In order to be in a relationship you have to first start out dating someone. This means in some way shape or form you have to meet them. Meeting someone to date can happen by knowing someone who hooks you up on a date, or it could be by going through a dating service, there are so many ways to meet possible dates. When you are dating you might want to use the weight loss product Acceletrim so you can be lean and healthy for your date. The first date might not be that serious and could be very open and relaxed. If the two of you like each other then you will go out on more dates, and sooner or later you can meet your new partners parents. What is it usually like on the first time? It is usually pretty awkward just because you don’t know what they are going to be like. Are they going to be happy and friendly or look at you like a weirdo? Hopefully they will take you in with loving arms and make you feel like you are part of the family, and this is how it turns out a lot of the times. It is important on what you do for the first impression when you meet your partners parents, gifts can help, such as some flowers or a house-warming gift. Don’t get too nervous and be yourself because if the relationship works out between you and your new partner you want to make sure that you can be yourself around your new in-laws, you will be spending a lot of time with them in the future.
Dating and the First Time You Meet Your Partner’s Parents
Debt Consolidation - Consolidate Your Student Loans Now!
The Federal student loan program has benefited thousands of college students in the forty years since it was introduced. Interest rates for the program have historically been quite competitive, and the program has allowed many people to acquire a college education who otherwise might not have been able to afford one.
At the moment, interest rates on Federal student loans are the lowest in history, but that is about to change. On July 1, 2005, the interest rates on Federal student loans will rise, due to an increase in the price of Treasury, bills, to which the interest rates on student loans are tied.
While an increase in interest rates is seldom viewed as a good thing, knowing about it ahead of can be helpful. Between now and June 30, new graduates or those who have been repaying existing loans can consolidate their student loans at current rates. The rates currently vary, with fixed rates being slightly higher than adjustable rates. Those considering consolidation might wish to convert their loan to a fixed rate. Depending on the amount of the loan, borrowers may extend their loan terms to as long as 30 years.
There is also legislation pending in Congress that would change the Federal loan system so that all future loans are adjustable rate, with no fixed rate option. This will save the government money by not allowing students to lock in long-term loans at low rates during times of increasing interest rates. Students who wish to obtain a fixed rate loan may not have much longer to do so.
Rates will vary slightly from lender to lender, and the market for loan consolidation is quite competitive. Those wishing to consolidate their loans should consider shopping around for the best deal while time permits.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.net, a site devoted to information regarding home equity loans.
Bad Credit Debt Consolidation Loans - Unsecured Vs. Secured Debt Consolidation Loans
Getting out of debt is easier said than done. Fortunately, there are many options available to people hoping to eliminate or reduce high consumer debts. Before filing for bankruptcy, which is more damaging than having excessive debt, consider other alternatives. For example, acquiring a secured or unsecured debt consolidation loan is one method to becoming debt free.
Ways to Eliminate Unnecessary Debts
There are many ways to reduce debts. Some people prefer to eliminate debt without obtaining a loan. In this case, getting second employment or seeking a higher paying job may provide you with the extra cash to pay down balances. There is no easy way to reduce debts. Furthermore, eliminating debts take time. Because of high finance fees, paying double the monthly minimum may not result in a significant reduction. However, debt consolidation loans have lower rates, which mean lower finance fees.
What are Unsecured Debt Consolidation Loans?
Unsecured debt consolidation loans are granted by banks and other financial institutions. These loans are not secured by property. Hence, they are also termed no-collateral loans. Getting approved for these types of debt consolidation loans are not easy. If you have too much debt, the majority of lenders are hesitant to extend you additional credit. On the other hand, if you have a very high credit score and earn a sizeable salary, obtaining an unsecured debt consolidation loan is feasible. Overall, individuals with a superb credit rating know how to use credit responsibly. Besides, these individuals will not risk injuring their credit rating.
The disadvantage of unsecured debt consolidation loans is the higher rates. Because, lenders are taking a gamble, be prepared to pay a high interest rate. Still, lender rates are low in comparison to typical credit card rates
What is a Secured Debt Consolidation Loan?
