Holidaying With Credit Cards

The use of plastic money has gained wide popularity not only in the United States of America but through out the world. Reports suggest that on an average an American household uses approximately 14 credit cards.

If the credit cards are not used judiciously, it may lead to a situation where a consumer may have to run from pillar to post to get his finances back on track again. Come December and you can feel the demand for credit cards skyrocketing.

However, the most important factor that needs to be kept in mind is to use the credit cards wisely. A consumer may get tempted by the various offers, the credit card companies offer during the festive seasons and during the holidays. It is often seen that people get tempted to avail various credit card offers during the holiday season and end up losing control over their finances.

Save yourself from "holiday hangover"
There are many financial experts who refer this habit as "holiday hangover". It has been observed that generally people tend to overspend with credit cards and become very impulsive during the holiday season.

However, there is one way to spend for the holiday season. You can start saving small amount of money the year round and buy gifts depending on the availability of your finances.

You can follow the tips given below to control your usage of a credit card during the holidays-

• Do not get tempted to buy a credit card which does not have long term low interest rate (APR).

• Once you have decided with your credit card, go through the rules and guidelines thoroughly because the credit card companies frequently change rules.

• Make it a point to make your payments regularly.

• Make the full payment and do not stagger your payments.

• You should never exceed your credit limit. That way you can keep a check on your impulsive buying.

• Avoid availing cash advances. Cash advances attract a very high rate of interest and if you do not pay on time, your outstanding balance go on increasing.

• Try to carry only one credit card. By doing so, you can keep your expenses in control.

• If you have not been able to maintain the golden rules for avoiding the "holiday hangover" and finally land up in debt, get out of debt at the earliest.

You should remember that just as plastic money can be of immense help and saves your from carrying cash, it can draw you into a vicious cycle of debt. So before your credit cards start controlling you, you control them, especially during the holidays.

Debt Negotiation: A Path to Debt Freedom

Debt negotiation is one of the ways to achieve debt freedom. It helps the consumers regain financial stability. Through debt negotiation, you can manage your debts in a systematic and organized manner.

What is Debt Negotiation?

Debt negotiation is also known as debt settlement. It is that process in which you negotiate with your creditors, so that they agree to accept a reduced amount of your debts. The basic purpose of debt negotiation is to help a debtor pay off his debts through reduced rate of interest and lower monthly payments.

When Should You Go for Debt Negotiation?

Debt negotiation helps you reduce your loan amount by 40% to 60% and can make you debt free within 1 to 3 years. It is considered to be a better option than bankruptcy and you can go for it if you have any of the following problems:

• It is mainly availed by people who fail to manage their debts through their debt consolidation programs. A debt consolidation program requires you to pay a minimum amount to pay off your debts, but if you cannot make this payment, you should go for debt negotiation.

• If your creditor has decided to file a lawsuit against you, then negotiation may save you from this situation.

• If you have failed to make your payments in the past 3 months, then you should go for debt negotiation.

How Does Debt Negotiation Work?

When you avail a debt negotiation program, you are not required to pay any amount to the creditors. Instead, you pay that amount to the debt counseling firm. The firm will negotiate on your behalf with your creditors. It will keep some funds aside and accumulate it till it becomes half of the outstanding balance. Meanwhile, the firm chalks out a repayment plan for you. Finally, when the creditor agrees to the repayment plan, the debt counseling firm pays off all at once.

Debt Management Program

A debt management program may be referred to as one of the methods by which you can reduce your debt burden. In this process, a credit counseling agency helps debtors by lowering the APR.

The right time to opt for debt management program-
A debtor may opt for a debt management program under the following circumstances-

• If a debtor has several debt accounts and is finding it difficult to manage them simultaneously, a debt management program may be opted for.
• A debtor is receiving collection calls from debt collectors and wants to avoid them.
• If a self repayment plan is not sufficient to bail out the debtor. He can opt for a DMP.
• If the debtor intends to improve his credit score, he can opt for a debt management program.

In a debt management program, commonly referred to as DMP, the debtor is required to make the single monthly payment to the credit counseling agency. The agency in turn manages the debts on behalf of the debtor. The credit counseling agency distributes the money to the respective creditors.

Types of debts covered by debt management program-
The following types of debts are covered under a debt management program-
• Medical bills
• Credit card bills
• Payday loans
• Student loans

In other words, unsecured debts are covered by the debt management program.
How does debt management program work?
• The credit counseling agency gathers details of all the debt accounts. Details include information about debt amount, APR, minimum payment etc.

