prosperityseeker

If you’re considering consolidating your debt with a debt consolidation loan, you may be wondering if it is a good idea. After all, you’ve heard about the benefits of only having one place to pay, lower interest rates and all that. However, you may be wondering if it makes sense to do so. Well, I honestly believe that debt consolidation can work on your behalf if you approach it in the right way.

You see, you still have to treat your consolidated debt as debt and work your butt to pay it off quickly. What happens to many people is that they mentally assume that the consolidated debt has been “paid off” and then charging up the paid off credit cards again. This is not only extremely frustrating but very dangerous as well.

However, if you get a debt consolidation loan with the intent of paying it back as quickly as you possibly can then it can make sense to use a debt consolidation to help you get out of debt. Here are some other tips:

• Realize that just because you got a debt consolidation loan doesn’t mean that you’re debt free now. You’ve simply juggled your debt around a bit.

• Pay off your credit cards and other debt and make a point to never ever charge them up again.

• Work aggressively to pay your debt consolidation loan as quickly as possible. This means paying more than the minimum monthly payment that is required by the debt consolidation company

• Get on a written spending plan. Only spend money that you have, don’t charge up new debt. If you do, you’ll end up needing another debt consolidation loan to pay off the new debt.

Good luck you can do it!

I had a crazy idea the other day, what if you could get someone to buy your credit card debt and pay it off for you. What if you could simply place a classified ad that said, “Credit card debt for sale - Extremely sorry and frustrated creditor looking for someone to rescue her from her stupid mistake of purchasing things she couldn’t afford and living beyond her means.” Do you think that anyone would go for this ad? Do you think that some millionaire philanthropist would come to my rescue and say, “Oh, you poor thing, I see you’re remorseful and I feel your pain. I’ll buy your credit card debt for sale. Here is xx,xxx.00. Take the money to pay off your debts. You don’t owe anything in return. I simply love helping out financially irresponsible people.”

Do you actually think that would work? Ummm I don’t’ think so. I think all you would get is a bunch of laughs. However, every single day people are willing to get in more and more debt, hoping that someone, some entity will rescue them with a huge stimulus check or that they’ll find some loophole where their credit card debt will magically vanish.

I honestly don’t think it is going to happen people and strongly suggest that you take a good hard look at your existing financial situation and then make a commitment to pay off your debt the good old fashion way – through hard work and effort. Then, when some sorry sap approaches you with a sign saying “credit card debt for sale.” You can say, “No thanks, I prefer to invest my money in investments that make sense. Good luck with that one.”

Just about every day, I hear a radio advertisement for John Cammuta’s debt free program, it sounds really good and inviting. I mean, they talk about paying off your debt with the money you already have, being debt free in 3-5 years, etc. Although I was tempted to purchase the kit or at least send off for the free informational, I decided against it, here’s why. A debt free program is not going to change your life. It isn’t going to magically transform you from debt into financial freedom. The only person who can do that is you. That’s right – the woman or man in the mirror is the only one that can help you develop and stick to a debt free program that works.

Now, this isn’t to say that all debt free programs are bad. I mean, however I don’t think you need to pay for information that will help and is true. I could be wrong but I am willing to bet that the Transforming Debt to Wealth, debt free program, professes that you live below your means, get on a written budget, stop spending more money that you owe and pay off your debt using the debt snowball method. Now, I could be way off the base here but that is the method that works and works extremely well. How do I know? Because I am using it and it is working for me and it has worked for millions of other debt free individuals. And, the good thing is that it didn’t cost me anything to learn it.

So, if you’re seriously considering purchasing a debt free program, I suggest that you try out the free tips first and if those don’t work after you seriously apply them for at least a year then buy whatever you like but give these free principles a chance and take the money you were going to spend on a debt free program and pay off some debt baby!

Although it is always better to work toward paying off your debt as soon as you possibly can, sometimes it just isn’t possible for you to pay it off as fast as you need to do so. Therefore, if you’ve got debt, consolidate it. That’s right – debt consolidation may very well be your powerful weapon to getting rid of debt forever.

When you consolidate your debt, you basically take funds from one creditor and use it to pay another one. For doing this, you likely get lower interest rates and lower monthly terms. In addition, you may be able to get a tax write off if you get a home equity line of credit. But, most importantly debt consolidation frees up more money each month for you to use toward debt reduction.

For instance, let’s say that you currently owe $18,000 to 5 creditors and you pay $571.00 per month at 29%. However, when you consolidate the $18,000, you only pay one creditor and are charged 8% which makes your payments 363.00. So, as you can see, consolidation simply makes sense. You can then take the extra $208.00 you were previously paying to slash debt even further which will help you pay off the consolidation loan quicker.