A secured debt consolidation involves collateral. To get approved for these types of loans, the lender will request a valuable piece of property. A vehicle title or boat title may serve as sufficient collateral. If you own a home, consider obtaining a home equity loan or line of credit for the purpose of consolidating debts. These loans do not require a high credit rating. However, applicants with good credit will receive prime rates. Avoid defaulting on secured loans. Failure to pay will result in the lender taking full possession of your property.
View our recommended companies for
Bad Credit Debt Consolidation or view all of our Recommended Debt Consolidation Companies Online
Credit Card Minimum Payments on the Rise
The minimum payment on next month’s credit card bill could be almost double what you were required to pay this month due to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. How will higher credit card minimum payments affect your family’s finances, and can your mortgage advisor help you avoid financial hardship or even bankruptcy through cash out refinancing, a second mortgage, or a home equity line of credit?
Credit Cards can be powerful financial tools when used properly. However, if you’re like 35% of our fellow Americans, you are only paying the minimum payment each month, at least according to the Federal Government Office of the Comptroller of the Currency. Federal regulators are currently pressuring major banks, including major issuers such as Citibank and MBNA as well as the Bank of America, to increase their minimum payments so that consumers have a fighting chance of paying off their high interest credit card debts.
Today, your credit card minimum payment is usually between 2% to 2.5% of the total debt on your credit card. If you were to pay the minimum payment every month today on $10,000.00 of credit card debt at 18% APR, it would take you more than 50 years, 601 payments in total, to pay off your debt, and you would pay an extra $29,000.00 in interest charges to the bank for the privilege of using their money.
By the end of March 2006, major card issuers nationwide will be increasing their minimum payments to effectively 4% of the total debt each month, which for the estimated 50 million Americans who are paying the minimum payment each month may mean that their credit card minimum payment will double. Regulators argue that by paying 4% credit card minimum payments versus 2% credit card minimum payments, you the consumer will be able to pay off your debts more quickly, if you can come up with the extra money each month! Taking the above example of $10,000.00 at 18% APR, you would be able to pay off your credit card debt with a 4% minimum payment in as little as 15 years, and you would pay less than $6,000.00 in interest fees to the bank. That’s a savings of over $23,000.00 versus a 2% minimum payment.
Sounds great right? Higher credit card minimum payments can help you get out of debt faster than lower minimum payments, but there is one catch. You need to pay twice as much every month. So if your minimum payment is currently $400.00, you’ll need to find another $400.00 per month just to keep up with the new minimums. Even if your bank does not increase your rates this coming month, it’s only a matter of time before they are drawn into compliance with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 and your credit card minimum payments rise.
As you can see from the above examples, the government is onto something, paying off credit cards more quickly saves consumers a ton of money, but it actually increases their minimum payments, making it unaffordable for the Americans who need this sort of protection the most. In fact, many of the people whom we’ve spoken to in the writing of this article would likely face bankruptcy after their savings were depleted with these higher payments.
But is there a better way? For homeowners there are some very attractive options available. A Cash Out Refinance, a Fixed Rate Second Mortgage or Home Equity Loan, or a Home Equity Line of credit from your mortgage broker is one of the most effective ways to stop paying high interest on credit card debt and to actually reduce your total monthly payments. For the average customer carrying $10,000.00 dollars of credit card debt at an APR of 18% their new higher minimum payment will be 400 dollars, and if they are like most customers they also have a car loan of $20,000.00 at 9.5% and pay about $450.00 per month, the typical savings realized by consolidating those debts with their mortgage or taking a second mortgage to pay them off can be 60-70% on their current unsecured or revolving debts, and even more savings come tax time through interest deductions available for mortgages.
