Debt consolidation - How to plan debt elimination without surplus cash

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Has debt elimination through debt consolidation services been on your mind? Are you cash-strapped for debt consolidation? You might want to follow a do it yourself approach to debt consolidation. Contact your financial instituation customer services and ask about debt consolidation loans. Debt consolidation loans can be used to pay off all other loans like car loans, boat loans, and credit card debt. Debt elimination is possible but depending on how deep you are in debt, it might take you from a few months to a few years. Some experts recommend help from debt consolidation services to help get you back on track with debt. You may need to start looking at your expenses and saving money each month to pay towards your debt consolidation loan.



Got Debt
Then read on...

The pressure you feel because of your personal debt might be causing you to struggle where you should succeed.

It creates a psychological and spiritual block that prevents you from blasting forward to success. That kind of block is like living in an emotional molasses. It's sticky and is outright sucks.

Step by step progress, struggle and working ha... Read debt consolidation article



Debt consolidation - How to plan debt elimination without surplus cash
Planning For Debt Elimination Without Surplus Cash

Previously we looked at using surplus cash each month to chip away at those outstanding loans, on our long road to debt elimination. But what can you do if there is no surplus cash every month?

So, you have examined your monthly outgoings, and there is nothing to cut out in the way of expenditure. Or you can make some savings, but it just brings your outgoings and income into balance each month, whereas before your outgoings were in excess of the income. Well, at least you have made some progress by bringing income and expenditure into equilibrium. But where does that leave you in your debt elimination challenge? It is probably time to focus on those debts, and see what can be done to bring down the cost of those loans, and the monthly repayments. It may still be possible to plan for debt elimination in 5 years, especially with your newly developed anti debt mindset.

Taking out another loan will not, of course, bring instant debt elimination. However, it may be that a debt consolidation loan will give you a chance to structure your plan over a 3, 5 or 7 year period. With the right approach, this may be an excellent opportunity to improve your finances no end, resulting in debt elimination at the end of the loan period. The key will be in whether you are able to reduce your total loan repayments, and whether you are then able to set aside those savings each month. Let us look at a simple example, of a consumer who has two credit cards and two other loans. He owes a total of $11300, and has a minimum monthly payment of $346. Let's say he is able to obtain a new consolidation loan at 10% annual interest, and would have repayments of $240 per month over 5 years, a saving of $106 per month, or $6360 over the 5 year period.

That is a significant amount to put away each month. Enough for a replacement second hand car? No need for any more loans? In which case, debt elimination, by our definition excluding the mortgage, could be achieved within that 5 year period.

There are, of course, millions of permutations of figures, so you will have to consider your own. But the principles are always the same. Living within your budget, planning ahead, and saving for any future purchases in cash. That's a simple formula.

All it needs to accomplish debt elimination is your new mindset; the mindset that does not want debt, borrowings, loans to be a part of your future life. The mindset that has patience in clearing the debt, and is able resist new purchases of optional items until the cash is available.

It is worth always remembering, if you cannot to afford to pay cash for something, then you cannot really afford it at all. The only exception is the house, where the investment potential and rent saving alter the financial viewpoint.

Once you have the cash-save mindset, you have all you need to clear unwieldy and expensive debt from your life, once and for all.

This debt elimination article was written by Roy Thomsitt, owner of the Eliminate credit Card Debt Now website.

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Bankruptcy alternatives - Individual Voluntary Arrangement IVA

Individual Voluntary Arrangement, IVA is an alternative to bankruptcy - which could provide you with a real solution to your debt problems.

An Individual Voluntary Arrangement (IVA) is an alternative to bankruptcy. If you have a substantial amount of unsecured debt an IVA could be your best solution.

IVAs are controlled by government legislation and can only be set up by licensed Insolvency Practitioners. An IVA acts as a legally binding agreement between you and your creditors, freezing interest charges on your debt and setting an affordable monthly payment amount over an agreed fixed period (usually 5 years).

It is important to remember that you should only consider an IVA if you have sufficient money available to contribute towards repaying your debts each month or additional assets which could be taken into consideration.

Disadvantages of Bankruptcy

Notices placed in the press
Potential loss of assets such as your home, business and car
Long term effect on your ability to apply for a credit or a mortgage
Restriction to work within certain professions or hold a position of office
Your utility suppliers - gas, electricity etc - informed
Your bank and building society accounts closed

IVA could help you with:

The unpaid balance of your debts is written off as much as 75%
One affordable monthly payment, usually for five years
Protects you from further action by your creditors
Your creditors are legally bound by the terms of the agreement
No uncertainty: you know how much you have to pay
Alternative to bankruptcy
No public notices: an IVA is between you and your creditors

Bankruptcy is not only option when getting out of serious debt?

Greg Penn
http://www.freemanjones.co.uk


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