debt consolidation

How Soon Should I Use A Credit Card After Paying Off Debt?

October 14, 2015 by penn

Congratulations! Paying off debt is a huge accomplishment that should not be overlooked. It can feel shameful to have credit card debt and carry a monthly balance, and is not an easy feat. Now that the chapter of your life with debt is closed, it is time to move on to the next step and determine how soon you should begin using a credit card now that you have paid off your debt.

[Read: All about the Best Credit Cards]

Today it is the norm to use credit cards and it can seem difficult to live without one. While you may plan to abstain from using credit cards after paying off debt, many people simply do not feel prepared to make that commitment. I know that would be incredibly difficult for me personally, but it is not a decision that should be made lightly. Before making your final decision, consider the following points.

Take A Moment to Breathe

After paying off debt, you need to take a moment to assess your new debt-free way of life. Consider the following questions:

What should I do with any extra money each month?
What is the best way to make my money work for me?
How can I keep myself financially accountable?

You may have already begun to ask yourself these questions. If you haven’t, now is the perfect time to start considering how to answer them and plan for your future. The most important thing to remember is that you have broken the cycle of debt for good and are ready to move on. Paying off debt isn’t easy, and now you need to plan so that you stay out of debt.

There is No Set Timeframe

It may be tempting to try to “keep up” with friends or neighbors when paying off debt. However, remember that there is no set timeframe in which you must begin using a credit card again after becoming debt-free. This all depends on you, your lifestyle, and your goals. Each person has a different situation in his or her debt payoff plan. There is no set timeframe when it comes to using a credit card after paying off debt. This will depend on your personal situation and the particulars related to your debt payoff plan. If you still have access to credit cards and have not been required to close your accounts, you need to take the time to decide what is best for you. It is crucial to consider whether or not using credit cards will tempt you to overspend. If this is the case, proceed with extreme caution before using credit cards again.

Start With A Plan

Just as you plan for a day at work or a weekend away, you need to have a plan after paying off debt. No matter when you begin using credit again, having a plan is essential for helping you stay out of debt. You may find it best to work this into your overall budget if that helps you visualize your goals. It is also important to instate a spending plan once you begin using credit cards again. This will help you develop discipline with spending and keep you accountable so that you do not overspend.
One way to do this is by allowing yourself one small, planned and budgeted purchase per month. Giving yourself a reasonable limit and sticking to it will help you develop that discipline. As you build confidence in your credit card usage, you can increase the number of small, planned purchases to an amount that brings you enjoyment without blowing your budget.
What works best for me is to have someone I trust (in this case, my husband) keep me accountable for my credit card usage. We document every purchase on a shared spreadsheet. This way, we each know how much the other has spent that month. Since we trust each other to keep the other accountable, we can challenge whether or not we have stayed on track that month.

Long Term Goals

It may feel tempting to cancel your credit card altogether after paying off debt. This is definitely understandable, but may negatively affect your credit score. Although it sounds contradictory, credit companies monitor your score based on how frequently you close lines of credit, so exercise caution here. Your best option may be to store your credit cards somewhere hidden yet safe so that you aren’t tempted to use them, yet don’t affect your credit score. This will ensure that your future isn’t impacted in terms of loan rates, potential jobs, and so forth.

[Read: Ways to Cut the Cost Of Christmas Debt]

What’s most important to remember is that you take your time when making decisions about your debt-free future. Make sure that you make a careful, balanced decision that will have a positive impact on your future.

Grappling with the Emotional Side Effects of Debt

February 2, 2015 by penn

We’re all well aware of the most common outcomes of debt from the constant loan rejections, incessant calls from bill collectors and the never-ending stack of late bills and fees that rack up. When you’re experiencing these annoyances in the moment, it’s hard to feel like they’ll ever come to an end. You might not realize it as you move through life, but you’re more than likely dealing with a lot of emotional baggage that you haven’t even begun to think about. The emotional side effects of debt are with you all the time and they could be the cause of a lot of different issues. Sure, owing someone a sizable amount of money is very tough to wrap one’s head around, but you might not even realize the fear and helplessness that’s plaguing you while you live it. Not only is your debt and the emotions tied to it a problem, but you have all kinds of other things going on in your life that only add to the overall pressure you have to work through on a daily basis. You have to be aware of the emotional side effects of debt tolearn the best ways to deal with your emotions.

