|
Below, you'll find extensive information on leading
corporations and bankruptcy under chapter 7 articles and products to help you on your way
to success.
Credit Counseling: A Path To Financial Freedom
By mjb
Living from paycheck to paycheck... getting a loan to pay off another loan... filing of --- these are situations faced by thousands if not millions of Americans who have somehow buried themselves in debt. No wonder, many people are increasingly being diagnosed with depression. The sordid financial trouble people face leads them to more negative thoughts of hopelessness, insecurity, and desperation.
Four years ago, the U.S. Federal Reserve reported that consumer debt had already hit $1.98 trillion. The figure was the aggregate amount of debt from credit card and car loans alone. The total debt for mortgages was not included in the said figure. The American Institute also came up with a report which indicated that 1.6 million Americans filed for in 2003. Credit card debt figures for 2005 was reported to have reached $753 billion in debt for the United States alone. Based on recent estimates, the average American household has $18,700 in debt.
But why do many people fall into debt?
One major reason for indebtedness is uncontrolled spending. The lack of control over spending habits starts a cycle of spending more money than what one makes; and the compulsion to apply for a loan to acquire more things. In some cases, the loans are made just to repay other previous loans. In terms of credit card abuse, a person falls into debt not only because the list of payables grows long. A person falls deeper into debt because of the interest. It is not surprising to hear of people who have been in credit card debt for such a long time. After excessive use of the credit card and no increase in their capacity to pay, they are left to face the reality that they are only able to pay-off the interest without decreasing the principal amount of debt. Aside from the interest, not paying a debt on time also spells trouble for the undisciplined card holder since late payments entail a “late payment penalty.” Late payment charges can can range anywhere from ten dollars to forty dollars. Using the credit card over one's credit limit will also entail an over-the-limit fee which usually starts at $39 per transaction.
The next logical question is, “Why do people overspend?” Many people seem to have lost control over their finances because of status anxiety, an emotional and psychological problem that makes a person feel insecure about his or her sense of personal worth and significance. It can also be a compulsion to become or appear to be popular, wealthy, and “above everybody else.” Many call this, in layman's terms, trying to “keep up with the Joneses.”
If a neighbor passes by sporting a brand new car, a socially insecure person would might feel the need to rush to the bank to get a car loan since
he can no longer “afford” to be seen driving a 2001 Nissan sedan even if he really cannot afford to pay for a 2007 Mercedez Benz SLK Class that comes at $43, 500 plus loan interest. Seeing an officemate brandishing the 4-gigabyte i-Phone worth $499 instantly creates a need to buy the 8-gigabyte model worth $599.
This desire to be seen as good or even better than one's neighbors in terms or social standing, material possessions, and influence is a cause of anxiety for many people. Financial woes have also increased the level of stress and anxiety among individuals who have uncontrolled spending habits and social insecurity. The emotional and psychological problems brought about by financial difficulties are also causes of physical illness that include migraine headaches, depressive behavior, heart ailments, to name a few.
So, how can people stop themselves from committing financial self-destruction? One easy step is to inquire from the credit card company if they offer free consumer debt counseling. This form of counseling focuses on helping consumers learn the wise uses of credit and various strategies for debt payment and reduction. The usual advice starts with the theme of “not spending more than what you earn.” This advice is usually followed by convincing the person in debt to list and determine what accounts should be settled first. Almost as a given, many credit counselors also try to convince people to start on a savings plan. Professional debt counseling services also include the more technical process of computing taxes, interest rates, and payment timelines that should be followed by an over-spender who really want to regain financial freedom.
Frivolous spending may actually be more than just a case of financial illiteracy or lack of discipline in money matters. In some cases, people with enormous debt must also consult a psychologist or psychiatrist to determine the root causes of overspending.
Living from paycheck to paycheck...paying one loan after another is surely not the way to live. There is a way to financial freedom, and everyone must start by making a financial choice of using money for what one merely wants or for what one really needs. Article Source: Article Beam - a service of A1 Web Server Web Hosting Choose Variety of High Quality Medicines at Online MedicinesEnjoyed Reading this article? More here: www.americapharmacyworld.com">Pharmacy Articles
|
|
We strive to provide only quality articles, so if there
is a specific topic related to bankruptcy that you
would like us to cover, please contact us at any time.
And again, thank you to those contributing daily to our
corporations and bankruptcy under chapter 7 website.
New Jersey Mortgage Refinance - New Jersey Home Refinance
New Jersey mortgage refinance explains about the low interest rates offered in mortgage refinance. Also provides information on New Jersey home refinance.
New Jersey Home Equity Loan - NJ Home Equity Loan Rate
New Jersey home equity loan offers best rates and describes the benefits of home improvement loans in New Jersey. Provides complete information and advantages of New Jersey home equity financing, home equity loan and home equity loan rate.
New Jersey Debt Consolidation - NJ Debt Consolidation Loan
New Jersey debt consolidation informs about the costs involved in the debt consolidation loans and also offers great rates on NJ debt consolidation loans.
New Jersey Bad Credit Mortgage - NJ Bad Credit Mortgage Loan
Provides comprehensive information on New Jersey bad credit mortgage loans and also know how to purchase the best NJ bad credit mortgage based on your credit score.
