There are instances where people covered in enormous debt seek the help of banks and financial institutions in resolving their debt from the borrowed money. Sometimes, banks reject the loan plea of applicants on the basis of the bad credit status of the person. The activities of a Christian debt relief and management service includes rebuilding the credit and financial status of the person and his or her family while assuring the clearance of all their debts through conscious efforts of removing the accumulated interest and penalties which have caused a huge overhead on the actual debt. Management services find the best way of minimizing these overhead dues and bringing the debt under the budget of the family. This also leads to a peaceful start for the family which eases off all their worries and brings back the sense of security and hope for the future.

Most Christian debt management organizations take heed of the values and sayings of the Christian religion in arriving to a proper plan of action which assures the recovery of any family from a financial crisis. Further, they tend to take care of the families financially, emotionally and socially by managing their budget and debts to arrive to a conclusion which can be used to remove all debts and bring peace of mind and financial security to them while restoring their credit status. Thus, management through Christian debt services can help any family in a financial crunch and lead them to a happier, safer and better life. But make no mistake, it is going to be hard. The help of a Christian debt management organization requires sacrificies.

The first thing that needs to be done to get out of credit card debt is to choose one or two cards to keep. Select from the ones that have the lowest annual interest rates. These cards are to only be used in the case of an emergency. Every other card should be cut up and disposed of. They will not be used ever again.

The next task at hand is to gather all of your bills. Make sure that the minimum monthly payment is being made on each account. Then pick the bill with the highest annual interest rate. It’s important to make additional payments on this every month. Do that until it is fully paid off and then start the process over with the next highest interest rate account.

Make an attempt on any card that has an interest rate that is higher than 14%, to get it lowered. Credit card statements have numbers to call. Use these to ask for a reduced rate. Or, try to consolidate as much debt as possible. Transfer the debt, if allowed, on to the card with the lowest interest rate. Once a card has a zero balance, be sure to cut that up too.

One of the final and most important things to do is to resolve to spend less. Don’t spend more than what is earned. This will, more than likely, be a constant struggle throughout life. It’s one that can be overcome though. Use cash for purchases and never spend more than can be afforded.

Getting out of credit card debt will lift a crushing weight off your shoulders.

Education is one of the best investments you can make. If you have not finished your degree, you should seriously consider it. A good friend of mine has started her education recently with one of the Online Degree Programs at a local community college. She is a single mother working a full time job and she finished her first semester with a 4.0 GPA. It can be done. And it really should be. Below are some possible benefits:

• Personal Pride. You will get a since of self pride from accomplishing something significant. From setting a big goal and seeing it through.
• Better Pay. Starting salaries for employees with a degree are much more and potential earning power is great that without one. And you won’t even get a foot in the door with many places without a degree.
• Job Advancement. You will stand a better chance of moving up the corporate ladder with a degree. Also, employers love to see an employee taking the initiative to improve themselves and often times will reward that.

These are but three ways in which you can see benefits of completing your degree. I am certain you can think of more. And don’ be afraid of the cost or time it takes to complete. Go to your local community college and look into it. There are programs and grants to help. It is the job of the financial counselors at the schools to help you. After all, they don’t make money if students do enroll. So take the first and most important step in investing. Get an education.

The wildcats were not doing well on Saturday. About a third of the way through the 4th and final quarter, they were down 20-7. UK has the ball and turns it over. The fans in the stadium, start pouring towards the exits. Yours truly, watching it on TV at a local sports bar threw up my hands in defeat and went home. Many of us gave up. Little did we know, the Wildcats made a HUGE comeback and won the game. It would have been so exciting, but many of us gave up and missed out on the joy of victory.

In a similar way It is easy to give up when it comes to personal finance. There are times when it seems hopeless. You have a mountain of debt. You can’t seem to scrounge enough to buy a pack of Ramen Noodles, much less pay down that credit card bill. It can be depressing and overwhelming. Don’t give up! you can make it through. You will make it through. Just keep making the right choices.

Much like my Wildcats, you can make a comeback and so can I. No matter how far down or how late in the game. Stick with it, and you will have the victory!

-Kevin

But by the time Mr. Mudd became Fannie’s chief executive in 2004, his company was under siege. Competitors were snatching lucrative parts of its business. Congress was demanding that Mr. Mudd help steer more loans to low-income borrowers. Lenders were threatening to sell directly to Wall Street unless Fannie bought a bigger chunk of their riskiest loans.

