I see a guy on TV all the time. He says that you can buy a home with no money down and then come from closing with money in your pocket. Supposedly people buy homes and make millions a year. Do you know about this? How this could be done? Is it worth the 3 payments of $59.99? Or is it a scam?

–Kevin

Sure sounds tempting. You walk in with nothing, sign some papers and walk out with cash and the keys to a house. And, you can do it over and over until you make a million!

Much as we’d all like to believe that the road to riches was that easy, it’s not. Yes, you can make a million in real estate. And some people have started with nothing and built an empire. But, it’s not easy and certainly not a sure thing.

A quick disclaimer. I have not seen this specific course. But similar courses pop up anytime that the housing market is hot for awhile. And unless this guy has discovered something that no one else has tried before, you don’t need his course. Here’s the $180 secret. It’s called leverage.

Borrowing money to invest isn’t new. People who buy stocks on margin or play the commodities markets do it every day. It is interesting to note that there are limits as to how much they can borrow. The regulators know that if you borrow too much it’s dangerous.

I’m not saying that this strategy hasn’t worked for anyone. It has. Given the right set of circumstances you can borrow money to buy an asset, have that asset appreciate and sell it for a profit.

Here’s how it’s done. Suppose you buy a home for $100,000 and pay cash. Three years pass and the house is now worth $150,000. You sell it and make $50,000 on your original $100,000 investment. That’s a 50% return in just three years.

What happens if you had taken out a mortgage. Suppose that you put $10,000 down. Again, three years later you sell it for a $50,000 profit. But this time that’s a 500% return on your original $10,000 investment. The reason is that you were making money on borrowed money. That’s called leverage.

Could you go in with 0% down and make that profit without putting any of your money up? Yes, if you could find someone willing to lend you 100% of the purchase and the house appreciated 50% over three years you could indeed make $50,000 without putting up your own money.

So if it’s so easy why shouldn’t Kevin jump right in? There are a couple of reasons.

The first problem is higher payments because Kevin is financing more than the value of the house. He’ll probably also pay a higher interest rate because he didn’t have a down payment. That means less money for food, health, auto and other routine expenses.

The second problem is that he’s locked into the home. Unless he’s willing to write a check at closing, he won’t be able to sell until the house is worth more than the loan.

Suppose he takes out a 7%, 30 year mortgage for $103,000. His regular monthly payments won’t reduce the principal to under $100,000 for nearly 3 years. So he’s literally trapped in the house until it appreciates.

And, contrary to popular belief, home prices can go down. If home prices drop by 10% Kevin’s house will be worth $90,000. It will be 9 years before Kevin’s mortgage drops to that level.

Another potential problem is that Kevin’s lender will be quicker to foreclose. They count on the value of the house guaranteeing the loan. They can’t afford to let Kevin miss payments if the loan is bigger than the house’s value.

Finally, can he use this strategy to buy more properties? Typically you want income property to pay for itself and leave some extra income for you. Using this method the higher mortgage payments will make it hard to build equity or have a positive cash flow. And, landlord Kevin can expect some repairs, late rental payments and the occasional vacancy. Unless he has cash to ride out these storms, any problem could make him late with his mortgage payment. And that’s when things start to unravel.

Kevin could consider other alternatives. There are some safe, predictable strategies that have worked for years. One possibility is to start with a duplex. Live in one side and rent out the other. It’s a good way to live inexpensively and build equity at the same time.

Or buy a fixer-upper. Quite often a few dollars in cleaning, paint and repairs can add thousands to the value of a home. And a cheaper home means a smaller mortgage. Kevin will enjoy the lower payments and build equity more quickly. He’ll also be able to sell and move any time he wants.

One final thought. Have you ever wondered about guys who claim to have made millions and go on TV? Why would someone so wealthy charge so much for workbooks, tapes and cassettes? Call me skeptical, but I think they know that it’s easier to take your $180 than to make money in real estate.

I want to begin this chapter with a personal story. My father asked me to help him pick out a new car. After visiting several new car dealers in the area we finally found one with a car that had the price and features we were looking for. Once the negotiations were complete, and the price was agreed upon, it was time for the dealership to add in those extras such as; tags, processing fees and anything else they could.

