Tips to Be Debt Free, Part 1

It seems like Debt is something many of us, including those all around the world, struggle with.

As a result, we often want to know how to be debt free.

Nowadays, you can’t afford to just buy things will nilly, and sometimes you may have to use a credit card or get a loan. But if the unexpected happens and you’re not able to pay back those debts, you can find yourself in an out of control, downward spiral.

Many’s the time you might find yourself in more debt than you can handle because of an unexpected illness, or time away from work or even an unexpected household repair or a water heater than just expired two seconds before you were to take your shower.

Such calamities might require you to use your credit card and as a result put you in a position with more debt than you can reasonably handle.

There are many options available to you such as debt counseling services, debt consolidation and even bankruptcy. But before you do anything that drastic, take some time to try to fix your debt situation on your own.

It is possible, even without adding income, to pay off your debt.

It will take time, though, and it will take discipline but if you are committed to living a life without any debt you can do it.

Now, and tomorrow, I’ll discuss some tips to help you become debt free.

Here are a few tips to help you get rid of

1) Make yourself a detailed list of all your debt. Add everything; even the smallest of debts should be added to this list. Your list should include your monthly household bills (such as house payments, insurance, utility bills, etc etc etc) in one column and your debt in another column.

Come back tomorrow to pick up the remaining two tips. In the meantime, you can start making your list now, as mentioned above.

Yours in working to keep debt free,

P.S. You can read more tips on debt consolidation and keeping debt free here

3 In 1 Credit Report

- Getting A Copy Of Your Credit Report And Seeing What Needs To Be Improved

If you are concerned about identify theft or regular credit monitoring, you likely understand the importance of obtaining a copy of your free personal credit report.

And if not, come to our house; my husband regularly monitors his numbers and his report!

So, heed this! Neglecting to monitor your credit may prove damaging in the long run. It does not take long for a person to access your information and begin opening accounts in your name. For this matter, consumers are advised to obtain a 3 in 1 credit report every six months.

Benefits of a Credit Report

Aside from protecting yourself against identify theft, credit monitoring is essential for improving your credit rating. Although lenders use credit reports to judge a loan applicant’s creditworthiness, credit reports are also beneficial because they keep us informed of our credit standing. Thus, we can know our odds of obtaining a home loan, auto loan, etc.

Further, in recent years, employers are also using credit reports to determine an applicant’s “suitability” for employment.

How to Get a Copy of Your Credit Report

Getting a copy of your 3 in 1 credit report is simple. Furthermore, because reports are viewable online, there is no valid reason not to check your report at least once annually. Every city across the country has a local credit agency that will issue copies of your credit report from all three bureaus. However, if you prefer the convenience of the internet, there are various Web sites that offer 3 in 1 reports for a small fee.

But even better, one of the local credit unions to which I belong included in this month’s newsletter that we are able to obtain our credit report from them for free once a year. So, if you belong to one, you might want to check with your local credit union to see if they also provide that service.

In the meantime, to obtain a copy of your personal reports, you must provide information such as name, address, social security number, etc. Once your information is verified, credit reports are either sent via email, or viewable from the Web site. Your entire credit history will show before your eyes.

Why Obtain Copies of a 3 in 1 Credit Report?

If you are hoping to improve your credit rating, obtaining a 3 in 1 credit report should be the first step you take. This way, you know exactly what needs improving. The report will list all creditors, current balances, and you account standing. Moreover, you should review your report for errors. If inaccuracies are present, contact the bureau and discuss how to correct the matter.

In addition, credit reports include a credit score. This 3 digit number carries a lot of weight. Low scores indicate bad credit, whereas high scores equal good credit. If the goal is to improve credit score, it may be wise to improve in certain areas. For example, avoid late or skipped payments, reduce debt to income ratio, settle collection accounts, and limit your number of credit inquiries.

Yours in getting your credit report,

Sudden Debt…What to do, what to do

If you read the “public record” in your daily/weekly newspaper as frequently as I do, you’ve probably seen how more and more of your friends, neighbors and local residents are having to resort to “bankruptcy” proceedings. Perhaps you’re in that group, too. Such a time, causes food for thought…

Sudden debt can crash unexpectedly into the lives of almost any of us at any time.

We can be going along through life quite happily–and then bang! Without warning we find ourselves in debt and it’s well… so sudden!

Debt is also something that many of us have been told since childhood is a bad thing! In fact, there was quite a stigma attached to it-it was almost like having a “Scarlet Letter” carved into your forehead.

And that just adds to your woes.

Here you are, unexpectedly in a traumatic situation and you get hit by the double whammy of sudden debt; not to mention the guilt!

If you think it will never happen to you don’t be too sure.

