Australian Business News and Times

Business News ,Reports and Times of Australia

Gposter

The 10 Most Dumbest Things to Do If You’re Deep in Debt

by Leave a Comment

It is quite easy to get into debt. However, what matters the most is getting out of debt as soon as you can. However, many people are not aware of how to avoid mistakes that could lead them to more debt. If you are deep in debt, it is essential for you to take things seriously. Failure to do so can result in additional debt problems.

deep in debt

Solutions for Debt Reduction

If you want to get debt-free, always remember to avoid the following dumbest things in terms of debt problems:

1. Spending a Lot

It is surprising to know about those people who are deep in credit card debt but still do not care about spending more on things they actually do not need. If you are one of them, it means that you should stop your shopping addiction so that you can get rid of the debt burden.

2. Using Your Home Loan to Get Rid Of Other Debts

Poor money managers think that there home equity loan can be best served for the purpose of paying off other debts. However, they have no idea how this can put them in bigger debt. Using home loans to pay other debts simply means that you will have to pay more in the future.

3. Borrowing Money from Relatives

People in desperate need of cash often borrow money from family members and other relatives because they think that this is the only solution left. However, this is the worst thing you can consider while paying off your debt as paying this loan on time is an obligation for you.

4. Ignoring How Debt Is Giving You Warning Signs

Some people living in debt manage to make ends meet if they are paying their minimum payments on time. However, this can still be risky because you never know when you are required to pay a lot. Secondly, many people ignore the warning signs of living in debt.

5. Relying On Credit Counselors That Want More Money

When you search for credit counselors, you will find many. However, some will demand high fees and promise to help you get debt free. They will hardly meet your expectations. Therefore, relaying entirely on credit counselors should not be done.

6. Not Making a Budget

It is a common phenomenon that most people spend money without making a budget. This should especially be done if you are in debt. Those who do not follow an organized form of managing money end up getting more debt problems. Therefore, you should always make a budget.

7. Considering Loans with High-Interest Rate to Pay Off Previous Debt

If you have debt and you want to pay it off, getting into more debt is not the right solution. This is because you will have to pay a higher interest rate for the loan youjust took so that you can pay off your previous debt.

8. Declaring Bankruptcy

Declaring bankruptcy can affect your financial stability in the Short term. This Solution should not be taken specially if you intend to start a business soon again or just as a solution to get debt-free. It is always recommended to  consider bankruptcy  as a last option. If debt settlement works for you, then prefer it over declaring bankruptcy.

9. Using Your 401k

If you have already taken a lot of debt, and you plan to use your 401k for further expenses, then it is quite an ineffective decision. You never know when you really need for 401k. So, it is always better to save this amount of money for your retirement.

10. Buying a Car on Lease

If you are already stuck with your home equity loans and you want to buy a car, leasing is the worst option you can ever think of. When you calculate your overall payments, you will realize that you have spent a lot of money on its payments as compared to its actual value.

If you think that you the above mentioned warning signs are interfering in your life, then this indicates that you should avoid them as much as you can. Rather than using these ineffective ways to manage your money, it is better to look for debt consolidation solutions.

Author’s Bio

Angelina is  a financial expert in debt management solutions. She likes to help her readers get rid of debt and for that she recommends Consolidated Credit’s debt settlement companies page which is worth reading www.consolidatedcredit.org/personal-finances/life-events/debt-settlement/.

Buddy, Can You Spare a Life Insurance Policy?

by Leave a Comment

Anything at all would really help; maybe a little Hartford? MetLife? or Deloitte? Bless you, kind sir.

Dennis Grayson

Not Enough Life Insurance Agents

We recently reported that the number of agents selling life insurance products is dwindling at an alarming rate. At least some are alarmed by it, most notably those captains in the insurance industry who are certain that American’s don’t have enough life insurance and should have more. (Not Enough Life Insurance Agents?)

life insurance deloitte

Now comes corroborating news that “the prime reason many uninsured individuals don’t have insurance coverage is that no carrier has invited them to purchase their products.” That’s according to a new survey published by Deloitte, LLC, or the subsidiary of Deloitte that is big on insurance and that sort of thing, at any rate. “Even insured individuals who are open to buying additional coverage often say that they have not been solicited by carriers.”*

I would humbly suggest, at the outset of this discussion, that the real reason many uninsured individuals don’t have life insurance coverage is because they simply don’t want it or feel the need for it. As a consequence, they don’t feel even slightly compelled to buy it.

Deloitte study on consumer insurance

The title of the Deloitte study, “The Voice of the Life Insurance Consumer,” is a little troubling in that while consumers may have indeed lent their voices to Deloitte, the company and other captains in the industry may have either been a little tone deaf, or perhaps they only heard what they wanted to hear.

The survey was conducted to provide life insurers with insights into how people perceived the value of life insurance, including where coverage ranked among their other financial priorities, as well how consumers preferred to be reached.

“From our survey it is clear that life insurance is very much on the minds of many consumers,” said Rebecca C. Amoroso, Vice Chairman and U.S. Insurance Leader for Deloitte LLP. (Deloitte was of course the survey’s executive sponsor.)

While there is little data in their study which might actually suggest this, I support Ms. Amoroso’s natural inclination to protect the industry, and her six figured income (I’m only guessing). I would be inclined to replace the word ‘many’ with the word ‘some’.

Guest post by Nicholas for Structured Settlement of www.sellingyourstructuredsettlement.com