Financial Ponderings

My online money lobe

What is a debt management plan? March 28, 2008

Filed under: debt — financialponderings @ 9:32 am
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I was reading a post a few days back about different types of debt solutions (not that I need one – I’m not great with money, but things aren’t that bad). I saw a few I recognised & also a few that I had never heard of. One of them, a debt management plan, caught my eye & I set about finding out more.

It turns out that it is an informal agreement with your creditors, where it’s possible for them to reduce the amount you owe & even stop charging interest. I’m sure it’s not that easy, but it certainly sounds a lot simpler than going bankrupt!

That’s what I got from it anyway – of course, i’m no expert. The article I found that really explained it well is here if anyone else is interesed:

Debt Management Plan


Cheat Your Debt March 20, 2008

Filed under: articles — financialponderings @ 4:58 pm
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Cheat Your Debt
By Daniel Rembrandt

I’m lucky that I’ve been able to cheat my debt with the right techniques, and there’s no reason anyone else can’t. I’ll admit that my debt situation isn’t the same as yours, but there are some principal truths that apply to everybody.

For the past few years, real wages have not been keeping pace with inflation. In fact, the average household income has steadily decreased for five years in a row. Despite this, consumption continues to increase. How can this be? The answer is, people have been increasing their amount of personal debt. About 95% of Americans don’t have enough saved for retirement, yet constantly buy, buy, and buy.

You might be in debt simply because you’re a poor spender such that you spend more than your income and if you happen to have a decrease in your income, you still do not control your spending to balance with your income. Then you find yourself in a crisis that you could have avoided. The best solution to this is to change your spending habits and stay away from money owing. Also get to know your personal finance pattern so that you will be in a position to balance your income and your expenses.

Don’t forget, there is the other face of the coin, not many of us are prepared to face the adversity of debt, in this case it may be necessary to contact the creditors and seek a reduction on interest rates or maybe even ask for a reduced payout. A reduced pay out is also known as a settlement, or a discount on the amount owed to a particular creditor. When we follow this route we are reducing debt and therefore reducing stress.

Article Source:


730 sleepless nights, worrying about debt March 5, 2008

Filed under: Random — financialponderings @ 3:07 pm
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Sound ridiculous? I thought so too – but apparantly, on average, each person in the UK spends a total of 2 years (730 days), worrying about their finances. Not just me then eh? 😉 To be honest, I think I spend longer than that. Recently, all I seem to do is think about money – and that’s not just because I have set up this blog.

I really want to sort out my finances & get rid of my debt, but at the moment it just seems like such a big hill to climb. I am determined to do it & I am proactively working towards it now – I guess I’m just having a bad day 😦

Now that I have become part of the blogging ‘community’ I have started paying more attention to other peoples blogs & have noticed that some of them are making a decent amount of money from their blogs. This has definately spurred me on to continue as, even though it was not the reason I set up this blog, the opportunity to earn a little bit of extra cash from this blog would really be a big help in my efforts to clear my debts. Not really sure where to start & I’m pretty sure it’ll be another 6 months before I can even consider making money from this blog, but if anyone does have any ideas – or if you are successfully running a blog that is making money, please give me any tips you can. I’m open to any suggestions.

Ciao 4 now!


RANT!!! February 28, 2008

Filed under: Random — financialponderings @ 11:33 pm
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Ok, just got back from reading a post over at the Debt Sucks Blog. The poor guy has recently been landed with a $1125 bill after 10 months of no contact with his old landlord. This kind of thing annoys me so much! You can be blissfully unaware of a mounting debt & your creditor can not bother getting in touch for such a long period & then slap a huge bill in your face AND threaten you with legal action if you do not pay up. Worst of all, there is nothing in place to stop them doing this. If you are aware & have then opportunity to pay on a monthly basis, it is much more managable than a pile of 10 month bills to pay all at once. Surely creditors should recognise this? Grrr!!!

Anyway, I left a comment suggesting he contact them to try and negotiate some sort of reduced payment. I found a great article at Debt Advice 4 Free with 5 great tips on how to do this successfully. If creditors can get away with this, at least we can go in with a bit of ammo instead of just bending over and taking it like a… well, you know 😉