Ladydebt

Are you somebody who struggles each month to pay all of the bills? Are you in debt? Are you looking for ways in which to reduce your level of debt? In this article I write about ways in which we can control and reduce our debts which I hope will prove beneficial to people who read it.

A few years ago, I found that I was not earning enough money each month to pay for all of the direct debits, standing orders and loans that were being taken out of my bank account. This caused me many a sleepless night due to the increased stress and pressure that seemed to be placed on me. I had realised this too late and was already in quite a large amount of debt, stupid I know.

I have to say that in truth it was all my own fault. The company where I was working had been offering overtime for the last two years. I took them up on the chance to earn extra money but I soon took it for granted and saw it as part of my monthly wages. There was it seemed no reason as to why the company would stop this opportunity to work overtime. But stop it they did and my monthly earnings returned to what they had been. I didn’t think this would be a problem however as I had coped alright before. When checking my bank statement a few months later, I realised however that it was a problem.

It was time for a reality check. I needed to sit down and work out all of the things that I spent money on each month. What could I go without etc? I had signed up to a number of new contracts since my earnings had increased via the overtime, such as cable television. I basically had a choice, I could try to earn some more money via working part time somewhere or I had to sacrifice some of the things that I was spending the money on.

I decided to do both. The cable went as did many other things from the house, which I describe as luxuries. These things are great to have but only if you can afford them. My car which was my pride and joy also had to go. It was a great car but the insurance was sky high, for the time being a basic car would do. At the end of the day the aim is simply to get from A to B, therefore how good the car looks is not that important.

I also started to earn a second income by working part time for a market research company. I needed to think positive about the situation I was in and a friend of mine helped me to do this. He stated that however poor you may think that you are, you are still richer than most people in this world.

What I have now decided to do, is to save money when I am doing well, such as when I have any overtime. This way, when the overtime is taken away, I will have a nice tidy sum in the bank to enjoy. I do not ever want to be in debt again.

The Chinese Principle taught in the first part of this article is really powerful, it helps you to identify the real causes of your problems, to deal with these problems, and finally to eradicate them, or reduce them…

How can you live like that? How can you live according to the wishes of your creditors? You must choose to do what you want whenever you want to. I don’t know for you, but for me, If I want to leave Dubai right now(not in 3 months, 6 or 1 year), but tomorrow or next week, I can do it because I am debt free. I owe nothing, and nobody can prevent me to take the plane.

People don’t realize, but they live like prisoners. Life is Freedom, no what your bank or creditors want you to do! You need to know yourself, and find how you can control your emotion to achieve what you want in your life with the power of positive thinking.

You need to radically increase your income.

What you need is not to get out of debt, to be debt free, or any debt consolidation service. Your real need is to earn more money. You already know that, but nobody told you to take action and how to do it.

You may think how can I do that as I am already in debt, and I don’t have a capital to start any kind of business.

My answer to this is that today, there is a shortcut to be successful, and you already know it. This shortcut is Internet. Now, with the power of Internet, you can be an entrepreneur, work from your home, without risking a lot of money.
You can even start from scratch, as I did and use the power of Internet to Market your products for example.

If you already have a website, do you know that you can be an affiliate (sell other people products), and get commissions without taking care of customer service, shipping, billing… All you need is to register in a good affiliate program, market your product, and watch the money coming in your account.

What is the difference between you and those successful entrepreneurs? The only difference is that they tried. You will never be successful if you don’t do something to be successful.

You can be successful… only if you want. You must know that success have nothing to do with luck or heredity, it is something you got to acquire through learning and efforts. It will not come by itself, you got to take it.

Debt isn’t the real problem, the source of the problem is that you need more money.

There are so many reasons to get out of debt its not even funny! I want to take a few minutes and several paragraphs to cover some of the bigger ones and hopefully help a few people along the way. The reasons that I will cover include the economics of being in debt and the mental and physical slavery of debt.

First, however, I want to talk about the different kinds of monetary debt. First there are no interest loans which are the best possible kind (if there is a good kind) but depending on the other costs involved may not be worth the savings in financing charges. Second there are the low cost loans that are made even lower by the tax benefits that you may receive from paying interest on these loans (even allowing you the chance to get out of debt). You must be disciplined here but these types of loans can actually allow you to make money using the borrowed money. The third type that is by far the worst type is the credit card loans which are typically high interest and are usually not used to pay for smart buys. These will be discussed in more detail in the paragraphs below.

The first type is a good way to get out of debt especially if given in a contractual relationship buy a source that has no emotional attachment. The trouble is that it is rare to find this kind of loan publicly and so family and friends are generally the source. Let me ask the most important question right now and then answer it. Is the money and the thing you are buying with the money worth the huge costs of the broken relationship that results in over 50% of these situations? NOOOOOO! Be VERY cautious about going into a financial partnership with someone that is close to you.

The second type mainly include school and house loans. There are tax benefits to these types of debt and the product that you receive is the type that tends to appreciate rather than depreciate. Often these loans are of the low interest types and are set so that people will get out of debt for these loans. Typically these are the only type that I would recommend.

The third type is credit cards. Credit card companies DO NOT want people to get out of debt which means that you should stay clear of them especially considering the astronomical finance charges that come with them. People are buried financially every day because they cannot control the feeling of power they have with credit card spending. The only people that should use these are people that are VERY disciplined with money and can pay off the balance every month. In these cases a credit card is actually very convenient and with the new cards that offer cash back can be wise. This applies to a very small minority of people, so in general stay away from them.

