The Great Expert Blog

If you think it is high time that you pay off all those debts, otherwise you may be inviting all sorts of troubles; secured debt consolidation loans can do the rescue job for you. Through availing secured debt consolidation loans you get rid of debt burden instantly as this new loan provides the finance at least equal to previous debts.

On taking secured debt consolidation loans, borrower gets rid of various monthly payments that he or she was making to different lenders. Previous debts are generally of higher interest rates and surge the burden of debt. Secured debt consolidation loan is taken at lower interest rate and therefore save money.

Secured debt consolidation loans are utilized also in clearing credit card bills, medical bills or other pending payments. One can use the amount also for home improvements, wedding or any expenses.

Borrowers are required to place collateral with the lenders in order to get secured debt consolidation loans. The collateral may consist of any property of the borrower such as home, car, and valuable papers. Main aim behind collateral is to provide a sense of security to the lender regarding the loan

Collateral can be an effective instrument in getting the required loan deal. It is the equity in the collateral that matters the most to lenders while deciding on loan amount and interest rate. Equity is value of the property minus the borrowings of the loan seeker. So, in case greater amount of secured debt consolidation loan is required, the lender will evaluate the equity. Higher equity makes it easier for the borrower to get a loan deal of higher amount at lower interest rate.

Lenders normally provide an amount anywhere in the range of £5000 to £75000 under secured debt consolidation loans. For availing higher amount of loan, financial standing and credit history of the borrower also becomes important.

secured Debt consolidation loans are availed at lower interest rate. The borrowers can get a loan deal at cheaper interest rate if they search for the lenders online. Numerous lenders have showcased their secured debt consolidation loans products. Choose the loan package that best suits your budget.

Borrowers who are going through a bad phase can also avail secured debt consolidation loan. The loan enables the borrower to improve credit history when they pay off debts. Such borrowers should first pay off easy debt and get this development included in their credit report. To judge the risk involved in offering loan, the lenders give credit score to the borrowers. A credit score of 620 and above is viewed as safe while lower score makes lenders hesitant in deciding loan terms largely in favor of the borrower.

To gain maximum benefits from secured debt consolidation loans, borrowers must give special attention to the interest rate and loan amount and keep both of them lower.

Peter Taylor is a senior financial analyst at easyfinance4u with an acumen for finance and insurance. In recent years he has
taken up to provide independant financial advice through his informative articles. To find Secured loans, secured personal loans, Bad Debt Secured loans visit http://www.easyfinance4u.com

Debt management (specifically unsecured) is the first step to taking control of your money! Add a household budgeting plan and you’ve got a powerful tool for money management.

Together, budgeting and debt management build financial security and independence. Yes, you can reduce debt and save for your future financial security at the same time! It can be done.

In fact, it’s the only budgeting plan that makes perfect sense. Budgeting to include debt management in your personal finance plan builds a good strong defense against credit card use.

Unexpected events and expenses play a significant role in creating debt for most of us. A good budgeting plan that prepares you for those events and provides a strong foundation to fall back on is essential for successful debt management.

This is where most self-created budgets fail. Even the best intentions are doomed if you are you guilty of this common oversight? Without a complete plan, we fall right back into the old credit card trap. Feeling helpless and cornered into using credit to just make ends meet.

Free yourself from the burden of credit card debt. You will never be financially independent as long as you have to depend on the credit card companies to survive.

Yes, I know the feelings all too well. Barely making ends meet, budgeting chaos, struggling to maintain “everything’s O.K.” while finances continue to get worse and worse. Stop the feelings of inadequacy and failure!

In today’s fast moving society it’s not unusual for the average family to be living way beyond their means. With that in mind, quit blaming yourself. This is the world we live in. Many of us have gotten trapped by society’s expectations.

I made the decision to stop the madness and help myself! You can too! A budgeting plan that includes managing debt will help you succeed at money management.

