What are the most common types of debt management?

If you find you're struggling to repay your unsecured debts every month, you'll need to find an approach that can help you manage your debts better - and repay them at a realistic rate.

If this is the case, one potential option is a debt management plan. If you can no longer make your repayments as originally agreed, a debt management plan could allow you to make a reduced payment every month to your unsecured lenders, so you can get back on top of your debts at a rate you can afford.

A debt management plan is an informal agreement between you and your unsecured lenders that is designed to simplify your unsecured debt repayments every month - and get you out of a debt as quickly as you can realistically afford.

You could make your own debt management plan and deal with your lenders directly yourself. However, agreeing one with a professional debt management company could mean all phone calls and letters between you and your unsecured lenders are handled for you - which could make your situation less stressful.

It's important to remember, however, that agreeing to lower monthly payments means you'd be repaying your debts over a longer period - which may increase the overall cost if your lenders don't agree to freeze interest on your debts.

A debt management plan will also show up on your credit record, which can affect your ability to get credit for six years afterwards.

What other ways could I manage my debts?

A debt management plan isn't the only possible approach to repaying your debts.

You may find that tackling your debts with a debt consolidation loan or an Individual Voluntary Arrangement (IVA) is better suited to you personal situation.

An unsecured debt consolidation loan could help you manage your debt more easily - you'd take out a new loan to repay your existing debts. This means you could make just one payment to one lender every month, which may make it easier to keep track of what you owe. Be aware that you must (as with all loans) be able to repay your loan in full - and that it won't be likely to help you if you're seriously struggling with your finances.

Alternatively, if you have significant unsecured debts and you can't afford your payments but can commit to making regular smaller payments, an Individual Voluntary Arrangement (IVA) could see the remainder of your unsecured debts written off on its successful completion, once you've repaid everything you agreed to when you signed the agreement. For more IVA information click here.

However, if you're a homeowner, entering into an IVA means it's very likely you'll have to release some of the equity in your home. And an IVA will affect your credit rating for six years from the day it starts.

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Posted on 7/26/2011 0 comments

Practical Ways to Protect Yourself from Identity Theft

Identity theft is rampant. At least 5 out of 100 people have been victimized. It is worse than getting a contagious disease or being robbed. While your identity is not the real prize, it is merely the tool to get what these cyber thieves really wanted –your money. Your safeguard depends entirely on your vigilance. Identity theft protection is depends on how you handle all the important information about you.

Let me offer you a few practical suggestions to keep your vital information safe.


Create Back-up copies of your important information in a safe place.

These could be photocopies of your SSS Number, IRS, Driver’s License, Credit Cards, and the like. The information contain in these identification will easily useable to thwart any sign of identity theft. Always keep them hand, but safe.

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Posted on 3/23/2011 0 comments

Covered Calls for Non-Finance Pro

Day trading or buying and selling stocks is probably one of my career frustrations. I tried once. I resigned from what I thought was a really boring job and jump into a suite that I believed will give more satisfaction and more money in the bank, but I lasted only less than a month. Lesson learned –stock trading is not for me. However, I still want to invest my money on stock options. How do I proceed?

Another option that looks feasible for me is covered call.

To start with, what is exactly a “covered call?” Allow me to borrow this good definition from BornToSell.com:

A covered call is an investment strategy involving two transactions. First, you buy stock (or use stock you already own). Second, you sell a call option against that stock. The combination of being long the stock and short a call option is called "covered call." It is also known as a "buy-write" transaction (because you buy the stock and write (sell) the option).

Simply put, it is a sound and simple an alternative to stock trading. Of course, I do not mean here that you jump the gun immediately with this scheme. First, you need to learn all the basics required to go cautiously with this. Good news though, BornToSell.com offers free tutorial in this department.

The tutorial will not only give you a detailed tour of the world of covered calls but they will also assist you on how to choose the right trades for you via a “covered call screener” and more importantly, they will introduce to covered call portfolio management to help you “maximize the amount of time you receive each month.”

