Making Extra Cash from Debt Settlement Work for You

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Sean Horan has 5 Published Articles

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Making Extra Cash from Debt Settlement Work for You

Posted On : Feb-22-2010 | seen (460) times | Article Word Count : 697 |

When one comes to the upsetting realization that his debt is greater than what his income can support, debt settlement can provide a way out. It can also provide that person with debt payments less than his monthly income, thereby resulting in extra cash flow. In order to avoid the same fate, this person would be wise to understand the options available for saving and growing that money for use in times of financial distress, unforeseen expenses, or educational and professional advancement.

Savings accounts, which can include interest-bearing checking accounts, can be great avenues for extra cash that you want to have quick access to in case of an emergency, or for money that you want to use as additional income and will thereby need consistent access to. There are many ways to evaluate different savings accounts - interest rates earned, methods of accessing money, services provided with the account, and, unfortunately, one must also consider the potential for penalties.

Interest rates, although never hugely substantial on savings accounts, can vary a good deal from one account to another. Some accounts give higher rates to those who intend to carry larger balances, or you may find online accounts that have higher interest rates than the typical account. However, accounts like this may lack the access options of lower interest accounts because they may mandate that you maintain a certain balance or you will face one of those dreaded penalties. Or, in the case of online accounts, you might need to transfer cash to another account before you can turn it into hard cash.

Checking accounts typically give the greatest number of methods of access, such as ATM/Debit cards and checks, in addition to general deposit, withdrawal, and transfer options.For those less concerned with accessing the money, but still concerned with conserving the amounts (avoiding as much risk as possible), there are a number of low risk investment options that can earn more interest than the average savings account, which means earning more quickly.

Through banking institutions, one can purchase certificates of deposit (CDs), which are investments of varying lengths of time. They maintain very low risk because they are federally insured up to $250,000, but unlike savings accounts, one will face a penalty for early withdrawal of the funds. Similarly, government bonds and money market securities can provide a great deal of security for your cash with interest rates slightly higher than a savings account.

Like bonds, money market securities are basically IOUs. They can be issued by governments, financial institutions and large corporations, but differ slightly from bonds because of the very short life span - typically one year to maturity. For manageable risk over a longer period of time, many people turn to IRAs. This is an excellent way to turn that extra cash into possible early retirement. It is wise to consult an investment specialist to determine the best IRA plan, because, unbeknownst to some individuals, IRA layouts can differ greatly. Investing in an IRA, however, can also help at income tax time because contributions to IRAs are typically deductible up to a certain amount.

If you would like to grow your money more quickly, there are higher interest investments, such as corporate bonds, stocks, and options.However, it is always highly recommended that any individual not educated in investment alternatives should seek the counsel of an expert before buying into such high risk vehicles, especially stocks and options, which can carry very high risk.

There is never enough of it, but when extra money does present itself in life, it is a happy occasion and one that should call for intelligent decision-making. While it can be a great deal of fun to blow excess money on material objects, if handled correctly that extra cash can become a lifeline in a time of hardship, a form of payment for future endeavors, or the early retirement that one dreams of. Understanding the pros and cons related to different types of savings and investment channels can lead to more intelligent financial decision-making in those instances – which, while rare now, may become commonplace in the future with proper planning.

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<h1>Making Extra Cash from Debt Settlement Work for You</h1> Author: <a href='http://www.articleseen.com/profile_Sean Horan.aspx'>Sean Horan</a> When one comes to the upsetting realization that his debt is greater than what his income can support, debt settlement can provide a way out. It can also provide that person with debt payments less than his monthly income, thereby resulting in extra cash flow. In order to avoid the same fate, this person would be wise to understand the options available for saving and growing that money for use in times of financial distress, unforeseen expenses, or educational and professional advancement.

Savings accounts, which can include interest-bearing checking accounts, can be great avenues for extra cash that you want to have quick access to in case of an emergency, or for money that you want to use as additional income and will thereby need consistent access to. There are many ways to evaluate different savings accounts - interest rates earned, methods of accessing money, services provided with the account, and, unfortunately, one must also consider the potential for penalties.

Interest rates, although never hugely substantial on savings accounts, can vary a good deal from one account to another. Some accounts give higher rates to those who intend to carry larger balances, or you may find online accounts that have higher interest rates than the typical account. However, accounts like this may lack the access options of lower interest accounts because they may mandate that you maintain a certain balance or you will face one of those dreaded penalties. Or, in the case of online accounts, you might need to transfer cash to another account before you can turn it into hard cash.

Checking accounts typically give the greatest number of methods of access, such as ATM/Debit cards and checks, in addition to general deposit, withdrawal, and transfer options.For those less concerned with accessing the money, but still concerned with conserving the amounts (avoiding as much risk as possible), there are a number of low risk investment options that can earn more interest than the average savings account, which means earning more quickly.

Through banking institutions, one can purchase certificates of deposit (CDs), which are investments of varying lengths of time. They maintain very low risk because they are federally insured up to $250,000, but unlike savings accounts, one will face a penalty for early withdrawal of the funds. Similarly, government bonds and money market securities can provide a great deal of security for your cash with interest rates slightly higher than a savings account.

Like bonds, money market securities are basically IOUs. They can be issued by governments, financial institutions and large corporations, but differ slightly from bonds because of the very short life span - typically one year to maturity. For manageable risk over a longer period of time, many people turn to IRAs. This is an excellent way to turn that extra cash into possible early retirement. It is wise to consult an investment specialist to determine the best IRA plan, because, unbeknownst to some individuals, IRA layouts can differ greatly. Investing in an IRA, however, can also help at income tax time because contributions to IRAs are typically deductible up to a certain amount.

If you would like to grow your money more quickly, there are higher interest investments, such as corporate bonds, stocks, and options.However, it is always highly recommended that any individual not educated in investment alternatives should seek the counsel of an expert before buying into such high risk vehicles, especially stocks and options, which can carry very high risk.

There is never enough of it, but when extra money does present itself in life, it is a happy occasion and one that should call for intelligent decision-making. While it can be a great deal of fun to blow excess money on material objects, if handled correctly that extra cash can become a lifeline in a time of hardship, a form of payment for future endeavors, or the early retirement that one dreams of. Understanding the pros and cons related to different types of savings and investment channels can lead to more intelligent financial decision-making in those instances – which, while rare now, may become commonplace in the future with proper planning.About the Author: Learn about <a rel="nofollow" href="http://www.impactdebtsettlement.com/oursolution.php">debt settlement</a>, debt consolidation, debt relief, and more at <a rel="nofollow" href="http://www.impactdebtsettlement.com/">Impact Debt Settlement</a>. Article Source: <a href='http://www.articleseen.com/Article_Making-Extra-Cash-from-Debt-Settlement-Work-for-You_11554.aspx'> http://www.articleseen.com/Article_Making Extra Cash from Debt Settlement Work for You_11554.aspx</a>

Article Source : http://www.articleseen.com/Article_Making Extra Cash from Debt Settlement Work for You_11554.aspx

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Learn about debt settlement, debt consolidation, debt relief, and more at Impact Debt Settlement.

Keywords : debt settlement, Impact Debt Settlement, certificates of deposit, interest rates ,

Category : Finance : Finance

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