One way to speed up the payment of your debts is to transfer them to a credit card with a low interest rate.  Because you will be paying less interest on your debt, more of your payment will be applied to the principal amount of your debt.  You can pay your debts off even faster if you can find a 0% APR credit card.

Credit cards typically have very high interest rates, and are an expensive way to borrow money.  In addition to the high interest rates, you could end up paying on your debts for a very long time because there is no definite end date to the loan.  If you pay only the minimum balance on your credit cards, it could take ten to fifteen years or more to completely pay off the balance.

Unfortunately, most families in the US have somewhere between $8,000 and $10,000 in credit card debts.  Many families have debts that are much higher.  The payments on these debts can take up a huge chunk of a family’s disposable income and make it nearly impossible to buy anything extra.  For this reason, it is advisable to pay off credit card debts as quickly as possible in order to free up room in the family budget.

How a Low APR Balance Transfer Helps

In most cases, you will need to have good credit in order to qualify for a low introductory rate credit card.  However, if you qualify, you can transfer balances from your other credit cards to the low APR card.  Make sure you check to see if there is a transfer fee before you apply since that will cut into your savings.  Once the transfer is complete, you should try to pay as much as possible on the new card during the introductory period since the majority of this money will be applied to the principal balance of your credit card debt.  This will help you get your debts paid off faster.

Tips for Paying Down Debts with a Balance Transfer

There are a few pitfalls you can run into when using this method for debt reduction.  The first is failing to check to see what the interest rate on the new card will be after the introductory period is over.  If it is much higher than your original rate, it may not be a good idea to transfer.  You might be able to roll the balance over to yet another low balance card before the introductory period ends, but if you can’t, then you will be stuck with that high rate.  Another common mistake is keeping the old credit card active.  If you do not cancel the card, you will be tempted to use it again.  Close out the old account as soon as the transfer is complete to avoid this temptation.

Thousands of complaints are filed against debt collectors every year. This is because these agencies will sometimes work outside the law to get their work done. Knowing a few things about them will help you deal better with them or altogether avoid them.

Know who a debt collector is.

They are third parties hired by banks and other creditor s to collect money from defaulters. They are governed by the Fair Debt Collection Practices Act when working to get you to repay the debt that you owe. When you get an unpaid debt collection mark on your report, you will find it hard to get credit in the either in form of credit cards or loans.

There are allowed times for them to call.

They should not call your house every minute that they feel like. The FDCP has set regulations on the times of day that they can call and inquire about the loan.

How do you stop them from calling?

You are legally allowed to serve a specific debt collector a cease and desist order in writing to tell them tat you don’t want them to contact you. This order should be in writing and will only work with the particular debt collector you serve.

Are you being followed for another person’s debt?

If debt collectors were honest, there would not be that many complaints about their conduct. Ask that the debt collector to validate the debt that he wants you to pay up and that they have been given right to collect it. They should provide you wit some form of documentation from the original creditor allowing them get the money from you otherwise they have no right to call you.

Since this right is available to you for only a limited time, send the validation requests to them as soon as possible.

The limitations period window

You can get the debt collector off your back if they contact you after the time that they are legally allowed by the statute of limitations (SOL) to sue you for a delinquent debt. The limitation period will vary from 3 to 6 years depending on the state. If the SOL time has expired, you will just have to proof this and their lawsuit is dismissed.

Has there been a violation of any of your rights by the collector?

The law does have the right to threaten you with legal action if you are unwilling or is unable to pay the debt. The cant also asks for amounts bigger than that you owed the original debtor. If the debt collector violates these laws, you have the right to sue for $1,000 worth punitive of damages and also for violation of your rights.

When do you pay the debt?

You can’t be sued for debts older than 7 years since the limitation period has already expired. The moral obligation should however push you to pay since you owe them the amount.

Are there ways for getting the debt off your credit report?

Fro the sake of your credit score, it would be beneficial that you have the amount removed from your credit report. Whether you have to pay a small fee to get the entry off your report or get it for free, make sure that the agreement is put in writing.

There are many types of symbols. Money from investors, banks or financial organisations is one such kind of symbols.

A successful Business Plan (=a successful manipulation of symbols) is one which brings in its wake the receipt of credits (money, another kind of symbol). What are the rules of manipulating symbols? In our example, what are the properties of a successful Business Plan?

(1) That it is closely linked to reality. The symbol system must map out reality in an isomorphic manner. We must be able to identify reality the minute we see the symbols arranged.

If we react to a Business Plan with incredulity (“It is too good to be true” or “some of the assumptions are non realistic”) – then this condition is not met and the Business Plan is a failure.

