Make Freedom from Debt a Primary Goal

Make freedom from debt a priority, even if you do not yet see how you are going to accomplish it. Each time you are faced with a decision, evaluate whether the outcome is going to further your goal of paying off your debt and living debt-free. If not, you must decide whether the rewards are worth the amount you will pay in interest by not paying your debt off early. Suppose taking a particular job will give you valuable work experience that will add to your resume and further your career, but the starting salary is so low that you will have to reduce your payments and pay off your debt over a longer period of time. Is the benefit worth the cost? How about spending your tax refund on a two-week tropical vacation?

Are the stress relief and the time spent bonding with your family or friends worth the sacrifices you might have to make later? Could you shorten the vacation or stay closer to home, and put half of that money toward paying off the loan? What if your company matches your 401(k) contribution up to 3 percent of your salary?

Are you going to gain more from claiming the matching funds and earning a 4 percent return on the savings you sock away, or from using that money to quickly pay off a private student loan with a 12 percent interest rate? Some trade-offs, particularly those that promise long-term benefits like retirement savings or career advancement, may be worth making, and there may be times when, for personal reasons, you choose instant gratification over paying off your loans earlier. At least you are making a conscious choice and weighing the consequences of your actions. When you are aware that you are making a choice, you are less likely to act irresponsibly or in a way that drives you further into debt.

Know Your Financial Realities

The first step to your future financial security is having a clear understanding of your present circumstances. Based on this understanding you will be able to identify your needs and your resources, develop a plan of action, and regularly evaluate your progress to see whether you are still on course.

Income and Outcome

Begin by making a list of all your financial assets, including the money in your checking and savings accounts, investments, and savings bonds. If possible, use a spreadsheet on a computer so that you can do calculations and rearrange the information easily. Next, write down your regular monthly income from all sources. If your income comes at intervals from commissions, contracts, or royalties, write down what you have received over the last six months, and any payments you expect to receive within the next three months, and divide the total by nine. This should be reliable income that you are certain of receiving; note tentative income and pending contracts separately. Now, take a look at your bank statement and credit card statements for the last month, and in another column, write down the amount you have withdrawn from each account. Subtract any major one-time expenditures, such as the purchase of an appliance or payment of a large medical bill. Add up your income and your expenditures, and compare them. If your expenditures for the last month were greater than your income, you need to act quickly to avoid going deeper into debt. Think about how last month compares to other months of the year; was it a typical month, or a month in which you had extra expenses, such as property taxes or Christmas shopping? Are there months when you spend less to compensate? Now make a list of everything you owe: student loans, credit card balances, mortgage, and money you borrowed from a friend or parent.

Create a “Picture” of Your Student Loans

Gather all your student loan documents together and create a chart or a spreadsheet of all your loans. You can begin by going online and looking up your federal loans in the National Student Loan Data System, at www.nslds.ed.gov. Details of private and federal loans obtained through Sallie Mae can be found at Loan Advisor Money Lender. If you borrowed directly from a private lender, look up the information on your promissory note and loan documents, or contact the loan servicer directly.

On a chart or spreadsheet, write down the name and contact information of the loan servicer for each loan, including a telephone number and Web URL, and your account number. Beside each loan, write down the type of loan, the school you attended, the date when the loan was disbursed, the amount of the loan principal, the interest rate, the amount of principal and interest outstanding, the term of the loan, the repayment plan, and the monthly payment and due date. If you have a consolidation loan, remember that it was used to pay off underlying loans that are no longer outstanding. FinAid.org has a convenient chart, at www.finaid.org/loans/studentloanchecklist.phtml, that you can print and fill in. This loan “picture” will help you understand your obligations and make decisions about paying off or consolidating loans. It will also serve as a reference when you need to contact your loan servicer. It is impossible to say exactly how much you will finally pay; the amount is affected by the length of time over which you pay the loan off, whether you have periods of forbearance or make extra payments, and variations in interest rates. You can use calculators, however, to estimate how much you will pay under different circumstances. Add a column to your loan chart showing how much you will pay if the loan is paid off in ten years. Update the chart whenever you make extra payments to bring down the loan balance.

A 7-Point Straightforward Plan for Getting Out of Debt

Debt might be good in some instances; however, when not properly managed; debt can be a very serious encumbrance on your odds of attaining financial freedom. When the summation of your debt payments each month is higher than your monthly income, your financial situation might look bleak and hopeless.

