How to Pay Off Debt in Collections

How to Pay Off Debt in Collections

How to Pay Off Debt in Collections

How to Pay Off Debt in Collections?

You’re delinquent on your debt. What a bad thing to hear right? So, what’s next? You’ve got to deal with the debt collection agency as you seemingly have no option left. That’s the only way to pay back your debt.

You might have received letters and phone calls. Don’t cry. Don’t be intimidated. Just look beyond them. There’s always a way out, even in your present situation.

It’ll be stressful, but, you’re not alone. This article is helpful as it will ease the process. It covers how to pay off a debt in collections and will equip you with the tactics that can be used in order to succeed paying off your dues.

How do debts end up in collections?

Perhaps, you asked how? How do debts end up in collections? You might not even know it. The answer is that it results from a debt that was not repaid on time.

The debt may be a credit card or a payday loan that you didn’t pay off. Any of them could have been written off your debt as a loss which was sold to the debt collection agency that is disturbing you right now.

Keep in mind that most creditors and lenders send accounts to a debt collection agency after 90 to 180 days of nonpayment. All these might be reasons why you receive those phone calls and notification letters.

How do debts in collections affect your credit?

Understanding how debts in collections will affect your credit can prove to be beneficial. Your debt account is reported to the credit bureau. This is done either by your creditor or a debt collection agency. The report status can be identified as a “collection”. Any account marked with a collection is hurt because the credit score drops drastically. As a result, the same applies to yours.

The credit drop varies as it depends on the credit scoring model, but your payment history is important. It’s a significant credit factor throughout different scoring models. The higher the starting score, the greater the credit drops.

This collection cannot disappear overnight. It lasts long on the credit reports. It can mark your credit history for 7 years generally and it includes the earliest date the account pasts due. Although the long time, the negative effects on your credit scores will be reduced with time until your account drops off.

How to Find Out the Debt Collector You Owe?

If you don’t know the collector you owe, this section will be helpful. There are four different ways to locate your debt collector. Each is pointed in the bullets that follow.

Contact your original creditor

Call the company you owe a debt and ask for the debt collector in charge of the debt you owe or the agency they sold your debt to. After getting the right answer, call the debt collection agency and then, negotiate the payment.

Check Your Credit History

Here is another option. Get your credit reports. Check them. You should be able to locate the debt collector’s name on the reports because such things are reported into the credit bureaus. For the credit reports, contact Equifax, Experian or Transunion.

Review Your Voicemail and Caller ID

One thing is sure. You’ve received calls. Review your call history. Check the voicemail and obtain the name of the collection agency from the caller ID.

How to Pay Off a Debt?

There are many ways to pay off a debt in collections. Some are listed here and each is explained. By choosing one, you can pay collections.

Create a payment plan

Know what your budget requires and master your finances. Obtain what you can afford to pay weekly or monthly. Be specific. You can contact the debt collector after that via phone or email. A written document will be sent to you if they agree. The document outlines the deal for paying off the collection account. Ensure the agreement terms are correct before you make any payment.

Pay it off in one lump sum

Here is another option. You can pay it off with one lump sum. The money may come through a tax refund or from an inheritance. The latter can also come from you in case you doubled your hustle. It can be akin to pay off a debt with a low income. This is also a good way to pay off debt collectors.

But be careful. Ensure that your financial situation is good. Consider your things and ask yourself if clearing the debt with the money will leave you with almost nothing. List the pros and the cons. Consider them and then, make the best decision that suits your needs.

Make sure that you do not miss a payment. If you do, you’ll be sued by the debt collector and the agreement will be abandoned. This can be terrible as it leads to a wage garnishment.

An oral agreement is not a binding one

Get a written document. If for the sake of an example your payment is not recorded, a written document is your proof. It shows that you paid off your debt and even if the debt is sold to another debt collector, the latter is your proof.

Settle the debt for less than you owe

If you want to pay collections, make your debt payment easier. Be confident. It’s your money. It’s your debt. Persuade them. They will agree but remember you’ll have to pay them a fee for their service. You’re smart. Start the negotiation with a settlement lower than your target. Perhaps you want to pay a settlement, which 60% of your debt collections start at 40%.


Nobody wants to go delinquent on any debt. It’s bad. Having in mind what mentioned you can now pay off a collection and negotiate with a debt collector in order to get best deal that suits your needs. Hope you found it useful.

How to Plan a Dinner Party on a Budget

How To Negotiate Credit Card Debt Settlement Yourself

How To Negotiate Credit Card Debt Settlement Yourself

How to Negotiate A Credit Card Debt Settlement Yourself

Oh my God!
Your credit card debt is now more than you think you can bear and it has grown too high. You think you should stop the credit card debt. You’re right. You should stop it now.
Before you pay off the debt with one lump sum of money, read this article. It is helpful, because, it shows how to do it flawlessly. It tells how you can superbly get rid of your plastic debt and how to negotiate a credit card debt settlement yourself.

5 Steps to Settling A Credit Card Debt

As we proceed, you’ll be shown six steps and at the end of this section, you will know how to negotiate with the credit card company faultlessly.

So, let’s begin with the steps.
Know How Much You Owe: For multiple credit cards, access your statement. Understand how much you owe with their respective interest rates. Also, note the customer service contacts. Have all those information in a place right before you as you will need them as you are proceeding in the call with the latter.

Explore the Settlement Options

Before calling make sure that you have explored your options and have understood them properly. Don’t be in a haste. Be sure of the amount of money you can pay. Check if it won’t affect your credit score. Check if there are no tax implications as you really do not want to do a step bigger than yourself.

The common credit card debt settlement options are:

  • Debt Settlement
  • Hardship Plan
  • Lump-sum settlement
  • Debt management

As we proceed, each is explained in a detailed manner.
Let’s begin.

Debt Settlement

What does a settlement mean? It’s the amount of money you want to use in order to pay off your plastic debt and it’s always less than the plastic debt you owe.

After making your cc company agree with your settlement, you can opt for a debt settlement arrangement. With this arrangement, you will pay a monthly amount to a debt settlement company.

The company keeps your money in an account. When your monthly payments accumulate up to the settlement, the money is withdrawn and your creditor is paid with the fund. It’s just that simple but this includes the debt settlement service fee. And the associated fee can be a disadvantage. Also, bear in mind that a debt settlement arrangement can have a detrimental impact on your credit score and as a result, it is the last option to turn to.

Hardship Plan

Humans can be merciful. Credit Card Companies also are. Your cc company can put you on a hardship plan but that can happen only if you had a job loss or a critical illness that is responsible for your financial hardship.

