What Can I Do if I’ve Been Turned Down for Debt Consolidation Loans?

Who doesn’t love to save money? When you are struggling with severe debt, saving money may even be your only choice. Many times, debt relief programs recommend that consumers apply for a credit card debt consolidation loan to try and help with saving money and paying off debt. Through this kind of debt relief, multiple unsecured loans are rolled into a single reduced monthly payment with a lower interest than you previously had.

While consolidation can be a great option for some people, however, not everybody will qualify. Luckily, there are plenty of other debt settlement services available to help you gain more financial freedom. Find out how the following debt consolidation alternatives can help you meet your fiscal goals and better your situation in no time at all.

Try Developing a Strict Personal Finance Plan

The first thing you should always try, even before you apply for a credit card debt consolidation loan, is attempting to track for finances. Even though all forms of debt can be extremely overwhelming, it may be possible that some simple restructuring in your life could aid in your debt relief efforts.

To use this tactic, the very first thing you absolutely must do is establish a budget. Write down how much money you will earn each month and then list all of your expenses in order of most important to least important, with things like rent, debt, and utility bills on top and things like pedicures, dry cleaning, and eating out at the bottom.

Start crossing off unnecessary expenses from the bottom of your list and stop spending money on these while you are trying to get out of debt. The money you would normally spend on these activities or expenses can now go toward your credit cards, personal loans, and other debts. And if you ever have any additional unexpected money, that should go towards paying off your debt as well.

In order for this option to work, you just have to make sure that you stick to your budget and pay all of your bills on time. It will certainly be difficult making lifestyle changes to support this, but a year or two of doing so will set you up for a much healthier financial future.

Get an Official Debt Management Plan

If figuring out your own budget and finding a way to stick to it is a little harder than originally thought, debt management plans (DMP) can be better debt consolidation alternative. Through this route, an accredited and non-profit company will try to negotiate on your behalf with creditors with which you have unsecured debts. They will attempt to lower the amount that you owe, establish lower interest rates, and set up a payment schedule that will work for both your lenders and your budget. Most often, a debt management plan is a great solution for dealing with high medical bills and credit card bills.

These plans will usually allow you to pay off your debts between three and five years. Once the terms are established, the person or company you are working with will help you come up with an official budget. They will thoroughly sift through your income and your expense history and help you determine changes you can make to pay off your new debt plan. For many people, sticking to a DMP can be a lot easier because of the contractual obligations. If you miss any payments or no longer stick to the terms of your debt management plan, the contract can be terminated and you will owe more money and likely have your interest rates rebounded.

Commit to a Debt Settlement Program

One of the best alternatives to a credit card debt consolidation loan is a debt settlement plan with an accredited agency like Liberty Debt Relief. When you enter a debt settlement program, you will work one-on-one with a certified debt relief consultant whose one goal is to negotiate on your behalf with your lenders and get you out of debt.

Before negotiations begin, your appointed consultant will sit down with you and go over your financial situation. They will look at your income and expenses and help determine exactly what amount you are able to settle your debts for based on your income. They will usually help you come up with a goal settlement that’s about 40 to 50 percent less than the original amount, as well as a settlement that is less than what you want but still manageable with your budget, usually 20 to 30 percent less than the original amount.

During negotiations, your debt relief consultant will also work to lower or completely get rid of any late fees or interest rates so that you can focus on the premium and not the additional roundup of fees. This plan works best for people who have expressed a significant financial hardship, such as the loss of a spouse, loss of income, or expensive medical issues, as companies will often be more understanding and willing to work with you.

Get Professional Advice

The best thing to do in just about any financial situation is tto seek advice and information from professionals. At Liberty Debt Relief, our consultants have years of experience and extensive knowledge about debt laws, regulations, and most importantly, solutions. We know that there is no one-size-fits-all fix for addressing debt, and will make sure to work with you around your needs and goals.

Contact us today to find out more about what alternatives to credit card debt consolidation loans will work best for you. We are happy to offer a free consultation and help you reach your ultimate financial goal.

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Can You Have Good Debt and a Great Credit Score?

Debt is one of the most terrifying words in any language. With millions of people going into thousands of dollars of debt every year, many start to wonder if there really is such a thing as good debt and, if so, how they can possibly get it and also learn how to maintain a good credit score at the same time. The truth is that you may actually be able to improve your debt by understanding credit scores and paying close attention to yours. All you have to do is know the steps you need to take to keep your debt manageable and not a burden.

