Apr 29
adminDebt Relief Debt, Good, Individual, Nation, Relief, What's
Debt relief is within your reach and you may only need a helping hand to get you there. It is needed for entire nations international debt, as well as on an individual basis for people who have acquired more debt than they can realistically repay in a timely manner. Debt relief is urgently required in Africa and the nations of Africa deserve a new commitment of resources from the United States of which debt relief is but one important part .
Africa’s debt is so large in comparison to the continent’s income that it cannot be repaid ($324 billion of which $203 billion is owed by sub-Saharan Africa excluding South Africa). It is a band-aid solution to a hemorrhaging problem. Rock star Bono’s recent statement equating debt relief to a “… journey of equality that took another step today, and broke free millions of people in some of the poorest countries from the bondage of immoral and unjust debts,”. It is a valuable tool, but it must be balanced against other policy instruments, such as direct development assistance. It is not always the right response to address a country’s development needs.
Debt relief is the aim of any debt consolidation company. Debt relief can be any consolidation program that provides freedom from debt or help in the process of elimination. Getting out of debt is a topic on a lot of consumers’ minds these days, and with good reason. American credit card debt in 2001 was $692 billion, triple the amount from 1989. Credit counsellings as a form of credit card debt relief is best for individuals who have the capacity to post regular payments but are otherwise negligent and undisciplined in handling their month-to-month finances. Credit card debt relief will not end all the debt hassles we have in life, but it will help. Credit card debt is the most common cause of small business failure we see today. If you want a successful business, do not carry a balance on interest charging credit cards. The best way to avoid needing debt relief is to not let your spending get out of control.
Apr 24
adminStudent Loans Bankruptcy, Loan, Student
Student Loans Aren’t Discharged by Bankruptcy
That’s the bad news. Due to bankruptcy reforms in 1998 and 2005, it’s almost impossible for the average person to discharge federal or private student loans through bankruptcy. You may be able to get help with your payments through a bankruptcy filing, but there are better options for repaying your student loans.
The Student Loan Bankruptcy Exception
As with all rules there is one exception: you can discharge a student loan in bankruptcy due to undue hardship. Undue hardship is defined as the permanent physical inability to work. You must prove in bankruptcy court that:
You’re physically unable to work You’re likely to be unable to work for most of the loan term You’ve made a good faith effort to repay the debt Paying it would prevent you, your spouse, and your dependents from maintaining a “minimal” standard of living.
If you believe you qualify under these guidelines, see an experienced bankruptcy lawyer for help filing an adversary proceeding as part of your bankruptcy case.
How Bankruptcy Can Help with Student Loans
Although your student loan can’t be discharged in bankruptcy, a bankruptcy court may be able to ease an overwhelming debt burden. Some courts may discharge a portion of your student loans, but this is rare and varies by court.
In most cases, the judge will incorporate your student loans into your debt repayment plan under Chapter 13 bankruptcy. Any balance remaining after the payment plan ends will still be due, but your other debts should be paid off by then.
What to Do if You’re Heading Toward Bankruptcy
If your total debts have reached an unsustainable level and you feel you must file for bankruptcy, don’t simply stop paying your student loans. Not only are student loans not dischargeable in bankruptcy, but also the federal government has the right to assess stiff penalties, seize tax refunds and other government assistance money, and garnish your wages.
Lenders want to help you avoid default. Contact them for help applying for a deferral, forbearance, or extended repayment plan before the situation gets worse than it already is.
Solutions for Student Loans You Don’t Owe
If a lender is demanding payment for a student loan you don’t think you owe, it’s best to resolve the situation before you wind up in bankruptcy court.
The most typical situation is a miscalculation of the actual loan balance, especially if the loan has changed lenders multiple times. If you think the lender is requesting more than you owe or hasn’t properly credited payments, write to them with your evidence. If the issue is not resolved, then a court can intervene to determine the amount you actually owe. A bankruptcy judge may also do this as part of a bankruptcy proceeding.
Your debt may be cancelled if a few situations apply:
Situation 1: Your school closed before you completed your education and you couldn’t complete it elsewhere. You don’t qualify if you voluntarily withdrew before the school closed. You may be entitled to a loan reduction if you voluntarily withdrew and the school improperly withheld any remaining student loan funds.
Situation 2: Your school or another party signed the promissory note in your name without your approval or the school falsely certified you as eligible for a student loan when you were not.
Situation 3: You were forced to withdraw due to a disability that developed while you were in school, or that certifiably worsened after you accepted the loan.
For all three situations, it’s best to contact the lender or the federal student loan program for assistance in resolving your unowed debts. Although a bankruptcy court can sort it out for you, other solutions are simpler and better for your financial future.
Student Loan Cancellation Programs
Several federal and state agencies offer programs to help you cancel or reduce all or a portion of your student loan debt without filing for bankruptcy. Most programs involve teaching, nursing, or military service.
In most cases, bankruptcy won’t erase your student loans. Although bankruptcy is still a viable solution for desperate financial situations, it’s best for your future financial well being to avoid it. Contact your lenders as soon as a problem develops in order to avoid worse financial repercussions.
