Finance

The Key to Building Wealth

Many people today believe in order to become wealthy they either have to be born into wealth or have a lot of money to make money. The fact is this just isn’t true. Building wealth is a mechanical process and because it’s so simple it’s quite boring, therefore many people do not follow through with the formula.
The Problem
Too many people fall into a financial rut and it usually starts when we begin moving money from one credit card to another. Sure this works for a short while, but eventually it catches up with you and before you know it you have $5000 maxed out on your VISA card and $3000 maxed out on your Discover card.
The next genius move I consider was debt consolidation. While this does work and the phone calls will stop, it’s not a solution for the problem at hand. Your monthly payments become lower and this provides the temptation to go out and accumulate even more debt, eventually taking you back to square one. Not to mention having a history with debt consolidation leads to higher rates on things that count later in life.
Back at square one, the next step I considered was debt counseling and the idea sounded great, they even promised to lower my monthly payments by $300. I managed to avoid this one all together and now that I look back I am glad that I did. What I later found out is that debt counseling is viewed as bankruptcy.
By this time I decided to refinance my home with an equity line/2nd Mortgage loan on my home to get out of debt and it worked perfectly. However, let me tell you a little secret. When you take out a 120k loan on a home that is only worth 90k and the neighborhood starts going downhill like ours did, you cannot sell your home for what its worth. Again, we were stuck in rut where we had to borrow money from family to sell our home. Other home owners in the area were not as fortunate.
At this point in time I was seriously considering bankruptcy. If you think that after seven years nobody will know about your bankruptcy, you are mistaken. In some cases jobs won’t even higher you if you ever had a bankruptcy. Most loan applications ask if you have ever filed for bankruptcy and they do take that into account even if it has been 10 years since you filed for bankruptcy. This is when I became desperate and finally cracked the money making formula.
The Solution
In 2005 I made a new years resolution to stop spending money on things that required me to make a monthly payment. Instead, I would take my paycheck and spend it on assets, or things that put money into my pocket month after month. I like to call these assets investment vehicles. It does not matter which types of investments you choose, just as long as they are all leading to the same place financially.

Chris Rohrer is an established writer and home business owner. Chris Rohrer makes it easy for anyone wishing to get started with their own home business. http://www.mazumoney.net

Jordan – CELL Calling Cards

Are You Getting Deeper and Deeper Into Debt?

If you are getting deeper and deeper in to debt then it is high time for you to manage all your debts and to consult to a debt management company. Debts.tv provides the easy plans to pay monthly installments with low APR rates and that too without any hassles.
A debt management company works is that it allows you to collect all your debts into one single debt amount and then they work out for an easy and hassle free repayment plan where you can pay your debts in reasonable and easily affordable monthly installments. Now a day, there are numerous debt management companies in the UK also which help you to overcome your financial downturns with huge debt amounts.
Debt management is needed in critical financial crisis conditions and debt management companies helps in managing your funds and money to protect you from the mortification of debt struck situation. A well planned debt management plan helps you becoming enabled to manage your money planned manner and to lead a wealthy life during times of financial downturns or financial crisis conditions.
How these Debt Management companies work? All the Debt management companies negotiate with your creditors in order to eliminate late fees, reduce or eliminate high interest charges and other penalties, and update your due accounts to show current status. The debt management companies contact your creditors and negotiate for your debts with easy repayment installments on nominal interest rates. These debt management companies lay out debt management plan for you in order to make you debt free.
Most of the debt management companies offer easy and reliable debt management planned procedure of compromise or negotiation with creditors, especially unsecured creditors, to reduce or to lessen the repayment amount and / or a reduction in interest charges also.
An effective debt management plan can decrease your monthly repayments by up to 70% (depending upon your debt amount). Debt management companies considers and consolidate almost all kinds of debt ranging from credit card debts, loans and other problem debts, into one lesser monthly payment.

