Getting out of debt oftentimes requires finding creative sources for extra income. Some people get part-time jobs to help with their debt, but this does not always work if there are too many conflicts with their fulltime jobs. So this is where freelancing can be a viable option for the person trying to earn extra income to get out of debt. People who freelance provide services in areas that don’t require them to be in a traditional office. Some examples of freelancing services include web design, programming, writing, and language translations. Plus, if you build your freelancing clientele now, you can have a degree of protection in terms of debt avoidance and extra income if you lose your job tomorrow. Here are some considerations to make should you choose to do freelancing for providing extra income to get out of or avoid debt.
Decide what your extra income goals are in freelancing. Remember that you are freelancing in order to get out of or avoid debt. Determine what extra income you need on a daily, weekly, or monthly basis and set up a spreadsheet to track how much you made for the time period. Consider what you need for debt reduction too. Having the numbers in front of you can give an indication if your efforts to make extra income for debt reduction are really paying off.
Don’t go into more debt in order to start freelancing for extra income. The reason why freelancing is so popular as a debt reduction tool is because it does not require a large cash investment to get started. For example, freelancing in the writing arena takes practically no cash to get started if you already have a computer with word processing software. There is even freeware word processing software available that won’t cut into your extra income or incur debt.
Consider the taxes when freelancing to earn extra income. You don’t want to incur debt because of taxes you overlooked. Those freelancing to earn extra income will typically have to file a yealy tax return in addition to their PAYE taxation. Most computer tax software will help you determine what your taxes for the extra income will be. It is also important to keep track of any expenses directly related to freelancing. The expenses will be subtracted from the extra income you make to determine the actual taxable income.
Freelancing to earn extra income is a good backup plan in the event you lose your job. If you still have your fulltime job, you don’t have to worry as much about being laid off. In today’s economy riddled with debt, everyone is worried about being let go by their employer when business gets bad. When you lose your job, freelancing will transfer from being extra income to a source of primary income that can actually keep you from incurring more debt. Those without this sort of fallback run the risk of using their credit cards and incurring debt to maintain levels of income.
Watch out for scammers if freelancing for extra income on the internet. The faceless nature of the internet means that occasionally there are those who will try to take work you deliver without paying for it. Practice safety when freelancing for extra income by doing things like collecting a deposit from clients before you deliver work. This will help cover some of your expenses and provide extra income and help to avoid debt while you are working for the client.
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Overwhelming personal debt can be traced back to many causes. In order to get out of debt, you must identify these causes and take action to keep them from interfering with your financial goals. One of the causes of heavy personal debt and hindered efforts to get out of debt is being late with payments to creditors. Credit card companies are very unforgiving these days when it comes to late payments making it even more of a reason for you to do all you can to get out of debt. The best solution for staying on track with all of your due dates is to establish a good reminder system with some redundancy so that you stay on top of everything you need to do in order to get out of debt. Here are a few considerations for your reminder system that can help you get out of debt.
Automatic debits can kill your budget and delay your efforts to get out of debt. How many times have you run your current account low and been surprised by an overdraft because of some automatic payment that you had forgotten about. When you are working hard and struggling to get out of debt, the overdraft fees will destroy any momentum you have achieved in your efforts to get out of debt. Take a full inventory of every automatic debit you have. Also, don’t forget about the automatic debits that occur annually.
Without a reminder system, there is a risk of late fees accumulating very quickly making it almost impossible to get out of debt. Credit card companies in the UK have a policy known as universal default that hampers all efforts to get out of debt. Universal default basically says that if you are late on one credit card payment, then all the different companies you have credit cards with can put your account under the default interest rate which is usually 30 percent. This default rate will be applied to all your credit cards and one can only imagine how this could make it impossible to get out of debt. The logic these companies use is that when you become late with one payment, you are a risk to all the companies extending you credit. If you don’t get out of debt you could become a slave to the default rate.
Set up your reminders with redundancy. Your internet email could send reminders and a desktop computer reminder application could notify you too. Put all these tools together and the reminder system tremendously helps you get out of debt. It also does not hurt to use simple sticky notes and paste them in some conspicuous place. You can even post reminders that have nothing to do with an actual payment but more to do with your goal to get out of debt.
