Most consumers like the convenience of having a credit card.

There is no need to carry large amounts of cash plus if the card gets lost or stolen it usually takes just a single phone call to deactivate it.

Combine these amenities along with fraud protection and most feel they have gold in their wallet.

However, having this convenience often leads to spending beyond one’s means. Combine a high spending limit with high interest rates and you have a recipe for disaster.

This can lead to desperation and a search for debt relief.

Following are a few tips on how to eliminate credit card debt:

1) Write down expenses for the last three months and work out a budget. Be sure to include the necessities such as food, gas, rent, utilities and insurance.

Doing this will allow you to find where the extra cash is and how much you can put towards a credit card payment each month.

2) It is highly recommended by financial experts to carry only two credit cards in your wallet. One to be used regularly and one strictly for emergencies.

Cancel all other cards immediately or as soon as you pay them off if there is a balance due.

3) If you get so far into debt that the bank or card issuing company have started to call, make sure you start a dialogue with your creditors to see if you can make arrangements for payments.

Most creditors will be more than willing to make deals with you rather than have you completely default on the card.

4) Review your lifestyle and make changes accordingly. Ditch some of your expensive toys and possibly buy a more economical vehicle.

5) Use the collateral you already have.

If you own a home you could always look into a home equity loan. Beware though that with the sudden windfall of cash you may be tempted to make unwise buying decisions.

If you are currently carrying a large debt load on credit cards, these simple tips may help you find the debt relief you are looking for.

Discover the simple steps to debt relief at http://www.yourdebtreliefsolutions.com/

In his book, The Cashflow Quadrant, Robert Kiyosaki says “The more people you are indebted to, the poorer you are”. I also agree with this philosophy. In fact, when speaking to groups or consulting clients, my attitude always changes when we start to focus on debt management. I am tough on debt, and I believe everyone who strives for financial freedom should be too.

There are several reasons why debt is such a problem in society today. In the 1970s, banks started issuing credit cards. When they first came out, your bank just sent you one. No application forms, no credit checks, nothing - they simply sent them out in the mail. As long as you had an account, you were eligible for a credit card. Easy money. Or so it seemed.

In the 1980s, credit cards were still very easy to obtain. More and more organizations and institutions started issuing them. Store cards, dining out cards, cards for travel. Visa, Mastercard, Bankcard. The list was endless. Although it was customary to have a cursory credit check, you would have had to been guilty of robbing the Bank of England before your credit was denied. If you missed a monthly payment, no one cared. The only important thing was that you had a wallet bulging with credit cards.

And so began the demise of our debt-ridden society. Easy cash. Easy credit. Won’t worry about now, I’ll worry about it later.

Fortunately, the severe recession of the early 1990s put an end to slapdash credit checking. The banks had lost too much money and they had to pull in the reins. However, after 20 years conditioning, society was still tied to its credit card apron strings. Credit cards were always very expensive debt. But despite having to pay between 15% to 20% interest, most people still preferred to take the easy way out.

Another reason for our escalating debt is our post-war baby-boomer society. Our parents or grandparents, who lived through two world wars and the Great Depression, knew the meaning of managing money. Not that I advocate hardship but the baby-boomers did grow up a little spoilt. Our now-now-now attitude makes most of us act like naughty little children let lose in the candy store. So many wonderful, shinning new toys - videos, DVDs, microwave ovens, dishwashers, brand-spanking new cars - and not enough time to save for them.

We have forgotten the meaning of necessity. Our post-war generations have grown more and more materialistic, and less and less patient. Our grandparents knew that if they wanted something new, they had to save up for it first. Today’s buy-now-pay-later society has forgotten these rules - and the result is escalating debt.

More than ever before, we have the ability to earn a lot of money. There are more middle-income earners now than previous generations, but the wealth distribution stays about the same. The more we try to live above our means and buy things we cannot afford, the deeper we dig our debt-ridden ditches.

In order to eliminate this insidious financial trap from our lives, we can take a few small steps to successfully manage and reduce our debt.

Rules for Managing Debt:

–Make a commitment to eliminate your debt.

