What are Pros and Cons of debt consolidation?

It is true that someone who has many debts to pay is always distressed and even buried in depression, if he is going through financial crisis. Car loans, home loans, education loans, credit card loans and so on are basic necessities of a middle class man in this world running at the pace of light. But when all these climb on your head like termite after consuming your pockets, it becomes very hard to cope with the hassle circumstances. Debt consolidation, in that situation, comes up as a sigh of relief. But when anything is related to our money and financial management, it is very important to count on each advantage and disadvantage of it.

debt consolidation

Debt consolidation has its own pros and cons which you should explore before going for it.

Pros

Debt consolidation means to club all your debts and loans into one, which reduces interest rates that is a great thing to trim extra pay offs. All you have to fret about is one-time payment. One very important and aiding advantage of debt consolidation is that you stop getting calls and notices from banks and collection agents. When there is no one to trouble you by calling everyday asking for money, your psychological health becomes positive and this makes you constructive in your thoughts and production at your work. Debt Consolidation Company purchases your worries from the collection agents and pays off credit reporting companies.

If you opt for consolidate debt, it saves you from being declared bankrupt, how good this deal is, only a big debt holder knows. By devising a financial budget and with the help of consolidate debt, you can start to improve your reports and credit stores.

The best thing is you can start your financial management afresh where you can avoid all the wrong decisions you’ve made in past. There will be no one to give you frowns while you do this.

Cons

Once the funds are available, People often fail to manage their finance again causing themselves commit the same mistakes that they’ve done in past. It brings in more problems and accumulates more debts and financial obligations. Consolidation loans give you long timelines like 10 to 30 years to settle your one-time debt which however saves you from debts to pay on short tenures that too at high interest rates. For all this time, your assets or your property remains mortgaged tied to a home equity loan usually. This means your debt consolidation loan is given against the value of your assets which are kept mortgaged. If you fail to pay the consolidate debt, you end up losing your home and assets.

If you analyze deeply, you’ll get to know that in the end you will land paying more over several years than it had to be on short tenures. To burden you in the end, you’ll incur penalties like late fees or so.

So, before going to opt for a consolidate debt, you must be self-aware and calculative in your approach. Once you take a consolidate debt, you should manage your financial structure well in order to refrain these hassles circumstances again.

Save Money by Driving Green: Smartphone Apps That Help You Use Less Fuel

With fuel prices on the rise once again a number of smart phone developers have produced some clever apps to help you save money.

Primo Spot

Tired of driving around trying to find a decent parking spot?

Primo Spot can reduce the time you spend searching for a spot by actually showing you where the available spots are. By reducing your driving time, you are saving on gas and reducing your emissions and your vehicle’s negative impact on our environment. Released in 2007, Primo Spot is an application that uses Google maps to show you where to park. It uses colored markers to indicate available spots and the parking rules associated with them. The app also compares parking garage rates and indicates bike rack locations.

AA Eco Drive

This fun and handy application teaches you how you can adjust your driving habits in order to be more efficient and to reduce your car’s impact on the environment. Since it awards you for different skills and levels achieved, you’ll find yourself constantly motivated to improve and receive more awards. The application monitors your driving style and offers ways to reduce your fuel consumption, which in turn reduces your car’s emissions and the amount of money spent on gas. AA Eco Drive provides you with a performance rating at the end of each trip. Save and compare your scores to monitor your progress and feel good about the positive changes you’re making for your environment and your wallet.

DriveGain

DriveGain is another application that teaches you how to conserve fuel while driving. It provides audio and visual feedback and tips on how to drive more efficiently. At the end of each journey, you will receive a score out of 100 that tells you how economically you drove. You will also get a reading that indicates your fuel economy in miles per gallon. DriveGain is reported to save the average person around $210 each year on gas.

greenMeter

Arguably the most impressive green driving application available today is greenMeter. This application has been reported to have saved roughly two million gallons of gas, reduced fuel expenses by over five million dollars, kept about 47,000 tons of carbon dioxide out of the atmosphere, and dropped oil use by nearly 20,000 barrels, all within its first year of use in 2008. This is a very popular app used by people in over 60 countries throughout the world. The app assesses your vehicle’s power and fuel usage and also evaluates the way you drive. It, like some of the other apps we’ve mentioned, teaches you healthier driving habits so you can reduce the amount you spend on gas and also reduce your car’s harmful emissions.


Strategies for Limiting your Debt in the New Year

As the New Year begins, those feelings of hope and joy about the promise of the New Year are easily replaced by feelings of helplessness when your credit card bills arrive in the mail. Many people rack up huge amounts of credit card debt while attempting to give their loved ones what they wanted for the holidays.

If you have put yourself in this position, the unfortunate truth is that only time and regular paychecks can get you out of the debt that you have already incurred. That being said, there are several steps that you can take to limit the amount of debt that you build up this coming year.

Strategies for Limiting your Debt

The most obvious answer is: “Don’t purchase what you don’t have money for!” However, many people experience circumstances that force them into using their credit card. Here are a few tips that will help you limit your debt in 2014:

• Minimize In-Home Expenses

The truth is that many people overspend money on their household ‘needs’. The gas bill, phone bill, cable package, home insurance, and rent contribute to your overall run rate.

Shop around with several insurance companies to explore the possibility of bringing your monthly payment down.

Purchasing several small space heaters to place throughout your home or apartment may help to reduce the amount of money that you pay out to your gas company every month.

With the popularity of cell phones these days, do you really need that land line at home? Disconnect it and that money will stay in your pocket. Cable television is in the same boat as your home phone. More companies are beginning to offer TV shows for free if you stream them online. Better yet, make reading your home entertainment or downtime pleasure.

You will also benefit from seeking bargain deals at the grocery store every time you visit. Finding cheaper alternatives, especially when buying bulk items, can add a significant amount of money to your wallet. Promotional coupons, buying sale items or store label items all contribute to reduced spending.

You should also consider saying “no” more often when asked to host or cater family gatherings or ‘football night with the friends’. This will significantly reduce the amount of food goods that you purchase and don’t consume yourself.

• Movie Madness

Whether we like it or not, this country is incredibly infatuated with Hollywood. Trips to the movie theater are frequent for family occasions, date nights, or chill time with friends. Many people will make at least 15-20 trips to the movie theater every year. This is most likely even a conservative estimate, but 20 trips at $12 or more per ticket will add up quickly. You do the math!

Movies are expensive. Especially if you are going in the late afternoon or evening. Try attending more matinees this year to save some cash. $6.50 rather than $11.75 sounds like a bargain any day!

Furthermore, renting movies via Red Box or Blockbuster, or simply streaming movies online will render the movie theater almost obsolete, so long as you can curb your enthusiasm to see that killer action movie on a humongous screen!

• ‘Friends with Benefits’

No, no, it’s not what you think! Many of us know several friends, or friends of friends, that offer some sort of service that you regularly pay an exorbitant price for.

Finding friends to take care of handyman work around your house, cut your hair, take your Christmas Card photographs, or care for your pet while you go on vacation will save you a considerable amount of money.

Yes, it might sound a bit like you are taking advantage of your friends. This is not the recommendation. Friends will simply offer these services at a much lower rate than the normal contractor. Furthermore, friends will tend to be more open to homemade gifts, baked goods, or other non-traditional forms of payment for their services.

Nobody enjoys digging a ‘debt hole’. Going forward into the New Year, minimizing your in-home expenses, reducing the amount of money you spend on movies, and seeking out ‘friends with benefits’ will help you to reduce your budget and, subsequently, reduce the amount of debt that you find yourself in at the beginning of next year!