Debt is not Kool!

What is Debt Snowball?

Paying off debt is a concern for many consumers, and there are different opinions on the best way to go about doing it. Mathematically, it makes more sense to first pay off the debts that have the highest interest rate, and thus, are costing you more money in the long run. But, handling finances and debts is more than mathematics; human emotion is responsible for many of the financial decisions we make.

Feeling discouraged from making little progress, or lacking confidence in our abilities to eliminate debt can sabotage even the best intentions. The debt snowball, a technique first popularized by Dave Ramsey, acknowledges the emotional needs of consumers who want to get ahead of their debt and takes a different approach than conventional methods.

First of all, being in debt can be very frustrating. And it may be difficult to stay motivated in paying off debt, especially for someone who has lots of it. A debt-ridden consumer may be overwhelmed by the number of creditors they owe money to, but quickly reducing that number proves the progress they’re making. With this positive encouragement, a consumer whose determined in paying off their debt may be more likely to stick with their debt-reduction plan until they are debt-free.

Credit to Mary Lan Tomkins

This is a tips how to reduce debt. I found it eHow.com.

So, what do you think about this method?? Its really can help you to reduce your debt and leave your poor life? For me, you need to work hard for that and control it for yourself. Remember about your life and your new future. Its hard if you cannot solve this problem.

Step1
Identify something you want to work towards once you reduce your debt considerably. It could be that big holiday you’ve been promising yourself or the family. Have an exciting goal in mind will make the journey out of debt so much easier.

Step2
Work out how you can save even just $10 or $20 per week from the “toys” and other items list. Remember $10 is just two lunches or four coffees. Do you really NEED cable TV? And you really should be drinking more water anyway… Get the family involved in this search for small change and it will amaze you the savings each can come up with!

Step3
Look at the list of accounts and see which one is costing you the most, or is causing you the most stress. It’s probably a credit card. Stop using it if you possibly can!

Step4
Use the extra money you “found” and put it into that account and pay it off as quickly as you can. This will be the first step to reduce your debt. You will probably surprise yourself by finding new ways to save small change each day. One way that we have found is not to spend the small change you have in your pocket, wallet or purse. At the end of each day it goes into a jar for savings. Add this to the amount you are paying on the account. You will find that you’ll think twice about breaking into notes because you know you’re not allowed to spend the small change! MORE SAVINGS - wow!

Step5
Once the first account is paid off, do steps 1 to 3 again with the next account, then the next one. Add in the money you are now saving by not having to pay the first account. Can you see how your increase in wealth now multiplies? Begin to think of ways you can actively invest the money you are beginning to save as well. Put it to work for you before you begin to spend it on even bigger “toys”!

Ps: I think this is nice tips. Just wonder if some people can follow all 5 steps here easily. Ehm..

Debt is a major problem in today’s world. Many people find themselves with different debt problems, searching online can help you find many debt solutions to suit your situation.

Credit to Dan RObert Collins

This is 5 ways to help you save money from Food and Groceries. Interesting right? All father and mother, you need to know about this because you can cut your debt if you control your expense every month.

1. Stop eating out - This one is a no-brainer and doesn’t really need an explanation. Dinners you prepare at home are significantly less expensive than meals you pay someone else to prepare.
2. Don’t buy frozen meals - If you empty the contents of a frozen dinner onto a plate you will quickly realize that you are getting very little food for what you are paying. Do you realize you are paying $300 a pound for that tiny bit of veggies on the side? If you lead a busy lifestyle, set aside a weekend afternoon to make your own frozen dinners and meals prepared from scratch.
3. Don’t buy pre-cut meats - You are paying a premium for the supermarket to cut up your meat and chicken for you. Doing the cutting yourself will save you about $1 per pound or $223 per year for the average family of four.
4. Pick your own fruits and vegetables — Pick your own fruits and vegetables, which can be purchased at a fraction of what you pay at the supermarket.
5. Don’t eat meat every night - Fixing vegetarian casseroles and such several times a week can save the typical family of four about $3.00 per meal or $15.00 per week or about $800 a year. Vegetarian-based casseroles, stews, soups, bean / rice dishes, and omelets are good substitutes for meat-based meals.

Did you agree with that? So, you can learn more at this article. You can see more ways to help you save money by choosing a right thing by controling your food.

Ps: Oh no, i guess i also need to control my habit of eating. I eat too much! Maybe i can diet and control my money in same time.

In case you are unaware there is much more on the topic of reducing debt. Beginners and experts turn to us as their source for information everlife.com.

Credit to Landon McGehee

Ps: So far, i know many peolpe want to reduce their debt, but always think thats impossible.

