Speaking of money… how would you like to be faced with spending massive amounts of money on flood damage clean up ?
What would you do if you had a flood ? Who would you call ? someone recently told me, look, go to 24 HOUR Fire Water Damage - they (Adjusters Reference Manual) can give them a list of good Water Out company’s that should be able to respond night or day… so, there you go… if you have a flood, follow his advice…
Robert Mandrake
Credit card debt is beginning to cripple many people who are finding themselves with huge debts; this increase is due in part to the ease with which cards can be applied for, and issued. The problem is it is just too easy to spend money but now people are looking for ways to try and pay off the thousands they owe to the finance companies. As soon as a person realizes the problem they are facing they should seek credit card debt relief at the earliest opportunity.
The first step is to stop using the cards altogether as continued use will just compound the problem and make it harder to resolve. Delay can mean ensuring whatever credit card debt relief solution you want to proceed with is made more difficult. The most frequent methods of debt consolidation are shown below.
Where a person in financial trouble is still able to apply for a credit card, then by obtaining one that offers a low rate of interest the debts can be consolidated leaving just one payment to make regularly until the debt is cleared. Consolidation loans are becoming popular as all the debts can be replaced with just one amount which should be considerably easier to pay on a regular basis.
This option does require a certain willingness on the part of the person in debt to be strict about the payments and the regularity in which they are made if they really want to end the debt problem. Remember, consolidation by card or loan will only work if the debtor has not already damaged their credit history.
If this avenue of credit card debt relief is not available then the next option is to look towards negotiation with the card issuer directly or through a company that specializes in debt relief. The company can negotiate with the creditors to accept some money, generally about 50 percent of the outstanding balance and then write off the rest.
The last option available to the debtor is to apply for bankruptcy which will clear all the debts and although this may sound inviting it should only be regarded as something done when all else has failed. Once this option has been decided upon the debtor must be in no doubt that they will find it difficult to apply for any type of credit until the end of the bankruptcy as they will need to rebuild their credit rating. Hopefully, the debtor will learn a lesson from this so they do not require relief from their credit card debts in the future as bankruptcy is an option that will not always be available.
It’s a fact of life that at some point you will experience money problems that lead to debt; we are not always to blame for the situation we find ourselves in. It’s not the end of the world even if you have a poor credit score; help with a bad credit loan is always available. Loans like this are available to help most people that require extra money and can be used just like a regular loan. By the way, having a poor credit score can be a result of your own actions, either accidental or deliberate. It could be that you missed a credit card payment due to an unforeseen situation. Nevertheless, you do have a chance to improve your financial status.
The money borrowed on a bad credit loan may be required to consolidate other loans or debts into a more affordable loan or cover the cost of an unexpected event. There are people who borrow money even when they do not need it because they want to repair their credit score. They use a loan that they can pay regularly, as a means to achieve this.
When borrowing money there is a secured option which will mean that more money can be borrowed, normally up to one hundred and fifty thousand dollars; the repayment term can be anywhere between five and twenty five years; these conditions do not apply to unsecured loans. However, if you take the unsecured loan route the maximum you will be able to lend will be dramatically reduced to 50,000 dollars and you will only have 10 years to pay it back.
The risk of defaulting is much lower with a secured loan as the finance company take a charge on your property which is also the reason they can arrange the loan at a preferential rate of interest. The benefits of an unsecured loan are that the home or other valuable item is not put at risk if the person defaults on the loan but as a consequence there is a higher rate of interest to pay each month.
Internet research into bad credit loan companies can even provide certain lenders who will take on applicants who have serious debt problems and previous court judgments against them. However, there aren’t many lenders giving this type of loan so if you want to get credit at a rate of interest which fits your pocket and has an acceptable time scale for repayments, you should opt for an online loan facility.
A person shouldn’t have too much difficulty in arranging a bad credit loan even if they have a previous adverse credit score and it may help improve your situation when you are at you lowest. If at all possible, select a company online, as the process will be quicker and the stresses behind the reason for the loan should fade away.
In particular for someone with debts and a low credit rating, this is a chance to start rebuilding your credibility. This opportunity should not be forgotten or wasted.
I think it is very important to start teaching your children how to save money, how to understand budgeting, how to understand credit and more…
Children are the most impressionable, and good financial habits should be one of the most important habits taught to children… and from the earliest ages possible.
Does anyone have any suggestions on literature for this subject ?
Mandrake
Is it more important to be “Debt Free” or “Financially Free” ?
Do you know the difference ? Do you care ? 
Ok, if you are a fan of this blog, you probably do care, and are very interested to know what these terms mean (if not already known or self-explanatory) and what the answer to that question is…
Ok, “Debt Free” this is usually referred to as when you have no revolving credit obligations such as Credit Cards or Personal Loans. Occasionally, having no mortgage and no car loan is also thrown in there too… but, since Mortgages and Car Loans are usually very low interest rates and thus are often considered “Good Debt”… most don’t require having these paid off to be “Debt Free”.
Financially Free is a completely different thing. You are considered Financially Free when you have enough PASSIVE INCOME (income that you dont have to work a job for) to pay all of your bills in perpetuity. In other words, you have enough money coming in from investment income, interest payments, etc. to pay all of your bills and more. Thus, you can quit working and you would still be able to live comfortably.
Is that just another way of saying “Retirement” ?
NO. Retirement is much different… Retirement usually has you drawing down a savings until you die or run through all the money.
Financial Freedom runs on the idea that you will never outlive your money.
So, which do you think is better ?
Mandrake
You guessed it… yesterday the DOW was down big, and today the DOW is up big…
Everyone is now convinced that the Banks are now completely out of the woods… well, I can’t predict the future, but I can tell you that we have no idea whether or not the credit crunch is over and we have no idea how long the subprime mess will continue to infect bottom lines…
Mandrake
The daily SEE SAW continues… yesterday we were up big… today we are down big…. down 293 points in one day… I think we are clearly in a BEAR MARKET. I think we are clearly in a recession.
I have heard that usually you dont know you are in a recession until you are pulling out of it… my guess is that this time around, people are going to know they are in one.
I see soup lines and suicides coming.
Sorry to be so grim, but if you were looking at what I am looking at… you would understand…
Mandrake