Tuesday, March 27, 2012

Is Reducing Expenses The Best Way Out Of Debt?

Many times we hear people saying that they have to reduce their expenses, because there is not enough income to pay for everything. No more movies for a while, no more dining out, less fashionable sneakers for the kids, whatever you say, you name it. There is great danger in that attitude, since it inevitable leads to poverty. Find out why.

Why Do I Mention “Attitude”?

Attitude is everything. It comes from a wrong mindset that orders you to get smaller and smaller, economically speaking. You reduce expenses, but you never have enough. Reducing expenses is not a solution. It eventually leads you to an attitude of poverty, which in turn makes you weary and hopeless. You may lose your job and although you get another one soon, it is not as good as the previous one and so things get worse with every step you take.

So Then?

The opposite, namely, increasing income, is the right way, although with a sensible administration of what you have at the moment. As soon as you detect that something has to be done at once, it is increasing your earnings that will bring a full satisfaction to your feelings. You want more but you don’t have enough? Get moving to have more, so you will eventually acquire the attitude of generating riches.

In consequence, if you are in debt and you take on a positive attitude, you will be in a condition to act wisely and negotiate a good ending to your unpaid bills. The same attitude will enable you to feel secure enough to get a better job, an increase, close more and better deals if you are self-employed, innovate in your business, you name it.

The “Mindset”, That Repeated Little Word

Mindset means a set of rules that governs your mind. It makes you act in a determined way, not really knowing why. Just thinking of the convenience of a different attitude will make you begin to doubt about your previous beliefs. If you reduce expenses, you are reacting to circumstances. Reaction comes from the guts. If you increase your income, you are responding to circumstances and that, my friends, comes from the brain.

The Most Powerful Weapon

Our brain is our most powerful weapon. It enables us to learn to exit from a difficult situation with an innovative attitude. Now, back to the point: Who doesn’t want to have more and more? The only way to have it is generating it in our minds. Whatever we are capable of believing, this we shall achieve.

There are so many ways to increase income that sometimes it surprises me to see how people always choose some next to impossible ways of reducing expenses. And that happens because debt produces fear. And fear is the worst advisor. Remember one thing: Whatever you wish to have, will also bring a way to obtain it. It’s just a matter of finding the way. It’s worth while giving it a try, isn’t it?

Don’t Let Bankruptcy Stop You From Getting A Loan!

Bankruptcy can get in your way when searching for finance. Once a lender reads bankruptcy on a credit report, he is scared away immediately. Yet, there is no reason to let bankruptcy come between you and your desired loan. There are lenders willing to approve loans after bankruptcy provided that you meet certain requirements.

Loans after bankruptcy can be obtained if you know where to look for them and what requirements you need to meet. Thus, you need to do your research prior to applying for a loan in order to avoid being declined and thus lowering your credit score even more due to the decline being recorded into your credit report.

Your Bankruptcy Must Be Discharged

In order to obtain finance your bankruptcy must have been already discharged. This is an important fact as there are many people that try to obtain a loan while their bankruptcy process is ongoing. This can lead to further lowering your credit score and undoubtedly will trigger an immediate decline from any lender without exceptions.

Moreover, there needs to be a certain period of time between the bankruptcy discharge and the loan application. The opinions are not unanimous as to how much time you need to let pass by. However, most lenders will require at least six months in order to even consider a loan after bankruptcy. In any case, there are no records of bankruptcy loans granted before at least two months have passed since the bankruptcy’s discharge.

You Need To Show A Good Recent Credit History

However, your bankruptcy being discharged is not enough to obtain approval. Your credit score from that time on must show an impeccable credit behavior. Each lender has different requirements but most would agree that recent credit history is the most important part of your credit report and thus, even if you have a past bankruptcy, the last months should have no stains.

The idea is that you need to show the lender that your financial behavior has improved since your bankruptcy has been discharged and thus, that he is not taking such a great risk. There is also no general agreement as to what is exactly “recent” credit history. However, most advisors would agree that you need to show at least 6 months of timely payments with no late or missed payments at all.

Look For A Loan In The Right Places

Finding the right loan that suits your needs doesn’t have to be such a complicated task. In order to do so you can search the net for bankruptcy loan lenders and you’ll be presented with many different options. You need to compare what each lender can offer to you paying special attention to APRs, repayment programs, loan amounts and any other loan term that you may be interested in.

Once you’ve decided which lender and loan best suit your needs and budget, you can either apply online or contact the lenders by phone. Unless you apply for a secured loan, a response to your loan request will be available in a matter of hours.