Did you know any Alternative Solutions to Debt Reduction? If you only waiting for someone to tell you about that solution. I guess you not have any interest to reduce your debt. So, alert with this.

These days there are number of people who are in debt. For many, debt is the root cause for all evils. If you’re struggling to cover your bills and are being hassled by collectors, you may curse the day you applied for your first credit card. If you’re straining to make minimum payments that feel like maximums, you may swear you’ll never borrow gain. If you’ve just graduated with massive student loans, you may question why you ever thought going into debt for education was a good idea.

There are few alternative solutions available for Debt Reduction. This includes debt settlement, and credit counseling programs. Let us look at the differences of both these programs:

Debt Settlement Program:

* A debt settlement program reduces the total outstanding debt by 50-70% of the original balance
* One can be debt free in as little as 3-36 months
* Usually provides a custom designed payment arrangement that fits your situation and can finally get you out of debt
* Not only reduces the total amount of debt, but also can get you out of debt and satisfy your creditors all at the same time
* Helps rebuild your credit and avoid bankruptcy
* It’s a win – win situation!!!! You are out of debt and you pay off creditors!!!!
* Debt reduction programs such as one offered by www.debtfreeafterall.com provides an easy and convenient payment method. They are professionals experienced in debt settlement, debt reduction, and debt negotiation.

Credit Counseling Programs:

* Credit counseling programs get some interest reduced without any reduction of the actual balance
* Scientific studies have shown that credit counseling does not work 95% of the time, because people get frustrated at the slow pace and lack of progress and drop out, only to find themselves back where they begin
* There are no credit counseling programs that will eliminate credit card debt faster while saving you a substantial amount of money
* Many clients who join credit counseling programs file bankruptcy like chapter 7 or chapter 13

Regardless of the program one should always find ways to eliminate debt and keep the finances under control. Given the above two options, debt settlement offers the best advantage for debt relief as it completely eliminates debt rather than prolonging it over an extended period as most credit counseling programs do.

Article Written by Naz

Ps: Take it easy and reduce your debt slowly.

Although the word debt has a negative connotation, to be American is to have debt. Most of us have mortgages, car loans and credit cards to pay off. The negativity comes into play when we have too much debt and we are unable to pay it off. If you are in this situation, there are ways to get out of it. The first thing you must recognize, however, is that you must be committed to fixing it.

Here are some ways to get started.

1) Kill the addiction- Getting out of debt is just like getting rid of any other type of addiction. If you are in a large amount of debt, there is probably a reason for it. The first step is to realize that you have a spending problem. If you don’t realize this and continue spending the way you are now, nothing is going to change.

2) Don’t procrastinate- After you realize that you have too much debt and a spending problem, you need to make a plan to change it. Often, people sit around stressing, complaining and worrying about their problems rather than doing something about them. The sooner you get started, the sooner you will be back in control of your finances.

3) Pay attention when you shop- One reason that people get into too much debt is that they don’t realize how much they are spending unnecessarily. Start tracking each and every one of your purchases and mentally note whether or not it was needed. If it wasn’t needed, make it a point to not spend money on that type of thing again. Using cash can also help you control your spending. Having an obvious limit to how much you can spend will make controlling yourself easier than having a credit card in your wallet.

4) Talk to your lenders- Many people ignore calls from their bank when they are having financial problems, but it is often better to pick up the phone and talk to them. You can try to negotiate a lower interest charge, or smaller monthly payments until you get back on your feet. It is likely that they will appreciate your honesty, and the fact that you aren’t just ignoring them. Also, negotiating is often better for lenders than you filing bankruptcy. Don’t be too pushy though, it is isn’t their responsibility to get you out of debt, it’s yours.

The best news of all is once you take care of your debt, or at least head into the right direction you will be surprised that you will feel less stressed. You will even find that you sleep better. Peace mind never hurt anybody.

Credit to Sherry L Harris

Ps: Even its only 4 tips, i believe some of you can learn somethin from this tips right?

Small steps will get you back on track. But, it won’t be easy. What’s easy, is delaying the full payment of purchases by putting them on a credit card, and dragging out payments for years. It’s easy to give in to marketing ploys and the human instinct to possess material items. It’s easy to go somewhere to enjoy fun nights out and meals prepared especially for you.

Taking charge of your financial situation will take realistic planning and solid discipline. It may mean giving up some of what you’re used to; it may mean less shopping, more home-cooked meals, and learning how to actually save for the things you really want. It will also take time; you didn’t get this far into debt overnight, and it may take months or even years to eliminate it. But the reward will be true freedom from worrying about how you’re going to get through every month.

