It’s tempting to think that if you avoid facing your debt head-on, it will somehow magically disappear. But the truth is that inaction just gives debt room to grow as interest accumulates. Denial may buy you time, but it’s borrowed time; everyone has to face the music sooner or later.

But what’s a consumer to do when the amount they owe is simply more than they can pay? That’s a lot of zeroes, you’re thinking as you look at how much you owe. Before doing something drastic like selling everything you own or filing for bankruptcy, consider negotiation.

Wait—you can negotiate with your creditors? Short answer: Yes. And sometimes you can reach a mutual agreement that lowers the amount of debt you have to pay. Keep reading to learn more.

Why Might Creditors Negotiate?

Creditors may be willing to negotiate when there’s a risk they’ll receive nothing. When consumers file for bankruptcy, many of their unsecured debts are forgiven. This means creditors will have to write off the debt as a loss for their bottom line. So, if negotiation means they’ll at least get partial payment, they may view it as more desirable than the alternative.

Note that creditors are more likely to settle for less if you can transfer the funds immediately, or at least within a window like 30 days. It gives you bargaining power to have a sum of money saved up before reaching out to begin negotiations. This is the ethos behind enrolling in debt settlement programs, which require consumers to make monthly deposits in an account until there’s enough to “play ball.”

Debt Negotiation: A Well-Known Secret

Before Andrew Housser co-founded the Freedom Financial Network, which includes the debt settlement organization Freedom Debt Relief, he was unaware that consumers could negotiate with creditors. He got the inspiration to start a company that negotiates on behalf of clients based on a friend’s story. This friend owed $30,000 in delinquent debt, and debt collectors were hounding him for repayment. The last straw was receiving a threatening message from a collector. This event prompted the friend to call back and yell at the collector. Yelling transitioned into negotiating. The friend was able to talk down his debt from $30,000 to $9,000.

As Housser writes, “I had no idea that creditors were open to negotiating their debts and would be willing to settle for a fraction of what was owed. And if I wasn’t aware of it, I figured the average consumer was also in the dark.”

This example just goes to show that it often feels like a “well-known secret” that people may be able to reach an agreement with creditors to pay back part of what’s owed. Instead of treating the total balance of your debt like an inflexible sum you must pay in full—which leads to all-or-nothing thinking—consider it a starting point. After all, your creditor may just be willing to lower the amount owed if you can pay the remaining balance in a timely manner.

Tips for Successfully Settling with Creditors

There are a few ways to approach debt settlement. As mentioned above, you can enroll in a program. This will involve making monthly contributions to a dedicated account until you have enough to begin negotiations. Then a team of negotiators will talk to creditors on your behalf, attempting to settle for less. As with any debt elimination strategy, there are pros and cons. Just make sure the program you choose has a track record of helping clients.

You may choose to try do-it-yourself debt negotiation. Here are a few tips to keep in mind from The Balance:

• Know your rights under the Fair Debt Collection Practices Act.

• Start by offering a low percentage of your total balance. Then work your way upward.

• Stay positive, professional and confident throughout the conversation.

• Get the settlement agreement in writing.

Yes, you can negotiate with creditors. Get a strategy before you pick up the phone or enroll in a program to increase the chances your efforts will pay off.

As the new tax year just started on April 6^th, a new Individual Savings Account allowance is available for most UK residents. For the 2019/2020 tax year, the ISA allowance remains the same at £20,000. That is a lot of money that you are allowed to grow tax free.

And best of all, you can allocate some of your money to buying stocks and shares, keep some in cash, and even opt for alternative finance ISAs which cover a broad spectrum of financial vehicles such as peer to peer lending or a gold and precious metals mining investment.

Let’s have a quick look at the numbers to see what you can expect for your savings over the next few years in term of growth if you allow them to compound tax free.

With the Individual Savings Account, all capital gains are exempt from income tax for as long as you shall leave the money on the account. You can also transfer it to a better paying ISA, but the new provider will have to do that for you, because if you withdraw the money, you lose your allowance.

