Family Finance: What To Do If You Are Drowning In Debt

Millions of families in the world have problems with overwhelming debt. Once a person is underneath the rock of overwhelming debt, it becomes burdensome to get from under it. 

Fortunately, some solid solutions still exist for climbing out of debt. The following are six things the household head can do to regain financial composure:

Cut the Cards

The first step toward regaining financial footing is to stop spending. That may mean cutting the credit cards in half, but financial freedom will be worth the small sacrifice. Get rid of cards you don’t really need, but only use to make extra purchases.

Obtain a Credit Report

The next step that a consumer should take is obtaining a copy of the credit report to see how bad the situation really is. A consumer can take steps like disputing foreign accounts and charges if that person wants to climb out of overwhelming debt. 

Take a Counseling Course

Free credit counseling courses can help a homeowner to develop healthy spending and payment habits. Some people have to take counseling before they can file for bankruptcy.

Consolidate

A debt consolidation is something that a consumer can do, but the person has to have a credit score that is still acceptable. Some financial companies will provide a high-risk consolidation loan. However, the provider may offer the loan at a high interest rate.

Sign up for Debt Management

A debt management program is another option that one may have for recovering from overwhelming debt. A debt management program involves a third-party specialist who negotiates with the lenders and then then makes payments toward the creditors on behalf of the client. 

Debt management companies usually charge a monthly fee for their services. Debt management is a good choice for a person who has more than two open debt accounts and had various interest rates on each account. The arrangement can even out the interest and keep the person’s financial plate clean. 

Speak to a Bankruptcy Attorney

Bankruptcy may be a good solution for someone who has a low annual income and truly cannot pay the bills. A Chapter 7 bankruptcy is for a consumer who does not have money left over after calculating the disposable income. 

A Chapter 13 bankruptcy is one that requires the consumer to come up with a repayment plan and offer to pay a percentage of the debt over time. It’s important to speak with a bankruptcy attorney like those at Morrison & Murff when dealing with major financial problems. 

Dealing with debt can become a major burden for many families. Without self-discipline and help from experts, it may feel impossible to overcome financial problems. These tips can help you get back on the right track and control your finances.

How Significant is the APR in Short Term Loans

From home loans to car title loans the options available on the market today are endless, and promise you financial assistance to meet just about any financial need! 

Before committing to a specific loan, it’s important to know exactly what assistance you need, what the loan offers, and what is expected of you in terms of the qualification criteria and the loans repayments.

If you are the owner of a bad credit score, then this eliminates a significant chunk of loans that you can qualify for, as credit is used to by many lenders to determine the risk they taking in lending to you. 

Car title loans welcome all applicants despite their credit score, and these loans are approved with no credit checks.

Car title loans are short term loans that offer the applicant many benefits. When comparing the different loans on the market, it’s important to compare apples with apples, to make sure that you are getting a true reflection of what you are applying for and what is expected of you in return.

With all loan types, the APR or Annual Percentage Rate is a significant indicator in explaining the rates to you for your specific loan. 

It is sometimes difficult to compare loan benefits when some loans are short term and other are long term, as the periods that the loan runs for vary and significantly change the costs. The APR is a standardized measurement of the cost of credit, taken at a yearly rate.

It may seem strange to have such a measurement for a short term car title loan, but this helps you to understand and compare the costs across the board. 

With this value you could clearly understand how much it would cost you to pay off this short term loan, in the period of a year, which is a standard repayment time for all loans.

The APR is significant with short term loans, as different lenders charge different rates. Instead of looking at the numbers at face value, understanding the entire loan process with make sure that when you take out your car title loan, you will choose a lender who offers low interest rates and fees.

The APR is also determined based on a few criteria, such as how the repayments are structured, monthly, weekly, or every second week, what the length is of the loan period that you have taken out, and the time between when you receive the cash loan and the first required repayments. 

All of these factors are very important when it comes to a car title loan. There are so many providers to choose from that it is essential to make sure that you are getting the best terms and conditions. 

Be sure to take a look at all of the lender's terms and conditions, and they should also disclose any additional fees, including penalty fees for making early loan repayments. When you’re armed with this knowledge, your entire loan process is sure to be a success!

