All Hands On Debt!

ALL НANDS ON ~DEBT! Once you've gotten into debt, it can feel like you are drowning. Here's a little something we put together to steer you in the right direction, and keep you afloat. Credit Cards The US currently holds a little under 1 trillion dollars in outstanding credit card debt. With the average intérest rate of over 14% this can be very expensive money to borrow. Also, with "Universal Default" if you miss 1 payment on 1 card all of your credit cards have the authority to increase to their maximum rate. Imagine having 4 credit cards with an average interest rate of 14% and now they are all at 30%. In most states unpaid credit cards issurers have the ability to sue you, garnish wages, attach liens to your property and in some cases bank levies. Be careful not to get in over your head here. Payday Loans Ever heard the term "Loan Shark"? The interest on these loans can be as high as 911% for a one week loan. Stay away!! Medical This one is tough because the high cost of medical insurance has put it out of reach for some families. If you find yourself in a position of needing expensive medical treatment with no insurance you may be able to negotiate with the hospital or debt collector for lower than owed. IRS |I|I The IRS doesn't mess around. If you owe them you need to figure a way to work with them. Their interest rates can be very high and non-payment can land you in jail. The IRS does have programs and for the most part they are willing to work out a repayment plan. Car Loans Cars are a necessary luxury in today's world. The challenge with auto loans is they are a secured debt. Meaning, if you don't pay the car loan, they will come and take the car back from you. With most car purchases you have lost money the moment you have purchased it, especially if you buy new. Here is a tragic scenario: You find a brand new $30,000 car you love and the payments are affordable. Then, 6 months later you no longer have the ability to pay the car loan and they repossess the car from you. That is the beginning of your problems. Let's say you've paid off $1,000 of your car but it has gone down in value by $8,000. Now you no longer have a car and you owe the finance company $7,000. This now becomes an unse- cured debt and the creditors effectively act like a credit card company when it comes to collection tactics and abilities to sue. Retirement Loans Loans against your 401K are typically not agood idea because that is your money to retire with. Social Security will run out of money by 2036 and only be able to pay a percentage of what is promised to you. With a depleted 401k and a less reliable Social Security system you could be heading for financial ruin in your elder years. Not good. Mortgages With home prices declining you may be interested in purchasing a new home. Mortgages themselves can be considered "good debt" because the interest is tax deductible. The real worry is ARM's (adjustable rate mortgages). Rates are so low that if you cannot afford a 30 year fixed loan payment you may want to wait to take the plunge until you can afford it. The reason being is that if and when rates adjust higher the impact will be dramatic to your monthly payment and could push you toward foreclosure. Student Loans The US currently holds about 1 Trillion in outstanding Student Loans making it almost impos- sible for students coming out of college to afford their loan payments. Before you sign for your student loan do research and see how much your monthly payment will be and whether your expected income will be able to service that debt comfortably. Although there are programs that may help to ease payments of student loans the majority are federally backed and are very difficult to be forgiven. Check to see if you qualify for Grants or Scholarships. Alimony The divorce rate in the US is roughly 50%. If you're on the losing end of an alimony battle you may have a debt that can stay with you for roughly 1/2 of the time you were married. 10 years of wedded bliss can turn into 5 years of debt hell. Personal Debt The biggest challenge with personal debt is that most is done through people you know and maybe even care about. Imagine you can't pay back your brother or friend. These are the cases you see on People's Court. References Cited: http://www.bloomberg.com/news/2012-02-16/ http://www.zillow.com/mortgage/help http://www.creditcards.com/credit-card-news http://www.leaseguide.com http://community.lawyers.com/forums/t/88575.aspx http://www.irs.gov http://frugalliving.about.com/od/beautyhealthcare http://www.consumersunion.org/finance/paydayfact.htm http://www.ssa.gov/oact/TRSUM/index.html http://www.california-alimony-laws.com édebtadvice.og O Copyright 2012 ALL НANDS ON ~DEBT! Once you've gotten into debt, it can feel like you are drowning. Here's a little something we put together to steer you in the right direction, and keep you afloat. Credit Cards The US currently holds a little under 1 trillion dollars in outstanding credit card debt. With the average intérest rate of over 14% this can be very expensive money to borrow. Also, with "Universal Default" if you miss 1 payment on 1 card all of your credit cards have the authority to increase to their maximum rate. Imagine having 4 credit cards with an average interest rate of 14% and now they are all at 30%. In most states unpaid credit cards issurers have the ability to sue you, garnish wages, attach liens to your property and in some cases bank levies. Be careful not to get in over your head here. Payday Loans Ever heard the term "Loan Shark"? The interest on these loans can be as high as 911% for a one week loan. Stay away!! Medical This one is tough because the high cost of medical insurance has put it out of reach for some families. If you find yourself in a position of needing expensive medical treatment with no insurance you may be able to