Unfortunately, many folks who have a massive debt burden from unpaid bills, payday loans, and credit card debts often throw in the towel to file for bankruptcy. The problem however is that filing bankruptcy is not always the best solution and some folks never recover financially once they take the bankruptcy escape. If you are willing to try one last time; below is a straightforward 7-point plan that can get you out of debt and get your finances back on track.

Stop the denial and seek help

The first step is to accept the stark reality that you have a huge financial problem and that you won’t be able to fix this problem without some help. You may want to sign up for credit counselling so that you can understand the root cause of your financial misfortune and learn how you can proactively avoid getting into a deeper rut.

Debt consolidation is another great solution that could reduce the weight of your financial debt by combining multiple debts into a single loan and extending the term. You’ll also need open up to your family and friends so that you can access support – they won’t invite you to potentially expensive hangouts and they might be able to lend you money at little to no interest.

Start paying off high-interest debts

The second step is to start paying off your high-interest debts such as payday loans and credit card debts. Paying off your high interest debt will free up money that you can use to pay down the principal on other kinds of debt. For instance, if you owe $5000 in credit card debt at 28.99% and you owe a credit union another $5000 at 12% interest, paying off the credit card debt first will free up the $120.79 monthly interest that you would have been paying on the credit card debt. You can then apply the $120.79 and any other money you make to reducing your debt to the credit union.

Stop using your credit card

The third step is somewhat similar to the second step on the plan in that you need to stop using credit cards until you’ve paid off your debts. Credit card debt is high-interest debt, the fact that you were contemplating bankruptcy suggests that you have less than excellent credit and you’ll be attracting high interest rate debts. While trying to get your finances in order, avoid charging new expenses to your credit cards – if you can buy stuff in cash or with your debit card, you need to take the time to ask if it is a need or want (that you might probably postpone).

Adopt a frugal lifestyle

The fourth step is to start living frugally as part of efforts to reduce your expenses and to have more money left over to pay off your debts faster. The art of being frugal includes cooking simple meals instead of going to restaurants or diners to eat. Making your own coffee sounds cliché but it is still cheaper than Starbucks. Instead of paying money to attend concerts, use social media hashtags to find free entertainment events near you.

You only need a car to take you from point A to point B, if your auto payments are killing you, “downgrade” to a smaller model. Public transportation is pretty decent in most cities, you don’t always need an Uber – carpooling is another smart option.

Begin to repay loans to family and friends

Lastly, you need to take proactive actions to keep your relationships with family and friends cordial – money matters can make a relationship go sour twice as fast. If you have borrowed money from family and friends when your finances went downhill, this is the part where you start paying back those debts. You should also try to pay back those loans with a little interest payment even if your lenders have not asked you for interest payments. Not everything can be quantified in financial terms but a friend (or family member) that lends you money is worth their weight in gold.

How can I manage my money better?

With the cost of living rising but not all wages rising accordingly, it can be a tricky time. It can feel like there is a constant need to be spending money, but in reality, there isn’t much to spend. So if you’re struggling from paycheck to paycheck, then something's got to give. Here are some ways that you can better manage your money, so that your money doesn’t manage you.

Get Help

If you are getting yourself into major financial trouble, then first of all, you need to seek help as soon as you can. It is going to be easier to deal with certain things before they get any worse. You could look at a site like debtconsolidation.co as a way to consolidate any debt that you have, if that is the issue (which in many financial cases it will be). But it is also worth speaking to the lenders that you owe money to, to work out a different plan. Some lenders will have a scheme where you can have an interest-free break for a couple of months, so that you can get back on top of things. The most important thing is that you face up to the problems and don’t just leave bank statements or bills unopened. It can be hard, but take charge.

Set a Budget

This may seem like a simple option, but think about your finances and if you have sat down and budgeted. Most people that get into financial difficulty will not have set themselves a budget; they have no idea what they are spending or how much they should be spending. When you take charge and budget, you know where you are at. If you’re looking to save, then make sure that you budget to spend less than you earn. Put your savings in as part of your budget too.

