Should you go for Debt Consolidation or Debt Settlement ...???

It is often seen that individuals becoming a little confused in choosing whether to avoid Bankruptcy through Debt Settlement or Debt Consolidation.However, both being peaceful alternatives to Bankruptcy. It is advisable that the consumer analyzes the financial situations he is into in order to decide the more appropriate option for him. It depends on the ability of the individual to check the amount wants to save on his bills in order to select the right program for him.

Now there lies a basic difference between the debt consolidation and the debt settlement program. In a consolidation programs all the obligations of the consumer is carried forward which can accumulate to a lump-sum amount, however the interest rate that would be charged on the consumer would be much lower than the rate charged by normal creditors.Now the financing company or bank which provides the consolidation amount will have to paid back by the consumer through monthly installments. Now, this amount will be much much lower than previous bills demanded by the creditors. Thus, there will be huge savings on interests but the principal amount shall remain the same.

In case of a debt settlement program the actual loan amount is substantially reduced. Debt Settlement companies shall actually negotiate with the creditors and reduce the amount to be paid back to 50 to 70% of the actual amount. However , debt settlement leaves a scar on the credit report which makes it difficult to get future creditors approve loans.

Both the strategies however, have different comforts and discomforts from an individuals personal point of view. For some it might be a more feasible option to pay the lump-sum amount at once and count savings on the interest charges. However for another it might be more of a viable option to actually pay less than the borrowed amount.

Is Bankruptcy advisable .....???

There is a myth about bankruptcy that once a person declares bankruptcy he gets a chance to start all over again in a fresh way. However the truth is much more harsh than the myth.

Bankruptcy in reality is a torrid and devastating event which actually leaves a person with irreparable damage. The word "Bankruptcy" might chill up spines and come as a viable option when things go from bad to worse.Any individual who is facing the prospect of bankruptcy must re-think over it again as it would be living a nightmare, once bankruptcy is filed.

Why is it advisable to avoid bankruptcy ?

Filing a bankruptcy is not smart move neither it should be recommended. It is something which leaves you with no scope of improvement once you declare you are a bankrupt. In most cases family life is distressed and a dark future awaits.

Bankruptcy is listed as "one of the five most life-changing negative events" along with divorce, severe disability , illness and losing a loved one. You need to make sure that you are not being fooled, when your lawyer(s) advise you to file bankruptcy, as the consequences are an extreme.

Types of bankruptcy:-
1. Chapter 7 Bankruptcy is absolute bankruptcy where the credit report is affected over the next 10 years.

2. Chapter 13 Bankruptcy is a similar to a modified repayment plan in which exists on the credit report for the next 7 years.

However, whichever form of bankruptcy you may go for , shall be a major a form of discomfort wherever you go for jobs or loans. It is inquired everywhere whether an individual has ever filed a bankruptcy or not. If someone lies in order to get a loan, then it is considered as a criminal fraud.

Bankruptcy can be avoided with proper credit counseling. Debt consolidation is also a very sensible alternative. A quicker win over through bankruptcy is actually a loss of a life-time.

Sporting.... Recession...!!!

With every industry falling prey to the claws of the ongoing recession, sports too could not save itself. The price of slots for advertisement has become more expensive this year as compared to 2008, during this month’s Super Bowl, American football’s ultimate prize. In addition to all these the Premiere League sold its broadcasting rights for three consecutive seasons starting from the 10th of August 2010 at a price 5% more than the normal deal at 1.8 billion pounds.

Alike all other sectors sports too is not immune to economic downturns. The Premier League jerseys speak for themselves as Newcastle United sponsors Northern Rock and Manchester United sponsors American Insurance Group were all over the place and on the verge of bankruptcy. West Ham were without a sponsor for three long months when their sponsor XL crumbled due to the global credit crunch. In the history of American basketball, Detroit Pistons were unable to sell a full-house , in five seasons for a home game.

