Five Hot Tips for Using a Budget to Pay Off Debt Quickly

By Sean Payne

If you're in debt, you may not comprehend exactly why. It's pretty common for people who owe lots of money to not understand exactly what caused them to be in that situation. But, as somebody who has been in debt (and finally gotten out of debt), I can give you a good guess as to the reason why you're in debt.

You're in debt because you don't use a budget. It's just that simple.

I've been in debt up to my eyeballs, and it was only after I began using a budget that I was able to finally pay off my debts and stay out of debt. Others who have been in debt and gotten out of debt tell me the same thing: using a personal budget it an almost guaranteed way to get out of debt and stay out of debt.

Why is budgeting so powerful? And how can a budget help you to get out of debt?

First, a budget makes you examine the way you spend your money. A good budget will force you to look at each of your expenditures individually, categorize them, and compare the total amount you spend to how much you earn each month. There are numerous budgeting systems, and they each have a different way of accomplishing these things, but they all do basically the same thing.

Second, a budget helps you keep track of how much of your spending is in each category. This is useful when it's time to find places to cut your spending. The more you keep track of your spending, the easier it will be to spend less. Reducing how much you spend will give you more money to put towards paying off your debts.

Third, budgeting is a great way for you and your spouse to plan your financial future together. It's important that you are able to agree with each other on a "game plan" to get out of debt. If you are working on different goals, or even working at cross purposes, you'll take a lot longer to get out of debt, or you'll never get out of debt. Budgeting is a good way to work as partners, towards the same goals. You're much more effective together than separately.

Fourth, budgeting helps you to internalize the debt repayment process. By putting a budget onto paper, or into a computer program, you can more easily visualize and understand where you are in your debt repayment process.

If you're trying to track your spending habits and debt repayment progress in your head, you can't possibly do as well as with a written budget. There's something about putting numbers onto paper or computer screen that makes it seem more "real".

Fifth, using a budget will keep you motivated. By recording your progress, you can see how much better off you are now. This can get you through the discouraging times, which is vital when it comes to keeping up your momentum in the debt repayment process. - 29866

About the Author:

Learn more about great ways to help pay off debt. Stop by Sean Payne's unique site where you can find out all about how to get out of debt.

See How A Divorce Can Have An Effect On Your Credit Report

By Kevin Lee Lynch

The number of marriages that finish in divorce is a daunting statistic. Considerably too many individuals face these painful breakups. As one goes through a break up not only is there the emotional sting but all too often it unhelpfully affects their money also.

A lot of individuals who have had good credit for years and years end up with tribulations on their credit following a divorce. Divorce is one of the major things that cause difficult credit for many individuals.

Wedded people are often treated as equally responsible for repaying loans like mortgages, car payments and credit cards. In a divorce one person is usually assigned responsibility for the debt. Yet even though this is a judgment from the court is it often disregarded and overlooked by creditors, especially when the loan goes delinquent.

I'm sure you know that a decree of divorce is not noted on a credit report. If one of the ex spouses is accountable for the obligation and a payment is missed the creditors can make an attempt to collect from both parties and they can also convey the delinquencies on both parties credit report. If your ex-spouse is accountable for the payments and he or she starts to slack off your credit report can also be affected.

Another difficulty is that since the family unit has split and you are now living in another place, you will not be given any notices so it is likely that you will not even be aware that there is a problem with these until they are really delinquent and they are already showing on your credit report.

Now having your credit report affected seems to be difficulty adequate but if the ex-spouse decides to stop paying all in all and declare bankruptcy the remaining spouse can be held liable for the whole amount of the obligation including late charges in spite of the court order. As the only left over opportunity accessible for collection the creditor will aim at the other individual.

It is a upsetting fact but true that sometimes the only way to settle a divorce is to declare bankruptcy. The credit system is very unjust to parties of a divorce. If an ex-spouse desperately wants to keep a clean record it may not even be possible.

Divorce is just one instance of why it is so essential that we have the right to repair our credit. Any item on a credit report, including a bankruptcy can be disputed if you will that it is inaccurate, misleading, incomplete, untimely, ambiguous, biased, unverifiable or unclear. - 29866

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Check out the quick way to repairing your credit this moment. Also learn about credit repair software and if it works at this great site that is full of credit repair information.