Get Everything You’re Entitled To

If you work, pay your taxes, and still struggle, then it is completely worthwhile to check that you are getting everything that you are entitled to you. You may not qualify for full welfare, but there may be some child maintenance grants that you could get if you’re a parent, or working tax credits, if you’re working. Though these kinds of thing aren’t there to rely on all of the time, they can be a great help when you need them. So check what you are entitled to in your situation on a site like welfareinfo.org.

Look For Ways To Increase Income

If you need a little extra cash, then looking for a way to get that can help to ease your financial burden. It could be another job or something that you can do from home like writing or looking for similar freelance work. If it can ease the financial burden, then it can be completely worth doing. And who knows, maybe you could make it into something that you do full time. Even if you’re just looking to save more, then this could be worth doing and the second income could be what you put into savings.

How The Credit Crunch Affected Us

Back in 2007, no business on the planet fared well up against the recession; more commonly known as the Credit Crunch. 10 years on, there’s a lot we’ve learned from the experience of living through it and after it. A credit crunch is a tricky time for anyone, but they mostly impact business owners and those whose personal finances rely on it, especially when you’re playing on the small degree. Before a credit crunch tries to roll around in the Western world once again, and they can vary due to the amount of variable inflation on the market, here’s what the previous one taught us to look out for.

How it Changed Credit Cards

Credit scores tend to vary a lot when the credit just isn’t there for people to borrow! That means credit scoring has changed a lot since the previous recession, and the world got a little more complicated because of it. Score generators now take into account the behaviour of consumers and the economic climate at the same time, and how your habits fare against it.

If you run a business, a credit crunch targets that first. However, that means your personal living costs are going to skyrocket at the same time; it’s all a cycle of cause and effect. First of all, if you have two separate credit card accounts for these two purposes, keep an eye out for a little credit card consolidation to tide either one of them over in times of trouble. People tend to panic and bulk buy when the future is uncertain in this way, so it’s easier than you’d think to make the money back.

How it Changed Family Dynamics

No one was unaffected by the lack of money that was around during the credit crunch, and most of all it meant that families tended to stick together. Staying afloat was all about money, so divorce rates dropped when it came to preserving a family’s health. Whilst the real estate market dropped as a result of this, it meant people could pool their resources.

Stamp duty was astronomical at this point, but there was a great boom on the renovation front. People got better and better at the DIY side of things and many houses had extensions in their lofts and back gardens. Everyone was looking for a little more room, and standing on your own two feet was often impossible.

Community was strong during this time, and sticking together happened outside of families as well. People often tended to use each other’s cars and take more public transport; this was a lot more affordable than buying own or new cars. Less and less mileage affected the roads and thus the fuel consumption rate dropped. That’s a win for the environment!

The credit crunch had a lot of cons, but on the other hand these sometimes generated their own pros. Seeing the positive side of negative things is essential to finding opportunities to making and saving more and more money!

Your Financial Mistakes Do Not Control Your Future: You Do

There’s a high percentage of people in the western world living with crippling debt that’s like a weight permanently on their shoulders. When in this position, most people’s initial reaction is to deny the problem exists and hope it goes away on its own. Unfortunately, without a gigantic stroke of luck, it never will just leave you. It’s time for you to start controlling your future, putting your financial mistakes behind you.

Coming to Terms

It’s all too easy for people to start beating themselves up when they realize they’ve made a mistake with their finances. But it happens to most people, to varying degrees, and at some point during their life. If you own up and accept that you’ve made mistakes, then you’ll be taking the first step toward recovery. The best time to have started taking care of your debt would have the been the first second you realize it was out of control; the second-best time is right now.

Taking Action

It’s tempting to shy away from opening bills when you know the numbers that you see will make you want to burst into tears, but it’s an essential part of the process. Once you know how much debt you have, you can begin to get rid of it. There are more resources to help you become financially sound than you might realize, so no matter how bad it is, don’t panic. Sites like www.DebtConsolidationLoans.com can help you get out debt without bankruptcy. Even if it feels like you’re drowning in debt, there’s always a way out. Later on down the line, you’ll acknowledge the action you took as one of the best decisions you’ve ever made. 

Making the Changes

Of course, it won’t be very good if you’re trying to shift your debt while still doing the same things that got you into debt in the first places. Taking action to improve your financial situation is like getting a new lease of life, so make sure your new life is financially sensible! There are many easy practices you can adopt that’ll save you money and stop you from falling into the same problems as last time; take a look at http://www.rd.com/advice/saving-money/money-saving-tips/ for examples.