Utilise all the software tools available to help stay on track with your goal to get out of debt. Use free software in order to keep expenses minimized in your efforts to get out of debt. Many free email providers also include access to a reminder facility. Some will automatically send you an email a few days before a payment is due. Remember also to schedule payments well before they are due so as to allow time for them to post to your account if paying online or with standard mail.
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It looks like things are changing and the nice, cushy lifestyle you expected in your old age might be slipping by the wayside. People are going to have to work well past the age of 70, according to some of the newest studies out. It has always been somewhat of a given for many people that they will work hard during their younger days, saving up enough money so that they can ride off into the sunset as they coast into retirement. With the global economy where it is today and people not having any ability to adjust their lifestyles to the changing times, some people don’t have enough saved for that type of existence. So why is this happening?
People spend too much. With their retirement accounts shrinking up each day as the economy goes into the gutter, folks still haven’t figured out that they can’t afford to splurge and waste money. People value today’s spending much more than they do their future security, and then they groan about a lack of retirement.
Everything is dropping right now. From retirement funds to the value of the average house in the United Kingdom, nothing seems able to hold its value or grow like people would otherwise expect. The housing problem is a big one, as people thought their homes would keep growing in value and they would be able to use the extra value to fund a nice retirement. That just isn’t the case right now, as home prices have dropped nearly £30,000 on average. The numbers for retirement account are even uglier than that, or so some say. The total value of retirement funds has lost a staggering £45 billion, a number that should scare anyone who has invested their life savings account into the market.
People are unwilling to compromise their current lifestyles once they get in their old age. I can’t say that I blame them for this too much either. If you have grown accustomed to doing one thing until you reach the age of 70, you wouldn’t want to immediately change it up and start living like a Scrooge, either. The problem is that reality just won’t allow a normal lifestyle to happen right now. Either people have to be more responsible in their spending and saving, or they will end up paying the price on the back end.
So what can young people right now do to make sure that they aren’t in this same boat when they reach retirement age? According to some economists, a 25-year old person can make sure of their survival through retirement if they start saving now. People have to put back £129 each and every month to turn this into a reality. Otherwise, they will be struck wondering what on earth happened to the nice life that they built up in their dreams. They will still be making that same old drive to work as a 75-year old who just can’t get enough of the working world.
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You work hard. You get projects done on schedule, without forsaking quality. So, shouldn’t you be rewarded? In today’s economy, it isn’t viable to quickly get a new job if salary expectations are not being met, yet both companies and employees can be strapped for cash, making it difficult to give pay raises… and intimidating to ask for one. Yet, if it’s time to be rewarded for your efforts, you need to speak up for yourself while also keeping in mind the following tips.
Before meeting with your supervisor, preparation is key:
- Keep track of your accomplishments.
What extra responsibilities have you taken in the past year? How have you gone beyond your specified duties? A bulleted list of accomplishments can be easily referenced during the meeting. Make two copies of this list, so that one copy can be left with the boss.
- Do your homework.
Do your co-workers–with similar responsibilities–make the same salary, or more? What do similar companies pay people in your position? While broaching this subject with co-workers is a delicate issue, Internet research can be very useful, such as salary ranges. Try Websites like www.salary.com
- Set up a meeting time with your supervisor.
Don’t pop into his office and expect your boss to have time for you. Set up a meeting, saying that you have something important you’d like to discuss. This shows both professionalism and courtesy.
In the meeting:
- Show him how important you are to the company. Explain why you’ve asked to meet with him as well as why you feel you have earned a pay raise (make sure to refer to your list of accomplishments!).
- Ask your boss for a firm date in which he will provide a decision. If he is unwilling to set a firm deadline, plan on reminding him no more than a week after your meeting as well as asking what the status is regarding your raise.
After the meeting is over and you have made your case, don’t stress, but don’t forget that the conversation of your pay raise isn’t over.
- Send a thank-you email. Include a gentle reminder about the agreed upon decision date.
- Don’t expect an answer right away. Especially in larger companies, your boss most likely reports to someone else who has the final say in whether you get the raise.
- But when the deadline approaches, definitely ask what the status is of your pay raise.
What if weeks, or even months, pass, and he still refuses to give you a firm decision? (Or if he hasn’t even done anything about your request?)
- Above all, remain calm. You neither want to say nor do anything that you’ll regret or cost you your job.
- Consider going to their supervisor, or the person who makes the final decision about your raise. Tell him about your meeting with your boss and your goals within the company. Ask about when you can expect to grow both professionally and financially.
