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October 5th, 2009:

How to Avoid Debt While Using Credit Cards

There is no doubt that credit cards are very useful for paying for goods and services. They are safe, convenient and it means you don’t have to carry large sums of money around in your pocket. Carrying large sums of money can be very risky because if your money is lost or stolen, it is gone forever. Whereas with a credit card, you can just report it missing it will be immediately cancelled and a new one will be in the post the next day. Of course buying online with a credit card is the most popular, easiest way to buy goods and you have the protection of your credit card company.

However, if misused, credit cards can lead to debt and financial destruction. It is far too easy to spend money you do not own and before you know it, you can’t afford to pay back what you owe and get into financial difficulty. The simple fact is that if you borrow money, you must pay it back – and with interest. There is no such thing as free cash. If you don’t take immediate action then things can spiral out of our control which can be devastating.

If you in the situation that you have spent too much money and are in financial difficulty then it is time to stop using your credit card and re-access your financial position. You may need to change your lifestyle spending habits and make cut backs in order to clear your debts. Change your way of thinking – there is a way out of debt but you will need to make changes.

You must first recognize that you actually have a debt problem. You cannot attempt to sort out your finances unless you admit there is a problem and face up to your debts.

You then need to assess exactly how much it is that you owe. So many people do not actually know how much they owe. This maybe that they have so many debts that they can’t keep track of them all. By checking your credit card balances you will know exactly how much you owe and what interest you are paying. You should always aim to pay at least the minimum payment of your credit card bill. If you don’t do this it will affect your credit score rating.

When you are in the position of knowing how much you owe then develop and plan of how to pay the debt off. Do not just carry on paying the minimum interest repayment; it will take years to pay off your debt if you do this. A popular option is debt consolidation whereby you put all of your debts into one which organize your repayments into one affordable payment. Another option is to transfer your balance to a lower interest rate credit card, or even one that offers 0% balance transfer.

Only you can make the changes necessary to get out of debt and this must be done sooner rather than later, before things get too bad.

The author has several years experience in the finance industry. For more great tips on how to avoid debt and for help and advice to solve all of your debt problems go to Me Debt Free

Top Ten Ways to Get Out of Debt

If you don’t deal with your debt problems, they will soon grow quickly out of control so you must face facts and address your debt issues now. By failing to take action now, you may be risking financial ruin. Follow these top tips to get out of debt so you can live a happier, debt free life.

Being in debt can often be a worrying and distressing time, depending on how much you are in debt and how in control you are of your finances. However, the good news is that it’s always possible to get out of debt. With time and effort you can get through the pain of being in debt. You do need to realise you have a debt problem and face up to the fact that you will have to change the way to deal with your finances. Follow these tips to take the steps to get out of debt:

For more great tips to get out of debt and for help and advice to solve all of your debt problems go to Me Debt Free
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Reducing Debt With a Credit Card Debt Consolidation Loan

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.

For more detailed information about how to successfully deal with Credit Card Debt please visit the website Debt Reduction and Consolidation by Clicking Here.
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How to Help yourself Reduce Your Debt

Debt reduction help begins at home. Depending on your specific situation, it is possible to tackle your debt on your own without the need of debt help services. Here are the steps to handling your debt on your own.

Step 1. Sort Your Spending

Before you can start to attack your debt, you need to first look at your spending habits. You want to separate those payments you need to make (like mortgage, car, and insurance payments) and see what other expenses you have throughout the month. You’ll find that a lot of those “other” expenses are frivolous, such as going to the movies, dining out, and purchasing unnecessary luxury items (e.g. expensive shoes, watches, televisions, etc.). If you want to pay off your debt, you’re going to have to make a few sacrifices (e.g. stop eating out, reduce your cable TV to just the basic package, etc.). Once you have an idea of how you’re spending your money each month, you then need to see what you’re buying using your credit cards.

Step 2. Tackle the Credit Card

Credit cards are what get a lot of people in trouble. They simply charge items without regard to how they expect to pay for the charges later. This is very dangerous and if it’s not stopped, it can result in an uncontrollable amount of debt. So, after you sort your spending, the next step is to see what expenses you’re charging on your credit card. If at all possible, you should never charge your “must pay” expenses. If you charge your electrical bill, you’re merely transferring your debt from one company to another, and not paying it down. Pay your mortgage, car payments, and other necessities via your paycheck. If you are charging them and you do have the cash to pay for them each month, STOP CHARGING! Pay for them outright. The reason you’re in debt is probably because your credit card charges are getting out of hand. By not charging your “must pay” items, you can ensure that your monthly “must pay” debt is truly getting paid down and not just getting transferred to your credit card company.

NOTE: If there is no way you can pay for your “must pay” items without charging them, you have too much debt. Your income is less than your total debt. This is commonly known as your debt to income ratio. You want your income to be higher than your debt, and the way to do this is to either increase your income or decrease your debt (e.g. sell that extra car/boat/RV or cancel the movie channel package on your cable TV plan).

Step3. Cut Back Where you Can

After you’ve established your spending habits and what you charge on your credit card, it’s time to start cutting back. Take a look at your last credit card statement. What items are on there? Are there any charges that were not “necessary charges”? The occasional medical or car repair expense can’t be avoided so don’t worry about those. What you want to look for are expenses like clothing, restaurants, movies, and non-essential big-purchase items like televisions and sporting event tickets. These are the items you need to cut back on. Remember, if you want to get out of debt, you’re going to have to make some sacrifices. That means no more going out to eat or to the movies. No new clothes for a while. You need to cut back as much as you can so that you can put as much of your funds towards paying off your debt. If you don’t cut back, you’ll just be adding to it.

For further debt reduction help, visit http://www.bills.com/debt_reduction_help/

Justin narin has 5 years experience as a financial adviser; his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com
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