The Unbearable Stress

The American Psychological Association conducted a study in 2014 that proved that the most common reasons for American adults to stress is because of money woes and pressures at work and when you really look at it, job pressures might ultimately boil down to problems that involve money or fears of not having enough due to losing a job. Now you might be asking: how is debt related to all this? Well, whenever someone has a feeling that they might be falling or pushing themselves “into the red” or negative financial territory, heightened negative emotions come into play. These feelings are more than certain to be stress-inducing and if there’s no plan or forethought in place, you might be liable to buckle under all the burdens.

Not only are the mental implications of stress a lot to handle, but the physical ramifications can weaken the immune system and make you susceptible to all kinds of illness and disease. Stress is one of the biggest causes for disarray in the body and this is one of those emotional side effects of debt that can be potentially deadly.

How you can fix it: Stress usually comes into play when you can’t seem to properly grasp the gravity of a situation at hand. When you can’t think clearly, it’s easy to imagine the worst and wrap yourself up in the illusion. Denial won’t get you anywhere, and it’s important to go after the help that you need when you need it. Know exactly what you need to pay back to get off on the right foot.

The Crippling Fear

Fear can take shape in many different forms but it comes into play most often when you feel that you’ve lost control or you can’t see what’s coming to you in the future time. Almost all kinds of debt become debt for the fact that you’ve done some things to make it so, but watching yourself slip further into the hole with no idea about what’s on the way can be extremely frightening. Fear is one of the emotional side effects of debt that can guide our thinking and decision-making in harmful ways and make us react with unsafe and ill-advised actions. It’s also been hinted that fear could be a big part of the reason that we make financial decisions that aren’t the wisest.

How you can fix it: You can’t do much about the amount of money you owe once the dollars have been spent, but you can place your focus on the range of time that you foresee erasing your debt. Putting a positive spin on your thoughts will push fear farther back in your mind which will make your situation easier to handle.

The Painful Regret

We usually try to forget about most of the decisions that we choose to make that aren’t the smartest. If debt is the problem though, thoughts of regret usually tend to hang around longer than we would like them to. Every time we have to make another payment, all we can think about is the fact that we should have never put ourselves in such a situation. Of course there are some kinds of debts that don’t necessarily qualify as mistakes, but if yours is a mistake, it doesn’t take much to get down on yourself about it.

How to fix it: The only way you’ll ever get over it is by sitting with those feelings and learning from your mistakes. Taking action to ensure that you don’t do the same things again in the future is key.

The emotional side effects of debt can be a lot to bear, but those emotional side effects of debt don’t have to mean the end of your days.

Debt Consolidation vs. Credit Counseling: Which to Choose?

November 26, 2014 by penn

You may have it as a secret the amount of debt you are currently in. however, it may not be so much of a secret that whatever the amount may be, you may be desperate to get rid of the debt as quickly as possible. While any method you choose to get rid of the debt may take a little hard work and much determination, there are two main and popular ways of getting rid of debt: debt consolidation and credit counseling. You may have heard of both debt consolidation and credit counseling, but if asked to compare debt consolidation vs. credit counseling, will you be able to? More importantly, you must ask yourself— which is best for you to use to get rid of debt? Continue reading for more information as the debt consolidation vs. credit counseling comparison is made.