The pay-raise conversation may be difficult to start, but it’ll pay off the end!
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There are many ways to avoid stress while suffering through the dreaded “R” word. Regardless of what governments say, for the average person who toils 40 hours a week to earn just enough to pay their bills you need to start looking after number one.
Here are a few survival tips:
- Do Not Get Into Debt - Put that credit card back in your pocket! Use it only in cases of dire emergency.
- Do Not Stay in Debt - Do anything you can to remove yourself from the massive list of individuals who have fallen behind on their personal debt. Consolidate all of your debt at the lowest interest rate you can find, and pay it as soon as possible.
- Get Rid Of Your Car - There is no excuse for owning a vehicle if you can’t afford it and live where good public transport is available. Think you’re too good to ride the bus? Get over yourself, cowboy-up, and purchase that pass.
- Do Not Invest Unless Doing So Wisely - Would you take a shower with a cheetah? Probably not. If you are playing today’s volatile stock market, you may as well shower with that cheetah. Historically, as a nation’s paper currency loses value, the value of precious metals rises. Gold, platinum, and possibly silver are safe investments.
- Do Not Buy Anything Without Thinking Twice - Before each and every purchase ask yourself, “Do I really need this?”
- Do Not Go To Restaurants For Anything Other Than Special Occasions - Yes, stop eating out so much. There are these crazy things you may have heard of known as supermarkets. Bringing a lunch to work and cooking your own dinners will not only save money, but it is also healthier. Additionally, when restaurants are used strictly for special events the celebration is much more memorable.
- Don’t Forget About Libraries - Stop buying books. Stop renting DVDs. These, along with numerous other sources of entertainment, are easily obtainable for free in public libraries.
- Do Not Rule Out Second Jobs - Much like selling your vehicle this may mean that you need to swallow some pride. If you are in debt a part-time job a few nights a week will make it possible to pay that debt in a more timely fashion.
- Do Not EVER Quit Your Job Without Having Another One Lined Up - No matter how much you hate your boss, no matter if you have zero debt and money in the bank, no matter how employable you believe you are, quitting a job during a recession without another confirmed one waiting in the wings is a recipe for disaster.
Tough times are here. Tougher times are coming. But never lose faith in the human race. It has been proven time and time again two of man’s best qualities are our resiliency and the ability to adapt.
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Households allover the country are eager for an economic break. Yesterday’s Pre-Budget Report was eagerly awaited by all. It was designed to put a bit of money back in the pockets of consumers. The question is, is it enough?With the economy sliding deeper and deeper into recession, The £20 billion package proposed by Chancellor Alistair Darling is designed to kick start the economy and get things moving in the right direction. There is so much speculation about what WILL be done, that it is difficult for normal citizens to tell the facts from the fiction.
Let’s break it down.
One of the biggest questions on everyone’s minds: Has income tax gone down?
Sorry, but no. How would the government ever begin to afford its “bailout package” if it went so far as to actually cut income tax! The truth of the matter has more to do with increases in tax credits and VAT reductions. Slashing of income tax was a little too good to be true.
What about the 10p tax row rebate?
Chancellor Alistair Darling’s plan will make permanent the increase of the personal allowance of £120 a year and will also raise it to £145 in April. This will help an additional 500,000 households than the original plan.
Uh-oh. Is there going to be a higher tax rate?
Well yes, if the Labour party wins the April 2011 election, it plans to push through an agenda which would create a new 45% higher income tax rate for all persons earning more than £150,000. While only thought to affect 1% of earners, 45% is quite an increase in income tax. It would be raised sooner, but Labour does not want to seem politically fickle. It promised in a 2005 manifesto to never raise income tax.
What about higher National Insurance rates?
Well, darn. This one is fact as well, not a rumor. All national insurance rates will experience an increase by 1/2% from April 2011. The intentions of this increase are to help cover the costs of government borrowing and spending (not necessarily to cover health costs). The silver lining for the less well off is that no one who earns under £20,000 would be affected.
And VAT?
There will be a reduction in the Value Added Tax from 17.5% to 15% for a period of 13 months beginning Dec. 1st of this year. The Chancellor hopes to encourage trickle down savings to consumers. He has urged retailers to pass on the estimated £12.5 billion in benefits to customers as soon as they can to help spur on the Christmas rush.
Is there any help for the beleaguered homeowner?
