Frank Yan of Sacramento on It's Not Yours

Frank Yan of Sacramento encountered many people in his Sacramento area that have found themselves in mountains of There are a lot of things to be unhappy about when you’re in debt. Although material things shouldn’t matter more than your happiness, when you’re in debt, they become a burden. Nothing that you have is actually yours. Everything belongs to someone else or the financial institutions. It’s like someone or something is hovering everything over your head. You know that at any moment, everything you have can be taken away from you.


This can be a scary thought, knowing that your house you lay your head in and the car you drive around isn’t yours is not something that people like to think about. Nevertheless, not thinking about it at all will only cause you to fall further into debt. The only thing that anyone can do is to take action. Not knowing exactly how to get yourself out of debt poses a problem.


Frank says that being in debt can create huge sense of uncomforted dread. The power of money has over people around the world is unreal. Some people would say that it is imagined, but once those very same people wake up and one day realize that they have no home to live in and no car to drive, reality begins to seep in. What really makes matters worse is when people continue to live life pretending like they don’t own tens of thousands of dollars. Before you can live the life the way you want, you must get out of debt completely. There are many things you can do to minimize debt refraining from excess spending, and paying all your bills on time. Consider limiting out any credit cards that you have that you don’t use.


Although money isn’t everything, it definitely has a lot of control over the world we live in. Frank Yan understands this and puts everything into prospective, as Frank once was heavily in debt when he began to work at Sacramento International while attending Sacramento State at the same time.


If you begin to get out of debt, it is important for you to must know how to spend your money more wisely. Having a good and effective system to follow helps a lot when you don’t know what you’re doing. Knowing the system you are following is one that will work gives you the confidence you need to carry out your plans. And knowing is half the battle. Think before spending and ask yourself if the things you want are the things you really need.

Frank Yan of Sacramento on His Cheat Sheet for Debt Relief Options

Frank Yan of Sacramento posts a related article: It's Not Yours

If you have a significant amount of credit card or unsecured debt Sacramento resident Frank Yan says it's often hard to get clear, accurate information about your options. Consumers will find that there isn't a "perfect option", but there will definitely be a "best option" for debt relief. It's important that you take the time to understand the benefits and risks of any debt relief plan before committing.

Here is a summary that Frank Yan put together of available debt relief programs based on $30,000 of credit card debt:

1.Minimum Payments.
The banks prefer you pay only minimum payments. Why? You make them incredibly rich by doing so. This may be the single most harmful financial mistake you can make.
Pros: None
Cons: You'll end up paying 400-1,000 cents on the dollar for your purchases over 20-30 years.
BE CAREFUL: Money spent towards servicing debt for 20-30 years is MUCH better spent building savings, paying down a mortgage, or funding investments and retirement - ask any financial planer.

Success Rate: 0% (even paying your credit cards off with minimum payments isn't a success)
Approx. Payoff: Monthly payment of $480: 24 years (288 months). $139,461.

2. Accelerate Payoff with extra principal.
You can pay extra money towards principal every month to pay down your creditors faster.
Pros: Will reduce your total payoff and the time it takes to get out of debt.
Cons: Not many people have extra money these days. You also can't control what the creditors do with your interest rates or if they apply the money correctly to principal.
BE CAREFUL: This will take the discipline of paying extra every month as long as it takes, which is hard to do. Think of it this way: we all know we're supposed to go to the gym and work out more, and may even start off good, but do we keep going every month? Knowing what's good for you and doing it are two different things.

Success Rate: 7%
Approx. Payoff: Monthly Payment of $680: 9 years (108 months). $63,094.

3. Payment Plan.
If you are having financial trouble or miss payments you may be able to negotiate a payment plan with your creditors for 100 cents on the dollar.
Pros: Payoff for less than minimum payments.
Cons: You won't be able to use your card anymore. Negative impact to credit score. You will have to negotiate this with the bank and they may not approve it.
BE CAREFUL: If you miss even one payment on this plan all of your back interest and late fees may be added in with interest rates as high as 30%

Success Rate: 29%
Approx Payoff: Monthly Payment of $480: 5.5 years (66 months). $30,000.

4. Consumer Credit Counseling Services.
CCCS is a 3rd-party company putting you in a program to pay off your creditors.
Pros: Make only one payment monthly. Don't receive collection calls.
Cons: Huge fees - sometimes as high as 20%. Another company controls your payments. VERY damaging to your credit score.
BE CAREFUL: There is no huge financial benefit to CCCS that cannot be achieved more efficiently through a repayment plan or debt settlement.