For http://www.debts.tv
Ritu Singh

Haiti – CELL Calling Cards

How to Choose the Best Assistance For Your Debt Problems

Life is a game with money. It has the power to make one rich and make one poor. It is the soul foundation for one’s happiness and sorrow. Moreover, truth keeps silent when money speaks as it is the wise man’s religion.
No one is satisfied with the money he earns. Desire drives his every movement and controls the pace of his dreams. When need becomes the king, and when necessity rules over his head, dependence become his only source. Thus he borrows money and he becomes a debtor. The person who lends the money becomes the creditor.
There are various ways of debt commitment. Loans, mortgages, promissory notes, debentures, etc can be included in the debt. The debt increases with time, if it is not repaid on time. Some creditors claim huge interest along with the paid back money. That adds to the already laid off burden.
Analyzing the present scenario, credit card debt is taking over the scene more than any other debt. As the usage of credit card goes up, so do the debt on cards. Thus it disturbs normal life, creates tension, brings out problems, and even upsets social life. Thus debt becomes a villain and dominates your life.
Now so many options are available for debt assistance. It is only that you need to choose the best type of aid that suits you and your debt situation. Normally, they are divided in to three-

Debt consolidation

Debt negotiation

Debt settlement

Debt consolidation-
Debt consolidation is one that makes use of one loan to pay many other loans. This secures lower interest rate, and the payment is lower than what the credit card companies offer you when you are in credit card debt. Debt consolidation basically focuses on reducing interest rates.
One advantage of consolidation is that it will relieve you from the hold of creditors as long as you make new lower monthly payments. If a loan is used against an asset which is collateral in debt consolidation, then a mortgage is secured against the asset. Most probably the collateral security will be your house. In collateralizing, the asset owner allows the foreclosure of the asset in order to pay back the loan.
The interest rate for credit cards is larger than unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a collateral security. But the pitfall is that when the habit of spending more than the income with credit card continues, even consolidation will not work properly.
As consolidation helps a consumer getting high interest debt balances, companies take advantage of that by making consumers pay high fees in the consolidation loan. You are also supposed to cancel all the credit cards included in the debt consolidation repayment plan.
Debt negotiation-
When a debt consolidation does not work for you, you can go for assistance in debt negotiation. If you have failed to meet the payments in the debt consolidation plan, you can resort to negotiation plan.
In this step, creditors are not involved in the repayment process. Rather the companies will make an account and keep your monthly payments. When this type of transaction happens with your debt negotiation company, it helps in negotiating the amount with your creditor, thus removing you from the scene. Once the negotiation is settled, then the company pays an amount which is considered as the one time payment for the creditor.
One disadvantage of the negotiation plan is that it can make a negative mark on your credit score rating. If the company does not take proper steps, there are possibilities that your credit score decreases considerably. This problem can be solved by making the creditor show the credit report paid as complete.
Debt settlement-
Debt settlement is the program by which consumers with the help of a debt negotiator settles debt problems with the creditor in order to settle the unpaid balances and other payments. Debt settlement eliminates part of your debt.
Debt settlements can be performed in almost every type of debt. But it is most used for credit card debts as it is the easiest and fastest type of debt to acquire.
The eligibility to participate in a debt settlement program is to have a good credit card history, i.e., a good payment background.
A debt settlement program gives you a lot of options to remove your debt, reducing your major debt amount and late fees, and provides you the facility to pay back the amount within the period you specify.
The disadvantage in debt settlement is that, creditors can drop your credit score considerably resulting in making you ineligible for conventional loans.
Choosing the best assistance for debt problems-
Debt is a serious issue. It is not possible to just walk away from the problems putting away the matter in a tied up hurdle. It is always best to deal with debt problems from its developing stage not allowing it to spread and be infectious.
Once you find yourself in debt and you decide to get help from a source, do a lot of analysis and pre thought to it, understanding the issue to be not so silly. Selecting the right assistance from a place also may put you in problems. The steps involved in this process are:

Examine your debt problem

Analyze the seriousness of the situation

See whether you can tackle it yourself

Find out how you can go for assistance

Choose the best assistance

Abide by the rules of negotiation, settlement or consolidation

Make sure you do not spend more than what you earn

Usually man himself puts him in trouble by doing things without prior thinking and spending more than what he can afford. The chances for debt are more if he has a credit card too. It is always better to play everything safe and keep yourself restricted in expenses.
A man in debt is so far a slave. He is not free until and unless he resolves his debt problems and goes back to a situation, free and simple. A little carefulness can avoid a big crisis in life; the same way a bit of carelessness can put you in a bad turmoil. As Thomas Tusser puts it, “Who goeth a borrowing, Goeth a sorrowing.”