All about Debt Consolidation

To begin the comparison of debt consolidation vs. credit counseling, the definition of debt consolidation must be understood. Debt consolidation is when you enlist a financial institution with the ability to take all of your debts and combine them into one debt summation. This method typically gives individuals in debt a lower and more manageable interest rate to have to pay back. There are a number of ways that debt can be consolidated. Some of those ways include transferring balances on credit cards, use of lenders, or doing your own negotiating with creditors. If you decide to consolidate all of your debts, be prepared for the more difficult step in the process.

Now, it is time to determine which method of consolidating your debt will benefit you the most. It is highly recommended that you choose the method where you can do more than just get rid of your debt. Before you lock down the method you will be more beneficial in using, ask yourself the following questions:

Should you prioritize your debts according to interest rates? If this is the best method for you, then incorporating a balance transfer may be the most beneficial way to handle your debt.
Do you prefer having a set rate and a date to complete payment on the balance? If this is the best method for you, then taking on an installment loan may be the most beneficial for you.
Are you good at negotiating situations in which finances are involved? If you area able to handle the art of negotiating to get your debt in a place that is easily manageable, then try your hand at negotiating your own terms with your creditors.
Are you comfortable with trusting a financial institution with your debt and helping you to handle it? If so, you may find it more beneficial to just leave your debt situation in the hands of a creditor so that he or she can determine the best method for you.

Debt consolidation is a great way to start paying off your debt. It gives you the opportunity to agree to terms that are more manageable. Either method you choose, if you decide to use debt consolidation vs. credit counseling, make sure to do what is most beneficial for you. However, if you do not have good credit and you have struggled in the past to repay debts, then in the battle of debt consolidation vs. credit counseling, debt consolidation would not be your best option.

All about Credit Counseling

Credit counseling may sound like a therapy session to you. In a way, that is exactly what it is. When you enroll in a credit counseling program, you allow finance professionals the ability to help you get your credit on the right track. This program may include a variety of tactics, including helping you with setting a budget, enrollment in financial sessions for free, or possibly the chance to sign up for a debt management plan.

In the battle of debt consolidation vs. credit counseling, credit counseling takes the cake for being the most expensive. If you decide to use credit counseling as your method to get rid of debt, you will have to pay for the counseling sessions. This is usually a last option for people because it is not often people are willing to spend money in order to get financially stable. The typical person who would qualify for credit counseling is one who is currently struggling to make debt payments, already have some debts in the collection period, and consolidation will not help. There are a variety of sites that can give you access to credit counseling professionals, but before you settle on one, make sure of the following:

Is the company licensed and have accreditation?
Does the company have customer reviews? What do they say?
What are the fees associated with using their credit counseling services?
Can you trust the company to help you get your finances in order?

In the war between choosing debt consolidation vs. credit counseling, if you decide to use credit counseling, make sure that you can overall trust the company that is helping you. Be honest with your counselor and know that they will be honest with giving you the best help. For a list of certified credit counselors, visit the National Foundation for Credit Counseling site.

When it comes to debt consolidation vs. credit counseling, either method will help you with getting out of debt. It is just a matter of deciding which method is better for you.

How Do I Consolidate My Credit Cards?

February 7, 2014 by penn

When you have several credit cards with balances it leads to further trouble because you have to pay off all those separate payments and interests which if not dealt efficiently can pile on to an enormous amount of debt and stress. You can adopt a debt snowball or debt avalanche approach; though they are the most commonly used techniques to get rid of the debt but it will still feel as if payments and higher interest rates are leaving you and your resources drained.

If you are one of the millions of Americans going through a rough patch in your life due to serious financial troubles because of debt then what you need are consolidated credit solutions. In order to manage your credit card debt and take the debt off your neck you need to consolidate your credit cards.

How Does Credit Card Consolidation Work?

Credit consolidate solutions help you to take control of your debt and manage your finances more efficiently. These solutions provide you with right financial strategies and resources so that you can pay off your debt successfully and quickly and secure your future.

