Debt Busters 101

2010-03-11T03:58:00.001-08:00

Credit Card Debt Relief - A Solution to Your Credit Card Debt!

2010-03-11T03:40:00.000-08:00

Credit Card Debt Relief - A Solution to Your Credit Card Debt!By Steven Waldron

Considering that the economy is currently in free fall, it really shouldn't shock you that a growing number of people are searching for help with consumer credit card debt relief. It's a sad fact that most of us are just basically surviving because of our credit card usage during these tough economic times. With the economic system going downhill, most people now have little choice but to use their cards for the basic necessities such as food and their bills.

But, before you know it, your line of credit is gone and you know what comes next? You got it! Your card is now maxed out, you can no longer use it, and now you will be expected to repay all that you have spent on it. Simply put, it feels like you're still having to pay for a mortgage on a home that you've just had repossessed! It's not really surprising that people soon begin to have problems with these repayments because most of the income they earn just covers their everyday basic living costs. If you happen to be in a similar predicament, you're not alone!

It's at this point, that many people will examine what options are available to them as they desperately search for some credit card debt relief. More often than not, bankruptcy is one of the first options that people will look into. However, many will soon depart from that idea when they consider the long term damage that bankruptcy will do to their credit rating. Believe me, if you ever want to lend money in the future for a car or a mortgage; any lender seeing you have a bankruptcy will often refuse you any money.

What's The Easiest Way to Receive Credit Card Debt Relief?

The best option available to you is to negotiate with them. Yes, you heard correctly, negotiate; talk with them! However, whilst this may sound easy enough, these credit card companies aren't easy to deal with. It's vital that you do this the right way, be prepared and learn what is required to get the process started.

Firstly, let me just say that credit card companies usually will not be willing to negotiate something of this importance to you, just an individual person. You see, the company's collectors just haven't been trained to do anything but to get the money owed to them. If you approach them for any kind of settlement agreement, they will probably just end up being rude towards you.

What a lot of people fail to understand, is the fact that nearly every credit card company will contain a department that has been setup especially to negotiate and help with your debt and late repayments. This is great news for us! But, unfortunately, as an individual client, it's unlikely we'll ever get a chance to meet with them. For this reason, it's helpful if we have a 3rd party ready to step in for us.

You'll find that there are plenty of third party institutions available who can act on your behalf and a large number of them act on a non profit basis. These people are trained in consumer credit card debt relief, and will work on your behalf with your credit card company. In the majority of circumstances, you won't be charged any money upfront, although a few will set in place a small monthly charge (typically a couple of dollars) to keep your account in order as they deal as your representatives against your creditors.

Most of the time, they will be in a position to negotiate drastically reduced payments for you and also reduce the interest rates in line with your present income level. You'll find that your credit card company will tend to be more agreeable dealing with your representatives because they happen to be non profit. This means that any 'deal' they make with your representatives usually means a tax write off for them. This is why they won't work with you as an individual; it costs them more money without the write off!

I hope you can clearly see the importance of allowing some sort of third party organization to help you with credit card debt relief as there are many advantages. At this point you've nothing really left to lose, but a lot to be gained! Hence, if you find yourself in such a desperate financial position and your credit rating is disappearing; get the help you need from the professionals trained for these circumstances, Now! It honestly is the most effective way to bring some debt relief into your life.

If you're struggling and need Credit Card Debt Relief. Just Click Here to get started!

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Credit Card Debt Help From Government - Is it Real?

2010-02-11T05:15:00.001-08:00

Credit Card Debt Help From Government - Is it ReaBy Hector Milla

With so many government programs being passed in recent months, it's quite likely that you've started to hear about credit card debt help from the government. However, you may be wondering if it is real. People who are in significant debt have probably received solicitations encouraging them to use a particular debt relief program. What exactly is being offered and can it help your situation?

The Scoop on Government Programs

There are definitely government sponsored programs that are being put into place to help Americans get out of debt. While you can probably feel confident that these systems will do what they claim for the average user, they really don't offer a lot more than what you can do for yourself. By calling your credit card companies yourself, you can usually receive an offer to settle credit card debt for about 40% of what you owe. Because there is no middle man, you will not have to pay any fees or accompanying costs. With government options, they will take their cut like any other company would.

Is It Any Different Than Other Settlement Programs?

Using a government sponsored program doesn't really offer you any advantages over standard debt settlement companies. The creditors are being encouraged to balance books in any way that they can and they will talk with the settlement company of your choice just as readily as a government agency. Also, most consumers are well aware that the government isn't known for efficiency. A dedicated business, on the other hand, can not function unless it does things right.

What Other Help is There?

Besides using a credit card debt help that is directly sponsored by the government, there are several hidden advantages to the central involvement in financial affairs. First, because of bail out plans, every creditor has a distinct incentive to cut you a deal by the government's encouragement. There also may be grants that are available that can be used to pay off consumer debt. However, they aren't listed as such and you'll need to search deep to find those opportunities. Finally, the government is attempting to invest in the economy and create jobs and that may lead to less consumer debt overall, if the plan is effective.

What Can I Do On My Own?

The good news is that you aren't at all limited to the options that are being put forth by the federal government. You can still create and implement your own plan. This may include using your own middle man to negotiate payments and settlements. With enough persistence, you can also deal directly with the credit card companies and get good results from those efforts.

There are definitely real options that the government is offering for credit card debt help. However, they aren't necessarily better or more lucrative than other readily available methods that you can take advantage of.

NOTE: by researching and comparing the best credit card debt settlement services in the market, you will determine the one meeting your specific financial situation. Specialized advise from a reputable debt counselor is always suggested.

Hector Milla runs the Credit Card Debt Free website - where you can see his best rated credit card debt settlement and debt consolidation service.

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Best Debt Relief Options for 2010

2010-02-03T17:52:00.001-08:00

The following is a good article looking at some of the best debt relief options available to debt busters for 2010:

Debt Relief - What Are the Best Debt Relief Options For 2010?

By Matt Rayan

What would be the best debt relief options for 2010? It seems that the 2010 will be a lucky year for all those, who are seeking debt relief. There are several ways of getting rid of the mess, which has disturbed your financial position. Credit card debt is one of the most common ones and it is being expected that this year, then number of people, who will fail to pay their outstanding bills, will be increased.

Keeping in mind the sluggish and weak financial situation of both, the creditors and debtors, there are several workable ways and methods, which have been figured out for the current year, which will help people to pay off their liabilities and the creditors will also be able to recover their money. If you are really looking forward to protect yourself from being filed bankrupt, then you should start taking care and note down your financial activities. The next important thing is to go for debt relief. All you have to do is to show some kind of sensible behavior, while you are spending and try to set goal for this year.

Make a list of your outstanding payments and make the list on the base of preferences. All you have to do is to go and talk to your creditor and tell him that you are going through financial crises. He will definitely understand your problem and will design a payment plan for you, depending upon your budget. In this way, you will start paying off your bills, in small installments. You can possibly get 50% waive off. Another attractive option seems to be quite workable and justifiable.

