Feb9th
Tuesday, February 9th, 2010
Beating debt is as much to do with what’s going on in your head as it is to do with what’s going on in your wallet. If you have a debt problem you can solve it if you admit this. Here are five steps you can take to begin beating your debt:
1. Take control
There comes a point where you have to admit that your debt is defeating you. You can’t keep up with repayments; the interest charges are mounting up and, maybe even worse, you’re using one loan to pay off another.
You have to take control of your finances: if you don’t your creditors will. If you are in denial about this you need to face the truth. If you can face the truth and take control, you’re on the first step to beating debt.
2. Live within your means
Take a look at your credit card and charge-card statements. What did you spend that money on?
Go round your house and take a good hard look at the goods that you bought with those credit cards. Are they worth it? Did you want them that much? What difference have they truly made to your life?
What do you feel like when you look that stuff and say to yourself, ‘I haven’t paid for that (xxx) yet’?
3. Reduce your stress
Debt can become a nightmare and stress can send you into a spiral of despair. It doesn’t have to be like that. There’s a way out but it’s not an easy way out. You have to take control of yourself and your spending, and resolve to get your life back. When (and only when) you’ve got that mental resolve, then consider consolidating your debt.
4. Eliminate your debt
Consolidating your debt is a one-chance option of repaying your debt. The debt doesn’t disappear, but all the various loans and debts get lumped together into one bigger loan to be paid off over a longer period and at a lower interest rate. This frees up some of your income and will instantly reduce your stress.
And, crucially, you shouldn’t continue to rack up credit card debts. You will only eliminate your debt if you live within your means.
Try an experiment. Leave your credit cards at home for a week and live on cash. Pay for everything with money – yes, everything. This will help you get a handle on your need to budget. When you see the money slipping through your fingers it will bring home the reality that your supply of money is limited.
At the end of the week, ask yourself how you feel. If it was difficult but you succeeded in prioritizing your spending, congratulations – you’re in control! If it was hard, or impossible, then try again. You need to be tough with yourself to be in control of your money.
5. Getting your life back
Happiness is not being able to buy useless luxuries: it’s about being free. Cut up all but one of your credit cards, and pay back that credit card every month, without fail. You’ll enjoy the things that money can buy only if you spend money that you have – not money that you borrow. Resist the temptation to indulge yourself with money that you don’t own.
Money has the power to enslave you as well as making you free. When your debt is out of control, you’re enslaved. You can become free only if you take control.
Posted in bankcruptcy, credit card debt, debt consolidation, loan, refinancing, remortgage | 1 Comment »
Feb2nd
Tuesday, February 2nd, 2010
Filling out bankruptcy forms can be one of the most difficult parts about filing for bankruptcy, although these forms are a necessary evil to complete the legal process. Unfortunately these legalities can add major emotional stress to an already difficult situation. Especially if you have decided to go about filing on your own, without the help of a lawyer or financial service company, you may find yourself overwhelmed with trying to understand which bankruptcy forms are right for which chapter.
If you are an individual who is filing for bankruptcy, most likely you will be filling out bankruptcy forms specifically dealing with either Chapter 7 or Chapter 13. Even as a business you may be filing for Chapter 7 or Chapter 13, although you may be filing for Chapter 11 as well. In any case, there are separate forms that need to be filled out with each particular chapter stating the intention to file bankruptcy under that chapter.
The individual or business may also have other special bankruptcy forms that go along with a particular chapter. For instance, Chapter 13 and Chapter 11 are reorganization chapters and will require a form that discusses how and when creditors will gather to meet and discuss the finances of the individual or business for repayment plans. If the individual is filing for a complete liquidation, Chapter 7, forms for possible exemption of assets will need to be filled out if the debtor plans to keep any of their personal belongings.
In all cases, the debtor will be required to file bankruptcy forms regarding a statement of petition, a list of creditors, personal income, personal property, and Declaration of penalty under perjury. These forms will simple let the courts know of the individual or business’ plan to file, the assets the debtor has available, the current available income, and the debtor’s knowledge that lying about finances will have legal consequences.
With the new age of technology, all bankruptcy forms are available through the United States court system at http://www.uscourts.gov/bkforms/bankruptcy_forms.html. Of course the availability of the forms does not necessarily mean that all individuals or businesses will clearly understand which forms apply to them. If you are confused about which forms to fill out, don’t be afraid to ask the court system for help.
Unfortunately the court system may be overwhelmed with other cases they feel are more important making it difficult to find answers to bankruptcy form questions. In this case, you can always consult with a legal aide, a bankruptcy attorney or even a financial service organization that can help you understand the paperwork better.
Even if you don’t plan on hiring an attorney to handle the case for you, it may be worth the time and energy to consult them regarding the paperwork that goes along with the process. You may also want to consider a bankruptcy service organizations online, which can help answer questions and guide debtors through the process.
Keep in mind that each state court system has secretaries available who can type up the forms for you, although there will be an additional charge for this service. Most law firm or legal aide organizations have similar services that may be beneficial in helping debtors get through the process of filing bankruptcy forms.
Posted in avoid bankruptcy, bankruptcy, bankruptcy attorney, bankruptcy forms, bankruptcy law | No Comments »