by admin | Bankruptcy, Consumer Proposal, Uncategorized
What is Consolidation?
Debt consolidation is essentially a technique that enables you to pay all of your withstanding debts through one single loan on lower interest rates and monthly payments. But before considering it your very last resort, make sure you are assessing all your options sensibly.
Thoroughly examine;
• Your outstanding balance
• Interest rates and
• Monthly payment modes
Benefits of Debt Consolidation
It is the ideal way to let yourself take a breath to regain your financial conscious and take control of your financial accumulations. In addition, debt consolidation provides a window of opportunity when it comes to saving money and enriching credit score.
Makes budgeting easier: Before debt consolidation, you had to make budgets for all of your expenses separately and then plan to pay the most important ones first. That seemed time-consuming and left you in between numbers all day. But with debt consolidation, things become easier when it comes to budgeting wisely as you only have to rely on a single budget for everything.
Lowers your Interest Rate: Debt consolidation works on the principle of accruing all your preceding multiple debts into a single loan. This way, a loan with comparatively lesser interest rates than individual ones, can be paid on monthly basis. This helps in saving a sufficient amount of money on monthly interest rates and overcoming debts much quicker.
Single payment method: This ends the terrors of multiple payment deadlines. All you have to do is make a single payment monthly. Monthly payments under debt consolidation are much smaller which gives you ample time to pay off all your loans through a single payment.
Collection calls dilemma: When individuals are in huge piles of debts, creditors pass on their accounts to collection agencies. This is when the nightmares begin. You start receiving several calls a day, constantly reminding you of your unpaid debt leaving you stressed out and worried. A debt collection loan frees you from such torments.
Overcome Credit Card Debt: A credit card is much the same as carrying your bank in your wallet but comes with high interest overheads in return.
Overcoming credit cards interest rates sometimes as high as 29% can make anyone break a sweat. Debt consolidation provides means to pay high interest debts credit cards reducing the load of outstanding balances.
Reduces stress levels: An amazing perk of debt consolidation is the decline in stress levels. Debt is considered to be one of the most crucial factors in stress increase globally. A constant reminder of due able debt keeps you on the edge of the bridge, making it impossible to enjoy other things. Debt consolidation will keep you focused on what’s important and releases the nerve-racking pressure on debts on your soul.
To conclude, financial matters require serious thinking. Keep in mind that debt consolidation is one suitable way of paying off debts but not always the best. Therefore, it would be wiser to consult any credit counselor or www.gtacredit.com– before reaching a conclusion.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
How heavenly would it seem if all our bills were paid on time and loans and money borrowing went out of the equation? Sounds ideal, yet of course hypothetical, at the same time. Financial troubles often come with ringing warning bells. Spotting them early with a proactive approach will always minimize repercussions later.
Lack of a planned budget: Ask yourself, have you ever ordered food in a fancy restaurant without looking at the menu? “No, never, why would I?” must be your top answer.
This is exactly why you need to plan a monthly budget wisely. Budgets are like gate keepers; they keep hold of your spending and navigate your financials accordingly. It is a way of seeing forward by staying in the present. It is wise to plan in advance so you have a better idea of how much you need to spend and how much to save up. Start by making a priority list. Identify the regular and irregular, or emergency expenses. That way, eventually, you will be able to eliminate financial worries later on.
Relying on Pay day Loans: A financial nightmare takes root the moment you start relying on pay day loans for your payments.
These short-term loans may help you in your desperate times, but they always come with a major catch. With higher interest rates, these loans will create hurdles for you in the future. Opting for loans from banks or using credit cards, is a much safer way to counter financial needs in the longer run.
Little to no emergency savings: Save for a rainy day! This is the first thing every parent teaches a child when teaching money value. If you listened, good for you; if you didn’t, pity.
You are on the road to financial disaster, if you are out of your emergency savings or worst, you have no savings at all. Emergencies don’t come with signboards. Remember that! One can’t simply ignore the costs for medical or automobile troubles when they come. Borrowing loans will only be a burden with added costs of interests. Saving up for them should be the first priority in life.
Not only that, make sure you are saving up for your retirement too.
Routine expenses via Credit card: Frequent use of credit card for day-to-day expenses is not any ideal way if you want to avoid financial bumps. It will ultimately result in higher interest rates which you obviously must be aware of, causing you to fall behind on money for the future when you need it.
