Be Debt Free

Jason Holmes


Living a debt free life is no longer a dream. You can attain a debt free lifestyle by following a systematic strategy.  Below are some simple and cost- effective steps which can help you to become debt free.

Prioritize your debts: The first step is to prioritize your debts. You need to make a list of your debts that you need to pay off first. You can begin with debts having high rate of interest and pay the less importance ones later.

Minimal usage of credit cards: Next is to minimize the usage of your credit cards. Do not fall into “Buy Now, Pay Later” schemes. This will only add to your debts. Limit the usage of your credit cards and use it to pay necessary utility bills like gas, electricity and water.

Follow a realistic plan: Structure a realistic budget that you can follow. Classify your expenses into needs, wants and not needed categories. This will help you to understand which ones you should purchase first. It is better if you put down your expenses to compare your income and liabilities

Take a professional help: Understand your debt problems and go for professional help. A debt counseling firm will help you to structure a repayment plan. You can follow this plan to pay off your debts. They also give you advice on various aspects of money management and help you maintain a financial budget.

Select a strategy plan: Choose a strategy to pay off your debts and stop availing new lines of credit. You can do this by availing a debt management program. You should go for the one which will suit your financial needs.

Negotiate with your creditors: Approach your creditors and let them know in writing that you are facing problems in paying off your debts. They may be willing to negotiate the rate of interest and lower your monthly payments.

Assess your financial situation: Make of list of the following

1. Names of your creditors

2. Amount that you owe to your creditors

3. Monthly payments

4. Type of loan

5. The rate of interest that you are charged with.

Admit the fact: Accept the fact that you are in debt. If you ignore the problem at initial level it can become worse later.

Pay your bills: Try to make your payments on time. This will relieve you from the burden of unpaid bills.

All these will give you clear picture about your financial situation. Though you cannot become debt free overnight, yet you can eliminate your debts to some extent.

Muna wa Wanjiru


For a great many of us technology has the means to provide some form of help. These forms can range from companies that you can ask for help while you are online to that of various debt free software programs. As each of these programs is different you should look at how these can be of help to you.

While these debt free software programs can be of help, you need to understand they are only tools that you will be able to use. For this reason you should also look for information about agencies whose help you can use.

As we are aware there are many items that you can use to help you with the problems of your debt. To see how these items work you will need to gather information about these products. Among the many tools that you can use the different debt free software that is available should be of help.

These items can help you see how your monthly expenditure is being changed by the amount of money that you need to spend to recover from debt. As this amount can rise steadily you will need to look at the way that your overall monthly budget sufferers by the use of items like credit cards.

Once you have worked out the details of your total debts you can use the debt free software programs like debt reduction calculators to see what amount you can free up. This calculator will help you to see the best way that you can reduce your debts without depriving you of the money that you need to survive.

This calculator is not the only debt free software that you will be able to find. There are some debt planners. These guides will allow you to enter the amounts of money that you have. The different sections in this planner will let you arrange your finances in a more accurate style.

The use of these different debt free software programs is that you will have a better idea of the amount of money that you owe. By looking at this information you can then choose a course of action that will provide you with the best ways to reduce your debts.

While using these debt free software programs is a good idea, you will need to change your life. This is the only way that your use of these products will be of any use. The wide selection of debt free software programs that you can choose are your key to taking control back into your life.

i am zoe!


Okay, here’s a scenario (sorry for the long story):
A married couple with two kids. The mother makes 1/2 the amount of money the father does. The father gives the mother a hard time about providing financially for the family. The mother knows that he’s cheated on her in the past (and there is a possibility that he’s still cheating on her). So he accuses the mother of not contributing towards the household money, especially for the kids, but the mother contributes as much as her salary allows her to. The husband, on the other hand, contributes less than she does (remember, he makes twice as much as her), but he says he pays for everything. Obviously not true. The problem is, when his kids ask him for money, he tells them he cant give them money because has so much debt that he has to pay off (he blames the debt on the kids). He’s very convincing when he speaks, but the problem is that he never shows anyone any proof of his debt. When he fills out financial papers, like applying for a price reduction on something, he does not write down the debt he supposedly has (the mother has seen these papers because he has forgotten to hide them where he usually hides his papers). Oh and dont mention anything about a divorce. There’s a huge chance that wont happen.