Primary Guideline on How to get out of Credit Card Debt

By Mike King

Credit card debt is a growing phenomenon among big spenders not only in UK but all over the world. Often people have to appear in court for not being able to repay their debts. While debtors wonder how to get out of credit card debt there are various methods that have come up to help one deal with debts, however it is not an easy feat to accomplish. One needs to be extremely determined to get out of credit card debt. To repay a debt, one must first assess their personal financial situation. A person should be aware of the full amount of credit card debt owed by him and pay it off as soon as possible because credit card debts usually have an escalating interest rate.

To design a method to tackle your credit card debt, first you need to know the amount required for your primary necessities like house rents, food, water, travelling expenses etc. Once you calculate these expenditures properly, you will realize the amount of money available from your revenue that you can use to pay your debts off. You should spread the whole amount among your various creditors. You can pay them on each month. Also there are options for paying with pro-rata feature. You may also ask your creditor to present you the scheme for monthly payment. Else there are various plans to manage your debts, which also enable you to pay the debt monthly.

The debt management plans do not come free of cost. In some cases, it requires you to pay a certain amount of charge. But it will always be better for you to keep away from such offers. While proposing your tender to the institutions that will prove credit cards, you should attach a copy of your earnings and funds. If you have a good proposal, then there are high chances for the company to grant them. When the agency gives you the positive note, request them to congeal your rate of interest. It will prevent your debts from amplifying.

While repaying such loans, you may have to pay several bills at a time. If it seems hard, then you can opt for a debt consolidation program. It actually squeezes up your debts and allow you to pay all your loans from one sole account. Usually credit card arrears consist a higher interest charge than that of a debt consolidation loan. For that reason almost every expert suggests the debt consolidation as a definite option. This system will also provide you the opportunity of repaying the loan flexibly stretching the repayment time.

The advantage of this certain option is that it provides you enough scope to handle your one single debt account properly. It is easier to pay one single loan than paying off those innumerable ones. It will also help you to save your money. However, some of the agencies charge a lump some amount as their charge. The best thing to avoid such high fees is to do a wide research before opting for any agency.

The flexibility of using credit cards at the time of purchase is making it more and more popular. But it is also troubling people with its high interest rates. The rate can rise so high that it may cross the top rated unsecured loans. If you are keen to gather more information on how to get out of credit card debt, then you can consult agencies like Citizen's advice, National Debt line etc. These services are absolutely free of cost. - 29866

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Get out of credit card debt today. Rather than letting payments and interest mount up, take action. Enquire on solutions to get out of credit card debt.

US Dollar (Part III)

By Ahmad Hassam

US Dollar was considered one of the premier safe haven currencies in the world prior to September 11 because the risk of severe United States instability was considered to be very low. United States was known to have one of the safest and the most developed capital markets in the world.

Almost 76% of the global currency reserves were in US Dollar. This allowed United States to attract investments from all over the world at a discounted rate of return. Foreign investors and the Central Banks are not so sure about the US Dollar due to the increased US uncertainty like the present recession and decreasing interest rates.

China pegs its currency to US Dollar. China has been accused by the United States many times of using this practice to keep its national currency artificially weak in order to boost its exports. There are many other developing and emerging countries that peg their local currencies to US Dollar. China is a very active participant of the global currency markets because its maximum float per day is controlled within a narrow band based on the previous days closing US Dollar rates. Any fluctuations beyond this band will invite intervention by the Chinese Central Bank that may include buying and selling US Dollars. Important countries that peg their currencies to US Dollar are China and Hong Kong.

EU represents a market as large as US with its own single currency Euro. Euro has provided an alternative to the US Dollar. The emergence of Euro is also threatening the US Dollar as the worlds premier reserve currency. Recently a group of countries like China, France and others have called for the introduction of a new global reserve currency by the IMF that should replace the US Dollar. If this happens in the next few years, it may have far reaching implications of the US Dollar and the US economy.

