What Happens If The United States Does Not Honor Financial Commitments Here And Abroad?

Authored By Dave Webb

The first thing that will happen will be a massive display of horror from our creditors. Nations like China, India, and Japan. You will see protests in the streets all over the world. It will not be safe for any diplomatic mission anywhere in the world. A good portion of our embassies will be burned to the ground with the people in them.

The implications of a default are listed here:

1. All foreign nations will stop exporting goods to our shores. The shelves will quickly empty at Walmart and all other retail places dependent on those goods.

2. There will be a demand from our many creditors to honor our debts. This could lead to a World War! Especially from governments we are heavily in debt to. These nations will demand we honor debts to their countries.

3. Diplomatic relations world wide be broke off by the creditor nations. All our embassies will have to close.

4. The empty shelves of Walmart will lead to a revolt from the citizens of this country.

(Read More….)

3 Smart Ways To Payoff Debt In Less Than One Year

There’s no denying the fact the in today’s tough economy many are in debt. However many are also looking for ways to combat this debt and pay it off any which way they’re able to. Even though looming debt can seem to be something unmanageable, it can be quite manageable when a plan of action is put into place and the right tools are used. Let’s take a look below at three methods you can use to pay off debt in less than one years time.

1. Create An Action Plan

One of the first things you might want to consider doing is to create an action plan to get your goals going in the right direction. If you wish to payoff your car note and need about $5,000 to do so, then you need to do some math and calculate how much and how long it would take to pay off in less than a year. Once you figure out what it would require, then you can set an action plan to start the payoff process. This could be saving $200 a week for X number of weeks till you reach the goal. Or it could simply mean knowing ahead of time what the amounts and days look like to reach the end result.

2. Start A Debt Fund

If you’re (Read More….)

Getting Out of Debt: Different Ways

You can trash the reminder letters all you want, but it doesn’t trash your debt. Debt stays with you like white on rice, so it’s best to figure out the best way to get out of it without having to resort to drastic means.

1. Pay beyond the minimum: The first thing you need to try and do is stop paying the bare minimum each month. Normally, this is about 3 percent of the entire balance and is exactly what banks expect of you. Less than half of your payment makes an actual dent in the balance and goes toward the high interest you owe, so all you’re doing is burning money in exchange for an absence of threatening phone calls; you’re not getting anywhere otherwise. Pay as much as possible per month; try for at least double the minimum. Examine your spending habits and slim down on the luxuries for now.

2. Get another job: If you honestly can’t slim down anywhere and are already skating on your teeth paying back your debt, you’ll want to consider getting a job. Use this money strictly for paying it back, paying off the ones with higher interest rates first and going down to the (Read More….)

Be Wary of Free Banking Offers: They are a Myth

As a consumer, you are always looking for a good deal.  With more and more banks offering free bank accounts, it might be very tempting to take advantage of these offers to avoid paying the monthly service you are currently paying each month for the account you currently hold.  Just because a banking institution claims that they are offering free banking does not mean that these claims are necessarily true.  Financial institutions who offer free checking accounts must make money somewhere because they are for-profit organizations.  This means that consumers need to educate themselves on possible hidden charges they may be assessed before they are enticed to open an account.  Read on and find out how free banking offers are really a myth and how they may end up costing you as much as $1,150 a year.

Money Collected From Accounts in Good Standing

You have to consider just how much money the institution is going to charge you for services that should be included in your account for free.  Research shows that a number of the financial institutions who are offering free banking are charging their (Read More….)

Tips for Refinancing with Bad Credit

Having a poor credit score ranking can affect just about every aspect of a person’s life: being able to buy a home, renting, buying car insurance (being able to even buy a car), or even access to any line of credit. When faced with bad credit, the person will be constantly harassed by bill collectors, and in some very extreme cases can even be subject to having their wages garnished in order to pay back past debt.

Not only do people with poor credit ratings have to deal with everything mentioned above, they also have to find a way to reduce their debt, bring their credit rating back on track, and try to move on with their lives. Usually, one of the first steps taken to improve all of those things involves attempting to refinance loans with the bad credit rating, in order to better consolidate their debts and manage their finances in a more efficient and responsible manner.

The outstanding loans that should be refinanced first are:

1. Home mortgage loans
2. Car loans
3. Large-purchase loans (appliances, boats, RVs, furniture, (Read More….)

How are Minimum Credit Card Payments Calculated

So you have a few credit cards and you work to pay the bills diligently every month, even though sometimes money gets tight, but do you really know what you’re paying? Often as consumers, we get complacent just paying bills as they come in without actually thinking about what this money is really covering. So how does the credit card company calculate how you pay them back?

In some cases, the minimum payment required each month is calculated by taking a small percentage of the total debt owed on your credit card. Typically this is between 2% and 5%, and you can usually find the calculation value listed on your credit card statement. In other cases, the credit card company uses a formula that takes 1% of your total debt plus the interest accrued for that month.

The real trouble for consumers with either of these payment calculation options is they maximize the amount of time you stay in debt. This means you take longer to pay your debts back. In turn, this gives your debt more time to build interest with each month that passes. Considering the APR on your credit card is probably higher than 15%, your credit cards (Read More….)

College Students: Are these Typical Expenses Worth the Money?

As a follow-up to a few recent articles examining whether tobacco or lotto tickets are worth the money, I’d be interested in understanding whether a few other things college students typically purchase are worth the money, too. As a college student, you probably know better than most how tough it is to make ends meet. You’re likely living on Ramen noodles and scrounging cash whenever you can. Based on my experiences, here are some typical college purchases that you can certainly live without (and save).

Picture Credit Cuyahoga Community College

1.    Single Coffee Drinks At Cafes.

When I reviewed my expenses after my first year in college, I can say with a straight face that my most costly single expense was coffee. Your university likely has a somewhat cheaper campus café, but no matter where you get your coffee, if you don’t make it yourself, it’s going to add up. Starbucks coffee drinks run between 2 and 6 dollars a pop. Even if you get one of (Read More….)

Debt Management Program

The latest recession has taught many people some hard truths about credit and finance. With those hard truths came tough realities, such as dealing with financial burden. When the burden becomes too big to handle, there are some steps you can take to regain your footing and take the financial bull by its horns. One of the steps you can take is debt consolidation, which simplifies your finances and therefore makes it easier to manage.

Debt consolidation is the process of combining multiple bills and loans into one bulk payment per month. There are generally four options and methods for consolidating debt: refinance of debt, personal loan debt consolidation, debt settlement, and consolidation through a debt management program.

Refinance of Debt

Sometimes referred to as debt restructuring, refinance of debt is the process of changing the terms and conditions of a debt obligation. Usually, the goal of debt through refinance is to take advantage of better interest rates, reduce monthly payment sums, and reduce risk.

In these economic times refinance of debt is the most difficult (Read More….)