–Stop buying things you cannot afford. Remember, if you have to borrow for it, you cannot afford it.

–If you cannot manage the temptation of shopping with credit cards, please stop using them. Use cash instead. It is far more finite and controllable.

–If you absolutely have to have a credit card, just have one - with a limit of no more than $1,000 to $5,000.

–If you are prepared to use credit cards, set a budget for what expenditure you will use your cards for, and manage them on a month to month basis.

–Always pay off credit card debt first. This is usually the most expensive with interest rates of up to 20% per annum. Pay off your debts in order of cost. The higher the interest rates, the more costly the debt.

–Eliminate wastage and extravagance by always asking yourself before you buy anything, “Do I absolutely need this?” You may find after awhile that the real answer is often “No”.

–Remind yourself, that any hardship you may experience now is only short-term. The time will soon pass and ultimately you will be grateful. The discipline you exert now will mean extra dollars in the bank later.

Ann Marosy is an accountant, consultant, and motivational speaker. She was formally the Financial Controller of an Aust subsidiary of the Fortune 500 Company, Jardine Matheson; Finalist of SA Executive Woman of the Year and is the author of ‘The Money Program: How to Manage the 6 Stages of Wealth’ and ‘Money Rules: The 7 Simple Rules of Money Management’.

Visit her website at http://www.moneta.com.au

Let us once again review what we have learned about debt relief options.

I would like to preface this with; you are not alone in your struggle with debt. Almost everyone in the United States is in the same boat as you. The purpose of this series of articles was not to get consumers to dodge their debt obligations and screw the credit card giants. The focus of these articles was for the person in hardship, the person looking for a legitimate debt relief program and is reviewing the options.

The five options for debt relief are:

1. Consumer Credit Counseling is a debt advice “charity”, and is funded entirely by the credit industry, which creates a conflict of interest and gives the creditor the incentive to make you pay more.

2. Debt Settlement or Debt Negotiation is an agreement between a debtor and a creditor to fully satisfy a debt for a reduced payoff amount. A debt settlement is usually reached when a debtor is unable to fully meet their debt obligations due to financial hardships

3. Consolidation loans are secured loans. If you didn’t pay an unsecured credit card loan, it would give you a bad rating but your home would still be secure. If you do not pay a secured loan, they will take away whatever secured the loan. In most cases, this is your home.

4. Bankruptcy. Chapter 7 bankruptcy is the liquidation variety where property is sold (liquidated) to pay off as much of your debt as possible, while leaving you with enough property to make a fresh start. Chapter 13 is the most common type of “reorganization” bankruptcy for consumers where you repay your debts over a period of years. Both kinds of bankruptcy have numerous rules, and exceptions to those rules, about what kinds of debts are covered, who can file, and what property you can and cannot keep.

5. Do Nothing! Rather than doing nothing about your debt, explore the other options and see which one best fits your situation and makes the most sense to you.

Of these five options, each has their own characteristics, as well as pros and cons. I feel that they were all properly addressed in a non-biased manner throughout this series. There is no debt relief program that will magically change you financial situation overnight. Let’s face it, these problems did not develop overnight and will take time to resolve.

So if a consumer is suffering some financial hardship, these are some of the characteristics that one might be looking for in a debt relief program:

1. A program that will get you out of debt in the quickest possible time. Of the options outlined above, this would be debt settlement. A typical debt settlement program will have the client debt free in an average of three years. Compared to CCC (5 - 7 years) Bankruptcy (7 years)

2. A program that will get you out of debt for the lowest cost. Again, debt settlement scores the best, reducing a client’s debt burden between 40 and 60%

3. A program that has minimal damage to your credit report. Debt settlement wins here too. Let’s face it, if your seeking debt relief options, your credit probably isn’t that hot to begin with, but you are doing some damage control and don’t want to further bury yourself. It is obvious what bankruptcy will do to your credit and the CCCs is generally referred to as bankruptcy’s brother. With debt settlement, your credit will be while you’re in the program but upon completion, your accounts will reflect “paid as agreed” (remember average 3 years). Then you can take the proper steps for credit restoration.