Due to the present financial crisis in the United States, many analysts fear a major devaluation of US Dollars. Many central banks have already begun to diversify their foreign exchange reserves by reducing their US Dollar holdings and increasing their holdings in Euro and the gold. Interest rate differentials can be a very strong indicator of potential currency movements because the US markets are the largest markets in the world and the investors all over the world are very sensitive to the yields offered by the US assets. The interest rate differentials between the US Treasuries and foreign bonds are followed by the professional forex traders with keen interest.

The USDX is a futures contract traded on the New York Board of Trade (NYBOT). Market participants also closely watch the US Dollar Index as an indicator of overall US Dollar strength or weakness. It is important to follow this index because when the market analysts are talking of general US Dollar weakness, they are referring to this index.

US Dollar is also impacted by the US Stocks and Bond markets. Cross border merger and acquisitions are also very important for forex traders to watch.

The following economic indicators are important for the US Dollar: Employment, Nonfarm payrolls, Consumer Confidence, Retail Sales, Consumer Price Index, Produced Price Index, GDP, International Trade, Employment Cost Index, Industrial Production, TIC Data etc. - 29866

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try Strignano's Forex Signals free. Discover a revolutionary Forex Robot Trading System!

Five Little Known Facts About Debt Collectors' Rights

By Sean Payne

If you are in debt, you're probably already aware of the rights you have under the Fair Debt Collection Practices Act. The Fair Debt Collection Practices Act, which is also known as the FDCPA, says that you have the right to expect certain debt collection practices from debt collectors.

The FDCPA specifies exactly when debt collectors can contact you, how they can do it, and what they can tell you in order to collect on a debt. One example is that a bill collector can't tell you a lie or misrepresent the truth about your debt. The FDCPA was created after a long string of debt collectors abusing people to collect on debt. What you probably don't know about the FDCPA, however, is that even bill collectors have rights.

The first of their rights is to communicate with you in order to let you know about any debts you owe. They can do this via telephone or letter. In this communication, they can let you know exactly what you owe, including whatever fees or penalties they may charge you.

Second, a collector has the right to continue to contact you until you notify them in writing that you don't owe any money, that you don't owe all of the money, or that you require verification that you really owe the debt. Of course, the FDCPA limits when and how they can continue to contact you, but as long as they operate within the rules of the law, they can continue to contact you until you put a stop to it.

Third, the debt collector can continue to contact you even if you request that they stop contacting you, as long as the debt collector is actually the original creditor, or an in-house agency owned by the creditor. This is because the FDCPA recognizes creditors as being different than debt collectors, so they don't have to follow the same guidelines that debt collectors do. They do, however, still have to follow the same rules of decent behavior that debt collectors do. This includes not harassing people you know, or calling you at all hours during the night.

Fourth, debt collectors have the right to talk to other people regarding your debt. However, they can only do this once, and only to discover your address, your phone number, or your place of employment. They can't contact a third party more than once, because that would be harassment.

Lastly, debt collectors have the right to sue you in court to collect a debt from you. Of course, you can defend yourself in court, but if the judge decides against you, you may have your wages garnished to repay the debt.

When dealing with debt collectors, make sure that you know your rights under the law. But also make sure that you know the rights that the law gives to debt collectors. This knowledge can help you to better deal with them when and if they become a problem. - 29866

About the Author:

Sean Payne is loves to talk about getting out of debt. After paying off his own debt, he devoted years to discovering the quickest way to get out of debt, and keeping your cool while dealing with debt collectors. To learn more about debt collectors' rights, and what you can do to preserve your peace and quiet, check out his excellent debt reduction course.

The Bill Collector Letter That Shuts Them Up

By Sean Payne

Do you remember the feeling you get when a letter from a bill collector shows up in the mail? The queasy feeling you get in your guts when you're told that you owe money that you are unable to repay? And later on, when the phone calls and letters hound you for money that you don't have?

It's time to turn the tables. It's time to learn your rights and to exercise them.

A Federal law known as the Fair Debt Collection Practices Act (also known as the FDCPA) tells you exactly what a debt collector can and can't do to collect a debt from you. The FDCPA puts hard limits on exactly how a debt collector can contact you.

An example of what a debt collector can't do is to call you at work, unless they're doing it to find out a telephone number to call you at your house. They're also not allowed to inform other people, such as your employer, about any debts that you owe.

