Reducing Debt Before Its Too Late … How To Avoid The Pitfalls Of Creeping Debt – Debt Consolidation
Reducing Debt Before Its Too Late ... How To Avoid The Pitfalls Of Creeping Debt
Deb Seeber
Reducing debt usually isnt a high priority for people until they have already gotten into trouble with overspending. Using a few basic guidelines, and debt calculations, can help you see when your debt load is getting into the danger zone.
Budgeting Guidelines
First off, creditors use budgeting guidelines when reviewing and approving credit. If your debt exceeds the financial communities recommended guidelines, then you have a higher risk of credit applications being denied.
Getting, and keeping, your debt in line with recommended budgeting guidelines, is an important step in debt reduction. Use the following recommended budgeting guidelines the same ones used by Financial Institutions to review the items in your budget:
Housing 35% - Mortgage or rent, taxes, repairs, improvements, insurance, and utilities;
Transportation 20% - Monthly payments, gas, oil, repairs, insurance, parking & public transportation;
Debt 15% - Credit cards, personal loans, student loans & other debt payments;
All other expenses 20% - Food, insurance, prescriptions, doctor & dentist bills, clothing & personal;
Investments & Savings 10% - Stocks, bonds, cash reserves, retirement, rental real estate, art, etc.
Debt Income Ratios
The second step is calculating your debt income ratio. Once you know what your ratio is, you will understand just how important debt load is to your overall financial picture. Your debt income ratio is the percent of your monthly take-home pay that goes to paying debts.
You calculate it by taking the amount needed to repay debts each month, including rent or mortgage, and divide by your take-home pay your net pay after taxes. Remember, this is "Debt" ratio, so only include actual debt repayment in the calculation.
Credit To Debt Ratio
Just because you pay off a credit card is no reason to close your account. One little known fact about the Credit to Debt Ratio is the reverse effect it has on your credit score. If you pay off a credit card, and close the account, you are actually negatively impacting your credit score.
The reason for this negative effect is in the calculation of the Credit to Debt Ratio itself. This ratio is the relationship of your debt total vs. your credit limit.
You calculate it by dividing the total credit limit of all credit cards and loan accounts by the total of the actual debt spent total. Now, if you pay off a credit card, you are reducing the actual debt, which is great, but, if you close the account, you are also dramatically reducing the credit limit you have, and usually by a higher percentage than the debt reduction.
Pay Yourself First
Essential to long-term financial success, and protecting your future, is paying yourself first. While this may seem easy to do, it happens to be the last thing most people do, instead of first. Debts and other financial obligations, money for entertainment, and other spending always seem to take a higher priority. All I can say is, STOP! Think about it, if you arent worth being paid first, then who is Always put something away in your savings, and leave it alone. It doesnt matter if its only $5 a week, just do it!
Snowball The Credit Cards
Last, but not least, is making extra payments, not just the minimum payments, on your credit cards. You have probably already seen this many times, but it just cant be stressed enough. Paying just $10 extra a month on a credit card, above the minimum required payment, can cut your repayment term in half, if not more! So, squeeze out that extra payment, however small, every month, and take advantage of the compounding effect of snowballing your debt away. The Power of Financial Knowledge
Remember, you dont have to be a financial whiz to understand whats going on with your credit and debt. Just a few simple calculations, and an eye on the future, will go a long way to help you succeed financially and keep your debt under control. Be safe, be smart, do the math!
About The Author
Article courtesy of: DebtSteps.com offers comprehensive reviews of your options for debt relief. From budgeting to bankruptcy, debt consolidation, and credit counseling. DebtSteps.com is where you can get the answers to your questions absolutely free.
Copyright 2004 DebtSteps.com, all rights reserved. Reprinted with permission.
Amazing Insights Of A Horse Training Expert From The Late 1800s! – Recreation
Amazing Insights Of A Horse Training Expert From The Late 1800s!
Andy Curry
Could a horse trainer, born about 154 years ago, teach us anything new today Would the methods be old hat or would they be useful
The answer is a resounding Yes!, they are enormously useful.
The horse training expert referred to is named Jesse Beery. Beery was a world famous horse trainer from the late 1800s who possessed amazing ability with horses.
Fortunately, Beerys secrets remain after all these years. His information can be found in his book he wrote in the late 1800s. However, very few copies of his book exist. It is virtually impossible to find an original - much less one that is readable.
Here is a partial reading from the first chapter of Beerys book:
Fear is the principal motive which causes the colt to resist training. It is natural for him to kick against an unknown object at his heels, to pull his head out of the halter as from a trap, and if of a bad disposition, to strike and bite if he does not thoroughly understand you.
His fear is governed by his sense of touch, sight and hearing; and it is through these senses we obtain a mastery, and at the same time remove his fears of the halter, the robe, the harness and the wagon. These are the fixed laws which govern the actions of all horses, and the training of a colt is merely teaching him not to fear the working apparatus, but to respect his master, and to obey his commands as soon as he has learned their meaning.
Each one of these senses must be educated before the colt is trained. A colts education may be compared with that of a child to a great extent. A horses reasoning powers are limited to his past experience. So we must reason with him by acts alone. Hence the importance of beginning every step with the colt right; for by our acts he learns.
The successful school-master aims first to teach the child to have confidence in him. Hence the first lesson we give the colt is simply to teach it to have confidence in us and that we are its best friend and dont intend to hurt it.
The book continues with the first lesson a colt is to have which is
"How to gain a colts confidence."
Fortunately, horse trainer Andy Curry discovered a legible copy and made it available for horse owners who want to learn this incredible information.
Andy Curry encourages responsible horse owners to check into Jesse Beerys book and learn what it has to teach.
About The Author
Andy Curry is a nationally known horse trainer and author of several best selling horse training and horse care books. For information visit his website at www.horsetrainingandtips.com. He is also the leading expert on Jesse Beerys horse training methods which can be seen at www.horsetrainingandtips.com/Jesse_Beerya.htm.
How to Avoid Credit Card Late Fees – Mortgage
How to Avoid Credit Card Late Fees
Daryl Flagg
Everyone hates late fees and being late will cost you dearly these days. For some credit cards today, if you are late, you will have to shell out as much as $40 each time. This can put a nice sized hole in your pocket really quick.
Below, I will provide you with some tips and strategies on how to steer clear of those monstrous late fees. This will not only save you a lot of money in the long run, but it will also keep those money-hungry credit card companies, I won