With credit card debt consolidation you consolidate all your bills into one payment. You take all your balances and put them in one place which means you have to deal with only one payment and its interest. This can allow you to manage your debt efficiently in no time because you are not dividing your payments. When credit card debt causes problems for your budget, you need to find a way to eliminate the debt quickly to avoid damage to your credit and bankruptcy. To consolidate your credit cards, there are three main options to consider:

Get a debt consolidation loan:

You can acquire a debt consolidation loan; you can combine all your existing debt and credit card loans into one regular payment. You can take a larger loan from a reputable and trustworthy company with which you can pay off your credit card balances. Now you to worry about only one payment and one interest which will help your finances and efficiency of your payments.

Balance transfers:

You can use a credit card balance transfer to consolidate your credit card debt (and maybe even get a 0% APR for a short period of time) or you can get personal loan or a home equity loan.

Debt consolidation companies:

It is advisable to be cautious when dealing with debt consolidation companies as they might charge you excessive fees while lending you the loan and also make sure the company you are dealing with is reputable. Some companies will advertise as debt consolidation” or “consolidation solutions” which is more like a management plan for debt payment or a debt settlement.

Consolidating your credit card is all about making situation more manageable and stress free. With the right guidance and approach you can reduce what you are paying overtime and will also help you in paying off you debt swiftly and diligently. Living a debt-free life is a distinct possibility. All you need is discipline and a solid financial plan.

Peer to Peer Consolidation Loans

One way of consolidation is by going to a peer-to-peer lender like Prosper or LendingClub. These lenders help individuals by matching up the individuals who plan to invest and earn from an investment with people needing low cost consolidation loans. The positive aspect of this type of an arrangement is that the interest rate on peer to peer loans is low as compare to the loan you get from a bank.

You can learn more about peer-to-peer consolidation loans and other types of debt consolidation, by visiting Debt Consolidation resource center.

Working Out Your Own Plan

If you’re in search of other available possibilities other than debt consolidation for your credit cards you can put together an automated plan that feels like debt consolidation if it’s not. There are tools that can help you to find solutions for your debt problem. They adopt a more individualistic approach by helping you create a personalized strategy to assist you in pay off you debt quicker. You can use these tools to pay off your debt without managing the payment on your own. The advantage of this situation is you don’t have to acquire a new loan nor worry about the credibility of the companies you are dealing with.

The important thing is that you formulate a manageable plan which will help you to get the debt off your neck in no time while lowering your payment rates at the same time. The only drawback to consolidate your credit card is that you can free up your credit cards again. If you want to live a debt free life you need to change your financial behavior to save yourself from economic troubles.

Credit Card Loan Consolidation Can Be Useful

November 29, 2013 by penn

Credit card loan consolidation is something that you might be considering if you have Visa, American Express, Master Card, or any other credit card debt that is over 10,000. Credit card loan consolidation is where you borrow money that can help you to pay off all of your credit card debt at once. There are several pros and cons when looking into consolidation loans.

The Pros

There are some pros when it comes to credit card loan consolidations.

One great thing about consolidation is that the collection agencies will no longer be pestering you. An individual will receive no more phone calls at all hours of the day, from several different companies at a time.
You will only have one debt. When you have more than one credit card you end up with more than on debt you need to pay on. By getting a consolidation loan, you will combine all the smaller debts into one single debt.
A credit card loan consolidation will allow you to lower your monthly payments. This may seem strange because you are having a larger loan, but if you combine the entire little bill payments into one, the consolidation as a single payment is less.

The best way to understand this is through an example. If you were to have a debt of $15,000 with an annual percentage rate (APR) of 18%, for this particular debt a person will be looking at paying roughly $225 per month. However, if you were to obtain a secured loan (similar to a second mortgage) for the $15,000 that you are in debt. This secured loan should allow you to receive and APR as low as 2.79% for a 10-year period. This would allow you to have only one monthly payment around $114. This is about half of what you were paying previously. This price drop is something that is one of the biggest pros for someone looking into credit card loan consolidation.