Finally, the balance due for the car was presented and we decided to finance it. The salesman told me the length of the loan and the interest rate. I already knew the amount to be financed so it was easy to calculate the monthly payments. It was at this time that we were instructed to go into a separate office to read and sign the loan agreement. When the contract came out of the computer the monthly payment shown was $65 a month higher than I had calculated! That $65 per month for entire length of the 5-year loan would total $3,900! I expressed my concern and was told that, “you can’t figure out monthly payments with a simple calculator” and “the computer is right.” I informed the salesman that unless the payments were what I computed, the deal was off and I would be visiting the dealer across the street who would be happy to have my business. Furthermore, I was using a scientific calculator which can easily handle simple monthly payment problems.

Once they saw I was serious, it was explained that the computer “accidentally” added a charge on for an extended warranty and undercoating. They adjusted for this error that they “obviously had no idea occurred,” and told me the new payment. This time it was closer, but still off by $10 a month. This might not seem like much money but $10 a month for 60 months is $600 and I would rather keep the $600 than contribute it to the next dealership rob-the-customer-day party. I told them again that they were wrong and I was not going to allow my father to sign any agreement until the numbers were correct!

After searching, they finally “discovered” what went wrong. Another computer blip that they had no control over. It turned out that the interest rate on the agreement was not the one they originally quoted me. Once all the numbers were correct the computer spit out the correct monthly payment and we got the car.

I am not trying to imply the dealership tried to rip me off. Oh, no! But what is certainly true is that if I did not know how much the payment was supposed to be, my father might have signed that agreement and paid a huge unnecessary fee.

Since then I have helped many of my friends buy cars. In each case, the starting monthly payment was always higher than I calculated and later reduced to the correct number. These are real examples of the necessity of being able to solve simple math problems.

This is the most important chapter in the book. It is essential to know how to calculate, in advance, all the terms of a loan. You need this information to compare different credit agreements and determine which is best for your unique situation.

I received an excellent credit offer from one of my credit cards that included a low rate for purchases. To maximize this offer, I needed to use the entire credit line by the offer’s deadline. With at least 300 remaining in available credit, and being in need of a new 27-inch TV, I decided to take advantage of a sale at a local discount store.

The TV, with tax, came to 318. When the clerk swiped my credit card through the register, the transaction was rejected. I knew I was close to the limit, but since I’m into this credit stuff (I like to play these games for fun), I told the clerk to wait while I gave the bank a call. I wanted the bank to approve a credit-line increase on the spot so I could complete the transaction.

I called the customer-service phone number on the back of my card and spoke to an account rep, who transferred me to the credit department. I explained the situation and was told that I must give them some information before they could give me the increase. This translated into a formal phone application in which I had to disclose every single detail of my financial life to get “quick” approval.

After about one minute, they came back with a “NO” response! I asked the woman, “Are you kidding? Why?” The reason: “Too many open accounts and too much debt.” I told her to look at my payment record. She said, “You’ve never been late.” Okay, now how about my record at your bank? Again, “Never late.” In other words, I’ve charged and repaid more than 20,000, on time, over the last two years. “That’s a lot of profit for your bank, and now you tell me that the first time I call and ask for help, I can’t even get a 50 credit-line increase?”

Her response was, “It’s not bad [what the credit report says]. I even asked the supervisor, and he said it’s out of our hands. Sorry we couldn’t help.” To which I responded, “That’s okay; I’m sure another bank CAN help.” I also told her to note in my account record that “I’ll be paying off my balance tomorrow, so I’m not such a credit risk for the bank!”

Boy, was I fuming. I had to run to a MAC machine to get cash for the TV purchase. My twenty-something clerk said, “Dude, that happened to me last week.” Yeah, thanks for the sympathy, bro.

The next day, I called another bank on my good-credit-offers list and had them issue a check to the offending bank—in full. That should get their attention. Their profit ends TODAY. But this story doesn’t end here.

