Thursday, November 20, 2014

How does the Debt Counselling process work?

 The term of the National Credit Regulator (NCR) you may officially implement to a debt Counsellor for debt consolidation if you are unable to meet your financial responsibilities under credit agreements each month. The debt Counsellor must assess if you are over-indebted. The process is as follows:

Step 1
 Provide information of your income, per month price range and debt responsibilities to the debt Counsellor. You will need copies of your pay slip, ID and the latest statements of all your financial obligations.
Step 2
The debt Counsellor will do an initial assessment to check if you are over-indebted and then arrange for a assessment with you. This could either be a experience to deal with or a telephone assessment.

Step 3
During the assessment, the debt Counsellor will confirm your budged and your existing debt responsibilities. A new price range will be agreed upon to determine the quantity available for debt pay back. At this stage the debt Counsellor will also offer you with information of all the costs involved, as well as an temporary debt pay back schedule.

Step 4
The debt Counsellor will contact all your Credit score Suppliers as well as the Credit score Agencies to confirm your financial obligations. You will also be listed on the Credit score Agencies as being under debt Guidance and the record will stay there until you have repaid your financial obligations in complete, only where after the record will be removed. The debt Counsellor will, where possible, negotiate the suggested debt pay back schedule with your Credit score Suppliers.

Thursday, November 13, 2014

Tips for getting out of economical debt – beginning today

If you are here to learn guidelines for getting out of economical debt – beginning nowadays – I’m glad you’re here!   It can be so important to have economical freedom!
My husband and I have learned to be much disciplined to live below our means, and because of this, we have been able to stay mostly debt-free (we still owe on our home loan, but we are going to pay our home loan off early … we’ve already started.)

Tips for getting out of debt

Step 1: Consider a single transaction for your debts. Certainly the best way to pay off your debts is with a single transaction. If you can find the money to pay off all your debts, you’ll get back on solid economical ground quickly and without investing additional attention.

Step 2: Consider investing off the bank credit cards with the biggest attention amount first.  You’ll want to pay as much as you can to that account and then send the lowest transaction due to each of the other records.

Step 3: Then begin investing off others. When you’ve paid off one credit card, start investing on the credit cards with the next maximum attention amount. Focusing on one credit cards at a time gives you clear economical targets, minimizes your attention expense, and creates a sense of satisfaction.  

Step 4: Consider a house economical loan to pay off bank credit cards. If available, you can use a house economical loan to pay off debts. The attention on hel-home value economical loans is typically reduced than bank credit cards prices and can be tax deductible. This can be an effective repayment technique if you can handle it with discipline. However, these economical loans can be as easy to abuse as bank credit cards, particularly if you have a history of credit score. Also, you run the risk of investing down the house economical loan simultaneously you’re running up more economical debt on your newly cleared bank credit cards. Remember, your house economical loan, unlike bank credit cards, will be secured by a lien on your house. If you can’t payout your loan, you’ll be in default, and the lender can foreclose on your house.

Step 5: A less aggressive way to pay off your economical debts are to exchange your balances to lower-rate records. Known as bank credit cards surfing, this technique works until you run out of lower-interest opportunities. However, it does allow you to reduce attention fees and pay more against your existing stability.  In other words, you are transferring all of your economical debt from one bank credit cards with a high-interest amount to NEW bank credit cards with low or no attention amount 

Step 6: Control new investing. It’s always best to control new investing and pay more than the required lowest transaction whenever possible. Invariably, these cover little more than the finance charges. You continue to carry the bulk of your stability forward for many years without actually reducing that stability. Ideally, charging only what you can afford to pay off each month gives you the best benefits of bank credit cards and few of the drawbacks.  Or better yet- DON’T USE YOUR CREDIT CARD AT ALL!