The Cons

As with anything, there are some negative points to a credit card loan consolidation.

The biggest thing that can make you not interested in taking out a consolidation loan is the length of time that you are to be paying back this loan. The average secured loan can be obtained for anywhere from 10 to 30 years. Credit card debts may only take 3 to 4 years to pay off, which is significantly lower of a period.
When you take out a credit card loan consolidation it is very important that you ensure not to gain anymore debt while paying off all your debts. If you put yourself into new debt you can potentially end up far worse off than you were before.
Another downer to a credit card loan consolidation is the interest rates on the loans you try to obtain. Remember that you are in debt and that is a problem when trying to get a loan at all. It is important to remember that lenders prefer low risk individuals to offer loans to. This is one reason that a secure loan is the best option for low interest. However, without the collateral, you might be paying a higher interest rate. If you try to obtain

Another Option

It is important to remember that a person cannot completely eliminate all of their debts. It can be helpful to work with a company the specialized in helping people to receive a credit card loan consolidation. Some debt settlement programs can help you to reduce and even remove the debt that you owe. This can be beneficial for those that are not sure of the best way to go about eliminating their debt. Some of these debt programs can help a person to remove their debts within 24 to 48 months.

Is it the Best Option?

Several things can help you determine if obtaining a loan consolidation is best for you.

This is a great option if a person is able to take out a secured loan. This means that you have something that is useable as collateral.

In order for an individual to gain the most benefit, they should have many high interest credit cards.

Nothing is all good or all bad. When comparing all the pros and cons of credit card loan consolidation you will see that overall it is a good solution. You want to evaluate your situation and make sure that it is the best option for you. Be sure that when committing to this loan you understand that is long term. It is also something that needs to be financially acceptable. Do not take on higher payments that you are able to afford. Over commitment can cause even more problems than not gaining help at all, be sure to only commit to what is actually doable.

The Best Student Loan Consolidation Options

October 18, 2013 by penn

You are finished with college, have a degree and a career. Along comes the family and there is a hardship that makes it impossible for you to pay the student loans. Your options can include student loan consolidation. This puts you on the search for the best student loan consolidation company.

To think of consolidations you need to have an outstanding balance on your loan. Student loans consolidation programs can help to reduce the interest so that you are not paying on it for many years. Student loan consolidation repayment plans are set up for people who have more than one loan and with multiple lenders.

The programs are designed to work similar to other debt consolidation programs. You are able to take all the loans and pay them off at once. This can only be done because you will be replacing it with a larger single loan.

Benefits for Consolidation

There are many benefits to student loan consolidation programs; one is the convenience of the programs. You are able to only make one payment a month, only have one due date, and are unlikely to be late.

The ability to have flexible payment options can be important to an individual in a consolidation program. There might even be options to defer the payments, as well as many different options to repay the loans when you fall under financial hardships.

It is also important to know that you are able to save money when you are using a consolidation program. They are able to negotiate with the creditors in order to reduce your balance as well as adjust your interest rates. That can help you to have less monetary obligation in the end.

The student loans that you have currently are under most circumstances at a very high interest rate, as are many of the loans that we get for the purpose of education.

Where Do I Go?

There are several different places that a person can search out for the best student loan consolidation options.

The federal government offers some repayment programs for student loans. These loans tend to have a much lower interest rate than traditional loans. This can be beneficial because in the end you will be paying less money.

When looking into the best student loan consolidation you might want to look into your bank for a private loan. This can be an option because they currently hold your accounts and you may be able to find good interest rates through them. Many banks will hold discounted rates for those individuals who already have bank accounts through them.

There are companies that are dedicated to only the handling of student loans. This can be very helpful when looking into the consolidation of some private student loans. When searching for the best student loan consolidation option remembers that these companies are designed to make a profit. So even though they are reducing your interest, they are also gaining a fee for handling your loans. There are times that one of these companies do offer the best option for your needs, just know that there is nothing wrong with being choosy.

