If you’re like most people, chances are you’ll have to rummage through bins and bins of collected shopping “litter” which you’ve accumulated through the years, just to be able to see that once precious scarf. You may still be in a state of denial by saying “Fashion goes round and round and that scarf will have its shining moment once again.”

Unfortunately, many people fall into this mode of impulsive buying that they really can’t afford and before they realize it they become saddled with debt. If you fall into this category, you’ll soon need to learn a thing or two about debt settlement which can assist you in extracting yourself out of that self-imposed state of financial trauma and begin to start rebuilding your life bit by bit. And the time to start is now! Of course, you have to be honest with yourself, admit that you’ve got a serious debt problem and then humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.

First things first, a lot of people may actually think that they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with enormous amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report for up to 7 years, which will result in higher interest rates, less credit and if you try do qualify for a mortgage ( some lenders do give loans immediately after bankruptcy ) you will most likely not be able to get a loan to cover 100% of the financing you need. Normally, an 80% first mortgage and if you can get a second mortgage, it will be at much higher interest rate and probably only 10% of the loan value for a total of 90% of the loan to value and you’ll have to come up with 10% down.

Clearly, everything will come with a higher price for a period of time but you’ll have to weigh that with a straight debt consolidation solution in which you pay off your debt. However, in many cases you can negotiate with the collection agency and it’s realistic to get 25% - 50% of the debt forgiven, if you can show that you’ll continue to make monthly payments until the remainder is paid off.

Many of the debt settlement / debt consolidation companies were actually established by the credit card companies themselves. Why, you ask… because it only makes sense for the credit card companies to help you pay off your debt because they can forgive some of the debt or reduce the interest rates, lower the monthly minimum payment requirements or some combination and get paid a portion of the money owed or receive nothing if you declare bankruptcy. What would you do if you were in their shoes? The answer is obvious. This is why a lot of people who have been saddled with debt are now being offered debt settlement.

Some groups offer debt settlement programs through arbitration. The “selling point” when it comes to these kinds of solutions is that debt settlement will actually help end your debt problems, without having to go through declaring bankruptcy, without having to pay overcharged debt consolidation program fees as well as helping you avoid getting caught in the debt consolidation trap that a lot of people have fallen victim to.

In many cases, what the organizations do that offer debt settlement services is negotiate your debt down with the collection agencies that have been given your case. I would encourage you to contact a number of companies to ensure you feel comfortable and that you are working with a quality company that doesn’t over-charge you for their services.

Of course, you’ll have to decide what route you want to take… bankruptcy versus debt settlement.

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One of the best ways to get ahead financially is to know how to shop smart. Reduce your costs at the grocery store simply and easily each week with these tips.

One of the best ways to get ahead financially is to know how to shop smart, without diminishing your lifestyle.

Reduce your costs at the grocery store simply and easily each week with these tips:

Clip Those Coupons.
Sift through your Sunday newspaper, magazines and circulars, or download and print coupons from Internet coupon banks. Make sure that the coupons you clip or print are for items that you would be likely to buy, even if you didn’t have a coupon. Some Internet coupon sites allow you to print only the coupons you know you’ll use. You simply place a checkmark near the coupons you like and print them before you go to the store. Whichever coupon method you choose, make sure to keep your coupons organized with an inexpensive coupon organizer so you aren’t spending a lot of time at checkout sifting through coupons.

Luxury versus Necessity.
Determine what constitutes necessity as opposed to luxury. A bottle of shampoo is a necessity. An expensive salon styling hold gel is a luxury. If there are luxury items you love, price them at various online retailers and order from the site that offers the product at the most significant discount. Use a coupon code, too, if at all possible.

Reuse and Reduce.
Try to eliminate disposable containers as much as possible. And think about ways you can reduce the quantity of an item that you use. For example, my family pours a great deal of cereal, and we used to leave a good deal of it in the bowl. Teach your children to pour just a bit into the bowl, and assure them they can always go back for more. Try diluting fruit juices, as well.

