Finance Divide

How to avoid bankruptcy

// December 15th, 2009 // No Comments » // debt

Here are three extreme ways to avoid bankruptcy. I have marked these as extreme ways to avoid bankruptcy because lets face it if your on the brink of bankruptcy you’ll will pretty much try anything. I would recommend that you always seek professional advice before considering bankruptcy.

Firstly, sell anything you can live without, seriously have a clean out off all your things. Do you wear that jewellery, do you need three TVs and can you live without your extensive star wars collection? You might not be able to achieve exactly what all these things are worth but you need to clean the decks. You would be surprised to find out how much your stuff is worth on eBay or Gumtree.

Secondly, are you able to borrow enough money to see you out the hole, the important bit is being able to actually pay it back, so don’t enter into any credit terms that are over an unreasonable or unachievable amount. I don’t recommend you get in more debt, I recommend that you consolidate your borrowing into one easy to manage chunk every month. The golden rule is to maintain the payments month in, month out.

Lastly, sell your house. Downsize, pay off your debts and start again. Put it down to a lesson learned. If you went bankrupt you would have to wait years before getting another mortgage, so just bite the bullet and jump before you’re pushed. Although this may sound a little drastic, it may be a better option than waiting until you are forced to give up your house! Downsize or start renting while you get all of your outstanding debt paid off. That way, you will have a clean slate and can start to rebuild your life once again.

Although these three ideas are very extreme, some people will have used these to get out of debt and maybe it could be you!

When in Debt – A Way to Help You Out Financially

// October 8th, 2009 // No Comments » // Loans, debt

Today, in America, everyone’s living out of their credit cards.  It’s easy and fuss-free, not until one realizes how in debt he or she really is.  As the saying goes, the higher the climb, the harder the fall.  Credit card payment, along with other liabilities such as rent, mortgages and other expenses, consumes a big part of their income and resources.

Some unnecessary spending leads to the conclusion that getting off our debts can burn a big hole in our pockets.  People know it’s hard to put anything on credit, but it’s harder now because people are in the dark as to when they can pay off outstanding bills.  In the end, one’s finances end up choking.

Here are some ways to help one seek out the perfect solution for their not-so-perfect crime:

First is, assess the situation at hand.

How much is too much?  Making a list of daily expenses and bills to pay pretty much covers the whole idea and, more important is to know when these should be paid.  Knowing all these will help you assess your spending habits.

Second is, work around a budget.

Where does your money go?  List down your expenses and you’ll see what you need from what you only want.  To lessen the spending is our goal.

Third step is to start paying the high-rate debt before anything else.

It’s because the higher you have to pay, the higher the interest rate is.  Then in due time you’ll be able to switch your credit card account with a lower rate setting.

The most important rule is to only use debt in cases of emergency, with necessities or those commodities or assets that will gain value in the future.  Analyzing your spending notions may pave way for you to control it and not let money control you.

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The Benefits of Debt Consolidation

// May 25th, 2009 // No Comments » // debt

Almost everyone has heard of debt consolidation, but many people are still confused about just how it works. It’s actually a simple process in which you obtain a loan for the amount of money you owe and pay off all of your existing debts. Then, instead of multiple monthly payments, you only have one convenient payment.

While it might seem futile to borrow even more money to pay off money that you already owe, debt consolidation has a lot of great benefits. It can keep collection agencies and creditors from harassing you and relieve the stress of constantly worrying about how you’re going to make it from one payday until the next.

You can borrow money with a lower interest rate than you currently have, which in itself can save you thousands of dollars over the course of a few years. And, when you combine all of your debts into one, the payment can be as much as hundreds of dollars lower each month than you’re currently paying.

Short of filing bankruptcy, debt consolidation is the best way to get back on your feet and out of debt. It can allow you to be able to keep more of your money in your pocket each payday. And, can even help you to protect your credit rating.