Debt Reduction Tips
Debt Consolidation, credit counseling, bankruptcy...
Are your debts piling up and making life miserable? We've got you covered with 100+ well-written articles that help you identify if you've got a debt ratio that's too high, painless ways to reduce debt, and sound advice on dealing with bill collectors. We can even help you find low-cost, non-profit credit counseling...don't call those expensive debt relief companies.
“Pay as You Earn” takes the risk out of college loans. It is the brainchild of President Obama, allowing low and average-income students to pay for their education without risk of owing more than they can afford to repay. It also relieves recent graduates from an impossible situation, finding themselves with loans to repay before they can even secure an income. The program allows students to repay their loans at a rate they can afford. If they cannot find a job, they pay nothing until they do. The federal government pays the interest up front for up to three years.
The holiday season usually triggers a flurry of activity. Most of us spend a lot of time preparing the home for the coming festivities, all to make these hectic few weeks flow more seamlessly. By the time New Year’s Eve rolls around, a New Year’s resolution is the last obligation we face after a long list of chores and responsibilities. Regardless of whether you believe in such decrees or not, the New Year is the perfect time to put your finances in order. Why not focus on improving the health of your financial situation.
There are many myths about money. While many of them have basis in fact, none of them are going to solve your financial woes by themselves. Sometimes following them can make things worse. When taking money advice, be careful to take what works for you and leave the rest. Only you can decide what fits with your financial plan. Here are eight 'rules' that are not always right:
Have you ever created a monthly budget for your household that broke down your income and expenses into very specific categories? Don't worry, most people haven't. The normal household budget includes income, essential bills, food and gas and that is it. After all of those things are calculated, you come up with a number that is left over and call that your disposable income. In other words, that's the money you can use for entertainment, vacations or even redecorating a room in your home.
These are times of economic uncertainty. Foreclosures are much higher than usual. Many people who are paying their mortgage are "under water" and owe more than their houses are worth. Unemployment remains at levels that are almost unheard of in post-World War II United States. These rates have remained higher than usual for nearly four years. Millions are Americans are nearly drowning in debt and have little hope of paying it off. Many people are beginning to question the validity or even the possibility of achieving the American Dream. Has this goal disappeared for current citizens?
It seems like every time you open the newspaper turn on the television or just poke your head out the house window, something else terrible has happened in the world. Banks collapsing, economies failing, currency values dropping, and this is just in the financial sector, let alone everything else taking place in the world. This makes it incredibly difficult to keep your head up, because after all, if these large, powerful industries and countries are able to collapse in what seems to be a whim, than what chance do you stand to overcome such adversity in your own life?
Recent statistics reveal that the average student loan debt for Americans under age 30 in 2012 is almost $21,000. The nation’s student loan debt keeps rising without college students understanding the risks involved. While student loans seem like easy money to a young college freshman, there are some critical points to consider. Most students expect to have a job offer upon graduation, but what if there is no job available? This is a grim reality for many recent college graduates in today’s economy.
Does the idea of being mortgage-free make you giddy with happiness? Yes, not having to pay a monthly mortgage would make many people feel incredibly free and stress-free. It can be possible to pay off a mortgage early; many people do it every year. However, paying off the mortgage early is not always the best idea in every situation.
Debt collection agencies often attempt to use aggressive, harassing and misleading tactics in order to intimidate a person into handing over money. Many of the lies that debt collectors use to harass families are actually illegal under the federal Fair Debt Collection Practices Act (FDCPA). Unfortunately, the FDCPA has not stopped all bill collectors from continuing to use illegal collection methods. As more and more uncollected debt has accrued predatory collection agencies have sprung up that buy uncollected debt for pennies in hopes of collecting big. These debt buyers have been at the forefront of abusive collection practices.
A shaky economy and stagnant wages means that more consumers are focusing on paying off their existing debts and beefing up savings accounts. If this is your goal, then switching to a zero dollar budget can make those objectives easier to reach. 