Also, debt collectors can't call you or continue to contact you if you tell them that they aren't to do so anymore. That's what we're going to learn to do.

The magic debt collector letter consists of two parts:

The first thing is your identifying information. This includes your name, address, account number of the debt that the bill collector is trying to collect on, and any other information that they need to identify you.

The second thing is to tell them that you want them to cease communicating with you in any way.

These two steps are all that the FDCPA requires from you in order to keep the debt collector from further harassment. The only way the debt collector is allowed to contact you in the future is to let you know that they will stop contacting you, and if they intend to pursue legal action to collect on the debt.

When sending this letter, it's wise to send it via certified mail with delivery receipt requested. This means that when the letter is delivered to the debt collection agent, you'll receive notification that is now in their hands. Make sure to save this receipt to prove that the letter was actually delivered to the collection agent.

According to the FDCPA, if the bill collector contacts you in the future in violation of the law, you have the right to report the bill collector to the FTC. The FTC is the Federal Agency that enforces the FDCPA. Once you have notified the FTC of the bill collector's violation of the law, they can pursue legal action against the bill collector.

Be aware that even after you notify the bill collector of your wish not to be contacted, they still have the option of pursuing legal action against you. This letter is only intended to shield you from being harassed by bill collectors. It cannot protect you against a lawsuit filed by the bill collectors in an attempt to collect on a debt. - 29866

About the Author:

Sean Payne can tell you a lot about how to get out of debt. After more than a decade of dealing with his own debt problems, he has developed a powerful strategy to stop bill collectors calling. You can discover his secrets for getting out of debt at his debt payoff tips website.

Beating Credit Card Debt Collectors at Their Own Game

By Matthew Highlander

Consumer debt collectors! Credit Card debt collectors! There ought to be a law against them! Fortunately, there is a law, and educated consumers have learned how to use it to fend off these debt collectors by making their job difficult.

Time is money for a credit card debt collector, who is in the business of collecting unsecured consumer debt, most of which happens to be credit card debt. These consumer debt collectors and collection attorneys work on a percentage of what is collected. Most people think there is a debt collector for every debt, when the reality is there is only a debt collector for every easy-to-collect credit card debt.

The consumer debt collection industry's growth has mirrored the growth of the credit card industry.

According to the Federal Reserve and Business Week, the consumer credit industry increased from $133.7 billion of consumer debt obligations in 1970 to $2.5 trillion of consumer debt obligations in November 2007.

According to ACA International, a consumer debt collection trade group, each year debt collectors return more than $40 billion to the U.S. economy.

According to data from the U.S. Census Bureau, there were 173 million credit cardholders in the United States in 2006.

According to the American Banking Associate, in the first quarter of 2009, 4.75 percent of bank cards were delinquent.

These statistics indicate debt collectors have millions of delinquent credit card accounts to collect from.

Credit card companies must comply with Federal Reserve regulations by keeping reserves to for bad debts. Bad debt is part of their business. After these debts are written off, junk debt buyers bid on blocks of delinquent credit card accounts. If successful, they pay no more than 10 cents for each dollar of debt. With that discount rate junk debt buyers and the collection agencies and collection attorneys who work for them only need to collect 30 or 40 percent of the debts to make money.

If a consumer resists collection attempts (after they learn how to properly do so), it is simply not profitable for collectors to put more time into chasing them for their debt, when they can put that time in getting the easy returns from other people who put up no resistance. The Fair Debt Collection Practices Act (FDCPA) is the key to resistance.

According to the FDCPA the debt collector must notify the consumer in writing of their right to dispute the debt and have it validated. Validation means the collector must send copies of original documentation verifying the debt. The FDCPA also says the consumer can instruct the debt collector to cease collection attempts until they properly validate the debt. As original creditors credit card companies are not covered by the Fair Debt Collection Practices Act. However, the behavior of collection agencies, collection attorneys, and junk debt buyers is covered by this federal law.

Should the debt collector invest their time with those who put up no resistance or with those who properly dispute a debt and request validation for it? - 29866

About the Author:

Matt Highlander writes for theCredit Card Debt Survival Guide, a guide for consumers looking for credit card debt relief.