| Debt Management - 5 Principles to help you get your | | | | be amazed at how much money you spend on things |
| debt under control!IntroductionDebt consolidation and | | | | you want, and don't really need. The smallest things, |
| refinancing have become thriving industries in America | | | | such as that $3 cup of coffee every day, can slowly |
| these days. American personal debt is at the highest | | | | eat away at your finances. This will help keep you |
| rate we've seen. Creditors are more and more willing | | | | from getting further in debt. Your budget should define |
| to give out credit cards, or let people easily qualify for | | | | how much money you'll send to each of your creditors |
| home equity loans so they can refinance or | | | | monthly and how much you need for bills, and how |
| consolidate debt. Not that refinancing is bad, but often | | | | much is left for discretionary spending. Try limiting your |
| times, we feel that since we've reduced our interest | | | | discretionary spending to things you can buy with |
| rates, we can afford "a little bit extra" credit as a | | | | "pocket cash". This may be hardest thing you've ever |
| reward.BusinessWeek says that total household debt | | | | done, but you won't get further in debt if you only |
| in the US was more than 100% of our disposable | | | | spend what you have.3. Pay off the debts one by one. |
| annual income last year. The average person has | | | | |
| more than $8000 in credit card debt.The bottom line is | | | | Maintain minimum payments to the rest of the debts, |
| that our personal debt is growing at an alarming rate. | | | | but pick the debt with the highest interest rate, and |
| You can now charge your fast food meals at many | | | | send extra payments to pay it off. There is a proven |
| restaurants, paying interest for years on something | | | | psycological benefit to being able to take a debt off of |
| you consumed in one sitting. Many people have taken | | | | your list.4. Consider debt consolidation or debt |
| steps to address their debt problems, including | | | | restructuring and possibly refinancing your home |
| consolidating debt to lower interest rate cards, or to | | | | mortage. |
| home equity loans, or at worst case the dreaded "B" | | | | Lower your credit card debt by 70% by consolidating. |
| word, Bankruptcy.5 Principles of Debt Management1. | | | | With interest rates down, it also may be time to |
| Create an accurate assessment of your debt situation. | | | | refinance your home mortgage loan and cut your |
| | | | monthly payment. You can get free mortgage loan |
| Make a list, chart or whatever you're most | | | | quotes at LowCostLending. When you refinance, |
| comfortable with, of all your debts. Be sure and include | | | | make sure closing costs and other fees don't outweigh |
| the amounts, interest rates, and expirations dates | | | | the savings in your monthly payment. Another option is |
| (especially on any no-interest for ## days type loans). | | | | to get a Home Equity Loan. Home equity loans are |
| Be sure and note any old accounts that you've got | | | | good because they allow you to deduct the interest |
| "laying around", such as that department store credit | | | | on your income taxes. Remember though, new credit |
| account that you opened to get the 15% discount. You | | | | is not a license to incur new or more debts. Once |
| can now get a free credit report online. You should | | | | you've transferred a balance by consolidating, or |
| make sure that you've got a credit report and FICO | | | | refinancing, don't add more charges to the old account. |
| score from each of the 3 national credit bureaus: | | | | If you've got a lot of open accounts, you may want to |
| Experian, Equifax, and TransUnion. The FTC advises | | | | close some of them, but you shouldn't necessarily |
| monitoring your CREDIT REPORT activity ON ALL 3 | | | | always cancel the old account. Having a good |
| BUREAUS. Order your 3-bureau report from today. If | | | | payment history with a few existing accounts can be |
| you've got bad credit, paying down your debts is of | | | | better for your credit record than many cancelled and |
| utmost importance!! Click here if you need help | | | | new accounts.5. If necessary, get help. |
| understanding your credit score. Depending how bad | | | | You may choose a credit counseling service, or debt |
| your score is, you may also consider additional | | | | counseling and debt help service to help with each |
| measures to repair your credit.2. Make a budget and | | | | step of your debt solution. Credit counselors can add |
| stick to it! | | | | accountability to your debt solution, and also serve as |
| Making a budget helps keep from increasing your | | | | a source of encouragement. They are used to dealing |
| debt, while you're trying to pay it down. Be specific and | | | | with people with bad credit or poor credit, and can help |
| detailed in your budgeting. Except for emergencies, | | | | you create a custom debt solution. They can suggest |
| you should only be spending what is accounted for in | | | | money lenders that might be more willing to make a |
| your budget. Some people have found it helpful to | | | | loan to someone with a lower credit rating. Once you |
| keep a 30 day log of their spending. Carry a little | | | | start reducing your debts without incurring new ones, |
| notebook, or some index cards with you, and write | | | | you'll start to see your credit score rise. |
| down everything you spend each day. You'll probably | | | | |