You can involve a third party, which will take the responsibility of taking you out of the mess of debt. There are several debt consolidation companies, which are ready to help you, in the most amicable way. By involving any of such companies, you will get debt relief and will not be bothered by irritating and annoying calls of your creditor. You will start paying small installments to the third party and the interest rate will be fairly less.

Anyone of you can take help from such companies, but all you have to do is to provide the possession of any of your assets, which should be equal to the amount, which you are liable to pay. It is just to provide assurance to the third party that if you get failed in paying the installments due to any of the financial crises, then at least the debt settlement company will have something in hand, which can be sold, in order to recover the remaining amount. These ways are being considered as highly efficient ways to get debt relief.

If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.

Debt Reduction Advice

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Debt Busters Top 7 Ways to Reduce Debt Quickly

2010-01-25T04:14:00.000-08:00

1) Know Exactly What You Owe

If you don't know exactly what you owe to all creditors, it's hard to produce an exact plan to reduce your debt. Write down every debt and bill you have owing.

If you are able to, check your statements and work out the rate of interest you are charged by each company on the owing balance.

2) What is Your Income?

Beneath your list of owed debts, write down all money that comes into your hands every week or every month. Once most folks view these amounts written down in black and white, it is easier to check whether credit is eroding your earnings.

Whenever there's not much left of your income after subtracting your credit card and loan repayments, it's time to eliminate that debt!

3) Negotiate For Lower Rate of Interest

Remember, the banks need you as much as you need them!

Have a look at the interest charges you are paying every month. Notice how much of your income is taken by interest fees.

Contact your creditors and ask for a reduced rate of interest on your existing credit cards or loans. At first, they may decline, but hold firm and explain that you may be driven to refinance your debts with some other lender. They'd rather talk terms and lower your rates than see you go to a competitor. You may save yourself plenty of money in the process.

4) Say No To More Credit!

Seeking more credit while you're attempting to repair your current credit will just cause matters to worsen for you. Lenders consider your total debt amounts, so any more debt will simply reduce your credit score more. It's also crucial to stop charging up more items on your existing credit. Cease using credit when you're in credit repair mode.

5) Negotiate a Payment Plan

Contact your creditors and discuss a payment plan to assist you catch up on any past and overdue payments you owe. Ensure that the payment options you formulate with your creditors are realistic for your budget, so you do not miss any payments.

Wherever possible, attempt to construct your repayment plan so that payment is due at the same time you receive your income. It's simpler and easier for you to budget this way and you are less likely to miss a payment.

6) New Spending Habits Not the Old Bad Habits

If you are serious about reducing your debts, you now need to look closely at your spending habits. They caused this difficulty to begin with, so plainly what you were doing before isn't working for you. Don't continue behaving as you've always behaved.

Create fresh spending habits, keep an eye on your budget and be more mindful about your spending so you'll be able to avoid returning into the same financial difficulty again in the future.

7) Seek Professional Help

Regrettably, whenever you're attempting to reduce debt rapidly, you may have already got to a critical point in your financial outlook that can not be repaired easily. If this is you, maybe it's time to look for professional help.

Seek out a professional credit counselor, preferably one who is registered with the BBB, and, with their help, create a realistic budget to assist you out of your credit crisis.

Do not be embarrassed to ask for help. Instead, be proud that you’re taking responsibility for and action to reduce your level of debt.

Debt Busting and Credit Repair: Tips for Debt Busters

2010-01-23T04:50:00.000-08:00

Debt is a leading factor in determining your credit score.

If you hold excessive debt (or none at all) or if you experience difficulty paying back your debts promptly, your credit score will suffer. Maintaining your debts at moderate levels and paid up, on the other hand, will do more than just about anything else to improve your credit score. The following debt busting tips may help you boost your credit score:

Tip 1: Consolidate your debts to make repaying them easier

Having numerous loans and debt constitutes one of the greatest reasons to poor credit score.

The more numerous and bigger your debts are, the lousier your credit score can become. Furthermore, you'll probably find yourself with big monthly accounts that are troublesome, if not impossible, to pay back.

Consolidating your debts means that you combine them into one large loan to pay back all your creditors. You then only have one large loan to repay.

Although the total sum of the debt doesn't alter - if you owed $20,000 to 5 diverse lenders, you will still owe $20,000 but to only a single lender. The rates of interest and monthly payments are generally lower and this may make it much easier for you to meet your debt commitments.

Consolidating your debts may be a particularly sound option if you have many high-interest debts and lots of accounts that are difficult to track and maintain. A single lower monthly re-payment will be simpler to remember and will assist pay-bill-time become less stressful.

Tip 2: Pay off your debts by making bigger than required minimum payments

If you merely pay the minimal sum required for each one of your debts, it will take a long, extended time to repay your debts. This is because most lenders merely ask that you pay up slightly more than the interest sum on your debt each month. This way, even a debt of a couple of hundred dollars may require more years to repay and we won't even bring up the issue of interest paid!

Paying more than the minimum required monthly payment can assist you reduce your debts quicker leading to a possible boost in your credit score. Paying more than you need to suggests to lenders that you're in a sound financial condition and careful about your debts. Two characteristics that decidedly brand you an acceptable credit risk to lenders.

Tip 3: If you're looking for a new loan, look at committing to a larger down payment or deposit, which means you borrow less

By doing all you are able to to get a smaller loan - by paying a larger deposit or purchasing a less costly auto or home (if that's what the loan is for), you ensure that you don’t overstrain your credit and can assist secure lower, more reasonable, and affordable re-payments.

Tip 4: Avoid payday loans!

Payday loans, also known as “cash advance loans,” are micro and short-term loans that can pack a very high interest rate.

Payday loans may be useful in a genuine emergency, but the payday loans cycle can be seductive and addictive for some people. They can also become really expensive very rapidly and can, in fact, lower your credit score.

Tip 5: Don't use one debt to pay back another debt

Using one debt to pay back another leads in the piling up of interest and to possibly increasingly unpayable bills. Whenever you use one credit card to pay off another,you end up paying interest on interest. This can lead to a vicious cycle where you'll be forced to seek new credit and take on new debt to repay your rising debts. It is more good sense to get a 2nd job or negotiate a new and manageable re-payment plan.

Paying off one debt or many debts with a different debt might assist you in the short term - as you will not be recording late payments on your credit record.

However, in the long term, the larger debt burden will make preserving good credit increasingly hard. The sole exclusion to this rule is debt consolidation, where all your accounts are paid to the one creditor you owe money to.

As usual, you need to determine what are the best options and solutions for your current debt and credit status situation. Which means, take the bull by the horns and do your homework and make well informed decisions about your debt busting efforts and the strategies you need to apply to repair your credit.