Understand the Types of Debt

When you start working on building your credit and managing debt, the most important thing to do is to understand the types of debt out there and the risks and benefits of each. Credit cards tend to be the most common form of debt, as they make it quick and easy to borrow money with the swipe of plastic. They greatly vary in interest rates depending on your existing credit score, but, the better you maintain your balance on the card, the higher credit limits you can get and the lower interest rates you may accrue. Other types of debt, such as personal loans or mortgages, tend to have higher interest rates and do not really allow you to increase your loan amount over time.

Know What You Can and Cannot Afford

The real secret to maintaining good debt is to know exactly what you can and cannot afford at all times. If you have a high limit on your credit card and decide to make a big purchase but know that you don’t have the income to pay off the card, you will likely end up damaging your credit. However if you only make purchases you can afford or take out a loan that you know exactly how you will pay off without any problems, then you can likely better your financial status. Spending money you do not have, even when it is not directly yours, is what leads to people getting overwhelmed with debt and ending up in situations they cannot find a way out of.

Develop a Plan You Can Count On

Knowing how to maintain a good credit score starts with planning. In order to have good debt and great credit, it is essential that you lay out all the credit and loans you have, as well as the income you have available to pay off those borrowed amounts. The simplest way is to create a budget with all of your reliable income, mandatory expenses, and the amount of credit you have available. Then, make it a rule to spend only what you can truly afford on your credit cards or with any borrowed money.

Improve Your Credit and Financial Health

Remember that the purpose of lines of credit is to build your financial worthiness, not to afford things that you would not otherwise be able to. By only taking on debt that you can really pay off every month, you may be able to truly increase your credit score. Having a high credit score (above 700) allows you to get loans and other lines of credit with significantly lower interest rates in the future, so you can afford to make bigger and better investments all around.

Liberty Debt Relief can help you get out from underneath bad debt so you can start to rebuild your credit. Learn the value of good debt today, and get started on creating a bright and healthy financial future.

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Delinquent Debt and How to Avoid It

Sometimes it feels like the easiest and only thing to do when confronted with difficult situations is to run away. But unfortunately, that usually just makes matters significantly and dangerously worse, especially when it comes to your finances. Credit delinquency is a terrifying topic and situation for many people every year. Why wouldn’t it be? Delinquent debt can follow you for years and wreak havoc on your future. But the good news is that understanding just what it is can help you find out the appropriate steps to avoiding it so you can set yourself up for a bright financial future.

Understanding Delinquent Debt

To put it simply, reaching delinquent status means that you have had unpaid debt for a long time, usually longer than six months, with no communication with your creditor. It is not exactly a criminal status as it sounds, but it does mean that your outstanding balance with your creditor, or creditors, has officially gone to a debt collection agency in hopes that they will be able to get it back on behalf of your lender. When this happens, you will likely start getting dozens of phone calls, voicemails, and maybe even letters saying that you need to pay off the balance as soon as possible.

This is what generally leads to people looking into debt settlement, as many with delinquent debt status often have multiple accounts that need to be paid off. By following some simple tips and tricks, however, you can avoid getting too far into debt so you can continue living your life financially stable and worry-free.

Always Pay the Minimum Balance

The best way to avoid debt is to pay it off as soon as possible. Anytime you have a loan, credit card, or another form of outstanding debt, you want to make sure you make payments as often and for as much as you possibly can. Even if you can only make the minimum payment every month, it will show your lender that you are staying on top of your finances and that you are actively trying to keep unpaid debt at the absolute minimum you can afford.

Maintaining a regular payment schedule also ensures that you keep interested charges lower. Whenever you take out a line of credit or borrow any kind of money from a company, there is interest (usually called APR) as part of your contract. Every month, interest is added to whatever money you don’t pay back immediately. So if you do not pay the balance in full every month, you will likely be adding more debt to your name. Even if you can pay a small portion of that balance, it will be better in the long run.

Maintain an Open Line of Communication

One of the biggest reasons people end up with delinquent debt is that they get scared of how much money they owe and fail to communicate with their lender. Debt is scary, but avoiding it is never the answer. Most of the time, your lender will understand if something unexpected comes up, and they may even be able to help you a little bit. If up until an unforeseen circumstance you have made great strides toward your debt, they may lower the interest rate, allow you to change your due date, or lower the minimum payments required.

Prioritize Your Debt

When you have student loans, personal loans, mortgages, credit cards, or other forms of credit, you should always make unpaid debt a main priority in your budget. Right after your essential expenses, such as rent, insurance, food, and utilities, debt should be the next thing that receives the bulk of your income every month. It can be easy to solely stick to the minimum payments or forego a payment altogether, especially if you feel like it is time for a vacation or a couple of purchases to treat yourself. While you definitely deserve to relax and partake in activities that help you destress, just remember that financial balance is the key to success, and it is never a good idea to get yourself into significantly more debt for temporary relief.

