Negotiate With Your Credit Card CompaniesВыбираем «Народный дом»
Credit cards have always been a way for consumers to buy things they want or need without having the money on hand at the time. The problem that most people are seeing now is that the situation with their job status and the rising cost of living is causing them to fall behind on payments. What can the consumer do to avoid credit card debts from going to collection and possibly court for a judgment for payment?
Credit card companies are seeing the financial crunch just as much as the consumer. If you have credit card debt that is more than ninety days past due for payment, you can contact the company and negotiate a deal to pay anywhere from $.10 to $.50 on the dollar. This can help clear the debt and it will be cleared from your credit report as paid.
Before you become ninety or more days past due with payments, talk with the credit companies and ask to have the late charges suspended. Many companies will do this because they do not want to see the credit card holder go further in debt. They realize that if the debt becomes large enough, the cardholder may never be able to pay the balance due.
Another way to avoid excessive credit card debt is to ask the credit card company to lower the current interest rate. Many times, a company will drop the interest rate just so the cardholder can pay the balance due for purchases. The companies feel the need to negotiate in times of a recession so that they can at least have the payment for things that were charged on the card.
If the credit card company is not willing to drop the interest rate, you may want to apply for a credit card that offers so many months with no interest for transferred balances. This would allow you to pay the balance without incurring any interest. The only way this will work is if you then cut up the credit card that you transferred the balance from and it will be cleared on your credit report as paid. Then contact the credit card company and tell them to cancel the card. You should also pay as much as you can every month to lower the balance of the debt before the interest rate is applied to the balance.
Pay Your Mortgage Bi-weekly
Many consumers have a mortgage that is draining their finances in a time of a recession. Foreclosures are on the rise and no one wants to lose their home. It is hard enough to support a family, but without a place to live, people feel defeated. By paying the mortgage bi-weekly, you can pay down the principle on the mortgage loan. This also lowers the time of the loan you have on the home.
If you were to pay the monthly payment in two payments every month, and do this every month, you could take a thirty-year mortgage down to a fifteen-year mortgage or lower. You would be paying less interest and more money towards the principle.
The holidays are always a time when consumers spend more money than what they have or can afford. The holidays are for spending time with the family more so than they are about giving expensive gifts. Place a spending cap on all holiday spending if you must buy gifts. You are not the only one feeling the money crunch, but not everyone can admit it.
If you must buy gifts, there are so many gifts that you can buy for under $20. Kids are the easiest to buy for and spend less money. There are arts and crafts for under $20 as well as gifts for adults. You can find candles, sporting goods and even jewelry. Shop when the stores are having sales. You can find some incredible sales on many items under $20 that everyone will enjoy.
Protect Your Job
Your job performance is what is going to protect you when the company has to eliminate jobs. If you make it to work early and take on more work, you will show that company that you are an asset and can multi task. This is important when a company is looking for ways to reduce spending. Show the company that you can do more work for the same wage and they will see you as the employee to keep on the payroll. You might have to work a little harder than you would want, but in the end, you will have a job, which means that you will have a monthly income to continue paying bills and supporting yourself and a family.
Be Prepared for a Layoff
You might think that your job is safe from a recession, but the truth is that no one is safe in a recession. Jobs are lost and people are left without a means to support their families. The unemployment rate increases and everyone is looking for work. The weekly unemployment rate will not go far if you are accustomed to making more than $350 a week. A person that makes $50,000 a year is only going to get the maximum benefit a week. It is very different from what you would be used to getting.
Keep the lines of communication open with other companies and friends that own businesses. Send out some holiday cards and let them know you are thinking about them and their families for the holidays. People remember people that remember them when the holidays come around. Stay on top of the game at work and always make a good impression when dealing with clients. You never know when you might need their help when looking for a job.
Earn Extra Money
Starting your own business can be overwhelming. Robert Kiyosaki and even Donald Trump have said it many times. Network marketing is another way to generate income and make your way to the top. Network marketing is something you can do while working your day job. You can build income as you work at both. This strategy is how many people are going to come out on top during a recession. The Internet is a fascinating way to earn income. Trump and Kiyosaki are just two examples of how to make it to the top and utilize the Internet to generate income with network marketing.
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Get a Part Time Job
If you have bills to pay and your goal is to pay off credit cards and reduce the principle on your mortgage, you might have to consider taking a part time job. In this day, when a recession is looking more likely, you want to get as much debt paid off as possible. You also want to have some money in the bank to fall back on if you would lose your full time income. This is an excellent way to generate more income and will help you later on if you do lose your job or the price of food and other things skyrockets.
Make a Budget
One way to survive a recession is to make a monthly budget and stick to it. A monthly budget will help you spend less and a family that lives on a budget could possibly ride out a recession. This includes budgeting meals, necessities, insurance costs and even health insurance. Plan ahead now and start living on a budget. The sooner you become accustom to living on a budget, the easier it will be when you really need it. It is easier to live on a budget when you do not need it then it is to when you have to have it.
Increase Your Insurance Deductibles
So many consumers have low deductibles on car insurance, home insurance and even on private health care. The lower your deductible, the higher your monthly premium will cost. Many people never file a claim unless it is something very large because they do not want their premium to be raised. By increasing your deductible to the highest amount will reduce your monthly premiums. It will be easier to pay $1000 out of pocket if something happens than it will be to pay an extra $50 a month yearly and not file a claim. If you do not file a claim in that year, you could save $600 a year.
Switch Your Brands
Everyone knows that name brand clothes and food cost more than buying a store brand. In times of a recession, it is important to save money and buy things that cost less. Store brands are just as good as the brand name. For instance, if you buy a food product from Kraft, you could possibly get the same tasty product cheaper by buying a store brand such as Food Club. Clothes are the same way as are housewares and necessities.
Everyone will feel the affects of a recession. There are ways to avoid feeling the devastating affects of a recession by planning ahead. Make some recessions and live within your means as if a recession was occurring now. This way, when the recession hits home, you will already be able to adjust with no heartaches and headaches.