Monthly Archives: September 2016

Top 5 Tips to Do When You are Financially Broke

There was to study conducted about why a person can easily be stressed out when he is financially broke but it happens. In fact, it is one of the most common reasons why people become depressed and lose their sanity. Perhaps, it is the worry of the future that really plays a great part why a person cannot just accept the brokenness brought by financial problems.

While others panic and lose control of themselves when facing financial crises, it is to be remembered most of the times that times like these need careful planning and patience. Financial problems would never be solved by engaging into another financial problem. If you really do not know what to do and what needs to be done, you can seek out advices from financial planner and experts.

However, the steps below would often help your make the best of your life even if you have the most difficult financial crisis in the world. Here are the top 5 tips you need to do when you are financially broke;

#1. Do not spend your money just to relieve your stress. More often people go out and spend too much to forget their problems. When you are facing one big financial problem, do not spend too much money to forget it. You will never get rid of those problems by spending the rest of your money. If you are stressed, take a bath, go to social events or read a good book. Divert your mind while you are waiting for your plan to work.

#2. Accept the current situation. If you are financially broke, then you are financially broke. You neither change it by not accepting what the reality is nor find ways to solve it. The best thing to do is to take a deep breath and accept what you have at hand. If it is a problem then find solution. Financial problems are sometimes easier to resolve than other problems. So, do not lose hope.

#3. Do not gamble with your other investments. Never ever put your other investments at risk because you are financially broke; they may be your last resort of salvation when thing do not work the way you expect them to be. Therefore, you need to secure them to be untouched during crisis.

#4. Seek help with your family. Discuss with your family about the problem you are facing. More often, families will be able to help you out of your financial brokenness. A spouse may be able to inspire you or your parents may have known someone to help you with it. Or, you may seek advises from them as they may know more on how to deal with those kinds of problems than you are. Be honest and open about it and seek help.

#5. Always Stay Organized. Organization of your plans is very important to boost your morale in times like these. Financial problems need systematic approach and factual planning to be resolved. Thus, it is always advisable to stay manageable and organized most of the times rather than panicky. Do not let stress affect your state of mind as that is one of the best chances you will be able to surpass your financial troubles.

Bonus Tip:

You may also seek advises from Financial News as there are lots of marketers and entrepreneurs who share their thoughts and ideas when it comes to surviving financial problems and crises. Be open-minded most of the times so that more ideas will be acquired rather than having your own.

What to Ask a Credit Counseling Agency

If you have decided to seek help from a credit counseling agency, never presume that all agencies have your best interests at heart. There are agencies that disguise themselves as “non-profit” credit counseling organizations, when in fact they are conducting illegal operations.

To avoid being ripped off, exercise caution and do your research. In this article, we present the questions that you should ask a credit counseling agency before hiring their service.

As a customer, don’t be afraid to inquire about these issues. An ideal counseling agency would not hesitate to give you clear and straight answers. Consider the following questions:

* What are the credentials of the agency? Is it a licensed agency and one that is accredited by the government? Is it a member of a national credit organization?

* Where does the agency derive most of its income? Are the counselors paid based on the number of clients they enroll in the agency’s debt consolidation program? If the agency’s income is dependent on client’s fees, chances are you may be charged expensively for its services.

* Are the counselors certified and competent to give correct advice? See to it that all employees of the credit counseling agency are licensed and professional. What kind of training did they have? Do they have experience in handling different types of debt issues?

* How long does each counseling session last? A good agency should provide each client at least 90 minutes of counseling. During each session, the client’s problem should be thoroughly discussed to make sure that an appropriate solution can be taken.

* Will my confidentiality be assured? Since you will be providing a lot of personal information about your finances to your counselor, the agency must guarantee the confidentiality and safety of your privacy.

* What costs are involved and how much does the agency charge for its services? All the costs involved should be discussed right from the beginning. As a client, you should be clearly aware of all the fees you’ll be paying in exchange for the company’s services. Nevertheless, bear in mind that you should not submit any payment until the services has been rendered. A legitimate credit counseling agency should not demand payment from you until your problem has been resolved.

* Can you access your account regularly? You should have the option to access your own account particularly if you’re going to sign up for the agency’s debt consolidation program. This way, you can be assured that all your payments are properly submitted to your creditors.

* What exact services does the counseling agency provide? Watch out for agencies that insist on debt consolidation without first exploring other possible solutions to your debt problem. For instance, a counseling agency should not only help you get out of debt but should teach you how to manage your finances more effectively as well. Your counselor should help you work on a budget to make sure that you won’t have debt problems again.

How Bad Credit Debt Consolidation Will Help You

The concept of bad credit debt consolidation means taking action to rebuild credit history. If you currently deal with multiple debts from different creditors and is experiencing difficulty in keeping up with your payments, debt consolidation may be just what you need.

There are two ways to consolidate debts: one is by enrolling in a credit counseling course and the other is by obtaining a debt consolidation loan. In this article, let’s take a closer look at each of these options.

Debt consolidation Loans for bad credit

By taking out a debt consolidation loan, a borrower can pay off all his creditors and all existing debts at one time. This way, continuous debt build up is prevented because of the interest rates and penalty fees incurred each month. After all debts have been completely paid, the borrower can focus on paying only one lender and that is his debt consolidation company.

A debt consolidation loan is usually a secured loan. This means, the amount of loan available for the borrower would depend on his home equity. Since the loan is secured with a property, many lenders are willing to provide the needed fund despite the borrower’s bad credit.

For those who are planning to use a debt consolidation loan, it’s important to understand the risks involved. Bear in mind that failure to keep up with your monthly consolidation loan payments could mean losing your home property to foreclosure. In order to succeed, one needs to create a definite repayment plan that works and do his best to follow it.

Bad Credit Debt Consolidation through Counseling

Another way to handle debt problem is to seek help from a credit counseling agency. A credit counselor should be able to work out a negotiation with your creditors for lower monthly payment terms. Aside from reaching a negotiation, credit counseling should be able to help you come up with an effective budget plan to help you cope with your present financial situation.

Before signing up with a credit counseling agency, don’t forget to check its background and reputation. Consumers must be warned that even some counseling services who claim to be run by “non-profit” organizations do not always guarantee a legitimate service. The only way you can check this is by doing your own research about the company’s history and track record of service.

Stay away from credit counseling agencies who may force you into acquiring a debt consolidation loan or enrolling in a debt management plan. Although an agency can suggest these options, especially for people with extreme debt problems, the final decision is still up to you. A real credit counselor should take time in hearing out the issue and evaluating the real cause of your debt problem.

Also, watch out for credit counseling agencies who demand unreasonable upfront fees without rendering any real service. If a counseling agency asks you to pay an expensive amount of money in exchange for just a few hours of talk, better take your business somewhere else. The primary goal of a real debt counseling service is to help consumers with debt problems, not make money from them.