Speak to a mortgage broker and you’ll find that you can borrow $35,000.00 per month by refinancing with cash out, getting a home equity loan or second mortgage, or opening a home equity line of credit for as little as 200 dollars per month, or even less. Refinancing with cash out not only pays off your credit card debt and your car loan at the high interest rates associated with credit cards and auto loans, but also saves you over $650.00 per month in this scenario by lowering your total monthly payments. Yes, your mortgage payment will increase, but your total monthly payments will actually decrease, putting $650.00 in your pocket each month. Use some of that savings to make at least one extra mortgage payment per year and you’ll pay off that mortgage even faster than you could the credit card debt at minimum payment levels. And you should speak to a tax professional as well, because while you cannot deduct credit card or car loan interest from your taxable income, in most cases you can deduct the interest paid on your mortgage from your taxes, which has the potential to save you thousands more over the life of the loan. This method is not for everyone, but if you are a homeowner facing financial constraints and the thought of your credit card minimum payments going up by up to double makes you shiver, it may make sense to speak with a mortgage broker and with your accountant about a debt consolidation refinance or a debt consolidation loan.
Kyle R. Allen is a seasoned financial professional with a wealth of experience in the mortgage industry. Whether you need advice about refinancing mortgages, debt consolidation loans, real estate investment properties or even if you are a first time buyer looking for your first home loan, Kyle and the whole RefinanceOne team ( www.RefinanceOne.net/ )can help you make one of the biggest investments in your life a wise, sound, and profitable one with their full range of fixed rate and adjustable rate mortgages.
View their website at: www.RefinanceOne.net
Negotiate Your Way Out Of Debt
Eliminating your debt is a daunting task. What can you do to get out of debt fast? Believe it or not, negotiation along with proper financial responsibility is your foothold out of the rat race. Learning how to eliminate your debt might be one of the most important life skills that you learn because it can bring you happiness and fulfillment. In order to successfully eliminate your debt, you must use a combination of self-control, proper negotiating skills, and some future planning.
Here Are Some Tips
1. Chop ‘em up or freeze ‘em. Start by taking all your credit cards out of your wallet/purse and cut them up into pieces. If you’re one of those people who make the claim that you might need those credit cards in case of emergency, then a unique strategy is to freeze your cards–literally. Put the credit card into a paper cup and fill the cup with water and then freeze it. You won’t have immediate access to the credit card and it will still work for you in case of emergencies. Whatever way you choose to get rid of your credit cards, make it a symbolic ritual of your commitment to get out of debt.
2. Start living within your means. You’ll be amazed at how much money can slip through your fingers on small daily purchases. Start living within your means by paying cash for the things that you need to purchase. Start looking for the cheaper items. Remember, brand names do not always equate to being a better product. Big businesses count on the fact that you are going to toss them your money without question, so don’t make it so easy for them. Use coupons wherever you go. Buy in bulk to reduce costs. Learn how to cook. The ways to save money are endless. Just remember that living within your means does not mean you have to live poorit just means you have to live smarter.
3. Consolidate all your high-rate credit cards. First check out the maximum credit limit and APR on all your credit cards and choose the one with the lowest APR and consolidate your other credit card balances onto that one account. Make sure that there are no hidden fees associated with the balance transfer. Another way is to negotiate a loan that offers a lower APR than what you are currently paying for and pay off your high interest cards with that loan. Just be very careful about the small print because many credit card and loan companies will offer a low introductory APR, but once that is over, they jack it up through the ceiling.
4. Invest in your debt. Many people who are stuck in debt still pay quite a bit into their mutual funds or stock portfolio thinking that they will get a higher rate of return. In most cases, this will never happen. Annual APR’s for credit cards are a whopping 24% or more. I have yet to see a constantly performing stock or mutual fund that turns out even 15% on a regular basis. Treat your debt like a high-interest investmentone where you are guaranteed to earn a huge rate of return. Always invest in your debt before you put money into investments.
5. Use a trusted family member. One of the best ways to get out of debt is with the help of a financially stable family member because they will usually give you the cheapest deal on a loan. Get an IOU agreement in writing and pay them a predetermined amount every month. Some people choose not to go this route because of pride, but it could be the fastest and cheapest way out of debt. Just make sure you possess the integrity and honor to repay your debt to them otherwise you will have more problems than just financial ones.