Rekha is seo copywriter for debt-settlement-company. She has written various articles
for debt settlement company. For more information on debt settlement visit http://www.debt-settlement-company.com
You can contact her through mail at kristinarekha@gmail.com

Vietnam – CELL Calling Cards

Loans and Credit Problems

Most of us owe money to people or organisations most of the time: bills are a fact of life. But occasionally, we may find ourselves swamped by Debts, and can`t see a way of paying them all. But it`s never a good idea to ignore bills. Instead you need to get help to deal with them.
Most Loans that you have which aren`t on a Hire Purchase agreement and aren`t Secured on your home {eg, Mortgages} are called regulated credit agreements.
If you have several Debts, any Loans are ‘non-priority’ Debts. This is because you can make an arangement through the courts to pay the Loan back at a rate you can afford. Provided you continue to pay what you agreed, and payments are on time, the Creditors cannot use methods like Bailiffs to get your belongings.
If you receive a ‘Default notice’ from the Creditor make sure you get expert advice, because this means that they can then take cort action against you.
If you are dealing with many Debts there are several ways, using the court’s, that you can sort things out yourself.
1. Administration Orders
2. Individual Volutary Arrangement {IVA}
3. Bankruptcy
Here we outline common types of Debt and what the Law says hat you, and the Creditor, must each do when the creditor wants to get the money you owe.

Keith Davies owns many financial sites and can offer Loans help and financial solutions.

Papua New Guinea – CELL Calling Cards

Decrease Daily Debt – Top 10 Ways

Home is where the debt is.
Debt reduction is about spending less money so you can pay off your current debts while not accumulating more debt. Car payments, Christmas shopping, and credit cards enable the amassing of debt rather quickly. When bills are coming every day and you don’t know where to turn or how to save any more money, look at your own home.
Everyday, you leave a light on. You turn on the air conditioning or you turn on the heater. You take a bath. Daily living requires spending of your money, whether you realize it or not. Daily living is the first place you can start reducing your debt.
Cutting up credit cards is an easy decision. Limiting yourself to a budget is an easy decision. What about fixing a drippy faucet or turning the heater down a few degrees? These actions don’t seem like they could save you much money. In fact, you could be saving a lot by doing just 7 to 10 things around the home.
No one likes being in debt, yet most people are in debt. The hardest part of getting out of debt is deciding on getting out of debt. You have two choices, may more money or reduce your daily spending. What can you do in your daily living that could reduce your debt?
There are 10 easy steps that you can follow that will decrease your daily expenses and move you towards debt free living.
1. Cancel television services or reduce the television subscription with a smaller channel package. Reducing the package can easily trim your cable television bills by $20 a month. Dish subscribers could save a lot more. The best way for reducing costs is by dropping the pay channels such as HBO and Showtime.
2. Use energy-saver light bulbs. These are more expensive than regular light bulbs but last years longer – enough to pay for themselves over regular bulbs several times over.
3. Recycle paper items like envelopes and one-sided paper for use as shopping lists or scratch pads. Paper is getting more and more expensive. Debt can be reduced when recycled items are being used.
4. Use rechargeable batteries. Current portable electronics are burning through batteries at a rapid pace. You’ve probably got battery operated alarm clocks, caller-id boxes, wall clocks, and other items that could benefit as well. By using rechargeables, the environment wins and so does the savings account.
5. Reduce the recommended quantity of cleaning products. It’s a matter of trial and error. Start by reducing amounts in half. This works with shampoo, shower gel, dishwasher detergent, etc. You could save from $20 to $100 per month with this method.
6. Don’t leave electrical products on standby. A plugged-in toaster still gets a little bit of electricity. Every bit of savings helps. A fire department official said toasters cause quite a few fires each year. Save money and your house!
7. Don’t have the heat on and the windows open. This is easy to do during the months where the temp’s jump up and down.
8. Take a shower instead of a bath. You’ll cut down on your water bill. Quick showers save time as well. Also, set your hot water tank at 60 degrees.
9. Turn your central heating thermostat down by one degree. Every little bit helps…and it makes a big difference in your monthly heating bills.
10. Turn off lights if you are not in the room. Many new homes have ceiling fans with light clusters. Therefore, you could be burning four light bulbs at once in an empty room.
These 10 steps can decrease your daily spending which provides more money for paying towards other debts such as credit card debt.
Get out of debt – you can do it! Start with these 10 easy steps. Review your finances in a month and you’ll see the difference.
If you don’t know how to attack your debt problem or don’t understand the in’s and out’s of debt reduction, the internet provides a variety of great resources. Take the time to understand the facets of debt reduction and you’ll be better off.