(2) That it rearranges old, familiar data into new, emergent, patterns.

The symbol manipulation must bring to the world some contribution to the sphere of knowledge (very much as a doctoral dissertation should).

When faced with a Business Plan, for instance, we must respond with a modicum of awe and fascination (“That’s right! – I never thought of it” or “(arranged) This way it makes sense”).

(3) That all the symbols are internally consistent. The demand of external consistency (compatibility with the real world, a realistic representation system) was stipulated above. This is a different one: all symbols must live in peace with one another, the system must be coherent.

In the example of the Business Plan:

Reactions such as: “This assumption / number/ projection defies or contradicts the other” indicate the lack of internal consistency and the certain failure to obtain money (=to manipulate the corresponding symbols).

(4) Another demand is transparency: all the information should be available at any given time. When the symbol system is opaque – when data are missing, or, worse, hidden – the manipulation will fail.

In our example: if the applicant refuses to denude himself, to expose his most intimate parts, his vulnerabilities as well as his strong points – then he is not likely to get financing. The accounting system in Macedonia – albeit gradually revised – is a prime example of concealment in a placewhere exposition should have prevailed.

(5) The fifth requirement is universality. Symbol systems are species of languages. The language should be understood by all – in an unambiguous manner. A common terminology, a dictionary, should be available to both manipulator and manipulated.

Clear signs of the failure of a Business Plan to manipulate would be remarks like: “Why is he using this strange method for calculation?”, “Why did he fail to calculate the cost of financing?” and even: “What does this term mean and what does he mean by using it?”

(6) The symbol system must be comprehensive. It cannot exclude certain symbols arbitrarily. It cannot ignore the existence of competing meanings, double entendres, ambiguities. It must engulf all possible interpretations and absolutely ALL the symbols available to the system.

Let us return to the Business Plan:

A Business Plan must incorporate all the data available – and all the known techniques to process them. It can safely establish a hierarchy of priorities and of preferences – but it must present all the possibilities and only then make a selection while giving good reasons for doing so.

(7) The symbol system must have links to other, relevant, symbol systems. These links can be both formal and informal (implied, by way of mental association, or by way of explicit reference or incorporation).

Coming back to the Business Plan:

There is no point in devising a Business Plan which will ignore geopolitical macro-economic and marketing contexts. Is the region safe for investments?

What are the prevailing laws and regulations in the territory and how likely are they to be changed? What is the competition and how can it be neutralized or co – opted? These are all external variables, external symbol systems. Some of them are closely and formally linked to the business at hand (Laws, customs tariffs, taxes, for instance). Some are informally linked to it: substitute products, emerging technologies, ethical and environmental considerations. The Business Plan is supposed to resonate within the mind of the reader and to elicit the reaction: “How very true!!!”

(8) The symbol system must have a discernible hierarchy. There are – and have been – efforts to invent and to use non-hierarchical symbol systems. They all failed and resulted in the establishment of a formal, or an informal, hierarchy. The professional term is “Utility Functions”. This is not a theoretical demand. Utility functions dictate most of the investment decisions in today’s complex financial markets.

The author(s) of the Business Plan must clearly state what he wants and what he wants most, what is an absolute sine qua non and what would be nice to have. He must fix and detail his preferences, priorities, needs and requirements. If he were to attach equal weight to all the parts of the Business Plan, his message will confuse those who are trying to decode it and they will deny his application.

(9) The symbol system must be seen to serve a (useful) purpose and it must demonstrate an effort at being successful. It must, therefore, be direct, understandable, clear and it must contain lists of demands and wishes (all of them prioritized, as we have mentioned).

When a computer faces a few tasks simultaneously – it prioritizes them and allocates its resources in strict compliance with this list of priorities.

A computer is the physical embodiment of a symbol system – and so is a bank doling out credit. The same principles apply to the human organism.

All natural (and most human) systems are goal-oriented.

(10) The last – but by no means the least – requirement is that the symbol system must be interfaced with human beings. There is not much point in a having a computer without a screen, or a bank without clients, or a Business Plan without someone to review it. We must always – when manipulating symbol systems – bear in mind the “end user” and be “user friendly” to him. There is no such thing as a bank, a firm, or even a country. At the end of the line, there are humans, like me and you.

To manipulate them into providing credits, we must motivate them into doing so. We must appeal to their emotions and senses: our symbol system (=presentation, Business Plan) must be aesthetic, powerful, convincing, appealing, resonating, fascinating, interesting. All these are irrational (or, at least, non-cognitive) reactions.