Like a movie with a good ending, I got to rub it in the bank’s face. Eleven days later, I get a call from that offending bank. Would you believe, they were offering a deal of 5.9% for six months plus no annual fee (like I’d really pay one anyway) if I stopped the balance transfer. Seems they received my transfer check and wanted me to void the check to keep my business in return for this so-called offer. I was gleaming! They had felt the pain of losing a good customer, and it hurt.

I asked the woman making this offer if she could see what had been going on in my account—particularly, that I requested a credit-line increase and was refused. I explained that when I called and asked for help, they weren’t there for me. I said, “I can’t believe that after all the money I’ve charged and repaid on time, I am still considered a bad credit risk by this bank.”

According to my notes, from charges and interest, they were making about 900 a year from my account—and that number just went to zero. With all that profit and my perfect on-time record, the bank rejected my credit-line increase, forcing me to drive to an ATM and return so I could buy the TV. Then I had to turn to another bank to serve my credit needs because this bank doesn’t know how to treat its customers.

I thanked the woman for listening and asked her to note in my account what I said. I also told her that I will accept another offer from this bank sometime in the future—giving them another chance. I have plenty of good offers to choose from, and I don’t need theirs, even though I would normally take it. I explained that I needed to punish them financially like they punished me while I was making a purchase.

The moral of this story, from the credit consumer’s point of view, is that you need to have a good credit history to be able to punish a bank. You need to have other available credit lines to turn to in these situations. Let your banks know that you have many credit cards to choose from and that if you’re not treated with the respect you deserve, you’ll drop them in a heartbeat and go to another bank that wants to make a profit.

We have been making payments of $100 every month which is well below the minimum that the credit card company requests. They call nearly every day hounding us for the rest of our minimum payment which has reached in the neighborhood of $800 a month.

Although we are not paying what they request every month, we ARE making a payment. Is there any way we can stop the phone calls? Are we breaking the law by not paying the entire minimum payment? We do plan on making a large payment when we can, but with three kids and one income, $800 is hard to come by.
–Lisa B.

Sounds like Lisa is in a tough place. She’s really asked three separate questions. What can she do to stop the collection calls? Is falling behind illegal? And what’s the best way to get out of this situation?

According to the American Bankers Association there’s over $600 billion in bank card and revolving credit outstanding. And a little more than 3% of the bank card accounts are delinquent. That’s about $18 billion owed on past due accounts. So Lisa’s got a lot of company.

Let’s begin with the harassing phone calls. The Fair Debt Collection Practices Act (FDCPA) is designed to protect consumers from abusive, deceptive and unfair treatment by debt collectors.

The law gives debtors certain rights. For instance, if you don’t think that you owe the money, you have the right to dispute the debt. You must respond in writing and do it within 30 days of receiving the letter from the debt collector.

The phone calls can be stopped. Just send a letter to the collection agency telling them to stop contacting you. Once notified the collector can then only call or write to inform you of action that they intend to take (i.e. legal suit) or tell you that they intend to stop trying to collect the debt.

She is allowed to hang up on a debt collector. No law says that you have to speak with them. Nor do you have to give them your phone number if they ask.

Debt collectors are not allowed to call you at work. They’re limited to calling between 8am and 9pm. They can’t make threats or tell others about your situation.

Any complaints about collection practices should be directed to your state attorney general or local consumer protection agency. You may also choose to send a copy of your complaint to the FTC at: The Federal Trade Commission, Washington, DC 20580.

Lisa should not negotiate with debt collectors by phone or in person. All communication should be written. Respond to all of their requests by mail. Use registered mail so you have proof that it was received. By keeping copies of all correspondence she’ll have a precise record of what has happened.

It appears that Lisa missed a very important step. When you’re about to fall behind you need to contact creditors immediately. Explain the situation and your willingness to repay debts. They’re more willing to listen if you call before the bills become past due. They may customize a repayment plan that you can afford. Remember, their goal is to collect the money borrowed plus interest. If you propose a plan that will get them paid back you’ve helped them achieve that goal.

Now for the second question. Yes, Lisa is breaking the law. She won’t be taken away in handcuffs. But she has made a contract with her credit card company. Now she’s not living up to that contract. Those charge slips commit us to the payment plan of the card company. If the situation goes on long enough, the creditor could force Lisa into bankruptcy.