Change your spending habits. The first step may be the hardest, coming to realize that you need to change your financial habits. And, if you’re reading this article, then chances are that you’ve already overcome the most difficult hurdle. From this point, take action to reduce your debts and get your finances back in shape. There’s a good chance that you’ll have to do without some of the things you’re used to for some time, but keep in mind that it doesn’t have to be permanently, and making some sacrifices now will give you a better life later. You’re likely to be able to afford some of the things you enjoy once you get your debts under control and become free from debt.

Stop incurring new debt. Forget the points, miles, and rewards on your credit cards. If you are carrying your balances from month to month, then the interest you’re paying on those credit cards is way more than the value of the rewards. Go to strictly cash, check, or debit for all spending. And until you build up an emergency savings, keep one, single credit card in your wallet for true emergencies, such as an auto break-down requiring a tow. Take all your other credit cards out of your wallet and put them in a safe.

Draw up a realistic budget. List your monthly income from all sources, and all your expenses. When it comes to your credit card and other revolving accounts, only list the minimum payment; you’ll be able to pay extra to those accounts when you know how much you have left over at the end of the month. If your expenses total more than your income, it’s a sure sign that you’ve been living beyond your means with the help of credit cards or other loans. It may require a drastic change in your lifestyle, if this is the case.

Live within your means. This simply means don’t spend more than you make. You may need to reduce some unnecessary expenses, like cutting out some extra cable channels and nights out. You may need to take shorter vacations closer to home. You may have to give up your fashion or electronics addiction. Or, if you feel like you just don’t have anything that can be cut, you may have to consider taking on more hours at the office or even a part-time job.

Save enough to get you through a small emergency. This may mean $1000-$2000, or a month or two worth of rent or mortgage payments. A small emergency fund won’t last very long if you were to lose your job, but it will help you get through relatively minor emergencies, such as a car breakdown, or an emergency room visit. The purpose of this fund is to prevent you from having to run up new credit card charges if you run across unexpected expenses, so it should not be tapped into for unnecessary desires. Once you have this saved up, you can take that last credit card out of your wallet.

Credit to Mary Lan Tomkins

Ps: So, did you still think its possible?

Seriously, not many people know about credit counseling. It also new to me and others. So, lets learn about credit counseling. I have this blog because want to learn about credit counseling. So, if some of you have others information or articles related with credit counseling. Hope can share with us here.
So, what is credit counseling??

Organizations who help consumers with debt problems usually refer to themselves as credit counseling services. The first credit counseling service was started by the credit card industry, who wanted a way to limit the amount they were having to write off each year as uncollectible debt and keep debtors paying for a longer period of time without filing bankruptcy. This is why some consumer groups argue that credit counseling services are nothing more than nice collection agencies working for the credit card industry.

Most credit counseling services register with the IRS as non-profits, which gives them considerable tax benefits. Unfortunately, the public seems to equate non-profit with charity, which isn’t at all true. Therefore, don’t let the fact that a credit counseling service is a non-profit mislead you into thinking that it is a charitable organization looking after your best interest. Even though reputable credit counseling services provide good credit counseling and debt management advice to their clients, all of them, without exception, are working for the creditors and the banking industry from whom they derive almost all of their profits (the credit counseling service gets to keep a portion of the amount they collect from their clients).

Ehm..i still not get what is credit card. But i guess, i need to learn more and still need help. Maybe i must find someone to tell me directly about this. Maybe any bank staff can help me explain all this matter. So, i will start learning first.

This is 3 tips how you can save your money by using your car. If your car is mercedes, you can use this tips. If your car is Kelisa. You also can use this method, and even your transport are lorry or bike, you also can use this to help you cut your debt every month.

1. Never buy a new car – The moment you drive a new car off the lot, it depreciates significantly. In fact, a very high percentage of the total depreciation that occurs over a car’s life occurs when you drive it off the lot. Buy a car that is just a year old and you will pay close to what the car is actually worth. This way, the person who owned the car before you pays for all that depreciation.
2. Hide your trade-in from the car salesperson — In order to maximize the profit he makes when you buy a new car, the sales person will offer you less for your trade-in if you manage to effectively negotiate a lower price for your new car. If you can, hide your trade-in from the salesperson by parking around the block, etc., and refuse to discuss or negotiate the trade-in price until you have negotiated the price of the new car.
3. Maintain your vehicles — A little preventative maintenance can save you a fortune in repair costs. Spending $50 to maintain your vehicle can save you $800 or more per year in repairs. Follow your vehicle manual’s recommended maintenance schedule religiously. If you learn how to do as much maintenance yourself as you possibly can, such as changing your own oil, filters and antifreeze, you will save even more.

So, i hope this 3 tips will help you. What do you think about this ways? Never buy a new car? I agree even my father intend to buy a new car. But its his own money, so i have no idea to stop him do that.