We must appeal to their cognition. Our symbol system must be rational, logical, hierarchical, not far fetched, true, consistent, internally and externally. All this must lead to motor motivation: the hand that signs the check given to us should not shake.

THE PROBLEM, THEREFORE, IS NOT WHERE TO GO, NOT EVEN WHEN TO GO IN ORDER TO OBTAIN CREDITS.

THE ISSUE IS HOW TO COMMUNICATE (=to manipulate symbols) IN ORDER TO MOTIVATE.

Using this theory of the manipulation of symbols we can differentiate three kinds of financing organizations:

(1) Those who deal with non-quantifiable symbols. The World Bank, for one, when it evaluates business propositions, employs criteriawhich cannot be quantified (how does one quantify the contribution to regional stability or the increase in democracy and the improvement in human rights records?).

(2) Those who deal with semi-quantifiable symbols. Organizations such as the IFC or the EBRD employ sound – quantitative – business and financial criteria in their decision making processes. But were they totally business oriented, they would probably not have made many of the investments that they are making and in the geographical parts of the world that they are making them.

(3) And there are those classical financing organizations which deal exclusively with quantifiable, measurable variables. Most of us come across this type of financing institutions: commercial banks, private firms, etc.

Whatever the kind of financial institution, we must never forget:

We are dealing with humans who are influenced mostly by the manipulation of symbol systems. Abiding by the aforementioned rules would guarantee success in obtaining funding. Making the right decision on the national level – would catapult a country into the 21st century without having first to re-visit the twentieth.

Many investors are only interested in investing money into an enterprise for a limited amount of time. They want to know when they will get their money back and what sort of return they will be receiving at that time. Both issues are closely linked. Therefore, when preparing your business plan, to pitch to potential investors, you will need to make sure that you have outlined your long term plans and a sound exit strategy.

In order to do this properly you will have to ask yourself a few questions about your own personal plans regarding the business. Do you wish to stay involved in this business in the long run, or are you more interested in getting it off the ground and letting someone else take over then? These are the kinds of questions you should deal with in your exit strategy.

You will also want to know a little about the investors you are pitching to and what their expectations are regarding the future of the investment:

• If you are dealing with venture capitalists you have to be aware that they are looking for a high return. They will generally be expecting the business to go public at the end of the period or make some other high profit move. The period they are willing to invest is about three to seven years so you will need some sort of high return exit strategy at the end of that period. However, you should not opt for going public unless you are confident that it is a realistic goal for your company. Public offerings are very rare for small businesses and the investors you are speaking to will be all too aware of that fact.
• If you are considering an angel investor then again they will be looking for a high return but will not be overly concerned with the type of exit strategy under consideration, as long as it seems sound. They will be less sophisticated than the venture capitalists or institutional investors you may deal with and are more likely to be involved because of a personal relationship to you or the business.

There are a number of exit strategies you can consider:

• The most basic exit strategy would be to simply bleed the business dry. This can be done by giving yourself a huge salary or other remuneration, regardless of the performance of the business. While it is not appropriate in most cases, there is no doubt that it can get a lot of your investment back out of the company in a short time.
• Another simple option is liquidation. Simply close the doors and wait for the company to be wound up. All debts will be paid off, and then whatever is left over will be clear to the shareholders.

While these two options above are quite practical and effective, they are professionally frowned upon and you may wish to propose a more sophisticated exit strategy if you wish to impress potential investors.

• Another option could be selling to a friendly buyer. While you may have come to the end of your relationship with the business, there may be many people who would be saddened to see it end and may well be willing to step in to take over. This might include passing it on to another member of the family, or selling it to employees or customers. There are many businesses where this will be a realistic option, however it is difficult to predict it at the beginning of the venture.
• Another option is acquisition. This is when a rival firm, usually one wishing to expand, agrees to buy you out. You can negotiate the price and terms with the buyer and there is a good chance that both of you can come up with a very attractive price. You will get a good price because together with your assets, the buyer will be willing to pay for good will, market share, client contacts etc. This means you can get a very good price for the business.
• The IPOs that we previously talked about are the final option. These are potentially the most lucrative of all, but when reality kicks in, they might not seem like the dream you thought they were. In reality, a minuscule percent of companies manage to make it through an IPO. The process costs millions, includes lawyers, analysts, publicity agents and a lot of other costly professionals. The odds are against you ever making it. And if you do, you will probably be left with only a fraction share of the company you used to own.

If you own a credit card, there is the possibility that you will spend a little too much than you should have. If you let this happen, paying the debt will be a really bad experience. These tips will help you avoid overspending.

