Personal Finance Journal

Personal finance can oftentimes involve skills akin to tight-rope walking. You need to find just the right balance of saving, money management, budgeting and income to make sure you have enough to cover your expenses, save for emergencies, invest for the future and so forth. Every now and again, of course, you might find the need to acquire a new loan to cover some unforeseen expenses or other necessary expenditures.

One way to acquire some funds is to use your car’s value to obtain a car title loan. In this case, if you’re in Florida, you can contact Gainesville Title Loans and you will use your car’s title as collateral for a loan, generally a short-term, flexible one that doesn’t even require a credit check. Simply put, the value that you’ve already paid into your car is used as the equity to secure the loan.

The value of a car title loan will obviously depend on what type of car you have and the value and condition of that car. The average loan is anywhere from $500 to $15,000, and you can usually obtain the funds the same day you apply for the loan. Once you obtain the loan you can then use the funds however you choose–the money can be deposited into your bank account and used for any type of expense you might have. You may even choose to use the money you get from a car, truck or van title loan to fund an investment you have your eye on or a good stock or foreign currency trade.

The loans are certainly a convenient way to obtain some much needed capital, and Gainesville Title Loans makes the process quick and easy. The offer a short form with just the basic amount of information needed and you can get the process up and started immediately.

In the first installment of this series we explored some of the basic elements that make up debt management programs.  We wanted to give a general overview of what is involved and how this course of action could help somehow who might be in a position of needing a little help with their debt load.

As a followup to that overview, we thought it might me helpful to briefly lay out some of the pros and cons of a debt management plan.

Pros of Debt Management Plans:

• A reduction in the amount you pay for debt each month. Very helpful in getting your finances back under control with a more manageable monthly payment schedule.
• Elimination of the cost you might otherwise incur like late fee and over-the-limit fees.
• No more pesky calls from numerous debt collection agencies looking to harass you for repayment.
• You credit score is not as adversely affected as it would be if you would have had to declare bankruptcy.

Cons of Debt Management Plans

• You have to stick to a strict payment plan based upon the terms of your agreement.
• You will have limited or no use of credit cards for a couple of years until you get your situation under control.
• You will not be able to get a car loan or a home mortgage at a good interest rate for a couple of years.
• You will incur some costs that might be higher than if you were able to work out plans with your creditors by yourself.

There is obviously a lot to think about when it comes to seeking a debt management program, but for many people facing a situation of a heavy debt load that has gotten out of control, it might be a viable solution.

Unfortunately, in spite of one’s best efforts, it is possible to get in some serious debt troubles. It might begin innocently enough, but if not controlled early it could just get out of hand. Below are some tips to help eliminate your debt troubles, and if already have collectors bothering you, stop collection harassment for good.

First of all, get organized. Make a thorough list of what you still owe and get your priorities straight. That might include putting putting all of your bills in a pile and going through them all, listing your debts in order. Make sure you know how much you owe on each one, how long overdue you are and what kind of interest rates you’re paying for each.

Try to eliminate you credit cards and don’t just roll over balances to new accounts. You might be able to get a better rate initially, but you’re likely to get lulled into a false sense of security that you have somehow eliminated the problem  Once you’ve paid off a card, contact the company and cancel it immediately. Don’t let them sweet talk you into keeping it open.

Make a thorough budget and spending plan.  Get control of you income and expenses and be able to track exactly how much comes in each month (or week), how much is required to pay for expenses and where that money is going. There are some nice, free online programs to help you get organized (eg Mint.com and others).

Contact your creditors if you’ve fallen behind and try to get started on a payment plan. You’re much more likely to avoid a collection agency if you show your creditors you’re making a legitimate effort to pay.

If you feel you’re getting unfairly treated my debt collectors, know your rights and stop collection harassment California. Be aware that the Fair Debt Collections Practices Act (FDCPA) exists in order to stop abusive practices. There are a number of things that debt collectors simply cannot do like calling at certain hours, using abusive language, calling you at work, and many more. Know your rights and contact a reputable consumer attorney if you need legal assistance.

If you can no longer afford your unsecured debt repayments as agreed, it’s important to find an approach that can improve your situation as soon as possible. The longer your debts remain unpaid, the longer interest and other charges will have to build up, which could lead to your debts becoming even more difficult to regain control of.

Debt management is one possible approach you could take to repaying your debts at an affordable rate again. But, as with all debt solutions, the advantages come with some disadvantages that you should be aware of too.

What is a debt management plan?

A debt management plan is a debt solution designed to help people get back on top of their monthly repayments again if they can no longer afford them. It’s an informal agreement, so the courts aren’t involved, just the borrower and their lenders – and a debt management company as well, if the borrower decides that’s the best way to handle things.

If a debt management plan is considered the most suitable approach, your lenders would be asked to accept reduced monthly repayments you should confidently be able to make – as they’re worked out to be affordable after your essential monthly costs have been covered.

If your lenders agree to the plan, you’ll start making a single, affordable payment every month to the debt management company, who will distribute money among your lenders, until you’ve repaid your debts in full, or until an improvement in your circumstances allows you to start making your original payments once again.

If you’re looking for debt management in Scotland, speak to a professional debt adviser to find out if a debt management plan is appropriate.

What are the negative effects of a debt management plan?

A debt management plan could be an ideal way of repaying your unsecured lenders if you’re struggling to afford your monthly payments.

However, there are some ‘negatives’ that should be taken into account as well, before you make a decision.

As it’s a non-legally binding agreement, a debt management plan has an advantage in that the courts aren’t involved; it can be more flexible than some other debt solutions. On the other hand, it means your lenders are under no obligation to accept lower payments all the way through, until your debts have been paid off in full.

Also, as you’ll be making smaller payments, you’ll also be repaying your lenders over a longer period, which could end up costing you more overall (if your lenders don’t freeze/reduce interest and charges), as the interest you’ll have to repay will build up over that time too.

Finally, ‘breaking’ the terms of your original agreements (the ones you signed when you initially borrowed money) will affect your credit rating for six years, which may affect your ability to get further credit during this time. But since debt management could only be suitable if you can’t afford your payments as agreed, it’s quite likely that your credit record has been damaged already.

This last year or so has been a rough time for many folks. Obviously, you can’t avoid the bad news as headline after headline features more dire predictions about the economy and more sad stories of people losing their jobs and homes. We’re seeing more and more people falling into debt and looking for ways of reducing debt. The good news is that there are resources and services designed to help people solve their debt problem and get their finances in order.

Debt Free Destiny has created a place where you can obtain information on a number of different debt and credit problems and solutions. These include things like debt settlement, credit counseling, debt consolidation, bankruptcy and more. You can obtain a free, no obligation consultation on their website to help guide you through the maze of choices and decision you need to make when faced with reducing or eliminating your debt.

The years of easy credit and the endless flow of money appear to over for now and it’s really time to get serious about any lingering debt problems you might have.  Your debt load might feel out of control, but it’s crucial that you get it worked out.  The folks at DebtFreeDestiny.com have the resources and information to help you claw your way back into a prosperous and healthy financial future.