When looking at your options for debt relief programs, doing you due diligence is vital. You need to choose a program that will fit your individual needs. Getting you out of debt in the shortest possible time, for the lowest possible cost and doing the least damage to your credit report.

The answer here is obvious.

You can visit him online at http://www.yourguidetoperfectcredit.com

Dave Capra “The Debtonator” is author of “Your Guide To Perfect Credit”, a radio show host, columnist and certified debt consultant. For information contact The Debtonator at 312.674.4861 or email thedebtonator@yourguidetoperfectcredit.com

http://www.yourguidetoperfectcredit.com
http://www.franklindebtrelief.com

A wise man has said that if you continue to act as you always have, you will continue to receive what you always had. You need to change your method of doing things to achieve a different result.

The seemingly most easiest thing you can do when in debt is to do nothing, but this is hardly the best choice.

People choose this option for a variety of reasons. Some people are so overwhelmed by their debt that they are unable to do anything proactive to remedy their situation. Others procrastinate dealing with their debt because they expect a financial turn-around or miracle in the near future. Perhaps a promotion in your company is on the way, or a new job is right around the corner, or you might be walking down the street one day and you’ll trip over a bag of money.

Some may not be very worried about their debt and are content with making their minimum payments each month. Still others do nothing about their debt because they have no idea what to do or where to start. While these may seem like valid excuses, there is no good reason to avoid your debt.

Understanding debt and learning about the available options help to lessen the stress of debt. If you are unable to take action to reduce your debt, seek professional help with managing your debt. Remember that it is unwise to base financial decisions today on future expectations. If the hoped for bonus does not happen, you could be stuck financially. It is best to plan ahead and attack your debt now, without gambling on what the future will hold.

There is a chance that your debt will eventually disappear as you struggle to make your monthly payments, but it won’t be easy or very likely. Interest rates for credit cards average about 18% and are subject to change by your creditors at any time, at their will. At these rates, it is difficult, if not almost impossible, to get out of debt by making just the minimum payments on your accounts. If you pay only the minimums each month on a $5,000 credit card balance, it will take you 27 years to eliminate that debt and you will have paid for everything you bought at least twice over.

From this example, you can see how much money you will waste on interest by paying your minimums and waiting years to get out of debt. Also, having long-term outstanding debt of this kind hurts your credit score. If you decide to do nothing about your debt, you ruin your credit score without eliminating the debt.

Rather than doing nothing about your debt, explore the other options and see which one best fits your situation and makes the most sense to you.

If there is no way that you can afford to repay the debt and you have no property that could be sold to repay the debt, or your income is too low to be garnished you may opt to do nothing.

But in reality, that would not be the wisest choice.

Dave Capra “The Debtonator” is author of “Your Guide To Perfect Credit”, a radio show host, columnist and certified debt consultant. For information contact The Debtonator at 312.674.4861 or email thedebtonator@yourguidetoperfectcredit.com

http://www.yourguidetoperfectcredit.com
http://www.franklindebtrelief.com

You see them all the time. Ads for debt consolidation loans are everywhere. On TV, the radio, in magazines, and even in your mail. It seems like the answer to all your problems, but you should really think twice before you act impulsively.

Look at the facts. You are swimming in debt. You have 4 credit cards maxed out, a car loan, a consumer loan, and a house payment. Simply making the minimum payments is causing your distress and certainly not getting you out of debt.

What should you do?

I’m sure you’ve seen the advertisements of smiling people who have chosen to take a consolidation loan. They seem to have had the weight of the world lifted off their shoulders.

1. The average citizen of the USA pays 11 different creditors every month. Making one single payment seems much easier than figuring out who should get paid how much and when.

2. Since the most common type of debt consolidation loan is the home equity loan, also called a second mortgage, the interest rates will be lower than most consumer debt interest rates. Your mortgage is a secured debt. This means that they have something they can take from you if you do not make your payment. Credit cards are unsecured loans.

3. Since the interest rate is lower and because you have one payment vs many, the amount you have to pay per month is typically decreased significantly.