The key to making this plan work however is to not charge up more debt after you pay off those bills. That is, if you get a bank loan to consolidate then tear up all of those credit cards after you have paid them off. This will keep you from charging up the cards again.

In conclusion, if you got debt – consolidate it. Not only will it lower your payments but it will give you a bit of satisfaction in knowing that you are eliminating debt.

Everyday, we are bombarded with stories about people losing their jobs, facing foreclosure and facing other economical turmoil. Yes, these are tough times and if you’re facing one of the above, I feel for you. I really do – we are all feeling the pinch. The only difference is that those who are committed to seeking debt problems help and doing what they can to dig themselves out of this mess are the ones that will survive and thrive during these times.  

Those that refuse to ask for debt problems help and keep living in denial are the ones that will stay stuck in the rat race. Those that ignore their financial problems and keep doing what they were doing before will get deeper in debt. 

So, if you’re truly committed to getting debt problems help, you must realize you’ve got to look within. You are the only one that can truly solve your financial problems. You are the only one that can make it better and it is going to take a lot of hard work and effort.  

Stop thinking that others are going to bail you out or solve your debt problems. Yes they can offer advice but you’ve got to step up to the plate. You have to help yourself. 

Every single day, make a conscious decision to get financially smarter, to learn from the past and do something positive. Give yourself debt problems help and watch your financial situation improve.  

Today, I will teach you the method of the debt snowball to squash debt. Basically with the debt snowball, you take your smallest debt and work your fanny to pay it off. To do so, you take the creditor’s required minimum monthly payment  and  combine it with an extra payment to pay off debt quickly. Then, when you’ve paid off the smallest debt using this method you apply that entire payment to the next debt.

Let’s see the plan in action. Let’s say you have a $50.00 monthly payment that is due to Visa but you can afford to pay $125.00.  Well, you pay $125.00 to Visa and once that is paid off you send the $125.00 payment with your other monthly payment. In this case, let’s say it is $50.00 to MasterCard. As you can see, you will then  start sending MasterCard $175.00 . Then once MasterCard is paid off you continue until all your bills are paid off. 

The benefits of the debt snowball are many. Not only is it invigorating and fun to watch those loan balances go down with time but it the snowball picks up steam and squashing debt like crazy. The debt snowball is your ticket to financial freedom. By using it, you are basically forcing your money to work smarter for you.

Plus, as your debt snowball gets bigger, your debt will shrink even faster and faster. To me, the debt snowball is a great way to beat credit card debt.  Give it a try and you’ll be pleasantly surprised that the debt snowball not only works, it works to beat credit card debt quickly and painlessly.

Yesterday, I was chatting with a buddy who recommended that I stop trying to pay off my credit card debt this month so that I could have more money to spend on the holidays. I thought that was ludicrous advice and strongly told her that she needed to buckle down and grow up. I told her that I was responsible for that debt and that I had to fess up and pay those creditors off. I told her that I would be cutting back on the holidays this year.

We then got into a heated discussion about the importance of giving nice gifts, reducing debt and a bunch of other stuff that I can’t remember now.  In the end, I got absolutely no where with her. Right now, she is happily shopping buying extravagant gifts on credit that she can’t afford while those bill collectors are “blowing up” her home phone threatening to take her to collections. And I am,  well here, writing this article and trying to keep you guys from doing the same thing. That said, today, we will discuss how to avoid bad debt help. Let’s begin.

1. Understand the truth about debt. Like I’ve been saying over and over again, debt is bad news. It doesn’t matter if you owe for student loans, a house or a car. People who are in debt are working for others. They are paying for stuff in the past and are not creating financial freedom or peace for themselves. Debt robs us of our money and our dreams and no amount of debt is worth it. None. Therefore, you need to do everything in your power to squash debt and get it out of your life for good.

2. Use cash to pay for your purchases. Many people argue that its dangerous to carry cash but I beg to differ. You are no more likely to get robbed carrying cash than you are to be a victim of identity fraud. Therefore, carrying around money and paying for it with cash, isn’t dumb, it is a smart move. Not only will cash force you to think about your purchases but it will keep you on target.

3. Get smart about your money. The average person doesn’t know a bit about finances and doesn’t care to learn. However, those that actually take the time to learn about money and how it works are the ones that persevere in good and bad financial times. They are able to spot the goofballs from those people who really have it going on.

4. Don’t care what anyone thinks. You’ll meet adversity from lots of people who don’t want you to live below your means. However, if you realist that you are doing the best thing for you and your family, it really won’t matter what those goofballs think because you have a different mindset altogether and are on the right path to financial freedom.

5. Do what you have to do to clean up the financial mess. Do what you have to do to get where you want to be. That might mean cutting back, spending less money or even getting a part time job. However, if you are committed, you will succeed.

