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How To Get Out of Debt Without Losing Time and Money

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I don’t have to tell you that time is money. Compound interest is proof of that. When you’re serious about getting out of debt, some gurus would have you get ‘gazelle-like’ and use a snowball or avalanche to get out of debt. While you live on beans and rice like no one else, it’s ironically like the all the third world countries, interest is being added to your debts. The experts won’t put a time limit, but you should. Here’s why.

Life moves by quickly. That’s time. Financial goals need to be met like buying a car or a house, or saving for retirement. The time you take to get out of debt slows down your ability to meet other goals. The more money you spend getting out of debt slows down this process even further. What do you do when you’re stressed out and backed into a corner? You do everything you can to avoid the devastation of facing a possible bankruptcy because that would the be the worst thing ever, right? Read on.

Choices are the cornerstone of freedom we have in our country. That’s great news that you actually have choices when it comes to getting out of debt. First, we’ll explore each option. Then, we’ll look at the numbers using an example of what it would cost under each method. From there you can make a better choice of the option that is right for you.

A debt avalanche (also known as “debt stacking”) targets debts with the highest interest rates first. A debt snowball plan, in contrast, prioritizes your smallest debt first no matter the interest rate. Each time the smallest one is eliminated you move to the next smallest.

Alternately, consolidation is a new loan that rolls all the debt into the new loan. The average annual percentage rate (APR) on a consolidation loan is around 18.56%. To put that into perspective, the average range of interest rates charged on consolidation loans typically falls between 8.31% and 28.81%. Negotiating and settling debts for less than what is owed requires that you pay some of the debt and then pay taxes on the cancelled debt. The main problem with debt relief companies is the fact that they cannot stop lawsuits and it wreaks havoc on your credit report due to late and missed payments.

You can follow the gurus and use a snowball or avalanche method and repay your debts as you lose weight on beans and rice. Other options include consolidation and negotiated settlements, paying less that what you owe. Paying less than you owe does come with a tax bill for the cancelled. Each method has its pros and cons and affects credit availability. All the while interest continues to accrue, your credit score drops as you fall further behind and you may even get sued. What if you could find a way to repay your debts with all of these benefits rolled into one? Let’s look at the numbers.

Let’s use the example of someone who has a total of $30,000.00 spread over two accounts and a student loan. In addition, you are able to set aside an extra $200 toward debt payments after making the minimum payments on all three accounts. 15000

  • Credit Card A has a balance of $15,000, a starting minimum payment of $285, and an interest rate of 22.25%
  • Credit Card B has a balance of $8,400, a starting minimum payment of $150, and an interest rate of $18.85%
  • The student loan has a balance of $6,600, a monthly payment of $246, and an interest rate of 6.2%
  1. Avalanche will cost you $881 per month for 5 years paying a total of $44,528
  2. Snowball will cost you $936 per month for 4 years paying a total of $44,898
  3. Consolidation will cost you $552 per month for 10 years paying a total of $66,240
  4. Settlement will cost you $475 per month for 5 years paying a total of $28,500 including fees and taxes
  5. Chapter 13 will cost you $500 per month for 5 years paying a total of $35,000 including fees

Now that I’ve laid out the numbers, you can see that the least expensive ways to eliminate debt fall between negotiated debt settlement or a chapter 13 bankruptcy case payment plan. Even though debt settlement appears cheaper than bankruptcy, if a lawsuit is filed, the program will typically remove that debt from their program and leave you hanging. Also, if you’re looking to preserve or improve your credit score, this program is not right for you because the debt relief agency won’t make a payment on that debt until you have enough money in reserves for them to negotiate a lump sum settlement. So, even though it appears to be the cheaper way, it may not be the best way based on ruined credit score, tax consequences and you may still wind up dealing with debts on your own if you’re sued.

