You're deep in debt. You've checked out all the debt relief options but somehow filing bankruptcy so you ruin your credit or debt consolidation so you can keep paying bills just doesn't sound too appealing. What if you could get free money to pay off your debts? What if you didn't have to pay the money back? That's exactly what government grants can do for you. The question is what are they and how do you go about getting one? This article will answer these questions and put you on the right path to solving your debt problems..........The government sets aside billions of dollars each year to help American citizens. They are more than happy to give you this money if they feel you will use the money wisely and it will help jump-start the American economy. As you know, the economy could use a little help right now, so there is no shortage of government grants that you can use for debt relief. Finding a grant is often the hardest part because you need to do some research. To get one, you need to be creative and look for one that you think you can qualify for and then apply. Your situation will be reviewed. The person reviewing your application will look at money you owe, debts you have, ability to repay what you owe and still maintain your current debts. If you can prove that you cannot pay back this money - you get the grant. You can then use the money to start a small business and use the profit to pay off your debts. What can grants do for you? They can give you money needed for debt relief without you having to provide security or collateral like you have to do to get a loan for debt consolidation. It can keep you from filing bankruptcy and ruining your credit for the next ten years. There is no repayment. Getting a government grant for debt relief is like getting financial aid - it can't be taxed and it doesn't accrue interest. It can make you instantly debt free and no other type of debt relief solution does that. As you can clearly see, finding a grant and using it to pay off your debt is a much better option than other debt relief methods. Hopefully, you can use the information in this article to get yourself back on the right path and significantly reduce your debt without bankruptcy or debt consolidation. If used properly, this is how you use government grants for debt relief.
Wednesday, July 1, 2009
5. Increase your income If you can, try and find a part-time job to help earn extra money.
If you know anything about the internet, try and put up a website to sell something or earn money with Adsense. There are many options available if one really looks around. If you sincerely cannot find a way to increase your income, it is imperative that you implement the other 4 steps mentioned above.
Harsh as it may sound, if you really want to get out of debt, you will have to look at what expenses you can cut out on. Stop eating take away food - it is bad for you anyway. Stop buying weekly magazines. Do you really need that chocolate bar every time you go shopping? Pack your own lunch for work. Walk to work if you don't live to far away instead of taking your car or a bus. Instead of buying the most expensive box of biscuits, settle for a cheaper one. Switch off the lights when you leave a room. Most of all, try and set up a monthly budget and stick to it.
3. Selling assets
If you have any assets that you can dispose of to reduce your debts and ease your money worries you should do so. It is better to have just one car than to have two, not being able to pay your debt and eventually maybe losing your house. If you have your grandmother's diamond ring stuck in a vault somewhere, sell it. Yeah, I know it has sentimental value but sentimental value does not put food on the table. Sometimes one just have to differentiate between what is essential and what is not. If you own a house, why not rent it out and move to a smaller place in the interim.
2. Negotiate with your creditors.
So you have people knocking at your door night and day looking for money that you owe them...Instead of sticking your head in the sand, face up to your problem and contact each and every person that you owe money to. Rather than not paying anybody, or picking a name out of hat, you could try and negotiate with your creditors to pay a smaller amount every month for a longer period until you have paid off the full amount. Most creditors would rather receive a reduced payment than no payment at all. Do not ignore your money problems, be proactive about it.
Lets look at 5 things you can start doing immediately to ease your debt problems.
1. Do not make any more debt.
The very first step towards solving one's debt problems is not to make any more debt. It sounds simple but it is a principle that is often ignored. The point is, if you stop making debt your monthly living expenses will be reduced. You will also be saving on interest because any money you owe on naturally has an interest amount attached to it that has to be paid back.
Another thing is that if you stop making new debts, you will have more money to pay off your old debts faster. You cannot build wealth if all of your income goes out towards paying debts.
Debt consolidation versus debt negotiation are two options that are available to you if you need debt assistance. When your monthly bills become too much for you to handle, it makes sense to use debt consolidation or debt negotiation for solving debt and credit problems.
