730 Richison Drive Billings, MT 59101 406-248-9251

Author Archive: Goldie Fitzgerald

Overcoming Debt – What You Need To Know


Every day, thousands of people take loans for one reason or another. This may be beneficial or risky at the same time. Knowing how to deal with debts is a critical financial skill. Failure to manage your finances accordingly, you may get yourself struggling with debts. This article highlights some tips to bear in mind if you are struggling with debts.

Debts are good but may be unnecessary at the same time


Some circumstances may compel you to take a loan. If you lack the financial capability to raise cash for an urgent needs, getting a loan is an excellent idea. For instance, think of a student loan. This is an incredibly good thing if the amount is channeled rightfully. On the other hand, taking loans to buy luxurious items is unnecessary. Thus, it is important to define the need for a debt before taking one.

Know the difference between secured and unsecured loans

Secured and unsecured loans are technically different. Unsecured loans are based on your creditworthiness. In case you fail to meet your responsibilities, the lender will determine the next course of action. On the other hand, a secured loan is attached to one or more of your assets. In case you default payments, your assets will be taken to cover the amount due. If you have these two types of debts and you are struggling to repay them, you should first pay secured loans, and then later deal with unsecured loans.

Communicate with your creditors

If you are struggling with debts, then it is vital to speak to your creditor occasionally. This may seem difficult, but it is crucial. A creditor may pardon you some debts, or give you a better payment plan .Therefore, do not ignore the essence of chatting with your creditor in case of any difficulty.

Have a budget

Having a working budget in place is a vital tip if you are struggling with debts. Ideally, a budget helps you to plan for your current and future expenditures. More to this, it enables you to prioritize your needs and avoid impulse buying. Therefore, with a budget, you may not easily fall into debts. More to this, if you have an obligation, it will help you channel some money towards repayment. However, to achieve this, you must be self-disciplined.

Consider debt consolidationno debt signage

This is also an important tip if you are struggling with debts. Debt consolidation means summing up your debts and paying them at once. This is undeniably a fast way of paying your debts. More to this, it helps lower the interest rates. In the end, this relieves you debt repayment struggles.

There are many ways to manage and overcome debt issues. Besides the insights shared here, Contact American Debt Enders and let them find better ways overcoming your debt issue .

Effective ways of saving money

tighten money and calculator

Saving money is one way of creating wealth. Many are the times that people promise to spend less and save money, but they do not fulfil these promises. Even though there are many reasons why people do not save, there are many reasons of saving money. For instance, saving money will help you in easing your financial burdens, decreasing your debts and creating wealth. This will also give you numerous opportunities for leisure. This might be challenging at times especially to those people who have household expenses and other family commitments. Regardless of your income, you should always make an effort of saving money by adopting the following steps.

The little you save counts

Piled Coins

Can you remember the time you received money from your aunt or uncle? After grabbing that money, you were always reminded to put some in your piggy bank. This practice might feel outdated to some people, but it is an effective and simple method to begin saving. For instance, you can start your saving journey by keeping the small change that you receive after buying something.

Refrain from making unnecessary purchases

Always ask yourself if what you are going to buy is a necessity. This will help you in understanding how money is and thus avoid the small indulgences that would cost you huge amounts of money. Even it is necessary to reward yourself sometimes saving should always be your ultimate goal.

Buddy system

Are you interested in having additional support for meeting your saving objectives? If yes, then you should consider having friends who have similar challenges. This will help you in creating a contest which rewards the best person when it comes to saving. This is one way of motivating people to save more money. Again, this is another effective way of encouraging accountability for spending.

Tracking your spending

This will involve creating a budget to track your expenses and income. Budgeting will help you in forecasting your future and current spending. Also, it is an effective way of controlling your finances. Although some of the available budgeting worksheets are very sophisticated, starting simple is a great idea.

Paradigm shift

Two men gambling

Many people have a great desire of helping other people including their families. Having limited financial resources might lead to negative conflicts. It is therefore important to make sure that these relationships are properly evaluated. This is the best way of avoiding financial burdens and unnecessary hardships.

Paying your bills on time

Paying your bills on time will ensure that your creditors do not penalize you. Being penalized means paying extra money. Late payment is one way of creating a poor credit pattern.

Reasons why you should avoid filing bankruptcy

Bankruptcy Signage

Bankruptcy is a process where the borrower is granted an opportunity of reorganizing or eliminating his or her debts through discharge or by following a different repayment plan which lasts for a specified duration. The following are the main reasons as to why bankruptcy should be avoided.

Some of your debts will not be eliminated

TaxSome people believe that they can get rid of their debts by filing bankruptcy. However, this is not always the case. Some debts cannot be eliminated by filling bankruptcy including student loans, back taxes, alimony, and child support. Anyone interested in getting rid of these loans should avoid bankruptcy. These loans are not negotiable, and they can only be settled by budgeting around them.

It might affect your property

Once you are declared bankrupt, there are some assets that you will not be able to protect or keep. You will end up losing some of your items depending on the current state’s laws and your situation.

It will affect some of your retirement plans

It is worth to note that bankruptcy does not protect some of the retirement plans. However, some plans will still be protected from the creditors.

You will not qualify for another loan or credit

It will be difficult for you get approval for another loan after filing bankruptcy. In fact, you might take you another five years before you qualify for another secured loan like a mortgage.

Bankruptcy will affect your credit rating

Credit Report Document

Bankruptcy is known for affecting one’s credit rating. Being bankrupt will adversely affect your credit score. Once your credit score is affected, you will have difficulties in qualifying for credits and new loans for the next few years. In fact, filing bankruptcy will affect your credit rating for the next seven or ten years


It will affect your financial future

Your future financial situation will be adversely affected once you are declared bankrupt. For instance, it might influence your social security fund’s status. It is therefore important to make sure that your employer is notified once you have filed for bankruptcy.

Which are the best ways of avoiding bankruptcy?

The following are some of the alternatives that will help you in avoiding bankruptcy

  • Debt consolidation program-this will involve combining your loans. This is one way of lowering the interest rate and reducing the monthly payment
  • By seeking consumer credit counselling-Finding, a consumer credit counsellor can help you in reducing your interest rates and payment. These professionals can greatly help you because they are experienced in dealing with creditors.
  • Getting help from your friends and family members-Even if borrowing money from friends and family members is not a good idea, you can still turn to them when you are in financial crisis. Seeking for help can help you in making a difference.