negotiate with the hospital or debt collector for lower than owed. IRS |I|I The IRS doesn't mess around. If you owe them you need to figure a way to work with them. Their interest rates can be very high and non-payment can land you in jail. The IRS does have programs and for the most part they are willing to work out a repayment plan. Car Loans Cars are a necessary luxury in today's world. The challenge with auto loans is they are a secured debt. Meaning, if you don't pay the car loan, they will come and take the car back from you. With most car purchases you have lost money the moment you have purchased it, especially if you buy new. Here is a tragic scenario: You find a brand new $30,000 car you love and the payments are affordable. Then, 6 months later you no longer have the ability to pay the car loan and they repossess the car from you. That is the beginning of your problems. Let's say you've paid off $1,000 of your car but it has gone down in value by $8,000. Now you no longer have a car and you owe the finance company $7,000. This now becomes an unse- cured debt and the creditors effectively act like a credit card company when it comes to collection tactics and abilities to sue. Retirement Loans Loans against your 401K are typically not agood idea because that is your money to retire with. Social Security will run out of money by 2036 and only be able to pay a percentage of what is promised to you. With a depleted 401k and a less reliable Social Security system you could be heading for financial ruin in your elder years. Not good. Mortgages With home prices declining you may be interested in purchasing a new home. Mortgages themselves can be considered "good debt" because the interest is tax deductible. The real worry is ARM's (adjustable rate mortgages). Rates are so low that if you cannot afford a 30 year fixed loan payment you may want to wait to take the plunge until you can afford it. The reason being is that if and when rates adjust higher the impact will be dramatic to your monthly payment and could push you toward foreclosure. Student Loans The US currently holds about 1 Trillion in outstanding Student Loans making it almost impos- sible for students coming out of college to afford their loan payments. Before you sign for your student loan do research and see how much your monthly payment will be and whether your expected income will be able to service that debt comfortably. Although there are programs that may help to ease payments of student loans the majority are federally backed and are very difficult to be forgiven. Check to see if you qualify for Grants or Scholarships. Alimony The divorce rate in the US is roughly 50%. If you're on the losing end of an alimony battle you may have a debt that can stay with you for roughly 1/2 of the time you were married. 10 years of wedded bliss can turn into 5 years of debt hell. Personal Debt The biggest challenge with personal debt is that most is done through people you know and maybe even care about. Imagine you can't pay back your brother or friend. These are the cases you see on People's Court. References Cited: http://www.bloomberg.com/news/2012-02-16/ http://www.zillow.com/mortgage/help http://www.creditcards.com/credit-card-news http://www.leaseguide.com http://community.lawyers.com/forums/t/88575.aspx http://www.irs.gov http://frugalliving.about.com/od/beautyhealthcare http://www.consumersunion.org/finance/paydayfact.htm http://www.ssa.gov/oact/TRSUM/index.html http://www.california-alimony-laws.com édebtadvice.og O Copyright 2012 ALL НANDS ON ~DEBT! Once you've gotten into debt, it can feel like you are drowning. Here's a little something we put together to steer you in the right direction, and keep you afloat. Credit Cards The US currently holds a little under 1 trillion dollars in outstanding credit card debt. With the average intérest rate of over 14% this can be very expensive money to borrow. Also, with "Universal Default" if you miss 1 payment on 1 card all of your credit cards have the authority to increase to their maximum rate. Imagine having 4 credit cards with an average interest rate of 14% and now they are all at 30%. In most states unpaid credit cards issurers have the ability to sue you, garnish wages, attach liens to your property and in some cases bank levies. Be careful not to get in over your head here. Payday Loans Ever heard the term "Loan Shark"? The interest on these loans can be as high as 911% for a one week loan. Stay away!! Medical This one is tough because the high cost of medical insurance has put it out of reach for some families. If you find yourself in a position of needing expensive medical treatment with no insurance you may be able to negotiate with the hospital or debt collector for lower than owed. IRS |I|I The IRS doesn't mess around. If you owe them you need to figure a way to work with them. Their interest rates can be very high and non-payment can land you in jail. The IRS does have programs and for the most part they are willing to work out a repayment plan. Car Loans Cars are a necessary luxury in today's world. The challenge with auto loans is they are a secured debt. Meaning, if you don't pay the car loan, they will come and take the car back from you. With most car purchases you have lost money the moment you have purchased it, especially if you buy new. Here is a tragic scenario: You find a brand new $30,000 car you love and the payments are affordable. Then, 6 months later you no longer have the ability to pay the car loan and they repossess the car from you. That is the beginning of your problems. Let's say you've paid off $1,000 of your car but it has gone down in value by $8,000. Now you no longer have a car and you owe the finance company $7,000. This now becomes an unse- cured debt and the creditors effectively act like a credit card company when it comes to collection tactics and