The hardship plan is lenient as it reduces your plastic minimum payment with its interest rate and fee. This way includes a structured payment plan. So, in case you experienced any financial problem or health issue, ask your credit card company for a hardship plan.

Lump-sum Settlement

Let’s explain the credit card lump sum settlement. This arrangement works on one condition. That’s if you have a significant amount of cash to pay the debt upfront. The company can reduce the debt to the exact principal you owe.

Debt Management

Non-profit organizations can help you to manage your debt. Don’t get me wrong as they won’t pay off your debt. You do it but they will make it easier. This is also how to settle the debt. They are just credit counselling agencies.

They work with you and your creditors and help your financial plan. You will need to deposit money to them each month which of course they will use to pay off your creditors. As usual, there’s a fee and you have to meet some requirements. A qualification requirement like the fact that you can ensure the repayment of the debt within 60 months.

Workout Agreement

Some money comes in but not enough to meet the current monthly payment. Arrange a workout agreement. With it, you can get your minimum monthly payment waived or reduced, lower your interest rates, and delete everything past the last fee.

Let’s us move on to the next step.
Identify the risks: Every option is risky. Identify these risks and understand them. But most importantly keep in mind that your financial stand dictates the best option. In spite of that, know the risk you’re about to take.

Let take them one by one.

Lump-sum Settlement

A lump-sum settlement can also lower your credit score. This depends on your credit card company’s report to the credit bureaus. Reports like “SETTLED” or “CHARGED-OFF” would affect the borrowers. While reports like “CURRENT” or “ACCOUNT CLOSED” may not affect a person’s credit score while a forgiven debt attracts tax implication too.

Hardship Plan

It also affects your credit score and that also depends on how it is reported to the credit bureaus. It’s a deferred debt so, you are the one paying.

Debt Management

This doesn’t affect your credit score but on your credit history there will be a mention that you enrolled in a debt management program and that’s a financial stigma.

With a debt management, you get the least effects on your credit score, because creditors often trust a credit counselling agency more than a settlement company. Besides, settlement companies take a huge fee for the service.

Phone Your Credit Card Company

Although a settlement company can do this for you, you can still do it and save some money! Do it yourself. Be confident. You’re a grown up and it’s your financial life. Prepare a script. Frame your request and make the phone call.

When asking, seek the debt settlements or the collections’ department. Your financial situation is crucial so make sure that you put it into words. Explain in details your situation. Know what you exactly want and ask for it. The reply may be no. Try again, again and again. Let it take multiple phone calls before going forward.

Put on record every call and document and every conversation. Jot the receiver’s name and his job’s title. Do that every time you call. Doing so will help you reference any of them in the follow-up calls.

Get A Written Deal

Do this when your credit card company is ready to negotiate. Get the deal terms written down to a legal paper. A verbal agreement is not a binding one most of the times. Anybody can leave the company and that may be the credit card manager you spoke with. Only a paper agreement protects you and your rights forever..


This is article shows you how to negotiate your credit card debt with your card company. It shows you how to pay off a debt fast with a low income and that means taking out personal loans online. It does that by exploring five steps. It shows different approaches that can be taken and how risky each is while also mentioning how to mitigate the risk.

How to Plan a Dinner Party on a Budget

How to Get a Divorce with No Money

How to Get a Divorce with No Money

How to Get a Divorce with No Money?

When you think of what would happen when it comes to arguing an asset and children responsibilities at a court, you mutter, “I need money now”. Yep! Divorce is expensive but you shouldn’t go on with the bad marital life, because it is pretty unhealthy for yourself.

The good thing is that you can do all these with no money.This article gives you the complete guide on how to achieve something like that.

Don’t let the money to hire a lawyer make you stay low-key. You shouldn’t be scared to take the bold move out of your irrevocable marital disjoint because you don’t have money to get your marriage documents from the local registrar and issue your petitions at the court.

Being short on cash presently is no problem as you can borrow personal loans. You’ll be expected to pay back in installments, or later. There are many online lenders, and they can provide you with various loan options.

Choose any of the options (the one that’s best for you). With most online lending platforms, you can take out installment loans, mortgage loans, etc. But at first, you have to know what you need the money for.

Basically, you need funds to get your marriage documents -like your original marriage certificate; to issue your petition, and to hire a lawyer to represent you at a court.

When it comes to bigger issues at the court, you and your unbearable spouse argue on the debt, assets, and children responsibilities (that’s if your situation fits). Monetary support is needed to win on such debates without being hurt.

So let’s discuss how much it’ll cost you to get a divorce. At first, to get your original marriage certificate from a local registrar would cost you around $5 to $15 (the price varies with states). It looks cheap but it is part of the big budget of the divorce.

Going to the court, to issue a petition at divorce, it costs around $10000 to $20000 (the price varies from state to state). And getting a lawyer is another big monetary issue. To hire a lawyer for a divorce, it costs above $10000.

These numbers are what stops many people to get a divorce, despite the fact that they want it. But for now, this shouldn’t be our story as we should discuss how to get the loan to achieve such a thing.

How Do I Get a Divorce with No Money?

It’s simple. To get a divorce with no money, you need to take out personal loans online. You know! There are online lenders across the internet.

Without leaving the comfort of your bedroom, even while your spouse is in there with you, you can apply for a personal loan with your phone, without him/her knowing. It’s quick, private, and easy to get.

But there are issues you need to bear in mind in spite of what’s said about taking out a loan from an online lender. Beware of online lenders that seek upfronts before they can grant you a loan. Ensure you consider the legality of the online lending website.

Is the online lending website licensed by the government of your country to do business in your country? You can confirm if such a website is legit by contacting the Department of Finance of your state. Whatever the Department says will determine if you should take out a loan from the platform.

When it comes to taking out a loan from the platform, beware of your credit score. Perhaps you’re on a bad credit score and this can stop you from getting a loan. Most lenders are strict with the credit score as they believe a borrower with a bad credit score will find it difficult to pay off the debt.

Don’t you think you need to improve your credit score before taking out the loan? And how do you improve your credit score? If you have a debt left unpaid, it’s advisable you clear your debt before taking out the loan. By doing that, you’ll get your loan approved on time, without a delay.

You may wonder: “Why isn’t it advisable to seek a loan from conventional banks?” There is a reason surrounding that. Think about the social stigma attached to taking out a loan, and also think how much worse the stigma attached to taking out a loan to fund a divorce could be!.

Taking out such a loan should be done secretly without people knowing of it, right? And to do get such complete privacy, you have to take out a loan from the internet, not from a conventional bank.

How to Get a Lawyer for Divorce with No Money?