You can avoid bad debt. Just make sure that you understand the truth about debt, use cash to pay for your purchases, get smart about your money, don’t care what others think and do what you have to do to clean up the mess you made. 

With the holidays approaching quickly, I thought I would offer a few tips on being a debt free wannabe during the holidays and not putting yourself further in debt. Sound interesting? You bet it is. In this article, I’ll give you 5 tips you can use now to save money this holiday. Let’s begin.

1. Get committed and change your focus. Keep in mind the holidays are just one day but your debt free wannabe goals last a lifetime. Therefore, instead of buying stuff and putting yourself further in debt, you need to change your focus. Concentrate on spending quality time with those folks you care about and forget about buying the most expensive presents in the world. Commit to debt freedom and don’t be afraid of your decision. Not only will you have a better holiday but you won’t break your pocketbook either.

2. Use cash only. Only use cash or debt cards this holiday and get committed to buying people inexpensive gifts that come from the heart. For instance, if your budget is to spend $5.00 a person, you could create a lovely movie night basket that includes a DVD, popcorn, candy and bowl. All this can be obtained at the dollar store which will make a great basket idea.

3. Establish a realistic holiday spending budget. Sit down and write a budget for this holiday right now. Then, create a list of which presents you’ll buy and for whom. If you find that you are having trouble sticking to your holiday budget, you need to reallocate funds or consider making more homemade or less expensive gifts that come from the heart.

4. Look for sales. There are numerous sales online and off. To take advantage of the sales, use coupons and comparative shop. In addition, fi you aren’t going to see someone until after the holiday then save gift buying for them until after the holidays are over. After all, you won’t see them until later anyway and this way you can save 50% or more off the price of their present if you wait and don’t rush the shopping process. Also, if you find something advertised for cheaper, then ask the manager if they’ll honor the competitor coupon which will save you a tremendous amount of money.

5. Don’t rush the shopping process. Take your time and pace yourself when shopping for great deals. If you rush or wait until the last minute to buy gifts, you’ll likely end up spending more money than you would have if you took your time and were able to shop at more than one store to obtain the best price. Therefore, start shopping now. Buy a little at a time until you have purchased gifts for everyone one on your list.

In conclusion, you can be a debt free wannabe and not put yourself in further debt. Simply change your focus, use cash only, establish a realistic holiday spending budget, look for sales, and don’t rush the shopping process. By doing this, you

I am a firm believer in becoming more financially aware and truly believe that there is a wealth of information out there for people who are willing to read it. In fact, if you’re seriously considering getting out of debt and becoming debt free then I strongly suggest that you read get out of debt books and financial books at least once a day.

 One of my favorite get out of debt books is the Total Money Makeover, in this book, Dave Ramsey, a renowned financial advisor provides readers with a fool-proof plan to get out of debt and stay out of debt while living a financial free life. The main point of his books and material is that we should budget our money and stop living beyond our means. Dave Ramsey also strongly recommends that we shouldn’t buy more stuff than we should realistically spend and encourages us to squash debt like a lunatic. I follow Dave Ramsey’s advice and I strongly recommend that you follow it too.

In addition, I believe that you should make a commitment to reading at least one get out of debt books or other financial book on a weekly basis. Not only will this entice you to follow the debt free lifestyle but you will become financially literate and smarter with your money and even more committed. When searching for a get out of debt book is to do your research. Review unbiased reviews and then go to the library and get several books on the subject. Next, you should read each one and then combine the advice and create your own financial plan that you can stick to on a daily basis. 

Good luck prosperity seeker, I’m rooting for you!

So, many of you probably have a mountain of credit card debt. I hear you and I know your pain. I am working hard to eliminate credit card debt and have made a point to pay off all of my credit cards one card at a time. So, for those of you who are wondering, “ How do I get rid of credit card debt?” I say, “Do it one step at a time.”

Stop using those credit cards and pay cash for everything. Cut up your cards and cancel them right now. You don’t need them any longer. If you don’t do this, you’ll be constantly tempted to use your credit cards to take care of emergencies that aren’t necessarily emergencies, if you catch my drift. I mean, is a purple and pink hat to match your yellow coat, really an emergency? I think not. However, if you have a credit card, you may be tempted to buy it simply because “you have to have it.” However, if you are committed to paying cash for everything and you don’t have the cash to pay for it now, you won’t by it.

If you find that you absolutely and positively must use a card, then use a debit card or a prepaid card. This will keep you from owing anyone any money and will certainly keep you from overspending. In addition, you should carry cash and use cash as much as possible. It just hurts more to use cash and I find that I actually think about my purchases more when I use cash instead of credit cards.

In conclusion, just remember that the best way to get rid of credit card debt is to stop using credit cards and pay cash and if you have to use a card, make it a debit card only. Good luck prosperity seeker, you can do it!