What’s the best/fastest way to erase debt? That’s one of the most common questions asked by people who owe money. So if you’ve asked yourself that question recently, here’s a list of the steps that you can take to destroy your debt in the shortest period of time.

1) Know How Much You Owe

If you want to erase debt, you must know the overall size of your debt. So get together all your bills, statements and final demands. Open a spreadsheet or a pad of paper and add the following details;

The amount owed to each of your lenders. This includes, credit cards, store cards, overdrafts, mortgages, personal loans and other bills. Leave nothing out. Write down the amount you owe, the monthly minimum payment, the interest rate (user the APR rate), any arrears and any penalties that are due.

At this stage, it’s a good idea to list your debts with the highest rate of interest at the top and the lowest rate at the foot. Use the rate of APR on each loan to sort them out instead of the actual monthly amount owed. For example, 18.9%, 16%, 12.3%, 7.9%, 6.2% etc

As a general rule, store cards, credit cards and overdrafts will be at the top, personal loans in the middle and mortgages at the foot of your list.

2) Work Out Your Monthly Income

Add all sources of income, including income, fees, bonuses, overtime etc. If your income varies from month to month, work out the average monthly amount over the last year. You can do this by adding up all your income over the last 12 months and dividing by twelve.

3) Set A Monthly Budget

Start by writing down all your essential monthly expenses. This means basic food, basic clothing and a roof over your head. In short, the things you need to keep body and soul together. Anything else is a luxury.

Once you know the amount you have to spend each month, it’s a simple sum. Monthly income less monthly essential costs. And anything that’s left must be used to erase debt. Once you know the monthly amount you have to eliminate your debts, you’ll find it easier to decide how much to pay towards each of your debts. This is your “war chest” to erase debt.

If you’ve reached the stage where you don’t have any money left after your essential living expenses and you can’t cut any more costs, your only chance to get out of debt is to persuade your creditors to dramatically reduce your debts or consider declaring bankruptcy.

4) Prioritise Debt Repayments

If you’ve got more than one debt, it’s important to erase debt according to the rate of interest charged. Get rid of the debts with the highest rate of interest first. That will help to reduce the amount of interest that you pay, and reduce that time taken to repay your debt. That’s the reason why I suggested listing your debts according to the rate of interest.

Take your “war chest” and deduct the minimum monthly payment for each of your debts. Once they’ve been paid, there won’t be any risk of falling further into arrears for the next month at least. The rest of your war chest can then be paid towards your debt at the top of your list. Keep going in this manner until you erase debt number one. Every debt you repay will give you added confidence and help motivate you towards your final goal. Debt freedom!

Then, move onto the next debt on your list. Again remembering to pay the minimum on the rest of your debts and using the rest of your war chest to erase debt number two. Just keep going until each of your debts is ticked off one by one. As time passes and your debts start to disappear, the remaining debts should be paid off in a shorter space of time.

5) Negotiate A Lower Interest Rate

One of the best ways to speed up step 4 above, is to contact your lenders and ask them to reduce the interest rate on the money that you owe them. Due to the fierce competition between lenders for your business, many companies may reduce the interest rate on your debt just to keep your business.

If they refuse, just move some or all of your debts elsewhere. Many companies have special offers and introductory rates from time to time. But however you manage to reduce your interest rate, it will help you to erase debt faster. Just remember to reorganise your list of debts so that the debts with the highest rate of interest are still at the top.

6) Be Realistic

If your debts are substantial it will take time to repay them in full. It might be months or even years. But whatever happens don’t expect them to disappear overnight. If you do, there’s a much greater chance that you’ll lose heart and give up on your quest to become debt free. Don’t allow that to happen. Set a realistic timescale to achieve financial freedom and focus on that. Make a plan and stick to it, because your life will improve beyond compare from the moment you make that last repayment.

by Stuart Laing

Copyright (c) Get Out Of Debt.

Are you tired of being in debt? Do you resent the large repayments every month? Visit http://www.icanhelpyougetoutofdebt.com for free, impartial debt help information.

This article may be freely distributed as long as the copyright, author’s information and active links are included.

Share This

How many times have you been casually going about your
business, seen a great property and thought, “that would be
a really nice place to live”? Then you snap out of it,
knowing you can’t lay your hands on the money fast enough.
Well what if you really wanted this property? You discussed
it with the agent, your emotions got the better of you and
you made an offer.

This has to be a fast sale or the vendor will sell it to
someone else, what will you do? How will you find the cash
at such short notice? Unless you happen to have thousands of
pounds lying around in some bank account you forgot about,
you’re going to have to borrow some money and fast!

Did you expect the financial industry NOT to have a product
for people just like you? Of course not. They’ve thought of
everything. The answer is a bridging loan!

A bridging loan provides a temporary window. As is suggested
by the name, it bridges the gap between the amount of cash
you need now and the amount you currently have. What you
earn normally has no bearing on the matter. How much your
current property makes on open market again does not come
into it. Your bridging loan takes care of your what you need
right now.

If you apply for a bridging loan you can buy the property
immediately. You will pay it back when you sell your current
property. So, you see, you can have the best of both worlds.
Just make sure you read the small print. Make sure you’re
not being charged extortionate amounts of interest. I always
make a point of reading the small print, no matter how long
it takes.

Usually, a bridging loan will be a short-term loan with a
repayment cycle of one week to six months. There should
always be a clause allowing the customer to repay the full
amount as soon as their current property is sold.

More often than not, a bridging loan uses the customers
current property as security. As the customer, you have
options. You will generally have the option of securing the
loan on both properties or either one of them. This gives
you a little flexibility.