To keep it simple, let’s assume you max out your ISA allowance for this tax year, and invest your £20,000 in the markets or alternative finance, for an average rate of return of 10% per annum over the next 30 years.

Without adding one cent to your nest egg, at the end of 30 years, you will have £396,747!!! That is over £376,000 in interest you do not have to pay taxes on. If you are in the higher 40% tax bracket, the tax saving amounts to over £150,000!

If you had left the money on a normal market account, the 10% interest rate would have ended up being 6% after 40% taxes are taken off, and your balance would only be £120,451.

That is how crucial tax efficiency is.

Another thing to note is with only £20,000, which just is maxing out your ISA one year and forgetting about it, you can get a pretty sizeable nest egg in retirement.

So this is something to think about if you are just starting your career, like many readers here, and don’t have too many financial obligations yet, such as a big mortgage and family to support. You have more disposable income today than you will likely have in the near future, so make the most of it!

Yes, £20,000 is a lot of money. Maybe half of more of your income. But look at it as a reward for your future self. How awesome would it be to max out your ISA for three years, and retire a millionaire?

You are not depriving yourself, you are gifting your future self the gift of financial stability. And this is priceless.

Saving that much money will be a stretch, but something is better than nothing. And being mindful of where your money goes, so you spend, save and invest according to your values is very important.

If you spend mindlessly on dinners and nights out with your friends, come age 45, you will have a much harder time trying to save for a retirement that is only 15 years away, while sending your kids to a good school and putting a roof over their head.

So start investing today, and become financially secure so you can enjoy life to the fullest.

(Image Courtesy of Pixabay)

Are you looking to start your own new business? There are surely a lot of benefits when getting a loan. It is one of the best ways to get your business running. It’s with the help of a loan that you can fill up the gap and be capable of starting your business. However, what if taking on a few simple lifestyle habits could help to greatly increase your chances of starting a successful business? Believe it or not, it’s true. Here are a few tips that can help you find your way to tremendous success.

Read About Money

Everyone wants to have more money but getting your hands on it can prove to be difficult. A few things that will help you get your hands-on money are savings tips, earnings tips, Interest rates, and education, all which can be found in a daily reading session. If you plan to loan Interest rates are an integral part of loans and the best thing you can do about it is to choose the company that offers the lowest ones. A good loan company would offer flexibility and enable you to save money if you are to pay the full amount soon. Many find a favorite business finance and investing blog. This route allows readers to save money on purchasing books while getting tips and tricks for saving and making money. Moreover, reading every day keeps your mind engaged and active. In doing so, you’ll be better equipped to think on your feet and make the decisions that will lead to your improved level of success and financial stability.

Company’s Financial Situation

If you’re exploring business loans companies, it’s important that you assess and check the company’s current financial situation. Is the company doing well? Does the company have a good reputation? How many years have been the company running? It’s in asking these questions that you’re able to know if you’re in safe hands. The last thing you don’t want to experience is tarnishing your credit record. We also recommend choosing a company that acts fast, because at the end of the day, what we want here is to get the money and use it to fund a new business.

Turnaround Time

One of the reasons why people prefer to go for a business loans company over a bank loan or any the other type of loans, is that it’s fairly easy to apply for one. Business loans companies usually don’t need a lot of documentations for you to qualify as a borrower. A simple proof of address, a source of income, and an ID are usually what a business loan company needs. Therefore, it can take you as fast as a day to process the acquisition of money from the company.

Think About the Successful You

The impact that your mind has on your actions is incredible and training your mind to take action to make you more successful is easier to do than possible. Every morning and every night take 10 to 15 minutes to think about the successful you that you would like to be.

Think about the home that you would live in, the car that you would drive, and the perks that would come along with being the successful you that you plan to be. Moreover, consider how the successful you would overcome some of the challenges that you currently face and work to apply those thoughts in your day-to-day life.

Wake Up Earlier

Several highly successful individuals agree that the morning is one of the most important parts of the day. In fact, many entrepreneurs make it a point to tell hopefuls that they wake up early to read, walk, or do something else that gets their minds in working mode.

