It is perfectly normal for people to suffer from financial breakdowns every now and then. With the recent recession and the worldwide economic crisis, accumulating debt is something that a lot of people are already familiar with. Thankfully, strategies and approaches such as debt consolidation have been devised in order to help people out of such difficult situations. With debt consolidation, a debtor can just take out a single loan to cover all other debts, often at a much lower interest rate than that currently being charged.
The Process of Settling Your Debt
One of the most effective means to do this is debt negotiation, otherwise known as debt settlement. When we talk about negotiation, this refers to a series of processes where the debtor asks the indulgence of the creditor in terms of making the payment. For both parties, this would mean a new payment scheme where the interest rate is lowered. If this is not the agreement taken, the negotiation can also mean a lump sum payment lower than the original total balance to be given by the debtor as payment to creditor. Successful payment of that amount would result in your slate being wiped clean and you’ll be declared debt free albeit at the cost of not being able to avail further loans for some period of time, but that varies from creditor to creditor.
Negotiating the Settlement
Rather than risk getting no payment at all should the debtor decide to file for bankruptcy, the creditor will likely accept the debtor’s settlement. However, this is not an easy situation as creditors still have the final say during negotiation. Needless to say, a credit that has gone to collection will be negatively reflected on the debtor’s credit rating. It is therefore, in the best interests of both parties to arrive at a compromise. Legal and medical bills, personal loans service bills; collection agency debts as well as credit cards with high interest rates are just some of the financial obligations which can be re-negotiated.
Ultimately, when it comes to debt negotiation, it all boils down to a sincere talk and agreement between the creditor and the debtor. Nowadays, a lot of people would actually leave the negotiation to experts or to individuals who are really well-versed with the trade. Debt negotiation services have mushroomed because these professionals have devised simpler ways to face these kinds of financial problems. With their legal and financial expertise, they can navigate through most of the red tape and bureaucratic run-around that most debtors are subjected to. They can also probably get better rates from banks and lending institutions than a debtor who is inexperienced at these things. Although debt consolidation services do cost some money, most people who are already in debt consider this a good investment as debt consolidation services are often able to save their clients thousands of dollars.
Getting Back on Track
Most debt consolidation services also provide their clients with services that can help them get back on the right financial track sooner, such as financial advice and referrals to institutions who can take on their existing debts are much lower rates. Some companies also offer counseling for credit rating damage control and personal finance management.
Mark Anderson is a freelance writer who writes on behalf of SendOnlineFax. They review fax service providers and provide online fax service to SMEs.
Online shopping is so quick, convenient and easy that it’s hard to image a world in which you actually have to go to a store to buy every little item that you want that might be difficult to find. The world of online shopping makes shopping from anywhere in the world for any products at any time a reality.
But there are some difficulties that of course come along with all of this convenience and ease – are you ordering the right size of shoes or clothing? Is the item going to end up being what I imagined it to be? Am I paying more or less for this than I would be at a store?
If the last question is a big concern to you (and who wouldn’t be concerned with it in today’s economic state?), you’ve come to the place that is right. These are some of the secrets to help you save money while you shop online – secrets that not many people know of, of course, so you’ll be one of the first exclusive shoppers to get in on how to find some great deals online.
Know When to Shop
Shopping online is a lot different than shopping in stores for a number of obvious reasons – but did you know that online stores hold sales at different times than the storefront retailers?
According to a recent study, while most storefronts tend to offer some of the biggest sales on Fridays and into the weekends most of the time, online stores shoot for the big sales on Wednesdays, Thursdays and Fridays to compete with their storefront counterparts.
Knowing this little factoid can help you better plan your online shopping excursion. Check your favorite sites regularly, and when you see a sale, take advantage – but know that it is more likely to be toward the end of the week than on the weekends.
Opt in on Flash Sales
Along sort of the same lines as knowing when to shop, keeping track of which stores are planning sales at which times can be a big of a daunting task for the shopper that just wants to log on and quickly order the exact product that they’re looking for.
So, next time you’re on your favorite online shopping site, sign up for the e-newsletter. Many times online retailers will send emails to their list announcing “flash sales,” or major sales that last only for a couple of days that you need an exclusive membership code to get the deal.