Create a plan based on your individual needs…set your own goals…and begin your journey to lifelong financial security and independence! After all, we all have different needs and obligations, so everyone’s plan has to be designed to suit their unique situation.

The key to independent wealth is living below your means! But wait…we’re getting way ahead now. After living way beyond your means for so long, it’s hard enough to scale down to reality. Once you have that mastered, and see how much money you didn’t even know you had, you’ll be eager to scale down even more!

Debt management is crucial for any budgeting plan to succeed. And, likewise, a good household budgeting plan is essential for any debt management program to succeed.

One cannot be successful without the other. Like “peanut butter and jelly” most of us can’t have one without the other. They just go together!

Cheryl Johnson is a mother of four helping herself and others become and remain debt free. Publisher of http://www.simpledebtfreeliving.com Simple Debt Free Living - A self-help plan, ideas, and resources for debt reduction, personal budgeting, frugal living, and extra income opportunities.

Can a debt consolidation loan eliminate your credit card debt? A consolidation loan might (or might not) be the key. There are several things you must consider when making the choice to consolidate debt using a debt consolidation loan.

First, is a debt consolidation loan your best choice to eliminate or substantially reduce your debt? There are other options available to you, including credit counseling and bankruptcy. Obviously bankruptcy is a last resort. You must examine several factors when making your decision on which debt reduction / elimination strategy to use. You need to get information on debt consolidation to make the correct decision.

•How much outstanding debt do you have?

•What is the interest rate of your current debt? Many credit cards have interest rates of 14% - 22%, depending upon your credit rating and payment history. Obviously, the higher your current average interest rate, the better off you will be if you consolidate your debt with a consolidation loan at a much lower rate.

•How much of your outstanding debt is unsecured? Unsecured debt has no collateral against it. Credit cards, student loans, store charge cards and medical bills are examples of unsecured debt. If you have over $7,500 in unsecured debt there a multitude of lenders that you can look at. Student loans fall into a different classification from other types of unsecured debt. In the United States, most are backed by the federal government. Usually you will have to use a secured debt consolidation loan to pay off your unsecured loans. You may also be able to refinance your secured debts, but you usually cannot consolidate secured debts.

•Do you own a home or other substantial assets to use as collateral for a debt consolidation loan? If you own a home or other real estate, how much equity do you have in it?

•What type of interest rate is available to you for a consolidation loan? The interest rate you receive on your loan is affected by a multitude of factors including the prime rate. For student loans, the borrower interest rate on consolidation loans is currently calculated as the weighted average of the interest rates in effect on the loans being consolidated, rounded up to the nearest one-eighth of 1 percent. They are capped at 8.25 percent.

•How is your credit rating? Someone with a very good credit score has options open to them that those with lesser credit ratings do not.

Keep in mind that if you have more than 20% equity in your home, you are usually not required to carry private mortgage insurance (PMI). If you have reached the 20% equity stage through either paying down the principal, asset appreciation, or both, you can probably drop PMI and lower your payment. On the flip side, if you are not paying PMI and you take out a consolidation or other home equity loan, you may put yourself back under the 20% equity threshold. This would require you to get a new PMI policy. Factor this in when making your cost / benefit analysis.

If you are constantly slipping backward and your cash flow is poor, you can improve things with a debt consolidation loan. Be careful and weigh your options carefully. Take into account the tax benefits you may receive by using a home equity loan to consolidate your debt. This benefit will vary depending upon your tax rate. You can get many free quotes for debt consolidation loans. There are several places that have multiple lenders compete for your business. Talk to several lenders to see which will give you the most favorable terms. You can substantially lower your monthly payment and significantly improve your cash flow situation with a debt consolidation loan. Just make sure this is the right choice for your needs.

Steve writes about a multitude of topics from home theater and automation to business and finance.
See his website, The Debt and Loan Consolidation Guide
for more information.

It’s time to fact the facts. You have overspent on your credit cards and are experiencing trouble paying for your balances. You know you need help to get out of debt or you wouldn’t be reading this right now.