• A budget is worked out by the agency and the debtors are also educated about efficient money management skills.

• The agency does all the negotiation with the different creditors and they settle for a lower monthly payment.

• A repayment plan is worked out by the credit counseling agency so that the debtor does not find it difficult to repay the outstanding balance.

• Once the single monthly payment is paid to the credit counseling agency, the same is paid to the respective creditors.

Benefits of a debt management program-
There are many benefits of a debt management program. Some of the noted benefits of a debt management program include the following-

• One can put an end to the collection calls from the collection agencies.
• A debtor does not have to shell out late fees or default payments.
• A debtor can enjoy lower rate of interest as well as lower monthly payments.

In addition to the above advantages, making payments on time will impact the credit report in a positive manner.

Multifamily Deals -Types of Investors

What do you mean by the term investor's? It is quiet a general term that may mean various things in view to various people around the World. Commonly it may be defined as a person who gives out capital to get a financial gain in return. So we will see here about multifamily apartment loans investors who make big money from their investments. There are basically three different types of investors lending, equity and hybrid (combination).

A lending investor is one who will lend you the money on real estate dealing. You will retain 100 percent ownership of the real estate property and have to pay the lender an interest rate on certain terms and at certain times. An equity investor is one who will not allow you to retain 100 percent ownership of the real estate property. He will have a percentage of the property and in return he will receive an amount of cash flow of the appreciation. They usually cost you more money but have other advantages which will attract you to invest in multifamily properties. Finally a hybrid investor is one who can both receive an interest rate and an equity participation in the real estate project.

If you look from the investor's point of view then being a lending, equity or hybrid investor counts solely on their mutual requirements. If they need a regular monthly cash flow then they go for equity, or if they want a good return at the end then they generally go for the lending. The hybrid comes into interface when they want a regular cash flow and also want a net token amount after a certain period of time. The documentation also varies according to the type of investors that you approach in the market. The lending investors have the easiest documentation of all the three.

All the three types of multifamily apartment loans investors have their merit of their own in the market. In general rule, a lending investor is preferred when you have to pay lesser amount in return. At the same time an equity investor will always cost you more money but there is a relaxation of a regular cash flow and many other benefits.

Thus it is quite clear from the above measures that the type of investor depends solely on the requirements that you have. You have to fetch the investor according to your needs. As you know your investor it becomes easy for you to match your multifamily apartment loans project with them and create a suitable package of the product. Therefore first you need to find one and then think big cash in your pocket.

Debt Management-Counseling You to a Debt Free Life

A debt management program is the method by which a debt expert guides debtors and shows them all the possible solutions of leading a debt free life. In a debt management program, the credit counselor suggests the various methods to do away with the existing debts and also educates the debtor to manage debts effectively in the future. The credit counselor from whom you receive professional guidance about reducing your debts should have thorough knowledge of the subject.

Your existing financial condition is evaluated
The program prioritizes your debts like council tax, bills for utilities and mortgage payments. It also takes into account the amount you can shell out every month for paying debts in addition to the expenditure incurred on daily needs. After calculating this, if there is any money in excess, the same is deposited with the debt management company hired by you and they in turn distribute the money to the creditors.

Negotiating with the creditors
The debt management company works on your behalf and they can be of immense help in your efforts to reduce debts. The company does all the negotiation for the reduction of interest rate currently applicable to your debt accounts. The main reason why the creditors agree for a reduced rate of interest is that by doing so, they stand a better chance to get back the money they have invested for the debtor. This would not have been possible if they sell the debt account to a debt collection agency.

When do you need a debt management program?
However, before your debts get out of hand, you should opt for a debt management program at the correct time or it may blow up your debts and render them uncontrollable. Let us see when you should think of opting for debt management program-
• A DMP is needed when you have many debts and are not being able to handle them properly.

• If you have tried out self repayment plan but failed to get the desired result.

• You do not want your credit score to get tarnished; simultaneously you also want professional assistance in reducing your debts.

• You are constantly receiving harassing calls from the creditors and they are also threatening to file a lawsuit against you.

A DMP has several benefits and the various benefits that may be availed by a debtor are as follows-

• The program helps in reducing interest rates thereby reducing your monthly payments too.
• You are not required to pay fees for late payment
• You stop getting collection calls.
• Finally you become debt free.

One important aspect that needs to be kept in mind is that despite the fact that the debt management company is managing all the debt for you but you are required to keep track of the proceedings as well. It is of utmost importance to keep a close watch that the payments are being made properly to the creditors.