Chris Huff runs http://www.debt-reduction-solution.com providing information on debt reduction and how you can kill off deadly credit card debt. You can sign up for the 5 Step Debt Reduction Strategy or read the daily debt blog. For more information, please visit the website. Chris also runs http://www.squidoo.com/debtfree which provides debt reduction resources.

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Prepaid phone cards A prepaid phone card has a set value, or number of minutes,
assigned to it for making domestic or international phone calls.

calling card

When A Debt Is Old, How To Stop Bill Collectors From Legitimately Coming After You

Each state has their own laws regarding when creditors may sue debtors for failing to pay or violating a written contract. This would include credit card accounts, accounts set up for buying a car, rental leases, and other contracts involving debt.
Some states have a limitation that can be six years, in some states it can be up to 15 years. Check your own state law. If a debt is older than the state’s law, the collector has no legal authority to really collect the debt.
Typically, the “clock” starts at the time of last activity, such as the last payment or inquiring on the bill. On a credit card, every payment you make renews this “clock.”
Even if you make a payment of $5 to a debt collector, that becomes an acknowledgement of the debt… and means that you’ll have to pay it all. A debt collector sees their job as persuading a person to make even the just the smallest payment toward a debt that is too old to be taken to court, then debt is renewed. But if you don’t say anything at all to the debt collector, most likely they can not collect on the debt… of course you’ll have to check the laws for your state.
To stop a collector from contacting them, consumers can write a letter telling the collector to stop contacting them. After that, according to the federal Fair Debt Collection Practices Act, the collector cannot contact a consumer unless it’s to say there will be no further contact or to notify of a specific action, such as taking the consumer to court.
If the consumer owes a debt and it’s within the time frame, the collection agency or the creditor can seek legal judgment.
Again, and I can’t stress this enough… a person needs to be very careful about what they say or write to a debt collector, because it might be a way of admitting the debt, therefore restarting the clock.
For example, if a person didn’t get enough information from a debt collector over the phone and wrote a letter stating something to the effect of, “Could you please send me an itemized bill,” that could be considered owning up to the debt.
To avoid confusion, anyone caught in this situation should write the collector a letter stating that they do not owe the debts and to stop contacting them.
There are also other rules in the federal law that collectors must follow. If the rules are broken, consumers can file complaints with the Federal Trade Commission.
We’ve experienced collectors calling on debts that are 12 years old. These collection companies are what’s referred to as a “debt buyer.” Debt buyers make a living acquiring old, charged-off accounts from creditors, then collecting on them.
Here’s the most important key to it all: often they’ll buy the accounts for pennies on the dollar because the accounts are too old to be taken to court.
To be safe, consumers should check their credit reports and dispute bad debt claims. And if a collector calls you… deny the debt and ask them to stop contacting you. Copyright 2005.

Jessica Deets researches the internet and finds information of value to help people. The website at http://www.bestcreditreportinfo.com has more news and information about credit reports. You can also comment on the credit blog at http://www.bestcreditreportinfo.com/blog/