Well, lucky for you, there are many steps you can take to release yourself from credit card debt. It will be painful for you, especially if you have gone overboard with all the luxuries in life, but it will be all worth it. Indeed, your efforts will be rewarded when you find it easy to get that home mortgage or car loan, and that you are enjoying relatively low interests as compared to others.

Step 1: How much do you really owe in credit cards?

The first thing you need to do is to analyze your total credit card debt. Compile all outstanding balances from your credit cards, and acquire the grand total for everything. Did you ever realize that you owe that much?

Step 2: Analyze your income and monthly expenses

It’s about time you know exactly where your money is going to! Based on your monthly income, determine the amount of money you are spending in each area - food, rentals, utilities, gas, entertainment, etc. Wherever possible, limit your expenses in each of these areas and eliminate unnecessary expenditure such as dining out, clothing or your gym membership.

It may be a reality that your current income may be insufficient to support your lifestyle, in which drastic adjustments need to be made. In the event you don’t have anything left even after you have reduced expenses, perhaps it is time to get a second job for a period until you get back on your feet.

Step 3: Make allocations for credit card payment

After you have deducted your expenses from your income, you should have some money left to pay off your credit card debt. It’s always easier if you pay off the credit cards with the higher interest rates first. This way, you will be plugging the larger hole first that is leaking money from your pocket.

Step 4: Stop charging to your credit cards

If you can’t stop yourself, just cut up your credit cards to stop altogether. Just leave two cards with minimum interest charges for emergency purposes only. This way, you won’t be piling up more debt on yourself, but rather just concentrating on reducing your outstanding balances.

Other debt reduction measures

If your debt is huge, you may want to consider other measures such as balance transfer to a 0% APR credit card. This way, you get to save on interest charges and get to pay off your balances gradually over the introductory 0% APR period. Another alternative is to get a debt consolidation loan and consolidate all your credit card debt under one loan. With the lower interest rates from a debt consolidation loan, you won’t have to bear the high interests while you pay off your loan.

Alan Bernstein recommends Find Credit Cards to apply for a First Premier credit card today.

Sure, if you had your choice, you’d avoid debt, spend only what you earn, and save a ton of money for the future. But sometimes it just doesn’t work out that easily. Life throws you those little curve balls, such as repairs on your car or home, doctor visits for your children, or any of those costs that add up and make it near impossible to get ahead. Plus, it doesn’t help that your health benefits keep going up in cost, along with the cost of gas, while your paycheck seems to be staying at the same level indefinitely.

Debt, in other words, sometimes has to be a way of life if you’re going to keep on keeping on. So that leaves with you the option of wracking up debt on high-interest credit cards, which will charge you nearly double-digit interest and will take forever to pay off. Or you could put your hands in your bank and hope they will loan you a second or third mortgage. Or as one last option, you could head to the casinos and put everything you own on red and spin the wheel.

How about choosing the safest path in the middle. That is, don’t mortgage your future, your home, or your family by taking out a risky line of credit on your home. And definitely don’t risk your sanity by hitting the tables at the nearest casino. You might hit it big, but most likely, you just hit the heartache in a big way. No, your best bet is to find the right vehicle for your debt that charges relatively low interest and is safe and secure.

Believe it or not, there are some credit cards now out there that can help you service your debt in this manner. Some of the best cards on the market now are called secured cards, and they are some of the safest out there because they protect your identity and your privacy. For example, if you shop online often or pay your bills on the Web every month, your secured credit card can make it so you don’t have to fear.

One of the scariest things about using plastic on the Web is that hackers, crooks, and other cyber thieves can tap into your account numbers, your birth date, or even your social security. With that vital information, they could then steal your identity, ruin your credit, and make it so you can never take out debt again.

With secured credit cards, though, build up a responsible amount of debt without fear of your identity being snatched from you. You can feel safe with these cards shopping at virtually any site on the Web. One reason is because these cards come with a feature called zero liability. That means that if a thief steals your card, or just your number online, you are not responsible for anything that he bought the card with. Many normal cards, on the other hand, would require that you pay at least $50 or more of the thief’s spending spree.