6. Don’t get suckered into taking more debt. A dirty negotiation tactic that loan companies like to use is to offer you more of a loan than you need to pay off your debt, thus adding more debt onto your existing debt. This tactic works the same way as when a child brings a stray puppy home and asks, “Can we keep him?” The credit companies know that there is a great deal of emotional attachment to that extra credit and they are betting that you are going to take that “stray puppy” home with you. Resist the temptation to take that extra credit home with you because it will cause more problems than it is worth.
7. Kill the smaller vermin first. If you have several debt accounts in various denominations, then attack the smallest debt first with full force and kill it as quick and as painlessly as possible. Once that debt is gone, then use the newly freed savings from the last debt and apply it towards killing the next largest one, and so forth. This is a simpler and much more effective way of eliminating debt than paying small amounts off of each loan. It also has the psychological benefit of boosting your motivation with each progressive success.
8. Stay busy. It’s a known fact that if you have too much free time on your hands, you are more likely to spend money than if you were busy. Take up some recreational activity to keep you occupied so that you don’t have that free time to go spend your money.
9. Set up an auto-pay system. There is a ridiculous amount of money to be made on late charges and finance charges. Credit card accounts spiral out of control because people see that they do not have any monthly minimums dues and let it roll over to the next month. The credit card companies love this because you have just given them extra money in the form of finance charges to your account. Always pay more than your minimum to get out of debt. Avoid handing free money over to companies who charge you for late fees by setting up an EFT or automatic bill pay system so that you won’t have to deal with writing the checks, finding stamps, and mailing the bills every month. Having an automated system do this for you will make sure those bills get paid on time.
About The Author
Tristan Loo is an experienced negotiator and an expert in conflict resolution. He uses his law enforcement experience to train others in the prinicples of defusing conflict and reaching agreements. Visit his website at http://www.streetnegotiation.com or e-mail him directly at tristan@streetnegotiation.com
Investing In The Physical Or Virtual Real Estate World with Bryan Ellis
Landlords and rehabbers take notice - you may soon be focused on the new concepts of “Virtual Real Estate Investing“. There are many variations on what this term means, encompassing everything from using the internet to aid in real estate investing efforts to participating in online games such as SecondLife.
To get the facts, I sought out the man generally considered to be the father of virtual real estate investing: Bryan Ellis of BryanEllis.com.
When I began using the term virtual real estate investing in the late 1990s, I did so because I saw clear parallels between the strategies used for profiting from physical real estate and those that would create income in the online world, said Ellis.
An example of the similar nature of “virtual” and “physical” real estate Bryan Ellis likes to point out is the methods of making a profit from domain names compared to physical real estate. “There’s a huge difference between a website and a piece of real estate, but the ways you can profit from them are similar: ‘flipping’, rental/leasing, advertising sales, etc…all of these apply to both markets” he states.
I must admit: Its easy to see the parallels. After all, if you own a valuable piece of real estate, it’s “valuable” because other people are interested in that specific piece of property. Likewise, if you own a desirable domain name, others will find value in it because it serves their purposes. In either case, you could sell or lease the asset and turn it into cash.
In our next installment of this series on virtual real estate investing, Bryan Ellis will share the internet analogies to the physical concept of real estate development.
Guide to Debt Consolidation Loans
Here is a useful guide to Debt Consolidation Loans. A Debt consolidation loan is a loan used to repay several other loans. A Debt Consolidation Loan is a low cost loan secured on your home. It frees up the spare capital (equity) in your home to repay your store card and other debts. It can reduce both your interest costs and your monthly repayments, putting you back in control of your life.
Are you tired of always having to balance lots of payments at the end of each month? Want a solution that will give you the chance to not only pay less each month but also manage them all in one simple payment?
Debt Consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.
