Debt is no stranger to most Americans. Credit is becoming easier to obtain and people are charging well beyond their means and at interest rates reaching 20% or more. While debt is a scary word that usually is seen in a negative light, not all debt is bad. You can actually make intelligent decisions and use debt as a vehicle for building personal wealth.
How To Settle Your Debts For Less Than You Owe
When your finances seem to have overtaken your life and you find yourself unable to make your payments each month, before you decide to declare bankruptcy you should attempt to obtain debt settlements with each of your creditors. A debt settlement is when a creditor agrees to accept less than the total balance owed in a lump sum payment, in order to close out the account and have it reported to the credit bureaus as paid.
High Yield Savings Accounts
Savings accounts are operated by a commercial bank or mutual savings bank, and are backed by the FDIC up to the limits indicated. Money in savings accounts earn interest over time, helping to grow your wealth. The amount of interest savings accounts earn is dependent upon the type of savings account and the establishment where you save your money. Interest rates are also dependent upon the economys current condition.
How Do People Get Into Debt?
There are two main ways that people find themselves crushed by the weight of their debts. Some people find that debt hit them like a ton of bricks when they lost their job, or experienced a medical issue that resulted in the inability to work or excessive medical expenses. Other people find that debt has sort of snuck up on them, over years of casually using credit cards for little purchases that they just didnt have the cash to pay for; or from taking on large purchases…
Freeze Your Credit!
Several states allow individuals to freeze their credit report- which prohibits credit from being issued in their names. While some states, including Texas, Illinois, Washington and Vermont, only allow credit freezes if the individual has already been the victim of identity theft- other states, including California, New York, New Jersey, Louisiana, Maine, North Carolina and Colorado.
Diversified Porfolios
Anyone you talk to about investments will probably tell you the same thing: Dont put all your eggs into one basket! This cliché simply means that when you are investing, you should not put all of your money into a single company; or a single industry. This technique of investing is called diversification, but there is more to diversification than just following the cliché.
Disciplined Saving
More important than the amount of money you save is the consistency with which you save it. Obviously, people who are wealthy and can afford to save large sums of money are going to benefit from larger interest earnings, but for the rest of us- even saving a few dollars on a consistent basis is going to add up over time.
Creditor Negotiations
Most people have found themselves with debt that has gotten out of control at some point in their lives. Before enlisting the services of agencies that specialize in helping consumers get their finances in order, you should attempt a few self debt reduction techniques to see if you can first improve your situation on your own.
Credit Card Roulette
If you suddenly find yourself drowning amidst a sea of high interest credit card accounts, you may wish to try a few self debt reduction techniques to make your monthly payments easier to manage and go further towards paying what you owe rather than just paying on excessive interest rates.
Credit Counseling And Debt Management Programs
Not all credit counseling services require that consumers participate in a debt management program, and not all consumers who need credit counseling also require a debt management program.
Choosing A Debt Couseling Program
If you are an individual that is having trouble finding relief from your debts and you feel there are not other options, you should look into getting help from a debt counseling program. A debt counseling program is designed to help individuals to get caught up on their debt and to also teach you how to avoid debt problems in the future. There are many programs; some legit and some are not legit. There are important keys and information that should be researched before choosi…
Certificates Of Deposit (CD’s)
Certificates of Deposit, commonly referred to as CDs, are a cross between an investment and a savings account. CDs have federal deposit insurance up to $100,000- which is what sets it apart from the investment world, but they have much higher interest rates than the traditional savings account.