5 Simple Tips For Getting Out Of Debt In 2006!

Is credit card debt driving you crazy? Spent too much this holiday season?

Well, you’re definitely not alone. Credit card debt is a way of life these days. Especially now, right after the holidays!

For many people, money gets REAL tight this time of year – we need to pay for all the holiday gifts, get ready for tax season…

Ahhhh!

What can you do if debt has taken over your life?

Make getting out of debt your New Year’s Resolution for 2006!

Here are 5 simple tips for getting out of debt. Keeping a New Year’s Resolution is difficult. But if you follow these tips, you’ll be prepared for a prosperous 2006!

1) Write down your goal and make a plan for achieving it!
The first step to getting out of debt is by far the most important – you need to:

• make a commitment to get out of debt
• write it down
• and come up with a plan for reaching it!

Hey, you didn’t get into debt overnight, and you won’t get out overnight, either. But if you want to get out of debt – if you REALLY want to get out of debt, you need to have a plan. And you need to stick with it.

2) Seriously consider using a debt reduction program
If you have the discipline to get out of debt on your own, without any help, then good for you! But if you’re like most people, a little help will go a long way. Here are a few debt reduction programs to consider:

• Credit counseling: If you have high interest rates on your credit cards, working with a non-profit company will help you lower those high rates, and combine your credit card bills into one lower monthly payment – which means more of your money will go towards reducing your debt!

• Debt consolidation loan: If you own a home, you can consider taking out a home equity loan to pay off all your credit card bills, lower you interest rates, and possibly deduct the interest on your taxes (but check with your tax professional on this one).

• Debt settlement: If nothing else is working, and your debt is still overwhelming, then you should consider debt settlement. This is a more aggressive approach, and is not right for everyone, but if you’re considering bankruptcy, this is a good option. You can pay off all your credit card bills at a savings of 40-60%, and get out of debt much quicker.

3) Start fixing your credit problems
Many people think that anything that goes on your credit report stays there for 7 years. Well, that’s not always true. I got a bunch of negative credit items off my credit report – all I did was get a copy of my credit report, and ask the credit bureaus to remove the “bad stuff”. In just a few months, my credit was almost back to normal. There’s nothing that says we must pay for our mistakes forever (or even for 7 years)!

4) Cut down your monthly expenses
If you overdid the spending in 2005, then it’s time to cut out all the expenses you don’t need, and use the money you save to pay off your credit card bills. Take a look at your checking and savings account statements, your credit card statements, and your monthly bills. Then start looking for things to cut. I know, I know, it’s hard to live without cable TV, cell phones, internet access, the morning paper, weekend dinners and entertainment. BUT DO IT ANYWAY – at least until you get your debt back under control!

5) Make some extra spending money
Sometimes making more money is the best answer! There are lots of ways to make money – selling some of your valuables, getting a part-time job, starting your own business. Despite some of the ads you read, there’s no really secret to making money – you just need to find something you like to do, and work hard at it!

6) Think positive!
OK, there were only supposed to be 5 tips, but this one is the best one – no matter how hard life can get, no matter how much debt you have, the one thing in life you can control the most is how you think. So rather than focusing on what you don’t have, be thankful for all that you do have. Nobody dies wishing they had made more money or worked longer. But many people do regret all the fun and meaningful things THEY DID NOT DO! So make some time to have fun, think positive, and find little ways to enjoy life EVERY SINGLE DAY you are here on plant Earth!

Wondering what makes me an expert on debt? Well, I lived through it. I know what it feels like to struggle. And I know what it feels like to overcome financial problems. There’s nothing special about me. I work at a college, so I don’t make a heck of a lot of money. I didn’t win the lottery. And no rich relatives left me a pile of money.

I just learned a few simple strategies – actually, I learned the 5 tips you just read about – and stuck with them until my life changed for the better.

And you can, too – just follow the tips above, believe in yourself, and DON’T LET ANYONE OR ANYTHING STOP YOU FROM REACHING YOUR GOALS in life!

7 Tips To Help Reduce Your Debt

As debt continues to increase in many households across America, more families each year are finding themselves looking for ways to reduce their overall household debt. For some, this may be easier said than done. Debt reduction requires a lot of hard work and dedication. Especially when you are used to spending money left and right.

Those that are serious and committed to reducing their debt will eventually reap the rewards of being debt free. Reading my simple seven tips will give you many ideas, about how you can reduce your debt.

Cut back
When you start to cut back on spending, you will find corners that you can cut through out the month, to help you pay off your debts. Simple things such as, being aware of all of the electricity you use, and turning off lights that are not needed as you leave a room, will help reduce your light bill, therefore, you save a little more money to reduce your debt with. Once you become aware of your spending habits, and start cutting back, you will start to notice more ways to cut back each month.

Budget
Budget your income. List all of your monthly bills and their due dates. Apply them to your budget, as well as other household needs, for example, groceries, gas etc. Allow yourself only so much money per month to spend on extras. Sticking to your budget will show self control, and determination for reducing your debt.

Limit the use of your Credit cards
If you can not pay cash for it, then do not buy it. If you have to charge something, make sure that you can pay the balance in full when your next credit card bill comes in. Never charge on your credit card to only pay the minimum monthly amount. You will never get that maxed out credit card paid off that way. The importance of paying your credit card balance in full, can not be stressed enough.

Get rid of your credit cards
If you are determined to reduce your debt, cutting up your credit cards will help. If you do not have them, you can not use them. If this is too big of a step for you, at least get rid of the unnecessary ones. Keeping only one or two, low interest rate cards for emergencies only, is a good idea. Remember if you can not pay cash for something, then you probably do not need it.

Pay off your debts
If you have already acquired some debt you need to pay off, now is the time to get started. Decide which debt is your smallest and start with that one. Pay on it as your budget will allow. Once you have gotten your smallest debt paid off, you will have a feeling of satisfaction and know that you can pay off your debts. Then move to the next smallest debt, when you are paying them off one by one, it is easier to do, with out feeling over whelmed. Before you know it, all of your debts will be paid and you will feel great about knowing you paid them off.

Debt consolidation
Debt consolidation is another option to look at for reducing your debt. Debt consolidation companies, will call your creditors for you, and make payment arrangements for your debts. Many companies will get you one low monthly payment to pay each month, until all of your debt is paid off.

Financial counseling
Make an appointment with a financial counselor to help you reduce your debt. Some people find, having someone else point out the errors in their spending habits to help tremendously. Financial counselors can also show you how to better manage your money, and stick to a budget.