abilities to sue. Retirement Loans Loans against your 401K are typically not agood idea because that is your money to retire with. Social Security will run out of money by 2036 and only be able to pay a percentage of what is promised to you. With a depleted 401k and a less reliable Social Security system you could be heading for financial ruin in your elder years. Not good. Mortgages With home prices declining you may be interested in purchasing a new home. Mortgages themselves can be considered "good debt" because the interest is tax deductible. The real worry is ARM's (adjustable rate mortgages). Rates are so low that if you cannot afford a 30 year fixed loan payment you may want to wait to take the plunge until you can afford it. The reason being is that if and when rates adjust higher the impact will be dramatic to your monthly payment and could push you toward foreclosure. Student Loans The US currently holds about 1 Trillion in outstanding Student Loans making it almost impos- sible for students coming out of college to afford their loan payments. Before you sign for your student loan do research and see how much your monthly payment will be and whether your expected income will be able to service that debt comfortably. Although there are programs that may help to ease payments of student loans the majority are federally backed and are very difficult to be forgiven. Check to see if you qualify for Grants or Scholarships. Alimony The divorce rate in the US is roughly 50%. If you're on the losing end of an alimony battle you may have a debt that can stay with you for roughly 1/2 of the time you were married. 10 years of wedded bliss can turn into 5 years of debt hell. Personal Debt The biggest challenge with personal debt is that most is done through people you know and maybe even care about. Imagine you can't pay back your brother or friend. These are the cases you see on People's Court. References Cited: http://www.bloomberg.com/news/2012-02-16/ http://www.zillow.com/mortgage/help http://www.creditcards.com/credit-card-news http://www.leaseguide.com http://community.lawyers.com/forums/t/88575.aspx http://www.irs.gov http://frugalliving.about.com/od/beautyhealthcare http://www.consumersunion.org/finance/paydayfact.htm http://www.ssa.gov/oact/TRSUM/index.html http://www.california-alimony-laws.com édebtadvice.og O Copyright 2012 ALL НANDS ON ~DEBT! Once you've gotten into debt, it can feel like you are drowning. Here's a little something we put together to steer you in the right direction, and keep you afloat. Credit Cards The US currently holds a little under 1 trillion dollars in outstanding credit card debt. With the average intérest rate of over 14% this can be very expensive money to borrow. Also, with "Universal Default" if you miss 1 payment on 1 card all of your credit cards have the authority to increase to their maximum rate. Imagine having 4 credit cards with an average interest rate of 14% and now they are all at 30%. In most states unpaid credit cards issurers have the ability to sue you, garnish wages, attach liens to your property and in some cases bank levies. Be careful not to get in over your head here. Payday Loans Ever heard the term "Loan Shark"? The interest on these loans can be as high as 911% for a one week loan. Stay away!! Medical This one is tough because the high cost of medical insurance has put it out of reach for some families. If you find yourself in a position of needing expensive medical treatment with no insurance you may be able to negotiate with the hospital or debt collector for lower than owed. IRS |I|I The IRS doesn't mess around. If you owe them you need to figure a way to work with them. Their interest rates can be very high and non-payment can land you in jail. The IRS does have programs and for the most part they are willing to work out a repayment plan. Car Loans Cars are a necessary luxury in today's world. The challenge with auto loans is they are a secured debt. Meaning, if you don't pay the car loan, they will come and take the car back from you. With most car purchases you have lost money the moment you have purchased it, especially if you buy new. Here is a tragic scenario: You find a brand new $30,000 car you love and the payments are affordable. Then, 6 months later you no longer have the ability to pay the car loan and they repossess the car from you. That is the beginning of your problems. Let's say you've paid off $1,000 of your car but it has gone down in value by $8,000. Now you no longer have a car and you owe the finance company $7,000. This now becomes an unse- cured debt and the creditors effectively act like a credit card company when it comes to collection tactics and abilities to sue. Retirement Loans Loans against your 401K are typically not agood idea because that is your money to retire with. Social Security will run out of money by 2036 and only be able to pay a percentage of what is promised to you. With a depleted 401k and a less reliable Social Security system you could be heading for financial ruin in your elder years. Not good. Mortgages With home prices declining you may be interested in purchasing a new home. Mortgages themselves can be considered "good debt" because the interest is tax deductible. The real worry is ARM's (adjustable rate mortgages). Rates are so low that if you cannot afford a 30 year fixed loan payment you may want to wait to take the plunge until you can afford it. The reason being is that if and when rates adjust higher the impact will be dramatic to your monthly payment and could push you toward foreclosure. Student Loans The US currently holds about 1 Trillion in outstanding Student Loans making it almost impos- sible for students coming out of college to afford their loan payments. Before you sign for your student loan do research and see how much your monthly payment will be and whether your expected income will be able to service that debt comfortably. Although there are programs that may help to ease payments of student loans the majority are federally backed and are very difficult to be forgiven. Check to see if you qualify for Grants or Scholarships. Alimony The divorce rate in the US is roughly 50%. If you're on the losing end of an alimony battle you may have a debt that can stay with you for roughly 1/2 of the time you were married. 