Success Rate: 21%
Approx. Payoff: Monthly Payment of $700: 5-7 years (60-84 months). $51,300.

5. Debt Settlement.
Debt settlement is a legal negotiation where your creditors will take less than what is owed, usually around 30-50%.
Pros: Debt free in18-30 months for the same monthly payment. Most efficient way to pay off your creditors. Voluntary negotiation for your creditors. Recapture monthly payment that can be used for savings, investments, retirement.
Cons: Risk of creditor lawsuits. Settlement negotiations may be higher or lower and can not be guaranteed. Must miss payments resulting in temporary damage to credit score.
BE CAREFUL: Trying it yourself is seldom successful and could land you in court if you are sued. Do not hire a debt settlement company because they charge high fees and set you up to fail. Only hire an attorney who specializes in debt settlement and keep your plan within 2 years or less for best success.

Success Rate: 20-40% if attempted by consumer, 75-99%* if done by qualified attorney
Approx. Payoff:Monthly payment of $480: 1 -2 years (12 to 24 months). $10,000 - $14,000

6. Bankruptcy.
Bankruptcy offers legal protection from your creditors.
Pros: BK gives a fresh start for those who are financially destitute or overwhelmed with debt.
Cons: Complete default for your creditors. WORST thing for your creditors. Hard to get new loans. Can only file once every 6 years.
BE CAREFUL: Chapter 7 bankruptcy wipes out your debt. A Chapter 13 is a repayment plan and may be better accomplished with a debt settlement.

Success Rate: 100% if you qualify
Approx. Payoff:Costs for bankruptcy range from $2,000 - $3,000.

Frank Yan suggest that you contact your local Sacramento credit specialist for more information or a free report: Debt relief options for today's homeowner or consumer

Frank Yan of Sacramento on Spending Less Than You Earn

Frank Yan mentions that one of the most important factors of life and principle to becoming wealthy is to spend less money than you earn. This may sound easy, but in practice it can be very hard to do. Frank Yan has experienced this article and will explain what to look at and the challenges to spending less than you earn and offers some tips to overcome these.

First Frank Yan wants to look at those who may spend more money than they earn. It stands to reason that if someone is spending more money than what they earn, they are either being given the money or are borrowing it, such as credit. In this day and age of worldwide economic growth and prosperity it has never been easier than before to borrow money. Temptation to borrow is everywhere, whether it is for a new TV, a new car or a new house. In Sacramento personal debt levels are at record highs. With foreclosures at an all-time high, delinquent State deficit, and the average Joe shopping for a high priced vehicle at the Sacramento Auto Malls. Frank Yan has read that the US Federal Reserve has calculated that more than 45% of US families spend more than they earn. Not good…


The problem with our personal debts is that it can become a bad trap. Bad debt for example and how you can be trapped by this bad debt can be seen with probably its most and popular common form – Credit Cards. Ideally, people should ensure to pay off their balance in full by the end of the interest free period to avoid paying these high interest rates set on these credit cards. It’s quite common and sad that people use their entire credit limit and make only the minimum payment required as a lower payment is an attractive number so people can assume to live a more comfortable life without any financial stress. This minimum payment is the worst and is usually just enough to cover the interest charges only. Combined with a high interest rate this makes credit cards a very expensive form of borrowing.


There are also people who spend equals to what that they earn. If someone is spending everything they earn, it is obvious they are not saving anything or investing any of their earnings. This bad habit will make it very hard, if not impossible, for them to become wealthy in the future. It also means that they will more than likely need to borrow more money in the down the road to fund larger purchases. And so… The debt financial trap begins…


Develop Your Financial Discipline and Intelligence
Let’s return to Frank’s earlier example of credit card disaster. First question would be do you really need one? The emergency of Mastercard/ Visa debit cards and including Paypal has eliminated some of the benefits that credit cards traditional have Example: The ability to make purchases over the internet or telephone. If you do decide you still want a card, you will often be tempted with a higher credit limit, higher than you would have expected. Remove the temptation. By reducing the limit to one where you wouldn’t be scared if the card reaches its full limit. As mentioned earlier, ensure you pay off your balance in full each month to avoid paying these high interest percentages and building up a large amount of debt.