Debt Busters Create Budgets: Budgeting is Essential to Busting Debt

2010-01-22T06:29:00.000-08:00

How to create a debt busters budget? Here are a few useful practical strategies to help you establish a budget or budget better:

Alter your beliefs about money. Shift your attitude from spending and towards saving money, planning ahead and aiming for success
Formulate a better awareness of how you bring in, deal with, save and spend money. Understand your relationship or your psychology around money
Become mindful of how others (Family, friends, advertisers, retailers, manufacturers, etc.) entice and lure you to spend your money
Stop playing the “Keep-up-with-the-Jones’s game,” and over straining yourself and financial resources, beyond your capabilities. Stop envying others and crave after things that they might have. If you can't afford it, it will only drive you deeper into debt just to keep up appearances. It is harmful and may wreck lives!
Postpone purchases – learn to do without!
Set firm money and budget goals for yourself and your family that you can work on individually and jointly to accomplish together
Set spending boundaries and stand by them. Be firm!
Don't use credit credit cards for your day-to-day essential expenses like food and clothing
Don't cheat on your budget!
Understand your income – recognise where the money is coming from and if and how it alters throughout the year
Identify your regular and irregular monthly and possible unexpected expenses. Allow for contingencies
Set a couple of pragmatic financial goals and work towards them. Even if they are small to begin with. Build your $ muscles slowly!
Acknowledge your personal habits, spending, weaknesses, possible risks and identify where and how you may be vulnerable
Establish realistic savings and spending systems that work, and only hold a manageable number of credit cards
Construct an income program – detail is crucial
Program your obligations and essential payments – smooth out big sized accounts with reserve fund accounts, monthly payments, etc.
Plan your essentials and be alert to identify means to economize
Reserve spending money for day-to-day incidental expenses
Design an allowance to deal with family entertainment
Create an allowance for your personal use
Balance and consolidate where possible
Learn to exist happily on a budget
Explore and apply other frugal living modes!
Review why you work and how you live
Cease throwing away your hard-earned cash
Reduce your debt and build your credit score
Celebrate when you have money left over at the end of the month – reward yourself!

Debt Busters and Dieting - What?

2010-01-14T04:47:00.001-08:00

By Debra Proctor

Debt busters are like diets. How's that? People are always searching for ways to lose weight quickly and painlessly...almost magically. Instead of buckling down and doing the inevitable - cutting back on calories and exercising - they continue to look for the magic pill.

Same thing with debt. Debt busters...the name gives you the impression of paying off debts quickly, painlessly, and almost magically - doesn't it? Well, there are ways to pay off your debt, but unfortunately, they're not quick, painless, and certainly not magical.

If you want to get out of debt, the bottom line is you have to make up your mind to buckle down and do what you've got to do. What's that? Here are some tips to get you started.

Don't Pay

What? No, this doesn't mean you don't have to pay your bills. It means don't just pay the minimum balance on your bills. If you plod along, month by month, just paying the bare minimum, you will be plodding along, month by month, for the rest of your life.

Bite the bullet. Get it over with. Pay as much as you possibly can every month so your interest rates don't eat you alive.

For example, let's say you have a balance of $5,000 with an annual percentage rate of 14%, and are required to make minimum payment of 2%. If you only make minimum payments, it will take you 22 years to pay off your credit card. To make matters worse, you will have $5,887 in interest payments. Disturbing isn't it?

Now, if you increase your payments to $125 a month, you can pay off this debt in less than 6 years with only $1,775 in interest. Doesn't that sound much better?

Where do you get this extra money to make higher payments? You cut back. Start keeping track of all the money you spend. Just like when you're on a diet, you have to keep track of all your calories - there's that diet analogy again - you have to keep track of the money you're spending. You'll probably be shocked.

Here are some things you can probably cut back on that will become your "debt busters":

Eating out - You could easily save $25 to $100 a week by cooking simple meals at home. Don't let the commercials fool you - it's much cheaper to eat at home.

Entertainment - You don't have to go see every movie that hits the theaters. Stay home, snuggle up on the couch with your family and rent a DVD or watch some oldies. Hey, they're at least good for a laugh.

Clothing - Wear it out. You don't have to have the absolute latest styles and neither do your kids - be retro.

Trips - Stay home. There are plenty of fun and interesting things to do right in your city that you've probably never done before.

So, since this isn't going to be quick, painless, or magical, should you even bother? Of course, you should. By planning and using common sense, you can definitely get out of debt. Instead of looking at this like drudgery, look at it like a challenge.

Challenge yourself to see how much you can save on your utilities, food, and entertainment.

These are you own personal debt busters. You'll be surprised. It won't kill you and you'll get the debt paid off faster than you thought you could. It will seem almost magical. Need more help reducing your debt? Visit http://www.debt-relief-advice.info.

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Understanding the Psychology of Money and Seeking Financial Freedom

2010-01-10T18:42:00.001-08:00

By Marcus De Maria

Nothing preoccupies the modern person more than money. Money has now become a natural part of our lives and we strive and toil and even slave to make more and more of it. A huge chunk of our decision making revolves around or concerns money. It is either about what to buy, how much to spend, how much value for your money and even whether it was a prudent use of money or not. How does one really determine all this things? Life is complicated for all of us.

We would all like to be a little more frugal with our spending. We sometimes don't know what to stop spending on or what the alternatives are. Reviewing our spending habits is a little tricky for most of us and it takes a lot of discipline and perspective. So how do we go about ensuring we manage our money a little more thoughtfully?

One, you could start by reviewing your regular budget and decide on what you don't honestly need. Our spending habits are the greatest villains when it comes to financial mismanagement. We often spend money on things we don't need and add little or no value to our lies at all. No wonder most of us live from paycheck to paycheck with little or no savings at all. Then when one of those emergencies come knocking, we turn to debt.

Two, understanding the psychology of money is all about financial freedom and independence. This starts with saving. Putting a way a tidy fraction of money for future use and investment is a very steady step towards financial freedom. The goal here is to put away some money that will soon start working for us and earn us that extra income we all long for. You really can live with a fraction less of your money without any significant change in lifestyle. Start putting away some money now.

Three, invest and reinvest whatever money you can and continue saving a fraction of it. There are thousands of investment opportunities available for every type of person and you need to find what best suits you. The stock markets for example offer decent investment opportunities for just about everyone with some disposable income. With a little know how on the workings of the stock markets and shrewd moves, it is possible for any of us to make some good returns from it and start enjoying some financial security.

Think about it. Don't take too long though. Get started soon.

Marcus is dedicated to providing financial education that helps individuals create wealth for themselves and their families.

Marcus is the author of the book, 'Wealth Workout - the Simple Seven Step Formula for Financial Success', and the contributor to various money, finance, stock market and property publications in UK. For more information on how to make more money and to get a wealth workout please click here http://www.wealth-workout.com/socialnet/sn_audio_index.html/

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Best Debt Busters & Wealth Builders - Math, Not Magic

2010-01-10T04:54:00.000-08:00

By Dotti J Berry

Change is coming to America. Barack Obama said it, and the American people proved open to his message. Are you ready to put your mortgage on a diet? Hold on for the ride. A paradigm shift is necessary. Utilizing banking tools and making every dollar either earn interest or cancel interest is the best debt buster and wealth builder.