These guys usually move fast. The brokers’ valuer will
assess the property and come up with a figure on which your
bridging loan will be based. This figure will depend on many
factors. At the top of the list, you’ll find the usual
suspects: location, number of bedrooms, size and the general
condition of the place, to name but a few.

As soon as the valuation is complete, the lender is in a
position to advance the cash to the customer. If you choose
a good broker this will happen fast. As a rough rule of
thumb, expect to be able to borrow up to 65% of the value of
the property. Lenders offer as much as

Share This

The Roles of A Mortgage Lender, Broker and Sales Agent

Buying a home can be an exciting but confusing event, especially if it is your very first time. There are so many options for sales agents, brokers, mortgage lenders, types of mortgages and mortgage rates. It can be difficult understanding all the changing real estate information that seems to constantly be influx.

It is not expected of a person to be completely knowledgeable in real estate and the changing market when they are not involved in it on a daily basis. And when you buy a home sometimes only once or twice in your lifetime, of course you may not be apprised of new real estate laws, mortgage rates and what the responsibilities are of agents brokers and mortgage lenders.

In order to have a great experience buying a home and getting the most out of your transaction, it is in your best interest to know exactly what a real estate agent, broker and lender do, and how they make your purchase happen.

If you are knowledgeable about the real estate market, know where to find good listings of the type of home you want to buy within your price range, and have access to money and a good interest rate, than perhaps utilizing the services of a sales agent or broker may not be needed. However, if you do need assistance, then the services of a real estate sale agent and broker may be the right choice you. Let’s take look at real estate brokers and sales agents, and how they can help you find the property that is right for you.

Real estate sales agents are simply an extension of a real estate broker. The broker actually hires a sales agent, as just that, an agent to show his or her listing to home buyers. (Both must be licensed with the state by taking a rigorous exam.) The broker is responsible for everything that the agent does, because the agent is by law, acting as the broker. A broker may have one, two, or dozens of real estate agents, depending on how big the business is, how many offices the broker might have, and how many cities the broker occupies.

Real estate agents and brokers are really capable of doing the same job when it comes to the front of house of the business. They both must be knowledgeable about their specific real estate communities with such information such as zoning, neighborhoods, tax laws, and where to obtain financing.

Real estate agents and brokers may have specialized knowledge if they work in other than the residential genre. For example, they may sell commercial, industrial or agricultural properties and they must have information specific to their clientele.

Both sales agents and brokers are capable of showing the listings that the broker has been contracted by the seller to sell. However, because the broker has additional duties in the back of house of the business, the sales agent usually assumes the responsibility of showing potential buyers the homes, finding the type of house they are looking for and can afford.

The sales agent and broker work together to find a buyer for a property that is listed with them. For this reason, the broker will give a percentage of the commission, the money paid to the broker by either the buyer or the seller for his or her services, to the sales agent. Commissions may vary and are not contracted according to the law. A commission is often a percentage of the total price of the house being bought. So generally speaking, the more expensive the house, the higher the commission.

For a broker, in addition to assuming these responsibilities in the absence of a sales agent, the broker must arrange meetings between the buyers and sellers until the new owner takes possession, arrange for title searches, list properties for sale, advertise these properties, supervise agents, offices and advertising, and compare properties with similar listings to determine a market price for the properties under his or her listing.

Even with all these responsibilities as a broker, the biggest difference between a sales agent and broker is the fact that the broker can be responsible for arranging financing for the buyer. The buyer has a choice to either find and obtain financing himself, or have the broker do it for him. Either way, the broker is still responsible for arranging the transaction between the buyer, seller and lender, despite who found the financing.

Before, during, and up to the close of escrow, the broker must disclose all information about a property to both the buyer and seller. The broker is responsible for checking all visible aspects of the house in order to assure maintenance and upkeep of a property. If there are any problems or concerns with the property, even if the seller did not disclose to the broker, the broker must notify both the buyer and seller immediately. This assures the buyer that he knows all information about the property. Otherwise, if an offer is made, the buyer can pull out of a transaction without any repercussions.

The broker is also responsible for making sure all of the terms of a contract are met before the closing date. This includes home and termite inspections, environmental regulations, and any repairs, upgrades or changes to the property as agreed to by the seller. The broker must make sure that the binding terms are carried out.

When the broker is working a specific deal, he has many choices of where to obtain financing for the buyer. There are many options for mortgage lenders, or those who loan the money to the buyer to purchase the property. Mortgage lenders may be thrift institutions , commercial banks, mortgage companies, credit unions, and even personal entities. Depending on the type of lender, type of loan, and personal financial situation, the current market, and city the property is being purchased in, quotes can greatly differ on a case by case basis.

A broker is usually helpful in looking at these variables and will be knowledgeable in where the buyer can obtain the best loan at the lowest rate possible. It would be difficult for a buyer to be aware of, have access to and shop many different financial institutions to determine what the best loan is. Buyers find brokers very useful in this area because they have contacts and information that the buyer would not.

Sales agents, brokers and mortgage lenders can make purchasing a property go very smoothly and save both the seller and buyer a lot of time, energy and money. Because the sales agent and broker are working for and in the best interest of the buyer, these transactions can be a great experience and make everyone happy, especially the new home buyer.

If you feel that the services of a broker and agent are right for you, then be sure to ask around your community and get references from several brokers you may consider doing business with. Always check licenses and verify that they are legally capable of handling your transaction. You are more likely to enjoy the house buying experience if you are working with someone who is looking out for you and is very knowledgeable in your community.

John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage.

Share This