4. With a consolidated loan, you only have one creditor to deal with. If there are any problems or
issues, you will only have to make one call instead of several. Once again, this simply makes controlling your finances much easier.

5. Interest paid to a credit card is money down the drain. Interest paid to a mortgage can be used as a tax write-off.

Sounds great, doesn’t it? Before you run out and get a debt consolidation loan, let’s look at the other side of the coin.

With an easier load to bear and more money left over at the end of the month, it might be easy to start using your credit cards again or continuing spending habits that got you into such credit card debt in the first place. Now your home is on the line. You can’t pay, the bank forecloses on your property.

Most mortgages are the 10 to 30 year variety. This means that rather than spend a couple of years getting out of credit card debt, you will be spending the length of your mortgage getting out of debt. Even though the interest rate is less, if you take the loan out over a 30 year period, you may end up spending more than you would have if you had kept each individual loan.
And, most important of all, and it bears repeating!

You can lose everything!

Again, Consolidation loans are secured loans. If you didn’t pay an unsecured credit card loan, it would give you a bad rating but your home would still be secure. If you do not pay a secured loan, they will take away whatever secured the loan. In most cases, this is your home.
As you can see, consolidated loans are not for everyone. Before you make a decision, you must realistically look at the pros and cons to determine if this is the right decision for you.

Dave Capra “The Debtonator” is author of “Your Guide To Perfect Credit”, a radio show host, columnist and certified debt consultant. For information contact The Debtonator at 312.674.4861 or email thedebtonator@yourguidetoperfectcredit.com

http://www.yourguidetoperfectcredit.com
http://www.franklindebtrelief.com

If you’re having trouble managing your debt you’re not alone. More and
more people are sinking into debt and wondering what the heck happened
and how they can fix it. If you want to get out of debt and stay that
way, there are some fundamental debt and money management skills you’re
going to need to learn.

* Learn to Manage Your Money

Just like mutual funds have money managers making the decisions on what
stocks to buy, hold and sell and when to perform these actions, you need
to become your own professional money manager. Not only will this help
you get out of debt, it will help keep you out of debt, as well as reach
other financial goals you may have, such as buying a new home, sending
a child to college, or retiring.

Some important money management tips include:

1 - Pay cash for things whenever possible. Try not to use credit cards
at all. Consider keeping only one credit card, that is for emergency
use only. Don’t buy things you want but don’t need until you have the
cash to do so.

2 - Budget, budget, budget

I’m not saying you have to start recording every penny you spend. Not
many people can do that for very long. However, you should know what
your monthly bills are, when they need to be paid, and how much income
you take home each month. Make sure all your monthly bills get paid
before you spend any money on items that you don’t need. This is especially
true when you are trying to get out of debt. Once you are out of debt (not
including longer term debt like your car or mortgage), you’ll have more
disposable income to spend on other things, as well as save for other
financial goals. But if you are in debt, getting out should be your
number one financial priority.

* Use Professional Advice

Understand that at time you’ll need to seek the advice of a professional
such as a CPA or financial planner. I’m not saying you need to hand
everything over regarding your finances for someone else to manage (and
pay them huge commissions at the same time) but putting a financial
plan in place, and having a CPA do your taxes, may be a very good idea
that will save you money in the long run.

* Keep Learning

Constantly learning about financial management and how to manager your
personal finances and investments will help keep you out of debt once
you are debt free and keep you on track for your financial goals. By
always learning about the topic, it will be in your mind and you’ll
be less likely to slip back into bad habits and find yourself in debt
again.

Learn more about how to use debt management tips with Freddie Johnson’s free articles on debt relief, debt consolidation, debt management and credit repair tips at http://www.mydebtconsolidationtips.com

Credit counseling serves to help you identify risky consumer behavior and commit to a budget. What many distressed cardholders do not realize is that you can also get breaks from high interest rates on your credit cards.

Few people realize that credit counseling was actually invented by credit card companies many years ago to help cardholders that are in over their head get back on track. Credit card issuers want you to avoid default, and they are willing to help you do so if you are prepared to relinquish use of your credit cards.

