Debt Management For 2010

We know that we take loan for different purpose. It may be in form of car loan, Credit Card or Personal Loan. Different rate of interest is charged for different level of loans, depending upon the risk associated with each of them. There are different type of Debts, and it is necessary for one to know in order to manage your loans i.e. what to do with the amount of money you are borrowing. Debt can be hindrance in wealth creation. Thus it is necessary for you to know about Debt Management, so that you can make the debt your slave rather than other way round.

Good Debt arises when you take loan for anything you need but can't afford to pay for up front without wiping out cash reserves or liquidating all your investments. Such debts are tax deductible and are paid in pre-tax dollar. For example if we take loan to buy an investment property or to invest in share. Good debt can help you to maximize your tax position.

Bad Debt on contrary refers to debt you have taken on for things that you don't need and also can't afford. Such debt is also not tax deductible. For example interest payment on your home or interest payment for your personal credit card.

Thus after having idea on Good and Bad Debt we can say that debtors in bad debt fails to make investment and are always in the process of making payments for debts. Borrowing money for proper purpose is the first step for Debt management. So there is difference in borrowing money one to buy consumer goods or depreciating assets and other for investment in appreciating assets. Taking loan for investment will reduce your interest rate and thus will help you to mange your debt.



There are few more steps which you should keep in mind for managing debt or making your making your money work in your favor.

1. Always borrow money or to take loan to purchase appreciating assets and to make investment.

2. If you have taken different type of loans, thus its feasible for you off the bad debt first.

3. All of us know that different interest rates are charged for different type of loans. Thus it is necessary for us to keep proper knowledge of different interest rate and to pay off the higher interest rates first. For example if we have two Good debt one loan for investment in property and is for investment in share then it is good for you to pay off the one with higher interest rate first.

Taking loans is not a big issue but managing debt is a major concern. Thus following the above steps will help to come out from debt and will make your money work for you.

Consolidate Debt To Celebrate Stress-Free Christmas

I believe that “Christmas is the time when you can buy this year’s gift with next year’s money”. Annual events like Christmas and New Year plays very important part in our life. To celebrate this yearly occasion money plays very important factor. Thus Saving is necessary for us so that we can celebrate such occasion without any financial stress.

However on contrary year after year many of us continue to blow our budget and then spend the following months to pay off our credit cards the huge accumulated interest.

Celebrate preparation is the clue in order to celebrate stress free Christmas. I would like to suggest you to read my following suggestions.

• Firstly make list of everyone for whom you want to purchase

• Then decide on how much you want to spend on each of them.

• Calculating on above parameters will give you monetary value and total cost.

• Decide on how much you need to save for three weeks, so that you can purchase the above items

• At last very important point you should keep in mind is to carry your list while shopping and always stick to your limits.

The person who is in debt is always in stress. If a person is thinking to get another credit card in order to meet his Christmas expense is not feasible for him or her. To make yourself debt free and to celebrate Christmas without stress there is an option for you known as Debt consolidation which you can acquired through Debt Consolidation Companies.

There are various debt consolidation companies who provide solution to your stress by saving your thousands of dollars. They help you to come out of debts whether it is credit card debt or your personal loan, or your car loan. They provide you with of easy monthly payment for your debt consolidation loan.

Thus I can suggest you that credit card consolidation is one of the easiest ways for debt consolidation loan thus make your Christmas stress free.