Welcome To Debt Consolidation Trust

National DebtThe U.S. national debt is over $16 trillion. That is an almost incomprehensible number. It means that each U.S. citizen's share of the debt is over $52,000. While that's scary, it's actually not as scary as your personal debts. The federal debt seems unresolvable at this point, but your debts are fully collectable in one way or another.

Those are the debts that you absolutely have to repay or creditors will call you day and night, threaten to take your property, or even garnish your paycheck. You could be sued for any unsecured debt (i.e. credit cards and personal loans), your wages forcibly taken from you, or you could lose your home. You're already headed down that path. You're tired of the phone calls, the letters, and the fact that you never seem to have enough money at the end of the month to pay all of your bills. It doesn't have to be that way.

Here's The Real Problem

Financial problems rarely spring out of nowhere. There are always warning signs. That's not to say that your financial problems are always your fault. Maybe you're just not good with budgeting money. Maybe you were never taught how. Maybe you got slammed with unexpected medical bills but had no savings Debt Budgetto pay for them.

Regardless of how you got here, you need to uncover the root cause of your current financial situation and develop a plan that will:

  1. Put your financial life back together
  2. Prevent future problems

The best way to do this is to work with financial experts that know how to create bulletproof budgets that really work, can help you get out of debt quickly, and can help you restore your good credit. At the end of it, you shouldn't just be "debt free," you should be financially secure. You should be in a good place, financially, and you should feel confident that you can take on the world without running into any problems down the road.

Setting a budget is more important than you might think. If you don’t know how much you can afford to spend each month based on the income you’re bringing in, there is a possibility you’re overspending. If you’re overspending on some of your wants instead of needs, you could end up in a rough financial situation where you’re unable to afford the cost of your bills and other living expenses. You can save yourself a lot of financial stress by simply sitting down, reviewing your finances, and then setting a budget you can stick to.

There are certain expenses you’ll have each month, which may include the cost of rent for your apartment, the cost of various utility bills, the cost of gas for your vehicle, and any car payments you need to make. After figuring out exactly how much you’re earning each month, you can deduct your monthly expenses to see what you’re left with and then decide what to do with the rest.

While you may be left with hundreds of dollars, that doesn’t mean you should spend the money on things you don’t really need, such as extra clothes you may not wear or fast food that isn’t good for you anyway. It’s a good idea to set aside a certain amount of your earnings into a savings account. By putting money into a savings account, you’re essentially saving for your future, which is genuinely important because you want to be able to live a financially comfortable life in the future and this is where https://www.manningrushworth.co.uk/ come in, they are experts in personal finance so can help you make sound choices.

It doesn’t hurt to treat yourself from time to time, but there is no reason to constantly spend on items you don’t truly need. You’d waste money that could’ve been saved for a rainy day. You never know if you’ll have an emergency with your vehicle where you’ll need repairs and you never know when the extra funds will come in handy for you.

Overall, setting a budget is important. It’s something you need to do if you’d like to live a financially comfortable life now and in the future. Instead of spending all your earnings, you can set some of your money into a savings account and hold onto it for a time when you’re going to need it. In the meantime, you can make sure you’re paying all your regular monthly expenses on time instead of making late payments.



Why Financial Planning Is Important For Everyone

A lot of people assume that financial planning is something that only wealthy people need to worry about.  However, this is something that every person should consider for a number of reasons.  It is essential that you understand why financial planning is important and why you need to look at this.

Helping You Define Your Financial Goals

When you look at financial planning, the first question you are going to be asked is what your financial goals are.  Having financial goals is important because it will help you save your money and make your money work for you.  Couples who complete this task on their own will also be able to see if they are on the same page in terms of their joint goals.  

While setting your goals is important, financial planning will also help you determine if these goals are realistic.  Most financial goals that people set will be achievable, but the time frame given for the goal makes it unrealistic.  Financial planning will help you determine if you can meet the goals you have set and how to adjust them to be more realistic, check out Hensoncrisp.com for more information.

Bringing Your Spending In Line With Your Goals

Once you know where you are heading with your finances, you will be able to get other aspects into line.  Your spending is what will generally stop you from achieving the goals that you set.  Fortunately, financial planning will help you see where you have a negative cash flow and help you determine which expenses are too high.  

