finance-worldwide

Three Popular Techniques For Paying Off Debts

By: Michael Redbourn

The web is awash with articles and systems that claim to help people pay off their debts, but only three systems are widely used, and one of them is far more effective than the others.
Constant Payments On Every Account.

This is the simplest method and is perhaps the one that used by most people who bother to use any system at all, but it’s not very financially effective, and is not recommended.

Using the constant payments method, you keep making the same payments every month regardless of the amount that’s requested.

To demonstrate why this method is not monetarily very efficient, let’s imagine a card with a balance of $4,500 and an interest rate of 15%, which would mean payments of approximately $180 per month, and a second card with a balance of $6,700 at 18% interest, and a minimum monthly payment of $268.
(more…)

Can A Creditor Sue Me For Unsecured Debt – Advice On Being Sued For Unsecured Debt

By: K D Garrow

First of all we need to be clear about what is meant by unsecured debt. Most loans and debts will fall into one of two categories, secured or unsecured. A secured loan is secured against some asset you own, usually your home. What it means is that if you default on the loan, you can lose the asset. A mortgage is a loan secured against your house, and if you fail to keep up payments, your home can be sold to repay the debt. If you own your own home, It is generally much easier to get a secured loan, because the lender knows that even if you default on payment they can get their money back by selling your home. Loans can also be secured against other property, such as your car. (more…)