You can surely live without these things during a recession

Unfortunately for many citizens, the recession was one experience of a lifetime. While these extreme circumstances had the Americans calling for extreme measures and they were preparing themselves with the tenets of frugality, there was no respite yet. The debt amounts which soared to thousands of dollars for each family had them seeking for the credit card debt management services. However, despite the bad situation that the consumers were left with, there were still a few things that the citizens could not compromise. These things were based on the trends that developed during the recession. While you may think that there could be nothing more important than food and water during a financial disaster, will you continue living with these things even during extreme circumstances? Let us see:
§  It was hard to imagine for the people to let go off their computers with the worst prospects of losing a job or home may be. However, it would be wrong to ask this question to someone, for whom, a computer is a source of livelihood. Alternatively, you could get back an amount equal to the rent for six months after selling all the computers.
§  During a financial crunch you could even consider to give up on the high speed broadband connection. Although difficult that it may sound, particularly if you are used to getting the face book updates, you might think about it even if it means saving $50 a month.
§  Although it is not a smart move to give up on your cell phones, it might be a good idea to get into a prepaid mode to save money. After all, your status can no longer remain as a priority, that too during tough times.
§  For those parents who had put their kids in expensive private schools they should get a lesson or two. There is not much difference between the level of teaching in private and public schools; during financial deficiencies however, your children can still get access to better education. Perhaps you could help them with their studies. But the priority should always be to curb the budget.
§  Entertainment is one area where you could have substantial cost cutting. Therefore, if it implies not going to the theatre then there is no reason why you should not sacrifice. If you don't save now, chances are that you may have to prepare for a worse future, at least financially.
§  Though you might have given up drinking outside, it is not going to work until you can give up on the habit. There is no rhyme or reason to consider alcohol as a necessity.
§  Lastly if you are spending $5 to $10 on coffee every day, it could add up to a big money and it is not something without which you cannot live.
It is hopefully clear by now, that the best way to live during a financial disaster is to have a living below your means.

Read more »

What are the alternatives for not paying your taxes

For the year 2011, the consumers are going to get the benefit of an extended time to file and pay their taxes .Whether it is a lay off or managing debts through the debt management services, there can be several reasons for the consumers to fall short of paying their taxes. However, the important thing is to look for alternatives to pay the taxes. It is commonplace for people to think about not filing the taxes at all. While it may give you a lot of comfort to bury your head in the mud, but sooner or later you will have to file your taxes; moreover, not filing them at all could mean that you could get penalized in a hard way. The other reason for you to file the taxes, even if you can't pay is that the IRS can prepare your returns; keeping in mind that the IRS will not work in your favor, it is likely that you could get a punch on your head by not getting the deductions and credits. Consequently, your tax bill could go higher along with the penalties and the fees for not filing the taxes. In the end, you will have to pay 20% more on your tax bill. Therefore, in order to save the penalties and the interests, the safest bet is to file the taxes and pay as much as possible. However, an extension still implies that you will have to file and pay the taxes on the stipulated date and time; but if the tax deadline is knocking your doorstep and you do not have enough money to pay, here are the following alternatives:
The IRS may allow you an extension of 30 to 120 days to pay the taxes; a request for an extension will charge you lesser for the penalties and taxes than for an installment plan.
The next option is to ask the IRS about a payment option which will allow you to pay the taxes in the form of monthly installments. However, if your comprehensive tax is equal to $25,000 or more including the penalties and interests, you are eligible to complete the Online Payment Agreement or OPA; but if the taxes are more than the abovementioned amount, you will be required to complete a Collection Information Statement or CIS. The IRS will then decide on the amount of taxes you can pay, on the basis of your monthly expenses.
Another option is to secure a loan or to utilize the emergency fund; but getting into a new debt will probably not be a favorable idea but you could still consider this idea to pay off your taxes.
There is another method called as an offer in compromise, which is an agreement between the consumer and the IRS. Under this offer, you can settle your tax payments for a lesser amount than the original. However, it is less likely to be accepted if the IRS has doubts about the fact that you will eventually pay the tax debts.
In the end, it is worth mentioning that instead of fiddling around with the norms of IRS, it is better to pay your taxes and live a life of comfort.