Some newer secured cards have also what is called one-time, or virtual temporary numbers. With these, every time you shop online, your card changes its account number, so that only you know it. With these features, and then some, you can finance your debt without fear of losing yourself in the process, figuratively and literally.

Having done his own Debt Consolidation himself, Duncan is a bit of a guru by experience. You can learn more of his Tips and Tricks on how to step out of Debt

Are you stressed out over your mounting debt? If so, and you’re hoping to find a permanent solution to dealing with your debt then debt consolidation may be the answer.

Debt is on the rise. More and more people are using more and more credit cards each year and living well beyond their means. Debt consolidation is often the best solution for those who find themselves buried in a mountain of debt.

Help is out there. There are a myriad of websites that offer debt consolidation information. The key is finding the right program, company or counseling service to best meet your needs.

One of the advantages of debt consolidation is that you can combine all your credit cards and/or loan payments into one more manageable monthly payment which is usually much lower than you were paying for all you individual debts combined. Disadvantages include longer payment terms.

The amount of money you can save through debt consolidation can really make the difference to your personal bottom line. This is because with debt consolidation you reduce or in some cases actually eliminate penalties and interest which you had accumulated. In most cases, you can also reduce your average interest rate.

Knowing your options is important. The whole debt consolidation process can be overwhelming. Through investigation you’ll be able to discover more about how the process works and how each of the options available to you will affect you and your bottom line.

Beware however there are many unscrupulous companies out there who will try to take advantage of anyone who is stressed out over debt. Be wary, if it sounds to good to be true, chances are it isn’t.

For some, debt consolidation is a relatively simple yet for others with a more complicated debt situation it can only make things worse if you don’t sign up with a reputable company who explains the advantages and disadvantages of their services upfront.

As a consumer, it’s your job to protect yourself by seeking out as many opinions as possible before agreeing to any debt consolidation arrangement that will impact your financial future.

Like anything debt consolidation has it’s pros and cons. Hence, it’s not a step to be taken lightly. Do your homework and ask questions.

When investigating whether debt consolidation and/or which debt consolidation company is right for you, you’ll want to find out what the charge is for their services, what the annual percentage rate (APR) is and what the amount of your monthly payments will be. Further you should know upfront how long it will take you to retire your debt and what the total amount is that you’ll end up paying.

Other questions like “What happens if I miss a payment? or “What happens if I’m late making a payment?” are also important questions to ask before you agree to sign up with a debt consolidation company.

Sherrie Le Masurier is a freelance writer who believes in being a wise consumer and living within her means. Her blog http://www.doityourselfdebtreduction.blogspot.com features information on how to get out of debt, debt reduction strategies, credit card debt reduction, debt consolidation, debt management tips and general debt reduction help.

The opportunities for spending money nowadays are unlimited. Too many people find themselves too strapped to pay their bills on time and complain when their bi-weekly salary is paid a couple of days late. Living on the edge is frustrating, stressful and completely unnecessary. No matter how much or how little money you make, good spending and saving habits can solve your problem.

“A penny saved is a penny earned” is a saying that can be applied toward many situations. With diligent research and patience, second hand furniture can be found at one third the price of new. The trick is to keep looking until you find almost exactly what you want. Prudence dictates that the higher the quality, the better the furniture will look and the longer it will last. Classic styles will never go out of fashion and you can sell your old furniture to defray the cost of the replacement. Make sure your old furniture is polished, empty, and shown to good advantage.

Make your meals at home interesting and romantic. Eating out should be a treat saved for a special occasion or enjoyed once in a while when far away from home. Car trips, excursions to the country, or times when you know you will be away from home for a long period of time are situations that require some forethought in the food department. Bring an apple or a bag of fruit to assuage your hunger until you get home. Remember that the cost of dinner for four at a nice restaurant can feed the family for a week.

