Archive for the ‘Debt’ Category
Posted on April 1, 2010 - by admin
Whether or Not to Borrow
Debt can be used for many purchases and borrowing is not a bad idea is used correctly. There are some purchases that are worth paying for over time and some that are not. By using debt to buy something, you are actually paying for the privilege of paying back that amount over time and that is where the interest comes in.
An interest charge can add up over time and depending whether or not you pay just the minimum amount each month, it could cost you a lot more than you think. As an example, it you bought a television for one thousand dollars and you used your credit card with a eighteen percent interest charge to pay for it. If you just the minimum of ten dollars on it each month, it would take you ten years to pay it off and the interest you will have paid over those years would total almost eight hundred dollars. That is like paying for two televisions.
A home purchase is a different story. A home will increase in value over time where a television would not. If you plan on staying in your home for more than five years, it’s value will either stay the same or go up in value. But this depends on many factors and should be looked into before you buy. The condition and the location of the home are two areas to research.
Posted on April 1, 2010 - by admin
Debt Collectors
With the financial events that are going on today, it is not uncommon to fall behind on payments. If you have past due mortgage payments or credit card payments that are overdue, then you have probably already had that call from a debt collector.
You cannot not hide, so just fact up to the fact and talk realistically with your creditors. If you call them first and explain your situation, you can avoid that call from the collections department altogether. Know that you are not the only one in this predicament so ask the bank or lender if you can stretch out your payments and so you are able to pay a little less each month. You never know until you ask as to what answer you will get.
If you do get that call you should now that there are laws for this type of call. These collections agencies cannot be abusive and they cannot harass you or threaten you in any way. They are also not allow to say they will add to your debt with any type of arbitrary fees. You can also write a letter to them asking for them not to call you although this will not cover all efforts to collect a debt but there could be laws in your state that can protect you. Find out what they are.
