Debt free life and how to manage it

Someone has said it right that debts are toxic. They should be eliminated from our lives. Leading a debt free life seems to be a far cry these days and there are very few American households living without debts. The aftermath of sub prime mortgage crisis is not new to us and we are still waiting for the stock markets to turn around. There has been a change in investor sentiment; the credit card issuers have changed their payment policies and the lenders have also taken a different stand as far as lending is concerned. Credit crunch has made lending more stringent. Lenders are being very selective in accepting loan requests.

If you are in a debt trap and wondering how to become debt free, there are a number of debt relief options that should lessen your debt burden. Debt consolidation is an option that majority of the debt help firms offer. If you are hiring the services of a debt consolidation agency, they do all the talking with your creditors. The debt consolidation agency requests creditors to lower your interest rate. And if your interest rate is lowered, your monthly payments get lowered too. You are also able to make payments as per a new repayment schedule. It enables you to manage your debts more effectively and consequently your finances.

You can also take a debt consolidation loan but it is better not to do so. The main reason is it only adds to your existing debts. It is better to reorganize your current debts and manage them instead. While choosing a debt consolidation agency, make sure that the firm is accredited by BBB or Better Business Bureau. Reports (as of March 27, 2009) suggest that the BBB is receiving more complaints related to 3 party debt counselors. So, before you hire services of a debt consolidation or debt help company, don’t forget to do your bit of homework.

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Global financial crises and its effects

Global financial crises is effecting the people all around the world and common people who have a limited budget to live are more worried because they can't save any money for future of emergency needs.

According to a report from 'Global issues' it says:

'The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.

On the one hand many people are concerned that those responsible for the financial problems are the ones being bailed out, while on the other hand, a global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world.'

Global financial crises is effecting UK citizens as well!

The most prudent and cautious UK citizens have been affected by the global financial collapse, primarily due to falls in property prices. The March 2009 Halifax House Price Index showed that the average UK property now stands at £157,326. House prices are officially 17.5 per cent lower than they were just 12 months earlier and have returned to the level that they stood at in May 2004.

The Financial Services Authority (FSA) recently stated that if property prices fell by 30 per cent from their 2007 high, over 2 million people would fall into negative equity. They also believe that half a million buy-to-let mortgage holders would face negative equity. According to the latest housing market report by Capital Economics, it is believed that property prices will fall by a further 20 per cent during 2009. If this pessimistic scenario was to become a reality, the FSA's worst-case scenario will easily have been exceeded.

More at: Global Crisis hits UK families

Related posts:

* Why the Global Financial System is About to Collapse

* Global Financial Crisis

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