Personal finances management for when you are broke, debt consolidation home equity loans

It can be very difficult to budget when you are under financial stress. The following tips are aimed to us to budget when lacking a bit of cash.

Avoid getting evicted

It is very important to address immediate issues such as rental or mortgage payments.
if you are short on cash to pay for these bills then take a look at other bills you have to pay, such as electricity and mobile phone, and try to call the other companies and delay the payment of those bills in order to pay for your mortgage or rent.

Review your credit cards

Take a look at your credit cards and their due dates. A few months ago I was paying my credit card every time I got paid and I couldn’t figure out why I was short of cash before the next pay came. On top of that I couldn’t figure out why my credit card debt was not going down.

Turns out that I was putting too much cash into the credit cards and when I ran out of cash at the end of the pay period I used the credit cards again and the debt was never paid off and I was always running out of cash.

Now that was stupid. Take a look at the due dates of your credit cards and ensure that they are paid on time but, depending upon your circumstances you may be able to reschedule the dates you pay your credit cards in order to free up some cash for other obligations.

Just make sure you pay at least the minimum amount by the due date.

An couple of options to help you to pay off your credit card debt is debt consolidation and home equity loans.

With debt consolidation you can consolidate all of your unsecured debts into one payment that should be easier to afford.

If you have enough home equity you can also look at taking that equity out and use it to pay off your credit card debts. This is often a good idea because mortgage interest rates are much lower then credit card rates.

There are a few options to help you, do your research and take action.

Your Financial Independence Compilation, investing, personal finances and more

Welcome to the November 22, 2010 edition of financial independence.

Your Financial Independence Articles

How to make money blogging videos

Best tips for last minute Christmas shopping. It is beginning to feel a lot like Christmas! Shopping centres a decorated, Santa is around to take photos with the children, shops are playing carols and more…
I do think it is a little early to have all of that. I’d prefer they started at the beginning of December. But hey, it is not about the real meaning of Christmas, it is all about money. Oh, sorry about that, my cynicism is starting to show.

A few habits that are keeping you in debt. There are certain habits that we may have that unconsciously prevent us from paying off our debt and getting ahead.
Following are seven habits that may be holding us back from paying off debt and getting back into the black. Remember debt matters, it is important to get ahead in order to turbo charge you journey into financial independence.

Save you money shopping online. Online retailers are able to offer you more discounts than the normal shop because they don’t have the overheads of paying for rent and other expenses related to having a physical building.

How to turn income into wealth. The secret to financial independence is to turn your income into wealth. In other words, in order to be wealthy you need to take what you earn and make it work for you instead of you constantly working for money.

Reader's Articles

Rosa Wilson presents Change of Address: 10 Ways to Save Money On Your Grocery Bill posted at Change of Address.

Rosetta presents Interest Rates for IRA posted at Stock Tips, saying, "Finding the best IRA interest rates available today is a good way to protect your retirement portfolio. Learn how to calculate the interest rates for IRA to help get you better returns."

debt kid presents Are You Too Comfortable? posted at DebtKid.

Mark Aucamp presents Will the Buy-to-let market damage the housing market? posted at Money Saving Tips, Consumer Finance, Expert, Advice and Help | Talk Money Blog, saying, "Interesting view point"

Sun presents Treasure Hunt for Outing Discounts posted at The Sun’s Financial Diary.

Tim Chen presents WalMart MoneyCard vs Western Union MoneyWise: Prepaid Debit Card Showdown posted at NerdWallet Blog - Credit Card Watch, saying, "You’ve probably seen the WalMart MoneyCard at your local WalMart, offered in partnership with Green Dot Financial. While it’s definitely one of the better deals out there, it’s not the best deal."

FIRE Getters presents Tools - FireSafe Your Personal Finance Documents! posted at FIRE Finance, saying, "It's a nice idea to keep our important personal finance stuff in such a way that we can grab hold of it and leave at a moment's notice. In case we cannot do so, it'd be great to have a back-up at a safe place with an easy access in case of natural calamities or unforeseen disasters ...."