Some large department stores welcome returns. Their generous return policy has proven a boon to their bottom line, bringing more people more often into their stores. You may return any item you bought at their store for a full refund, even though that refund may be in the form of a store credit. This credit can now be applied toward clothing, appliances, or any needed item that they sell. A garage sale would price these returns at ten cents on the dollar instead of at full retail value. Clothing department stores often double up on coupons and discount sales. That is the time to buy your annual clothing needs, not at the last minute when you need something new to wear. Holiday presents can be bought at any time during the year and put away until needed.

Another quicksand trap is the purchase of excessive insurance. Insurance agents can reel off numerous reasons why you need more insurance just to line their pockets with more money. Statistics can be bent to say almost anything so don’t fall for their pitch. Insurance for catastrophic events is necessary but to cover the replacement cost of one hundred percent of a loss is wasteful. Term life insurance is the biggest culprit. Plan your insurance needs carefully and sparingly for complete peace of mind.

Everyone has a hobby or an expertise in some area. Put your hobby to work with an ad in the paper and network your talents to acquaintances. If you are renting, consider buying a small home and use your rent money to pay off your mortgage. In time, your equity in your house will bring great rewards.

Vacations can cost a lot of money, all out of proportion to the enjoyment received. Cruises, time shares, fancy hotels and first class accommodations can triple the cost of your vacation. A hotel off the beaten track, an exchange of houses with a friend living in another part of the world, a car trip, or just a couple of weeks at a mountain resort can supply you with a great, fun-filled vacation for a reasonable amount of money.

Finally, always pay the minimum or more on your charge accounts to avoid interest charges. With all this money you are saving, be sure to place some of it into a saving account. Regular savings should be treated as a living expense, not a special event from a windfall lucky break. You’ll thank yourself later.

Enjoying retirement in New Jersey.

Many consumers in America have substantial debt. In the average case a consumer has 1.5 times annual earnings in short-term debt; credit cards and car payments. This is frightful as many Americans if they lose their jobs they will be out of cash to live within 2.3 months. In a wise America citizens would have at bare minimum 10 times their monthly income in savings and should be living under their means and income level to provide for savings for the future.

Debt is a choice and seems to appeal to those who find themselves wanting instant gratification. Some argue that the cost of living is so high, that they remain in debt just to live. Yet in really looking at the situation the consumer is constantly rewarding themselves in advance with items, which are not completely necessary for critical life needs; food, water and shelter. One who is truly honest with themselves who grinds it out as they grow their savings will find that they will get further ahead in the long run, by living in this way. Yet those who choose to go into debt unnecessarily find themselves in a pattern of continual borrowing to keep them in a favorable lifestyle, without ever paying off the previous debt. This is a choice and one, which continues to haunt the average American. In fact they get to the point that they believe that they deserve these things simply for existing, regardless of their level of productivity.

Some say that the world of finance revolves around debt and usury. Yet we must understand that banking is a business. If you will be frugal with your money and respect it, limit your outflows and save, then you can lend money to others and make money on your investment. Some believe that banks cheat consumers and charge high rates violating usury laws, yet it is their money and no one is holding a gun to your head telling you to accumulate more debt? There are many who write articles on the exploitation of Hispanic and African or Black Americans and how they are cheated with higher interest rates. Yet, since when does anyone need a new no expense, no option spared 4-Wheel Drive V-8 SUV for driving around a city, what is wrong with a Dodge Neon or a used car out of the classified section?

We have seen the government go after Usury banking charges and file cases as a knee jerk reaction to those who complain. African Americans and Hispanic Americans have in fact been charged higher interest rates for such things as; cars, homes and credit cards. The lower end finance game, with pre-paid payroll loans secured by pink slips, hock shops and check cashing stores have been issues as well. Yet if we look at what people spend money on, we see the Hurricane Katrina refugees with $2,000 debit cards, spend money on expensive new shoes, nudie bar lap dances and alcohol. That is not exactly respecting the money given to them or helping themselves put their lives back together is it? This attitude and human innate tendency seems to be more of the problem then the usury debate or the exploitation of such folks, after all it is a choice.