Russia – CELL Calling Cards

Don?t Let the Threat of Home Repossession Threaten Your Family?s Christmas

Typically, when we think of Christmas time we think of presents, Christmas trees, Santa, family and that all important slap up meal – turkey, stuffing, pretty much any vegetable you want, those little sausages, stuffing and gallons of gravy! Well not gallons as such, but you get the picture.
However, the festive season also means additional financial burden for a large percentage of households. The nature of the holiday season means that overspending and debt go hand in hand with all the glittering promotions and gimmicky adverts – the Interactive Media in Retail Group (IMRG – http://www.imrg.org) predicts that this year, 24 million UK citizens will spend a total of £5 billion this Christmas – that’s just online, and a 20 fold growth from 2000!
This will no doubt leave a lot of us with a temporary feeling of satisfaction, but the New Year hangover tends to last a little longer as we are very much a nation in debt, and that debt is getting larger. Total personal debt in the UK broke the £1.1 trillion barrier in June 2005 – only 11 months after breaking the £1 trillion barrier (source: http://www.creditaction.org.uk/debtstats.htm).
While managing debt month by month in this period of relatively low interest rate is easy for some, it quickly becomes a nightmare for those who over commit themselves and start defaulting on repayments and consequently both charges and interest soon mount up along with the threat of county court judgements and worse still, the threat of house repossession.
For people who are trying to sell their property during the festive season it can be very hard as there are few buyers in the market at this time of year.
Consider a quick property sale scheme to release equity from your house
One solution could be a company like A Quick Sale (http://www.a-quick-sale.co.uk) – property investors who offer a quick property sale solution. Although you may receive less than the open market value of the property, the turnaround on the service is much quicker than selling your property through an estate agency – you don’t have to wait to find a potential buyer.
This can be an excellent solution for people who are facing eviction or repossession – you can release the equity in your house (within a matter of 5 working days) and even arrange to rent your property back so you don’t have to move out – there’s even a future buy back option where you can agree a set buy back price with the company.
By allowing consumers to free themselves from their debt, particularly during the Christmas period, services such as this can give people options where there were none before. No doubt clearing all your debts can be a huge relief and reduce a great deal of stress – but it also enables you to set up for the future – to regain financial stability before returning to the property ladder at a later date (when you otherwise would have been still paying off debts and no doubt accumulating more interest in the process). Credit Action report that “20% of us are still paying off our Christmas splurges up to six months later, and one in ten is still paying for last Christmas in November 2005” – why be part of those statistics if there are other options you can take?
Managing debt is an important part of modern life that many people fail to prioritise effectively until it’s too late, which is one of the key issues that has resulted in the rapid increase in levels of bankruptcy within the UK. There are lots of independent organisations set up within the UK that can help with debt related issues, most of which don’t charge for their services – these include the Citizens Advice Bureau (www.adviceguide.org.uk) and the National Debtline (www.nationaldebtline.co.uk) – the BBC also has a good list of organisations that can help out with personal debt – http://news.bbc.co.uk/1/hi/business/4441882.stm.
Debt problems are a very private issue that people rarely discuss openly with friends and family members – it is this hidden stress that usually creates more issues. If you are having problems with debt you are by no means unique. Problem debt shouldn’t carry the taboo that it does. By discussing ways to manage your debt issues with either friends or family members (who may surprise you with their wisdom) or with professionals skilled in these matters, you can find that the most painful aspect of debt can be lifted – the mental burden of feeling swamped and out of control. From there, it is just a numbers game and over time you can work towards not being part of the statistics anymore.

Peter Scott is a researcher for the internet marketing company Optimiser and a regular contributor to discussions on search engine marketing and directory building. http://www.optimiser.co.uk

Prepaid calling cards are so popular that some companies even supply them to their
employees as a company benefit, or provide employees with calling cards to use while
traveling for business. Doing this provide benefits not only to employees, but to
the company as well, as spending cal be tracked easily, and a record tracking the
calls made by the phone card user is readily available online.

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Online Debt Management and Credit Debt Management

Online debt management sources provide financial tools and options for anyone interested in budgeting, controlling spending, debt relief, investing, retirement, mortgages, and education accounts for children. There are non-profit agencies, Christian financial ministries, law firms, money management companies and debt relief businesses that can assist you in all your credit debt management interests. Some sources offer credit debt management specialties through debt consolidation and debt negotiations. Others offer services for personal investments and savings. Still other organizations provide a broad range of services from financial education to implementing financial strategies for the client.
Online debt management is one of the top needs of consumers today as unsecured debt continues to burden individuals and households because of huge credit card debts, personal loans, unforeseen medical bills, and unplanned educational costs. The most appealing, beneficial and short-term solution that has appeared on the financial horizon is credit debt management through paying off debt through debt negotiation or debt consolidation methods. Credit debt management is a critical need of the American household, as analysts believe that the plague of debt cannot only hurt the family institution, but the national economy as well.
Financial difficulties are one of the top reasons for discontent and breakups among married couples, making credit debt management priorities an important area to establish for the sake of everyone. Those who have decided to get their finances under control have contributed to the popularity of debt settlements and consolidations by choosing these solutions for their credit debt management dilemmas. There are Christian and secular business company’s who offer debt settlement and consolidation programs to any client willing to adjust financially in order to secure a debt free future. Each online debt management program has its particular debt relief solution allowing clients to choose which is best for them.
A debt negotiation company basically provides professional arbitrators who are competent in negotiating a settlement with creditors for total debt amount with penny’s on the dollar. This type of online debt management can totally wipe out all outstanding debt with sometimes as high as a 60% percent savings to the client. Debt consolidation offers methods through mortgage loans or loans for other existing collateral, with the purpose of paying off all debt through one low-interest, monthly payment. The overall savings for many qualifying clients through debt negotiations has caused this credit debt management option to become more and more attractive to consumers. Check for the many credit debt management programs throughout the Internet and find the financial assistance you need.