Now, let’s talk on how to hire a lawyer. Before taking out a personal loan from an online lender, meet your lawyer, negotiate how much his service will cost, then proceed to take out your loan. With the personal loan taken out from an online lender, you should be able to hire a lawyer for the divorce with no money on you.

But putting the costs of getting your marriage documents in place, issuing a petition at court, and hiring a lawyer, the amount seems huge. Such a huge amount of money can be difficult to take out from your online lender. Ensure you have a good credit score before seeking such a loan. With a bad credit score, most online lenders can and will reject you.

If you have a poor credit score, improve your credit score. On your credit cards, keep your balances low. Huge debts left unpaid can influence your credit score. Try to consolidate (reduce or erase) such debts. Doing these, you are going to improve your credit score and you’ll find it easy to take out the loan.

Besides that, such funds attracts high-interest rates, which you should reduce at all cost because you’ll be alone to pay off the debt after the divorce. To reduce the interests, ensure you take out a secured personal loan that requires a collateral. With the latter, the interest on your debt will be reduced.

How to Plan a Dinner Party on a Budget

How to Pay for a Funeral with No Money

How to Pay for a Funeral with No Money

How to Pay for a Funeral with No Money

So, your relative is dead and you need to host a funeral for the person. It’s time you realize that a funeral can be expensive. Sadly, the deceased person never told you he would die; so, it’s an urgent responsibility you didn’t expect.

You’re not the first person it’ll happen to. Every single person never prepares for anybody’s death. But the difference comes in when we are short on cash (with no money to pay for the funeral). And that’s the reason for writing this (how to pay for a funeral with no money on you).

That may sound incredible but as this burial comes with urgency, seek out personal loans online. With the loan, you will be able to pay for the funeral, despite the fact that you’re without money. You’ll pay back the loan later, either in installments or a lump payment.

Don’t rush to take out a loan without a plan for it. I know you need money now but before you pick up a phone to seek a loan online, know how much money it’ll cost to host the funeral and whether you can pay back the loan or not.

Funeral service costs range from the funeral home costs, cemetery and burial costs, to the memorial service costs. The costs of a funeral service can be summed up to be around $10000. It includes the basic service fees of $500, the embalming cost of $800, and the cost of setting up the funeral home.

Moving the remains to the cemetery needs a considerable fund for the burial plot, casket, and transportation. The burial ground costs around $1000 and the casket is around $2000.

Every worker, most especially low-income earners are eligible to pay a certain cut of their income to the Social Security Agency. So when they retire or die, either them or their relatives can claim a social security benefit.

How Much Does Social Security Pay for a Funeral?

It would be of great help if the deceased is a social security recipient. His surviving spouse or child can claim a social security benefit, which is in two ways. One, a lump-sum death benefit of $255 and the second is an ongoing monthly death benefit called a survivor benefit.

Regrettably, the social security death benefit is currently a small payment of $255, and that’s even if the deceased’s social security work credit is good. In spite of the fact that the payment is small, surviving family members should claim it. It can be of a monetary relief as it can be used to consolidate the loan taken out to fund the funeral.

If the deceased is your spouse or parent, you’re eligible to claim the benefit. Visit a local social security office and claim the pay. The staff will help you out with the paperwork, and you’ll be paid the benefits.

It’s advisable you add the pastor’s honorarium to your budget before you take out a loan online.

How Much Should I Pay a Pastor for a Funeral?

Most pastors believe that their salaries cover all their services (including funeral services), so they do not take fees. Besides, people do not make such demand on those that grieve. Nevertheless, you should give your pastor some bucks, at least for their travel expenses.

Such payment can be likened to be an honorarium (pastor’s honorarium), of which any amount within the range of $200 to $400 is reasonable. The money can be paid either by check or in cash put into an envelope, accompanied by a note of gratitude for his great contribution to the funeral. The envelope should be given to the pastor in person, not to the pastor’s church, often before or after the funeral service.

How to Pay for Funeral without Life Insurance?

A deceased person, before he died, could have been life insured, because he could have seen it as a way of helping his loved ones (family) to cope financially after his death.

But unfortunately, if the deceased isn’t insured, you have to pay for the funeral without life insurance and that can make the loan repayment difficult for you because you’ll have to pay back the loan with your paycheck.

It’s advisable, as you’re responsible for funding the funeral, that even without life insurance, you should prepare an affordable budget. Take out a loan that you can conveniently payback.

Nobody will be there to help you when you’ll be beaten down with debts that you find difficult to pay off, so take a realistic look at the funeral budget, cut the costs, choose an affordable amount, visit an online lender, and take out the loan.

If you find it difficult to cut the budget, consider using a plain casket, instead of a burial vault, plot and interment fees as it can save $3000 or more. Launch a home funeral (if your state permits it), it saves the cost of renting a funeral home.

Also, consider a direct cremation; it’s cheaper, costs around $2000, no embalming, no viewing, and no visitation. It’s a remains disposition option, the body is cremated, a few days following the death, and without a funeral service (but the service can be done later). It’s the most affordable option to cut down funeral costs, it saves thousands of bucks.

How to Pay for a Funeral with Life Insurance

What if the deceased is insured? It’s a relief, as you don’t need to worry much about the loan repayment. It can be paid back without difficulty, so, take out a considerable loan, and have a celebratory funeral.

Be cautious. There are online lenders, good ones, and bad ones. Don’t be fooled. Beware of online lending platform demanding big upfront payment before a loan can be approved or disbursed.

Confirm if the potential loaner is authentic, visit or contact the Department of Finance in your state, check if the loaner is registered to do business in your country.

Before you seek a loan from an online lender, maintain a good credit score as it boosts the loan approval possibility. And if you have a debt unpaid, ensure you reduce or pay it off.


With all conditions reasonable, take out a loan; launch the funeral, despite the fact that you have no money on you. With the social security pay and life insurance benefit, pay off the loan in installments, or with a lump-sum.

Hope you find this article helpful!

How to Plan a Dinner Party on a Budget

How to Plan a Dinner Party on a Budget?

How to Plan a Dinner Party on a Budget

How to Plan a Dinner Party on a Budget?

It’s a great work, hosting a dinner party. Whether it is your first time or not hosting a dinner party, you will find this article helpful. It tells you what to do before throwing such an event. It illustrates how to calculate the money it requires to launch the party.
And it provides ideas and tips for the dinner. If you will implement such tips, you will likely lift your social clout higher.

What to do Before Throwing a Dinner Party?

Before throwing a dinner party, you have to consider the following issues.

Money: It is very important. Without money, you can find it difficult to host a party. A budget shows how much you need, how to spend it.

Make an invitation list: If you want to host a large dinner party, you need to get an invitation list. The list will help you track how much you will spend on foods and drinks.