We are all aware of the FTC cases and NYC Attorney General Elliot Spitzer cases on Hispanic and Black Lending practices on automobiles. However when researching this myself there is another side of this issue and one should be aware of the NADA North American Dealership Association for automobile business and their defense of their dealership members. You see the have to package those loans of those with questionable credit and sell them and indeed those who make poor choices will screw up their credit. When discussing things with bankers and their justifications of loan to loss ratios.

Although one who studies demographics and costs in various areas of our nation, we also see both sides of this issue. We might also compare the prices in Grocery stores in low income areas to the higher income areas where the produce is better and yet the price; they are lower? Go figure, pretty hard to deny this stuff; so we see the points of these complaints and the distrust from those poorer communities. Indeed since the poorer folks live in depressed real estate areas which are generally closer to railroad tracks and industrial distribution, the cost to get the goods to market rather than all the way into the suburbs ought to be much cheaper and so the costs should be less right? Sure they should, but they are not.

Although such obvious issues do exist bankers do have an obligation to limit their risk and lend with a level head. Banking is a business and when someone does not pay back those loans or makes late payments, there are costs to the banks and such fall-out rates do affect the car dealership or credit card company and their standing with their money sources. Bankers say they are risk adverse and although one could argue it is not their money or that they will loan billions to Mexico or large real estate projects at prime plus .5% and yet sock it to the local 50-year in community, hardware store or contractor; one must understand that the bank is in business and they are allowed to choose to whom they lend. Now those who wish to loan to airlines right now? Well you know, I would have to ask about the IQ levels? No government should dictate to whom a bank lends, who an insurance company insures or who cashes whose payroll checks.

In the business world we realize and it has been said that; “Even equity stake is form of debt as investors expect to seek returns. Nothing wrong with that, call a spade a spade. You can’t succeed without risk.”

The real problem is that the average person has two point two kids, white picket fence, college degree, mini van and 1.5 times annual income in short term debt, credit cards mostly. Paying 18% the wrong way; they are stuck working and that is where they have economically enslaved themselves. This is 82.3% of America? So chances are if you are reading this article you doing fine by that standard.

Many Americans realize this is where they are and like the commercial says; “I am up to my eyeballs in debt somebody help me!” Many who we consider well off admit that they are; “floundering in debt” and perhaps that is an ironic dichotomy indeed as they may be a respected executive in charge of a large company’s success and even manage controls to prevent wastefulness, yet in their personal life have issues with money and solvency.

Many do not wish to take responsibility for their actions, remain in denial and thus say; well, consider this, that the cost of living, has been raised and all the bureaucracy causes everything to cost more, but not up to the breaking point, just enough to keep you working your butt off for maximum efficiency? Where as in the economic enslavement of the American Rat Race, they do have a point. I would like to point out that they also have a choice. Debt is a choice, you made that choice and if you want that to change you have to make another choice, to admit you are one of the 200 million Americans with debt that is out of control. What are you going to do about it? Complain or make a change? Think on this.

“Lance Winslow” - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

Living with debt is not something someone hopes for, but it happens and it usually becomes far more severe than it should before something is done to eliminate it. Once many individuals realize they have a problem with debt, they are too embarrassed to ask for help so they let themselves dive further into debt. Being embarrassment and ashamed are regular emotions many encounter when they realize they are in debt however you are not alone so you shouldn’t feel embarrassed.

Everyday people get into debt, but everyday people are looking for ways to debt
relief, whether it is through self-help, credit counseling, dept management
programs, or other resources. If you are struggling with debt you no longer have to
feel ashamed or embarrassed because there are resources that will steer you in the
right direction towards eliminating your debt. There are a variety of options one
can choose from so you have the option of choosing what debt relief option is right
for you.