Consider Enrolling in a Debt Settlement Plan

While these steps can definitely help you avoid delinquent debt, sometimes life just happens and before you know it, it’s been a year since you could afford to make any kind of payment. If you ever feel like you are truly stuck in a financial hole and do not know where to go or what to do, there are options available. Never let the debt continue to pile up. Instead, opt for debt settlement help and speak to a debt relief consultant who can help you create a new plan. The most important thing to remember in this situation is that you are not alone, and even when finances become an overwhelming burden, there are resources available to help you overcome them.

Always Ask for Information and Assistance

Liberty Debt Relief has a highly credited and experienced team that is always available to answer any questions you may have. Whether you are simply curious about what debt relief options are available or have a lot of unpaid debt that you no longer know how to handle, we can help you come up with a plan. We will work with you one-on-one to make sure that you have the best possible financial future available to you and will be there with you every step of the way. Contact Liberty Debt Relief today to find out more about delinquent debt and what you can do to avoid, manage and overcome it so you can start living a more stress-free life.

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10 Questions to Ask Your Debt Expert

You can’t trust just anyone with your life and your future. Just like you wouldn’t let any random person watch after your children, you shouldn’t let a random individual look after or advise your finances. Before officially starting out on the debt settlement process, it is crucial to find the debt expert that has the experience and know-how to make sure your financial future is nothing short of successful.

Consider asking these debt relief questions when you meet with potential financial advisors or debt relief consultants.

Are You Licensed?

Before anything else, you should always make sure that your debt consultant is fully licensed. There have been hundreds of situations where consumers report that they have suffered a debt relief scam at the hands of someone who claimed to be an expert or part of a legitimate company. They then took large amounts of the consumer’s money without delivering any actual assistance or results. Make sure you know the basics of a reputable debt expert, such as they should never ask for payment upfront, should work at a business rated by the Better Business Bureau, and should always be able to set forth a full plan for your debt relief.

What Options Do I Have?

There is no one-size-fits-all solution to getting out of debt. One of the most important debt relief questions you can ever ask is in regards to all of the debt solution options you have available to you. A great consultant will make sure to lay out every option and help you understand the pros and cons of each one. Always feel free to ask about debt consolidation, debt management plans, and debt settlement, all of which cater to various situations.

Do I Qualify for Debt Settlement?

If you believe that debt settlement may be the way to go — as it is for thousands of people every year — then make sure to find out what qualifying for this particular program entails. While it is an incredible solution, the truth is that not everybody qualifies. Your debt expert should thoroughly explain to you that, to qualify, you need to be able to prove financial hardship, your debt should be unsecured debt, and you need to be able to stick to monthly payments, among other things.

What Types of Debt Can I Settle?

Debt settlement services are really only used for unsecured forms of debt, meaning that you did not have to agree to offer up any assets, like your car, home, or savings, to secure the form of credit you have. This generally includes credit cards, but can also include unsecured loans and medical bills. If anyone tries to convince you that any kind of debt can be settled for any reason, it might be a good idea to check their accreditation and look at other consultant options.

What is the Debt Settlement Process Like?

It is always crucial to know exactly what you are getting yourself into before you sign any kind of official documents. Getting out of debt is incredibly important, but it can also be a long process that takes time. You should also find out exactly how debt settlement will impact your credit score, both in the short term and the long term, and how it will set you up for the future financially.

How Long Will it Take?

When dealing with debt relief, it is always best to ask all the fundamental questions as early as possible, including how long the settlement process will actually take. Depending on how much you owe and how much you can afford to pay upfront and in monthly payments, the process can take up to three years. When you begin setting up your debt with a trusted debt consultant, they should be able to provide a more accurate timeline based on your unique financial situation.

How Much Will Debt Settlement Cost?

When it comes to debt settlement, it is important to remember that the program and advisement are services that require compensation. The fees for debt settlement programs highly depend on the debt expert you choose to work with, but that person and/or company absolutely must disclose that information before you agree upon a debt settlement plan. They also cannot charge you any fees upfront; you should only incur charges after you have officially completed your debt settlement plan.

Do I Stop Making Payments on My Debt During the Process?

No accredited and trustworthy debt consultants will ever tell you to stop making payments toward your debt. Those who often qualify for debt settlement have usually already hit a point where they are in a hardship that has prevented them from making payments toward debt.