You will find that meeting with a credit counselor can be very beneficial, especially if you are able to meet in person. You can also have a very good conversation over the phone. The key is to make sure that your credit counselor is accredited and that the agency is reputable. You can learn a lot about an agency by checking with the Better Business Bureau. THey should have a satisfactory rating and should be responsive to any complaints they have received.

Credit counselors can help you evaluate your financial situation and can tell you how serious your situation appears. They can discuss multiple options that may be available to you based on your own unique situation.

You can also find out if you might be eligible for benefits through a debt management plan. Some of these benefits can include substantial interest rates, plus lower minimum payments. Many agencies offer the flexibility of a consolidated payment using automatic monthly debits. Similar to payment arrangements for vehicles and homes, this payment comes out on a date that you select based on your needs.

If you are struggling to make a dent in your credit card balances, you might find that an appointment with a credit counselor can be one of the best things you have ever done. Remember that credit counselors are not miracle workers though. They will give you realistic expectations about what the possibilities are and can answer questions about your own qualifications for benefits. Their role is to provide information on your situation and your options. It is up to you to make the right decision to meet your needs.

Do yourself a favor if you are inundated with high credit card debt. Meet with a credit counselor to see what you can do to improve your situation.

Kenneth Long began his public service with nonprofit organizations in 2001. He has since conducted workshops teaching other nonprofit executives how to integrate credit counseling with volunteer tax preparation programs. Long is a graduate of the University of North Carolina at Chapel Hill and received his Certificate in Nonprofit Management from Duke University.

You may find more information on lower interest rates through credit counseling.

Monthly credit card payments have recently skyrocketed, which has resulted in millions of people looking for some type of debt relief.

While consumers struggle to make even their minimum monthly payments, issuers of credit cards are realizing all-time record profits. For instance, credit card companies earned a staggering $90.1 Billion in profits from interest charged to consumers during the year 2006. What’s worse is that these same companies earned $55.2 Billion in fees charged to their customers, such as over-limit fees and late fees.

If you’re a consumer contributing to these ridiculous profits through high interest credit card debt, and you’re struggling to meet your monthly financial obligations, it’s time to reassess your current situation. I recommend that you gather all of your credit card bills and carefully review each statement. You’ll want to determine exactly how much interest and/or fees are accruing on your accounts each month. After doing so, you should be able to have a clear understanding of whether or not you can realistically pay off these debts in a reasonable amount of time, and eliminate some of the interest you’re paying.

This task can be simplified by using a Credit Card Interest Rate Worksheet. By utilizing a worksheet you can clearly review your finances and determine if you’re being strangled by high interest. If you find that your current credit card debt is nearly impossible to pay off through regular monthly payments to your creditors, it’s time to seek help. The following solutions have helped many people to eliminate their debt:

• Debt Consolidation Loan
• Consumer Credit Counseling
• Debt Settlement
• Bankruptcy (Most people resort to bankruptcy only as a last resort, but it is an option)

It’s time to take action now so that you can realize a debt-free lifestyle and eliminate your concern and anxiety due to money concerns. I wish you the very best in your endeavor to eliminate debt and concern.

Marie Megge is a consultant in the credit services industry. Over the past several years she has assisted many individuals in resolving their debt-related matters. For more information regarding credit and debt visit http://www.donaldsonwilliams.com

Life is not predictable. Especially not when it comes to
your debt and your finances. It seems like every time you
get ahead, something unexpected comes up that puts you right
back where you started. So how do you get out of debt and
stay out of debt?

In order to get out of debt, while also building a nice
safety net so you can stay out of debt, you need to get
a handle on the basics of money management. This is absolutely
crucial to your debt relief. Unfortunately, none of this is
taught in school, although it should be. It would be a big
help to millions of people. Most of us don’t learn anything
about handling money until we already in debt.

* Using a Budget

I know, you’ve heard this one before. And, like trying to
count calories, it’s not something many people can stick to
for any length of time. That’s because most people go about
it in a way that isn’t conducive to long term success. I
happen to agree with David Bach, author of The Automatic
Millionaire. David says you shouldn’t use a budget.

