Your Questions About Lower Debt

John asks…

Where can a consumer find a letter to mail to a debtor to initate a negotiation for a lower debt settlement ?

Such as a letter to settle with a debtor for a lower amount to get out of debt thanks
Couldn’t find one on dogpile.

richmama answers:

I don’t know about templates, but you can find tons of free advice and info on on every aspect of debt help.

Ruth asks…

Badly in debt, need to know what option will damage credit the least, but lower debt the most?

My friend is badly in debt, and she is looking into credit counceling, consolidating, etc… She wants to know what option will harm her credit the least, or for the least amount of time, but lower/ negotiate her debt so she pays teh samllest percentage of her debt as possible. Please help, as she is a mom of 2, with a deadbeat dad that ran out on them.

richmama answers:

You have 3 choices: 1- BK 2- counseling/renegotiating 3- consolidate/bite the bullet and pay.

1- BK – devastating. Not just to credit, but in principle as well. You can get your credit back in 2 years if you plan well.

2- counseling – some bad, some good. Your credit will take a hit, and many lenders look at credit renegotiation (what the “counselors” do) as a “BK Lite” Since your creditor is taking less than a full payoff (a loss) they don’t like it very much.

3- consolidate – the best options are usually the most expensive. You want pay your bills off if at all possible. Try to make this work first before you move on the the other options.

Good luck!

Betty asks…

First time Home Buyer- which is better a lower debt ratio or bigger down payment?

When buying your first home, with a great credit score, which is better- a lower debt to income ratio (which is already below 38%) or a larger down payment. Not sure if I should keep overpaying bills or start saving more!

richmama answers:

Keep overpaying, but maybe not as much. Save the rest. The bigger your downpayment is, the less you have to finance. The less you have to finance, the less interest you will have to pay.

Nancy asks…

What is the best way to lower credit card debt?

I owe about $1,000 something on my credit card. Whenever, I pay it off, it always seems to stay at the same balance. What do you think I should do to help me lower that debt? Thank you! 🙂

richmama answers:

Well you sound like you’re only paying the minimum. For starters, if you’ve always paid on time, try calling the credit card company and see if you can lower the interest rate. That will help you pay if off faster. Then try your best to pay MORe than the minimum payment. $1,000 isn’t really that bad compared to some people, so this won’t be too hard I promise. 🙂

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Smooth as Butter Morning Routines


A Smooth Monring Begins with the Night Before

Like every mom you probably feel that there is never enough in the morning.  No matter how early you seem to stat, it always seems like the kids are are running behind and you’re  left a frazzled and stresses out mom before the day has even begun.  But it doesn’t have to be that way.  You can use these tips to make your mornings run as smoothly as the Macy’s Thanksgiving Day Parade.  You’ll be feel happier and more in control and best yet, your kids won’t start the day with a picture of an angry you.

The key to your stress free morning routine – Do as much as you can the night before.  This will reduce the amount of time it takes to get everyone ready and there will be far less stress.

– Shower or Bathe – you may rely on your morning shower to feel fresh and revived, but fortunately your children don’t need do.  Have all the kids take their showers or baths the night before.

– Set Out Clothes – Have your children, with or without your help, set out their clothes for the next day the night before. This was you can ensure that you have all the matching pieces and that everything is ironed and in good shape.

– Pack their bag – Look through your child’s backpack when they bring it home each day.  Go over any homework assignments that need to be done, and make sure that completed homework, permission slips and forms make it back into the bag the night before. Then have your child place her backpack in the same place, near the door, so she’s ready to grab it and go in the – morning.

-Keep a Family Calendar – It’s very helpful to have a centralized family calendar that everyone can look at and put their important events on.  Check the calendar the night before and discuss what everyone has going on and the plans for getting them there.  This way your kids will be prepared and you’ll have time to make any extra carpooling arrangements.

– Make Lunches – Make as many components of lunch the night before as you can.  You can even keep lunch bags, packed, in the refrigerator for the whole night to make the morning preparations run more smoothly.

– Set the Breakfast Table – Put out all the breakfast dishes and items the night before.  You can put out bowls, spoons, glasses and plates – even the boxes of cereal, on the table.

By planning ahead and setting up as much as possible the night before you can have a well oiled machine of a routine in the morning.  Just imagine what you could do with all that extra time!