How Will This Impact Me in the Short and Long Term?

Money can cause all kinds of changes in your life, and it is crucial to understand what those changes might be in both the short and long term. Make sure to find out exactly what kind of impact your debt settlement or other debt relief strategy will have on your credit score, assets, and other aspects of your life.

What Can I Expect After I Get Out of Debt?

The big question after any program is “What’s next?” While your relationship with your debt consultant may come to a close once you get out of debt, they should always be able to guide you in the right direction. A good and reliable debt expert will want to make it their mission to set you on a path headed straight for success.

Liberty Debt Relief is always available to answer any and all debt relief questions. Contact us today to find out how we can help you get started on debt settlement and other relief programs for a better and brighter financial future.

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Advice for a Debt Free Summer

The kids are out of school, teachers are on a break, and you can finally plan set out on that vacation you’ve been planning for months. Within the past few years, however, American household debt has grown substantially, and many now owe more than $135,000 to lenders because of credit cards, loans, and mortgages.

With so many people owing more and more money, it is crucial to get some of the nation’s best debt advice and learn how avoiding debt can create a better summer — and future — for everyone in your home. Here is some advice from our most trusted debt relief specialists at Liberty Debt Relief that can help you have a great time in the sun this year.

Debt Advice for a Brighter Summer

Have a Summer Budget

Knowing how to avoid debt starts with knowing how to properly budget. For many people, the summer can be the “off-season” for work. Many offices close during this time and expenses, in general, tend to increase with having to run the air conditioner, finding daily caretakers for kids who are out of school, and all the exciting activities.

Those extra costs and less work can take a huge toll on people if they are not prepared, which is why it is crucial to have a summer budget planned well ahead of time. When creating your budget, make sure to include the income you will be making during the summer, anticipate changes in any utility bills, and focus on finding activities that you and your family can do that fit into the budget without taking money out of your savings account or charging it all to credit cards that you’ll have to pay back eventually.

Plan for Vacations in Advance

One of the best pieces of debt advice you will ever receive is to plan vacations months in advance and not rely on spur of the moment trips. Whether it is a weekend getaway or two weeks on a remote island beach, vacations eat up a lot of money from transportation, food, and activities. By planning it in advance, you allow yourself more time to save up money that can be used specifically for the occasion so that you do not end up having to put it all on credit cards and go into even more debt.

We recommend you start planning at least five or six months in advance. This will give you plenty of time to find an itinerary that is affordable and reliable that you can work to pay off before summer. It may secure you better vacation deals as well, as many hotels, theme parks, and other outdoor adventure places offer early discounts.

Find Low-Cost Activities You and Your Family Will Enjoy

Similarly, activities and vacations themselves do not have to be a several thousand dollar investment. There are plenty of ways to celebrate summer that do not include putting three months of fun on credit cards or borrowed money. For those who like to stay at home, consider planning days at a local beach, going to parks or nature trails, planning a picnic, or maybe starting weekend bike rides with the whole family.

If you still want to go on vacation, check discount sites for any activities you and the family are interested in. There are usually plenty of offers to take off a few bucks from popular activities that your wallet will greatly appreciate later. You can also consider AirBnBs or camping out so you do not spend a lot of money on hotel rooms.

Never Put it All on Credit Cards

To make sure you know how to avoid debt, it is crucial you understand the pros and cons of credit cards and how they can be one of the most dangerous defaults on summer vacation. When on vacation or simply out and about with friends, it is always super easy to forget about any fiscal responsibility and just start charging away on one or two credit cards. Many people assume that, because they do not usually use their cards t or always pay off their balances, the move will be okay, but often, people make one expensive purchase too many and realize later on that they can’t actually afford the expense.

The best way to avoid this is to not spend any more than you actually have. For some people, the best way to do this is to simply use cash and leave the credit card at home. This will make sure that you can really keep track of how much you have available to spend and do not go over budget, purposely or accidentally. Others may do something similar but with their debit card, which is also fine, but your should treat this with extra care because your could easily spend over the amount you have available.

Think Beyond Summer Vacation

As beautiful and relaxing as summer is, the truth is that it is not the only time of year to travel or plan vacations. One of our favorite debt advice tips is to consider planning trips and expensive outings during other times of the year. During the fall, winter, and spring, trip deals seem to be substantially lower, which allows you more time and money to enjoy the most perfect vacation. Additionally, you’ll be able to enjoy the unique climates of the places you visit, which is especially exciting if you never get snow or changing leaves where you live.