The exercise of analysing your expenses might surprise you as most people do not realise how much they are actually spending.  The morning cup of coffee that you buy adds up over the month, but this does not generally register because it is only a few pounds each day.  Once you know how much you spend on everything per month or per year, you will be able to see where you can realistically cut back to ensure that you reach your financial goals.

Determine Your Money Mistakes

Other than spending too much, there are other mistakes that you could be making with your finances.  When you look at every aspect of your finances as part of financial planning, you will be able to detect these mistakes and see what the fixes are.  One of the most common issues that people find relates to their credit cards.

Credit cards are great to have, but spending on them can easily get away from you.  If you are not paying the full statement balance each month, the interest will cause problems.  You might find that you are paying 18% in interest and this can make you question if you are making the same rates on any of your investment.  These mistakes can help you identify problems in your finances and give you the push you need to look for new investments and alternative income streams.


Debt Management Options & Resources

Debt Consolidationdebt-counselor

Consolidation is when you take multiple loans and combine them into a single loan. Why would you want to do this? The most basic reason is that it keeps things simple. When you have one loan, instead of several loans, you only have to worry about making one monthly payment for all of your debts. However, simplicity isn't the only benefit to consolidation. By having one loan, you can often get a lower interest rate (since the loan isn't a credit card) and stretch out the monthly payments for a longer period of time. All of this lowers your monthly payment, making your debts more affordable.

The downside to consolidation is that you might pay more total interest than you would with each individual loan. Additionally, some consolidation loans have a lower rate of interest because the bank secures your home as collateral. If you fail to make payments, the bank could take your home. This is why any consolidation plan needs to be combined with a solid budgeting plan.

Debt Settlement

Settlement is when you negotiate with your creditors to lower the total debt you owe. In most cases, the settlement process works because the creditor believes that you will never be able to pay off the full amount of the debt. Many debt negotiations stipulate that a lump sum amount must be paid to settle the debt. Because of this, debt settlement plans typically take 2 to 4 years to complete. During the negotiation process, you are required to put money into an escrow account so that the creditor can be paid.

Because you're paying less than the full amount you owe, the creditor will often send a negative or derogatory remark to the major credit bureaus. This negative remark reflects badly on you, and will hurt your odds of obtaining credit in the future. In other words, debt settlement trashes your credit for several years, which is the main drawback of this approach. Because the settlement process has such a negative effect on your credit, it's always best to combine any settlement plan with credit counseling.

Credit Counseling

Consumer Credit Services vary by company, but most of them focus on at least two areas: budgeting and credit restoration. Helping you build a budget is a very important part of getting out of debt and staying out. What's more, the budget has to be meaningful to you, and it has to be something you'll stick with. Counselors are trained professionals that can help you make a good budget that you'll stick to. Many counselors can also help you build your credit back up over time. Once you're doing a good job with your budget, you will learn how to start applying for credit again, how to responsibly use credit cards and loans, and how to keep tabs on your credit report.

The Truth About Bankruptcy

Bankruptcy is often seen as the easy way out, but it's not. When you think of bankruptcy, what do you think of? You might think that bankruptcy wipes out all of your debts so that you don't have to pay them. That's not necessarily true. In fact, bankruptcy laws now require you to go through something called "means testing." This is done by a court, and it determines whether you qualify for a Chapter 7 bankruptcy (i.e. you don't have to repay your debts) or whether you only qualify for Chapter 13 (much more common, and you have to repay all of your creditors). Bankruptcy looks worse than debt settlement on your credit report, and it lasts for at least 7 to 10 years.

Where To Go From Here

How do you know credit counseling, debt settlement, or debt consolidation will help you? You don't. In fact, if you never pick up the phone and call, you'll keep doing the same kinds of things you're doing now. That doesn't solve anything, but it does leave you with the constant pain of having to face your creditors tomorrow, the next day, the day after that...

Imagine life without debt. Imagine that burden being lifted off your shoulders. It might be hard to remember, but there was a time when you didn't owe all this money. Wouldn't you like to be in that place again? Soon? It doesn't cost you anything to talk to a Debt Consolidation Trust representative.