New Jersey First Time Home Buyer - NJ First Time Home Buyer
New Jersey first time home buyers provides instant rates for first time home buyers and also speaks about the importance of pre-qualification and credit history for first time home loans in NJ. Offers best tips for the NJ first time homebuyer.
New Jersey FHA Mortgage - NJ FHA Mortgage
New Jersey FHA Mortgage loans explains the benefits of FHA mortgage streamline refinance in New Jersey. Provides best information on adjustable FHA mortgage, New Jersey FHA financing and FHA loan limit, especially when they are compared to traditional loans.
New Jersey Jumbo Mortgage Refinance - NJ Jumbo Mortgage
New Jersey jumbo mortgage explains the difference between a conventional mortgage and jumbo mortgage. Provides information on NJ jumbo mortgage refinance.
New Jersey Second Mortgage - NJ 2nd Mortgage
Gives information on Second Mortgage Lenders and Second Mortgage Companies. Provides benefits of Second Mortgages Loans in New Jersey and instant rates for New Jersey 2nd Mortgage Loans. Speaks about 2nd Mortgage Financing in New Jersey.
New Jersey Reverse Mortgage - NJ Reverse Mortgage
New Jersey reverse mortgage speaks about the eligibility requirements for a reverse mortgage and also about the costs involved in New Jersey reverse mortgage financing. Provides guidelines on NJ reverse mortgages and information on reverse mortgage lenders and free rates on reverse mortgage loans in New Jersey.
New Jersey Adjustable Rate Mortgage
New Jersey adjustable rate mortgage provides information on the merits and demerits of adjustable rate mortgage loan in New Jersey. Get information on best details as well as low rates on New Jersey ARMs.
New Jersey Mortgage Foreclosure
New Jersey mortgage foreclosure offers best information on New Jersey late payment mortgage loan and how to avoid the mortgage foreclosure in New Jersey.
Englewood Mortgage: Brokers, Loans
Englewood mortgage brokers provides free rates for Englewood mortgage loans and also best information on factors affecting Mortgage Rates in Englewood.
Garfield Mortgage Broker - Garfield Mortgage Company
Garfield Mortgage Broker Offers tips for selecting the best Garfield Mortgage Company and also speaks about the changing mortgage rates in Garfield.
Newark Mortgage Loans - Newark Mortgage Lender
Newark mortgage lender speaks about the importance of pre-approval for Newark mortgage loans. Also provides information on the mortgage brokers in Newark.
Trenton Mortgage: Broker, Lender
New Jersey Trenton mortgage lender provides best information on the Trenton mortgage broker who would point out the mortgage rate in Trenton. Check for the Best mortgage loan in Trenton.
Westfield Mortgage: Broker, loan
Westfield mortgage broker provides information on factors that affect Westfield home mortgage rates. Provides details on internal factors to obtain mortgage loans in Westfield and also speaks about the significance of good referrals for Westfield mortgage company.
New Jersey Monmouth Mortgage: Broker, Company, Lender
Information and tips to locate a reliable New Jersey Monmouth mortgage lender or New Jersey Monmouth mortgage company.
Atlantic City Mortgage - Atlantic City Mortgage Loans
Atlantic City mortgage offers best details on Atlantic City mortgage loans. Also gives information on Atlantic City mortgage rates.
Fairfield Mortgage - Fairfield Reverse Mortgage
Fairfield mortgage New Jersey offers mortgage loans in Fairfield. Also gives information on Fairfield reverse mortgage for low rates.
Jersey City Mortgage - Jersey City Mortgage Loans
Outlines the factors affecting mortgages in Jersey City, New Jersey.
Ocean City Mortgage - Ocean City Mortgage Loans
Ocean City mortgage loans explains about what to look for in a mortgage in Ocean City and the importance of the right balance between low monthly payments and low interest rates.
New Jersey Best Mortgage Rates - Mortgage Rates in NJ
provides guidelines on how to obtain the New Jersey best mortgage rates, Also speaks about the importance of rate commitments to obtain lowest mortgage rates in NJ.
New Jersey Mortgage Loan Calculator - NJ Mortgage Calculator
NJ mortgage loan calculator explains how to calculate the affordability. With New Jersey mortgage loan calculator or New Jersey home mortgage calculator you can ultimately save money by selecting the most reasonable offer.
New Jersey Mortgage Quotes - New Jersey Mortgage Lead
New Jersey mortgage quotes offers information on instant mortgage quotes in New Jersey. Speaks about how to select the best mortgage lead in New Jersey. Provides New Jersey mortgage information, online mortgage quotes and expert mortgage quotes.
New Jersey Mortgage Lender - NJ Mortgage Lender
New Jersey mortgage lenders provides best details about mortgage services in New Jersey. Also speaks about New Jersey mortgage lending and the mortgage banker. Get the information about the mortgage banker's association and New Jersey mortgage banking.
New Jersey Mortgage Company - NJ Mortgage Company
New Jersey mortgage company speaks about details on New Jersey mortgage program, online New Jersey mortgage quote and mortgage brokers that compete with each other to offer the best New Jersey mortgage program.
|