What’s Next?

Some people think that having a sizeable chunk of debt at one point in their life stops them doing things that require financial backing, but that’s not the case. If you have ambitions of one day owning a home or starting your own business, then continue with those ambitions. Part of the process of being financially sound is no longer feeling tied by your past mistakes.

Older, Wiser

There’s a lot of guilt and shame that goes on in people who know they’ve made mistakes with their money. Every day is an opportunity to learn and grow as a person, however, and really, most everything in life should be forgiven so long as you’ve learned the lessons of your actions. The quest for financial security is not an easy path to walk, but by the time you’ve reached the end of the road, you’ll be a better person.

Climbing Out of the Debt Hole

Acknowledging debt is a hard step to take, requiring a lot of courage followed by a very deep breath. But it’s only half the job. The rest of the problem is paying at least some, or all of the money you owe, back. Unless you are very lucky to stumble upon, win, inherit, or steal a large sum of money (that last one is not recommended), you’ll have to start on the long road of making repayments and with a constant squeeze on living standards, it is tough. It is not impossible, however...

Attitude

This is where it starts. Without the right “can-do”, attitude it will always be a vertical climb that looks impossible. If the sheer size of your debt scares you into catatonia, breaking your debt down into manageable milestones could be what gets you moving. This is particularly positive when your personal finances are restricted in the first place, making belt tightening all the more difficult.
Let’s say you have a debt of (insert number here). Instead of thinking about where you’re going to get the magic number from, think about where you’re going to get the next £100 or £500 from to pay down the bill. The number you choose must be one you’re comfortable with; one you think is possible for you to obtain.

From Apathy to Action

Now that you have set some manageable targets, you can start taking action towards achieving them. Sounds cheesy, doesn’t it? Don’t let that be a reason for you to disengage with the simple fact that if you don’t start making money; your debt will only grow. Creditors understanding only lasts as long as they money is coming in.

Clearing Out

We’re all surrounded by stuff; the accumulation of money spent on ideas that led nowhere and dreams that, for one reason or another, were abandoned and left to gather dust. It’s time to make use of the thing you don’t use by selling them. Amazon, Ebay and car boot sales are all great. Choose whichever you’re most comfortable with. Some items, like musical instruments, will do better in private sales. It’s worth getting a valuation before you advertise.

Unusual Opportunities

There are opportunities everywhere, if you’re open to them: the door-to-door salesman who likes your attitude and offers you a part time job (it happened to me); the friend that needs a problem solving or something fixing and will pay for a good job done; an advert requesting healthy volunteers for paid medical trials (companies like GSK will pay up to £2000 per trial for up to four trials a year). All of these opportunities are out there and should be utilised.

Broader Horizons

Perhaps you really are worth more than you think. Perhaps it’s time you had a pay rise. Perhaps there’s a better job out there with your name on it. If your current situation makes it impossible for you to live without getting further and further into debt, change your situation; look for a better job, look abroad. Don’t let your apathy keep you in debt.

Climbing Out of the Debt Hole contributed by Sally Shaws.

Special Direct Consolidation Loans

When a student graduates from college or another type of a continuing education school more than likely that student will be in debt with student loans. With the cost of schooling getting more and more expensive every year the amount of debt for a student can be quite high. Often times the student will need help in figuring out how they are going to make their payments. This is where a special direct consolidation loan comes in handy.

What Is A Special Direct Consolidation Loan

This is a program that was created to help give students with student loans a chance to combine all of their student loans for people with bad credit into one. This would give them one monthly payment instead of having multiple payments to make every month as well as having one fixed interest rate.

Eligibility For This Loan

The students that are eligible for a special direct consolidation loan must meet two pieces of criteria. This criteria is that they should have at least one loan that is a government help direct loan as well as having at least one commercially help loan which is guaranteed by the government.

Are These Loans A Good Idea

The answer to the question of this loan being a good idea is strictly up to your financial situation. This loan will give you the advantage of having only one monthly payment as well as one fixed interest rate so this will help make your monthly bills a little more manageable. Another advantage is that this loan program does not affect your credit score and you still have the option of getting out of debt quicker by making extra payments every month.

