you search the name of the company on the BBB directory and find that they are not accredited or their score is less than a B+, chances are, you do not want to work with that company! 
• Old Rules Still Apply In New Times – There have probably been several times in your life that you said, “If it sounds too good to be true, it probably is.”. This is basic common sense. We all know that nothing comes for free and some things are just too good to be true. If a slick talking salesman offers you a credit card debt relief option that sounds too good to be true, it probably is! Do a bit more research on this one! 

The Bottom Line 

You are a senior citizen, it's time to relax. Unfortunately, there are some people out there that want to make that hard for you. Don't let them! Using the simple tips above, you will be able to protect yourself from credit card debt scams! 

About The Author – Joshua Rodriguez 

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance. Join the conversation about this article or any personal finance topic of your choice on Google+!

Make Credit Card Debt Disappear, Even If You're Retired!

Retirement isn't supposed to be a debt riddled way of life. It should be a worry free, enjoyable time. Unfortunately, for many consumers debt has ruined their retirement. But what if I told you that, you could still pay your debts off? What if I told you that you could do it paying no more than your minimum payments right now? Well, you'd probably think I was trying to sell you something. Good news, I'm not, you can do it on your own! No need to pay that debt consolidation company $3,000 to do it for you. It's actually pretty simple, here's how:

Step #1: Make A List Of Your Debts: 

I've seen the smartest people I know make stupid mistakes because they forgot to prepare before doing something. When you do anything as important as working your way out of debt, it's vital that you get prepared. To do so, you will need to understand your debts. Start by making a list of all of your credit cards with a balance. Make sure to order your list from highest interest rate to lowest. Also, it should include the lender name, interest rate, balance, minimum payment, customer service phone number and pay to address for each of your credit card debts.

Step #2: Decide How To Go About Reducing Your Interest Rates: 

There are 2 different options that you can chose from for DIY interest rate reduction, first is interest rate negotiations and balance transfers, the second is financial hardship programs. Either of these options coupled with solid, aggressive payment plans, which I will go over later can prove to be a dream come true for you and your family. So, how do you decide? It takes a bit more than one paragraph so, I'm going to separate this step into sub-steps:

1. Check Your Debt To Income Ration – Add all of your credit card balances up. Do they add up to more than 15% of your annual income? This plays a crucial role in your decision because if your debts add up to more than 15% of your annual income, chances are, you will not qualify for enough of a credit line to transfer your balances via balance transfer credit cards. Also, you may be in the midst of a financial hardship.
2. Add Up All Of Your Minimum Payments – Can you afford to pay at least that amount of money every month? If not, you are dealing with a financial hardship and your lender has assistance for you.
3. Figure Out Your Credit Scores – If you have poor to fair credit scores, the truth is, you will not qualify for any balance transfer credit cards that are worth applying for. This however is often a sign of financial hardship!
4. Make Your Decision – If your debt to income ratio is too high, you can't afford to send at least your minimum payment comfortably and you have bad credit scores, financial hardship programs will be a better option for you than balance transfer credit cards. However, if you do have a low debt to income ratio, good credit scores and can afford to pay make your payments with a little extra comfortably, balance transfer credit cards are going to be your best option.

Step #3: Reduce Your Interest Rates: 

I have written several publications on both options for reducing your interest rates. If you decide on financial hardship programs, I suggest reading, “Understanding And Applying For Credit Card Hardship Programs”. If you decide that you would rather use balance transfer credit cards for interest rate reduction, please read “Do It Yourself Credit Card Debt Consolidation”.

Step #4: Decide On A Constant Payment: 

Have you ever noticed that as you pay your credit card bills, every month or two, the payments get a few cents or even a buck lower? This is because your minimum payment is based on your credit card balance. Therefore, if you can commit to sending no less than your minimum payments this month, you can commit to sending more than your minimum payments in the future. Every extra penny going to your principle balance saves you money in the long run. So, to decide on a constant payment, add all of your minimum payments together. Can you afford to send more than the total? If so, write down the total payment you can afford. Now, commit to sending no less than this every month until your debts are completely paid off. If you do so, you stand to save thousands of dollars in interest and years of time paying off your debts!

Step #5: Stack Your Debts: 

The debt stacking payment method is one that attacks your highest interest rate first. To do so, send minimum payments to all of your credit cards with the exception of the highest interest rate each month. All extra funds left within your constant payment should be directed to your highest interest rate. When your highest interest rate credit card is paid off, don't go back to making small payments and keeping the rest! Now, send all extra funds to your next highest. This aggressive payment method will really get you paid off fast!

My Conclusion

Even if you're retired, you don't have to live with credit card debts. If you follow this plan, you will be free in just a few years and finally be able to enjoy your retirement. I hope you've enjoyed my article and hope you come back to read more to come!

About The Author – Joshua Rodriguez

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance author. This article was inspired by his most recent series, “Balance Transfer Credit Cards – A 7 Step Guide To Understanding This Option”. Join the discussion about this article, Joshua's series or any personal finance topic of your choice on Google+!