How is he in debt when he doesn’t really contribute a lot of money in the household. The mother makes less, but spends more and she has less debt than he does. How does that happen?
Is it possible that he is lying about his debt? How does one know?

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Ed Pearson, Debt Dr


When asking prospective clients in the UK if they have ever been in an IVA the most common response I get is ‘what’s an IVA?’

20 years ago in 1986 the insolvency act introduced the IVA. IVA stands for Individual Voluntary Arrangement A formal, it is court ratified, process that allows somebody struggling with unsecured debts to make a payment proposal to their creditors.

IVA numbers are increasing dramatically at the time of writing. A record number of people in England and Wales went insolvent between July and September 2006. The Insolvency Service said 27,644 people went bankrupt or entered into Individual Voluntary Arrangements to manage their debts.

Why are IVA’s proving to be ‘popular’?

Creditors like them because it can often provide greater returns than would normally be realised if the debtor went bankrupt.

Debtors like to make use of an IVA because it freezes interest on debts, it makes the payments more manageable, it protects their home, it is a very discreet debt solution (unlike bankruptcy) and allows company directors to retain their position.

After a period of normally 60 monthly payments, any outstanding amounts of unsecured debts included in the IVA are written off.

That sounds great, how do I organise an IVA?

Well initially your unsecured debts need to be in excess of £15,000. If you have more than £15,000 of unsecured debts and are struggling with debt repayments then it’s time to talk to a professional.

Only qualified professionals can administer an IVA. This is usually an insolvency practitioner but there are a number of firms that have sprung up to effectively ‘package’ an IVA ready for the insolvency practitioners to complete the IVA. The insolvency practitioner then becomes the trustee for the IVA.

To get an IVA agreed, a clear statement of your financial position will need to be drawn up. This will include all assets (house(s), cars, endowment policies, cash plans, pension details, etc) and then details of your monthly income and expenditure.

All these details are put to your creditors along with a proposed monthly payment.

What about my house?

Importantly, if you own your own home, then any equity you have available in the property will form part of the IVA proposal as part of the repayment offer. A secured charge is applied to your property equivalent to the proposal put to the creditors. The charge is normally applied to your property during the first year of the IVA and normally realised in the fourth year of the IVA.

If the property is jointly owned then only the debtors share of equity is normally considered under the IVA.

So what happens when the creditors vote on my IVA?

The creditors vote on whether to accept the IVA proposal or not. If more than 75% by value of unsecured creditors vote in favour of the IVA then it has to be accepted by all the unsecured creditors.

What do you mean more than 75% by value?

Well if you have 4 creditors but say one of them is owed 76% of your total amount of unsecured debts then it is only their vote that counts. If they accept the IVA proposal then the others will have to accept payments. Equally, if the 76% creditor declines the IVA proposal then the whole proposal has been rejected.

What happens if my IVA is rejected?

Well first thing, remain calm. There is an opportunity to submit an improved IVA proposal if your funds allow. Failing that it may be time to consider an informal payment plan or perhaps even bankruptcy. This is best discussed with a debt help and advice professional.

What if I miss any of my IVA payments?

A well drawn up IVA will allow for one or two missed payments in the IVA but missing payments is a serious business. The IVA is a court ratified agreement. Missing payments in an IVA runs the real risk that the trustee will legally have to force you into bankruptcy.

What happens to the IVA if my circumstances alter?

If your circumstances alter then this needs to be reflected in your IVA. That means should your income fall then the repayments should also be reduced. Equally, where your income improves then more money will be made available each month to your creditors.

Well I made it to the end of my IVA, what now?

The trustee will issue a ‘Statement of Completion’ normally within 3 months of the last payment of the IVA. The trustee will also notify the Insolvency Service and reflect this in their records.

Finally, do be aware and get proper IVA advice.

Do sit down and get an experienced professional to go through everything in detail. Be aware of all the factors that will affect you if you decide to enter into an IVA. Whilst this article is accurate, it cannot be used to replace advice from a professional organisation.