Decide the theme and decoration: Choose a perfect theme and decoration for the dinner party. People appreciate expensive glasses, plates, and other dinnerwares. Choose the one to do the trick.

Choose a Location: A nice venue, it is a good option. It earns you respect. For a few people, your house is okay. When choosing a venue, you’ll have to consider the type of invitees. For your friends, your home is okay but for business associates, you should book a nice venue.

Deciding the Date: People are busy…most especially on weekdays. Weekends are the best days for parties. Choose a perfect date, one that is convenient for everybody.

Send Invitations: Ensure you notify everyone on your list. You can send emails. Make phone calls or send messages via SMS, WhatsApp etc. Just make sure that you reach out to people.

Plan Your Menu: Choose the recipes. Make a budget for the recipes. Get them from the market. For friends, you should cook whereas for business associates or a large number of invitees, hire a catering service.

Plan the Entertainment: Spice up the party with some playlists background (music). Energize the atmosphere, with solemn songs. You can hire a keyboardist.

How to Calculate the Money Required Hosting the Dinner Party?

It is a simple arithmetic duty. Let us say the total amount of money you need to launch a dinner party is DPC.

Let Dinner Party Cost, DPC = $ [GC + NGC]

Where GC is the Guest Cost and the NGC is the Non-Guest Cost.

And the money budgeted for each guest’s food and drinks is the Guest Cost. While the money used to rent the venue, hire a catering service, send invitations, and make decorations is called the Non-Guest Cost.

Add the guest cost and the non-guest cost together, and then you obtain the amount of money needed to host the party.

To get the idea better, permit me to give an example. Let us say you’ve invited 10 people to a dinner party. And the money required to get food and drinks for a person is $50.

Then the Guest Cost, GC = $50 X 10 = $500

If the amount of money needed to book a venue, send invitations, hire a keyboardist, and cater for other expenses is $900.

Then the Non-Guest Cost, NGC = $900.

Sum up the GC and NGC, you have the amount required to host such party, which is $1300.

How do you get the money to host a dinner party if you’re broke?

Perhaps you cannot afford to take the money out of your saving; you can take out a personal loan online. There are several online lenders on the internet.

Without leaving the comfort of your home, you can get a loan approved. And before you take out an installment loan online, ensure you have a good job, a good financial standing and a high credit score.

If you can get a co-signer, it makes your loan get approved quickly. Maintain a lower debt-to-income ratio (DTI) as online lenders use it to determine your creditworthiness and how much of loan you can afford.

Taking out a loan will help you finance the party to your taste.

Dinner Party Ideas

With these ideas, your guests will find the dinner party warming.

Write a timeline for the party: Take your time; write a timeline for the dinner party. So that you won’t miss things up. Provide an order that shows how the party would be run. Doing that saves time. Everyone’s time worth planning.

Book a venue, if your guests are formal. You can also host a dinner party right in your home if the guests are informal such as friends and relatives.

To earn a party-like atmosphere, add some music background. Maintain a low volume; don’t let the music interrupt people’s conversation. Just like it is in movies, you can make your dinner party the same.

To reduce your expenses, tell invitees to bring their own bottles (BYOB). Despite this, you should provide some bottles of wine and stock up some non-alcoholic beverages for guests that don’t drink.

Be mannered. Meet people and greet them with gusto. When it comes to a social gathering like a dinner party, such things shouldn’t be taken for granted. Your participation is crucial as the host. Don’t be in the kitchen on your guests’ arrival. Be in charge of the welcoming.

Plan the after-party. If you find it challenging to clean up the mess and wash the dishes, you can hire workers to do it for you. Don’t procrastinate. If you do, your house will suck.


This article is helpful. It shows you how to plan a dinner party on a budget, how to calculate the money it would require, how to cut out the budget and how to launch a successful dinner party.

Choose the right venue. Invite your guest. Choose the right meal. Let them bring their bottles. Provide wine and wine glasses. Play some background music. Make them dazzle and party awesome. Encourage side talks and be yourself.
That’s all.

How To Figure Debt To Income Ratio

How To Figure Debt To Income Ratio?

How To Figure Debt To Income Ratio

How To Figure Debt To Income Ratio?

Debt-to-income ratio is financially crucial and you’ve to figure it out. Most especially if you want to take out a loan. Lenders are often strict with the DTI ratio.

To get your loan approved, maintain a low DTI ratio. If yours is high, this article will teach how to lower it so that you can achieve your goals.

Let’s discuss how to calculate your debt-to-income ratio.

What is an ideal debt-to-income ratio?

Most lenders agree to an ideal DTI ratio. For them, an ideal front-end ratio should be 28% or lower. And the back-end ratio –which includes all expenses-, should not be above 36%.

Nevertheless, lenders may accept higher ratios as often it depends on your credit score, assets, savings, down payment, and the type of loan.

How to get your debt to income ratio?

To obtain your DTI ratio, sum up your monthly loan payments and divide it by your monthly gross income. The result is expressed in percentage.

And here is the complete guide on how to figure out your debt-to-income ratio:

  • Add up your monthly mortgage payment, minimum credit card payment, auto loans, personal loans, payday loans, monthly child support payments, and other debt payments on your credit report.
  • Divide the answer by your monthly gross income. Your monthly gross income is your take-home pay, before taxes and other monthly deductions.
  • Convert the figure you’ve got into a percentage. That’s your DTI ratio.
  • Note that your monthly bills and financial obligations are not required. Don’t include utilities, groceries, insurance premiums, healthcare expenses, or daycare in the calculation because the lender doesn’t need them.

You may be qualified for a $350,000 loan but your DTI shows whether you can afford the monthly payment or not.
To understand the idea read the following content:

How to calculate the debt-to-income ratio?

Be happy, if you obtained a low DTI ratio and be ready to lower it, if you obtained a high one. Your DTI ratio demonstrates the status between your income and debt. Let’s us start the calculation.

Take, for instance, Mr. Gideon’s mortgage monthly payment is $2000, his car loan monthly payment is $1000, and other debts he pays monthly cover $1000.

So, sum up all his monthly debt:

His monthly debt = $ [2000 + 1000 + 1000] = $4000

But, Mr. Gideon monthly gross income is $12000

Now, let the debt-to-income ratio be DTI:

DTI = [Monthly Total Debt Payment] / [Monthly gross income]

DTI = 4000/12000 = 0.33

DTI = 0.33 X 100% = 33%.

So, Mr. Gideon’s debt-to-income ratio is 33%.

Using this method, calculate your debt-to-income. If your answer is high, you should read the next section. It’s helpful.