Talk it out with a Trusted Professional

At Liberty Debt Relief, our debt relief consultants work hard to make sure that you not only have the best fiscal summer, but the best financial life imaginable. Contact us today to learn more about what options you have available and how we can help you and your family today.

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Spring Home Improvements and Credit Card Debt

Spring is a time when residential contractors and big-box retailers of home goods are often their busiest. One of the main reasons is that homeowners are also at their busiest, updating their residences with a bevy of improvements that range from adding rooms to remodeling existing spaces. For many, the improvements are purchased with a home improvement credit card, or with a general credit card used as such.

As everyone knows, paying with credit is a double-edged sword. It makes it easy to get what we need. However, if we overspend, we could eventually find ourselves needing to pursue debt relief help. Considering that too much debt is always a potential risk, are credit cards really a good way to finance spring home improvements, or should spending on credit be a less preferred option to other methods of purchase?

Credit Card Home Improvement Spending

Now that spring is here again, many homeowners will be making considerable investments to optimize domestic spaces. Before doing so, they’ll be looking for how to pay for home renovations in the simplest and most financially stable way. For many, the path of least resistance is to use a credit card, as they classically “buy now and pay later”, purchasing what they need with a swipe of plastic, and then settling the balance when the bill arrives in a few weeks.

Because homeowners’ ability to pay credit card debt varies widely, there is not a clear-cut answer. However, there are smart credit card practices that can benefit you this spring. With this in mind, let’s look at those practices that can help you use a home improvement credit card wisely.

Home Improvement Credit Card Spending Tips

For those who take pride in their home, spring home renovations are an exciting prospect — so much so, that how to pay for home renovations purchased with a credit card can be an afterthought to making the renovations. Here are four helpful tips to help you avoid overwhelming debt:

Designate a Card for Home Improvement

It’s common knowledge that one of the best ways to avoid insurmountable credit card debt is to carry as few open lines of credit as possible. However, those who follow this rule often end up with fewer credit cards with high spending limits that essentially equate to having a greater number of cards with lower spending limits. This, in itself, is not a problem. Rather, the issue is that the few cards they have are used to make a wide variety of purchases, including home improvements.

When you use just a few cards to purchase many things, it’s easy for the monthly balance due to quickly increase. For example, using between one and three cards to make monthly car payments, utility payments, a mortgage payment, and then paying for a major home renovation, too, could potentially rack up multiple thousands of dollars in debt, in just a month. Before you know it, you have a whopping bill that seems impossible to pay and may need professional credit card debt settlement services to help alleviate your financial burden.

When it comes to paying for home renovations, one way to avoid insurmountable debt may be to designate a single credit card for making the improvements and paying it off as soon as possible, before the interest builds up. In fact, using a dedicated home improvement credit card makes it easier to track spending, thus making it simpler to see what you can afford on credit and what it may be better to pay for out of pocket.

Consider Applying for a Better Credit Card

Another factor of credit card debt are the terms and conditions of the cards you use. While nearly all credit cards are considered to have high interest rates, some are considerably higher than others. Because home renovations are generally high-dollar purchases, you naturally want to make them with a card that offers the lowest available interest rate.

If you lack a card that has an impressively low interest rate, consider applying for one. Depending on renovation cost, a new home improvement credit card with commendable terms and conditions could save you big money.

Perform DIY Projects When Reasonable

A third way to minimize the cost of home improvements is to make them DIY projects, if you have the skills to do the work. Hiring a contractor is similar to paying a professional mechanic to service your vehicle: much of the cost goes toward labor.

Because your home is likely one of the most valuable assets you own, however, you definitely don’t want to perform DIY improvements that exceed your ability to perform the work properly. Doing so could result in needing a contractor to repair mistakes, which could incur greater expense than having hired a contractor in the first place. However, if you can skillfully handle the work, paying for materials and not labor presents a significant cost-saving opportunity.

Thoroughly Explore Cost Comparisons

Whether you use a home improvement credit card to pay for materials you install on your own, or you hire a contractor to do the job, simply “shopping around” to compare prices can reduce your expenses by a meaningful margin. Contractors and retailers often run “spring specials” that cater to a time of year when home improvements are commonly made. Being a smart shopper of these opportunities helps make you a shrewd credit card user.

Smart Spending can Prevent the Debt Trap

If your choice for how to pay for home renovations is a home improvement credit card, the tips here can help you make the renovations you need, without incurring excessive credit card debt that you obviously don’t want. However, if you happen to accrue debt and end up in serious financial hardship that necessitates a special payment arrangement, contact Liberty Debt Relief for a free consultation. We can help you select and implement a debt relief strategy to get you back on track financially.

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