Out of debt in 10 steps

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Debt help - Credit counseling Vs Debt consolidation loans
Debt consolidation loans are a do-it-yourself process, whereas credit counseling helps you to make financial decisions. If you already have a financial plan, then you probably don't need the services of a credit counselor. However, if you have questions or need help with a budget, a credit counselor can offer valuable help. What Debt Consolidation Loans Can Do For You Debt co... Read debt consolidation article



Debt Management Services - Professional Help
Well, days after days and months after month you debt has been collecting. From one credit card you have now maxed out all your credit cards. Creditors have started to call you. You are not even able to make your minimums. It may be late, but you can still make a small beginning by planning a budget. It may sound to late in the day to think about it, but this small step will help you achieve the b... Read debt consolidation article



Out of debt in 10 steps
Over the years I've evaluated many debt elimination systems. The best one I've ever seen is also one of the simplest. So let me introduce you to...

The Best Iron-Clad, No-Holds-Barred, Fool-Proof, No-Fine-Print, Debt Elimination System Ever Developed - Bar None

Just follow the following 10 steps...

1. Go back one year and record all of your expenses. You need to go back that far to make sure you account for seasonal spending. Check bank statements, cancelled checks, credit card statements, anything your spending money on.

Carry a little notebook with you for a couple a weeks and record anything your spending cash on. For example, that cup of Starbucks coffee that you can't seem to do with out. You'll be amazed at how much is falling through the cracks on that kind of stuff. I realize that this part is a pain. But the payoff will be tremendous.

2. Divide your expenses by 12 to get your average monthly expenses.

3. List the balance owed for all of your debts, including your mortgage. If you can't find it from your records, call your creditors and lenders and ask them.

4. List the minimum monthly payment for all of your debts. What is the total of all your minimum monthly payments? Let's say, for example purposes, the total is $2,000 per month.

5. Divide the balance owed by the minimum monthly payment for each debt. This will give you the number of months it will take to pay off each debt assuming the minimum monthly payment.

6. Rank your debts by how many months it will take to pay off each one. The fewest number of months all the way down to the most number of months.

7. Prioritize your debts by the number of months it will take to pay off each one (again, assuming the minimum monthly payment). Your highest priority debt is the one that you can pay off in the fewest number of months. Your lowest priority debt is the one that will take you the most number of months. That will probably be your mortgage.

8. Okay, in step Number 4, you totaled your monthly payments on your existing debts. We are using as an example a total of $2,000. Take 10% of that total, or $200.

9. Re-direct $200 that you are already spending on something else to apply to getting out of debt. Don't tell me that you can't find the $200 because you can. I've worked with thousands of people in helping them improve their financial lives and I know you can do it. It may come from $20 here, $25 there, $30 from this other thing, but it's there. We all spend more than we think we do.

10. Apply the $200 to your highest priority debt. It will be the one that you can pay off in the fewest number of months. For example, if the minimum monthly payment on your highest priority debt is $200, you are now paying $400 per month toward paying off that debt.

Once that debt is paid off, you now have $400 a month to apply to the second highest priority debt. For example, let's say the minimum monthly payment for your second highest priority debt is $250. You are now paying $650 a month on that debt ($250 + $400).

When that debt is paid off you have $650 a month to apply to the next highest priority debt. You keep doing that until your completely out of debt including your mortgage.

The beauty of this system is that you'll be totally debt-free in just a few years and the only extra money that you committed to paying off your debts is the original $200 that you applied to your highest priority debt.

Also, you now have $2,200 a month ($2,000 minumum payments on all your debts plus the $200 extra commitment) that you now can apply to investments. And it's those investments that are going to make you financially free.

Visit http://Money-Management-Wisdom.com for your common-sense guide to debt-free financial freedom.

Copyright 2005

Larry Holmes is the owner of Money-Management-Wisdom.com and a Wall Street trained financial advisor with over 30 years of experience. He is also an accomplished public speaker who has presented well over 1,200 financial seminars and keynote addresses to audiences throughout the United States and the United Kingdom.

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Debt negotiation companies on the internet

The Internet seems to be one of the most dangerous, yet convenient places out there. But, as in real life, there is still more good than we hear about. Amongst the spy ware, pop-up ads, search engine spamming, redirect only sites, phishing scams, and illegitimate business sites out there, there are still trustworthy companies. Research businesses and their background. Don't go by first impressions nor hearsay whether trusting or disregarding a website. Established companies that we pass by in person and would immediately deem as legit make up some of these we see online. It is unfortunate that solely cyberspace-based businesses created to deceive consumers created a stereotype. Debt negotiation companies are meshed into these gray populations even though debt negotiation is a legal service. There is a difference between commercialized, "pennies on the dollar", too good to be true scams that are popping up everywhere online, versus companies that have actual offices, actual representatives/employees (as opposed to cramped call centers full of people recently trained just to be able to work that specific position, without prior field education, nor background/years of hands on experience). There are companies that are different; that don't charge upfront fees, and don't make 100% guarantees on things that can't be said with full certainty.

Scams can be pretty obvious. For instance, asking for money upfront just to get an explanation or potentially begin a service, with a risk of the service not even being completed; some employees don't give additional information, can't answer basic questions, are unable to give background information about the company's history, etc.

As an everyday, hardworking consumer myself, I understand the precaution taken, but it is a different thing when a reliable, caring company's ability to thrive is hindered/hurt simply because it's title category is automatically associated with that negative stereotype. Much of the up sides of stepping onto the web scene are negated.

- Pay attention to what a company offers and or guarantees - Be wary of immediate demands of payment, or a rush in receiving them before service or any additional information - Can they give company background information? - Are they hesitant or unable when asked even basic questions, or for further details? Do they explain risks? - How are you treated? Do they give room, and control? Obligations?

Just as you want to look for warning signs, there are positive signs that tell you a company is good as well. If the product is presented truthfully, wholly, and with confidence and knowledge, before discussing payment, thumbs up, I'd say. If the contact person is personable, courteous, and makes you feel like you are at your service, another 'continue on'. Some businesses do offer free assessments, and give you control and choices. Research. Educate yourself. Continue on unless an uncomfortable scenario is reached. You should always be able to make decisions without penalty-- even if it is not to use the service. Get what you are considering paying for-- never less.

The web can help as much as it can hurt. Just be alert. There are still companies that aren't just companies trying to make millions with appalling quality products and or services! Some are made up of people like you and I, who have been around for years, at the service of the people; our neighbors; our community; or even you!

(The author is an agent for a debt negotiation company (www.Knuckleheaded.Com). The business is attempting to expand onto the webscene, but as other good businesses, there are negatives that come along with this expansion. We all should be aware of the pros and cons when dealing with a resource as powerful as the internet).

(The author is an agent for a debt negotiation company (www.Knuckleheaded.Com). The business is attempting to expand onto the webscene, but as other good businesses, there are negatives that come along with this expansion. We all should be aware of the pros and cons when dealing with a resource as powerful as the internet).


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Out of debt in 10 steps
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