A debt consolidation loan is a single loan that can be used to pay off multiple existing debts. These debts may have been incurred through personal loans, credit cards, overdrafts, or may represent any number of unpaid bills that have built up over time.
As the name suggests, a debt consolidation loan takes the group of debts that you owe, and consolidates them into one. This would mean that you only have one monthly payment.
Since the Debt Consolidation loan can be paid off over a longer time period, your individual monthly instalments would also be reduced.
If you find you have several monthly payments on a number of different loans you can make things easier for yourself by bringing them all together and taking out one single loan to pay off the total debt.
With a Debt Consolidation Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases. Debt consolidation usually reduces the borrower’s monthly payments by lowering the interest rate or extending the repayment period or sometimes both.
Debt Consolidation Loan rates are variable, depending on status. Your monthly repayments will depend on the amount borrowed and term.
Consolidating debt can be an effective solution if you have accumulated a lot of high-interest debt through an assortment of credit cards, store cards, personal loans, in fact any type of debt that you are struggling to pay back.
Debt consolidation will combine and repay all existing debt with one single loan, usually at a better interest rate, which means that monthly repayments are reduced and you are able to pay back the money you owe sooner.
Spend time researching different lenders and get quote from a handful before deciding on whom to take your debt consolidation loan from. Shopping around will give you the means to decide on the one that best suits your circumstances and budget.
The benefits of a Debt Consolidation loan is that you will only have one monthly bill to pay and depending on the rate of interest, the size of the monthly repayment compared with what you were paying to your creditors each month, is likely to be reduced.
The drawbacks to a Debt Consolidation loan are that you are likely to have to repay the loan over a longer period and as the debt is secured, your home is at risk if you do not keep up with the payments being made on it.
You may freely reprint this article provided the author’s biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
Reducing Debt Through Lower Interest Loans
It happens to the majority of us, credit card debt accumulates and before we quite realize it, we are carrying a debt load that is far beyond our means. When this happens, we need to take immediate positive steps to knock down the debt as quickly as possible. One of the most efficient ways to do this is to reduce the amount of interest we pay by shopping around for a better rate and having our balances transferred over. By doing this, we pay more towards the principal, thereby reducing the duration of the loan and saving ourselves potentially thousands of dollars over the lifetime of the loan.
Typically, a credit card carrying a balance of $5000 dollars, with an interest rate of 17.5 % and a minimum monthly payment of $150 would take you 3 years and 10 months to pay off. The total interest accrued would amount to $1, 846. However, if you were to transfer your credit card debt to a lower interest rate loan of 7 %, that same $5000 paid in increments of $150 a month, would be paid off in 3 years, 2 months, substantially reducing the amount of interest to just $564. That’s a savings of $1,282.
There are several options available for lowering your interest rates. Each one has its benefits and drawbacks. By educating yourself, you can choose the one that is best for you.
Consumer Credit Counseling Service
Consumer credit counseling services offers to consolidate your debts into one payment, negotiating with creditors on your behalf to have late fees waived, interest rates lowered and loans extended. Counseling Services will require a ‘donation’ or payment to cover costs and handling fees. You need to weigh these costs to determine if you would still come out ahead by paying a company to negotiate a better interest rate for you; a service that you may be able to do yourself.
Choose a reputable firm that will handle the consolidation in a way that preserves your credit scores. Prior to the consolidation, due dates should be changed to correspond with the counseling service’s payment schedule, since many counseling services only send out checks twice a month, on the 1st and the 15th. If these dates do not harmonize with the due dates on the cards, they will show up as late payments on your report. In addition, it’s important to realize that you need to proceed with caution with these companies because not all are reputable and many remain unregulated. Watch for the following signs that may mislead you into trusting a company you shouldn’t:
understand the term “non-profit.” It does not necessarily mean the company is legitimate or that you will get a better rate. The laws governing a ‘non profit’ organization are vague. Many companies qualify for this title by arranging finances to indicate that the company has not profited, while paying their employees large salaries.