For more information about online debt management, visit:http://www.onlinedebts.com

Deaveraging Because it is more expensive to provide certain services in some areas
than it is in others, many long-distance carriers vary their charges for the same
services in different areas.

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Using Online Debt Management Programs

Online debt management programs can help you get out of short term debt
in five years or less. They can also help you create financial goals
and a livable budget. With credit counseling, you can start new credit
habits, improving your finances. When you do search for a debt management
program, make sure you find one that works with your lifestyle.
What Can Consumer Debt Management Do For You?
Debt management programs primarily help you get out of debt by handling
your bill payments. By working directly with your creditors, they can
lower interest rates, eliminate some or all late fees, and reduce
paperwork hassles. You make one payment to the debt management company, and
they pay your bills throughout the month. They also deduct their fee.
Some debt management programs also offer other services, such as credit
counseling. Either online, over the phone, or in person, you can work
with a counselor to develop a budget and financial goals. They can also
give you strategies to get out of debt sooner.
Online Debt Management Restrictions
Even the best debt management programs have their limits. They cannot
change your past credit record, nor can they improve your credit score
overnight. However, within a couple of years you could be in good credit
standing.
Working with a debt management program may freeze your credit with a
financing company for period of time. Each lender is different, but many
want to see at least a year of on time payments before they will extend
more credit to you.
Searching For the Perfect Debt Management Group
Debt management companies come in a variety of styles. You can work
with a company online, over the phone, or in person. You can also find
companies that will work strictly on debt management services, referring
you to others for credit counseling.
Check out several programs before committing to one. Ask about their
process and make sure it works with your lifestyle. Also, request pay off
dates for your accounts. Detailed answers are a sign of experienced
companies. Finally, work with people you feel comfortable with. Debt
management takes a couple of years, so you want to work with people you can
trust.

Here are our Recommended Debt Consolidation Companies Online.
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

Norfolk Isl. – CELL Calling Cards

How to Get out of Credit Card Debt Using Self-Help Techniques

Running up credit card debt, it’s so easy to do, especially since we are all trying to achieve the American Dream— a new chair for the living room, braces for the kids, a new outfit for Saturday night dates, eating out with friends, and driving our new SUV that guzzles the gas and increases the insurance bill. It all seems to have become a part of normal daily living. We pay the minimum due, watch the balance go up, and put on a happy face because we’ve got it all.
Gerri Detweiler, author of Slash Your Debt, Save Money & Secure Your Future and founder of DebtConsolidationRx.com, notes,

“Americans are pretty optimistic so it often takes a long time for a consumer to realize credit card debt is a problem. Most of us are counting on something to help us get rid of the debt quickly. It could be a raise, business income, even an inheritance or lottery ticket.”
That’s what Chip and Shelley Smith of Midland, TX thought when they first got married. Happiness must at least partly come from keeping up with the Jones’s. But years later and upwards of $50,000 in credit card debt Shelley says they had nothing to show for it. They aren’t world travelers and they weren’t having any fun. It was the daily trips to Target and Pier One Imports for items they didn’t need but thought they might use one day that got them into trouble.
They finally woke up after attending a Dave Ramsey seminar and realizing the craziness of paying interest for pizza. After making changes in their lifestyle, selling lots of items on Ebay including family heirlooms, and working their way out of debt, Shelley now sleeps well at night free from wondering how to pay their bills.
You can sleep well too! Detweiler says if you have credit card balances running up with no idea how to make them start running down, if you have no idea how long it would take and how much it would cost to pay your balances off, or if you’re paying off a credit card with another credit card it’s time to get serious about your debt.
Create a Repayment Plan
This is the first important step in your journey because it lays out the path ahead. A repayment plan will clearly show you all your debts, how long it will take you to pay it off, and how much it will cost in interest and fees to pay it all back. It will also give you a good idea of what options you have. For example, Detweiler says if your plan shows it’s going to take more than 3-5 years to pay off your debt on your current budget, then it’s important to seriously consider debt counseling. Bankruptcy is also an option, but most consumer advocates stress that is should always be an absolute last resort.
For help on creating your plan, visit EveryDayWealth.com. The site offers everything from a personalized repayment plan to monthly credit reports, and ways to lower your finance and insurance costs, build better credit, monitor and protect your assets, and optimize your bill payments.
Finding Money for Your Payments
It’s time consuming and costly to try getting out of credit card debt by paying only the minimum, especially if you continue to charge purchases. But at times it can feel almost impossible to find the extra money to be able to pay more. Here are some tips to help you get started.
The “B Word”
While it’s not most people’s favorite thing to do, taking one month to track every single penny you spend through a budget is an invaluable step in getting out of credit card debt. You’re sure to find areas where you can cut back. The biggest areas of overspending are food and transportation. Detweiler says she’s seen consumers discover they were paying $200 a month for pizza delivery or $160 a month at the office vending machine. Don’t be discouraged, however, if you only find $10 as any little bit can help reduce your debt.
After tracking spending for a month you may find it necessary to make a few lifestyle changes. It may not be easy, but the changes aren’t necessarily permanent either. Here are some ideas to get you started living a more moderate lifestyle.