4 Habits That Can Make Budgeting Difficult

Budgeting provides a great way to manage your money on both a short and long-term basis. When you create a budget, you can plan how much money you have versus what your expenses are, and you can therefore allocate your money appropriately. But there are some habits that can make budgeting difficult, if not impossible.

Set Goals for Yourself

You need to know where you're headed with your money management and where you want to end up. When you don't have a financial road map, you wind up becoming lost. 

When you don't have goals, it's nearly impossible to create a budgeting plan. You can make a clear path for yourself by setting goals that are clear and specific, such as saving $50 every month and adding it to an emergency fund.

Make a Plan and Stick to It

Once you've developed goals and created a plan for how much income you'll have each month and how much your expenses are, write down that plan on paper or in a digital document. 

Then be disciplined and stick to that plan. When you stray from the plan, you have much more difficulty with budgeting. Even if you do get away from that plan, get back on track as soon as possible.

Unexpected Expenses

When you create a budget, you should stick to it. But when unexpected expenses come up, it's nearly impossible to stay on track. For instance, DUI charges can throw off budgeting plans by resulting in massive unexpected expenses. 

Professionals, like those at Tad Nelson, can help you understand the law and cope with the situation. Understanding the law is important. Costs vary depending on where you live and what the charges are, but expenses for a defense attorney, bail, higher insurance premiums, and more can total at least $10,000. The unexpected expenses of having DUI charges can be devastating to your budget.

Resist the Urge to Splurge

Rather than spending all the money you earn, you should set aside some of it, even if it's a small amount. Spending all that you have creates no financial cushion to fall back on when unexpected expenses come up and it also makes it very hard to plan for future financial goals. Develop a new habit to spend less than what you earn, and you'll make budgeting much easier.

Avoid these four habits, and budgeting will become more straightforward for you. Don't delay - get started on working toward your financial goals and dreams today. If you need some expert assistance, which many people do, find an experienced local financial consultant who can advise you.

4 Hot Details About International Exchange Rates

Foreign currency is one of the trickiest financial topics. Predicting when to convert USD into currency from another country requires apt timing, the right financial institution and minimized costs to ensure you acquire the most value for your money.

Below are some tips designed to ensure that you can maximize your money when dealing with international exchange rates.

Pay Attention to Foreign News

One basic fact is that the worth of one currency fluctuates with relation to its economic situation. This is why one dollar may be worth more tomorrow than it is today when exchanged into a foreign currency.

The best way to keep these rates in your favor is to pay attention to the news. Factors like increased public and private debt can lower the worth of foreign currency.

Opt for Reduced Fees

Fees will quickly wear away money that you may intend to send to friends and family in another country. An estimated $441 billion dollars are sent abroad from the United States each year.

Roughly $22 billion dollars are taken from that total for fees and other services associated with exchanging money into foreign currency.

The best way to maximize your currency is to opt for the best rates possible. If you receive some of the lowest rates for sending money to places like the Dominican Republic, then in turn you can send even more money.

Exchange Money Ahead of Time

Visits to a foreign country represent common situations where you may desire to exchange one currency into another. Exchanging currency once you arrive can be one of the most expensive mistakes to make.

One way to do this is to create a money order addressed to yourself through a money transfer company like Sharemoney.com. This can allow you to exchange the currency while providing a basic level of protection against loss or theft.

Take Advantage of the Economics of Scale

Larger transactions tend to be more cost-efficient, especially when you are able to pay a flat commission for exchanging currencies. These tend to have reduced rates due to the economics of scale, which in turn means you can exchange more currency for less money.

Take note that these types of exchanges are often limited to larger transactions. It may be more convenient to regularly make smaller transfers, especially if your intent is to send money as support to someone in another country.

Making the Most of International Exchange Rates

Exchanging domestic currency into foreign currency is a tricky process. It requires you to look for the best rates, understand how these processes work, and use the most appropriate types of exchanges.

When you can make these things come together, you can ensure that you get the best deals while dealing with foreign currency exchanges.