Money matters: Punches of Debts

Money matters: Punches of Debts

 

 

Debt, who has not experienced having it? Who does not get pushed to a situation to have it?

 

Money says it all. Though some people say that money is not the most important thing in life, the paradox happens around us. People do everything just to keep their pockets full. Many even tries to do all means just covet it without considering the morality of the action. People dive, box, steal, swindle just for that thing. People want to live with comfort. Affluence is so influential today. Money pulls opportunities nearer to one. Just imagine one day; you realized that you have too much debt. What will you do? Hide or seek?

 

There are these effects which are less talked about but they are so true. If one’s debt pile up, it will really give a hard time to the individual. Just the thought of soaring bills, the soonest deadlines, the fines if one could not pay on time… All of these will really make one go mad. Not only mad but-

 

First, one’s self-esteem will trim down due to the thought that one is so bad to have allowed himself to be in that situation. This effect is proven by many situations. The sudden change in one’s grooming may tell. Keeping your confidence in this kind of scenario is a must. Letting go of one’s self-esteem may just ruin your entire life. The frustration of not making it well will really affect a person’s perception of his very self. He thinks he is the cause of the entire problem. Sometimes, past frustrations will also be opened again.

 

Stress is a major problem by modern-day people. When one is stressed out due to worrying about his debts, like what if he is going to be put behind bars due to it? These continuous thoughts will really disturb the person psychologically. This will give one anxious moment. Lose of appetite will follow soon. Sickness will follow. Not only lose of appetite but also lack of sleep because of thinking so hard will cause a person to get thinner. His resistance to physical challenges will not be good like it used to.

 

The most painful blow of having so much debt is the walls it will build within a family. Since you are so affected by the problem, you get irritated so easily. Family members will also share the sentiments, like frustration and shame. There are even times when you will blame each other for the misfortune. Arguments, complains and blames will bloom out of the blue. People involved will surely feel the pain of the situation. A family will be divided, a friendship may crack down. Worst, untoward cases of inflicting deeper degree of pain will be the consequence.

 

Life is a gamble. WE cannot have everything but we can do something n order to set the path we want to take with our beloved family. Borrowing money is fine. Just see to it that your resources are enough to pay it- on time.

 

Money and consolidating Debt

Money and consolidating Debt

 

Debt Consolidation is a means of simplifying payments of debts. It is a method wherein you pay all your debts using one single loan. On the other hand, it may extend your repayment time. It would also mean an increase on your finance charges. Refinancing is one option to lower interest rates.

 

Let us take a peek on the advantages and the disadvantages of debt consolidation.

 

As its plus points, it requires only one monthly payment rather than numerous. This simplifies bill paying. It assures also that the bill is paid on time. When it comes to interest, it may also have lower interests than other debts.

 

As its minuses, reduction in the monthly payment may tempt you to take on more debt. What’s worse is that you may lose your home if you take out a mortgage to pay off unsecured debt.

 

A well-chosen consolidation plan is necessary so that it will not push you to a deeper pool of debts. There are certain means to get money for debt consolidation. Here are some of them:

 

• Borrow money from yourself

-          Money from your savings accounts, Certificate of Deposits (CDs), stocks, bonds, or retirement could be of use or consolidating debts. It just takes risks because this amount may serve as your emergency fund. You may need it ay time soon.

 

 

• Borrow from family and friends.

-          It sounds easy to borrow from this group of people but not paying the said amount properly or just being on time will ruin the relationship.

 

• pawnshops

-It can give money instantly but only 30-50% of the real price of an item.

 

 

• Lie Insurance, Loan Account or Home-Equity Loan

-          Are also means of money for debt consolidation but they post disadvantages.

 

Just bear in mind, a consolidation loan is fine if and only if YOU:

 

-          Have a high amount of debt;

-          Have a very high interest rate on that debt; or

-          Are considering borrowing more money at a high interest rate.

 

If you are not committed to repay the debt, you are tempted to use “freed up” money to have more debt or you are risky enough to lose your own car, debt consolidation is not a good idea in any side o the spectrum.

You have to think of some alternatives and not resort to consolidating debt.

 

 

 

 

 

 

 

 

 

 

 

 

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Monetary Finances between the Poor and the Rich

Monetary Finances between the Poor and the Rich

 

 

 

Money, money, money…

 

This is the cause of all that is material but the reason why man struggles so hard. The value of money is so unstoppable now. It is so important though people always try to claim that it is not that so much important. The fact is so clear that money matters… a lot.

 

Around the world, money determines the status of a country in the international scene. The rich ones are of course- powerful. Those which are poor are usually the subject of oppression and discrimination. Even within a country, there is a big deal between rich families and the masses. Sad to say, the gap is so big. We could claim that equality exists but there are so many obvious reasons telling us that it does not. How come many stay on the street begging for alms when many just spend to waste their financial resources?

 

Money is the cause of imbalance. The world has in it a promise of equality but it seems strange. Third world countries have difficult times to finance all their affairs especially education and health aspects are neglected. For other rich countries, people live with comfort and the value of their piece of coin is as much as the value of the third world’s 12 hours.

 

This uneven distribution of wealth and finances greatly affect all. Some countries could finance big and expensive events for a night. It may include welcoming so many guests and showing off the riches of a place. For the poorest, their government could barely prioritize their basic needs over military equipment. According to statistics, there are an overwhelming number of hungry people most especially children. This is not overwhelming but a kick on our hearts.

 

Countries are creating a community of amity. They share what they have while others seek the help they needed. Why some countries’ finance not suffices their people’s mere existence? This is the saddest question to answer. Why? It is because the answer is still unknown.

 

On the other hand, poor countries do not seem to find means to escape the pity of big countries. They just live with donations. Low financial capacity is often coupled with blaming the society for all the misfortune. The point we want to stress out is, let us not let personal inadequacies to vanish into thin air. Does a poor country strive for its personal wealth? Let us say not necessarily finances.

 

There is a lot of wealth around us. They come in beautiful forms but we just think money conquers all.