A 5-year payment plan in chapter 13 may be proposed to repay less than what you owe too, depending on the amount of assets you own and your income. So, the total amount you owe could be even less. Some of the benefits of chapter 13 include zero interest and no income tax consequences on the cancelled debt. Even better is the improvement to the credit score because bankruptcy protection means that you can’t be sued while paying debts through bankruptcy and since you’re making payments, you should see your credit score improve while you’re in repayment.Now that I’ve laid out the numbers, you can see that the least expensive ways to eliminate debt fall between negotiated debt settlement or a chapter 13 bankruptcy case payment plan. Even though debt settlement appears cheaper than bankruptcy, if a lawsuit is filed, the program will typically remove that debt from their program and leave you hanging. Also, if you’re looking to preserve or improve your credit score, this program is not right for you because the debt relief agency won’t make a payment on that debt until you have enough money in reserves for them to negotiate a lump sum settlement. So, even though it appears to be the cheaper way, it may not be the best way based on ruined credit score, tax consequences and you may still wind up dealing with debts on your own if you’re sued.

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Polygon (Matic) Prices All set to Create New ATH, Prices Around $2 Level

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Polygon (Matic) Prices All set to Create New ATH, Prices Around $2 Level
  • Traders may attempt to exit long positions when Polygon is near $2.
  • A big closing over $1.87 would entice investors, alleviating selling pressure.

Polygon’s native token, MATIC, looks to be catching up with the market. By all indicators, prices may be on their way to a new all-time high. Likewise, the Polygon has broken past major resistance and is poised to hit new highs.

MATIC Price has risen over 22% in the previous four days, signaling positive momentum. Prices have climbed lately from $1.52 on October 23 to $1.86. The cryptocurrency is now trading at $1.8370, up 10.33% in the past 24 hours. $MATIC has a year-to-date ROI of +10337 percent.

For confirmation, measure the distance between the initial swing peak and the low swing peak, then multiply by $1.73 (breakout point) to arrive at a $4.32 target.

Before retesting the ATH at $2.70, Polygon will have to overcome two significant roadblocks at $2.04 and $2.22. If MATIC overcomes these challenges, it will reach $4.32. Traders may attempt to exit long positions when Polygon is near $2. Unfortunately, that might halt the upswing and prevent MATIC from breaking past that barrier and realizing its upside potential.

MATIC/USDT: Source: TradingView

The IOMAP graphic above shows the Bulls winning. At $2, just 1,280 addresses have acquired over 35.5 million MATIC. Polygon’s primary support level is $1.75.

With daily addresses increasing over the previous three months, the main spike is on its way. In addition, it seems that more cash and investors are entering the market, as the 7-day MA for active wallets has increased. To date, approximately 92 percent of all $MATIC addresses are profitable, according to ITB statistics.

The GIOM model predicts that Polygon has a single resistance at $1.87. Approximately 17.54 thousand crypto addresses bought 135 million tokens. A big closing over $1.87 would so entice investors, alleviating selling pressure. On the other hand, MATIC may so easily expand its surges. The alt will then skyrocket to $2.7 or more.

MATIC has risen by over 30% so far in October, and now, according to a Reddit debate, MATIC has handled 1 Billion transactions on the Polygon PoS chain.

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Helium (HNT), Cosmos (ATOM), Holo (HOT) -All Set to Create New ATH!

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Helium (HNT), Cosmos (ATOM), Holo (HOT) -All Set to Create New ATH!
  • HNT’s recent alliance with Dish Network has been a big impetus for price activity. 
  • ATOM might hit a new ATH of roughly $47.586.

After achieving fresh ATHs, Bitcoin and Ethereum seem to be out of breath. However, the market is buoyant as numerous cryptocurrencies post double-digit gains, and the star crypto gains support of approximately $60,000. Recent gains in Helium (HNT), Cosmos (ATOM), and Holo (HOT) are notable.

A crypto metric site named Santiment just published the growth of the above cryptocurrencies. The analytics tool shows a huge increase in market value for Helium, Cosmos, and Holo. Here are some price targets for these cryptocurrencies.

Helium (HNT)

Helium (HNT) is a blockchain-based platform for IoT utilities. On Tuesday, the primary altcoin nearly missed the $26.31 ATH. However, the HNT price has been consolidating around $24.15. The 4-hour chart continues to show a battle between buyers and sellers.

If enough buyers step in, the cryptocurrency might gain another 10% to 15% after regaining the prior ATH. On the other hand, if bears seize control of the market, HNT’s price might fall below $20.