Already, the delinquency is reflected in Lisa’s credit history. That will make it more expensive for them to borrow money in the future.

Finally, what can Lisa do to get out of debt? First, she needs to use a budget. Then she needs to raise extra money and be prepared to cut all unnecessary expenses.

This is a good time to consider any way that Lisa might have to raise funds. Consider a part-time job. If they own their residence, a home equity loan might be a way to make the debt more manageable.

Unnecessary expenses need to be slashed. And “unnecessary” should be defined as anything that’s not absolutely essential to surviving until the crisis is passed. For, indeed, this is a financial crisis.

Lisa’s $100 per month isn’t enough to get the debt paid off. At 22% annual interest (and it could well be higher) it would take her 6 years to pay off the debt.

But it might take longer. According to Bankrate.com all of the ten largest card issuers have increased their late fees within the last two years with $29 being the most commonly charged fee. Paying less than the minimum can also trigger fees. If she’s incurring a fee of $25 per month, it will take her closer to 9 years to pay off the debt.

If they really can’t raise money or cut expenses, Lisa might want to consider contacting a non-profit credit counseling agency. There are a number of good ones available. It will be a black mark on their credit history. But, it’s better than falling even further behind and heading towards bankruptcy.

Lisa is definitely in a bind. Debt is a cruel master. Card issuers really don’t care how hard it is to make the payments. They live in a “bottom line” world. Either they collect the money owed or they have to write it off as a loss. And no one likes losses.

Hopefully Lisa will be able to find an extra $100 each month that can be applied to repayment. That could be enough to begin to resolve this crisis and start the recovery process.

I thought it important to pass on to my readers some valuable Travel Information about credit card fraud and the use of Card Sleeves.

I was watching the news the other day and I was just dumbfounded by how vulnerable we are to thieves in this high – tech world. It seems the latest and hottest trend for thieves is how they can easily scan your credit card information by merely standing next to you or walking slowly past you. This is called ‘electronic pickpocketing.’ Experts say this is a pretty easy and straightforward method, where thieves use an electronic scanner, that looks like a small laptop or notebook and are able to retrieve account numbers, expiration dates and other important personal information.

It’s so simple, many wonder why it hasn’t been used a long time ago!

Sleeves – Fights Radio Frequency Identification

It’s called RFID or Radio Frequency Identification and with this technology, thieves can simply pass by you with a simply scanner device and retrieve all the information they need to use your credit card. This new high – tech thievery is really scary and believe or not, crooks can buy a card reader or similar device on the internet for about $100.

So it seems the development of placing protective chips in credit cards has backfired and card companies are now in the process of replacing over 100 million cards world – wide that have chip technology with a new ‘contactless smartcard’. This change is expected to take over 2 to 3 years. In the meantime, especially if you travel to big cities or regularly find yourself in large crowds, credit card sleeves are definitely worth the small expense for protecting yourself from these criminals that prey on others.

Credit Card Sleeves – Protect Yourself

A simply, yet very effective way of combating electronic pickpocketing is with sleeves for your cards manufactured by a company known as Identity Stronghold. Experts fighting this criminal activity have developed a simply yet effective sleeve or pocket for your cards which keeps your personal information safe from these scanners. It basically shields your cards from having your information stolen.

You should also be aware that not only are your credit cards at risk, but bank cards, drivers licenses, many passports, government id cards and much more have these RFID or Radio Frequency Identification chips embedded in them.

This electronic pickpocketing has become so popular and rampant, that these sleeves for cards are now been featured on numerous news broadcasts and popular TV networks and stations such as CNN, Discovery and Fox, just to name a few. It has become vital that the public be made aware of this high – tech thievery and card companies; government and other authorities are now taking action against this form of theft.

I strongly recommend you check out this form of credit card protection as quickly as you can. It’s unfortunate that as soon as something is developed to better protect our security and personal information, someone in the criminal world comes up with something to override that protection.