If you have good local public transportation or good bike routes, consider living with only one car. If you do need two cars consider a trade down, which could also lower your gas and insurance bills.

Reduce your housing costs by setting the thermostat a little higher in the summer and a little lower in the winter. Or do you even have an extra room you could rent out? Maybe moving to a smaller place would save you money, assuming the savings outweighs the cost of moving. Perhaps it’s a matter of dropping some cable channels or living without Internet access at home.

Cutting your food bill is one of the most effective ways to find extra money. Try not eating out as often, keep a price book, shop alone, eat a snack before grocery shopping, buy in season fruits and vegetables, eat less meat, and avoid cold cereal (hot cereal is cheaper and healthier).

Making minor lifestyle changes can help you achieve the new American dream—freedom from debt for all!
Get Another Job
That’s right! It might temporarily take a part-time job delivering pizzas to get you and your family back on the right path. Or if you are living off one income so mom (or dad) can stay home and raise the kids, consider opening a home daycare or other home based business. That way you still get to be with your own children and earn some extra money at the same time.
Sell Some Stuff
Chances are you have lots of sellable stuff you aren’t using packed in the back of your closet or in boxes in your garage. And if you aren’t the sentimental type go ahead and sell grandma’s china. Even if you are sentimental, consider keeping only your most treasured heirlooms. Try not to overlook something that doesn’t appear valuable. The Smiths inherited a painting that hung in her grandmother’s garage for years and it ended up being auctioned off for $40,000 at Christie’s in Boston!
Tap Into Your Assets
If you do have some savings, consider pulling some of it out to pay off your debt. You typically don’t earn near enough interest in a savings account (typically around 1-2%) to outweigh the interest you’re paying on credit card debt (typically around 15%). You can consider tapping into a 401K plan too, but be cautious with this option. You will need retirement savings some day and according to Detweiler, these types of accounts are usually protected during bankruptcy proceedings. It may be a good idea to speak with a lawyer about bankruptcy options before using retirement money.
Moving Forward
Once you’ve found some extra money to start paying more than the minimum you’re ready to move forward. Determine a fixed monthly payment you can put towards the debt. Pay only the minimum on all your credit cards except the one with the highest interest rate toward which you will pay as much as your budget allows. Detweiler adds,

“For most people paying the highest interest rate credit card is best. Once it’s paid off, then move on to the next highest interest rate keeping your same fixed monthly payment.”
Another option that worked well for the Smiths is paying the lowest balance credit card first. Smith said that quickly getting rid of the first credit card debt gave her the confidence and motivation to move onto the next.
Contact Credit Card Issuers
It’s always a good idea to contact your credit card issuer to try and negotiate a lower interest rate. If they won’t give you a lower rate, try applying for a new low-rate credit card. The “Card Reports” section of CardRatings.com is a great place to shop and compare credit card offers. If you do get a new low-rate card then immediately transfer as much of the balance from your higher rate card(s) as possible. If possible, try not to exceed 50% of the credit limit of any of your cards as doing so could lower your credit score. By staying under the 50% mark you may find new low-rate credit card offers appear in your mail box, which could give you a valuable tool in negotiating.
If you are behind in your payments, some credit card issuers may even be willing to set you up on a hardship plan where your required payment is reduced. Credit counseling agencies may even be a better alternative. Detweiler notes,

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