Be Debt Free

Tony Mancini


Any effective plan for credit card debt reduction will include several key points such as those listed below:

o    Finding the best interest rate

o    Reviewing terms, penalties and fees policies on an account

o    Terminating credit card accounts with companies charging the highest rates of interest first

o    Paying off but not closing department or independent store accounts

o    Maintaining a healthy credit rating and report

o    Paying off all outstanding accounts and using credit only where necessary

o    Consolidating and paying off debts in full through a single loan

Any process of credit card debt reduction will usualy involve an educational period. This period is usually to train a consumer about the hazards of over spending on consumer credit. The hazards include high rates of interest, extortionate penalties and fees for late or missed payments, damage to credit scores and reports, and the emotional strain of carrying a high burden of debt.

For consumers looking for a plan for credit card debt reduction, the first issue they need to address is the interest rates they are paying on the credit card accounts. Regardless of the type of account, whether it is a large bank issued card, a department store, or even a gas card, there is going to be interest charged on monthly balances. A good plan for credit card debt reduction involves a review of all accounts to see what each is charging. The account with the highest rate of interest should be the first to be paid off. If that account cannot be paid in full the consumer should develop a plan to eliminate the balance as quickly as possible, either by smaller weekly payments, larger monthly payments or an effective combination of both methods.

If a budget does not allow for anything but minimum payments then a consumer must investigate a consolidation loan or program. This will effectively create a method of credit card debt reduction by gathering all outstanding balances into a single loan or account, and through better rates of interest and repayment terms, allow the consumer to eliminate the debt much more quickly.

A credit card debt reduction plan will allow a consumer to maintain or re-establish a healthier credit score and report. This is critical if a consumer is planning on larger borrowing in their future, such as a car loan, college loan or even a mortgage or re-finance.

One issue that is not so well-known or commonly discussed is the effect of closing credit accounts on a credit report or score. Credit ratings are figured by the total amount of consumer debt available to an individual versus how much of their consumer debt they are using. If too much revolving debt is being used a consumer can have a poor rating, whereas many up to date accounts with a zero balance reflect well on the consumer credit report. So it is best to leave accounts open, even if there are no plans to utilize the credit.

Credit card debt reduction is an excellent way to take better control over personal and household finances, while improving credit scores and freeing up income.

Julie B


We have been with a debt reduction company for a few years now. There is one credit card company that will not wait and wants to garnish our bank account. If we were able to borrow $8500 the debt could be negotiated and because we would no longer have to pay the debt company, we would be able to afford to pay back the loan. We have no equity in our house and my husband has a credit score of 593.

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Robert


olks we exist in a credit dominated society and for good reason. When you have a credit card handy you can buy things fast on the idea that you will pay them back tomorrow. Folks in the last 20 years have been borrowing more so now then ever before in our history. The key to what credit card you choose is in the disclosure.

Make sure you read the credit card application fully before signing on the dotted line. Check the microscopic words for fees that are related with anything activating the credit card to fees that are associated with closing the credit card at a later date. So many people over look the fine print now and almost always ending up paying from their wallet at a later date. Dont be one of those persons.

APR or annual percentage rate is another very important thing to look at when getting a new credit card activated.

Some Credit card companies offer special rates at certain times of the year or during times of financial hardships. Make sure that this offer is extended for the rate of time that you have the credit card for and not a special offer that is good for three months then your APR is doubled for the duration of the term.

One of the best uses of credit cards (and one that few people use them for) is to lower debt or monthly payments that you currently have on your cards. You can do this by checking the yearly % rate of your recent credit cards to the APR’s of new credit cards.

If for example, your currently paying 14% a year interest on the sum balance of all of your credit cards then you can simply do a transfer from your old credit card to a new one that your interested in getting. This is not only ok to do but its really encouraged by new credit companies as they are so eager for your business that they will usually give you an incentive to move your debt over to them.

Now that you have completed the transfer from credit card A to credit card B you find that your APR has been cut down from 14% interest to around almost 10% interest which makes your monthly payments on your credit card debts that much lower and easier to pay off. Its a neat little trick that newbies dont usually know about but one that could save them many years of financial stress off their lives

So as you know my many years of owning credit cards has made me a little smarter in the tiny methods that i have saved myself money by owning them.

Hopefully you have also found this article helpful enough that it will help you save on your credit card bills. If one person has been helped through this advice then i have done my fellow credit card holders some justice.

Good luck guys , over and out.

Andrew Bicknell


If you are finding that your credit card debt is so overwhelming it might be time to start thinking about a loan to consolidate your credit balances into one more manageable loan. While this type of loan can help relieve the stress of too much debt you do have to remember that consolidating your outstanding balances is just transferring your existing debt into another form of debt.

The idea behind a credit card debt consolidation loan is to make it easier to pay off your debt with lower monthly payments and interest rates. You do have to approach this with the motivation that doing a consolidation loan is simply a tool you are using on the road to financial freedom. As such you will need to adhere to several rules if you want to successfully use the loan for its intended purpose; becoming debt free.