As with any other financial decision you should take the time to research this loan program. As with any other loan there are pros and cons. You should know exactly how the program works and how it will affect you before accepting the terms.

Applying For A Special Direct Consolidation Loan

If you know that you are eligible you should contact the US Department of Education. They will also determine your eligibility and if you meet the criteria they will have a servicer contact you. These servicers are: FedLoan Servicing also known as PHEAA, Great Lakes Educational Loan Services, Nelnet and Sallie Mae. When speaking with one of these servicers you should be sure to be honest with your financial situation and give them all of your loan information. If you are not honest they will not be able to get the proper loan set up for you.

Conclusion

Once you have found out that you are eligible and apply for the unsecured personal loans you can check your status by calling the customer service telephone number. It will take some time but once you have been approved you will be in a much better financial situation.

Business debt options - Best possible ways to get rid from it

In this day and age, businesses are having a generally hard time and the need to keep on top of your finances as a business owner is more than imperative. There are other companies out there that will be happy to jump on you as soon as something goes awry in terms of finances, and it’s up to you to be able to deal with them if that time ever comes.

Those in retail will have felt it the hardest in recent years, but almost everyone has been affected by the crippling effects of the recession. Even the most established or organisations have had to close their doors permanently, but with the right guidance and available options, you can steer your way out of debt and other financial qualms.

Business loans and business debt are the most common place areas where companies fall down, even though these are often necessary evils to help a company develop and go forward with new strategies. The problem is, is that the businesses’ income has to match repayments, which to some regard is what Business Debt Management Help is all about.

Business debt management, if implemented effectively, can help irradiate debt over time and there are several ways to be able to achieve this.

A plan can be applied that allows smaller repayments to ensure that they meet your monthly income and maybe even the capacity to freeze any further interest on the account. If this is possible, you’ll be able to avoid announcing bankruptcy.

The business may also be able to receive early invoice amounts in order to have early income going into the company’s account; this can enable you to get at least a percentage of an invoice that wouldn’t normally be due until the end of the month.

Other options include applying a commercial mortgage on any property owned by the business, as well as selling property and assets that isn’t integral to the business. Going through business debt management may also alert a potential investor who, if you’re lucky enough, will be able to write off your debts through buying the company.

The ability to show where the company fell down financially will be able to be told by companies such as Business-Debt-Management.co.uk and is a great way to be able learn from past mistakes.

Sam writes for Business-Debt-Management.co.uk, a company who offer business debt management & advice.

Top 6 Benefits Of IVAs

An Individual Voluntary Agreement (IVA) is a great alternative to filing for bankruptcy. This is a binding agreement made between you and your creditors that they’ll freeze your debt, as long as you pay back some of the sum owed through monthly premiums. After five years, your outstanding debt will be written off, and you’ll only be asked to pay back what you can afford. You’ll need to be indebted by over £10,000 to be eligible for an IVA, and you must have more than two creditors.

Predetermined Period

Don’t you just love the satisfaction of marking down an important day on your calendar? Within five years, you could be debt-free. The best thing is that you know exactly when to look forward to your last payment. Take this time to start cutting up your credit cards or swatting up on spend-thrifty techniques.

Peace Of Mind

Debt is a leading cause of depression. With creditors banging down your door, life becomes stressful. You may be feeling overwhelmed and desperate. An IVA freezes all interest and charges, as well as gets your creditors off your back, leaving you to deal with your debt problems calmly. Your house shouldn’t be threatened either and all court charges should be stopped.

Looking forward to being debt-free also gives you a goal to work towards! That light at the end of the tunnel is a great way to motivate yourself to meet your repayments.

Paying Back

The amount of money you pay back through IVA is agreed with you and is based purely on what you can afford. This means you’ll be able to live reasonably comfortably whilst slowly paying off your debt. This sum won’t increase unless, at your annual review, it’s deemed that you have a higher salary which merits a larger premium. It’s in everyone’s best interests to ask for a sum that you can afford.

Professional Ramifications

When you apply for an IVA, this is a personal issue that won’t go beyond yourself and your creditors. Your professional position will not be affected in the same way that a bankruptcy would damage your career prospects. Nobody needs to know and the IVA will drop off your credit history completely, in six years’ time. For more information on how an IVA will affect you, visit this website for advice.

