Get Out Of Debt - Debt Solutions
What
is debt? Debt is money owed to another person or institution.
DEBT
PROBLEMS...YOU ARE NOT ALONE
Personal
debt problems are an epidemic in America. More than twenty million
Americans are experiencing financial problems at this very moment.
Many
Americans are living paycheck-to-paycheck each week and are consumed
with daily stress and sleepless nights because of it.
Debt
problems can happen to anyone, while some people are earning over $100,000 a year some some
owe thousands of dollars in debt, others no more than $500.
The
problem is not our income, it is what we spend. Spending equal to or
more than we make leads to serious financial problems.
Americans
are a "want it" now society... we always want more and more stuff.
Influenced by a multitude of advertisements, we think we must have
the latest, the best; and it must be state of the art. This leads
into financial disaster.
The
Bible speaks of and teaches the undesirability of debt. Debt should
be a last resort. Debt is not meant to be a way of life but many people today live on borrowed time and money.
WHAT
LIVING ON BORROWED MONEY DOES TO US
We
began to juggle our money week to week and month to month, trying to
stay one step ahead of our mounting bills and responsibilities. We
live in constant fear of falling behind and being drug into court by
our creditors.
The
fear adds more pressure on us, causing problems in our personal
relationship with our families and friends. Like a tornado, this violent cycle sucks
the joy of life from us.
The
emotional and physical toll are very strenuous. We become to feel defeated,
hopeless, and depressed.
Being
in debt is an unpleasant experience for anyone.
FREEING
YOURSELF FROM DEBT
You have
taken the first step in freeing youself from debt by reading this
report. The second step is the desire to stop incurring debt.
Credit
and Debt Counseling Service
Too
much credit card and other debt can become a problem. If this
happens to you, there are organizations that can help you manage
credit wisely. They specialize in credit counseling and offer credit
and debt consolidation services. Contact freedebtquote.com
for your free debt consolidation quote now.
TOO
MUCH DEBT THE WARNING SIGNS
You are
unable to pay your bills on time and start falling behind.
You are
receiving past-due notices.
Your
creditors sends you letters requesting that you send a check at once
or your account will be turned over to an collection agency.
You are
afraid to open your mail for fear of the bills or letters from creditors.
You are
unable to balance your checkbook, you are over extended and paying fees
to the bank for returned checks.
You
don't send the check for the bills.
You
use your credit cards to obtain spending money or to pay a bill.
You
borrow money from family and friends.
THERE
IS HELP & HOPE
Your
debt is not hopeless. It is like a car being driven into a ditch,
there is a way out.
Debt
is only a problem, and the problem has a solution. To begin
eliminating the problem you must first reconize and admit it.
HOW
DEBT HAPPENS
Debt
has the snowball effect; it starts off small, scarcely noticed, and
keeps getting larger and larger until it spirals out of control.
THE
CENTER OF THE PROBLEM
Repeated
debt results from distorted attitudes and perceptions about money
and self-worth. Self-worth... If you feel less than, you will spend
more. People often spend more than they have or earn on designer clothing,
the new flashy car, etc in order to feel more conformed to society. You will
overspend and the credit card debt will keep climbing
higher. Your closet may be overflowing with expensive clothing, your
children may have the best of everything, but at a cost of more than you
can afford. You may live in the very best neigborhood, drive the new
car, but you live in fear, waiting for the moment when the weight of your
financial life falls crashing around you.
You
may use shopping as a pick-me-up.
You
had a bad day and you attempt to make yourself feel better by
shopping and charging a new outfit that you really don't need.
You are
bored and use shopping as something to do just for the thrill of it.
When you use money this way, you are abusing it the same way others
abuse drugs and alcohol.
Everyone
has these feelings and there are ways to change them; read a book,
watch a movie, work out, or call a friend. If you buy and use credit
cards to make yourself happy, you are heading toward debt problems fast.
NO
AMOUNT OF BUYING OR SHOPPING WILL MAKE YOU HAPPY
Happiness
comes from within, not from outside sources.
MONEY
IS NOT EVIL OR CORRUPT
One
of the most common and harmful mental blocks is the belief
that money is bad. Do you feel that money is evil, or that everyone who has
money is corrupt or greedy? With these thoughts lodged deep inside
your subconscious, you are fighting an endless battle. You don't want to
see yourself as greedy or corrupt, so you keep yourself in debt and
without money. People confuse the Bible verse that teaches the love
of money is evil. In the book of Timothy, it reads "The love of
money is the root to all evil." The word love is used as a lust
for money. Certainly the love of money can promote greed and
selfishness. Money itself is paper. You can't eat a dollar bill. All
wealth is the product of the human mind. Start today and create a
positive view of money. Money can be a positive and powerful agent of
good in the world. The use of money can help the lives of others, and it
can enhance your quality of life and well being.
WAYS
TO CONTROL SPENDING
Stop
Going Into Debt
This
one point is the key to getting out of debt. Stop charging on your
account. Get rid of your credit cards if you cannot control them.
Create
an Emergency Fund
You
will need to create a fund for minor emergencies. Some people
establish savings accounts. Begin to put aside at least 10% of your
income for any repairs you might have to make. Start with a small amount, but make
it regular. Put that portion aside from each weekly paycheck. You
will find that $200-$500 in your emergency fund can be a huge help.
Decrease
Expenses
You
may think this is impossible for you, but every little thing adds up.
You can live without the extra cable channels, and phones sevices.
The amount you spend on sodas and snacks from the corner quick stop or vending machine add up quickly.
Brown bag your lunch instead of going out for it. Make meals at
home instead of dining out.
If
you spend more than your income, you are going to be in debt.
If
you continually spend more than your income, you are heading for disaster.
There
are only two ways fix this problem:
1.