Helping You Get Organized

Using some of the free online calculators you are able to determine the value of your current loan as well as any potential loans you may receive.

You are able to find the Prime Rates of interest online as well. This will let you know what that is being looked for interest during the time that you are trying to reorganize your loans. You can also use various search terms in your browsers search engine like “student loan consolidation and interest rates”.

Remember that if you have a federal loan you can only use a federal consolidation program. Whereas if you have private student loans they will need to be dealt with through a private student loan company.

Best Options for You

Once you have figured out what kind of loan you have, what the interest rates are you are able to look into the best loan consolidation for you. You are able to know what you are searching for when looking at each of the offers to determine what you need. It may be the lowest interest rate no matter the terms, or the least amount of repayment time no matter the rate is. For others it’s a mix of both, finding the right balance of interest rates and repayment time is what most individuals go after. Don’t count out the free programs, they can offer some low rates that can vary on terms as well.

The internet can be very helpful with looking into loan information. It can help you find the best student loan consolidation program or company. Don’t settle for anything more than what you are doing now. If you have trouble you can always for to a student loan counselor for help.

Debt Consolidation in Pennsylvania

September 17, 2013 by penn

There are people all over the world that are in financial troubles. However, each state offers different challenges regarding debt than the one before. Debt consolidation in Pennsylvania can be different than in other states. Here are some things to think about when looking into debt consolidation.

Debt consolidation is the best option for debt relief that exists at this time. Debt management is when you replace all your current debts with a single debt. This allows you to pay off the one debt with a low interest rate over a longer period of time. You can achieve debt consolidation an individual can use either a consolidation loan or enroll with a debt consolidation company in Pennsylvania.

How Debt Consolidation in Pennsylvania Works

Debit consolidation works by gaining a debt consolidation loan. You can take out a low interest loan then use that money to pay off all the other creditors that you have. This will take you from having many creditors to only having the one consolidation loan creditor.

The low interest loans that you can achieve will give you the ability to lower your monthly payments. Providing you will affordable way to use debt consolidation in Pennsylvania. These loans can be secured or unsecured depending on what you choose.

Unsecured loans do not require any form of collateral when taking out the loan. However, you might find these loans to be a little higher in interest rates.

Secured loans are loans that require collateral of some kind. This may be in the form of a house, car, jewelry, or any other asset that you may possess. Since collateral reduces interest rates, these are the type of loan preferred by those going through debt consolidation in Pennsylvania.

Debt Consolidation Company

If you are unsure about how to go about a debt consolidation, or you just don’t want to do it alone. There are companies that offer debt consolidation services. The debt consolidation can work in your favor in many ways.

The debt consolidation company will be able to help assess your debts as well as your finances to help you gain the best results from the proper type of program.
The debt consolidation will have an attorney send a letter to your creditors telling them to no longer communicate you and that your debt issues will be facilitated by the debt consolidation company.
Your creditors will then be communicating with the negotiator on your behalf regarding eliminating any penalties while also trying to lower your interest rates.
Payment plans will be created within your budget after communicating the new loan information. You will be given a fixed amount to the debt consolidation company each month.
The debt consolidation company will then take the payment you make every month and distributed to your creditors. This process will continue until you have paid off all your creditors.

Whenever making a decision on a debt consolidation option in Pennsylvania you need to be sure that the company is reliable. Search for accredited companies as this is a symbol of the company’s reliability.

Which Debts?

There are several types of debt that can use in a debt consolidation. Debt consolidation in Pennsylvania is available through 5 different types of debt.

Private Student Loans
Credit Card Debts
Personal Loans
Payday Loans
Medical Loans

There are specific laws that concern each type of debt, however be sure to know the specific laws. This will prevent you from making any major mistakes as well as protect you from consolidation scams.

Your Credit Score

Debt consolidation is designed to help you pay off your entire borrowed amount, creating the least impact to your credit score. When taking out the consolidation loan your score goes down immediately. No matter what, it is important to be aware of a few things that can hinder your credit score.

