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28 September 2011

Debt Plan

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Debt Plan
If you find yourself in debt then there is one thing that can help you – and that’s having a plan. With a debt plan you can start to plot a trajectory to get yourself out of debt and to start improving your financial situation. If you come up with an in-depth debt plan that takes into account the facts and figures of your current financial crisis (such as your budget for food and daily living, your current income, the interest on your existing debt etc) then you can stick exactly to this plan and you should be able to predict the precise date by which you will have escaped debt. Of course life doesn’t always go to plan, so it’s important to keep this plan flexible and to keep re-addressing it.
Another kind of debt plan is a ‘debt management plan’, which is also known as a ‘DMP’. A debt management plan is a type of debt plan created for you by a third party organization. In cases where your debt is out of control, a DMP will involve a third party organization that looks at your debts and assesses your income and current budgets. This helps you to …

13 September 2011

Debt Forgiveness

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Debt Forgiveness
When you’re knee deep in debt and starting to panic about how you will ever make all your repayments it is understandable that you might start dreaming of debt forgiveness – that maybe one day your lenders might just write to you and tell you not to worry about your debt after all, or that one day someone might just bail you out and give you the money you need to pay off the debts. But does such a thing exist?
The good news is that yes – debt forgiveness does exist, often under the guise of ‘debt forgiveness’. Debt relief refers to the complete or partial forgiveness of debt, or the slowing or cessation of debt interest by the organizations or individuals owed the debt. Primarily the term debt relief refers to third world countries, which is used by the lender countries in order to try and help developing countries to recover from debt. This is a controversial subject because it of course reduces a revenue stream for the countries that are owed the debt, but for many third world countries completely paying off debt is actually rather infeasible.
Personal debt forgiveness or debt relief meanwhile comes most commonly from …

30 August 2011

Why You Need to Get Out of Debt

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Why You Need To Get Out Of Debt
Some people mistakenly believe that debt is no cause for concern – they can pay it off conveniently every time their repayments are due, and otherwise just forget it exists. Something like a student loan for instance will be little more than a a monthly payment around the cost of a mobile contract or a TV package and as many of these are means tested you should always be able to afford the repayments as they come through.
So why worry about paying back your debt at all? What’s the big deal when it comes to being in debt? Here we will look at precisely why you don’t want to be in debt and why you should get out of the situation as quickly as possible.
 
It Costs a Lot: Being in debt costs a lot of money and the longer you take to pay your debt off the more you will pay in total as you accrue more and more interest. This then means that if you pay your debt off now, although it might sting in the short term, you will actually be saving yourself a lot of money for the long haul.
 
You …

11 August 2011

Organizing Repayments

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Organizing Repayments
When you take out a new loan it is highly important that you make sure you are going to be able to afford to pay it back. Failure to do so can cause you to have to take out more loans to help you make repayments, can cause you to have to pay late payment fees and general trigger a downward spiral that results in your getting further and further into debt.
There are many factors that will contribute to your ability to make your repayments and pay back your loan. One of these of course is avoiding taking out loans that are too large or where the APR is unreasonable. Another is of course money management and making sure you always have enough money in your account to make the payments.
One often over looked aspect of being able to manage your loans though is organizing repayments. Your ‘repayment scheme’ is the term often used to describe the pattern in which and duration over which you will pay back your loans. In other words it means deciding whether you are going to pay back lots of very small lumps, or just a few very large ones. Likewise it also means …

20 July 2011

Debt Free

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Debt Free
Being completely debt free means simply not having any debts to pay back, and technically this would mean being in a situation where you owed not a scent to anyone. However despite this, the majority of people would consider having only a small amount of debt as being debt free where it was expected. For instance someone who only owed money for their mortgage, or a student loan, might still class themselves as ‘debt free’ – as might someone who had purchased something on finance or who had just a little credit card debt left to pay. Under the very most rigid of definitions, very few people are ‘truly’ debt free. Nevertheless, those who are currently struggling with their debt would be happy with any measure of freedom from debt.
So what does it really mean to be completely debt free? The repercussions it has for the rest of your life are  greater than you imagine and it can feel truly like a burden has been lifted. Here are just a few things you will notice about being debt free:
 

Your money is your own – the amount of money you have in the bank is the amount of money you …

2 June 2011

Loan Payment Protection Insurance

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Loan Payment Protection Insurance
If you are in debt then that will mean that you have at some point taken out a loan (or several) – as all debt is is loans that you need to pay back. It then follows that the larger the loans you took out, the larger the amount of debt that you need to pay back – so you need to be careful in choosing your loans in the first place, and you need to ensure that you are aware of any hidden charges that might exist.
 
This is particularly true of something called loan payment protection insurance (also known as simply loan protection insurance). Many people are paying over the odds on loan payment protection insurance and are unaware that they are even doing so and this is something that is currently causing a lot of controversy in the media. If you fall into this category then you may be able to claim back some money, and if you don’t then you at least should be aware of the problem to avoid getting into trouble in future.
In theory loan repayment protection insurance is a good idea. As the name suggests this is insurance that you …

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