10 years of wedded bliss can turn into 5 years of debt hell. Personal Debt The biggest challenge with personal debt is that most is done through people you know and maybe even care about. Imagine you can't pay back your brother or friend. These are the cases you see on People's Court. References Cited: http://www.bloomberg.com/news/2012-02-16/ http://www.zillow.com/mortgage/help http://www.creditcards.com/credit-card-news http://www.leaseguide.com http://community.lawyers.com/forums/t/88575.aspx http://www.irs.gov http://frugalliving.about.com/od/beautyhealthcare http://www.consumersunion.org/finance/paydayfact.htm http://www.ssa.gov/oact/TRSUM/index.html http://www.california-alimony-laws.com édebtadvice.og O Copyright 2012 ALL НANDS ON ~DEBT! Once you've gotten into debt, it can feel like you are drowning. Here's a little something we put together to steer you in the right direction, and keep you afloat. Credit Cards The US currently holds a little under 1 trillion dollars in outstanding credit card debt. With the average intérest rate of over 14% this can be very expensive money to borrow. Also, with "Universal Default" if you miss 1 payment on 1 card all of your credit cards have the authority to increase to their maximum rate. Imagine having 4 credit cards with an average interest rate of 14% and now they are all at 30%. In most states unpaid credit cards issurers have the ability to sue you, garnish wages, attach liens to your property and in some cases bank levies. Be careful not to get in over your head here. Payday Loans Ever heard the term "Loan Shark"? The interest on these loans can be as high as 911% for a one week loan. Stay away!! Medical This one is tough because the high cost of medical insurance has put it out of reach for some families. If you find yourself in a position of needing expensive medical treatment with no insurance you may be able to negotiate with the hospital or debt collector for lower than owed. IRS |I|I The IRS doesn't mess around. If you owe them you need to figure a way to work with them. Their interest rates can be very high and non-payment can land you in jail. The IRS does have programs and for the most part they are willing to work out a repayment plan. Car Loans Cars are a necessary luxury in today's world. The challenge with auto loans is they are a secured debt. Meaning, if you don't pay the car loan, they will come and take the car back from you. With most car purchases you have lost money the moment you have purchased it, especially if you buy new. Here is a tragic scenario: You find a brand new $30,000 car you love and the payments are affordable. Then, 6 months later you no longer have the ability to pay the car loan and they repossess the car from you. That is the beginning of your problems. Let's say you've paid off $1,000 of your car but it has gone down in value by $8,000. Now you no longer have a car and you owe the finance company $7,000. This now becomes an unse- cured debt and the creditors effectively act like a credit card company when it comes to collection tactics and abilities to sue. Retirement Loans Loans against your 401K are typically not agood idea because that is your money to retire with. Social Security will run out of money by 2036 and only be able to pay a percentage of what is promised to you. With a depleted 401k and a less reliable Social Security system you could be heading for financial ruin in your elder years. Not good. Mortgages With home prices declining you may be interested in purchasing a new home. Mortgages themselves can be considered "good debt" because the interest is tax deductible. The real worry is ARM's (adjustable rate mortgages). Rates are so low that if you cannot afford a 30 year fixed loan payment you may want to wait to take the plunge until you can afford it. The reason being is that if and when rates adjust higher the impact will be dramatic to your monthly payment and could push you toward foreclosure. Student Loans The US currently holds about 1 Trillion in outstanding Student Loans making it almost impos- sible for students coming out of college to afford their loan payments. Before you sign for your student loan do research and see how much your monthly payment will be and whether your expected income will be able to service that debt comfortably. Although there are programs that may help to ease payments of student loans the majority are federally backed and are very difficult to be forgiven. Check to see if you qualify for Grants or Scholarships. Alimony The divorce rate in the US is roughly 50%. If you're on the losing end of an alimony battle you may have a debt that can stay with you for roughly 1/2 of the time you were married. 10 years of wedded bliss can turn into 5 years of debt hell. Personal Debt The biggest challenge with personal debt is that most is done through people you know and maybe even care about. Imagine you can't pay back your brother or friend. These are the cases you see on People's Court. References Cited: http://www.bloomberg.com/news/2012-02-16/ http://www.zillow.com/mortgage/help http://www.creditcards.com/credit-card-news http://www.leaseguide.com http://community.lawyers.com/forums/t/88575.aspx http://www.irs.gov http://frugalliving.about.com/od/beautyhealthcare http://www.consumersunion.org/finance/paydayfact.htm http://www.ssa.gov/oact/TRSUM/index.html http://www.california-alimony-laws.com édebtadvice.og O Copyright 2012