So Mr. Mudd made a fateful choice. Disregarding warnings from his managers that lenders were making too many loans that would never be repaid, he steered Fannie into more treacherous corners of the mortgage market, according to executives.

For a time, that decision proved profitable. In the end, it nearly destroyed the company and threatened to drag down the housing market and the economy.

Basically greed was the cause. Think of all of the get rich quick infomercials you saw during this time period. You needed no money down to get a house. Anyone could get a loan. Fannie was a big part of these because the government pushed them, as did the banks to buy up the bad loans in order that banks would have more credit to make more bad loans. It was a vicious cycle.

This is a blog about personal finance. It is a way to keep me on track as I continue to make my way down the path of being debt free. So obviously there will be plenty of talk about ways to save money, to make money. However, I have to watch greed. Greed will cause us to make horrible decisions. Greed is what makes us try to buy a $500,000 house on $45,000 a year income. We must keep a level head and know that this is a long process. Realizing that if we are doing this simply to have bigger toys, we may get swept up in the next bust.

So why am I worrying about my finances if it is not about the bottom line? The reason is that personal finance is not about the ‘Benjamin’s’. It is about a life style. Not the champagne and caviar idea from Hollywood. Rather a life of fulfillment. A life without worrying if my family will have a home in the future. To not have to worry if someone else can help me when I retire. Abilities to help friends and strangers with needs. Money is simply a means to an end.

Let’s be clear, there definitely was a problem with banks giving mortgages to people who really couldn’t pay them. There is blame there. However, blame goes to the individual too. These are OUR finances and the ultimate responsibility falls on us. If a $500 rent stretches you to the end of your rope, a $1,000 a month mortgage isn’t going to make things better. We must take control of our situation and take the time to learn how to manage our lives. Ultimately, the only person that you can truly trust with your financial well being is yourself.

If you find yourself, like me, in a bad situation financially; take the first step. That is, accept that you made bad choices. You messed up. Anything can be fixed, but the root cause has to be identified. If you don’t know jack about finances, guess what. You are the root problem. Take that, and accept it. Once that happens, true change can come about. When we admit we are wrong, something amazing happens. We try to fix it.

Admitting that I was irresponsible turned a light on for me. I started researching. I started asking questions. Everything was questioned. Was it easy? Sometimes it was, and sometimes it wasn’t. However, if I first did not accept the fact I had messed up, nothing would have changed. Debt would be growing instead of shrinking. I would still be fearful of the future.

No one but you can fix your situation.

-Kevin

-Kevin

What this taught me is that it never hurts to ask. If they say no, I have lost nothing. Yesterday, I wrote about being proactive with late payments. Never be afraid to ask for help, a little more off on a price, or a break. The worst thing that can happen is they say no and your situation hasn’t changed. If they say yes, well then you are taking a step forward!

So, next time just ask.

-rebel

Actually there was. Instead of missing payments and waiting until I got a new job to catch up, I could have called the companies I owed money to. If you ever find yourself in a situation where you are going to miss a bill, or even worse, like me not able to pay for a couple of months don’t hide. But don’t wait on the dreditors to call you. Call them. Swallow your pride and call and explain what has happened. Many times, they will work with you. They don’t want to turn your account over to a collection agency. This will come at some loss to them. It in’t in their best interests. And, if they won’t work with you, you’ve lost nothing. It never hurts to ask for some help. Plus, it tackling the problem head on, you are demonstrating responsibility. That is something to take pride in.

Just remember, if you are going to be late, you will usually know it. Call them first.

-rebel

1. Economical in use or expenditure; prudently saving or sparing; not wasteful: a frugal manager.
2. Entailing little expense; requiring few resources; meager; scanty; a frugal meal.

For me, to sum it up it means to start using less and saving more. Now here is the kicker. Do you have to maximize every savings in order to consider yourself frugal? I say no. Look, if you are just wanting to be scrooge and hoard away a bunch of cash just so you can have a bunch of cash, I believe you will have an empty life. Balance is the key. Don’t be afraid to take a vacation, go out for an occaisional dinner with friends, or buy something you don’t need. Just be responsible about it. Plan ahead. Lets say you always wanted to take a vacation to Australia. You may have to wait a few years, but set a goal and adjust your budget to put the money aside for it. The point is, use your frugality to enhance your life, not diminish it.

-rebel