Are you open to changing the way you pay off your debt and build wealth? Begin with changing the way you pay off your 30 year mortgage. Did I say 30? That's a relic of the past. Forty and fifty year mortgages are now being offered in both the U.S. and Canada. In fact, 50% of mortgages in Canada today are amortized over 40 years (in the past, that number was usually 25). Who would have ever dreamed? Change continues, whether in America or Canada. The Canadian government recently said it would no longer back mortgages over 35 years. How many of you used maps in the past to help you reach your destination? If you are near my age (55), I imagine a lot of you nodding recognition. Perhaps you recall the improved days of AAA Trip Tickets guiding you to your destination? Still younger? You probably used MapQuest. If you've never known anything other than a GPS for easy navigation, maps probably sound ancient, and me, old. What did we do before GPS systems? I can barely stand to think of those days. Have we changed along the way? You bet we have. Although 40/50 year mortgages initially surfaced during the high interest rates of the 80's in the U.S., today they are a result of the rise in property prices in both Canada and the United States. They offer the only way many people can afford a monthly mortgage payment that allows them enough extra to put food on the table. That's the good news. The bad news is that these mortgages create, not just greater long-term debt but, life-long debt. A borrower with the 50-year mortgage builds equity very slowly. In USA Today (May of 2006), mortgage experts cautioned that they are best-suited for those who plan to stay in their home for about five years, while the loan's interest rate remains fixed. Do you desire financial freedom? If you answered in the affirmative, you must choose the best debt busters and wealth builders:

Think and perform like a bank, learning to utilize the banking tools of interest accumulation, interest float, and interest cancellation

Utilize a Personal Financial GPS that creates discipline and calculates in more complex ways

Understand the bottom line consequences of your spending habits, realizing that it can change your life

Like the GPS in your car, my Personal Financial GPS does not ask, Where have you been? or How long have you been there? It is proactive. Its sole mission is to get me from where I am to where I want to be. Once you begin, the system gives specific directions, taking the fastest and most efficient route as it leads you to your new destination, financial freedom. I ask people questions such as, "How much are you earning from the equity in your home?" They often look perplexed and reply, "Nothing." I nod my head in agreement, saying "Exactly...ZERO!" If the banks were doing what most of us have done all of our lives, they would be fired by their board of directors. Ouch! The truth hurts. That's when you know you need the best debt buster, Mortgage On A Diet.Most people realize you can do the following:

Make large lump sum payments to your principal and pay down your mortgage sooner

Make biweekly payments and pay off your thirty-year mortgage in twenty-three years

Refinance and pull out your equity

Sell your home and keep your equity

What's the caveat with the above scenarios? You have to pull money out of your own pocket in the first two situations. Do you have "under the mattress" money or winnings from the lottery to apply against the principal balance? That would apply to number one. I'm a clone of 98% of Americans. I don't make biweekly payments because it means pulling cash out of my pocket. That leaves out number two. Number three? Good luck with this approach in today's economic climate. You are darn lucky if the bank will do a HELOC (Home Equity Line Of Credit) at 80% LTV (Loan to Value). With almost one in five homeowners in a negative equity position, meaning they owe more than their home is worth, you can kiss that opportunity good-bye. The problem with the fourth is obvious. Homes are not selling quickly, nor are they selling for what the homeowner is asking. This brings us to number four. The answer is a ditto to number three. WHAT EQUITY?

As an investor, I like to gain by utilizing OPM (other people's money). I'm paying off my mortgages and debt in record time without taking a penny out of my pocket. I'm not refinancing, changing my mortgage payments, or altering my spending habits. Sound too good to be true? I opened my mind to think like a bank. I realized there are things I can do to cancel interest and manage my cash flow, using my Personal Financial GPSto significantly alter my path to financial freedom. It's just math...not magic.

Did I also mention that investing at a very conservative 6% the money from years of "no mortgage payment" will make me a millionaire, rather than simply a bona fide home owner? That fits my idea of financial freedom better than simply dancing in the street at my mortgage burning party. Not everyone was intended to be Lewis & Clark, capable of navigating their way across terrain that is difficult. Let's face it. I need some help. America needs some help. I am not too proud to ask for it. Watch out Canada. You are right behind us. I welcome a tool that offers a financial dashboard, and shows me the bottom line consequences of my debt and spending habits, as it adapts to my real life situations. I like a mirror I can't ignore. I never had it before. Now I do. As a real estate investor, I research and remain open to tools for creating my financial freedom. Likewise, I have a responsibility to clients, such as those who lease option from me, to offer the best available on the market. Personally, I didn't want to talk about change, while continuing down the old financial path. I found myself saying, "There's got to be a better way!" I am excited about a system that levels the playing field and creates equality for all people. That is what the American dream is supposed to incorporate. Carpe Diem!

Dotti Berry, whose business was a former ASI (Advertising Specialty Institute) Small Business of the Year in the United States, is now a real estate investor and entrepreneur. She is also a speaker, coach, writer, columnist, and radio show host. Discover the Evaluyzer, a tool that can move you from an inexperienced novice real estate investor to a seasoned and successful professional one. Additionally, gather answers to the question, "Is Your House Paid For?" at http://www.HarbingerEnterprises.com .

http://www.PayOffDebtBuildWealth.com

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Debt Busters Resources: Credit Card Alternatives

2010-01-05T20:55:00.000-08:00

If you are one of those people who got a Credit Card because it seemed like the only convenient way of being able to pay without cash, and you didn't know that there are alternatives, pay attention!

Many of us, thanks to the heavy marketing by the Credit Card providers, just don't realise that there are alternatives to Credit Cards. Two of the more common alternatives are:

1. Debit Cards.

Just like Credit Cards and are accepted everywhere Credit Cards are accepted. The only difference is that they take money you spend directly from your designated and linked bank account. So, instead of you borrowing money, as you would if you had a "credit" card, and which you would need to pay balance or % of balance, (not to mention accruing heavy interest!) back every month, you can only use funds that are available in your designated bank account. Which means you are not stacking-up more debt.

Debit Cards can be very useful as a paying tool and can help you maintain discipline with your spending, as you are only spending money you actually have.

On the downside, you may not be as well-protected from fraud with a Debit Card as you would be with a Credit Card. If stolen, thieves may be able to access and siphon all funds from your account before you know it! As with all things, check conditions of use thoroughly and take measures to keep your cards secure at all times.

2. Pre-Paid Credit Cards.

Are Credit Cards, except that you have to put money in the card account before you can spend it. It's similar to you ‘topping-up’ your pre-paid mobile phone account to ensure you can use it. The Pre-paid Credit Card works in a similar way. You 'load-it-up' before you can use it. It is a good way to keep tabs on and control your spending.

