Cyber Space Play

Nearly everyone deals with economic hardship in the course of their financial existence. Because of this, bad-debt will likely crop up. People sometimes may meet these drawbacks because of job loss, legal separation, bereavement or just plain poor personal cash management. Small businesses characteristically meet these difficulties within the 1st 2 years of business. To blame for a venture bankruptcy can range from increased competition, accidents, loss of sizable clients to distinguish and more. No matter the basis, bad-debt can lead to insolvency. Nevertheless, there are bankruptcy alternatives that can save your individual credit and your business credit.

Insolvency is regularly definable as the inability of an organization or a person to pay the financial obligations owed to creditors. When filed, the debt holder (your firm or yourself) is obliged to surrender all unexempt real property and inventory for sale. While private possessions are kept, you also subscribe a pre-established portion of your earned income to the creditors based upon a structured repayment agreement. Your FICO scores will become very low for a long time, meaning that you will not be in condition to receive funding for any private or commercial endeavor for a long time.

The headaches and strain made because of these unpaid fiscal responsibilities can be burdensome, to say the least, specially when the idea of filing financial dissolution creeps in to your psyche. Within these positions, it remains important to remember that you own options. It is critical to seek out the alternatives, such as a fiscal adviser who can create a debt liquidation program for you.

You may ask: “How come my bankers are are inclined to permit debt negotiation?” The truth is that almost any alternate is advantageous to the lender compared to insolvency. Bankruptcy alternatives are invaluable to both the financial institute and you. The lender is able to recoup a part of the moneys that the lenders are owed and you are able to handle. Allowing a debt liquidation plan that is often less than the primary total you initially owed is far better than nothing.

Debt resolution is an extremely advantageous option compared with financial insolvency for you, as an individual or a commercial enterprise owner. Especially when you are taking the future into consideration. Insolvency should be averted at all costs considering the fact that financing will be almost unworkable for any individual or business enterprise you perhaps will have later on down the line. In that respect, there isn’t a new start; insolvancy tags along wherever you go. Irrespective of what variety of debt you have acquired, always seek a debt resolution program as the primary choice when considering bankruptcy.

For the average American family, debt, and especially credit card debt is spiraling out of control at a record pace. The average household credit card debt has risen dramatically from $3000 in 1990 to over $8000 today. Personal bankruptcies are also at an all time high, prompting Congress to consider a radical bankruptcy law overhaul, designed to weed out those who are merely taking advantage of the system loopholes while directing many to more palliative alternatives such as a debt management program.

Of course some debts are considered necessary and indeed wise choices. For instance, few if any could afford a house if we had to wait until we could buy it outright. Generally speaking, a home is an asset that, over time, appreciates in value. Another debt that “makes sense” is a student loan. All data points to a direct correlation between income and educational level. However, what about that big screen TV you really didn’t need, or that new car when a used one would have served the same purpose and not have created a financial nightmare. We need to start telling ourselves NO!

According to the experts at The Credit Counseling Foundation, Inc. (www.GoDebtFree.com), statistics show that about 60% of all credit card holders do not pay off their entire balance each month. With average interest rates still hovering around 15%, this increases the cost of everything you buy by at least 15%. And if you are only making the minimum payment, you could be looking at 20-30 years to pay off that balance depending on your interest rate. Minimum payments are designed to cover mostly interest, thereby keeping the holder chained to their credit card debt. One may ask with interest rates at 30 year lows why are credit card interest rates still so high? Simply put, there are no regulations on credit card interest rates requiring that they mirror prevailing interest rate indexes. Along with late fees, user fees and penalties, these interest rates, which can be greatly increased due to just one single late payment, are all implemented to generate tremendous revenues for the issuers, while at the same time creating a situation of unwanted indentured servitude for the debtor.