For instance, think of something as simple as an accident. It doesn’t even have to be your fault; you are unexpectedly hospitalized for a couple of months. Do you think while you’re laid up there in your hospital bed it’s just possible that making the payment for your credit card bill might be forgotten?

And what happens when you forget to make one or two of your monthly credit payments?

Those nice friendly guys at the loan company who so recently as last month wanted to increase your credit card limit now turn into Don Corleone and the boys from Mob! They start to slap on late charges and the horrendous interest now starts to attract interest on itself and, and…

Well, you get the picture.

So what do you do when you find yourself facing sudden debt?

The first thing is not to panic. Easy enough to say, I know, but panic really isn’t going to help. Just stop and think of a plan of action.

Before you do anything else at all, contact the companies to whom you owe the money. Explain the situation you’ve found yourself in and ask what they can do to help. Some, not all, but some companies will freeze the interest, especially if you’ve always had a triple A credit rating in the past.

And a worst case scenario? Assume your creditors aren’t helpful. If you find that is the case then start to look at some options.

Although not the most ideal consideration, do you have a family member that can lend you the cash to pay off what you owe? With payback of interest included, of course! If not, what about your bank? Ask them for a loan that you can repay over a period of time with which you feel comfortable. That way you can begin to gradually get back some control which will allow you to begin to chip away at that sudden debt. And you’ll be able to feel a lot better about the situation and yourself, as well.

Yours in deciding the best ways to handle sudden debt,

Beat the Credit Card Blues: 5 Super Strategies For Breaking Dangerous Spending Habits

Since we’re coming into the last quarter of the year and Christmas buying is just around the corner, it may be time to review our credit standing. Particularly, since we know that many of us consumers continue to struggle to get out from under our credit debt.

In fact, the average American is carrying almost $2,500 in credit debt each month. These financial consequences can be critical, and long lasting.

But think about this for a minute. For a consumer paying only the minimum payment of $50 a month on a $2,500 credit card bill, (at the average 16-percent interest,) they are paying off a mere $10 of principal. There’s another $40 being added on in interest EVERY MONTH. So in only one year of paying minimums, they still owe $2,380. Now imagine if the credit bill is $15,000 or more…the word dangerous is certainly appropriate.

Want to do things differently?

Want to put your debt on a diet? Try these five super strategies and break your dangerous spending habits today:

1. Step away from the counter. Give yourself a time-out when you feel the temptation to make a purchase. For an item over $100, put it on hold, and leave the store. Let the idea sit for 24 hours, and then ask yourself whether you really need the item: the answer is likely “no.” For clothing and other purchases, put the item on the 10-minute hold rack. Walk away, get a drink or a snack and decide if you really need it or just impulsively like it.

2. Set goals. Decide how quickly you want to reduce your debt, and how much you can afford to pay down each month–but don’t stop there. Set financial goals that involve “positive” incentives, too, such as savings and vacations.

3. Start canceling cards. How many credit cards do you really need?
Most people need at least one to handle payments that can’t be made easily any other way–and you may need two, depending on where you usually shop or travel and which card is accepted.

4. Lower your limits. Save yourself the grief of overspending and not being able to afford it. Most people don’t know that you don’t have to accept the maximum credit limit that your issuer is willing to provide. Choose the limit that you’re comfortable with, and tell your credit card issuer – in writing – that you don’t want any automatic increases. That way you stay within your budget.

5. Consolidate. If you’re dealing with several cards with debt, look for a financial institution and apply for a consolidation loan. A loan such as this, at a competitive lower rate, will allow you to make one convenient monthly payment that is far lower than your various cards and will give you a fresh start.

While the inclination might be to cancel all of your credit cards once and for all, the credit card, managed sensibly, is a opportunity to show establish good credit.

And when in good hands, they aren’t all bad!

Yours in consolidating,”

Movin’ and Mixin’ It Up

If you’re like me, you either know someone who’s struggled with being overweight, you’ve been there yourself or you’ve spent a lot of trying to find a way to add exercise into your daily, or at least weekly, routine.

As you know, obesity is one of the most dangerous conditions one can have.

Further, obesity affects over 40% of the entire US population and the problem is spreading to other parts of the world. This is because we live in a society where there is little time to exercise. We also compound the problem by eating high calorie diets and do little or no exercise.

Obesity is termed as a condition where the body accumulates more fat than it actually needs thereby creating a health risk.

Obesity is measured in what is called BMI or the body mass index which is the amount of weight in relation to height. A BMI of 25 or more is considered overweight.

Obesity may appear like a trivial thing but it actually kills close to half a million people in the US alone. But many people have become determined that in the year 2009, they will lose the extra weight and be on their way to a leaner and healthier body.