Steve Smith presents Several Reasons Why You Should Learn Currency Trading posted at Forex Trading System Central, saying, "Trading currencies can produce income that you need to support yourself and your family in these difficult times."

Cynthia Merritt presents 10 Things College Students Should Know About Credit Cards posted at College Crunch.

Jessica Bosari presents Investing for Your Retirement: Is it Time to Get Back in the Game? | billeater.com posted at Billeater, saying, "Is it time to start investing again?"

Jane Sanders presents How to Get Debt Collectors to Leave You Alone posted at Debt Management.

Alexander Peter presents Do Students Need A UTR Number? posted at UTR.org.uk, saying, "If you are self employed student you may need to apply for a UTR number to pay your taxes."

Charles Chua C K presents Effective Personal Budget for Financial Freedom posted at All About Living with Life.

David de Souza presents 4 Things Everyone Should Know About Inheritance Tax posted at UK Tax Blog, saying, "Guide to inheritance tax, how it works and what tax allowances you can claim"

Jessica Bosari presents Five Financial Problems Women Face and How to Manage Them | billeater.com posted at Billeater, saying, "Women's financial concerns"

Arjun Rudra presents Discussing Investing In Income Producing Assets Like Bonds And Dividend Stocks with Benoit Poliquin, CFA of Pallas Athena posted at Investing Thesis, saying, "Discussing income investing using preferred shares and dividend stocks."

Alex Deeds presents Top 50 Blogs for Yard Sale Aficionados posted at Associate Degree, saying, "If you’re wondering what people did before eBay, the short answer is yard sales. The practice of putting ones old or unused items up for sale to the public can be found in just about every neighborhood on any weekend of the year."

Stephen Kavita presents Personal Finance Tips That Ensure You Generate Wealth And Achieve Financial Freedom posted at Self Improvement Tips, saying, "Financial discipline and delayed gratification can be achieved through a system of rewards and punishments to yourself."

Mike Piper presents International Bond ETFs and Funds: Should You Own Them? posted at The Oblivious Investor, saying, "Does it make sense for U.S. investors to own international bond ETFs or funds?"

Jeff Weber presents Capital One Venture Card Review posted at Smart Balance Transfers, saying, "The Capital One Venture card is good for consumers who don't carry credit card debt from month to month, but not the best option for people who don't spend heavily and pay their bills in full every month."

CreditShout Kevin presents How To Develop a Customized Debt Payoff Plan posted at CreditShout.

BWL presents Amazon Subscribe & Save: Save Hundreds & Automate Your Shopping posted at Christian Personal Finance, saying, "A look at a little known subscription program that can help you save money on items you buy each month and simplify your life in the process..."

Robert Alan presents 5 Secrets a Credit Card Company Would Never Reveal posted at Credit Cards Blog | CreditCardAssist.com, saying, "Here are 5 secrets credit card companies know but wouldn’t likely reveal to it’s customers"

Tom Tessin presents 10 Identity Theft Facts to Know posted at FSC Blog, saying, "Identity theft effects a lot of us, and you need to learn on how to fight it, as well as know how many people become a victim."

Michael Pruser presents Ink Bold℠ with Ultimate Rewards℠ – $100 Bonus Cash Back posted at The Dough Roller, saying, "thanks for the inclusion"

Michael presents New Jersey Ranks Fourth for Innovative Companies posted at Consumerism Commentary, saying, "thanks for the consideration"

Odysseas presents Recovering Your Credit After the Great Recession posted at Wallet Blog, saying, "Hey, I think your readers will enjoy our submission this week because it shows people one main option for improving their bad credit. You are not alone if you are suffering from bad credit. Luckily, we have one solution that can help."

freefrombroke presents Ways To Increase and Improve Your Credit Score Without a Credit Card posted at Free From Broke, saying, "Fixing credit card habits isn't the only way to build up your credit score. There are also a couple of ways to build credit without a credit card."