It’s important for us to do our part to assist in beating these criminals and travel safely at all times whether it’s just commuting to work on a daily basis or travelling abroad.

Have you been cast out of your “home” company due to downsizing or reorganizing — through no fault of your own?

Prior to a job shift — or job loss — were you part of a team to which you felt a strong sense of belonging, and whose mission appeared to be fundamental to the health of the organization?

When you took the position from which you were laid off, did you assume (or were you promised) a lengthy tenure that would provide a reliable career track for professional growth and benefits for your financial well-being — only to have those assurances suddenly pulled out from under you?

Have you “jumped ship” in the wake of corporate mergers or acquisitions that signaled your job would soon be history?

Is your work history spotted with layoffs that had nothing to do with your job performance and everything to do with current economic realities in your industry or the speed of change in your field?

Has constant change inured you to a wandering professional life, one in which you believe there is no loyalty between employer and employee, and it’s each person for him/herself?

If any or all of these questions describe your situation, you qualify as a Corporate Refugee. Take heart. There is life after layoff.

The first step is to become educated as to how best to navigate this sea change in your life. Begin by understanding the stages you can expect, and making the most of each one through proactive strategies.

PRESS RELEASE

Santa Monica-based eToys.com lays off 700 workers as the biggest blood-letting yet in the dot.com massacre. There’s blood in the streets, mingled with pink slips, as news of business closures continue to pour in. During the mid-1990s, 1 in 16 workers were displaced by downsizing, reorganization, or corporate mergers and acquisitions-and there is every sign that the bursting of the dot.com bubble means more of the same.

Today’s job seekers fear a recession, so they’re jumping right into the job search, but can they give their best if they are hurting emotionally and philosophically? Not according to Santa Monica psychotherapist Ruth Luban.

Feelings of betrayal and loss of a sense of place are crippling, and legitimately so, says Luban, author of the just-released Are You a Corporate Refugee? A Survival Guide for Downsized, Disillusioned and Displaced Workers (Penguin Putnam, 15).

Says a displaced eToys worker who asked not to be named: “I feel ashamed, disappointed, frustrated, sad. I didn’t just lose my income; I’ve lost a place I loved to go each day, people I liked, a way to introduce myself, define myself.”

Luban, whose own parents were Holocaust survivors, sees precipitous job loss as analogous to the experiences of refugees having been uprooted from their home countries.

“Even talented IT professionals who rebound immediately into new jobs–without going through the loss process–experience the emotional underpinnings of the refugee experience, resulting in distrust, disloyalty, reduced productivity, and fatigue,” says Luban, who is also the author of Keeping the Fire: From Burnout to Balance (1996).

Rather, Luban maintains, such “refugees” should use the opportunity of unemployment as a productive exodus to a “new land” of opportunity, where they can emerge better off-and stronger-for what they have been through.

The workbook-style Are You a Corporate Refugee is intended to help on that journey of discovery. It provides specific strategies and targeted resources for every stage of the refugee process. Publishers Weekly called it “a practical and compassionate guide to recovery and renewal that knowingly addresses the larger issues accompanying the experience of losing a job.”

Luban recognizes that leaving the workforce causes not only a loss of income, but also losses of identity, structure, and community. Her step-by-step program addresses these problems and explains how to work through them. Using case studies, first-person accounts, exercises, and informative sidebars, she identifies the five emotional stages of job loss:

* On the Brink

* Letting Go

* In the Wilderness

* Seeing the Beacon

* In the New Land

By working through each of these stages, Luban shows how to move through the emotional upheaval of job loss and return to the workforce with a sense of control and direction.

“The economic shakeout of 2000 has left many corporate refugees to fend for themselves,” says Nick Hall, founder of Startupfailures.com and president of the Silicon Valley Association of Software Entrepreneurs. Hall recommends the corporate refugee approach for those “feeling dazed and confused and not sure what to do next. … It has practical tools and insight to get you going in the right direction…your future.”

Given the likelihood of continuing upheaval in the marketplace, Luban–who has spent the last 25 years developing workshops and treatment programs for people facing life transitions–hopes displaced workers, or those in potentially precarious positions or industries, will embrace the “corporate refugee paradigm” as a means of managing job loss as well as building resilience for future change.