You can purchase Pre-paid Credit Cards from some providers with a pre-loaded limit and give them as gifts, or let family members use them. Another benefit is that if the Pre-paid Credit Card is stolen, the thieves can only spend the amount available on the card, so it makes it a relatively safer alternative to the Debit Card. As cautioned above, check the conditions of use thoroughly.

Become an aware debt buster!

How to Avoid Debt While Using Credit Cards

2010-01-04T00:20:00.000-08:00

Author: Andyj00

There is no doubt that credit cards are very useful for paying for goods and services. They are safe, convenient and it means you don’t have to carry large sums of money around in your pocket. Carrying large sums of money can be very risky because if your money is lost or stolen, it is gone forever. Whereas with a credit card, you can just report it missing it will be immediately cancelled and a new one will be in the post the next day. Of course buying online with a credit card is the most popular, easiest way to buy goods and you have the protection of your credit card company.

However, if misused, credit cards can lead to debt and financial destruction. It is far too easy to spend money you do not own and before you know it, you can’t afford to pay back what you owe and get into financial difficulty. The simple fact is that if you borrow money, you must pay it back – and with interest. There is no such thing as free cash. If you don’t take immediate action then things can spiral out of our control which can be devastating.

If you in the situation that you have spent too much money and are in financial difficulty then it is time to stop using your credit card and re-access your financial position. You may need to change your lifestyle spending habits and make cut backs in order to clear your debts. Change your way of thinking – there is a way out of debt but you will need to make changes.
You must first recognize that you actually have a debt problem. You cannot attempt to sort out your finances unless you admit there is a problem and face up to your debts.

You then need to assess exactly how much it is that you owe. So many people do not actually know how much they owe. This maybe that they have so many debts that they can’t keep track of them all. By checking your credit card balances you will know exactly how much you owe and what interest you are paying. You should always aim to pay at least the minimum payment of your credit card bill. If you don’t do this it will affect your credit score rating.

When you are in the position of knowing how much you owe then develop and plan of how to pay the debt off. Do not just carry on paying the minimum interest repayment; it will take years to pay off your debt if you do this. A popular option is debt consolidation whereby you put all of your debts into one which organize your repayments into one affordable payment. Another option is to transfer your balance to a lower interest rate credit card, or even one that offers 0% balance transfer.

Only you can make the changes necessary to get out of debt and this must be done sooner rather than later, before things get too bad.

About the Author:

The author has several years experience in the finance industry. For more great tips on how to avoid debt and for help and advice to solve all of your debt problems go to Me Debt Free

Article Source: ArticlesBase.com - How to Avoid Debt While Using Credit Cards

Your Debt Free Plan for the New Year

2010-01-03T03:27:00.001-08:00

Author: Cornie Herring

Unmanaged spending using credit cards are the number one root cause that drives most of people into credit card debt. If you are current in debt and thinking of having a debt free life in near future, you need to start to look into your debt seriously; steering clear of unwanted debt is a great way to manage your finances and relive the stress cause by debt. Here are some debt free steps which you can put in place as your New Year's plan:

1. Change Your Spending Behavior
You cannot become debt-free if you spend more than you earn. It's that simple! Financial stress relief is called "money in the bank" or "positive cash flow". You need to know where you money goes; this can be done by list down your regular and non-regular expenses. Think twice for any item which you plan to buy, ask yourself whether it is a need or an optional item.

2. Have Your Budget Plan
Make a budget plan for yourself and eliminate or at least reduce optional stuff such as entertainment, dinner at restaurant and luxury vacations. Plan your budget according to your financial capability and spend according to your budget. You will be able to achieve your debt free goal if you can plan for a positive cash flow, which means that you spend less that what your earn.

3. Pay Your Bills On Time, Every Time
Managing monthly bills is an essential part of staying debt free and maintaining a good credit rating. If you find this difficult, come up with a system to ensure that bills are not paid late. For your current credit card debt, you may get help from finance experts such as credit counseling or debt consolidation services; they are widely experience in help people in debt management.

4. Set Your Financial Goals For Long-Term and Short-Term
To change your spending behavior may be difficult, but if you set your financial goals, both for short- and long-term, it is easy to make the necessary spending cuts to get what you really want. So set your realistic financial goals for year 2007 and a few year down the road; and manage, control and cut unnecessary expenses so that your can achieve your financial goals.

5. Plan For Adequate Emergency Savings Fund
You never know what will happen tomorrow, there may be some emergencies which will need a lump sum of money instantly, such as medical bill due to major illness and accidents; money to cover to income shortages such as temporary loss of job. Three to six months' worth of bare-bones living expenses should shield you from most of these problems. Make the savings your habit.

6. Learn to Invest Your Money
Investing can make our money earn more money and keep you out of debt. Learn to invest with your money to grow it. There are many investment plans available in the market, range from insurance, to mutual fund, to stock market. Investment can make your grow your money; in contrary, it may cause you loss your money as well. Normally high gain investment will have higher risk than low profit investment. You need to understand your own risk profile and select the investment schema that meet your risk profile. You can start your learning by taking a class, find a referral to a great adviser or just start reading. Do it your way, but do it; and start now!

So, these are some tips for Your Debt Free Plan. Wish you have a Happy and "Debt Free" New Year.

About the Author:

Cornie Herring is the Author from http://www.StudyKiosk.com/creditbasics. "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy.

Article Source: ArticlesBase.com - Your Debt Free Plan for the New Year

Does Debt Settlement Free Up My Credit Cards?

2010-01-03T03:15:00.001-08:00

Author: Hector Milla

As mounting expenses force more and more households to depend on credit accounts, the threat of falling into debt has become a reality for many people.

Hector Milla Editor of the "Best Debt Settlement Companies" website -- http://www.BestDebtSettlementCompanies.org -- pointed out;

“.. Oftentimes, the burden of meeting payments becomes overwhelming and late balances on one account must be paid using other credit sources, further aggravating the situation by perpetuating the cycle of debt. Debt relief solutions, such as debt settlement, are a viable option for coping with financial crisis, but these options are only effective when the debtor is willing to commit to using healthier spending practices …”

A debt settlement is one option for individuals who feel that they are unable to meet current financial obligations on their unsecured credit accounts. In order to begin the process, you must immediately discontinue payments on credit cards and other accounts, allowing them to default. Alternatively, a reduced monthly payment is made to a specialized account which is allowed to increase until a reasonable sum is produced for negotiations with the creditors. At the same time, the company representing you acts as a financial mediator, negotiating a price to settle the dispute, which may be up to 50% less than the original debt. At this stage, creditors are receptive to negotiation because they are more likely to collect a fraction of the funds if bankruptcy is not filed.

During the process of debt settlement, the accounts included in the negotiations are in default, and therefore, are inaccessible. Credit cards not included in the negotiation are still usable, but other creditors continue to track your credit report and may respond aggressively if the report indicates that you have given preference to other accounts. Also, if you hold other unsecured credit lines with creditors involved in the settlement, it is possible that they may restrict these accounts as well, even if they are in good standing.