Making Minimum Payments: It may seem at times that paying minimum payments is no payments at all. But don’t stop. Making small payments will save you from collection companies suffocating you with phones calls and bankrupting you. Don’t rely on what the bill statement says; try to pay as much as you can, when you can.
The bottom line
If reading this article made you think harder about your financial situation, then surely you need to start making wiser choices. It would be advisable to sit down and start visualizing your options to cut down on the unnecessary baggage and save more money.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
By far the smartest way to avoid going bankrupt is to save. It is sad, that most people do not realize the importance of savings. It is an art that not only helps you maintain a healthy financial position but also aids you when the situation resembles more of a crisis. For most of you, saving becomes a hassle as you do not have a direction or guideline as to what and where you can save your money. If that is the case with you, follow the simple tips listed below that will allow you to save effectively and efficiently.
1. Set Goals for Saving
Like every other thing, saving also needs motivation. Decide what you are saving for; whether it’s that sports car you have always wanted, or the homely diner you always wanted to own, it could even be a dream vacation or simply buying a house in five years time. Set a target and then work out how much you need to save every month to achieve it.
2. Set Aside Your Savings First
As soon as you receive your paycheck, set your intended savings aside no matter how big or small the amount is. If you fear you would sway at it if given an option, set up an auto debit from your pay account to your savings account. That way you would not cheat yourself out of a good long term savings.
3. Create an Interest-Bearing Account
Keeping your savings and checking accounts separate reduces the chances of you borrowing out of your savings from time to time. For long term savings, explore options of investing into products that will yield higher returns for you.
4. Save on Utilities
Save on your utility bills where you can. Lowering down your water heater thermostat can help you lower down your monthly energy costs. Opt for tankless water heaters instead of the conventional storage tank water heaters to further reduce your utility spending.
5. ‘Staycation’ Instead of Vacation
Everybody needs a vacation. It’s only fair that you take a break every now and then fly off to your dream destination spending a fortune. The idea is to take a break and while you are saving, a better option would be to look for fun vacation spots close to your home-it will cost you far less than an overseas vacation.
6. Take Home Packed Lunch
One of the most convenient ways to save is to save a little every day. If you buy lunch at work every day, it surely costs more than it would to take home-made lunch along. For example, if you save $4 on an average, you can create a good fund amounting to $1000 by the end of the year.
Simply put you can end up saving a valuable amount given you implement these basic habits into your life and making an effort to save.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
Bankruptcy, like everything else, has its consequences- both good and bad. If you plan to declare bankruptcy in order to get out of the sea of debt, you might want to know how bankruptcy will affect you and your life. Following are both sides of the coin to help you make the right decision.
The Negatives
- Temporarily destabilized credit: A bankruptcy appears as a negative mark on your credit report, and once the bankruptcy is filed, it stays on your credit report for about 7 years or more. However, with time, the effect of bankruptcy on the whole ebbs away and your recent actions begin to highlight your credit report.
- Problems in getting loans approved: Since the Bankruptcy filing appears as a black mark on your credit report, it would be extremely difficult for you to qualify for a loan in months directly following the bankruptcy. Even if you do qualify, it would be for low dollar amount-high interest loans only.
- Trouble in getting work: Unfortunately, for some employers, bankruptcy is a reason good enough to not hire someone. Nowadays, employers carry out credit checks in addition to criminal background checks for prospective employees. So if you do not have a job at the time of bankruptcy, you might have trouble finding one immediately after.
The Positives
Fortunately, not everything resulting from bankruptcy is negative – no matter how we see it, bankruptcy is in fact is a protection intended to relieve the burden of liability for people struggling to make ends meet. Listed below are some of the specific positive effects you can generally expect when filing for personal bankruptcy:
- End of lender contact: Once you file the bankruptcy, you are then legally protected that takes effect. This protection stops all sorts of creditors from contacting you, which eventually means that you no longer have to be intimidated by threats of repossession, foreclosure or garnishment through any mode of communication during your case.
- A new financial beginning: the decision to file for bankruptcy is a major step, and thus offers an important reward: a chance to rebuild your life financially. If your bankruptcy case proceeds normally, you have an opportunity to restructure your finances so that they are healthier and better than when you filed for bankruptcy.