But what exercises can one undertake to burn fat

One of the best exercises to burn fat is walking. This means that one need not necessarily enroll in a gym. Walking can be done by round the block, along the road or just make it a habit to walk for short distances instead of driving. For those who live in the country this can be an extra time out to meditate and even clear your mind, not to mention that it can be good for sightseeing.

Another exercise that is related to walking is jogging.

So, get good running shoes and make it a habit to jog just half a mile every morning. And if you live in the country, this can be an ideal way to clear your mind in readiness for the day. If you are an older person, it’s probably best to consult with your doctor before you begin.

Enrolling in a gym is also another way you can lose weight easily.

Exercises such as bench presses can work mightily in helping you shed those excess pounds especially because in a gym there are others like yourself that can motivate you.

If you have belly fat issues, which are almost always the case when someone is struggling with obesity, simple daily sit ups can go a long way to ensure you lose those pounds. This, coupled by good eating habits, can put you well on your way to shrinking your belly and lose fat.

It is recommended that before you do some of these exercises, you consult your doctor or chiropractor because some people might have bone structure issues, especially if one is struggling with arthritis.

Another one of the best exercises to lose weight is to go to a sports store and purchase an exercise machine.

In many of these stores there are capable staff that can help you with any questions you might have and help you make the purchase for the exact machine you need.

Or, you can simply go here —->>>> online to pick from one of the many FITNESS selections.

Yours in your movin’ and your groovin’

A Step or Two Toward Creating Good Credit

There are many things you learned “at your mother’s knee” or in your early years in school as you were growing up. One of those might have been how to take care of your money.

Those little “piggy banks” had a place in your life for something.

So now, all grown up, as a consumer you’ve continued your learning about the importance of establishing a good credit rating with your lenders. Whether you are shopping for a new home or auto, or searching for the best deals on insurance, your credit worthiness will be judged by your credit rating or credit score.

A bad credit history or bad credit habits will place “black marks” on your credit profile. These include things such as late payments, having an account assigned to a collection agency, and of course bankruptcy.

Establishing good credit habits and therefore a good credit rating will improve your credit worthiness. This will be reflected in potential lenders offering you substantially lower interest rates and better deals on credit offers.

Here are 4 tips to help you create a shining credit profile:

1) Pay Your Bills On Time

Lenders only have your past payment history on which to decide the type of credit risk you present to them. How you pay off your debts now indicates to them how you will pay off future debts.

2) Don’t Use Too Many or Too Few Credit Cards

How much is too much ? How little is too little ? Many credit experts and financial planners suggest two to four credit cards is just the right mix.

3) Pay At Least The Minimum Due

Always pay at least the minimum due payment, but never less. And remember, just paying the minimum payment means it will take you years and years to pay off that credit card.

Example: Paying off a $2,000 credit payment at 18% APR with a minimum monthly payment of 2% ($40 dollars or less) will take you 30 years to pay off the amount plus interest.

4) Review Your Credit Report Regularly

Monitor your credit report from all three major credit bureaus – Experian, TransUnion, and Equifax – on a regular basis. Check your credit profile at least annually. Review it carefully and make sure that any past mistakes or disputes have been corrected.

Also, if you notice an account listed that you know that you have not personally opened, contact that creditor and the credit bureaus immediately. This could be a sign that you’ve had your identity stolen.

Request to have a fraud alert placed on your profile and account to protect yourself and your credit. Identity theft is the fastest growing consumer crime in America, with an estimated 1 million people victimized each year.

Establish good credit habits early in life and reap the benefits that your good credit rating will provide you for the rest of your financial future.

Stress Breakers

Do you go with the flow?

Or does anxiety keep you on edge, holding you away from enjoying life? To a great degree, our personality determines how we deal with the stress in our lives. But I have some things to help you keep your stress under control:

Today and tomorrow, I’ll post five very popular suggestions:

1. Sleep more. It’s very common in our society to “exist” on less than 6 hours of sleep a night! And that’s about what it is, when it’s less than 6 hours!

But experts keep saying we need at least 8 hours! Not just to rest our bodies, but to rejuvenate our minds. “Tired” and “cranky” seem to go hand in hand. Don’t use your bedroom to watch the news or finish up some work from the office. Make that room your haven, a place to relax and escape the day. Have a hot cup of tea, take a warm bath, or read a paperback to help you unwind.

2. Have faith. Saying a short prayer in times of stress can give you a sense of calm, especially when the situation is one you really have no control over.

Studies have shown that people who trust in a higher power have lower blood pressure. Being able to forgive people can also affect your blood pressure.

Holding a grudge is not good for your health!

Just watch the daily news for testimony!

Now, so as to not cause more undue stress, I invite you to stop back here tomorrow to read the rest of our tips for “busting” stress!.