To find out if a CCCS is legitimate, check with the National Foundation for Consumer Credit (NFCC) and the Better Business Bureau in your area. Be wary of companies claiming you can lower your monthly payments-this is a fallacy. As of March 25th 2004 the last two banks to accept lower payments discontinued this practice. Question companies that offer lower interest rates than their competitors. All creditors work off the same interest rate reductions and minimum percentage payments on balances so therefore it is highly unlikely to have this lowered.
Be familiar with the current interest rates on the cards you carry and ask that you choose which cards to consolidate. You already may carry balances with interest rates that are lower than the one they are offering you. If so, request that you be able to exclude those balances from consolidation.
You have to decide if there is a benefit to going to a Consumer Credit Counseling Service or if you can do their job just as effectively yourself. A consumer can often negotiate with creditors themselves for a better interest rate. One option is to shop around for a better interest on credit cards and to transfer the balances from the high cards over to the lower card. Contact your credit card company and tell them you have been offered a better rate at another company and if they plan on matching or beating that rate. If they do not rise to the challenge then transfer your balances to the new card. One option for transferring your balances is to take out a home equity line of credit.
Home Equity Line of Credit
A home equity line of credit is a loan taken out against the equity in your home, in other words your home is offered as collateral. These loans are usually offered at low interest rates. As with any credit, you should weigh the benefits and costs before deciding. Bare in mind that failure to repay the loan, with interest could result in the loss of your home.
The credit limit on the line is derived at by taking a percentage of the home’s appraised value and subtracting the balance owing on the mortgage. The line of credit amount is also based on your income, credit history and additional debt load.
The home equity line of credit works on a variable interest rate, based on the prime rate. Lenders usually charge prime rate plus a 2 percent margin. By law, equity lines of credit must have a cap on how much the interest rate may increase over the life of the plan. Some also limit how low your interest rate may fall if there is a drop in rates.
Home equity plans may set a fixed period during which you can borrow money. At the end of this draw period you may have the option of renewal, or if no renewal option exists, then the plan may call for full payment at the end of the term.
As with any contract, you must read the terms and conditions carefully, as many plans have fees, charges and hidden costs. Some of the costs involved in establishing a home equity line of credit include property appraisal fees, application fees, closing costs and attorney fees. In addition to these costs, you may expect to pay transaction fees every time you draw on the line.
The benefit of opening a Home equity line of credit is that the minimum payments are low, often set at just the interest or interest plus a few percentage points. Be aware that with a variable interest rate, monthly payments may fluctuate. If you sell your home you will probably be required to pay off your loan immediately.
No matter which option you choose, the main goal should be to reduce those high interest rates while paying the lowest penalty for doing so. Weigh the pro’s and con’s of all options carefully and choose a road that best suites your financial situation.
Stay Informed
It is important to stay informed about your credit before you apply for any loan. An excellent way to begin taking control of your financial future is to obtaining a copy of your credit reports before you see a lender. Today you can get your free instant credit reports from the major 3 credit report agencies online. This way you can see exactly what the lender will see. When obtaining your credit reports, you will want to make sure you get your credit report scores as this is what lenders base most of their decision on. The higher your credit score the lower your interest rate will be and vice versa. So be a wise consumer, get you’re a copy of your credit report and reduce your debt through lower interest loans.
About The Author
Melanie Cossey is a successful home based freelance writer. Meanie writes many informative articles on the topic of credit, such as What is a FICO score and why is it important? and Comprehending a Credit Report.
Mont-Blanc Augments in Mass from 2002 as Announced by Glaciologists
Current detailed Global Positioning System readings taken on the 16-17th Sept have shown that Mont Blanc numbers 4810.2 metres. Mont Blanc is veiled by a thick ice cap which has got bigger by 2.8 m in scarcely 2 years furthermore more surprising the volume of the ice and snow has just about grown twofold . At least that’s as reported by the experts.
