Word of Advice for Debt Novices

Prevention is better than cure, of course, it is. Curing a disease is a long, hard process which involves tracing the root of the problem as well as the underlying implication and causes of the problem. When we say debt is a disease, this is exactly why we think that. Debt cripples your ability to think clearly and to live your life to the fullest mental and experiential capacity. Debt is the cause of many other problems that are completely avoidable with merely healthy financial habits. If you are a debt novice, then there are chances that you have not yet experienced the crushing debt that compel people to declare bankruptcy or take loan after loan just to pay the previous debts back. You might also be unaware of what a menace the credit collectors can be. Their calls can be a klaxon of anxiety and flight response within even the strongest psyches.

If you have not fallen into the pit, here’s a word of advice for you straight from the debt experts. Take care of your debts and keep a log of everything. The habits of overspending that might not be a big threat now will turn out to be the biggest hurdles to overcome in the near future. The one month delay over the payment of credit card debt will carry over to two months and before you know it, there will be a debt collection agent calling every day and your credit score will be somewhere near the ocean floor. As it was mentioned earlier, the best way to mitigate debt is to be critical of all your actions and causes of your debts. You must overcome personal hurdles and inclinations to spend more. Be smart about your financial future and you will remain a debt novice.

Getting Over the Phobia of Creditors!

Living in fear is no life at all.  People with a fear of water cannot experience a whole new world dwelling underwater. Similarly, people with the fear of heights miss some of the greatest bluffs and peaks the nature offers us. Similar is the fear of that ringing phone when the person on the other end could be a creditor. This might seem like hyperbole but it is very much the thought process of debtors and ones who are on the verge of collapse due to missed payments and piling debt.

The calls of the debt collectors vary on the scale of being threatening to civil according to different situations. The usual format of the call is information gathering and your intents regarding your payments. These calls can be exceptionally scary due to extremely confrontational methods of inquiry and hostile demands of money. As a matter of fact, many debtors develop anxiety disorders due to repeated demands from banks or lending companies.

The best solution to get over the crisis of confidence is to get repayment agreement where a third party handles all your credit concerns; these arrangements are usually an IVA or a DMP. In these, a debt consultant ensures that the creditors only get what they owe and even that is reduced in cases of low disposable income. The credit consultants also try to get a lower interest rate so you will have peace of mind while living your debt-free life.

Getting away from the stressful constant calls of the creditors. Live your life freely. Get over your fear and call solution2debts now!

How to Stop Piling on Debt in Self-Quarantine?

Quarantining without any access to loved ones of the outside environment can be extremely tough. While it is true that you must self-isolate to stay safe from the disease, there are many downsides to being without social contact. Try as we might, the same magic just can’t be created by online calls and messaging. With there being no social stimulus, the creative potential of an individual also takes a nosedive. There is less imperative to DIY, cook, write, create, draw or even indulge in new media. Therefore, the individual turns to the only joy he has available; shopping.

Shopping itself is not a bad activity. We adore shopping. It is an amazing outlet that lets you express your creativity and personal expression. With the introduction of online shopping and contact less payments, many businesses and consumers are availing previously unexplored niches and opportunities. However, during the COVID-19 pandemic, the same facility introduced for the comfort of the consumers is causing the drainage of financial resources. Consumers are ordering food, clothes, supplies and everything else from the web pages without even realizing the higher prices and the markup on these products. Budgets are essentially being thrown out of the window.

Want to know how to stop your debt from climbing even further? The simplest solution is not buying the thing you don’t need. And buying the things you need in a moderate quantity. You cannot expect your budget to be stable when you are piling on the expenses of delivered food and extra groceries. Spend your time in more productive endeavors and create stuff rather than buy it off the internet. Be smart with your finances. Now is not the time to spend all your savings on pizza and burgers.

Our financial experts suggest identifying the excessive expenses in your budget and eliminating them as fast as possible, your future self will thank you.

Self-Discipline & IVA Management

Self-discipline is usually the key to getting everything important in life. There are several rules and guidelines to achieve any ultimate goal. Many personal attributes are also important factors in maintaining a straight path to success. Discipline is one of the prime attributes in these endeavors. As real-life experiences may have taught you, balanced and perfect discipline makes many ambitions attainable. Financial goals are no different. All you need is motivation and discipline to ensure that you don’t stray from the predetermined path to success. However, we are aware that self-discipline is extremely hard to perfect. When bills and debts are concerned, many debtors cannot control their own spending impulses and act recklessly.  The term “Retail Therapy” is also coined to categorize the stressful spending behavior. If you suffer from the same behavioral issues, then you need to implement some self-disciplinary measures to curb these impulses.