HNT/USDT: Source: TradingView

However, the HNT’s recent alliance with Dish Network has been a big impetus for price activity. Traders may use compatible Helium 5g Hotspots on Dish Network to earn HNT tokens.

Cosmos (ATOM)

Cosmos (ATOM), a decentralized network that improves interoperability and scalability, has gained 10% in 24 hours. Trading volume increased by approximately 300 percent in hours. The price of ATOM has been steadily declining since reaching its previous ATH of $44.70. On the 4-hour chart, sellers outnumber purchasers.

1635364894 7 Helium HNT Cosmos ATOM Holo HOT All Set to Create
ATOM/USDT: Source: TradingView

Currently trading at $39.50, a sell-off may send ATOM down to $36.74 if it persists. The RSI value of 60.8 also implies a good consolidation period. If a large number of buyers come in during the next several hours, ATOM might hit a new ATH of roughly $47.586.

Holochain (HOT)

Holochain (HOT) is a peer-to-peer network that has recently gained considerable media attention. Huge green candles on the 4-hour chart indicate an enormous increase in investment. Recent ecosystem events have pushed the price back to September highs of $0.0125. Following large purchase orders a few hours earlier, the cryptocurrency is undergoing a little correction with hefty sell-offs.

1635364894 700 Helium HNT Cosmos ATOM Holo HOT All Set to Create
HOT/USDT: Source: TradingView

The price of Holochain (HOT) is projected to drop around $0.0095. The RSI element is green. Thus the HOT price might surpass the September high of $0.0135. As of early this week, Bitcoin dominance has declined, signaling capital leakage to rival cryptocurrencies. Moreover, the recent increase in these cryptocurrencies’ market cap confirms the start of Altseason.

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Greed Spikes To Seven-Month High Alongside Record Crypto Prices

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Crypto Greed

Data shows greed in the crypto market has spiked to seven-month highs as coins record new all-time highs (ATHs).

Crypto Fear And Greed Index Points At Extreme Greed

As per the latest weekly report from Arcane Research, the fear and greed index has recorded seven-month highs as the needle points at extreme greed.

The “fear and greed index” is an indicator that represents the general sentiment of the crypto market on a numeric scale that goes from 0 to 100.

When the metric has values below 50, it means there is, on average, fear among investors. Values lower than 25 denote extreme fear. Such a sentiment is usually seen after big corrections, and periods of extreme fear may prove to be good buying opportunities.

While the needle pointing above 50 means the crypto market is starting to get greedy. Extreme greed occurs when values exceed 75. Very high values near 100 may mean there will be a correction soon so investors may not buy more at this point.

Here is a meter that shows what the current market sentiment is:

The fear and greed index seems to be pointing at extreme greed at the moment | Source: The Arcane Research Weekly Update - Week 42

As the above meter shows, the crypto market looks to be extremely greedy right now as the value of the indicator stands at 76.

Related Reading | Bitcoin Funding Rates Touch Same Level As Early September, More Correction To Come?

Comparison with last week’s and last month’s values is also given below the meter, which were 75 (extreme greed) and 27 (fear), respectively.

The below chart gives a better idea about how the current fear and greed index values compare with those of the past:

Crypto Fear And Greed Index

The values of the indicator over the last one year | Source: The Arcane Research Weekly Update - Week 42

On examining the above graph, it becomes apparent that the fear and greed index reached values of 84 this week, the highest in the last seven months.

Related Reading | Breaking Down The Bitcoin Binance Flash Crash By The Second

This peak was made just a day after Bitcoin made its new ATH of around $67k, but shortly following that the price had a correction. The below chart shows this trend in BTC’s price:

Bitcoin crypto Price Chart

BTC's price continues to go down after making a new ATH | Source: BTCUSD on TradingView

The fear and greed index also took a hit in response to this decline in Bitcoin’s price, but nonetheless, values still remain in the extreme greed category, which means the crypto market still expects prices to go higher.

During the rally earlier in the year, values consistently remained in the extreme greed category, and corrections only caused temporary declines in the indicator.

This means that if the market has to continue making newer ATHs, the market sentiment should remain greedy, otherwise the bull run might start losing steam

Featured image from iStock.com, charts from TradingView.com, Arcane Research
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