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Credit Money and Boyles Law

Written by on January 13, 2012 · Leave a Comment

In short, Boyles law states that the volume of a gas held at constant temperature will vary inversely with the amount of pressure it’s under.

Boyles Law is very important for scuba divers to understand. If one takes a breath of compressed air at 33 feet below the surface and then holds her breath while ascending, the gas in the diver’s lungs will expand dramatically and probably kill the diver.

This phenomenon is a perfect analogy to credit money for versus fiat money. In our current environment, fiat money–the actual paper money floating around in society–is held under immense pressure by credit money. In fact, fiat money is under a mountain of debt. That means that we can expand the amount of fiat money without a huge impact on it’s overall size and effect in the market . . . at least according to Boyles Law.

And every time someone takes out a new loan, even if it’s one of the best loans on the planet, the mountain of debt gets bigger and further hampers the effectiveness of the existing fiat currency. Just something to think about!

Categories: Debt - Tags: ,

Worried with bad credit – Use debt consolidation programs

Written by on December 14, 2011 · Leave a Comment

Debt can leave deep scars on your financial life that would be hard to heal. Many a times, you may have to take out loans for meeting any emergency expense and later find it extremely difficult to pay back those loans due to the high rate of interest on unsecured debts.

If you have a bad credit on top of this, then you are in major trouble. Most lenders simply refuse to work with people with bad credit, especially in the current scenario where economic conditions are not very stable. If you have a bad credit then you will not get any loan, even a secured one such as a second mortgage. Thus it would be really difficult for you to take out a debt consolidation loan, which is usually a secured loan, to pay back your debts.

In such situations, you can go for debt consolidation programs. These debt consolidation programs are offered by professional debt consolidation companies. If you enroll in such a program then you are usually given an introductory free of cost credit counseling session. Then a counselor is appointed for you who minutely study your financial condition by considering your total family income each month, the expenditure, the debt levels and the lifestyle. He then gives you advice on how you can reduce your expenditure and save more money. He also negotiates with your creditors to reduce the interest rate on your outstanding debts so that you can pay back your debts in full. Along with this, you can give him the total amount of all your debt payments at the beginning of every month. He will distribute the total debt amount amongst your various creditors as is required.

Thus you can see debt consolidation programs have a number of benefits. These are as follows:

  • You can pay all your creditors by making just one payment per month. This single monthly payment helps you to manage your debts better.
  • You get a lower interest rate on your outstanding debts. Due to this the monthly debt payments you have to make is lowered too. Thus it is not only easier to make the debt payments but also you get to save money in the long run.

Apart from the above two, you also get the advantage of not having to deal with your creditors and your negotiator does that. Thus debt consolidation programs can be helpful enough to get out of debt fast, even if you have bad credit.

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