- Improved credit than before: Immediately after the bankruptcy, your credit rating will definitely take a hard blow, but as you learn from your past mistakes and take steps towards a better, financially secured life, you have a chance to create a strong credit.
For more on how to make the most of these positive effects and alleviate the damage from the negative aspects, you might want to approach credit counselors at GTA credit to steer you through this financial storm.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
With bankruptcy plaguing the country, it is only necessary to know how one can stay clear of it. One of the biggest causes of bankruptcy in recent times is over spending, which leads to building up of loans and credit, eventually becoming a burden too heavy to carry. Listed below are smart ways in which you can avoid making a mess out of your finances.
Borrow Only What You Can Repay
For every dollar you borrow, make sure you have the capability of paying it back on time. Most of the times, creditors will make sure of that before lending funds to you; however, you as a borrower have the ultimate responsibility of making sure you honor your commitment. Draft out a plan so that you know what and how much you can repay.
Start Saving
Make it a habit to save money regularly. Set up a deposit account with little or no charges and transfer a certain sum of amount into the account each time you get paid. The money you save can pay for unexpected expenditures, or a vacation later.
Review and Pay Existing Bills on Time
Make an effort to pay all current credit card and utility bills on time. You can opt for the direct debit facility offered by your bank that makes regular payments against your account on your behalf. This way, at the end of the month, you will have only a nominal amount to pay or maybe none at all.
Take charge of your finances by reviewing your bills, bank accounts, and credit card activity statements on a monthly basis. This will not only help to investigate any erroneous or doubtful transactions, but will also bring to your notice any bills that you may have not paid.
Keep a Track on Your Credit Cards
These credit cards can prove to be fatal for your finances if not monitored properly. If you have more than one credit card, it is wise to only carry one with you. This not only saves you from unnecessary expenditure but also prevents credit card frauds in case your card or wallet is lost or stolen.
Close down any unused credit cards that you have in your possession – this will help you will smartly evade charges and fees on your dormant cards, not to mention curb the urge to overspend and use up additional credit.
Review Your Credit Report
At least once a year, make sure you review your credit report – always do it before you apply for further credit. The benefits of doing so are two-folds; firstly it will give you a clear picture of where you stand on your credit rating, and secondly, you can spot and fix any errors in the report that may affect your report adversely.
Still, if you are having trouble managing your finances, contact a credit counselor like GTA credit as soon as possible and allow them to help you.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
With an increasing number of people declaring bankruptcy in recent times, one lives in fear of the repercussions of even the slightest financial crunch that materializes in our everyday lives. Nobody wants it, nobody likes to go through it, but the truth is that reasons of bankruptcy vary from person to person and this crisis could hit even the most financially sound people.
Luckily, there are certain defensive measures you can take to avoid having to file for bankruptcy.
Settle Your Debts
Filing for bankruptcy may often lead to liquidation which means selling off all your assets and property; thus a smarter way to go about this would be to hold onto your wealth and still pay off your creditors by negotiating on your debts. You could opt for Debt Consolidation, Consumer Proposal , both of which allow you to make payments to lenders in easy affordable sums.
Paying of your debts will keep you in control of your finances and away from filing for bankruptcy.
Borrow from Family/Friends
Do not feel ashamed of asking your friends and family for financial help. Make a budget and estimate the amount you would need to avoid bankruptcy; you will know how much you need to borrow once you subtract the amount of money you can afford to pay yourself. Just make sure you have a comprehensive plan for paying back both your family and lenders on time.
Sell Your Property
Sell off the excess property to repay your lenders, or at least raise enough money to save you from filing bankruptcy altogether. This does not mean that you empty your house, but parting from a few valuable assets may prove a fruitful investment for your future. Besides, it’s always better than losing everything you own.
Make Sacrifices
Prioritize your expenditure – avoid unnecessary spending on things that could cost you everything you own. Start living your life fulfilling just the basic needs, restructure your spending pattern; save more and pay off your creditors.
Working on one or a combination of the above suggestions could save you from declaring bankruptcy. It will not be easy, but it sure isn’t impossible either. If you still feel it is too much for you to handle on your own, consult a credit counselor or personal finance consultant at GTA credit to get your finances back on track.
