Beverly Hills, CA (PRWEB) December 27, 2009
Thousands of companies are stealing money right from people who need it the most! Illegitimate companies offer to set up debt consolidation assets and suggest credit counseling to people who are in debt. Many are stealing from ordinary people. For this reason a blog has been set up which is updated daily with tips and other up to the minute information and can be found at : http://www.sandboxarticles.com
One of the first debt advice which a legitimate loan counsellor will suggest is to try to manage the household income and assign chunks towards repaying debt. For example a good idea is to take around 35% of the household income and use it to repay loans.
Many try to pay the larger loans first, this is normally an error because the larger loans for example home or house loans normally have a smaller interest rate than their counterparts such as credit card debt and other unsecured loans such as appliances or vehicular loans, so debtors should start paying off the loans that have the most interest. This way payments are more effective and debtors avoid accumulation of more interest fees.
Others do the error of paying too much for their loans, some people even paid around 80% of their total income and in the process they fight with their spouses due to the fact that they do not have enough money for everyday chores. Credit counsellors would definitely not suggest to anyone to pay more than 40% of his income towards a loan. It would be rather crazy to pay more than this.
Credit counsellors can help someone who cannot cope with his debt.