Ed Pearson is a Debt Dr. Debt Dr specialise in debt help and advice for individuals and small businesses. Ed can be contacted on 0845 123 4000 or in confidence on 07970 659266.

http://www.debtDr.co.uk ‘prescribing life without debt’

This article does not constitute regulated advice. Please remember that any action regarding financial advice should always be taken only after considering the specifics of your own situation.

To find out more about Ed try, http://www.ecademy.com/account.php?id=41788

A.C. West


Getting into debt is so easy but getting out of it, well… that’s another story. Credit card debt reduction can and, more importantly, will happen with planning and discipline in the way you spend money.

Credit card debt reduction starts with reducing the amount your spend and add to your card balance. So, the very first step you need to take is to go shopping without your card and use cash only. This reduction technique does not require you to stop shopping, but instead requires you to seriously evaluate the need of any item you want to purchase and not just purchase it on the spur of the moment. If you find that the item is something which you do really need and you do not have the cash available, you can always go home and get your credit card. By doing this, you will be more inclined to avoid costly impulse purchases. This can be a very effective technique to reduce your credit card balances by preventing you from accumulating bigger balances and causing you to get further into debt.

Another effective way to reduce your credit card debt is to consolidate your balances. You can combine your balances from high APR credit cards to one low APR one. This measure works by reducing the rate at which your debt increases. Choosing this method will generally give you a break on interest when the short initial or introductory period has an APR of 0%. If you choose to combine all of your credit cards onto one, you may also receive some extra benefits such as reward points. If you choose not to use this particular method, you could also ask your current card providers to lower you annual percentage rate. Sometimes card issuers are willing to grant this request for their customers.

There are many other methods you have to choose from besides the two methods mentioned above. Another option is to use debt reduction software to help you make a plan and a budget. Some programs may also come additional features such as financial calculators. These types of software programs are well worth looking into if you are serious about credit card debt reduction.

John Phillips


More and more people are asking themselves, “how do I become debt free?” or even, “can I become debt free?” And the answer is, you can be debt free, and there are a couple ways to do it. Here are three to consider.

The first thing you have to do in your quest to have zero debt is to take an honest look at where you are right now. How much and what kind of debt do you currently have? I’m going to assume that like most people, you want to get rid of your credit card debt. This is the debt that is considered unsecured, meaning it isn’t tied to your house for instance. Unsecured debt will be the focus of this article.

The first “how can I become debt free” strategy is the debt roll-up. With debt roll-up, you evaluate your credit card bills, take the one with the lowest balance first - do not worry about the interest rate at this point – and add to the minimum payment what is called an accelerator. This accelerator is an extra chunk of money that you can afford to apply to this strategy until the cards are all paid off. Take the accelerator, add it to the minimum you are already paying, and apply the total to the first card until the card is paid off. Then take the total you were paying on that card (minimum plus accelerator) and add it to the next lowest balance cards minimum payment. Repeat this with all your cards until they are all paid off. Then take the total you end up with and start applying to your mortgage. If you follow this strategy to the letter, you will pay off everything in about ten years.

The second “how do I become debt free” strategy is debt consolidation. This one is simple, but has a dangerous pitfall. The idea is to take any equity you have in your home and apply for a home equity loan or refinance. You may be able to wipe your credit card debt free with this method, however DO NOT start using the credit cards again! If you do, you will find yourself back in credit card debt again, but now with the additional home equity loan to pay as well.

The third “can I become debt free” strategy is debt settlement. If you find you can no longer pay the minimums on your cards, but were able to save the money you would have applied to the balances, debt settlement may be a good option for you. That’s basically how it works. Simply stop paying on your credit cards. Be ready for a barrage of telephone calls, and be ready for your credit rating to take a hit – although it can be repaired – and be ready for settlement offers from the credit companies. You can usually settle for paying half of what you owe, sometimes down to 20%. And if you keep in communication the right way with the companies, chances are low that you will face legal action.

If you find yourself in deep credit card debt, remember there are ways to get out. So, if you ask yourself “can I become debt free?” the answer is absolutely!

Amelie Mag


We all know how hard it is to be in debt: unpaid taxes, credit companies at your front door asking you to pay their monthly fee, perhaps even a mortgage to make things worse. In the grand scheme of things, money is worth little and it’s really difficult to earn it. For the grand finale, your company’s stocks are going down at the speed of light and you know for sure you’re going to hit the dirt if you don’t take action soon.