From this calculation, one can conclude that:

  • The bigger the debt you pay monthly, the higher your debt-to-income ratio.
  • The bigger your monthly gross income, the lower your debt-to-income ratio.

Let’s proceed to the next section.

How to lower your debt-to-income ratio?

So, you’ve calculated your DTI ratio but it’s high. Don’t worry. You can lower your debt-to-income ratio as it’s explained below.

  • Maintain a Low Budget: Develop a low budget. Do not make unnecessary purchases. Monitor your spending. Stock up money to pay down your debt. If you continue on a huge budget, you’ll find it difficult to reduce your DTI. The more your debt, the more the debt-to-income ratio.
  • Set up a Debt Payment Plan: There are two payment plans for a debt. One is the snowball method and the other is the avalanche method (also known as ladder method).

With a snowball plan, you pay down your small credit balance at first, and then you make minimum payments for the rest. Whenever you pay off a small balance, you go for the smaller, then to the next smaller and then on and on till it is cleared.

The avalanche method is based on higher interest rates. So, whenever you pay off the highest interest rate, you go for the next highest interest rate, on and on till it is cleared.

Ensure you stick to any of the plans you choose.

  • Lower your debt: High-interest credit cards should be lowered. And if you pay your bills on a regular basis with a good financial standing account, this may work. Contact your credit card company. Ask a way to reduce the rate on your plastic. If you don’t have a good financial standing account, this may work for you. Transfer the high-interest balance from your existing card to a new one with lower rates. Here is another option that it also works. Take out a personal loan to consolidate the high-interest debt so that it will become a personal loan with a lower interest rate. This is how to pay off debt fast with low income.
  • Don’t accumulate more debts: Quit making large purchases on your credit cards. Stop increasing your debt. Taking more loans drives up your DTI ratio and it hurts your credit score. Let your mind focus mainly on clearing your debt, not enlarging your debt.

How lenders view your debt-to-income ratio?

Often, lenders are strict with debt-to-income ratios and borrowers with a high DTI find it hard to get an approved loan. The DTI requirement varies from one lender to another as each loaner has its debt-to-ratio standards.

Creditors like personal loan issuers do not count on the DTIs but mortgage loan providers do. In most cases, the mortgage lenders accept 43% as the highest debt-to-income ratio.

However, some personal loan providers offer a loan to borrowers with 50% DTIs or more. Maintaining a low DTI ratio will help your confidence to negotiate a credit card debt.


This article is useful. It’s an article you need if you want to take out a loan to pay off a credit card debt. It shows the reasons why you need to figure out your debt-to-income ratio. It emphasizes how lenders use your debt-to-income ratio to evaluate your ability to afford a loan and above all, it shows you how to lower your debt-to-income ratio, if it is high.

How To Plan A 60Th Birthday Party On A Budget

How to Plan a 60th Birthday Party on a Budget?

How To Plan A 60Th Birthday Party On A Budget

How to Plan a 60th Birthday Party on a Budget?

Woohoo! You’re now 60. You’ve got to prepare a big party for it.

This birthday should be remarkable, awesome and memorable. What do you think?

Even if you want to run a low budget, you need to plan a budget for the party.

And this article will show you how to plan your 60th Birthday Party on a budget. Let’s begin.

How much money do you need to budget for the birthday party?

A good party plan cannot be made without having some money budgeted. And this section shows you how to calculate the amount of money needed to launch your birthday party.

Birthday Party Cost (BPC) = $ [GC + NGC]

Where, GC is the Guest Cost, and NGC is the Non-Guest Cost.

The amount of money required to cater for your guest’s needs at the birthday party is the guest cost. And it depends on the number of guests present at the party.

To know how much that would cost, you need to create a list of your invitees and ensure that you have included the names of relatives, friends, workers, and close persons that you would like to see at the latter.

You should also create an extension for uninvited guests.

Calculate how much it would cost to cater for a single person that would be present at the party. Do the arithmetic and term your answer as Guest Cost (GC). So,

Guest Cost = $ [(NAL + 0.15 X NAL) X CP]


NAL = Number of attendees or invitees on your list.

CP = Cost of catering per person or invitee.

The amount of money required to prepare a venue, rent chairs and tables (rental services), rent party space, make a birthday cake, entertain, and cater for other issues that are not directly linked with the guest is termed as the Non-Guest Cost.

Non-Guest Cost, NGC = $ [VC + RC + BcC + EC + OC] + 0.15 [VC + RC + BcC + EC + OC]


VC = Cost for the venue

RC = Cost for the rents (chairs, tables, plates, spoons, speakers, iPod, and the likes).

BcC = Cost for making or buying a birthday cake.

EC = Cost for entertainment, DJ, and related entertaining rants.

OC = Other Costs.

Take for example; Mrs Alex wants to calculate how much it would cost her to launch her birthday party. She expects 50 people at the party. And the amount of money needed to give food, drinks and takeaways to each person that would be present at the party is $15.

She needs $200 to rent a venue and a party space, the chairs and tables cost $50 on rent, the birthday cake costs $80, the costs to hire an entertainer is $200, and the costs for other issues is $30.

So, Mrs. Alex’s Birthday Party would cost; BPC = $ [GC + NGC]

The Guest Cost, GC = $ [(NAL + 0.15 X NAL) X CP] = [(50 + 0.15 X 50) X 15] = $862.50

The Non-Guest Cost, NGC = $ [VC + RC + BcC + EC + OC] + 0.15 [VC + RC + BcC + EC + OC] = [200 + 50+ 80+ 200 + 30] + 0.15 [200 + 50 + 80 + 200 + 30] = $644.00

Thus, the Birthday Party Cost = $ [862.50 + 644.00] = $1506.00

As a result, Mrs. Alex needs to budget $1506.00 for her coming 60th Birthday. You can also do the same to calculate the amount of money you need to launch your 60th Birthday.

How can you get the money to launch your birthday party?

You can get the money from your saving, children and close friends. And if you need much more, you can take out an online personal loan.

You are expected to pay back in installments over a period of time with the interest applied on the latter.

60th Birthday Party Ideas

You can have your 60th birthday as good as having the 18th birthday, despite you’re aged. Just implement the necessary ideas, and you will find yourself experiencing the moment, and you will get people around you enjoying it greatly.