The Chancellor has indeed negotiated a pledge from financial institutions to help homeowners who are struggling to make mortgage payments by providing a three-month grace period from the threat of reposession. The rescue design has even been extended to help those with second mortgages.
Oh, and the unemployed. . . ?
Indeed, the government has pledged an additional £15 million for free debt advice to all. This is designed to aid those who lost jobs with all of the rounds of redundancies. There is also a £1.3million plan launched to create half a million job vacancies with twenty major employers including Centrica, The Royal Mail, and Tescos. This will be done by expediting the recruitment and training processes.
Okay, so how are we going to pay for this?
The UK is borrowing billions and billions of pounds. It is estimated that borrowing will reach £78bn this year and £118bn next year. These numbers pale in comparison to the devastation that would affect British economy if the government made no effort to stall the current recession. Although it remains to be seen if the steps that have been taken will be enough to fend off the worst of the recession.
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Most people are surviving the credit crunch. They are continuing to pay their home mortgages, despite the rapid increase in cost of living and mortgage rates. This is overall good news. However, there are still hundreds of thousands of people that have or are in the process of losing their home. Of course, homeowners are desperate to hang on to their property, but believe it or not, most lenders are also in favor of you keeping your home. Repossession typically amounts to a lender loss as well. Here are some simple steps that anyone can take to help them hang on to their home in a crisis:
First of all, homeowners should be aware of their financial status. Recognise any lurking financial trouble. Having a good budget can help you foresee periods of temporary money difficulties like: a car lease running out, holidays, tax returns, etc.. Not planning for these temporary extra expenses can be the difference between a struggling homeowner, and a home being repossessed. Homeowners also need to prioritise their debts. Shelter, transport, and food should always be at the top of a budget.
Inform the mortgage lender of your financial situation, job loss, etc…immediately. If you have a legitimate reason for late or missing payments they will often be very understanding, and offer their full assistance. The lender will be much more likely to: offer a repayment holiday, put the missed payments on the back of the loan, spread the missed payments out over the course of the loan, or provide a period of interest only payments if you notify them immediately. Again, it is in their best interest for you to make good on your debt.
Always respond to letters, notices, phone calls, etc.. from the lender. In the case where the lender is unwilling to work with the homeowner, then the homeowner should attend the repossession hearing(s.)
Never grow your debt during periods of financial difficulties. Using credit cards to pay existing debts may prolong a repossession. However, in the long run, adding additional debt can actually negate viable ways to hang on to your home.
Don’t return the house keys to your lender. Your mortgage debts will still exist whether you return the keys to your home or not. Instead, even if you think that your home is a lost cause, get advice! There are several resources for independent and free advice like - the National Debt Line or the Consumer Credit Counseling Service. These services may have a solution to help the homeowner hang on to their home; or at the very least, they can provide impartial information on the different courses of action and the consequences for each.
Explore all of your options- state benefits, insurance policies, etc.. Think outside of the box. The goal is to pay the mortgage, but that doesn’t mean that the solution is always mortgage related.
These steps can help a struggling homeowner salvage their home from the grasp of repossession. The key is early intervention, and a willingness to face money problems logically and realistically.
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More than half of the workers that have been surveyed on the website www.careerbuilder.com stated that they live paycheck to paycheck. According to these statistics, it looks like we could also use a refresher course on budgeting, comparison shopping and personal finance and the skills needed to make your budget balance. Use these top websites to access the free tools which can help you save money.
Bill shrink allows the consumer to search for the best mobile phone plan which could save you up to fifty dollars per month! Chances are there are features lower with other companies or by allowing you to see how much money that you could save in interest by switching to another credit card.
Creditkarma allows users to get free access to their credit score. A service that other companies charge for! It allows you to learn about different actions and the effects that they have on your credit score, such as opening or closing a new account.
Filife allows the user to have access to hundreds of financial rates such as the best deals on balance transfers and even the best interest on savings plans.
Mint is a service that allows you to create and track a budget while giving you access to your 401K. There is a helpful “Ways to Save” section that gives you money saving tips on everything from gas to groceries.
Quicken can help to access all accounts, keep track of assets and liabilities and stop overdraft fees by texting the user when they are close to their limits. This service is available free now – it used to cost $2.99 per month.
