Unsanctioned Financial Advice

This credit advice is not available anywhere else. Before proceeding, I did not renew my financial advice license and allowed it to expire. This advice is very real and totally unsanctioned; therefore, I am speaking from personal experience and not the guidebook of successful debt relief.

People think paying the mortgage is the most important task; however, paying property taxes is the most important task. Government will take the property when defaulting on property taxes. Banks want money so will make arrangements, even offer an "income based" loan. Income based loans are based adjusted according to income; therefore, the payment is nothing when you don't have reportable income. Financial Aid and consolidated debt loans also offer income based payment option wherein if a person's income is zero, they pay $0 a month. A down payment is required; however, after having the loan a person may pay nothing for three years and the loan is listed as current on credit reports. This is an amazing amount of time to get your life together.

Everyone has money problems sometime during their life. Recently, lucky people kept a job, while millions of people lost their main source of income early or late in their careers and job opportunities are not improving. This is causing extreme debt situations. As a person who takes risks, I have been in and out of debt and never went to the government for assistance. So what is the hard knocks way to pay off debt in seven years or less? (The Bible recommends paying debt within seven years; otherwise, the debt is forgiven by the creditor. This sounds okay, yet the premise seems to imply God evens the balance.)

A person has to prioritize assets by importance. A person looking for a job will need essentials: shelter, food, clothing and transportation. Everything requires payments. In the lofty world of ivory towers parents buy a car or everyone already saved money to own, operate and license a car. The reality of most people's life is living beyond means equals opportunity; ergo a vehicle costs $200 to $700 a month.

Sell the car or get a used car. Your family might afford a $5,000 previously owned vehicle. Keep the title in another family member's name. Titles in other people's names are genius. You can use it without owning it; therefore, it does not qualify as an asset in a bankruptcy hearing. With one action we resolve two problems: reducing expenses and protecting essential assets. Despite what creditors say, a person needs assets and tools to earn income; ergo, pay them back.

If you don't need a car, walk, own a bicycle or ride-share. Get the least expensive car insurance, register the car and get emission testing. There is a huge fine for not carrying insurance or driving an unregistered car. Take care of everything in advance, because it will cost the same. Even if having to take a day off work to go to court and provide proof of insurance and registration to have the fine reduced.

Next, is managing collection calls. People qualify for "hardship" when unemployed or making a scarce income. Credit card companies cannot force a person in hardship to make payments; therefore, they are always the last person paid. Call avoidance is great. Frankly, as a well-intentioned person I will payoff the debt when making a regular income again. Until then, even a fifty dollar payment creates a risky situation like homelessness. Without regular income, a person is reliant on family and friends, so lessen burden. A person living off of someone else is eating off the bones. The person donating the cash already earned the cash. They made personal sacrifices and worked long hours, so they get to eat the meat. A person in hardship has to learn how to survive on hardly anything and work towards getting their own steak.

I made the debts. I pay the debts. It is my responsibility and no one else's; therefore, I will not be asking people to pay it for me now and pay them back later. It is also nice to help those helping to survive. When you need something like a business suit for job interviews, food or a functional loan fitting into a plan involving becoming independent they are happy to help.

Sitting around watching television, taking vacations and going to parties could result in income. Perhaps they were really calm at the job interview? A better idea is too put money into savings whenever possible, because that is how a person eventually pays debt. A person may wonder how a person puts money into savings when they have debt. Money in savings is the investment needed to make enough money to pay debts. When a person pays a debt they still have debt and lose the means to make money. In addition, when a person pays a lump sum, they end up paying what they really owe. Creditors hundreds of dollars in fees, which is equivalent to 40% interest on a loan. Get 30% off paying it back in a lump sum which honors the agreement of 10% interest on the loan.

Life is not an endless handout. Plan to pay off debts. There is a great personal reward associated to knowing the endurance and skills to get through difficult times and rise above. Personal empowerment comes from finding the least amount necessary to survive and pitting capabilities against surmounting odds, even when painting someone's home to pay off family and friends through labor. If a person can live on virtually nothing, while paying back what they owe, when making money again they have everything they need to survive and thrive when identifying goals and spending effectively. The future becomes limitless.

Realted Article
Day Trading Rules
Planning a Real Business
Startup Follies