Solve Money Problems Today – Stop Worrying and Use Your Head

20
August

Many of the most widely used professional money management services can be avoided, with a common sense approach in handling personal finances. Currently, a large number of individuals are searching for the best solution in order to put an end to overwhelming debt, which consists primarily of credit cards. Most households use at least three credit cards, which carry balances of over $5,000 on each account. Unfortunately, varying double digit interest rates make it impossible to reduce or pay off these loan balances by making minimum monthly payments. Consumers are being urged to take money matters into their own hands, and negotiate reduced pay off amounts with their creditors.

In light of the present state of the nation, many creditors are accepting a settlement amount to pay off consumer debt. Through this process, most unsecured loans can be discharged by paying only a quarter or less, of the original balance. Consumer advocates and financial planners are urging typical credit card holders to use the negotiation tactic to realize a more reasonable pay off amount. There is no mysterious system that takes months to learn in order to use this approach for debt negotiation. Settlement and consolidation agencies charge their customers thousands of dollars to talk with their client’s creditors and negotiate loan balances. A little time and knowledge equips most loan holders to deal with their creditors themselves, rather than hiring a costly financial representative.

Consumers are advised to take the credit card with the highest interest rate and work with that creditor to lower the interest rate, and remove any late fees and penalties that may have accrued on the account. Creditors would rather receive a portion of the amount owed, than risk a consumer walking away from their debt or filing bankruptcy and receiving nothing on the account. A settlement agreement is one of the best alternatives in restructuring personal debt repayment. Through no fault of their own, many individuals are facing unemployment, salary cuts, and mandated furlough days, and are unable to keep up with their financial obligations.

Many individuals are taking on second jobs to offset their household’s loss of income. Working from home is a profitable means of making extra money without paying any overhead expenses. Using websites for selling personal items that are not being used, or bartering for skilled services is a wonderful outlet to bring in much needed money. Answering phone lines, typing papers for students, tutoring, and lawn care, or babysitting are all ways to gain income and relieve financial stress. Extra money can be applied to bills and reduce the tension that mounts when bills cannot be paid on time. The economy has placed most average income earners in a position of looking into all avenues to resolve money problems.

Mortgage holders are being advised to discuss a modification loan with their current lender, to lower monthly house payments. Adjustable rate mortgages and high interest bearing loans can be modified to a reduced, fixed interest rate. The U.S. Government offers an up to date website with a complete listing of available consumer programs. Many scholarships and grants can be applied for through their online service.

Grandparents who are raising grandchildren can apply for a grant to pay for their additional expenses. Low income earners can also apply for a grant to pay for their children’s day care tuition. Food stamps and WIC for children are available without cost, for households who meet income guidelines. Consumers can regain a financial strong hold through research and a common sense approach in debt management.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

Email  • Google + • Twitter

Comments are closed.