When faced with this overwhelming problem, what is one to do? Well the first line of attack is to cut up all credit cards. Only buy what you can afford to pay for in full. If you decide to keep a credit card, pay it off every month. This may sound like basic, common sense advice, but what about the average Joe who has already accumulated too much debt and cannot pay it off? If you are extremely disciplined and have the extra cash, you may want to formulate a plan to pay off the higher interest cards first. For most us who neither have the cash flow nor the self-discipline to adhere to such a plan, or don’t want to lose the built up equity in our home by taking out a line of credit or re-financing which, by the way, could put the family home at risk should future financial setbacks occur, a good alternative would be to use a non-profit 501 (C) (3) credit counseling service. These companies can afford their clients many benefits that they could not ordinarily accomplish on their own. Interest rates can be reduced, accounts can be brought back to current status through re-aging, and maybe best of all, can stop those annoying and embarrassing creditor calls. It can get you a workable monthly payment while shortening the payoff term to typically 4-6 years. This can save thousands in interest costs! Another overlooked benefit is that all credit cards put into a debt management program are closed, thus eliminating all temptation no matter how hard you find it to say NO! All this without the trauma and stigma caused by bankruptcy or settlement.

Since there are literally thousands of these debt management companies out there, how does one go about choosing the right one? In addition to using a non-profit agency, check factors like the company’s Better Business Bureau report, are they accredited by a nationally recognized certifying agency such as ISO or COA, are their counselors certified as well, how long have they been in business and word of mouth recommendations. Another consideration is whether to use one of the local community funded agencies or a private one. Although the local agencies have the advantage of being able to meet you face to face, due to limited budgets they can lack the expertise of private companies as they are often staffed predominately by volunteers and don’t offer the array of modern on-line and technological services which today’s consumers deserve and most large creditors demand in order to extend the debtor their most favorable terms. Moreover, many locals encumber their clients with restrictive guidelines, going as far as limiting the number of haircuts you can get or movies you can view.

If you have reached the point where you are transferring balances just to keep afloat, making minimum payments and getting nowhere or getting harassed by creditors and view bankruptcy or settlements with your creditors as both far too damaging and morally unacceptable, you may want to consider contacting a reputable credit counseling/debt management organization. A good starting place besides the BBB, would be one of the debt management organizations that belong to the American Association of Debt Management Organizations (AADMO). Most of all, don’t despair! Help is out there, just do your homework and choose wisely. With the right agency to guide you combined with a true commitment to getting out of debt once and for all, there is indeed light at the end of the tunnel.

The Credit Counseling Foundation, Inc
provides web-based education and personalized consumer credit counseling to clients
and the general public in an effort to help consumers use credit wisely. Visit
us at www.godebtfree.com

Who will benefit from the new bankruptcy reform laws? The financial services industry and other big business groups, that’s who.

These groups contributed millions of dollars to elect Bush and other Republican
candidates in 2000 and 2004, with the goal of overhauling the bankruptcy system.
They and other big business groups have continued to spend millions, rage
arguments and lobby persistently for bankruptcy reform. In March 2005, with the
House and Senate loaded top heavy with Republicans, they succeeded.

The financial services industry includes the banks, credit unions, the American Bank
Association, credit card companies and retailers.

Big business groups pressuring for legislation include auto makers such as the Ford
Motor Company, General Motors, and DaimlerChrysler. These groups were willing to
pay millions of dollars and spend many years lobbying for bankruptcy reform. The
car makers, unhappy with the way auto loans are handled when an individual files
for bankruptcy, pushed for reform.

Others who lobbied heavily for reform were car dealers, record labels, and gaming
interests such as casinos, many of whom represent large corporations and prime
lenders, such as MBNA Corporation and American Express Company, who
contributed millions not only to stack the political odds in favor of the bankruptcy
reform bill, but to elect candidates sympathetic to their goals. MBNA Corp. and
American Express Co. are among the top beneficiaries of the bankruptcy reform.

Bankruptcy reform supporters argue that debtors seeking relief through bankruptcy
are either purposely gaming the nation’s bankruptcy system or they are
irresponsible spenders who should pay at least a portion of their bills if they are
able to. In fact, about half of the claims filed for bankruptcy are attributed to
medical costs.

Bankruptcy reform will require most filers to receive credit counseling and lessons
on how to improve their financial management skills. Bankruptcy reform states that
filers pay for the counseling themselves.