People who are in debt can easily get out of debt. They can get debt help from the various banks that are there. You should approach your local bank with which you have a checking or a savings account. In most cases they are willing to help their customers. In this way they act as debt helpers for you. You can also seek the advice of many professionals who can help you lessen your debt or help you pay back the debts. Banks will ask for your financial statement over a period of one financial year. In this way, they will be able to ascertain your revenue streams as well as your expenses.

Then they will ask you for the requisite debt that is required. Depending upon the relationship that you enjoy with your bank, you can get the amount required. You may also get 80% or 90% of the amount. In case you approach organizations, which specialize in helping, you pay back your debts; they may also charge a certain commission dependent upon the value of your cumulative debts. In most cases banks will ask for a security or collateral against which they would give you a loan. For debt help, these can range from your immovable property such as house and business property to movable such as your car etc.

Banks always would like to make their investment safe while at the same time giving you debt help. In the event that you are unable to pay them back the principal amount, they will have rights to your property. In most cases however, the banks will structure a loan whereby it will become easier to pay the interest as well as the principal without affecting you further. There are many non-profit organizations, which are willing to assist you in paying back the loans. In this way they can also be categorized as loan helpers.

Debt is one of the most common and devastating things that people find themselves in life. It saps your energy and decreases your control over the future. Basically you are a slave to your debt literally and it has a way of winning out. People get into debt for all sorts of reasons. Some make poor decisions but most people are just plain unlucky and get hit with an unexpected and huge bill at just the wrong time. The great thing is that many of the people who offer debt help have been over their head in debt before and know exactly how to get out from under that crushing load. They know that you aren’t stupid and will treat you with respect as they lead you along the proven path to freedom in your budget once again.

So my advice to you, if you are just starting the downward spiral and want help avoiding compounding your errors, or you have already hit rock bottom and are desperately looking for a way out, get someone you can trust and who knows what they are doing to give you good debt help. What I want to do now is give just a few tips that any sensible debt advisor would give you to get you on your way to financial security.

First form a budget that fits your income and stick to it. This is the most simple thing to teach in debt help, but turns out to be the most powerful because people have never learned. People have no idea how much is coming in and how much is going out and absent mindedly spend more than they make. It is a natural phenomena and the only way to avoid it is to map it out clearly so you can see the effect of your decisions clearly.

The second tenet of debt help is that everybody needs to come up with a way to keep track of your budget on a day to day basis. How else are you going to know if you can make a purchase within your budget? You need to have running totals in order to stick to your budget. There is a lot of simple computer software that is getting easier to use each year as they figure out ways to automate things. This takes out all of the math that can screw people up and also provides a clean crisp organization for those who are challenged organizationally.

Third credit can be your friend but turns out to be most people’s enemy who are seeking debt help. Credit gives you flexibility and often many incentives but it also is very expensive if you get on the wrong end of the equation. My advice to you is to first not have credit until you have disciplined yourself enough to stick to a budget and then only use it like you would a debit card. This allows you all of the positives of credit without burying you alive.

9 Steps To Get Out Of Debt – Part 8

Step 8 – Getting Insurance

Most people are only one major disaster or a few weeks of unemployment away from bankruptcy. If you have done all this work to get out of debt, you dont want it to all be in vain, just by one major crisis hitting you or your family. Theres nothing you can do to totally protect yourself from every type of catastrophe, but there are steps you can take to significantly reduce your risk.

The first half of this article is going to be on insurance, and well start with the type of insurance that is most likely to save you from being completely wiped out, medical insurance. This is one a lot of people choose not to buy because its quite often very expensive. This is a very dangerous decision, though.

You never know when you will need medical care and we all know it isnt cheap. Even if you are in perfect health, medical conditions can pop-up over night. You could wake up tomorrow and either have a major internal problem show up, or possibly have an accident and break a bone. You can easily rack up bills in the thousands, ten thousands or even hundreds of thousands from a single incident, and you never know when one will strike. Once this incident occurs, its usually too late to get insurance.

If medical insurance is available through your employer this is usually the cheapest option, however you can still get insurance if your employer doesnt offer it. The next cheapest option is most likely to get a group plan from another organization you belong to. Some examples would be a credit union or NASE. If you cant find a group program, you can still buy insurance as an individual, it just typically costs more. The best way to reduce the cost is to go with a plan that has a high deductible. You may end up paying 2000 or so if you have a major incident, however it wont completely wipe you out.

If you own a home, you most likely have homeowners insurance because your mortgage company has required it, but if not, be sure to get it. If you rent, you may think you dont need insurance on your property, however if a disaster was to hit the apartment complex or other place you live, you can still lose all of your possessions. You may think the apartments insurance will cover your losses, but it wont; you will need renters insurance. This is usually fairly affordable. If you own a car, you are required in most states to at least have liability insurance, but depending on the value of your car and whether or not you can afford to replace it if you were in a wreck, you may also want full coverage to cover any damage to your vehicle.

The last type of insurance I would like to mention is life insurance. This is something many people overlook, especially younger couples. If you are single and are not responsible for supporting anyone you may not need this insurance, but if you are married and have children or anyone else you are responsible for caring for, this is something you are going to want to have.

To determine how much insurance you need, I suggest calculating how much your family would need to get by with you gone and multiplying that by fifteen. This will most likely be a shockingly high number, but it will allow you to support your family indefinitely by allowing them to live off the interest from this money rather than the principal. Youll learn more about this in the next article.