Cont'd.. Credit Consolidation

Once a borrower has gone beyond the limits where it seems too difficult to handle all of the payments due, Some people will file bankruptcy or some do the more bigger mistake by trying to avoid the collection calls or bills, or sometimes will get panic of collections or bills and will decide something without taking it to the right solution.

On other hand some people will go to consolidating institutions which would make them more in mud.

The borrower is always in a very sensitive situation like quicksand where each try to get out of it pushes more inside.

SOLUTION:

First of all, you should know the facts and figures, So, make a kind of table on the paper that would be easy to read or easy understand and then write or type down your income and then start with expenses on the other column.

There are different natures of expenses at any household that include fixed, variable, uninvited, hobbies, extras and emergency

Expenses more than the income is deficit,
Income more than Expenses is savings or surplus.

In both cases you need to take important decisions step by step to set yourself free from the state of continous deficit that keeps going higher and higher by the each month passes.

Here I have to add some of the quotes:

"Money saved means money earned"
"time is money and knowledge is power"
"While fighting, if you are the one who is been beaten then you have to be defensive intead of offensive"
"Rent should not be more than 1/3rd of the total income"


GOOD LUCK

Credit Cards and Loans......Consolidation

THINK BEFORE YOU LEAP!

General Definition for a Loan:

The money borrowed from a Lender is a loan gotten and given respectively.

Definition in reality:

For a borrower: The expense or desire that could not be afforded with your regular income

For a Lender: Another permanent addition into revenue of Bank

Bitter Facts:

When an amount on any form is borrowed by a person or company it has so many hopes to pay it back very easily or it would be a small part of the organisation's profit. In fact, more than 80% of hopes fail and the result comes up with keep paying the interest on the loans and still remains a debtor for a bank for the same amount. There are a lot of plus plus into your loan amount by the passes, like penalties, late fee, interest and other additions to your account.

While borrowing a loan, borrower looks at the small monthly payment comparing to the one big amount, on the other hand, lender is after the double or more returns of their lending from the borrower within specific time, along with the additions they might be able to add by any chance.

In the next post I would like to discuss the easy ways where a borrower has better way to pay it off than filing a bankruptcy....