Source: http://www.bills.com/student-loan-bankruptcy/
Apr 21
adminFinancing Advantages, Buying, Financing, Owner
Also known as seller financing, owner financing is growing in popularity in today’s economy. With the credit markets slowing down and people finding it harder and harder to borrow, owner financing is looking better and better as an alternative to traditional financing. Owner financing is when the seller of the property basically agrees to take payments rather than a lump sum. Here are a few things that need to happen in order for the owner to be able to finance your deal:
The owner needs to have considerable equity in the property. The owner will usually have their own mortgage they will need to pay back in full when they sell the property to you. If they don’t have a whole lot of equity, they usually can’t offer to finance a whole lot of the deal. The best scenario is an older owner that is close to retirement. Odds are that they have a good amount of equity or even own the property free and clear. They are looking to retire and just want a steady cash flow rather than a lump sum when they sell the place. The owner should have a desire to accept owner financing. If the seller wants to roll the funds over into another property or needs the lump sum of cash for one reason or another, they probably won’t want to take on very much seller financing. The terms need to be right for both parties. The interest rate, duration and repayment structure need to be acceptable for both parties. This usually requires a good deal of negotiation.
If you have all your ducks in a row and seller financing seems like it might be a possibility, here are some of the benefits to consider if you are thinking about locking in owner financing:
You might not have to get traditional financing. This depends on how much the owner is willing to finance. If they are willing to finance just a little bit, this might help you lower your down payment or help you qualify for traditional financing, but won’t completely eliminate traditional financing unless you pay the remaining amount due as a down payment. You could get more flexible terms than you would on a standard mortgage. You have the power of negotiating so that both the buyer and the seller walk away with a fair deal. You typically can’t do this with a traditional bank. The seller is still somewhat on the hook for the property. You know that you aren’t getting totally ripped off, because the seller still hasn’t received all their money. There is a possibility that you could pay a little bit of a premium for the deal. If they end up totally screwing you, and the property completely falls apart in a few years and you let it fall into foreclosure, the seller only stands to get the property back. The seller isn’t going to want to lend to you using a bum property as collateral.
If owner financing seems like it would work for you, there is no reason to start looking for properties for sale with owner financing. Even if a property isn’t advertised as offering owner financing, you may be able to talk with any seller and see if they are willing to negotiate on terms.
Apr 12
adminDebt Relief Debt, Done, Getting, Help, Relief, Yourself
The average person who consolidates debts also winds up in debt again. The only way to get out of debt forever is to change the way you view money. If you had no debt prior to a major financial downturn, then you can get debt relief help through debt consolidation, debt settlement, credit counseling, or bankruptcy.
If your debt is a result of overspending, you will need to make changes to your spending habits.
Determine How You Got Into Debt
Debt happens to everyone at some point, and it isn’t necessarily bad. A mortgage or student loan is generally considered good debt because it’s a real asset or an investment in your future.
Bad debts from credit cards, medical bills, and personal loans are the kinds you should worry about. The four main causes of bad debt are:
Family death or major medical emergency/illness
Divorce
Job loss
Overspending
If you had no debt prior to a major financial downturn, then you can get debt relief help through debt consolidation, debt settlement, credit counseling, or bankruptcy.
If your debt is a result of overspending, you will need to make changes to your spending habits.
Find Your Spending Triggers
Asking yourself why you spend more than you make is the first step to debt relief. Do you buy necessities like food, shelter, and reasonable transportation, or do you buy things you want at the moment like a new CD or an expensive dinner?
If you make enough to live on, but overspend on things you want, you can only find permanent debt relief by uncovering your spending triggers. Common reasons for overspending are:
Maintaining an image or lifestyle
Instant gratification
Feeling of power or self-worth
Avoiding feeling poor or deprived
Stress relief (Retail Therapy)
Credit doesn’t feel like cash
To pinpoint your spending triggers, keep a spending journal for one month. Record everything you spend, what you bought, how you felt at the time, and why you wanted it. At the end of the month, review your list. You will be able to see your triggers in the list.
For example: “$1.00, lottery ticket, felt excited and hopeful, winning would change my life.” The trigger is spending to improve self-worth or to avoid feeling poor.
“$43.54, new red heels, felt like my boss is pushing too hard, wanted to treat myself.” The trigger is stress relief or wanting to feel powerful.
Change Your Money Views
Changing your money views is the third debt relief step. Money itself is neither good nor bad. The trouble comes from how you feel about money. Spending makes you feel good about yourself, satisfies a desire, or relieves your stress at the moment, but then you feel worse when the bill comes or you can’t pay your other bills.
Emotional Spending
If you’re an emotional over spender or spend because you have the money or it’s coming soon, it’s time to cut yourself off. Spend as little money as possible for one month. Don’t shop, go out to dinner, or go places where you can spend money. Bring your lunch to work with you to save money.
When you must spend money for things like groceries or gas, take only the amount of cash you’ll need. The rest of the time, carry only $20 in case of a true emergency.
At the end of the month, look at how much more money you have than you usually would. How good does that feel? If you saved enough to pay down some debt, how much better does that make you feel?
Credit Spending
If you overspend because credit doesn’t feel like cash, spend only cash for one month. Remove the checks and credit cards from your wallet. Once you see how much money you’re actually handing over, you’ll spend less.
Make the Change Permanent
Permanent change is the final debt relief step. At the end of the month, keep going. Allow yourself to buy the things you need, but ask yourself if you’re buying it to feel better or if it’s a necessity. Think about a purchase for a day or two, and then buy it if you really need it.
Once you change your money views, you can find additional debt relief help from a credit counseling service, consolidate credit cards, or create your own credit card debt relief system to help you get out of debt and stay there.
More such articles can be found at http://www.bills.com/
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