Evaluate Your Debt Situation

Is debt one of your four letter words? Do you use credit entirely to your advantage instead of letting it control you? My parents taught me to save for what I wanted and buy with cash. My parents taught me that credit cards were useful tools and shouldn’t be used beyond what could be paid off each month. Credit cards are awesome things. You can gain so much from responsible credit card use. You can earn airline miles. You can earn points to buy items. You can earn a percentage of your balance so you end up paying off less … Continue reading →

Repaying Your Debt

You have some extra money, or you’re cutting back so that you can make some progressive financial changes in your life. Congratulations! Now comes the confusing part. Where do you put the money? If you have debts, take a look at their rates of interest. You may have everything ranging from a zero-interest loan from family or a bank to a credit card that charges upwards of 18% in interest. These debts are not created equal. Ideally, you want to get rid of those that are costing you a lot of money in interest. Take a look at your debts … Continue reading →

Frugality Vs Risk

I have two competing money styles going on in my life these days. One is a frugal streak a mile wide, although it seems to have diminished to half a mile these days. This frugal streak comes from my upbringing. My parents were not particularly frugal, but money was always an issue. I remember many concerns about money when I was growing up, so as a young adult, my response to this was to be as tight with money as I could possibly be. This was facilitated by the fact that I didn’t have much of it to begin with. … Continue reading →

Debt Settlement

This morning I saw a commercial for a debt forgiveness program. It’s not the first time I’ve seen the commercial and other ones like it. It sounds really great. Just wipe away your credit card debt without declaring bankruptcy. I’ve known for years that you can call your creditors and negotiate a repayment of a fraction of what you owe. The theory is that the creditor will be grateful for any payment and a settled account is better than one that ends in default. What you’ll find, though, is that creditors don’t want to settle the debt. Why should they? … Continue reading →

Debt Reduction Summary

Over the past week, I have discussed many ways to approach a do it yourself debt reduction and credit repair plan. A lot of your approach will depend on your situation, so I covered a variety of different angles. Consolidation loans are one of the options to consider when you have many creditors. These are particularly useful if your credit score is still good or if you have a lot of equity in your home. That way, not only can you often create one loan payment, you can often also reduce the interest you are paying. The key warning with … Continue reading →

Collections Agencies

In our “do it yourself debt reduction” series, I wanted to end with a worst-case scenario. If your debt problems have become so horrendous that you are being hounded by collection agencies, it is time to get serious. First, ask yourself some hard questions. How did I get into this mess? Can I change some things in my life to get back on track? Do I have some addictions or weaknesses that would prevent me from tackling my debt problems myself? If you are truly desperate, it is time to wise up and ask for help. If you think you … Continue reading →

DIY Debt Reduction – Get Rid of Stuff

How exactly did you get into debt anyway? Was it from buying too much stuff? Were you living beyond your means? If this is you, I have an entirely different approach for your situation! If your debt is due to an over need to shop, the first step is to stop using credit. If your middle name is shop-a-holic, or if you just can’t resist buying the next cool thing… you should not have even ONE credit card. This sort of addiction can cost you. Cut up all your cards now!! Once you stop the bad habit, the next item … Continue reading →

DIY Mortgage Repair

Unless you have your head in the sand, you are aware of the foreclosure crisis. More families are losing their homes than ever before. If you are nervous about your mortgage situation, there are some “do it yourself” solutions to consider. Your mortgage is the most important loan you have. It enables you to keep a roof over your head. You should pay your mortgage first if you don’t have enough money to go around for all your bills. The problem that often leads to foreclosure is the inability to pay that large payment each month. The first step to … Continue reading →

DIY Debt Reduction – Multiple Creditors

Most people don’t have one type of credit account. Most of us have our debt spread out in multiple locations. This can often make managing our bills complicated. If you have many different types of credit accounts – loans, lines of credit, credit cards, overdraft accounts – and want to reduce your overall debt, you will need to get organized first. Start with a file folder and put in your most recent balance statements into this folder. Collect them all, even the ones you don’t use often. Next, take this folder to a quiet place. Using a calculator and piece … Continue reading →

DIY Credit Card Debt Reduction

Is most of your debt with credit cards? Do you have lots of cards with large balances? Are you having trouble making your minimum payments? Credit card debt is one of the worst kinds of debt. It is considered empty debt, as you often have little to show for it. With a mortgage or car loan, at least you have the house or car. Credit card debt tends to sneak up on you with lots of little purchases. This is especially true these days where almost all businesses accept credit cards. If you want to get out of credit card … Continue reading →