Okay, I might still sound to simplistic there. Let me remind you that this is not another “getting rich quickly” scheme like those proliferating in the net. This means hard work and prudence on your part. You can only succeed in covered calls depending on how you have master the rudiments involve and you make good decisions in each option you buy or sell. Better yet, to get on with your proper education on this, try this “no-obligation 2 week free trial.”

Wish you financial health!

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Posted on 10/02/2010 2 comments

Common Sense Personal Finance Management

Money management is actually plain common sense. Spend less, earn more, and save more. But only a few have really taken those practical admonitions seriously. Who cares? We love spending! Que sera sera. Heard that? That’s how many of us react whenever we are advised to take our finances seriously.

There is hope though.

You begin by assessing where you are right now with your finances and where you are headed with that prognosis. If you are in debt, you might consider getting a free fico score so that you know, at least from an outside perspective, your current financial credibility. Then make the necessary adjustments.

Personal finance management is easy. You do not only need common sense, but also an ounce of discipline. Discipline means spending only on things that really matters and investing your money on ventures that can steadily generate passive income for you.

Avoid getting trap into the urgency that advertisers are teasing you about. Get out of that rut and get a grip on how you decide on buying things.

Am I making sense?

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Posted on 5/17/2010 1 comments

5 Easy Ways To Cut Your Household Expenses

Are you shocked when seeing your household expenditures every month? The expenses seem to increase every month. If you are in this situation, try these 5 recommendations before your extra paid money will accumulate to a significant amount!

1. Recycle those junk letters.

Each month, you will probably received a dozen or more letters from direct mailing companies in your mailbox. Some of these letters are printed on one side only. Collect these letters and combined them into a writing pad. You can also used them to print draft documents. Besides saving money, you are also saving a lot of trees.

2. Install water saving kit in your toilet cistern.

When flushing the toilet, the amount of water used is usually more than is required. By installing a water saving kit in the cistern, the amount of water saved can be as much as three gallons per month.

3. Use the fan

Whenever possible, use the fan. The air conditioner is a major contributor to your utility bill. By using the fan, not only are you saving on your utility bill, you are also building up your body's tolerance to heat. Your chances of getting heat exhaustion or heat stroke during the hot summer season are greatly reduced.

4. Do not throw away that old bar of soap yet.

As your wash your hands with soap on a daily basis, the bar will become smaller and smaller until it is almost unusable. Instead of throwing it away, simply stick the old bar of soap onto the new one. Just make sure both of them are wet when sticking them together.

5. Cut the tube of toothpaste into half.

When you can no longer squeeze out any toothpaste from the tube, just cut it in-half. There is some more toothpaste left that can last you for a couple of days if you have a large family. If you live alone or with your spouse only, the extra toothpaste can last up to five days or even more.

Start cultivating these useful habits today and make them a part of your daily life. You will be pleasantly pleased when you notice your household expense start to decline bit by bit as time goes on.

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Posted on 12/10/2009 1 comments

Some Notes about Payday Loans

What is payday loan? For the novice, a payday loan is actually another term for cash advance. However, in this case, usually the repayment is committed or made on or before your next payday.

Understandably, most of us run into difficult situations where what we have save in the bank (that is if we have saved at all) cannot cover the expenses, cost or payment you need to make. Without a health insurance for example, hospitalization is costly. Other emergencies can occur from time to time, and payday loans more often can rescue us from these unwelcome predicaments.

Caution though, because not all payday loans are reliable. You need to carefully choose the best lender for your needs. Take the time to study and compare terms, agreements, rates, and interest before you jump into signing. Approval for payday loans is quicker than the regular loans, and more often there lies some of our potential financial woes. So, look into your needs and your ability to pay the soonest possible.

In retrospect, actually you can evade financial problems during emergencies if you would only start saving cash for this purpose. I know, I sound to be nagging here again. It is the truth by the way, and it hurts. Always save for rainy days so you can avoid getting wet or borrowing from somebody’s’ umbrella.

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Posted on 12/05/2009 1 comments