Paying Less

It’s likely that you won’t be able to pay off the entire debt before your five year contract runs out. This means that you end up paying less to your creditors than you already owe. Before you start feeling too sorry for your creditors (ahem), consider the amount of money they’ve made off your debt already.

Legally Binding

With the law behind you, you have the security you’ve been longing for. As long as you meet your IVA payments, you’re completely protected. Make sure that you talk at length with the financial advisors at your IVA company about the legal requirements of your agreement, so you’re 100% protected.

Gadgets vs Mutual Funds: Where should you invest more and why?

Money is a commodity you certainly cannot survive without. You may have various sources of money, but how you choose to use it depicts whether you’ve utilized the value of money to its full potential or not. Regardless of the amount of money you have in hand, you should always plan to spend some and save some.

Many of the individuals are tempted to spend a lot more than necessary when they have exposure to significant amounts of money at any given time. With the increasing advancement in technology and frequent launches of new gadgets, this just adds to the temptation.

The launch of the Apple iPhone series took the world by storm and it was just the start of a more technological advanced era. Almost everyone gravitated towards the idea of a Smartphone having a multi-touch screen as the user interface. However, one thing they ignored was its cost and the financial impact it would have had on their other more important expenditures.

As long as you have planned your expenditures, which would mean that you have included the cost of any particular gadget you wish to buy, spending on gadgets will not impose any threat to your financial security. Just like you plan your expenditure, you should also plan your savings. You should set out a certain portion of your total monthly income for your savings.

Amongst many other ways, the best way in which you can achieve greater value for money is by saving your money in mutual funds. There are a wide variety and styles of mutual funds that can be accessible to you. You may choose the one that is best appropriate for your requirements.
Basically, mutual funds are a type of investment in which a certain group of investors assemble their money and appoint a portfolio manager. The manager in turn invests these funds in bonds, stocks or any other investment securities.

The manager obviously charges a fee for his services but keeping in view the rewards those investments undertaken by him may bring, the fee may not seem to be that big of an amount. Mutual funds can be an efficient way of investing your money if you are planning to save money for your retirement, education or any other financial goals.

Gadgets and mutual funds are in complete contrast to each other. While the value for money held in mutual funds increases over time, the value of gadgets depreciates over time. Purchasing any gadget requires a massive investment initially as the purchase price and then in subsequent periods as repairs, if required.

Over time, gadgets depreciate in value as you continue to use them and if a new version of the same gadget is launched in the market, it depreciates even more. If you go on to sell your gadget, you may at times have to settle for less than half the price.

Though, some of the gadgets are way too expensive, their cost can be completely justified with the features they have. However, one does not necessarily need to buy these expensive gadgets; instead they can settle for their cheaper alternatives. For instance, there are many alternatives of Smartphones to those of Apple iPhones, though with obvious differences in quality and extensive features.

Many of the individuals tend to get carried away with these gadgets and the added features each new version launched in the market has, to an extent that they might even continue to spend on them completely ignoring their personal financial situation and stability. Even worse, they might even end up being in heavy debt. However, if such a situation arises, the individual should be alert of the consequences this can have on him and his dependents, if any. Before anything else, you should first learn how you could settle credit card debt.

Though, spending on gadgets is not a bad idea completely, but it should not be over-excessive. There are some people who are gadget enthusiasts and want to possess every new gadget that is launched in the market. However, if you are already facing credit card debt issues, it would not be wise for you to continue spending on these expensive gadgets instead you should learn how you could settle credit card debt first.

The above article is composed by Sarah. She is associated with finance related companies as their freelance writer. In her free time she writes articles related to finance and saving money. She always recommends people to learn how you could settle credit card debt.

How to know whether a debt consolidation company is a scam

Everyone wants to become debt free and many people assume debt consolidation as a legitimate means to pay off their debts and breathe a sigh of relief. As a result, they look for debt consolidation companies that will solve their debt problems for good.

However, they are not aware there are scam debt consolidation companies in the garb of legitimate debt consolidation companies that target gullible customers to make some quick money. They will make some promises that are too good to be true and this is one of the surefire signs that they are a scam. You should always stay away from these scam bill consolidation companies all the time since trying to get debt free with the help of any of these companies can land you in bigger trouble. Given below are the signs that will help you identify con debt consolidation service providers:

1) Not informing you about your rights as a debtor

A scam debt consolidator will never let you know about the rights you enjoy as a debtor. They will also not say what steps you can take for yourself to make yourself debt free.