And in the meantime, “practice, practice” today’s tips.

Is there a blog in your future

There is, if you click on the links in this blog post.

Here’s the great news!

My friend, Traci Knoppe at Genesis Blogging is launching a “Beginning Blogger” 4week e-course Monday, June 1, 2009.

This is a great opportunity for you to learn how to blog.

Before Bankruptcy, Try These

If you’ve been reading the newspaper or watching the news in recent weeks, you know more and more people are losing their jobs, others are faced with having to take bankruptcy.

Perhaps you’re one of them!

If you currently have unbearable debts and are thinking of wiping them from your life by declaring bankruptcy, just hold off on your decision for a while.

Other options may be available.

Try to improve your situation before you investigate the bankruptcy option. And no matter which way you go, evaluate the 5 steps below to see if you could avoid taking that drastic step.

1. Make a list of all your debts

First, look at all your secured debts, such as mortgage and car loan. How much is the repayment for each month? What are the interest rates?

Then, list all of your fixed expenses, such as electric/gas, phone, insurance, food, etc. What are the total costs for these expenses?

Follow these expenses by examining your credit card debts. Take out all your credit card statements, and write down the amount you owe for each card and the interest rate.

Finally, write down all your other expandable expenses; these are your optional expenses such as entertainment, gym, memberships, dinners at restaurant, and other impulsive purchases.

2. Eliminate the unnecessary expenses

Now you should have a better idea where your money goes. Make a diet plan on your cash; In your Cash Diet Plan, list all your savings from the elimination of the optional expenses. You will be surprised how much money you can save by carefully controlling your expenses. The money you save can be used to pay down your debts.

3. Involve your family by working as a team

Don't do it alone because under such stressful conditions, you may be out of control and may not think and plan with a clear mind; get your family together to let them know about your financial problem, and have them work together to control the household spending and to eliminate unnecessary expenses.

4. Cash out with your assets

If you have equity, you are in a better situation because you could refinance or get a secured loan to pay off your debts. If you are looking for bankruptcy as your debt relief option, you may not have any equity at hand. But equity is not the only asset; many people tend to forget about things that have cash value, but not sentimental value. Think antiques, old clothes or collectibles.

List all the assets you own that you can sell and cash out.

Check your closets, the garage, and storage locker. Find out what you can live without. Then, cash them out through garage sales, eBay or consignment shops. Use the money to pay down your debts as much as possible.

5. Go for consumer counseling

Arrange an appointment with a credit counseling agency and let the counselor draft a budget for you. Review the debt management plan proposed for you before you enroll in the plan.

If possible, contact one or two other credit counseling agencies for comparison. Choose the one that best suits your current financial needs. Although a debt-management plan can have a negative impact on your credit, it's better than bankruptcy.

6. Get A second or part time job

Utilize your out-of-work time on a second, or part-time, job. Although you may not earn much in your part-time job, a little money coming in can keep a bad financial situation from getting worse.

7. Summary

Bankruptcy may seem like your easy way out from debt, but the consequences may follow you for 7 to 10 years. Always look for other alternatives and counsel before choosing this dramatic option.

OIVAC News

If you read here regularly, you know we’ve recently posted often about the upcoming Online International Virtual Assistants Convention (OIVAC)

Unfortunately, today we are relaying a bit of unfortunate news regarding status of this month’s Convention.

The Steering Committee of the OIVAC has made the decision to postpone the Online International Virtual Assistants Convention (OIVAC) until October, as this year we have not received the same high level of registrations as previously experienced. As we can see no logical reason for this, we are putting it down as yet another statistic of the economy.

The new date for the convention is 1 – 3 October, 2009, and we will continue to market the event during the coming months to ensure increased attendance is achieved.

We will not let the economy damper deter our efforts to recognize VAs and the celebration of our contributions to businesses located around the world. As a result, we will conduct the International Virtual Assistants Day (IVAD) celebration, on Friday, May 15, 2009, at 5:00 p.m. EDT, as previously planned. This is OUR annual day of recognition, and we encourage VAs from around the globe to continue to participate in this celebration.

The Thomas Leonard Virtual Assistant of Distinction and Janet Jordan Award winners will be announced, and we will be providing tons of FREE giveaways to attendees.

The link to the meeting room for this gala event will be distributed next week. So please mark your calendars and plan to attend.

In addition, we will host several FREE pre-event activities between now and October, so look for future announcements about these dates.

Thanks again for supporting us and we are sorry for the inconvenience. Having said that, we are extremely excited to now be working towards a more positive and energetic convention in October once the “doom and gloom” of the economy has eased.

Kind regards,

Sharon Williams
and the OIVAC Steering Committee