First you have to consider how serious your debt is. Remember having debt isn’t
good period, but you have the possibility of different solutions depending on the
type of debt you are in. You have to decide what you think the best solution is for
you and stick with it, to make sure you eliminate your debt, and stay out of debt for
good.

Debt Relief Options

If you feel you have little debt but are starting to get concerned about being able to
pay it off, consider setting up on a budget if you don’t have one already or
reevaluate your current one. A budget is a way to view your personal cash flow,
which is your money coming in, and your money that goes out each month. You’ll
need to keep track of all your spending for one month to establish an accurate
household budget. Keep a record of your monthly income and all your monthly bills
and other receipts even with cash.

Once you see what you are spending and how much, you should be able to cut back
on certain items especially on impulse buys like candy bars or everyday items you
don’t think add up to a lot but do in the long run, like morning coffee at your
favorite coffee shop. Make goals for your self to set aside a certain amount of
money each month to put in savings or to put towards paying off other debt.

After you create a budget you can choose to eliminate your debt on your own by
ripping up your credit cards, dealing with your creditors, and still making all your
payments on time. However if you tend to be late on monthly payments it’s
recommend you consider the next option for debt relief.

If your debt is severe it’s recommended that you get help and fast. This is where
most people’s embarrassment sets in and they are afraid to get help. However
credit counseling is a great option to help you eliminate your debt. You can find
companies that do it for free, and all your information is kept confidential. A
credit counselor will evaluate your current situation and then recommend the best
solution for you.

A credit counselor may suggest a debt management program in which the counselor
would work directly with your creditors as well as provide you with additional
education, guidance, and motivation to make sure you get through the plan and pay
off your debt. This simply includes sending a single payment each month to the
agency, which is then dispersed to the creditors that you owe money to.

Another debt relief solution is by debt consolidation, where existing debts and
mortgage payment are compiled into one. You would take out a loan, often times
using your home as collateral and the lender sends you a check and you pay off
your creditors. However if you fall behind you put losing your house at a serious
risk.

An absolute last resort and not recommended is filing for bankruptcy. Bankruptcy is
a court action that stops lawsuits and any other attempts by creditors or collection
agencies to collect from you. However, it comes with a high price. It usually stays
on your credit report for a full 10 years, causing great difficulty in using credit to
purchase a car, home or other loans. It can even restrict you from certain types of
employment. Bankruptcy shouldn’t be thought of as a “get out of debt free card”
because it can still completely destroy your credit worthiness for a long period of
time.

The Road to Recovery

Now that you have all the options, it’s up to you to decide what you need to do.
Getting out of debt is in your hands, you should never feel alone or embarrassed
because there are others in your same situation and they are successfully getting
out of debt with the use of each of these debt relief options. For more information
on credit and debt management go to http://www.inchargeorg.org where you will
find professional budget counseling, debt management, and financial education
programs at your fingertips.

Katie Spencer is a contributing writer for a number of international financial journals
both online and in print. Katie has been delivering financial education to the public
in a variety of areas to include college budgeting, credit and debt management, and
money saving tips. Recently, Katie has been in partnership with a national
educational foundation to deliver financial advice to American consumers via the
web. For more information and to read the latest articles published by Katie, please
visit http://www.inchargeorg.org

Have you ever felt trapped in a Rat Race and wished to retire quickly but rich?

Have you ever felt that you are spending way too much time working with your boss at your office instead of with those you love? Your spouse, children, friends?

Have you ever felt frustrated because you are so deep in debt that you think you won’t be able to retire because as soon as you do, the money will stop coming and thus you won’t be able to pay off your mortgages and credit card?

Have you ever felt that you have no control over your life anymore in terms of time? Think about it: can you take a vacation just anytime whenever you want/ need it and as long as you want/ need it?

Have you ever wished that you can work whenever you want and wherever you want?

You are not the only one!