2) Ask you for upfront payments

Scam companies will ask for payments from you even before they provide any service to you. They will also make false promises to repair your credit to get you into their trap.

3) Tell you not to contact any credit bureau directly

A scam company will advise you that you don’t need to contact any credit bureau at any point of time.

4) Tell you to prepare a new credit report

It is a surefire sign of scam companies that they will tell you to prepare a fresh credit report with an Employer Identification Number.

5) Ask for your Social Security Number

A genuine company will never ask for your Social Security Number by any means.

6) Tell you to challenge all your information in the credit report

A scam company will give you advices to challenge and deny all your information that is present in your credit report. They will also tell you to generate a fresh credit identity.

7) Try to sell you loan products

Scam companies will try to lure you into a second mortgage or home equity line of credit. Though you can consolidate your bills with their help, you have to furnish your home as collateral and have the risk of losing it.

8) Offer remarkably low interest rates

It is a sign that there are some hidden charges involved which the lenders won’t disclose.

9) Asking for personal financial details

A genuine consolidation company will never ask for details like your bank account number, Social Security Number, driving license number and other details prior to signing an agreement. You might be exposed to identity theft.

Knowing these signs will always help you avert a scam bill consolidation company.

Jonny is a financial advisor with EasyFinance.com. He helps people to resolve their credit card problems and also problems related to home equity loan, personal loans, and other loans.

Manage your debt, by consolidating your debt

If you are facing a mountain of debt, consolidating your bills may be beneficial. While it doesn’t work for everyone, debt consolidation can be a way out of the red for many. What many people don’t know, however, is that there are a number of ways that debt consolidation can be achieved.

When you are researching ways to manage your debt, through consolidation, here are five ways to consider:

• Mortgage Refinance

If you own a home, and have equity built in that home, a cash-out refinance can give you the money you need to pay your bills. Sit down with your bills and come up with a grand total; you’ll need this number when you apply for a cash-out refinancing loan. Your lender may even be willing to pay these debts directly; it won’t hurt to ask. In addition to paying off your bills, refinancing your home may get you a lower interest rate and a smaller mortgage payment. You will also qualify for a tax deduction on next year’s federal income tax returns.

• Balance Transfer

If your credit is still in good-standing, consider applying for a credit card that will allow you a zero percent balance transfer. By transferring the balances you are carrying on other credit cards, you will not only have the benefit of making one monthly payment, but you will save money in interest in the long run. Do make sure, however, that you look to see how long the introductory rate will last and what your interest rate will be raised to once this introductory period is complete.

• Unsecured Loan

Though these loans are becoming more difficult to find, they are still being offered by some lenders. By taking out a single loan to pay off your debt, you will pay your debt off earlier than you would have otherwise, saving you hundreds, if not thousands, of dollars in interest. Before taking out a loan, be sure to look at the terms and conditions; if you aren’t going to save money overall, the only benefit you’ll find is in making one payment each month rather than several.

• Debt Settlement

If you’ve found yourself with an insurmountable pile of debt, using a debt settlement company may be an option. A company such as this can contact your debtors, negotiate a settlement with each and then require a single monthly payment from you. Do understand, however, that this option will have a negative impact on your credit score; your debts will be marked as settled for less than what was due.

• Credit Counseling

A credit counseling service works in much the same way as a debt settlement service with one major difference: you will pay back 100 percent of what you owe. A credit counselor, acting on your behalf, will negotiate lower interest rates on your various accounts and then charge you a set amount of money each month. Out of this payment, the credit counseling company will pay your bills for you. This can bring a great deal of relief as you will only be making one payment every month and the calls from creditors and collection agencies will cease.

If you are facing debt that has you overwhelmed, consolidating your bills can provide tremendous relief. Not only will your bills be paid sooner, but you may just see your credit score not only survive, but improve throughout the process. The worst thing you can do, if you are facing debt, is to ignore it; explore any of these five options and start climbing your way out of debt today.

Sheila Barnett writes on personal finance and budgeting for http://www.financialcalculator.org, a site with helpful tools and information about investments, loans, net worth and even a debt calculator.