Included in the new bill is a provision requiring that credit card billing statements
include an example of the time it would take to pay off the balance at a particular
rate of interest. Billing statements are also required to supply a toll free number for
the consumer to call and inquire about the length of time it would take to pay off
the balance if they are only making the minimum monthly payments.

Citizen advocate Suzanne Arthur highly recommends the Repair Bad Credit Newslog,
for news and further information on consumer debt and repairing credit scores. Go
to: Bad Credit Repair Newslog

Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you.

Credit counseling is a program designed to help those who are in a state of debt and cannot find a solution to their debt problems. They offer services that will allow you to work with a certified credit counselor to devise a plan that is tailored to your specific needs and goals. Credit counseling agencies often provide services for free and will help to educate you about how to avoid financial problems in the future by offering debt management classes or seminars. They do not erase your debt. Instead they work with you to budget money so that you can pay off the debt often times by debt consolidation. Collection will continue while using a credit counselor, however, in most cases companies who are owed money will try and work with you to help you payoff your loans. Credit counseling services often help you to reestablish credit after the loans are paid.

Bankruptcy is very different. It will completely clear your debt in most cases and you will no longer be hassled by collection agencies and their attorneys. There are two kinds of bankruptcy; the one that is right for you will depend on your situation. When filing Chapter 13 bankruptcy you are able to keep property that is mortgaged such as your house or car and are expected to repay debts in three to five years. Under Chapter 7 bankruptcy, you must give up all property and assets that you own. There are exceptions in some states for items such as work tools and household furnishings. Bankruptcy will certainly clear your debts and stop foreclosures and wage garnishments, however, you will be unable to establish credit for up to ten years. Filing bankruptcy can also be very expensive compared to credit counseling.

Take time and research credit counseling very carefully before deciding on bankruptcy as it can save your credit in the long run. Most people feel much better about themselves when they can pay off their debt and become educated about how to stay out of debt rather than filing bankruptcy.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and credit counseling information that you can research in your pajamas on his website.

Sometimes senior citizens no longer need their policies which they had taken in their youth. They may not be able to pay the premiums anymore, or they may need the cash for some other purpose. Some years ago, the only options to get rid of unwanted policies were to cash them in at their surrender value, or, worse still, to allow them to lapse. Both these methods caused a serious loss to the policyholder.

But now there is a way out of unwanted policies. Unwanted policies can be settled for a cash value, which is higher than their surrender value at that moment. Settlement of a policy involves a third party which buys the policy from the senior citizen and becomes liable for all future premiums. The original policyholder, i.e., the senior citizen, gets a lump sum amount in cash.

Senior Policy Settlements are becoming hugely popular because of the direct cash compensation that they provide. Senior citizens can use the cash to invest in a more lucrative policy, such as a long-term care policy, or use it in some business which could be more profitable. Some seniors may want the cash to just fulfill some lifelong desire. Whatever be the purpose, the cash advantage is what is driving millions of senior citizens toward Senior Policy Settlements.

Life insurance settlements have spawned a number of financial organizations specializing in settling senior insurance policies. Actually, senior life settlement is an offshoot of the industry which caters to settling policies of terminally ill patients. Senior Settlements are provided to adults who have crossed the age of 65 years. There is also a minimum limit on the policy value to be eligible for settlement. Both these qualifications differ from state to state.

Broker companies handle the paperwork and introduce the policy in the market to be discerned by interested buyers. Actual bids are drawn by interested parties and the policyholder gets the liberty to choose the highest bid among those received.

Senior Settlements provides detailed information about senior settlements, senior life settlements, senior life settlement providers, licensed senior settlement company and more. Senior Settlements is the sister site of Cash For Annuities Info.

Viatical settlement involves the selling of a life insurance policy by a terminally ill person to unrelated investors who can be banks, private companies, or brokers. The seller gets a lump sum amount as cash payment while the investor gets the death benefits on the person’s demise.

Grim as they may sound, viatical settlement can provide financial relief to the terminally ill people, provided they do not fall prey to unscrupulous elements who may take advantage of the vulnerability of the person.

