Posts Tagged get out of debt
You Can Erase Over 60% Of Your Credit Card Debt-It’s Legal And Ethical
Posted by Mark Livinston in Currency & Finance on November 22nd, 2009
Many people that are very in credit card debt and they do not think that there is a way out. They have been told that if they do not make their payments every month then they will go to a collection agency where their credit report will be ruined and then their financial life will suffer greatly. This is just not true because you have legal options that you can take advantage of and erase your credit card debt.
The government has created a program to help you erase your credit card debt so you do not have to file bankruptcy and have a credit report that is jaded for at least seven years. The American public should know that they can legally and ethically erase their credit card debt by at least 50% or more.
There are quite a few Americans that will receive a notice from their collection agency that makes them feel that they cannot pay it. And on top of this there are extra fees on top of their bad debt that these agencies charge. What many consumers fail to understand is that they can have their credit card debt erased where they do not have to hear from their creditors forever. The credit companies have already been bailed out by the government and now it is your turn.
If you have past due balances that you go to your creditors the best piece of advice we can give you is for you to cut your credit cards up until you have all your balances current. This may take quite a bit of time but in the end it will be more beneficial for you to be out of debt.
If that debt is something that is bothering you that is important for you to get your credit card debt erased once and for all. Billions of dollars was given to your creditors in order to bail them out and now it is your turn. Remember, your creditors have received more than enough money to make up for their financial losses and now it’s your turn to you erase your credit card debt.
You can now legally Eliminate Credit Card Debt Without Bankruptcy You can read more debt reduction articles on Beating Credit Card Debt.
What Your Banker Won’t Tell You When Advising You on a Debt Repayment Program
Posted by Chris Blanchet in Currency & Finance on July 17th, 2009
Aside from the obvious reasons why one should self-enroll into a debt repayment program, there are some secondary reasons why leading a debt-free lifestyle is vitally important to long-term wealth. We will explore one here, but first, let’s clarify the primary reason why debt is bad — it restricts your ability to save.
In keeping with the wealth-building theme, consider the average American who carries roughly twenty-two thousand dollars in credit card debt. At an average rate of 14%, this American pays $3,080 in interest. Getting on to a debt repayment program will allow this average American to chip away at the $3,080 he or she gives to the creditor.
It may seem that $3,080 is not a significant amount of money to pay on annual basis. But if you compound that amount over the course of five years, this seemingly insignificant debt at 14% works out to more than $26,250 that we allowed our creditors to gain. What should really irk us is that, as average every day investors, we can only rarely ever realize the same amount of returns on our investments. Even if we earn an optimistic 10% when we invest our $3,080, compounding our savings over the same period would only give us $23,764, putting us nearly $2,500 behind the big creditors. So a debt repayment program does not help level the playing field.
With the odds stacked in the creditor’s favor when it comes to rates of return, we should take a greater interest in adopting a debt repayment program. Why? Because not only is $23,764 is better than nothing, but it allows us to keep our $3,080 instead of giving it to corporations that enjoy much larger earnings than we do.
To exemplify the matter, let’s assume the average American has an after-tax income of $30,000. By paying an additional $3,080 to creditors, we are giving away more than 10% of our after-tax dollars (this is on top of taxes, insurance, and everything else). Why would we do this when we receive such little benefit in return? It doesn’t make sense. With this in mind, we should take an even greater interest in a debt repayment program, particularly one that will show us what our after-tax dilution rate is and we can reverse that trend.
In terms of improving the cash dilution rate, if the average debtor manages to complete a debt repayment program and starts saving that same $3,080, results will appear rather quickly. After another five years of compounded returns (rather than payments), we will start to see a cash APPRECIATION rate of roughly 8%. This is based only on the interest component (not the actual amount we paid out). Although 8% in our favor doesn’t compare to the 10% dilution when we repaid the debt, we have to remember that the odds are stacked against us. This only underscores the reason for adopting a successful debt repayment plan. And besides, how often does the average American see an 8% raise every year?
In summary, once we understand our cash dilution rate and how our true debt translates into actual dollars and cents, we can adopt a successful debt repayment program that will not only help us repay debt, but start to build wealth.
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