The finances and how being thrifty helps

Posted on December 16, 2011 by Jason

Ireland has always been one of the poor places but it has gained stable finances in the last 20 years. Now, it has the second highest per capita income amongst all the countries in Europe. It is also the fourth highest in the world in the term of measurements of the GDP or the Gross Domestic Product per capita. It now ranks as the 42nd most expensive city to live in but still the cost of living is manageable because of the job standards there. However, as a result of the recession, Ireland’s property bubble has popped and so the accommodation costs have dropped too. This recession of 2007-2009 resulted in debt in many countries and Ireland is no far behind. The national debt is continuously mounting up (close to 1 trillion euro). So, there’s need for debt reduction.

Being thrifty helps in debt reduction

Being thrifty helps in debt reduction; as you are expending less you will incur lower debts. There are in fact various ways in which you can go thrifty. Being thrifty does not mean that you will have to give up on all of your luxuries. It is rather a way of lowering your expenditures.

  1. Budget – The most important thing that you need to do in order to lower your expenditures and save money is budgeting. Budgeting helps you to get a clear idea on how much your total income is and what your expenditures are.
  2. Cut down on unnecessary items – As you budget, you will also be able to find out specifically what are the things that you spend your money on. Now, in doing so, you will also be able to find out that all of these items are not necessary and that you can do without these. So, you might be able to cut down on the unnecessary items and save some money.
  3. Plan vacations ahead of time – If you think that you will like to go on a tour, plan it much ahead of time. You can search on the airline tickets from and to Ireland. Sometimes, you may even be able to get discounts.
  4. Take advantage of discounts and sales – When you go for shopping, find out if the shops are offering discounts and sales. This should be the case not only for the grocery items but also for clothes and books and other necessary items. This helps you to save on lots of money.
  5. Sell of items through yard sale – You can also get money from the items which are lying unused. Sell those off and get that extra money for debt reduction.
  6. Save money on gas and electricity – You can also save money on gas and electricity. You can so that by carefully using the gas and electricity. Remember to put off the switch before leaving the room or the house.

So, you can see that being thrifty does help you to save lots of money. You can then use that money for debt reduction by paying off your debts.

 

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Debt settlement program – Does it help a debtor to get rid of bills?

Posted on March 9, 2011 by Jason

If you are overburdened with debt and looking for a way out, then you may consider getting help from a debt settlement company. Such companies offer settlement programs, enrolling in which you can get rid of your bills/debts relatively quickly. Debt settlement is a process of negotiating with creditors so that they accept an amount lower than what is owed on the account(s). Read this article to get an overview of a settlement program and how it helps a debtor to solve his/her debt problems.

Which debts can you settle?
You will not be able to settle each and every debt you owe with the help of a settlement program. A settlement company can help you settle your unsecured debts such as, your credit card bills, unsecured personal loans, past due utility bills, medical bills, etc. However, you’ll not be able to settle your secured loans such as a car loan or a mortgage.

How does a debt settlement program function?
There are several settlement companies which offer debt settlement programs. However, it is advisable that you enroll with a settlement company which is reliable and has at least 3 years of relevant experience.
When you enroll in a settlement program, at first, the company will assess your financial condition to know how much you owe and what you earn every month. This assessment will help the company decide upon a monthly payment that you can afford and also give you an idea regarding how long it will take to repay your debts. Usually, an agent, on behalf of the company, will work with you. He/she will communicate with your creditors/collection agencies and explain that you will not be able to pay off the balances in full and negotiate to reduce the payoff amount. The agent will also ask you to stop paying your creditors for the time being and instead deposit the monthly amount into your settlement account. As soon as your creditors will agree to a reduced payoff amount, the accumulated settlement funds will be used to pay the creditors.
Thus, you will be able to get rid of your bills/debts quickly in a systematic way.

What are the benefits of a debt settlement program?
Here are some of the benefits offered by a debt settlement program.

* Your debt amount usually gets reduced – When you get help of a settlement program, the settlement company negotiates with your creditors to reduce the payoff amount to about 40-60% of what you owe to your creditors. Thus, it becomes easier for you to get rid of your bills fast.

* You have to make a single monthly payment – You need to make a single monthly payment when you enroll with a settlement company to solve your debt problems.

* Creditors/collection agencies may stop calling you – When you enroll with a settlement company, it informs your creditors and/or collection agencies that you are paying off debts with professional help. So, most of the creditors/collection agencies are likely to stop calling you for payments.

* You can avoid filing a bankruptcy – A debt settlement program helps you get rid of your debts and thus help you avoid filing a bankruptcy, which has a devastating effect on your credit report.

Though a settlement program helps you become debt free quickly, yet it has a negative effect on your credit report and your credit score may get lowered by several points. However, debt settlement is considered to be a better option than filing a bankruptcy, which stays in your credit report for about 10 years if you file a Chapter 7 Bankruptcy. So, settlement can be a better option for you when your financial condition doesn’t permit you to pay off the debts in full and the alternative is to filing a bankruptcy.

Jason Holmes is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like Credit Score The Quintessential Therapy for a Happy Pocket’, Take Creditors and Collection Agencies to Small Claims Court and, My Story- From Depression To a Smile.

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