Get the Family Involved.
Your family members may be more excited about helping in the process of reducing the family grocery budget if there’s a common goal. Let them know what those pinched pennies will be used for, whether it’s a Disney vacation or a contribution to their college fund. Or maybe you are cutting back at the store so the family will be able to enjoy other amenities, such as premium cable channels, and high-speed Internet connections. When everyone is informed of the reasons for cutting back, they are more likely to be supportive, and to help out in little ways. Make sure to ask your family members for their own money-saving ideas, too. Work on coming to an agreement as a family as to which products you can do without, and which you absolutely must have.

Flexibility.
Do not be afraid to try different products and brands. You may have been loyal to one brand of laundry detergent over the years, but many soaps and detergents contain the same ingredients, and most detergents will get your clothes clean. Consider selecting lower-priced store brand items more often.

Specials and Discounts.
Check with various grocers in the area for double coupon days and special discounts. Some supermarkets offer “buy one, get one free” sales on many items such cold cereals, breads, soft drinks and more. Just make sure you aren’t buying in quantities larger than your family can consume. Browse through the discount rack for non-perishables and slightly damaged packages such as cosmetics, deodorants, mouthwashes and toothpastes. And look for after-holiday specials on meats such as turkeys and hams.

Eat Before You Go.
There are so many impulse items available, and grocers know our weaknesses. Candy, potato chips and other junk foods are much easier to resist when your stomach isn’t rumbling.

When Shopping with Kids.
Remember that “No” is a Complete Sentence. While purchasing the “I want” items may save temper tantrums and sulking fits all the way home, it will not help your pocketbook. Once you begin to practice being firm on a continuing basis, those episodes will decrease.

Grocery List.
Make a list of the items you need and try to stick to it as much as possible. Bringing a list with you while you are at the grocery store will help keep you centered and focused.

Household Hints.
Become familiar with various household tricks and tips. For instance, you would be surprised how many uses there are for vinegar, baking soda, lemons and salt. Rubbing salt inside the cavity of a chicken before cooking will keep it moist, and a solution of white vinegar mixed with water can be used to clean your coffeepot. (Just remember to run a few cycles of cold water through it afterwards to rinse.) Lemon juice and baking soda can be used to clean your sink drain. Even old aluminum foil pieces can be crumbled up and used to scrub barbecue grills in place of scouring pads.

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By monitoring your credit report you will save yourself a lot of problems when you have to get that credit card. You will also be aware of any potential problems that may stop the credit grantor from approving you for the credit you seek.

Whenever somebody applies for credit or financing, his or her credit report will be pulled electronically from any of the three major consumer reporting agencies (CRA). These CRAs are Experian, Trans Union, or Equifax - companies that are responsible for maintaining correct and up-to-date credit information around the country. Everyone is probably aware that these three nationwide credit bureaus have to monitor billions of data records therefore it is not inevitable to find errors with the reports. A majority of consumers would have at least one omission or inaccurate detail on their credit report.

It is for this very reason that as a consumer, the responsibility of checking your own credit information falls on your shoulders. Make sure that you get a copy of your credit report from each of the three Credit Reporting Agencies. You should contact each credit bureau and ask for your free credit report (you are entitled to 1 free copy every year). If you have been denied credit within the past 60 days, you are also entitled to a free credit report.

Here is a list of each credit bureau. Make that call and start checking your credit info.

Equifax, P.O. Box 740241, Atlanta , GA 30374-0241;(800) 685-1111.
Experian(formerly TRW),P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742).
Trans Union , P.O. Box 1000 , Chester , PA 19022 ; (800) 916-8800.

Using The Internet To Obtain Your Credit Report

You can also use the internet to obtain your credit report. Many companies offer instant access to your credit report online and will offer you a free credit report if you try their credit monitoring service for 30 days. Credit monitoring services are a great way to keep track of your credit and stop potential identity thieves. As soon as you or someone else applies for credit using your name and social security number, these services will alert you via email. If you did not request this new credit you just need to log into your account and start the process of alerting the credit bureaus of potential fraud activity.

How is the information found on your credit report used

The credit information that is reported on your credit report will be used to evaluate you when you apply for credit, insurance, employment, and other purposes allowed by the Fair Credit Reporting Act (FCRA). Therefore it is crucial that you review your credit reports for accuracy from at least annually.

