Tips for Managing and Lowering Your Debt

Would you not want to lower your debt? A lot of people nowadays dream of being financially free and eliminate their debts. Surely, living a life free from credit card bills and outstanding debts is very tempting. So tempting that you will do everything to once and for all settle your debts and start enjoying a free life wherein you can buy anything that you want, anytime that you want.

People who are facing huge amounts of debts need not worry and mull over their situation for there are several things that they can do to settle their accounts with their creditors. Here are several tips for debt management that you can do:

Plan ahead of time

Before you receive your salary for the month, you can create a budget that you will follow. List down all the things that you will need and buy with your money that are needed in the household such as groceries, food, gas, medicines, and many others. Create a separate list also for your payables such as credit card bills, electric and water bills, and medical insurance charges. This will enable you to properly allocate your salary and prevent unwanted expenses on your part.

Have a backup fund

Together with your budget plan, also create an emergency fund plan. Place a small percentage of your salary in a bank account so that if you are faced in a tragedy or an important event, you have extra money to spare. And thus, will prevent you from using your credit cards.

Moreover, having an emergency fund will further motivate you to strive and do your best to save money because once you got the hang of saving; it becomes easier and almost like a habit in the long run.

Keep track of your spending

Having spending tracker will help you see how your financial related activities look like. For example, this will help you determine which aspect of your life you should save money. If you are fond of dining out a few nights a week with friends, then you can cut on those. If you think that your car gas spending is too high, then maybe there are some errands that you can go to by foot without using your vehicle at all.

Simple things like that can help you lower your debt. Even the small act of paying more than your minimum amount due can go a long way because it will help you eliminate your debts faster and more efficient.

Is transforming debt into wealth easy?

If anyone tells you that transforming debt into wealth easy is possible, it is time to stop seeking their financial advice. It is important for you to clear credit card debt first and foremost as most credit card companies charge high interest rates. And with missed or minimum payments made, you often end up paying far more than you bargained for. If you truly want to get out of credit card debt you need to take some dramatic steps. The first step involves shredding your credit cards into bits. The next requires you to create a game plan for how you intend to become debt free.

Now that you have ensured that you can’t add to your credit card debt, the next step involves a budget your expenses. You may decide to use a program to help you or decide to seek the assistance of a financial advisor. To bring down your debt you need to reduce your expenses and use the extra money to pay off your debts. If you have several loans, then focus first on the one with higher rate of interest. It is important to clear this off first so that you don’t end up paying far more than you need to. If you find it difficult to deal with creditors, you can contact a debt consolidation company. Such a company will charge you for its service but it will also help you deal with your debts in an organized manner. Instead of paying off several debts you would have to make a single payment. Furthermore, you will not need to deal with unsavory creditors.

Once you slowly gain control of your debt situation you will also gain the experience and understanding of how credit needs to be used. With your budget in place you will soon have adequate money for additional purchases without having to depend on credit or loans. Your credit rating will also improve and you will receive better rates of interest on loans and mortgages.

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Your Ultimate Guide To Chapter 7 Information

Serious heed should be given when making a bankruptcy claim as there is so much to consider. Not least of those considerations is which type of bankruptcy that one should apply for. The main two types of bankruptcy claim are Chapter 7 and Chapter 13 but for the purposes of this article I am going to focus solely on Chapter 7 information.

Essentially, a Chapter 7 bankruptcy is a means of liquidating most if not all of one’s debts. The bankruptcy law states that an individual must apply for a means test to see if he/she will qualify to make a bankruptcy claim under Chapter 7. The means test itself centers round one’s mean income for a six month period in advance of making a claim. Depending on the outcome of this means test, one will either qualify or will have to be further assessed to determine suitability to claim. Generally, if their mean monthly income is less than the state average the individual may be considered to file a bankruptcy petition under Chapter 7. If not, they will be further assessed.

The means test is not the only factor that determines one’s ability to apply. If the individual has made a previous application for bankruptcy, they must have complied with the bankruptcy courts terms and have been present at the court when required. Failure to have been present annuls one’s ‘right’ to apply for a Chapter 7 bankruptcy. Another very important factor is that the applicant must have attended a credit counseling course prior to filing bankruptcy. Only when all of these terms have been satisfied will the Chapter 7 bankruptcy petition proceed.

Unlike a Chapter 13 bankruptcy where a structured repayment plan is drawn up in order to eventually clear the debt(s) this does not happen with a Chapter 7 bankruptcy. Most, if not all of one’s debts will be liquidated – any assets that are considered as being non-exempt (you are not allowed to keep) will be sold and the proceeds distributed among one’s creditors. It will be the role of the trustee who has been appointed by the bankruptcy court to take charge of this.

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Debt Write Off is Only The Beginning

Companies incur a particular expense known as a debt write off.  This expense is incurred when the company gives up any hope of recovering monies owed to them by another company or individual.  Basically, the company is telling the IRS that the prior reported income is no longer income as the money was not collected.  Commonly from many people, this is perceived as a tax reduction or break resulting from the unpaid sale, however there is more to the reality of it all.  It begins with a loss on the materials and time that was involved with the product sold.

If you are unable to pay a debt in any situation, at least avoid the typically misconceptions that are bolstered by settlement attorneys.  Their tactic is claiming the suit against you and the tax deduction is more valuable to the client than accepting any settlement.  Basically this is only a threat, as the tax break can still be taken on the difference from a new settlement and what was previously owed.  Getting full recovery is the most they can obtain with a full write off, and nothing is the least the collector can get, there is nothing in-between do not let them lead you to believe otherwise.

When you find yourself in a desperate situation, it is difficult to work with settlement attorneys.  Wanting their fees up-front the defense attorney convinces you the outcome for you will be positive, while pressure is non-stop from the collector’s law firm.  Your best hope to safely deal with all the parties involved, is by speaking intelligently through the ability to understand the terminology and laws surrounding your situations such as the debt write off clause.  As you deal with your unfortunate situation the ability to add to any conversation with knowledge and understanding of the background facts will absolutely prevent typical blatant abuses by the parties who normally have the best hand, as well as realistic outcomes being discussed.

Get the Biggest Refund with QuickTax

QuickTax has been around for more than 11 years, so of course they are very experienced in maximizing tax returns. They are so confident, that they even offer a full money back guarantee if anyone else can get you a larger refund. This guarantee combined with all the other tools QuickTax uses will ensure you the maximum refund while allowing you to rest assured you get the maximum refund.

QuickTax takes advantage of an easy to understand software interface for users which has been designed with the expertise of tax analysts and experts to cover every possible angle on your refund without becoming too complicated in the process. By using the A-to-Z List of Deductions to go through every single one of the 400 deductions available to Canadians, the QuickTax program exhaustively covers all possible methods to gain as much money that you qualify for as possible. If any deductions are possibly missed, QuickTax will also run a check to catch it.

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Even the more complicated tax returns such as those involving marriage, divorce, the purchase or sale of a house, and mutual fund shares can be taken care of by QuickTax. By using QuickTax’s comprehensive programs you can be sure that every potential aspect of your tax situation will be taken full advantage of.

QuickTax is so sure that no other company will be able to get you a larger rebate, and you will get 100% of your money refunded to you if it happens. This is a guarantee that has made QuickTax the #1 selling tax program in Canada.

By combining the expertise of tax analysts with the simple interface of QuickTax’s software, QuickTax has provided the ideal setting for getting you the most for your money this tax season. QuickTax is the best choice for your taxes if you want the largest refund possible.