Here’s where debt settlement companies come into play. They help you organize your income and regulate your expenses, to negotiate with your creditors, and to help you get by in this modern world where dealing with excessive debts has become routine for most people.

What is debt settlement? It’s a contract or agreement between you and a specialized company that commits itself to helping you organize your records and save money so that gradually you will become debt free and be relieved of your burden. They also negotiate with the creditors for you and besides saving you a considerable amount of money with their debt reduction plans, they spare you the trouble of negotiating yourself. Most consumers don’t realize that many creditors refuse to personally negotiate with the debtors and without a debt settlement company, you could end up at another dead end.

As an alternative to debt settlement and long-term debt reduction plans, another way to clear your records of negative credit is to turn to a credit counseling agency and perhaps hire a credit counselor. Such a counselor mostly gives solutions to short-term debt issues, which might prove more useful if you experience a lack of credits needed to cover your entire debt while deadlines are approaching. But, of course, anyone can seek the help they thinks suits them best.

It is essential not to avoid credit collectors, but to find a debt settlement deal as soon as possible. Your problems could get worse as time passes. It is also imperative that you devote yourself to resolving your bad credit issues. Make it your top priority and cooperate entirely with the settlement company. It should be a company which is very reliable. Many companies provide debt reduction plans that initially seem to be effective, but eventually you discover that they cover only the settlement company’s revenue (usually about 15% of the total debt). That leaves your total debts unchanged. So it’s best that you do some research prior to the settlement deal to make sure you find a reliable company that will come to your aid and provide you a thorough and experience-based plan.

The internet is swarming with all sorts of debt settlers, but I’ll give you a hint: http://www.CYDebt.com. It’s as simple as it sounds. CYDebt.com has lots of expertise based on years of experience in the settlement industry and has come up with some of the most cost-free and effective debt reduction plans that will literally clear your debts and keep you from going bankrupt. And hey! Bankruptcy really does sound bad…no one likes a negative record on his credit report. CYDebt.com provides you with an easier alternative: just don’t go bankrupt. It’s that simple. Instead, choose a debt settlement plan and in a matter of months you’ll be on the right track, with professionals coming to your aid to bring light to your financial agenda.

You could always log on to their website and get your FREE consultation to see how they can help you. You’ll also be able to find everything there is to know about how to solve your problem, the same problem that millions face around the world: debts.

David Faulkner


If you are like millions of other Americans, you are probably sick and tired of the bills that keep piling up in your mailbox every month. Do not despair because you’re not the only person with this particular financial problem.

Let’s say you are already several payments behind and have no idea of how to pay for everything you owe. It’s probably high time to consider consulting with financial experts.

There are plenty of money experts in the country that can teach you all about consolidation loan, debt reduction, and other procedures that can help you get on the path to financial freedom. However, you do have to be careful in selecting a reliable company because there are several unscrupulous people out there who like taking advantage of people’s financial problems in order to make money for themselves.

A legitimate company that offers you a consolidation loan, debt reduction service, or financial assistance in any form will not charge you for an initial consultation. They will first assess your financial status and will state up front whether they can actually help you or not. You must stay away from so-called non-profit lending institutions that ask for donations or contributions outside of your loan payments.

Before you consider taking out a consolidation loan, debt reduction loan, or any other service that would help take you out of your financial rut, you need to understand all the possible consequences in case you are not able to complete the payments in time.

When you apply for a consolidation loan, debt reduction companies will require that you put up your home or other owned property as collateral that would sufficiently cover the amount of debt that you owe. If you fail to repay your consolidation loan, debt reduction institutions would immediately take over the ownership of your properties.

The primary benefit that you can get from consolidation loans is that you will be able to pay your debts at a much lower interest rate. We all know that many credit cards and student loans come with sky-high interest rates and this is one of the main reasons why millions of people end up bankrupt.

When you get a consolidation loan, debt reduction companies will still require you to pay an interest, but at a considerably lower rate.

An added advantage of taking out a consolidation loan is that you no longer need to write checks to several different companies. You just have to send the payment to the lending institution once or twice a month.

Once you have been granted a consolidation loan, debt reduction is certain - but it is still not the end of your problems. You will have to learn how to spend wisely and manage your finances much more efficiently in order to attain complete financial freedom.