Luckily, debt relief measures like DMP and IVA are extremely strict representations of discipline necessary to create financial health and good credit score. There are special provisions in the DMP and IVA contracts that if a debtor does not pay the required monthly fee regularly, the whole contract can be canceled and the previously paid installments could be null and void as well. With this Damocles’ sword hanging over the head, there is very little chance that anyone would be willing to slack off. To the more free-spirited, these disciplinary measures may seem chafing and annoying. However, these are most effective for keeping everyone o the straight track. In this way, every penny of the disposable income is calculated and accounted for. There are no avenues for impulse buying. There are funds for emergencies, but anyone availing IVA and DMP learns the difference between want and need pretty quickly.

Don’t worry about IVA being suffocating and restrictive. If you follow the guidelines exactly, there’s plenty of room for leisure and personal spending. Don’t believe us? Just ask the experts.

The Most Difficult Financial Decision

Life is truly a series of ups and downs. No one can predict with a hundred percent certainty what tomorrow will bring. This is exactly why keeping your finances in check and being smart with your savings is important. When there is an imminent emergency, there are several avenues you can turn to. But, as we are seeing in this COVID-19 pandemic, the institutes catering to emergencies of the general public are choked and there is a limited number of resources available for you to partake in. The most important step you can take in this situation is to make a pact with yourself that you will never let yourself be financially vulnerable. This means taking many hard decisions and giving up many things you might keep very close to your heart.

One of these difficult financial decisions is declaring bankruptcy on your debts. This option might seem ill-advised and hasty as compared to other options available in the market. Of course, DMP and IVA seem rational when compared to bankruptcy in any circumstance. You get to keep a few of the assets and you can avoid most of the annoying dealings with the creditors. But what many people fail to realize is that IVA and DMP setup also causes significant charges which you won’t be able to afford if you have zero personal savings or disposable income. Bankruptcy remains the only valid option. The label of being bankrupt is hard to swallow but one must be strong in their conviction.

With a bankruptcy, you can reclaim your credit score in one or two years. It gives you a chance to rebuild from the ground up and make sure you have enough funds to restart your life. In bankruptcy, the creditors have no right to any repayment. Your assets and funds, however big or small they may be, are used to settle the debts. This works in favor of those with no sizeable assets and high amounts of debt.

Don’t take the step of declaring bankruptcy, consult IVA talking to an expert financial consultant first!

Make Your Own Financial Plan

Forget what you have read everywhere, there is no set path to financial freedom. Debt is specific to everyone and the types of steps you need to take to absolve yourself of it are unique to every person. This is why excellent financial consultancy services are so in demand, they provide customized and tailor-made solutions for every consumer. This also means that the repayment plans provided by the banks, credit companies, and the payday loan firms are not customized according to the individual circumstances. So you need to be very wise about which plan to follow.

This also means that you absolutely should not follow the example of others in the community. If one of your friends successfully navigated the crushing credit card debt without any guidance or your uncle survived bankruptcy gracefully, that is not an endorsement of imitation. Be very sure about the path you want to take. There is no secret shortcut to financial success and whoever tells you there is, is either trying to sell something or lying to you. People often tend to hide their financial difficulties for the benefit of their relatives and acquaintances as well. So keep that in mind.

This advice does not mean that you completely ignore the advice and experiences of those close to you. All we can suggest is that you keep a suitable amount of caution and apprehension in mind. Add your own ingenious touch and the advice of experts before emulating any plan that might have worked for someone else. Remember that your debt is solely your responsibility. Whether the plan works or not, you have to be ready for the consequences. So pick between the options wisely and keep a contingency plan in reserve.

Get advice from financial and debt experts contact us.

Debt in Times of COVID-19!

The self-isolation is imposed over most of the civilized nations of the world. It is tempting that one must be getting into depression and cabin fever when stuck inside for so long with limited means of entertainment and joy. The outside world s blooming and most of us are stuck inside, waiting for the all-clear signal. The situation certainly sounds dreadful but there is a way it can be even more dreadful. It is common knowledge that alone and idle mind is the devil’s workshop. You might not believe in the devil, but the biggest material devil in this world is debt.

Long term debt is scary and it seems like a mountain that grows taller every time you look at it.  You are probably not wrong, your debt is increasing every day. COVID-19 has exponentially raised expenses and started consuming savings. Many people have been laid off from their jobs. To ensure bare bones survival, people are forced to tap into their hard-earned savings to gather rations for multiple weeks at a time. This is because of the enforced lockdown which shows no sign of being letting up anytime soon.

The worst thing to do at this time would be to exacerbate your credit card and payday loans. Shopping for non-essentials is great therapy in normal circumstances when you have a steady income and enough savings to fall back. Don’t go on an online shopping binge during COVID-19. We also suggest getting only the necessary grocery items instead of many snacks and trimmings you will never consume. This is the only way you can control your debt and stop it from skyrocketing during this crisis.

Yes, we know that many retail companies are offering outrageous discounts and the loan companies are also offering discounted interest rates and delayed payments. All of this sounds like a dream bargain. But if it isn’t free, give it up. Sooner or later you will have to pay for it. Use cash and not credit. Survive this crisis smartly with advice from our financial experts.