Why is it important to monitor your credit report

By monitoring your credit report you will save yourself a lot of problems or unpleasant surprises when you have to get that credit card or if you’re considering buying a home. You will also be aware of any potential problems that may stop the credit grantor from approving you for the credit you seek. Knowing exactly what a lender will see when they pull your credit will allow you either try to dispute the items and have them removed from your report or prepare explanations for the credit problems and discuss them with your potential lender BEFORE you apply for that line of credit.

What to do if you find inaccurate information

- Be meticulous in examining your credit information. If you see any discrepancies, verify them as soon as possible. The law says that the credit bureau should examine the matter within a reasonable amount of time, usually 30 days.

- Dispute inaccurate information your credit report. Some credit repair specialist suggests you dispute items one at a time. Some say do it all at once. I have had clients that have done both, and there was never any one way that was more successful then the other in our case. I truly believe it depends on the agent you get at the credit bureau.

- Write an ORIGINAL dispute letter. Don’t just copy a form you found online. If you found it, then so did potentially hundreds if not thousands of other people. The agents at the credit bureaus in the disputes area have probably seen any freely given online dispute letter hundreds if not thousands of times. They will not take your request as seriously as they should if you do this.

The credit bureau is required to investigate and if that item cannot be confirmed within a reasonable amount of time, that credit record must be removed from the credit file. They must provide you with a free copy of your corrected credit report. Send your dispute letter to the credit bureau via certified mail, return receipt requested. If you are using a credit monitoring system you can do this online. Just make sure they send your dispute to all 3 agencies. If the credit bureau completes its investigation and decides that the negative information should remain in your file, you can add a letter of explanation to your credit report to refute the claim.

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Let imagine that I decide to buy a property that is priced at $200,000 for investment. It does not simply mean that I will be paying $200,000. In fact, I will be paying much more than $200,000. To understand why, there is a need to know more about the type of costs involved.

There are two kinds of costs to look out for when doing any investment, namely fixed and variable costs. Fixed cost means that the cost is fixed. It will not change. Variable cost means that the cost is not fixed and it changes with time. Also, cost can also be classified into one time cost or regular cost. One time cost is something that I need to pay once only. Regular cost is something that I need to pay at regular interval such as once a month. Fixed cost is usually one time cost. Regular cost is usually variable cost.

If I buy a $200,000 property, I will need to pay legal fees to the lawyer to transact the purchase. This is an additional one time fixed cost on top of my purchase price. Another example of one time fixed cost will be the stamp duty fee.

I will also need to pay an accountant to manage and file the income tax for my rental income. This is an additional regular variable cost on top of my purchase price. Another example of regular variable cost will be maintenance fee for my property.

And there are hidden costs too! Hidden costs exist in any kind of investments or businesses. They do not just exist in real estate investment. I am simply using real estate as illustration on hidden costs. Thus, one should always on a look out for hidden costs in any kind of investments.

For example, I need to manage and maintain my own property by investing my time. Thus, time is a hidden cost. Also, I will need to find a valuator to perform a valuation on my property before the bank will loan me the money. When I apply for mortgage loan, there is a need to pay for loan acceptance fee.

As you can see, when the realtor tries to sell me a piece of real estate, he will only present the price of the real estate. He is unlikely to tell me the list of all other costs that is involved in the transaction. Also, he is unlikely to tell me that if I intend to rent the real estate out, what are the additional costs involved. In the end, I will end up spending much more than $200,000 to buy the real estate and rent it out.

Similarly, I can end up spending more money than I intended to when I buy something for personal use! An item that is cheap can be very tempting. But there is always a danger of hidden costs.

For example, I can buy a printer at a very low price. But the original ink cartridges are rather expensive. By buying a few original ink cartridges, I can almost buy a brand new printer. Thus, the hidden cost is the original ink cartridges replacement costs.

If I have noticed the hidden costs, then I am able to do something about my decision. For example, I may buy another printer instead where the cost of replacing original ink cartridge is low. Or I can look for alternatives other than using original ink cartridges. If I can find a good alternative for original ink cartridges, then I will buy that particular cheap printer.

In conclusion, I should always look for all type of costs whether I play the role as an investor o