Most times, these sales are pretty enormous, and can be something as great as up to 70% off everything in the online store. Getting a notification that these sales are happening can save you some major moolah.
Read Customer Reviews
Reading reviews will especially come in handy when shopping for items like electronics or gadgets of any sort. The worst experience when shopping is online is receiving an item that isn’t what you thought it would be – and having to pay the shipping again to have it sent back to the manufacturer.
If you’re not sure how you might like an item, check out what other people who bought it have to say about it. If they say there are any major defaults and they made a mistake in purchasing it, then your decision should be obvious. The same is true if you see rave reviews for an awesome and hip product.
Avoid the hassle of having to pay the shipping to send back an item you don’t like and learn everything you can about it before you buy it in the first place.
Avoid Paying Taxes
In 1992, Congress passed a law that basically said that out-of-state merchants are not required to collect taxes from out-of-state customers, and if an online business doesn’t have an actual physical location but instead exist purely online, they, too, are not required to collect taxes.
This has been a major price break for tons of online shoppers over the years – because really, all you have to do is find an out-of-state or solely online merchant to buy from and you aren’t required to pay tax.
But hurry if this is your planned route of saving money shopping online – there is new legislation out there that is trying to get all online merchants to start collecting taxes. There are still ways around it (the law will only apply to larger online retailers – like Amazon, for example), but be aware that the “no tax when shopping online” luxury may not be around forever.
Shop for Rebates
Tons of online merchants are now offering mail-in rebates or even instant rebates on many of their products.
The key to this tactic is, again, staying in touch with the retailer. Sign up for a “frequent shopper” membership and/or program, and keep an eye out for sales that offer rebates or cash back on purchases that you already make online.
These rebates sometimes come in the form of an instant cash-back charge on your debit or credit card or the retailer may opt to send you a gift certificate or gift code for future use on their website. Either way, you’re getting money back on a purchase – and what could be better than that when you’re trying to save money shopping online?
Dani is a writer who works closely with many online merchants providing them with a software to accept credit cards online. She knows the ins and outs of online shopping well and is always looking for different ways to save money!
Extra funds for a rainy day are always welcome. Finding loose change in the couch or forgotten cash in the laundry is always cause for celebration. Use these tips to save money for a rainy day fund so that you’ll always be ready to celebrate!
The first step in saving money is taking stock of the money you already possess. Set up a jar in the bathroom or laundry room for any loose change found in pockets or purses. If such money isn’t accounted for or saved, it is easily spent without purposed thought.
One of the most variable expenses in any budget is the grocery section. Junk food, fast food, and restaurant meals can quickly add up to hundreds of dollars a month. Meal planning allows you to choose ahead of time what food you will be eating. Once the meal planning is done, stick to the list at the grocery store and keep an eye out for coupons that fit your grocery list. If you are used to eating out often, plan a lunch or dinner out once a week so you don’t feel deprived. Keep in mind that lunches out are frequently cheaper than dinner. Meal planning means less trips to the grocery store and more cash and time saved!
Choose Free Entertainment
Entertainment can drain cash flow quickly with trips to the movie theater or high cable bills. Consider ditching the cable in favor of watching shows for free or a nominal monthly fee via the internet. HDMI cables are able to sync televisions and computers and, depending on the internet connection, may be able to play High Definition broadcasts. Get to know your library and the media options there. Keep an eye on new movies coming out and put in your library request early to reserve the DVD. Often, using this technique, you are able to checkout brand new DVDs for a full week without any cost. Many libraries also stock entire seasons of television shows.
Know Your Utilities
Keep an eye on the fluctuations of gas and electricity bills. Consider adjusting the thermostat before leaving for work or begin using a programmable thermostat to use lower the utility bill. Challenge everyone to see how long they take in the shower and decide whether improvements should or could be made. Be aware of leaving lights on when not in a room or appliances left on when no one is using them. As another variable section in the budget, it may be in your favor to ask the utility company to do a free efficiency check on your residence. Some cheap fixes in leaks or behaviors can save a lot of money over time.
Swap Services
Discuss saving money with friends and family. Bartering or swapping services can save a bundle of money. Service skills such as hairstyling or landscaping could be swapped for meal preparation or snow removal. Develop a helpful community between friends and everyone will be left with some extra cash in their pocket.