Jane Chin presents Wealth Building 101 » Wealth Building is about Mastering Impulses posted at Wealth Building 101, saying, "Wealth building is one of those things where You get a lot of people telling you how you “should” do it, how they would do it, why you’re doing it wrong and you should do what they say, which of course, would be “right”."

Silicon Valley Blogger presents American Express Delta Credit Cards For Flight & Miles Rewards posted at The Digerati Life, saying, "Here's a review of a credit card for those who travel often!"

Judy Blackburn presents What Sets Christian Debt Relief Apart From Others posted at Debt Consolidation, saying, "Is there a difference between Christian debt relief and the run-of-the-mill debt relief service."

PT presents Which Debt Do You Pay Down First? posted at Prime Time Money.

Youdondour torres presents Quick same day advance loans posted at Quick and easy payday loan!.

Youdondour torres presents Advance cash loans posted at Pay Day Loans For You Today!.

Youdondour torres presents Bad credit payday loans, apply now! posted at Quick and easy payday loan!.
That concludes this edition. Submit your blog article to the next edition of financial independence using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati Tags: financial independence,personal finances,financial advice

Top 10 money tips to become debt free

 

One of the purposes of this blog is to help myself to learn more about money in order to help me to become debt free and, hopefully, financially independent.

Being debt free is almost a dream for me at moment, with the power of compounding interest working against me I keep on paying my credit card debt every month and it doesn’t seem to go down no matter what I do.

This post is a result of my own research around the internet on 10 strategies to help me to become debt free.

#1 Stop using the credit card

If you are liking me you have a bit of credit card debt hanging around. No matter what you do you don’t seem to get ahead those monthly payments. Every month interest is credited back into the account and part of your effort to reduce the balance on the card is absorbed by the interest.

The first step towards getting rid of credit card debt and being debt free is to stop using those cards.

Put them away, cut them up if necessary, do whatever it takes for you to stop using those cards.

Some of us are in a situation that you use your credit card to pay for your monthly bills. This means that you probably don’t have enough cash flow to pay for your living expenses and then you use the credit card to supplement your income.

If you are in the situation above then you need to get on top of your cash flow and ensure that you spend less than you earn. Keep reading to find out how to get on top of you cash flow.

The following article discusses how credit card debt can be avoided:

• Credit card debt - how to avoid it

#2 Get on top of your cash flow by spending less than you earn

In order to get rid of your debt you need a debt management plan. You need to take a hard look at your cash flow and come up with a debt management plan to ensure that you spend less than what you earn.

If you continue to spend more than what you earn  you will never be able to get out of debt, it is as simple as debt.

The are two ways to take control of your cash flow, cutting the expenses or increasing your income. The next tip relates to reducing your expenses.

With regards to increasing your income, I believe that the best way to impact your financial life in the long term is to have streams of passive income. The tip #4 relates to passive income.

To learn more about the importance of cash flow in personal finances have a look at the following articles:

• Managing your cash flow to pay off debt
• Basic accounting principles for personal finances

#3 Reduce your expenses

The key to financial independence is to manage your cash flow. You need to ensure that you spend less than what you earn. The first step to achieve a positive cash flow is to reduce your expenses.

If you don’t have a budget it is a good idea to create one. Once you have it you can have a look at your expenses item by item and find out where you can save.

Take a look at my article about creating a budget, it contains detailed, step by step instruction on how to setup and use a budget to help you to manage your personal finances:

• How to create a budget and stick to it!

#4 Passive income, the key to financial success

Saving alone is not enough to have a positive cash flow. In order to take control of your finances you need to increase your income. My favourite way to increase income is also the hardest one, passive income.

Passive income is income that you earn without working for it. Once the passive income stream is step all you need to so is to sit back and watch the money come in.

Passive income to me is the key to achieving financial independence.