  1. Outsource the Preparation: It is your 60th birthday. The entire family is happy for you. Outsource the works to your children. Enlist relatives that will go beyond eating at the party. Works like buying stuff from the market, booking a venue, and the likes can be done by your people.
  2. Send Invitations: A 60th birthday party can be akin to a bridal party. Send the invitation card to people. The invitation card may have photo series of yours since you were a baby up until now. On the invitation card, you should have your name, address and venue, date, time, email address and a phone number.
  3. Decoration: A nice birthday theme and decoration can make your birthday look beautiful. Choose the dressing code and decorative theme. Ensure you get the best outlook that fits.
  4. Prepare a Song: You should sing a personal song at the party…even if you are bad at singing. Everyone will be there to see how happy you are. Ensure you do make them feel who you really are.
  5. Prepare a Speech: It is good to give an inspiring and ever-powerful speech at such an event. The speech should last at least 15 minutes. In this speech, you should tell stories, educate people, embarrass your mistakes over time, and move the audience with your oratory ability.
  6. Gifts and Donation: If you have enough money, make a donation. Give money to an orphanage home. Announce the donation at the party. Mark your 60th birthday with charity. Contribute to the world’s goodness. Make your audience understand the need for love.
  7. Dance to the Music: Before the day, choose the playlist that you like the most. Give it to your DJ before the day. As the dancing moment comes, step up to the dancing space, lift your heart with gladness, shackle your memory, and find a reason to dance.
  8. Free Gifts: Inscribed a brand like “YOUR NAME @ 60” on clothes, bucket or any presentable material, and freely give them to everyone that comes for the party. Doing so will make the day unforgettable. Materials like handkerchiefs, towels, buckets, T-Shirts and the likes can be used.


With this article, you can plan a memorable 60th birthday party. It shows you how to calculate the amount of money the party demands, how to budget the money and what to do to make the party go awesome.

How to Plan a Cocktail Party on a Budget

How To Plan A Cocktail Party On A Budget?

How To Plan A Cocktail Party On A Budget

How to Plan a Cocktail Party on a Budget?

If you want to entertain friends or business associates, launching a cocktail party is good. It is the right option.

But to have an awesome cocktail party, you need to have planned for it. In this article, you will be shown how to plan a cocktail party on a budget.

If you adhere to this guide, your entire guest list will recognize the full worth of your effort to arrange the latter. And your social clout will rise.

What do you need to consider when planning a cocktail party?

You can’t believe how simple it is to organize a cocktail party until you start preparing for it. Here are the things you need to consider when planning for a cocktail party.

  1. The Party’s Date: On weekdays, people are often stressed out. And having a cocktail party on a working day is not the right option. Weekends are the best days to have a cocktail party…especially at night. It makes a perfect sense when the party lasts at least 2 hours
  2. Book a Venue: Cocktail parties are not birthday parties. They are formal. House parties are not an option. A hotel or a restaurant will do.
  3. Invitees: Who will you invite? Make a guest list. If the party is meant for having fun with your office mates, business associates or to reunite your college long-seen friends, get a list of their names. It is needed when making a budget for the party.
  4. Send Invitations: Send the listed invitees invitations. Notify them -latest a week before- of the party. Everybody likes his schedule. Ensure that you will notify them promptly.
  5. Plan a Budget: After you’ve sent invitations and the right people have been notified be ready to prepare a proper budget. A budget that is good. Good in the sense that it will help do two things. One, a budget shows how much you will spend. Two, it tracks your spending as the preparation for the party goes on.

How to Calculate the Money You Need to Launch a Cocktail Party

Money is important when it comes to budgeting. Without money, no party can be launched. You’re about to read everything you need to calculate the amount of money to host a cocktail party.

Let us say, the required amount needed to have an awesome cocktail party is CPC:

So, Cocktail Party Cost (CPC) = $ [GC+NGC]

Where the GC is the Guest Cost and the NGC is the Non-Guest Cost.

So, what do Guest Cost and Non-Guest Cost mean?

Guest cost is the sum of money needed to cater to the cocktail party’s guests and it is usually determined by the number of invitees expected at the latter.

Guest Cost = $ [(NAL + 0.15 X NAL) X CP]


NAL = Number of attendees or invitees on your list.

CP = Cost of catering per person or invitee.

While the non-guest cost is the money required to book the venue, rent chairs and tables (or party space), cater for entertainment, and pay for expenses that are not directly linked with the party’s attendees.


NGC = $ [VC + RC + EC + OC] + 0.15 [VC + RC + EC + OC]


VC = Cost for the venue

RC = Cost for the rents.

EC = Cost for entertainment, DJ, and related entertaining rants.

OC = Other Costs.

Take for example the cost to cater for the food and drinks for each person at a cocktail party is $30 and 10 attendees are expected the party.

Then, the Guest Cost, GC = $ [(NAL + 0.15 X NAL) X CP] = $ [(10+0.15X 10) X 30] = $330.00

But, the costs to rent a venue and hire a catering service are $100 and $150 respectively. The money to get a DJ is $200, and other expenses will be covered with $50.

Then, the Non-Guest Cost, NGC = $ [VC + RC + EC + OC] + 0.15 [VC + RC + EC + OC]
NGC = $ [100+150+200+50] + 0.15[100+150+200+50] = $ 575.00

Therefore, the Cocktail Party Cost (CPC) = $ [GC+NGC] = $ [330.00 + 575.00] = $905.00

Using the steps illustrated in the example, you can calculate the amount of money you need to launch a cocktail party. Your cocktail party budget must include the budget for food, decorations, entertainment and other necessary issues.

How to Get the Money Budgeted for the Party

You can get the money from your savings. If you are broke, you can take out a payday loan online. Taking out such a loan is the best option when it comes to seeking money to meet personal needs.

Cocktail Party Ideas

Alcoholic wines are the labels for any cocktail party. Your guests can get drunk. Reserve plenty of ice for them. Mixers like orange juice, cola are also needed. Hire a bartender that will mix the wines for your guests.

If you want to look professional at hosting a cocktail party, ensure your guests with some coffee at the end of the party, because drunken guests will find it helpful.

Ensure you have everyone’s taxi company’s phone number. With such contacts, drunken guests can be handed over to a safe driver instead of driving under the effect of alcohol.

No child should be allowed at a cocktail party. Every attendee should not bring their children to the party.

Do not offer much food at a cocktail party. Nobody eats much at such a party. Just ensure wines are available. Even if food will be served, prepare a menu for seafood, finger foods etc.

You can also spice up the party by offering sweets.

This goes for every party event. Always prepare more than you expect.


This article is helpful as it shows you how to plan a cocktail party, how to calculate the money to be budgeted and cocktail ideas that are trendy and fun!

How To Consolidate Credit Card Debt With Bad Credit

How To Consolidate Credit Card Debt With Bad Credit?

How To Consolidate Credit Card Debt With Bad Credit

How to Consolidate A Credit Card Debt with Bad Credit?

