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Old 06-12-2012, 23:15   #1
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Debt warnings to USA households – Exploring the tips to manage the spiraling debt

If your debt load is more than you have ever expected, you need not fret as you’re not alone. According to the Statistics USA, the debt-to-income ratios of the USA households have reached record highs, ranging somewhere above 148%. This alarming figure shows that the USA owe $1.48 on every dollar of their disposable income that they have. If you’re one such USA, you need to take some solid steps that will help you lighten your overwhelmingly large load. The consumer debt crisis in USA has been in the centre stage, it has been surveyed that the USA home-owners owe a whole of $1.5 trillion of debt. Though do it yourself debt settlement can be a worthy option when it comes to repaying your debts, yet you must take some steps on your own to make sure that you manage this debt level that is soon spiralling out of control.

Debt usually results from reckless spending habits and out-of-control usage of credit. It needs no mention that credit is important as it helps us purchase things that we cannot afford with money, yet too much usage of credit may lead you into high interest debt that can take a toll on your personal financial lives. Credit needs to be managed wisely so that it doesn’t become a burden on you. Following some simple personal finance management tips you can easily get a grip on your finances and thereby reduce your debt burden. Getting out of this spiralling debt level not only seems attainable but you may also feel rewarding. Have a look at the perfect recipe for a debt reduction plan.

1.Study your monthly expenses: Make a list of your income and expenses so that you can ease off the pressure on your wallet. Create a monthly spending plan by implementing a frugal budget so that you can eliminate all the unnecessary expenses and concentrate only on the things that you need. Monitor your savings so that you can have enough funds to pay off your debts on time.

2.Restrain the usage of your cards: Unless you restrain the usage of your credit cards, you can never see positive results in your debt life. The more you use credit while shopping for things, the more you dig yourself deeper into the debt hole. Lock your cards in your cupboard and carry cash while you go out. Stop shopping as soon as you exhaust your cash.

3.Consolidate your debt: Having one monthly payment will be easier on your wallet than having to manage multiple payments in a month. Choose to consolidate your debts wither by signing up with a debt consolidation company or by taking out a debt consolidation loan. With minimized interest rate, debt repayment will become easier for you and you can let go of the thought of filing a bankruptcy.

4.Choose to make bi-weekly payments: If you want to make debt more manageable, you have to explore the ways in which you can get debt free sooner. Paying bi-weekly means you need to make 26 payments instead of 12 payments in a year. If you pay more frequently, you have to pay lesser on interest rates and therefore you can become debt free sooner.

5.Speak to a financial planner: A financial planner in USA may help you take the best step towards your financial goal. Paying off credit card debt and consumer debt can become easier if you get help from a financial planner. He will tell you how to balance your income and expenses simultaneously.

Pull out your credit report once in a month to make whether or not everything is being listed in it. Make needed changes to boost your score and remain credit-worthy to your lenders. If needed, you can either consolidate your debts or go for debt settlement to repay your creditors on time.
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Old 06-14-2012, 16:54   #2
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Interesting advice: But here is another way.

1) Are you upside down on your house?
2) Is your unsecured debt higher than your income?
3) Do you really need a new car? (S)

Better than 1 in 4 are upside down on their homes.
About half have unsecured debt that is higher than their yearly income.
Most of us would be best served by owning our own, older cars.

Limits for bankruptcy are 7000.00 or less in vehicle value. (They can't touch it.)
Let your house go. Bye bye throwing good money after bad. If the housing market recovers in 5 or 10 years, buy into it again then, your credit will be fine again.
Liquidate anything of value you would lose in bankruptcy, then put it into places they can't touch like retirement accounts.

Declare your own personal "wall street or GM" type bankrupcty and absolve yourself of debt, and in the process, the loss of tens of thousands of dollars, or more you would pay out to the leeaches called Credit Cards/Banks etc.

The flip side is folks who have re-financed at new lower rates, and amount using the Obama plan on housing.. Only to have it backfire bigtime for them.

Case in point: Let's say your mortage is 500k. You have income to pay your bills, but the payment is killing you, and the house today is only worth 300k. Using the Obama plan, you re-finance the house for 300k, and lower your monthly payment, but the IRS now considers that you MADE 200k for this tax year.... Yep, and for that CAPITAL GAIN you pay 30% tax, or 60,000.00.

Whoops! Anyone have an extra 60k just laying around! LOL

And you end up doing what anyway?

Bankruptcy, and you still owe 60k to the IRS... Fk'rs.

Be smark my fellow Americans, don't even try and be nice to Banks/WallStreet/Lenders/Card companies... Just Fk'em like they do you, and get them before they get you.

If you really want to scrw'em, you just run up your unsecured debt to the max, stop making your payments on your house and cards, and it takes years to process all this, so you can put the extra you would be paying into your retirement plans, where they can't touch it, or into assets they can't touch, and then when it all comes time to settle up, you walk away from a house you lived in for free for years, sell off your cars for paid for ones with values of 7k and no more, and downsize your own household to a more sensable situation while you wipe your debts clean as a whistle, and Fk'em to the banks with a very good feeling since they have been Fk'ing you for decades, and revenge feels good.

LOL

Look around you my fellow Americans, there are more of your neighbors doing just this than you think.

Play with this, and look at what goes on in 2007, 200 and so forth... DUDE! Seriously, the folks that go bankrupt and walk away from these home loans, expensive vehicles and other loans that are KILLING US ALL, will be the smart ones in 5 to 10 years.

Bye bye debt, and hello cash acounting.


Bankruptcy filings, state by state, 2005-2010
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