“… The important thing to remember is that the purpose of this financial solution is to assist individuals in regaining financial stability. Even if your representation is successful at resolving the debt, the same problem may arise by again relying on credit cards for all of your expenses. A major benefit of a debt management program is that it encourages clients to budget more effectively and use credit only when other means are not available. Debt resolution is the first step to regaining financial independence and restoring creditworthiness, but it is up to the individual to be financially responsible after the process is completed …” H.Milla added.

Further Information about how to get the most of your debt settlement process By Visiting;
http://www.BestDebtSettlementCompanies.org

About the Author:

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source: ArticlesBase.com - Does Debt Settlement Free Up My Credit Cards?

Avoiding Christmas debt

2009-12-26T03:14:00.000-08:00

Author: Laura Spencer

For many of us, Christmas is traditionally a happy time of year - a time spent with family and friends, eating, relaxing and being merry. However, for some people, the time after Christmas is often spent worrying about debt.

It doesn't have to be this way though - and here's a look at one way of reducing your debt worries this Christmas.

Try not to take on debt. This may sound obvious, but it's true. If you avoid debt at all costs in the first place, you won't have to deal with the stress of repaying it - but how can you avoid debt?

Save up. Even if you only save a small percentage of your income, it can make a huge difference to your overall finances.
1. Imagine you have a Christmas spending budget of £200. Saving £100 from November's pay cheque will cover half your budget - so you only need to find £100 in December itself.
2. Having said that - looking ahead to Christmas 2010, you could simply save £18 a month between January and November to more or less cover your £200 budget.

So, as you can see, it's worth making a plan to help you avoid falling into debt this Christmas. Just take a look at how much you are planning to spend, and see how much of that any savings you have will cover - then plan how you intend to pay for the outstanding purchases.

What if you do end up in debt?

If you do fall into debt this Christmas, you should get some debt advice as soon as possible. A professional debt adviser should be able to assess your situation and may point you in the direction of a debt solution. If, for example, you realise that you're left carrying lots of little debts after Christmas, you may find that a debt consolidation loan could help you simplify your finances, making it easier to repay what you owe.

Article Source: http://www.articlesbase.com/personal-finance-articles/avoiding-christmas-debt-1592440.html

About the Author:

For more author information, visit the new site dedicated to bank accounts for bad credit

Misconceptions About Debt Consolidation

2009-12-21T20:02:00.000-08:00

By Jessica Graham

A lot of people hear, read or watch about debt consolidation. Depending on the company, this service may be offered in a low interest rate or higher. Debt consolidation may offer a refreshing out take of piling consumer debt but the following are some misconceptions:

Debt consolidation doesn't mean debt-free. When people have multiple bad personal loans and other unpaid debt, it becomes difficult for them to keep up with the payment. Unexpected things happen and sometimes these require a big amount of money. When they are already asphyxiated with debt, surely they can't cope with another financial burden. Therefore, these hinder them from becoming good payers and as a result, they miss payments on their other loans, their credit becomes higher and their credit rating suffers.

When people are at this point in their lives, they surely can't help wishing that their debts would disappear. However, their debts are real and are meant to be faced. Debt consolidation is often perceived as debt-free. This is false because debt consolidation does not wipe out debts. It simply gives people an opportunity to hoard all their existing debts and transfer them into more manageable personal loans, lower interest rate, and flexible terms. However, people must realize that this is not the same for all lenders. Others are scammers that only want money from desperate debtors.

Debt consolidation is fast and easy. This is another misconception because as it is manageable and offers lesser payments, debt consolidation is difficult to acquire especially those for who do not care to arrange their credit rating. Not every person is credible and qualified enough to actually get approved on this kind of loan but he can negotiate with lenders nonetheless. Those who have bad personal loans are actually lowering their chances of having a good credit score and qualification for another helpful loan but they can still adjust it before applying for a consolidation.

Debt consolidation asks security by initial payments. No legal or honest loans will ask debtors of fees, charges and interest payment at the beginning of the application. People should beware of those who promise easier and manageable debt in exchange for lower interest rates. They should check first if the company is legally in existence and that the interest rate is fair and accordingly. There are a lot of scammers that take advantage of people's desperation so no matter what happens, people should always be on guard about "easy to acquire" things in life.

Jesse Graham, co-writer for The Boss, shares her insight on money matters. The Boss has multiple comparison sites such as Money Boss and Credit Card Boss that can help people find the best loan deals. It's tough times at the moment, so Jesse will help out where she can, with The Boss' insight and Jesse's writing skills, you'll be saving and surviving on your wage!

Article Source: http://EzineArticles.com/?expert=Jessica_Graham

http://EzineArticles.com/?Misconceptions-About-Debt-Consolidation&id=3453272

What Is the Difference Between Debt Resolution and Debt Consolidation?

2009-12-21T07:26:00.000-08:00

While, on the surface, debt resolution and debt consolidation may sound similar, there are important differences between them.

Where as debt resolution may lead to an immediate discharge of a large percentage (perhaps around 40-60%) of your debt, it can also lead to a black mark on your credit report and possibly an added tax burden.

Debt resolution involves negotiating a payout figure that is possibly well below the amount of the debt owed to a creditor. The rationale for implementing a debt resolution approach may be that if the creditor is willing to accept a lower amount, you can pay off the debt immediately. In some instances, this can be a very attractive option to a creditor as it relieves them of the need to spend more time and money chasing you to collect the debt.

The downside of the debt resolution option is that it may lead to a major negative report against your credit rating. It is also more common now days for the IRS to treat forgiven debt as a form of income. As income is taxable, this may lead to a claim by the IRS to some of that money you saved in your debt resolution.

On the other hand, debt consolidation attempts to change the terms of your overall debt and make it more manageable to repay. It involves the renegotiation of your existing debts to one combined debt. In combining your debts into one, with perhaps a more attractive interest rate, payment amounts and possibly an extended time to pay, it makes repayments more manageable. You can then service the loan properly in ways you may not have managed if you had multiple debts with various terms and repayment amounts.

Debt consolidation is less likely to attract a negative report on your credit rating as the creditors are still getting the full amount owing to them.

Whatever you decide to do, whether it is debt resolution or debt consolidation, or even perhaps a third debt busting option, always be well informed and know exactly what you are getting into.

Seek professional advice so you can achieve the best results for you.

Who Says You Can't Negotiate With Your Credit Card Company?

2009-12-20T04:33:00.001-08:00

Debt Settlement Complaints - Better Business Bureau Can Help

2009-12-19T21:54:00.000-08:00

Author: Hector Milla

Today, more people are turning to debt settlement as an alternative to bankruptcy; this is not surprising because Americans are burdened with more debt now than before.