The amount of ice and snow was computed for the inaugural time in 2003. It worked out to be 14300 cubic metres higher up than 4780 metres. It amounted to just 13900 cubic meters in 2001 potentially ascribable to the heat wave with plus temperatures as high as 4900 meters height. Notwithstanding the icecap has nearly doubled since then and nowadays measures 24000 cubic meters.
Chamonix village’s valued local weather man Sandra Grass said the development in the mass of the ice cap is among the contrary outcomes of climate change: The amount of snow has not expanded generally in the French Alps but with climate change we’re seeing more warm prevailing westerly winds which bring rainfall at lower altitudes but in summertime this means thick snow that rests above 3900 metres elevation therefore the volume of the ice cap is expanding. Contrast that to the state of affairs in winter time where the snow crystals are extremely cold and are transferred by the wind and so don’t rest on the summit.
Chamonix Mont Blanc France is not only infamous for Mount Blanc it is also a world renowned ski town and climbing mecca with many ski deals and self catering chalets to be rented. Furthermore at just 1 hr from Geneva it is ideal for a ski weekend.
How To Get Rid Of Debt Problems Step 2 — How To Prepare A Financial Statement
Here is how to prepare a financial statement, for the purpose of
negotiating reduced payments with your creditors.
Secured/Unsecured debts.
Before we get into the substance of this, let’s ensure we are
clear about the significance of secured debts.
If the debt is secured, there is a risk that the item upon which
the debt is secured could be re-possessed, if payments are not
maintained. One of the most common forms of secured debt is the
mortgage — which also typically represents a very large debt
and therefore a potentially very large problem.
There are two important points to note concerning
secured/unsecured debts and attempting to reduce payments.
1. any creditor who is owed a secured debt has no reason to
accept reduced payment. The creditor, in nearly all cases, would
rather re-possess the item upon which the debt is secured
2. The borrower must be aware that, in the case of a secured
debt, any change in the agreed payments carries a risk that the
item upon which the debt is secured could be re-possessed,
unless the creditor agrees in advance to accept the change.
Thus, in most cases, it is only unsecured debts which offer the
chance of a potential reduction in payments.
Right, on to the financial statement.
The following are the items you should list, where applicable,
in order to present your total income and expenditure. You
should calculate and enter a monthly figure for these items.
You might like to copy and paste the following items into your
Word Processor/Spreadsheet/Text Editor for printing out.
INCOME
Wages Salary (after all deductions)……………………
Partners or second salary (after all deductions)………..
Benefits
Unemployment………………………………………..
Maternity…………………………………………..
Sickness/Invalidity………………………………….
Child/One Parent…………………………………….
Retirement………………………………………….
Income Support………………………………………
Family Credit……………………………………….
Contributions
Maintenance…………………………………………
Lodger/Dependants……………………………………
TOTAL………………………………………………..
EXPENDITURE
Rent/Mortgage…………………………………………
Rent/Mortgage Arrears………………………………….
Second Mortgage……………………………………….
Endowment/Mortgage Protection…………………………..
Child Maintenance……………………………………..
Life/House Insurance…………………………………..
Council Tax…………………………………………..
Water Rates…………………………………………..
Gas………………………………………………….
Electric……………………………………………..
Telephone…………………………………………….
Clothing……………………………………………..
TV Licence/Rental……………………………………..
School Meals………………………………………….
Meals at Work…………………………………………
Car Tax/Insurance……………………………………..
Travelling Expenses……………………………………
Spending Money………………………………………..
Total ……………………………………………….
You should ensure that this total expenditure figure is sufficient for your
needs, and that no items of expenditure can be considered
excessive. Obviously, total expenditure cannot be MORE than
total income.
Your income figures will need to be proven by a copy of a recent
payslip.
Look out for How To Get Rid Of Debt Problems Step 3, where we
look at ‘How To Negotiate Reduced Payments With Creditors’
Rob Hawkins is the owner of
Debt Consolidation UK. His company Chiltern Debt Management UK has helped more than 50,000 people to get rid of debt problems, and won the coveted ‘Debt Counsellor of the Year 2004′ award.