The Truth about Debt Consolidation

Due the economic tight, they need money for consume or other things. Some people borrow money to unsecured loan such credit card because the approval process is easy and they will get money soon. They   do not have to guarantee your asset to unsecured loan; however, most unsecured loan charge high interest. They use credit card to buy anything and finally the bill bubble. They are difficult to settle the debt because they have no money. A telephone call often disturb them o pay the debt payment soon and it make you mad.
Some people choose debt consolidation in order to settle the debt. They think the debt consolidation will help to settle the debt. They will pay the debt with low payment each month so they can pay off the debt and they still have money to fulfill monthly expenses.
However, some finance experts doubt in debt consolidation. Only few people are success to settle the debt with consolidation. Debt consolidation does not work for most people though the debt consolidation sounds great. We can negotiate the interest that increases your debt.
I agree with Dave Ramsey’s argument that the debt consolidation makes money off of you. Who are people want to loss in their business? I do not think there are no people who want loss in its business. So the creditor does not want to loss too. They will find a way to return back their money with the interest.  It is better than the debtor will not pay their debt.
For example you have debt $30,000 that consist a two year loan $10,000 at 12% and a four-year loan at 9%. The monthly payment for $10,000 loan is $517 and $583for $20,000. You need to provide a least $1000 a month for your debt only. It must be hard to provide thousand dollars a year.
With debt consolidation scheme, you do not have to provide $1000. Perhaps you just pay $640 per month on 9% interest by negotiating to creditor and rolling into one. However it does not mean decrease your debt but you should pay more. The lower payment means you longer the loan. You will pay $46,080 to pay off the loan. Just pay “only” $ 40,392 if you pay $1000 monthly. The difference is $5,688 that you should pay if you decide to use debt consolidation.
Do you want to pay more? Some people think they can settle the debt if the creditor ease them. To me I will settle the debt soon. I contact the creditor to pay off the debt soon. I will sell my asset such as stock mutual fund or precious metal and tight budget to reduce the monthly asset. I will not go eating out unless I pay off the debt. I prefer to pay the debt than eating out. 
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How to create strict budget

As the economic condition is difficult, some household try to reduce their expense so the income can balance the increases spending. They will bankrupt if they do not change their spending behavior. The key of the strict budgeting is that it eliminate all unnecessary spending but some household may difficult to definite the unnecessary things. They use to buy anything. In this article, I will explain how to create strict budget:
1. Recognize what you have spending last month. It could be a cornerstone of your budget. Have you record all of your spending. It will be better if we check our last three month spending as the cornerstone of our budget. We can describe the appropriate budget for us.
2. Decrease unnecessary spending such as holiday, leisure, goes to cinema, and others. Some people buy brand stuff that is very expense whereas some generic brand has similar quality. Do not splurge your money to those things. You can save the money into cash box or investing.
3. Not use credit card. Some people are tempted with credit card simplicity. They think that credit card can lower the spending. The credit card charge interest rate so it is impossible to lower your spending with credit card.
4. Limited the electrical use. Turn off the TV when there is no people watch it. Some family limit the TV hours so the children can study.
Use some energy saving electric such as TL lamp, save energy laptop, and else. You can use solar heater, for your water. It does need electric.
5. Some people can stick using car to trim down the spending. Use car when you need to go to some place where public transportation cannot reach it. If you want go to office, you can use public transportation such as train, tram, bus, and others.
6. Use some discount coupon. Some website offers free product for promotion. We may get a cup of ice cream, a bottle of ketchup, a bottle of milk, and so on. Some coupon also offers discount or rebates for certain product.
7. The spending should be lower than the income or revenue. If you find that the spending is higher than income, you have to revise your budget again. Trim down again some expenses until the budget balance. If you are difficult to cut the spending, you need to increase your revenue.

Some cheap sport that makes you health

Who want to be a sick millionaire? I think only few people. In my opinion, the health is an important asset beside cash, gold, stock, car, and else. The sick man cannot enjoy the money. They must spend most time at bed or hospital. The doctor forbids the sick to eat certain food and the sick must reduce sugar, salt, or fat. I think the rich man must be suffered.
A rich man supposedly keeps their health. Sport is a way to keep the body health. It can lift the body immunity and reduces heart attack risk.

Unfortunately sport is very expensive. Some gym charge expensive fee for the member. If we have little money, we can still do sport. There is some sport that is cheap:

1. Running
You can run around your neighborhood. It is free. Some people can run for five kilometers a day. If you are health, you can run for long distance.
There are some benefits in running. It can reduce the fat or cholesterol in your body.

2. Walking
You can walk with your pets at your environment. It does not good for you but also your pets. The pets will be happy to walk with you. Walking is good for fat man and it does not hurt the knee.

3. Biking
Buy a bike for you. A bike is not expensive and the maintenance is not expensive. You can buy used bike if you have little money. Biking is good for heart.
NB: You have better to consult with the doctor about what kind sport that is suitable for you. Doctor may forbid running for the fat man due it could harm to the knee.

4. Sand sack
Fill the sack with sand and hang at a garage or warehouse. You can hit or kick. Hit hundred times and you will be tired. This tool is used by Karate or boxer.

5. Stick
Find used stick at your warehouse. You can move your hand with stick. You can use rattan or bamboo stick that is cheap. I use to exercise with the stick twice a week.

6. Swimming
In village, we can swim at Lake or river free. Be careful with Crocodile or Piranha. If you live near beach, you can swim every day. I think some pool is cheap. We can swim once or twice a week. Swimming can train our breath and it is good for heart and asthma. The air above the water usually cleans so the people are use to breath with fresh air.

Some Cheap Vacation

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