• Destroy all your credit cards. They are the reason you are in this mess and keeping them around is just asking for trouble.

• You need to calculate exactly how much credit card debt you have and ask for this amount in your loan. Resist the temptation to get more then you need because now is not the time to add to your debt load by purchasing things you don’t need.

• Pay off your debts immediately. Having a large amount of cash on hand might tempt you to use that money for something you’ll later regret.

• When you receive you next credit card statement the balance should be zero dollars. Now part of becoming debt free is to stop using credit to buy things you can’t pay cash for so call and cancel those accounts as those zero balance statements appear in your mail box. You don’t want them sending you new cards.

• Don’t even think about applying for a new credit card. All those applications you get in the mail should go directly into the trash.

Some of this may sound harsh but reducing debt is not something to take lightly. It needs to be attacked head on until it is gone.

This is even more true if you take out a debt consolidation loan because in most cases in is a home equity loan of some type that is secured by the equity in your home. You have to be certain that you can meet the monthly payments or risk losing your home to foreclosure. Adding more credit card debt to an already dangerous situation is asking for trouble.

Credit card debt consolidation should only be done as a means to improve your financial situation. The payments need to fit your budget and the interest rate needs to be fixed for the life of the loan. Nothing can strain your budget worse then an adjustable rate that is continuously going upwards. If you are thinking of going this route to reduce your debt then you owe it to yourself and your family to research your options very thoroughly.

Bill Naugle


Are there ways to eliminate credit card debt or obtain debt reduction from the high balances and payments? Is it possible to just get your entire debt canceled? Do you really think that there are positive uses of a credit card? Like rebates and airline miles? Let me give you the gospel on this: responsible use of a credit card does not exist. Credit card debt is a major problem in America. We have a need to eliminate debt of any kind!

There is NO positive side to credit card use. You will spend more if you use credit cards. Even by paying the bills on time, you are not beating the system! But most families don’t pay on time. The average family today carries $8,000 in credit card debt according to the American Bankers’ Association.

Now let’s talk about the rebates. If you were using a credit card at 5%, you would have had to spend $80,000 to get $4,000 rebates on new cars that lost $6,000 of value when you drove them off the lot. That is not a good deal!

Dealing with the enticing of Credit Card Companies that take advantage of consumers by luring them in with low interest, no fees and a high credit line. These banks encourage consumers to charge much saying that they will receive back a small percentage of interest as a savings when the banks receive from the consumers twenty percent interest or more on the purchases made.

Think about Cash vs. Credit Cards when purchasing!

When you pay cash, you can “feel” the money leaving you. This is not true with credit cards. Flipping a credit card up on a counter registers nothing emotionally. If you use credit cards instead of cash you will spend 12-18% more. This is money you could have saved.

If you “have to” use plastic, I suggest a debit card. I use them for travel and the occasional convenience of ordering something over the Internet or phone. Other than that, I use cash. Personal finance is 80% behavior. You need to cut out habits that make you spend more.

You do not build wealth with credit cards. Use common sense. When you play with a multi-billion dollar industry and you think you’re going to win at their game, you are naive. You cannot beat the credit card companies.

The Banks and credit card companies are making millions of dollars off of our purchases and then give us back pennies as an incentive to charge more. How can you eliminate debt using their program?

I believe that there are many people who are struggling with credit card debt and see no way out except bankruptcy or debt consolidation. I believe that there is a way to get your debt canceled or reduced to pennies on the dollar. There has to be a new alternative out of debt for the one who does not have the resources to pay their debt.

Credit Card Debt information, debt counseling, debt management, debt consolidation, debt solutions, debt reduction, financial Counseling, debt negotiation, debt relief and being debt free are the many terms we use for saying that we just want our debt canceled.

Alex Jonnes


If you are languishing under debt burden, surely you should be taking early steps to reduce debts so that you escape any financial crises. Well, personal debt consolidation loan is considered as a sure shot way of getting rid of all your debts in one go and then the loan itself is easier to pay off.

Personal debt consolidation loan is meant for paying off all your debts especially those debts of higher interest rate. After the debts are fully paid off, the debts in fact are still there in the form of personal debt consolidation loan as you are to clear the loan also. However the advantage of personal debt consolidation loan is mainly that your high rate debts are now replaced by the loan that comes at lower interest rate. Obviously you have saved a lot of money that you would have been paying as interest on debts. It is called debt consolidation loan because your debts, though now paid, are in fact consolidated into single reduced monthly payment for the loan installments. Also you can choose to repay personal debt consolidation loan in larger duration as compared to the debt duration. Clearly personal debt consolidation loan is much easier to repay than the debts.

As per your debt amount and personal circumstances, personal debt consolidation loan comes in secured or unsecured options. Secured personal debt consolidation loan is approved against your property with main advantage of low rate loan. Greater amount can be borrowed for larger repaying duration. If you have bad credit then secured personal debt consolidation loan would ensure you a loan without any trouble. Unsecured personal debt consolidation loan gives you smaller amount at a bit higher interest rate and for shorter repaying duration of up to 15 years.