“I feel brutalized by a company I loved,” laments the former eToys employee, “and I am afraid to go back into the workforce. This is like a bad breakup with a guy you really like, and then you never want to date again. I guess this is how you build the calluses.”

My 20 year old son will soon need to buy a car but he has no credit. What’s the best way for him to establish credit? I don’t know of any stores that will let him pay off a purchase without first checking his credit. Are there still credit cards that will let him put some money on hold in order to back any purchases he might make? How do I find them?

–Margie

Margie’s son is about to take one of the big steps to adulthood – establishing credit. And it’s important that he get off to a good start. The record that he builds now will follow him throughout his life. And it will effect how much he pays when he borrows money.

A good first step is to open a checking or savings account. It’s an easy way to demonstrate that he’s able to handle money responsibly. Just making regular transactions without overdrawing the account will begin to build a good record.

The next step is to get a credit card. To qualify he’ll need to be 18 years old and have either a steady source of income or a savings account. It’s easiest to qualify for a department store or gasoline card.

If you’re a full-time student you won’t need to prove your income to qualify for a card with a low credit limit. Most card issuers are anxious to sign up college students. Even for major credit cards.

Ironically, it’s harder to get a first credit card after graduation. The card issuers figure that parents will bail out students but not grads.

Margie’s son shouldn’t apply for a bunch of cards. That will hurt his credit rating. It’s much better to get one card and pay it faithfully for a year. Then apply for a second card. That will demonstrate that he’s managing his credit responsibly.

First time cardholders will not get the lowest rates. But if he pays the entire balance each month it won’t make any difference. And paying bills on time is very important.

If Margie’s son has trouble getting a card, he’ll need to use the strategy that she mentioned and apply for a “secured card” first. Money is deposited with a bank which acts as security for your card. If you don’t pay the bill, your money will be taken from the bank account.

There’s enough competition now so that you can find a number of secured cards that don’t require an application fee. Rates run from about 10% to 20% and annual fees range between $18 and $45. Margie’s son can ask his bank or check out Bankrate Monitor to find a card issuer.

If you use a secured card properly it’s possible that you’ll get a better reception on a non-secured card after 12 to 18 months.

Margie’s son needs to manage his use of the cards. The best (and cheapest) plan is to pay the entire bill each month and not carry a balance. Unfortunately, that’s not what most first time cardholders do.

Experts say that monthly installment debt should not total more than 20% of your monthly take home pay. Even that level could be too high. For instance, that much money committed to installment debt could make it very hard to afford a house later.

Now we move on to the specific goal that Margie had – a car loan. It’s likely that there won’t be enough time for her son to build up a good credit history before he wants the car. He should apply for a loan at the bank or credit union where he keeps his checking or savings account. Hopefully his reputation there is good.

It’s also possible that he’ll be able to arrange credit through the dealer where he buys his car. Sometimes they’ll make loans trying to attract younger buyers for their brand of car. If he does go through the dealer he’ll probably pay a higher rate of interest.

Finally, if no one will give him a car loan, he can get a co-signer. Margie could agree to be responsible if he defaults on the loan. But that’s a step that should only be taken after careful thought. Remember, the banks are saying that he’s not a good credit risk. When you co-sign a loan, in effect you’re saying that you know more than the bank. And you’re willing to put your own money behind your beliefs. If anything happens she’d be responsible to make the payments.

Now that we’ve seen how Margie’s son can establish credit, let’s ask a different question. Is a car loan really the best way to go? Is it wise to borrow to buy a car?

Just to illustrate, let’s assume that Margie’s son borrows $10,000 to buy the car. He takes out a 4 year loan at the current rate of 8.8%. He’ll be paying $347.90 per month or a total of $11,947 in payments. In effect, he’s paid 20% more for the car than if he had paid cash.

And, he’s created a pattern that could last a lifetime. If he’s making car payments it will be hard to save up for his second car. So he’ll be borrowing again. And again with the third. It’s as if he’s agreed to pay 20% more for every car he buys as long as he lives.