Easy Ways to Maintain a Budget | Financially Insecure Folks

financially-insecure-solution2debts

Budgeting-Budgeting-Budgeting. It is the one word which is the bane of existence for all the debtors and financially insecure folks. We know it is hectic to turn anywhere for financial advice and just read the word budgeting. Budgeting is termed as the simplest way to get out of financial trouble. According to experts, you can save a major chunk of your earnings as well if you just budget correctly. Even our knowledge hub hosts multiple entries on why budgeting is necessary. While we are sure you get the gist, you might be a little lost as to how to effectively budget without living hand to mouth. The key points can be found easily on our knowledge hub, but this entry tells you in better detail just how to maintain and formulate a perfect budget.

For any self-respecting adult, a budget should not be a scary word. It should be a given when considering the care and maintenance of finances. Budgeting will only help you if you integrate it fully in your life. Don’t let it go out of hand with wasteful expenditures. Money is easier to track with a budget. Non-essential expenses can be pointed out in an instant and any wasteful expenses can be flagged and so you have a feeling of being financially insecure. The essential expenses are put into perspective and even those can be optimized by techniques like bulk-buying or bargain hunting. It is a rule of thumb that these essential expenses should not cost more than half of your total expenditures. This leaves room for emergency expenses and insurance payments.

The rest of the income should be divided up in the following pattern. 10-20% of your income should be designated for investments and future savings. This can include a retirement fund if your employer doesn’t have any arrangement in place or if you aren’t investing in a government-backed retirement scheme. A separate emergency fund of at least 10-15% of your remaining income is also a necessity that saves you from borrowing cash any time the need is dire.

Living below your means is also important when you have a budget in place.  Avoid overspending and plan elegantly. This is the first step to financial independence and security.

Personalize your Finances – An Easy Way to Financial Security

Debts usually cause an immense amount of stress and fretting in our lives. While many people make the burden go away with well-timed payments, few are not so lucky. Experts suggest building a budget and sticking to it. However, that might be next to impossible if personal discipline is not present in the debtor. To instill this quality, one of the most optimal ways to make your debts disappear take personal offense to the bad state of your finances. Making this perspective shift does not mean that you have to be secretive regarding your financial health or circumstances. It merely means that the only finances you should be concerned with are your own. Under no circumstances should you carry the stress of other matters to your financial health.

One of the biggest hurdles that stop us from getting rid of our debts is the need to be social about finances. The need to buy luxury brands and to show off wealth is almost a disease in modern times. Do not fall into that trap. Buying things you don’t need just to impress other people is poison to your finances. Be mature about your income and expenses. Let your budget be your guide. Make overspending a personal offense. What others do or don’t do shouldn’t concern you. You must keep your financial sanity in perspective.

While this whole process may seem overly strict and regressive, you must keep in mind that the alternative is bankruptcy or mush worse. A little conscientiousness on your part can go a long way in developing healthy finances. Don’t fret about the correct way to do things. Be objective with personal expenses and subjective with savings. Everyone finishes the given tasks in their own time. Even if it takes you a long time to get your finances in order, keep working at it. Don’t let the initial troubles turn you away. The long-term rewards are more than worth it. Invest in yourself. Invest the time, energy and money to teach yourself the skills you need.

Once you understand this, you can personalize your financial stability successfully and make sure your monetary resources stay secured. This advice is also great if you find yourself in debt or bound with a long term debt solution like DMP or IVA. Follow our knowledge hub to get more specific expert advice on these topics.

Don’t Put Your Life on Hold- Live Debt Free

Debt could be a scary notion for the people who have not defeated it successfully. Every success story on the internet seems far-fetched and unrealistic. On the contrary, with conduct with proper discipline, the debt, as well as the creditors, can be appeased in no time. IVA is another good option if you need the discipline to spend smartly. The benchmark to successful debt planning is to evaluate if you have money left over after spending on necessities. If you do, you can afford to pay off your debt. For this to happen, you must focus on making cuts wherever you can and not overspending at the first possible inclination.

Some people suggest frugality or living below your means as the perfect solution to debt-management. However, a better option might be to go steadily towards the goal, one step at a time. There is no requirement of cutting pleasure and leisure from your life either. This is important due to the notion that freedom and financial stability must be a permanent state of being instead of just a small method to employ whenever the debt piles up.

The meaning of this is that you can’t make every debt disappear with a wave of the wand. Rather, you have to actively work towards it. There is also no provision of borrowing more debt to pay off the previous debts. You need to be aware of your requirements for today and tomorrow, and you need to behave according to it.

Every debt management process, even the professional ones, begin by making up a stringent budget. The rest depends on your inclination and determination to stick to the plan. Many different ways are available in financial markets to resolve liability like DMP or IVA. Even those ways need a strict discipline for them to work. Learn what our experts offer to follow this method of budgeting. There is a lot of advice out there to resolve the debt. Listen and follow well and you will overcome.