The following articles will helps you to understand passive income and will provide you with some tips on how to generate passive income:

• How to generate passive income
• The most important money advice

#5 Debt consolidation

Debt consolidation is another debt management strategy that you can employ to get rid of debt. You do have to be careful before consolidating your debt though.

When you are pressured by debt you may get emotional and look for easy ways to get out of debt. Organisations that offer debt consolidation loans are very clever in how they offer their products.  They present the information in such a way that it is very convincing and attractive if you a buried in debt.

Before consolidating your debt take a hard look at how much interest you are paying on your debt and compare it with the interest you will pay if you get the new loan (don’t forget to include fees in your calculation).

I have often come across debt consolidation loans with interest rates so high that it would not be advantageous to consolidate my debt.

Do research debt consolidation loan, do your homework and make sure the numbers make sense before you sign any papers.

#6 Home equity debt consolidation. Refinance you mortgage to pay off the debt

Refinancing your mortgage to pay off your unsecured debt makes sense. Interest rates on mortgages are usually much lower than the interest rates you pay on unsecured debts such as credit card.

If you do have enough equity in your home loan consider refinancing your mortgage and use some of your equity to pay off your unsecured debt.

Don’t forget that once you refinance your property and take the money, your mortgage payments will increase. Make sure that you plan ahead so you can afford your mortgage payments in the short and long terms.

#7 EBay is your friend

Take a good look around your house, you can probably find many items laying around that you don’t need. Consider selling them on eBay and use the profits to reduce your debt, every little bit helps

#8 Get an extra job

The fastest way to increase your income is to get a second job. It is very hard to find sustainable, alternative sources of income. If you do want to fast track your debt payments then consider getting a second job to boost your income and pay off the debt a little faster

#9 Make money through blogging

Blogging can be a very enjoyable way of increasing your income. These days you don’t need to be a computer programmer to have your own blog.

I did not write a single line of computer code to have this blog up and running and although it does not generate a significant income at the moment it is helping me to learn more about personal finances and, with the benefit of time, has the potential to put some money in my pocket.

Blogging can be fun because you can choose whatever topic you like. It is fun to write about the things you love. It is a way of making a little income doing doing something that you like.

I will finish this section with a little warning. It takes time and persistence to get a good amount of traffic into your blog so if you decide to start one make sure you stay motivated and stick with it.

#10 Setting goals

Getting rid of debt can be  very long process during which you may loose focus and motivation.

Goal setting is a strategy that can help you to remain motivated as you achieve small goals that one day will help you to get rid of your debt.

The following links refer to some very interesting articles regarding goal setting:

•  The importance of goal setting
• Smart Financial Goal Setting

Stay motivated and take action

One of the most important tips I can give you is to stay motivated.

Being in debt is very frustrating, you work very hard and you you sometimes have the feeling that you are not getting anywhere. It is very important to remain motivated, focus on your goals and believe that you can achieve your objectives.

One of the most influential books to me, and in fact the book that started me on the road to financial independence, is the The Science of Getting Rich. one of the most valuable advices I got from the book was to believe in myself, focus on my goals and to remain motivated.

You can get rid of your debt if you remain motivated and take action. Stop taking about the things you want to do and do something. You are the only one that can do something to take control of your personal finances.

Technorati Tags: debt management,credt card debt,blogging,passive income

Financial Independence Compilation

Welcome to the October 24, 2010 edition of financial independence.

Your Financial Independence Articles

Teach your child how to make make money - Want your child to be a millionaire? All parents want the best for their children so why not teach them how to manage and  make money?

Here are a few tips to help you to raise a millionaire.

Making money through blogging – developing highly profitable topics using Google AdWords - If you are into blogging you know that it can be very difficult to make money. You’ve heard it many times that the secret is on attracting the crowds. There is more to it, you also have to ensure that you are choosing topics that are highly profitable.

There are many articles on the web that tell you how to attract traffic into your site. Most of them say that the more traffic you get the more chances you have of making money either through advertising or via selling some sort of product. It is true, the more people come to your site the more chances you have of making money.