A terminally ill person can sell his policy to a private funding company or to w broker, who will then sell to other viatical settlement companies. The physical and emotional demands of the terminally ill person are traumatic enough and so a lot of care needs to be taken to ensure that the policy is not sold to any fraudulent broker. In order to ensure this, you must ensure that the broker has a license to purchase viatical settlements. The New York State law has made it mandatory for all brokers to be licensed. Therefore, you must make it a point to check the license of the concerned broker. If you find that the broker is unwilling to show his license, do not continue with the transaction at any cost.

Another thing that you must keep in mind is that you must go through the copy of the agreement very carefully before signing it. The broker will purchase your policy for a reduced amount of the actual face value, but do not give in to pressure tactics and try to get the best bargain possible. You should contact your insurer and check if your policy contains any accelerated benefits, because these benefits allow a person to collect a part of their death benefits.

The viatical settlement broker will charge a fee for completing the life settlement agreement. This fee is based on the contract between both the parties and is approved by the New York Superintendent of Insurance.

Viatical Settlements provides detailed information about viatical settlements, viatical life insurance settlements, viatical life settlement associations, and more. Viatical Settlements is affiliated with Sell Structured Settlement Payment.

Often some derelict will be awarded some huge amount of money from a noble company due to a run away jury in a Kangaroo Court. Since many times the company paying the money out agrees on a structured over time settlement, the plaintiff of course is a lowly human and has lots of desires for riches and he has little if any cranial capacity to understand the enormous gift the courts have grated him as our nation turns in to a socialist quagmire of re-distributing wealth to those who do not deserve it. Yes a few have been damaged and do deserve something, but usually not. If you disagree with that, you are wrong and I am right.

Now then, since these folks who are future Darwin Award Winners and probably free T-Shirt Jerry Springer guest stars have these huge structured settlements you can make some money by buying these structured settlements from them. For instance if a man receives a 10 million dollar settlement over ten year, he will receive 1 million per year. But he may want all the money now instead so he can go buy stuff? So you may be able to give him 6 million in cash now and you get the 10 million over ten years. This means you get a 40% return guaranteed over the next ten years. Now then such an investment is not as good as others in that your annual rate of return is only 4% and many of us know that in the stock market over time we have seen 7.7% annual returns. But it is something to think about. Now then, what if some one receives 1.2 million over 5 years and you give them 500,000 in advance? Now things are looking a lot better aren’t they? Any way 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/

It’s important to get out debt. Debt paralyses the budgets of families and individuals and makes a dent in their financial future. You can get out of debt right now. All you have to do is a bit of budgeting. Write down all your incomes then total up the incomes. Similarly down your total expenses.

Total the amount of expenses that you have. Then subtract the total of the expenses from the total of the revenues. If it’s positive, then you are able to save the dollars. In case its negative, it means that you are living beyond your income. Which is why you are taking debts to cover your expenses. Debts can also be taken as a measure for tax saving. However we are not talking about that financial aspect. When debt paralyses the financial future of the family, then its time that drastic measures should be taken.

Then look at the debts that you have taken. If you have taken a loan to buy the latest cell phone, the sell the cell phone and buy a cheaper one. Pay of the loan. Don’t buy an expensive model till you can afford to buy one. This should be a thumb rule for almost all the things that you buy. Stop buying on credit and you will get out of debt faster. Repay small loans such as payday loans since they attract a very high interest loans. You pay more in interest than you would for the principal.

Plan for the future. You should have short term, medium term and long-term investment plans. Therefore start saving and investing in the future. This will also get you out of debt. Getting out of debt also increase your credit rating. All individuals have a credit rating. The more positive the credit rating, better are your chances or getting the loans that you really require like the mortgage loan for the house.

If you enjoyed this article check out this list of get out of debt related articles and here you’ll find our most recently added debt help for your reading.

Strange title for an article on debt, you might think, but what I’m doing here is throwing out a rubber ring into the sea of debt. It’s not going to rescue you and take you back to dry land. What it is going to do is give you something to hang on to while you get your bearings and hopefully, having done that, you can start swimming in the right direction.

OK, enough analogies for now, let’s look at the problem. This is the first most important step of solving your debt problems, realising that you both have a problem and that you need to do something about it.

