Tips to Be Debt Free, Part 2

This post is a continuation from the one that began yesterday.

2) Make a very detailed budget for all your monthly expenses. Be sure to have enough so you are able to make at least the minimum payments on all of your debt.

3) From the lists above pick the smallest debt as your target. Pay as much towards this debt as you can without cutting payments on your other debts.

Once you manage to pay off this debt completely, take that money and apply it to the next smallest debt. Keep doing this again and again until your debt is all paid off. Doing this will allow you to pay off all your debt, even if you can’t get extra money coming in.

This method works, it just takes discipline. You’ll have to make sacrifices if you want to be debt free. That means making a reasonable budget and sticking to it.

But if you stay disciplined, and keep at it, you will eventually find yourself out of debt, which will bring you peace of mind and will make all the sacrifices seem worthwhile.

Yours in working to keep debt free,

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

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

Tips To Help Reduce Your Debt, Part 2

In yesterday’s post, I provided several “tips for reducing debt” and said I’d be back today with a few more. Well, it’s “today”, so here they are.

Get rid of your credit cards

If you are determined to reduce your debt, cutting up your credit cards will help. If you do not have them, you can not use them. If this is too big of a move for you, at least think about getting rid of the unnecessary ones. Keeping only one or two, low interest rate cards for emergencies only, is a good idea. Remember if you cannot pay cash for something, then you probably do not need it.

Pay off your debts

If you have already acquired some debt you need to pay off, now is the time to get started. Decide which debt is your smallest and start with that one. Pay on it as your budget will allow.

Once your smallest debt is paid off, you will have a good feeling of satisfaction and accomplishment. You’ll feel empowered because you’ll know you can pay off your debts. Then move to the next smallest debt. It is easier to pay them off one by one, and you don’t feel overwhelmed. And before you know it, all of your debts will be paid and you will feel great knowing you paid them off.

Debt consolidation

Debt consolidation is another option to look at for reducing your debt. Debt consolidation companies, will call your creditors for you, and make payment arrangements for your debts. In fact, many companies will get you one, low, monthly payment to pay each month, until all of your debt is paid off. This, too, will make managing your funds versus your debts much easier.

Financial counseling

Make an appointment with a financial counselor to help you reduce your debt. Some people find that it helps tremendously to have someone else point out the errors in their spending habits. You’ll also find that financial counselors are able to show you how to better manage your money, and how to stick to a budget.

Yours in figuring it all out,

Tips To Help Reduce Your Debt

Reducing your debt probably isn’t your most favorite thought, but with the times as they are now, it’s important that you pay closer attention to where your money goes.

So, I’ve located a series of tips for reducing debt that might be of interest…and I’m adding them here. Tomorrow, I’ll post a few more.

As debt continues to increase in many households across America, more families each year are finding themselves looking for ways to reduce their overall household debt.

For some, this may be easier said than done. Debt reduction requires a lot of hard work and dedication. Especially when you are used to spending money left and right.

Those that are serious and committed to reducing their debt will eventually reap the rewards of being debt free. Reading the following simple tips (today and tomorrow) will give you many ideas on how you can reduce your debt.

Cut back
When you start to cut back on spending, you will find corners that you can cut throughout the month to help you pay off your debts. Simple things, such as:

a) Being aware of all of the electricity you use, and
b) Turning off lights that are not needed as you leave a room

will help reduce your light bill. Therefore, you save a little more money to reduce your debt with. Once you become aware of your spending habits, and start cutting back, you will start to notice more ways to cut back each month.

Budget
Budget your income. List all of your monthly bills and their due dates.

Apply them to your budget, as well as other household needs, for example, groceries, gas etc.

Allow yourself only so much money per month to spend on extras. Sticking to your budget will show self-control, and determination for reducing your debt.

Limit the use of your Credit cards
If you cannot pay cash for it, then do not buy it. If you have to charge something, make sure you can pay the balance in full when your next credit card bill comes in.

Never charge on your credit card to only pay the minimum monthly amount.

You will never get that maxed out credit card paid off that way. The importance of paying your credit card balance in full, cannot be stressed enough.

Stop back tomorrow; I’ll have a few more tips to help you reduce your debt.

Yours in figuring it all out,

P.S. In the meantime, you might want to swing over to my blog, As Long As You’re Here to read tips about Internet Marketing. Or perhaps a brief swing to Lynn Terry’s “Self-Starters Weekly Tips” membership site will interest you.

3 Red Flags On Debt Consolidation Services Online

Often on the heels of the “New Year” come all sorts of new or “revised” Resolutions and additional debt from Christmas overboard. Or just from unexpected cutbacks in your income.

As a result, many of us may be less than friendly to the postal delivery person. With their appearance, we’re swamped with credit cards bills and maybe monthly statements from our auto loan company.

So what’s a body to do when we’re overwhelmed with the additional expense and know full well we can’t quite stretch the income that month?

Some of us will consider a Debt Consolidation Service to help us regain control. Actually, it’s a good idea to do so because the debt consolidation service will work with you and your credit company to get your interest rates and monthly payment to a lower expenditure.

A Debt Consolidation service will also act on your behalf as an intermediary for you with the credit lender. Sounds pretty good, doesn’t it?

In theory, yes!

It can be a great solution. However, choosing a Debt Consolidation Service must be done with careful thought and consideration. Particularly because, unfortunately, there are some deceitful and devious people in the online community.

So that means you’ll want to pay attention to and watch out for scammers when you’re searching for a Debt Consolidation Service online.

Red flags = disreputable Online Debt Consolidation Service

Huge and unreasonable fees

Some companies charge $100 just to review your account, and they may “couch” the fee by describing it as a “credit analysis”. Then there are those that offer an “educational program”, which consists mostly of free forms, letters and information gathered from other Internet Web sites!

Their cost to you for the “free” forms they gathered from the web? Could be as high as $1,500! So, word of caution; be wary of any company that pushes for up-front payment before you receive any type of service or materials.

Sound too good to be true – run away

When you hear things like “Your monthly payment will be half of what you’re currently paying!” “We’ll get your interest rate slashed to zero percent!” “You’ll be paying less in just two weeks!”, you might want to make a bee-line as far away from this pitch as you get. Or, put them on “ignore” because they’re rarely true.

None of us is a miracle worker…so write off quick fixes right now. Any solutions will definitely take longer than two weeks. In fact, when you use debt consolidation, you ought to expect at least a month, if not longer, before you can see a difference in your finances.

If you think about it…billing periods for most companies are 30 days so it would be at least that long to notice a difference.

Who initiated the contact?

What is your junk mail or caller ID quotient? Usually, any company that sends out SPAM, makes cold calls to you at home, or fills up your mail box with “junk”, is fishing for something and most likely, it’s a fee. And worthy of a double take from you before you make a decision.

Further, if you’re in doubt about the authenticity of a Deb Counseling Service, make a call to the Better business Bureau. Which ought to help to allay any concerns you might have about the company.

You could also make it a point to chat with family and friends to see if they have any knowledge about the service you’re considering.

Knowing there is efficient, reliable assistance online for debt negotiating, and how to find it, ought to also alleviate some of the concerns that come along when facing unexpected bills and debt collectors.

You can see so for yourself here.