I know, I know, this subhead of this tip is Using A Budget.
Maybe it should be using a budget with a twist. In this
budgeting technique, we’re not going to count every penny
we spend. Instead, we are going to pay ourselves first, pay
our bills, and then anything left over can be spent anyway
you please and you don’t have to track every last penny.

If you have a lot of debt, you’ll want to focus on your debt
relief before saving for longer term goals like retirement.
This is because your debt, especially with higher interest
credit cards, is going to cost more than you will make if you
save that money.

Once you pay down your debt, begin paying yourself first by
putting a certain percentage away in a retirement savings
account, then pay your monthly bills such as mortgage, utilities,
etc. The rest is for you to do with however you please.

As your financial situation improves, consider increasing the
percentage of your income that you pay yourself. You may be
only able to say 10% of your income when you start but you’ll
want to consider increasing that percentage as much as you
can.

* Setting Financial Goals

To paraphase hockey legend Wayne Gretzky, you miss all the goals
you don’t set. You need to know where you are going in order to
get there. And your financial goals will help determine how much
you pay yourself first. If you want to retire at age 50, and live
off the same income you currently make, you won’t be able to do it
by saving 10% of your income each year.

Set financial goals. Determine what you want your financial future
to look like, and how much money you’ll need to make that happen.
This will help you figure out how much you need to save in the
present.

* Building A Cash Reserve aka Your Safety Net

What’s next after you’ve climbed out of debt? Build a cash safety
net so you don’t slip back into debt, the way dieters put back all
the pounds they lose if they aren’t careful. Building up a cash
reserve will prevent you from piling up debt when unexpected
emergency expenses occur. How much should you have in your cash
reserve?

A good rule of thumb is 3 to 6 months of your expenses
but ultimately it will be decided by what makes you comfortable.
For some people, that may be a full year’s worth of expenses.
This could be true for a lot of people that were deep in debt
and living paycheck to paycheck. They experienced the horrible
stress of such a situation and never want it to happen again.

Learn more about how to debt management with Freddie Johnson’s free articles on debt relief, debt consolidation and credit tips at http://www.mydebtconsolidationtips.com

There are several steps you will want to take in order to insure you have contacted the debt management corporation that will best suit your needs. You want a company that will be able to handle your situation reasonably.

Most importantly, you will want to make sure that you are contacting a legitimate debt management corporation. There are many people that are willing and able to take advantage of anyone who comes there way. You will want to check with the company to see what they do, as well as check the Better Business Bureau who keeps ratings on most companies. You will want to find one that offers the services you want as well as one that is in good standing in the business community.

If there is anything that makes you uncomfortable in your interaction with the specific agency, find another one. You do not want to entrust your money to someone that you do not trust. Beware of any corporation that appears to be pushing to sign up for their plan or who will not take the time to answer all of your questions.

You will also want to make sure that you are doing business with a company that will be able to handle all of your unsecured debt. Make sure that the debt management plan that you sign up meets your specific needs and covers all of your creditors.

Your credit counselor should be able to provide honest answers. Most importantly, you should have realistic expectations about the level of debt relief that you should experience based on your situation. Otherwise, if it sounds too good to be true, it probably is. Legitimate debt management corporations hire and train capable and experienced counselors that will take the time to work with you. They will want to ensure that you are committed to the process and really want to escape from debt.

Once you have signed up for a debt management plan, check that the corporation is doing what they had promised that they would. Check you statements to see if the correct payments are being applied. If you have any questions or if the payment is the incorrect amount or missing, check with the debt management corporation immediately.

Be careful to ensure that you are seeking help from a reliable source, but then rest assured that you are on the path to financial peace.

Ronnica Rothe graduated Magna Cum Laude from the University of Oklahoma. She is currently enrolled at Southeastern Seminary in Wake Forest, NC.

She is a regular contributor to educational information disseminated through Personal Financial Network. PFNI helps provide debt relief through lower credit card interest rates typically provided through their debt management plan.