Increase your income
2.
Decrease your money going out
To
become debt free you must learn to spend less than your income.
This brings us back to the point of this section; you need to
seriously look at your expenses to see what can be cut back.
Extra
income usually gets spent; I have an extra $300 a month, so I
can purchase the new car that I've always wanted. Extra income almost never gets
people out of debt. It comes by reducing your spending.
Interest
on debt is probably the greatest waste of your money. So, by
refusing new debt you will begin to reduce your expenses. But there
are other areas to consider. Look at the following questions:
Check
your expenses like phone extras, cable TV, health club, etc. Do you
really need them?
How
much do you really spend on your hobbies such as fishing, hunting,
etc? Don't guess. Add it up. What could you cut?
How much do you spend eating out?
How much
do you spend on entertainment such as going to movies, concerts, having evening
drinks, and sports?
How
much do you spend on vacation? Is it really necessary? Could you
stay at home and take short trips in your surrounding area this year?
Could you go to state parks instead of expensive amusement parks?
Could
you drive a cheaper car, live in a smaller house, eat more beans and
potatoes, buy fewer pre-prepared foods and frozen food items?
The
extended warrantees that are offered with about everything you buy
are a good case-in-point. Have you ever wondered why these
warrantees are pushed so much with about everything you purchase? Is
it because they are such a good bargain for the consumer?
No!
They sell these to you because they provide such good profit for the
company. On the whole, people gain much less from these warrantees
than they will spend.
Another
waste of money is interest, especially the high level of
interest most people pay on credit cards.
WHAT
YOU CAN DO TO HELP YOURSELF
Read
the Fair Debt Collection Practice at http://www.debtclear.com/fair_debt_collection_practice_act.html.
The Fair Debt Collection Practice prohibits a debt collector from
harassing or theatening you, using false statements, or giving false
information about you to anyone.
Try
to reduce your expenses. Cut out any unnsecessary spending such as
eating out, going to the movies, and purchasing expensive items that
you don't really need. If possible, consider taking public transit
rather than owning a car. Clip coupons and purchase sale items and
generic products or store brands at the supermarket. Avoid impulse
purchases. Always shop with a list and stick to your list. Do not carry extra money to the store. If you do not have the money with you, you cannot spend it.
The
difference between a ...WANT IT - NEED IT ...
WANT
IT is a luxury item that you can live without, such as a new larger
stereo or tv, cars, cds, books..etc. It is something that you desire
but it's not a necessity for living. NEED IT is a necessity - such as
food, shelter, and clothing ...with exceptions of course, no one needs
50 shirts, 50 pairs of pants, or 50 pairs of shoes. A week or two
supply of clothing is enough. When you purchase clothing, make sure
that the new items are pieces you can wear with the apparel in your
current wardrobe. Make certain the item is a good fit, or it will
probably just take up closet space. To save money, purchase clothing
at clearance sales, thrift stores, and yard sales.
Use
your savings and other assets to pay down debt. Withdrawing savings
from low-interest accounts to settle high-rate loans and credit cards
usually makes sense. Selling off a second car not only provides cash
but also reduces insurance and other maintenance expenses.
WHAT
OTHES CAN DO TO HELP YOU
If
creditors are pressing you debt consolidation services can negotiate
with your creditors to repay your debts through a financial
management plan. Under a debt consolidation plan, creditors often
agree to reduce payments, lower or drop interest and finance
chargees, and waive late fees and over-the-limit-fees. After starting
the debt consolidation plan, you will deposit money with the debt
consolidation service to cover these new negotiated payment amounts.
The debt consolidation company will distribute this money to your
creditors to repay your debts.
PERSONAL
BANKRUPTCY
Bankruptcy
is a legal procedure which can give people who cannot pay their
bills a fresh start. A decision to file bankruptcy is a very serious
step. Filing bankruptcy will appear on your credit report, making it
impossible to obtain credit for 10 years. You should file bankruptcy
as a last resort only if it is the best way to deal with your
financial problems.
There
are two types of bankruptcy available to most individuals. Chaper 13
or "reorganization" allows debtors to keep property which
they might otherwise lose., such as a mortgaged house or car.
Reorganizations may allow debtors to pay off or cure default over a
period of three to five years, rather than surrender property.
Chapter
7 "straight bankruptcy" involves liquidation of all
assets that are not exempt in your state. The exempt property may
include items such as work-related tools, basic household
furnishings, etc. Some of your property may be sold by a
court-appointed official or turned over to your creditors. You can
only file for Chapter 7 every six years.
Both
types of bankruptcy may get rid of unsecured debts, and stop
foreclosures, repossessions, garnishments, utility shutoffs and debt
collection activities.
Bankruptcy
cannot clean up a bad credit record, and will remain a part of your
credit record for up to 10 years. This can make it very difficult get
a mortgage to buy a house, purchase a car, or obtain a credit card.
Bankruptcy usually does not wipe out child support, alimony, fines,
taxes, and some student loans.
Bankruptcy
cases must be filed in federal court. There will be a filing fee
which sometimes may be paid in installments. The filing fee does not
include the fees of your bankruptcy lawyer.
You
should file bankruptcy as a last resort.
THERE
IS HELP & HOPE
Your
debt is not hopeless. It's like a car being driven into a ditch.
There is a way out.
Debt
is only a problem and that problem has a solution. To begin
eliminating the problem, you must first reconize and admit the problem
Credit
and debt consolidation services keep your financial information
confidential. Creditors generally see contacting a debt consolidation
service as a positive step. Because creditors support debt counseling
through voluntary contributions.
FreeDebtQuote.com
offers free debt consolidation quotes to consumers. We are dedicated
to helping financially distressed individuals and families manage
their personal finances. You can apply for your free debt
consolidation quote by clicking here now.
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