The answer is simple. You will be using this new card not to make new extravagant purchases but to pay off your old debts. Once you transfer your previous debts to the new card, you will obviously be paying a lower interest rate and you will be able to pay off your total debt in no time.

Muna wa Wanjiru


The different organizations that can help you to solve your debt problems are numerous. Each of these organizations has different ways of providing you with some help. Among these companies you will also find Christian organizations like the debt free army.

This company will have various tools, hints, tips and strategies that you can look into. Their website should be able to provide you with all of the information that you require. For this reason while you may find other Christian debt relief companies you should take the time to see how the debt free army can help you to turn your life around.

The debt free army while it is a charitable organization does have rules. These rules will help you to see the best ways that you can live a life that runs according to the principles laid down by god. By looking at the help and guidelines that are provided by this Christian service you can see the ways that your life can be changed.

The best way to find more information about the debt free army you should see about getting this information from the internet. Here on their website you can find helpful links. Among these links you can see the different ways that the debt free army can help you turn your life around.

On the home page you will be introduced to the fundamentals of the debt free army. The reasoning why this organization was created will be revealed to you. As you look at the other links you will see some links that will show you some debt reduction tools.

You can see what these tools are like and find the manner in which they can help you. Besides looking at these tools you will find yourself seeing the reasons why you should try to avoid getting into debt yet again.

For those of you who find this site helpful the lines from the Bible will help you to better understand the message that is given by the debt free army. There are many people with whom you can share your feeling and thoughts with. These people can be found on the Blog site of the debt free army website.

This brief overview will not reveal all of the work that debt free army does for the people who look at this site for help and inspiration. By choosing to use the debt free army site you too are allowing the words of god to help you come free of the burden of being in debt.

Daniel Major


First things first, it may seem like we as a nation are in a terrible financial situation that we will struggle to get out of, and yes you are probably right, but trust the history books; history perpetually repeats itself and we have been here before, on more than one occasion, so take some resolve from the fact that recovery will happen and prosperous times will come again.

But, in the meantime it’s about  taking care of business and the business that puts us most at risk is debt. Over the past many years people have become more and more reliant on credit and to be fare to us all, we have been encouraged to spend, spend, spend and have been constantly told we’ve never had it so good and things have never been better.

Only the wisest saw through the charade, fully expecting the bubble to burst and they have been proven to be absolutely right; but the majority of us have unfortunately been like lambs to the saughter, trusting everything we had been told; and now our financial chickens have come home to roost, we cannot be totally excused from responsibility but, at the end of the day, we were being told that we could easily afford it..when it should have been painfully obvious that should something drastic happen to the economy we would all be in deep trouble…guess what?

America’s credit card balance alone stands at $1 trillion that works out to around $8000 of debt per person, this doesn’t include mortgage debt, car finance or any other type of loan or finance, (not forgetting student debt and medical bills) and the total debt seems likely to continue increasing as the current recession digs in even deeper.

So what can we do about it?

Survival is all about taken preventative steps to avoid termination, and dealing with debt is no different. Everything you have worked so hard for could be taken from you should you choose to ignore your financial plight. That is why you need to act as soon as you are in potential trouble and there are two ways you can go about this, firstly you can get professional help from a company like Debt Relief USA or secondly, you can deal with it yourself.

Debt relief USA - are a company that deal with finding solutions to the financial problems that many Americans are facing today. The solutions that Debt Relief USA offer include debt settlement; this process involves skilled Debt Relief USA financial negotiators, negotiating reduced interest rates and thereby aggressively reducing your debt.

Another Debt Relief USA solution is the debt consolidation loan; although not always cheaper in the long run it can reduce your monthly outgoings drastically and give you a single, more manageable payment each month, having used the loan to pay off your existing debts.

Alternatively, you could opt for dealing with your debt yourself, it may seem a frightening option but there are methods of debt reduction and elimination that are legal and ethical that can not only reduce your monthly outgoings but reduce the term of your debt drastically and in some occasions when combined with a debt consolidation loan you could be debt free in as little as three years.

If this option is of interest to you, and unless your Donald Trump it has to be, you can get more information by visiting the site linked to at the end of this article.