Finance Classic - Financial News

This is really been a major concern now a day that how can we come out from “debt”. Many of us are having this problem and searching the solution of this. Here I am trying to give some of the tips which may help!If you have problem in paying your debts to your creditors then you need to consult your sutiation with him and ask to give some more option to pay or to give more time. Some of the cases, the creditors accept the proposal of the debtor and agree to give some time to him. Here you are getting time to pay your debt off, but where the creditor is not agree to provide further time to you then you need to go to the professionals. The counsellors will be able to give you proper suggestions. He might take his consultant charges. There are some companies also who are giving free counseling.

Make yourself away from further loan. When you are in debt you should try to repay that first before taking any loan, otherwise the situation will become worst. It’s really very easy to get credit cards now a day and it is a fashion to have many credit cards. But you must remember your situation that you are in debt and further loan can push you in deep trouble. So say for “NO FURTHER LOAN”.

This is the time when you will find people with full of plastic money (Credit cards) in their wallet instead of paper note. It is now a fashion to have more credit cards in your pocket. They are easily available also. But this availability is bringing you to the path of debt. Sometimes the amount of debt and interest is within your reach to pay and sometimes not. The problem starts then on. If you are unable to pay them on time it starts building rapidly.

• Effects of credit card debts:

If you have a burden of debt in your life then it can make your life horrible. Suppose you are unable to pay your debts on time, then what may happen? At first the credit card company will ask you to pay your debts but if you are unable to pay them, they will ask the collection companies to collect the money from you at any cost. The collection companies may make your life even worse. They will call you at your home and harass you. Your family will not be out of their attack. Even they can call your office at the time of your work. It is really tough to work handsomely with these immense pressures. This situation will force you to do wrong work and then the pressure from your Boss. So think about your situation now, in your home the phone calls of the collection agencies and in the work the pressure of your Boss. You will feel that you are just pasting by both ends.

• Solution of it:

The best solution is to control the use of your credit cards. The best thing is limiting your number of credit cards first. Use one or two at the time of any necessity. But if you already in immense amount of debt and unable to see any way to pay it in full with huge interest then “credit card debt consolidation” is the best way. There are lots of consolidation company available in the market, choose the best one and consolidate your debts. If you think that the consolidation is also not suitable for you as your condition is worse then you can choose “debt settlement” program. It may effect your credit report but it is far effective than to file Bankruptcy.

For further reading about credit card debt, you can visit:

http://en.wikipedia.org/wiki/Credit_card_debt

There are various types of Mortgage Loan available. You are to decide what is the need of taking the loan, and which one is best suited to you. For this reason you must need a fairly idea about all kind of Mortgage loans. Here I will discuss shortly about them and will try to give a fair idea.

Types of Mortgage Loan:

1) Fixed Rate Mortgages

2) Adjustable Rate Mortgages (ARMs)

3) Reverse Mortgages

· What is Fixed Rate Mortgages (FRM) ?

It is that kind of Mortgage where you are to pay a fixed rate of interest. It will offer you security as during the term of your loan the rate will not change. It will also give you peace of mind and will allow you to plan ahead for your future.

It is good for the first time buyers and also for those who need stability on their monthly repayment. You can make your budget according to your plan if you opt for FRM.

· What is Adjustable Rate Mortgages (ARMs) ?

Adjustable Rate Mortgage, also well known as ARM is a Mortgage which is directly related or linked with Economic index. Your interest rate and payment will adjust periodically according to the change of the Index. The lenders use the Index as a guide to measure the changes of interest rate. Every ARM is linked to a specific index.

· What is Reverse Mortgages ?

It is a Mortgage which is used generally by the seniors ( 62 and over in the USA ). It is calculated on the basis of HOME EQUITY i.e. the value of home, minus the amount of any existing Mortgage. It can be given to the owners by the lenders either one payment or monthly cash payments. Repayment of this loan to be continued till the owner is alive.

We all know the problems a person face after filing bankruptcy. There are some questions which are in our mind when we discuss about filing bankruptcy. Let me discuss some of them:

• What about the credit after filing bankruptcy? Would it be possible to get credit after filing it?

The answer is “Yes”. There are some companies that take chances to give credit to persons who filed bankruptcy in the past. The credit limit may not be high and also you may have to pay yearly fees for your credit.

• Will it be possible to take mortgage loan after filing bankruptcy?

Yes, you will get mortgage loan but after one or two years when you are discharged from bankruptcy. But the key factor of getting a loan is to show the bank or lender that the money problem you had is past and you are very much determined not to have it in the future.

• Can the Govt. take the pension to pay off tax debt?

Yes, the Government has the right to take your pension to pay off your tax debt. Not only that they can even take money from your other savings account.