Getting in the routine of waking up an hour or two earlier than you normally do to get your mind fully awake before you start to work is a great way to improve your productivity. Doing so will make it so that you’re more alert during the early hours of work and will likely help you to become more productive throughout your day.

Clearly Define Your Goals

Just about everyone has a goal of becoming more successful. However, these goals are incredibly vague, and psychology experts will tell you that having a goal that is too vague is about the same as not having a goal at all.

With that said, it’s a good idea to break down your goals into multiple parts. What will it take for you to reach the level of success that you would like to reach? What milestones must take place on your path to achieving these vague goals. Write these milestones down and reach for just one at a time, focusing all that you have in successfully achieving your mini-goals that will lead to you ultimately achieving your lifelong goals.

Adopt A Positive Mindset

It is so easy to adopt a negative mindset in today’s day in age. As the income gap continues to grow, housing costs continue to rise, and news reports continue to seemingly become grimmer, it can be hard to adopt a consistently positive mindset.

However, various studies show that those who display optimistic characteristics are more likely to achieve a high level of success. So, making it a point to find a silver lining in every dark cloud that comes your way may help to propel you to the level of success that you desire!

Final Thoughts

At the end of the day, no matter your current level of success, chances are that you’re reaching for more. It’s the human condition. Nonetheless, the good news is that the goal of becoming a better, more successful person is a good one to have, and it’s not out of reach.

Making a few lifestyle changes can help to not only bring you a higher level of success, but to improve your quality of life, your level of stress and therefore your health, and much more. While it won’t be easy, incorporating the five habits above into your daily lifestyle will likely help you to become the successful future you that you’d like to be!

There is a big problem with many high-impact marketing solutions out there: you need to be on the Fortune 500 (or at least, the Inc. 5000) to afford them.

For example, a 30-second TV spot on the Super Bowl broadcast comes with a staggering $5.25 million price tag. Even a billboard ad can range from $5,000 a month in smaller markets, to more than $15,000 a month in cities like Boston, Chicago and New York. Sure, small businesses need to spend money to make money. But shelling out thousands — let alone millions — of dollars to generate visibility and brand awareness is not just an obstacle. It is a non-starter.

The good news, however, is there are some proven high-impact marketing solutions for frugal business owners who need to ensure that every dollar works as hard as they do. Here are some of the best — and most affordable — options and opportunities:

1. Mobile Advertising

Mobile advertising such as vehicle wraps offer the lowest cost per thousand impression (CPM) of any form of indoor or outdoor advertising. For a fraction of the cost of a conventional ad campaign, your small business can generate massive brand awareness and look like a large enterprise.

2. Referral Partnerships with Local Businesses

There is strength in numbers, which means you can boost your marketing muscle — but on a shoestring budget — by entering into referral partnerships with local businesses. For example, if you sell business signage like LED message centers, banners, office lobby signs, trade show displays and so on, then you can partner with a local property management firm. In exchange for recommending your solutions to their tenants, you can in turn offer their tenants special discounts. Everyone wins.

3. Pay-Per-Click Advertising

Pay-Per-Click (PPC) advertising like Google AdWords can be a highly effective way to get found on search engines. Just keep in mind that you need to understand how PPC works in order to reap the rewards. Otherwise, you could end up spending hundreds, or even thousand of dollars a day on “clicks” that don’t translate into customers.

4. Search Engine Optimization

Another extremely effective way to connect with prospective customers is through search engine optimization (SEO), which is an approach that utilizes on-site and off-site content to boost your “findability” for important keywords. As with PPC, make sure you know what you’re doing here or else your journey on the SEO landscape could be regrettable instead of rewarding. It’s worth working with a reputable SEO firm who will handle the details — and there are many to handle!

The Bottom Line

If you’re a disciplined spender and saver in your personal life, then it’s wise to translate this trait into your business life — not by denying your business what it needs to survive, but by ensuring that you make every dollar work as hard as you do. Applying any or all of the above marketing solutions will help make that happen, and ideally put your business on a long-term path to sustained success!