Frequent application for credit can hinder your credit score.
Closing your accounts to fast after pay off can cause your score to drop.
Missing payments can affect your credit score as well as your ability to continue participating in program.
New loans can lower your score while in the consolidation program.
Balance transfers are not a good idea while in this program. If you fail to pay off in the trial period you can increase your interest rates and decrease your credit standing.

Remember that everything you do can affect your credit score so being safe and following your plans can help you keep your credit score in positive levels. Debt consolidation in Pennsylvania can offer you some wonderful rewards like making a single monthly payment, freedom from creditor collection calls, improving your credit scores, as well as gaining lower interest rates on your payments. Choose the best choices for you no matter what others say.

Don’t Let Your Hobbies Eat Up Your Budget: Earn From It!

June 22, 2013 by penn

Hobbies usually eat up your budget but if you think about, it can also be a great way to earn you some extra money. If you are in debt, you need to increase your income. It doesn’t mean you should forego debt help. You can combine debt relief with growing your income. It will be a lethal combination to help you get out of debt without damaging your financial reputation too much.

The thing about some debt relief options they have the possibility of ruining your credit score. However, if you choose debt consolidation, you don’t have to worry about it. You will still end up paying for the whole balance so that is not noteworthy in your credit report. If there is debt reduction, then the creditors will report it. But since there is no debt reduction, you need to have ample income to support it.

The single restructured payment plan of debt consolidation will allow you to make lower monthly contributions because your balance is stretched over a longer payment period. And since your debts are consolidated, you don’t have to spend too much time monitoring it and making sure that everything is met. That will free your time to increase your income. And given that you have a longer payment period, you need to ensure that your income can support it. That calls for a supplemental income.

Your hobby can be a great way to earn money. Think about it. Earning more money requires you to work harder and longer hours. If you can work on something that you love to do, then it will not feel like work at all. So the question is, how can you use your hobby to earn?

Arts and Crafts. If you have this talent, you can teach part time in art classes. You can also create pieces and sell them in a gallery or online.

Writing. Set up a blogsite, get advertisers, build up traffic and you should be able to earn through commissions. You can also write an ebook and sell it online – which is a great passive income. Or, you can look for clients who are searching for web content writers and get paid for every article or content that you write for them.

Photography. Being a freelance photographer is useful for both print and online publications. You can also sell your best photos online – like an ebook, it is another form of passive income. You can also partner with a videographer and cover small events and intimate gatherings. Usually, celebrations and parties happen after office, weekends or during holidays – that means it doesn’t have to interfere with your day job.

Sports. If you are a sports lover and you have adequate experience in a particular sport, you can be an umpire, coach or a trainor. You can conduct a small sports camp every summer to teach children in your neighborhood about the sport that you know.

Animal care. If you are an animal lover, you can offer to care for pets. If you have a sizable backyard and you can set it up as a pet hotel, you can take in boarders for pet owners who will go on a lengthy travel.

Cooking/Baking. If you have a knack for cooking, you can teach others your dishes, be a small time caterer for small events or you can sell your food in weekend markets.

These are only a few of the hobbies that you can use to earn extra money. You just have to be creative about it and you can find great way to grow your income without it feeling like work.

Don’t Ignore Credit Card Debt And Just Consolidate

June 18, 2013 by penn

Ignoring your credit card debt is probably the worst that you can do. If you really want to remove your debt problems so you can live in peace, pretending it does not exist should not be one of your options.

There are so many things that will be affected when you refuse to acknowledge your card debt. First of all, the interest and late payment penalties will continue to pile up and grow your debt amount. If you started with $5,000, it can grow to $10,000 if you refuse to pay any amount towards it. Even if you stop using it, as long as it has a balance, the card debt will continue to grow.