Sure, he probably can’t afford to pay cash for the car he wants now. But by sacrificing with a cheaper, affordable car now, he could save himself tens of thousands of dollars over the years.

Whether you choose to drive across country or jet-set to another continent on your next family vacation, there are a number of things you can do to save money while your family stays happy. It is important to evaluate your travel options (mode of transport and accommodation) when you begin planning a family holiday because it is one of the easiest means to save money.

Package Deals – Plan Ahead and Seek Discounts

Combining components of travel and stay is one of the easiest means to save money on a family vacation. You can consider bidding for some great travel deals online but if you have not done it before, you could work with an agent to seek the best travel deals. The agent will sort travel deals and find the best prices on package tours for you. Such tours would also mean that you do not have to worry about stay, local transport and even meals (at times) when you are on a family holiday. In fact, you can customize it to your family requirements so everyone’s needs are met.

Pack Right to Cut Costs

Travelers can take advantage of packing lists online, which will help you find tips for packing for a particular destination. This will help you pack in the best manner so you travel light (avoid airline charges for excess luggage) and pack accordingly so you do not end up spending more unnecessary money at the destination. Packing with small children would mean packing more essentials so ensure that you have packed sufficiently for long car or plane rides.

Time Your Visit

It helps to avoid peak travel times if you want to save money on your family vacation. Spring break and the month of December are times to avoid because everything from travel options to accommodation is expensive in most places because of the huge demand. If you are flexible with your travel dates, you are more likely to find discounts; even the choice of mid-week tickets when compared to weekend tickets might help you save money.

Research Your Destination Online

You will be surprised to know about the number of free options at most travel destinations. While making a list of sightseeing priorities, you are bound to find free or inexpensive ways to travel around the city and even to visit museums and go on tours with no charge. These options are great for the frugal traveller.

Don’t Shop Excessively

Decide how worthwhile the buys are when you are on a family vacation. A number of things might catch your eye including souvenirs and you might want to shop for your entire family as well. But determine if these will be put to good use when you are back home. You could use the money you save on shopping on other things such as a day trip or local attractions, which you would have missed otherwise.

This may pop up a very significant question in a debtor’ mind: Is a debtor still obliged to pay off his debt if he turns mad? Well, you cannot conclude by an experiment. However, if you take on the mask of pretence, you may face disastrous legal consequences in future.

Actually, a debtor is always obliged to pay off his debts regardless of his psychological condition. Lenders, in order to get back their money, often take the invalid path. So better, you keep the cool of your mind and step ahead toward your debt free journey.

If there is a co-signer, he/ she will be solely responsible to pay off the debt in case the debtor goes mad. For this, anybody should consider twice before acting as a co-signer. In fact, only co-sign if the person is an immediate family member.

If a debtor turns mad who doesn’t have a friend or a relative to hold the situation, may face worst circumstances. If the debtor borrowed against his home and has many payments left, the lender would no doubt foreclose the property. However, if somebody manages the debtor’ debts on his/ her behalf, the property will take a sigh of relief. The person (who should obviously be a reliable one), may explain the debtor’ poor condition to the creditors and find out a humane way to solve the crisis.

If we sum up, a debtor has to pay off his debts under any psychological condition. As there are many debt relief procedures, the representative of the debtor may undertake any reliable way to solve the debt issues so that the debtor may retain his property. However, it is sad that the debtor may not regain his mental stability, which the debt problem had caused.

Though economy is tough enough and many people are arriving at the bank of insanity, a debtor should not lose his temperament and continue to make payments toward his debt. If possible, a debtor should politely discuss his financial condition with his creditors, and solve out an easier way to pay off his debts. It’s no doubt much better than to escape.

SUPPORTING LINKS
Transcript of Video
Note: There are slides in the video, as well as short video clips, that are not contained in the transcript.

DebtSmart® Loan Calculator
This powerful loan calculator can compute principal, interest rates, time remaining on loans, balances remaining on loans, monthly payments and more!

DebtSmart® Mortgage Comparison Calculator
FREE PDF calculator allows you to compare your current mortgage to other mortgage options! No need to install new software!