Personal debt has become a real problem in our society.
Whether you’re poor, rich or middle-class, your debt level
can make you feel like giving up on your dreams of
financial independence comfortable living. Do you want to
get out of this situation? The five helpful hints listed
below will help. Guaranteed.

The following steps are really quite easy. All it takes
is your commitment. You can do it. Imagine the feeling of
relief and happiness when the debt has been lifted from your
shoulders. It will all be worthwhile. Ready to get stated?
Let’s go.

Tip #1. Work out your current financial position.
It may have been a while since you took stock of your
financial position. Could this be the reason you’re in a
spot of bother now? You need to consider your financial
position now.  Unless you know your starting numbers you
won’t know what to fix. Correct?
Just get a paper and pen and your latest credit card
statements and review the situation, fearlessly. List out
all your debts and their interest rates and the minimum
monthly repayments.
Don’t get too concerned about how much is owed. It’s been
often reported that anyone can pay off all their debts
within 5-7 years, this includes your mortgage. That means
you too.

Tip #2 Stop living beyond your means - NOW.
You have to stop the rot, and this is the first thing to
do. Review your living expenses and do without those things
you can’t afford. Also, destroy all the credit cards except
one for emergencies and promise yourself you’ll only
spend what you can afford from the cash coming in.

Tip #3. Get those debts under control.
Once you have grasped the meaning of Step #2, the next
thing to do is to find some ways to put more money aside
every week or month, to start paying down those debts. Pay
as much as you can manage.  Do without if you have to. Pay
down the debt with the highest interest rate first. Then, if
there still a choice with credit cards costing the same
interest rate pay off the credit card with the smallest
balance first. This will give you a lift when you’ve
paid it off, and the incentive to keep going.

Tip #4. Build a Savings Fund
Once you have those credit cards under control it’s time to
think about  putting some funds aside to start building
some savings. You’ll be surprised how fast your money grows
if you religiously keep adding to the balance and don’t
touch it. If you really need to purchase an expensive item
like furniture or a car it is better to save for it than to
borrow, if at all possible.

Tip #5. Pay off the mortgage faster.
This item has be left till now, because the value of your
home asset is increasing - unlike your household expensive
purchases such as furniture, car, TV and video. Just by
putting a few more dollars into your mortgage repayment,
you can substantially reduce the period of your mortgage.

These few helpful hints are offered to help you get back on
your feet financially. The first task is to eliminate that
credit card debt. Once you have control of this then you
can use the free funds to build a savings reserve and
reduce the term of your mortgage. That’s the plan that
works.
So, why not get those documents out, do the calculations,
make the effort and start on your road to financial
freedom.

Not saving for emergencies and your future? Like to know
how? Click on this link.
http://www.freedom-personal-budgets.com

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What is your wealth quotient? And, when do you know you have achieved “wealth?”

For the purposes of this article, wealth is defined as an income level derived from passive sources that allows you to live without depending on a job. Passive sources are any income source that throws off a positive cash flow, that you can bank or spend. For example, the cash left over from a rental property after all expenses are paid, is passive income. Likewise, interest from a certificate of deposit, or dividends from stock investments, are examples of passive income. With this definition in mind, the key to creating wealth is to figure out how to create and build passive income sources. To measure my progress in this area, I use a simple formula:

Passive income divided by your total living expenses = wealth quotient

Consider this example: If you had $1,200 per month in passive income from a real estate investment and your cash savings account, and $4,500 in monthly expenses to survive (house payment, household expenses, etc), your wealth quotient equals: Continue Reading »

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Filing for bankruptcy issues an automatic stay from most action against the debtor from things like a foreclosure, lawsuit and even garnishments. The stay was enacted to keep the debtors property protected but the stay is not permanent. If you are a creditor they try to get relief from the stay by going after the debtor they must consult the judge assigned to the case first. There may be a hearing that the creditor must show cause as to why they wish to collect before the discharge of the bankruptcy.

A creditor that is seeking relief from the stay in order to go ahead against the debtor the property of the debtor must be able to proof to the bankruptcy judge during a hearing that there is enough cause for granting the relief or lift of the stay. Cause may be proven by showing that the interest of the creditor is not really protected or by showing the judge that the debtor has no real equity in the property and the property itself is not needed in order for reorganization through Chapters 11 and 13. Continue Reading »

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