At first, you wanted a credit, but it later turned into an overwhelming debt. It is inevitable and it can happen to anybody. Knowingly or unknowingly! As a result, you lie into your bed awake every night, because of the credit card debt.

Everybody take out debts. You’re not alone. There are ways out. They worked for others and as a result, they will work for you. Don’t worry. With this article, you’ll gain control over your finances, you’ll erase your debt, and you’ll find it easy to sleep again.
Let’s begin on how to consolidate a credit card debt with bad credit.

How To Pay Off A Debt Fast With A Low Income?

To pay off a credit card debt you’ve to consolidate the debt. And by taking out a personal loan online, you can do that. A single payment attracts a lower interest rate compared to that of the credit card debts.

Is It A Good Idea To Consolidate A Debt With A Personal Loan?

Taking out a personal loan may not be the best consolidating option for you because there are other options that need to be checked. Let’s us discuss those option with their pros and cons, so that you won’t find it complicated when making a decision on what method to use. At first, let’s get a list of the other options of credit card debts’ consolidation.

What are the other ways to consolidate a credit card debt apart from a personal loan?

There are other ways to consolidate a credit card loan apart from using a personal loan. The listed options are other credit card consolidation options:

  • Using a balance transfer credit consolidation.
  • Taking out a 401(k) loan to pay off a credit card debt.
  • A home equity loan or a line of credit can also be used to consolidate a cc loan.

Is there a way to consolidate a credit card debt without hurting your credit?


There are many options to consolidate a credit card debt, but there is no best way to consolidate the latter. Some can just be the best option for your specific condition or be less risky than the other options. Ensure you understand the potential risks of an option before taking it.

Before we discuss each option, much must be discussed on your debt-to-income ratio, credit reports and scores. They are crucial because using the wrong option to consolidate a debt can hurt your credit.

How to Figure Out Your Debt-to-Income Ratio

To obtain your debt-to-income ratio, sum up your monthly loan payments and divide the sum by your gross monthly income. If it looks good, you’ll find it easy to get a loan.

How to check your credit reports and scores

Check your credit reports. Evaluate their accuracies. Ensure there is no error because an error on any of your credit reports can be disastrous. It can cost you a disqualification for the debt consolidation help you need. Ensure you dispute any error you find on any of credit reports.

Where can you get your credit reports from?

You can get your full credit history and the listed reporting agencies can provide you with your credit reports for free:

• TransUnion
• Equifax
• Experian

With a free credit report summary from any of the listed agencies, you’ll understand where your credit stands and that will help you choose the best consolidation plan for your situation.

What’s next? … Considering each credit consolidating option.

Methods of Credit Card Debts Consolidation

#1. Personal Debt Consolidation Loans

A personal loan is better than a credit card debt. Turning your credit card debt to a personal loan is a good option.

A personal loan interest rate is better. It charges small interest rates compared to that of credit cards which the latter varies from time to time.

Credit cards are revolving credits designed for short-term repayments whereas a personal loan can be paid back on the long term.

Consolidating your credit card debt into a personal loan is a nice decision as the latter has a constant interest rate with no variation.

With a personal loan, you’ll find it easy to sleep at night.

Just take a personal loan online, without leaving the comfort of your home and pay off your credit card loan once and for all.

Online lenders have credit requirements. Meet the requirements. Ensure you have an excellent credit score. With that, you will be qualified for a personal loan with a fast approval.

Before applying for a debt consolidation online, verify the lender. Check out your potential lender with the Better Business Bureau. Also contact the Attorney General’s office, the Department of Banking, or the Financial Regulation to know if the online lender is a registered business of your country.

Be cautious. Be alert to risk. Never trust an online loaner that pledges to grant a loan regardless of your credit. Stay away from an online lending platform that demands a huge upfront before granting a debt consolidation loan as well.

#2. Use a balance transfer credit card

This is another working method which is paying off your cc debt with a balance transfer. You’ll be rewarded by a credit card company when you transfer the balances from your credit card (with a high-interest rate) to a new credit card or a credit card with a lower interest rate. The reward is an introductory 0% interest rate on the transferred balances. This can also happen sometimes with your purchases.

This method is like a coin. It has its good and bad sides.


With a balance transfer, you can avoid paying the huge interest attached to your old credit card.


For every transfer, there is a fee. The fee is usually 3% of the balance transfer or $5. To worsen it all, some lenders restrict borrowers from using this method.

#3. 401(K) Loan

You can also erase your debt by using 401(K) loan. But it’s not the best option for an employer-sponsored account.

However, it may be an option, if and only if the other debt consolidation methods do not work for you.

A 401(K) loan doesn’t show up on a credit report when taken out. The pitfall comes if you can’t repay. And it comes with a bulky penalty plus taxes on the unpaid balance so that at the end, you’ll have to pay a higher debt.

A 401(K) loan is scheduled for 5 years. If you lose or quit your job, such loan has to be paid in 60 days.

Pros of using 401(K) Loan:

  • Comes with a lower interest rate.
  • No traditional application; it’s just as easy as borrowing money from yourself.
  • No credit check; The loan doesn’t show up on your credit history.

Cons of using 401(K) Loan:

  • Reduces retirement funds because taxes are not removed until you want to retire.
  • Comes with a bulky penalty plus taxes if you can’t repay.
  • Repay within 60 days if you lose your job; no mercy.

#4. Home Equity Loan or Line of Credit (HELOC)

Do you own a house? If yes, take out a home equity loan or a line of credit, and use it to pay off your credit card debt.

But here is the difference between a home equity loan and its line of credit. The home equity loan comes with a fixed interest rate whereas the line of credit offers you the chance to borrow the money you need again and again, but with a variable interest rate.
A HELOC comes with a draw period. And the draw period is the amount of time you can withdraw funds from a credit or take out an equity loan without repayment. But after the draw period, you’re responsible for the loan repayment. The draw period ranges from 5 to 20 years, but it is 10 years most of the times.

So if you take out the line of credit ensure you pay more than your minimum payment. Doing so will reduce the principal. After the draw period, you would have avoided the dent of the overall debt.


  • Comes with a lower interest
  • No credit check


  • Lose your house, if you fail to pay.
  • Long repayment terms; sometimes 10 years or more.


This article is helpful. It shows you how to erase your credit card debt fast with a low income, and it tells you how to do such thing by considering many options.

How To Pay Off Debt Fast With Low Income

How To Pay Off Debt Fast With Low Income?

How To Pay Off Debt Fast With Low Income

How To Pay Off Debt Fast With Low Income?

Have you taken out a personal or payday loans online and now you’ve been trying everything you could to pay off the debt with a low income? Perhaps you have a huge debt on your credit card and you’re scared to death because your monthly earning can’t afford it.