Your card debt also ruins an important part in your life: your credit score. If you had plans of setting up your own business or buying a house, your credit card debt will keep you from reaching these goals. Your credit score reflects your attitude when it comes to your finances. Even your employment opportunities, rental option, business partnerships and loan interest rates will be compromised with a bad credit score.

Fortunately for you, there is a way to solve your credit card debt and that is to consolidate it. You have two options: pay down the debt through debt consolidation or reduce the amount through debt settlement.

Debt consolidation help restructure your debt payments so the balance is stretched over a much longer term. The goal here is to lower your monthly contributions without being penalized for it. Take note that you will still end up paying for everything that you owe so you have to make sure that your income can support it. There is a possibility of getting a lower interest rate with the new payment plan that debt consolidation will set up for you. That will decrease the monthly payments even further but do not bet all your savings on it.

If you need further reduction, you may be better off with debt settlement. This option involves negotiating with your creditors and convincing them that you are in a financial crisis. Explain to them how this crisis rendered you unable to keep up with your payments. It can be an illness or a recent job loss. Give them the details and let them know that you still take full responsibility for the debt. It’s just that recent events made it impossible for you to meet the minimum requirements of your debt. You will then offer to pay pennies for every dollar. If you and the creditor agree on a settlement price (e.g. .50 for every dollar), you only pay that percentage and have the rest forgiven.

While the latter option may seem like the better choice, know that your credit score will suffer because you will have to default on your payments. That is one of the ways to convince your creditors that you are in a crisis.

Choose between the two based on your financial capabilities. You can always grow your income so you can afford the first option. Just remember that your debts are your doing and thus you are responsible for completing its payments. Don’t ignore the problem that you created because this is one of those that will not go away on its own.

Consolidate Debt Rather Than Paying Only The Minimum

June 3, 2013 by penn

Minimum payments are practically the biggest trick that credit card companies have come up with. They make you think that you are cruising just fine with your credit card debt by just sticking to this amount. That is a big fat lie. While you may be saving yourself from late penalty fees, you are not making any significant progress in your debt. Chances are, you are setting yourself up to pay your credit card debts for the rest of your life. Your creditor prefers this scenario because the longer it takes you to pay off your balance, the more interest you will give them. That means more profits for the company.

The Credit Card Act of 2009 actually mandated card companies to inform consumers about the repercussions of sticking to minimum payments. If you look at the statement on your credit card bill, you will notice that there is a box containing relevant information about your minimum payment. The text box includes figures that indicate how long it will take you to finish paying off what you owe and the amount you will waste on interest if you stick to your minimum. Most consumers find this useful and have in fact, taken it upon themselves to pay more than that amount every month.

But here’s the problem, what if your budget can only afford to pay the minimum? How can you solve this dilemma?

This is where debt consolidation comes in to help. This type of debt solution provides consumers with a structured payment system that allows them to make lower monthly contributions towards their debts. You may be wondering how that is different from minimum payments.

When you opt for debt management, which is one program of consolidating debt, you will hire a counselor who will aid in creating a debt management plan. This low payment plan stretches your balance over a long term. This is presented to your creditors and once they give their blessing, you can make payments based on this plan through the counselor. Your account will be frozen – meaning you will not be allowed to use it until you have finished or decided to quit the program prematurely. But until then, your minimum payments will not have the same effect as long as you stay under the debt management program.

If you opt for debt consolidation loan, you will apply for a loan amount that can pay off the other debts that you have. This will eliminate your credit card debt altogether and just shift all of what you owe into the new loan. So no minimum payments here either. Unless of course you decide to re-use your card again – which is highly discouraged.

Of course, you always have the option to earn more money so you can pay more than the minimum. The thing is, you don’t really have to put in a lot of additional into it. Even an extra hundred dollars will make the difference. So think about it by consulting your finances. You will always go back to your budget and your payment capabilities to see how much you can really afford to pay towards your debts. You have a lot of options before you – just make sure that you will never include sticking to minimum payments as one of them. That really never works out for anyone.