Debt settlement is the process where a consumer negotiates with either debt settlement agencies or creditors to reorganize their debts with lower monthly payments and interest rates.

Aurora Lillo Editor of the "Best Debt Relief Programs" website -- http://www.BestDebtReliefPrograms.net -- pointed out;

“…Debt settlements have advantages for both consumers and creditors, but there are also some complaints, too. A lot of these complaints are made with the Better Business Bureau. As the number of debt settlement companies increase, so do the number of complaints…”

Complaints regarding debt settlement are filed by consumers towards debt settlement companies when they do not complete their promises or are unable to satisfy. The number of complaints was high last decade but has lowered some in the past few years. Over the years, 70% of complaints filed with the BBB are resolved, so filing with them may help your individual situation.

“…Complaints made about debt settlement.

1. Lowered credit score. A debt settlement can affect the credit score of the consumer. On a credit report, settlement will be stated as ‘paid by settlement’. This can be negative for a consumer if any credit is desired in the future.

2. Tax liability. A consumer can face problems at the time of filing taxes.

3. A lower monthly payment results in a larger total debt to pay at the end.

4. Debt settlement companies claim to provide reduction of payments and interest but do not follow through.

5. Sometimes before completing a debt settlement agreement with a consumer, a company will just disappear.

6. There are times when a debt settlement company takes money from a consumer but does not forward that money to their creditor. The company is simply stealing from the consumer.

7. Many times it takes companies a long time to negotiate debt for a consumer. As the consumer waits, the total amount of debt continues to rise…” added A. Lillo.

Further Information By Visiting; http://www.BestDebtReliefPrograms.net

Article Source: http://www.articlesbase.com/debt-consolidation-articles/debt-settlement-complaints-better-business-bureau-can-help-1603100.html

About the Author:

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Important Things You Should Know About Debt Settlements - Help With Credit Card Debt

2009-12-19T05:32:00.000-08:00

By Erik Stump

Loans and huge debts can become a huge curse when not handled carefully. Especially when you have a huge loan to take care of and your business is not running well, the situations is like standing on a burning deck. You can neither run away nor keep standing. The continuous pressure from banks along with ever rising interest rates can eat up your confidence compelling you to take drastic steps.

Since now we have debt settlement emerging as saviour of many, it is important that we understand the process in and out before adopting as our sole weapon to fight. Here are few facts regarding debt settlements:

a)This process can prove to be a blessing in disguise if you really make use of it wisely. It can see you walk through the debt amount by paying a meagre amount when compared to the principal amount.

b)The interest rates normally far less than the rates charged on debts. Further there are provisions to get a good extension in the repayment period.

c)This process is quite tempting as it might compel you to take loans again and again. So, make sure that you don't get into a nasty habit of getting submersed in debts.

d)There are few hidden norms like you will not be considered eligible unless the amount has piled up for last few months. Your reasons stated for non repayment should be substantial enough.

e)When you go for help with credit card debt, the settlement companies play the third party role and negotiate on your behalf. They eat up a major chunk of your money to the tune of thousands of dollars. So be wise in dealing with them.

f)In some cases, you can get negative marking on your credit report due to weak case or bad presentation of your accountability. So make sure that you do your homework well before taking this step.

There are some of the facts one should be well aware of before going for help with credit card debt. So, keep all these facts in mind and take appropriate steps so that you learn the lesson of controlling your expenses.

It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified. They are free to use and offer helpful debt relief advice.

Free Debt Advice

Article Source: http://EzineArticles.com/?expert=Erik_Stump

http://EzineArticles.com/?Important-Things-You-Should-Know-About-Debt-Settlements---Help-With-Credit-Card-Debt&id=3432803

Credit Card Debt Help: Can I get out of credit card debt?

2009-12-17T03:47:00.000-08:00

Yes, of course you can get out of credit card debt. As aspiring debt busters, if you are determined to get out of credit card debt, you can find ways to help yourself. It may not be easy, but it is not impossible.

As well as being determined to get out of credit card debt, you also require planning. Although both determination and planning are equally important in getting out of credit card debt, you will not implement a plan without compelling reasons. As determination and motivation go hand in hand, helping yourself get out of credit card debt requires you to understand your feelings about your credit card and any other types of unsecured debts.

To generate enough determination, you need to identify how you will feel if you helped yourself out of credit card debt.

So, you need to first ask yourself some questions:

"How do I feel about my credit card debt?" or "How do I feel now?"
"How will I feel if I am debt free?" or "How would I like to feel instead?"
"What will I gain materially, emotionally and mentally if I am able to get out of credit card debt?”
“What difference will it make in my life, to my relationships, if I am debt free?”

When you are clear about "Whats in it for me to get out of credit card debt?" you are in a better psychological state to become determined. When you are determined, the more you are likely to create and implement an appropriate and realistic plan. And above all, stick to it.

What Debt Busters Need to Know About Debt Consolidation Scams

2009-12-15T02:55:00.000-08:00

Even if you decide to go down the path of D.Y.I. debt busting, it pays for every aspiring debt buster to be aware of some of the debt consolidation and debt settlement scams that are out there. Again, those seeking help with dealing with their out-of-control debt via debt buster firms, do your homework!

Many scams come as flashy advertising or convincing letters, with "consultants" coming to your residence to discuss your debt issue. All debt busters need to be aware of the following:

If the debt busters agency doesn't have a real business address, with professional set-up, verifiable credentials and track record and they promise you the world, would you be suspicious? I hope so!
The debt buster firms or "consultants" (with no established business address, most likely) that tell you that they can negotiate with your creditors to reduce your debt to a fraction of what you owe. You agree to pay over, lets say, a period of sixth months. They ask for a lump sum fee at the beginning of the arrangement, which you willingly pay, (feeling relieved I'm sure!) and then continue to pay your monthly fee to the debt busters company, thinking that they make payments to your creditors on your behalf, and all is well.

Lo and behold, after a while, you start getting calls from your creditors (again!) demanding their money. So you call the toll free number of the debt busters company you signed up with and all you get is an answering machine - if you're lucky. You can probably kiss that money good-bye, unless you can track them down and report them.

More stress!
Stay away from any debt busters that promise you that they can remove information from your credit credit report. Run away, it's a lie!

Stay alert and be thorough when dealing with any debt busters company.

See you next time!

Debt Busters Costs: Is it worth it?

2009-12-13T03:22:00.000-08:00

In the last post we talked about the possibility of engaging the services of debt busters companies. This is an option to consider, especially if you are experiencing extreme financial stress and are unable to make your loan repayments. We also looked at some of the things to look for when choosing an appropriate debt busters company.

To re-inforce the warning about doing your homework and asking the hard questions of your potential debt busters "saviour," let's dig a little deeper now to briefly highlight one of the possible pitfalls of using debt busters services - cost.

Debt busters firms may require you to pay an up-front fee. On top of this, you may be required to pay a commission fee for each debt settled - which may take some time to settle, perhaps years if not months. There may well be some other fees, so dig deep and do the math! Some firms get paid a percentage of how much they saved you. So, as well as asking how much? and for how long? also ask how they are paid.