In case you have bad credit, you should first check your credit score as interest rate will depend a lot on it. Better improve credit score first by paying off some easy debts. You can source personal debt consolidation loan from banks or financial companies but online lenders should be preferred for competitive rate loan and also for cost free processing of the loan application.

Warner Carter


A new approach to debt free living is to see your indulgences then find gratifying lower cost or free substitutions. Now days it looks obvious how holding debt can make a lot of problems for lots of people. As a result many of us have begun to think about debt free living.

Ride your bicycle before you jump in the car. Bring a banana instead of that buying that muffin. You will be healthier as a result and save on medical care in the long run as well. Fresh food will help there too, it costs less than those “time saving” pre made meals or anything eaten out.

If you don’t like any of those ideas then think of your own. What is the freedom from the burden of carrying a big load of debt really worth to you?

Talking more to with your kids is free, and believe me, that is what they really want to get, more than stuff from stores. It costs nothing to volunteer your time somewhere. The fulfillment we think we had from much of the stuff we bought can be had in ways that cost little or nothing. Apply what you save to paying off your debts. Focus on one debt at a time and pay extra to pay it off completely. The reward when you pay off that account is is a powerful modivator.

To many times we buy stuff we really don’t need as a way to to manage stress and to feel better.But if you have less stress and feel better already because you don’t have any debt? Then, guess what, you will find you do not want to buy so much stuff. What a gratifying irony.

When you take some time to look at what you do spend money on will realize how you can spend less. The trick is to live your life and find better ways to make your life feel fun and positive. There is life after more stuff.

Of course there is a lots of wonderful stuff to buy everywhere, always has been and always will be. Beautiful things, fast things, new things. I have bought my share as well. Today as I see the real cost of the debt I built up because of how much hard work it has required to lower this debt burden I see the real cost was greater than the price.

To begin debt free living the simple begining is believe it is possible. When you realize that freedom cannot be bought with a credit card you are on your way. You will have an ever more well-off and more better life when you get the debt monkey off your back.

Jill C


With all of the money going to companies and wall street executives, how much would it be if each legal U.S. household got an equal portion of this money instead of them? With criteria like, a certain amount must be spent on investing, debt reduction, and buying a new American made car, I believe the American people would have been a better investment for all of this money than the ones getting it.

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Rothwyn


I saw a few new features and some people make the most absurd arguments as to why they would and would not vote for some candidates. That stupidity is what led us to the disaster of the current administration who has led us to the brink of World War Three.
Educate yourselves: http://www.ontheissues.org/senate/Fred_Thompson.htm
Fred Thompson -
Voted NO on setting aside 10% of highway funds for minorities & women. (Mar 1998)
Voted NO on spending $448B of tax cut on education & debt reduction. (Apr 2001)
Voted NO on adding sexual orientation to definition of hate crimes. (Jun 2002)
Voted NO on prohibiting job discrimination by sexual orientation. (Sep 1996)
Voted NO on allowing patients to sue HMOs & collect punitive damages. (Jun 2001)
Voted YES on killing restrictions on violent videos to minors. (May 1999)
Voted NO on more penalties for gun & drug violations. (May 1999)
Voted YES on killing an increase in the minimum wage. (Nov 1999)

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Carrie Reeder


Unfortunately, many who acquire an unnecessary amount of consumer debt take the easy road and file bankruptcy to avoid their obligations. Reducing debts without bankruptcy protection is doable. However, this requires effort and persistence. Debts accumulate over years. Thus, it is unrealistic to expect a quick fix. There are many options for reducing debts and monthly payments. Here are a few tips on ways to lower debt payments and save money.

Reduce Interest Rate

Higher interest rates on credit cards and other types of debts will result in higher monthly payments. The key to saving money on debt payments is to negotiate a lower rate with creditors. If your credit rating is high, you may be able to do this without the help of a debt consolidation service.

Before an interest rate reduction occurs, creditors review credit reports. Be aware, this will show as an inquiry on your credit report. Credit inquiries can potentially reduce your credit score. If you have many credit accounts, it may help to only reduce the accounts with the highest rate.

Once the interest rate on credit cards is reduced, a large percentage of your monthly payments will be applied to the principle balance. This makes it possible to reduce debts at a faster rate.

Personal Debt Consolidation Loans

If getting a debt consolidation loan, you will in essence be reducing your interest rate on credit accounts. Again, obtaining lower rates is the easiest and most effective way of quickly reducing monthly debt payments. Various lenders offer debt consolidation to people with all credit types. In most cases, collateral is required for this type of loan.

Transfer Credit Balances to a Low Interest Credit Card

High interest credit cards make it harder for some to get out of debt. With this said, take advantage of low interest or 0% interest balance transfers. By transferring credit card balance to a low-rate card, you are able to save money and eliminate debt at the same time.

If using a balance transfer option, timely payments are essential. These credit card companies will penalize you for irregular payments. A late payment immediately validates an interest rate increase.