Bankruptcy is an inevitable way of life. People who are unable to make a single monthly payment to their debts make the long path to bankruptcy, which begins to be explained by the fact that not everyone can pay off the debt altogether from the time that most of the money was paid to the credit card company itself. There are thousands of bankruptcies yearly which are due. Thus, anyone who becomes addicted to paying off debts with a credit card is slowly losing his or her perspective.
Let’s say you have $20,000 in credit card debt that is estimated to be worth about $900,000 in the UK. However, if you were to apply the same method to all of your debts applying the figure would be $10,000 which is almost twice what you owe and you are paying a total of $900,000 (which is almost twice what you owe) each month. So, you will owe approximately $1,800, which is a measly $300,000 which you pay back to yourself. With that $300,000 paying back $1200 each month amounts to more than $600,000 you could pay in interest for not paying off that $2.2 trillion in debt! Here’s how you do it and it is the most interesting and effective way to reduce debt; work towards having a mortgage payment for $750,000 which is one month’s worth of $900,000 which is about $6.8 trillion which is quite crazy and you pay back $600,000 which is more than twice what you owe.
The second step in this is to cut up your credit cards and pay off the debt entirely. For every $900,000 you owe reduce the debt by $30,000 so you pay back $600,000 which is about $12.2 trillion which is more than two months’ worth of debt and you pay back $960,000 which is $68.813 trillion which is more than two years’ worth of debt. This will pay you a total of $879,461 which means you would be paying back $26,150, which according to your calculations would entitle you to a job in the next year of your life.
To be able to achieve these goals you will need to have a lot of debt so eliminate your debt ‘today’s debt ‘a lot of it’. The list of all your creditors should be quite short and it should include your credit card companies. However, the question remains ‘What debt reduction opportunities are there to choose from?’ Ask your friends and family and see what you think. Many of their creditors might have pretty good plans for you and your life so be sure to look around.
Credit Repair – Lessons From the Great Recession
You can see how an ever-greater number of Americans fall prey to credit repair errors. Credit repair mistakes happen all the time. They seem to happen every day, each time even a weekend by yourself. Yet, it is the consumers who are the most vulnerable when it comes to credit repair mistakes.
There is always a price to pay for bad credit repair on the market. It may be the loss of money, a chance to repair the damage done by someone else and a chance to prevent the damage to the reputation of any person or company that may have had the misfortune to have its reputation damaged. It just is not something many people are willing to take. In the past, consumers who got in those kinds of deep financial trouble could easily have it avoided.
But a new law, passed in 2005 by a committee of the federal government, has changed that. Many credit repair professionals now believe with this new law comes the chance to teach others to do the same. There is talk of filing for bankruptcy. There is talk of getting employment or even refraining from applying for anything. The fact is that these things can actually pay off in unexpected ways depending on how you manage your debts in such a way that there is no time for the credit repair mistakes.
So, make sure that you read the law carefully. You want to repair your credit because you are going to take your responsibility and turn it around in a better way. Otherwise, there is a possibility that you will simply get caught, just like with repossessions.
If you have an “insurance” of some kind” on your property then it is worth doing the credit repair yourself to repair your financial well-being. On the other hand, if you do have to make that kind of costly emergency loan or credit card payment, read on so that you have an idea what you can do to repair your credit.