Amber Tate always endorses saving money whether that’s adding more to the piggy bank or not needing to spend as much for say, your travel insurance when you travel.
Saving money is something everyone knows they should do; whether or not they actually do it is an entirely different story. Some people choose to save money for a rainy day, others for their dream vacation. Others choose to save money to create an emergency fund that will protect them in case something unexpected happens and they need money to help them get through whatever the situation is. Whatever you are trying to save for, there are easy ways you can save. Women, especially, have a number of unique and easy ways they can save money for a rainy day.
Negotiate
One of the easiest ways a woman can save money is to simply make a phone call. By calling her credit card company and asking for a lower interest rate, she can save hundreds of dollars in interest each year. Many card companies are happy to help a consumer that calls and asks for a little help; they will be more inclined to help a consumer that has made all of her payments on time and has no negative history with the card company. By kindly informing her credit card company that she is considering leaving for a card with a lower interest rate, she may be able to negotiate a lower rate for herself, as card companies do not want to lose business.
Use Coupon Codes
Women are notorious online shoppers and they love nothing more than buying their favorite designer items for less than full price. Women can save a significant amount of money at their favorite retailers when shopping online by simply entering the name of the retailer plus the word coupon into any internet search engine. Hundreds of coupon sites will appear with lists of coupons that will save them money on everything from shipping to a percentage off their entire purchase. This is a great way for women to save on their favorite products every time they shop.
Use the Dishwasher
While many people do use their dishwashers on a nightly basis, they think it’s simply because they are a little lazy and would rather not hand wash dishes. This is not the case. Using the dishwasher is far more cost effective than washing dishes by hand; especially for women who have energy efficient dishwashers.
No More Bottled Water
Many people choose to drink water straight from a bottle than from the tap; this is not at all cost effective. The average family spends a little more than $1,200 per year on bottled mountain water when a water filtration system that fits right over their kitchen faucet costs as little as $30 at the hardware store. This is a huge savings for everyone. Instead of spending that $7 per case on water, women can put that money in a piggy bank or in their savings account and use it at Christmas to buy presents or on their next family vacation.
Read Instructions
Household items such as shampoo, laundry detergent and dishwashing liquid come with instructions on the back. These are not just for fun, they are for a purpose. By using the amount that is specified on the back of the bottle of your household items rather than simply pouring things into the washing machine or dishwasher, you will save money because you will use less each time, which means you won’t have to restock that item as often.
Women are savvy; they can save money even when no one else can figure out how to. This is why women are often the ones in control of the budget. There are so many things that women can do to save money on everyday items, on things they don’t need often and on things they didn’t even know they could save on. Money can be saved in a myriad of places; not just the places that seem obvious. Women know to turn off the lights when the leave a room and they know to find coupons for groceries, but looking for coupons for shoes and hair accessories can only help.
Another method to save big is to compare car insurance quotes offered by various insurers. By using a quote comparison service like Kanetix, you could save up to $600 or more on your insurance in just minutes. Apply online today to save time and money.
Most people enter into contracts on a regular basis and the average person probably has multiple contracts that impact their finances every month. If you find yourself entering into contracts on a regular basis, you may want to review these contracts regularly to make sure that you’re not paying more than you should. These five contracts are some of the most common ones that the average person should review every year to make sure they’re not paying too much.
Cellphone Contract
Many consumers pay too much for their cellphone contract every month. If you’re paying for things that you don’t use on your cell phone, you could save a lot of money by cutting those extra features out. For example, you might be paying for unlimited Internet access on your phone but you only use it occasionally. Some people pay for unlimited text messaging and only use a few text messages per month. Review your bill and see what you’re actually using. Then see if the cellphone company offers a cheaper option for you to choose. By doing this, you could save yourself some money every single month.
Television
Most households pay for some kind of television subscription, whether it’s through satellite or cable. If you find yourself paying for one of these two subscriptions, consider cutting down your subscription to save money. Many people opt for the premium TV subscription and then never watch the vast majority of the channels. If you fall into this category, you may want to cut your subscription down to a more basic channel lineup. In some cases, you can even cut out your TV subscription completely. With the availability of online TV streaming, you can usually find most of the shows you want online for free.