Now, of course, your chosen debt busters firm may arrange a consolidation loan and possibly negotiate a reduction of your debt for your fees. They may also stop the debt collectors threatening letters, harassing phone calls and knocks on your door. Good for reducing the stress levels!

All possibly good things, but, and here is the crunch:

If you added all the fees and commissions up, will the amount you pay your debt busters company end up being the same amount that you owe your creditors anyway, and now paying your debt busters company instead?

You really need to gather good information, do your calculations and then make your decision whether it's worth it or not for you!

Where to next?

Well, if you are a good negotiator and able to do some proper research, you may be able to do exactly what the debt busters companies do and negotiate directly with your creditors. At least, you may try the DYI approach with one or two of your creditors and see how it goes before committing to a debt busters firm to negotiate on your behalf. Who knows, you may surprise yourself and save some money in the process!

If, on the other hand, you are too stressed, feel too anxious or intimidated to deal directly with your creditors, or perhaps your past attempts didn't go well and you feel bruised as a result, then it may be worth it to pay the debt busters company the fees so you do not have to go through the stressful process.

Whatever option you choose, to become a DIY debt buster or use professional debt busters, really, really, do your homework and ask the hard questions.

It is also very important you don't sign any papers or agreements with any debt busters firm or your creditor/s if you have not read the conditions and/or you don't understand them. Best to get legal advice if uncertain. I know, your thinking - another expense? But hey, do you need any more stress down the track?

Keep well and see you next time!

How to Choose a Debt Busters Company

2009-12-11T15:15:00.000-08:00

Are you in the deep end and drowning in a financial crisis? Are you unable to meet your debt repayments? Are you hitting a brick wall with your creditors? Debt collectors calling you or knocking on your door? In despair and are at a loss on what to do? It may be time to consider getting the help of expert debt busters.

Debt buster companies are set-up to offer financial and debt counselling. They also help you to plan, manage and eventually pay off your debt.

There are many good, reputable debt buster companies around who offer this type of service. However, you still need to do your homework to ensure you do not get caught-up in any scams. The last thing you need, when you are already stressed financially and emotionally, is to be taken for a ride.

Things to look for when choosing a debt busters company:

Check up on the companies you may consider getting help from
Determine if there have been any complaints lodged against the company with your Better Business Bureau or Consumer Affairs watchdogs.
How long has company been in business?
This period of financial crisis and hardship attracts many fly-by-night and scam operators. The longer time in existence, the more likely it is to be a reputable firm, but still do your research no matter how long in existence.
Ask about the credentials, training and experience of their staff
Those working as consultants or advisers on debt busting need specific training and experience in this field. Look for evidence of the track record of their staff. Between five to ten or more years experience is heading in the right direction.
Get clear on exactly what you are getting
What is their approach? Are they judgmental or empathetic? Will any debt busters program proposed be tailored to your needs? Is it only debt consolidation or does it also include debt settlement? Will they negotiate with your creditors? Whatever course of action is taken, how will it effect your credit rating or report? Will they help you with establishing a budget and a plan to stick to it? What on-going support is provided?
How much is it going to cost?
Determine up-front how much are their services going to cost you. Are there any hidden charges? Even if dealing with a not-for-profit debt busters agency, they can still charge fees for their services, so ask!

Your current debt situation may warrant the help of professional debt busters. When choosing a debt busters company, don't be afraid to ask many questions. You need to be clear about what exactly you are getting and for you to feel comfortable with the service you are receiving.

One more thing. Don't let shame or embarrassment get in the way of getting the help of professional and reputable debt busters. Think about your financial, emotional and mental wellbeing. Think about how not getting help is going to effect you and your loved ones.

Why Use Debt Busters?

2009-12-10T04:33:00.000-08:00

Using debt busters has advantages:

Practicing debt busters helps to stabilize your financial situation quicker
Lessens the stress and anxiety around your debt
By applying debt busters, you will get your self out of debt quicker - and hopefully, cheaper
Eventually, with continuous practice, debt busters can make you debt free

If you are experiencing a very financially stressed life, then it may be wise to consider getting assistance from a debt busters firm, which specialise in helping you deal with your debt problem in a realistic and systematic way.

Debt buster firms can help you by:

Providing confidential counselling with experienced consultants
Working out a spending plan for you, tailored to your needs
Assisting you to consolidate your debts
Negotiating with your creditors to not only lower your payments, but perhaps also to reduce the amount of your debt

If you do decide to get the assistance of a debt busters firm, then do your homework and apply due diligence. Don't believe the hype and beware of scams! There are many reputable firms, but unfortunately, there are also some scams out there.

Stay positive and we will talk more about how to asses debt buster firms next time.

What are Debt Busters?

2009-12-08T18:39:00.000-08:00

Lets begin by explaining what is meant by debt busters.

Debt busters are the practices you put into place to deal with debt and help to lead you towards a debt free life - or at least a manageable and stress free life!

The ten top debt busters are:

Budgeting. Don't cringe, it is one of the best debt busters!
Shop within your budget and schedule your shopping. Stop the "retail therapy" and impulsive shopping approach - it costs you!
Pay bills on time. Save on late/penalty fees or increased interest
Cook at home and cut back on "take away" foods. This is a debt buster that not only saves you money, but also your health!
Cancel unnnecessary amenities, like cable or satellite television
Cut back or cancel subscriptions to magazines
Carpool if you can manage it. Savings on fuel and vehicle wear & tear can be great debt busters
Use cash. Don't use your credit card. If you don't have the cash to buy it - wait till you do. Maybe you don't even need it after all!
Find ways to earn some extra cash. Even a small amount can go a long way
Explore using the help of a debt help company, like Debt Busters or similar, to help you consolidate your debts and negotiate lower repayments for you.

Are the above debt busters hard to implement? No! But... we may have some resistance to actually put them into action.

More about resistance to implementing debt busters and debt denial later!

See you next time for more about debt busters!

Debt Busters

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Debt busters is a system and approach of getting control of personal debt the fastest and cheapest way possible. Debt busters, however, require honesty, determination, planning and discipline.

The debt busters system and approach is about helping people resolve their credit and debt issues. Although we can talk about applying debt busters to any type of debt, we will mostly concentrate on unsecured debt, which mostly occurs through our use (or abuse!) of credit cards.

In future posts in this Debt Busters blog we will systematically explore the What, Why and the How. We will explore What debt busters are, Why they are important and How to put them into practice.

We will also explore how debt busters relate to other dimensions associated with debt and credit control. These include the emotional reasons behind excessive debt, our resistance to deal with our debt or credit problems and how we can overcome these via the practical and sound approach of debt busters. Remember, successful debt busters require determination, planning and discipline.

Lets all become successful debt busters!

Privacy Policy for DebtBusters101.blogspot.com

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