Debt. It is a credit that conjures up images of credit cards, bank loans, hard loans that requires assets to back them up. It conjures up the American debt, from all those years of wars and spending. It is a negative word in America and there is good reason why. Debt can cripple a person or a family. Here are some ways to avoid it.
One of the principle causes of individual debt is the credit card. Credit cards can be used for general purposes, large purposes, emergencies and more. And while it’s generally a smart move to have a credit card in case of emergencies, people run into problems with the debt they wrack up.
Credit card debt is a significant issue. People spend and spend (meaning borrow and borrow) until their credit card is maxed out. The reason for this, or one of the reasons, is that people sometimes pay just the minimum payment required to keep the credit card line, while allowing a great deal of the debt to stay.
This is a habit, where paying the minimum balance and keeping the bulk of the debt can become serious. The debt, if this cycle continues, will grow and grow until the credit card is maxed out. This can lead to a serious amount of debt. And then the person will take on more debt by applying for a new credit card.
Some people have multiple credit cards that are maxed out, meaning the credit limit has been reached. Perhaps they have had a great deal of emergencies. It is also possible they’ve accumulated medical debt, which is the number one cause of bankruptcies in America. The debt grows until the person finds themselves in thousands of dollars in debt.
Sometimes, the debt can reach into the tens of thousands of dollars.
One way of reducing this debt is to consolidate all the debt onto one card. If there are three cards that have a debt of $3000 each, putting them on one card that has a debt of $0 but a balance of $10,000 can help simplify the process. There is one payment to be made each month and it’s on one card.
Another way of reducing this debt is to make more than the minimum payment on the card, while also covering the amount the interest rate wracks up. By this method, it is possible to slowly pay down the credit card. Although this may take months and sometimes years, this is a possibility for some Americans.
Another way to reduce this debt is to simply stop spending on the credit card and making payments on a monthly basis. This can reduce the amount of credit card debt over time and help a person to be able to regain better control of their financial life. These are all methods that have been said by other people that can make a difference if applied.
Another kind of debt is called the hard money loan. This kind of loan is different than a bank loan. A bank loan is essentially a line of debt that is paid off month by month with respect to a house or property. A bank loan does not have collateral if the loan is defaulted on. Generally, a bank loan will stop if payments are not met.
In those cases, a person will lose the property.
A hard loan requires collateral to support the loan. A hard money loan is backed up by property. The idea being that if a loan is defaulted on, the person will lose the property that they have used as collateral. These are high risk loans in that someone will lose the property if they default. This is different than other loans.
There are some terms worth noting. They are private lender, private lenders, private money, private money lenders, private money loans, lending, private lenders, private money, private money lender, private money lenders California, hard money loans, hard money San Diego, and more.
A private lender is an individual that is not part of any public company or body. This includes banks and other major lenders. A private lender may be an individual with lots of money or an individual as part of a company that has a lot of money.