Car Insurance
Your car insurance policy is a contract between you and your insurance company. Although you must have auto insurance if you drive a car, you don’t necessarily have to pay an arm and a leg for it. Every year, it’s a good idea to shop around and make sure that you’re not paying more than the market rate. In some cases, you can switch to another insurance company, get the same service, and pay less in premiums. Call around to some different insurance companies in your area to get quotes. You may also want to shop around online to see if you can find any good deals. Ask your own insurance company if you’re getting all of the discounts that you’re entitled to. For example, you might qualify for a good student discount, a safe driver discount or a mult-line discount.
Rent Contract
If you’re a renter, you might be paying too much for rent. If you’ve been in the same place for a long time, you might be able to negotiate a cheaper rent contract with your landlord. If you’re a good tenant, your landlord may be willing to concede some money in rent in exchange for the regular rent payment that you provide.
Movie & Game Subscription Plans
Many people today pay for movie and game subscription plans. Plans like Netflix and Gamefly provide customers with an opportunity to enjoy entertainment from their homes. You can get movies and video games sent to you through the mail. You can even stream many movies and TV shows straight to your TV. While these plans can be convenient, they can also get expensive. Look to see if you could reduce your plan to a cheaper one. For example, if you have the three DVD plan from Netflix, you might be able to get by with one DVD or two DVD’s at a time. If you never watch the movies or play the games that you’re paying for, you might want to cancel the contract completely. You can always cancel it and join again later if you find that you miss the movies and video games.
If you are looking to renew your car insurance policy, you should do an auto insurance comparison to see which insurance provider is most affordable for you. Go online to www.kanetix.ca to see which insurance provider offers the cheapest insurance quote.
With so many people in debt, there is no shortage of companies to assist them in paying off their bills. Unfortunately, there is also a lot of misinformation regarding the various debt relief methods and that misinformation is confusing people. Here are the top five myths about debt consolidation services offered by debt management companies and the truth behind the myth.
1. Debt settlement is always much better than debt consolidation.
Debt settlement companies are very different from debt management companies. Many debt settlement companies promise to negotiate with credit card companies and other creditors to get lower interest rates. They charge their customers an upfront fee. Debt settlement companies instruct their customers to stop paying their bills, which generally leads to more credit problems for the customer. Debt consolidation combines all monthly debts into one manageable monthly payment.
2. Debt consolidation is quite similar to credit counseling.
Credit counselors assist clients by helping them learn how to effectively manage their money so they do not repeat the same behaviors that got them into credit trouble. Debt consolidation assists customers with their current credit issues and helps them get out of debt so they can practice the strategies they learn in credit counseling.
3. Debt Consolidation will improve a credit score.
The way debt consolidation affects your credit score depends on a lot of factors. If you have already missed payments, making them again will increase your credit score over time. Making payments also positively affects your credit rating because after you make a payment, you have more credit available. Again, this is an increase over time. It will not occur in a day. However, if you close accounts after you have paid them off so you won’t use them again and get back into debt, your credit score will decrease.
4. Filing bankruptcy has less impact on your credit than debt consolidation.
Bankruptcy is a good choice for a small percentage of people. Those people have debt that far exceeds their ability to conceivably repay it. Chapter 7 bankruptcy stays on the filer’s credit report for 10 years. That is far longer than debt consolidation payments will affect your credit. After your debts are repaid through debt consolidation, there will be no record of it on your credit report. Debt consolidation is not the best course for everyone. If you cannot commit to the monthly payment plan because you lack the resources, bankruptcy will have less of an impact than nonpayment of your bills.
5. Your payments will be significantly lower with debt consolidation.
Monthly payments under debt consolidation will normally not be very much lower than your regularly scheduled payments. There are instances where debt consolidation services are able to significantly lower interest rates, but sometimes the creditor considers that a settlement and reports the forgiven amount to the IRS, where it is considered income and therefore is taxable.
Several options are available for people who need help managing their debt. Consumers should evaluate their options carefully to be sure that they choose the solution that works best for them.
Matt Becker is a freelance writer with a strong focus on debt management. Matt blogs about personal finance for Cash Advance USA, a site that offer payday loans for those who need a quick money.