Read more »

Decisions One Needs to Make to Get Rich

All these while we got pretty much acquainted with several financial problems introduced by debt, apart from the various debt settlement companies and their debt management policies. We had gone through debt counseling sessions and debt consolidation plans and so on; but all we did without trying to solve the problems from its root. This article will thus let you start from the beginning where lies the solution of all kinds of monetary problems. Let us see what decisions we need to make to get rich.
The most important thing one needs to become rich is to be determined to acquire wealth, even if you are broke and penniless today. The decision to be rich is the first step towards being rich and a person who had made his mind about that does not live life based on short term goals. They have to use their foresight and vision to gather all other ingredients needed to be rich.
The second thing you need to have to be rich is the right decision about your excess money.  A person who is determined to be rich should know how to create more money from his excess money. He/she would not foolishly spend it or save it in a bank. In order to be rich one must know how to use the money wisely so that it can bring in more money.
The next important thing one needs to do is to create a plan and follow it strictly. A plan or a strategy is a must-have for someone who wants to be rich; including short and long term goals and reasonable ways to achieve these goals. For example, change the position and expand the avenues of your income, think about re-investing and improving your business prospects, et rid of your debts and so on.
It is very crucial to decide about where you would want to do your banking from, as this would determine the financial transaction along with the best returns on investment and healthy interest rates. Someone who decides to be rich should use ample knowledge and information to weigh the credit-worthiness of the institute or individual before banking on the same.
It is important for people who want to be rich to choose their company wisely as it acts as a big influencing aspect. Likeminded people who understand the value of being rich will naturally motivate you to become wealthy, whereas friends and acquaintances who just believe in comfort and survival will affect your own determination to be rich. It is thus important to decide in whose company you would spend your valuable time in.
Have a clear and achievable vision and don't forget to dream big as one who dares to dream is the one who can fulfill it. Big dreams are essential for one to be rich as it combines the vital elements of hope, desire, passion, energy, vitality, faith, drive, inspiration and creativity and these make life worth living. Keep focused at your dreams and actualize them by following the realistic plans.
We get a multiple of choices to choose from, but listening to your inner guiding voice and your instinct pays off undoubtedly. The above-mentioned points are certainly a part of our inner voice which we often times choose to ignore or overlook, which should not be done anymore.

Read more »

Cautiously Choose A Debt Consolidation Loan

Debt consolidation is a loan or an arrangement wherein an agency settles reimbursement to all of the customer's debtors, allowing the customer to put together merely one single monthly imbursement to the agency as opposed to numerous monthly payments to several lenders. This service might offer exactly what someone in arrears wishes to reclaim control over his or her funds and achieve serenity. However, before taking out a debt consolidation loan, the borrower needs to strictly look at the loan's terms and conditions.

A number of agencies put forward consolidation loans that lower the customer's overall sum of debt, or lower the overall amount of interest he or she will have to disburse by the end of the reimbursement terms, though, this is not always the case. A few loans are prearranged in a manner that cost borrowers additional money by the end of its period than their original separate debts would have. This takes place, when the agency offers finance that allows the client an extremely extended amount of time to pay back the money and in the end , the borrower often tend to  compensate much extra money in interest rates than they would have otherwise. Moreover, several companies charge a high interest rate because of the borrower's credit account. These concerns can simply be evaded if the borrower narrowly studies each point of the loan's conditions to make certain that it is in fact granting more financial benefits than just absorbing his or her debit into one imbursement.

An additional matter to concentrate on when thinking about submitting an application for a debt consolidation loan is the fact that not everyone will be able to meet the requirements considered necessary for it. Several agencies verify prospective borrowers' credit reports as element of the application procedure and either refuse them access to it completely or acknowledge them only for bad credit debt consolidation loans. In the midst of numerous bad credit consolidation loans, or organizations that put forward debt consolidation with no credit verification, the interest rate charges may go far beyond than those of a usual loan. Yet again, clients can stay away from this potentially expensive condition by cautiously reading all of its terms and conditions and by asking over ample of questions.

Understanding and taking these essential safety measures can allow individuals in grave debt to hit upon debt consolidation loans that help them, not only by allowing them to make one particular monthly debt payment, but also by hoarding them money on the whole and improving their account situation for enduring financial achievement.

Read more »