Now, what shall we do? You owe a loan but, you are earning a low income and as a result, you are finding it difficult to pay it off. You’re not alone. Though we’re far apart, I know how you feel. You lie in bed awake at night, because of them.

Your debt weighs you down. Don’t be confused. Don’t worry. You’re about to solve the problem. You’re about to know how to pay off debt with a low income. That’s exactly what this article is about.

Let’s get started.

How to Get Out Of A Debt on a Low Income

Loan repayments can take years if the borrower doesn’t know how to get out of it. Nonetheless, you can get out of your debt. Yes, it seems difficult but with this section, you’ll find it easy to do so. The latter provides you with tips to pay off your debts faster. As we proceed, each tip will be explained.

Don’t Take More Debts: Live within your limits and handle your money. Don’t spend beyond your means. Stop using your credit cards. Freeze them. Don’t make things harder. If you increase your debt, your financial life will squeeze and you’ll be hurt badly. Focus on the debt you owe and put all your strengths to pay down the latter. If you grow your debt, you’ll find it difficult to bear with it.

Create a Debt Hierarchy: On a list, arrange your debts in order based on their interest rates. Higher interest rate debts should be at the top. Pay the first on the list, then the second and so forth and so on.

This is an effective way to get out of debt in time. With a debt hierarchy plan, you’ll find it easy to control your finances and know what to do at a specific time in terms of a loan repayment.

Interest is crucial. It can increase your debt payment. It does it drastically. Permit me to give an instance.

A credit card debt of $15000 at an interest rate of 21%, is expected to get a $500 minimum repayment per month. The loan repayment will cover 8 years and 2 months (98 months) and that attracts an interest of $11350.56

That’s how bad an interest can be. So, it is wise to pay off the debt with the highest interest rate by using a debt consolidation method.

Reduce the Interests: You may ask: “Why should I lower my interest rate?” You should. It helps you get out of a debt faster. Just process a balance transfer. Move the balance from your credit card to another bank’s credit card account.

If you do that, the new bank will reduce the interest on your balance but before doing that, check a list of the credit card companies. Evaluate their lower interest rates for new customers. Choose the best out of them. It’s that easy. Also, ensure that you have read the company’s terms and conditions so that you don’t fall for a bait.

Break the Extravagant Habit: Live on a low budget. Don’t spend much as you know that you are on a debt. Only spend on worthy things. Minimize your spending and cut the fast food. Quit the parties as well.

Sell Your Old Properties: If you really want to get out of debt fast, sell goods you have, but you don’t need. It’s a quick way to raise a fund which you can use to pay down your debt.

Just check your house. Look into your wardrobe. Gush out the old-fashioned trends of clothes you no more wear. Gather the old electronics you no more use. Check your garage. Get car parts. Gather all kinds of stuff that litter your house without any specific reason. Sell them off and raise money. Use the fund to pay off your debt.

And you know something? The Internet is helpful. There are plenty of online marketers ready to help you sell your old properties. Contact one of them and make a deal. Sell your stuff. Have your money and pay off your debt. It’s that simple.

Find a Part-time Job: Expand your source of income. It will help you raise money. By doing so, you’ll find it easy to pay off your debt. Take up part-time jobs on holidays. Do seasonal jobs. Earn more money. Be dynamic and flexible. Get some extra cash, accumulate it and extinguish your duties.

There are seasonal greenhouse works. There are farm works, emergency plumbings, online freelancing and many other temporary works. Get one. It’s within your reach.

Perhaps you think all these things are stressful and you want to back down. Read the next section and understand the reasons why you need to get out of the debt asap.

Why do you need to get out of debt?

Do you want to become debt free? Don’t back down yet. Being in debt can be terrible. Use all the tips you were provided earlier to get out of a debt as fast as you can. Don’t be discouraged because it takes a lot of work. Yes, it takes effort. Give it what it takes.

Open your eyes. Close them. Look inside you. Imagine how your life will be if you were debt free. Get a paper. Write down the reasons why you need to get out of debt fast. However, the common reasons are mentioned as we proceed.

Let’s begin.

  1. A debt can stop you from saving money. Get out of it and you’ll be free to plan your financial life.
  2. Being on debt, prevents you from spending on whatever you wish. Make a purchase you don’t really need and you’ll feel guilty because you just increased your debt. But if you were debt free, you could freely spend on things you enjoy without any blame.
  3. Debt can wake you up at night. It can make you lie awake all night as it can lead to extra stress. Stress can damage your health in a way that it could lead to a heart attack. It can cause migraines so get out of it and save your life.
  4. A debt can take your properties away from you. Your mortgage lender owns your house. Your auto loaner owns your vehicle. Your tuition loaner owns your career. Until you pay off your debts, you cannot be left in peace.
  5. Most importantly, a debt can squeeze your credit score. And it’s the major reason why you need to get out of it. Much is discussed on this issue in the next section of this article.

How A Debt Affects Your Credit Scores

Debts can eat up your financial life as they can affect your spending power. Deaden your financial clout and you could find it hard to even borrow money because your credit score will be affected negatively. The greater your debt, the lower your credit score.

The credit score is important. It shows how close or far you are to balance your debt. Pay up your debt and you’ll get a better credit score. Don’t pay up your debt, and you’ll get a bad credit score. Let your credit score rise. Lower your credit utilization and don’t let your credit score suffer. Meet your monthly debt payments and void losing credit score points. Don’t let your debt be delinquent. It can cause a lasting damage on your credit score which can take several years for it to repair. It is preferable to consolidate your debt or take up credit counselling as they cannot affect your credit score severely. Just ensure you are debt free.

You know. The thing has two ways. Firstly, your credit card can be on a revolving debt. In that case you’re permitted to borrow as much as you want until you reach your credit limit. Keep in mind that with this situation, your interest rates also grow bigger. Secondly, you have taken out an installment loan. Here, the interest rate is fixed and the monthly repayment is also constant.

In any case, you must meet your monthly repayments. You have not to miss a single one so that you will not fail to repay your debt. If you do, it’s a terrible mistake and it can damage your report because your lender will send a report to the credit bureaus. The harm remains on your credit history for several years.

Stop enlarging your debt. Know the amount of money you owe, with its interest rates. Make sure to follow a good budget plan that will get you out of the latter as fast as possible. Cut your expenses and pay off your debts. Consolidate your credit cards with a balance transfer and take up temporary jobs to raise the funds to pay down your debt. Just be debt free.


This article is helpful as it shows you why you need to get out of your debt, how to get out of the latter, and how your debts affect your credit score. Even with a low-income, you can pay off your debt fast by keeping in mind all the aforementioned criteria.