Thriving 30 million dollars business from a school project. Find out how she did it -  At 16 years of age, Lindsay Phillips had an idea to create flip-flops with straps that could be changed during a school project. It is project that this year her company will bring $30 million in revenue says AOLSmallbusiness.

The idea is very simple, you buy one pair of flip flops and renew their appearance with new straps. They look new and different every time and can be worn with different clothes depending on the occasion.

Her company is now producing other products such as shopping bags, scarves and sandals for children.

How to make some extra money - Do you need some extra cash. I think we can do with a little extra cash. The following sections describe some of the strategies you can use to make some extra cash.

Reader’s Sponsored Articles

Rick- presents Best IRA Rates posted at Stock Tips, saying, "To get the best IRA rates, portfolio diversification is necessary. Find out how to get the best IRA rates and IRA returns today."

Youdondour torres presents 1 HOUR Payday loan for fast cash now! posted at Pay Day Loans For You Today!.

Youdondour torres presents Payday advance for those with poor credit! posted at Quick and easy payday loan!.

Youdondour torres presents A Cash advance with no credit check! posted at Quick and easy payday loan!.

Mike Piper presents Types of Annuities: Annuity Definitions posted at The Oblivious Investor, saying, "What are the differences between the various types of annuities? Which ones are useful, and which ones are a raw deal?"

Youdondour torres presents 1 hour paday advance for quick financial assistance! posted at Pay Day Loans For You Today!.

Youdondour torres presents Quick ways to get cash now! posted at Quick and easy payday loan!.

ABConseil presents THE AMAZING WIDGET�S REVIEW :AutoBlog posted at AutoBlog, saying, "TheAmazingWidget.com claims to offer a breakthrough new way to generate �semi autopilot� traffic and commissions, with the launch of their new Software and accompanying Blueprint. Further, they claim to offer a dead simple way for virtually anybody to begin placing their oddly named �Amazing Widgets� in hundreds of free spots around the web, as a foolproof way to make money on autopilot once in place."

BudgetSnob presents Retire Rich ? Let Everyone Else Work posted at Budget Snob.

BudgetSnob presents Close Your Budget Gap posted at Budget Snob.

Robert Alan presents How Do I Make Bad Marks on My Credit Go Away? posted at Credit Card Assist, saying, "How to make bad marks on your credit go away in 6 simple steps."

CreditShout Kevin presents How to Deal with Credit Card Customer Support posted at CreditShout.

Victor del Rosal presents A social experiment: your finances solved posted at Internet Empire Formula, saying, "This article poses a hypothetic questions: if your financial life was completely resolved, forever, would you stop working? It analyzes the true meaning of work."

Sam presents New !! Is an Annuity Insurance Retirement Plan Best for You? Five Essential Points posted at Surfer Sam and Friends, saying, "Thanks for including my article on annuity insurance retirement plans. Here's an excerpt... Are you afraid that you will outlive your money? Are you worried that you might lose your savings in the stock market and face retirement broke? The past few years in the stock markets have upset the retirement plans of many investors. Today, people are living longer than ever. Seniors and baby boomers are concerned that they have enough money to support them during a long life. Annuities are an investment option for these people. Annuities guarantee that you won't outlive your income, no matter if you live 100 years or longer. Furthermore, with an annuity you do not risk losing the nest egg you have accumulated."

Jeff Weber presents Avoid Balance Transfer Mistakes posted at Smart Balance Transfers, saying, "Avoiding these three balance transfer mistakes will help you save the most money and avoid hurting your credit score."

nissim ziv presents How to Present Yourself in an Interview and Impress the Interviewer? posted at Job Interview Guide, saying, "When you are in the process of preparing yourself for your job interview, one of key prep steps is practicing your interviewing performance and reshaping your presentation level in order to create the best positive impression on the interviewer."

Madeleine Begun Kane presents Pigheaded Limerick posted at Mad Kane's Humor Blog.