However, sports has been relatively performing in a better way in the face of recession unlike other business verticals. Even , when the dedicated fans should feel that season tickets are to expensive , still they shall be glued to their television sets which eventually shall keep the broadcasting rights to be open for high bids. The international Olympics Committee has started negotiations for the 2014 Olympic games and 2016 summer games television rights.

The case of National Association for Stock Car Auto Racing cars has not been going well. They are no longer carrying logos for every square inch as sponsor rates have slashed and many teams have been merged. Sponsors have even gone ahead and sold teams .Thus, the time is totally in-appropriate to build new teams and stadiums or even to hunt for new sponsors to bear team costs

Plan a Vacation ... Forget the Recession

For most of us, a vacation a year, keeps us going through our daily lives. But what can you do to make it happen when you find yourself in the middle of a frustrating recession which is sweeping your finances away and making the future uncertain. Well, here we shall find out ways to squeeze out a vacation without robbing your savings accounts.

1. Know your Budget
At a time when the normal flow of money is restricted, it is important to actually analyze your savings options and get the maximum you can in your piggy bank.The exact amount you can afford shall determine the kind of trip you can actually pursue.It is possible to have a wonderful vacation even with a mere USD 500 per head.

2.Alter your style of travelling
If you prefer a stylized trip with a two week stay at a five star hotel,then, you need to find more affordable options during such tough times. A mere shift to a four star or three star would provide more lucrative deals with a minimum change of available amenities. Thus, even shortening the stay to a week from two can save considerable expenses.

However, it is important to make yourself comfortable, wherever you are staying. So make sure that your savings go hand in hand with your satisfaction.

3.Find the best deals
Browse through all websites which plan a vacation for you and provide great deals. It is possible you can come across some of the deals ever proposed. The savings through such homework can go up to a thousand dollars.

4.Provide yourself with more options
It is always advisable to plan your vacations before hand. It provide you with more scheduling options and more savings. Flying off during the middle of a week and in off-seasons indeed saves you a lot.

5.Find the right destination for your money
Plan your holidays to places where you shall find the best exchange rates for the currency you are carrying. Travelling to recession-hit countries will actually cost you half now than it would have a year or two back. Thus, local shopping there would also be profitable for the traveller as well the natives.

Thus ,these simple ways can still manage a vacation for you which shall be good enough for your pocket also.

Make your Money Safe...

As the global credit crunch continues, banks all over the world are pinched hard to cope up with the situation. Consequently , you as a saver need to see out a few things in order to make sure that your money is safe. Thus, it would be avoidable to see yourself as the savers who had their money with the beleaguered banks such as Northern Rock, Bradford & Bingley and Bank of Scotland.So here is a list of few things to make sure your saved and invested money is not only safe but you also get the fruits of your investment.

1. Find out the the best savings account by surveying different institutions:

The smaller the bank the safer it is : The big four ( Royal Bank of Scotland, Barclays, HSBC and Lloyds) are on the border line of recession and could seriously affect your wealth. However there are many smaller well-known institutions who are offering higher rates of interest on savings and shall be more safe to put your money in. Even if a bank is damaged then also your money shall be compensated by the Financial Services Compensation Scheme.

The best savings rate should be found.

If there is a merger of your concerned bank then there is a cover up to 35000 pounds. Thus in case of merger a two or more banks come under the same authority, In such a case there is a cover up to the aforesaid amount and such can be retrieved irrespective of the current volume being held with the bank.


2. Find out who is owning the concerned bank.

3. Provide "plastic protection" to your credit card:
This service ensures that you get your money back on the purchases you have made through your credit card ( between 100 to 30,000 pounds)if the bank goes down irrespective of the fact whether the concerned firm is on the same land or overseas. Visa debit cards also provide the same facilities through their "chargeback" scheme, however the compensation is unlimited in this case.

4. Find out the right credit card for you which shall provide you with all legitimate coverages and claims.