First things first, all those bills and receipts that you’ve been shoving down the back of the sofa for months, you’re going to need to dig them out. We’re also going to need a bank statement so get hold of one of them. The only other things we need are a blank piece of paper, a pencil and your brain.

OK, still with me? Good, draw a line down the middle of the paper and on the left hand side write down all the money that’s going out every month. This isn’t just bills and mortgage payments, this is ALL the money so include shopping bills, money for cigarettes if you smoke, beer money, etc. etc. As much as you can think of that you spend in a month.

Now, on the right hand side of the paper write down all the money that’s coming in each month. This will probably be a much shorter list and will include wages if you’re working, any benefits you might receive, etc. etc.

The next thing we need to do is add up the two columns. If the number on the left hand side of the paper is higher than the number on the right, your debt problems are only getting worse at the moment. If the number on the right is higher, solving your problems should be much easier.

Whichever result you got, just the simple task of writing down all this information will show you a true picture of your immediate financial situation and should help you to realise where all the money’s going.

If the column on the left is the higher value you’re going to need to start working down that list and seeing where any savings can be made to get the total down below the other side, or look at the other side and see how you might get the total up, although this is significantly harder.

Remember selling things is only going to give a short term boost to your finances, if without the sale the column on the left is still greater that the right, your debt problems will only return again later so don’t think that selling things will solve all your problems.

So, look at the numbers and make a few plans about how you might approach the task for the next month. Don’t look beyond that right now; the most important thing here is that you start swimming. Whether the shore is 100 feet or ten miles away is nowhere near as important as starting to swim right now.

For the next month, make a note of all your expenses going out, right down to the last penny where practical. This will do two things. It will help you realise where the money is going as you spend it and it will also give you a much more accurate assessment of your finances when you sit down and repeat this exercise again next month.

That’s right; you need to do this every month until the columns are working the right way round and continue doing it as you slowly swim closer and closer to shore.

Paula Marriss is a financial advisor and editorial contributor at The Money Zone. For more information on personal finance visit http://www.money-zone.net.

If you have more than two existing debts, consider a debt consolidation loan. Several options are available such as, an unsecured loan; receiving an advance from an existing mortgage lender a loan secured against your property and leaves the original mortgage intact. You may consider taking out a second mortgage or remortgage your home. Another option is to transfer outstanding balances to a credit card.

When considering a debt consolidation loan it is important to shop around the same way you would if you were attempting to secure a loan for the first time. Comparing offers from a variety of lenders for your debt consolidation loan can save you a considerable sum of money. Do not let the stress of financial challenges lead you to make hasty decisions when choosing the most appropriate action for consolidating your debts. In addition, carefully consider the factors such as length and term of the debt consolidation loan and the total cost of repayments before your final decision.

What to think about when considering a debt consolidation loan

When you are considering a debt consolidation loan, consider exactly what you need to accomplish financially and what the alternatives are to control your debt. Examine the interest rate and APR, will it be fixed or variable. Analyze the monthly repayment schedule and total cost of the loan. Notice if the rate and/or capital sum will change during the allotted time of repayment. Carefully note the penalties assessed if you are late, miss a payment or if you decide to refinance or repay the debt consolidation loan early. If you have taken this loan out on your home, what consequences do you face for not staying current on your payments or if you decide to move to another residence.

When considering a debt consolidation loan your credit rating will play a key role in the sum you will be able to finance as well as the terms and APR of the loan. Whether your credit rating is excellent or adverse there are lenders available to assist you with your debt consolidation loan needs.

What are the benefits of a debt consolidation loan?

How does a debt consolidation loan work? If you have multiple loans, you can use a debt consolidation loan to combine the sum of your debts into a single loan. Often you will enjoy a lower monthly payment and be able to extend the loan over a longer period. When choosing a debt consolidation loan remember that this will not solve your credit problems instantly but it will afford you the opportunity to move your financial circumstances in a positive direction. You will be able to increase your credit score and begin working towards decreasing the amount of your debt.

If you are considering a debt consolidation loan, research the lenders and the offers carefully and choose one that guarantees results. Your goal in securing this type of loan is to bring your credit score up and help keep you from damaging your credit rating.

You may freely reprint this article provided the following author’s biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.