Carrying around high interest debt is like living in a financial black hole. You throw money at credit card bills each month but the balances never seem to go down. You want to sock away extra money for retirement and other financial goals but there just never seems to be any cash left once you’re done feeding the debt monster.
No matter what our age, we all have to be careful about the level of debt we hold, but for those in their 30s, managing debt can be especially challenging.
According to the most recent data from the Census Bureau, those ages 35 to 44 have the highest levels of household debt of any age group; their $108,000 in median debt weighs in 25 percent higher than the next most indebted age group.
A long-standing rule of thumb holds that monthly payments on debts (not including a home mortgage, which is really more of an investment) shouldn't exceed 20% of take-home pay. The closer you get to that 20% ceiling, the greater your risk of over-indebtedness.
Debt is a serious problem for a lot of people and it is something that you need to be concerned about. However borrowing money is not always a bad thing there are times when debt can be a good thing. It is important to make sure that you understand the difference between good debt and bad debt so that you can make good choices when you borrow money.
The way of bridging loans, or otherwise known as bridging finance, is an unstable one. The variations between lenders tend to be larger when compared to some of the more common loans. Due to its scarcity, there really is no method to pinpoint the differences between bridging loans, as it is forever changing to take the lead in this particular market. Due to a new rise in popularity, bridging loans are becoming more stable among loans. This brings along its own set of advantages and disadvantages. The borrower in this current time has all the power to choose between waiting for the changes, for taking up bridging loans before the changes take place.
Along with the financial worries, struggling with debt often leads to depression, anxiety and stress and can cause tension or arguments between you and your loved ones. Here, we look at how to deal with stress and the emotional and mental troubles that come with being in debt.
You may still incur bad debts even with sound credit management policies and procedures. There are a several methods with escalating degrees of severity that you can use to recover these bad debts. It is advisable to use a measured approach and select the most appropriate method to recover the debt while maintaining the relationship with your client.
You have debts that you think are now beyond your capacity to repay them. Such bad debt situation is common thanks to modern day consumerism that has led to uncontrolled spending. But along with the problem comes the solution also. And the remedy is bad debt management. Bad debt management involves various techniques to manage debt in such a way that the debt burden is reduced considerably.