1. Start saving for an emergency fund.

One of the reasons why people use their credit card for medical expenses is because they never invested in an emergency fund. If you have an emergency, you will only need to get the money that you were saving rather than charge your card that amount.

2. Can’t afford to repay? Then don’t buy,

If you can’t afford to pay for the item with cash, you are putting yourself in the risk of a debt that you can’t be able to repay by charging it n your card.

3. Keep of balance transfers.

If you are thinking of a balance transfer simply because its there for you, you are already making a wrong turn. The only reasons why you should think of the transfer option is if you are transferring you balance to a low interest card. Since there are balance transfer fees with every transfer , the debt that you transfer will only became bigger.

4. Avoid skipping payments.

You are charged a higher interest rate and loose a few points of your credit score by skipping payments. Make sure that you pay the debt when due.

5. Settle the full monthly amounts.

If you frequently carry over balances to the next month, you will never become debt free. If you have no amount from the previous month, you stay certain that the amount that you will pay this month is above the minimum.

6. be aware when you are getting into credit card debt.

If you see the sigs early enough, you can change what it is that is getting you into the mess and get yourself from going into debt.

7. Keep off cash advances.

The fact that you are using your card as a source of money is already sign that your finances are not in order. People who get into credit card debts will in the early stages start getting cash advances off their cards. You could avoid doing this by learning to budget and creating an emergency fund to cater for any unforeseen happenings.

8. Don’t give out your credit card.

You will have no control of what the person you give your card does with it. It’s not enough that they pay the bills that they incur. On top of those amounts are charges and interest amounts that you will have to foot. The reason that they don’t have a card is because maybe the company saw they as a paying risk. You should therefore also not trust them.

9. Get acquainted with the credit card terms.

The credit card agreement you get has al the terms that apply to the card you own as far as how the fees will be charged or what can make your interest rate raise and when. If you are familiar with these terms, you are able to judge how the way you use the card will affect your credit card cost.

10. Get fewer credit cards.

If you have more credit cards, it will be harder to control the costs that you charge them and won’t know when you are exceeding the amount that you can pay for comfortably.

Overtime the debts that you overlook really become big with time and before you know it, the debt that you have becomes too huge for you to settle. There are no miraculous ways that the debt will go away but there are ways that you could ensure that you are in control of it. By going fro item to item on the list below, you will be able to be able to get to a way to lower. There’s got to be a few that will work in your favor towards toning those debts to levels that you can manage.

1. Negotiate with creditors

Asking the people that you owe for a time off may be one of the best ways to help you put your debt problems in line. Your credit report contains all the people you owe money to. From the amounts that you owe them, you can be able to come up with what you can pay each on of them. Call the creditors and tell them the amount that you can pay upfront then clear the balance later. When you call their place business, you may get on phone a representative who may tell you no, instead of getting into an argument with them but rather ask that they put you to their supervisor who can help you. If they agree, make sure that they send the agreement in writing bearing the company’s letterhead incase someone challenges you in court.

2. Consolidate you debts

You could enjoy lower repayments on your loan by combining all the debts that you have into a single plan or taking a home equity loan. If you could find a loan that offers a lower interest rate than that of the average of all the debts that you are currently servicing, then you will save by taking it.  Its preferable that this loan not extend the repayment period since the extended period may translate to additional interest expense

Is debt Consolidation the magic pill for your debt?

3. Transfer balances

This option is available to people with god credit card scores. The person with the debts gets a balance transfer credit card that usually charges lower interest rates than that charged by their own cards. The interest will be sometimes being as low as zero percent introductory rates. At this time, one is able to make payments without interest.

How to Choose a Balance Transfer Credit Card

4. Talk to a credit counselor

Credit councilors are professionals whose skills can help them negotiate an interest rate for you to your creditors since they are trained in such issues. They have debt management plans (DMP) that could help you not only get lower monthly but also assist you to make a budget. The will also be able to get you acquainted with the best financial management skills.

There are always bad people in every field and so, you should check the background of the credit counselor you chose. Most credit counselors don’t charge for their services and should be differentiated from debt settlement companies that get you into more financial mess in the name of helping you.

Find out about consumer credit counseling

5. File for bankruptcy

Sometimes the debt that you owe becomes an unbearable financial burden. When that happens, you should start considering filing for bankruptcy. The bankruptcy laws are tight to prevent abuse. Before one is allowed to file a plea of bankruptcy, they are first required to get the services of consumer credit counselor and then do an income-debt comparison.

There are certain debts that by virtue of Chapter 7 of the bankruptcy laws will upon filing for bankruptcy you will get rid of but will be required by Chapter 13 of the same laws to create a plan for the repayment of others.