Reduce Your Spending Consumption
First step here is to identify and to eliminate conspicuous consumption. What Frank means is the buying of things you don’t need or want. Second thought is, distinguish your wants from needs. As you begin to identify things as wants, you will reassess whether or not you really want to spend your money on that purchase. Last thing is, set some short to long term financial goals. Use motivation to control your immediate consumption of spending. Example, which you want to go for a well-deserved away from Sacramento vacation across seas in your short term goal. You will find it far much easier to resist purchasing that new item you saw if you can associate this with the goal of an overseas get a way.


Bringing These Two Solutions Together
The best way to bring these two solutions together is financial discipline and controlled consumption. Start to budget and live by it. A budget is simply a plan that allocates your future income towards expenses, savings and debt repayment.


If you don’t like the idea of creating a budget, a simpler way to ensure you spend less money than you earn is to Pay Yourself First. Set up an automatic system to Pay Yourself First. Avoid paying for purchases via your credit you can relax knowing that you are spending less money than you earn.


If you are struggling with debt and/ or excessive consumption of spending, be clear that spending less money than you earn will involve some short term sacrifices and lifestyle changes. These changes will be way more positive as you begin to take control of your finances sensibly and putting yourself on the road to wealth.

Frank Yan of Sacramento on Debt Relief Options

Frank Yan of Sacramento posts a related article: The Top 10 Debt Mistakes You Don't Want to Make

Frank Yan has consulted many home buyers with debt in Sacramento and says that if you have a significant amount of credit card or unsecured debt it's often hard to get clear, accurate information about your options. Consumers will find that there isn't a "perfect option", but there will definitely be a "best option" for debt relief. It's important that you take the time to understand the benefits and risks of any debt relief plan before committing.

Here is a summary that Frank Yan put together of available debt relief options based on $30K of credit card debt:

1.Minimum Payments.


The banks prefer you pay only minimum payments. Why? You make them incredibly rich by doing so. This may be the single most harmful financial mistake you can make.

Pros: None
Cons: You'll end up paying 400-1,000 cents on the dollar for your purchases over 20-30 years.


BE CAREFUL: Money spent towards servicing debt for 20-30 years is MUCH better spent building savings, paying down a mortgage, or funding investments and retirement - ask any financial planer.

Success Rate: 0% (even paying your credit cards off with minimum payments isn't a success)

Approx. Payoff: Monthly payment of $480: 24 years (288 months). $139,461.

2. Accelerate Payoff with extra principal.

You can pay extra money towards principal every month to pay down your creditors faster.



Pros: Will reduce your total payoff and the time it takes to get out of debt.
Cons: Not many people have extra money these days. You also can't control what the creditors do with your interest rates or if they apply the money correctly to principal.


BE CAREFUL: This will take the discipline of paying extra every month as long as it takes, which is hard to do. Think of it this way: we all know we're supposed to go to the gym and work out more, and may even start off good, but do we keep going every month? Knowing what's good for you and doing it are two different things.

Success Rate: 7%
Approx. Payoff: Monthly Payment of $680: 9 years (108 months). $63,094.

3. Payment Plan.


If you are having financial trouble or miss payments you may be able to negotiate a payment plan with your creditors for 100 cents on the dollar.


Pros: Payoff for less than minimum payments.
Cons: You won't be able to use your card anymore. Negative impact to credit score. You will have to negotiate this with the bank and they may not approve it.

BE CAREFUL: If you miss even one payment on this plan all of your back interest and late fees may be added in with interest rates as high as 30%

Success Rate: 29%
Approx Payoff: Monthly Payment of $480: 5.5 years (66 months). $30,000.

BE CAREFUL: There is no huge financial benefit to CCCS that cannot be achieved more efficiently through a repayment plan or debt settlement.

Success Rate: 21%

Approx. Payoff: Monthly Payment of $700: 5-7 years (60-84 months). $51,300.

5. Debt Settlement.


Debt settlement is a legal negotiation where your creditors will take less than what is owed, usually around 30-50%.


Pros: Debt free in18-30 months for the same monthly payment. Most efficient way to pay off your creditors. Voluntary negotiation for your creditors. Recapture monthly payment that can be used for savings, investments, retirement.
Cons: Risk of creditor lawsuits. Settlement negotiations may be higher or lower and can not be guaranteed. Must miss payments resulting in temporary damage to credit score.

BE CAREFUL: Trying it yourself is seldom successful and could land you in court if you are sued. Do not hire a debt settlement company because they charge high fees and set you up to fail. Only hire an attorney who specializes in debt settlement and keep your plan within 2 years or less for best success.