Smarthippo is a search engine that allows the customer to find the best mortgage rate by simply entering their zip code. Next, you can use your credit score to determine the rates that people in the same area with the same credit score are receiving on new home loans.
How is your financial health? New websites are using statistical information to calculate the overall health of your finances. This website will look at savings, income and spending habits to determine how healthy the finances are, as well as how prepared your family is for an emergency.
Wesabe allows you to create savings goals, see all of your finances in one place and create categories for family expenditures such as gas or groceries. It allows the user to create charts, graphs and goals in programs similar to quicken.
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Those who have ever fallen upon hard financial times know that being delinquent on your bills can be very trying. The calls from the bill collectors begin as a stranger’s voice on the other end of the line lectures you about your obligations. You want to pay your bills, but for whatever reason the money isn’t there. Maybe you just got in over your head, maybe you have lost your job, or perhaps the global financial crisis is just hitting you hard. Whatever the reason may be, you deserve to be treated with dignity and respect those who are responsible to collect payment are obligated to abide by certain standards of conduct. Knowing how to deal with debt collectors starts with understanding what your rights are, and then formulating a comprehensive plan to get out of debt.
The Office of Fair Trading outlines specific debt collection guidelines that collectors must adhere to when they contact you. First and foremost they are not allowed to put pressure on you that could be deemed oppressive; this means they cannot contact you at all hours of the night or at rates so frequent that it becomes harassing. They are not allowed to mislead you by misrepresenting their authority, or falsely claim that a judgment has been rendered against you. . They have no right to demand that you sell your property or borrow to repay the debt. They may not ask you to pay unreasonably large installments or add additional charges if you are unable to do so. If you find yourself receiving these types of harassing phone calls remember you have the power to simply hang up the phone.
Getting back on your feet may seem impossible, but it can be done if you take the appropriate steps toward regaining financial independence. Before you do anything consider going to a financial counselor. There are many organizations that offer financial counseling some will charge you a fee for their services. The Consumer Credit Counseling Service is a non profit organization that offers free advice in regards to debt. They will assess your financial situation either on line or via the telephone, to determine what course of action needs to be taken in your individual situation. They understand your first obligation must be your essential living expenses such as rent, food etc. After all that is taken into account they will help to determine how much you can afford to pay. They will then contact your creditors on your behalf, and petition them to freeze the interest and late payments. In certain instances they may ask creditors to reduce the debt, and then set up a reasonable payment plan over a longer period of time.
If you choose to resolve your credit situation without the aid of an outside organization these same principles can be applied. Make sure that you do your homework, know what you are able to pay and be confident. Debt collectors are essentially trained in physiological warfare so it is imperative that you not exhibit anger or intimidation. Remember these agencies make a percentage off or the debt you owe, so it is in their interest to resolve the issue. Negotiate with them and let them know that you are committed to resolving the matter. When they see that you mean business they will be less inclined to resort to dissolute antics and work with you to get the issue behind you.
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Well, you watch the news and it’s all bad. So you turn that off and head out to meet friends. But there it is again—Everyone going on and about how horrible the economy is, how rotten everything is going to be, how far housing prices are going to fall, how their friends’ brothers’ girlfriend has fallen into negative equity on her house, and on and on and on. There’s no escape! Everybody has a theory, and everybody has a guess for the big question of the day: How much further will housing prices fall?
More. This is what’s known as the easy answer. When £600,000 “luxury homes” are being put up behind petrol stations next to noisy roads and 48 people line up to buy them, then it’s a sure sign that there is still madness in the market. Some are saying 10%, others say another 30% drop is in the works. But I say that until the fools have lost their money, then the regular buyers are still going to be affected by a glut of homes on the market and a rise in default rates as people who got in over their heads are forced to throw in the towel.
Faster. What, you thought they were falling pretty fast already? Ah, but you are forgetting about the seasonal nature of home sales. Most people buy in summer, which means that the bulk of this year’s sales are over. Thus, if you want to sell a house in the winter, you have to put down the price to attract people to buy out of season. Additionally, if you have to sell a house in winter, you are going to put the price down because you are desperate. The combination of the two, plus the nasty post-holidays wallet shutting that happens when the credit card bills arrive, means that the potential for a swift drop is ever-present.
How much more and how much faster? All property is local, even if the credit crunch seems to be global. Keep a sharp eye out if you are looking for bargains, and be prepared if you are looking to sell. ‘Tis the season for sitting tight.
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