Too many people are trapped in a Rat Race because they have to. There are too many bills to pay, and too many dreams to fulfill. To them it seems that there is just no way to quit their job and enjoy life, travel and see the world with their loved ones.

Most people work because their bills tell them to, not because they really love to do it. Most people enslave themselves to their debt or job, because (they think) they have no choice.

This is when the craving for achieving financial freedom come in.

Freedom to choose when to work, without worries about income cuts. Freedom to spend more time with your loved ones, without worries about your employment or your boss. Freedom to take an expensive vacation, without worries about retrenchments thereafter. Freedom to do what you like, instead of what you’ve got to do, without worries about whether or not what you like generates enough income for you.

If you seriously crave for financial freedom, finding a better job with a higher paycheck is not going to work. Higher paychecks would usually mean more expensive lifestyle, more needs, more mortgages you THINK you can afford, more responsibilities thus more working hours and more time to spend at the office instead with your loved ones. And there is always the same problem: as soon as you stop, the money stops.

If you understand this, you will come to see that financial freedom is not measured by how much money you make by working, but by how long your money can support your normal lifestyle when you stop working.

And financial freedom is definitely not about accumulating abundant riches. It is about a golden chance to live abundantly!

Imagine! With financial freedom, you will have more quality time to spend with your family and friends. You will have more control over your life to do whatever you want, whatever you love, whatever you’re passionate about. You will be able to give more, help others, make your part of the world a better place to live! You will be able to spend as much or as little time with your business as you choose. You will be able to come and go at will.

What a great chance to live abundantly!

Is craving for financial freedom realistic? Yes it is. It is not impossible to achieve it. Ordinary people have achieved financial freedom. They may not have their own luxurious yacht, but they have the time and the money to take their family on an expensive cruise to the most expensive spot on earth.

There are basically only two fundamental things ordinary people have known for decades to achieving financial freedom:

1. Manage your time and money!
Time and money are the only two factors that keep people from achieving financial freedom.

To duplicate the success of people who have reached financial freedom, you do not need to have self-confidence, super intelligence, high education, great luck, hard-work or great career path. Although those are all good characteristics, they are not fundamental to achieve financial freedom.

All you need is a good time and money management, which would also result in high productivity!

Invest your time in creating extra money that you can later invest. You can do that by taking up a part-time job or working overtime.

As soon as you have more extra income, be a responsible manager of your own money! Live less than your income so you can start investing. It is from investing in a business that will one day generate income for you and sets you financially free from having to work for a living.

As much as possible avoid borrowing money for anything at all. I believe everybody has been taught about the negatives of being in a debt, but very few have been taught to consider the benefits of being debt-free.

By being debt-free, you will have more money to invest. Ask yourself this question: how difficult would it be to create an extra $1,000 a month by cutting expenses and by investing the money you normally use to pay your debt?

2. Start investing in your own business to create passive income!
Passive income is income which requires little or no work at all. The example would be writing a book and get paid forever on it, traditionally investing huge capital or starting your own business.

As a passionate home-business owner myself, I believe that having your own home-business is by far the most powerful way to create passive income. It takes only small start-up capital and you will have extra tax benefits.

It is easier to generate passive income by having your own business than by traditionally investing. If your goal was generating $40,000 annually you would need $1,000,000 to invest at 4% interest. Very few people have this much start-up capital.

But there are many ordinary people who have become home-business entrepreneurs and generated $40,000 annually by investing very small capital.

Finally, quoting Robert Bolton, “A belief is not merely an idea that the mind possesses; it is an idea that possesses the mind”, the idea that even ordinary people like you can achieve financial freedom should possess your mind and you will not be denied.

Dinar P. Wiria-Atmadja is the owner and writes for FinancialFreedomAwaits.com, helping families and individuals achieve financial freedom in years instead of decades. Visit the site here at http://www.financialfreedomawaits.com You are free to publish this article to your site as long as you include the resource box with the author’s name and an active link to Financialfreedomawaits.com
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