Success Rate: 20-40% if attempted by consumer, 75-99%* if done by qualified attorney
Approx. Payoff:Monthly payment of $480: 1 -2 years (12 to 24 months). $10,000 - $14,000

6. Bankruptcy.


Bankruptcy offers legal protection from your creditors.

Pros: BK gives a fresh start for those who are financially destitute or overwhelmed with debt.
Cons: Complete default for your creditors. WORST thing for your creditors. Hard to get new loans. Can only file once every 6 years.

BE CAREFUL: Chapter 7 bankruptcy wipes out your debt. A Chapter 13 is a repayment plan and may be better accomplished with a debt settlement.

Success Rate: 100% if you qualify
Approx. Payoff:Costs for bankruptcy range from $2,000 - $3,000.

Frank Yan of Sacramento on Spending Less Than You Earn

Frank mentions that one of the most important factors of life and principle to becoming wealthy is to spend less money than you earn. This may sound easy, but in practice it can be very hard to do. Frank Yan has experienced this article and will explain what to look at and the challenges to spending less than you earn and offers some tips to overcome these.

First Frank wants to look at those who may spend more money than they earn. It stands to reason that if someone is spending more money than what they earn, they are either being given the money or are borrowing it, such as credit. In this day and age of worldwide economic growth and prosperity it has never been easier than before to borrow money. Temptation to borrow is everywhere, whether it is for a new TV, a new car or a new house. In Sacramento personal debt levels are at record highs. With foreclosures at an all-time high, delinquent State deficit, and the average Joe shopping for a high priced vehicle at the Sacramento Auto Malls. Frank Yan has read that the US Federal

Reserve has calculated that more than 45% of US families spend more than they earn. Not good…


The problem with our personal debts is that it can become a bad trap. Bad debt for example and how you can be trapped by this bad debt can be seen with probably its most and popular common form – Credit Cards. Ideally, people should ensure to pay off their balance in full by the end of the interest free period to avoid paying these high interest rates set on these credit cards. It’s quite common and sad that people use their entire credit limit and make only the minimum payment required as a lower payment is an attractive number so people can assume to live a more comfortable life without any financial stress. This minimum payment is the worst and is usually just enough to cover the interest charges only. Combined with a high interest rate this makes credit cards a very expensive form of borrowing.


There are also people who spend equals to what that they earn. If someone is spending everything they earn, it is obvious they are not saving anything or investing any of their earnings. This bad habit will make it very hard, if not impossible, for them to become wealthy in the future. It also means that they will more than likely need to borrow more money in the down the road to fund larger purchases. And so… The debt financial trap begins…


Develop Your Financial Discipline and Intelligence

Let’s return to Frank’s earlier example of credit card disaster. First question would be do you really need one? The emergency of Mastercard/ Visa debit cards and including Paypal has eliminated some of the benefits that credit cards traditional have Example: The ability to make purchases over the internet or telephone. If you do decide you still want a card, you will often be tempted with a higher credit limit, higher than you would have expected. Remove the temptation. By reducing the limit to one where you wouldn’t be scared if the card reaches its full limit. As mentioned earlier, ensure you pay off your balance in full each month to avoid paying these high interest percentages and building up a large amount of debt.


Reduce Your Spending Consumption

First step here is to identify and to eliminate conspicuous consumption. What Frank means is the buying of things you don’t need or want. Second thought is, distinguish your wants from needs. As you begin to identify things as wants, you will reassess whether or not you really want to spend your money on that purchase. Last thing is, set some short to long term financial goals. Use motivation to control your immediate consumption of spending. Example, which you want to go for a well-deserved away from Sacramento vacation across seas in your short term goal. You will find it far much easier to resist purchasing that new item you saw if you can associate this with the goal of an overseas get a way.


Bringing These Two Solutions Together

The best way to bring these two solutions together is financial discipline and controlled consumption. Start to budget and live by it. A budget is simply a plan that allocates your future income towards expenses, savings and debt repayment.


If you don’t like the idea of creating a budget, a simpler way to ensure you spend less money than you earn is to Pay Yourself First. Set up an automatic system to Pay Yourself First. Avoid paying for purchases via your credit you can relax knowing that you are spending less money than you earn.


If you are struggling with debt and/ or excessive consumption of spending, be clear that spending less money than you earn will involve some short term sacrifices and lifestyle changes. These changes will be way more positive as you begin to take control of your finances sensibly and putting yourself on the road to wealth.