Debt Consolidation
Debt consolidation services have prearranged debt repayment plans with most credit card and collection companies. When you sign up with a debt consolidation company you are offered a lower overall monthly payment based on a lower interest rate they have arranged with the creditor.
This payment is lower than what the credit card companies offer you, saves you money every month and is often the best way to consolidate debt.
One benefit of a debt consolidation repayment plan is it will stop you from getting harassed by your creditors as long as you make the new, lower monthly payments.
The downside of the debt consolidation repayment plan is that you have to cancel all credit cards that you include in the plan. You are also charged your first payment you make toward the program and an additional monthly administration fee. This administration fee ranges from flat fees of $10-$50, while others charge a $5 fee for each creditor. That means you'll pay about $30 a month that doesn't go to paying off your debts.
The debt consolidation program benefits you if you have high interest rates or have higher credit card bills than you can manage. Some people like to make only one payment to one company for all of their debts.
Debt Negotiation
Debt negotiation is sometimes referred to as debt settlement. This is most often offered to people who can't handle a debt consolidation program. If you can't make the minimum payments of a debt consolidation repayment plan or haven't made payments in the past 3 months, a debt negotiation program is the next step for solving debt and credit problems.
One benefit of a debt negotiation program is you stop making payments to your creditors. The debt negotiation company either takes monthly payments from you and keeps it in an account, or lets you keep the money in your own account.
While you are making these monthly payments to the debt negotiation company, they negotiate with your creditors for a lower payoff of around 40-50% of your total amount of debt. Once the negotiated settlement is agreed upon with your creditors, the debt negotiation company makes a one time payment to them.
A downside of the debt negotiation program is it lowers your credit score for as long as you are in the program. However, most debt negotiation companies require the creditor make the credit report show paid in full so it doesn't show up as a negative on your report once your account is settled.
Some debt negotiation companies include a credit repair service that will remove the negative items caused by the debt negotiation program. You pay for this service as part of their program.
Now that you have an idea what debt consolidation versus debt negotiation is choose which one will work best for solving debt and credit problems for you.
The biggest complaint I hear about debt solving web sties is the fact that they cost money and never solve anything. Do not fall into the same trap I did. I myself was once in debt, but thankfully now I am completely debt free. I know just as well as anyone how stressful and emotionally and physically draining being in debt is. What ever you do do not let debt get the better of you. The number one mistake people make is they let debt cloud their judgment. There are many debt consolidation companies out there who are more interested in getting YOUR money, than solving your problem.
I do not know about you but I was one of the people who did try every single strategy I could to get out of it, but as with most things it was just a complete waste of time, I would have been better of getting a second job and earning money to pay it off rather than wasting my time, reading through pages of books searching for countless hours on the Internet just trying to find something that could help me.
I can tell you right now 99% of what you find on the Internet is Rubbish, it is a waste of time and it is useless. Almost anyone who says they can give you free advice is lying, I have heard it so many times, and so many times there have been hidden charges, sign up costs and more, it always goes back to the old saying 'nothing in life is for free'
So just be careful, I wish you the best of luck.
They also fear that stripping existing agencies of consumer authority could reduce their effectiveness.
"We completely agree with and applaud the emphasis the administration has placed on enhancing consumer protection. Our concern is that a new agency, by its very nature, might not effectively serve that objective," said John Dearie, executive vice president at the Financial Services Forum, a lobbying group that represents the largest U.S. financial institutions.
The Obama administration is expanding a program to stave off foreclosure for borrowers who owe more than their homes are worth.
Housing secretary Shaun Donovan says borrowers who owe up 25 percent more than their home's market value will qualify for government help refinancing their mortgages. The program currently is limited to borrowers who owe 5 percent more than their homes are worth. The change addresses concerns that the initial terms excluded too many so-called 'underwater' borrowers. The program is part of a broader effort to help at-risk homeowners. Another key component pays incentives for mortgage companies to lower borrowers' payments.