Category Archives: Debt

Debt Settlement Can Increase Your Income

Posted on by
Reply

Debt Settlement Can Increase Your Income – And the Amount of Income Tax You Owe

Debt Settlement Can Increase Your Income

With more people struggling to pay their debts, there is an increase in the number of people who are looking to “settle” their debts with their creditors. A debt settlement is a process in which an individual, or a company acting on behalf of the individual, contacts their creditors to request a settlement amount that is less than the total balance owed. It is not unheard of for a successful debt settlement negotiation to result in the individual paying less than half of the total amount owed to fully repay their obligation to the creditor.

For example, if you owe $5,000 on a credit card, negotiating with the creditor may result in you being able to pay a lesser amount – say $2,100 – in exchange for the creditor closing the account and marking it as “paid” or “settled” on your credit report. You no longer have any obligation to the creditor for that particular account.

Creditors are finding that settling debts may be a better option in these difficult financial times than waiting as more people are defaulting on their debts or filing bankruptcy. So, while the creditor receives less than they would if the individual continued to make payments on the account, a settlement is often a better arrangement for the creditor than when someone files bankruptcy because they can’t keep up with their payments. Continue reading →

Get Out of Debt Tips

Posted on by
Reply

Everywhere you look there are guides for getting out of debt and step by step processes you can follow to help you get your finances in order. We’ve given a number of methods for getting out of debt, along with the step by step details – in this article, we’re going to give you a number of TIPS to eliminate debt. They aren’t in any order, and it’s not a step by step guide, but you should find ideas for getting out of debt here. If you have tips that haven’t been covered here, please leave them in the comments!

# Spend less than you earn.

# Use cash for better budgeting, and stop using debit cards and credit cards.

# Create a plan to get out of debt for better results than just sending money to your accounts randomly.

# Know exactly how much you owe, keep track of it in a spreadsheet or notebook and update it each time you make a payment. Continue reading →

Inflation drops further

Posted on by
Reply

According to The Telegraph, `Britain is now deeply in deflationary territory`; inflation has seen its biggest drop since records began in 1948.

In particular, RPI (Retail Prices Index) annual inflation stood at minus 1.6% in June.

A debt expert for Think Money commented: “Although some people may welcome falling prices, it is important to be aware of the implications.

“On a national level, deflation is bad for the economy. When people know that prices are dropping, they`re always tempted to put off spending money until `tomorrow`. This means businesses make less money, and that`s clearly bad for their employees.

“Plus, at a time like now, some people may suffer because their annual pay rise is based on RPI. For people with debts that are continuing to grow, it may become increasingly difficult to stay on top of their finances. We would advise anyone in this situation to contact a professional debt adviser without delay.”

Americans less stressed about debt

Posted on by
Reply

According to research by Associated Press-GfK, debt-related stress amongst Americans is 12% lower this year than in 2008, The Associated Press reports.

So far, the economic downturn in America has led to the loss of 6.5 million jobs, pushing the unemployment rate up to 9.5% in June – a 26-year high.

Today, however – despite rising unemployment – it seems Americans are thinking more positively, saving more and paying down their debts.

The research suggests that in 2008, 33% of people questioned said they were at least `somewhat concerned` that they wouldn`t be able to clear their debts. That figure has dropped to 27% this year.

A debt expert for Think Money said: “The situation in America seems to be improving slightly, and this could indicate what the future may hold for the UK, since what happens in the U.S. often happens in the UK sooner or later.

“It`s not just a question of psychology – the UK is closely linked to America financially, and when their economy starts to improve, there`s more hope for our own.”