Alexander Peter presents Catering Trailer Insurance posted at Catering Trailer Blog, saying, "If you are thinking of starting your business one important thing to consider is insurance. This article provides some advice for catering trailer owners."

David de Souza presents 5 Steps To Getting A Tax Rebate posted at UK Tax Blog, saying, "Are you due a tax rebate? Our guide will help you claim your tax refund"

FMF presents A New Rule-of-Thumb for Renting versus Buying? posted at Free Money Finance, saying, "Does this "new" rule for renting versus buying work?"

Marvin Grossman presents That's gross! Why home insurance won't pay for disgusting problems posted at Insure.Com Home Insurance Articles, saying, "Rats, mold, bed bugs? Here's why home insurance won't pay, and some exceptions to the rules."

Jim Nariel presents How you can Build a Successful Work from Home Business Now posted at Point and Click Program Revealed, saying, "Blog post on how to start a successful on line business from home"

Joanaa Tiger presents Top 10 Financial Blogs for College Students posted at Criminal Justice Degrees Guide.

BWL presents 4 Habits of Millionaires posted at Christian Personal Finance, saying, "This article looks at how millionaires really spend their money..."

Arjun Rudra presents Statistical Arbitrage Pairs Trading With Michael Kapler of SciVest Capital Management posted at Investing Thesis, saying, "While you may have heard of simple pairs trading which involves going long one security and going short another, it’s the statistical arbitrage aspect that you’ll be introduced to today."

FIRE Getters presents Tax FREE Money Market Mutual Funds! posted at FIRE Finance, saying, "Most astute investors are aware of municipal mutual funds also known as MUNIs. These funds invest in term debts issued by various state and local governments. In general dividends and gains from muni funds are exempt from federal as well as state taxes."

Jason @ Redeeming Riches presents 8 Financial Myths to Discuss with Your Kids posted at Redeeming Riches, saying, "Teaching kids about money can be a tough task to tackle, especially with these myths."

Barb Friedberg presents Can the Average Joe/Jane Expect Price Changes When the Dollar Fluctuates? posted at Barbara Friedberg Personal Finance, saying, "Understand the relationship between US dollar and how it MIGHT impact future prices. Use this knowledge to help you toward financial independence."

freefrombroke presents What Is A Reverse Mortgage Loan? posted at Free From Broke, saying, "What a reverse mortgage loan is and who it is for."

Joe Morgan presents Living on a Single Income: 7 Years and Counting. posted at Simple Debt-Free Finance, saying, "Some tips and lessons from 7 years of living on a single income with a wonderful wife and 3 children. It's not easy, but it's not impossible either."

PT presents Meeting with a Fee-Only Certified Financial Planner, Part 2: Planning Session and Retirement Recommendations posted at Prime Time Money.

That concludes this edition. Submit your blog article to the next edition of financial independence using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati Tags: make money,blogging,business,mortgage,debt-free,financial independence money blog carnival

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Debt consolidation

Debt consolidation means taking out one loan to pay off others. One of the main benefits of taking out a debt consolidation loan is sometimes lower interest rate and the convenience of paying off only one loan.

Debt consolidation is often advised when someone is paying credit card debt. More often than not, credit cards carry a much higher interest rate than even unsecured loans. in this case the total interest and the total cash flow paid towards the debt is lower, allowing the debt to be paid off sooner because it incurs less interest.

There is however one major pitfall with regards to debt consolidation to pay off credit card debt. The risk of taking out the debt consolidation loan and continue to incur credit card debt.

Nowadays it is very easy to get a credit card. More often than not, banks don't perform the appropriate checks to ensure that the person applying for the credit card can afford to pay it off.

I personally believe that it is the responsibility of each person applying for a loan or credit card to ensure that he/she can afford the repayments. The banks should perform the appropriate checks, nevertheless the individual is responsible for his own actions and in the end will be held accountable to pay off the debt.